Saturday 12 October 2024
Friday 11 October 2024
The Rise And Fall of Loro Piana: No More Quiet Luxury!
Shhhhh!
The stealth-wealth brand Loro Piana is celebrating 100 years
Succession’s
favourite luxury label is marking a major milestone
Jessica Beresford. Photography by Kayla Connors. Styling by
Abby Adler. Models, Aliza Jarmon and Raffaele Giolli OCTOBER 1 2024
https://www-ft-com.ezp-prod1.hul.harvard.edu/content/c1ed1fee-5ef7-4055-85b0-a583735ec141
Despite having no obvious branding or showy colours, the
Loro Piana look is distinctive. Damien Bertrand, Loro Piana’s CEO, is a case in
point: sitting in his office in the brand’s headquarters – a historic
palazzo in central Milan – he’s dressed in head-to-toe navy, wearing a
long-sleeved polo knit, slim-fit trousers and a pair of the brand’s
minimal Summer Walk loafers. The look is relaxed, easy, yet unassumingly rich;
a look that, with the help of shows such as Succession, is now widely understood
to be emblematic of the Loro Piana brand. You may recognise it via Gwyneth
Paltrow, who wore Loro Piana in court last year, or on David Beckham and Oprah
Winfrey. Its unbranded, rubber-soled Walk slip-ons have become a quiet
signifier among tech billionaires and art dealers alike.
“We are not about logos, we are not about branding – we are
discreet,” says Bertrand, a 51-year-old Frenchman who joined Loro Piana three
years ago after spending five years at Dior. The house now has 145
standalone stores and concessions worldwide, including
29 in mainland China. Its owner LVMH does not reveal individual
sales earnings for its brands, but recent reports have
put annual revenues at around €1bn.
“Our first signature is the touch,” adds Bertrand,
pinching his shirt between his fingers. “And when you think about
it, we are probably the only maison that has that – you
recognise the touch of Loro Piana cashmere.”
This tactility is a trait the brand has been
cultivating for a century. Its autumn‑winter collection, the largest
yet, will highlight the breadth and depth
of its material sourcing. A Harrods
takeover in November will see a full
transformation of the store, including its façade, celebrating the “chain of hands” that feed into it. “We thought the 100-year anniversary was a
good opportunity to celebrate the story of
the family and the story of what we do,” says Bertrand, who is the main
spokesperson for the brand (it has never had a creative director, and
has no imminent plans to install one).
Loro Piana was founded as a wool trader in 1924 in Quarona,
in the Italian region of Piedmont, by the engineer Pietro Loro Piana. He
came from a family of merchants whose quest was “exploring the world for the
most precious raw materials, and engineering them into beautiful garments”,
says Bertrand. In the 1960s, under Pietro’s grandson Franco Loro
Piana, the company started producing fabric, exporting throughout Europe,
America and Japan. In the 1980s, the next generation, brothers Sergio and
Pier Luigi Loro Piana, began producing ready-to-wear.
In 2013, LVMH bought an 80 per cent stake in the
company for €2.57bn, in a year when sales were expected to be €700mn.
Since then, Loro Piana – which was a successful yet slightly old-fashioned
heritage brand – has undergone a major repositioning, with collaborations with
Japanese streetwear artist Hiroshi Fujiwara and New Balance, as well as
more buzzy releases, including loungewear capsules and its trademarked
CashDenim – an ultra-luxury line of jeans (starting at £1,080).
“I’ve been aware of Loro Piana for a very long
time, somewhat like an Alpinist is aware of a distant mountain peak,”
says Jeremy Strong, who played Succession scion Kendall Roy and is
now a brand ambassador. He first bought Loro Piana in his 30s,
when he started making a living as an actor. “They were clothes that
I wished to have and would sometimes save up for a single sweater
and then live in it.”
The anniversary year has not been without its hitches. A
report by Bloomberg in March this year called into question the brand’s
labour practices in Peru, where it sources its vicuña, and highlighted the
disparity between luxury price tags and the amount paid for the raw
materials. At the time, the president of the Lucanas peasant community
defended its relationship with the brand, saying it relies on its business,
while Loro Piana said it “represents a key economic support locally, protecting
and fortifying the demand and the value of the vicuña fibre, regardless of
market dynamics”.
