What’s On Our Mind in The World of Luxury
Recently, Gucci announced the opening of their Ultra High-End Boutiques targeted at the Very Important Customer (VIC) with...
Valentino Reports 10% Sales Growth
Valentino has posted 10% sales year-on-year growth to €1.42 billion. Pulling back on wholesale, the company was able to drive growth through its directly operated channels. Sales through its own stores and e-commerce grew by 21%, while wholesale declined by 6%. Directly operated retail now accounts for 62% of total sales. Europe, North America and the Middle East led the growth while China was still slightly impacted by COVID.
LVMH Pulls Out Of Hong Kong Due to Decreased Tourism
LVMH is shifting resources out of Hong Kong as Chinese consumers switch to shopping domestically. Investments will be focused on Hainan and Macau instead, two destinations which have become preferred luxury shopping hubs for many customers. Many of Hong Kong's retailers had to shutter their doors due to Covid and turmoil, while prices on the mainland equalized to those of Hong Kong. Consequently, LVMH recorded a lower post-Covid recovery in Hong Kong compared to elsewhere in Greater China.
Kering Reports Moderate Growth In 2023 First Quarter
Kering posted revenue growth of 1% to €5 billion for the 2023 first business quarter. Performances across brands were mixed, with Saint Laurent performing well at 8% sales growth, while Bottega Veneta recorded flat sales and other Maisons experienced a drop of 9%. Although still in transition regarding creative direction, Gucci is showing signs of a rebound. By region, Western Europe (+15%), Japan (+30%) and Asia Pacific (+10%) were up in retail sales, while North America was down 18%. Kering’s strategy is now to focus on the wealthiest customers, with Gucci opening its first Salon in Los Angeles dedicated to ultra-high-end offerings.
Coty Creates First Metaverse Space For Employee Training
Coty is releasing its first metaverse space called Coty Campus designed for its 11,000 employees to develop new skills in tech. Created in partnership with metaverse real estate platform Spatial, the platform will facilitate the collaboration between employees worldwide but also improve existing training, recruiting and onboarding processes. Ultimately, Coty's goal is to promote innovation and upskilling within its brand portfolio by improving their employees’ digital skills.
eBay Launches New Luxury Resale Channel
Working with brands and brand-authorized sellers directly, eBay is expanding to the second-hand luxury market through a service called ‘Certified by Brand' allowing shoppers to access new, certified pre-owned, limited-edition or exclusive ‘only eBay’ products, tapping into the growing interest in second-hand luxury. eBay has an active buyer base of 133 million users which luxury brands can leverage for this new initiative. In addition to access to customer data and insights, brands will maintain full control over elements including pricing, brand equity and image.
