Julia Frankenberger

With far more demand than supply, Hermès #Birkin bags flip economics on its head by having a resale value of ~2x the original sales price. Of course, that’s only if you can get one. Demand is so high that when a shipment of Birkins arrive to a store, they are “assigned to individual sales associates,” who must make a case for why their client “deserves a Birkin and get the store manager’s approval.” Yet another reason why I love the #fashion industry. https://lnkd.in/emtwPUnt

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To meet consumer needs in Asian markets, it’s important to understand behaviours and cultural backgrounds and ensure product and marketing strategies are answering those. #Localisation is key. Just being a foreign brand is not enough anymore; international brands not adapting to local preferences find it often difficult to grow. Thinking of C-Beauty and competition in China, local brands are frequently more flexible and responsive to local consumer trends. Beauty consumers are becoming #skinexperts. Information is easily available online, and consumers are eager to understand more about its ingredients, inclusive scientific backgrounds of products. Those “skintellectuals” are more common among Asian consumers. In my view, as an international brand you have to understand the China / Asian consumer, which often requires adaption, often even to advanced products in terms of ingredients & benefits, but also to communicate these well to the more educated and interested consumer here.  While doing that, the brand still has to stay true to its global brand position. 

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Global beauty leader L'Oréal has expanded its beauty tech startup competition in Asia, to uncover more solutions and services that can cater to the region’s young and digitally-savvy consumers. The Big Bang Beauty Tech Innovation Programme will now include Singapore and the rest of the South Asia Pacific, Middle East and North Africa (SAPMENA) region. It aims to discover and nurture promising startups, so that they can develop their pilots in #beautytech innovation, and help the company answer unmet needs through solutions that leverage data and tech. Three start-ups from the region will ultimately be awarded L’Oréal-funded, commercial pilot opportunities and a year-long mentorship programme. This will give them access to the company’s extensive network of commercial and digital partners, and potential exposure to some of the world’s fastest-growing markets in the region. The innovation programme is being led from Singapore, where L’Oréal has operated for more than three decades. L’Oréal will be able to draw on Singapore’s robust #innovation ecosystem and digital capabilities, to better serve the region’s young, diverse, and dynamic consumers. Learn more about the programme (including how to apply) here: https://lnkd.in/gMjFiGWH

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L'Oréal's launchpad for pioneering beauty #tech ideas is here! 💄🤖 This Big Bang Beauty Tech Innovation Programme is being led from #Singapore, where L'Oréal spotlights promising #startups, providing a platform for them to develop commercial pilots, access to the company's extensive network and resources to potentially reach 35 markets across the South Asia Pacific, Middle East, and North Africa (SAPMENA) regions, and receive personalised mentorship. Focusing on collaborative development of cutting-edge solutions based on key themes: consumer experience, content, media, new commerce, and tech for good, the programme allows local startups the opportunity to partner with global beauty leaders. Connecting with industry leaders and strategic partners could be the catalyst for your #business to leap into the next stage of #growth. 🚀 💡Learn more about the Big Bang Beauty Tech Innovation Programme here: https://lnkd.in/gdYjpUzM At SME Centre@SMF (Singapore Manufacturing Federation), we provide support to #SMEs venture into global markets, armed with the tools, network, and support they need to succeed. Book a complimentary 1-to-1 business advisory session here: https://lnkd.in/g_5tassX and let us assist you! #sme #smesupport #growth #businessgrowth #sgbusiness #businessadvisory #consulting #businessstrategy #entrepreneur #businessexpansion #beautytech #newmarkets #innovation #collaborations #goglobal #internationalisation #internationalization

