Retail Rundown: Luxury Notes, Rhode Blush & new Beauty innovation

Luxury + Innovation + Trends

Jun 11, 2024

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The Rundown:

Chanel Thoughts

There is obviously a lot of interest, chatter and speculation about what led to Viard’s exit and what is next for the brand (or rather, who is next? Slimane? Burton? Scott?) But I’m here to breakdown a few recent (fantastic takes) articles that have come out. After my notes I’ll link to the articles if you want to read in full. Retail Diary notes first:

Current Business Strategy:
- First, this is a big big business! Chanel is the second biggest luxury brand doing $20 Billion in revenue LY. The Creative Director role(s) here is incredibly important.
- Focus on reinforcing Chanel's status as a purveyor of timeless, investment pieces (positioning itself as an "absolute luxury" brand like Hermès)
- Emphasis on continuity, heritage, and perpetuating savoir-faire (craftsmanship)
- Prioritizing commercial success and fueling sales growth through approachable, wearable designs.
- Worth noting that Chanel CEO Leena Nair has a strong business background rooted in HR. She is looking to operationalize and improve the company culture. A Creative Director with an outsized personality and their own vision could challenge that. Curious how that will factor into the selection of a creative successor.
Opportunities:
- Potential expansion into menswear (possibly with a dedicated menswear designer) I’m really into this idea for the potential crossover for style inspiration but also this would be really great for the business launching a new category.
- Exploring new creative configurations (ex. multiple designers like at Hermès or Louis Vuitton) So perhaps a designer who focuses on handbags, another for RTW, etc. Personally I’m thinking on this one more to figure out how I feel. For Hermés it seems to work well but I don’t want the design to feel disjointed at Chanel and I think it could easily teeter in that direction.
- Bringing in a transformational creative director to revamp the brand's image and serve as a charismatic public face. Viard has been more behind the scenes but Lagerfeld was such a force for the brand.
Challenges:
- Finding the right balance between continuity and innovation. I would love to see what innovation could come from Chanel.
- Maintaining brand prestige and exclusivity while driving commercial success. There is a lot to balance between perceived level of luxury (let’s face it, there is Hermés level and Gucci level. Both are luxury but feel like different levels) and also the pricing breakdown. We have to be reaching a ceiling where demand for the products falls off when it gets to high. Someone needs to be super strategic in monitoring this. Also, monitoring the cadence and timing of when the price increases roll out.
- Navigating the transition to a new creative director smoothly. Do they take their time to name someone new, or is this quick and seamless. If the timeline is longer, what happens between now and the announcement?
Why now was a good time for Virginie Viard to Leave:
- According to the articles, her designs lacked surprise, innovation, and a strong authoritative vision. The last couple of runway shows did have very poor reviews and were not well regarded.
- Criticisms of her work being too conventional, aging, and lacking fantasy/technique. I also think to have continued the legacy of Lagerfeld, perhaps we were just ready for a complete overhaul rather than a continuation of the same.
- Inability to push boundaries and create aspiration/desire for Chanel's clothing
Virginie Viard's Legacy:
- Provided continuity and stability after Karl Lagerfeld's death
- Helped fuel surging sales and revenue growth (ready-to-wear sales increased 2.5x) and managed through the pandemic, a time when certain luxury items were certainly not needed (even if the desire was still there.)
- Maintained Chanel's codes and heritage through a more approachable, contemporary lens
What's Next (Short-Term):
- Chanel will rely on its studio team for the June 2024 couture collection
- Widespread speculation about potential successors - this is a fun conversation to have and dream of what direction the brand could take.
What's Next (Long-Term):
- Appointing a new creative director with a strong vision and ability to reinvigorate the brand
- Possible expansion into menswear or adoption of a multi-designer structure
- Continued focus on reinforcing Chanel's status as an "absolute luxury" brand
Articles to check out: Cathy Horyn for The Cut “Chanel Needed a Change”, BoF “How Will Chanel Pick a New Designer?” byt Robert Williams, Rachel Tashjian in the Washington Post “Does it really matter when a designer leaves a high-fashion brand?” (gift link to read behind paywall)
PS Becoming Karl Lagerfled is now available on Hulu. I just started watching so no review or thoughts from me yet.
What you thought:

Poll from last week’s Retail Diary

Hermés

On Thursday June 6th Hermés held it’s first new Women’s Collection Runway Show in NYC. It was the first time it was ever outside of Paris to debut a collection. This decision to show in NYC reflects just how important the American luxury consumer market is for the brand.

