Why Did LVMH Invest in Our Legacy? The Evolution of Growth in the Menswear Market

Our Legacy

LVMH Moët Hennessy Louis Vuitton’s investment arm, LVMH Luxury Ventures, has acquired a minority stake in the Swedish menswear brand Our Legacy. This move is part of LVMH’s strategic efforts to nurture the next generation of luxury brands and represents a proactive step toward expanding within the rapidly growing menswear market. The specific terms of the deal, however, have not been disclosed.

Founded in 2017, LVMH Luxury Ventures focuses on investing in minority stakes of promising luxury brands. Notably, unlike other LVMH investments, its aim isn’t to acquire these brands entirely. Past investments include Gabriela Hearst, the luxury brand founded by a designer from Uruguay in 2019, and Aimé Leon Dore, the New York-based streetwear brand, in 2022.

The Brand Strategy and Values of Our Legacy

Our Legacy, founded in Stockholm in 2005 by Jockum Hallin, Christopher Nying, and Richardos Klarén, has carved out a unique identity in the world of fashion. With nearly 20 years of history, the brand is known for its minimal yet detail-oriented designs, often described as embodying a “Quiet Cool.” This unique balance between luxury and subculture has won the brand a devoted following among global fashion enthusiasts.

Our Legacy Fall 2024
Our Legacy Fall 2024

Over the years, Our Legacy has partnered with brands like Stüssy and Emporio Armani to introduce edgier products and expand brand recognition. The brand also emphasizes a community-driven approach, hosting pop-up events with Slam Jam and prioritizing direct customer engagement over traditional fashion shows. These initiatives have allowed Our Legacy to maintain independence from fleeting trends, cultivating a loyal fanbase that doesn’t rely on passing fads.

Julie Bercovy, CEO of LVMH Luxury Ventures Advisors, expressed her optimism, saying, “Our Legacy is the epitome of what we could call the ‘quiet cool’ tendency, featuring a unique blend of contemporary minimalism and creative subversion.” Our Legacy CEO Richardos Klarén also commented, “LVMH Luxury Ventures will contribute knowledge, experience, and most importantly, they understand and support our journey toward becoming a truly global designer brand.”

Currently, Our Legacy has seven flagship stores across major cities like Stockholm, Berlin, London, and South Korea, and it is available in over 200 select shops worldwide. Following this investment, Our Legacy plans to open its first Paris flagship by the end of 2025, with further expansion into Tokyo, Shanghai, Hong Kong, and other key cities.

Shifts in the Menswear Market

The menswear market has shown significant growth and transformation in recent years. The streetwear boom that once captivated a young audience has gradually waned, prompting a shift towards more refined and mature styles. Notably, in September, LVMH sold its struggling luxury streetwear brand, Off-White, to New York brand management firm Bluestar Alliance, signaling a transition in the market.

Streetwear, known for blurring the lines between luxury and casual, offered a fresh take on “attainable luxury.” Yet, as the initial hype settles, the industry is now gravitating towards a new chapter characterized by a demand for simplicity, quality, and longevity. Consumers increasingly seek timeless, durable pieces, prioritizing designs and materials that transcend short-lived trends. Brands like Our Legacy are meeting this demand by offering collections that emphasize elegant silhouettes and refined details, positioning themselves at the forefront of this shift.

According to reports, Our Legacy’s revenue for the 2023 fiscal year reached €30 million, marking an impressive 80% growth compared to the previous year. This surge reflects the brand’s ability to respond to evolving consumer lifestyles and values. With LVMH’s investment, Our Legacy is poised for even faster growth as it continues to expand and innovate.

The Trend Towards Investing in Mid-Sized Brands

Beyond LVMH, there is a notable rise in investment in established mid-sized brands. Last month, Chanel’s Wertheimer family acquired a minority stake in The Row through its investment arm, Mousse Partners. Similarly, L’Oréal’s Bettencourt Meyers family has made investments in the fashion sector via Tethys Invest. These moves indicate that the luxury market’s focus has broadened beyond top-tier brands to include mid-sized brands with unique talent and fresh perspectives.

The partnership between Our Legacy and LVMH Luxury Ventures undoubtedly opens new possibilities within the menswear market. By remaining true to its identity while delivering high-quality products, Our Legacy’s future trajectory with LVMH’s support is one that will be closely watched across the industry.