This week, a check-in on Roberto Cavalli, which had its heyday in the ‘90s. Plus, a new members-only app aims to give off-price luxury shopping a refresh, and new data shows new interest in London Fashion Week Men’s.
Even before the April passing of its iconic namesake founder, Roberto Cavalli, luxury fashion brand Roberto Cavalli had started to undergo a brand transformation. Under the leadership of CEO Sergio Azzolari, who joined the company in March 2023, Roberto Cavalli is making moves to adapt to the modern market and cater to younger consumers.
Roberto Cavalli’s extensive archive of designs that never made it to market plays a crucial role in this evolution. The archive is set to inspire future collections, playing into the nostalgia trend that has recently seen brands like Miu Miu gain traction. “This [archive] gives us a significant advantage because we can draw from a wealth of designs that are still fresh and relevant. It’s like having a treasure trove of untapped potential that allows us to innovate while staying true to our roots,” Azzolari told Glossy at Shoptalk Europe on June 4.
In 2023, Roberto Cavalli re-opened in the U.S. following its 2019 bankruptcy, starting with a store in Las Vegas. “The response to our reopening in the U.S. has been phenomenal, proving that the brand still holds significant value and recognition,” said Azzolari. “It’s like a homecoming for Roberto Cavalli in these markets.”
In May, Roberto Cavalli dressed Taylor Swift in 20 embroidered outfits for her European Eras Tour. The bold, sophisticated designs were widely praised by Swift’s young fans, creating a buzz around the brand.
“We aim to maintain our luxury status without compromising on quality, even when making the brand more accessible,” said Azzolari, referring to the pre-owned the brand plans to launch this year. “It’s important that we do not dilute our brand’s essence. By maintaining high standards, we ensure that our products are long-lasting and continue to be cherished across generations.”
Pre-owned Roberto Cavalli pieces are “hugely popular” in China, and the brand hopes to further capitalize on the trend, said Azzolari.
Also this year, Roberto Cavalli will launch rental styles, further catering to the shopping habits of younger generations who are increasingly conscious of sustainability and affordability. “This allows us to make luxury more accessible without reducing prices, thus maintaining the brand’s premium status,” Azzolari said.
Inspired by the longevity culture around luxury watches, Roberto Cavalli focuses on high-quality materials and finishes that can be passed down. Sustainability is another cornerstone of Roberto Cavalli’s product strategy. “Quality items never go out of style and can be reused across generations,” said Azzolari. “Creating products that last is the ultimate form of sustainability.”
Next, the brand will open stores in Miami in June and Vegas in August, followed by Los Angeles. And it’s committed to expanding its footprint from there. “In the U.S., we focus on the Sunbelt for store locations,” Azzolari said. Cities like Miami and Vegas are synonymous with a vibrant lifestyle, which matches the spirit of our brand.”
Creating unique and personalized experiences and offering unique assortments at these stores is a focus, Azzolari said. “This encourages our customers to visit multiple stores and engage more deeply with the brand,” he said. Signature denim pieces, which will launch this year, will also vary in design by store.
The retail expansion is supported by a robust online business, which represents almost 40% of the business.
In addition, the brand sells through wholesale partners including Macy’s and Harrods. “We work closely with our retail partners to ensure that our products are showcased in a way that tells our story, attracts customers and enhances their overall shopping experience,” Azzolari said.
In July, the brand will launch an exclusive collection at Selfridges which will focus on everyday luxury pieces that align with its heritage. “The collection will be contemporary but inspired by our archives,” Azzolari said.
Despite the challenges posed by the pandemic, Roberto Cavalli remains financially solid, backed by strong shareholder support. The brand reported revenues of €20 million ($22 million) last year and continues to grow. “We are growing double digits in all channels,” Azzolari said.
Is off-price luxury shopping getting a mobile upgrade?
In recent years, the off-price luxury market has undergone a significant transformation. Once dominated by outlets like Lo Spaccio in Tuscany and private sales by the likes of The Box in London, the sector is now evolving to meet the demands of more informed and discerning consumers.
One contributor is Heat, the company behind luxury mystery boxes. Its founders’ latest venture, Mile, launched on Wednesday, is a members-only app designed to elevate the shopping experience.