Women’s RTW Designer Nadége Vanhée was a designer at The Row and lived in NYC, furthering the NYC connection. While the clothes felt serious and put together they were still fun and whimsical from the colors. There were plenty of the iconic images and silhouettes in the show (even if the whimsy came through the new ways of showing - the belt bag.)

Check out the stories and images in W and Rachel Tashjian in the Washington Post “Why Are Americans Mad for Hermés”

Luxury Recaps

For more on luxury consumers today, this is a great podcast listen from Vogue Business “Catering to Tomorrow’s Luxury Consumer.”
We’ve seen cruise collections and a focus on more athleisure looks from Chanel, in Monaco, Dior tartans in Scotland, Balenciaga bold architectural looks in Shanghai and these events from the Parisian mega fashion houses bringing interest to Paris and the Olympics. “Before the Olympics, the Fabulous French Fashion Flex” by Vanessa Friedman for the NYTimes.

Beauty News

Rhode has us blushing - they know their audience and in launching the new Pocket Blushes they created a great PDP where you can buy the full set. All 6 shades for $130 (vs regular price of $144, a 10% discount.) This is really smart for Rhode to do because they know the customer wants to try all the new shades and they are the cute tiny size. The names are really fun (“Sleepy Girl” might be my favorite but “Freckle” really touches the current trend and “freckle” plus “blush” could be a strong SEO play.)
- They are leaning into the tiny aspect by advertising as “on-the-go” and it will certainly be popular to have this poking out of a pocket.
- The tiny aspect also feels collectible. I can’t wait to see the PR packages for this.
- Multi-task by using on cheeks and lips, they conducted a 32 person clinical trial resulting in being able to say the blush stays on for 8 hours and 3 out of 4 participants said it feels hydrating.
- I love the treatment of the site and instagram to highlight the wash of the pop of color from the blush.
You can read more about the Rhode Pocket Blush from WWD here and this Glossy article hinted at Rhode’s future expansion of more color cosmetics with the tagline that is popping up “one of everything really good.” Which made me then spiral 🌀 and think of the story about Bobbi Brown launching lipsticks with her first cosmetics brand. She launched with 10 colors and marketed as the only colors that were needed - but the truth was that she was limited in the colors she could afford to launch with and would later expand as the business grew.
Partnering with the relaunch of the OG Balm Dotcom from Glossier, the brand launched their new “neutral” range of lip liner shades. The hydrating lip pencils took their shade matching from (I can’t believe I’m typing this) nipples. Now I’m blushing. I haven’t had a lip liner I’ve liked in awhile so perhaps I should try the Glossier ones. Love this Instagram content of the mood board and colors.
Anyone else spotting the numerous beauty brands launching to target the 40+ woman?
- Brooke Shields’ new Commence hair care line. Shields has been modeling since before she was a year old. She is also following the “online community to ecommerce site/brand.” Finally, this is also following the trend of more hair care lines launching (commencing…)
- Sarah Creal Beauty - and while her name might not sound familiar, she has worked on some of the most iconic products and brands; Victoria Beckham Beauty (was the CEO through 2022), Aerin Beauty, Prada Beauty, Bobbi Brown, Tom Ford, etc. Another new brand where the products look amazing, the names are great. Creal knows beauty so let’s keep an eye on this brand.
- For more insights on the mature customer, Glossy featured an article last month “How Brands are Successfully Reaching Women over 40.”
Chloë Sevigny launched a new fragrance, Little Flower with indie perfumer Régime des Fleurs. (Note, this bottle is beautiful! So vintage and delicate but I’m also noting the bold round topper that I’ve been seeing a lot in beauty. See here and here.)
Innovation in sunscreen, the Vacation Inc. Shake Shake SPF 50 has a unique “Shakerball” inside to help mix the product.
Loved this beauty podcast with Gucci Westman and her husband and business partner David Neville (also the Co-Founder of Rag & Bone) on Business of Fashion all about Westman’s background and journey to beauty Founder as well as why they started with a matte lipstick (note - I love this lipstick!) vs a glossy. It is a great quick listen on a hot beauty brand (expected to be acquired.) I also highly recommend the blush (I have a couple of shades) and I wear this in the Biscuit shade.

