Yesterday Farfetch, the online platform that sees NET-A-PORTER founder Natalie Massenet as a non-executive co-chairman, announced the acquisition of the group owner of, among others, Virgil Abloh Off-White for 675 million $.

The 10 year old company has still not reached break even and it went public one year ago.
Investors have not been shy in judging this new move that took the shares down to more than 40% in the after-market time.
The share peaked at 29.69$ in March 2019, yesterday with the market open was at 18.25$ and it went down to 10.9$ after market closure.

The acquisition, as well as the previous ones made of Stadium Goods, a streetwear online platform, and Topline, a Chinese #luxury #ecommerce, is heavily weighing on the bottom line of the digital giant.

A bold and unusual decision against the tide as recently the trend has been about luxury groups such as Richemont buying e-commerce platform like YOOX NET-A-PORTER GROUP.

On the other side:

– is Farfetch well equipped in terms of brand strategists and brand management to drive such a complexity out of the sandpit of losses?
– is Off-White a phenomenon built to last? Will it keep Virgil Abloh on board?

Clear vision and strong management are a must.

“Yes, Mr. Gray, the gods have been good to you. But what the gods give they quickly take away. You have only a few years in which to live really, perfectly, and fully.
When your youth goes, your beauty will go with it, and then you will suddenly discover that there are no triumphs left for you, or have to content yourself with those mean triumphs that the memory of your past will make more bitter than defeats. Every month as it wanes brings you nearer to something dreadful.
Time is jealous of you, and wars against your lilies and your roses. You will become sallow, and hollow-cheeked, and dull-eyed. You will suffer horribly….
(…)

Live! Live the wonderful life that is in you! Let nothing be lost upon you.
Be always searching for new sensations.
Be afraid of nothing. . . .
A new Hedonism — that is what our century wants.
You might be its visible symbol.”

Fashion brands are very much involved in a quest for youth.

Dorian Gray sabotaged himself while trying to destroy his real self, the one getting old.

Instead of making the best out if its life, he ruined it chasing an illusion.

Time to wake up and start doing a great daily

maintenance?

Time to accept and take care of all the customers?

Time to leave age obsession?

This post was inspired by by Tracy Short question, this morning on LinkedIn, about books.
A must read for fashion and luxury professionals is the book written by Ryan Holiday “Ego is the Enemy. the Fight to Master Our Greatest Opponent”.

Hereafter great quotes from the book.

“Those who have subdued their ego understand that it doesn’t degrade you when others treat you poorly; it degrades them.”

“And that’s what is so insidious about talk. Anyone can talk about himself or herself (…) So what is scarce and rare? Silence. The ability to deliberately keep yourself out of the conversation and subsist without its validation. Silence is the respite of the confident and the strong.”

“When we remove ego, we’re left with what is real. What replaces ego is humility, yes—but rock-hard humility and confidence. Whereas ego is artificial, this type of confidence can hold weight. Ego is stolen. Confidence is earned (…) It’s the difference between potent and poisonous.”

“Attempting to destroy something out of hate or ego often ensures that it will be preserved and disseminated forever.”

“If you can’t swallow your pride, you can’t lead.”

“If you start believing in your greatness, it is the death of your creativity.”

That’s it.

Valentino Garavani founded the eponymous Maison in 1957.
Thanks to the support of Giancarlo Giammetti the Maison grew in prestige, appreciation and business.
Valentino and Giammetti, Yin and Yang of the Maison, established strong personal relationships and friendships with the most elegant women in the world.
Jackie Kennedy, Elizabeth Taylor, Marella Agnelli among others became natural ambassadresses of the elegant, chic, stylish brand.

In 1967 Valentino won the prestigious Neiman Marcus Award, in 1971 was portrayed by Andy Warhol and in 2006 received the Legion d’Honneur.
The infamous “red” Valentino is the trademark of the brand, now owned by Qatari Mayhoola, and directed by Pierpaolo Piccioli.
Despite having sold the brand in 1998, the duo Valentino-Giammetti still seat front row at the shows celebrating the evolution of the Maison style.

It is a unique case where the retired founders of a Maison still support the new era, with love and passion, trust and loyalty.

Such an endorsement is the smartest result that the Valentino brand could have ever achieved.
This virtual bridge between the past glory and the present success is a true Italian Masterpiece.

And the Valentino brand is very much nurtured by this deep love.

Maximizing profit is the key objective for many luxury brands.

Digital and new media are a crucial tool and, in a sort of a rat race for double digit growth, outstanding and provocative events are needed to keep the adrenaline high around the brand.
Unlikely products at crazy prices are launched giving the idea of a never ending waiting list.
This is the age of pop-up brands. They will last until they will last.
They are huge cash machines properly managed to give the sensation of the “phenomenon” of the moment. The coolest, the most sought after. A widely renown success.

The Queen brands of a Volatile Kingdom.

And then there are the Hermès, the Vuitton, the Chanel, the Cartier. Brands that are focusing on endorphins instead of adrenaline, on satisfaction instead of excitement, on managing power instead of being arrogant.

Pop-up brands and established brands run different races. They do not really compete for the same medals. The first ones prefer the sprint, the second ones the marathon.

Pop-up brands tend to maximize their success in quite of a short time (usually the 5-7 year span of a CEO management) and they create obsession around their products. They know it won’t last.

Even the Formula 1 Ferrari has to pit stop before winning.

Luciano Benetton, one of the founders of the eponymous knitwear brand, criticized the last management years of the company and the said he was going to take back the reins of it.
Benetton is an iconic brand of the ’80s, renown for its colorful collections and polarizing advertising campaign shot by Oliviero Toscani and part of the “United Colors of Benetton” message.

The brand had a huge success for a couple of decades, then the founders left the business to the managers and the second generation and the it started getting less competitive and interesting.
Unflattering fit, less than qualitative design and materials, sad stores contributed to its decline in an era that saw Zara, H&M, Uniqlo thrive and grow.

Now Luciano Benetton and his sister Giuliana, Oliviero Toscani and some old managers will try to relaunch this iconic yet disgraced brand.
Unfortunately it’s not looking back with nostalgia and sense of pride that Benetton will be relaunched.

Benetton needs to:

• refresh its key brand codes and values
• raise the quality of the fabrics
• upgrade the design and fit
• find exciting visual merchandising projects
• start a brand new message to share with the youngest generations

A restoration won’t work.
A new brand project should be developed.

Tom Ford brand is near to 2 billion $ revenues.

After the exit from Gucci Group Tom Ford and Domenico De Sole quietly and with the usual class and elegance created – in just more than a decade – a new luxury empire almost matching the revenues of Gucci.

They also introduced a new business model where apparel and leather goods perfectly match with fragrances and make up.

What is sure is that Dom and Tom started from scratch a new business adventure  and they have been once again uber successful. With a communication soft and smooth as Tom Ford voice.

LVMH Moynat CEO is right on luxury brands and pretty questionable on women customers segmentation

Authentic Luxury Brands Should Be ‘Slow,’ According to Moynat CEO

In brief luxury is:
1. Slow and niche
2. Balance between productivity and quality
3. No sales and revenues obsession (Steve Jobs anyone?)
4. Specific target of customers=5% High Net Worth Individuals
5. Streamlined distribution
6. No plans for e-commerce launch

On the other side is it really true that “Chinese ladies are relatively more independent and resilient than Western women, and have more autonomy when making decisions” or is he just fishing for compliments?

Probably it’s just a matter of luxury products life cycle/regions of the world and not an issue on Western and Chinese ladies