No sooner had posted my own thoughts on the future of Indian fashion, that I began seeing other interesting perspectives which have emerged in other online fashion media over the past week on India’s luxury goods and fashion industry. Clearly, Indian fashion is on fire. Much of the content is infused with the intelligent musings of Bandana Tewari, who is also the newly named Fashion Features Editor of Vogue India and has become a good friend since we met back at London Fashion Week in February 2006.

The most recent JC Report focuses on India, covering Wills Lifestyle India Fashion Week in Delhi and Lakme Fashion Week in Mumbai. The highlight for me was an insightful interview conducted by global fashion guru Jason Campbell (the JC of JC Report) who speaks to  Bandana Tewari,  who is equally guru like in her knowledge of the Indian Fashion scene. You could call it the meeting of the gurus.

Bandana also features as part of an interesting dive into Indian fashion aesthetic at luxuryculture.com. There is also a fascinating interview with India’s minister for Commerce and Industry, Shri Kamal Nath, who provides a detailed look inside some of the drivers of Indian wealth and how the luxury goods industry is shaping up. If you want to get your head around the dizzying growth of Fashion and Luxury in India, this article is a must read.

[The picture above is snapped in Bandana's hotel room at Delhi Fashion Week, when Bandana kindly ordered us some room service after an exhausting day full of shows.]

About a month ago, I attended the Harvard Business School’s annual Retail and Luxury Goods Conference in Boston. It was an interesting day of speeches and panel discussions, bringing together industry veterans and experts from leading luxury goods and retail companies including Neiman Marcus, Loro Piana, and Holt Renfrew. You can read more about the conference in this news article from HBS’s Harbus Newspaper.

I was honoured to speak on a panel with a diverse group of talented people from across the world of Luxury Goods, including the American designer Peter Som, Olivier Cardon, President of Roche Bobois North America, and Roberto Vedovotto, Chairman of Lehman Brothers Global Luxury Goods practice. I thoroughly enjoyed the back and forth with my fellow panelists. We touched on many topics, but the one that seemed to provoke the most debate was regarding the role that the Internet and so-called "Web 2.0" technologies can play in the branding, marketing and commercial strategies of luxury and fashion companies.

I have to say, it felt like being in a time warp. There was a notion that luxury “customers aren’t on the Internet” and that the Internet “is too risky” for luxury brands. All of a sudden, I knew what it must have been like to be Natalie Massenet (of Net-a-Porter) or Ernst Malmsten (of boo.com) back in 1999, making a case for the potential of Luxury and the Internet, to people who were very risk-averse, conservative and stuck in old mindsets; people who couldn’t see the potential for what the Internet could do for their brands and businesses. Of course boo.com and Net-a-Porter have followed two very different stories. (One, which ended abruptly, was discussed in this post.) Massenet, however, has shown (with her company that is now turning over a reported $80m and growing at 100% per year), that as with all businesses, harnessing the power of the Internet for Luxury comes down to basic business acumen, strong marketing skills, and knowing how to properly manage and grow a start-up, while also understanding technological issues such as the adoption curve and limitations of sophisticated technologies.

As for Luxury customers not being on the Internet, this appears to be an assumption made in the absence of basic facts or data. One need only look at a recent article from the Financial Times to see really how many luxury customers are online:

"A survey of  500 of America’s richest families published in 2005 by researchers Doug Harrison and Jim   Taylor found that the respondents spent on average 13.7 hours a week online. The Luxury Institute, in a  survey of 1,000 wealthy consumers published in March, found that 98 per cent used the internet for     shopping, and that 88 per cent read product research and review sites.”

Clearly, these are not just young bucks trying to pick each other up on Myspace or Facebook, but also high net worth communities like asmallworld and focused fashion communities like Iqons.com. Big brands and collections are being discussed passionately on all of these highly-trafficked sites, but also on blogs (purseblog.com, whowhatweardaily) and virtual communities (secondlife.com). The amount of content is mindboggling. 

Obviously not all of it is good content. But, my basic point is that since conversations about Gucci, Prada and Burberry are going on, Gucci, Prada and Burberry might as well figure out a way to be part of those discussions, where it makes sense. The fact of the matter is that the conversations will continue, whether they are involved or not. Of course, not all of those places would make sense for every brand all the time, but to disregard the importance of the Internet outright seems shortsighted.

