Nicola Sabatelli’s Post

Discovering LVMH's status as a multinational conglomerate left me in awe of the intricate systems required to oversee its 60 subsidiaries, managing a remarkable 75 luxury brands. Such a sophisticated operation is made possible by the visionary leadership of Bernard Arnault.  Born into a construction family, Arnault's entrepreneurial instincts led him to pivot their focus towards real estate post-graduation in 1971. In 1984, Arnault, along with Antoine Bernheim, raised $80 million to acquire Boussac Saint-Frères, a bankrupt textile company holding the prestigious fashion house of Christian Dior. This strategic move marked Arnault's entry into the luxury goods industry. Three years later, in 1987, Arnault was invited to invest in LVMH. Under his leadership, LVMH grew exponentially, becoming the largest luxury goods group. Arnault's journey highlights his ability to identify opportunities for strategic growth and his skill in transforming struggling businesses into thriving enterprises, solidifying his reputation as a visionary leader in the luxury industry. From Dior’s corporate rejuvenation and profitability, to LVMH domination as the largest luxury goods group in the world. There are lessons to be learned from the richest man in the world; Effective Corporate Governance: At the core of Bernard Arnault's leadership lies an unwavering commitment to robust governance structures. A strong corporate governance structure not only enhances a company's credibility and reputation but also lays the foundation for sustainable growth.. By implementing strong corporate governance practices, entrepreneurs can create an environment conducive to long-term success, financial stability, and sustained growth. Strategic Collaborations: Arnault's focus on nurturing collaborations as seen in his collaboration with Antoine Bernheim  highlights the need for comprehensive collaboration agreements, and non-disclosure agreements to safeguard proprietary information and maintain fruitful relationships. Strategic Acquisitions & Maintaining Brand Autonomy: An acquisition occurs when one company purchases another company, and the acquired company becomes a part of the acquiring company.  LVMH has built its conglomerate by clear strategic acquisitions, however in its constant acquisitions, it constantly maintains the brand autonomy and originality of each brand. For fashion entrepreneurs, the lesson is clear: whether aiming to acquire or be acquired, preserving originality is paramount, originality which has to be protected through intellectual property protection. Achieving this requires meticulous intentionality and strategic planning across all facets of the business. By integrating these lessons into their business strategies, fashion entrepreneurs can build thriving enterprises.

Who isn’t familiar with the iconic red soles of Christian Louboutin? The brand is synonymous with luxury but what’s fascinating is how they’ve managed to keep their independence despite the entry of new shareholders. It’s not easy for a brand to stay true to its vision while navigating ownership changes but Louboutin has done it beautifully. When they sold a 24% stake to Exor, they didn’t just hand over control. Instead, they partnered with someone who understood their long-term goals. Exor helped them set up a solid governance structure without losing the brand’s unique spirit. For me, this is a perfect example of how businesses can grow and evolve without losing what makes them special. It’s all about finding the right partners who share your vision and staying true to your brand’s DNA—just like Louboutin did. #BusinessStrategy #BrandIndependence #LuxuryBrands #ChristianLouboutin

FOR STRUGGLING PUBLIC COMPANIES, GOING PRIVATE IS NO PANACEA The Business of Fashion: Nordstrom, TOD'S and L’OCCITANE Group are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors. On Sunday, Puig filed to go public in Spain, betting that an infusion of capital and the “checks and balances” of a listed company structure will unlock the next phase of growth at the fragrance and cosmetics giant. In fashion, many brands and retailers are coming to the opposite conclusion. This week also saw Macy's end its proxy fight with a pair of activist investors, appointing two of their slate of nominees to the department store operator’s board. The new directors will sit on a committee to evaluate the activists’ $6.6 billion takeover bid. Macy’s wasn’t the only company contemplating going private. Austrian billionaire Reinold Geiger is reportedly lining up potential lenders and investors, including the private equity giant Blackstone, to acquire L’Occitane (Geiger is already the beauty conglomerate’s controlling shareholder). There’s more: The Nordstrom family is reportedly mulling taking its namesake department store chain private. Italian shoemaker Tod’s is planning to delist from the Italian stock exchange, eliciting the help of L Catterton, LVMH’s investment arm, which agreed to buy 36 percent of Tod’s shares in February. Struggling direct-to-consumer brands like Allbirds, which recently received a notice from Nasdaq that it would be delisted if it can’t raise its share price, are among other potential takeover targets. The circumstances are different at each of these companies. But the motivation for going private is often the same: a belief that it will be easier to turn around a struggling business away from the scrutiny of the public market. Tod’s owners said in a statement in February that going private would grant the company “greater management and organisational flexibility, with faster decision-making and execution times.” There’s some truth to that. Turning around a fashion business requires commitment, patience and finesse, qualities that few investors possess. For a public company, a couple disappointing quarters can derail a meticulously planned five-year strategy. Family-controlled companies think in terms of generations, not quarters (at least until the heirs get antsy for a payday). Rather than cashing out when the going gets tough, these owners have the type of vested interest in the long-term success of their companies necessary for gruelling, high-risk turnarounds. learn more: https://lnkd.in/gajZSUAR #ai #fashion #metaverse #web3 #investment

