Tag Archives: LVMH

LVMH’s Strategy in Asia is a Multi-Pronged Approach

Image: Louis Vuitton

Luxury fashion brands are no stranger to presenting its fashion runway show in Asia. The world’s largest luxury conglomerate, LVMH, had already done its presentations in cities across the region in recent months. While these past presentations were typically spin-offs from the original shows, the decision to re-show in Asian cities unveils the strategic importance of engaging with consumers in this part of the world.

In its recent financial report for Q1, LVMH reported stronger-than-expected sales growth of €18 billion, which is a 29 per cent increase compared to the same period last year. Breaking down the figures, revenue earned from Asia (excluding Japan) registered a modest increase of eight per cent. Overall in 2021, the rest of Asia represented 35 per cent of the total revenue for the Parisian company. To only grow by eight per cent is a worrisome sign, and LVMH is determined to boost sales through vigorous engagement with the region.

 
 
 
 
 
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A post shared by Louis Vuitton (@louisvuitton)

Over the past year, brands under the LVMH group have devoted more resources to Asia by staging fashion shows in major capital cities. Last year in April, Dior re-showcased its Fall 2021 show in Shanghai as a guest of honour of Shanghai Fashion Week. Labelmate Louis Vuitton presented its spin-off womenswear show in Singapore last March, and that occasion marked the return of physical shows. A week ago, Louis Vuitton staged its Fall/Winter 2022 spin-off in Bangkok. Apart from its Fashion & Leather division, jewellery brands like Bvlgari and Tiffany & Co. also organised exhibitions to connect with local clients.

To understand the reason why LVMH places importance on Asia is simple: it is the fastest growing region in terms of GDP. According to The Financial Times, “Over the next two years, gross domestic product will rise faster in Asia than in the Americas and Europe, strengthening its position as the largest and fastest-growing economic bloc.” Asia’s GDP is expected to expand from US$33 trillion to US$39 trillion by 2023. This means that with economic growth, the income of its citizens will likely increase, which creates a pool of mass consumers who have the money to buy luxury goods. 

Backstage at the Louis Vuitton Fall/Winter 2022 spin-off show in Bangkok. Image: Louis Vuitton

Furthermore, luxury goods have been known to be a status signifier and this line of thinking is still prevalent in Asian countries. Capitalising on this phenomenon, companies like LVMH ensure that its presence is felt throughout with regular interactions. The idea that the world has entered an “Asian Century” has been echoed by many over the past few years and this further strengthens Asia’s strategic importance.

Being the main engine of growth in Asia, China has been accredited as the primary market that brands aim to target. The country’s double-digit economic expansion is a significant boon for LVMH as luxury goods have a high income elasticity of demand. In other words, as people become wealthier, they will buy more of the luxury goods. Coupled with the predominance of social media as a platform to flaunt one’s wealth, owning a Dior Saddle Bag has increasingly become a necessity.

Jung Ho-Yeon. Image: Louis Vuitton

Understanding the market’s potential, brands under LVMH have also chosen to appoint more Asian ambassadors. At Louis Vuitton, South Korean boyband BTS is its global ambassador, alongside tennis superstar Naomi Osaka and Jung Ho-Yeon of Squid Game fame. While Dior appointed Jisoo of girl group Blackpink to be its global ambassador while her other group members Lisa is the face of Celine and Rosè representing Tiffany & Co. The various representatives are to galvanise further support for its brands, and results have shown, especially in the Fashion & Leather division — it grew by 30 per cent in Q1, so the strategy of leveraging on the fame of these Asian celebrities has worked to LVMH’s advantage.

However, while China remains to be one of the key markets that LVMH is targeting, there is also a need to decouple from the Chinese market. Earlier in March this year, the Chinese government ordered a lockdown in multiple major cities like Beijing, Shanghai, and Shenzhen to pursue a zero-Covid policy. Many stores had to close including luxury brands under the LVMH group. Perhaps, this was why two shows were conducted in Southeast Asia, to diversify its sales channels. The economies in ASEAN remain positive, and growth is estimated to hit seven per cent, according to a forecast by the Asian Development Bank.

Image: Dior

Opportunities are abound in Southeast Asia. The region is one of the world’s fastest growing in terms of income, and its youths are leading the charge in consumer spending on luxury goods. Brands under the LVMH group are still top choices for the burgeoning young spenders in ASEAN, and this could be attributed to pop culture influence as mentioned earlier.

LVMH’s strategy in Asia is quite clear-cut. It is definitely putting more emphasis on engaging with the region, but it does not base its business decisions on a blanket approach. The group is cognizant of its over-reliance on the Chinese market and is attempting to minimise any future impacts through diversification. As the saying goes, “Don’t put all your eggs in one basket”, its stronghold in Japan and South Korea has proven some results and it is continuing its efforts in the Southeast Asia region.

