Pat McGrath is widely regarded as one of the most influential makeup artists of all time. Known simply as “Mother” to some in the industry, she’s been behind some of the most memorable runway beauty moments for decades. In 2015, she launched her namesake brand, Pat McGrath Labs, which quickly became a beauty phenomenon – going viral with its glittering gold pigment and reaching a $1 billion valuation just two years later.

But almost a decade on, the business tells a different story. With its valuation now a fraction of what it once was, high executive turnover, limited product accessibility, and internal challenges, the brand’s future hangs in the balance – even as McGrath's own star continues to rise with a new role as beauty director for Louis Vuitton.

The Business of Beauty editor Brennan Kilbane and executive editor Priya Rao, explore what went wrong and how the business can get back on track.

Key Insights: 

• In its early years, Pat McGrath Labs thrived as a high-concept beauty brand that translated runway artistry into consumer excitement. The first product, Gold 001, was a multipurpose pressed gold pigment that sold out within minutes and crashed the website. As Kilbane describes, the brand began as “a direct pipeline from her creative brain to the cosmetics market.” The initial success solidified McGrath’s cult status – and set high expectations for what came next.

• When Pat McGrath's 'glass skin' look went viral after the Maison Margiela couture show, it could have been a pivotal brand moment. But the product inspired by the look – and released more than a year later – failed to maintain momentum. “They tried to capitalise on it by scheduling a masterclass a week later,” says Kilbane, “but it wasn’t fast enough.” Additionally, according to Rao, the bigger issue with late deployment was product wearability: “It’s not something that’s everyday or wearable in any capacity.”

• Pat McGrath’s artistry is legendary, however operationally, Pat McGrath Labs fell flat. “Pat McGrath Labs was Pat McGrath. She is the CEO, she is the founder, she's the creative director – the buck stops with her,” says Kilbane. With final say on everything from product formulation to packaging, this all-encompassing control created a bottleneck that affected every part of the business. The result was a company where decision-making was slow and fragmented.

• With valuation plummeting and Sephora shelf space dwindling, both Kilbane and Rao agree that McGrath’s company needs a reset. “Does it need new investors? Probably,” says Rao. “But it also needs leadership and operational know-how for it to actually scale. Otherwise, it’s going to be a pet project in comparison with what she does with Louis Vuitton.” Kilbane adds, “Fixing the company culture is going to be integral – if not even more impactful than integral – to the brand’s longevity.”

Additional Resources:

• What Happened to Pat McGrath Labs? | BoF 
• Louis Vuitton to Launch Makeup Line | BoF 

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Once a dominant player in fast fashion, Forever 21 recently filed for bankruptcy for the second time in six years, marking the likely end of its run as a physical retailer. The chain, known for introducing ultra-affordable, trend-driven clothing to American malls, struggled to remain relevant as competitors like Zara, H&M, and later Shein and Temu offered faster, cheaper, and more digitally-savvy alternatives. After its initial bankruptcy in 2019, Forever 21 was acquired by Authentic Brands Group and mall operator Simon Property Group, but despite various turnaround attempts – including unusual collaborations and international relaunches – it failed to recapture its former success.

Retail editor Cathaleen Chen joins The Debrief to unpack what Forever 21’s fall says about the future of fast fashion.

Key Insights: 

• Chen argues that Forever 21’s downfall is largely due to its loss of cultural cachet. “You don't see influencers peddling Forever 21 in the way that you see influencers still promoting Shein, and I think that's a huge factor. You have to spend that money to be relevant,” says Chen.

• Chen contends that fast fashion retailers like Forever 21 have always struggled with establishing a unique identity, which ultimately made it difficult for them to maintain customer loyalty. “The problem with Wet Seal, Rue 21, and now Forever 21 is that these retailers never really had any kind of identity,” she explains.

• The retailer’s failure to evolve beyond chasing transient trends has left it vulnerable to more agile competitors. “It's not about just chasing fashion, fashion, fashion the way that I think Forever 21 never got out of, the way that Shein dominates. It's about going the other direction and creating products that your customers want at a level of quality,” says Chen.

