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Luxury fashion betting on designer reshuffles faces tricky road ahead

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March 20, 2025

A slump in luxury fashion is prompting designer reshuffles at top houses Gucci, Chanel and Dior to reignite heat around their brands – while avoiding too radical a reset that could confuse affluent shoppers.

Reuters

The stakes are high, as the 363 billion euro ($395.09 billion) global luxury goods market grapples with its lowest sales rates in years with after an economic slowdown in China and rising inflation elsewhere make high-end consumers more reluctant to splash out.

“Brands are under more pressure than ever to balance creativity with commercial viability, while also maintaining relevance in a constantly shifting market,” said Lydia King, group buying and merchandising director at upscale British department store Liberty.

Kering-owned Gucci and Chanel are placing their bets on rising stars from much smaller labels, with LVMH‘s Dior likely soon to follow suit. But new designers face the tricky task of bringing the right dose of renewal, with investors giving them little time to establish themselves.

Last week’s announcement that Gucci had appointed Balenciaga designer Demna to head its design teams sent Kering shares down over 10%, wiping around 3 billion euros off the group’s market value.

In an era of “superstar” creative directors, designers shape the identity of brands, even overshadowing a brand’s heritage, said Jacques Roizen, of consultancy DLG.

Many analysts had lobbied for bolder fashion at Gucci following a two-year push upmarket with more classic designs, but investors worry Demna, 43, who brought buzz to Kering’s smaller label with high-end streetwear styles, might not be the right fit.

Creative directors are redefining “not only the aesthetic direction but also the positioning and clientele of the houses,” said Roizen.

As China remains subdued, luxury brands are pinning their hopes on the U.S. market this year, although signs of economic uncertainty are creeping in.

Chanel, which is privately owned, is bringing in Matthieu Blazy, 40, after his successful run at Kering’s Bottega Veneta. He faces the daunting task of ushering in a fresh design approach, overseen for decades by Karl Lagerfeld, and then by longtime collaborator Virginie Viard following Lagerfeld’s death in 2019.

The importance of the creative director can vary by brand, said Flavio Cereda, who manages GAM’s Luxury Brands investment strategy.

Since Viard’s abrupt departure last year, Chanel has emphasized trademarks, sending models down a runway shaped in its interlocking-C logo or wearing clothes adorned with signature black bows – at Lagerfeld’s preferred venue, the Grand Palais in Paris.

LVMH has yet to officially announce new creative leadership at Dior after menswear designer Kim Jones left in January, but is likely to soon hire a new designer, expected to be Jonathan Anderson. His departure from Loewe was announced on Monday, but LVMH declined to comment on Anderson’s future role.

There are also new faces at a host of smaller brands, including LVMH’s Celine and Givenchy, and Donatella Versace, 69, is stepping aside at Versace after nearly three decades, replaced by Miu Miu‘s Dario Vitale.

“Clients don’t know where to go anymore with all these musical chairs,” said Yannis Ouzene, a sales assistant for a major European brand on the Avenue Montaigne in Paris, home to some of the most exclusive fashion houses.

“I don’t recall seeing such a significant shift in creative leadership across the luxury industry,” said Achim Berg, fashion and luxury industry advisor.

Change will sweep through studios, merchandising teams, marketing departments and design teams — but takes time, with no visible impact likely until next year, he added.

Brands need to be wary of bewildering clients with “too drastic changes in the aesthetic language of a brand,” said Federica Levato, senior partner at consultancy Bain.

For Chinese shoppers, the “here and now” of a brand’s design is more important than its historical context, while Western shoppers place “significant value on the continuity of a brand’s identity”, said Roizen.

For some, the designer is not a deal clincher.

“I don’t care who the designer is,” said Stephanie Gold, an American tourist in Paris who recently purchased a pair of prominent Dior glasses. “I don’t like to buy what everybody has.”

The luxury sector overall – which averaged annual growth of 10% over 2019-2023 – is expected to grow around 4% in 2025, with sales to Americans accounting for over a third of the global growth, up 7%, compared with a 1% decline from the Chinese, based on UBS estimates.

Olivier Abtan, consultant with Alix Partners, says brands have to be careful not to wait too long before shaking things up.

As the market awaits word on Dior’s new design chief, and LVMH grapples with shopper fatigue buffeting the industry, some wonder whether design change at Dior, which lags group heavyweight Louis Vuitton, should have come sooner.

Change needs to be made “as soon as a brand senses growth is slowing,” Abtan said.

© Thomson Reuters 2025 All rights reserved.



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Puma launches Go Wild campaign with new thinking and major spend boost

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Puma has officially unveiled what it says is a “bold conquest strategy and brand positioning” with its new Go Wild campaign, which is its biggest global campaign to date.

 

This is a big deal for the label and a major rethink of its marketing and overall positioning.

The sports giant said its “new vision for sport [that’s] aligned with the expectations of a younger generation and rooted in Puma’s history [is] crystallized through the campaign”. 

It comes as the firm also announced a 40% increase in advertising investments compared to 2024.

The campaign is “an evolution in its brand identity, reinforcing its commitment to redefining the game, and setting the stage for long-term, sustainable growth”. It was developed with the largest consumer research in the brand’s history, “finding a clear space in the market for Puma where performance meets joy – an untapped territory that [the brand] is uniquely positioned to own”.

It kicks off with a focus on the sport of running, “aligning with a positive audience response in this space and rooted in the belief that running is at its best when you chase the highs, with Puma unleashing the energy inside you so you can earn the high”.