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Ex-Celine’s Phoebe Philo Makes a Comeback With Her New Namesake Label

Phoebe Philo

Credit: Phoebe Philo

Ex-Celine designer Phoebe Philo is making a comeback to the fashion industry. She’s set to launch her eponymous brand next year.

More details will be released closer to January, but for now, the upcoming line will be one that is “rooted in exceptional quality and design”, according to Philo. Her former employer French luxury conglomerate LVMH has taken a minority stake in the upcoming venture but Philo will be left “to be independent, to govern and experiment on [her] own terms”.

“Being in my studio and making once again has been both exciting and incredibly fulfilling,” said Philo in the announcement. “I am very much looking forward to being back in touch with my audience and people everywhere.”

Celine Spring 2018 Look 10

Credit: Monica Feudi / Indigital.tv

Looks from Celine’s Spring 2018 collection by Phoebe Philo

Three years prior, Philo was the creative director of Celine, a position she held for a decade. She was hired by Marco Gobbetti, who was the CEO of the French label before he left for Burberry in 2016. During her time at the French label, she has propelled it to cult status and dressed numerous celebrities including Kanye West. He wore a printed silk pyjama shirt from the brand’s spring 2011 collection to Coachella.

Philo sent shockwaves throughout the fashion industry when she announced her departure from Celine in 2017. Editors and stylists lamented the news as the end of an era. An Instagram handle named @oldceline, which pays homage to the Philo-era, sprung up soon after.

Her name has since been linked to every major vacancy in fashion, including Chanel, in the wake of Karl Lagerfeld’s death, and Burberry when Marco Gobbetti was looking for a replacement for Christopher Bailey. Her post at Celine, however, was eventually filled by former Dior Hommes creative designer, Hedi Slimane in 2018.

Celine Spring 2015, Joan Didion

Philo’s meteoric rise in the cut-throat industry is a success story that still resonates with young designers. Her collections during her Celine tenure appealed to women and even created a new phenomenon called the “Female Gaze”, which the Guardian compared to Monsieur Christian Dior’s “New Look“. In other words, she revolutionised how women want to dress. With a refined touch, the style became synonymous with female empowerment.

Besides being the mastermind behind Celine’s revival — annual sales increased from €200 million to €700 million under her leadership — Philo was also pioneering other trends. She was among the first to cast older models like Joan Didion, popularise Adidas’ Stan Smith sneakers, and set the wave for minimalism. Aside from the clothes, the money maker for the brand includes its accessories such as Luggage, Classic, Trapeze, Trio, and of course, the fur-lined Birkenstocks.

In a bid to fill up the aesthetic void left by Philo, a new wave of designers has risen — all of whom worked under Philo at Celine. They are LVMH Prize finalist Peter Do, Bottega Veneta’s Daniel Lee, and Rokh founder and designer Rok Hwang.

Maximalism has been the trending notion as propelled by the likes of Alessandro Michele at Gucci and Demna Gvasalia’s Balenciaga, but perhaps the industry would once again pivot back to the minimalistic era. And at this inflection point, it is still unclear where fashion is going to head next but Philo’s new label might just nudge it in a new direction.

 

LVMH exits Tiffany deal as US riots further weaken retail segment

As news leaked of LVMH CEO Bernard Arnault talking to advisors on possible avenues for re-negotiating the acquisition of Tiffany & Co, the group’s largest deal to date, it has finally been verified via a corporate press statement that “considering the recent market rumours, LVMH confirms, on this occasion, that it is not considering buying Tiffany shares on the market.”

LVMH exits Tiffany deal as US riots further weaken retail segment

In November 2019, LVMH, the owner of Louis Vuitton, had secured an agreement to purchase Tiffany but was expected to close the deal in 2020 pending regulatory approvals; the global pandemic outbreak had put a pause on international trade and economic activity as markets closed in self-imposed quarantine as part of containment measures to prevent a wider spread.

Though no further details were forthcoming, the luxury conglomerate had convened a board meeting ahead of the US jeweller’s quarterly results due out today on June 5, to study potential options to force a re-negotiation of the $16.2 billion deal, among one of the strategies was exploring whether Tiffany was in breach of its obligations under the merger agreement; however the famed American jewellery brand did not believe there is a legal basis to renegotiate. Sources familiar with the matter told Reuters that the company is in compliance with financial covenants under the merger agreement with LVMH, and expects to remain so after declaring a quarterly dividend two weeks ago.

LVMH said that they “notably focused its attention on the development of the pandemic and its potential impact on the results and perspectives of Tiffany & Co with respect to the agreement that links the two groups.”

