Powerful women

Rose Marcario

2006: she left a high-flying private equity job to go to India and restore herself following a burnout.

2007: she said that “the business world’s addiction to quarterly earnings was suicidal.”

2008: she joined Patagonia.

In 2020 she stepped down as CEO to “focus on the next steps in making systematic change to corporate benefit to the world”, especially leveraging technology and media.

She is also promoting the idea that “if capitalism is serving multiple stakeholders, then I think it can be compassionate. Then you care about your employees, you care about your suppliers, you care about your community, it’s different than just caring what your earnings per share is. That’s not going to lead you to a good long-term effect.2

And that …
“And we can do it! I ran a business that’s a really successful business by any indicator…and we were doing a lot of good in the world”

She took the green brand to almost 1 billion $ revenues and she launched the infamous campaign “Don’t buy this jacket”.

She could make the perfect CEO for a big brand in fashion aiming at being sustainable, walking the talk.
Will she?

Are you convinced that Inditex Zara brand is going soon into trouble because it’s shutting down 1.200 stores?

Or do you read between the lines and you analyse what’s going on inside this smart fast fashion company?

Certainly these are very challenging times for the fashion system and anything could happen.

What Zara can teach us is very interesting anyway:

1. A strong branding does not mean huge investments in advertising nor in press. It means creating a strong relationship with your community through different touch points: the store, the (social) media, the positioning on the market
2. A strong brand is not rigid: it can re-size its retail network, it has hugely invested in logistics, it has a growth mindset
3. Pivoting ability is the key success factor. This means leaving behind attachment, nostalgia, accomplishments and being ready to: understand the evolving world, adjusting the strategy and the execution, setting up new business objectives.
4. A marketing strategy is broader and deeper than press office activities.
5. As per the slide attached from Statista, the group has grown steady but smartly. It has a high level of cash flow and it’s getting ready for the next chapter.

#FashionBrands are usually renown for their bold vision, the pioneer spirit and their courage to be leaders and not followers.

But this is not enough.

What is needed the most in this moment is to abandon the stereotypes, to embrace an openhearted, passionate and fulfilling new approach and to invest energies without being distracted by Millennials, Chinese, Hipster, Diversity empty words and strict descriptions of a non existing standardized group of people.

This means a laser focus marketing strategy, made by human beings for human beings instead of being driven by Artificial Intelligence tricks.

It is about having a unique purpose and developing captivatin products.

Let’s take #Apple. As #SteveJobs once said:

“The world doesn’t need another Dell or HP. It doesn’t need another manufacturer of plain, beige, boring PCs. If that’s all we’re going to do, then we should really pack up now.

But we are lucky, because Apple has a purpose. Unlike anyone in the industry, people want us to make products that they love. In fact, more than love. Our job is to make products that people lust for. That’s what Apple is meant to be.”

And that’s what Fashion Brands are meant to be, as well.

Not shampoo labels.

When, following Trump tax cuts, Patagonia CEO realized that the company benefited of a plus 10 million US dollars, she could have decided to use them for rewarding shareholders or to raise the bonuses of the top executive team.

Rose Marcario decided otherwise, instead.

She posted an article to LinkedIn saying “Based on last year’s irresponsible tax cut, Patagonia will owe less in taxes this year—$10 million less, in fact. Instead of putting the money back into our business, we’re responding by putting $10 million back into the planet. Our home planet needs it more than we do.” (full letter in the first comment)

That’s not propaganda.

It’s money.

Tax cuts are defined “irresponsible”.

She says “We have always paid our fair share of federal and state taxes. Being a responsible company means paying your taxes in proportion to your success and supporting your state and federal governments, which in turn contribute to the health and well-being of civil society.”

In a world of fashion where big supporters of sustainability are investigated for fiscal evasion, Rose Marcario reminds us that a better world is possible.

And that “Taxes protect the most vulnerable in our society, our public lands and other life-giving resources”

Thank you.

Rosita Missoni is one of those fashion ladies who set the example for women (and men) in the industry.
She founded a legendary brand with husband Ottavio which meant strong family values, passion for beauty and unique style.
Rosita spread simple style and elegance through her public and private life.

She received the Italian Republic honour “Cavaliere del Lavoro” only 21 years after her husband and she said “I always worked more than him”, highlighting the difficulties that women had in the paste and still have to receive acknowledgement of their value versus men.

Diana Vreeland defined the Missoni couple as “geniuses”. They received the Neiman Marcus award and were crowned among the 20 most powerful fashion houses in the ’70s.

She is the queen of good taste and of a life well spent. She gently passed the baton to her daughter Angela when she decided that it was the right time to do it.
Rosita is a great example for resilience, being able to overcome with grace the tragic death of her son Vittorio and of her husband in the same year.
Grace, style, endurance, resilience, talent, passion, strength.
All values that we should take back in this hectic world.
A great teaching from a great entrepreneur.

In a very interesting interview recently released to the SCMP, Michael Burke, the CEO of Louis Vuitton (and maker of the successful relaunch and turnaround of Fendi), pointed out some interesting Key Success Factors for Louis Vuitton in China.

1. Deep and effective work of streamlining of retail network, fixed cost optimization and margin optimization during slowdown of 2016
2. Revamp of the key flagship stores with a renovation and refresh of the atmosphere
3. An exhibition to communicate the values and heritage of the Brand to the locals in China
4. The attention for the existing customers as well as the potential ones in terms of in-store customer experience
5. Sharing of the heritage as well as embracing the future with new products and innovative collaborations with younger, cool brands
6. Entrepreneurial attitude: accepting failures and risk-taking
7. No fear of counterfeiting having strong foundation, unique Brand personality and a cool image

The success and the growth of LV is not stunning, it’s not fireworks but it is steady and strong. Discreet and at the right pace to keep growing in the long term.

The Brand doesn’t depend on a genius. It’s not a one-man show. It’s Louis Vuitton. Uber alles.