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Swiss sportswear brand On has appointed Laura Miele as its independent board member, where she will also serve on the audit committee.
Currently engaged as the President, Electronic Arts-Entertainment and Technology, Miele oversees the company’s portfolio of licensed and owned IP, along with the its central development services and CTO organisations.
Before assuming this role in 2023, she served as the Chief Operating Officer of EA. Over the past few decades, Miele has played a pivotal role in executing several complex structural transformations at EA, including leading the company’s shift to digital delivery, expanding into new consumer demographics, and actively growing EA’s player network.
In addition to her role at EA, Miele has been involved in managing commercial, creative, and central technology teams. She served as a governor of the British Film Institute in 2022 and is a member of the Paley Media Council and the NAACP Entertainment Advocacy Council. She also serves on the Advisory Board for The Game Awards and previously held a position on the board of the Silicon Valley Community Foundation.
Founded in the Swiss Alps in 2010, the brand On, has since expanded its presence to more than 60 countries.
The fashion industry in the Kingdom of Saudi Arabia is poised to grow at a CAGR of 48 per cent from 2021-25, as per a recent report by the Small and Medium Enterprises General Authority.
According to this report, the fashion industry contributed 1.4 per cent to the Kingdom’s gross domestic product in 2022. The total value of the fashion sector, including international brands, stood at $24.6 billion in 2022, with the domestic fashion industry valued at $12.5 billion.
Burak Cakmak, CEO, Fashion Commission, emphasised the Kingdom’s broad transformation across various industries, including architecture, music, film, art, and food. He noted that the diverse initiatives led by the Fashion Commission are revolutionising the fashion sector, elevating local talents to global stages while focusing on growth and sustainability.
The Fashion Commission focuses on developing local talent. It has launched comprehensive educational programs, workshops, and mentorship opportunities to nurture the growth of Saudi nationals in the fashion sector. Additionally, the commission supports small and medium enterprises (SMEs) by providing essential resources to help businesses scale and grow.
As of 2022, the fashion industry in Saudi Arabia employed over over 230,000 people, according to the Monsha’at report. Women made up to 52 per cent of this workforce. By 2027, the women’s apparel market in the Kingdom is projected to grow by 20 per cent, while the men’s market is expected to expand by 27 percent during the same period.
AlphaTauri introduces Cirrus, an innovative Spring/Summer 2025 collection that transcends traditional seasonal constraints. Inspired by the ethereal beauty of Cirrus clouds, the collection emphasizes lightness, breathability, and fluidity through advanced technology and minimalist design.
Cirrus features ultra-light jackets and parkas that integrate micro-holes and laser perforations for superior ventilation, alongside ripstop weaves and ultra-matt finishes that ensure durability without compromising weightlessness. The knitwear range further embraces this ethos with innovative knit structures and strategic ribbing for enhanced airflow, utilizing 3D wholegarment technology to ensure seamless motion and reduced environmental impact.
Highlighting user-focused innovation, AlphaTauri blends technical and natural fibers to enhance performance and aesthetics. Premium cotton yarns plated with cooling Lyocell, Coolmax blended with cotton and cashmere for moisture-wicking comfort, and linen-cotton blends structured with 3D wholegarment technology illustrate the fusion of functionality and design.
The color palette draws from summer’s delicate hues, combining sandy beige, cloud grey, navy, fog blue, stone, off-white, and pink mist for a tranquil and sophisticated ensemble. Outerwear ranges from €230 to €650, knitwear from €180 to €300, and women’s Power Stretch Jersey items from €160 to €320, making Cirrus a versatile, stylish solution for unpredictable weather.
Chanel plans to increase its investment in its retail network by at least 50 per cent this year as the French design house aims to secure prime locations amid fierce competition with other luxury groups.
Owned by the billionaire Wertheimer family and headquartered in London, Chanel will continue to further integrate its supply chain with fresh acquisitions, following a dozen such deals last year.
The brand has also acquired buildings on New York’s Fifth Avenue and Avenue Montaigne in Paris. Made famous by the pioneering designs of founder Coco Chanel, the company has seen rapid growth as sales hit $19.7 billion last year, a 16 per cent increase from 2022 on a like-for-like basis, while operating profits rose 10.9 per cent to $6.4 billion.
Chanel has also more than doubled its revenues and headcount over the past decade, according to Leena Nair, CEO. The brand remains one of the most resilient alongside top-tier players such as Hermès and Brunello Cucinelli, benefiting from their high-end positioning and wealthy client base. Chanel reported double-digit sales growth across all categories, with Europe and Asia growing in the high teens and low 20s, respectively, despite industry concerns about the slowing Chinese economy. The Americas saw a softer growth rate of 2.4 per cent.
