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--:-- Sean Rameswaram: Welcome to Today Explained. I'm Sean Rameswaram.
--:-- Sean Rameswaram: Some musicians are so big, they only need one name. Madonna, Prince, Beyonce, Shakira, Rihanna, Adele, and Pharrell. Pharrell might be the smallest of those big names I just mentioned, but he's arguably played the biggest role out of all of them in shaping popular music over the last quarter century.
--:-- Sean Rameswaram: He was the guy behind this. And this. And this. And this. And this. And of course this. But also this. But now Pharrell's gonna try and conquer an entirely different industry. He's gonna be one of the top guys at the biggest luxury fashion house in the world.
--:-- Sean Rameswaram: That story from the two guys who broke the news is coming up on Today Explained. Support for Today Explained comes from Adio. Adio is an AI-native customer relationship management platform that Adio says is built for the next era of companies.
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--:-- Sean Rameswaram: You can go to adio.com slash todayexplained to get 15% off your first year. That's A-T-T-I-O dot com slash todayexplained. Support for this show comes from strawberry.me. Be honest. Are you happy with your job? Or are you stuck in one you've outgrown? Or never wanted in the first place?
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--:-- Sean Rameswaram: Today Explained, Sean Ramos from last week, the Wall Street Journal shocked two worlds at once with one scoop. Pharrell Williams has been hired by Louis Vuitton to be their menswear creative director.
--:-- Sean Rameswaram: Nick Kostov, based in Paris, was one of the very fashionable dudes behind the scoop. Suddenly here we have like a multidisciplinary artist who, you know, obviously is known for his work in music. Taking over one of the major, major kind of luxury and fashion names in Europe.
--:-- Nick Kostov: Lots of reaction, lots of people very, very positive, very excited about this. Also some maybe more traditionalist people saying, well, what about, you know, the kind of pure designers and should they not be at the top of a house like Louis Vuitton creating the collection?
--:-- Nick Kostov: So it's got lots of people talking, lots of reaction, and I think that probably can only be a good thing for Louis Vuitton.
--:-- Sean Rameswaram: You said a major, major fashion house, a major, major company. Tell us how major Louis V is and the company it belongs to.
--:-- Nick Kostov: Louis V is the biggest luxury company in the world by sales. It did more than $20 billion in sales last year, which is huge, doubled in four years.
--:-- Nick Kostov: And, you know, there was always a question of how big can you get? Because obviously these luxury companies, these fashion houses play a lot on exclusivity. That's part of how they keep prices high.
--:-- Nick Kostov: How big can you get before you lose this exclusivity? Louis Vuitton is showing that it can become very, very, very big and still be very exclusive.
--:-- Nick Kostov: The conglomerate that they belong to, which is called LVMH, is now Europe's largest company. It's seen incredible growth in recent years.
--:-- Nick Kostov: Despite the inflationary pressures, LVMH, which owns luxury brands including Louis Vuitton and Christian Dior, posted strong third quarter sales.
--:-- Nick Kostov: Louis Vuitton is the biggest brand, but there are others, which I'm sure lots of people will have heard of. The second biggest brand, for example, is Dior.
--:-- Nick Kostov: But the conglomerate spans, you know, it has Hennessy Cognac, it has champagne, it has many other fashion houses like L'Oeve, Celine, it has hotels.
--:-- Nick Kostov: They own luxury. And, you know, they're run now by the world's richest man, Bernard Arnault, who is the CEO and chairman and controlling shareholder.
--:-- Sean Rameswaram: Luxury for me is how can you create desire? Arnault is the world's richest person with a net worth of $191 billion at the start of 2023.
--:-- Sean Rameswaram: And yes, they're very big. It sounds like the wealthiest man in the world can take a chance on someone like Pharrell Williams, but it also sounds like there's a lot at stake here.
--:-- Sean Rameswaram: Asking a guy who may drop it like it's hot to be in charge of their brand. What did they say about this decision when they announced it?
