In March 2022, a major event took place at a stadium in Moscow. It was a rally to commemorate the 8th anniversary of Russia’s annexation of Crimea. At this event, Russian President Vladimir Putin gave a speech lasting 5 minutes. He defended Russia’s invasion of Ukraine in his address. Yet, what captured people’s attention was the jacket worn by Putin that day. It was a product of Loro Piana, an Italian high-end brand. The jacket’s price was 1.5 million rubles, roughly equivalent to 16 million KRW. For Russian citizens, this sum was the equivalent of two years’ worth of wages. Globally, widespread criticism was directed at Putin. As Russian citizens faced poverty, President Putin was seen in an expensive jacket. Despite Putin’s emphasis on patriotism, he rarely wears clothing made in Russia.
Loro piana : A Discreetly Luxurious Brand
The Devil Wears Prada, Putin Wears Loro Piana. Even the founder of Loro Piana expressed his views via social media. “It’s very troubling that President Putin wore our clothes for his speech.” “Loro Piana has entirely ceased clothing supply to Russia and has shut down all our stores there.” In fact, Putin’s fondness for Loro Piana wasn’t first revealed at this time. In 2015, his workout attire included a Loro Piana tracksuit.
While visiting the Vatopedi Monastery in Greece, he sported Loro Piana’s navy sneakers. The knit cardigan he wore to a Christmas service was also Loro Piana. Each time Putin wore Loro Piana, it stirred global opinion. In our country, Loro Piana has often been mentioned in incidents involving high-profile figures. It was highlighted when a person implicated in the Sewol Ferry incident was found dead, and when the individual responsible for the nut rage incident made an appearance at the Seoul Prosecutor’s Office.
Ironically, despite its association with such events, Loro Piana is actually a discreetly luxurious brand preferred by the global elite for its subtle style. Duchess Meghan Markle, the Princess of Monaco, and Angelina Jolie are known as VIP customers of Loro Piana. Their Loro Piana apparel is not easily recognizable without close inspection. Unlike brands like Louis Vuitton or Gucci, Loro Piana lacks prominent logos or distinctive patterns. Thus, Loro Piana appeals to those who value personal satisfaction over conspicuous consumption. It’s a brand recognized only by a select few. There is an unwritten rule among Loro Piana customers. This can be metaphorically explained using a famous quote from the movie Fight Club. The first rule of Loro Piana is to never talk about Loro Piana.
A Legacy of Quality (1)
Loro Piana, an Italian lifestyle brand, is immensely popular among global elites. Its products are so outstandingly crafted, they are often called ‘cashmere more valuable than gold.’ The prices of their products start in the millions and can go up to tens of millions of KRW. Loro Piana originated in Trivero, Italy, a central location for the wool industry. Since the early 19th century, the Loro Piana family has been involved in the wool business in Trivero. They achieved considerable success, leading to the establishment of two wool factories.
Following World War II, a more significant opportunity arose. With the ‘Made in Italy’ movement gaining traction in the fashion world, Loro Piana began exporting cashmere and premium wool to Europe, the USA, and Japan. Famous suit makers from Savile Row and designer brands like Yves Saint Laurent and Giorgio Armani used fabrics from Loro Piana. This made Loro Piana one of the most recognized fabric producers globally.
However, the 1980s brought challenges for Loro Piana. Fashion companies increasingly opted for more cost-effective fabrics and they shifted production to factories in Asia. As a result, Loro Piana, with its excellent but expensive products, was perceived as outdated. The number of clients significantly decreased. Yet, Loro Piana turned this crisis into an opportunity. They innovated by developing unique natural fibers that were unparalleled. Vicuña, baby cashmere, and ultrafine merino wool became Loro Piana’s new specialties.
Furthermore, Loro Piana ventured beyond being a fabric supplier, entering the finished goods market. They crafted clothing from the highest quality materials with meticulous craftsmanship. And priced them accordingly. Interested customers started visiting Loro Piana stores worldwide. Revenue from Loro Piana’s clothing sales soon exceeded that from fabric supply. Later, Loro Piana broadened its scope to include home furnishings and goods.