Although no further details were offered by LVMH at this time, many believe that Arnault’s temperature on the deal turned cold after the outbreak of mass protests and rioting following the killing of African American George Floyd by police officers in Minneapolis added further uncertainty to an already weakened retail segment in the vital US market.

From Perfume to Hand Sanitiser, LVMH’s Act of Philanthropy not Seen Since World War II

In every continent, today’s philanthropists acknowledge the enduring influence of Andrew Carnegie. But on Sunday 15th March 2020, LVMH Moët Hennessy took Carnegie’s Gospel of Wealth philosophy to the next level. The Louis Vuitton owner ordered that its perfume and cosmetics facilities be re-tooled to manufacture hydroalcoholic gel or hand sanitiser.

Lauren Sherman, Executive Editor of Business of Fashion reported that the directive came straight from LVMH chairman and chief executive Bernard Arnault, though it was not confirmed, yesterday, Monday the 16th saw facilities that produce fragrances and cosmetics for Christian Dior, Guerlain, and Givenchy switching over to hand sanitisers and hand disinfectant gel, which will be given to French health authorities and hospitals free of charge.

“LVMH will use the production lines of its perfume and cosmetic brands…to produce large quantities of hydroalcoholic gels from Monday. These gels will be delivered free of charge to the health authorities. LVMH will continue to honour this commitment for as long as necessary, in connection with the French health authorities.” LVMH statement

From Perfume to Hand Sanitiser, LVMH’s Act of Philanthropy not Seen Since World War II

During World War II, America’s manufacturing might was key to the Allied victory. By the beginning of 1944, the output of American factories was twice that of all the Axis nations as manufacturers, including watchmakers like Hamilton, Bulova and Waltham, shut down normal operations and retooled for wartime; in essence, LVMH’s act of philanthropy in switching from cosmetics to hand sanitiser has not been seen in over 70 years and their’s is an act (especially if this influences other industries to join them – creating medical diagnostic tools, masks and other vital medical supplies) that would appear to be the key in our own allied victory against the coronavirus.

American watchmakers like Hamilton, Waltham-Longines and Bulova re-tooled their factories to produce weapons and ammunition for the US army during World War II

Gospel of Wealth – A classic model for modern corporate social responsibility

Having made his fortune in Pittsburgh America, Carnegie is indisputably the world’s greatest ever philanthropist. If you’ve heard of the Carnegie name, it’s likely you’ve discovered it from the many libraries, universities and scholarships awarded to the poor and disenfranchised. In addition to feeding the mind, Carnegie believed in feeding the soul, creating spaces for appreciating music and culture, like the famed namesake Carnegie Hall in New York. By the time he died in 1919, Carnegie had already given away more than 90% of his fortune $350 billion (adjusted for 2020 inflation) wealth accumulated as the world’s biggest steel maker. No one comes near to him for the scale of giving much more than today’s biggest donors Bill and Melinda Gates.

What makes him so influential is how most of our modern conglomerates and conglomerate owners behave today mirrors his ideals: Carnegie wasn’t the just the world’s biggest philanthropist, he was the world’s most modern philanthropist. His treatise, the Gospel of Wealth has set down the principles for giving that many of today’s ultra-wealthy are measured against when it comes to giving back to society.

Carnegie sponsored the construction of the Peace Palace in the Hague originally built to provide a home for the Permanent Court of Arbitration, a court created to end war by the Hague Convention of 1899

If the portrait of a billionaire philanthropist seems familiar today, it is directly as a result of Andrew Carnegie’s pioneering giving; in his day, it was revolutionary. In case you have not yet noticed, most philanthropic efforts today, either from on an individual or corporate scale, is modelled on Carnegie’s ideals chronicled in his Gospel of Wealth: financial donations are put to nourishing society’s most disadvantaged in a holistic manner – mind, body and soul.

Carnegie’s philanthropic vision was extraordinarily futurist: he gave millions to promote peace and disarmament but his greatest idea was one where he thought that if all the great industrialists (the high net worth individualists of his time) of the world came together, World Wars could be prevented. Indeed, given the globalised nature of our interconnected economies, an active war with multiple nations on the scale of World War II is not as likely today but nevertheless, we still deal with existential threats to global peace in the form of international trade and economic warfare and third party “actors” in the case of the Covid-19 coronavirus which has now turned into a global pandemic.

