Boom of VIPs in fashion companies’ boards of directors

From Moncler to Tod's, influencers and celebrities are entering fashion companies’ boards of directors. The latest news concerns well-known Russian tennis player Maria Sharapova. The athlete has been included by Double r, the company that holds 19.9% of Moncler’s capital, in the list of candidates for the Group’s next board of directors. The election of the new board will take place during the shareholders' meeting scheduled for April 21. This will not be Sharapova's first experience in the business environment. She is the ceo of candy brand Sugarpova, which she founded in 2012, has made several investments and is an advisor to companies such as Therabody, Tonal, Public.com and Bala. She is an entrepreneur with great business acumen, characterized by her understanding of youth culture and her "brand building" skills. She also has a strong knowledge of the fashion world and its community.

«The entry of VIPs in the boards of directors of fashion companies can be an opportunity for both parties, from different points of view,» Maria Luigia Franceschelli, senior associate at the IP department of Hogan Lovells in Italy, explained to MFF. «For brands, it can be a way to gain credibility or notoriety in certain audiences, perhaps different from the brand's classic target, thus creating new points of contact and business opportunities». At other times, the expert continued, their entry can have the aim of «internalizing» the best point of view of a given sector. This may be the case, for example, of the Motorsport games platform, which sees Formula 1 driver Fernando Alonso as a member of its board of directors. The two-time world champion, who is also a shareholder in the company, is a gaming enthusiast. Another case is the one of Michael Jordan, one of the most famous basketball players of all time, who is a member of some boards of directors dealing, not by chance, with the world of sport. He is special advisor to the board of DraftKings, an American online sports betting platform, and is among the first investors in Sportradar, another betting company in which he is special advisor to the board. Returning to the fashion industry, about a year ago the digital entrepreneur Chiara Ferragni made her debut as member of the board of Tod's, owned by Diego Della Valle. The Group stated that the choice «was motivated by the company’s need to deal with social commitment, solidarity towards others, environmental sustainability and dialogue with the younger generations».

Franceschelli pointed out that for VIPs joining a board of directors ensures an institutional and prestigious role and represents a business opportunity. The celebrities can test their skills in new industries and consolidate their entrepreneurial expertise. «Consider, for example, Chiara Ferragni joining Tod's after the digital entrepreneur had already launched her own brand». Other well-known cases are that of David Beckham, who since 2018 is ambassadorial president of the British fashion council (Bfc) —a role which was created to support the organization in signing partnerships in the US and in Asia— or that of Serena Williams, world tennis legend, who since 2019 has been member of the board of Poshmark, a second-hand fashion marketplace, and since this year also of Sorare, the fantasy football startup that uses blockchain technology. 

«Celebrities can bring companies a different point of view than the traditional one, expanding and fostering dialogue (as well as market opportunities),» the expert continued. This is particularly evident when celebrities are also ambassadors of socially relevant messages. In this case, the appointment allows fashion houses or brands to formalize their support for the message that the VIP is conveying. This may have been the goal of French luxury giant Kering when, in 2020, it approved the appointment of actress Emma Watson, known for her pro-women activism. «It is unquestionable that these partnerships have a great media resonance, with often positive effects on the image of both parties and with often positive implications also from an economic point of view,» Maria Luigia Franceschelli concluded. (All rights reserved)