DTC Founder’s Recommendation for Bootstrapping

On Instagram Stories someone asked Hill House Home’s Nell Diamond “bootstrapping sun apparel company, launching D2C, which go to market would u suggest” and I liked the answer so I took a screenshot. Here are the notes:
- Nell: If I were launching a small biz next month I would focus on finding around 5 content creators with a natural interest in my product category, and brand alignment from an aesthetic perspective.
  - Notes from Sarah (that’s me): I love this advice. You should be so tapped into both the marketplace, competition and your brand that you can easily think of your ideal/dream partners. You should have something amazing and unique to offer them in terms of a new product vision that makes them excited to partner with you.
- Nell: I’d get them excited about the product and incentivize them to create content about it leading up to launch.
- Nell: I’d also use my own channel (even if it’s small and only friends follow you) to drum up excitement and take people behind the scenes for launch.
  - Notes from Sarah: you know I would love this part. I always enjoy a peek behind the curtain.
- Nell: Then I’d plan some sort of in-person activation on launch day - a trunk show, a pop up, handing out gift cards in a park - whatever gets you the product in front of people.
- Nell: finally I’d treat those first customers like your biggest asset - reward them for referrals, invite them to coffee - find out what they liked about your product, and keep doing it.
  - Notes from Sarah: Love this. Listen to your customers. Don’t be so tunnel vision that you aren’t looking or open to feedback and those first customers will likely be excited to help and love being in the know on something new.

What I’ve Pinned…📌

I took this screenshot from Allison Bornstein because I think the layering and ease is fantastic and the message is strong for how to recreate a look. Here are the pieces I used to recreate the look with items from my closet:
- The softest most comfortable shorts from Vuori (athletic but I’d wear casual too - the silky material elevates them.)
- My favorite sweater
- Basic white tshirt
- These flats (wrong shoe = athletic shorts + woven ballet flats)
- My everyday jewelry: this, a chain like this with this, and what I like to refer to as my fidget ring.
Another reason I likely was attracted to the look - it is an example of sandwich dressing. Dressy up top, casual in the middle, dressy on the bottom. A fashion sandwich.
NY Times Style Magazine did a super solid round-up of well made women’s button-up shirts (gift link to read behind paywall.) My favorites included are: Chava Studio, Attersee, Maria McManus, Flore Flore (the most fitted and tailored of the assortment) and Comme Si (but I prefer this navy color)

Trend Spotting…🎯

Earlier this season I mentioned the waist cinching moment that was going on…along with the Maison Margelia Couture popularity, milkmaid look is still trending.
- Spotted this new dress and it has the milkmaid waist cinch and gingham print, so it is nailing it on two trends at once.
Fall 2024 Jacquemus Runway Show was in Capri this week. Popular/trending colors spotted on the runway: butter yellow, turquoise, red (and in particular the combo of red + blue.)
Last week was the WSJ highlight of new ways to wear pearls, and pearls are a summer staple with graduation and weddings (and June’s birthstone) so now we have a highlight from Business of Fashion “Pearls are Undergoing a Fashion-Fueled Revival.” There are a bunch of edgy pearls in my round-up of classic jewelry here.
For Fall you are going to want red pants. Why?
- Reason 1
- 2 via Hermés runway in leather
- The pants worn by
  Courtney
  as # 3
- in case you need further convincing, the first hint of Fall I plan to grab these from Donni. If you like more of a wide leg Cos has these great pants and fancy pants red trousers on sale!
  - Plan to pair with this shirt for the pop of blue to get the hot pairing from Jacquemus. This is also a great transitional color way.
  - Or the always great white t shirt and chambray shirt (unbuttoned)
  - Suede button down shacket in butter yellow perfection from Toteme
  - Might as well throw in the tote too.

New Finds…🛍️

Posse at Shopbop and this mini aline is A++
This stripe got me excited for Fall.
Love the new color of the Khaite Lotus on exclusive access at Net.
Saw this Khaite beauty and love it to pair with denim or an all black outfit for interest, but then I also spotted this at The RealReal from Khaite and love that it would give the same impact.
Mini puzzle, perfect cross body.

What’s Next 🗓️

Tomorrow (Wednesday 6/12) we have a fun bonus send to get you geared up for summer travel. I’ll also be sharing some business thoughts on Instagram so let’s connect there too. I’ll be back Thursday with a Deep Dive including new product launch strategies (to tease or not to tease) and I’m spying some new store openings you should have on your radar - especially ahead of summer travel destinations.