“I know you would, rather than instead of building this, I had distributed it to you in the form of higher wages. That’s what you think would have been proper? But if I had given you more money in your pay cheques, what would you have done with it? You might have bought a better cut of meat for the family. You might have spent it on drink. But I know what you need: You need a library. You need a museum, you need a concert hall. These is what raises the working man. And that’s why I saved this money. And I’m now giving back to the community what the community needs.” – Andrew Carnegie on the opening of his library in Pittsburgh

This photograph taken on June 26, 2018, shows the transcept of Notre Dame de Paris Cathedral in Paris. (Photo by Ludovic MARIN / AFP)

Dealing with the “contradictions” of modern philanthropy

When the Notre Dame de Paris caught fire back in April 2019, the outpouring of global grief and the pledging of vast sums of money towards its re-build and restoration prompted an equivalent push back of social justice warriors wondering if the money could have been better spent “feeding the poor” or “housing the homeless”. This “contradiction” as been a 200 year old problem which Carnegie himself dealt with during the peak of the 19th century. In his usual brusque manner, he told a crowd of employees during the opening of his namesake library in Pittsburgh, “I know you would, rather than instead of building this, I had distributed it to you in the form of higher wages. That’s what you think would have been proper? But if I had given you more money in your paycheques, what would you have done with it? You might have bought a better cut of meat for the family. You might have spent it on drink. But I know what you need: You need a library. You need a museum, you need a concert hall. These are what raises the working man. And that’s why I saved this money. And I’m now giving back to the community what the community needs.”

While his condescension might not have been well received, his vexatious annoyance with small-mindedness is really aimed towards a psychological issue in how most human beings process information. Case in point, Philippe Martinez, leader of the General Confederation of Labor trade union once stated, “If they can give tens of millions to rebuild Notre Dame, then they should stop telling us there is no money to help with the social emergency.”

Notre Dame de Paris had oak interiors and pillars

It might be tempting to think you have to align yourself on the side of social justice warriors or billionaire foundations but philanthropic conundrums of this nature are a false dichotomy. Intellectually and philosophically speaking,  there’s nothing wrong with donating to the restoration of a burned cathedral or contributing to the arts because humanity is not the sum of its basic needs and biological impulses. We need food for the body, just as we need sustenance for the mind and soul. We have urgent problems like homelessness, unequal food distribution and wealth inequality but we also have pressing concerns that deal with “preserving cultural identity” and our artistic heritage – philanthropy simply isn’t a zero-sum in the way we think.

The Gospel according to Andrew (Carnegie)

Even if not outright influenced by Carnegie’s Gospel of Wealth, many today mimic his pattern of giving and thinking. That said, Carnegie’s philanthropy eventually drove him to ever greater ruthlessness as a businessman. In his pursuit for “returning to society”, the former friend of the unions began dismantling the very institutions he had supported on the side of the working class he championed. Why? So his steel company could be more competitive and that he could make more money to give away.

Though he came to the realisation in the latter part of his life, his efforts in undoing the damage he had done were not sufficient and he took it upon himself to address what he saw as the fundamental challenges facing society in his time, a problem which very much exists till this day: the proper administration of wealth.

In the modern age where wealth is increasingly concentrated in the hands of the few, Carnegie’s gospel is just as relevant today as it was close to 200 years ago: In 1889, men like J. P. Morgan, John D. Rockefeller, Cornelius Vanderbilt and William Randolph Hearst, also known as “robber barons” were generating enormous fortunes and Carnegie had written his gospel to justify this concentration of wealth and to show how it could then be redistributed.

A Rolex Testimonee since 1994, David Doubilet is a pioneer and one of the best-known underwater photographers in the world. After publishing his first article in National Geographic in 1971, he swiftly gained recognition as one of the magazine’s top photographers. David Doubilet’s lens has captured all the waters of the planet.

He held that the first duty of the man of wealth, was to set an example of modest living, shunning display or extravagance, to provide moderately for the legitimate wants of those dependent upon him, and after doing so, to consider all surplus revenues which come to him simply as trust funds, for which he is called upon to administer and strictly bound as a matter of duty to administer in the manner which in his judgment is best calculated, to produce the most beneficial results to the community: Is it any wonder that the Hans Wilsdorf Foundation, established in 1945, which owns Rolex, donates a great deal of its income to charity and social causes in Geneva and around the world?

To Carnegie, wealth was a moral and ethical responsibility and his gospel did not make him a popular man: because nobody, least of all the rich and powerful, wants to be told that what they’re doing is immoral or lacking in ethical standing. Yet, in his perspective, men of wealth, economically the fittest of the modern civilisation do indeed have a duty to do the smart thing with the immense resources they can marshal towards the common good. Carnegie’s instruction to his contemporaries was truly radical and even today, relevant.

