Loro Piana S.p.A.

You will still need mega brands because people just love entering these huge stores and seeing many, many other customers carrying the same product that they want.

You will need also smaller, more elite, let's say, brands like we see today with many successful brands like Loro Piana.

I'm very optimistic, and I feel that our sector is maybe suffering a little bit now, but will absolutely be on the upslope very soon.

And that day, LVMH Group will be ready with every single one of its maisons to capture that growth.

She says despite the issues, some smaller so-called quiet luxury labels are outperforming Louis Vuitton, Dior, and Gucci.

Cucinelli or Loro Piana, they are both Italian brands.

They are cashmere, uh, you know, focused brands, and they are not, let's say, um, as, uh, bold maybe and extravagant as some of the others.

So this quiet luxury, this sort of understated type of luxury is faring better in this very difficult environment.

And while LVMH looks like a more diversified bet comparatively against Hermès with more than 75 brands, these so-called Maison across five segments, LVMH is also quite concentrated in some ways too.

And the most important segment is unsurprisingly, fashion and leather goods, which consists of Louis Vuitton, Dior, Loro Piana, Celine, Fendi, and others like that.

And so then in the wine and spirits business, you've got Moët, Hennessy, and, and Dom Perignon, perfumes and cosmetics as well, watches and jewelry, and that includes Tiffany and Bulgari, and what they call selective retailing, which is basically Sephora plus the sales that they do duty free at airports.

And so it sounds very diversified, but really, fashion and leather goods make up almost half of all their revenues, and 75% of their profits.

So times are difficult.

Interestingly, a brand like Laura Piana, which is one of the most expensive ready-to-wear brands in the world, They grew double digits this year.

This shows us that wealthy customers, they're still spending.

However, everyday luxury shoppers, and I will come back to what this is, they are pulling back.

And Miu Miu is another brand, aside Laura Piana, who is winning through this slowdown.

So no wonder we're seeing a lot of free public moments and also a lot of free public moments being focused on lower... price point entry products so we're talking fragrance we're talking beauty products that people can actually afford so who is the everyday luxury shopper that is someone who is comfortable but not rich and buys luxury every now and then so let's say a bag a year prices have gone up so much in luxury so that a lot of these everyday luxury shoppers they've stopped buying completely The really wealthy, the buyers of Laura Piana that I just referenced, they haven't really noticed.

So they're still spending.

So luxury isn't down fully, but it's split in the middle.

Definitely.

In fact, I didn't touch on it, but in addition to everything that we're doing, we're very strongly aligned with LVMH, Loro Piana, your list goes on because in Namos Mykonos, we have a concept called Namos Village.

And the retail component of Namos is very, very strong.

So in each of our destinations, we will have a retail component as well, where we work with some of the most prominent global brands, but equally we draw on local brands as well.