Chanel Acquires 25% Stake in Haute Horology Brand MB&F

Welcome to the 52nd edition of Maximalist! Dive into the ultimate guide, filled with insider insights into the world of fashion, art, real estate, travel, jewelry, and horology.

The world of luxury is never boring, and this week is no exception. Let’s dive in!

Markets

On this week’s agenda:

1. Chanel Acquires 25% Stake in Haute Horology Brand MB&F

2. Hans Ulrich Obrist Curates a Dynamic ‘Year of AI’ at Serpentine Gallery, London

3. Bulgari Hotel Roma: Crowned the World's Best Hotel

4. Loro Piana x New Balance 990v6

5. Estée Lauder CEO Fabrizio Freda to Retire in 2025

Chanel Acquires 25% Stake in Haute Horology Brand MB&F

Chanel, the iconic French luxury house, has announced the acquisition of a 25 percent stake in the Swiss haute horology brand MB&F, a move that underscores a shared commitment to independence, creativity, and excellence in watchmaking. Frédéric Grangié, president of Chanel Watches & Fine Jewellery, emphasized that this strategic partnership aligns with Chanel’s long-term objectives to nurture and invest in specialized craftsmanship and expertise in high-end watchmaking.

Founded in 2005 by Maximilian Büsser, former CEO of Harry Winston Rare Timepieces, MB&F is celebrated for its innovative and complex watch designs. The brand is known for its 'Horological Machines,' which are not only functional timepieces but also artful displays of flora and fauna-inspired elements and kinetic architecture.

In 2023, MB&F reported revenues of CHF 45.4 million (AUD$78.95 million) from the sale of 419 timepieces, averaging about CHF 108,000 (AUD$187,000) per watch, according to the Business Times. The company also offers the M.A.D. Editions sub-brand, introduced in 2021, which provides more accessible luxury watch options.

Following the agreement, Büsser will maintain a 60 percent majority stake in MB&F. Other significant shareholders include Serge Kriknoff, head of R&D and production with a 15 percent stake. The leadership team, including Büsser, Kriknoff, Charris Yadigaroglou (head of Marketing Communications), and Thibault Verdonckt (head of Sales), will continue to steer the company forward.

Chanel’s venture into the high-end watchmaking sector began with investments in Romain Gauthier in 2011 and F.P. Journe in 2018, significantly enhancing its portfolio and shifting its image from a fashion-centric to a genuine haute horology brand. This year, Chanel introduced several high-complication watches at the Watches & Wonders event, including the J12 Couture and J12 Flying Tourbillon, marking its continued expansion into sophisticated watchmaking.

The acquisition of a stake in MB&F represents a strategic step for Chanel to bolster its position in the luxury watch market. Büsser described the investment as a pivotal move for MB&F’s future, ensuring the brand can continue its path of innovation and independence, supported by Chanel’s extensive network and resources.

“This major step ensures our long-term future, particularly as we approach our company’s 20th anniversary next year," Büsser stated. "It allows us to continue our journey as an independent brand while gaining strength from Chanel’s vast ecosystem and specialized supplier network,” he added, highlighting the benefits of the partnership for MB&F’s operational capabilities and strategic growth.

Hans Ulrich Obrist Curates a Dynamic ‘Year of AI’ at Serpentine Gallery, London

Hans Ulrich Obrist, celebrated for his relentless curatorial work and dubbed "the curator who never sleeps" by the New Yorker, has taken a significant leap this year at London's Serpentine Gallery by initiating the 'Year of AI.' Since his start in 2006, Obrist has transformed the gallery into a hub for experimental art, bringing to life innovative projects that merge art with advanced technology.

The 'Year of AI' at Serpentine was inaugurated with Refik Anadol's "Echoes of the Earth: Living Archive," a visually captivating exhibition that utilizes AI to explore environmental themes through data patterns from coral reefs and rainforests. The series will continue with an October exhibition featuring AI-infused music technologies by Holly Herndon and Mat Dryhurst, exploring new paradigms in the creative economy.

