The author has shared a Podcast.You will need to accept and consent to the use of cookies and similar technologies by our third-party partners (including: YouTube, Instagram or Twitter), in order to view embedded content in this article and others you may visit in future.

Subscribe to the BoF Podcast here.

Background

Clare Waight Keller’s career in fashion has been defined by her versatility as a designer and desire to step outside her comfort zone. She started out specialising in knitwear at the Royal College of Art before taking on a role in knitwear at Calvin Klein and moving on to Ralph Lauren. She returned to Europe to work at Gucci under Tom Ford, and then stepped into creative director roles at Pringle, Chloé and Givenchy. Last week, it was announced that she was becoming the creative director of Japanese clothing retailer Uniqlo, which is targeted at the masses, not the classes.

Seeing new challenges as an opportunity to learn and grow, has led Waight Keller to make many unexpected decisions from the start of her career.

“Those moments when you are pushed to your boundaries and don’t quite know how to navigate … bring a great sense of drive for me. I love the idea of being uncomfortable with what I’m working on because it makes me learn quickly,” she said. “I enjoy the process of change, and I guess that’s why I’ve worked in so many different places.”

This week on The BoF Podcast, BoF founder and editor-in-chief Imran Amed sits down with Waight Keller to discuss her varied career path and her experience working in American, Italian, British, French and now Japanese fashion companies and how this has shaped her outlook on the industry.

Key Insights

• Growing up in Birmingham, England, Waight Keller was captivated by the vibrant subcultures she encountered. That influence led her towards art school, and eventually, fashion. “I distinctly remember standing at a bus stop, going to college, with punks, skinheads or goths — people who really expressed themselves through fashion and took it to a real sense of identity,” she said. “They just seemed like the most interesting people. I wanted to be part of that.”
• After working for predominantly male creative directors, Clare felt it was time to express her own perspective, leading her to the creative director position at Chloé in 2011. “There’s such a sensibility that women have in fashion because you try it on yourself, you wear it, you feel it,” she said. “I’m putting together what I believe to be my point of view of fashion and I really wanted to express that one day.”
• Waight Keller’s move to Uniqlo marked a shift from working in the world of luxury to mass fashion, which has required some adjustment. “Understanding the scale was just extraordinary. In luxury fashion, you work on a much smaller scale, even at big brands,” she said. However, with this came new opportunities. “With that scale comes incredible access to innovation, amazing fabric mills, and quality. They spend a lot of time developing the quality of their products.”
• Even as her career flourished, Waight Keller came to discover the inherent gender bias women face in the industry. “It’s still fairly male-dominated in management and across the business side of fashion ... I had to make my family work around my career because even a season out in fashion can put you back a year, and people look at you differently.” With that, her advice to fellow female designers is not to “be afraid of a challenge and having to learn on the ground. I think that’s actually how you really get knowledge and become valuable,” she says.

Additional Resources

• Do Mass Brands Need Creative Directors? This week, Uniqlo appointed Clare Waight Keller the creative director of its main line, while Stefano Pilati signed on for a collection with Inditex flagship Zara and Zac Posen staged a New York Fashion Week bash with Old Navy. The jury is still out on whether hiring designers from high-fashion will drive retail results.
• The Logic Behind Givenchy’s New Designer Appointment. Matthew M. Williams, founder of the luxury streetwear-inspired label 1017 ALYX 9SM, succeeds Clare Waight Keller. What expertise does he bring to the LVMH-owned brand?
• Uniqlo Appoints Clare Waight Keller as Creative Director. The British designer previously served as creative director at LVMH-owned Givenchy and Richemont’s Chloé.

The Biden administration’s move to close a loophole that allows low-value shipments to enter the US duty free won’t be a problem for Shein, executive chairman Donald Tang said in an interview Friday.

The conversation took place shortly after White House officials announced plans to crack down on a trade exemption for packages that fall under the $800 “de minimis” threshold. The provision was originally meant to make it easier for Americans to receive small parcels from abroad or bring home souvenirs from travels. But in recent years it’s facilitated a surge in trade from e-commerce companies like Shein and Temu, which ship direct to US consumers from China. Shares in Temu-owner PDD Holdings traded lower on the news.