--:-- Nick Kostov: So I think the first thing to say is that Louis Vuitton describes himself as a cultural brand, more than a fashion brand.
--:-- Nick Kostov: And so it has to tap into culture, tap into art, try and find the next cool thing.
--:-- Nick Kostov: I think the second thing to say is that there's a bit of a misconception in the luxury industry that luxury is simply based on heritage and tradition.
--:-- Nick Kostov: And I think if that was the case, a lot of these brands that are now in museums and that we don't talk about would still be around.
--:-- Nick Kostov: And what we've really seen in recent years is that it's also just hugely about innovation and that these are the brands that are being the most successful.
--:-- Nick Kostov: If you stand still, you will die. People will get bored. And so this is what Louis Vuitton has done very, very successfully in recent years.
--:-- Nick Kostov: They've grown sales massively, but they are taking risks. They are taking risks.
--:-- Nick Kostov: And for now, these risks are paying off.
--:-- Sean Rameswaram: Most people think of purses and maybe suitcases when they think of Louis Vuitton. But what are they hiring Pharrell to do? What exactly will he be in charge of?
--:-- Nick Kostov: Still to this day, I mean, much of Louis Vuitton profit, much of their sales comes from handbags, you know, suitcases, leather goods in general, which is historically what the company has done.
--:-- Nick Kostov: I think what they use menswear for, and menswear is a small percentage of their revenue, but what they use it for is to infuse the brand with that newness, right, that Pharrell will be able to bring and and to make it cool and to make it hype and to make it desirable.
--:-- Nick Kostov: What they're trying to do is create desire.
--:-- Sean Rameswaram: And so I think that's what he'll be coming in to do and that's also what Louis Vuitton has done very well with menswear in general as I say it's a small percentage of their sales, a small percentage of their profit but they get huge visibility and then when people buy this um small leather good the small Louis Vuitton wallet let's say for the aspirational customers or whatever for the first time they're actually buying into this like incredibly exclusive universe that has all the best artists, all the best musicians, all the best celebrities.
--:-- Sean Rameswaram: First of all, I love the suits. The suits are so classic. Louis Vuitton. Clean.
--:-- Nick Kostov: They have been very experimental. And it started really with Marc Jacobs.
--:-- Nick Kostov: I think it's good to not have too many boards, to not have rules and just enjoy what it is that you choose to wear or what fashion means.
--:-- Nick Kostov: He was the designer at Louis Vuitton. And he did various collaborations, one of which was with Kanye West, actually, but also with other artists.
--:-- Nick Kostov: And then in 2017, they did this collaboration with Supreme, which is this kind of cult streetwear skateboarding brand, and which people at the time thought was impossible, that Louis Vuitton, this kind of like super exclusive luxury French brand, you know, from 1854, would do this collaboration with Supreme.
--:-- Sean Rameswaram: All right, so before I start unboxing all these boxes, I just want to give you a little backstory about this release.
--:-- Nick Kostov: It's been one of the hardest and most frustrating releases to get. And that kind of flew off the shelf and it started this kind of new era in fashion.
--:-- Sean Rameswaram: Then the following year, they hired Virgil Abloh.
--:-- Nick Kostov: Kanye and myself have been friends for 14 years now. We've always been driven by fashion. We've always been the kids.
--:-- Nick Kostov: Virgil Abloh was extremely effective at, you know, broadening the consumer base for Louis Vuitton. It created a lot of hype. He was another guy who was multidisciplinary.
--:-- Nick Kostov: So I studied engineering, then got a master's degree in architecture. And I explained to people, it's like how the world works in a way. It's like an analytical thinking, like how do you make a building stand up?
--:-- Nick Kostov: But then there's the yin-yang part of it. It was like, what does the building look like and what does it do? How does it perform? Why is it relevant? So it's analytical plus like aesthetic.
