LVMH Watch Brands Hublot, Zenith Expect Sales Rebound in 2021

A watch is displayed at a shop of LVMH's Hublot, as the spread of the coronavirus disease (COVID-19) continues, in Zurich, Switzerland January 25, 2021. (Reuters)
A watch is displayed at a shop of LVMH's Hublot, as the spread of the coronavirus disease (COVID-19) continues, in Zurich, Switzerland January 25, 2021. (Reuters)
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LVMH Watch Brands Hublot, Zenith Expect Sales Rebound in 2021

A watch is displayed at a shop of LVMH's Hublot, as the spread of the coronavirus disease (COVID-19) continues, in Zurich, Switzerland January 25, 2021. (Reuters)
A watch is displayed at a shop of LVMH's Hublot, as the spread of the coronavirus disease (COVID-19) continues, in Zurich, Switzerland January 25, 2021. (Reuters)

Swiss luxury watchmakers Hublot and Zenith, both part of French group LVMH, expect sales to rebound in 2021, after a difficult 2020 and a challenging start to the new year, their chief executives said on Monday.

Swiss watchmakers’ sales slid last year as stores were affected by pandemic-related closures and as tourism, an important driver of the luxury watch business, collapsed.

Some companies, which have a strong presence in mainland China, have benefited from a rebound in demand, such as Richemont, which returned to growth in the final quarter of 2020.

“For Hublot, we expect 15-20% sales growth this year ... In China, we still have a lot of potential, we expect very strong growth of 30-50% there,” CEO Ricardo Guadalupe told Reuters in a phone interview during LVMH watch week.

Physical watch fairs have been cancelled again in 2021, so that LVMH’s watch brands are showing off their luxury timepieces virtually this week.

TAG Heuer, the group’s biggest watch label, is not taking part, but its new CEO Frederic Arnault said in a video message the brand had been “very resilient” last year.

Hublot’s Guadalupe said sales growth in the final quarter had been better than in the third for LVMH’s watch and jewelry business overall as well as for Hublot. LVMH, the world’s biggest luxury goods group, is due to publish full-year results on Tuesday.

Guadalupe said growth at Hublot had come from mainland China, while Macau had also improved since October. Hong Kong was still difficult, due to the political situation, but Japan and the Middle East were doing well, he said.

Zenith CEO Julien Tornare said the brand’s successful turnaround was interrupted last year by the pandemic, but Japan, China and the United States should fuel growth this year.

Tornare said problems in Hong Kong, formerly the No.1 market for Swiss watches, would not disappear with the end of the pandemic and were a major headache for watchmakers.

Meanwhile, Guadalupe said Western Europe remained difficult due to the lack of tourists. Store closures related to COVID-19 restrictions are currently hitting sales in Switzerland, Germany, the Netherlands and the United Kingdom.

He said the brand was looking to further streamline its distribution network in the coming years, but would open four new stores in second-tier cities in China this year.

A monitoring system helped Hublot to avoid excess stock build-up at retailers, but in some hard-hit areas, such as cruise ships, the brand was ready to take back unsold timepieces, Guadalupe said.

Online sales of Hublot watches, which cost 18,000 euros ($21,864.60) on average, are still small and are expected to reach 2-3% of total sales this year. Zenith, whose watches cost 10,000 Swiss francs on average, sold about 5-6% of its watches online last year.



Prada to Launch $930 ‘Made in India’ Sandals after Backlash

FILE PHOTO: Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi/File Photo
FILE PHOTO: Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi/File Photo
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Prada to Launch $930 ‘Made in India’ Sandals after Backlash

FILE PHOTO: Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi/File Photo
FILE PHOTO: Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi/File Photo

Prada will make a limited-edition collection of sandals in India inspired by the country's traditional footwear, selling each pair at around 800 euros ($930), Prada senior executive Lorenzo Bertelli told Reuters, turning a backlash over cultural appropriation into a collaboration with Indian artisans.

The Italian luxury group plans to make 2,000 pairs of the sandals in the regions of Maharashtra and Karnataka under a deal with two state-backed bodies, blending local Indian craftsmanship with Italian technology and know-how.

"We'll mix the original manufacturer's standard capabilities with our manufacturing techniques", Bertelli, who is chief marketing officer and head of corporate social responsibility, told Reuters in an interview.

