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interface news reporter | chen qirui

interface news editor | lou qiqin

according to bloomberg, chanel'sWertheimerfamily and heir to the l'oréal groupFrançoise Bettencourt Meyersinvestment companiesTéthysrecently jointly acquired an american designer brandThe Rowminority equity. this isThe Rowthe first round of financing, other investors includeNet-a-PorterfounderNatalie Massenet。

The Rowall relevant investors did not respond. the brand's valuation after the financing was completed was approximately10in contrast, affected by the continuous decline in performance in recent years,2024fiscal year revenue29.68£100 billion british luxury brandBurberrythe estimated value is approximately21.2billion pounds.

since2006since its establishment,The Rowalways keep a mysterious attitude. founder and designerMary-Kate OlsenandAshley Olsenshe started out as a child star, but quickly retreated behind the scenes after the brand was established and rarely accepted media interviews.The Rowexist2024when the autumn and winter series was released, all invited guests were prohibited from taking photos at the show.

thereforeThe Rowthe exact size of the company is unknown. the financial times once said that its annual revenue was about2.5us$ billion to3billion, while fashion business mediaBusiness of Fashionthe estimated operating profit is approximately6000ten thousand dollars.Thom BrowneandAcne Studiosthe scale is3around 100 million euros per month.

the low-key operation strategy makesThe Rowdifferent from other celebrity-created brands. in order to quickly boost sales and increase popularity through fan groups, many celebrities tend to start from the mass market when creating their own brands, such asRihannaofFenty BeautyandKim KardashianofSkims, the former contains a large number of200yuan,300the average price of the latter is700about yuan.

howeverThe Rowthe price is shockingly high. in the hong kong boutique lane crawford's mini program,The Rownearly half of the handbags are sold at2more than 10,000 yuan, including popular itemsSoft Margaux 15the bag is priced at4.9510,000 yuan, the cheapest small modelBindlehandbags for1.01ready-made clothes are also expensive, a pair of straight jeans costs9600yuan, a cashmere coat costs about5ten thousand yuan.

in the luxury goods industry,210,000 yuan is usually the dividing point between entry-level and advanced handbags, and such asCelineandBottega Venetasecond-tier luxury brands have launched5compared with these brands that have been established for more than half a century,The Rowits popularity and value retention are obviously insufficient.

what's more, because of its small size and low value retention,The Rowonce considered to bePhoebe PhiloleaveCelinethe subsequent replacement, and2020after the outbreak of the epidemic in 2017, the company was on the verge of bankruptcy and nearly half of its employees were laid off.“back from the dead”,from2022the wind at the end of the year“old money style”it helped a lot, although it was not established20yearThe Rowin terms of duration, it is difficult to call“old money”。

“old money style”there is no unified standard, but most people agree that its characteristics are simple shape, inconspicuous or missing brand logos, exquisite craftsmanship and expensive fabrics, and mainly black, white, gray and brown tones.The Rowas the luxury goods industry cools down,The Rowthe high price that has always been maintained has become a symbol of its value preservation.

going further,The Rowin the past, it was difficult to expand on a large scale due to limited sales, but now the scarcity of stores has also become a reflection of its scarcity value.The Rowonly in los angeles, new york and london4we have 10 stores in the country, but we also sell worldwide through agents.

in china,The Rowmainly with lane crawford andSKPcooperation in chengduSKPopened the first independent store in china and opened in beijingSKPrecently, it has set up a flash mob in tianmu village, hangzhou.B1OCKopening independent retail spaces. apart from the collaboration with lane crawford, all other offline expansions in china were launched after the rise of the old money trend.

this explainsThe Rowwhy is it close to the establishment of20chose to accept external financing.

even as a designer brand born out of a celebrity,The Rowthe disadvantages in popularity and size meant that it was difficult to resist risks, and the impact of the epidemic brought it close to bankruptcy. although the popularity has been rising in recent years, no one can say whether the situation will change in the future against the backdrop of a cooling luxury goods industry.

leveraging on the opportunity to expand in emerging marketsThe Rowit is to find new growth points and to increase the overall scale and influence to enhance risk resistance. however, it is obviously difficult to achieve the goal by relying solely on one's own income.Thom Brownemore than100the store is inseparable from the parent company zegna group.The Rowwe also need to find external support.

existLVMHthe group2019after the announcement of the acquisition of tiffany in 2009, the wave of acquisitions and mergers in the luxury goods industry has come to an end. from the actual results, tiffany has faced growth difficulties before its transformation was completely completed.CoachandMichal Korsattempts to form a luxury goods group failed, such asChristoper Kanein this way, designer brands that were once acquired by large groups went bankrupt or declined.

of course, being completely dependent on large groups is not necessarily a good thing for designer brands.The Rowthe reason why only part of the shares were sold and why multiple investors did not choose to jointly acquire the entire company.Wertheimerfor the family and the l'oreal heir family, the acquisitionThe Rowa minority stake is more like an attempt to enter a new field.

when the dividends of the old money trend gradually fade away,The Rowthe bet is on the current consumer support for creative brands.Miu Miuone reason for its popularity is consumers' rebellion against the default values ​​behind the continuous price increases of top luxury brands, and people find freshness in some smaller brands.

butThe Rowthe biggest problem is that it is still a small brand and its popularity is much lower than many brands of the same size. it became popular because of its low-key luxury, but its value may be diluted as its channels expand. what's more,The Rowthe pricing is also difficult to make it popular in the middle-class market, but as a target for high-net-worth individuals“rebellion”the choice will quickly cause the growth ceiling to reach its peak.

forThe Rowfor the company, it has not completely gotten rid of its growth problems because of the resurgence of old money, but has faced more challenges as a result.