“What has been written didn’t correspond to the reality and
to our commitment in Peru for the past 30 years,” says Bertrand, “so
we officially refuted it, saying that [the report] was full of
misinterpretation and inaccuracies…We believe [we] are positive for the
people, for the economy, and for the animals also. My point of view
is we will continue to do [business], and we will do more, in
terms of social, in terms of education, in terms of health.”
Bertrand says the vicuña scandal has not impacted
sales. And the analysts agree. “My understanding is that Loro Piana is doing
very well,” says Erwan Rambourg, global head of consumer and retail research at
HSBC. “Clearly, these are tough times for luxury, but the higher end
has been a lot more resilient. Brands like Loro Piana, Brunello Cucinelli,
Hermès and, to a certain extent, Zegna, where you get the sense that
you’re paying more, but hopefully the product is longer-lasting and not really
seasonal in nature. I think they’re at the right place right now.”
Loro Piana is continuing to push its material and
sourcing messaging: its latest releases are products made with undyed dark
merino wool, called Pecora Nera, which is sourced from a farm in
New Zealand, as well as Cheviot, a historic wool from Scotland.
Bertrand is also enthusiastic about the brand’s annual Record Bale competition,
which started in 1997 and awards farms for producing ever-finer wool.
The current world record, set in 2023, measures 10.2 microns (by
comparison, the average human hair is around 50 to 70 microns), and feels as
soft as candyfloss. The brand uses these bales for custom orders for its top
spenders. Says Bertrand: “We can only do about 50 to 60 jackets
or suits with this.”
The brand is also developing other categories, including
jewellery, handbags and interiors. Yet Bertrand insists that Loro Piana
will never be a “fashion” brand. “We don’t do products according to the latest
trends,” he says. “What we do are products that have the highest quality and
that you can keep for your whole life. We do investment pieces.” Adds
Rambourg: “The touch and feel and quality is not just perceived, it’s
real.”
Thursday 10 October 2024
Wednesday 9 October 2024
A Gentleman’s London, Episode Eighteen: Métier
Stories
Extra!
Extra!
My Métier
Profile Series with Founder & Designer Melissa Morris
11 March
2019
https://metier.com/blogs/stories/my-metier-profile-series-with-founder-designer-melissa-morris
What do you
do and why is it your passion?
I am the
founder and designer of Métier. Everything about my work reflects my passion.
The people I design for. The people I work with. I think it's impossible to
build a new global luxury brand for men and women from scratch without being
incredibly passionate and excited about every detail. As the head of the
company, I am involved in every aspect and I honestly love it all. For me, it’s
all about connecting the dots.
What is the
process for creating your work?
I first
start by identifying a journey that one of my pieces in the current collection
doesn’t satisfy. Usually, this happens when I am doing something and wish I had
a piece specifically for it—in fact, I recently developed a wine carrier after
going to a dinner party and not having anything nice to carry a bottle of wine!
I then think about all the requirements around the journey—what you most likely
will carry, how you need to access your items (e.g. our travel bags always have
an exterior pocket that is easy to access, for your phone and passport). I also
think about what elements need to be modular and versatile.
From there,
I concept different shapes and details. I play with different lines and
curvatures that feel harmonious and allow the functionality to be seamless,
effortless and intuitive.
Once I have
conceived the design, I create life-size scale one drawings. I then put them
together to create a 3D version of the bag out of paper so I can ensure every
detail has been considered and achieves what I want it to. In this way, I can
also check proportions and spot any additional considerations ahead of making
the paper pattern. Once I am happy with it, the work goes to Italy where we
make a paper pattern and then develop our first prototype.
