21st Century Business Herald reporter Gao Jianghong interns Wu Yumeng and Tao Chang report from Beijing
The fashion industry has been relatively calm in the past week, and there has not been much shocking news except for the successive earnings reports of various companies. Shein, which applied for an IPO on the London Stock Exchange, disclosed that its profits doubled by more than $2 billion last year, Semir Apparel's net profit rose by more than 76% last year, Richemont Group restarted the sale of its luxury e-commerce company YNAP, and Champion was acquired by ABG Group for $1 billion.
In terms of personnel changes, Bulgari has established its first creative director, Gucci's senior vice president of global communications will leave, and LVMH has announced its first Chinese director. Personnel changes can provide a glimpse of the next moves of different groups.
In addition, the owner of LVMH Group has been named the richest man in the world by Forbes, L'Oréal is considering investing in Amouage, a luxury fragrance product in the Middle East, and Aman's new luxury hotel brand is debuting in Japan. The Hermès menswear show in Shanghai kicked off the fashion show of luxury brands in China.
1. Shein's profit doubled to more than $2 billion
Shein is awaiting IPO approval on the London stock market, and its profits are expected to double to more than $2 billion, surpassing Swedish fashion group H&M and Britain's Primark and Next to become one of the world's most profitable fashion companies, while Zara's parent company Inditex made a profit of $6.9 billion last year, according to media reports.
The chancellor of the exchequer, Jeremy Hunt, had met with Shein's executive director, Donald Tang, in February to persuade him to list Shein on the London Stock Exchange, which, if successful, would make it one of the largest listed companies in London's history, valued at $90 billion, sources said.
Comments: Shein has made so much profit before it has even been listed, no wonder the valuation is as high as $90 billion.
2. L'Oréal is considering investing in Amouage, a luxury fragrance product in the Middle East
According to media reports, French beauty giant L'Oreal Groupe (L'Oreal Groupe) is considering investing in Omani luxury fragrance brand Amouage. L'Oréal has been in talks to acquire a minority stake in the Amouage brand, according to people familiar with the matter. It is reported that the valuation of the Amouage business has exceeded 3 billion euros in the current transaction negotiations with the brand owner SABCO Group. However, the person also said that it is uncertain whether the deal will be completed and that the details of the potential deal may change. At the same time, in addition to L'Oréal, the Amouage brand may also attract interest from other investors. None of the parties concerned have commented on the rumors.
Comments: L'Oreal smells fragrance into the Middle East, and capital mergers and acquisitions in the field of high-end perfumes are active.
3.Champion was acquired by ABG Group for $1 billion
AuthenticBrandsGroup, a U.S.-based brand management company, announced that it has reached a preliminary agreement with apparel group HanesBrands to acquire fashion brand Champion for about $1 billion. Previously, media reported that Champion had been listed for sale by the parent company with a starting price of $1.4 billion, attracting the attention of several potential buyers.
The reason for this sale, in addition to the decline in Champion's own performance, is also directly related to the plummeting stock price of the parent company Hanes Brands in the past two years and the high debt figure. It is reported that in May 2021, the share price of HanesBrands fluctuated around $20, and now it has fallen to $4~5. In addition, Champion closed its first flagship store in Sanlitun, China, in late 2022.
Comments: From a clothing manufacturer to a brand management group, can Champion change the boss usher in a different fate.
The 4.LV boss has been the richest man in the world by Forbes
According to the 2024 global billionaires list released by Forbes, Bernard Arnault, CEO of the French luxury group LVMH, and his family topped the list with a wealth of $233 billion, surpassing Tesla CEO Elon Musk's $195 billion and Amazon founder Bezos's $194 billion, becoming the world's richest man in Forbes.
In the 12 months ended December 31 last year, LVMH sales rose 9% year-on-year to 86.2 billion euros, up 13% organically, beating analysts' expectations of 85.8 billion euros. Commenting on the slowdown in growth, Bernard Arnault said LVMH has passed the stage of pursuing high growth and will focus on continuing to inspire people's desires.
Comments: The spending power of the wealthy middle class in the European and American markets is still strong, and global luxury consumption is still very resilient.
5. Richemont restarted the sale of its luxury e-commerce company YNAP
According to market sources, Swiss luxury group Richemont (Richemont) intends to restart the spin-off of its luxury e-commerce business Yoox Net-A-Porter (i.e., YNAP). The Financial Times, citing sources familiar with the matter, said that Richemont has appointed Goldman Sachs to handle the transaction. German luxury e-commerce company Mytheresa is one of the potential bidders.
Mytheresa declined to comment, but said the company has been evaluating opportunities to grow its business, "which includes occasional M&A activity." In addition, private equity firm Bain Capital and British private equity fund Permira are also considering participating in the bid.
