Loro Piana was originally a wool dealer who started as a textile factory that exported high -quality fabrics to Europe, Japan and America. Known for its extra-fine, Kashmir and Vikunja, the company only entered the market for clothing and luxury goods in the 1980s, but never regretted it.
When LVMH acquired an 80 percent share for 2 billion euros in 2013, Loro Piana was already an important company. Although the cashmere products were once more stubborn and especially on Asian consumers: the brand was geared, the brand offered a unique offer – one that was less susceptible to changing consumer trends and market volatility than many competitions.
Today Loro Piana is a still power package within the fashion division of LVMH. In 2023, the company generated sales of 2.4 billion euros and was one of the group’s strongest sales brands. With its extremely loyal customers and positioning in the ultra luxury segment, Loro Piana is more like Hermès than a traditional fashion house-a comparison that the new CEO Frédéric Arnault undoubtedly knows.
In contrast to other fashion houses, Loro Piana’s textile division remains an extremely lucrative company that supplies luxury fashion houses, private customers: inside, interior design: inside and the upscale gastronomy. The core business of Loro Piana has always been textiles and exclusive yarns, not finished clothing.
Growth opportunities
Of course, this offers considerable growth opportunities. Some argue that Loro Piana has the potential to become the Hermès of the LVMH modes division. In contrast to Hermès, however, the company lacks a characteristic handbag – a formative product that increases desirability and resale value. Accessories, especially handbags and shoes, could be important growth drivers if implemented more precisely.
It is noteworthy that there is no star design talent behind Loro Piana’s prêt-à-porter collections. The company has deliberately held back in its attitude strategy, used a product manager instead of an artistic management and worked seasonally with stylist: inside. Paul Surridge, who previously worked as an advisory men’s fashion designer, left the company recently to lead men’s fashion at Prada – a remarkable loss for the brand.
Mr. Arnault could tighten and realize the design and product teams of Loro Piana to promote synergies and efficiency- which not only increases the profit, but often also leads to a more uniform creative vision and more satisfied employees: inside. However, his greatest challenge will be the maintenance of sustainable growth. Like Hermès, Loro Piana has to prioritize the moderate long -term expansion compared to trend -driven hype and avoid a rapid ascent like that of Gucci under Alessandro Michele.
The subtle marketing and the controlled production of the brand have already created an Aura of exclusivity, similar to the Hermès-Birkin strategy, in the scarcity. Craftsmanship and discretion are still in the foreground. Although recent cooperation with brands like New Balance have increased the attractiveness of the brand, Loro Piana has to make sure not to take over. Too aggressive expansion could undermine the exclusivity – a risk that LVMH wants to avoid.
Prince design and positioning remain decisive. Loro Piana Kashmir sweater is available from around 1,000 euros, handbags from 1,900 euros. Some coats cost over 10,000 euros and thus position the brand in the ultra luxury segment.
However, Hermès has a much stronger global presence and a more diverse range of products that includes leather goods, scarves, household goods and more. However, Loro Piana is more of a niche and is rooted in its textile tradition. The question now is how Mr. Arnault will promote growth and at the same time preserve the DNA of the brand – and whether Loro Piana can actually establish itself as a rival of Hermès.
This article originally appeared on fashionunited.uk and was translated with a AI language.