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Seven years after opening its first London store, Parisian fashion brand Ami is back with its second as part of a global retail expansion. The company is focusing on its own retail and reining in use of its heart logo, as it seeks to maintain control and stability amid turbulence in the market.
The new two-level, 220-square-metre store — which is Ami’s 52nd globally — opens today at 95 Wardour Street in London’s busy Soho shopping district. The location was chosen to complement the original in Mayfair, which opened in 2016. “Mayfair has a slightly more upmarket clientele. [In Soho] we’ll be targeting a younger demographic,” Ami CEO Nicolas Santi-Weil tells Vogue Business.
Ahead of the opening, Ami organised a treasure hunt in the streets of London, where bag hunters could win a new Paris Paris bag. Six videos on Ami’s social media about the bag hunt generated a total of 2.4 million views. “For us, it’s very important to keep this positive tone, to put a lot of emphasis on art or creation whenever we can, because firstly, we like it. And secondly, in the current context, it’s good for everyone,” Santi-Weil says. “From a more economic point of view, it’s to say that both profitability and geographical balance allow us to keep a lot of serenity.”
Europe represents 38 per cent of the brand’s revenue, led by France and Italy, and followed neck and neck by the UK and Germany. “We have a development plan in the UK; later we might open in Birmingham and Manchester, where wholesale is already doing very well,” says Santi-Weil. The brand has had wholesale distribution in the UK from the start, beginning with Mr Porter. Today, it counts 34 stockists in the country, including Harrods, Liberty and Matchesfashion. (It has 690 worldwide.)
Ami is also developing fast in China, which represents 24 per cent of the business. New stores just opened in the city of Suzhou and in Macau. Others will follow in December — notably in Hong Kong, which is bouncing back after a rough patch. “We also have some very good projects in Japan, where growth is outstanding, up 97 per cent year-to-date [from the start of its fiscal year March to November],” Santi-Weil adds.
The personal luxury goods industry is expected to grow 8 per cent in 2023 at constant exchange rates, a strong deceleration compared with the 20 per cent growth in 2022, according to the latest Bain Altagamma market study, published mid November. In turbulent times, megabrands have an edge, but Ami’s continued investment in store openings is testament to its stability. Sales reached €230 million in 2022, with projected growth of approximately 30 per cent in the fiscal year ending 29 February 2024. Santi-Weil says its “balanced finances” — EBITDA is in the double digits — allow it to stay the course.
“Some other brands or groups are starting to put the brakes on development; we continue to invest in points of sale, pop-ups or events, because we think that Ami has a role to play. Despite the conflicts, crisis and inflation, we’re trying, in our small way, to do our bit to cheer people up,” says Santi-Weil.
For Ami, the focus is on the long-term vision. “Of course, there are accelerations and slowdowns, but you don’t come to a major halt,” says Santi-Weil. “We’re lucky to have the agility that means we can continue to act and even seize opportunities. Sometimes [landlords] come to us and say: ‘I had this big brand that was going to do this, they’re going backwards. Would you fancy that [location]?’ In that case, they offer us some really interesting deals.”
Still, navigating economic crises is a balancing act. “You can’t carry on doing business as if nothing is happening. But if you drive too hard, at one point it damages the way your brand is perceived.”
He notes that, in the past, there’s always been a balance between Asia, the US and Europe. “This is the first time in a very long time that things have gotten tighter in all regions at the same time. So those who were driving East or West [to prop up sales] are now a little more annoyed, because they can’t do it any more.”
E-commerce is an ongoing challenge. Most of the big luxury pure-play e-tailers are struggling in a lacklustre market, as discounting drags. Farfetch, notably, has had a rocky year. Over the last two to three seasons, Ami has started to reduce its reliance on pure players by developing its own points of sale, e-commerce and shop-in-shops. It is also diversifying the range of platforms it partners with, so it’s not too exposed to one or two. “We are on Farfetch, but we’re also on Tmall, Wechat, Douyin and other platforms,” says Santi-Weil.
He’s confident Ami will remain on its current trajectory. “With what’s happening in the Middle East and the [challenges] of [digital] pure players, I remain very cautious, but very optimistic at the same time.”
Less reliance on the logo
Designer Alexandre Mattiussi founded Ami in 2011 as a menswear brand that became synonymous with Parisian cool. Santi-Weil joined in 2013, and in 2019, the brand introduced womenswear. Menswear still represents the majority of the business but womenswear is growing faster. Ami also has a wide unisex offer. Chinese investment firm Sequoia Capital bought a majority stake in January 2021.
In 2018, Ami introduced a heart-shaped logo that has become synonymous with the brand. However, the leadership team is wary of becoming over-reliant on the logo. “Lately, we have had a lot of new, younger customers who discovered Ami through the logo. Whether through our events, partnership with Emily in Paris [in one episode as well as in the trailer, the heart logo appears on a hot-air balloon], etc.., which is great,” Santi-Weil says. “But if you’re just a brand with a logo, then you can get logo fatigue.”
Santi-Weil points out that there’s always been an element of quiet luxury within the brand: “Alexandre has tailoring in his DNA from his time at Dior Homme and Givenchy,” he says (Mattiussi worked in the menswear design teams at both brands, as well as Marc Jacobs, before launching his own label).
Logos should be a “gateway” to a brand, rather than the dominant selling point, he argues. “We feel strongly about telling the full story: a whole wardrobe that ranges from coats and suits to hoodies, jumpers, sneakers, backpacks…It’s about not suffering from the success of one part of the offer, but continuing to write the story.” He emphasises: “Above all, it’s about keeping your hands on the wheel.”
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