New York is the second-wealthiest city on earth and it still will be in 2025, according to Nathalie Remy, partner at McKinsey & Co.
Remy’s presentation provided insight on urban growth and how to help brands expand their reach, specifically in terms of mega and middleweight cities, through McKinsey & Co.’s proprietary methodology Cityscope, which helps brands find the growing segments in cities for their products and global growth by category.
McKinsey & Co. differentiates between two types of cities: megacities and middleweights. Megacities have a gross domestic product of about $250 billion, and there will be 60 megacities in 2025. Together these cities will account for a quarter of global wealth.
“The magnitude and pace of change are exploding,” said Remy. “And growth has become a key topic for most companies. These megacities will be key, but there will be hundreds of middleweights.”
The first 400 middleweight cities from the emerging markets combined will generate in less than 15 years a volume of wealth equivalent to the entire U.S. community today.
McKinsey & Co. has developed Cityscope because GDP growth is not a predictor of beauty growth. “Beauty market growth will accelerate and will gain one percentage point on average per year,” said Remy. “At that pace we estimate that the market will reach $540 billion in 2025. The share of emerging markets, which is approximately 40 percent, will go up close to 60 percent in 13 years. So beauty growth is shifting regionally, like economic growth.”
Of course, growth would not be sustainable without targeting individual categories.
“Growth is granular,” she said. “And it’s exactly because mass and prestige are not driven by the same factors, they will not grow the same way across cities. So depending on who you are, you are not going to focus on the same places.”
Despite not having all the answers, Remy said the numbers can provide insight for the future. “As beauty players, cities matter more for you than other categories,” said Remy. “Focusing on cities will be a unique way to accelerate your growth.”
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion
“I’m Russian and I love to use all these little tricks that I got from my grandma or my mom. We didn’t have a lot of money for creams or anything like that so we would use a garden as a beauty treatment regime. We’d put cucumber in the fridge and do a cucumber mask,” says model @irinashayk on one of her beauty hacks. WWD asked celebs what their go-to self-care rituals are. See what Naomie Harris, Freida Pinto and more said on WWD.com. #wwdeye #wwdbeauty (📷: @zefashioninsider)
Exclusive: @viktorandrolf are teaming up with @Zalando on a collection made from leftover clothing. The lineup, which lands at the retailer February 1, includes 17 pieces adorned with sliced up and repurposed overstock from the retailer’s private label collection. Pictured here is a look from the collection –– see more on WWD.com. #wwdfashion #wwdnews
@duewestnyc is the newest bar joining the collection of intimate neighborhood-focused spaces in the West Village. The cocktail menu, which includes bitters and syrups made in-house, offers a “Build Your Own Old-Fashioned” – like the one pictured here – where guests can choose from a list of spirits and unexpected sugars and bitters. #wwdeye
Spotted at last night’s National Board of Review gala in NYC: Angelina Jolie. Jolie – along with Meryl Streep, @lupitanyongo and more – continued the all-black dress code from Sunday’s Golden Globes. #wwdeye (📷: @lexieblacklock)