• Looking forward, success in fast fashion will require more than affordability. Chen believes future winners must combine low prices with a compelling retail experience: “There is an element of surprise and delight in that shopping experience. It can't just be cheap, affordable – it needs to offer something more.”

Additional Resources:

• The Year Ahead: Deconstructing Fast Fashion’s Future | BoF 
• Why Shein Keeps Buying Its Rivals | BoF

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In the 2010s and early 2020s, a new generation of sexual wellness companies selling sex toys, massage oils and other bedroom aides broke taboos by championing pleasure and redefining sex as wellness. Startups such as Hanx and Playground, often founded by women, introduced sleek products that contrasted sharply with the hyper-sexualised image of legacy players like Trojan and Durex. 

However, recent regulatory restrictions, cultural conservatism, and social media censorship have forced these brands to pivot toward a more health-focused approach. In this episode of The Debrief, editorial associate Yola Mzizi explains how these changes are reshaping marketing strategies and consumer perceptions in the sexual wellness market.

Key Insights: 

• Brands in the sexual wellness category initially reframed sex as a wellness benefit. “They didn’t just focus on pleasure but other health benefits that come from engaging in sex,” says Mzizi. “This is a big deal because attitudes around sex were changing and therefore we saw all of these brands come up during this time to reflect that change.” However, as cultural conservatism gains ground, with stricter regulatory and social pressures emerging, those once-radical messages are now being muted, forcing brands to temper their bold narratives in favour of more sanitised, health-focused messaging.

• Despite early success, sexual wellness brands now face significant challenges due to tighter social media censorship and advertising restrictions. “If you just look at Meta, which owns Instagram, they have very clear policies that their ads cannot promote the sale or use of adult sexual arousal products or services,” says Mzizi. “That can mean anything from erotica to fan fiction, sex toys, but what they do allow are ads centred on reproductive health and sexual health, but only if they're shown to users 18 years or older.” 

• Sexual wellness brands can continue their mission by staying true to their unique identity. “By doubling down, brands can rest assured that they're not diluting their message and the customers who are coming to shop with them know exactly who they are, what they stand for, and what they sell,” says Mzizi. “If you position yourself as a healthcare startup, and then you're selling lube, it may be very difficult to get someone to click purchase because they were duped into getting there.” Abstaining from going overboard with compliance can help preserve brand integrity and keeps loyal consumers engaged even as external pressures push for alternative narratives.

Additional Resources:

• Can You Sell Sexual Wellness Without Sex? | BoF 
• How Sex Toys Broke Into Beauty Retail | BoF

Are Condoms Ready for the DTC Treatment? | BoF

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Once hailed as a pioneering platform for online luxury, Farfetch is now undergoing a dramatic operational overhaul. The South Korean e-commerce giant Coupang acquired the luxury marketplace in 2023, rescuing it from near-bankruptcy. Since then, Coupang has implemented sweeping cost-cutting measures that have narrowed losses significantly, but are eroding Farfetch’s footing in the luxury e-commerce space and alienating its core customers. 

DTC correspondent Malique Morris joins Executive Editor Brian Baskin and Senior Correspondent Sheena Butler-Young to examine Farfetch’s path to profitability.

Key Insights: 

• Coupang's relentless drive to push Farfetch toward profitability clashes with the premium expectations of luxury shoppers as cost-cutting is prioritised over customer experience. “Coupang is so hyper‐focused on getting Farfetch to profitability ... and when you're dealing with people who are spending $100,000 a year on the marketplace, it doesn't quite work that way,” explains Morris. “They’ve also cut teams dedicated to working with Farfetch’s VIP customers, who can make up as much as 30% of the company’s annual sales.” This tension between operational efficiency and delivering a high-end experience is at the heart of Farfetch's challenges.

