The Monocle Minute

The luxury-fashion industry had a relatively bumpy 2024: it was a year of consolidation, failed IPOs and widely publicised (albeit overstated) sales slowdowns. As a result, spooked investors adopted a “wait-and-see” attitude, putting deals on ice and becoming more cautious. But the new year is already looking more upbeat. Mergers-and-acquisitions activity is picking up again, along with rising interest in both heritage and new businesses.

This week alone there were two significant transactions. The first was the acquisition of Christian Lacroix, a storied French label known for its baroque evening wear, by Spanish management firm Sociedad Textil Lonia (STL), which also operates labels such as CH Carolina Herrera. The deal was described as “private” and STL’s plans for the business remain unclear. But there’s plenty of potential in the label’s archives, especially as the world shifts its attention back to formality, elegance and partying.

It was also announced that the LVMH-backed fund L Catterton has taken a majority stake in Japanese denim specialist Kapital, following the death of its founder, Toshikiyo Hirata, in early 2024. The deal highlights the increasing popularity of Asian brands – particularly Japanese ones – among investors and luxury groups. The nation’s focus on craft, logo-free products and modern silhouettes is resonating with shoppers across the globe who are fatigued with mainstream luxury and prioritise quality design over hype.

There are, of course, concerns from loyalists that international investment would dilute the identity of niche brands such as Kapital but L Catterton has a good track record with labels including APC, Birkenstock and Ganni, with investments aiming to gradually increase the brands’ retail footprints rather than expand too quickly.

To get the returns that they’re hoping for and avoid making the same mistakes as their predecessors, more investors should follow L Catterton’s playbook: taking things slowly, respecting the founders and their values, and investing in image, even if it doesn’t always make sense on the balance sheet.

Natalie Theodosi is Monocle’s fashion director. For more opinion, analysis and insight, subscribe to Monocle today.

Both South Korea and Germany are grappling with economic challenges but the two countries are taking very different paths to recovery. A case in point is their attitudes to time off. Berlin’s business leaders have called for International Women’s Day to be scrapped as a public holiday, arguing that the move could boost the economy to the tune of about €230m. Meanwhile, Germany is slashing paid sick leave for employees after it emerged that workers were absent due to illness for more than two weeks on average in 2023 (compared to workers in the UK, who averaged just six days in 2022). Amid Germany’s current tumult, many have asked if Germany is the new sick man of Europe – but they probably didn’t mean it so literally.

Meanwhile, South Korea’s government has designated 27 January as a temporary holiday in a bid to boost domestic consumption. It will allow people in the country to take a six-day break for the Lunar New Year holiday. After a month of political turmoil, the ruling People Power Party is no doubt hoping that citizens will leave the street protests to join shopping queues.

The French defence industry had a bumper year in 2024 with contracts for submarines and fighter jets contributing to an €18bn haul for the likes of Naval Group and Dassault Aviation. The latter’s expected deal to sell its Rafale Marine jets to India bodes well for this quarter too. A revival of Europe’s defence industry should be a strategic and economic priority for the continent. This week, France’s armed forces minister, Sébastien Lecornu, told Politico that he “won’t budge” on ensuring that the EU favours European arms manufacturers.

The war in Ukraine has helped to create a political consensus around the idea of integrating the EU’s military production. Countries such as Poland have stepped up their defence spending and preparedness. As for France, its 3 per cent defence-budget increase is on pause after December’s no-confidence vote postponed its approval. But as the EU’s only nuclear-armed state and its de-facto defence leader, the country should find a way to rally other member states behind the idea of buying military hardware locally, instead of spending euros on US arms.

Brandon Scott was elected mayor of Baltimore in 2020 and re-elected in 2024. He is the subject of The Body Politic, a new documentary about his journey from his upbringing in the rough Park Heights neighbourhood to the city’s top office.

You launched your 2020 campaign for mayor in Park Heights. How did you relate to the violence there growing up?
The reason I ran for office goes back to the first time I witnessed a shooting. I was playing basketball near my house and someone started shooting. I was seven or eight years old. I remember asking everybody why this happened and no one cared. My mum said, “If you want change, you’re gonna have to change it.”

You’ve had some success in reducing Baltimore’s gun violence. What actually works?
We built a strategy by which we identify the people who are the most likely to be the victims or perpetrators of gun violence. They get sent a direct letter from me that says, “I know who you are. I know what you do. This is your last chance to change your life. We’ll help you with anything you need – education, housing, training, whatever. But if you don’t take our help, we will put you in jail.” It has proven effective.

Donald Trump has criticised Baltimore on crime before and called it a dangerous city. What’s your plan if and when he comes for you or Baltimore again?
I would hope that the incoming Trump administration recognises that Baltimore is having the largest reduction of violence that the city has ever seen, two years in a row. Why upset that apple cart? I hope that they see that Baltimore has $7bn (€6.8bn) of investment coming into our Downtown. They wouldn’t disrupt that. But if not, we’ll be ready to defend the city and our progress in any way.

Tune in to Monocle Radio’s ‘The Big Interview’ for more from Baltimore mayor Brandon Scott.

Monocle’s Tomos Lewis meets Toronto-based entrepreneur Mark Bordo, the co-founder and CEO of Vetster. Bordo talks about how telemedicine is reimagining pet care, improving access to leading veterinary support and enabling vets to extend care beyond clinic hours – keeping their four-legged patients wagging their tails.