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13 July, 2011 | by Imran Amed, Editor

The Long View | Simone Cipriani Says Ethical Fashion is Good Business

Simone Cipriani, Andreas Kronthaler, Vivienne Westwood, Federico Marchetti at the launch of the Ethical Fashion Africa Collection | Source: ITC

FLORENCE, Italy — Simone Cipriani spearheads the Ethical Fashion initiative of The International Trade Centre (ITC), a joint agency of the United Nations and the World Trade Organisation. Connecting “the world’s most marginalised people to the top of fashion’s value chain for mutual benefit,” it enables communities of artisans and micro-manufacturers — the majority of them women — to thrive in association with the talents of the fashion world by fostering local creativity, enabling female employment, and promoting gender equality in order to reduce extreme poverty, according to a detailed brochure published by the ITC this month.

Of her recent collection with the Ethical Fashion Initiative, unveiled during Pitti Uomo last month and now available on Yoox.com, Vivienne Westwood said “it’s quite incredible to think that we might save the world through fashion.”

But ethical fashion remains a somewhat fuzzy, idealistic concept, which has proven difficult to implement in practice. It also remains a niche market, even if consumers are becoming more conscious about their purchasing habits and sales of ethical fashion are growing. According to Mr. Cipriani, its widespread adoption will require a wholesale mindset shift for the fashion industry, which must eliminate waste from a fashion system that remains bloated with excess product and underpays those at the very early stages of production.

Mr. Cipriani’s official title is typical of bureaucratic nomenclature: Head, Poor Communities & Trade Program, Chief Technical Advisor, Ethical Fashion. But make no mistake, this is no ivory-towered diplomat. Cipriani spends most of his time in the field — the slums of Nairobi and rural communities around Africa — laying the groundwork for ethical fashion at the front lines and building ties to fashion houses in Europe in order to make his vision a reality.

I caught up with Simone Cipriani on a quiet rooftop terrazza during one of his rare visits to his native Florence for the launch of Vivienne Westwood’s Ethical Fashion Africa collection.

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4 July, 2011 | by Imran Amed, Editor

CEO Talk | Alessandro Benetton, Executive Deputy Chairman, Benetton Group

Alessandro Benetton | Source: Benetton Group

MILAN, Italy — It’s not always easy running the family business, especially when that business is an Italian fashion powerhouse, operating in 120 countries around the world and earning more than 2 billion euros in annual revenue from its more than 4,000 directly-operated and franchised store locations.

That’s exactly what Alessandro Benetton, 47 year-old scion of the Benetton fashion dynasty has been doing for the past few years. He returned to the family fold as Executive Deputy Chairman in 2007 after earning an MBA at Harvard, putting in a few years in M&A at Goldman Sachs, and successfully running his own private equity fund, 21 Investimenti S.p.A, which today has over 1.2 billion euros in assets under management.

The Benetton brand was in great need of new energy from someone who could navigate the family dynamics, but also bring an outsider’s expert perspective. In the context of increased global competition from the likes of Zara, H&M and Uniqlo, and rising raw materials prices, Benetton Group operating profit has fallen from €145m in 2007 to €102m in 2010, on total revenues which have remained flat.

Now firmly esconced in his role, Mr. Benetton is looking to re-assert the company’s position as source of high-quality fashion basics, while further emphasising Benetton’s ethical operating principles and provocative and colourful marketing strategies. To drive this creative repositioning, Benetton announced in June that You Nguyen, formerly of Levi Strauss & Co., would become chief merchandising officer and creative director.

I chatted with Mr. Benetton by phone from Milan to learn more about his vision for reshaping Benetton for the 21st century.

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6 June, 2011 | by Imran Amed, Editor

Is Burberry’s Digital Prowess Really Waning?

Burberry April Showers Accessories | Source: Burberry

LONDON, United Kingdom — For years, digital media experts and observers, including those on this website, have held up Burberry as an example of a luxury fashion brand that’s effectively embracing today’s digital world.

Last year, Joanna Shields, Vice President EMEA for Facebook, the world’s largest social network now with more than 700 million registered users, took that one step further. “Burberry is no longer just a fashion company — today they are a thriving media enterprise,” she said. “Burberry is now the most widely followed fashion brand on Facebook. It’s successful not just because it makes great clothes but because it understands the importance of sparking interest in the community and using social media to engage and delight their consumers.”

Of course, Facebook has its own reasons for promoting brands who have enthusiastically adopted its platform, but there is no doubt that with more than 6.5 million Facebook fans and an impressive array of digital initiatives, Burberry’s reputation as one of the world’s most sophisticated digital operators has now become a core part of its brand DNA.

So, I was surprised to receive a pre-release email from New York’s L2 thinktank about their new ‘Facebook IQ’ report that ranks Burberry 49th amongst 100 prestige brands, giving them an overall rating of ‘Average’. Only 8 months ago, the same organisation rated Burberry as ‘Genius’ in its annual Digital IQ index.

Is Burberry’s digital prowess really waning?

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2 June, 2011 | by Imran Amed, Editor

The Spotlight | Huishan Zhang

Huishan Zhang A/W RTW 2011 | Source: Huishan Zhang

LONDON, United Kingdom One of the greatest aspects of teaching at Central Saint Martins (apart from walking its hallowed halls) is having a first look at the strong talent that the College manages to attract from around the world, and then witnessing (often with amazement!) how that talent develops over time. The strongest students take advantage of all that CSM has to offer, and in the process, discover their own design voice and signature.

One such example is the talented, Chinese-born Huishan Zhang, who attended one of my very first lectures at CSM a few years back and graduated with a BA in Fashion Design & Marketing in 2010. Since then, Huishan has been proactive about keeping in touch as he made decisions about both the business and design direction he wished to take with his own brand. He is a young designer who listens to the advice offered to him by an informal group of well-connected mentors who he has personally sought out to advise him. Listening is a skill sorely lacking in many young designers, who years later often say, “I wish I had listened…”

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1 June, 2011 | by Imran Amed, Editor

CEO Talk | Harry Wang, Chief Executive Officer, Shiatzy Chen

Harry Wang | Source: Shiatzy Chen

PARIS, France Long before the question arose about who would create the first Chinese luxury brand, Wang Chen Tsai-Hsia set up Shiatzy Chen to explore her tailoring skills and budding interest in serving the local luxury market in Taiwan.

Fast forward thirty years, and Ms. Wang now has a business with a turnover of more than $60m and growing, built through hard work, perseverance and in the Chinese tradition the support of her family, including husband Wang Yuan-hong, and their son Harry Wang, who now acts as the brand’s chief executive.

Mr. Wang believes the business can grow to $200m in revenues by 2020. But rather than focus on growing the business in the West as so many brands from emerging fashion markets tend to do, he has his sights set firmly on Asia. Extending from the brand’s home base in Taiwan to China and Japan is first on his list. Mr. Wang has also brought Shiatzy Chen’s fashion shows to Paris, forcing him to up his communications game and consider the brand’s role and customer targets in a global context.

I caught up with Mr. Wang during the last round of Paris shows to learn more about Shiatzy Chen and to benefit from his firsthand insights on the evolving nature of luxury in China.

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