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The latest on RetailWire ➡ Levi Strauss & Co. has launched a revamped store in Kyoto, Japan, adopting the “NextGen” format aimed at improving the shopping experience. The newly reopened Levi’s store, located in the Teramachi Kyogoku shopping district, occupies a spacious 570 square meters across four levels. This expansion makes it more than double the size of its predecessor, which had just two floors. And this isn’t your typical Levi’s store in any standard shopping center or location. Through a combination of store design layout and locally tailored offerings, it makes a statement and aims to generate more sales from its community and beyond. ⬇ My comments featured below ⬇ "Levis’ localized strategy across the store experience and product mix could be the winning strategy that all retailers need to consider. But Levi’s must have exceptional product obsessed store associates on the shop floor to make this concept successful. I would love to see more retailers take this hyper localized + experiential approach to their stores but I am not sure they would make this investment. They are too concerned with reducing operating costs and most strategies today are reactive. Inventory management is still a top concern and until retailers can get their product assortment in check, their focus will not be innovating their stores." ➡ Checkout the discussion here: https://lnkd.in/eTbCq9qj #retail #retailwire #braintrust #retailnews #levis #stores #technology

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With China’s consumer confidence in 2024 still taking hits, the recovery of luxury goods consumption has proven to be shaky. Some brands like Miu Miu achieved stratospheric growth in 2024, while others, like Burberry, have suffered, so much so in the British fashion house’s case that a long term look at the brand’s company structure is necessary. As social media impact is key to brand performance in China, ReHub’s quarterly Compass Index provides a barometer for luxury and premium brands and the impact of their marketing and consumer noise. Based on data from both Brand Generated Content (official accounts) as well as user generated content (organic mentions and engagements), the index covers WeChat, Douyin, Xiaohongshu (Little Red Book) and Weibo. ReHub’s Compass Index looks at how brands rank among competitors and uncovers the marketing impact across key social media channels in China.

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The success of the Memo Paris Seoul pop-up underscores the growing appetite for niche fragrances in Asia, presenting lucrative opportunities for niche fragrance brands to capitalize on this trend. Memo's approach of creating immersive brand experiences resonates well with Asian consumers, emphasizing the importance of experiential marketing strategies. Memo acknowledges the unique preferences of Asian consumers for fragrances that are more personal and storytelling-oriented. This insight is crucial for niche fragrance brands looking to expand their brand's global presence and tailor products to specific regional demands.

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When I returned to IBM, I was delighted to learn about our presence in the Luxury sector and in the last three years we have gone from strength-to-strength with prominent clients like LVMH and her maisons, Selfridges, El Corte Inglés and Hermès. The luxury market saw a huge boom as a result of Covid with a term that we (Karl) coined “resplurgence” with luxury growth and premiumisation driven by pent up demand, for example higher price spirits grow ~9 times faster than total spirits. But now, the luxury market is catching the cold that other Consumer Products and Retail categories caught a while ago with little room for growth as globally all markets are constrained; North, East and West. The fortunes of three major luxury groups—Hermès, LVMH, and Kering—are diverging amid a shift to slower growth and challenges in the Chinese market. Hermès achieved a notable 17% increase in sales in the first quarter, benefiting from its focus on high-end consumers. LVMH saw a smaller rise due to weaker demand for its fashion and a drop in champagne sales with the other maisons delivering more strongly. In contrast, Kering faced significant challenges with an 18% decrease in Gucci sales, leading to a forecasted 45% profit drop in the first half of the year. There has always been somewhat of two-tiers, and we see a growing gap between brands favoured by the wealthiest shoppers and those preferred by aspirational customers, particularly in Asia-Pacific. Despite Kering's struggles, overall Luxury sector growth is expected to continue. ___ #ItsAGreatTimeToBeAnIBMer in Lux with #AI #GenAI #GenerativeAI and the unbeatable combo of #IBMConsulting #IBM #IBMTechnology #IBMResearch with #watsonx in #FMCG #ConsumerGoods #Retail #Lux #Luxury with our clients #LVMH #Hermès #RethinkRetail #RethinkRetailTopExpert RETHINK Retail ___ Indre KALFANE • Frédéric Asquiedge • Sophie A. • Rodolfo Pérez Kuzma • Emmanuel de Saint Leger • Olivier Reine • Alex Bauer • Craig Siddons • Emily Young • Katie Williams • Manuel Carrasco Pérez • Berta Fernandez ___ ⭐️Sponsor Me to do 100 press-ups per day for Cancer Research in April: https://lnkd.in/edyDpd_W ⭐️ ___ Read more with the FT Paris Correspondent, Adrienne Klasa in the Financial Times:

