VENICE — How did Miu Miu generate income progress of 89 p.c within the first quarter of the yr whilst the remainder of the luxurious sector struggled to keep up its post-pandemic momentum? What’s going to it take for Gucci to get again on observe after its gross sales contracted by 18 p.c over the identical interval? And why does Bottega Veneta select to not take part within the race for consideration on social media?

Simply earlier than luxurious model CEOs took to the stage to handle these questions on the FT Enterprise of Luxurious Summit in Venice this week, BoF unveiled the second iteration of The BoF Model Magic Index, a brand new model measurement software co-created by BoF Insights and information and AI insights firm Quilt.AI. Our new report is chock-full of insights for anybody thinking about luxurious model administration, together with an up to date methodology constructing on the primary version of the report we unveiled in September 2023.

In case you missed it, Dior, Louis Vuitton and Versace ranked within the high three manufacturers this time round. You possibly can see the outcomes right here. The total 178 web page report, together with 50 model profiles, is obtainable to our Government Members.

Though my days as a administration marketing consultant are lengthy behind me, my favorite new addition to our new report is The BoF Model Magic Matrix. I’ve not misplaced my love for a very good 2×2 matrix!


This offers a visible depiction of 47 of the 50 manufacturers we analysed alongside two of our three core metrics:

  • Alignment: We measure how clear a model’s identification is to prospects, primarily based on the evaluation of name and user-generated content material on Instagram, TikTok and YouTube, utilizing proprietary AI fashions created by Quilt.AI. We have a look at how prospects talk a couple of model and examine that to the way in which the model talks about itself. The higher alignment, the upper the rating.
  • Engagement: To find out how efficient a model is in inspiring prospects, we measure a model’s engagement price on Instagram and the way a lot user-generated content material prospects create a couple of model on TikTok. This means how a lot buzz a model is creating, irrespective of the particular dimension of its following, enabling us to extra pretty examine manufacturers of various sizes.

Decoding The Magic of Miu Miu

Miu Miu, which seems within the high proper quadrant of The BoF Model Magic Matrix, is likely one of the 14 Magical Manufacturers which have discovered alignment with their prospects, whereas additionally producing significant engagement from followers, followers and prospects on-line.

How have they performed this? In accordance with Prada Group CEO Andrea Guerra who spoke on the Monetary Instances Summit, the important thing to luxurious model administration is rigorously managing the important thing “rigidity of who you might be and who you want to be sooner or later.”

That is precisely what The BoF Model Magic Matrix measures, offering perception into how successfully manufacturers steadiness the timelessness of their identification with the timeliness of the tradition.

In relation to fascinated about timelessness, Guerra credit Lorenzo Bertelli for coming in to work along with his mother and father within the household enterprise. “This is likely one of the issues I really like concerning the Prada Group and the doorway of Lorenzo [Bertelli, son of Miuccia Prada and Patrizio Bertelli] within the group. The 2 manufacturers have been actually centred once more of their positioning within the long-term. No ways. No shortcuts. Lengthy-term. And being credible to that group of shoppers. This is likely one of the most vital issues to be continuously performed. Don’t betray that small group of shoppers which can be your actual long-term spine.”

Roula Khalaf, Editor of the Financial Times, and Andrea Guerra, Prada Group CEO, at the FT Business of Luxury Summit in Venice in May 2024.
Roula Khalaf, Editor of the Monetary Instances, and Andrea Guerra, Prada Group CEO, on the FT Enterprise of Luxurious Summit in Venice in Could 2024. (LM/Alessio Marini)

On the opposite facet of the equation, there may be creativity, the place Miu Miu has undoubtedly been one of many business leaders for a number of seasons. A lot of this success of Miu Miu has come from translating the runway provide into extremely wearable preppy daywear, plus some viral hits that begin conversations.

However Guerra says Miuccia Prada makes use of her intestine as a inventive place to begin. “Mrs Miuccia does what she feels there. She does what involves her thoughts, how she’s dwelling the world in the suitable second, how she’s capturing the cultural world. It’s extra about intuition. It’s for positive a youthful model, however I feel it represents the happiness of Mrs Miuccia.”

It may well’t damage that Mrs Prada has discovered such nice inventive foil within the stylist Lotta Volkova, who has been working behind the scenes with Mrs Prada on styling the exhibits and campaigns, which have had a palpable affect on Miu Miu’s sturdy model picture.

Guerra says this twin concentrate on long-term model administration anchored and short-term creativity and picture creates a helpful and needed rigidity. “On one facet, there are people who find themselves coping with model, and there’s folks coping with creativity and picture. When you’ve got a constructive rigidity there, in case you have a constructive rigidity there, if there’s not a transparent winner there, I feel you might be on a very good observe.”

(For extra on the magic of Miu Miu, learn Rachel Sanderson’s wonderful evaluation: The Technique Behind Miu Miu’s Explosive Progress.)

