How Fashion Megabrands Will Adapt to Post-Pandemic Life | The Business of Fashion Show

Francois-Henri Pinault of Kering and Bruno Pavlovsky of Chanel reveal to Imran Amed how their brands will connect to customers whose habits may be forever changed by the pandemic. Along with industry expert Angelica Cheung, the luxury CEOs say that they will be ready when the tourists return to global shopping hubs.
Visit www.businessof... for fashion news, analysis and business intelligence from the leading digital authority on the global fashion industry.
#BusinessOfFashion #Pandemic #BloombergQuicktake
--------
Like this video? Subscribe: www.youtube.com...
Become a Quicktake Member for exclusive perks: www.youtube.com...
Subscribe to Quicktake Explained: bit.ly/3iERrup
QuickTake Originals is Bloomberg's official premium video channel. We bring you insights and analysis from business, science, and technology experts who are shaping our future. We’re home to Hello World, Giant Leap, Storylines, and the series powering CityLab, Bloomberg Businessweek, Bloomberg Green, and much more.
Subscribe for business news, but not as you've known it: exclusive interviews, fascinating profiles, data-driven analysis, and the latest in tech innovation from around the world.
Visit our partner channel QuickTake News for breaking global news and insight in an instant.

[@malcolmb6126]

Pretty sure that Angelica is the inspiration for Edna and The Incredibles. I can't unsee it.

[@jag5798]

I found myself to change my wardrobe & buy more neutral colors, less print and mixing my solids with scarves to change up the look, like men do with ties.

[@vishekpoudel3290]

Who else clicked this just see that building ?

[@WatermelonSugar1209]

These luxury brands use artisans in asia & many didnt pay those artisans. All the sequin work is done in india. We need to talk about sustainability and fair pay.

[@clashoflands]

True

[@TheBombson]

I think that's the case with fast fashion? Luxury brands manufacture is different but the supply chains of materials can be just as dirty yes

[@kavinanil7406]

In india in tamil language there is an adage, 'thoonila podurathum thoora podurathum onnu'. This means 'spending money in clothes is like throwing money away as waste'. This is totally contradicting to what the modern take on fashion industry's propopal of 'who you are is what you wear'. Humans need to live responsibly with what they are buying and how they are living for a sustainable future of life in earth. ♻ 🌍

[@leeboriack8054]

An amazing restoration, unbelievable the doors were to open as the pandemic began.

[@KnozD]

Imran is the man. Love his commitment, attitude and topics. Really shows the man's values. 👏

[@endi4654]

How they adapt? Putting focus on Chinese customers. Sums it all.

[@ShaddeyNNM]

I lean towards Chanel's approach in this sense

[@br88dy]

I shop at Target. Pronounced “tar-zhay”

[@ryuuseiboi950]

I'm more of a Walmart guy myself. Pronounced "Wahl-maa"

[@alabamaslammer3921]

I love to get my clothes from Zébac of a Souspeciousalleé

[@user-cf8ki8wc1c]

lol I shop at walmart pronounced "wah-mazh"

[@lwilmoth1573]

@@ryuuseiboi950 lol

[@thepeff]

I shop at Rhaüss

[@sofiya9212]

What you wear doesn't say who you are! It's a concept developed by fashion brands to make you buy goods you don't need !

[@msi8311]

Clothes don’t say who you are but a lot of people will express themselves with clothes, which can be beautifully done.

[@antoine8306]

Amazing quicktake as always. Keep doing - There is an edge to get from following the fashion industry

[@CC-si3cr]

I have always found the industry of luxury goods so fascinating! Plus Hayek's husband is adorable!

[@alexanderpons9246]

Great series of reports in the Luxury World! Interesting how CHANEL's approach varies from the rest, I guess ultimately they do their own thing and is a brand well established to do it their way.

[@shopgirl6183]

You saying that just shows you don't understand Chanel and its marketing strategy. Chanel and Hermes are family-owned luxury brands instead of groups like LVMH and Kerring. They take pride in their craft and are said to burn items that are not well made. Some of their items are also only sold exclusively at their boutiques. Their price point is way much higher than your Gucci and Fendi. That means they target consumers who are resilient to the pandemic and are thriving. Those who go in to brick and mortar stores and have the stores closed regardless of whether it's a pandemic or not. VVIP high net worth clients. That's why they can have the independence to do things their way and still not worry about profits. They are playing the long game here.

[@alexanderpons9246]

@@shopgirl6183 Thank you for explaining that to me, it makes complete sense the way you broke it down!