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I love LVMH and we are proud to partner with them; the world’s leading luxury goods conglomerate and the most valuable European company by market cap. Achingly glamorous, based in Paris, LVMH operates with a broad portfolio of 75 prestigious Maisons grouped into 5 different sectors: Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewellery, and Selective Retailing. OLD SCHOOL? … absolument pas! Although owning brands that have been around for centuries like Dom Pérignon (since 1668), Maison Ruinart (1729), my Acqua di Parma (1916), Guerlain (1828), Bvlgari (1884) but the LVMH strategy and structure enables a diversified range of high-end brands like Sephora, DFS in global travel shopping and leading edge industry initiatives that showcase LVMH’s dedication to staying relevant in a fast-evolving luxury market, blending tradition with cutting-edge tech and sustainable practices: •Digital Innovation: LVMH established our Digital Academy to foster digital transformation and innovation across its maisons •Sustainability Commitments: with ambitious targets set through their LIFE 360 program which focuses on environmental impact at every level, from product design to sourcing and production •RetAIl: LVMH uses AI to enhance customer experience by analysing data to personalise offerings and optimise stock levels across its channels •Investment in Startups: Through its LVMH Luxury Ventures arm, in emerging luxury brands and technology startups, fostering innovation within and outside its portfolio •LVMH Research Centre: focuses on scientific research dedicated to crafting the future of luxury, exploring materials science, biotechnologies, and digitalisation. •Collaborations with Tech Companies: LVMH has partnered with global tech leaders like IBM, Google and Apple to integrate technology throughout the business THE GLOBAL LUXURY PLAYER In 2023, the value of LVMH's exports amounted to 4% of all exports, totaling €24 billion surpassing the entire agricultural contribution of 3.2%. Geographically, LVMH’s sales distribution is extensive, with the U.S. making up about 25% of sales and Asia just under 40%. However, growth varied by region with sustained growth in Europe and Asia, but somewhat weaker performance in the U.S. as we see across luxury. Amidst global economic slowdowns and a shift in consumer demand affecting the luxury sector, LVMH reported a dip in demand. Despite these challenges, LVMH continues to be a dominant player in Luc and key to France’s economy We excel in the Luxury sector but don’t take my word for it, speak to Indre KALFANE - Arnaud PELLETIER - Frédéric Asquiedge - Sophie A. - Jerry Edmunds #ProudToPartner #LVMH #PoshPurchases #GlamourGoals #HauteCouture #LuxuryRetail #LuxuryGoods #Luxury #ItsAGreatTimeToBeAnIBMer #AI #GenAI #IBMRetail #IBMConsumer #RethinkRetail #RethinkRetailTopExpert RETHINK Retail ⭐️Sponsor Me to do 100 press-ups per day for Cancer Research in April: https://lnkd.in/edyDpd_W

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Could this mark the reversal of Hong Kong's fortune as a retail hub? Hong Kong's retail scene has been battered years before the pandemic due to the social unrest. I did manage to visit the iconic K11 MUSEA mall during a transit trip last year this time. It was crowded with people, locals and tourists alike. However, the word on the market was that people were not spending as much as before. Nonetheless, this investment, with other brands taking cue, seems to indicate an optimistic view of Hong Kong's retail. When was the last time you visited Hong Kong? #retail #hongkong #physicalretailisnotdead https://lnkd.in/gig2MHJZ

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After reading about SEPHORA's DEI success in Europe, it's inspiring to see companies prioritizing diversity globally. Understanding regional nuances and adapting DEI strategies is key. Artemis Patrick's appointment as CEO sets a powerful example. Linking D&I goals to performance reviews shows a tangible commitment to change. Collaborating with HBCUs for talent sourcing is a strategic move. This showcases that DEI isn't just a moral stance; it's a smart business strategy. Sephora's approach proves that diversity isn't just about optics; it's about creating a more innovative and inclusive workplace. #DiversityWins #StrategicDEI #InclusiveSuccess #TalentRevolution

