It’s not just luxury that’s been slowing in the past year. New Bain & Company research reveals that global consumer product sales growth slowed to 7.5% last year, down from 9.3% in 2023 and 9.8% in 2022, “as price hikes lost momentum and volume growth stagnated”.
Photo: Pixabay/Public domain
‘Consumer goods’ takes in a huge range of everyday products and includes things like clothing and beauty. And we’re told that in developed markets, “growth fell even further to 4.5%, with consumer confidence still fragile — 80% of European and US consumers are cutting spending”. That was perhaps unsurprising as prices in the US and the European Union in late 2024 were more than 20% higher than in the first quarter of 2020. Volume growth was therefore driven by emerging markets (up 11%).
Bain also said that big brands were struggling and while “insurgent brands” captured up to 40% of US market growth, for instance, the 50 largest CPGs grew just 1.2% in early 2024.
The company believes that AI and digital transformation are key to changing this and “despite 90% of CPG executives recognising AI’s importance, only 37% prioritise it, and a mere 6% have a clear AI strategy”.
Richard Webster, head of its global Consumer Products practice, said: “As inflation recedes, it’s clear that the old, large-scale CPG growth model is not fully fit for the new normal that’s emerging. The industry is at a turning point and the traditional reliance on price-driven growth is no longer enough to sustain long-term growth. For those CPGs ready to embrace the opportunity, this is the time to sharpen their agendas and make strategic choices that will enable them to thrive in the generative AI era.”
Bain believes AI can help businesses maximise “current profit pools through superior execution and making bold portfolio moves that expand categories or open up new profit pools”.
It can also help to simplify portfolios and operations “to generate growth and find a distinctive focus for tomorrow’s business”.
Under the creative direction of Alessandro Michele, Valentino is rekindling old-world romance this Valentine’s Day with a poetic tribute to love. The Italian fashion house has partnered with Dream Baby Press, a literary organization co-founded in 2022 by artist, poet, and filmmaker Matt Starr, known for orchestrating literary happenings in unexpected spaces. To mark the occasion, Valentino has curated six contemporary texts—ranging from playful musings to passionate love letters—offered to its clientele as an elegant nod to literary romance.
Valentino is reviving the art of love letters this Valentine’s Day – Valentino.com
From February 12 to 14, clients visiting select Valentino boutiques—including addresses on Avenue Montaigne in Paris, Sloane Street in London, Via Santo Spirito in Milan, Piazza di Spagna in Rome, and Madison Avenue in New York—will have the opportunity to select one of these texts, which will then be hand-calligraphed on-site and sent to their loved one.
The featured authors include Matt Starr, Anglo-American actress and artist Jemima Kirke, writer and musician Brontez Purnell, American author Mackenzie Thomas, known for publishing her teenage diaries, Coco Mellors, the British-born, California-based novelist behind the acclaimed Cleopatra and Frankenstein, and Jerry Stahl, the celebrated American author.
This initiative marks Valentino’s first collaboration with Matt Starr, with more literary-inspired projects set to follow in the coming months.
French luxury group Kering has been hampered by Gucci’s underperformance in 2024, and is pinning its hopes on its flagship label’s turnaround to steady its course this year. According to Kering’s top executives, in the past two years Gucci has undergone a drastic efficiency therapy, and has consolidated its fundamentals by putting its rich heritage centre-stage, for example launching revamped versions of some of its signature handbag models, like the Blondie, Jackie and Bamboo. The arrival of a new creative director is expected to inject the directional vibe and desirability that Gucci is currently lacking.
The Blondie handbag, designed in 1971 and now revamped by Gucci – Kering
Gucci accounts for almost half of the Kering group’s revenue, and two-thirds of its operating income. However, its sales have been plummeting of late, slumping further throughout 2024. The Italian luxury label ended the year with a 23% revenue shortfall (and a 21% one on a comparable basis), down to €7.65 billion.
Gucci has recently been working on the quality of its articles, and on different product lines with complementary strategies. For example, it introduced entry-level products to attract a more extensive clientèle and capture new customers, while still focusing on its more upmarket collections. “There is no question of abandoning the aspirational customer segment. It’s one of the key segments for our positioning. We intend to remain very relevant, very strong in this segment, while adding a more upmarket niche in what we call our brands’ elevation strategy,” said Kering CEO François-Henri Pinault.
