Bain expects global luxury sales to return to pre-epidemic levels this year
According to a new report from Bain Company, thanks to strong consumption levels in the US and China, global luxury sales will reach €283 billion this year, up 4% at constant exchange rates compared to pre-epidemic 2019, particularly in high-end footwear, leather goods and jewellery. Of these, the US overtook Europe as the largest luxury market this year, and Europe is not expected to return to pre-epidemic levels until 2024. Bain also said that consumers under the age of 40 are expected to account for more than 60% of luxury purchases this year, with the proportion set to exceed 70% by 2025.
Former Nike executive launches new sportswear brand Omorpho
Fashion Without Borders has learned that former Nike executive Stefan Olander has officially launched Omorpho, a new sportswear brand with products designed to strategically spread weight throughout the body to improve health, speed and strength. Its iconic Gravity Sportswear range is said to use MicroLoad to enhance workouts and premium performance fabrics to provide comfort and stretch for maximum range of motion. Omorpho is said to currently include items such as long and short sleeve tops, tank tops, motorbike shorts and leggings for both men and women. The products are priced from $100 and will be available exclusively through the Omorpho brand website.
Cartier’s parent company’s revenues jump 65% in the first half of the financial year
Fashion Without Borders has learned that Richemont, Cartier’s parent company, sales jump 65% year-on-year to €8.91 billion in the six months to 30 September, also recording strong growth of 20% over the same period in 2019, and net profit recorded at €1.25 billion, both beating analysts’ expectations.
Notably, Richemont also announced that it is in talks with luxury e-commerce platform Farfetch regarding the divestment of Yoox Net-a-Porter, with the aim of turning YNAP into a neutral platform without a controlling shareholder, on top of the latest omnichannel retailing technology, to better drive the luxury business online.
Moschino’s parent company sales jump 21% in first three quarters
Moschino’s parent company Aeffe saw sales jump 21% year-on-year to €250 million in the nine months to 30 September 2021, but recorded a 7% decline compared to the same period in 2019, while operating profit recorded €17.5 million and net profit turned around to €23.2 million, compared to a net loss of €14 million in the same period last year, Fashion Without Borders has learned. The group said the increase was mainly due to positive contributions from the US, Continental Europe and directly operated online channels. As previously reported by Fashion Without Borders, the Aeffe Group acquired the remaining 30% of its brand Moschino from Siny Holding, Siny Real Estate and Siny in July this year, officially taking full control of Moschino.
Diesel’s parent company plans to go public in 2024
Renzo Rosso, chairman and founder of Italian fashion group OTB, has said in a press interview that the group plans to go public in 2024, Fashion Without Borders has learned. OTB is said to own a range of high-end European brands, including Diesel, Maison Margiela, Marni, Viktor&Rolf and Paula Cademartori, as well as acquiring the Jil Sander brand from Japanese fashion group Onward Holdings in March this year. Renzo Rosso has also previously revealed that the group will enter the high fashion market in the future, with plans to acquire high-end brands rather than lifestyle brands.
Louis Vuitton rumored to be considering opening its first branded duty-free shop in China in Hainan
Louis Vuitton executives are considering the possibility of signing a deal with CDFG to open its first duty-free shop in Hainan, China, according to Reuters, citing two people familiar with the matter. Significantly, the move may also symbolize a new shift in market strategy for the world’s largest luxury brand. According to data from the Hainan Provincial Bureau of Statistics, stimulated by the impact of the new duty-free policy, in the first three quarters of this year, Hainan’s duty-free sales reached 41.7 billion yuan, up 118% year-on-year; the number of duty-free purchases reached 7,303,400, up 116% year-on-year, and the number of duty-free purchases reached 38,109,400, up 96% year-on-year.