2Jour Gazette | Edition 7 | 04 Nov - 10 Nov 2024

Welcome to this week’s edition of 2Jour Gazette—your curated look at what’s been making waves in fashion and luxury.

Everyone is talking about the U.S. elections this week. With Donald Trump taking one of the world’s main political offices once again, the audience is silent. The creative industry largely opposed the newly-elected president (who takes office in January next year), yet his supporters are already reaping the rewards— Tesla , owned by Elon Musk, who took a high-stakes gamble by backing Trump, has seen its stock soar by 79.54% in just one week, reaching a market capitalization of $1.031 trillion.

I’m just a casual observer here because the U.S. political system is both fascinating and complex. So I won’t dive into political texts, as talking is an easy business. At the very end every democratic system has its checks and balances.

So, I'll take a deep breath and return to what I know better: fashion. In the U.S., that includes Melania Trump, who recently made a public appearance in a Dior skirt suit following her husband’s victory. On the financial front, luxury brands and groups—which we’ve been analyzing closely in recent weeks—are revealing new dynamics. This week, Richemont released its financial results, with Japan once again standing out with double-digit revenue growth. In this edition, we’ll explore what drives Japan’s strong affinity for luxury. Plus, we’ll dive into the latest gossip on yet another LVMH management shake-up this year, Loro Piana’s major holiday expansion in London, and Berluti’s simple but bold new ad.

So, grab your favorite espresso (or perhaps a glass of champagne), settle in, and let’s explore the chic, the influential, and the simply fascinating moments from the past week.

x Marina 2Jour

1. California Passes Proposition 36 to Combat Retail Crime Surge

2. Profit Watch: Tracking Financial Wins and Losses

? Richemont Sales Hold Firm Amid Global Slowdown

3. Business Transition Bulletin: Mergers, Sales & Investments

? LVMH Takes Minority Stake in Swedish Brand Our Legacy

4. The Job Shift Journal: Hires, Fires & Transitions

? Top Exec Shake-Up Underway at LVMH

5. The Buzz: Marketing & Collab Chronicles

? 36 Windows of Christmas Wonder: Loro Piana at Harrods

6. The Lounge: Campaigns, Lookbooks, Edits

? Berluti: Wear and Tear

? Stella McCartney Unveils Ryder Bag Campaign Starring Sarah Snook

7. What is there behind Japan boom in luxury spending.

California Passes Proposition 36 to Combat Retail Crime Surge

California voters have overwhelmingly passed Proposition 36, a measure designed to tackle organized retail theft across the state, with 70.5% of voters in support. The proposition introduces stricter penalties for repeat offenders and enhances collaboration between law enforcement and retailers, aiming to deter organized crime and theft of high-value items.

Notably, Proposition 36 received strong backing from major retailers such as Walmart, Target, and Home Depot. Walmart contributed $3.6 million?to support the measure, with Target adding $1.5 million?and Home Depot donating $1 million. These contributions reflect the retail sector's commitment to reducing theft-related losses and enhancing the safety of both customers and staff.

The measure also allocates resources for community initiatives and partnerships with law enforcement to improve in-store security and streamline reporting of incidents, enabling better tracking of criminal networks involved in organized retail theft. Proposition 36's passage marks a significant step toward reducing retail crime in California, with hopes that it will serve as a model for similar legislation across other states.

A while ago, I read about a girl who was brutally attacked in an attempted robbery while she was at home in Paris. This isn’t directly related to retail crime but rather to crime in general. What unsettled me most was realizing that safety has become elusive and difficult to achieve, especially with lenient laws and loopholes that criminals exploit—often involving minors in their schemes. With that being said I consider any initiatives to toughen penalties very positively.

PROFIT WATCH: TRACKING FINANCIAL WINS AND LOSSES

Richemont Sales Hold Firm Amid Global Slowdown

历峰集团 , the Swiss luxury group housing 卡地亚 and Van Cleef & Arpels , was the last to display its financial results for ?for the three months ending September 30. Sales declined by 1% on a comparable basis, reaching €4.809 bln.

The group’s jewelry division, its largest segment, held steady with a 4% increase, generating €3.389 billion in sales. In contrast, watchmaking operations saw a 19% decline. Other segments, including fashion houses Maison Ala?a and Chloé, posted a 2% growth at constant exchange rates.

Across the globe there was the growth across all the regions except China. Richemont's (and luxury's in general) largest market saw a significant decline of 18% at constant exchange rate. In the meantime, Japan, the main hope in Asian market grew 25%.

My attention caught continued growth of online retail - which may be specific and complicated for jewelry and watch maisons with, let's say, luxury price point. Still the channel contributes no more than 6% of group revenue.

I found interesting in the presentation is sales by product line in H1 2025 (6m ending 30 Sept 2024). Who would have though writing instruments may bring 50% of what fashion brings. Fashion grew 10%, largely contributed by double-digit growth of Maison Ala?a .

Group's chairman Johann Rupert emphasized the importance of disciplined management, a long-term vision, and adaptability in response to global market cycles. Despite the challenging environment, Rupert expressed confidence in Richemont’s ability to deliver sustained growth over time. He commended Richemont’s teams for their dedication and craftsmanship, emphasizing that their expertise is crucial to the Group's continued success in offering distinctive luxury products to a discerning clientele.