But Tang said changes to the tax rules wouldn’t have a major impact on Shein’s market position. “Shein has a competitive advantage because of its on-demand model and not the de minimis rules,” Tang said. “The efficiency and the wide choice we provide gives the company not just a few points advantage, but a significant advantage.”

It’s unclear how quickly the rules in the US could change and there will be a period of consultation to give interested parties an opportunity to comment before they are finalised.

Tang said Shein would like to see any changes reflect taxes on the wholesale price when goods enter the country, rather than on the retail price. “We look forward to working with all stakeholders on reform,” Shein said in a statement. Changes should create a “level, transparent playing field,” it added.

Learn more:

US Looks to Curb Low-Value Chinese Shipments Under $800 ‘De Minimis’ Exemption

The White House announcement comes two days after Democratic lawmakers in Congress urged President Joe Biden to use executive powers to close the de minimis provision, which they called a “loophole” that has allowed Chinese imports to evade tariffs.

The Fearless Fund will end its Strivers Grant Contest, which provided funds to Black women entrepreneurs, as part of a settlement reached this week with the American Alliance for Equal Rights.

The group, led by conservative activist Edward Blum, sued the investment firm last year, arguing the programme — which awarded $20,000 to successful applicants — was unconstitutional and violated the Civil Rights Act of 1866 because only Black women are eligible for the award.

In an interview this week with CBS News on Friday, Fearless Fund founding partner and chief executive Arian Simone, called the settlement a “win,” noting that the majority of the allocated funds had already been distributed before the AAER filed suit.

The fund has continued to allocate millions of dollars to women of colour founders, throughout the litigation process, Simone said, and that it would continue to do so.

“We were deploying grants just about two weeks ago … we have been operating, fully functioning,” she said, adding that “our commitment to women of colour is unwavering.”

Since its inception in 2018, Fearless Fund has invested in Black-owned beauty brands Bread Beauty, Brown Girl Jane and The Lip Bar among others.

Learn more:

US Court Halts Minority Grant Programme at Centre of Legal Challenge

The Fearless Fund must pause its Strivers Grant Contest, which awards funds to Black women entrepreneurs, pending the outcome of a lawsuit from a conservative group alleging such grants are unconstitutional.

Mary-Kate and Ashley Olsen’s luxury brand The Row has received financial backing from the families behind Chanel and L’Oréal, The Business of Fashion can report, confirming a Thursday story by Bloomberg.

Investment funds controlled by the families of Chanel’s Wertheimer brothers and L’Oréal’s Françoise Bettencourt Meyers have taken a minority stake in the brand at around a $1 billion valuation. Net-a-Porter founder Natalie Massenet also joined the investment via her Imaginary Ventures fund, as did Moda Operandi co-founder Lauren Santo Domingo.

BoF breaks down the deal for the famously expensive and secretive brand.

What sets The Row apart?

Since being founded by former child stars Mary-Kate and Ashley Olsen in 2006, The Row has overturned expectations for a celebrity-owned brand with its exclusive positioning and rigorous approach to design (Hermès womenswear creative director Nadège Vanhee-Cybulski and Quira founder Veronica Leoni have both previously worked on its collections).

With ultra-high price points, luxe fabrication and a logo-free aesthetic, The Row has steadily emerged as America’s answer to Loro Piana — selling, for example, cashmere coats handmade in Italy, for $6250. Garments are designed with a contemporary edge that takes cues from Phoebe Philo-era Celine and Martin Margiela-era Hermès.

Since founding The Row, the Olsens have distanced their celebrity status from the brand’s identity. “It was a genius move,” Jess Graves, editor of the shopping newsletter The Love List said. “It clarified The Row as a serious fashion brand.”

To date, neither of the sisters is on social media, and The Row’s Instagram account posts mainly photos of art. The label recently reinforced its controlled image and air of mystery at its autumn-winter 2024 presentation, where it asked guests to refrain from using their phones to record photos or videos.

In the age of social media overload, such restraint has only fuelled the brand’s elusive buzz.

