The Fashion Luxury Industry, like other industries, has seen the rise of big corporations such as LVMH or Kering. Some luxury goods conglomerates are more diversified than others. LVMH portfolio, for example, includes high-end brands in the categories of wines & spirits, fashion & leather goods, perfumes & cosmetics, watches & jewelry, selective retailing (e.g. Sephora) … More Luxury and Fashion Corporations
Many fashion retailers define their strategy starting from their value proposition and key positioning levers (assortment, price, experience, speed, channels…) to differentiate themselves from competition. It´s part of their DNA but also define their purpose and business model. The segmentation of fashion brands is illustrated on a pyramid where the more expensive brands are on … More The Fashion Pyramid of brands
The fashion industry nature stresses the balance sheet, very sensitive between days of payment (days of payables) and collection period (days of receivables), with a high level of uncertainty because of fashion trends (if the customer likes the product or not), weather conditions (a warm winter will let stores with high levels of coats and jackets … More Nike, the new high-end fashion brand
When I decided to start this blog, a couple of years ago, the main objective was to link art and science, as fashion is art and retail is, probably, operations. Fashion experts differenciate fashion companies from apparel retailers, but the business complexity behind these two models is quite unkown. Traditionally (1980-Now), there used to coexist … More Fashion Lab, the creativity Mecca
Is Michael Kors a luxury brand any more? As I mentioned in a previous article about the luxury fashion pyramid , Michael Kors is located in the aspirational luxury segment. But after their uncontrolled growth strategy, betting for every channel, we can argue about it. If you see the same bag many times in your daily … More Michael Kors to shutter up to 125 stores in next 2 years
Many brands have evolved into groups that focus on different customer profiles. On the one hand, we have companies such as GAP, H&M, Inditex, Mango, Armani…that are focus on many segments in order to respond to different income, gender, style (e.g. COS vs H&M), size (e.g. Violeta by Mango) or categories (e.g. beauty, homewear) profiles. … More Diversification and Segmentation in Fashion retail
It´s time for the digital awakening of luxury brands. During the last decade, many market places took the lead of the online fashion industry while centenary luxury houses were reluctant to sell online. On the one hand, some platforms betting for a wide luxury offer (the ones on the top of the pyramid) like Yoox – … More 24 Sèvres, LVMH new digital experience
Consultants like tables, diagrams and charts… Fashion is not a science (some might disagree…) but using this “figure” makes easier to understand and organize something so complex as “needs”. Maslow was an American psychologist and was best-known for creating in 1943 the hierarchy of needs, or Maslow´s pyramid. As I said, using a pyramid is … More Maslow, evolution and Luxury Fashion
IESE Business School celebrated the 17th edition of Fashion and Luxury Goods industry meeting created by Professor Nueno seventeen years ago. Watch the video summary of the meeting. Once again, many CEOs were representing the luxury industry, mainly fashion and beauty houses. Patrizio di Marco (Dolce Gabbana), Alessandro Varisco (TWINSET Simona Barbieri), Giorgio Presca (Golden Goose), … More Fashion Luxury elite meets at IESE
LVMH, from exclusive fashion and luxury goods to exclusive media content … More Nowness, LVMH online media platform