Getting Gucci Again on Monitor

Though Francesca Bellettini is best identified amongst business insiders because the CEO of Saint Laurent, she has additionally not too long ago taken on an expanded function as deputy CEO of Kering in command of Model Growth, tasked with working with the CEOs of the manufacturers within the group, together with flagship Gucci. So naturally the most important query on the minds of attendees was about the way forward for the mega-brand amid gross sales which have declined precipitously whereas opponents have continued to develop.

This week, Chanel revealed that its gross sales for 2023 expanded by 16 p.c, whereas Gucci’s income was down 2 p.c to €9.9 billion over the identical interval. Gucci continued to lose momentum within the first quarter of this yr, with gross sales down 18 p.c versus the identical quarter final yr. Kering has warned that Gucci’s underperformance will imply recurring working revenue for the group will plunge 40 to 45 p.c within the first-half, due to the disproportionate share of revenue that Gucci usually generates.

Gucci is positioned within the high left quadrant of our Model Matrix. It’s a Buzzy Model that has excessive ranges of Engagement on social media channels, made attainable partially to its large advertising and marketing spend. However with a inventive transition beneath Sabato de Sarno nonetheless not bedded in a yr and a half after his runway debut, many purchasers haven’t but clocked Gucci’s new aesthetic. A few of them nonetheless see Gucci because the maximalist vogue model that registered explosive progress beneath the inventive route of Alessandro Michele earlier than sputtering through the pandemic as shoppers flocked to blue-chip luxurious manufacturers seen as much less prone to exit of favor than fashion-driven Gucci.

Bellettini acknowledged that Kering’s manufacturers, Gucci included, have relied greater than its opponents in driving progress from aspirational shoppers, a lot of whom have pulled again their spend, particularly in China and the US and that they wanted to reassert their luxurious credentials. “The manufacturers which can be performing higher are those whose share of enterprise depends extra on these high prospects,” she mentioned. “I don’t just like the phrase, however it’s true that the group is embracing a journey of elevation for a number of years, ensuring that every part we do speaks to luxurious.”

Model elevation can also be not merely about elevating costs, she mentioned. “You can’t take the shortcut of merely growing the value of the merchandise that you’ve. If I have been a shopper, I’d really feel fooled round if I see a product right now that’s costing double what it was costing one yr in the past. That’s not elevation,” she insisted. “Elevation is: I work on the model. I work on the positioning. I work on the standard of my product and I’ve a legitimacy to introduce dearer merchandise in my assortment.”

Jo Ellison, Deputy Editor, FT Weekend & HTSI Editor, and Francesca Bellettini, CEO of Saint Laurent and deputy CEO of Kering, at the FT Business of Luxury Summit in Venice in May 2024.
Jo Ellison, FT Weekend’s Deputy Editor & HTSI Editor, and Francesca Bellettini, CEO of Saint Laurent and deputy CEO of Kering, on the FT Enterprise of Luxurious Summit in Venice in Could 2024. (LM/Alessio Marini)

Certainly, whereas Bellettini mentioned Gucci’s progress spurt was a “case research” within the luxurious house, its short-term progress centered on fashionable fashions and aspirational shoppers was not balanced with the longer-term well being of a enterprise primarily based on constructing relationships with the highest luxurious shoppers.

Turning issues round will take time. “I don’t like when folks say it’s important to do a revolution. I don’t like revolutions. I like evolutions as a result of whenever you evolve you don’t throw the nice issues within the bin, however you truly construct on that,” she mentioned. “What is essential is to take the time to create effectivity, to take the time to work on the standard of the product. If you develop, that you must run after the demand and generally you don’t have the time to concentrate on that. Now we do.”

There’s little doubt that beneath Michele, Gucci overlooked the long-term timelessness that our Model Matrix measures. However Kering should not neglect that this must be balanced with short-term timeliness that retains Gucci within the vogue dialog — a difficult steadiness to strike.

I’m nonetheless ready for the style sizzle that can get prospects enthusiastic about Gucci once more. Beneath Tom Ford and Michele, Gucci performed a number one function in shaping the style agenda, one thing that has but to take maintain beneath de Sarno. His latest cruise present in London was a small step ahead, however we have to see a extra cohesive and distinctive vogue imaginative and prescient from Gucci to ensure that it to change into a Magical Model.

“Sabato is the primary inventive director at Gucci that comes from the skin. Tom Ford was promoted from the within. Freda [Gianini] was promoted from the within,” Bellettini mentioned. Alessandro Michele had been additionally inside Gucci for 18 years earlier than taking over the function of inventive director.

“The truth is that by doing that you simply additionally construct sure methods of working that aren’t essentially the suitable one for the long run. So with Sabato we’re additionally studying collectively how an organization with the eyes of an outsider is meant to work with a inventive particular person. We’re constructing groups round [him] that work additionally otherwise that earlier than weren’t needed as a result of principally all people grew and saved doing issues as they have been performed.”