When it comes to the riskiness of luxury brands on teh internet, I can certainly appreciate this point. Big players have the most at stake, given the energy and money that have been invested in their brands, sometimes over hundreds of years. But that said, where there is risk, there is also opportunity. Thankfully, some big brands have recognised this and started to experiment with some of these new communication channels. Armani and Karl Lagerfeld have brought their fashion show videos to the Internet, iPods and mobile phones, showing that being a pioneer has nothing to do with age, it has to do with attitude. Dior has also experimented with the launch of a jewelry collection on secondlife.com.

That said, some of the most exciting ways to really experience what online luxury might feel like in the future is by visiting the amazing virtual worlds created by emerging designers, who are able take more risks and experiment. Boudicca’s site at platform13.com is like walking right into the fantastical (sometimes incomprehensible) world of the designers, Zoe and Bri an, who share all aspects of themselves and their passions. They have also uploaded all of their fashion shows to Youtube. Other fashion designers are also providing a peek into their everyday lives by keeping regularly updated blogs. New York-based Brit Sue Stemp and dynamic British-Japanese duo Eley Kishimoto are amongst those using blogs to create a space to communicate with their customers.

What the future holds for luxury eCommerce in particular is very exciting indeed, because much of the basic foundation has been laid. Competition is just beginning to heat up.  Since pioneers like Massenet successfully brought luxury online, all of the big retail and luxury players have jumped in. You could say, they have been fashionably late. Neiman Marcus’ direct business (which includes the nm.com, bergdorfgoodman.com and the catalogue business) now generates $700m in revenue. Revenue growth rates for the online boutiques of Coach and Gucci are massive, somewhere in the 60%+ range. Interestingly, partially because of the rush to capture online real estate and market share quickly, almost every online luxury site feels the same. Not much time has really been spent in creating a truly unique destination. Just check out  brittique.com, matchesfashion.com, brownsfashion.com,neimanmarcus.com, eLuxury.com , and bluefly.com and you will see what I mean. For the most part, each site is a one-way interaction with the consumer. They also tend to be organized in the same way, with similar aesthetics using similar fonts and layout. Only Net-a-porter has successfully integrated compelling content into their site (with its magazine) and just Yoox has a truly different look and feel.

So now, as with any other business where the product/service starts to become commoditised, the key players will have to take it to the next level and differentiate themselves to keep up with the rapid pace of what’s going on. It’s not a zero sum game yet because the industry’s growth is so high, but with so many players in the game, its bound to be more competitive. This is where Web 2.0 can play a role. Luxury ecommerce sites which differentiate themselves through unique product assortments, clever editorial and content, and interactive community development, will be the ones that succeed. On the other hand, with retail it always comes down to number of visits and average purchase size, so its also important that the interactivity and community don’t detract from the primary objective at hand, which is to drive sales.

There has been much talk of India’s increasing appetite for Luxury Goods due its rapidly growing upper and middle classes and on-fire economy spitting out growth at 8% per year. New millionaires, it seems, are born in India everyday. Usually, when people discuss how the fashion industry will serve these new customers, the conversation focuses on the Gucci’s, Prada’s and Chanel’s of the world and how they plan to conquer the Indian market.

However, anyone who has done business in India will know that navigating the the notoriously challenging Indian business world is not easy. In Indian fashion, it is even more challenging. Darwinian forces and age old Indian cultural patterns  collide with the already flaky and frenetic fashion world. This is, after all, the country where Majed Al Sabah’s putative Indian business partner in an initiative to develop an Indian outpost of Villa Moda left him at the proverbial alter and then went off to set up his own competing business under another name, using the Villa Moda concept. Clearly, understanding the nuances of how things really work in India and how to gain the trust of and commitment from Indian business people is critical to success.

This is partially why I think there should be much more discussion on which of the local Indian designers (and there are literally 100’s of them who show in Delhi and Mumbai each season) will conquer the Indian market. These are people who have lived and breathed India from the get go, and have the know-how and connections to make things work in their home country. Sure, most of the big European luxury players partner with illustrious local business families with fashion cred, but it seems to me that having an operation that understands the Indian market and designs specifically for it can be a very powerful way in which local Indian designers can compete with the big guys.

The truth is, the tradition of cultural dress in India is not relegated to formal events or occasions as it is in some other Asian countries.  In fact,  Indian men and women, even at the most elite socio-economic levels,  integrate traditional dress into their everyday lives. This is, on the one hand, a reflection of climate. On the other  hand, it is a reflection of a distinct pride in Indian culture. For designers who share in this pride, understand the culture, and can design for it, they can have a leg up on any foreigners who come to play on the feisty Indian fashion playground.

