Loro Piana’s quiet ascent to become LVMH’s Hermès
Loro Piana campaign image Credits: Loro Piana Opinion Originally a wool merchant, Loro Piana began as a textile mill, exporting high-end fabrics to Europe, Japan, and the Americas. Renowned for its extra-fine wool, cashmere, and vicuña, the company did not enter the ready-to-wear and luxury goods market until the 1980s. It is fair to say it hasn’t looked back since. By the time LVMH acquired an 80 percent stake in 2013 for 2 billion euros, Loro Piana was already a substantial business. Though its cashmere products were once considered somewhat staid and largely geared toward Asian consumers, the brand offered a unique proposition—one less susceptible to the shifting tides of consumer trends and market volatility than many of its competitors. Today, Loro Piana is a quiet powerhouse within LVMH’s fashion division. In 2023, it reported sales of 2.4 billion euros, ranking among the group’s top-performing brands. With its fiercely loyal clientele and ultra-luxury positioning, Loro Piana is more akin to Hermès than a traditional fashion house—a comparison that incoming CEO Frédéric Arnault is undoubtedly aware of. Unlike other fashion maisons, Loro Piana’s textile division remains a highly lucrative enterprise, supplying luxury fashion houses, private clients, interior designers, and the high-end hospitality sector. Its core business has always been textiles and exclusive yarns rather than finished garments. Opportunities for growth This, of course, presents significant opportunities for growth. Some argue that Loro Piana has the potential to become the Hermès of the LVMH fashion division. However, unlike Hermès, it lacks a signature handbag—a defining product that fuels desirability and resale value. Accessories, particularly handbags and footwear, could be key growth drivers if executed with precision. Notably, there is no star designer behind Loro Piana’s ready-to-wear collections. The company has kept a low profile in its hiring strategy, opting for a Chief Product Officer rather than an Artistic Director, and collaborating seasonally with stylists. Paul Surridge, who had been a consulting menswear designer, recently departed to lead menswear at Prada—a notable loss for the brand. Mr. Arnault may look to streamline and realign Loro Piana’s design and product teams, fostering greater synergy and efficiency—something that, beyond the bottom line, often leads to a more cohesive creative vision and a happier workforce. Yet his most critical challenge will be maintaining sustainable growth. Like Hermès, Loro Piana must prioritise measured, long-term expansion over trend-driven hype, avoiding the kind of rapid ascent seen at Gucci under Alessandro Michele. The brand’s understated marketing and controlled production have already created an aura of exclusivity akin to the Hermès Birkin strategy, where scarcity fuels desirability. Here, craftsmanship and discretion remain paramount. Though recent collaborations with brands like New Balance have broadened its appeal, Loro Piana must be careful not to overextend itself. Scaling up too aggressively could erode its exclusivity—a risk LVMH will likely be keen to avoid. Pricing and positioning will remain critical. Loro Piana cashmere sweaters start at around 1,000 euros while handbags begin at 1,900 euros. Some of its coats exceed 10,000 euros, firmly placing the brand in the ultra-luxury tier. Still, Hermès enjoys a far stronger global presence and a more diversified product range, spanning leather goods, scarves, homeware, and beyond. Loro Piana remains more niche, rooted in its textile heritage. The question now is how Mr. Arnault will drive growth while preserving the brand’s DNA—and whether Loro Piana can truly emerge as a rival to Hermès.
Opinion Originally a wool merchant, Loro Piana began as a textile mill, exporting high-end fabrics to Europe, Japan, and the Americas. Renowned for its extra-fine wool, cashmere, and vicuña, the company did not enter the ready-to-wear and luxury goods market until the 1980s. It is fair to say it hasn’t looked back since.
By the time LVMH acquired an 80 percent stake in 2013 for 2 billion euros, Loro Piana was already a substantial business. Though its cashmere products were once considered somewhat staid and largely geared toward Asian consumers, the brand offered a unique proposition—one less susceptible to the shifting tides of consumer trends and market volatility than many of its competitors.
Today, Loro Piana is a quiet powerhouse within LVMH’s fashion division. In 2023, it reported sales of 2.4 billion euros, ranking among the group’s top-performing brands. With its fiercely loyal clientele and ultra-luxury positioning, Loro Piana is more akin to Hermès than a traditional fashion house—a comparison that incoming CEO Frédéric Arnault is undoubtedly aware of.
Unlike other fashion maisons, Loro Piana’s textile division remains a highly lucrative enterprise, supplying luxury fashion houses, private clients, interior designers, and the high-end hospitality sector. Its core business has always been textiles and exclusive yarns rather than finished garments.
Opportunities for growth
This, of course, presents significant opportunities for growth. Some argue that Loro Piana has the potential to become the Hermès of the LVMH fashion division. However, unlike Hermès, it lacks a signature handbag—a defining product that fuels desirability and resale value. Accessories, particularly handbags and footwear, could be key growth drivers if executed with precision.
Notably, there is no star designer behind Loro Piana’s ready-to-wear collections. The company has kept a low profile in its hiring strategy, opting for a Chief Product Officer rather than an Artistic Director, and collaborating seasonally with stylists. Paul Surridge, who had been a consulting menswear designer, recently departed to lead menswear at Prada—a notable loss for the brand.
Mr. Arnault may look to streamline and realign Loro Piana’s design and product teams, fostering greater synergy and efficiency—something that, beyond the bottom line, often leads to a more cohesive creative vision and a happier workforce. Yet his most critical challenge will be maintaining sustainable growth. Like Hermès, Loro Piana must prioritise measured, long-term expansion over trend-driven hype, avoiding the kind of rapid ascent seen at Gucci under Alessandro Michele.
The brand’s understated marketing and controlled production have already created an aura of exclusivity akin to the Hermès Birkin strategy, where scarcity fuels desirability. Here, craftsmanship and discretion remain paramount. Though recent collaborations with brands like New Balance have broadened its appeal, Loro Piana must be careful not to overextend itself. Scaling up too aggressively could erode its exclusivity—a risk LVMH will likely be keen to avoid.
Pricing and positioning will remain critical. Loro Piana cashmere sweaters start at around 1,000 euros while handbags begin at 1,900 euros. Some of its coats exceed 10,000 euros, firmly placing the brand in the ultra-luxury tier.
Still, Hermès enjoys a far stronger global presence and a more diversified product range, spanning leather goods, scarves, homeware, and beyond. Loro Piana remains more niche, rooted in its textile heritage. The question now is how Mr. Arnault will drive growth while preserving the brand’s DNA—and whether Loro Piana can truly emerge as a rival to Hermès.