Comment: YNAP is ill-fated, is luxury e-commerce a good business?
6. Semir Apparel's net profit rose by more than 76% last year
Semir Apparel recently released its 2023 fiscal year results, showing that revenue increased by 2.47% year-on-year to 13.661 billion yuan, gross profit margin increased to 44%, and net profit rose 76.06% to 1.122 billion yuan. During the period, the revenue of the casual apparel segment, which includes the Semir brand, decreased by 2.6% to RMB4.171 billion, and the revenue of the children's apparel segment, which includes the Balabala brand, increased by 4.9% to RMB9.373 billion.
As of the end of last year, the company had 681 directly operated stores, 7,164 franchised stores and 92 associated stores. In April 2023, Semir also set up an overseas business unit to increase its efforts to deepen the Asian market and explore the African market.
Comments: In the year since Qiu Jianqiang took office, Semir has obviously come out of the predicament.
7. Aman's new luxury hotel brand, Janu, opens its first store in Tokyo
Janu Tokyo, the sister brand of international luxury hotel group Aman and the first hotel of the new luxury lifestyle hotel brand, Janu Tokyo, has opened in Azabudai Hills, Tokyo. In the coming years, Janu is expected to open another 12 Janu hotels in Dubai, Thailand and Turkey, among others.
Janu means "soul" in Sanskrit. Compared to Aman's traditionally pricier, remote, quieter and more intimate resorts, Janu is more playful and more affordable.
Comment: Whether Aman's new brand will be equally sought after will take time to tell.
8. Bulgari creates its first position as Creative Director
Luxury jewellery brand Bulgari has announced Greek designer Mary Katrantozu as its first Creative Director of handbags and accessories, the first creative director position created by Bulgari since its establishment. Prior to the appointment, Mary Katrantozu had already collaborated with Bulgari on a collection. In the future, she will work with Lucia Silvestri, the Maison's Creative Director of Jewellery, and will be responsible for handbags, high jewellery clutches and more, and her first collection for Bulgari will be available in stores from August this year.
Comments: This wave of operations seems to rely on the two sharp tools of style shaping and handbag categories to further strengthen Bulgari's market competitiveness.
9. Gucci's Senior Vice President of Global Communications is leaving
Kering has announced the departure of Benjamin Cercio, Senior Vice President of Global Communications at Gucci. Benjamin Cercio previously served as International Director of PR, Influencer and Entertainment Relations at Louis Vuitton for over 16 years. He joined Gucci in November 2022 as Director of Global Communications, responsible for all communications for the brand globally, and was promoted to Vice President of Global Communications in July 2023. In addition, he is responsible for the communication strategy for food and beverage projects such as Gucci Osteria and Giardino 25.
Comment: Gucci's management turmoil in the past two years, coupled with the critical period of transformation, is more in need of PR professionals who are good at crisis communications, and Benjamin Cercio's past experience is obviously not suitable for this position.
10.LVMH announced its first Chinese director
On April 1, LVMH, the world's largest luxury group, announced that Wei Sun Christianson will become the first Chinese director. She will formally join the LVMH Board of Directors at a general meeting of shareholders.
According to the data, Sun Wei was one of the first Chinese students to obtain a license to practice law in the United States. She has had an illustrious career in the financial industry, having served as Managing Director and Chief Executive Officer of Morgan Stanley in China, and played key roles in a number of major financial transactions.
Sun Wei also served on the board of directors of The Estée Lauder Companies for 12 years and was named one of Fortune's "World's Most Powerful Women" for 14 consecutive years. Prior to joining the LVMH Board of Directors, she retired from Morgan Stanley at the end of 2021 and continued to serve as a senior advisor to the company.
Comment: Asia accounts for 31% of LVMH's revenue, and the addition of Chinese directors seems to indicate the importance that LVMH attaches to the region.
11. Hermès held a menswear show in Shanghai
On April 2, Hermès created a playground full of architectural aesthetics in Shanghai, bringing the 2024 menswear collection into a different mood.
Hermès Men's World Artistic Director Véronique Nichanian also came to Shanghai to showcase the menswear that was all about lightness this season. The layout of the show is extremely simple, and the focus is on clever stacking and three-dimensional materials. Cut-out fabrics, fresh cuts, intimate textures, subtle colors, avant-garde silhouettes are boldly stacked and intertwined.
Hermès interprets Shanghai's unique urban modern vitality and embarks on a leisurely and elegant summer journey. Hermès also livestreamed the show HERMES.COM online platform.
Comments: Hermes men's wear took the lead, and the high-luxury brand Year of the Dragon began to kick off at the Chinese show
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