“The off-price environment is more than just affordability,” said Joe Wilkinson, co-founder and CEO of Heat and Mile. “Many customers have the spending power to buy full-price items but prefer the unique value and story behind overstock products. This shift from hype-driven purchases to investing in timeless luxury pieces is a significant trend we’ve observed.”
Wilkinson and his co-founder, Mario Maher, tapped into this market by launching Heat at the end of 2019. Their business model centers around curating mystery boxes filled with luxury streetwear which gained traction during the pandemic. “The oversized trend made it easier to curate these boxes, as sizing was more flexible,” said Wilkinson. To date, Heat has sold over 50,000 mystery boxes.
However, as fashion trends evolved, Wilkinson and Mario realized that the mystery box model had limitations. So, they launched an additional business suited to evolving consumer preferences.
“As our customer base matured, they wanted to choose specific pieces and brands,” Wilkinson said. This led to the development of Mile, a members-only app designed to offer a more personalized and curated shopping experience. The monthly membership is priced between $10-$100, based on the number of products received.
“We designed it to be behind a paywall, adding a level of exclusivity and elevating the perception of overstock products. It’s not about the season it’s from but the curation that matters,” said Wilkinson.
The decision to focus on a mobile app was driven by data, which showed that 98% of Heat’s traffic came through mobile. “Young consumers are always on their mobile devices, and we believe a high-quality, integrated experience can only be delivered through a dedicated app. We’ve brought on a team of engineers and architects from major retailers to ensure we deliver a top-notch experience,” Wilkinson said. Hires include Man Hoang, formerly svp of technology at sneaker company Stadium Goods.
Mile’s business model includes both buying inventory and consigning products from luxury brands. “We have warehouses in New Jersey, the Netherlands and the U.K. where consigned products are stored and shipped when sold. This model allows us to scale quickly and maintain control over the customer experience,” Wilkinson said. Additionally, Mile offers a marketplace functionality where trusted partners can list products on the app, shipping directly to customers with provided shipping labels. “This hybrid approach combines the best elements of traditional retail and modern marketplace models, ensuring reliability and quality,” said Wilkinson.
Brand partnerships are a crucial component of Mile’s strategy. “We’ve shown that we care about the fashion industry and the products, which has allowed us access to amazing items, from runway pieces to unreleased collections,” said Wilkinson. Mile has already established strong relationships with over 100 brand partners, significantly expanding its product range.
Mile has already attracted over 3,000 people users, who are part of a test group. According to Wilkinson, they’ve driven substantial revenue through memberships and sales. “This pre-launch phase has helped us refine the app and ensure we can provide a great service when we go live,” he said.
Stat of the Week: London Fashion Week’s evolution
This year, the British Fashion Council introduced public fashion shows to the London Fashion Week Men’s calendar. This new format significantly boosted audience engagement on Instagram, as shown in data exclusively shared with Glossy by Dash Hudson.
Top 5 LFW Brands, based on Instagram engagement rate:
Harri: 2.47%, 1,200% above the industry average
Marie Lueder: 1.82%, 858% above the industry average
Claudia Wang: 1.28%, 574% above the industry average
Qasimi: 0.25%, 31% above the industry average
Gieves London: 0.25%, 31% above the industry average
According to Dash Hudson, Instagram engagement rate measures the level of interaction between a brand and its audience, indicating content effectiveness and brand affinity. The average ER for the luxury industry during the reviewed period was 0.19%.
According to Kate Kenner Archibald, CMO of Dash Hudson, “This edition of London Fashion Week exemplified the power of compelling storytelling in driving social engagement and follower growth.”
Executive Moves
- Divya Mathur, who joined Revolve Group Inc. as fashion director last year and previously held executive roles at Intermix, Shopbop, Michael Kors, Yoox and Saks, will now also serve as chief merchandising officer, succeeding Lauren Yerkes.
- Effective June 10, Cécile Cabanis will join LVMH as deputy finance director, transitioning from her role as deputy CEO at Tikehau Capital. Cabanis will gradually take over responsibilities from current CFO Jean-Jacques Guiony, who has overseen financial operations and strategic planning at LVMH in recent years. Guiony will be given new responsibilities within the company.
- Designer Chiara Boni is leaving the fashion brand she founded in 2009 after the Germanetti family, long-time investors who initially acquired a minority stake in 2005, bought out her remaining shares and those of investor Boris Collardi. CEO Maurizio Germanetti cited differing strategic views and expressed optimism about the company’s future growth.
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