--:-- Nick Kostov: And I used that in fashion design or my art practice.
--:-- Nick Kostov: He was a DJ, he was an architect, he was an artist in general and what he did very, very well was just broadened the base of consumers who were interested in Louis Vuitton.
--:-- Nick Kostov: He never lost touch with, you know, those people who, those aspirational consumers who want to buy their first, who kind of want to make that quote-unquote Louis Vuitton money, right?
--:-- Nick Kostov: And then go and buy their first leather good or their first piece of Louis Vuitton.
--:-- Sean Rameswaram: When we say that they've doubled sales within four years, they're the biggest luxury brand in the world. I think Virgil Abloh does have his share of credit to take for that.
--:-- Nick Kostov: Abloh's impact clear as tribute after tribute from stars of fashion, music, sports, and Hollywood pour in.
--:-- Sean Rameswaram: Pharrell Williams writing, My Heart is Broken.
--:-- Sean Rameswaram: And he dies in November 2021 of cancer.
--:-- Sean Rameswaram: Does Virgil Abloh sort of pave the way for someone like Pharrell to be chosen as his successor?
--:-- Nick Kostov: Yeah, I think so. I think first of all, the two were close.
--:-- Nick Kostov: And then secondly, unanimously, people say that Virgil Abloh was a success.
--:-- Nick Kostov: And again, this is another risk which Louis Vuitton took.
--:-- Nick Kostov: There was a lot of criticism when they hired someone like Virgil Abloh, who again was not your typical designer.
--:-- Nick Kostov: I think also what we've had is an interim period where they've had nobody at the head of Louis Vuitton menswear for like a year and a half.
--:-- Nick Kostov: And they've been working off like old designs that Virgil Abloh made.
--:-- Nick Kostov: But also it shows that there is a team of designers that will be below Pharrell Williams working under him.
--:-- Nick Kostov: And I think that's important for people to understand how fashion works.
--:-- Nick Kostov: Pharrell Williams will set the general direction, But these guys, they came out again in the last fashion show and they took a bow.
--:-- Nick Kostov: And there's hundreds who are working at Louis Vuitton.
--:-- Sean Rameswaram: You said Virgil Abloh was a sort of inarguable success. But you also mentioned that there's still a lot of hesitancy around Pharrell's appointment. Why is it that people still can't see someone like Pharrell in this role?
--:-- Nick Kostov: I think there are traditionalists who think that somebody who heads a fashion house should be a designer, should have formal training as a designer, should be able to cut cloth.
--:-- Nick Kostov: And Pharrell Williams, whilst he has a lot of experience in the fashion industry and he started a couple of brands of his own, has no formal training as a clothes designer.
--:-- Nick Kostov: And lots of the other names that have been mentioned as being in the running in recent months were these kind of more, I guess, typical pure designers who maybe some people felt were doing great work at smaller brands and should be given their chance at a huge behemoth like Louis Vuitton.
--:-- Sean Rameswaram: As I said, it's split. There's also some people who are incredibly excited at where the industry is going and who think that this is a great appointment.
--:-- Sean Rameswaram: And the other thing to say just quickly is LVMH, the empire to which Louis Vuitton belongs, it's so big and there are so many fashion brands that many of their fashion brands do have a more traditional designer at the head of it, including, by the way, Louis Vuitton women's wear.
--:-- Sean Rameswaram: Just to say that, you know, it depends what you're trying to achieve. Whether you go for someone who's like a much more traditional designer, or whether you go for a multidisciplinary like Pharrell Williams.
--:-- Sean Rameswaram: And obviously on the menswear side of Louis Vuitton, Louis Vuitton has looked at it and decided this is what we about and this will bring us what we need right now.
--:-- Sean Rameswaram: That was Nick Kostov, who broke the story about Pharrell taking over menswear at Louis V in the Wall Street Journal.
--:-- Sean Rameswaram: In a minute, Nick's colleague, with whom he broke the story, on the ever-increasing influence of celebrities in fashion.
