2Jour Gazette | Edition 8 | 11 Nov - 17 Nov 2024

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

As a child, I loved playing chess. It involved thinking ahead, weaving each piece's movement into a larger strategy. Who should move forward? Who should be sacrificed? Who will protect the king?

I also loved Math, and I remember the basic rule well: rearranging the addends doesn’t change the sum.

Watching the current rearrangements in the fashion industry, it reminds me of both chess and math. Powerful those who are on top of business empire shift the pieces, but it turns out that they move only according to a set script. The equations have many variables, but their rearrangement yields the same result. Of course, the luxury business extends far beyond a chessboard, and the equations are far more complex. But it seems neither the global crisis nor a more targeted fashion one has yet become a lever to introduce new factors (and players) into the game. And there’s nothing left to shield the king.

This edition covers the reshuffling of talent and management in the fashion world, two authoritative reports on luxury (which I consider but don’t take as a road-map), and much more that I found interesting last week. Let’s take it step by step.

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. Luxury Market Faces Slowdown: McKinsey and Bain Identify Digital and Pricing as Keys to Stability

2. Louis Vuitton Opens New Flagship Store on Manhattan's East 57th Street

3. Burberry's New Strategy: Lower Prices, British Heritage, and Core Classics

4. Luxury Houses Shift High Jewellery Presentations to Autumn Amid Rising Demand

5. Business Transition Bulletin: Mergers, Sales & Investments

? Tapestry and Capri Deal Officially Over

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

? Phillip Lim Announced Departure from 3.1 Phillip Lim

? Peter Do Left Helmut Lang

? LVMH Restructures Leadership. Again

? Is Chanel Eyeing Bottega Veneta's Matthieu Blazy as Creative Director?

7. The Buzz: Marketing & Collab Chronicles

? SKIMS and Dolce & Gabbana Team Up for Lingerie Collection

8. The Lounge: Campaigns, Lookbooks, Edits

? Gucci Takes On The Journey Towards The Festivities

9. Mood Of The Week

Luxury Market Faces Slowdown: 麦肯锡 and 贝恩公司 Identify Digital and Pricing as Keys to Stability

Both McKinsey and Bain consulting companies have released reports examining the luxury market’s current state and future outlook amid economic shifts. Each report highlights slowing growth in 2024, driven by economic uncertainties, changing consumer behaviors, and regional variations, especially in China and Europe. Both firms identify strategic adaptations—such as price management, digital innovation, and focusing on high-performing segments—that are crucial for luxury brands to sustain resilience and return to growth in a challenging market environment.

McKinsey & Company's recent "State of Fashion 2025" report highlights several key trends and challenges facing the luxury fashion industry:

• Global growth projections: The report forecasts a global industry growth of 2% to 4% in 2024, with the luxury segment expected to generate the largest share of economic profit. However, growth in the luxury sector is anticipated to slow to 3% to 5%, down from 5% to 7% in 2023, as consumers moderate spending following a post-pandemic surge.
• Regional variations: European and Chinese markets are projected to experience slower growth, while the U.S. market is expected to see an uptick after a relatively weak 2023, reflecting a slightly more optimistic outlook.
• Shift in Asian manufacturing focus: The report notes a strategic pivot among high-street fashion brands toward Asian growth markets, particularly India, for manufacturing. This shift is driven by China's economic deceleration, changing consumer preferences, and the return of international travel, prompting brands to explore alternative manufacturing hubs.
• Challenges in the non-luxury segment: The non-luxury fashion segment is expected to grow by 2% to 4%, with the European market likely expanding by just 1% to 3%. Factors such as declining consumer confidence and reduced household savings are anticipated to restrain spending in this sector.
• Strategic implications for brands: In response to these trends, fashion brands are advised to identify new value pockets and performance drivers. This includes leveraging digital transformation, enhancing supply chain resilience, and adapting to evolving consumer behaviors to navigate the complex and uncertain market landscape.