The collection will go on sale in February 2026 across 40 Prada stores worldwide and online, the company said. Prada faced criticism six months ago after showing sandals resembling 12th-century Indian footwear, known as Kolhapuri chappals, at a Milan show.

Photos went viral, prompting outrage from Indian artisans and politicians. Prada later admitted its design drew from ancient Indian styles and began talks with artisan groups for collaboration.

It has now signed an agreement with Sant Rohidas Leather Industries and Charmakar Development Corporation (LIDCOM) and Dr Babu Jagjivan Ram Leather Industries Development Corporation (LIDKAR), which promote India’s leather heritage.

"We want to be a multiplier of awareness for these chappals," said Bertelli, who is the eldest son of Prada founders Miuccia Prada and Patrizio Bertelli.

A three-year partnership, whose details are still being finalized, will be set up to train local artisans. The initiative will include training programs in India and opportunities to spend short periods at Prada’s Academy in Italy.

Chappals originated in Maharashtra and Karnataka and are handcrafted by people from marginalized communities. Artisans hope the collaboration will raise incomes, attract younger generations to the trade and preserve heritage threatened by cheap imitations and declining demand.

"Once Prada endorses this craft as a luxury product, definitely the domino effect will work and result in increasing demand for the craft," said Prerna Deshbhratar, LIDCOM managing director.

Bertelli said the project and training program would cost "several million euros", adding that artisans would be fairly remunerated.


Trial of Chinese Crime Gangs in Italian Fashion Stalls amid Sabotage Fears

Italian Guardia di Finanza (Tax Police) carry out a search at a textile firm during an investigation, in the Tuscan city of Prato, Italy, in this handout photo obtained by Reuters. Guardia di Finanza Press Office/Handout via REUTERS
Italian Guardia di Finanza (Tax Police) carry out a search at a textile firm during an investigation, in the Tuscan city of Prato, Italy, in this handout photo obtained by Reuters. Guardia di Finanza Press Office/Handout via REUTERS
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Trial of Chinese Crime Gangs in Italian Fashion Stalls amid Sabotage Fears

Italian Guardia di Finanza (Tax Police) carry out a search at a textile firm during an investigation, in the Tuscan city of Prato, Italy, in this handout photo obtained by Reuters. Guardia di Finanza Press Office/Handout via REUTERS
Italian Guardia di Finanza (Tax Police) carry out a search at a textile firm during an investigation, in the Tuscan city of Prato, Italy, in this handout photo obtained by Reuters. Guardia di Finanza Press Office/Handout via REUTERS

A landmark trial in Italy of Chinese crime gangs has suffered so many mishaps - from the disappearance of documents to the resignation of interpreters - that a senior prosecutor suspects it's being sabotaged to protect the criminals' grip on Europe's fashion industry.

The case, launched after two Chinese men were hacked to death with machetes in 2010, is aimed at dismantling an illicit network accused of controlling the logistics of the continent's multi-billion-euro garments sector from the city of Prato in Tuscany.

Instead, it has become a cautionary tale about the obstacles Italy's justice system faces when confronting international organized crime without the tools it has used effectively to fight home-grown mafia groups, prosecutors say.

Reuters spoke to two of Italy's most senior anti-mafia investigators, and more than half a dozen textile workers, union representatives and defense lawyers, to gain a rare glimpse into the challenges of tackling alleged Chinese organized crime.

"The suspicion is that there is interference from the Chinese community and Chinese authorities in this matter," said Luca Tescaroli, a veteran of Italy's war against the mafia who is now Prato's chief prosecutor and leading the charge against Chinese crime gangs.

The Chinese embassy in Rome did not reply to emails requesting comment on Tescaroli's remarks. China's foreign, public security and justice ministries did not immediately reply to Reuters' requests for comment for this story.

When the latest court interpreter failed to show up to a hearing at the end of September, a quick check revealed she had returned to China and her transcripts were "incomprehensible and unusable", Tescaroli said.

The translator was the second to walk off the job and no other Chinese interpreter in Tuscany has agreed to take over. Tescaroli has opened an investigation into the possibility that someone is looking to sink the trial.

The violence prosecutors hoped to curb has only intensified as the trial flounders, with the battle for control of coat hanger production and fast-fashion freight spawning a string of bomb and arson attacks in Italy, France and Spain.