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Is it time for Burberry to consider new management? Having just reported dismal FY24 results and remained vague about the FY25 LFL outlook, it must be time to consider a new management and creative team. Shareholders must be losing patience with Burberry, which has underperformed the luxury sector for almost 10 years.  Christopher Bailey was a brilliant creative director but did not have the right skills as CEO. Since then, first the Italian CEO/creative duo of Marco Gobbetti/Riccardo Tisci; and currently Jonathan Akeroyd/Daniel Lee have fared little better. But why? The luxury market is weaker than expected in 2024, but this alone is insufficient to explain the company’s current underperformance. Burberry’s strategy to elevate the brand; and shift towards leather goods has never made sense to me. This is a crowded, hyper-competitive space already and more importantly, it is not where Burberry’s DNA lies. Burberry’s DNA is about protecting people from the elements The brand has always been about protecting people from the elements. But in its eagerness to become a more exclusive leather goods brand, Burberry has let Moncler run away with the luxury outerwear space. Considering the interest in climate change, it seems like such a relevant category. Burberry’s positioning should be about accessible luxury No brand can take its pricing upwards easily, especially not in the current environment. It will be difficult for Burberry to move into higher-priced exclusive luxury, with the number of outlets Burberry has. It is no surprise that none of the successful luxury brands that operate in this higher-priced space – including Chanel, Dior, Hermes and Vuitton – have outlets. Being fashion-forward when quiet luxury in vogue is problematic Offering too high a fashion component at a time when quiet luxury is in vogue is also a difficult strategy. In my mind, Burberry should be a modern classic but not high-fashion. Burberry doesn’t feel like Burberry any more If you walk into the Bond Street Burberry store today, the white box feels anonymous; this store could arguably belong to a whole host of premium brands. I also think it’s a pity that successive management teams have been allowed to tamper with the typeface/font. The new font is not even consistently applied across the world. (For example, the Vienna flagship still uses the old one). As for heavy use of the colour blue, I associate Burberry with tan, black and dark red of the check. I’d love to know what you think. #luxury #management #turnaround Smith Square Partners https://lnkd.in/ebH9PX3W

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Overall a healthy/ welcomed growth rate normalization Yes China played a role but we see growth rates cooling down across segments/ regions Luxury is all about maintaining scarcity/ desirability Large scale (>$5bn yearly net revenue) luxury brands cannot grow sustainably at a low double digit CAGR while maintaining scarcity/ desirability The below is not a sign of weakness but a much needed cool-off to enable sustainable long term growth #luxury Kering CHANEL LVMH Richemont

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The Estée Lauder Companies Inc.: contrasting quarterly call with a double (top-/bottom-line) beat for Q1 but lowering guidance for the rest of the year on the back of expected continuous challenges in China/ Travel Retail Stock lost 11% (!) today (and ~65% since its dec 2021 peak) Rare to see such a correction on the back of such a result & in a context the stock declined already by 2/3 If the management expects 2024 to be the transition year, the financial community does not seem to be convinced at this stage... In the details: Estee Lauder Q1 FY24 results summary (Q3 result - FY Jul-June) • NR: $ 3.94bn • OSG: 6% • GM%: 71.9%; +280 bps vs Q1 FY23 • Adj. Operating Income%: 14.1%; +842 bps vs Q1 FY 23 Results by Product Category: • Skincare: $ 2,060m NR; OSG: 9% • Make-up: $ 1,136m NR; OSG: 4% • Fragrance: $ 575m NR; OSG: 1% • Hair Care: $ 143m NR; OSG: -4% Results by Regions: • The Americas: $ 1,117m NR; OSG: +1% • Europe, the Middle East & Africa: $1,647m; OSG: 12% • Asia/Pacific: $1,176m; OSG: 3% Analyst Consensus: Beats EPS and revenue estimates Q3 2024 FY24 guidance: Lowered due to continued challenges in China • Net sales: decline as much as 3% vs the prior forecast for a range of down 1% to up 1% o OSG: decrease between 1-2% • Adjusted diluted net earnings per common share: expected to decrease between 36% and 33% on a constant currency basis 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀/ 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢𝘀 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #cpg #fmcg L'Oréal Coty Beiersdorf Unilever Procter & Gamble E.L.F. BEAUTY Nestlé https://lnkd.in/dNTUMwqZ

