Asia Fashion Weekly News Bulletin – ISSUE 4 Week of 3 March 2025
(1) Lanvin Group posts double-digit sales decline in ‘transitional year’
China-based Lanvin Group has reported a double-digit fall in sales over the past year as the company executed its turnaround strategy.
(2) Prada edges closer to €1.5bn Versace acquisition
Prada Group is in talks to buy Versace from New York-listed Capri, with a deal reportedly likely to be agreed by the end of this month.
(3) Fashion, retail sectors urge US to rethink Canada, Mexico, China tariffs
The US fashion and retail sectors argue Trump’s 25% tariff on US imports from Canada and Mexico as well as an extra 10% tariff on China goods will hurt US fashion businesses and consumers.
(4) Amazon fined US$39 million in damages for infringing ‘Beverly Hills Polo Club’ trademark
Amazon was fined after the Delhi Court ordered the e-commerce giant to be aware of the plaintiffs’ exclusive rights in the Beverly Hills Polo Club mark and logo.
(1) Lanvin Group posts double-digit sales decline in ‘transitional year’
(Photo Credit: Sergio Rossi/ Facebook)
The luxury fashion group reported a revenue decline of 23 per cent year on year, totalling €328 million in FY24. Management attributed this drop to “a transitional year” as the group realigned its operations within a dynamic global market. All brands experienced lower sales, with Lanvin and Wolford seeing the most significant decreases.
Regionally, sales fell by 37 per cent in Greater China, 28 per cent in EMEA, 13 per cent in North America, and 12 per cent in other regions. The group noted that while Greater China continued to underperform, the Japan and North American markets showed resilience amidst various challenges.
Looking ahead, Lanvin anticipates a challenging macroeconomic environment in FY25 and has begun consolidating its store network to optimise its retail footprint. The group is enhancing its management capabilities with a new leadership team and a second headquarters in Europe, while also appointing new artistic and creative directors for Lanvin and Sergio Rossi to help improve sales.
News Source: https://insideretail.asia/2025/03/03/lanvin-group-posts-double-digit-sales-decline-in-transitional-year/
(2) Prada edges closer to €1.5bn Versace acquisition
(Photo Credit: Drapers)
The potential acquisition of Versace by Prada could reach almost €1.5 billion (£1.2 billion), although the deal has not yet been confirmed. If the acquisition goes through, it would return Versace to Italian ownership and strengthen Prada’s position in the luxury fashion market. Prada Group also includes brands such as Miu Miu, Church’s, Car Shoe, the Luna Rossa fragrance brand, and patisserie Marchesi 1824.
Versace was originally acquired by Capri, formerly known as Michael Kors Holdings, in 2018 for $2.1 billion (£1.7 billion). The current acquisition price would represent a loss for Capri, which has seen declining sales at Versace. Recent forecasts indicate that sales are expected to fall slightly in the next financial year but could increase significantly by 2028 and beyond.
In addition to the acquisition discussions, Capri faced regulatory challenges when the US Federal Trade Commission blocked a proposed takeover by Tapestry, the parent company of Coach and Kate Spade, citing concerns over competition in the affordable handbag market. Following the news of the potential acquisition, Prada’s shares listed in Hong Kong saw a rise of 3.5%.
News Source: https://www.drapersonline.com/news/prada-edges-closer-to-e1-5bn-versace-acquisition#:~:text=Prada%20Group%20is%20in%20talks,the%20end%20of%20this%20month.&text=The%20price%20could%20reach%20almost,the%20deal%20is%20not%20confirmed
(3) Fashion, retail sectors urge US to rethink Canada, Mexico, China tariffs
(Photo Credit: Lightspring/ Shutterstock)
On 3 March 2025, President Donald Trump announced the implementation of 25% tariffs on all imports from Canada and Mexico, along with an increase of 10% on existing tariffs on Chinese goods, raising them to 20%. These tariffs were initially introduced as part of efforts to address illegal immigration and drug threats, particularly fentanyl. In the fashion industry, representatives expressed concern that these escalating tariffs could destabilise the consumer-driven economy and negatively impact jobs, particularly in the apparel sector, which relies heavily on imports from these regions.
The tariffs have led to retaliatory measures from Mexico and Canada, while China has announced new tariffs on a range of US agricultural imports. Industry groups such as the American Apparel & Footwear Association (AAFA) and the United States Fashion Industry Association (USFIA) highlighted the complexities of supply chains developed over decades. They noted that the apparel and textile sectors already face some of the highest tariff rates among US imports, and increasing these tariffs could further inflate costs for consumers and businesses alike, particularly affecting everyday goods like clothing and footwear.
The National Council of Textile Organisations (NCTO) supported the tariffs on China but raised alarms about the tariffs on Canada and Mexico, emphasising the importance of the coproduction chain that sustains many jobs in the US and North America. This interconnected supply chain is vital for the fashion industry, where US textiles often serve as inputs for garments produced in nearby countries. NCTO President Kim Glas cautioned that destabilising this relationship could inadvertently benefit competitors like China, while also calling for the closure of the de minimis loophole to prevent unchecked shipments of potentially illegal goods that could harm both the industry and consumers.
News Source: https://www.just-style.com/news/aafa-trade-tariff-us/
(4) Amazon fined US$39 million in damages for infringing ‘Beverly Hills Polo Club’ trademark
(Photo Credit: Livemint/ Amazon)
The Delhi Court has ordered an Amazon unit to pay US$39 million in damages for infringing the “Beverly Hills Polo Club” trademark after garments with similar branding were sold on Amazon’s India website. This ruling is regarded as a landmark judgment in trademark cases involving US firms, particularly following an antitrust investigation that revealed Amazon’s preferential treatment of certain sellers.
The trademark case was initiated in 2020 by Lifestyle Equities, which owns the “Beverly Hills Polo Club” trademark. The court found that Amazon’s India site featured apparel with a logo that was nearly indistinguishable from the BHPC logo, noting that the infringing brand was owned by Amazon Technologies.
The Delhi High Court emphasised Amazon’s awareness of the plaintiffs’ exclusive rights to the BHPC mark and highlighted its history of litigation in multiple jurisdictions. A permanent injunction was issued against Amazon, reinforcing the court’s position on the trademark infringement.
News Source: https://www.livemint.com/companies/news/amazon-fined-39-million-in-damages-for-infringing-beverly-hills-polo-club-trademark-report-11740661547603.html