• Farfetch’s “sold by Farfetch” programme highlights its growing disconnect with luxury brands. As luxury powerhouses like Celine, Alaia and Kering – which includes Gucci, Saint Laurent and Bottega Veneta — pull their collections from the platform, Farfetch has turned to a grey market tactic to maintain its inventory. “Instead of sending the goods straight from the retailers to the customers, the items are now going to a warehouse in Amsterdam to be repackaged,” says Morris. “It's not only a knock to Farfetch's relationship with top brands, but it also risks deteriorating customer service.” This move, intended to sidestep brand resistance risks undermining transparency and trust among high-end partners.

• Farfetch's biggest superpower is that many independent boutiques still rely on it. “If Farfetch can at least do right by those retail partners, then it probably has a shot of stabilising its footing in online luxury,” says Morris. “Coupang will eventually have to allow Farfetch to reinvest in their relationships with customers and brands. That might cost them a couple million, but hopefully with the renewed focus on just the marketplace, Farfetch won't go back into the red in the process.”

Additional Resources:

• Inside Coupang’s Tug of War With Farfetch | BoF
• Farfetch Owner Coupang: Everything You Need to Know | BoF 

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The revelation this year of child labour in India’s cotton fields and modern-day slavery in Taiwanese garment factories is the latest scandal concerning worker treatment in fashion’s supply chain. New abuses keep emerging despite efforts by brands, manufacturers, activists, and governments to set clear labour guidelines. Watchdog groups try new tactics to combat the problem, but they face systemic forces far beyond fashion.

Sustainability editor Sarah Kent joins executive editor Brian Baskin and senior correspondent Sheena Butler-Young to discuss the problematic labour dynamics underpinning the fashion system.

Key Insights: 

• Persistent abuse in fashion’s supply chains is not merely about isolated incidents but reflects deep-rooted socio-economic challenges. In India’s cotton industry, for example, many farmworkers come from extremely marginalised and impoverished communities where exploitation is a norm rather than an exception. Families often work together under hazardous conditions, with little oversight or recourse. “So you're not just dealing with an issue of exploitation that is coming from the [fashion] industry, you're dealing with a culture that is ingrained in the way that community works – and that is a very difficult, complicated thing to try and manage, ” explains Kent. 

• Transparency in supply chains remains critical. Despite decades of advocacy, many brands struggle to verify the origins of their cotton. The global cotton supply chain’s complexity—where materials pass through multiple suppliers and traders—makes tracing raw cotton back to its source extremely difficult. “The traders will have been getting the cotton from ginners who will have got raw cotton from … maybe hundreds of thousands of small family farms aggregated it, ginned it, sold it onto a trader who then sells it up through the supply chain. So by the time it even gets to a spinning factory, tracing it back to the farm where it came from is really, really difficult,” says Kent.

• In Taiwan’s textile industry, systemic issues like excessive recruitment fees burden migrant workers, yet change is stalling. Despite growing awareness and repeated calls for reform, manufacturers have little incentive to alter longstanding practices without coordinated industry action and regulatory intervention. As Kent notes, “Without other brands operating in Taiwan coming together and trying to do the same thing, the industry as a whole isn't going to move.” And without regulatory shifts, manufacturers have little reason to remove recruitment fee burdens from workers.

• Consumer trust in ethical claims is vital for brands that present themselves as responsible. However, when ethical certifications and claims are diluted by inconsistent practices and opaque supply chains, consumers quickly lose faith. This erosion of trust can undermine efforts to promote responsible consumption. “If consumers lose trust in what is meant to be a signifier of doing better, then you risk people not caring at all,” Kent warns. “No one's going to pay more for a product that promises to be more responsible and more ethical when it's when they don't believe that it is.”