The group is one of the few showing share growth since the beginning of the year. While this week saw a decline of 5.73%, growth since the start of the year is up 6.52%, with a current market cap of 69.83bln CHF.

Somehow I personally like this group more than others. Perhaps it’s because my first Cartier piece, featuring the brand’s iconic panther, was a gift from someone I barely knew in the worst times—a gentle reminder that a ray of light can pierce even the deepest darkness.

Find more in announcement and presentation .

THE JOB SHIFT JOURNAL: HIRES, FIRES & TRANSITIONS

Top Exec Shake-Up Underway at LVMH

07 Nov 2024. Rumor has it there’s yet another shake-up in 酩悦·轩尼诗-路易·威登集团 management this week. The group has made strategic shifts within its senior hierarchy since the beginning of the year—something I previously documented in a timeline —rejuvenating its executive committee and positioning the next generation of leadership.

Most recently, LVMH’s head of HR and synergies, Chantal Gaemperle, was dismissed—a move reported by Miss Tweed?and La Lettre?but unaddressed by LVMH. Gaemperle, who joined LVMH in 2007 as Group Executive Vice President of Human Resources and Synergies and has long been a member of the executive committee, leaves another open slot amid the ongoing overhaul.

It’s fascinating to watch this real-time French-style drama unfold. Having worked in a similar well-established structure for some years, I reflect on it this way:

Executive positions are often held by the same individuals for years, if not decades. Is that a bad thing? Not at all—if the leader evolves with the times and excels in their role. Sometimes, however, this doesn’t happen. Nor do synergies occur with certain departments or individuals.

Then, beyond the objective criteria, more subjective tools come into play—intrigue, scandal, and the like. We do remember how Succession series ended, don’t we?:)

BUSINESS TRANSITION BULLETIN: MERGERS, SALES & INVESTMENTS

LVMH Takes Minority Stake in Swedish Brand Our Legacy

LVMH Luxury Ventures, the investment arm of LVMH, has taken a minority stake in the Swedish fashion label OUR LEGACY , aligning with the brand's vision to expand globally. This strategic investment supports Our Legacy's plans to enter new markets and establish flagship stores in major cities, enhancing its reach and presence in high-end fashion.

Founded by Jockum Hallin?and Christopher Nying?in 2005, Our Legacy has gained popularity for its minimalist yet subversive designs, merging classic tailoring with modern aesthetics. The brand's focus on quality materials and timeless pieces has earned it a dedicated following, especially in menswear.

According to Julie Bercovy, CEO of LVMH Luxury Ventures Advisors, Our Legacy stands out with its blend of understated design and creative innovation, and LVMH is confident in its potential to make a meaningful mark on the global fashion scene.

By investing in Our Legacy, LVMH aims to diversify its portfolio further and bolster its presence in the contemporary fashion sector.

THE BUZZ: Marketing & Collab Chronicles

36 Windows of Christmas Wonder: Loro Piana at Harrods

Loro Piana ’s “Workshop of Wonders” installation has taken over Harrods , with 36 windows dedicated to showcasing the brand’s journey in sourcing luxury materials from around the world. The display, which runs from November 7, 2024, to January 2, 2025, combines a 1920s aesthetic with intricate, marionette-style mechanisms that provide a behind-the-scenes look at traditional craftsmanship.

Inside, a range of holiday pop-up stores adds interactive experiences, where visitors can personalize the iconic Grande Unita fringed cashmere scarf with custom monogramming by an in-store seamstress. Alongside, there’s a selection of cashmere and silk neckwear, beanies, and accessories. The Cashmere Atelier offers an immersive workshop where guests can craft their own holiday ornament from Loro Piana’s cashmere by appointment.

For the home, the Loro Piana Interiors pop-up?marks the brand’s first dedicated space for its Art of Good Living line, featuring home décor, holiday decorations, and exclusive textiles showcasing signature motifs like the thistle and Striped motif.

The children’s section also sees special attention, with monogrammed patches available for baby items and mini-me versions of classic Loro Piana pieces such as the Icer parka and Spagna jacket.

This Harrods takeover presents a festive offering of limited-edition collections, bespoke items, and dedicated holiday exclusives in an exclusive seasonal color palette.

While I’m not usually a fan of luxury brands loudly asserting their visibility, I generally like the idea and execution. Harrods might be the perfect location: Knightsbridge is one of London’s wealthiest areas, and Harrods often attracts this audience. With Loro Piana at a top-tier price point, it could gain traction here. Besides that, the display itself has a warm, Christmasy, fairytale feel—not overly commercialized.

Still, I’m curious about the customer’s chain of engagement (and the main aim): a customer would have to be quite devoted to read all the texts across 36 windows. Is there any magazine covering the full story? I’ll update you with my hands-on experience after I explore in person and visit the workshop x

I did also check the brand's website and social media—the coverage was direct yet informative; this crucial part is often overlooked in communicating projects.