Overall, McKinsey's report underscores the necessity for fashion brands to remain agile and responsive to shifting market dynamics, particularly in the luxury segment, to sustain growth and profitability in the coming years.

Altagamma-Bain latest luxury report indicates that the global personal luxury goods market is projected to decline by 2% in 2024, marking one of the industry's weakest years on record. This downturn is attributed to significant price increases by brands and economic uncertainties, which have reduced the customer base by approximately 50 million over the past two years, now totaling around 350 million consumers.

The report highlights a notable decline in China's market, with sales expected to drop by 20-22% year-on-year, following years of growth driven by the wealthy and expanding middle class. This marks the first significant decline for the industry since the 2008-09 financial crisis, excluding the pandemic period.

Despite these challenges, certain segments within the luxury market are performing well. The secondhand market is experiencing growth, particularly in categories like jewelry, clothing, and leather goods. Additionally, outlet channels are outperforming as consumers seek value. Luxury spending on experiences, such as hospitality and dining, is also expected to rise.

Looking ahead, Bain forecasts that the personal luxury goods sector could see growth between 0% and 4% in 2025, with a recovery in China anticipated in the latter half of the year. The growth outlook for the market depends on the strategies brands adopt, especially regarding pricing and innovation.

Bain's report underscores the need for luxury brands to adapt to shifting consumer behaviors and economic conditions to navigate the current downturn and position themselves for future growth.

***

I don't believe in predictions (if they are not provided with strong research and stat base)—they tend to fail. While trends (and such reports to consider) are necessary for brands and groups to remain relevant and competitive, there is a core structure that needs to be established, which includes:

1) retail?network

2) online presence (e-shop or an official website representing the brand)

3)?customer relationship management

I don’t include the evolving features of the system, like?marketing?activities or presentation, as they are subject to updates based on trends. I also do not include the basic principles of?luxury, such as quality and service, as they are assumed by default.

Neglecting any of these aspects will surface at the most inconvenient time, while consistent improvement and overall control ensure stability, regardless of any predictions made by consulting firms—which, as experience shows, often change:)

路易·威登 Opens New Flagship Store on Manhattan's East 57th Street

14 Nov 2024. Louis Vuitton launched its new five-story flagship store at 6 East 57th Street in Manhattan, situated directly across from its original site, currently undergoing renovations.

The store includes several unique features:

• Retail Floors: Multi-level retail spaces showcase Louis Vuitton’s full product range, including leather goods, ready-to-wear collections for men and women, and accessories.
• Le Café Louis Vuitton: The brand’s first café in the United States, offering a curated menu in a dedicated dining space.
• Le Chocolatier: A specialty chocolate shop featuring exclusive confections crafted by pastry chef Maxime Frédéric.
• Exhibition Spaces: Designated areas to display exclusive and seasonal collections by Creative Director Nicolas Ghesquière.
• Personalization Studio: A dedicated space for custom services, where customers can add monograms and personalize products according to their preferences.

Approximately 1,800 guests attended the opening event, including Martha Stewart, Jennifer Connelly, Bradley Cooper, and Ana de Armas. The event integrated New York influences, with features such as live doodling by a New Yorker cartoonist, LV-branded deli-style sandwiches, and classic Manhattan-inspired cocktails.

All-in-one current tendancies for retail spaces which are all about experiences, as well as a nod to UHNW clients with personalisation services.

Burberry 's New Strategy: Lower Prices, British Heritage, and Core Classics

14 Nov 2024. Burberry announced a strategic overhaul led by new CEO Joshua Schulman, aiming to revitalize the brand by emphasizing its British heritage and iconic products, such as trench coats and scarves.

Schulman acknowledged recent pricing missteps, stating, "We took pricing too high across the board," and pledged a more measured approach, particularly in bags and shoes. The revised strategy led to an immediate surge in Burberry’s stock, although shares remain down 35.27% for 2024.