Additional Resources:

• ‘Ethical’ Cotton Is Being Picked by Child Labourers in India, Watchdog Finds | BoF
• Why Can’t Fashion Eliminate Labour Exploitation From Its Supply Chains? | BoF 

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Gucci has long been the shining star of Kering’s luxury portfolio, but the brand's recent struggles have exposed weaknesses in the conglomerate’s position. Gucci’s sales plummeted 24 percent in the fourth quarter of 2024, dragging Kering’s overall performance down by 12 percent. The shock departure of Creative Director Sabato De Sarno after less than two years only deepens the group’s instability.

Luxury editor Robert Williams joins executive editor Brian Baskin and senior correspondent Sheena Butler-Young to discuss how Gucci’s downturn is affecting Kering’s broader portfolio, why its attempt at a creative reset didn’t resonate, and what’s next for the group as it searches for a new vision.

Key Insights: 

• Gucci's downturn has been severe, with sales falling by almost a quarter in 2024. This dramatic slide highlights the challenge of reinvigorating the brand. “[Gucci] has had a few really big booms, but then also some pretty big busts afterward. That creates additional complications for the group and how much they're able to invest in acquiring new brands, in developing the brands they have. And honestly, to also just continue to exist,” says Williams.

• Gucci’s identity has become muddled as it leans too heavily on its heritage, potentially limiting its appeal. “Gucci can stand for a lot of things and I think that's where they got a bit confused. It's the biggest Italian luxury brand and maybe they started to think that it was more of a heritage house than it should be,” Williams explains. 

• Williams outlines a protective strategy where the group is preemptively selling off valuable real estate. He cites the sale of luxury jewellery house Boucheron headquarters and flagship store on Place Vendôme, stating, "choosing to cash in on the fact that this building is worth a lot of money is a bit worrying that they feel the need to get that treasury right now." 

• Gucci’s potential for a rapid rebound hinges on securing the right creative leadership to tell a compelling story of the brand and leveraging its extensive assets. “I think real potential for the rebound is there if they can get the right person in place just to tell a very convincing fashion story. It can go very high, very fast again,” Williams says. “They have a lot of real estate, they have a lot of stores in great locations and they have a whole supply chain behind them that's really like rooting for their comeback because it's the biggest client for so many suppliers in the Italian fashion system.”

Additional Resources:

•  Can Kering Bounce Back From Its ‘Annus Horribilis’? | BoF 
• The Problems with Gucci and Dior | BoF 

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Estée Lauder was long celebrated as a pioneer in prestige beauty, building a global empire on the strength of family legacy, innovative product lines, smart acquisitions and a high-touch in-store experience. However in recent years, the company has lost its wat on each of those strategies, leaving it poorly equipped to stay on top of rapidly shifting consumer tastes. 

In its latest earnings call, new CEO Stéphane de La Faverie candidly acknowledged that the company had “lost its agility,” and promised to quickly implement an ambitious modernisation plan. The Debrief explores how Estée Lauder’s legacy is now proving to be a burden, and how it can still overcome its challenges. 

Key Insights: 

• Holding around 86% of the voting rights, Estée Lauder’s tight family control helped maintain a tight focus on prestige beauty, but has contributed to a risk-averse culture that caused the company to miss out on important trends. “A lot of their beliefs are around beauty being a prestige category and a prestige experience and that being the way to win,” says Morosini. “That message in the wider beauty consumer base has been diluted a little bit. People are much more open to shopping for products in different ways and from different kinds of founders. They didn't really let go of their values.” 

• Estée Lauder also made a big bet on China, at one point deriving 25 percent of its sales from the market. However, when demand cooled post-COVID, it exposed weaknesses in its home market strategy. "Not only did the China business really, really sharply decline, but when the Chinese market took a really big hit, it exposed just how much they had neglected their home market of the US and just how much market share they had ceded without anyone really realising,” says Morosini.

• The company’s new CEO, Stéphane de La Faverie, is spearheading a major strategic overhaul with his "Beauty Reimagined" plan. This vision aims to reinvigorate the brand by streamlining the corporate structure, tripling the pace of innovation, and placing an obsessive focus on the consumer. "They've created more of a skincare brand cluster, a makeup brand cluster, and they've also really simplified the geographic way that they're dividing up the markets and who's overseeing them. I think that could lead to greater agility and better sort of more targeted marketing for each region," says Morosini.