“He who dies rich, dies disgraced.” – Carnegie

LVMH and the marshalling of industrial resources

What LVMH has done with the production of hand sanitisers using their cosmetics facilities is exemplary. Especially so if its truly on the directive of French billionaire business magnate Bernard Jean Étienne Arnault. He was instrumental in establishing LVMH as a major patron of art in France when he established a cornerstone of the company in 1991 with corporate philanthropy initiatives that serve the general interest. More recently in 2019, Arnault pledged $200 million to the rebuilding of Notre Dame de Paris and $11 million to help fight the wildfires ravaging the Amazon rainforest; LVMH has also pledged $2.2 million to Chinese Red Cross in Wuhan to help with medical supplies but his latest move on marshalling industrial production resources from his facilities is inarguably wise on ethical, moral and economic grounds.

“(It) is not just about words and speeches or signing declarations of principle, it also requires taking concrete collective actions when dangers arise in order to provide resources for local specialists and work together to save our planet.” – Yann Arthus-Bertrand, LVMH Advisory Board Member

Retail is at a standstill, a growing number of cities are on lockdown, and rather than let factories (and employees) run fallow, LVMH has decided to put its massive capability and know-how at producing maximum public good – in this case, the literal disinfectant gel that will be delivered to French health authorities and the Assistance Publique-Hospitaux de Paris, a network of 39 teaching hospitals that treat more than eight million patients each year.

Meanwhile, France has closed eateries and other non-essential stores in an effort to combat the virus which has infected more than 156,000 people worldwide and killed at least 5,833. It is modern warfare the likes we have never seen. A truly globalised world and its interconnected economies mean that more than ever, the wealth and resources concentrated the hands of the few can be utilised to maximum effectiveness.

At press time: Chinese Billionaire Jack Ma has donated a total of 1.1 million testing kits, 6 million masks, and 60,000 protective suits and face shields in the African continent. His first shipment of 1 million masks and 500,000 coronavirus test kits arrived in the United States on Monday morning, yesterday.

After more than four decades of leading the most influential tech company in the world, Bill Gates has withdrawn from Microsoft to focus on philanthropic activities with special attention on “global health and development, education, and increasing engagement in tackling climate change.” The Bill and Melinda Gates Foundation was launched in 2000 and is reported to be the largest private foundation in the world, holding $46.8 billion in assets. Meanwhile, Amazon and Gates Foundation are in discussion to deliver coronavirus test kits to Seattle homes. Further proving that the needs of the world have evolved beyond mere financial aid but in the leveraging of production and logistics capability as demonstrated by the likes of LVMH. The Group projects that it will make 12 tons of hand sanitiser within its first week and it will continue to do so free of charge as long as France requires.

 

Fashion houses and brands to contribute to Coronavirus global pandemic

The fashion industry is experiencing one of its darkest days right now as the Coronavirus turns to be a global pandemic right now.

The Coronavirus crisis hasn’t only heavily impacted the lives of many, but also businesses worldwide including the fashion industry.

As the world fights it together, fashion behemoths and moguls are also coming together to do their part for the welfare of others. Whether it’s making cash contributions, supplying personal protective equipment products or supporting food bank, they are offering help in their own ways in the time of need.

 

 

MODA MALAYSIA

In partnership with FashionValet and IMARET, Malaysia Official Designers Association (MODA) is also joining in the efforts to combat against the COVID-19 pandemic by buying materials and sewing personal protection equipment (PPE) to frontliners in Malaysia. Funds will be administered by MODA to buy the fabric to be distributed to designers and volunteers involved to sew PPE hospital gowns as fast as possible.

The initiative sees local designers including Dato Radzuan Radziwill, Khoon Hooi, Alia Bastamam, InnaiRed, Melinda Looi, Celest Thoi, Jimmy Lim, Key Ng, You Sheng, Keith Kee, Kit Woo and their league of seamstresses volunteering to cut and sew these hospital gowns.

You can support the cause via materials or fund donation here.

 

CAPRI HOLDINGS

Capri Holdings Limited, a global fashion luxury group that owns Michael Kors, Versace and Jimmy Choo, announced today that its collective brands and their founders are donating more than $3 million in support of COVID-19 relief efforts.

Michael Kors brand will donate $1 million to support local relief efforts. In addition, founder Michael Kors and John Idol will make personal contributions of an additional $1 million towards these efforts which will be directed to NYU Langone Health and New York-Presbyterian Hospital, God’s Love We Deliver and A Common Thread.

 

DIOR

In addition to the efforts of its parent company LVMH, Dior opening up its Baby Dior Atelier in Redon in the aid of producing face masks on a volunteering basis in helping out the current situation. The Dior staff are joining in the production via a volunteer basis.

 

CHANEL

Like many French fashion house, Chanel has also pledged to produce protective gears to aid the French medical system and also donate $1.3 million to an emergency fund dedicated for the public health system in France.