THE LOUNGE: Campaigns, Lookbooks, Edits

Berluti: Wear and Tear

Love-love-love these latest official shots of Berluti shoes with worn soles. The idea behind them is:

Berluti soles are constructed using a technique known as Blake Stitch, which involves protecting the stitching with a second layer of leather. Wear and tear on this outer layer will gradually uncover the stitching underneath – that’s your signal that it's time to take your treasures back to the store for some TLC from our skilled leather artisans.?

What I see here is luxury brought to life in the most appealing way. With an authentic touch, it stands apart from overly polished content. The same idea is what I put into my lookbook project —more genuinely authentic pictures play an important role in building customer confidence for decision-making.

Stella McCartney Unveils Latest Ryder Bag Campaign Starring Sarah Snook

Stella McCartney has launched a new campaign for the Ryder bag, a piece with a bold sculptural silhouette inspired by her love for horses—symbols, she says, of strength, beauty, and power. The campaign stars Sarah Snook, celebrated for her role in Succession, embodying the elegance and resilience that the Ryder bag aims to reflect (this choice of campaign face doesn't fully click for me).

Alongside the campaign, there’s also The Stella Times —a brand newspaper covering the latest Stella McCartney activities, values, and of course, the new Ryder bag itself. Being a reader, I appreciate this initiative that highlights the brand’s—and Stella’s own—dedication to staying cruelty-free, with no leather or animal-based materials, a nod to an increasingly conscious market.

Let’s try to forget we’ve seen similar shots for the brand with Kendall Jenner not too long ago.

What is there behind Japan boom in luxury spending

As we approach the final announcements of financial results from luxury brands and groups, a few clear conclusions emerge. First, luxury is in trouble. CEOs are shrugging their shoulders and hesitantly forecasting what might come next. Luxury has entered its worst crisis in decades, and the reasons aren't easily explained. During COVID, the reasons for decline were obvious. Now, it’s not so clear. With a major slowdown in its key market, China, the underlying causes appear more complex.

Another clear takeaway is that Japan has unexpectedly taken on the mantle of luxury shopping, showing growth in spending across various financial reports. While this market alone isn’t enough to offset the overall decline in the Asia market—it's generally 7-10% of total luxury group/brand revenue, while Asia excl. Japan is 30-35% (I’d compare it to Bottega Veneta for Kering—a bright spot in the report but far less influential than Gucci), I find it significant enough to ask the question: what’s driving the surge in luxury spending in Japan?

Japan saw significant growth in luxury spending in 2024, driven by several key factors:

• Yen Strengthening: The yen gained strength against major global currencies in 2024, improving the purchasing power of Japanese consumers when buying imported luxury goods. For example, a stronger yen reduces the effective cost of euro-denominated items, making products from European brands more affordable.

For instance, the USD/JPY exchange rate, which was 161.62 on July 3, 2024, improved to 140.66 by September 16, 2024, marking a 12.97% increase in the yen's value against the U.S. dollar (source ). Back in 2021, the USD/JPY exchange rate hit a low of 102.69, while the latest update as I write this edition is 152.695 as of November 8, 2024. This represents a 48.7% increase since 2021.

This appreciation made imported luxury goods more affordable for Japanese consumers, boosting domestic luxury spending.

This currency appreciation made luxury goods relatively cheaper for local consumers, encouraging spending that might have otherwise been limited by higher prices during periods of yen depreciation.

• Increased Wages: In response to inflation and workforce demands, many Japanese companies, including major corporations, have raised wages for employees. Some companies, such as Toyota, implemented wage hikes averaging around 5–6% in 2024, which provided consumers with additional disposable income.

Higher wages have particularly impacted middle- and high-income earners, allowing them to allocate more funds to discretionary spending on luxury items.

• Shift in Domestic Spending: Although international travel has largely resumed, there’s still a lingering impact from the travel restrictions that characterized recent years. Japanese consumers have grown accustomed to shopping for luxury goods locally, especially in areas like Tokyo’s Ginza and Omotesando, as well as luxury hotspots such as Osaka. Rather than jet-setting abroad, Japanese consumers are embracing the concept of luxury staycations, allocating funds that would have been spent on international trips to local experiences and high-end purchases.

Additionally, domestic shopping for luxury goods is now perceived as a sophisticated alternative to overseas shopping, allowing buyers to make high-end purchases without the extra costs and complexities of international travel. This trend, fueled by a broader preference for luxury experiences within Japan, has led to increased foot traffic in flagship stores, luxury malls, and department stores.

*** With Japan’s unique combination of economic factors, cultural preferences, and strategic marketing, it’s no surprise that the country has emerged as a stronghold for luxury growth. Major brands are likely to continue doubling down on Japan, offering exclusive products and experiences that resonate with Japanese buyers.

However, as the global economic landscape remains uncertain, it will be interesting to see whether Japan’s luxury boom can sustain itself or if brands will need to adapt further to maintain momentum. For now, Japan’s luxury spending surge underscores the evolving role of this market in the global luxury ecosystem, setting it apart as an important player in shaping luxury consumption trends worldwide.

Stay tuned for the next week edition x