Phillip Lim’s surprise exit tests China expansion plan

What happened American fashion designer Phillip Lim announced on Wednesday that he is stepping down as creative director of 3.1 Phillip Lim to explore other ventures, foreshadowing a new era for the brand as it enters its 20th year of business. Born in Thailand and of Chinese descent, Lim co-founded the label in 2005 with business partner Wen Zhou. The brand took off, establishing Lim as a leading Asian-American designer on the global stage. His contributions shaped 3.1 Phillip Lim into a celebrated brand with an innovative commitment to sustainability. From reliably chic coats and beautifully relaxed tailoring for everyday wear, to luxury streetwear and timeless investment accessories, the brand offering is a New York gem, with sample sales in the city always jam-packed. This year’s 20th-anniversary collection showcases Lim’s impact on the industry, with the designer revisiting his historical creations, such as the Spring 2007 rosette appliqué motifs. His reputable career thus far includes several industry accolades, like the FNAA Award for Social Impact, which lauded his contributions to social change. Lim is recognized as an activist for supporting food security and inclusivity through projects like the “More Than Our Bellies” initiative that donates to a food insecurity fund, and the anti-Asian violence initiative “House of Slay.” Lim will now leave his eponymous label in the hands of co-founder Zhou, which bodes well for brand continuity. The Jing Take It appears an inopportune moment for 3.1 Phillip Lim to declare the departure of Lim himself, as the brand’s China operations have also just been announced. To mark its 20th anniversary, last week 3.1 Phillip Lim publicized the debut of a new partnership with Hong Kong Tongchuang Group to expand its presence in Greater China. The collaboration covers the opening of 30 flagship stores in cities like Beijing, Shenzhen, and Hong Kong over the next decade. Aiming to enhance its luxury market positioning, the brand is seeking to deliver its relaxed, elegant style through both physical and online stores. Whether the designer leaving his eponymous brand will negatively impact business performance is to be seen. Some brands have struggled in the past due to the departure of their founder creative directors, such as Off-White, which has closed multiple stores in the mainland this year. Others, like the late Azzedine Alaïa’s eponymous brand, have thrived. Though Alaïa passed away in 2017, his house is flourishing in his wake, having most recently moved up 12 places on the latest Lyst Index of hottest brands for Q3 2024. Despite an undeniably dignified presence in the industry, 3.1 Phillip Lim has not boomed in China, yet. The company does not disclose its revenue, but only joined e-commerce platform JD.com in 2020, and operates just one store in the mainland, located in Shanghai’s Jing’An Kerry Centre. Online, #philliplim has 83,600 reads on Xiaohongshu, and the brand has 34,600 followers on Weibo. It is not ideal timing for the face of the brand to part ways just before it focuses more on expansion in a crucial luxury market. However, brands such as Alexander McQueen have succeeded in China even without their founder. 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.

Phillip Lim’s surprise exit tests China expansion plan

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Published November 14, 2024

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Phillip Lim’s surprise exit tests China expansion plan