LV Launches Beauty Products; Adidas Sees Seven Consecutive Years of Growth in China; Chanel Opens Its First Store in a Prefecture-Level City | Brand Weekly Report
Just in Time: Louis Vuitton Finally Enters the Beauty Market
Louis Vuitton, the largest luxury brand under LVMH, has become the last top - tier luxury brand to enter the beauty sector.
On March 5th, Louis Vuitton's official Weibo account posted a blog stating that the brand is "opening a new chapter in beauty." It announced that Sir Pat McGrath, a British makeup master, has been invited to serve as the creative director of the beauty line, and the La Beauté Louis Vuitton beauty collection will be launched. This collection is set to hit the market in the fall of 2025. The first batch of products includes 55 lipsticks, 10 lip glosses, and 8 eyeshadow palettes.
Different from most fashion brands that outsource their perfume and beauty businesses, Louis Vuitton has chosen to sell its own beauty products this time, relying on the powerful beauty department of its parent company, LVMH. There are a total of 16 brands under LVMH's "Perfumes & Cosmetics" division, and the luxury retail division already has high - end beauty channels like Sephora, which can provide shelf exposure for the beauty businesses of its brands. This is an advantage that other luxury fashion groups do not have.
Analysts believe that LVMH's poor financial report last year might be the main reason for Louis Vuitton to tap into the beauty cash - flow. Last year, the natural revenue of LVMH's fashion and leather goods division dropped by 5% in the last quarter, while analysts had expected a slight increase. This was the worst single - quarter performance since the second quarter of 2020. The group's overall sales declined by 3%.
The slow growth or even shrinkage of the leather goods department may continue. UBS analysts said that the growth of LVMH's key businesses will stabilize after normalization. Currently, the uncertain environment in the luxury industry is mainly characterized by a slowdown in the demand for high - end products.
In contrast, the total revenue of LVMH's beauty and perfume division reached 8.418 billion euros, a year - on - year increase of 2%. Together with the luxury retail division, they are the only two divisions in the group with year - on - year revenue growth. The financial report shows that in 2024, LVMH's total revenue was 84.68 billion euros, a year - on - year decrease of 1.7%, and the net profit was 2.55 billion euros, a year - on - year decrease of 17%.
Nike Expands into the Fashion and Casual Market: Collaborating with Kim Kardashian and Quietly Launching a Capsule Collection
The trend of Sportswear (comfortable sports) shows no sign of stopping, making Nike, which has always been proud of its sports genes, take action. Last week, Nike announced a collaboration with SKIMS, the personal brand of American reality TV star Kim Kardashian. Although no products have been released yet, it has already caused a stir in the industry.
Image source: Nike official website
SKIMS is a brand that has successfully integrated personal style with brand DNA in recent years. After the rise of the sports - style trend, SKIMS has intentionally promoted its comfortable fabrics and cuts, attracting a large number of Generation Z consumers on social media. Nike, which is in a crucial transformation period after a leadership change, intends to collaborate with high - profile brand ambassadors to create a "stunning" advertising effect. Therefore, the choice to collaborate with Kim Kardashian is unexpected yet reasonable.
On the other hand, Nike quietly launched a capsule collection in January to test the market, inviting Zheng Qinwen, a brand ambassador, to endorse it. Named 24.7, this collection is more suitable for daily wear compared to the main brand's sports style. It emphasizes comfortable fabrics and loose cuts, with a neutral style. The collection includes long - sleeve sports jackets, casual sports pants, and slippers, and most of the products are priced around 1,000 yuan. Currently, they are available on the official website and some direct - operated stores in China.
New Product Launches
Uniqlo Launches the New Season C Collection
Recently, Uniqlo officially launched the new season C Collection, which is the second collection and the first spring - summer collection brought by Clare Waight Keller since she became Uniqlo's creative director.
While continuing the elegant tone, the design of this season adds the keyword "sports." Especially in terms of materials, the use of nylon has become a major highlight. Nylon, one of the earliest synthetic fibers invented, was introduced in 1938, a few years earlier than polyester. Compared with cotton and wool, nylon has excellent elasticity and tear resistance, and thus quickly became the standard fabric for sportswear.
This season, Uniqlo continues to launch accessories. There are new styles of shoes, including men's and women's sandals. In addition, the drawstring cloud - shaped bag, which sold well in previous seasons, now has a version with a thicker lining, available in four colors: black, dark khaki, dark orange - red, and military green.