Alongside these exhibitions, Serpentine has also released its fourth installment in the Future Art Ecosystems (FAE) series, 'Art x Public AI,' a comprehensive report that builds on the gallery's ongoing research into the intersection of art and technology. This research has been a cornerstone of Obrist's curatorial philosophy, reflecting his early fascination with cybernetics and AI, inspired by pioneers like Billy Klüver and cybernetician Heinz von Foerster.

Obrist's journey into AI and art began in his student days, deeply influenced by his engagements with significant figures in technology and cyberpunk literature. This curiosity blossomed into a vision for Serpentine, leading to the establishment of its Arts Technologies department in 2014. This department was envisioned as a modern-day equivalent to the Experiments in Art and Technology (E.A.T.), aiming to fuse artistic innovation with technological advancement.

Over the past decade, the department has curated numerous digital and physical exhibitions that push the boundaries of traditional art forms. Noteworthy projects include early AI-driven artworks on Serpentine’s website and significant video game art exhibitions, highlighting the gallery's role in expanding how technology is integrated into the art experience.

The response to the 'Year of AI' and its associated activities has been overwhelmingly positive, indicating a strong public interest in how AI can transform artistic expression and interaction. Obrist notes that these initiatives are not just about showcasing technology but are deeply connected to Serpentine's broader goals of fostering new technological partnerships and enhancing public engagement with contemporary art.

Looking ahead, Obrist and the Serpentine team are committed to continuing their exploration of AI in art, planning to extend the impact of the 'Year of AI' through additional tours and projects that further integrate AI technologies into various artistic practices. This ongoing commitment underscores Serpentine’s role as a leader in the convergence of art, technology, and public interaction, making it a pivotal year for both Obrist and the gallery.

Bulgari Hotel Roma: Crowned the World's Best Hotel

Barely a year after its grand opening, Bulgari Hotel Roma has swiftly ascended to the pinnacle of global hospitality, earning the title of the best hotel in the world by the esteemed Virtuoso Travel. This recognition is no small feat in the competitive luxury hotel industry, where extravagance is the norm.

Located in the heart of Rome, Bulgari Hotel Roma is not just a hotel but a landmark of luxury that epitomizes the Italian way of life. Nestled in a historic 1930s building in Piazza Augusto Imperatore, near iconic locales like Via del Corso and Piazza di Spagna, the hotel offers unmatched views of the Mausoleum of Augustus, enhancing its historical charm.

The design of Bulgari Hotel Roma is a homage to the city where Bulgari’s tale began with the opening of its first store in 1884. Every element of the hotel, from handcrafted marble mosaics and Murano glass light fixtures to iconic Arco de Flos lamps, reflects quintessential Italian elegance.

The hotel boasts 114 rooms, including luxurious suites such as the 300 m2 Bulgari Suite. This duplex suite offers breathtaking views of the city, encapsulating the essence of Roman opulence.

Culinary delights at Bulgari Hotel Roma cater to all tastes, featuring five dining options. Il Ristorante – Niko Romito, headed by a three-star Michelin chef, offers exquisite meals, while the Bulgari Bar and La Terrazza provide perfect settings for evenings in the city. Other offerings include Il Caffè for brunch, Bulgari Dolci for bakery delights, and the Lobby Lounge for snacks.

The hotel’s spa is an oasis of relaxation, inspired by Roman baths, featuring marble columns, soft lighting, a stunning swimming pool, nine treatment rooms, and a 24-hour gym. A meticulously curated library with books on Rome’s history and culture further enriches the guest experience.

The Bulgari Hotel Roma, though a recent addition to the Bulgari group’s portfolio, already feels like a historical fixture in Rome, seamlessly blending the city’s rich past with modern luxury.

Loro Piana x New Balance 990v6

In an exciting development in the world of high-end sports footwear, New Balance is poised to release a new iteration of the 990v6 in collaboration with luxury Italian brand Loro Piana, known for its exquisite cashmere. This premium version of the 990v6, tagged at a retail price of $1,000 USD, is scheduled for release next month.

