In the end, Rihanna’s 91 million Instagram followers weren’t the same for 167 years of Louis Vuitton history. Launched with success less than two years ago, the partnership between singer Robyn Rihanna Fenty and LVMH Moet Hennessy Louis Vuitton SE was ready to shake up the fashion industry. His promise was to put a celebrity influencer, rather than a designer, at the heart of what he was offering and to appeal directly to savvy social media buyers. But last week the pop star and the world’s largest luxury group said they were halting the clothing campaign.
The two will continue to work together on Fenty’s cosmetics and skin care business, and L Catterton, the private equity fund backed by LVMH founder Bernard Arnault, has also invested in Savage X Fenty, Rihanna’s clothing line. Still, stopping Fenty’s fashion activity is a lesson for all luxury groups: Staying in power affects social media.
The reasons for the suspension of Fenty’s ready-made business are clear. The pandemic demand included demand for clothing and especially for the beautiful offerings from Fenty. Denim corset skirts that cost $ 360 are not just for sale as well as pajamas and nightwear. There were also practical difficulties with Fenty’s strategy of creating multiple collections amid travel restrictions, with LVMH based in Paris and Rihanna in the US
But perhaps the biggest hurdle for Fenty is the pandemic rush to the biggest brands, such as Hermes International and Louis Vuitton at LVMH and Christian Dior, rather than newer options. People bought fewer luxury products overall last year, but when they did, they were spraying on famous labels that were steeped in history. In both the U.S. and China, wealthy buyers who had saved money during a lockout opted to shower out a Birkin bag or Rolex watch rather than a more experimental purchase. Handbags were particularly popular, but they were not yet a major focus for Fenty.
The trend in consumer spending is not only affecting new fashion houses. Other luxury organizations that were in decline before the pandemic, such as Prada SpA, Burberry Group Plc and Salvatore Ferragamo SpA, are also finding life more difficult. They have failed to divert customers away from brands like Louis Vuitton that are capable of more marketing. But those companies just can’t stop working like Fenty.
Both Prada and Burberry are working hard on the version. Italian housemaker Raf Simons was appointed co-creative director last year to work with lead designer Miuccia Prada. Along with this creative renaissance, it is promoting its online activity. At the same time the British group is producing more handbags and reducing their sales. Both are seeing promising early signs. Prada’s sales in December fell back to 2019 levels, while Burberry’s full-price sales improved.
Things are not going so well at Ferragamo. The family-owned company is seeking a board shake-up, including an increase in the number of independent directors. This could sell the way for one of the larger organizations. Conglomerates LVMH and owner Gucci Kering SA have led the luxury package, while Cartier owner Cie Financiere Richemont SA has also received a request for its jewelry, but even these organizations are not on the same footing.
On Wednesday, Gucci sales fell 10% worse than expected in the last quarter of 2020. Kering hopes the brand’s turbocharge with a market rally of around 100 years this year. Maybe he needs to think more radically about his star player, maybe even black out Gucci’s “granny chic” special beauty for something newer.
All brands, however, will see some improvement this year as more people get the vaccine and go out again. In fact, one other option for LVMH would have been to continue the Fenty fashion business in anticipation of overcoming it. With economies reopening, young people will desperately want to go back – and need the outerwear to do so. With a market capitalization of 270 billion euros ($ 325 billion), it was easy to make a few more collections and ramp up digital marketing.
The company took pains to mark that the label had only been stopped, and not launched. He could still bring it back in better times. Rather than making it a fully-fledged fashion line, however, it should focus on creating one-time collections, like other well-known collaborations. Rihanna-approved party dresses will come in handy if a prediction of a 2020 roar for fashion proves correct.
In the current circumstances, Fenty does not wear the fashion industry. But it may work better in the luxury future after a pandemic.
(This comment column was written by Andrea Felsted)
This story was published from a wire group group with no text changes.