--:-- Sean Rameswaram: It's Today Explained. Support for today's show comes from Adio. What is Adio?
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--:-- Sean Rameswaram: Support for this show comes from Macy's. It's almost fall and that means it's time to cycle your wardrobe to the cold setting because while everyone loves a breezy summer outfit, let's be real, layering is even more fun.
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--:-- Sean Rameswaram: Today, Explain is back. Nick is not, but his colleague Jacob Gallagher is, and he's here to talk about celebrities and fashion.
--:-- Jacob Gallagher: Pharrell is not the first. There have been a bunch in recent years. But primarily on the women's side.
--:-- Jacob Gallagher: So what we have seen in the past, I would say, you know, two decades or so is you have people like Victoria Beckham starting a brand and finding legitimacy with that.
--:-- Jacob Gallagher: To celebrate 10 years of her brand, Victoria Beckham made her London Fashion Week debut, showcasing her spring-summer 2019 collection.
--:-- Jacob Gallagher: That brand still endures today under her name.
--:-- Jacob Gallagher: You have people like, frankly, the Olsen twins who left behind being child stars and started The Row.
--:-- Jacob Gallagher: You got it, dude. Which is, you know, this kind of luxury Upper East Side corporate ice queen look that a lot of wealthy women really gravitate toward.
--:-- Jacob Gallagher: There's also epic flameouts. There's Lindsay Lohan designing for Ungaro.
--:-- Jacob Gallagher: The recent decision to hire actress and tabloid queen Lindsay Lohan as the artistic director of an established Parisian fashion house came as something of a shock to most people in the fashion industry.
--:-- Jacob Gallagher: A lot of listeners probably won't remember that because it was this much mocked blip for the brand and she was promptly fired.
--:-- Jacob Gallagher: And of course, you know, we can't have this conversation without mentioning Kanye West, now known as Ye, who made several runs at the runway over the years, often with the backing of Adidas.
--:-- Jacob Gallagher: And he, you know, there were times where he really did find legitimacy and where what he was doing was looked at as being really influential.
--:-- Jacob Gallagher: But then it would kind of fizzle and drop out.
--:-- Jacob Gallagher: And obviously, his runway show in Paris not that long ago was kind of the beginning of the downfall for him of late.
--:-- Jacob Gallagher: Another day, another Kanye West controversy. This time over shirts sporting the phrase, quote, white lives matter.
--:-- Jacob Gallagher: I think that, though, it's also important just contextually to note that a lot of designers through their time making clothing have become what we would call mainstream celebrities.
--:-- Jacob Gallagher: You know, Karl Lagerfeld comes to mind, someone who appeared in movies, lent his voice to the Grand Theft Auto video games.
--:-- Jacob Gallagher: Good morning, Liberty City. I slept in a cocoon. You too? This morning reminds me of Monte Carlo. Something about the way...
--:-- Jacob Gallagher: Ralph Lauren appears on Friends. Hi, Ralph. Hi, Kim.
--:-- Jacob Gallagher: Martin Scorsese makes a documentary about Giorgio Armani. And being a celebrity, being a public figure is kind of part and parcel with being a creative director these days.
--:-- Jacob Gallagher: I think I get why some of the biggest designers in the world eventually become celebrities.
--:-- Jacob Gallagher: But I'm curious what the success rate in your view is of the celebrities becoming designers from Victoria Beckham to the Olsen twins to Lindsay Lohan.
--:-- Jacob Gallagher: I didn't even know about that one to maybe Kanye West or or certainly Robin Fenty.
--:-- Jacob Gallagher: Rihanna is worth mentioning in this conversation because Rihanna has a partnership or has a contract rather with LVMH, which is the corporate conglomerate that Louis Vuitton is under.
--:-- Jacob Gallagher: Fenty Beauty, as we understand, is a successful endeavor. But there was a Fenty apparel line that fizzled after two years.
