How Madhappy Got An Investment from LVMH

In 2019, Madhappy, a streetwear label, received 1.8 million dollars of funding from LVMH. LVMH is a massive luxury consignment carrying brands such as Loewe, Rimova, Louis Vuitton, Celine, etc. — all high fashion, exclusive and expensive brands. Madhappy is a conspicuous outlier in this assortment of LVMH's brands as its product selection consists of sweatpants, hoodies, and t-shirts — hardly couture. This raises the question of how Madhappy managed to distinguish themselves in an oversaturated streetwear market and catch LVMH's attention.

Madhappy was founded in 2017 by four high school friends who wanted to create a brand that could spread a positive message to its consumers. The founders felt that people would resonate with this name, especially because they wanted to make positivity, Mental health, and optimism a central pillar of their identity.

Madhappy founders Noah Raf, Josh Sitt, Peiman Raf, and Mason Spector.

Madhappy founders Noah Raf, Josh Sitt, Peiman Raf, and Mason Spector.

Their first launch was discrete, offering only a couple of hoodies, t-shirts, and a hat. The only support they had was from friends and family. While it was online, the founders were aware that an essential part of fashion is letting customers see and touch the clothes, and thus they wanted to have more than just an online presence. This led to the launch of Madhappy pop-up stores just a month after the first launch. They hosted their launch party in LA, which allowed the brand to get a lot of exposure as people started talking about them, posting about them, and celebrities started wearing their hoodies. Equally, onlookers were intrigued by the name and the brand's identity. Beyond this, Madhappy made their hoodies recognizable by having distinct stitching on the hoods. This gave the brand even more momentum, showing us that one of the crucial elements for launching a brand is having a strong brand identity that distinguishes it from the competition.

The success of the initial pop-up provoked the company to continue. While brands usually only start having pop-ups when their brands are more developed and have a recognizable name, Madhappy decided to go the unconventional route and opened their first pop up a month into their brand's launch as mentioned before. After LA, their next pop-up was located in the Meatpacking District in New York. By 2019, Madhappy already had 11 different stores. Their store locations were aligned with their current collection and always located in young and fun neighborhoods. The success of their pop-ups meant that they could keep them open for longer. Two years after their launch, their stores began to stay open for at least two months. Additionally, with the funding received from LVMH, Madhappy now also has the financial means to run multiple pops up at once.

Beyond this, Madhappy is still rooted in its mission to raise awareness of mental health's importance. In terms of social media, this can be controversial as this medium is often the origin of insecurities. Nevertheless, Madhappy has made its online presence committed to spreading positive and optimistic messages. They also started a blog devoted to mental health to help viewers find advice and resources.

Madhappy has been hugely successful amongst young people and has a large celebrity following without paid endorsements. Celebrity approval today is one of the most effective ways to gain new customers. Nevertheless, while the founders think celebrity approval has helped their overall success, they likewise believe that many people who buy their products understand and are aligned with the brand's message.

Lastly, with the backing of LVMH, Madhappy has been able to open up new business avenues, such as expanding faster internationally or specific partnerships. The company is only three years old now, so the founders feel that there is still a lot to learn; LVMH is an excellent resource for this.

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Source: https://www.scmp.com/magazines/style/leisu...

The Rise of Jewellery: LVMH's $14.5bn Offer to Tiffany & Co

Although the global market for jewellery has been growing steadily for the past century (see graph below), it has seen a recent bump in demand as the world of fashion casts its gaze over it. The fashion industry is actively seeking to channel this growth within the realm of accessories, with supermodels like Gigi Hadid being the face of Messika and Bella Hadid as an ambassador for Bulgari.

Seeing this growing potential for investment, multinational French company LVMH - owning over 60 brands around the world - has offered Tiffany & Co $14.5bn with the aim of acquiring the company and expanding its portfolio further into the rising jewellery market.

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On One Side of the Deal…

LMVH Moët Hennessy – Louis Vuitton SE, commonly known as LVMH, is a French multinational luxury company. It was formed in 1987, under the merger of fashion house Louis Vuitton with Moët Hennessy, a product of champagne producer Moët & Chandon and cognac manufacturer Hennessy conjoining. 

LVMH directs around 60 subsidiaries, each overlooking smaller prestigious brands, yielding over $46bn in annual revenue. With 40.9% of company shares, Christian Dior SE holds the majority of voting rights, playing a pivotal role in the decision to acquire jewellery brand Tiffany & Co. 

On the Other Side of the Deal…

Tiffany & Co, informally “Tiffany” or “Tiffany’s”, is an American luxury jewellery retailer with HQs in NYC. The brand markets itself as a determiner of “taste and style” (Via), often mentioned in popular culture, most famously in the 1960s classic Breakfast at Tiffany’s.

What’s in it for LVMH and for Tiffany? 