We work on
the thickness of each leather panel and the amount of reinforcement in each
layer so that we balance lightweight and lasting—I love when each piece has the
perfect, effortless slouch. We then go through several prototyping rounds,
fine-tuning as we go. I then wear test each piece for at least one month to
ensure it is perfect and to spot any weaknesses. After that, we send the piece
to a special testing facility which simulates 20 years of use with wind, rain,
humidity and weight. Once the design passes that test, it is approved, and
final samples are made. Without a doubt, my favourite part of my work is
sketching—I love letting my mind wander and I love designing the specs for each
piece. This is followed closely by my other favourite moment—unwrapping the
first prototype. I am actually receiving two new ones tomorrow… I can’t wait.
How often
are you travelling? What routine or tricks have you created for being on the
road so often?
Almost every
week at the moment! This week I was in Paris, tomorrow I'm off to NYC. Then
Qatar and then Hong Kong. All in this month! I have got very good at packing.
My best trick is my carry-on. I load it with all kinds of different sized
pouches. One for my electronics. One for my toiletries. My Runaway for my
essentials. My travel pillow, extra socks, a cashmere wrap that can be a scarf
or a blanket… and I must admit I can get through the security line in about 30
seconds flat. I have a special pocket for the laptop and side pockets for
toiletries and a special place for the passport which is easy to access. I like
to move as quickly through the airport as possible and feel as together as
possible so I can remain relaxed and calm. My other trick is that I always do
yoga the morning before a flight and then the evening or morning after I
arrive. I swear it helps with jet lag and allows me to hit the ground
running—which is necessary since I am often operating on two time zones.
What is your
favourite thing about travelling?
Being
exposed to different cultures. I love observing different ways to approach the
world and different ways to communicate. I am inspired by the different ways
that exist to design buildings, roads or even signs… it's something we take for
granted, but each culture has really developed their own way, something I find
fascinating. I love that when you land in NYC, the energy feels entirely
different to when I am in London. It seems like an obvious concept but I am
constantly inspired by being exposed to different cultures. I have a long list
of places I wish to travel to… I try to avoid going to the same places too
often as there is so much of the world to explore!
What does
luxury mean to you?
Timeless.
Authentic. Perfected. Designed for the client.
What are the
things we will always find inside your bag (the non-obvious please!)
Yoga
clothes—it keeps me sane. My sketchbook. And my laptop. Not super exciting, but
you can see what life is like as an entrepreneur :) Probably the only thing
missing from my essentials is a way to feasibly carry around a bottle of wine
with me... hence why I will soon have a Métier wine carrier in the collection!
Tuesday 8 October 2024
The Rise And Tragic Fall Of Burberry
Burberry
shares plunge to a 14-year low, but what’s behind the collapse?
By:Bethany
Wales
https://www.cityam.com/burrberry-shares-plunge-to-a-14-year-low-but-whats-behind-the-collapse/
Shares in
British designer brand Burberry have crashed by 70 per cent in the past year.
Once a
beacon of British heritage and craftsmanship, Burberry’s recent decline has
been striking. Shoppers and investors seem to have fallen out of love with the
retailer. Sales have plunged, and Burberry shares have fallen 70 per cent over
the past year. Earlier this week, the stock touched a 14-year low before
rebounding.
While the
luxury goods sector as a whole has faced challenges, the speed and severity of
the London-listed brand’s fall from grace stands out. Its decline has earned it
an unenviable spot among the FTSE 100’s worst performers of 2024 so far.
A toxic
cocktail of issues is behind the decline—some due to the company’s own missteps
and others from sheer bad luck.
Dire
financial results
Burberry
shares nosedived last month as the company revealed how badly it had performed
in the first half of the year.
For the 13
weeks ending 29th June, the company’s comparable store sales—excluding the
effects of new openings, closures, and renovations—fell by 21 per cent compared
to the same period last year.
Burberry
explained: “The slowdown in trading we experienced in [the first quarter of our
financial year] continued into July. If this trend were to continue through the
current quarter, we would expect to report a half-year operating loss and full
year operating profit to be below current consensus.
“As we
navigate this period, we have decided to suspend dividend payments in respect
of [the financial year to the end of March 2025] in order to maintain a strong
balance sheet and our capacity to invest in Burberry’s long term growth.”