--:-- Jacob Gallagher: Hi, Vogue. It's Rihanna and welcome to Paris. Today, I'm going to be showing you some pieces from my new collection with Fenty.
--:-- Jacob Gallagher: So that's all to say that full-fledged brands that are designed by celebrities, I think the success rate is fairly low.
--:-- Jacob Gallagher: The celebrity working with the fashion brand, we often see that happen as a collaboration, which, you know, our understanding of the vast majority of those is that perhaps not even the celebrity, someone from their creative team maybe just kind of goes in at the very end and goes, that, that, I like that, I don't like that, that's cool, I'd wear that, that's cool, make that, you know, put that in purple and put it in the line.
--:-- Jacob Gallagher: And those partnerships are lucrative on both ends but they not necessarily enduring.
--:-- Jacob Gallagher: And they certainly you know kind of to the public it can be hard to keep up with them they happen so frequently it can be hard to say x fashion nova collection is you know making me more excited than x you know h&m collection.
--:-- Jacob Gallagher: Louis Vuitton could have partnered with Pharrell on a more temporary basis as Chanel did but they're clearly putting a lot of backing behind him and they're putting a lot of confidence in him by saying, no, this guy is our creative director.
--:-- Jacob Gallagher: He signed the contract. We're ready to go with him. And however long that contract may be, however long his tenure might last for right now, they're clearly putting their support behind him.
--:-- Jacob Gallagher: For people who best know Pharrell as like the guy who sings that happy song, which, by the way, I hate. I hate it so much.
--:-- Jacob Gallagher: Tell us about his his background in fashion, other than he's consistently been a very stylish looking dude for like 25 years.
--:-- Jacob Gallagher: I was going to say, so that is one part of it for sure, is that he is a very stylish guy.
--:-- Jacob Gallagher: The other part of it is that, you know, for really almost exactly 20 years now, he has been running businesses and working with fashion brands, designing clothing.
--:-- Jacob Gallagher: Billionaire Boys Club, which he started with Nigo, who's the Japanese designer behind A Bathing Ape, and who now is the creative director of Kenzo, which is also an LVMH brand, keeping it all in the family.
--:-- Jacob Gallagher: Billionaire Boys Club was one of those early kind of pioneering streetwear brands, all over print hoodies that zipped all the way up, you know, shirts with rockets on them, a lot of skate influence.
--:-- Jacob Gallagher: He had a skate shoe brand called Ice Cream that, you know, had neon colored shoes, shoes with diamonds and dollar bills on them.
--:-- Jacob Gallagher: And, you know, there was this kind of, he identified that that was this market that was out there, that people that perhaps listen to the music that he produced would be into, and he really capitalized on it.
--:-- Jacob Gallagher: But Pharrell also, it's important to note that he has this real, where Billionaire Boys Club, those t-shirts are, you know, comparatively affordable.
--:-- Jacob Gallagher: This guy also has a real taste for luxury. Like Pharrell loves a luxury good.
--:-- Jacob Gallagher: You know, there's photos of him holding Louis Vuitton luggage going back, you know, 20 years.
--:-- Jacob Gallagher: Is that why his music festival in D.C. was so expensive last summer?
--:-- Jacob Gallagher: Well, I think that every music festival is expensive to an extent. But yeah, yeah, I mean, it was not that long ago that Pharrell did a collaboration with Chanel.
--:-- Jacob Gallagher: You know, he and Karl Lagerfeld had this ongoing kind of creative dialogue.
--:-- Jacob Gallagher: Pharrell walked in Chanel collections.
--:-- Jacob Gallagher: This is a new time. It's a new era. It's exciting. Let's see where it goes.
--:-- Jacob Gallagher: I mean, those are really expensive clothes. You know, these are candy colored loafers that are, you know, four and five figures.