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Another release from RetailX is covering the Luxury sector "2024 Global Luxury Report" that provides a comprehensive overview of the luxury goods market, showing a significant recovery and growth across various segments. Here are the crucial findings and projections from the report: 1. Market Growth and Regional Analysis:   - The global luxury goods market reached $354.81 billion in 2023, an increase from $312.63 billion in 2022.   - Asia leads in revenue generation with $135.2 billion, with significant contributions from Europe and the US. 2. Consumer Spending and Demographics:   - Luxury fashion remains the dominant segment, accounting for a third of the total expenditure.   - Millennials and Gen Z are prominent consumers, showing increased participation in luxury spending.   - Significant geographic variances in spending per consumer, with the highest spending in the US and Europe. 3. E-commerce vs. Physical Stores:   - Despite the growth of e-commerce, physical stores continue to be the preferred shopping channel, accounting for the majority of luxury purchases.   - Mobile shopping is particularly prevalent in Asia, indicating a trend towards digital platforms. 4. Sustainability and Ethical Consumption:   - Consumers are increasingly leaning towards sustainable and ethical luxury products, with nearly half expressing a preference for sustainable luxury clothing.   - The second-hand luxury market is also expanding, reflecting a shift towards more conscious consumption patterns. 5. Technological Innovations and Future Trends:   - The luxury sector is embracing digital innovations, including the use of social media, virtual reality, and the metaverse to engage consumers.   - Future trends indicate a continued increase in online shopping, with innovations in social commerce and live shopping experiences expected to gain traction. 6. Challenges and Opportunities:   - The luxury market faces challenges from economic fluctuations and changing consumer preferences.   - Opportunities for growth exist in tapping into emerging markets and enhancing digital engagement strategies. It underscores a dynamic industry that is adapting to technological advances and shifting consumer values, particularly towards sustainability and ethical practices. The luxury sector remains robust, driven by younger demographics and innovative marketing strategies. #trend #luxury #strategy #sustainability

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"Children using makeup and skincare, does it sound inappropriate to you? Then what you are about to read might be disappointing. Brands like SEPHORA report a rise in young customers aged 9 to 12, exploring everything from lip balms to skincare serums. In fact, retailers report more young customers buying fragrance, skincare, and beauty products at premium price points. This reflects broader societal changes. Changes like - acceptance of self-expression among younger demographics, - rising influence of #SocialMedia influencers and their elders' beauty routine. This #Trend raises important questions. Is it right to expose #Children to beauty products at such a young age? Should the industry create products specifically designed for children’s sensitive skin? On one hand, beauty routines can be a form of self-expression and confidence-building. On the other, introducing makeup and skincare to children at a young age can negatively impact their mental health by imposing adult beauty standards on them. Additionally, children's skin is more sensitive and not suited for these products, which can lead to issues like acne and other skin problems. As a parent and beauty industry professional, I believe in striking a balance. Encouraging self-expression is wonderful, but it should be paired with messages about inner beauty and self-worth. Basic skincare products like gentle moisturisers and cleansers designed specifically for teens are ideal. Also, it becomes our duty as adults to ensure safety and guidance while addressing their interest in personal care. Furthermore, hormonal changes during adolescence can lead to various skin issues such as acne and sensitivity. This leads to many teenagers resorting to using makeup items like foundation and concealer to hide their skin problems. Instead of masking these problems with makeup, it's crucial to consult a dermatologist for proper treatment and guidance. This approach not only promotes healthier skin but also encourages a positive and realistic attitude towards skincare. I’d love to hear your thoughts. Is it appropriate for young children to engage with beauty products? What are the potential benefits and drawbacks? Let’s discuss! Here is the link to the article published on Forbes: https://lnkd.in/daz5gJjs #BeautyIndustry #SkincareForKids #Parenting #BeautyAndLifestyle #Makeup #Retail

