The Drop

curated insights: fashion, tech, beauty, wellness and biz

Nov 03, 2024

🌟 fashion🌟

PRADA GROUP: EXPLOSIVE GROWTH

Prada Group's explosive growth is driven by strong brand desirability, innovative product launches, and the impressive performance of the seductive Miu Miu.

Of course, their digital engagement is spot-on (they know their audience, no surprise there).

The biggest incognita for me is the reliance on virality that has propelled Miu Miu’s rise.

Is this strategy sustainable? And what impact does it have on their heritage?

It got me thinking about this:

PUIG: RESILIENCY AMID GLOBAL CHALLENGES

The image showcases what surpassing expectations looks like, in a sector that’s clearly facing challenges.

Let me explain Puig’s strengths:

Regional diversification with little exposure to China

Biggest growth: Europe, Middle East, and Africa at 14%

least exposure: Asia at just 1%

Product Portfolio and Innovation
- Driven by a diverse and premium product lineup
Tech focus
- Enhancing customer experiences and optimizing operations
- Highlights: Ai.lice & AirParfum (think of sampling countless scents without feeling overwhelmed!)

In the next few weeks, I’ll publish an in-depth analysis of Puig and its innovation ecosystem.

CHANEL: STAYING RELEVANT THROUGH ENTREPRENEURSHIP

Chanel, founded in 1910, is determined to stay relevant and outlast its rivals, a feat it has successfully managed for over a century.

How?

By investing globally in entrepreneurial partnerships and harnessing its Open Innovation division.

Chanel’s goal?

To think smarter, build better, and anticipate what’s next. Just like a startup.

Recent Partnerships?

Collaborating with StartX, Stanford’s alumni accelerator, where they explore AI, sustainability, and the future of work.

And they’re betting big on women. And it is strategic.

Why is this strategic?

Gen Z and Millennials are redefining luxury, linking it more to emotional and experiential elements than price tags.

And, of course, digital delivery is a must.

So, what is Chanel aiming to capitalize on?

We’re in the middle of one of the biggest generational wealth transfers ever, an estimated $84 trillion, with women expected to inherit 70% of that wealth (source: Cerulli Associates).

The challenge?

Funding for female entrepreneurs is still limited, mostly due to a historical lack of understanding of women-driven market needs.

However, this has improved, as more women VCs are stepping up and closing funds with 50% female LPs.

This presents an enormous opportunity.

With more purchasing power than ever, women seek solutions that match their needs and values.

Chanel positions itself as a forward-thinking brand by tapping into overlooked opportunities that deliver to 96% of its clientele.

I love how Leena Nair has been an avid spokesperson for more humanistic and less gender-biased AI solutions.

Let’s see how this pans out.

🤖tech🤖

SHEIN: BREAKING THE MOLD OF FASHION COMPANIES

The Chinese fast-fashion giant launched its first-ever branded credit card globally in partnership with Stori.

So, who’s Stori?
A Mexican fintech startup that recently reached unicorn status after raising $212M.

But here’s the coolest part:
Stori is all about tackling financial inclusion, boasting a jaw-dropping 99% approval rate.

“Our technology and underwriting allow us to give an offer for a credit card to anyone who applies, regardless of credit history, all through a paperless, mobile-first experience,” said Bin Chen, Stori’s CEO and Co-Founder.

But why start with LatAm?
Latin America is leading the charge in digital adoption, and Mexico is at the front of the pack. Last year, Mexico saw the highest e-commerce growth in the world (thanks, Atlantico).

Here’s the genius move:
In Mexico, a unique business trend is taking off. Small businesses are buying Shein products in bulk to resell them.

By introducing this credit card, Shein is not just offering financing to these small business owners; it’s locking in loyalty, boosting stickiness, and encouraging more entrepreneurs to choose Shein as their go-to distributor.

And here’s the kicker:

So, it makes sense that they are starting with Mexico, which has the potential to expand to countries like Colombia.

Only 24% of Mexican adults have credit cards.

Plus, Shein offers a more competitive interest rate of 40% annually, compared to the market average of 50%.

Why do I love this news?
Because for companies to really thrive, sometimes they need to step outside their core categories.

And that’s exactly what Shein just did.

I’m betting this is a strategic move for both Shein and Stori to expand their reach and eventually roll out more financial products, such as remittances.

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INDITEX: GOING LONG ON SUSTAINABILITY?

Inditex, the powerhouse behind Zara, just rolled out a $55M venture fund zeroed in on sustainability and innovation in the textile world.

Who's running the show?
Mundi Ventures is a global VC firm based in Madrid that backs early to growth-stage tech companies.

So, what’s the game plan?
Backing start-ups that are shaking things up with new materials and eco-friendly tech that can reduce environmental impact.

What makes this fund stand out?

Commitment to sustainability in the textile sector, focusing on materials and recycling tech.
Alignment with Inditex’s 'Sustainability Innovation Hub' and the brand’s larger sustainability playbook.
Ambitious goals to slash supply chain emissions by 50% by 2030, hitting net zero by 2040, and sticking to low-impact textile fibers by 2030.
Proven track record with investments in Circ, Galy, and Infinited Fiber.

Why should you care?

Why it matters: Inditex is playing the long game, redefining what it means to be a fast-fashion giant. This move is not just an evolution of the brand, but a strategic pivot that enhances brand value, strengthens customer loyalty, and aligns with consumers' new demand for transparency.

By investing in sustainability, Inditex is positioning itself as a future-ready leader that resonates with eco-conscious consumers and adapts proactively to shifting regulations.

Can an environmental villain become a sustainability hero?