How can luxury houses outlive their founders?

When an esteemed luxury house loses its founder, it’s not just the end of a life — it is the potential death of a legacy. The post-founder era is undeniably fraught with inconsistency, with some thriving and others struggling with reinvention. In 2024, Alaïa climbed 12 spots in the latest Lyst Index of hottest brands despite the founder passing in 2017, Vivienne Westwood’s granddaughter Cora Corré left her late grandmother’s brand in October for “betraying” its values, and Seán McGirr’s first Alexander McQueen show was met with mixed reviews. Without Virgil Abloh, Off-White has floundered within the LVMH stable, particularly in China, where it closed several stores this year. The big name problem Adrian Wang, editor of Kind Magazine China and founder of agency AD Consulting, says, “When personal influence gets too high, the brand influence gets lower, and the harder it gets when you want to continue the brand influence of the designer when they are no longer there.” From Abloh at Off-White to McQueen, consumers can be emotionally involved with the loss of a founder, which can prompt them to be more critical of successors. One London-based stylist who wanted to remain anonymous, labelled McQueen's continuation a “tragedy.” “Even seeing McQueen’s sketchbooks sell this month for £20,000, they’re such personal items, and it feels like his legacy has not been respected,” she says. Gracie Chen, ex fashion editor at Hypebae China agrees, adding, “Many designers are idolized by consumers, and in some cases the consumer’s loyalty lies more with the designer than the brand. In extreme cases, if the designer’s influence surpasses that of the brand, it negatively affects the brand’s success when they leave.” Following its founder’s death aged 40 in 2010, Alexander McQueen has had just two creative directors, Sarah Burton and then McGirr (2023), so it may be too early for a dramatic reinvention. Instagrammer @mustbemargiela went viral in the fashion world this week for crafting a creative director master sheet. Evidently, in some cases, legacy houses have benefitted from having multiple creative leads, such as Loewe, Yves Saint Laurent, and Dior, which have ushered in new eras and evolved house identities. However, Balenciaga has had six creative directors in its 105 year history: Cristóbal Balenciaga (1919 to 1968) Michel Goma (1987 to 1992) Josephus Thimister (1992 to 1997) Nicolas Ghesquière (1997 to 2012) Alexander Wang (2012 to 2015) Demna Gvasalia (2015 to present.) But in this case, there has been an immense level of reinvention. The house ultimately transitioned from couture to comic, garnering appeal through a mixture of ‘normcore’ and novelty styles that hooked consumers. Fashion YouTuber Understitch (112,000 subscribers) tells Jing Daily, “In Crowe’s Isabella Blow book, she explains the taking over of brands by their named successors as second wave, and says it’s ‘possibly the best iteration’ of fashion houses. However, the third wave is described as ‘in the 90s, the suits arrived,’ alluding to the idea that it lost all emotional meaning and became a business.” Welcoming a new era While there is always an inclination to maintain the legacy of a creative director once they have passed, strength can be found in welcoming in a new era. Balenciaga, for example, was led by esteemed couturier Cristobel Balenciaga who passed in 1972 — a long time before Crocs, Alipay, and Erewhon, which the brand now counts as collaborators. Fashion designer Ranura Edirisinghe says, “There is a difference when we live through the time of a designer. For example, we lived through Alexander McQueen and then saw his house being taken over by Seán McGirr, but there are designers like Cristobel Balenciaga or Christian Dior; not many of us lived through their careers. Balenciaga has been almost completely rehashed. It has moved on from what Cristobal did.” In agreement with the idea of successful brands being the ones unafraid to advance with a new vision, freelance journalist Kin Woo says, “It helps if the brand is left as a bit of a blank slate and the designer coming in has a very strong point of view, which is why Karl Lagerfeld at Chanel and Hedi Slimane at Celine worked so well. “For creative directors coming into heritage brands now, the balance is between honoring the legacy, but not being too tied to the history and being able to push the brand forward -— and crucially having an infrastructure of support from the top that allows them to settle into the brand and grow (and not being pushed out too early like a lot of creative directors).” Woo praises Pieter Mulier for excelling at Alaia in honoring what the brand is known for but also slowly infusing his own aesthetic with the brand. The franchise model Freelance photographer Balint Barna comments on how houses can sometimes be viewed as merchandise-generators of their late founder. “Alexander McQueen as a brand seems now quite out of touch with the young designer we knew,” he says. “I personally am not fond of all of these skulls on T-shirts, but there is sometimes a need: companies need to make money, and easy money-making comes from selling T-shirts, jumpers, and sneakers.” Despite some people criticizing the cheaper, streetwear offering of Kering-owned McQueen, in 2009, the now-late designer launched a collaboration with US bargain retailer Target. He was also behind the lower-end diffusion line McQ in 2006, which was suspended in 2022. Considering these moves, McQueen was always going to take the direction of providing more affordable lines. “Luxury houses can outlive their founders, as long as they find ways to re-exist in the original style and continue to create something that adapts to the current market,” Wang says. Another case in point is Karl Lagerfeld. The namesake brand is now defined by T-shirts emblazoned with cartoons of the designer and his cat Choupette, or the Eiffel Tower Paris monogram suitcases. Accelerating revenue generation and strong interest from licensing partners suggest a potential short-term revenue opportunity of $3 billion to $4 billion by 2030. For the fiscal year ending March 2024, the Karl Lagerfeld brand achieved $475 million in global sales. Ultimately, being a franchise for the late designer works for the business. Luxury houses face a delicate balance between honoring a founder's legacy and embracing reinvention. Successful transitions often depend on a clear vision, supportive infrastructure, and the ability to resonate with modern audiences without being overly bound by the past. Ultimately, the key to longevity lies in evolving the brand identity while staying true to its core values — a strategy that can turn even the most challenging transitions into opportunities for growth.

How can luxury houses outlive their founders?

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Published December 19, 2024

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How can luxury houses outlive their founders?