Fashion News Roundup: Vestiaire Collective, Earnings Season, and More
This week's important news topics that you should know about.
I’ve given a summary of each topic and sprinkled in my thoughts. These are some of the most interesting stories within the fashion world right now and are being discussed thoroughly, so you’ll be able to look them up and dive deeper if you want more information. Feel free to drop any commentary you have in the comments so we can all discuss!
Vestiaire Collective Gives U.S. CEO an Additional Title
France-based luxury resale platform Vestiaire Collective has officially appointed Samina Virk as the company’s CMO. She’ll now be leading the marketing function globally in addition to her current role running the U.S. market. She’s responsible for helping the company enter the states 10 years ago. While seemingly an honor, this decision can be a bit precarious. There is something to be said about having separation between someone who can focus on the holistic long term strategy of a country/geo and its operations, and someone who can set the strategy for how to unify the voice of the brand across multiple markets while keeping localization needs in mind. At the end of the day, this is another woman in a leadership role that’s being given more responsibility after proving she is an essential part of their executive team, so I’m rooting for her.
More Stock Slides Expected This Earnings Season
We’re starting to enter the season of the H1 earnings calls for the big European luxury conglomerates. Given how much we’ve seen these giants struggle with sales for the last 7+ months, these financial performance readouts will most likely shine the light on who has winning potential and those who will be taking some hard losses over subsequent quarters. This is a time where browsing financial statements alone won’t allow you to make the best judgement on which stock to hold vs buy vs sell. A keen understanding of the industry from a marketing lens will give you a much better sense of who might come out on top. Burberry and Hermés are part of the select few expected to come out unscathed in the next several weeks. Yes, their sales have been up, but more importantly, Burberry’s “Burberry Forward” strategy is working extremely well and Hermés took away the most valuable company crown from LVMH by continuing to remain relevant with a modern take on scarcity tactics and still be product focused.
Cybercrime on the Rise
Over the years we’ve seen specific industries attacked by hackers. A few years ago it felt as though the entire entertainment industry was on high alert. Now it seems fashion brands are falling prey to the same cycle. This week LVMH reported a data breach of their Hong Kong customers. While most of the brands that have been breached only saw demographic information and product preferences compromised, this attack included stolen passport data. “‘Retailers, overflowing with customer information, have become easy targets for attackers, and the consequences are substantial,’ James Hadley, CIO of Immersive, said. While hackers have been well aware that the retail sector veers to the weaker side of the cyber-defense graph, ‘the recent string of breaches will have emboldened them further.’”1 LVMH joins names like Cartier, North Face, and Victoria’s Secret who have all been targeted recently.
Ralph Lauren Continues Their Partnership with HBCUs
Yesterday Ralph Lauren introduced their latest collection titled “Polo Ralph Lauren Honors Oak Bluffs”. The vibrant capsule is dedicated to the area of Martha’s Vineyard where for generations black families spend their summers. This was one of the only places in the country that allowed black people to buy and invest in beachfront property during segregation. Now massive friend groups in their 20s and 30s plan parties and relaxing weekends while their parents get together to reconnect and fellowship. Using Morehouse and Spelman College students as their muses and designers, Ralph Lauren once again shows off its masterful storytelling abilities. The brand previously partnered with both schools in 2022 to create their inaugural collegiate-inspired collection.
Marks & Spencer Sanctioned for Unhealthy Model Ad
UK-based retailer Marks & Spencer was sanctioned by the ASA (England’s version of the Federal Trade Commission) for using an unhealthy model in their latest ad. According to the lawsuit, “The ASA claimed the model's collar bones were very prominent, which was emphasized by her pose, and the large pointed shoes emphasized the slenderness of her legs. The camera angle made the model's head appear out of proportion with the rest of her body, highlighting her small frame, the ruling added. ‘Therefore, we considered that the pose of the model and the choice of clothing meant the ad gave the impression that the model was unhealthily thin,’ concluded the ASA.”2 Marks & Spencer complied swiftly and the ad has been removed from circulation, but some experts are confused by the ruling, citing M&S has always promoted inclusivity within their brand. This begs several questions: have we gotten to the point within the fashion industry where we’re telling people they aren’t allowed to be thin? It’s still critical to ensure that we’re not glamorizing what could be anorexia or other eating disorders, but does this start to exclude women who are naturally skinny? And does this conversation overall begin to wanter into a territory where we criticize women’s bodies even more often than it already happens?
Forbes Retail; Warning As Cartier Hacked — What You Need To Know
ITV; Marks & Spencer advert banned for featuring ‘unhealthily thin’ model