Who invested in The Row?

Chanel’s Wertheimer family, via their investment vehicle Mousse Partners and L’Oréal’s Françoise Bettencourt Meyers via the family’s Téthys fund, have invested in the brand at a valuation around $1 billion.

In terms of solidifying The Row’s image as a true luxury player, the investors could not have been more on brand.

“The Wertheimers and the Bettencourt Meyers are intimately familiar with the luxury industry, so this is an incredible vote of confidence,” New York-based luxury consultant Robert Burke said.

Imaginary Ventures, whose founding partner Natalie Massenet launched Net-a-Porter, also joined the investment.

Moda Operandi co-founder Lauren Santo Domingo invested as well, via her private investment fund St. Dominique Capital.

What made The Row an attractive investment?

Interest in The Row and its designs continues to climb nearly two decades after its founding, confirming the concept’s long-term potential.

“The Row is positioned as an extremely attractive opportunity for a long-term player” like the Wertheimers and Bettencourt Meyers families, Burke said.

A cashmere dress from The Row retails for $8900, sweaters are priced between $1420 to $3590.

By targeting ultra-high-net-worth individuals, The Row is well positioned to navigate the general malaise affecting the luxury segment. Top-end players with strong ready-to-wear offers like Zegna and Bruno Cucinelli have continued to grow this year amid a broader slowdown for the segment, while harder-hit players like Kering emphasised difficulties selling to less wealthy “aspirational” clients.

“If you’re collecting $3000 sweaters, fluctuations in the economy probably aren’t going to affect your discretionary income very much,” said Graves.

On The Row’s website, there is no option to organise items by price.

The Row saw increased brand momentum in recent seasons due to the “quiet luxury” discourse on social media, which expressed customers’ boredom with logo-driven merchandising.

How big is The Row’s business?

The Row does not communicate on its business, and did not respond to a request for comment.

Last year, Kering acquired 30 percent of Valentino at a valuation of roughly 16 times EBITDA and four times revenue.

A deal in line with those multiples would suggest The Row has revenues of at least $250 million and operating profit north of $60 million. That’s in line with a Financial Times report that estimated the brand’s sales between $250 and $300 million. Analyst Luca Solca estimated the brand’s business within a similar range.

But the luxury market has deteriorated over the past year, suggesting lower multiples (and potentially a bigger business) for The Row. The Row also has a significant exposure to wholesale, meaning the brand’s size in the market could be much higher than estimates for its revenue once stockists’ markups are taken into account.

What is the growth opportunity?

The Row has built its business almost entirely through women’s fashion — menswear remains a limited offer — and is sold through select wholesalers and just a handful of stores.

The brand has four retail locations: New York, Los Angeles, the Hamptons and London, with a Paris location announced last month.

Pushing further into retail could fuel higher sales and profit, as the brand gains visibility in key shopping districts and reclaims its markup from wholesalers.

“The brand has limited distribution right now,” said Burke. “There will probably be some strategic store openings; they know they can show the product in its spirit better than anyone … It has great appeal in Asia, even more appeal in Europe.”

Starting from a top-end positioning, the brand could expand into new categories: growing its menswear business or launching homeware, perfume and beauty.

“Whatever their growth plan, I don’t see it being a juggernaut,” said Graves, “Slow and steady suits them.”

Why was The Row seeking capital?

Projects like branching out into menswear, or the recent store expansions to Paris and Amagansett (in the Hamptons) are capital intensive. “Fashion is an expensive business, even when you’re growing and successful,” said Burke.

The Row likely plans to use the investment to further fuel the brand’s momentum.

The Row has also sought investors at a time when demand for high-end, logo-free fashion is still flying high after a post-pandemic surge, making it a savvy time for an exit. (The company did not respond to a request for comment on whether the deal was for new shares, the shares of existing investors, or both. The Olsens retain a large majority interest, a source familiar with the matter said.)

Alongside the financial stake, savvy investors like the Wertheimers, Bettencourt Meyers, Massenet and Santo Domingo can guide The Row as it works to grow its business while staying a luxurious course.

What are the risks for The Row?