On February 6, Gucci dismissed Sabato De Sarno, who was in charge of style for just three seasons. De Sarno had succeeded the iconic Alessandro Michele, and was presented at the time as the embodiment of a new chapter for Gucci, associated with a repositioning towards the highest end of the market and a more minimalist aesthetic, more in tune with the Florentine label’s heritage. “Alessandro’s style was downright maximalist, while Sabato De Sarno’s aesthetic approach was less extravagant, less maximalist, but it allowed us to do exactly what we wanted,” said Francesca Bellettini, Kering’s deputy CEO in charge of brand development.
During the conference with analysts held after the publication of Kering’s annual results, Bellettini explained how Gucci cemented its position during this period by drawing on its fundamentals, notably leather accessories – like its iconic handbags and classic moccasins model, which have been re-introduced in new versions – whose performances in the fourth quarter were “very encouraging.” In a way, Gucci’s post-Alessandro Michele relaunch does require a first phase in which the slate is wiped clean, reconnecting the label’s style with its historical identity, before triggering a second phase underpinned by the appeal of a more directional aesthetic.
Gucci’s 2024 results – Kering
In other words, upending everything with the arrival of a new creative director isn’t on the cards. Bellettini made it crystal clear: “We are not entering a new transition phase, we won’t slow down the label’s turnaround. We’re moving forward according to plan.” Bellettini denied that hiring De Sarno was a mistake, saying that the last 18 months allowed Gucci to reconnect with its history and traditions, elements that “have never been so strong,” as she put it. “We have focused on the brand’s heritage and tried to elevate our products, to make them consistent with Gucci’s heritage, while adapting them to the present times. There is no doubt that the basis on which we’re now operating is much more solid than it was 18 months or two years ago,” said Bellettini.
But this is only one of the label’s twin facets. The other being creativity. This new phase in Gucci’s relaunch is “the perfect time to inject creativity, directionality and desirability, elements that Gucci needs to recreate the unique dichotomy that characterises the brand, in which tradition and fashion must always go hand in hand,” said Bellettini, adding how “over the past 18 months, we have focused a little more on tradition by improving product quality. It’s the ideal foundation to now introduce creativity and fashion, while continuing to preserve what has been done in recent months.”
This foundation rebuilding phase has also been accompanied by an in-depth managerial reorganisation at group level, noted Pinault. “In this first phase, my priority for the group has been to develop its labels using a self-contained approach, putting in place for each of them the right managing director and the right creative director, while building the right distribution network. We have now started to expand the brand’s customer base, which requires a much more nuanced approach, with a greater emphasis on retail expertise, etc.”
Stefano Cantino has therefore been promoted to the role of Gucci CEO, assuming his post at the start of 2025. The name of Gucci’s new creative director remains unknown, but ought to be revealed soon. As Bernstein analyst Luca Solca cheekily suggested, it might be Hedi Slimane, “who is renowned for his pared-down designs, much like Tom Ford was when he worked at Gucci, and was so successful at the turn of the century.” Indeed, Slimane’s name is the most frequently mentioned in conjunction with Gucci’s job. But, with Kering’s back against the wall in terms of its flagship label’s appeal, for the group as a whole Gucci’s relaunch will have to work out just right.
Last, but very not least, Tuesday witnessed the final action in the six-day New York Fashion Week. And the best so far, with powerful displays by three key American designers – Thom Browne, Michael Kors and Norma Kamali.
Thom Browne: Ornithology
“The key to American fashion is mixing the classic with the conceptual,” insisted Browne, who mashed up Japanese culture, New England style, his fetish little gray suit, and bird watching, in a bold and frequently beautiful show.
Presented in the Griffin Theater on the top floor of The Shed, a giant show space in Hudson Yards, the scene was set by hundreds of artfully folded origami paper birds, a flock swarming around a classic work desk on which a single white budgie perched in a white cage.
Scores of robins, crows, magpies or hawks flew across the collection, delicately embroidered over a great collection of classic country-house fabrics. All the worsted tweeds, windowpane checks and Prince of Wales checks – often used in patchworks – were developed especially for the collection by British and Irish mills. Classic materials also enhanced with graphic lines of strass, crystals medallions.