As a result,
Burberry suspended its dividend. It also revealed it was discussing potential
job cuts with employees, with around 200 positions on the line worldwide.
This
disappointing set of results was particularly notable because, 12 months
earlier, the company had celebrated a strong performance for the first quarter
of its 2023 financial year.
In mid-July
2023, Burberry shares surged around six per cent after the brand announced an
18 per cent increase in sales for that quarter.
The sharp
180 from success to losses shocked investors who didn’t waste any time as they
headed for the exit.
Burberry’s
boardroom merry-go-round
Leadership
changes at Burberry have also impacted its share price, creating an environment
of uncertainty which has contributed to the volatility in its share price.
Marco
Gobbetti, who took the reins as CEO in July 2017, played a pivotal role in
stabilising the company after the misstep of appointing Christopher Bailey as
both chief creative officer and chief executive in 2013.
Bailey’s
dual role never sat well with the City, particularly after Burberry handed him
a £7.6m share package. Confidence waned further with the departure of John
Smith, the company’s COO.
Gobbetti’s
tenure was cut short when he left in 2021 to lead Salvatore Ferragamo, leaving
his work at Burberry arguably incomplete.
Since then,
Jonathan Akeroyd’s leadership has seen a series of high-profile exits,
including Riccardo Tisci and Julie Brown, the widely respected CFO and COO.
Most
recently, Burberry announced that Rod Manley, its chief marketing officer,
would depart by the end of the year, fuelling speculation about the future of
Daniel Lee, Burberry’s chief creative officer, following Akeroyd’s departure.
Investors
will be watching Joshua Schulman, the company’s newest CEO, closely to see if
he can finally bring some much-needed stability to the boardroom.
Branding
blunders and identity crises
Under the
leadership of former CEO Marco Gobbetti, Burberry sought to elevate its brand
positioning by focusing more on high-end luxury and reducing the availability
of its products in lower-tier markets.
This
strategy initially received positive feedback, stabilising the share price as
investors saw potential for long-term growth.
However
Gobbetti’s departure and the subsequent arrival of Jonathan Akeroyd brought
uncertainty, with each new leader bringing different visions for the brand,
causing fluctuations in investor confidence and, by extension, its share price.
What’s more,
the company has been trying to strike a balance between its heritage as a
quintessentially British luxury brand and the need to appeal to a younger, more
global audience.
This
strategic shift has included new designer hires, marketing campaigns, and
product lines. Unfortunately for Burberry, many of these design choices have
failed to resonate.
The brand’s
departure from its iconic camel, red, and black check pattern didn’t sit well
with the brand’s loyal followers.
Meanwhile,
increased competition from other luxury brands and the rise of new, disruptive
players in the fashion industry helped to erode the British designer’s market
share.
Can Burberry
shares bounce back?
The general
consensus is that things could get worse for the British icon before they
improve.
Analyst
forecasts predict the company’s revenue will fall five per cent to £2.7bn in
its 2025 financial year.
The brand’s
comparable retail sales are expected to drop by 15 per cent in the first three
months of the year, which will level out to a decline of three per cent by the
end of 2025.
“The
combination of weak social media and Google search trends, as well as muted
feedback from the trade on Burberry’s new collection, give no reason to believe
that its momentum is accelerating,” UBS analyst Zuzanna Pusz said last month in
a note.
“While
Burberry’s doing a lot of things right behind the scenes, like investing in
products and distribution and even refreshing the management team, its
short-term picture remains fraught with real challenges and uncertainty,” Aarin
Chiekrie, equity analyst at Hargreaves Lansdown, said.
“On their
own [job cuts] are likely to only be a sticking plaster, and if this means
customer service, or creative capabilities are compromised, it could do further
long-term damage to the brand.
Friendlander
said that to move forward and avoid a buyout, Burberry needs “stable and
visionary leader to guide the brand through its hurdles and towards digital
transformation and innovation.
“It could be
a while yet before sentiment swings and Burberry begins to bloom again,”
Chiekrie noted.