Tonight, one of my favourite Indian designers, Sabyasachi Mukherjee, invited me to an event in London showcasing the work of some of the most talented Indian designers. Held by the Gallery Sumukha at London’s Bombay Brasserie, the event brought together 30 artists from India who collaborated to produce thematically linked pieces of fashion, art and design.

Though the Bombay Brasserie space did not lend itself well to this kind of exhibition, it was very impressive to see the work of so many talented young artists from India all in one place. At a fashion show in New York a few season ago, a Japanese buyer from Isetan asked me if I was the "Hermes of India". When I looked at him with a blank face, not knowing what he meant, he went on to describe an Indian ingenue of great talent and noteriety. I soon figured out he was talking about Sabyasachi — so you can understand the level of talent that was assembled for the event. Manish Arora, Rohit Bal, and Rajesh Pratap Singh were some of the other Indian fashion luminaries who were working the crowd.  Right now, it seems many of them have their hearts set on conquering the Europe and America. It’s my hope that one of these guys also finds the inner passion to also make it in their home market, building the world’s first luxury brand in India, for India.
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Sabyasachi developed this look based on the painting to the left by Paresh Maity. It is reminiscent of the  nerd girl chic collection he showed to great reviews in New York last September.

Manish Arora’s contribution was a signature Manish skirt and jacket based on the stunning work of Ravinder Reddy.

We fell in love with these  old-school valises in modern colours by Suman Sharma, inspired by Bose Krishnamachari in collaboration with Rohit Bal.

© 2007 Copyright Imran Amed – The Business of Fashion

Last week, Tom Ford launched his much-awaited menswear collection at a brand new New York flagship, where he provided personal tours to the fashion elite, including Bernard Arnault of LVMH and Cathy Horyn of the New York Times.

It seems that while Cathy was impressed, she didn’t necessarily understand the business rationale for Tom’s decision to focus solely on the most elite niche of the menswear market, i.e. men who are willing to spend upwards of $3000 on a suit. Tot top it all off, Ford has supplemented the purchase of the suit with a truly luxurious environment (read expensive capital expenditure and rent) to provide a truly unique tailoring experience.

Will Mr Ford be able to work his Gucci magic again? There is an interesting discussion speculating on this topic in the comments section of Cathy Horyn’s post.

It is cliche to say that New Yorkers dress in uniform, but as with most cliches, there is a kernel of truth to this one that can’t be denied.

There is also no denying that New Yorkers are stylish, they just tend to be stylish in easily identifiable groups often associated with the areas in which they live and work, ie. Williamsburg hipsters in skinny jeans and hoodies, Wall Street bankers in Brooks Brothers and 5th Avenue ladies who lunch in Chanel. Sure, you could say the same is true for Londoners as there are trends that seem to capture the imagination of Notting Hillbillies, Sloane Rangers and Hoxtonites alike, but somehow these are executed with individual panache that makes the trend their own.

In New York this past week I was staying near 5th Avenue and everywhere I looked – Starbucks, Abercrombie, crossing the street – I saw women wearing the same things:  Goyard bags and Tory Burch ballet shoes. It’s no accident that both of these items are available nearby at 5th Avenue establishment Bergdorf Goodman and trendsetting Barney’s New York, but still the sheer volume of women toting those bags and sporting those shoes was mindboggling.

Goyard is a 150+ year old French luggage company that has captured the interest of 5th Avenue status seekers with its coated canvas bags which, according to people I spoke to, last forever. Tory Burch, a New York socialite whose very successful label does not have the same history as Goyard, has still managed to do the same with her Reva ballet shoe, emblazened with the Tory Burch logo.

The question I have is how smart it is from a business standpoint to allow consumers to buy into a core item like Goyard’s tote as an "it bag". It’s one thing for a Fendi fashion bag to become the season’s "it bag", because those bags are usually only around for a season or two and Fendi has a whole foundation of core bag designs and silhouettes that are available season after season. These bags speak to the history of the brand and are not marketed as being ‘of the moment’. These never go out of style. Once the moment has passed for the Goyard tote, Goyard will have to reinvent its basic bag to compel more people to buy their bags in the future.  It’s much smarter to market a fashion bag as an "it bag", and allow the core items of your collection to act as the solid base from which other more seasonal bags can be developed. Goyard has done this, consciously or unconsciously, the other way around. 