• Estée Lauder’s model of fuelling growth through brand acquisitions is increasingly unsustainable in today’s volatile market. The company's ability to innovate and adapt has been hampered by heightened domestic competition and an unpredictable economic climate. "I think as time has gone on, it's just got harder and harder because the competition, especially in the US in their domestic market has really, really ramped up. And they don't seem able to accurately forecast what's gonna happen next,” says Morosini. “It's really hard to convince people that something that's been around for a long time is actually cool."

Additional Resources:

• Estée Lauder Knows How to Cut Costs. Can It Also Rebuild Growth? 
• A First-Day Agenda for Estée Lauder’s New CEO

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After a prolonged slowdown, fashion’s M&A market is springing back to life. A combination of falling interest rates, shifting investor sentiment and optimism around economic policy has fuelled a wave of early 2025 deals. Within the first few weeks of the year, brands like True Religion and Kapital were acquired by private equity firms and holding companies, signalling renewed confidence in fashion investments.

However, not all acquisitions are about aggressive growth. Some buyers specialise in “managed decline,” acquiring struggling brands to extend their lifespan through licensing or cost-cutting. Others, including private equity firms and strategic buyers, see opportunities to scale promising brands by injecting capital and expertise.

“The key for a lot of these companies in finding buyers is proving that their brands are still worth it and can weather these economic cycles and lulls in the market,” shared e-commerce correspondent Malique Morris. 

Executive editor Brian Baskin and senior correspondent Sheena Butler-Young sat down with Morris to break down the latest deals, the brands poised for sale, and what it all means for fashion in 2025 and beyond.

Key Insights: 

• A number of converging factors are driving a new wave of fashion mergers and acquisitions in 2025. Falling interest rates, Trump’s re-election driving investor optimism, and shifting regulations have all played a part in fuelling new acquisitions. “Retailers reported strong holiday sales in 2024, and even though much of that was driven by discounting, it signalled that consumers were still spending,” says Morris. “That kind of activity gives investors more confidence in backing fashion businesses.”

• Buyers are looking for brands with strong customer loyalty, an engaged audience, and clear growth potential that can weather the ebb and flow of the market. Brands need “good stewards to help them find the best resources to expand without hurting their legacy, whether that be money, retail networks, or supplier relationships,” explains Morris. “It's important to have the resources you need to maintain relevance and compete for consumer attention.”

• Beauty remains a hotbed for M&A activity. “Unlike fashion, beauty hasn’t faced the same investor hesitancy,” says Morris. “Brands like Merit, Westman Atelier, and Makeup by Mario are seen as prime acquisition targets, while Rare Beauty could be the defining beauty deal of the decade.”

• Overall, buyers are prioritising brands with strong customer loyalty and cultural relevance. “They're seeking brands with ample customer loyalty and a passionate consumer base that will keep their names in the public consciousness, irrespective of what recent sales growth will look like,” says Morris. He adds, “The thing that is top of mind is, what is the value of your brand? That’s an honest conversation that I’m not sure all companies have with themselves, let alone with buyers.”

Additional Resources:

• What’s Behind the 2025 M&A Wave | BoF 
• Fashion’s Most Anticipated M&A Hot Spots in 2025 | BoF 

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The fashion workplace is evolving, shaped by a wave of technological advancements, leadership changes, and cultural dynamics. For many employees, adapting to these changes has become a challenge, while employers must navigate how to foster connection, retain talent, and drive innovation.

Executive editor Brian Baskin sits with commercial features editorial director Sophie Soar and senior correspondent Sheena Butler-Young to unpack how businesses can create thriving workplaces in 2025, the role of soft skills in a tech-driven era, and what it takes to re-engage an increasingly disconnected workforce.