Key elements of Schulman’s plan include:

• Pricing strategy: The company also plans to adjust its pricing strategy, introducing more entry-level products, particularly in the handbag category, while maintaining its luxury positioning
• Product focus: The brand will concentrate on classic British outerwear and scarves and continue featuring British figures in campaigns, such as Cara Delevingne and Olivia Colman
• Distribution and operations: Burberry plans a 40 million pound ($50.67 million) cost-saving program, shifting focus to owned stores and online channels over wholesale and outlets

In the first half of its fiscal year, Burberry reported an adjusted operating loss of ￡41 million, marking a significant downturn. Sales declined by 20% at constant exchange rates, with notable decreases across key regions:

• Asia Pacific: Sales fell by 28%.
• Americas: A decline of 18% was recorded.
• Europe, Middle East, India, and Africa (EMEIA): Sales decreased by 10%.

Despite this Burberry aims to reach annual revenues of 3 billion pounds in the future, with no specific timeline provided.

Joshua Schulman, emphasized the importance of collaboration between the brand's design and marketing teams to create a unified vision and cohesive branding. Creative Director Daniel Lee, who joined Burberry in 2023, has faced difficulties replicating his previous successes, particularly in the leather goods and footwear categories. While the company has not made an official statement regarding Lee's future, industry analysts are closely monitoring potential changes in the brand's creative leadership as part of the broader strategic overhaul.

Recent media reports have suggested that Italian luxury brand Moncler is considering a takeover bid for Burberry. These rumors have contributed to fluctuations in Burberry's stock price. However, sources close to the matter have denied that any formal discussions are underway. CEO Joshua Schulman has declined to comment on the speculation but emphasised that Burberry's independence is a strategic advantage.

Luxury Houses Shift High Jewellery Presentations to Autumn Amid Rising Demand

based on Financial Times article

Luxury houses traditionally align high jewelry showcases with Paris Haute Couture Week in January and summer. This year, however, a new autumn presentation season has emerged, driven by growing high-net-worth consumer demand. Federica Levato, senior partner at Bain & Company, notes that autumn sees increased luxury shopping, with Western markets preparing for Christmas, Hanukkah, and New Year gifting.

High jewelry sales remain resilient despite economic pressures. Luxury groups like 酩悦·轩尼诗-路易·威登集团 and 开云 reported declines in other categories, but high jewelry sales have surged, with executives noting record sales of million-dollar pieces, though entry-level lines have slowed.

Piaget will host an autumn event in Abu Dhabi for its Essence of Extraleganza collection, marking its 150th anniversary and featuring exclusive pieces, including a new Andy Warhol watch. CEO Benjamin Comar highlights the importance of cultivating client relationships beyond traditional presentations.

迪奥 will also unveil its Diorama & Diorigami collection in Abu Dhabi, while Tiffany & Co. introduced its Céleste collection in Madrid, reflecting the brand’s strategy to boost its high jewelry profile in Europe. President Anthony Ledru emphasizes the region’s growth potential, with Tiffany opening a high jewelry boutique at Harrods in London and showcasing iconic designs at Selfridges.

卡地亚 premiered its Tuttitutti collection (the pin is my choice), inspired by its Tutti Frutti style, at the Venice Film Festival, while Bvlgari launched its Tubogas collection at New York Fashion Week, with trunk shows planned in Dubai. Messika has established its annual jewelry fashion show at Paris Fashion Week, which founder Valérie Messika says enhances international visibility.

Other maisons, such as Montblanc and Van Cleef & Arpels , presented unique offerings outside traditional schedules, with the latter taking clients to Miami for its Treasure Island collection. Miami’s rise as a luxury destination has been fueled by a favorable tax system and a high-end cultural scene, making it ideal for brands targeting affluent clientele.

