The American fashion companies Authentic Brands Group (ABG) and Saks Global announced their cooperation under the name ‘Authentic Luxury Group’ in 2024. During the World Retail Congress in London, ABG CEO Jamie Salter and Richard Baker, Executive Chairman from SAKS, announced more information about the cooperation.
The double interview, which was led by the congress moderator Steph McGovern, unveiled, among other things, that the collaboration between the two companies was in preparation for about twelve years. It took a long time to get everyone on board globally at SAKs. However, it was recently clear that cooperation was necessary, not only for the two companies, but according to their own information also for the US industry. “We had to do it, otherwise no American industry would remain.”
Salter said that he had wanted to get into the luxury and premium industry with Authentic Brands Group for a long time. “With us for years everything was all about sales, and if you want to get into the luxury industry with your brand portfolio, then you also need a sales channel.” So he had the brands of Saks Global in the eye – Bergdorf Goodman, Neiman Marcus and Saks Fifth Avenue. It was only when it became clear how much the consumer: inner landscape is changing, everyone at SAKs recognized that they can also benefit from the collaboration. “There is a synergy of $ 600 million between our companies,” said Baker during the event.
The top managers stated that there is an industry in which too many discounts are granted, there are too many suppliers: inside and there is not enough margin. This is not durable in the long term. Within the joint venture between Saks and Authentic Brands Group, hundreds of suppliers are removed: poorly performing brands are repelled inside. The company rises more out of the private label business and puts premium partnerships.
The connection to Amazon is also part of the new partnership. Saks opened its own web shop within Amazon. Although Amazon is currently not directly associated with luxury items, Baker believes that this will “feel natural” in five years.
This luxurious feeling of Authentic Luxury Group is to be reinforced by entering the world of luxury houses and hotels. Some are currently in preparation, according to the managers. These accommodations are a complete Saks “Look-and-Feel”. “When on a building in Bangkok it says that it is a SAKS building, the US expats immediately know that it is a luxury residence.”
After the duo interview during the World Retail Congress, it is clear that the two have big plans for Authentic Luxury Group.
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