Stefano Martinetto, co-founder of Tomorrow London Holdings Ltd, recently sat down with FashionNetwork.com to discuss the company’s reorganization amidst the challenges of Covid-19 and Brexit. Originally a showroom, Tomorrow London has now transformed into a multinational firm that supports emerging fashion designers. In 2021, the company made a significant move by acquiring the label Martine Rose, marking a new investment strategy for Tomorrow.
Martinetto explained that Tomorrow now invests in labels founded by creative leaders who have a strong vision for their role in society. This partnership allows Martine Rose to access Tomorrow’s services while also having a stake in the company’s growth. The acquisition of Martine Rose is seen as a milestone for Tomorrow London as they embark on this new investment approach.
Tomorrow London’s philosophy revolves around the idea of contributing to the creation of tomorrow’s labels. Martinetto believes that the fashion industry is not solely moving towards large luxury conglomerates, especially as Gen Z consumers, who will make up 50% of consumers in the next five years, have different preferences. Tomorrow London positions itself as a platform that supports emerging independent brands and helps them achieve profitability quickly.
The company’s organization is structured around B2B (business-to-business) operations through permanent and temporary physical showrooms. They work with approximately 50 labels, categorized as Tomorrow Originals (labels they have invested in) and Tomorrow Next (the next generation of labels). Moreover, Tomorrow London has an international Goods & Services division that partners with 25 to 30 labels aiming for larger volumes.
In addition to their B2B operations, Tomorrow London has also entered the direct retail arena. They operate a multi-brand platform that includes the London concept store Machine-A, specializing in emerging designer labels. They also have their own retail outlet on Farfetch called 10 Redchurch.
To further expand their services, Tomorrow London created the Tomorrow Projects agency, led by Julie Gilhart. This agency focuses on collaborations between heritage labels and Gen Z consumers. They have worked on notable projects such as the collaboration between Zegna and Fear of God, as well as the development of Diesel’s Red Tag initiative.
Despite the challenges posed by Brexit, Tomorrow London has plans for growth and expansion. Over the next 12 months, they aim to hire between 70 and 78 employees. However, Brexit has brought about significant obstacles for the company, as they had to quickly adapt to new customs duties and logistics arrangements, resulting in substantial costs. Additionally, heavy investments have been made in Italy, leading to the transfer of their central European warehouse to Prato, near Florence.
Nonetheless, Martinetto remains optimistic about the current market situation. He is pleasantly surprised by the speed and extent of the post-Covid economic recovery, with the Spring/Summer 2022 collections generating 20% more sales than ever before. Martinetto believes that the fashion market’s resilience, coupled with consumers’ desire for gratification after a long period of limited opportunities, has contributed to this success.
Looking ahead, Martinetto predicts a shift in consumer preferences. Gen Z consumers are placing more emphasis on value-sharing and are less influenced by the reputation and heritage of established brands. They are more likely to choose products that align with a label’s founder’s values, such as gender and ethnic inclusivity and sustainability. This presents significant opportunities for emerging labels in a redefined B2B world.
For more information on Tomorrow London and their initiatives, visit their official website [link] and their page on FashionNetwork.com [link].
