The Transformation of the Fashion Business: The Golden Age of Brand Management

Brand management firms are leading a revolution in fashion, investing in strong brands to drive their global expansion.

The recent deal between Vera Wang and WHP Global highlights a significant shift in the fashion business landscape. Brand management firms are moving away from their reputation of rescuing struggling brands to focus on expanding those with great potential. This evolution, which Yehuda Shmidman, CEO of WHP, describes as a shift towards a “3.0 or 4.0 model”, is marking a new era in the industry.

Instead of acquiring struggling brands, companies like WHP, Authentic Brands Group, and Marquee Brands are investing in established names that need support to grow. This model, centred on intellectual property, allows these firms to license brands across multiple markets and channels, optimising their reach without assuming the operational risks of handling inventory.

Consolidation is redefining the industry. The biggest players are backed by major investment firms such as BlackRock and General Atlantic, giving them access to unlimited capital. This enables them to acquire brands strategically and build a diversified portfolio that generates high margins and sustainable cash flows.

For Shmidman, this is a unique moment: brands are available, and capital is in their hands. “We are living in a golden age,” he said. With more brands on the market than buyers, the landscape is set for significant expansion in the coming years.

Brand management is no longer just a business model; it is a dominant strategy that promises to reshape the future of fashion and beyond.