After increasing its investment in the business by 83 percent last year to $1.23 billion, Chanel plans to invest even more in 2024. The brand plans to invest in the US market, which according to Philippe Blondiaux, Chief Financial Officer, is still an under-developed market for luxury based on certain wealth indicators.”
In China, Chanel is ‘under-distributed,’ with only about 18 boutiques in the world’s second-biggest economy, far fewer than some of its rivals. The brand plans to continue investing in China even though Chinese consumers have resumed traveling abroad for shopping.
Some of Chanel’s clients have expressed concerns about steep price increases. The average price of luxury goods tracked by HSBC has risen 50 per cent since 2019, while the cost of a classic Chanel flap bag has more than doubled to over €10,000. Chanel says its price increases reflect higher material costs and inflation and will maintain its current policies. Pricing contributed 9 per cent to its sales growth in 2023, with a 7 per cent increase in volume, Blondiaux says.
PVH signed individual binding agreements to support collective bargaining in Cambodia at the Global Fashion Summit in Copenhagen. The agreements were signed in collaboration with ACT (Action, Collaboration, Transformation), IndustriALL Global Union and member unions.
These agreements aim to enable higher wages, better working conditions, and sourcing commitments from brands. They will benefit not just PVH’s supply chain in Cambodia but the supply chains of all signatory brands sourcing from the the country
The template created at the summit sets an example for a positive impact on global human rights in the supply chain and demonstrates things can be achieved with collaboration and commitment to drive progress, says Michael Bride, SVP - Corporate Responsibility and Public Affairs.
These individual binding agreements between brands and IndustriALL Global Union are one of the first-ever brand-supported collective bargaining agreements in the garment and footwear sector. The agreements support effective and sustainable industry collaboration among all actors across the value chain. They showcase strong leadership by brands, employers, and unions in the sector, signaling a new era in wage approaches, freedom of association, and responsible purchasing practices.
Athit Kong, President, Coalition of Cambodia Apparel Worker Democratic Union, opines, the agreements bring all parties in the sector and supply chains to the negotiating table. Kong also notes, as one of the first-ever legally binding agreements, they promote accountability and better social dialogues in these sector
SU.RE (Sustainable Resolution) aims to revolutionise India’s apparel sector through its transformative project being executed in partnership with the British Council. This project engages key SU.RE signatories with the UK's New Landscape program, marking a significant step towards fostering sustainable practices and innovation in fashion.
Structured in three comprehensive phases, this project guides and supports SU.RE signatories through mentorship sessions, the development of actionable plans, and tackling challenges such as consumer perception and stakeholder alignment.
In the first phase, SU.RE delegates participated in a UK Study Tour where they connected with notable figures such as designer Christopher Raeburn and Harriet Vocking, CEO of Eco-Age. They also interacted with the British Fashion Council's Institute of Positive Fashion and grantees from the New Landscapes program, led by the University of Arts London's Fashion, Textiles, and Technology Institute (FTTI) in partnership with the British Council.
The delegation then attended the Global Fashion Summit in Copenhagen, Denmark, where they co-hosted a leadership roundtable titled ‘Building Circular Systems for India’ with Global Fashion Agenda. This executive-level roundtable, supported by the British Council, aimed to align an actionable roadmap for integrating sustainability in the Indian fashion industry.
The SU.RE delegation included Ashish Katariya, CEO, Peppermint; Darshana Gajare, Head- Sustainability, Reliance Brands; Naveen Sainani, Jt Hon Gen Secretary and Chairman, APEX Awards Sub Committee (CMAI); Radhika Kaul Batra, Chief – Staff, UN Resident Coordinator's Office; Ruchira Das, Director-Arts India, British Council; Sanjay Rastogi, Head -New Business, ESG Leadership, TATA Trent; and Sanjay Navindrachandra Vakharia, CEO, Spykar.
This partnership between SU.RE and the British Council represents a significant stride towards a sustainable future for India's apparel sector, fostering international collaboration and innovation in fashion.
Established in 2019, SU.RE is a joint effort by Reliance Brands, United Nations India, Ministry of Textiles (India), and the Clothing Manufacturers Association of India. As India's largest voluntary commitment to sustainability in fashion, SU.RE initially signed on 16 major brands with the goal of transitioning the Indian apparel industry to sustainable supply chains by 2030.
Spanish fast fashion brand Mango has expanded its retail presence with a new store in Norwich.
Founded in 1984 in Barcelona, Mango has launched many stores across the world.
The brand’s latest store has been set up in the former home of Accessorise and Monsoon on the upper ground floor of Chantry Place.
Designed in line with the brand’s New Med store concept inspired by the Mediterranean, the new store offers womenswear from Mango. The store will further accelerate the brand’s expansion across the UK.It launch follows the opening of Flannels in the same centre.
Daniel López, Director - Expansion and Franchising, Mango, says, with the United Kingdom being one of the brand’s priority markets for international growth, the Chantry Place store helps the brand consolidate its operations in the country.