In addition to that, Chanel has also promised to pay two months of salary to all its French workers to avoid them from relying on the unemployment fund from the French government

 

COACH

The Tapestry, Inc. family (the parent company of Coach which also owns Kate Spade New York and Stuart Weitzman) through the Coach Foundation has decided to commit USD2 million to the New York City Small Business Community Fund and also match the North America employee donations to COVID-19 response efforts through their matching gift program. Also, they will make an additional donation to an organisation crowd-sourced by employees.

 

BURBERRY

In their efforts to contribute to the fight against COVID-19, Burberry is facilitating the delivery of surgical masks, non-surgical masks and gowns for use by medical staff and patients by utilising our global supply chain network to fast-track the delivery of over 100,000 surgical masks to the UK National Health Service and also, retooling our trench coat factory in Castleford, Yorkshire, to make non-surgical gowns and masks for patients.

On top of that, Burberry will be funding research into a single-dose vaccine developed by the University of Oxford and donating to charities including FareShare and The Felix Project, dedicated to tackling food poverty across the UK.

 

Courtesy of Gucci

LVMH

The French conglomerate has leveraged its cosmetics factories including Guerlain, Dior Parfums and Givenchy Beauty to manufacture hydroalcoholic gel and distribute to health authorities in France. It is also ordering 40 million face masks from China for the country. Back in January, French company gave 16 million RMB (approx. RM 9.9 million) to The Red Cross Society of China.

Fendi men’s and accessories creative director Silvia Venturini Fendi also took to the Instagram to announce the foundation has contributed €100,000 (approx. RM475,000) to help the intensive care department of Presidio Sanitario Columbus in Rome last week.

 

KERING

The fashion giant, which owns Gucci, Saint Laurent, Balenciaga and Bottega Veneta, has donated 7.5 million RMB (approx. RM4.6 million) to the Red Cross Society of China and € 2 million (about RM 9.3 million) to the healthcare institutions in Italy including Lombardy, Veneto, Tuscany and Lazio.

The fashion group is also ordering three million surgical masks from China to distribute to French health services while tapping Balenciaga and Saint Laurent to produce masks and personal protective supplies.

The CEO of Gucci, Marco Bizzari, has also donated more than $100,000 (approx. RM430,000) to hospitals in the Emilia-Romagna region of Italy.

 

Masks produced internally at the Prada factory in Montone. Courtesy of Prada.

 

VIVY YUSOF & FADZA ANUAR

The co-founders of Fashion Valet have together launched a FV Covid-19 Support Fund on behalf of Imaret Malaysia (Islamic Medical Association of Malaysia Response and Relief Team) to ensure the adequate supplies of general and medical materials to the frontline staff in Malaysia. The couple has taken the lead by donating RM100,000 to the campaign.

For Malaysians, you can do your part by contributing to Mereka,  Mercy Malaysia, Kitafund, or The Lost Food Project.

 

HERMÉS

The high-end fashion label has pledged 5 million RMB (Approx. RM3.1 million) to the China Soong Ching Ling Foundation, honouring the medical professionals who have fought on the front line.

 

PRADA

The Italian luxury fashion house has donated two entire intensive care and resuscitation units each to three of Milan’s biggest hospitals including San Raffaele, Sacco and Vittore Buzzi. The brand will also use its production lines to produce masks and medical overalls to the country. The production plan provides for daily deliveries, which will be completed by April 6th.

 

Donatella Versace, courtesy of Versace.

VERSACE

The Donatella Versace-helmed Italian fashion house contributed 1 million RMB (approx RM600,000) to The Chinese Red Cross Foundation last month, while the creative director of Versace herself together with her daughter Allegra Versace Beck have donated €200,000 (approx. RM930,000) to the ICU of San Raffaele hospital in Milan.

 

GIORGIO ARMANI

The brand from Italy has funded numerous Italian hospitals and institutions with a total of €1.25 million (approx. RM5.8 million) to a group of Italian hospitals and institutions, including the Luigi Sacco and San Raffaele hospitals, the Istituto dei Tumori in Milan and more.

 

BIJI-BIJI INITIATIVE

The owner of Biji Biji ethical fashion, a Malaysian fashion company consisting of Biji-biji Initiative, Me.reka, and Taylors Me.reka Makerspace, is working with a group of volunteers and makers to make Protective Face Shields for the Covid-19 front-liners, which youou can make your contribution by clicking this link – www.mereka.my/protecting-our-frontliners.

 

MONCLER

The brand, known for its iconic winter puffer jacket, will donate €10 million (RM46 million) towards the construction of a new hospital in Milan that has 400 intensive care units.

