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Gonçalo Cruz

Co-founder & CEO at PLATFORME

Gonçalo Cruz is a prominent figure in the fashion industry, known as a Fashion Thought Leader and featured in prestigious publications like Vogue Business, Business of Fashion, and WWD. He has been recognized in the Inaugural Vogue Business Top Innovators List. With a background in Industrial Engineering and Business Design, Gonçalo is a passionate entrepreneur driven by innovation and the fusion of fashion and technology. As the co-founder of PLATFORME, a leading platform for Made-to-Order in the fashion industry, he works closely with major fashion houses under LVMH, Kering, and independent groups to enhance digital experiences. His expertise spans technology domains such as web, commerce, and retail, as well as virtual experiences including 3D, AR, and VR. Gonçalo serves on Advisory Boards of tech and fashion companies, contributing to shaping the future of the industry.

Highlights

Jul 17 · linkedin

🔍 The Supreme Deal

In late 2020 early 2021, VF Corporation made headlines by acquiring Supreme for $2.1 billion. Today, VF has sold Supreme to EssilorLuxottica for $1.5 billion, marking a staggering $600 million or ~30% value erosion in just four years. This doesn't consider operational costs, investments during this time, etc.

The market has reacted negatively to this move, with EssilorLuxottica's shares dropping 5%, causing a market cap decline from €89 billion to €85 billion—a €4 billion value erosion*. Conversely, VF Corporation has grown by 7% to reach a market cap of $5.5 billion*.

This scenario underscores a critical business lesson: CASH IS KING. Even high-profile brands like Supreme can turn into poor assets due to their business models and negative working capital, especially when banks offer decent interest rates on cash reserves.

This raises an important question: How can established brands find financial sustainability, scalability, and future-proof models?

👉 👉 👉 Unlocking Value Through Modern Supply Chains

  1. Negative Working Capital and Stock Management: Traditional supply chains often lead to significant locked value in stock. This is a MAJOR liability in today's fast-paced market and, by far, the greatest untapped value.

  2. Demand-Driven Operations: Companies like Inditex (Zara et al) and SHEIN exemplify just-in-time, demand-driven models that minimize inventory waste and respond swiftly to market trends. These models allow for better cash flow management and reduced working capital needs.

  3. Scalability and Financial Sustainability: Implementing agile supply chain strategies not only ensures scalability but also enhances financial sustainability. Brands can better align production with actual demand, reducing excess inventory and improving profitability.

In a rapidly changing market, financial prudence and adaptable business models are more critical than ever. The Supreme episode is a stark reminder that even the hottest brands must innovate and optimize their operations to stay viable. Embracing modern supply chain practices and systems (yes, talking about PlatformE) could be the key to unlocking sustained growth and long-term success.

*figures of today, market is obviously dynamic.

https://lnkd.in/dJabH_Td

Bracken Darrell Francesco Milleri Steve Rendle Juliana Chugg Benno Dorer Trevor Edwards Mindy Grossman Mark Hoplamazian Rodney McMullen Kirk Tanner

#FashionIndustry #BusinessStrategy #SupplyChain #DemandDriven

May 20 · linkedin

We are deeply saddened by the passing of Bruce Nordstrom. Under his visionary leadership, Nordstrom emerged as a leading retail business, renowned for its exceptional customer service and innovative approach. Bruce's dedication and strategic insights transformed Nordstrom into a household name, setting new standards in the industry.

The Nordstrom family's tremendous drive and commitment to excellence are truly inspiring, and their story is one from which many can learn. We are grateful to the Nordstrom team for leading PlatformE's Series-B round at the end of 2019. Their support and belief in our mission have been invaluable to our growth and success. We also extend our heartfelt thanks to Pearl Percy for her unwavering support during this time.

Our thoughts are with the Nordstrom family. Bruce's legacy will continue to inspire us all.

📷 Leah Nash for The New York Times

Gonçalo Cruz
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Location

Portugal