The opening of the new Mango store follows another store opening by fellow fashion brand Flannels that inaugurated its store in the former Sports Direct unit of Chantry Place in April.
Cushman & Wakefield's (C&W) maiden ‘European Luxury Retail Report’ reveals a positive scenario of the industry, highlighting an increase in store openings and resilient consumer spending. However, a closer look the report reveals some potential shortcomings that could leave a more nuanced understanding of the market.
The report focuses on prime retail locations across 16 European cities. This narrow lens excludes the broader European luxury market, which encompasses smaller cities and online retail, a rapidly growing sector. Did luxury brands simply consolidate their presence in established strongholds, neglecting emerging markets? The report is silent on this.
Focus on openings, not overall health
The report boasts of an increase in new store openings on prime luxury streets. This might signal brand confidence, but it doesn't necessarily reflect the health of existing stores or the overall market. Questions emerge on: are these new flagships replacing closing locations elsewhere? Is there a trend of consolidation within the luxury sector? However, the report remains silent on these crucial aspects. The report highlights growth in fashion, footwear, and accessories, but doesn't explore potential brand homogenization. Are these prime locations becoming saturated with similar brands, diminishing the unique appeal of luxury retail?
The report claims luxury spending is nearing pre-pandemic levels, but it doesn't clarify if this is due to a genuine recovery or inflated prices. Are consumers truly spending more, or are they simply paying a premium due to factors like supply chain disruptions?
C&W highlights rising rents but neglects the potential impact on staff wages. Are luxury retailers keeping pace with rising rental costs by squeezing employee compensation? The report offers no clues.
Tourist dependence implicit
The report attributes some of the growth to returning tourists. While this is likely true, it doesn't account for potential future fluctuations in tourism. Geopolitical instability or economic downturns could significantly impact tourist spending, a factor the report doesn't fully address. Indeed, tourism undoubtedly plays a role, it's essential to understand the reliance on this factor. What about the domestic luxury consumer? Are European luxury brands successfully cultivating local clientele in an era of rising inflation and potential economic wobbles?
Silence on online retail's impact
The report seems to exist in a pre-e-commerce world. Luxury retail has a booming online presence. How are physical stores adapting to this omnichannel reality? Does the rise of online retail cannibalize sales in brick-and-mortar stores? The report offers no insights into this critical dynamic.
Also, the report celebrates brand expansion but remains silent on the environmental impact of this growth. Is the resurgence of luxury retail being pushed by sustainable practices, or is it business as usual? The report offers no insights.
While Cushman & Wakefield's report offers a glimpse into a seemingly resurgent European luxury retail market, it lacks a deeper analysis of potential vulnerabilities. A more critical approach that considers the impact of online retail, tourist dependence, and the overall health of existing stores would provide a more complete picture of this complex and ever-evolving market.
China's luxury market, once marked by conspicuous consumption and a booming economy, is undergoing a significant transformation. The current economic scenario, with slower growth and a focus on domestic brands, is reshaping consumer preferences and forcing international players to adapt.
Market resizes
The total market size of China's luxury market reached an estimated ¥4.7 trillion ($730 billion) in 2023 as per Bain & Company, reflecting a slight decline from the previous year. However, the annual CAGR remains positive, albeit at a slower pace. And McKinsey & Company predicts a CAGR of around 6-8 per cent for the next few years, compared to the double-digit growth witnessed in the past decade. This indicates a maturing market with a focus on quality and experience over mere brand logos.
International brands still dominant, but facing scrutiny
International luxury brands continue to hold a significant share of the Chinese market, accounting for roughly 70 per cent of total sales in 2023, reveals Jing Daily. However, their CAGR has mirrored the overall market slowdown, falling from double-digits to a projected 4-6 per cent in the coming years, as per Euromonitor International. This trend reflects a growing preference for experience and value among Chinese consumers, who are becoming more discerning. In fact, domestic brands like Huili (jewelry) and Anerdam (apparel) have captured a growing portion of the market.
Table 1: Market share of international vs. domestic brands (2018-2023)
|
Year |
International brands |
Domestic brands |
|
2018 |
85% |
15% |
|
2019 |
82% |
18% |
|
2020 |
78% |
22% |
|
2021 |
75% |
25% |
|
2022 |
72% |
28% |
|
2023 |
70% |
30% |
Shifting consumer behavior, beyond the logo
Luxury powerhouses like Louis Vuitton, Chanel, and Dior remain at the forefront, consistently ranking among the top sellers. Here's a glimpse at some leading brands and their estimated sales in China (¥ billion).