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Via

When it comes to fashion, the global jewellery market is on the rise, topping a 7% growth in 2018 and valued at around $18bn. “Tiffany, with more than 300 stores globally, is one of the world’s largest jewellers, along with Cartier and LVMH-owned Bulgari, but it has been unable to keep pace with European rivals” (Via).

Despite recent efforts to diversify its target market, including the launch of new products and pop-up stores worldwide aimed at attracting same-sex couples, minorities and younger customers, Tiffany has seen a steady slip in both US and Asia sales.

As noted, LVMH already has some presence in the jewellery and watchmaking market, owning brands such as Bulgari and higher-end Harry Winston as well as Hublot and Tag Heuer. Acquiring Tiffany would represent another step in gaining market share in the growing subcategory of fashion.

The deal would result in increased US presence for LVMH and a strengthening of Tiffany’s product line, since “LVMH could use its deep pockets to develop product lines where Tiffany is weak.” (Via)

Looking to invest in some new accessories this holiday season? Make sure to keep an eye out for the upcoming jewellery launches, since consumers will be spoilt for choice once Tiffany’s competitors set in motion their own product proposals.  

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Source: https://unsplash.com/photos/h8VTlxShiWI

Don't Boycott LVMH—Fashion Jobs Are Coming to Texas.

Following the grand opening of Louis Vuitton’s new factory in rural Texas, the conversation should be about jobs. After all, 150 employees currently work in the facility. And within five years, the factory is expected to employ a total of 1,000 workers. The leather workshop will produce many of Louis Vuitton’s classic bags, which will proudly sport “Made in the USA” labels. For the highly skilled American worker, and for Louis Vuitton fans eager to support the American economy, this is great news. And yet, media coverage of the ribbon cutting was not about job creation or the fact that an iconic fashion brand is manufacturing products in America. On the contrary, Louis Vuitton’s parent company, Louis Vuitton Moët Hennessy, has been added to the campaign #grabyourwallet. In other words, consumers are boycotting LVMH. Why? Because President Trump cut the ribbon at the new factory on October 17th.

And yet, this unveiling was not intended to be political. Instead, Louis Vuitton’s chief executive Bernard Arnault celebrated the unveiling as a representation of Louis Vuitton’s commitment to the American economy. Neither Arnault, nor the company he represents, endorsed the President of the United States or his policies. Arnault himself made this point quite succinctly: “We are very honored to have the [P]resident of the United States. I’m not here to judge any types of policies. I’m here to work with my brand, and we are going to, over five years, have 1,000 people working here, and that’s what matters.” Arnault added that the event also illustrated “the commitment of President Trump to the American worker.” But, it’s important to emphasize that this was not meant as a political comment; rather, it was a statement of fact. By pressuring companies to manufacture more of their products in America, President Trump is committed to creating jobs on American soil. And an individual doesn’t have to be a Trump voter - or even a potential supporter - to admit this.

After all, as is made clear by Arnault’s comment, this was not a Louis Vuitton sponsored Trump rally; it was a big win for the American worker. It was a celebration for the local community of Alvarado, Texas, as well as a landmark event: bringing the manufacturing of high fashion to Texas. And despite the fact that President Trump, senior White House advisers Ivanka Trump and Jared Kushner, and other administration officials attended the event, politics should not have been the focus. This wasn’t about political endorsements or lack thereof. It was about the American worker.

Nonetheless, a few days after the event, Nicolas Ghesquière, the artistic director of Louis Vuitton’s women’s wear, posted on Instagram in protest against his employer’s “association” with the President of the United States. Ghesquière’s post read, “Standing against any political action. I am a fashion designer refusing this association #trumpisajoke #homophobia.” The image on the post features Evelyn Thomas’ song “High Energy.”

And as Vanessa Friedman documented in her ensuing New York Times piece, Ghesquière’s post instigated a firestorm. Friedman provides a “who’s who” list of individuals across the fashion industry, who responded to Ghesquière’s post with enthusiastic applause - from Camille Miceli to Giambattista Valli and Julien Dossena. And as has become the norm within the fashion industry - and within American culture, in general - the Trump-associated ribbon cutting was vilified and mocked as a faux pas, committed by “mistaken” LVMH leadership.

Rather than focus upon the monumental achievement of such a ribbon cutting, the press chose instead to run headlines highlighting Ghesquière’s Instagram post. It must be emphasized that Ghesquière possesses the freedom to voice his dissent - as he very well should. He should have the right to voice his frustration, and he did. It is nonetheless worthwhile to reflect upon the media’s response to Ghesquière’s post. After all, the fallout of the event is representative of more than internal tension in Louis Vuitton’s leadership; the fallout is about even more than the specific act of President Trump cutting the ribbon at a new Louis Vuitton factory. Instead, the fallout emphasizes the bitterness and hatred that members of the fashion community feel towards the President of the United States.