Key to the brand’s long-term success will be juggling its exclusive allure with the right pace of growth for items like its signature Margeaux bag, a $7000 style that has been compared to Hermes’ Birkin.

“I think the adoption of mainstream influencers wearing the [Margeaux] will ultimately hurt its allure. They likely need to pull back on wholesale availability,” Graves said.

Maintaining an exceptional quality standard is also essential to the brand’s positioning — and to avoid repeating a recent flop.

Last summer’s $900 viral jelly shoes, “broke on nearly everyone who bought them,” said Graves. The brand ultimately stopped production.

An Indian antitrust investigation has found US e-commerce giant Amazon and Walmart’s Flipkart violated local competition laws by giving preference to select sellers on their shopping websites, according to confidential reports seen by Reuters.

The Competition Commission of India in 2020 ordered an investigation into Amazon and Flipkart for allegedly promoting certain sellers with which they had business arrangements and giving priority to certain listings.

In a 1,027-page report on Amazon and a separate 1,696-page report on Flipkart, both dated Aug. 9, the CCI investigators said the two companies were found to have created an ecosystem where preferred sellers appeared higher in search results, elbowing out other sellers.

“Each of the anti-competitive practices alleged ... were investigated and found to be true,” said both reports, which are not public and are being reported by Reuters for the first time.

“Ordinary sellers remained as mere database entries,” the two reports said in identical conclusions on both companies.

Amazon and Flipkart, as well as the CCI, did not immediately respond to Reuters queries. They have previously denied wrongdoing and said their practices are in line with Indian laws.

The two companies will now review the report and file any objections before CCI staff decide on any potential fines.

The investigation’s findings are the latest setback for Amazon and Flipkart in a country where they continue to face criticism for their business practices from smaller retailers, who say their businesses have suffered in recent years due to deep discounts offered online.

The investigation was triggered by a complaint from Delhi Vyapar Mahasangh, a group of brick-and-mortar retailers.

Amazon and Flipkart are leading players in India’s e-retail market which was estimated to be worth $57-60 billion in 2023, and set to top $160 billion in value by 2028, consultancy firm Bain estimates.

In the United States, the Federal Trade Commission has sued Amazon alleging the company uses “anticompetitive and unfair strategies to illegally maintain its monopoly power.” Amazon has said that the FTC lawsuit is wrongheaded and would hurt consumers by leading to higher prices and slower deliveries.

Indian investigators raided certain sellers of Amazon and Flipkart during the probe, following a Reuters investigation in 2021 which was based on Amazon internal documents and showed the company gave preferential treatment for years to a small group of sellers on its platform, and used them to bypass Indian laws.

The company has denied any wrongdoing but the CCI previously told an Indian court the Reuters special report corroborated evidence it had against Amazon.

The CCI investigation report on Amazon said preferred sellers on the platform “get the advantage in the (online) listing” and when a customer searches for any product, “his attention is drawn towards” those listings.

The practice of preferential listings and deep discounting of mobile phones - including selling products below cost price - causes a “catastrophic impact on the existing competition in the market.”

In the report on Flipkart, the CCI said preferred sellers were provided various services such as marketing and delivery at a “miniscule cost.” They were also enabled by Flipkart to sell phones with deep discounts which amounts to “predatory pricing” and forecloses competition, the CCI said.

“The anti-competitive practices are not limited to sales of mobile phones. They are equally prevalent in other categories of goods,” both reports said.

Flipkart and Amazon for months tried to block the investigation through legal challenges in courts, but the Supreme Court in 2021 allowed it to go ahead.

Last month, India’s commerce minister publicly called out Amazon by saying the company’s investments were often used to cover its business losses.

Amazon in June last year said it will increase its Indian investment to $26 billion by 2030, including for its cloud business. It is also targeting merchandise exports worth $20 billion from India by 2025.

By Aditya Kalra; Additional reporting by Aditi Shah, editing by Deepa Babington

Learn more:

Amazon Opens Its Largest Campus Worldwide, in India

The Seattle-based company is making an ambitious push in India, the last major retail frontier still primarily reliant on small-scale neighbourhood and mom-and-pop stores.