A Partnership with LVMH
But there was one company that keenly observed Loro Piana’s progression. That company was LVMH, the world’s foremost luxury group. In July 2013, LVMH acquired 80% of Loro Piana’s shares for 2 billion euros, approximately 3 trillion KRW. This purchase led to debates about whether LVMH had paid excessively. However, Loro Piana’s sales continued to rise after its acquisition. Now, the brand’s annual revenue significantly exceeds more than double the amount at the time of purchase. Furthermore, the recent ‘Old Money’ trend has caused another surge in Loro Piana’s popularity. Loro Piana perfectly captures the essence of the ‘Old Money’ style.
About ten years ago, I first encountered Loro Piana while buying a suit. The suit had a well displayed Loro Piana label on the inside. But in recent times, Loro Piana has become more noticeable as a clothing brand, rather than just a fabric company. Similar to how Hermès is famous for luxury bags, Loro Piana seems to have dominated the luxury clothing category. When I think of Loro Piana, the phrase ‘talent will show itself’ comes to mind. Pure talent is noticeable even when hidden. This is exactly true for Loro Piana. After refining its expertise over the last 100 years, it is now acknowledged as a unique luxury brand.
A Singular Ambition
LVMH Chairman Bernard Arnault and his son Antoine Arnault have an enduring practice. Every summer, they visit the Loro Piana store in Portofino, Italy, to pick out polo shirts and sweaters. In fact, the Arnault family possesses an array of luxury brands, including Louis Vuitton, Dior, and Givenchy. Despite this wealth of brands, each summer they consistently purchase their clothing from Loro Piana stores. Antoine Arnault notes, “Loro Piana was the sole brand, aside from LVMH, that my father and I consistently wore.” “We were captivated by the classic style of Loro Piana.”
After LVMH’s acquisition of Loro Piana, Antoine Arnault was appointed as the CEO of Loro Piana. Perhaps due to the memories of Arnault’s father and son, Antoine Arnault runs Loro Piana in a different way. LVMH typically infuses a contemporary flair into time-honored companies like Louis Vuitton and Dior post-acquisition. This rejuvenation is frequently spearheaded by celebrated creative directors like Marc Jacobs, Hedi Slimane, and Nicolas Ghesquière. However, Loro Piana continues to operate without a creative director and has not established a marketing department.
This approach stems from the conditions set by the Loro Piana family during their acquisition negotiations with LVMH. LVMH agreed not to hire a prominent designer for Loro Piana, even after acquiring it. Pier Luigi Loro Piana, the brand’s founder, emphasized, “For Loro Piana, the three most vital words are quality, quality, and quality.” Thus, Loro Piana believes that maintaining superior quality is adequate, eliminating the need for a creative director or marketing team.
A Legacy of Quality (2)
Central to Loro Piana’s quality ethos is vertical integration. This strategy encompasses managing the whole process from raw material procurement to finished product manufacturing, as well as retail operations. Originating as a woolen mill, Loro Piana procures rare raw materials globally. These materials are then expertly crafted by Italian artisans into signature styles. The final products are elegantly exhibited in stores infused with the essence of Loro Piana. In this manner, Loro Piana aims to oversee every step to craft perfect garments. They firmly believe this method is their key strength.
In July 2023, Loro Piana launched a ‘production history tracking service.’ This service is a testament to their commitment. In stores, customers can scan the QR code on Loro Piana products to trace the entire process from manufacturing to sale using blockchain technology. This service verifies product authenticity, facilitates ownership registration, and enables the transfer of ownership across generations. Interestingly, the ‘Aura Blockchain Consortium’ supports this Loro Piana service. This blockchain firm was co-founded by luxury giants such as LVMH, Prada, and Cartier. Loro Piana’s collaboration with its parent company LVMH is evident in initiatives like this. Loro Piana leverages LVMH to boost its product quality and to effectively showcase that quality.
