Why Is Fashion Diving Into New Industries?
Brand Universes horizontally venture into new territories, leveraging the robust core of the brand to hold multiple brand planets within its cosmos.
This article, which in the full version of this research report appears under the chapter title ‘Part 1: From Core to Cosmos’, is part 5/12 of The Next Big Bang: The Brand Universe Solution to Growth, the inaugural research thesis by edition+partners, distributed here on SOTA. In the ever-evolving landscape of brand development, the concept of a Brand Universe emerges as both a tangible entity and a strategic methodology, offering a dynamic approach to brand survival and growth.
TL;DR
There is a growing consumer appetite for experiencing fashion brands in new ways beyond fashion products, therefore brands who include only fashion items in their offering are missing out on brand and commercial growth.
Half of shoppers (42%) surveyed reported to having spent less on fashion over the past year.
Brand collaborations face declining excitement among consumers. The future of collaborations lies in strategic curation of partners, less frequent but multi-seasonal partnerships, and innovative launches beyond physical product.
The Creative Industry Land Grab
Late last year, within the single month of writing this report, the following events unfolded in sequence.
Kim Kardashian’s Skims became the official underwear partner for the NBA and the WNBA. Earlier that week the brand launched its debut men’s line of undergarments featuring footballer Neymar, basketballer Shai Gilgeous-Alexander, and NFL’s Nick Bosa. A few days prior, Puma named A$AP Rocky as Creative Director of its landmark Formula 1 multi-year licensing deal partnership giving the German sportswear maker the rights to exclusively produce and sell F1 apparel, footwear and merchandise.
Over in Paris, pastry chef Maxime Frédéric released a selection of baked confections featuring Louis Vuitton’s signature motifs including those displayed on raspberry tarts, chocolate eggs, and vanilla entremets. It followed an array of hospitality launches from the brand including the opening of its first airport lounge, in Qatar.
The culinary partnership came just days after Lebron James could be seen featured on a giant billboard on New York’s Canal Street dressed in a suit and tie from Pharrell Williams’ debut collection as Men’s Creative Director of Louis Vuitton holding a soon to be released bright red Speedy bag.
The French Maison announced its latest ambassador, fencer Enzo Lefort two days later. The move came a few months ahead for the 2024 Paris Olympic Games for which Vuitton’s parent company LVMH signed a groundbreaking sponsorship deal worth roughly €150 million. Lefort was the latest athlete to join the Louis Vuitton ambassador family whose courting of young athletes “House Ambassadors” from tennis player Carlos Alcaraz to rugby player Dan Carter — and Cristiano Ronaldo and Lionel Messi starring in recent campaigns — is reminiscent of Nike’s ambassador strategy in the late 1980s. Louis Vuitton, however, has little performance product.
They instead leverage cultural moments as their brand currency, best demonstrated during Pharrell Williams’ blockbuster debut runway show in late June held a stone's throw away from LVMH-owned hotel Cheval Blanc, which was attended by Beyoncé, Zendaya, and Rihanna, with runway appearances by rapper Pusha-T, skateboarder Carlisle Aikens, and photographer Gabriel Moses, and with a surprise performance by Jay-Z. Cultural momentum, there it is.
And it isn’t just Louis Vuitton. Over just the past few months, Fendi has released a line of golf products and gear, Balenciaga followed with the launch of its snowboard range, and Martine Rose enlisted the Lionesses English women’s football team for its latest collaboration with Nike. Beyond sports, Valentino appeared in Apple TV’s blockbuster “The Morning Show” seeing its cast consisting of Jennifer Aniston and Reese Witherspoon attend a fashion show in attendance of Valentino’s Creative Director Pierpaolo Piccioli. Over in Seoul, Jacquemus launches a 2,000-square-foot space with a facade featuring a giant version of its hit Bambinou bag. Inside the space, the brand hosts a café serving a number of special drinks while doubling as a flower shop and various bags.
Most recently, pgLang, the creative studio by rapper Kendrick Lamar and Dave Free partnered with Chanel on the invite, show teasers, the soundtrack, and the show set. Meanwhile, Prada announced it will be going to the moon. Quite literally as it’s helping design NASA’s space suits for its 2025 moon mission.
That should cover it all.
All of it had remarkably little to do with the core business, the fashion itself. Brands horizontally expanding their businesses into new categories, and even entire industries, isn’t new. Giorgio Armani, Ralph Lauren, Tommy Hilfiger, Fendi, Calvin Klein, and Versace each have actively incorporated homeware and hospitality into their business strategies since the late 1980s.
Forays into publishing, art and design, restaurants and cafes, technology, stationary, sporting goods, the cultural institution sponsorship, and even hotels, yachts, and cruises have all followed suit over the years. Most of these diversifications have often materialised through collaborations with seasoned partners who specialise in the respective sectors. Yet, beyond the early aforementioned pioneers, the majority of these endeavours have remained one off marketing exercises rather than evolving into self-sustaining commercial cornerstones of a brand. Until now.
So what does it all mean for the future of our industry, and how should those looking to stay ahead adapt?