Off-White’s China strategy: New owners, new approach?

What happened LVMH yesterday announced the sale of Off-White to brand management firm Bluestar Alliance, the parent company of labels including Scotch & Soda, Hurley, Bebe, Catherine Malandrino and American teen brands Justice and Limited Too. “LVMH is proud of the legacy that Off-White has built under Virgil Abloh’s visionary leadership,” the release read. “Bluestar Alliance is the perfect partner to carry that legacy forward. Bluestar Alliance shares our commitment to respect creative integrity, and we are confident that, under their stewardship, Off-White will continue to innovate while respecting the spirit and values of the brand.” While the terms of the deal remain undisclosed, the move opens a new chapter for Off-White on what would have been the 44th birthday of its late founder. The Jing Take Off-White’s acquisition arrives at a pivotal moment. In June last year, Off-White appointed Cristiano Fagnani as its new CEO as part of a operator Farfetch-owned New Guards Group’s (NGG) shake-up; and last month, the brand made a strong return to New York Fashion Week with a collection under the creative direction of stylist IB Kamara. The show felt like a fresh start to what has been a challenging couple of years for the brand, particularly in China. In March this year, Off-White officially exited Beijing with the closure of its Xidan Laofengxiang department store counter. Its withdrawal followed the shuttering of Off-White’s only other store in the city, at Sanlitun Taikoo Li in March 2023, as well as four brick-and-mortar stores in Chengdu, Xian, and Shanghai. Globally, Off-White continues to underperform against competitors – the brand contributed to NGG’s) 40% YoY revenue decline in the three months ending June 30, 2023. With Off-White’s licensing agreement with NGG up for renegotiation in 2026 and uncertainty surrounding NGG’s future, the sale raises questions about how Bluestar will steer one of streetwear’s most influential names. While it remains to be seen if the company can fully restore the label to its former stature, LVMH has expressed confidence in Bluestar Alliance’s stewardship. Bluestar CEO Joseph Gabbay has emphasized his intent to build on the cultural momentum that Abloh ignited. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Off-White’s China strategy: New owners, new approach?

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Published October 01, 2024

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Off-White’s China strategy: New owners, new approach?