Browne’s love of Japan was apparent throughout: narrow floor-hugging skirts with kimono-shaped jackets, albeit with buttons. The girls and guys wearing maiko hair styles with kanzashi-type ornaments. In some remarkable makeup – light feathers seemingly sprouted out of many women’s eyelashes. Other cast members had blackened eyebrows, in a visual pun on this past weekend’s Super Bowl.
Occasionally, Thom would coat coats in wax, making them looked like worn leather in Imperial Roman Purple or Rothko yellows. Though his coolest invention were bias-cut cocktails made in slanting lines of classic preppy ties, worsted wool and satin. Call it the ‘Preptail’.
Post-show, the designer revealed that he had been inspired by a recent documentary on bird watching, and his cast were shod for that hobby – in giant waders or LL Bean-style duck boots, though in Thom’s fetish cadet gray. The same hue provided the base for a ginormous wedding dress worn by Alek Wek. Acres of folds, topped by a glittering kimono style jacket – just like the one that opened the show.
Browne’s shows can at times become faintly academic displays of fashion historicism. But not this season, where Thom broke through lots of barriers, creating what is probably his most astute, elegant and unexpected collection in an already unique career.
It felt a fitting finale to the season by Browne, who also happens to be president of the Council of Fashion Designers of America, which governs the runway calendar in New York. Clearly in excellent form, Thom celebrated this final moment by presenting his front row husband, master fashion curator Andrew Bolton, with a bouquet of flowers.
Michael Kors: Degagé in Chelsea
Michael Kors has had enough with cell phones and hyperactivity, and his latest collection certainly showed that.
Cut far more forgivingly, with a good deal of slouch and lots of pockets, his new wardrobe for next fall was the most relaxed and insouciant in New York.
“The world is very crazy. Every 10 minutes we have a news alert. It’s too much. We spend too much time on our phones, and I wanted to bring people a sense of calm but still something that makes them feel confident, feels luxurious when they touch it, something special that stands the test of time,” explained Kors, in a pre-show preview in his 42nd Street headquarters.
Michael sent out blazers so wide they moved sensuously; black leather trench coats were softened and made with huge folds; many gals wore boyfriend jackets that looked two sizes too large. Skirts were ever so pleated and hung asymmetrically; trenches were hyper fluid; and jackets were forgiving as cardigans.
“America is the place where comfort became king. But the French have the best word for it, ‘degage’,” he said, pointing to a mood board that included to timeless icons like Uma Thurman and Lauren Hutton.
The setting was super concise – a clean extended runway modernism with hints of Noguchi or George Nakashima, whose furniture Michael collects. And whose determination not to waste material was the inspiration for a great new bag, made of a single piece of leather without seams. Though, Michael did also finish his Manhattan bags in faux horsehair to add plenty of dash.
Above all, the collection felt like a very deliberate counterblast to excess. And to Kanye West and his wife Bianca Censori, who wore a completely sheer dress with no underwear to the recent Grammy Awards.
“I am not going to mention names, but that was ridiculous. Sexy is about movement,” sniffed Kors.
Norma Kamali: Back with a bang
Norma Kamali is back, and how. Following a crash course in AI she took at MIT, the veteran’s latest designs have a new elan, seen in an excellent collection unveiled on Tuesday morning.
Norma Kamali fall/winter 2025 collection in New York City – FashionNetwork.com
Kamali staged her first presentation in many years in the West Village, the neighborhood she calls her home. The new selection for fall 2025 revisited Norma’s classics – like the famed sleeping bag coat or her second skin leather looks. But took them somewhere new. The former appearing in some great new autumnal prints of silver birch and fallen leaves, where AI will help guarantee that copying would be prevented.
While her vegan leather ideas were the hippest in New York. Second skin shirts; figure-hugging rocker coats; thicker flared dresses; a series of chauffeur jackets or even cheongsams. Shown on stockman, many wearing fedoras, trilbys and bowlers.
Norma’s sense of futurism was also apparent in some clever jumpsuits – that recalled her famed early parachutes – and great padded gingham intergalactic traveler parkas, which like everything in the collection can be machine washed.
Business is now brisk with vendors like Revolve and MyTheresa boasting high sales.
Not bad going for an 79-year-old lady who still owns all her own brand, 56 years after founding it. Hats off to Norma.