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Calling all LinkedIn experts! 📣 Let's talk about textured hair consumers in market research. 📊 Are major research firms overlooking this crucial demographic? Is this lack of representation affecting your business or leaving you feeling unseen as a consumer? 🤔 Share your insights and experiences below! 👇🏽 Let's spark a conversation and drive change in the industry. #marketresearch #representationmatters #diversityandinclusion #texturedhair #Linkedinbeauty #Beautystandards #haircare #cosmetics #beautybrands

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"Beauty will remain profoundly human." At the The Consumer Goods Forum Global Summit earlier this June, Nicolas Hieronimus, CEO of L'Oréal, shared a core belief that resonates deeply: Despite the transformative power of technology, the fundamental human experience of beauty will endure. Earlier this year, Innosight recognized L'Oréal as one of five “Consumer Transformation Leaders” – companies that are turning industry disruptions into opportunities. L'Oréal is deep into its transformation to a “beauty tech” company – moving from traditional cosmetics manufacturing to integrating advanced technology within its products and services. This shift has spurred continuous innovation, fostered new partnerships, and expanded their global consumer connections. Importantly, L'Oréal is committed to building a robust data infrastructure, operating model, and tools to make more agile, data-informed decisions, and fostering a culture of innovation. Nicolas made it clear that while L'Oréal is building new capabilities around data and technology to drive greater personalization, performance, and inclusivity, their success ultimately relies on keeping the consumer at the heart of their strategy – not just meeting but anticipating consumer needs by merging technology with human imagination, creativity, and innovation. He emphasized that the future of beauty, though powered by technology, will be deeply shaped by our humanity. This serves as a powerful reminder for all leaders: While the transformative power of technology, like AI, can revolutionize how organizations operate and innovate, the true value lies in staying attuned to the human element. Reflect on your strategies – are they truly centered on human needs? Are you merely applying technology, or are you using it to enrich and transform the human experience? Let's draw inspiration from L'Oréal’s journey. How can we more effectively use technology to serve and amplify human values, capabilities, and well-being? #CGFsummit Brian Hindo Claudia Pardo

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WHAT'S THE SECRET SAUCE BEHIND MIU MIU'S APAC SUCCESS? Jing Daily by Bethanie Ryder Despite luxury fashion competition mounting, Miu Miu is repeatedly coming out on top among consumers, particularly in Asia. What’s propelling the brand? Miu Miu is on a roll. The Prada Group-owned, youthful sister brand has been enjoying peak popularity recently – a winning streak that’s set to continue into the second quarter of 2024. Last week, the label reclaimed its title as “the hottest brand in the world” according to Lyst’s Q1 Index, an accolade it has now achieved several times. In China, the brand also climbed up Weibo’s Hot Search List. On Xiaohongshu, Miu Miu has amassed over 400,000 instances of user-generated content (UGC), while the hashtag Miu Miu Girls Camp, where users share their Miu Miu outfits, has over 100 million views. It isn’t just cultural clout that Miu Miu is earning – profit is skyrocketing, too. Miu Miu reported stellar growth for the first quarter of 2024, with revenues up by 89 percent year on year, versus revenue growth of 58 percent in 2023. The brand now makes up over a quarter of Prada Group’s revenue. The buzzy label has also hit a sweet spot in APAC. Prada Group cited Miu Miu’s strong growth trajectory across China, Japan, and South Korea as key drivers behind the group’s profits. In 2023, sales in Asia-Pacific rose 24 percent YoY. What’s the secret sauce behind Miu Miu’s Asia success? learn more: https://lnkd.in/g8nwuYMB #metaverse #fashion #ai #weeb3 #investment

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