Stefano Rosso on OTB’s Commitment to China and Web3
“China is definitely our most important region and it’s going to be the focus of the group for the next at least 10 years,” said Stefano Rosso, chairman of Maison Margiela and chief executive officer of Brave Virtual Xperience, a company aimed at making a push into the metaverse under OTB, during the WWD x SKP Fashion & Beauty Global Summit in Chengdu.
OTB, which operates around 100 stores for brands including Diesel, Maison Margiela, Marni, Jil Sander, Viktor & Rolf, and Amiri in China, plans to roll out 30 new stores in the next few years within the region while maintaining double-digit growth, noted Rosso.
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The Italian fashion group made headlines last year by opening a slew of supersized stores at the JC Plaza in Shanghai, right opposite Plaza 66, a mall that’s often considered the heart of luxury retail in the city.
Rosso observed that Chinese consumers are “quite particular and unique, and it’s fundamental for a group like us and all of our brands to understand the behaviors of the consumers.”
“That’s why we decided to come in and experiment with the Margiela Café [within JC Plaza], for instance, something that goes beyond simply selling fashion goods. It’s so important for this consumer to have an experience that embraces the brand beyond the product that it does. All the brands that want to come here and be successful need to take this into account,” he added.
Trunk shows and a long-term CRM program are also key, noted Rosso, adding that, “The more exclusive you become, the more unique relationship you have with your consumers, the better it is. And technology will be a big enabler of this relationship.”
Rosso, who is one of the two sons of OTB founder Renzo Rosso, was named the chairman of Maison Margiela at the beginning of June.
In his new role, he said he is honored to be able to “see the original Margiela with [brand founder] Martin. I was able to breathe the values, the ideas, and the mindset of the brand back then. And I’m glad to be now managing such a creative genius like John Galliano who has brought the brand from being a unique designer brand to a true luxury player.
“The brand is doing very well, we have a solid double-digit growth. We doubled our business in the last two-and-a-half years. And that there is still a lot of space to catch up with some other competitors that are our target,” he added.
Rosso also takes pride in each of the group’s brands representing a unique lifestyle.
“If we think about Diesel, for example, it has a unique way of being more irreverent, always challenging conformity, and trying to be brave. And then you go on the other extreme like Jil Sander. It makes discreet luxury. You don’t the see logo anywhere on its product. They are the opposite in all directions, but it’s quite interesting,” he said.
Under today’s fast-changing consumer landscape, he thinks it’s fundamental that brands stick to their values and their reason for being, as consumers realize the truth behind brands.
“It’s way more difficult to sell a message nowadays. It’s either, you are something and they recognize you for being that thing, or they’re not gonna come to you. So it’s really important, I think, that for each of our brands, to really stick to its DNA and to its value proposition,” he added.
It’s also why OTB offers a diverse mix of brands because young people today don’t necessarily stick to just one lifestyle.
“In my generation, you are either a punk or a skater. You were living a full lifestyle. So you were dressing a certain way, going to certain places, listening to certain music, and it was defining who you were. Today, the younger generation, through social media and the acceleration of the internet and the shareability of content, can basically decide to be who they want to be every single day at any different moment of the day. But for brands, I think you cannot do that. It’s very important to stick to your route and keep going. Because they recognize this trueness,” said Rosso.
One trend he sees on the rise is the younger generation embracing quiet luxury. He noted that there is a fatigue with huge logos and very loud clothing, and people are moving more toward more subtle lines and a less impactful logo presence.
“They now look for more intrinsic value in design and quality of clothing, rather than having a billboard on all their T-shirts,” he added.
Rosso also discussed his passion for technology, innovation and gaming, and how that helped OTB to pivot during the COVID-19 pandemic by becoming a leader in the metaverse.
“There is a true gamification of everything we do. Social media trendsetters are now coming from the more technological world of gaming. If you look at the last decade, we were all looking at social media talents as the point of reference. Before that, there were musicians and movie stars. Now there is a new wave of new talents that live their life on gaming platforms like Twitch or Discord.”
He noted that around 50 percent of the gamers in Dubai are female, which is much higher than the global average.
”The reason why there are so many female gamers, is because, for them, it’s a platform where they can express themselves freely. They can wear what they want, and they can be who they want, without any restrictions. And this, I think it’s a super powerful engine for the younger generation,” he added.
Leading OTB into the digital world is the biggest risk Rosso has ever taken in his fashion career.
“We have always been seen like the underdogs. All of our brands emerge some way out of the blue. It’s fundamental to maintain our mission and our vision to challenge the environment around us and try to be brave and bring it a new and alternative way to this world of luxury and fashion. So risk-taking has always been part of our family and and of our companies.
“Personally, I think the biggest risk I took was a moment during COVID-19 when I decided to step slightly back from the operation of being in the business and follow my new interest, which was technology. And so I opened my own start-up called D-Cave. I threw myself into a world that I didn’t really know but I was so fascinated about. And as a matter of fact, that paid off, because with that experience, I was able to bring a bit of the technology into the group, and now we have a dedicated division called BVX. Its mission is to regenerate the presence of our brands into the virtual space,” he said.
Together with Cartier, Prada, LVMH Mo?t Hennessy Louis Vuitton and Mercedes-Benz, OTB Group is a key member of the Aura Blockchain Consortium, an alliance where luxury brands explore the best way to utilize blockchain technology.
“What’s so fascinating about blockchain technology is that it gives for the first time the opportunity to certify any type of asset within the digital environment, which is huge. It’s a huge revolution. One simple thing that we do that we could not do until a few years ago, is we can certify that something is true through an NFC [a high-frequency branch of radio frequency identification, or RFID] that we insert into our products. A simple scanning of your phone will tell you whether that bag or that shoe is an original item or not. That is something that luxury groups didn’t have the opportunity to do before,” he said.
Blockchain technology also enables the group to showcase its commitment to sustainability and traceability, said Rosso.
“What’s inserted and what you can insert — the full traceability of where that item is coming from, or what were the different steps to make that good — is very important for us. A lot of our consumers walk into the store, they see a bag and the price, and it’s very difficult for them to realize the value that stands behind it. Through technology, you can have the full reportage of the full value creation of that item. This is very important, not only for us because it justifies why things are priced, but mainly for the consumers to see the value of the product that they are taking home,” he added.
Rosso also believes that blockchain technology can be instrumental in tracing the life cycle of a product, as it can document when it’s repaired, or when it’s passed down to a new owner.
“Sky is the limit. The technology is there. Now it’s up for brands to embrace it in trying to make the most out of it,” he concluded.
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