The new creative director didn’t use it. 128-year-old Lanvin got into a very bad state.

Although the fashion circle has become accustomed to the creative director's coming and going, nothing is more controversial than Lanvin's high-level changes two years ago. Alber Elbaz, the 54-year-old Moroccan designer who was then the creative director of Lanvin, had just finished the 2016 Spring-Summer Women's Wear in Paris and received the “Superstar Award” from the International Fashion Organization. However, he suddenly received news of being dismissed. He replaced him with the high-profile designer Bouchra Jarrar, who is known for his minimalist design, on the grounds that “the concept has diverged and Lanvin’s profits fell by 2.5 million euros in 2015.”

Two years later, Lanvin's performance shows that relying solely on creative directors may not be able to save this 128-year-old French fashion house. According to the latest report from Reuters, Lanvin's sales fell by 23% to 162 million euros last year, only half of the peak period in 2012 (235 million euros). In the first two months of this year, its sales also continued to decline by 32%.

"The first series of Bouchra Jarrar's response was very bad and the second series was not as good as it was," said an anonymous person in an interview with Reuters. This led to Lanvin's first loss in 10 years last year, with a net loss of 18.3 million euros. The anonymous source also stated that this figure will increase to 27 million euros in 2017.

Lanvin did not respond to this data. However, the 300-employee company has already found a consultancy called “Long Term Partners” and hopes to cut costs by closing non-profitable stores, reducing advertising expenses, and dismissing nine employees.

In the context of the general recovery of luxury goods, such news is somewhat surprising, but it is also reasonable.

Lanvin by Alber Elbaz

Lanvin 2017 Early Spring Vacation Series

Lanvin 2017 Spring Wear Collection

Unlike brands such as Gucci and LV, Lanvin is one of the few European fashion houses that have yet to be acquired by the luxury goods group. In 2001, Taiwan businessman Wang Xiaolan bought Lanvin's men's and perfume business from L'Oréal Group and quickly took power. At the time, she had recruited Alber Elbaz, the brand's creative director who had just been fired for the acquisition of Yves Saint Laurent by the Kaiyun Group, and asked him to redefine Lanvin.

Alber Elbaz has established Lanvin's later iconic design style since the second quarter of 2001. In the words of Virginia Smith, Vogue's marketing director, from the behind-the-skinned zipper to ribbon lace, emphasis is placed on "a flawed aesthetic."

In the luxury goods industry, successful companies need a successful partner of creative director and CEO. During his tenure with Alber Elbaz, Lanvin experienced two CEOs, Wang Daniel, and two CEOs, Paul Deneve (2006-2009), president of the French brand Nina Ricci, and Thierry Andretta, former CEO of Moschino (2009-2013). By adjusting the brand's wholesale and retail channels and laying out stores, they brought Lanvin's turnover to 240 million euros.

Bouchra Jarrar, creative director of Lanvin since March 2016

However, the frequent flow of executives has always been a deadly issue for Lanvin. Wang Xiaolan, 75, is considered to be a "dictator". She is unwilling to accept acquisitions, is unwilling to invest more money for the brand, and is not willing to do so.

German investor Ralph Bartel is the director who has the most shares (25%) in Lanvin outside of Wang Xiaolan, but he is also not allowed to inject capital into Lanvin, "because this will dilute Wang Xiaolan's equity."

In a letter to management and employees, Elbaz also mentioned this - "Lack of effective business strategies and investments have led to the stagnation of company performance." This view was supported by many employees at the time.

In addition, Lanvin is still a clothing company, lacking a strong accessories business. Its clothing and accessories revenue ratio is 60/40, and even once insiders said that the ratio may reach 80/20. This means that Lanvin can hardly grow, like other luxury brands, from the most lucrative and most widely covered accessories business.

According to Reuters, management seems to have only thought of expanding its leather product line to increase profits, but the channel they choose is a little bit "impatient" meaning outlets and discount stores rather than high-end shopping centers. .

It is difficult to say that this approach will not let Lanvin fall into the existing problems, but also fall into the risk of brand cheaper.