[@CC-si3cr]

@@shopgirl6183 Yes, these brands are heavily monitored, but you CAN also buy them in those brick and mortar stores you just spoke about so disparagingly. No one can buy a coveted Hermès Birkin @ Saks or Neiman's, but you can buy other Hermès leather goods. Chanel sunglasses and ready to wear are available outside Chanel's boutique stores. However, I wouldn't take too much pride in owning either of these brands considering how these family owned companies lack inclusivity. Sure you can go to their websites and see models of color, but how they treat their customers of color is another story.

[@giannaluna7536]

I clicked the video because of the title, cause I thought I was going to hear some form of analysis of this new weird reality from these brands, and maybe perhaps even hear them talk about how much or how little of their business can be modified to respect the environment as seen from forced changes due to Covid. Instead, I just saw a video of a well researched and informed interviewer being given non-answers for 20 min straight. Saying they'll be waiting for tourists when they decide to come back and that it doesn't matter in the long run is just dissapointing.

[@jessieadore]

Thank you for this comment because that’s already what it felt like 2 min in and you saved me some time.

[@williamy45]

The video spent the whole 21 minutes only on one market for fashion megabrands.

[@Rice_Cake_]

I gotta admit, this kinda makes me sick. This industry's values are so toxic when looking through the lens of humanity

[@TheBombson]

and the few families and corps owning all of the "diverse" brands really hammers the nail in that coffin

[@javiera2500]

imagine all the waste luxury brands produce through slashing and burning

[@rainydays999]

The next generation of the 1%ers!

[@ATRTAP]

If it “kinda makes you sick” maybe you should go see a therapist.

[@TheBombson]

@@ATRTAP therapists would likely have more to say about compulsive shopping which 3-5 fashion collections a year from these corporations capitalize on… You might have cultivated reasons to defend high fashion but as Joel stated it’s values have become more toxic than cultivated in every way.

[@TJ-vl1ff]

"Fashion" is an example of whats wrong with the entire current global economic system: Materialism and vain consumerism at the expense of the earths resources and environment.

[@williamy45]

Expect 'extreme' materialism to be a future target of CCP, when they want to rein in the flashy wasteful spending of the super rich, to re-distribute their wealth to society through donations and social enterprises. Luxury brands should take note and get prepared.

[@aritragupta4182]

@@williamy45 I suspect the CCP have loftier goals than forcing their youth, who are the engines of spending growth, to forego Dior bags (or whatever it is that Dior sells; I'm not really big on fashion myself) There's a difference between middle and upper middle class youth, most of whom have created their own wealth on a regular basis, splurging on a luxury item or two... ...and ultra-rich individuals who created magnificent products in the past but currently see most of their income generated passively, build personal empires of wealth.

[@skyak4493]

Fashion is like racism -but even shallower. Racists judge by skin, fashion judges by clothing.

[@houcineboudjeniba9574]

Thank you so much for the amazing work that you are doing

[@natsukashiiohayo1150]

I love the imaginative and creative side of fashion but learning how destructive it is to the environment and people, I just feel that it is time that it should be scaled down but that is not the case here.

[@MIOLAZARUS]

I thought the same. It seems so irresponsible.

[@Rice_Cake_]

Very true. We're forcing huge cuts to the energy industry, which is messy but essential for every developed society, yet the energy protestors will drive around in their SUV's wearing designer clothes without caring about their impact.

[@kingk2405]

Not high end fashion but that is true for the rest .

[@QueenetBowie]

It’s exploding in developing countries, they have increasingly large incomes and huge populations so nothing to do but sit back and buy luxury stocks

[@kwokleongawyong2895]

@@Rice_Cake_ They are totally hypocritical. And these EU brand are going to street wear for directions. If I want US n Japanese street culture, why pay for these LV and bloody Gucci rubbish.

[@BarbaraSpainmarketingtrends]

Interesting to see how luxury brands are adapting to change,I would love to know more about luxury Chinese brands

[@annickkabeya3362]

Great documentary Imran.

[@kimberlyperrotis8962]

The headline said fashion, but the report is on luxury brands. This doesn’t apply to us, the 99%.

[@_we._.ha_1307]

The easiest way for the majority of the population to get a sense of fashion is through luxury brands which are now leading the fashion industry. So I see no reason why they will want to report on fashion without focusing on luxury brands like what you have said, unless you think that fashion has nothing about brands. But no, fashion is about anything that is trending now, and the trends are being decided by designers and luxury brands. IE brands define what is to be considered as fashion.

[@dt8101]

read carefully. it says megabrands...

