Menos es más en el ultra lujo: Frédéric Arnault sacrifica ventas para salvar la exclusividad de Loro Piana

Frédéric Arnault, CEO of Loro Piana, has committed to prioritizing exclusivity over short-term sales, according to the CEO's first interview since taking over the helm at the Milanese fashion house at the age of 30. Arnault stated that Loro Piana may be selling more pairs of its signature White Sole shoes for €1,000 each, but the ultra-luxury brand is opting not to meet demand to avoid mass production of these natural rubber-soled shoes.

This approach contrasts with the more aggressive growth plans of other luxury brands like Gucci. Loro Piana, along with other high-end brands, has weathered the current crisis better than most, with sales increasing by 7.5% to reach €1.720 billion last year and net profits up by 12% to €434 million. Arnault's acquisition of Loro Piana for LVMH in 2013 has seen its value grow from €2.7 billion to €11 billion.

The CEO's appointment last year marked a new opportunity for him to push his candidacy to succeed his father, Bernard Arnault, at the helm of the world's most powerful luxury group. Arnault is one of Bernard's five children, all of whom work in the family firm. His reserved and analytical demeanor has been a subject of speculation in the succession race.

Arnault admitted that there is pressure, but it is the responsibility of the CEO to accept it and not be overwhelmed by it. He noted that his father instilled in his children the willingness to contribute and work in the company, but never felt compelled to do so. Loro Piana's roots go back to the 19th-century wool trading business of the Italian Arnault family.

In addition to cashmere, the brand now sells garments made from vicuña fiber, an animal native to the Andes. Loro Piana's cashmere jackets can cost over €20,000. Since taking the helm last year, Arnault has focused on strengthening Loro Piana's supply chain control to secure access to scarce raw materials and incorporate more specialized craftsmanship into the company.

The brand's new full-fashioned clothing factory in Ghemme, Piedmont, described by Arnault as the biggest industrial investment in the company's history, is set to open this month. Arnault has emphasized the need for strategic development of the company's knowledge base, which sometimes means not moving as quickly as demand or market pressures dictate.

He ruled out aggressive price increases, stating that prices should only rise at a pace justified by product quality. Analysts at Bernstein have calculated that the median price of Loro Piana products could increase by 67% between 2019 and 2025. Arnault acknowledged that Loro Piana's high-end luxury status has helped it weather the crisis, but warned that it would be a mistake to ignore the aspirational segment of the market, and predicted that this group of customers would recover strongly in the future.