Image source: Uniqlo official website
It is worth mentioning that Uniqlo's U Collection almost simultaneously released a lookbook, which disproves the long - circulated rumor that Christophe Lemaire is leaving Uniqlo. However, some consumers said that the U Collection and the C Collection are showing similar style trends. How Uniqlo differentiates the target audiences of these two ace collections will be the key.
Starbucks Launches the "Jasmine 100" Collection
Starbucks' new products are becoming less and less like traditional Starbucks offerings.
On March 4th, Starbucks launched the "Jasmine 100" collection, a new product line full of spring - summer vibes. It belongs to the brand's True Flavor Sugar - Free Drinks series and is the second product line after the first - wave sugar - free Rose 20 series. The prices of the "Jasmine 100 Latte" for the medium, large, and extra - large sizes are 36, 39, and 42 yuan respectively, and the prices of the "Jasmine 100 Americano" for the same sizes are 33, 36, and 39 yuan respectively.
Image source: Starbucks
On the other hand, rumors about the potential sale of Starbucks China continue. According to Reuters, potential buyers for Starbucks China are emerging. In addition to China Resources Holdings, which was previously rumored, the list now also includes KKR, Fosun Capital, PAG, and Meituan.
Marketing News
Crocs Collaborates with Haribo, the Gummy Bear Brand
The way of playing with Crocs shoes has been updated. Recently, the American clog brand Crocs collaborated with the German candy brand Haribo. Haribo's iconic gummy bears have become part of the shoe accessories, with the imprint details and gradient colors of gummy bears restored around the mid - sole. It is reported that the Haribo x Crocs Classic Clog is scheduled to be released in March 2025.
Image source: Crocs
Haribo holds fond childhood memories for many Generation Z and Millennials. This collaboration is naturally part of Crocs' strategy to catch the retro trend. In the past two years, along with its strong sales in China, Crocs has frequently launched collaborative products with classic IPs, including McDonald's, Pixar's Monsters, Inc., LOOPY, and Star Wars.
What’s More
Adidas Records Seven Consecutive Quarters of Growth in Greater China
Adidas' recovery continues, and its performance in the Chinese market keeps improving. On March 5th, Adidas released its financial report for the fourth quarter and the whole year of 2024. In 2024, Adidas' global revenue was 23.683 billion euros, a 12% increase year - on - year at constant exchange rates (the same below). While achieving "quality growth" for seven consecutive quarters in Greater China, the annual revenue in this region returned to double - digit growth. Adidas' global CEO, Bjørn Gulden, also talked about competition and marketing style during the earnings call. Besides mentioning that the "biggest competitor" is struggling, he believes that "those new running brands will still perform well, but they are not a threat to Adidas."
Chanel May Open Its First Store in a Prefecture - Level City in Wuxi
The penetration of luxury brands in China continues. According to Wuxi Daily, Chanel has held talks with Hang Lung about opening a store and is expected to open its first store in a prefecture - level city in Wuxi. As one of the few luxury groups performing well, this move by Chanel may signal the trend of doing luxury business in China: going deeper into the market.
Miu Miu Enters the Billion - Euro Club
No one would have thought three years ago that Miu Miu would be the first brand in the "second - tier" of luxury groups to reach 1 billion euros in sales. The PRADA Group recently announced its financial results for the 2024 fiscal year. The group's total sales increased by 15% year - on - year to 5.43 billion euros, achieving double - digit growth for the fourth consecutive year. The revenue of Miu Miu, which has successfully transformed, reached 1.23 billion euros, a 93% increase.
On Holding Doubles Its Revenue in the Asia - Pacific Region in the Fourth Quarter
The momentum of On Holding, the Swiss running shoe startup, continues. Recently, it announced its financial results for the fourth quarter and the whole year of the 2024 fiscal year. The annual sales increased by 33.2% at constant exchange rates to 2.318 billion Swiss francs. By region, the Asia - Pacific region had the largest growth, rising 124.6% to 74.1 million Swiss francs. The group's annual net profit soared by 204.5% to 242 million Swiss francs, exceeding its own expectations in all key indicators.
Arc'teryx Veilance Launches the Spring - Summer 2025 Collection
Arc'teryx continues to focus on the daily commuting market. Its casual line, Veilance, has launched the spring - summer 2025 collection, including patch - pocket shirt jackets, women's shirts, and other daily items. The financial report of Amer Sports, Arc'teryx's parent company, shows good performance. In the 2024 fiscal year, the annual revenue reached 5.183 billion US dollars, a year - on - year increase of 18%. The gross profit margin in the fourth quarter increased to 56.1%.
(Reference sources: POPBEE, LADYMAX, NOWRE, HYPEBEAST, etc.)