There have been at least 16 attacks, including cases of the destruction of property, since April 2024, according to a Reuters tally of official reports.

The Prato prosecutor and his colleagues are pressing the judges in the so-called China Truck trial to define the Chinese gangs legally as mafia groups – a designation that would unlock sweeping powers, asset seizures and stiffer sentence.

However, in Italy that label is difficult to secure, even more so if the organizations are rooted abroad, making them harder to penetrate than home-grown crime groups such as Sicily's Cosa Nostra.

Wedged in the hills northwest of Florence, Prato is billed as Europe's largest textile manufacturing hub, hosting more than 7,000 textile and garment companies that register some 2.3 billion euros ($2.68 billion) in official annual exports. Over 4,400 of firms are Chinese owned, local authorities say.

Almost a quarter of its residents are foreigners, the largest ratio in Italy, but the percentage is likely much higher as many newcomers are illegal immigrants without work permits.

Prato's streets are lined with Chinese-owned workshops, warehouses, and businesses that have transformed the city into a global fast-fashion production center, and a flashpoint for violence linked to criminal networks.

The China Truck investigation closed in 2018 with prosecutors alleging that the 58 suspects had formed "a criminal association equipped with very significant financial means ... with support and resources abroad".

Seven years on, not a single defendant or witness has been called to testify.

Meanwhile, the alleged mastermind Zhang Naizhong, described by investigators as a "boss of bosses", slipped back to China in 2018 after he was released from pre-trail custody and prosecutors doubt he will ever return to Italy.

His Italian lawyer Melissa Stefanacci declined to comment on any aspect of the case. Zhang and the other suspects have pleaded not guilty.

The case emerged from what Francesco Nannucci, then head of Prato's police Flying Squad, described to Reuters as a war between two rival gangs, one made up of Chinese originally from Zhejiang and the other of Chinese originally from Fujian, for control of territory in Europe.

Despite keen police interest and multiple investigations in Prato, the gang violence has escalated in the past two years.

In July 2024, a Chinese businessman based in Prato was stabbed multiple times by a group of six men, including a former soldier, who had flown in from China "to protect, through violence, the business interests of the monopolistic group in the coat-hanger sector," prosecutors said in a statement.

All six were arrested and sentenced to 7.5 years in jail for attempted murder.

In April of this year, Zhang Dayong, Zhang's alleged right-hand man who was also charged in the China Truck case, was shot dead in Rome alongside his girlfriend. No-one has been arrested for those killings.

Tescaroli said emerging companies often with the prefix "Xin" - meaning "new" in Chinese - were trying to undercut established players, selling hangers at about 6 cents each compared to the previous market rate of about 27 cents.

"Since the volumes are vast, a few cents of margin on each piece guarantee gigantic profits," he said.

Chinese businesses in the textile district have long operated within what investigators call the "Prato system", marked by corruption and irregular practices, including labor and safety abuses as well as tax and customs fraud. These companies can appear and disappear overnight, engaging in a cat-and-mouse game with authorities to dodge taxes and avoid having to give workers proper contracts, according to Arturo Gambassi, a representative from the Sudd Cobas union, which defends workers' rights in the textile sector.

"In all the firms where we have initiated labor disputes, we saw that their business name had changed in the previous two years," he told Reuters. Police say fabrics are often smuggled in from China to avoid customs duties, while profits are sent back through illicit money-transfer channels, with up to 4 million euros shipped out of Rome's Fiumicino airport each week, according to prosecutors and police.

To maintain their competitive edge, the industry depends on cheap, round-the-clock labor, largely from China and Pakistan, with workers facing a backlash if they seek legal contracts.

On November 17, more than 15 Chinese citizens assaulted a union demonstration in Prato. Plain clothes police who were observing the protest were also attacked, with two officers needing hospital treatment, a police statement said.

Italian prosecutors succeeded in dismantling major Italian mob networks, notably Cosa Nostra, in part thanks to legislation introduced specifically to tackle the mafia.

The official mafia designation carries stiffer sentences and lets courts infer membership from conduct, a key advantage when prosecutors must overcome silence and intimidation.

Tescaroli is trying to get the courts to brand the Chinese gangs as mafia groups, but Barbara Sargenti, Italy's national anti-mafia prosecutor, questioned whether this would happen.