 

SERGIO ROSSI

The Italian shoemaker has donated €100,000 (about RM460,00) to a hospital in Milan and has announced to dole out 100% of its online sales profits between 14th March and 20th March 2020.

 

BVLGARI

Jewellery house Bulgari donated an unspecified amount to the Istituto Lazzaro Spallanzani’s research department in Rome, which was among the first to isolate the DNA of COVID-19. The amount was reported to be sufficient to buy a microscopic image acquisition system that is worth about €100,000.

 

CHIARA FERRAGNI

The Italian fashion entrepreneur and her husband Fedez have helped to raise over €4 million (about RM18 million) through GoFundMe campaign. The couple has also contributed €100,000 towards the intensive care department of San Raffaele hospital in Milan.

 

RICHEMONT

The Swiss luxury behemoth who owns Cartier, Montblanc, Van Cleef & Arpels and more has pledged to give 10 million Renminbi (RM6.1 million) to China to combat the COVID-19.

 

INDITEX

The global fashion group, which owns Zara and Bershka, will make use of its supply chains to produce masks and gowns for medical workers and patients in Spain. Last week, the company has expected to ship 300,000 face masks from overseas and distribute it to the Spanish health authorities.

 

 

BRITISH FASHION COUNCIL

The pillar of British fashion industry did its part by working with the Department for Business, Energy and Industrial Strategy and the Department for Health and Social Care on a new initiative to produce essential protective products including masks.

 

CFDA

The Council of Fashion Designers America (CFDA) has urged the fashion community in US – companies, vendors and individuals – to assist in the manufacturing of personal protective equipment products like masks, gowns and gloves.

They will also repurpose the US$700,000 (approx. RM2.1 million), which is supposed to be for the annual CFDA Vogue Fashion Fund, to small businesses that apply for grants from 8th April onwards under the new fundraising initiative with Vogue to support small businesses – A Common Thread.

Courtesy of CFDA

This article was originally published on www.lofficielmalaysia.com.

LVMH is betting big on Cha Ling, the French Made Traditional Chinese Medicine You’ve Never Heard Of

If you have not heard of LVMH’s latest beauty and wellness brand Cha Ling, it’s not coincidental. It’s the French luxury conglomerate’s first foray into Traditional Chinese Medicine and a doubling down of the conglomerate’s investment on China, launched without fanfare save a single press release on LVMH Group’s corporate site in 2016.

During a private business meeting in June 2019, Citi Group analyst Thomas Chauvet noted that Louis Vuitton Chief Executive Michael Burke expressed that the brand was witnessing “un-heard of” growth rates in the Middle Kingdom on the backs of China’s efforts to reduce “daigou” – the practice of bringing in undeclared luxury goods from outside the country, usually with VAT claimed, for resale on the mainland. While this phenom is related to luxury handbags and accessories, the growing appetites of Chinese consumers is prompting LVMH to entrench themselves in more facets of Chinese lifestyle. Enter Cha Ling.

LVMH is betting big on Cha Ling, the French Made Traditional Chinese Medicine You’ve Never Heard Of

According to Ubifrance, foreign companies dominated the Chinese cosmetic market up until 2013, owning 60% of a 14-billion-euro market with French brands like L’Oréal Paris, Lancôme, Clarins, and Dior taking the lion’s share of the pie ahead from Japanese and US brands. By 2014, the tide had turned, according to Euromonitor, though sales of beauty products and make-up in China increased from 6.7% and 10.9% between 2014 and 2015 respectively, growing competition from Japanese, South Korean and home-grown Chinese brands had clawed back crucial market share from French dominance.

According to the China Shopper Report 2015, 2014 was also the first year where homegrown Chinese labels outperformed foreign brands, contributing to 87% of market growth representing almost 70% of market value in twenty-six product categories. Analysts were quick to point out that Chinese cosmetic brands didn’t get there on their sole marketing efforts alone, the Chinese government had made it a national policy to encourage citizens to “buy local” plus the confluence of growing numbers of Chinese looking to take care of their health and appearance.

The world of beauty was introduced to Cha Ling, l’Esprit du Thé in 2016. A carefully articulated, well-executed bet where heritage French savoir-faire ventures deep into the Yunnan Province, specifically the Xishuangbanna region, in a region untouched by pollution and home to an ecosystem producing the world’s oldest variety of Pu’Er leaves.

When a pair of environmental champions, German biologist Josef Margraf and his Chinese wife Li Ming Guo met with Laurent Boillot, Chief Executive Officer of Guerlain, the idea of Cha Ling became the sort of “marriage in heaven”, one where a large luxury conglomerate could leverage their behemoth communications, retail and distribution engine to protect the “green lung” of China by not only promoting but also preserving the ecosystem of the region that produces Pu’Er tea.