BUSINESS TRANSITION BULLETIN: MERGERS, SALES & INVESTMENTS

Tapestry and Capri Holdings Limited Deal Officially Over

14 Nov 2024. Tapestry Inc. and Capri Holdings have officially terminated their proposed $8.5 billion merger. This decision follows a U.S. District Court ruling on October 24, 2024, which blocked the merger due to antitrust concerns raised by the Federal Trade Commission (FTC). The FTC argued that combining the two companies would reduce competition in the "accessible luxury" handbag market, potentially leading to higher prices for consumers.

Initially, both companies filed an appeal against the court's decision on October 28, 2024. However, they have now mutually agreed to terminate the merger, citing the uncertainty and potential length of the legal process, which was unlikely to be resolved before the deal's expiration date of February 10, 2025.

Joanne Crevoiserat, CEO of Tapestry, emphasized the company’s readiness to drive growth through its strong brand portfolio and operational agility. Building on a successful first quarter, Tapestry aims to accelerate organic growth, enhance cash flow, and increase shareholder returns.

Tapestry has launched an additional $2 billion share repurchase authorization, to be partially executed through an Accelerated Share Repurchase program, raising its available funds for share repurchases to $2.8 billion.

Following the merger termination, Tapestry will redeem $6.1 billion in senior notes issued for the acquisition under a mandatory redemption provision. Tapestry will also reimburse Capri $45 million for transaction-related expenses.

Tapestry’s Fiscal 2025 guidance remains unchanged, with plans to update its outlook in the February 2025 earnings announcement (more in Tapestry press-release here).

Capri's Chairman and CEO, John D. Idol, emphasized the strength of the company’s portfolio (Versace, Jimmy Choo, and Michael Kors), comprising iconic brands with strong consumer loyalty, a substantial distribution network, and an experienced workforce of 15,000 employees. Capri is set to leverage its financial resources to implement initiatives to drive growth.

Capri aims to drive brand desirability through captivating communication, relevant product offerings (broadening options for aspirational luxury consumers and optimizing pricing for better full-price sell-through), and a cohesive omnichannel strategy. While the store count for Versace and Jimmy Choo is expected to remain stable, Capri intends to reduce the number of Michael Kors stores to 650 (as of September 28, 2024, there were 755 Michael Kors stores). Enhancing digital capabilities will be critical for e-commerce growth, which is prioritized for each brand, alongside targeted wholesale efforts to meet consumer preferences and support revenue stabilization (more in Capri press-release here).

Both companies' stock prices have remained nearly the same as when the court decision was announced almost three weeks ago. Capri's stock is down by 51.18% over the past month, while Tapestry's has continued to grow, up 25% in the same period.

THE JOB SHIFT JOURNAL: HIRES, FIRES & TRANSITIONS

Phillip Lim Announced Departure from 3.1 Phillip Lim

13 Nov 2024. Designer Phillip Lim announced via Instagram his departure as creative director from his eponymous brand, 3.1 Phillip Lim, which he co-founded with Wen Zhou in 2005. Zhou will continue as CEO and sole proprietor, while Lim plans to pursue new ventures. His final collection for the brand was Spring/Summer 2025, marking the end of his 20-year tenure.

Peter Do Left HELMUT LANG

13 Nov 2024. Helmut Lang Brand announced that Peter Do will step down as creative director at the end of November 2024. Peter Do joined the brand in 2023, aiming to revitalize its minimalist heritage. His debut collection for Spring/Summer 2024 received mixed reviews, and the brand did not present a Spring 2025 collection. Do expressed gratitude to his team and described the experience as an “incredible journey.” The brand has not yet announced a successor.

Helmut Lang, established in 1986 by Austrian designer Helmut Lang, is renowned for its minimalist and avant-garde fashion. After Lang’s departure in 2005, the brand underwent several leadership changes.

酩悦·轩尼诗-路易·威登集团 Restructures Leadership. Again.