Julie Legrand, senior director global brand strategy and communications, explained: “We started with the consumer insight that running will give you a rush like nothing else. Which means that no matter how hard it is, you will never regret a run.” 

Puma

To mark the launch, there’s a hero film, “a tribute to runners unlocking the runner’s high – a rush of happy chemicals released during physical activity”. It moves away from featuring athletes and celebrities and instead celebrates “the everyday runner, including the early-rising runners, a runner with their dog, a new mum, or running as a community”.

And that really counts because the pre-tests among runners “confirm the remarkable potential of this campaign: key markets such as USA and Germany ranked in the top 15% of the most effective ads in driving sales and in the top 1% for the predicted long-term market share growth, indicator that is connected with brand strength”.

It all went live on Thursday and will be amplified through a multi-channel global media strategy spanning multiple touchpoints – digital, OOH, PR, social, TV, retail, and talent-driven activations worldwide.

Following the launch, it will continue through 2025/26 by “strategically spotlighting different business units within sport, including basketball and football, and leveraging key global sporting events”. 

The company will also be launching a content series that aims to explain ‘Go Wild’ to its audience through its ambassadors’ stories. From Tommie Smith in 1968 and Usain Bolt in 2008 to Mondo Duplantis in 2024 (referred to as “our Wild Ones”).

So what’s the thinking behind all this? The company said it “presents a new vision of sports aligned with the expectations of new generations and rooted in its history where, sport is a form of self-expression, a source of enjoyment, and a way to create social connections. With this, Puma is launching a major strategic offensive, unveiling a positioning at the intersection of its DNA, its heritage, and the aspirations of new generations of consumers”.

Puma

That focus on Gen Z is key with the company explaining that these consumers “seek immersive experiences, social connection, and pleasure from sport”.

And “more than just a worship of performance, Puma aims to inspire individuals to unleash their wild energy through sport. By capturing the human instinct, we all feel when playing sport, Puma aims to expand its global presence and make more meaningful connections with its audience”. 

Richard Teyssier, global VP Brand and Marketing at Puma, added: “From Tommie Smith’s raised fist in 1968 to Usain Bolt’s explosion of joy in 2008. We believe that greatness begins with the courage to be yourself and this philosophy has always guided Puma, resonating more than ever with the younger generation. With this ‘Go Wild’ campaign, we are taking our first step to further connect with our audience, with the first chapter focusing on running with a truly unique and disruptive approach.”

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Bad news for unsecured Body Shop creditors as administrators deliver update

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Ethical retailing can come at a cost as former Body Shop suppliers are finding out. The unsecured creditors from the beauty retailer’s administration last year, including manufacturers, landlords, local councils and small charities, are to receive just 16-27% of the £219 million owed to them when the retailer went under.

DR

The retailer, which was founded by Anita Roddick in 1976 and was once part of  both L’Oréal’s and Natura’s extensive beauty portfolios, fell into administration via its previous owner, German restructuring specialist Aurelius.

At the time of its collapse, administrators said the Body Shop’s debts totalled over £276 million, The Guardian reported.

The brand was rescued by a consortium led by the British cosmetics tycoon Mike Jatania in September, paying at least £44.3 million for the retailer, saving 1,300 jobs. However, its initial failure came at a cost of 80 stores closed and 750 jobs lost, taking its UK high street tally to 113.

In their latest update, administrators from FRP said UK tax authorities would be paid in full from the proceeds of the administration and workers would receive holiday pay owed. However it confirmed unsecured creditors owed £219 million in total, would receive only between 16% and 27% of the money owed.

The report shows the Body Shop owed millions of pounds to suppliers around the world, the most to Avon, the cosmetics group owned by Natura, at just over £13 million for products it manufactured.

The retailer’s former owner Aurelius did not receive any payment, the report said.

The group, now run by the former Molton Brown boss Charles Denton, has reportedly said the business “had achieved a profit in its first 100 days”.

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Donatella Versace helms 2025 International Woolmark Prize jury

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The International Woolmark Prize returns to Milan in April and to mark that there’s a strong Italian contingent on the jury as eight of the world’s most promising design talents compete for the accolade and cash prize.

The jury

And the biggest name joining the select group is Donatella Versace, Versace, who recently announced that she’ll step down from the creative helm of her label to become its chief brand ambassador as of the start of next month. She’s the chair of the judges this time.

Also on the panel is Alessandro Sartori, artistic director of Zegna; Alessandro Dell’Acqua, N°21 founder and creative director; and Simone Marchetti, Vanity Fair European editorial director and Vanity Fair Italia editor-in-chief.

But it’s not an all-Italian affair with the prize’s guest artistic director IB Kamara, and “image architect” Law Roach, among others, judging the finalists.

Donatella Versace said: “Supporting the next generation of fashion talent has never been more important. I am so excited to host the Woolmark Prize in our home city of Milan and to meet the designers selected. I am sure they will all be winners in their own way. I am honoured to be chair of the judging panel for the 2025 Woolmark Prize alongside my fellow amazing judges. Woolmark has always been such fantastic supporters of the future of fashion.” 

The finalists for the prize this time include Italy’s Act N°1, Duran Lantink from the Netherlands, Belgium’s Ester Manas, and Meryll Rogge, France’s LGN Louis Gabriel Nouchi, and London-based Irish label Standing Ground.

The 2025 final event is the first edition of the International Woolmark Prize in its new biennial format. One finalist will be awarded the International Woolmark Prize and receive the increased prize fund of A$300,000 for business development, while all of them “will have the opportunity to be stocked at some of the world’s leading stores”.

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