Earlier speculations about this partnership have now been confirmed as images of the new model have started to circulate online. The upcoming release showcases a sophisticated color palette, featuring a calm and collected blend of brown and chestnut tones. The choice of materials remains true to the high standards of both brands, with what appears to be a combination of mesh and nubuck used in the construction of the upper part of the sneaker. A standout feature is the sneaker’s tongue, which is expected to prominently feature the “Loro Piana” name, adding a signature touch to this high-stakes collaboration.

Despite the buzz, neither New Balance nor Loro Piana has made an official statement about the release. However, privileged information from an insider suggests that Loro Piana has already made the sneaker available for pre-order to its VIP clients. The general public can look forward to grabbing a pair starting September 5, available exclusively at Loro Piana.

The hefty price tag of $1,000 USD reflects the luxurious materials and the craftsmanship involved in the sneaker's design, positioning it as a must-have for collectors and enthusiasts of both brands. As the release date approaches, potential buyers and sneaker aficionados are eagerly awaiting further details and an official announcement from this newly-formed, high-powered duo in the world of luxury sportswear. Stay tuned for more updates as this exclusive footwear collaboration comes to fruition.

Estée Lauder CEO Fabrizio Freda to Retire in 2025

The beauty industry received significant news as Fabrizio Freda, the 66-year-old CEO of Estée Lauder Companies, announced his retirement effective at the end of the fiscal year 2025, beginning in June. Freda has been at the helm for 16 years, steering the company through numerous market shifts and challenges.

The search for Freda's successor is ongoing, with Estée Lauder's board considering candidates from both within and outside the company. Insiders suggest that an internal executive might be the likely choice.

Freda's retirement announcement comes in the wake of Estée Lauder's disappointing financial performance in the fourth quarter and the full fiscal year. Alongside Freda, Chief Financial Officer Tracy Travis also announced her retirement, with Akhil Shrivastava set to succeed her.

CNN's Jim Cramer commented on Freda's leadership, noting, "He took Estée Lauder to incredible heights," but also highlighted that Freda oversaw significant earnings declines in recent years. Cramer criticized some strategic delays, like the slow adoption of new sales platforms and marketing strategies, stating, "The real blind side here lies with China and travel. These were their most reliable channels until the pandemic. And they never came back."

Freda is credited with making impactful acquisitions such as Deciem/The Ordinary and Tom Ford, enhancing the company’s high-end fragrance offerings. However, Bryan Spillane from Bank of America Securities highlighted challenges in China, a major market for Lauder, contributing to headwinds in profit recovery due to weaker-than-expected performance.

Estée Lauder’s recent earnings call revealed net sales for the fiscal year ended June 30, 2024, were $15.61 billion, a decrease of 2% from $15.91 billion the previous year. The company attributed this decline to continued softness in the prestige beauty market in mainland China and a decrease in Asia travel retail sales. Net earnings plummeted to $390 million from $1.01 billion the prior year.

Amid these challenges, Freda expressed commitment to positioning the company for future success. "I have two primary objectives ahead of my retirement. First, I intend to execute with our strategy reset. It is important to me that our next leader inherits a business with momentum," Freda stated during the earnings call. He also emphasized working closely with the board of directors for a smooth leadership transition.

For fiscal 2025, Freda announced that organic net sales are expected to range from a 1% decline to a 2% increase, indicating a cautious yet hopeful outlook. He also detailed the "Profit Recovery and Growth Plan," which aims to offset profitability pressures in the challenging prestige beauty segment, particularly in China.

Despite the sobering financial outlook for 2025, Freda highlighted positive developments, including Clinique's growth in the U.S. market and the expanding influence of The Ordinary. He also noted the increasing importance of digital marketing channels like TikTok Shop, livestreaming, and other short-form videos as essential tools for attracting new customers and enhancing brand engagement.

As Estée Lauder navigates these transitional times, the company aims to strengthen its market position and set a course for recovery and growth post-Freda’s tenure.

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