Embracing Change Without Losing Essence
In September 2023, the Ryder Cup was hosted in Rome, Italy. The Ryder Cup, initiated in 1927, is a golf contest between teams from Europe and the USA. Its match-play nature means team cohesion, rather than individual ability, determines victory. Therefore, in the Ryder Cup, players wear uniform team apparel, devoid of personal sponsorships. That year, the U.S. team’s attire was designed by Ralph Lauren, while the European team’s outfits were crafted by Loro Piana. The collection included polo shirts with 3D technology for golf swings, thermal regulating high-neck shirts, and waterproof vests. Possibly due to Loro Piana’s input, the European team triumphed over the U.S. team that year.
Beyond golf, Loro Piana also sponsors other sports. They have backed ‘Piazza di Siena,’ the world’s oldest international equestrian contest, for 22 years. In addition, Loro Piana hosts the Super Yacht Regatta, a sailing event. They even participate in classic car races with the Loro Piana Racing Team. Essentially, Loro Piana highlights their fabric and technological prowess by sponsoring various sports events.
Loro Piana applies specific standards when selecting sports to sponsor. The sports that Loro Piana’s customers genuinely enjoy are exactly the sports that Loro Piana targets. Golf, equestrianism, yachting, and classic car racing are all sports loved by Loro Piana’s VIP customers who prefer luxurious activities. Thus, Loro Piana’s internal definition of a customer matches these sports.
Loro Piana’s customers are global elites, constantly traveling around the world. They’re people who spend Mondays in London and weekends in Ibiza or Gstaad. Therefore, unlike other luxury brands, Loro Piana does not sponsor popular sports like football or baseball. Instead, it focuses on building strong relationships with its affluent VIP customers.
Recently, however, there’s been talk that Loro Piana is targeting a slightly different demographic. Loro Piana began sponsoring the prestigious Italian football team Juventus and creating outfits for the players. They also collaborated with Hiroshi Fujiwara, a pioneer in Japanese street fashion. This was Loro Piana’s first-ever collaboration. Also, Loro Piana is actively engaging with TikTok and Instagram. They introduced a new handbag through an ASMR video, which was a big hit.
Loro Piana also collaborated with an influencer known as ‘Gstaad Guy,’ who humorously tackles the old money trend. Gstaad Guy is portrayed as a wealthy heir, inheriting billions of euros from his parents. All the while living a classic luxury life in the Alps. Yet, Loro Piana sponsors the outfits of this influencer, filled with pretentiousness. This symbolically shows that Loro Piana is reaching out not only to its traditional clients but also to the new generation of wealthy individuals.
Some true Loro Piana fans recently expressed that the brand’s direction seems risky. Their concern is that Loro Piana, once an exclusive high-end brand, might inadvertently become ordinary. However, Loro Piana appears undisturbed by these concerns. “Loro Piana offers an experience similar to a long-standing friendship.” “We are patient.” “We wait for people to appreciate Loro Piana’s value, gradually expanding our connections.” Loro Piana still focuses on strengthening its ties with its dedicated fan base. At the same time, they are slowly introducing Loro Piana to new customers. This approach has led even today’s trendy young celebrities to embrace Loro Piana. Yet, this has not diminished the prestige of the high-end Loro Piana brand. This demonstrates the power of Loro Piana’s strategy to evolve without fundamentally changing.
A Brand Built on Quality
How did Loro Piana, with a century-old legacy, become a world-famous brand? Their sole focus was on enhancing quality. Constantly asking ‘What if’ led Loro Piana to create exclusive, unique products. Employing a strategy of subtle change, Loro Piana has captivated both its loyal and new customers. I often say a successful brand resembles a charismatic person. In this respect, Loro Piana seems like someone successful socially but modest about it. Shunning superficial charm while pursuing their own path symbolizes maturity. Do you see the appeal in someone like Loro Piana? Why not create an equally charming persona? Learn from Loro Piana, so that you can also stand the test of time. Thank you.