Bernard Arnault became wealthy by going all in on ONE BUSINESS, made SUBSTANTIAL wealth and then used that wealth to diversify to other businesses. Let me explain: His dad was upper middle class and owner of a then small Engineering company - Ferret-Savinel. Arnault graduated from the best Engineering school in France in 1971 & immediately and started for his Dad's company which was doing 'ok'. The problem was the company had 2 divisions (Industrial construction & Real Estate) After 3 years of working for the dad, he convinced daddy to sell the division of industrial construction to Quillery and use the money to enter fully into the business of the real estate (FOCUS). Following that sale, Ferret-Savinel changed its name, becoming Ferinel, and, focused on the real estate market, began increasing its portfolio. He put his all in to that ONE business working from 1971 till 1984 (13 years) and grew it from struggling into a billion dollar enterprise. Now he is wealthy & can diversify. While all of this was going on, a luxury company that owns Dior, Boussac Saint-Frères went bankrupt and the french govt was looking for someone to take over... he bought another luxury company and use it to win the win to take over Boussac. Boussac had 5 divisions: - Newspaper (L'Aurore) - Retail (Conforama) - Supermarket (Le Bon Marché) - Napkin factory (Peaudouce) - Textile factory - Weaving factory - Paper factory etc Guess the first thing Arnault did when he took over? He then sold nearly all of the company's assets, keeping only the Christian Dior (FOCUS) This focus took Boussac from being bankrupt to making $112 million profilt on a revenue stream of $1.9 billion in 3 years. (The vision was to build the biggest luxury brand in the world and so when the real estate business was distracting him from the luxury brand, he later sold the real estate business to CGE who renamed it to nexity) He achive his luxury brand dream, he invested $2.2 billion to acquire 43% of LVMH (Louis Vuitton/Moët Hennessy) by working with Alain Chevalier, CEO of Moët Hennessy, and Henry Racamier, president of Louis Vuitton. Kicked out Henry Racamier and took over. Today he runs the world’s largest luxury goods company, with over 75 brands under its umbrella. BTW, none of 75 brands was built from scratch. These are 75 brands built by others who focused on ONE thing and built it to be big enough to be acquired by Arnault. When you only have a couple of eggs, you should put it in the same basket and have that basket produce you more eggs so you can spread it around. Credit: Ifiok Nkem P.S: Where focus goes energy flows..... #focusonwhatmatters #sales #strategy #techenthusiast #ai

"Brand Luxury: #Founding, #Vision, and #Strategy" by Jean-Noël Kapferer and Vincent Bastien is a comprehensive work that delves deep into the strategies and philosophies behind #successful luxury #brands. https://lnkd.in/gG45qVZv

For the first quarter of 2024, the BeautyMatter Deal Index tracked 65 deals, a 16.1% increase in transactions from the first quarter of 2023. The Index also tracked seven brand failures, a combination of bankruptcies and brand shutdowns during the quarter, which was consistent with the quarterly failures tracked in the back half of 2023. After a unique shift away from growth investments and toward M&A activity seen in Q4 2023, deal activity in Q1 2024 returned to a more even split between growth investments and M&A, a good sign that investors continue to believe in the long-term fundamentals of the beauty and wellness industries. Story by John Cafarelli. #beautybusiness #beautyindustry #finance #trends #dealflow

