The next generations of fashion

From the Arnault and Hermès families in France to Italy's Prada and Zegna, fashion & luxury maisons are betting on the new generation. «When fashion family companies have sufficient resources to invest in business development and growth, the generational transition ensures a continuity of culture of approach to business», Erika Andreetta, Partner at PwC, explained to MFF. Sometimes, the expert continued, the succession from one member of a family to the next is only at the Board level, other times it also generates a change in creative direction. There are many known and less known examples of this. Armando Branchini, Strategic Advisor Retail, Fashion & Luxury Practice at EY, was quick to identify two types of behavior in young fashion heirs.

«There are heir-continuers, who enter family businesses, and heir-innovators, who develop new businesses, again in the creative industry sector», he stated. In France, all five of Bernard Arnault's children work in Lvmh group companies, to which the founder has wanted to give the characteristics of a family business in recent years. Delphine Arnault is Louis Vuitton's product manager, while Antoine (Arnault, ed.) is at the helm of Loro Piana and Berluti, and is in charge of Les Journées Particulières, a project through which people can visit the French giant’s factories and design spaces. Alexandre is now executive vice-president of product and communications at Tiffany & Co., after having been the ceo of Rimowa in Germany for a few years, while Frédéric is the ceo of watch brand Tag Heuer. Last but not least, the very young Jean has joined Louis Vuitton’s watchmaking division as Director of Marketing and Development.

«The Hermés family is run by three cousins, grandchildren of a Hermés married to a Dumas, while Kering's Pinault family is only in its second generation, and François-Henri's first children are in their early twenties and are studying», Armando Branchini pointed out. In Italy, where the family business model is structural, there are plenty of cases of heir-continuers in businesses that are still independent. Notable examples include Edoardo Zegna, son of Ermenegildo Zegna, who works for the company as Head of Marketing and Digital. Lorenzo Bertelli, son of Patrizio Bertelli and Miuccia Prada, is currently head of corporate social responsibility at the holding company and is expected to become ceo by 2024. «Edoardo and Lorenzo seem to be the heirs that will take over the company, in three to four years», the EY analyst stated. At Ferragamo, Angelica Visconti (the daughter of Fulvia, who passed away a few years ago, ed.) is vice chairman of the company and Giacomo/James, son of Ferruccio, is a member of the board.

Riccardo Ferragamo, son of Leonardo, works in the digital sector. At Max Mara, the third generation has been active for some time. Maria Giulia Prezioso Maramotti is us retail regional manager. Young heir-continuers can also be found in other companies, such as Cucinelli, with daughters Camilla and Carolina, or Missoni, Fendi, Canali, Etro, Biagiotti, Marras and in textile companies such as Barberis Canonico, Albini and Reda. On the other hand, heir-innovators took from their families of origin the desire to start a new enterprise. Ten years ago, Emanuele Della Valle, son of Diego, founded in New York Mediabend Capital, a company operating in the digital communication sector.

Francesca Versace, daughter of Santo, co-founded a company, Public Pressure, operating in the nft sector. Alice Etro, daughter of Kean, runs an e-commerce company selling furniture products, Westwing Italia, while Larissa Castellano Pucci, daughter of Laudomia, founded DressX, a retail platform of digital fashion garments, that she designed herself, as well as a scarf collection, FouLara, whose nfts are also being distributed.

«When there are insufficient resources, we notice that fashion companies are more likely to open up to capital, leading to the entry of managers from outside the family as a result of a change in shareholding or an entry of private equity», Andreetta added. Investors often find partners in family-controlled businesses with whom they can more confidently share a long-term perspective. Family-controlled businesses, as the expert pointed out, inherently have a multigenerational perspective in their DNA, and this element is valued as a guarantee of stability. «The family-owned business turns out to be best suited to implement, safeguard and transfer the so-called 4Cs that characterize it: continuity, community, connections and command», the PwC analyst concluded. (All rights reserved)