14 Nov 2024. LVMH, the world's leading luxury goods conglomerate, has made significant changes in its top management across various divisions (again, previous appointments made this year are here). In a dry press-release it's mentioned that after consulting with the Sustainability and Governance Committee of the Board of Directors, Bernard Arnault, Chairman and Chief Executive Officer of LVMH, has decided to make the following appointments:

Wines and Spirits – Mo?t Hennessy

• Jean Jacques Guiony will be appointed President and CEO of Mo?t Hennessy, effective February 1, 2025. He succeeds Philippe Schaus, who, after 21 years with LVMH, will step back into non-executive roles while supporting the transition through mid-2025.
• Alexandre Arnault ?will take on the role of Deputy CEO of Mo?t Hennessy, also beginning February 1, 2025, to support Guiony in leading the Wines and Spirits division.
• Charles Delapalme will become President and CEO of Hennessy?following a transition period with current CEO Laurent Boillot , whose future role within LVMH will be announced in due course.

Human Resources

• Maud Alvarez-Pereyre will be appointed Executive Vice President of Human Resources?for LVMH, joining the Executive Committee?on December 1, 2024.

Finance

• Cécile Cabanis , currently a member of the Executive Committee, will step into the role of Chief Financial Officer?for LVMH, succeeding Jean-Jacques Guiony, as of February 1, 2025.

SEPHORA – Beauty Retail

• Guillaume Motte , President and CEO of Sephora, will join the Executive Committee?effective January 1, 2025, reflecting Sephora's strategic importance within the Group.

While the changes in Finance were announced previously and have now been organized into a timeline, the appointment in the Human Resources division follows what was likely an unceremonious farewell to the former HR executive amid an internal corporate scandal (the details of which are known only to those directly involved). Here is some tea on Alexandre Arnault’s appointment, which I read in a Financial Times article covering the succession saga within the Group:

• Alexandre will act as "a very close second" to Guiony, with plans for Guiony, a seasoned executive at LVMH, to guide and eventually transition leadership to Alexandre. This role is expected to give Alexandre experience in managing a portfolio of brands, preparing him for more significant responsibilities in the group;
• He played a central role in Tiffany’s transformation since LVMH’s acquisition in 2021. Prior to Tiffany, he gained experience in luxury goods through his leadership at RIMOWA , LVMH's luggage brand, where he led a successful brand revitalization;
• Mo?t Hennessy has seen recent sales declines, particularly in key markets like China and the U.S., where demand for cognac and champagne has slowed. Guiony, who has chaired LVMH’s Vins d’Exception portfolio apart from performing top-finance role, brings deep expertise in the wines sector, which will be vital as he and Alexandre tackle the challenges in the division;
• Alexandre’s appointment has drawn attention as part of LVMH’s succession planning, with each of Bernard Arnault’s five children taking increasingly prominent operational roles. This move provides Alexandre with an opportunity to lead a division within LVMH, setting the stage for future roles within the group. His appointment reflects LVMH’s continued emphasis on succession planning within the Arnault family;
• Mo?t Hennessy, LVMH's Wines and Spirits division, remains a vital component of the conglomerate's portfolio despite not being its top revenue generator. This division encompasses prestigious brands such as Mo?t & Chandon, Veuve Clicquot, and Hennessy, which significantly contribute to LVMH's brand prestige and market positioning. These brands not only enhance the group's luxury image but also provide diversification across different luxury sectors, mitigating risks associated with market fluctuations in other divisions.

Is 香奈儿 Eyeing Bottega Veneta 's Matthieu Blazy as Creative Director?

Recent industry speculation suggests that Matthieu Blazy, currently the creative director of Bottega Veneta, is a leading candidate for the creative director position at Chanel. This role has been vacant since Virginie Viard's departure in June 2024.

Blazy brings a wealth of experience to the table, with a career spanning several high-profile luxury brands. His previous roles include stints at Maison Margiela , where he worked on the artisanal line; CELINE , where he collaborated closely with Phoebe Philo; Raf Simons, where he contributed to ready-to-wear collections; and Calvin Klein , where he was part of a transformative period under Raf Simons’ direction. He joined Bottega Veneta in 2020 as the Design Director for Ready-to-Wear. In November 2021, he was promoted to Creative Director, succeeding Daniel Lee. The brand was named "a bright spot" during recent 开云 earning call with the growth 5% in Q3 2024.

