Remembering Giorgio Armani

Weekly Brief | Week of August 31, 2025

The fashion world is in mourning following the passing of Giorgio Armani at the age of 91, a visionary who reshaped modern elegance and championed independence in both design and business. His legacy endures not only in the clothes he created but in the values he instilled across the industry. As tributes pour in, other stories in China’s consumer market underscore a moment of transition: Prada confirms its generational handover, Proya advances a Hong Kong listing, and domestic favorite Flower Knows secures new funding.

Fashion & Retail: Farewell, Succession, and Reset

Giorgio Armani, who passed away in Milan, was celebrated for deconstructing the suit and redefining modern elegance through neutral palettes and fluid tailoring. His influence extended beyond fashion into cinema, lifestyle, and global perceptions of “Made in Italy.” Until his final days, he remained involved in creative direction, ensuring continuity through a carefully considered succession plan. In his last Financial Times interview, Armani stressed that leadership should transition naturally to close collaborators, family members, and trusted executives — a reflection of his lifelong commitment to independence and order in governance.

Meanwhile, Prada Group confirmed its next chapter: Lorenzo Bertelli, son of Patrizio Bertelli and Miuccia Prada, will succeed as CEO. At 36, Lorenzo has overseen digital strategy, sustainability initiatives, and acquisitions such as Versace. Current CEO Andrea Guerra will support the transition, underscoring how legacy houses are preparing for generational handovers while preserving operational stability.

In stark contrast, SSENSE, the Canadian luxury e-commerce platform once seen as a disruptor, filed for bankruptcy protection. Burdened by 25% tariffs on Canadian goods entering the US and the removal of duty-free thresholds for small parcels, SSENSE’s sales plummeted 28% in H1 2025. The company has initiated restructuring to retain operational control, but the case serves as a cautionary tale about dependence on cross-border arbitrage and the vulnerabilities of digital retailers to shifting trade policies.

Beauty & Skincare: Global Names, Local Champions

China’s beauty market continued to buzz with activity, showcasing both international and domestic momentum.

Proya reported H1 2025 revenues of RMB 5.36 billion (+7.2%) and net profit of RMB 799 million (+13.8%). Online sales now account for 95% of revenue. The board also approved an H-share listing in Hong Kong to expand financing capacity and accelerate global expansion.

Domestic darling Flower Knows (花知晓) completed a Series B financing round exclusively funded by Proya. Known for whimsical packaging and accessible price points, Flower Knows sells in more than ten countries, with the US as its largest overseas market. CEO Yang Zifeng forecast revenues surpassing RMB 1 billion this year, with new funds directed to supply chain integration, content innovation, and global rollout.

International players remain active. Clinique appointed Olympic table tennis champion Fan Zhendong as brand ambassador, launching its “Laser Brightening” duo — the upgraded 302 serum and a new UV shield sunscreen — to capture younger Chinese consumers seeking high-performance skincare. At the same time, L’Oréal partnered with Mugler on a limited “Metamorphosis of Beauty” collection, blending high-fashion aesthetics with long-wear formulas, promoted globally by Kendall Jenner.

Sports & Lifestyle: FILA Tech and Forever 21 Relaunch

FILA unveiled its “Breathing Shell” outdoor jacket, powered by OPTIMA-SHELL fabric and verified through testing by Beijing Sport University and Germany’s Hohenstein Institute. Paired with a micro-variety show Mountain Park of Fun and fronted by brand ambassador Huang Jingyu, the launch highlighted technical credibility and lifestyle appeal. A limited “Light Mountain Green” edition sold out immediately during its livestream debut, underlining consumer demand for performance fashion.

Meanwhile, Forever 21 marked its fourth entry into China. Authentic Brands Group partnered with Shanghai-based Orange Di Trading to handle production, distribution, and omnichannel marketing. Early activations included a Strawberry Music Festival pop-up, signaling a digital-first and localized strategy to reconnect with Gen Z and millennial consumers.

Finance & Results: Strength and Strain

Luxury and fashion earnings presented a mixed picture:

• Brunello Cucinelli reported H1 revenues of €684 million (+10.2%) and net profit of €76.7 million (+16%), with Asia leading at +12.5%. The brand reaffirmed 10% growth expectations for both 2025 and 2026.
• Lanvin Group posted H1 revenues of €133 million (-22%), with weakness in Lanvin and Sergio Rossi but growth at Wolford (+14%). The group is in creative transition, with new artistic directors’ collections due later this year.
• Dazzle Fashion revenues fell 5.6% to RMB 1.07 billion, while net profit dropped 23.5% to RMB 170 million. The company is gradually suspending its RAZZLE brand while refreshing d’zzit to appeal to younger shoppers.

 M&A and Investments: From Paris to Nanjing

LVMH chairman Bernard Arnault expanded his Riviera footprint with the €200 million acquisition of Hôtel Cap Estel via his family office Financière Agache. With only 20 rooms, the deal equates to roughly €10 million per key, reportedly a record in luxury hospitality.

In China, Deji Group incorporated two new subsidiaries in Jiangsu, each capitalized at RMB 100 million, to manage malls, hotels, and outlets — underscoring confidence in long-term consumption-driven property development.

Market Watch: Gold Hits Historic High

Gold prices surged to all-time highs on September 3, with Comex futures reaching $3,630 per ounce and spot gold peaking at $3,565. In China, jewelry brands such as Chow Sang Sang and Chow Tai Fook raised retail prices above RMB 1,050 per gram. The Shanghai Gold Exchange increased margin requirements to cool speculation, as consumers turned to gold both for adornment and as a hedge amid global uncertainty.

Jingzhi Perspective: Legacy, Continuity, and Refined Strategy

Giorgio Armani’s passing is a reminder that in luxury, true strength lies not only in design but in the discipline of independence and the clarity of vision. His legacy shows that brands endure when they build identities that transcend seasons and trends. For Prada, Proya, Flower Knows, and many others navigating succession, globalization, or expansion, the lesson is clear: strategies may change, but what defines longevity is the ability to articulate values as precisely as Armani did for half a century. In honoring his life’s work, today’s brands are challenged to think not just about growth, but about the legacies they will leave behind.