Monday 7 October 2024
La valse d'Amélie / Squeezed out: last accordion maker in France to close shop after 105 years
Squeezed
out: last accordion maker in France to close shop after 105 years
Maugein
owner blames competition from China and Covid pandemic for firm’s demise, but
former French president says there is hope
Kim Willsher
in Paris
Sat 5 Oct
2024 06.00 CEST
Its
distinctive sound has provided the soundtrack for some of France’s most
recognisable cultural classics, from Parisian dance halls to the film Amélie
and the songs of Édith Piaf. It has even been played by a former president.
But it seems
the traditional French-made accordéon à bretelles (strap accordion) has been
squeezed out of existence after Maugein, the country’s last manufacturer, was
forced into liquidation after 105 years of making the instrument, known as the
“poor person’s piano”.
“We’re
closing,” said Richard Brandao, 57, who took over the struggling company 11
years ago, and who blames competition from China and the disruption of the
Covid pandemic for the firm’s demise.
“Since
Covid, it’s all over. We were going up the slope until 2019, but Covid took us
down,” he added.
Maugein, the
last artisanal French accordion maker in a market dominated by Chinese
manufacturers, still had 10 employees, the oldest of whom started out as an
apprentice 39 years ago.
Founded in
1919 by Jean Maugein, who made the instruments in a former first world war
munitions factory, the company originally employed 290 people in the town of
Tulle in the Corrèze in central France. Business boomed after the second world
war when the arrival in France of jazz and swing boosted sales, but the company
began to decline in the 1970s.
Former
president Valéry Giscard d’Estaing, who died in 2020 and was a keen
accordionist, is credited with using the instrument to revolutionise political
communication.
In 1973,
while minister of finance, he was filmed playing a duet with the French “Queen
of the Accordion” Yvette Horner at the international accordion festival.
“If all
politicians played the accordion we’d get along much better,” he told
reporters.
Since the
1990s, Maugein has been the only accordion maker in France to produce
instruments from scratch and to order, a process that takes 110 hours and up to
6,000 parts, to create 70-80 accordions each month. By 2012, the workforce had
been reduced to 21 people, but output remained at up to 600 instruments a year.
A year
later, faced with dwindling orders caused by competition from Chinese
competitors producing cheaper models, Maugein tried to diversify by producing
harmonicas and electric accordions.
Despite a
surge in sales sparked by the success of an album by the singer and
accordionist Claudio Capéo, the company faced closure a decade ago. It was
saved with an injection of money including €600,000 (£500,000) from the former
Arsenal and French international defender Laurent Koscielny, who was born in
Tulle.
The
announcement last week that the company had been placed into liquidation by the
local financial court came just six months after former president François
Hollande, a resident of Tulle, and culture minister Rachida Dati inaugurated a
€9m Accordion City museum and cultural space in the town.
“Our only
hope was to break into the Chinese market, where growth and interest in
accordions is strongest, but we didn’t succeed,” Brandao told La Montagne
newspaper.
“And this
despite our participation in the China International Musical Instrument Show,
the world’s biggest event in the sector.”
Brandao told
the Guardian: “The company has been placed into liquidation and is therefore
closed. The employees will be made redundant next week.”
He added: “A
takeover project is being considered by 4 employees. It’s still too early to
say, but we should know more within the next month. The other employees are
looking for new jobs. That’s all the news from Maison Maugein.”
Hollande,
now an MP, said liquidation did not mean the end of the company.
“It means
that at some point, the Maugein brand, the Maugein business and the accordion
will be able to continue thanks to new investors. They are bound to narrow down
the manufacturing side but try to broaden distribution,” Hollande told Totem
Radio.
“We will
continue to encourage this takeover so we can have the satisfaction of hearing
the Maugein accordion in many concert halls.”
He added:
“Nothing is lost, everything must be done, because the announcement of
Maugein’s liquidation is not just news that saddens the people of Tulle and the
Corrèze. Accordions are known throughout France.”
The last
Maugein accordion on order will be delivered on Monday.