To establish that there is a Chinese mafia, Italy needs to map these organizations either from inside sources or with help from judicial and police authorities in China.

Sargenti said cooperation with China was proving "very difficult" and, so far, only one Chinese citizen had turned state witness within Italy, in a drug-related case.

Sargenti said China's police and judicial authorities had been in touch with Italy's justice ministry in recent months, saying it was willing to send officers collaborate with the Italians but there had been no follow up.

"Investigations are, let's say, very complicated," she said. Without the mafia designation or Chinese cooperation, Tescaroli's case in the China Truck trial relies on the fragile scaffolding of Italian procedure, and the willingness of translators to show up.

After the Tuscan interpreters made themselves unavailable, two new translators were appointed on November 17 - Chinese citizens from the northern port city of Genoa, outside Tuscany.

But court officials aren't claiming victory, yet, with the new translators saying they could not guarantee they would understand the dialects captured in phone taps that form crucial evidence in the case. The next hearing is scheduled for May 15.


Saudi Fashion Commission Concludes 'Building a Fashion Brand' Program in Partnership with Fondazione Sozzani

 The program concluded with an official ceremony at the Future Creative Residence, where participants received certificates of completion - SPA
The program concluded with an official ceremony at the Future Creative Residence, where participants received certificates of completion - SPA
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Saudi Fashion Commission Concludes 'Building a Fashion Brand' Program in Partnership with Fondazione Sozzani

 The program concluded with an official ceremony at the Future Creative Residence, where participants received certificates of completion - SPA
The program concluded with an official ceremony at the Future Creative Residence, where participants received certificates of completion - SPA

Saudi Arabia's Fashion Commission successfully concluded its five-day intensive program titled “Building a Fashion Brand,” held at the Future Creative Residence (FCR) in Riyadh.

According to a press release issued by the commission today, the program aimed to empower ambitious Saudi talents and equip beginner designers with essential knowledge, strategic tools, and practical guidance to support the development and launch of their own fashion brands. It was delivered in partnership with Fondazione Sozzani, an international institution dedicated to preserving culture and creativity and promoting sustainable fashion.

The program highlighted the intersection between fashion, visual culture, and sustainability. Participants engaged in a rich week of lectures, workshops, one-on-one sessions, and brand development activities led by international experts, SPA reported.

The program was supervised by Creative Director of Fondazione Sozzani Sara Sozzani Maino, one of the world's most prominent advocates of responsible fashion known for her work with Vogue Italia and Vogue Talents, alongside Riccardo Terzo, stylist, editor, and creative director of DUST China, who has extensive experience in talent scouting and the history of fashion imagery.

The two experts presented an integrated curriculum covering brand identity, storytelling, visual language, portfolio development, responsible fashion practices, and the evolving landscape of global fashion culture.

Participants were offered a continuous creative journey, exploring the foundations of defining personal and brand identity, developing integrated visual and written narratives, understanding contemporary fashion imagery and communication methods, and building a design approach rooted in sustainability, responsibility, and professional ethics.

They also enhanced their ability to develop strategies through research and moodboards, explore collaboration opportunities, and build integrated creative ecosystems, in addition to benefiting from individual mentoring sessions focused on refining vision, strategy, and identity.
The release added that their perspectives were further broadened through documentary screenings, open discussions, and analytical studies of global brands such as Jacquemus, Wales Bonner, and the Fashion Revolution movement, contributing to strengthened awareness of contemporary international trends.

On the final day, participants presented their developed brand concepts before a panel of experts, showcasing identity statements, visual visions, and strategic foundations for each brand. The program concluded with an official ceremony at the Future Creative Residence, where participants received certificates of completion.

The “Building a Fashion Brand” program reflects the Fashion Commission’s commitment to empowering the new generation of Saudi designers, enhancing global creative exchange, and building a sustainable fashion ecosystem that meets future needs within the Kingdom.

Through its strategic partnerships with leading international institutions such as Fondazione Sozzani, the commission continues to develop specialized programs that support emerging talents and elevate the fashion scene in Saudi Arabia.

In this context, the Sozzani Foundation is preparing to launch another program under the supervision of the Fashion Commission titled “Content Creation in Fashion,” scheduled for December 15, 2025, in Milan. A group of Saudi designers has been selected to participate, including one designer nominated from the previous program to ensure continuity of learning and deepening of acquired skills.