Rihanna poses backstage with her President's award. 51st NAACP Image Awards – Photo Room – Pasadena, California, U.S., February 22, 2020.
MILAN (Reuters Breakingviews) - Concise insights on global finance in the Covid-19 LVMH boss Bernard Arnault’s decision to suspend the music star’s Fenty fashion label undermines the influencer business model. Launched with great fanfare in May 2019, the French luxury giant hoped for a repeat of the success of the singer’s cosmetics line, which grew sales to 500 million euros a year after its launch. Yet Rihanna’s 91 million Instagram fans did not warm to her $500 track pants.
LVMH’s financial dent is minimal: according to Business of Fashion the company invested $30 million in the venture, just 0.4% of its expected net profit for 2021. But the ripples could be felt elsewhere. Make-up group Coty has spent some $800 million on slices of businesses run by reality TV celebrities Kylie Jenner and Kim Kardashian West. And Italian Instagram star Chiara Ferragni is considering a public offering of her lifestyle brand. Rihanna is a reminder that digital popularity is no guarantee of lasting luxury stardom. (By Lisa Jucca)
Breakingviews
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.
Sign up for a free trial of our full service at and follow us on Twitter and at www.breakingviews.com. All opinions expressed are those of the authors.

Source: Reuters

Powered by NewsAPI.org