Against a backdrop of slowing growth in China and major restructuring in the luxury goods sector, global volatility has hit the sector’s share prices: Kering (-2.34%), Hermès (-1.59%) and LVMH (-0.51%) all posted declines amid geopolitical tensions and economic uncertainty.
But beyond this turbulence, international expansion strategies are intensifying. Hilton has unveiled its new hotel concept, Gen A, in China. The American group has announced the opening of its first hotels in the cities of Chongqing, Sanya and Harbin, while confirming the signing of 19 new properties in destinations with strong tourist and economic potential. For its part, Bugatti has just opened its latest showroom in Washington, D.C., consolidating its strategic presence on the East Coast of the United States. Convinced of Medik8’s global potential, the CEO of L’Oréal Luxe shared his enthusiasm for developing the international success of the British high-end skincare brand that his group has just acquired.
But that’s not all: the world’s leading cosmetics group has also announced that it plans to double its production in India within two years, across all brands.
And for some luxury players, major sporting events are also becoming springboards for international expansion.
Tennis has thus become a favorite domain for the biggest watchmakers. Brands such as Rolex, Longines, and TAG Heuer have competed with ingenuity and strategy to associate their names with the performance and prestige symbolized by Roland Garros, the US Open, Wimbledon, and the Australian Open.
For others, expansion is not just geographical. It involves exploring new brand territories. This is the case, for example, with Lonchamp, which has opened its first Café concept in Paris.
In terms of acquisitions, the rescue of the week is that of La Perla, which has been officially taken over by Peter Kern (formerly of Expedia). And Champagne start-up EPC, founded six years ago to the day, has acquired the traditional family business Charles Mignon. Less fortunate was French start-up Courbet, which specialises in jewelry set with synthetic diamonds, and has finally been liquidated.
There were also some major management changes during the week: Luca de Meo is taking over at Kering. This means that the roles of chairman, which will be filled by the group’s current CEO François-Henri Pinault, and CEO, which will be taken on by Luca de Meo, will be separated. This is the culmination of a process begun in early 2023 by François-Henri Pinault, which had already led to the appointment of Jean-Marc Dupleix and Francesca Bellettini as deputy CEOs. Matthieu Heidsieck is taking over at Ruinart, while Patrick Aoun is becoming CEO of Longines and Vania Lacascade is taking the helm at Lancôme.
Luxury also gave pride of place to innovation and technology during VivaTech, where LVMH highlighted “story proving” and measurable innovation. The group also presented an abridged version of its Innovation Awards. For Chanel, innovation is part of a sustainable and responsible approach. The French fashion house has launched Nevold, a €50-80 million investment to strengthen its position in the circular economy.
So perhaps the question is not when luxury will evolve, but how.
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Featured photos: © Luxus Plus