Discovering the interior steadiness between a designer and the groups working round them is essential to discovering constructive rigidity at Gucci that Guerra says underpins the magic of Miu Miu. In the event you don’t have the strain, it’s important to create it.

What About Bottega Veneta?

A few of you may have been questioning why Bottega Veneta will not be ranked in our Index (and due to this fact doesn’t seem on the Matrix), regardless of being a brilliant spot at Kering, up 2 p.c on a comparable foundation to €388 million in Q1 2024. The brief reply is that Bottega has no social media presence of its personal, so most of the metrics we use to measure model magic usually are not out there.

As CEO Leo Rongone mentioned on the Summit, Bottega’s choice to wipe their social media accounts is a part of an intentional technique to make sure their communications are in step with a model whose founding motto is “When your individual initials are sufficient.”

Bottega Veneta CEO Leo Rongone at the FT Business of Luxury Summit in Venice in May 2024.
Bottega Veneta CEO Leo Rongone on the FT Enterprise of Luxurious Summit in Venice in Could 2024. (LM/Alessio Marini)

“The very fact of being non-conformist — not having a brand, doing a denim that’s made out of leather-based — is in step with utilizing social media otherwise. The intention wasn’t to be out of social media or to be in social media,” he mentioned. “We found that whenever you get out of [social media], you begin transferring from a one-to-many relationship to many-to-many. All people can say no matter in social media about Bottega, and we’re pleased about this.”

“Bottega Veneta, not like many different manufacturers, will not be linked to a founder. We don’t have the title of the founder within the title of a model,” he mentioned. “We’re a discreet model, our merchandise are discreet.”

This Weekend on The BoF Podcast


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In 2014, in a nondescript basement membership in East London, Charles Jeffrey’s Loverboy was born. On the age of 18, the Scottish-born designer moved from Glasgow to London to pursue a BA in Trend Design at Central Saint Martins and has since earned his place within the lengthy line of extremely inventive vogue designers coming from the town. With an upcoming exhibition at Somerset Home, the one time upstart is able to look again on 10 years of his model.

This week on The BoF Podcast, Jeffrey joins me to share his journey into London’s vogue scene and mirror on the previous, current and way forward for Loverboy, underscoring that he has his personal distinctive imaginative and prescient to contribute to vogue.

Wishing you all an excellent weekend!

Imran Amed, Founder, CEO and Editor-in-Chief, The Enterprise of Trend

Plus, listed here are my different high picks from our evaluation on vogue, luxurious and sweetness:

1. The Existential Risk to Unbiased Manufacturers. This week, The Vampire’s Spouse introduced its closure and Dion Lee known as in directors, solely days after Mara Hoffman mentioned it was shutting down and Roksanda narrowly escaped administration. For unbiased labels, issues are set to worsen earlier than they get higher.

Dion Lee Spring Summer 2024
Dion Lee known as in directors this week. (Highlight/

2. Chanel Defies Luxurious Slowdown as Annual Gross sales Surge to $20 Billion. The French couture home reported revenues up 16 p.c in 2023 and plans to extend capital expenditure by as a lot as 50 p.c in 2024.

Look from Chanel 2023/24 Métiers d’art show in Manchester in December 2023.
Look from Chanel 2023/24 Métiers d’artwork present in Manchester in December 2023. (Chanel)

3. Why Legacy Labels Nonetheless Need to Be DTC Manufacturers. Corporations like Nike, Levi’s and PVH, which have been on years-long journeys to ramp up their direct companies amid ongoing challenges in wholesale, present case research for how you can put money into the promoting channel.

An image of a Levi's storefront in London.
Levi’s is one wholesale model prioritising progress in its DTC channel as multi-brand retailers battle. (Shutterstock)

4. Why Girls’s Basketball Stars Are Lastly Getting Huge Sneaker Offers. Nike’s upcoming launch with WNBA star A’ja Wilson is the newest in a wave of sponsorship and endorsement offers capitalising on the rising reputation of the game.

Nike and A'ja Wilson announced the Las Vegas Aces star's long-awaited signature sneaker at at exhibition game last weekend.
Nike and A’ja Wilson introduced the Las Vegas Aces star’s long-awaited signature sneaker at at exhibition recreation final weekend. (Nike)

5. The way to Develop a Trend Model With out Trashing the Planet. Over the past six years Puma has managed to double its income whereas shrinking its carbon footprint by nearly a 3rd. It’s an instance extra manufacturers have to comply with, argues Kenneth P. Pucker.

Puma has succeeded in curbing in planet-warming emissions while still growing sales.
Puma has succeeded in curbing in planet-warming emissions whereas nonetheless rising gross sales. (Puma by way of Instagram)

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