Luxury Headlines – 17/01/2024
-
Brunello Cucinelli Reaches Record Revenues in 2023
In defiance of the global luxury slowdown in 2023, Brunello Cucinelli has announced record revenues of €1.14 billion in 2023, up 23.9% compared to 2022. It has thus surpassed its €1 billion target revenue many years ahead of schedule. On the heels of exceptionally strong holiday sales, the brand had its strongest quarter on record in Q4 2023 with revenues of €321 million, up 15.6% YoY. Renowned for its high-quality craftsmanship and quiet luxury aesthetic, Cucinelli stated that its focus on exclusivity and wealthier customers were the drivers of its success in 2023. The company also invested €78 million internally in the areas of production, commercial, technological, and digital. All markets grew by double digits, with Europe growing 37.6%, Asia up by 40.4% and the Americas growing 20.8% YoY. For 2024, the company expects to achieve 10% YoY growth, markedly higher than the guidance for the wider luxury market, with robust demand coming from the Middle East, Korea, and Japan.
-
Chanel Takes Secondhand Retailer to Court
Chanel is suing pre-owned luxury retailer What Goes Around Comes Around (“WGACA”) over accusations that WGACA is selling counterfeit goods and implying an affiliation with the French luxury house in its marketing materials. This trial effectively is about the meaning of “nominative fair use”, in which a reseller can use a brand name to describe an authentic second-hand product for sale but cannot affiliate itself with the brand. The outcome will have a significant impact on how secondhand luxury retail can market their products. Chanel is not the only big luxury name to have sought legal action against resellers, as Tiffany, Louis Vuitton, and Hermès have also pursued legal action in the past, with varied outcomes. This could end up being a landmark case whichever way the ruling goes, given the surge in popularity of second-hand luxury sales. If found guilty, WGACA could be liable for up to $23 million in damages.
-
Kering Invests in Biomaterials Start-Up
Kering has invested an undisclosed sum in Italian biomaterials company Mogu as part of its $12 million funding round led by CDP Venture Capital and the European Circular Bioeconomy Fund, as part of its support for technologies focused on materials innovation, and leather alternatives in particular. Balenciaga previously released a coat made from the start-up’s mushroom-derived leather alternative in 2022. The company is planning to use the funds to build a demo plant and expand its research and development efforts for mycelium-based products.
-
Louis Vuitton Plans to Expand in Men’s Jewelry
Francesca Amfitheatrof, artistic director for watches and jewelry at Louis Vuitton and the artist behind the brand’s first unisex line of fine jewelry in 2020, announced the brand’s expansion into men’s jewelry, with a launch of its first fine jewelry collection for men. Men’s luxury jewelry is a growing market, with Euromonitor reporting 2023 growth of 7.3% to $7.3 billion, outstripping the growth in women’s jewelry ($44 billion with a growth of 4.6%) albeit off a smaller base and thus representing a significant opportunity for product expansion. This is especially true in view of the popularity of men’s fine jewelry among male celebrities. The collection called “Les Gastons Vuitton” comprises 18 pieces with prices ranging from €1,900 to €145,000 for “masterpiece” necklaces in diamonds and white gold. Expanding into men’s jewelry is a logical move for the brand, as the brand can leverage its heritage, while having the resources to experiment with new materials.
-
Puig Acquires Dr Barbara Sturm
Spanish luxury group Puig has acquired German skincare brand Dr Barbara Sturm for an undisclosed amount. Although Puig recently bought Byredo and Charlotte Tilbury and was originally not planning on further acquisitions, its rivals have continued to expand, most notably in the case of Kering acquiring Creed and L’Oréal buying Aesop last year. The addition of the Dr Barbara Sturm brand to its investment portfolio will allow it to expand into skincare, strengthen its presence in the US and reach its target revenue of €4.5 by 2025. With estimated annual sales of €70 million, Dr Barbara Sturm has capitalized on the trend of science-based skincare and has managed to achieve cult status, with a prominent celebrity following in the US. The brand has also opened 7 standalone spas worldwide, five of which are in the US, to provide experiential flagships.
Subscribe to receive latest insights
Let us partner for success.
Contact us and see how we can help your experience transformation goals.