Turns out I wasn’t the first to notice the Goyard trend as Bill Cunningham (aka the original Sartorialist) captured Goyard totes on countless women in his regular On The Street feature for the New York Times entitled "The Trophy" (see above). He also did an article onthe more seasonal Fendi double buckle bags and Chanel carry-alls, underlining how these experts in the fashion game have got the it bag business sorted out.

Goyard street photo courtesy of the New York Times, 10 December 2006.

 
While in New York this past week, I ended up in New York’s Bowery District several times, completely unknowingly and without any forward planning. People just invited me there for dinner or lunch at the very cool restaurant called Freemans and the sweet brunch spot called the Five Points Restaurant.

Once upon a time, The Bowery was home to high European culture and then was the centre of a grassroots movement of artists and musicians in America’s new melting pot in the late 1800’s. However, since the early 1900’s the area has languished as a skid row zone of brothels, run-down buildings and grime. Today, the Bowery remains one of the few areas in Manhattan yet to be gentrified and therefore has a feeling of authenticity and realness that I crave, especially in the context of the rest of the city, which can sometimes feel like it is is hurtling quickly towards a feeling of Disneyfied homogeneity.

The highlight of my Bowery visits, by far, was a visit to the Barking Irons (19th century slang for "pistols") studio, in the heart of the Bowery. Barking Irons is the creative offspring of two brothers, Daniel and Michael Cassarella, who have used a combination of the Bowery’s historical artistry and legends, beautiful design, and an appreciation for functional clothing that all guys can appreciate, to create a budding young business that deserves attention. Having secured important stockist relationships like Barney’s in New York and Isetan in Tokyo, they are beginning to get their message out.

Yet, I believe this is a brand with so much more potential than that. Up until now, Barking Irons have really been known for their graphic t-shirts, not least because of TV appearances on coveted chests of Hugh Laurie on House, Adrien Grenier on Entourage and Mathew Fox on Lost. And while the t-shirts are great, what really stood out to me were the ingenious jackets and hoodies with a twist. They have taken iconic American street clothes and twisted them so that the wearer knows they have something special on their backs. As Michael took me through the studio with its original dark wood flooring and passionately recounted the stories and history of the Bowery, and how it is manifested in their clothes and design, I saw so much more than t-shirts and streetwear.

This is a business with that rare authenticity that can form the essence of a real brand, with all of the meaning to last beyond trends and new competitors. And, they offer a lesson to all young designers that if you stick to the meaning behind what inspired you to set up your company in the first place, it is bound to shine through in your products, your workspace, and the way you communicate what your brand is all about.

Sellouts need not apply.

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Daniel giving me the scoop on some of the 19th century spoons that form the inspiration for the new BI jewelery collection.

Cool tuxedo detailing on a soft cotton shirt. An original costume from the Gangs of New York.

A full view of the back of the studio. The original Dutch spelling of Brooklyn on a BI t-shirt.

Barking Irons riffs on the classic hoodie and plaid work shirt.

Some more Barking Irons T-shirt graphics.

I have put in an order for this jacket

© 2007 Copyright Imran Amed – The Business of Fashion. Adrien Grenier photo courtesy of Popsugar.

It seems the Business of Fashion for emerging designers is a relevant topic around the world. Recently, fashion bloggers in Germany and Brazil have been commenting on The Business of Fashion Basics series in German and Portuguese. Leo Moura, who is based in Brazil, is even translating the entire articles into Portuguese.

Thanks very much to Leo and Modabot for getting the word out. Stay tuned for article three on finding the right investors and partners.

Who said that big brands can’t retain the DNA of what made them interesting in the first place?

This past week in New York, I visited the Marc by Marc Jacobs store on Bleecker Street, the little brother store to Marc Jacobs mainline collection. Both businesses are owned by LVMH, the world’s largest luxury goods conglomerate. Marc Jacobs is also the Creative Director for Louis Vuitton, the company’s largest fashion brand. So, you might expect that the company feels corporate and over marketed.

Thus, it was a pleasant surprise to walk into the Marc store and see a huge yellow chicken mascot sitting in the store window. A (suitably cool) photographer named Thom was taking photos of customers posing with the chicken and then posting them in the store windows for all to see.  As Thom explained, the tradition of taking these kinds of photos goes back years in Marc Jacobs history to Marc’s infamous Christmas parties, where extravagantly dressed up patrons would pose together as momentos of the party. You can check out some of these photos on Thom’s website.

By translating this fun experience into the store, customers are engaging with the Marc Jacobs brand in such a cool way, that is not staged or fake, but an authentic part of Marc’s lifestyle and appeal. Some more photos of the instore antics are below.