Table 2: Leading brands and sales
|
Brand |
Sales (2023 estimated) |
|
Louis Vuitton |
45 |
|
Chanel |
40 |
|
Dior |
38 |
|
Gucci |
35 |
|
Hermès |
32 |
These figures suggest a relatively stable market share for established brands. However, a new wave of domestic contenders like Shanghai Tang and Huishan Zhang are gaining traction, particularly among younger consumers seeking a unique cultural identity within the luxury space.
Chinese luxury consumers are evolving. Previously, brand logos and conspicuous consumption were the primary drivers. Now, factors like quality, craftsmanship, and brand storytelling are gaining importance. Today's savvy consumer seeks a personalized experience that aligns with their values. This shift is evident in the growing popularity of:
Sustainable practices: Consumers are becoming more environmentally conscious, demanding transparency and eco-friendly practices from luxury brands.
Cultural resonance: Brands that incorporate elements of Chinese heritage or collaborate with local artists are resonating strongly with consumers.
Experience over logo: Luxury is no longer just about the brand name. Experiences, storytelling, and brand values are gaining importance.
Digital savvy: Millennials and Gen Z are driving the rise of online luxury purchases influencing brands to invest heavily in e-commerce platforms.
Impact of an e-commerce boom
The emergence of e-commerce giants like Alibaba's Tmall Luxury and JD.com has revolutionized luxury retail in China. These platforms offer convenience, access to a wider range of products, and exclusive online offerings. However, challenges remain with counterfeits as online space is susceptible to counterfeiting, which can erode trust in authentic luxury brands. Return policies is also an issue especially for luxury brands as they are traditionally hesitant about lenient return policies, which can deter online purchases. Brands are investing in robust logistics and customer service infrastructure to address these concerns. Moreover, the digital environment doesn't fully replicate the personalized service and exclusivity associated with brick-and-mortar stores. Luxury brands need to adapt their storytelling to resonate effectively in the digital realm.
Brand strategies
Luxury brands are actively adopting strategies to overcome these challenges:
Omnichannel approach: Integrating online and offline experiences with features like virtual try-on and click-and-collect services.
Livestreaming: Engaging consumers through live product launches and influencer endorsements on streaming platforms.
Social commerce: Building communities on social media platforms like WeChat to foster brand loyalty and personalized experiences.
Enhanced logistics: Implementing robust return and authentication policies to build trust and encourage online purchases.
Sustainability efforts: Consumers are increasingly environmentally conscious. Luxury brands that prioritize sustainability gain a competitive edge.
China's luxury market is entering a new phase characterized by slower but more sustainable growth. Consumers are becoming more value-conscious, seeking meaningful experiences and brands that align with their evolving preferences. This presents both challenges and opportunities for international and domestic brands alike. By adapting to the changing landscape, embracing digital innovation, and prioritizing a customer-centric approach, luxury brands can navigate the shifting sands of the Chinese market and secure their place in this dynamic space.
Savio is set to unveil its latest innovations, the Proxima Smartconer automatic winder and the Lybra Smartspinner air-jet spinning machine, at the ITM 2024 exhibition in Istanbul from June 4th to 8th.
The Proxima Smartconer boasts advanced winding capabilities, emphasizing productivity and connectivity, while the Lybra Smartspinner offers versatile, cost-effective air-jet spinning solutions. Both machines will be showcased at the ITM 2024 exhibition in Istanbul, Turkey, highlighting Savio’s commitment to technological advancement in the textile industry.
By attending the ITM exhibition from June 04-08, 2024, Savio aims to demonstrate how its innovations can enhance competitive advantages for customers.
The Proxima Smartconer has been meticulously designed to meet customer needs, focusing on high productivity, low energy consumption, premium yarn quality, automation, and data connectivity. This investment in advanced equipment is intended to streamline operations, reduce manual labor, and increase overall productivity. The Proxima Smartconer excels in delivering faster, safer, and higher-quality output with less waste, maintenance, and resource consumption.
Savio’s new air-jet spinning machine, the Lybra Smartspinner, represents a significant leap in textile production. Developed with innovative spinning technology, the Lybra Smartspinner caters to specific applications such as knitting, home textiles, and sunshades. Air-jet spun yarn, known for its soft and smooth texture, is ideal for creating both functional and fashionable fabrics.
The Lybra Smartspinner is designed to be versatile, flexible, cost-saving, and user-friendly. It enables yarn manufacturers to achieve high production rates and low processing costs. Unlike conventional ring spinning, air-jet spinning uses slivers directly, integrating roving, spinning, and winding into a single process. This approach reduces space requirements by 25 per cent-30 per cent compared to ring-spinning equipment of the same capacity, leading to lower building costs.
Additionally, the reduced space needs less climate control and fewer operating personnel, resulting in significant savings and maximising return on investment.
Savio's participation in ITM 2024 underscores its dedication to advancing textile technology and supporting its customers with innovative, efficient, and cost-effective solutions.