The Washington Post ran the headline “Trump praised Louis Vuitton during a factory visit. A designer there called him ‘a joke.’'“ Of course, the headline of the piece was not that new jobs are being created in Johnson County, Texas. The headline did not even make it clear that a brand new Louis Vuitton factory just opened on American soil. Instead, the headline’s focus was political; the narrative was carefully selected, so that “the news” was not the creation of jobs, but Ghesquière’s dislike of the President. And The Washington Post wasn’t the only news outlet to take such a perspective. Newsweek ran the headline, “After Trump and Ivanka visit, Louis Vuitton Artistic Director posts He’s ‘Refusing this Association,’” while The Huffington Post released, “Louis Vuitton Director Slams Trump as ‘Joke’ After Visit to Brand’s Texas Workshop.”

As increased political outrage ensued, Grab Your Wallet extended its boycott of Trump-affiliated companies, to include Louis Vuitton Moët Hennessy brands (which include Dior, Givenchy, and Marc Jacobs, among others). In order to be removed from the list, Grab Your Wallet demands that LMVH issue a statement in regret over President Trump’s appearance at the factory opening. The campaign also demands that LVMH refuse to conduct other events with the Trump administration, in the future.

And yet, as Grab Your Wallet exercises its first amendment rights, in order to advocate for boycotting any company associated with the President’s administration, it is notable that the creation of new jobs in Texas is thanks to President Trump’s Pledge to America’s Workers program. Louis Vuitton Moët Hennessy pledged to created 1,000 jobs as part of this pledge, and the company is doing just that. And in commitment to the Pledge to America’s Workers program, LVMH has also opened two workshops in California.

To date, 366 companies have joined the pledge - totaling 14,373,559 jobs pledged. Companies that have joined the pledge include such corporate behemoths as Amazon, Apple, and Google. And given the extensive list of corporations participating in the program, it becomes clear that this is not a mass corporate endorsement of the Trump administration or of the GOP. On the contrary, this pledge isn’t about who votes for which candidate during the 2020 presidential election. Instead, as President Trump stated at the ribbon cutting, the new Louis Vuitton factory is evidence of an “extraordinary revival of American manufacturing.” And the creation of high skill jobs in the fashion industry, on American soil, is something all Americans can celebrate.

Rihanna x LVMH: a Sign of the Times

Artist, style icon, and businesswoman Robyn Rihanna Fenty is making more unprecedented waves as luxury group LVMH has announced the debut of Fenty Maison. The collab marks LVMH’s first new house since 1987, LVMH’s first woman-founded label, and a seismic shift in the fashion industry as a whole.

Image via.

Image via.

For as long as celebrity culture has existed, stars have been utilized by brands to connect with buyers. The 21st century has seen celebrities breaking from that model, realizing and reclaiming the power of their followings and taking ownership of their images as brands. Brands like the Simmons’ Baby Phat, Gwen Stefani’s L.A.M.B., and Beyoncé’s Ivy Park have all taken in hundreds of millions of dollars. The Kardashians in particular have revolutionized the place of the celebrity in business, forcing brands to keep up with them rather than the other way around. The often discussed “social media culture” is certainly one of the catalysts of the new status quo, as it allows celebrities to directly impact their followers and mobilize them as consumers.

Fenty will include accessories such as sunglasses and leather sandals to complement corseted denim jackets, and suits. Images via

The crucial difference between Fenty and the previously mentioned brands is the involvement of LVMH, the conglomerate behind some of the world’s leading heritage labels including Louis Vuitton, Fendi, Givenchy, and Dior. Based in Paris, Fenty will debut with a pre-existing cultural cache rarely afforded to celebrity-led labels. LVMH’s investment in a celebrity-owned label shows both its confidence in Rihanna’s business savvy and creativity and a sharp eye for the economic clout that influencers carry. Luxury is going the way of most other facets of the fashion industry, as the power of following and endorsement is rapidly overtaking the historical prestige of a brand.

Rihanna has proven herself to be a successful entrepreneur, as her Fenty Beauty and Savage x Fenty collections have been widely acclaimed. She’s savvily reshaping ideas of beauty via her emphasis on size and shade inclusivity, and challenging competitors to keep up. In the midst of a callout culture that keeps venerable companies on their toes, true corporate diversity is crucial. Brands can be sent to the doghouse over problematic behavior in the time it takes to compose a tweet or post a screenshot (see: Dolce and Gabbana). Rihanna’s #blackgirlmagic and international star power makes for an alluring brand ambassador, but LVMH is cornering the market on authenticity—and proving the tangible value of the 21st century superstar—by endorsing her in a position of power, rather than simply a pretty face. In an era where luxury market is heavily promoted and sustained by hip-hop culture’s love of materialistic decadence and prestige, it’s high time the producers of said culture reap the benefits.

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