--:-- Jacob Gallagher: These clothes are expensive. But I would say in terms of the luxury space, what people are looking at now as kind of the example of what Pharrell might be able to do or, you know, saying, well, he's done this before.
--:-- Jacob Gallagher: He partnered with Marc Jacobs when Marc Jacobs was the creative director at Louis Vuitton on these millionaire sunglasses that, you know, to a certain fashion consumer, these are iconic.
--:-- Jacob Gallagher: He's been through the doors of that atelier before.
--:-- Jacob Gallagher: He seemingly, our understanding is, or our interpretation of that is, that he has a real understanding of how the design process works at these studios.
--:-- Jacob Gallagher: He's not necessarily going in cold.
--:-- Jacob Gallagher: And again, I think it just kind of goes to show that he's been working toward this for several decades.
--:-- Jacob Gallagher: And it's arrived for him.
--:-- Jacob Gallagher: Do you think he's got something to prove here?
--:-- Jacob Gallagher: Well, he's always going to have something to prove. Fans of Virgil and consumers that were used to his look, I would say they're primed to like what Pharrell is going to do.
--:-- Jacob Gallagher: But he certainly does have something to prove.
--:-- Jacob Gallagher: There is not a world in which he's going to get universal acclaim just because of who he is.
--:-- Jacob Gallagher: People have a short memory in fashion. You know, they might like you one season and dislike you the next.
--:-- Jacob Gallagher: And consumerist taste can turn really, really quickly.
--:-- Jacob Gallagher: And I think that you could say that the pathway that Louis Vuitton is taking right now is a doubling down, a continuation.
--:-- Jacob Gallagher: They're trying to really expand upon something that they have, this kind of kernel that they were left with after Virgil died, and they're trying to make it bigger now.
--:-- Jacob Gallagher: So high fashion might get more and more accessible, but fat chance it gets any cheaper, huh?
--:-- Jacob Gallagher: I was going to say accessible is relative.
--:-- Jacob Gallagher: I think accessible has, you know, you have to parse out the definition of accessible at this point.
--:-- Jacob Gallagher: Like, you know, I don't think it will ever get accessible in price.
--:-- Jacob Gallagher: I mean, these companies are truly just raising their prices.
--:-- Jacob Gallagher: That is what they do these days.
--:-- Jacob Gallagher: And they, you know, luxury houses, speaking broadly, have been on the record saying, well, we're raising our prices because we can and because that's what's happening across the market.
--:-- Jacob Gallagher: But in terms of a look, you know, this prioritization of sneakers and T-shirts and, you know, sweaters and wide leg trousers, these things that are kind of more everyday items, so to speak.
--:-- Jacob Gallagher: I think that that really is an indication they really want to occupy everyday real estate in someone's wardrobe.
--:-- Jacob Gallagher: The world is about to feel something that they never felt before.
--:-- Sean Rameswaram: That was Jake Gallagher from The Wall Street Journal.
--:-- Sean Rameswaram: Before him, you heard from his colleague, Nick Kostov. They're both very stylish, but in completely different ways, I noticed.
--:-- Sean Rameswaram: You can read them at The Wall Street Journal.
--:-- Sean Rameswaram: Our share day was produced by Siona Petros.
--:-- Sean Rameswaram: It was edited by Jolie Myers, fact-checked by Laura Bullard, and mixed by Paul Robert Mounsey.
--:-- Sean Rameswaram: The show's called Today Explained.
--:-- Sean Rameswaram: in two gangs like I'm Peewee Kirkland, platinum on the block with consistent hits, while Pharrell keep talking this music.
--:-- Sean Rameswaram: Patty cake, patty cake, I'm the baker's man. I bake them cakes as fast as I can
--:-- Sean Rameswaram: And you can tell by how my bread stack up
--:-- Sean Rameswaram: Then disguise it as rap so the feds back up
--:-- Sean Rameswaram: Watch it like my whip like my chick topless
--:-- Sean Rameswaram: You're in a book