Other designers reportedly considered for the Chanel position include Thom Browne, Simon Porte Jacquemus of JACQUEMUS . , and Pieter Mulier of Maison Ala?a . Additionally, Marc Jacobs has expressed interest in the role.

My personal top choice for the role would be Hedi Slimane, who recently exited Celine. Rumor has it he was also considered for the position of creative director; however, due to differing visions over control, the brand's management was unable to reach a consensus. When I heard the latest speculations, I tried to analyze the creative direction of each potential designer, but I couldn’t envision Chanel by Matthieu Blazy. I really like his work at Bottega Veneta—currently, it's one of my favorite brands in the context of ready-to-wear. However, what Bottega offers is more about playing with clean lines and color, which reflects the essence of Blazy's previous brands as well. In contrast, Chanel represents a modern adaptation of embellishment, a play with prints, and subtle engagement with trends, all interpreted through its unique character. I’ve seen similar work from Hedi Slimane, and his latest collection at Celine could almost be mistaken for Chanel. Not sure whether Matthieu Blazy can interpret it masterfully—not because he is not talented enough, but because he has different style. Or maybe it’s because I like Bottega Veneta under his tenure so much that don’t want him to leave:)

An official announcement regarding Chanel's new creative director is anticipated by mid-December 2024.

THE BUZZ: Marketing & Collab Chronicles

SKIMS and DOLCE&GABBANA Team Up for Lingerie Collection

Dolce & Gabbana and Kim Kardashian’s shapewear brand Skims have announced a new collaboration, marking a strategic fusion of high-end Italian luxury with Skims' comfort-focused, inclusive design ethos. Set to launch on November 19, this limited-edition collection will include lingerie, sleep sets, and clothing. The collection aims to bring Skims' shapewear-inspired, accessible lingerie into Dolce & Gabbana's Italian aesthetic, broadening the appeal for both brands.

While I’ve heard a few disappointed comments about this collaboration, and although brand partnerships are becoming a bit tiresome, I think this one is a perfect match. Dolce & Gabbana has had a lingerie category and lingerie-inspired clothing for ages, while Skims has Kim Kardashian behind it, who also starred in an ad for the collaboration. Both Kim and Dolce & Gabbana embody the Lover archetype, and they pair so well together.

*Meawhile absolutely don't like ad campaign.

A few years ago, Skims also collaborated with Fendi .

Dolce & Gabbana, established in 1985, remains a privately held company under the ownership of its founders, Domenico Dolce and Stefano Gabbana. For the fiscal year ending March 2024, the company reported revenues of €1.871 billion, marking a 17% increase from the previous year. Despite this growth, the company recorded an operating loss of €13 million, reflecting ongoing operational and market challenges.

CEO Alfonso Dolce has indicated that while the company is open to new investors through methods such as stock listings or other financial instruments, it is not currently ready for an initial public offering (IPO). The primary focus remains on strengthening the business before considering a public listing.

Skims, founded in 2019 by Kim Kardashian, has rapidly gained prominence in the shapewear and loungewear market. With revenues reaching approximately $750 million in 2023—a 50% increase from the previous year—the brand is valued at around $4 billion following a $270 million funding round in mid-2023. Known for its inclusive sizing and direct-to-consumer approach, Skims is expanding its influence in the fashion industry, partnering with luxury retailers and branching out into global markets.

THE LOUNGE: Campaigns, Lookbooks, Edits

Gucci Takes On The Journey Towards The Festivities

Nothing too special about this newly released ad campaign featuring wealthy American story in Aspen, except it gives off such a carefree feeling that I really need :)

And for dessert, I'll share the latest cover of The Economist—my mood of the week. To describe it better, I'd remove the word "economy."

Stay tuned for the next week edition x