Has Fendi really dissolved its VIC department? Here's what it means
VICs are becoming increasingly important to the fashion world. In times of crisis, when aspirational customers forgo small luxuries, Maisons find shelter in the wallets of Very Important Clients — the loyal customers who spend hundreds of thousands of dollars each year on clothing and accessories.
Although they represent a small fraction of the population, they generate extraordinarily high spending — equivalent to that of 230 aspirational customers — and contribute on average to 30% of brands' revenues. For these reasons, they are the preferred clients of the Maisons and are treated accordingly, through privileged contact with staff (some brands close entire stores to dedicate full days to one or two VICs), with creative directors, priority access to exclusives, and the company's most glamorous events. Some have even made it onto the runway, as was the case with Qin Huilan, a Shanghai doctor who walked for Miu Miu at Paris Fashion Week.
Nevertheless, while in recent years the leading luxury brands have invested heavily in their highest-spending clientele — staging dedicated events, dinners, and trips, as well as establishing entire corporate departments solely for them — Fendi appears to have decided to put an end to yachts and Michelin-starred dinners. But why?
Cutting costs, but at what price?
The news that Fendi had dismantled its VIC department was reported by Glitz in recent hours. The outlet, which has previously broken several exclusives — including the news of Anthony Vaccarello's departure from Saint Laurent, to name one example — states that the decision stems from a clear strategy aimed at reviving the Maison's sales.
VICs, however, still appear to matter to the Roman Maison, particularly when it comes to the sale of fur products — the category for which it is renowned worldwide (the brand is one of the few remaining that has not adopted a fur-free policy, despite having launched traceability and material upcycling initiatives). Fendi was one of LVMH's three most profitable brands alongside Dior and Louis Vuitton, but has recently lost ground, replaced in the rankings by Loro Piana. According to a new strategic framework, reports Glitz, Fendi will therefore have to forgo a central resource for its own sales — one that all its competitors continue to rely on.
Judging by the reputation of fur on the international market — with a growing number of people preferring to buy it secondhand or not buy it at all, opting instead for more sustainable materials — it is possible that the Roman Maison is choosing to focus on its accessories to drive a sales revival, as evidenced by the re-edition of the Fendi Baguette.
Among the first roles to be eliminated from the company is that of PR Manager for Private Clients — a position that has indeed been cut, as Glitz once again reports. The corresponding team has been merged into the broader Client Development department. While the elimination of an entire department, along with all its associated activities (dinners, flights, stays, and holidays), may represent a source of savings for the Maison, one must ask whether this is merely the first in a series of sweeping changes at Fendi. The winds of change are blowing — it remains to be seen whether the brand's furs will be enough to keep out the cold this season too.
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