“In the face of AI and more technology coming in, it is more important to have a human element. What does a human do well? That’s why soft skills are a huge focus,” says Butler-Young. Meanwhile, Soar highlights the growing challenges of employee disengagement, stating, “We are incredibly disengaged as a workforce. Trying to get employees to buy back into what they’re doing and be part of the workplace is going to be really challenging.”

Key Insights:

• The turnover of leadership in fashion is reshaping workplace dynamics. “New leadership means change, even if they're using the same playbook,” explains Butler-Young. “Having someone new at the top of your company tends to affect morale for better or worse, or just makes people feel uncertain.” She adds, “Fashion workplaces are in this perpetual transition this year, which will inevitably shape culture.”

• In the wake of President Donald Trump’s executive orders targeting corporate DEI programmes, successful DEI strategies in 2025 will integrate horizontally across all business functions, rather than thinking about it as a vertical. “If something is horizontally integrated across the business and is a fundamental aspect of every single core pillar that this business touches upon, it's harder to roll back on those initiatives as a result,” says Soar. Butler-Young adds, “If you as a leader of any kind of organisation appear to flip-flop on your values based on the way the political winds blow, I think that's going to have a harmful effect on your workplace in the long term.”

• As AI becomes more prevalent, employers are placing greater emphasis on human-centric skills. “In the face of AI and more technology coming in, it is more important to have a human element to it. What does a human do really well? That’s why soft skills are a huge focus,” says Butler-Young. Soar adds, “It’s about engaging a workforce who are constantly striving to think about how they can take this particular tool or opportunity to the next stage and do so with that can-do, positive approach and attitude.”

• The impact of the attention economy has spread into our work lives. “We are incredibly disengaged as a workforce,” says Soar. “Trying to get employees to buy back into what it is that they're doing and be a part of the workplace is going to be really challenging, especially as they're navigating a hybrid or remote working environment.” Employers, Soar argues, need to address this to optimise their workforce for the future: “It is fundamentally changing the way that we are operating as people as well as employees.”

Additional Resources:

• How to Future-Proof Your Fashion Career in 2025
• From Trump to Gen-Z, Fashion Faces a Culture Quake
• BoF Careers

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Brand collaborations were once rare, highly anticipated events that generated significant buzz. But as they have become more frequent, the challenge lies in creating partnerships that genuinely resonate with consumers and cut through the noise.

This week, executive editor Brian Baskin and senior correspondent Sheena Butler-Young sit down with BoF correspondent Lei Takanashi and editorial fellow Julia Lebossé to explore the state of brand collaborations, what makes them succeed or fail, and where they’re headed next.

To work, collaborations need to feel authentic. For brands, “letting their collaborators take the wheel and just do what they want to do is really key,” says Takanashi. “When brands collaborate successfully, it’s often because they give creative freedom to the collaborator, allowing them to use the materials they want and tell a story that feels true to their audience,” adds Lebossé.

Key Insights: 

• Poorly thought-out collaborations often fail to connect with audiences and just won’t cut it anymore. “When it's done lazily, consumers can tell”, explains Lebossé. “We're becoming much smarter, really looking into brands and what they're doing and what makes sense. … That's why brands really have to step up in terms of what they're doing.”

• It’s not just big brands that can make waves with collaborations. Lebossé pointed to a sneaker collaboration between Bimma Williams and Saucony as an example where a smaller brand excelled. “They’re showing that, hey, we can do innovation,” explains Lebossé.

• Brands are finding even greater value in creating physical experiences around collaborations. Takanashi points to the Corteiz x Nike collaboration, where prospective buyers participated in scavenger hunts to buy the shoes. “If someone told me that kids would be lining up to buy Huaraches in 2025, I would not believe them at all,” he says. “But that’s the thing. This brand got kids waiting for hours in the freezing cold to buy their sneakers. It’s really that IRL experience that consumers are looking for when it comes to releases these days.”

Additional Resources:

• Why Fashion Needs the Art World More Than Ever | BoF
• Why Are Sneaker Collaborations So Boring?

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