Can Marc Jacobs Save His Namesake Brand From Losing $60 Million Per Year?
The label has been experiencing flat revenues for the past 5 years.
The company of the American designer, owned by LVMH, has been experiencing financial turmoil ever since the affordable Marc by Marc Jacobs line was axed in 2015. According to industry experts, the contemporary line accounted for 80 percent of the label’s annual revenue.
The discontinuation of the Marc by Marc Jacobs brand was an attempt to simplify consumer perceptions of the brand and the wholesale buying experience—the main Marc Jacobs collection was sometimes overlooked by department stores in favor of its more inexpensive alternative, it was one of LVMH’s many strategies of streamlining for the brand’s upcoming IPO. Jacobs was positive that closing the Marc by Marc Jacobs was for the better. The designer believed that high and low fashions should exist harmoniously and without blatant distinction. In an interview he stated that “[Marc by Marc Jacobs] wasn’t supposed to be a second line or the poor-relative-of.”
“Marc Jacobs missed a great opportunity to be a relevant accessible brand, in the same vein as Michael Kors,” said Luca Solca, the head of luxury goods at Exane BNP Paribas. “Instead, the brand moved upmarket, and even killed the Marc by Marc Jacobs line, which I think was a mistake.”
Jacobs’ inability to understand the fashion industry today had also rattled the brand. In an interview the designer admitted that he was “out of touch with what today really looks like.” Disjointed designs coincided with falling profits as the brand struggled to resonate with the young generation.
Personal changes negatively affected the performance of the brand as well. Robert Duffy both a brand co-founder and longtime motivator of Jacobs, departed from his position as president in 2015 as well. Former Kenzo head Eric Marechalle and former Baja East designer John Targon also followed suite and stepped down from their roles. The brand faced more turbulence when in 2017, LVMH halted the production of Marc Jacobs’ menswear line.
Despite the label experiencing endless declining sales and store closures -- the brand is fighting to stay afloat.
In 2019, Marc Jacobs launched a lower-price brand called “The Marc Jacobs” offering ready-to-wear, accessories and leather good. The launch was seen as a second coming of Marc by Marc Jacobs, launched in 2005 and discontinued in 2005. Can this new brand save Marc Jacobs? It seems like it is; a new era of Marc Jacobs is coming.
Marc Jacobs has seen a spike in interest amongst young celebrities such as Bella Hadid and Miley Cyrus and Dua Lipa. The brand’s Jelly Snapshot bag also featured in the latest Netflix series Emily in Paris -- signifies the brand’s comeback.
Photo Courtesy INSTAGRAM/ @MARCJACOBS
Photo Courtesy INSTAGRAM/ @MARCJACOBS
Photo Courtesy INSTAGRAM/ @BELLAHADID
Photo Courtesy PETER WHITE GETTY IMAGES
For Spring/Summer 2020, Jacobs presented ‘60s mod style. The non-conformist collection was in tune with this young generation that openly embraces fluidity and unapologetic expression. The brand effortlessly continued to channel the sensationalism of the fashion show through celebrity-boasting. Notable celebrity appearances includes Miley Cyrus walking in the brand’s Fall/Winter 2020/2021 runway.
By: Temwa Namandwa