{"id":2858,"date":"2021-11-25T15:43:23","date_gmt":"2021-11-25T14:43:23","guid":{"rendered":"https:\/\/magazine.lineapelle-fair.it\/?p=2858"},"modified":"2021-11-25T15:43:23","modified_gmt":"2021-11-25T14:43:23","slug":"how-the-brands-are-rebounding-and-why-they-are-succeeding","status":"publish","type":"post","link":"https:\/\/magazine.lineapelle-fair.it\/en\/focus-en\/how-the-brands-are-rebounding-and-why-they-are-succeeding\/","title":{"rendered":"How the brands are rebounding and why they are succeeding"},"content":{"rendered":"

The rebound of the (partial) 2021 financial statements for brands in all luxury segments has a very specific characteristic: that of going beyond the levels of 2019, when the pandemic had not yet transformed our lives. And if almost all of them are succeeding, there is a reason. Four, in fact<\/strong><\/em><\/p>\n

 <\/p>\n

The pandemic<\/strong> has tightened luxury<\/strong> to the ropes, but it hasn’t knocked it out. Quite the opposite, in fact. The (almost) post-Covid that we are currently experiencing has generated an almost opposite trend. Many are calling it a ‘rebound<\/strong>‘, but one where the height reached is greater than the previous peaks. That is: in 2019. This is how it works, at least for the best players <\/strong>in the segment, the large multinational groups, which, thanks to their resources and structures, have been able to feed on lymph composed of 4 elements<\/strong>:<\/p>\n

1<\/strong> > China,
\n2<\/strong> > digital,
\n3<\/strong> > sustainability,
\n4<\/strong> > young consumers.<\/p>\n

Four big shots of a commercial jigsaw that are joined together, above all, by a particular production specialty<\/strong>: leather<\/strong> accessories, which are worth on average more than a third of brands revenues. Even if, for the big luxury conglomerates, this percentage is higher.<\/p>\n

The luxury rebound<\/strong><\/h3>\n

The locomotives<\/strong><\/h3>\n

For Herm\u00e8s<\/a>,<\/strong> the pandemic has turned into a boost. In the third quarter of 2021<\/strong>, revenues were \u20ac 2.37 billion, up 40% on the same period in 2019. In the same quarter, LVMH<\/strong>‘s turnover increased by 11% in 2019 to \u20ac 15.5 billion. Bernard Arnault’s battleship thanks (officially) the leather goods lines of Louis Vuitton, Dior, Fendi, Celine and Loewe. Kering<\/strong> had sales of \u20ac 4.19 billion, +10% in 2019. A moderate growth due to the slowdown of Gucci<\/strong> (only +3.8% in 2020).<\/p>\n

Bottega Veneta<\/strong> did well (but not so well), while Saint Laurent was flying. Richemont<\/strong> stood at \u20ac 4.5 billion in sales, +23% in 2019, with the “Other” division, which includes fashion brands, up 10% in 2019. Missing from the roll call is Chanel<\/strong>. Its executives simply say it will close 2021 with double-digit growth (thanks also to continued price hikes) after an 18% drop in 2020 closed at $ 10.1 billion.<\/p>\n

Independent labels<\/strong><\/h3>\n

Independent fashion houses are busy looking for a strategy for success.<\/strong> A strategy that could last a year<\/strong>, while waiting for travel shopping to resume and, this time in positive terms, shuffle the cards on the table once again. Let’s start with Moncler<\/strong>: quarterly turnover of 555.5 million euros, +55% in 2020 and +33% in 2019. Brunello Cucinelli<\/strong> is close behind with revenues of 188.8 million, up 12.5% in 2020, and Zegna<\/strong>: 603.3 million in revenues and +49.9% compared to last year in the last 6 months.<\/p>\n

Burberry<\/strong> is also smiling, with sales of 1.21 billion pounds in the last 6 months and up 45% in 2020. And, with him, Ralph Lauren<\/strong> enjoys it, with revenues of 1.5 billion dollars (+26% on last year). Salvatore Ferragamo<\/strong>‘s quarterly growth over 2020 was 17.4%, Tod’s<\/strong> 14.6%. Aeffe<\/strong>‘s brands (Pollini, Moschino, Alberta Ferretti, Philosophy) returned positive by 6.3%, but they all remain (together with Tod’s and Ferragamo) below the levels of 2019 if we evaluate the trend of the nine months: -21% for the Florentine brand, -6.9% for the group led by Diego Della Valle, -7% for Aeffe.<\/p>\n

Accessible luxury<\/strong><\/h3>\n

Affordable luxury has been able to take advantage of a lower average price<\/strong> and the boost from the North American market<\/strong>, which is rebounding more than expected. For example, Steve Madden<\/strong> in the third trimester of 2021 (July-September) posted its highest sales ever<\/strong>: $ 528.7 million, up 5% on 2019. Coach<\/strong> shines (+15% on 2019), which led Tapestry<\/strong> by the hand at +9% compared to the pre-pandemic figure (in value: $1.48 billion).<\/p>\n

Then there’s Versace<\/strong> which grew 45% in 2020, trailing Capri<\/strong> Holdings<\/strong> at $ 1.3 billion, +17% in 2020. VF Corp<\/strong> reported $ 3.2 billion (+23%), missing forecasts of $3.5 billion due in part to the weak performance of Vans<\/strong> (+7%). PVH’s<\/strong> momentum was excellent: in the May-July quarter, it reported sales of $ 2.3 billion (+46% on 2020), with Tommy Hilfiger<\/strong> up 41% and Calvin Klein <\/strong>up 56%. Outside the US, the German group Hugo Boss<\/strong> made a good impression: sales of \u20ac 755 million: +7% in 2019.<\/p>\n

Read also:<\/strong><\/p>\n