Good morning. A Harvard study suggests that using a single word, like "because," can change someone's mind and make you 50% more influential.

ARCHITECTURE
Burning Man 2024 Temple Design

A team directed by artist Caroline Ghosn has revealed the design for this year's Burning Man temple This structure blends elements of church architecture with Lebanese weaving techniques.The ‘Temple of Together’, as it is called, will tower over 70 feet (21 metres) above the desert landscape at the annual Burning Man festival in Nevada.

Burning Man is set to take place from 25 August to 2 September 2024.

BUSINESS
NVIDIA, Who?

NVIDIA, a Silicon Valley chipmaker and the market leader in GPU technology, has seen its valuation soar to $1.9 trillion. This surge is driven by demand for its specialized and expensive semiconductors, which are utilized in gaming and training popular A.I. services like OpenAI's ChatGPT and since the last few quarters in data centers.

NVIDIA's Q1 2024 revenue was $22.103B, reflecting a 265.28% YoY increase. Although NVIDIA has been a frontrunner in the AI space, this revenue boost is primarily due to their shift towards supplying GPUs for AI in data centers. These GPUs are crucial for building AI-driven data centers, a necessity for companies constructing an AI infrastructure. Currently, NVIDIA is the sole supplier in this area, holding a monopoly.

Record quarterly Data Center revenue of $18.4 billion, up 27% from Q3, up 409% from year ago. (See the graph above.)

Record full-year revenue of $60.9 billion, up 126% despite supply constraints resulting in an underestimation of their revenue, NVIDIA anticipates next year's revenue to be $110 billion, up from this year's $60 billion. This projection suggests robust demand and a challenging-to-predict market value.

MONEY
Youngest Billionaires

As of April 2023, Red Bull's successor, Mark Mateschitz, held the title of the world's youngest billionaire with a net worth of approximately 35 billion U.S. dollars. Leonardo Maria, Clemente, and Luca del Vecchio, the three people who took over the Italian luxury brand Luxottica, were close behind him.

All 15 of the youngest billionaires have come into their wealth through inheritance.

LUXURY
Lora Piana on the Streets of Milan

During Milan Fashion Week, Loro Piana took over two city locations. One, a revamped brown newsstand, hands out thistle bouquets, a nod to Loro Piana's logo since 1951. The second site is a flower kiosk on via Manzoni.

It is also a heartfelt tribute to the traditional Italian newsstands, typically family-run, that are sadly in decline due to the reduction in printed news formats. Since 2019, 2700 newsstands have closed, gradually disappearing from Italy's streets.

MILAN
HERR OBER

Welcome to Herr Ober, a delightful city edition of Montage! We take you on a weekly journey through different cities.

DEEP DIVE
What They Teach You at Prada

My first job after university was at Prada as a fashion buyer. This role primarily involved spending weeks in Milan at Prada's headquarters, purchasing collections for German and Austrian stores. We often flew without return tickets, as Miuccia Prada had to approve each country's selection. For us, it meant long days in the office and long nights in Milan with the Prada crew. It was, and still is, a community. We knew we were privileged, the select few who had reached the helm of luxury, known as Prada.

Product: Miuccia always viewed fashion as an intellectual statement, not just a product. She would begin with the fabric, focusing on the ideology and sentiment she wanted to convey. When Gucci showcased a sexy aesthetic, she opted for ugly chic. There were times when we waited for two days for her to decide on the main color - blue or yellow. It might sound trivial, but it made a significant difference. Today, Prada's strongest categories are shoes and bags, followed by ready-to-wear items. Additionally, Prada has launched a beauty brand, and in some locations, you can even find a Prada cafe.

For the first nine months of the year 2023 net revenues totalled 3.34 billion euros , a rise of 17% , with the ready-to-wear category showing the fastest growth.

Challenging the status-quo: Prada used nylon for its bags, while most luxury houses were focusing on leather. This was a statement to show that functionality and innovation can go hand in hand, and luxury can be redefined.

Image: we allocated 20% of our budgets to statement pieces to ensure all window displays globally communicated the same message. It was crucial for Prada to maintain consistent communication from Tokyo to Vienna. Additionally, numerous art exhibitions were held in various cities. Fondazione Prada is another product extension that strengthens the connection to art.

Customers: Very Important Customers (VICs) make up 2% of the customer base but contribute to 40% of the revenue, primarily preferring high-ticket and exclusive items. We also examined customer preferences city-by-city, not just by country. In China, for instance, Shanghai favored more modern styles, while Beijing preferred traditional ones. In South Germany, we stocked many ski-related collections, often displayed with logos. However, Northern Germany preferred quiet luxury.

Buying: Prada followed a decentralized buying model. Each country had a local office and team to select the collection, taking into account their understanding of the local clientele. This approach was applied even at the city level in countries like Germany, as cities have their own unique customer preferences. We sent the headquarters monthly reports on customer preferences, allowing them to modify some pieces for specific markets. Numbers were a crucial part of the business, on a daily basis.

As of 2023, Prada's strongest markets were in Europe and the Asia Pacific. However, the Americas represented a weak spot, as retail sales in this region decreased.

Stores: Mr. Bertelli, Miuccia's husband and CEO until 2023, insisted that all buyers spend time each week in a different store. This allowed them to interact with customers, survey wholesalers, and ensure adherence to Prada's presentation and pricing guidelines. We had to predict what customers would want in the future; it was not about responding, but rather about setting the tone. Today, Prada is focusing more on its own stores and online presence.
As of 2023, Prada's strongest markets were in Europe and the Asia Pacific. However, the Americas represented a weak spot, as retail sales in this region decreased.

Becoming Prada: Once you are part of Prada, you become Prada. You breathe Prada, you must dress in Prada when you enter the office. Your interests change as Prada is the only brand that embraces and incorporates art and architecture into the brand. You educate yourself to represent the brand as authentically as you can. You are part of a movement, a group that is consistently transforming the fashion world. Instead of following trends, you challenge them.

Hello there, just a quick note to introduce myself to those who have not met me. I'm Fae, also known as Ramona, a globetrotter with a multicultural heart, who's had the joy of calling cities like Milan, Dubai, and LA, home sweet home. I've been lucky enough to work with impressive brands, building a career in the world of luxury - think Prada, Valentino, Dior. Being multilingual in five languages has definitely been a bonus ! Then I took the leap into the exciting world of investment and finance, discovering that with continuous learning and sharing, we can truly become anything we dream of. Feel free to connect with me on LinkedIn or Instagram. I hope you find joy in MONTAGE, please share with me your feedback below.

Merci, Fae x

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