[@skyak4493]

It is absolutely amazing the proportion of spending by the youngest generation of Chinese consumers. This is the same generation that can't afford to have children or work in factories. Does all this spending power come from speculation?

[@angelinimartini]

The population is just so large that the percentage of monied youth is like the entire population of youth in other countries.

[@aritragupta4182]

What Angelini said. Plus as citizens of a rapidly developing economy, they may feel their energies would be better spent in work more advanced than factory work.

[@skyak4493]

@@angelinimartini I am not surprised that they are a major spending force relative to the rest of the world, but the statistic they show here is relative to the full population of China. The young adult population in China is disproportionately small due to decades of one child policy, yet their spending proportion is double that of developed nations. The only sense I can make of this is if it included real estate spending -"to buy a home you empty six wallets..." If the statistic in the video includes real estate spending, I have my answer and luxury brands have a problem.

[@angelinimartini]

@@skyak4493 disproportionally small, I might say,9 maybe. Gen Z, however, makes up over 200 million people in China though. So, that is still way more than the entire population of a lot of countries. And they do influence the spending of their entire families a lot of the time.

[@angelinimartini]

@@aritragupta4182 it’s amazing how well educated so many Gen Zers are in China. They definitely have increasing opportunities within their country and abroad.

[@lucyk.5163]

Both Kering and Chanel's CEO's told the same thing: human interaction is the basis of their ongoing success and a model of strictly automated e-commerce is not the answer nor their goals.

[@edwinbrace4681]

Imran Amed shout out to you, such a great video

[@chiefsofangels8057]

beginning of the end for Chanel

[@surgicalcapscom]

New World of Luxury

[@CoreyChambersLA]

The most appropriate fashions today are black tunics, jackboots and armbands a la 1930s Hugo Boss.

[@user-cf8ki8wc1c]

what a world these people live in

[@GreenKab]

Thanks for the video. I admit I would have liked a better look at the inside of the Samaritaine 😁

[@ForTheLoveOfSuits]

Great report informative and entertaining. Thanks.

[@marthahoffmann8674]

Very interesting and educational. Thank you.

[@myIGbin24h]

They need to check how Southeast Asian malls are operating. Malls in Manila, KL, Jakarta, Singapore, and Bangkok are all working as mini cities by themselves. Aside from shops, you can find sports centers, churches/mosques, government kiosks for various government payments, theaters, they are basically small cities and are centers of socializing

[@stephanebelizaire3627]

Bravo !

[@ericcarabetta1161]

Where are these people getting all this money?

[@viktoriaherzberg9519]

They mostly belong to authoritarian political establishment

[@sihamstakeon3445]

@5:20 Imran doesn’t seem impressed or convinced and I can relate 😂

[@annamariaferranti29]

Excellent perspective great information

[@maahof]

Such an interesting industry!

[@jamuojisan]

Will Adapt means they haven't? Like it's been 2 years now.

[@tafarakhsheikh1943]

Very interesting

[@RavarsenBlogspot]

I find luxury fashion concept kinda disgusting. Don't have an issue with the price but the culture associated with it.

[@Lost4llen]

thank you for giving a purpose to my life.. oh wait.. I don't care

[@gw3re]

@@Lost4llen yet here you are. Going out of your way to write a comment on the post.

[@bucknut2000]

What dont you like about the culture?

[@pretty_things_styling]

Love this series! (I love most of what BOF and Imran do!)

[@kagitsune]

I like the fantasy of a department store as a "home". It would be so enticing to see different items there every other week, with cafes and repair shops (!!!) to bring in lots of repeat local visitors. Imagine going in to get a heel cap replaced, and while you wait you find a beautiful new pair to take home too.

[@iat8329]

Funny, I thought by the title you will be talking about HM, Inditex, Shein, Mango, and other powerhouses. Brands that have larger purchase reach.

[@shopgirl6183]

Megabrands don't mean just larger reach. Even Adweek does not categorise Coke as a Megabrand and clearly, they have reach. Plus even with that definition, you are barking up the wrong tree. Inditex profits were $1.25B in 2020 while LVMH was $52B in 2020. Chanel, as a privately owned company, saw 10.1B revenue in 2020. To be a megabrand, a brand must have considerable equity and they must be able to transcend one category and "drive growth and efficiencies" across related product categories. Chanel has more than just fashion, they are also in beauty and jewellery. It's important to understand these business terms.

[@joeson7700]

Rich people Dress DOWN , so they WON'T be Robbed & survived

[@RileyCarswell]

anyone know what lamp is in the background when talking to Kering?