Capri Holdings Limited a "commercial" #fashion venture that doesn't take off And the merger with Tapestry will take the situation to a very risky danger zone Merging two weak conglomerates into one hopefully giant of fashion might be a very bad idea. It's been said by different parties that this merge could help both sides to revamp the business but: - Tapestry latest Q3 results were not good. With a -1.8% in Q3 delivered in may the key issues were becoming more and more evident. - Capri Holding recently published Q1 results for fiscal year 2025 that highlighted a revenues fall of 13.2% on a reported basis and 12.1% in constant currency. - the intervention of the FTC into the case has raised more red flags Both conglomerates "tried" to imitate what happens in Europe without the skills and the proper knowledge to manage such a complex group of brands and they never succeeded in creating brand equity for the groups neither for the brands themselves It seems that this merger and acquisitions have flattened the spirit of the brands part of the venture and that they killed the special spirit of each of them focusing too much on the merchandising/commercial/sales/outlets approach instead of in creating and further developing the single brands spirits. From the name chosen for the groups: - "Tapestry" really? Owning Coach? Inspiring? - "Capri" that seems just a wannabe imitation of European fashionable spirit To the collections management and their commercialization through basic products and very little dream. Even Versace that has always been an outstanding (for the bad and for the good) brand has become the ghost of itself. Time for time out and to focus on serious, professional, precise Group Brand Portfolio strategy? What do you think?

🗞Manzanita Capital, the owner of Space NK, is reportedly preparing to put the premium beauty retailer up for sale. According to Sky News, the private investment firm has approached investment banks about initiating a process that could result in the retailer changing hands after 20 years under its ownership. Read more in the article below👇 #spacenk #manzanitacapital #retailnews

The Body Shop has secured a rescue deal with a consortium. Here’s what you need to know: 1. Rescue Deal: The Body Shop has reached an agreement with a consortium to help stabilize and grow the company. #RescueDeal 🤝🌿 2. Strategic Move: This deal aims to bring in new investments and strategic guidance to rejuvenate the brand. #StrategicMove 💡📈 3. Brand Revitalization: Expect a renewed focus on sustainable and ethical beauty products, which are core to The Body Shop's identity. #BrandRevitalization ♻️💄 4. Global Expansion: The consortium plans to support The Body Shop in expanding its global footprint and market presence. #GlobalExpansion 🌍🚀 5. Customer Experience: Enhancements in customer experience, both online and in-store, are on the horizon. #CustomerExperience 🛍️🌐 The Body Shop's new partnership is set to usher in a new era of growth and innovation. Stay tuned for exciting developments! 🌟🌿 #NewBeginnings BTW, if anyone reading this is trying to launch or grow their brand in fashion, beauty, or luxury - please check us out and inbox us. We're pretty cool, and we love to help build empires. Best! https://lnkd.in/eMsc6mMu

𝗗𝗲𝘀𝗽𝗶𝘁𝗲 𝗮 𝗵𝘂𝗴𝗲 𝘀𝘂𝗰𝗰𝗲𝘀𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗴𝗹𝗼𝗯𝗮𝗹 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 𝘄𝗶𝘁𝗵 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝟮𝟱𝟬𝟬 𝘀𝘁𝗼𝗿𝗲𝘀 𝗶𝗻 𝗼𝘃𝗲𝗿 𝟴𝟬 𝗰𝗼𝘂𝗻𝘁𝗿𝗶𝗲𝘀. 𝗧𝗵𝗲 𝗕𝗼𝗱𝘆 𝗦𝗵𝗼𝗽 𝗶𝘀 𝘀𝗵𝘂𝘁𝘁𝗶𝗻𝗴 𝗶𝘁𝘀 𝘀𝘁𝗼𝗿𝗲𝘀. 𝗕𝘂𝘁 𝘄𝗵𝘆? This all dates back to 1976 when a human rights activist, Anita Roddick started The Body Shop. With the sole aim of bringing natural and cruelty-free cosmetics products to the market. This UK-based firm experienced multiple acquisitions over the years, with ever-increasing valuations. Their products were even available to purchase online in more than 60 markets. However, considering this huge global presence both online and offline, it faced challenges in the years post-pandemic. With year-over-year declining sales due to high inflation in Western countries, questions arose about its long-term viability. In fact, in Nov 2023, a European asset management company purchased The Body Shop for millions of dollars. But couldn't address the challenges faced by the business. And they took this call to shut all of its North American stores. Now are targeting to downsize the Canadian stores as well. ** PS. Never knew my Favourite body mists-selling business would be facing this.