Josef Magraf and wife, Li Ming Guo

The prestige segment of cosmetics is currently dominated by international brands like Procter & Gamble’s SK-II, even then SK-II, given its Japanese roots, has a largely Asian narrative of rice and authentic ingredients. Given this understanding, what Guerlain’s Chief really cottoned onto was the idea of a Sino-French cosmetics house which could neatly fall into the narrative of the government’s “buy local” policy while simultaneously being seen as a champion of sustainable development in China.

Guerlain CEO and Cha Ling founder, Laurent Boillot

Cha Ling might succeed where Shanghai Tang didn’t

After owning the brand since 2008 when luxury demand in China started to peak, Richemont finally divested its stake of Shanghai Tang in 2017. It was a business with potential but one fraught with the unchartered waters requiring astute cultural navigation. Eventually, a combination of off-the-rack cheongsam with out-of-touch pricing (since the cheongsam was traditionally a bespoke fitted garment) and the odd cultural crossroads where you were marketing a brand to a highly nationalistic citizenry where a large number of your clientele are gwai lo 鬼佬 or lao wai 老外 and you begin to have the ingredients for a contradiction of cultural expectations which eventually did them in. Yes, while Shanghai Tang represents an entirely different segment, the lessons are not dissimilar and it appears that Cha Ling largely avoids most of the hazards which typically accompanies what is essentially European adoption of authentically Chinese ingredients.

Cha Ling initially adopted the Euro-centric model of “origin” or provenance story as a core marketing tool which eventually pivoted to the SK-II model of focus on ingredients. Its championing of Pu’Er and with a third of its founding members being an ethnic Chinese woman no less, makes Cha Ling the kind of success story new undergrads will eventually read about in business school. It also helps that Guerlain CEO Boillot is passionate about Chinese culture, making it easy to avoid many of the tone-deaf marketing campaigns which has plagued some Euro-centric brands in China recently.

While international and domestic cosmetics brands alike are both subject to strict government regulation, the prevailing perception is that foreign brands are safer, use higher quality ingredients or simply more effective than their local partners. Hence, Chinese consumers are dawn to them despite higher prices.

For more than three years, Boillot mobilised the power of the LVMH Group to unlock the extraordinary cosmetic properties of Pu’Er leaves. Eventual scientific validation gave Boillot all the confirmation he needed to start Cha Ling. Never mind origin story, the ingredient, a widely recognised product but now specially harvested from an exotic locale, became the key selling point. One of the world’s oldest, most un-touched variety of Pu’Er tea: a powerful antioxidant also acting as an anti-pollutant and anti-ageing substance once matured.

Was it a calculated risk? You bet it was. According to Euromonitor, retail sales of skincare products in China reached 212.2 billion yuan ($30.85 billion) in 2018, representing year-on-year growth of 13.2 percent, with growth predicted to hit 32% by 2023. Cha Ling, a pro-China, French cosmetics label co-owned by a Chinese national with branding where the Chinese proper noun takes precedence? The gamble begins to look more like a sure investment.

Garnier withdrew from China in 2014.

All Cha Ling products are developed in Guerlain’s French lab but using exclusively Chinese ingredients. The Cha Ling line consists of 50 items from hand creams to fragrances, each retailing between €60 to €250. Sold in five Chinese boutiques in mainland metropolitan cities like Shanghai, as well as in Le Bon Marché.

 

LVMH Owned E-Commerce Website “24 Sèvres” to Carry Designer Goods Like Dior, Louis Vuitton

If you love online shopping as much as we do then news of the new LVMH owned e-commerce website must have been welcome news to you too. The fashion conglomerate that owns our favourite fashion houses such as Dior, Louis Vuitton and Fendi is gearing up to launch the new site for Le Bon Marché called “24 Sèvres”.

While we may have to wait a while longer, June 6 to be exact — before the website is ready, shopaholics are sure to have bookmarked company’s new venture. Once it is made available in 70 countries, the site will carry 150 labels including 20 brands that are under LVMH.

“With the launch of 24 Sèvres, we are offering them a truly differentiated online experience built on our unique expertise at Le Bon Marché in Paris,” said Bernard Arnault, Chairman and CEO of LVMH. He added “Shopping at Le Bon Marché is a special and unmissable experience for both local and international clienteles. With 24 Sèvres, our clients can now enjoy this unique feeling every day and night, worldwide.”

Like other sites that offer similar e-commerce services to an international clientele, 24 Sèvres will provide editorial content but will focus on innovative visual merchandising which includes video styling consultations. With more clients shifting their focus to the online market, LVMH is looking to appeal to internet-savvy customers while retaining its exclusivity.

Words by Vimi Haridasan.

From: Luxuo.

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