[@ATLIEN333]

Social media has pushed this new growth!

[@sourishsaha8067]

Fashion market is insane and more foolish than soft drinks and tech sector

[@ladykingadejavu]

Don’t buy things, buy experiences - things will perish experiences stay forever

[@blink182bfsftw]

I bet all these people crying in the comments about fashion's "waste" don't give a toot about their favorite hobby's impact. They'd probably explode if someone mentioned gaming or crypto being wasteful

[@sacvideo1998]

The waste is more at the fast fashion end of the market, no one is filling up landfill sites with Gucci and Chanel. Maybe the clothes are overpriced, but at least that hopefully means people aren't just wearing them once or twice and tossing them like a $15 top they bought from Shein

[@zackzada]

Beautiful and thoughtfully presented

[@scarletred8888]

This video asks how the fashion industry will adapt and continue to thrive post pandemic- the answer is no one knows. This industry is cleverly focusing on the aspiring (huge) Chinese population- the impact on the environment wasn’t even mentioned. Depending on tourists seems unreliable as It’s unlikely that tourism will continue as it did in the past 50 years -with people flying everywhere unhindered, leaving giant carbon footprints- the whole thing is so toxic and wasteful, this needs to stop.

[@erwinmanalad3632]

the title should be "How Fashion Megabrands will focus on CHINA post pandemic"

[@lotlotdg4300]

Now the the Genz affords and into luxury fashion but what they want is something unique or something someone else does not have ....thats a product that's hard to come by is there anything original anymore? There's only 2 types of consumers the can afford and can not afford ....as it was mentioned in the video luxury is a status...

[@TylerDeneuve]

Angelica is so sweet.

[@madonafashion217]

Amazing

[@giannaluna7536]

"how are you adapting to a post-pandemic way of shopping and a post-pandemic costumer?" "we're not."

[@Did.You.Forget]

Well done vid

[@lucasr4515]

I went to la Samaritan during Summer and they looked more then busy

[@metaversefashion890]

15:03 stats!

[@worldcitizeng6507]

I can afford these brands but I spend my $ on travel/experience new cultures. When I expire, I cannot take anything with me. The luxury brands knew that limited production leads to higher demand, and it also maintains quality VS these mass retailers. To the older generation's, buy luxury items are like investment, it doesn't lose value over time. Not sure about how the new younger generation feels. The Asian luxury buyers are all about showing off, they cannot afford to buy a house or luxury cars, or don't have a passport to travel around the world. So they buy luxury bags, clothes to pretend the lifestyle.

[@impressionsbygelay8617]

Even when I'm thrifting or shopping from the secondhand market, I try my best to stay away from 'made in china'...

[@nikita5662]

I prefer thrift store. I can get 5 shirts for 20$ . Its not what it says but how it looks.

[@lukerabin5079]

I can hope for nothing more than a complete rejection of mega brands where that brand is simply a tribal flag, rather than a symbol of delight in what that brand actually represents.

[@jsetennis9224]

I would never buy Louis Vuitton, here in the United States one sees all this women with their bags which 90% of them are knock offs, that has cheapened the brand.

[@jackilltxx9649]

6:53 Malaysia KLCC MALL

[@maliyok_fun]

Hermes please probably same strategy as CHANEL?

[@kimberlyperrotis8962]

Once these kids move out and have to pay their own living expenses, they won’t be spending all their pay on luxury items.

[@0neAutumnLeaf]

Brave of you to assume they will move out 👀

[@PHlophe]

@@0neAutumnLeaf yup a very bold assumption indeed. and another batch will consume fast fashion immedfiately after

[@inigojuancarlos]

Huh, you haven’t been living in China I supposed. It’s simply the most important, THE MOST IMPORTANT luxury market in the world.

[@TheBombson]

it's the families of the party officials they are secured for life unless the regime crashes of course

[@thisnthat7760]

Those "kids" are the only kids the parents have.. besides china have 4 hundreds million people who are "middle class". Now imagine that.

[@ArturoVilchez92]

So basically all these Italian luxury brands are owned by the French. France has a monopoly on luxury ? lol

[@jsetennis9224]

I try to avoid buying any kind of products made in China, they don't compare to the quality of products made in France, Italy, Spain.etc

[@benevolentrosegirl]

rename it : post pandemic Chinese consumers

[@JHayler7]

Same with Universities

[@NoirpoolSea]

"What we wear says a lot about who we are.." Well yes. Folks who spend money on luxury items as a signifier of status and wealth do indeed show exactly how shallow one's world view is. This is marketing 101.

