Chanel Invests In THE ROW: The Luxury Fashion Power Move Explained

Mary-Kate and Ashley Olsen’s luxury brand The Row has received financial backing from the families behind Chanel and L’Oréal, The Business of Fashion can report, confirming a Thursday story by Bloomberg. Investment funds controlled by the families of Chanel’s Wertheimer brothers and L’Oréal’s Françoise Bettencourt Meyers have taken a minority stake in the brand at around a $1 billion valuation. Net-a-Porter founder Natalie Massenet and Nick Brown also joined the investment via their Imaginary Ventures fund, as did Moda Operandi co-founder Lauren Santo Domingo. Since being founded by former child stars Mary-Kate and Ashley Olsen in 2006, The Row has overturned expectations for a celebrity-owned brand with its exclusive positioning and rigorous approach to design (Hermès womenswear creative director Nadège Vanhee-Cybulski and Quira founder Veronica Leoni have both previously worked on its collections). With ultra-high price points, luxe fabrication and a logo-free aesthetic, The Row has steadily emerged as America’s answer to Loro Piana — selling, for example, cashmere coats handmade in Italy, for $6250. Garments are designed with a contemporary edge that takes cues from Phoebe Philo-era Celine and Martin Margiela-era Hermès. Since founding The Row, the Olsens have distanced their celebrity status from the brand’s identity. “It was a genius move,” Jess Graves, editor of the shopping newsletter The Love List said. “It clarified The Row as a serious fashion brand.” To date,