ClickZ Luxury Fashion Newsletter - 11.07.2024

PLUS: Miu Miu's success is redefining luxury strategy—strategic lessons for your brand.

Author

Sophie Bruxner-Randall
November 07, 2024 • Estimated Reading Time: 8 minutes

Editor’s Pick 🎯

YouTube surpasses forecasts in Alphabet's Q3 earnings call

Google parent Alphabet's Q3 earnings call revealed YouTube's impressive performance, bringing in nearly $9b in ad revenue—a 12.2% increase year-over-year. This substantial growth, typically undisclosed by Alphabet, signals the platform's rising dominance in digital advertising.

👉 Fospha highlighted this upward trend in their their latest report, identifying YouTube as the second-fastest-growing ad channel for eCom brands by ad spend.

While YouTube currently reports the highest CPA among Google channels as brands adapt and optimize their campaigns, its increasing popularity reflects a broader shift toward brand-building channels for long-term growth. The platform's potential for driving brand growth makes it one to watch in coming quarters.

Niche Nuggets 🔎

Lewis Hamilton has transformed his fashion identity, moving beyond team uniforms to showcase a personal style that speaks to his individuality. Through collaborations with designers like Marc Jacobs and Tommy Hilfiger, whom he credits with opening doors in the fashion world, Hamilton has found his place in fashion. Recently named co-chair for the 2025 Met Gala, he’s thrilled to influence its direction and inspire fellow drivers to embrace their unique styles.

Miu Miu, a brand under the Prada Group, is experiencing remarkable growth, with retail revenues soaring 97% to 929 million USD. This success is attributed to its strong brand image and product mix, contributing 25% to Prada's total sales. The brand's momentum is expected to continue through 2027, with plans to expand store space, especially in Europe.

Prada Group's overall revenues rose 15% to 4.17 billion USD, driven by strong retail sales across all regions, including a 40% increase in Japan. The group is focusing on strategic investments in retail, technology, and industrial capabilities to sustain long-term growth. Despite challenges in China, the group remains optimistic about future prospects, emphasizing a balanced approach to growth and profitability.

Pharrell Williams' latest Louis Vuitton men's pre-spring 2025 collection celebrates the cosmopolitan culture of dogs and their owners. This innovative line features shoes, bags, and more, reflecting a unique blend of style and functionality. Explore how this collection captures the essence of urban life with elegance and creativity.

LVMH has sold Off-White to Bluestar Alliance, marking a significant shift in the luxury streetwear landscape. This move comes after LVMH acquired a majority stake in 2021, with Virgil Abloh retaining 40%. Abloh, a visionary in blending street culture with high fashion, left a lasting impact on the industry before his passing in November 2021.

Bluestar Alliance sees this acquisition as a chance to honor Abloh's legacy and continue his innovative spirit. Off-White joins Bluestar's diverse brand portfolio, including Scotch & Soda and Bebe. The partnership aims to respect Off-White's creative integrity while fostering growth and innovation. LVMH expressed confidence in Bluestar's ability to uphold the brand's values and drive its future success.

Hermès sued Mason Rothschild over MetaBirkins NFTs, claiming trademark infringement. The case explores trademark rights in the virtual world. Despite Rothschild's First Amendment defense, courts sided with Hermès, issuing a permanent injunction and monetary damages. The case highlights the evolving intersection of trademarks and digital art.

October's retail news spotlighted major developments: Frasers Group's acquisitions, leadership changes at Gucci and Celine, and new store openings by Uniqlo and Vuori. Frasers also demanded Mike Ashley's appointment at Boohoo. These shifts highlight the dynamic nature of the retail industry, offering growth and learning opportunities.

Oxblood accessories are trending this season, with brands like Hermès and Loewe showcasing them. Searches for burgundy have surged, indicating growing consumer interest. This versatile hue complements autumnal shades and is expected to remain popular into spring. Investing in oxblood pieces now could be a stylish and worthwhile choice.

Leading Voices 📣

Jamie Bolton reveals how top eCommerce brands drive resilient growth:

🌐 Diversification is Key: A diverse channel mix acts as an “insurance policy” for brands amid rising CPAs and a challenging market.

🔄 Stay Agile: What worked last year may not work today. Top brands adjust their strategy over time, adapting to new growth levers as they mature.

📊 Measurement Matters: With channel diversity comes more complex measurement needs. Only with full-funnel attribution can brands assess their channel mix and remain agile.

For a full rundown, check out the full post!

Performance Pulse 📈

Ad prices fell in Q3 2024, impacting ad spend growth in search and social. Retail media saw a click surge, while new formats outpaced traditional channels. Amazon DSP and Google Performance Max showed significant growth. Lower prices increased ad volume, especially in retail media's purchase funnel.

To navigate rising holiday advertising costs, diversify your strategy by incorporating platforms like TikTok, YouTube, and Connected TV. These channels offer competitive pricing and reach new audiences. Focus on user-generated content and platform-specific strategies to optimize engagement and conversions, ensuring a successful holiday marketing campaign.

Front Row, an acceleration company, helps brands optimize e-commerce strategies on platforms like Amazon. By leveraging Deal Days, brands can boost sales and visibility. Success requires planning, unique offerings, and nurturing customer loyalty. Effective SEO and affiliate marketing are crucial for sustained growth and maximizing long-term benefits.

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