[@jouleSansLoi]

Can we talk about that lady at the very end for a moment? Idk who copied who, but isn't that costume designer from The Incredibles?

[@scarletred8888]

Costume designer from The Incredibles was based on the real life costume designer Edith Head - so this lady is the copycat!

[@chengyiq3066]

6:53 This is in KLCC, Malaysia, not China

[@chengyiq3066]

7:18 too

[@philvesnik3941]

The word luxury sounds so 2000. C’mon it’s almost as bad as the Fusion cuisine. Luxury. Paris Hilton vibes. That’s hot

[@coding7196]

The Chinese may as well "design" the clothes because the styles are not changing.

[@vasyaandrushka7349]

i've seen nice and very well made fashion in TaoBao, you just go to Paris for the clout and branding

[@di3393]

ofc the designer items are beautiful and durable eveyone would love to own them.. but people using it as status symbol is just so sickening.. if you want to show it off you will get 0 attention from me but if you are using it to express your style you have my respect

[@ATRTAP]

Kering is making a mistake by prostituting their products online, Chanel is not. Exclusivity is what drives luxury fashion, profitability and lifetimes of use vs next year’s landfill, not diluting it for short term gain. Look at Burberry. Do I demonstrate wealth or weakness with that brand?

[@Iquey]

Health is more important than clothes.take care of your body, and everything you wear will be fashionable. Look how much money Kanye's Yeezy and Kim's SKIMS are raking in, and yet they sell mainly flesh tone and neutral products.

[@dekujzg]

I wonder how all these young people can afford to buy a sweater for couple of hundred dollars, luxury bags and all these others self-esteem increasing items 🤔 I couldn’t do that in my mid-20s as a poor student

[@danielng7795]

There are most likely taking out loans, using their parents money etc to pay for this. Also, it might not be about being able to afford a luxury item but the pride it comes when owning a luxury item. That means that if you have more luxury items, you will have a higher social status.

[@msi8311]

You are not the offspring of a Chinese family making more money than ever before. The people you’re talking about are.

[@danielng7795]

@@msi8311 Yes you are right, but also they are many people who take out loans just to buy stuff. I'm just letting others know that although they are many rich families, they are people who take out loans. It's in the news all the time, so called influencers renting a hotel room/luxury cars just for photos. But anyways, just simply stating that there are a possibilities of people taking loans.

[@DoeDonDoe]

Why is the Editor in Chief of Chinese Vogue doing an Ana Wintour haircut? This is American Vogue appropriation. Very racist.

[@TheBowgo]

8:50 starting from her haircut, she is exactly the copy/past of Anna Wintour but made in china

[@suneelkumarkinthali35]

🤩🤩🤩

[@OracleofDelphiTarot]

Luxury used to be exclusive it lost it's value and view of social position

[@lauragwillim1055]

Ikr? Everyone and their dog has a Chanel classic double flap.

[@inigojuancarlos]

That Chanel CEO is soo snotty and think that customer should be following how they laid out..oh honey, if you don’t follow consumer then you’ll be in relics in the decades to come.

[@kiwigirljacks]

How are Gen Z affording luxury brands?! Are they going into debt to feel part of the elite? 🤔

[@Maria-gd4vf]

I wish I had that Chinese money

[@msi8311]

It comes with the cost of severe governance surveillance

[@kimberlyperrotis8962]

You need to shave everyday, Bruno. Just look at the gentleman you interview, they all do.

[@kaykay1570]

They?????

[@msi8311]

@Kay Kay They, the businessmen with the shaved beards interviewed by the unshaved guy. Businessmen, plural, they is appropriate and correct.

[@Quizzy_Arena]

🤘🤘

[@Dwadasha]

जय श्री राम

[@PavlosViscacha]

My Mum buys my clothes because I have body dysmorphia

[@purpleapple8255]

It’s the Chinese everywhere now.🙄 2 decades ago it was the Americans 🙄urghhh….

[@evil1knight]

Who cares so pointless

[@smitp499]

first world problems exaggerated

[@kimingay6244]

I'm a Chanel perfume fans ,LV,Gucci, Alexander McQueen Balenciaga's, Versace's, Dior , Lacoste, Burberry ,VLGari, and so many many more in my records files and history's in my 20 years century's in central banks of the Philippines ..

[@kaykay1570]

Gross

[@Impaled_Onion-thatsmine]

I don't like it and they just don't care.

[@Labodyjr2]

🤮

[@Gatto119]

Chanel is quite arrogant