Savigny Luxury Index January 2012 | Source: Savigny Partners

LONDON, United Kingdom — It’s been a strong start to 2012 for the luxury good sector, as equity markets made significant gains in January.

Big news

• The Savigny Luxury Index (‘SLI’) outperformed the benchmark MSCI World Index (‘MSCI’) by 6 percentage points, gaining 11 percent over the month of January, relative to an increase of close to 5 percent for the MSCI.

• Investors have been exposed to continued good news.  Indeed almost all luxury groups have announced outstanding Christmas trading and 2011 year-end results driven mainly by growth in Asia excluding Japan.

• However, uncertainties have not dissipated.  Although the US market seems much better, Europe remains a concern, with sector sales highly dependent on tourist spending.

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David Beckham for H&M | Source: Zap 2 it

David Beckham Fetes H&M Launch in London (WWD)
“It takes an unusual amount of sex appeal for a man to make a pair of long johns look good — and David Beckham has pulled it off. After serving as the face and body for Armani Underwear, Beckham decided to develop his own range together with his business partner and manager, the entertainment mogul Simon Fuller.”

Yoox Chief Marchetti Raises Stake, Forecasts Strong U.S. Growth (Bloomberg)
“Yoox Chief Executive Officer Federico Marchetti raised his stake in the online retailer of fashion and luxury goods after exercising stock options, saying the Italian company is being undervalued by investors.”

Fashion Changes, and So Do the Magazines (NY Times)
“Glamour’s newsstand sales were down substantially last year, by 17 percent through June and (as submitted to the Audit Bureau of Circulation) 9.9 percent in the second half. Most women’s titles were down. Part of the problem, it would seem, is that by exploiting a winning formula, fashion magazines have made themselves indistinguishable.”

Fashion Tech Boom: Why It’s Happening  (Fashionista)
“Last year saw a major influx of new fashion-focused tech startups. With the early success of pioneers like Gilt Groupe and Ideeli, an industry that has typically been slow to embrace new technology has spawned a burgeoning community of game-changing ecommerce sites, mobile apps and social networking and discovery platforms.”

An Intellectual Fashion | Scott Schuman (AnOther)
“Scott Schuman is the founder and editor of the iconic fashion blog The Sartorialist which he set up in 2005. He achieved considerable influence with his photographs taken in the streets, a selection of which was published as a book by Penguin in 2009.”

Benetton Unhate campaign | Source: Foto Telegraf

Benetton to make decision on delisting (FT)
“The Benetton family will decide at a board meeting on Wednesday whether to delist the Italian knitwear group known for its brightly coloured jumpers after the company posted another plunge in profits as it struggles to compete with Inditex and H&M.”

Luxury Companies That Can Bring You Closer to the Good Life (Money Morning)
“A lot of consumers are hurting right now, but you wouldn’t know that looking at the earnings of major luxury companies. Many luxury companies like LVMH Moet Hennessey Louis Vuitton, Burberry, Hermès, and Coach Inc had a stronger-than-expected 2011 campaign.”

Bright Young Things (Vogue)
“The British Fashion Council has announced the launch of International Fashion Showcase – a platform for international emerging designers – which will take place during London Fashion Week. Nineteen embassies and cultural institutes across London will display work from over 80 rising designers, spanning the world from Belgium to Botswana.”

The Finnish Fashion Blogger Who Landed A Deal With Diesel (Business Insider)
“Sandra Hagelstam, 24, is the founder of the hot fashion blog 5inchdesandup.com. She started blogging to create a daily log of what she wears… ‘(The blog) has opened up doors for me I never would have imagined in terms of being able to design my own collection and collaborate with others.’”

Divided they stand: the new extremists (Telegraph)
“This may look like a classic case of Roundhead versus Cavalier. Or Minimalist meets Maximalist. But that’s too simplistic.Neither Mary Katrantzou or Osman Yousefzada can be that easily pigeonholed.”

The Real McCoy's Tokyo | Source: One and Beyond

Made Better in Japan (WSJ)
“Louis Vuitton sales are plummeting, and magnums of Dom Pérignon are no longer being uncorked at a furious pace. That doesn’t mean the Japanese have turned away from the world. They’ve just started approaching it on their own terms, venturing abroad and returning home with increasingly more international tastes and much higher standards, realizing that the apex of bread making may not be Wonder Bread–style loaves, but pain à l’ancienne.”

Luxury brands long to bond with China’s elite (FT)
“Chinese shoppers have become a fixture of the luxury retail scene in the US and Europe, drawn by prices that can be up to 50 per cent lower than tax-elevated levels at home. But many upscale brands have yet to bond with the truly wealthy – China’s million millionaires.”

A fashion revolution? (FT)
“By far the most exciting thing I saw last week during the couture in Paris wasn’t couture at all, but a website that launches today: www.honestby.com. The brainchild of Belgian designer Bruno Pieters, late of Hugo Boss, it is the most subversive etail initiative I have seen.”

CFDA Controversy (Vogue)
“The CFDA has caused controversy after deciding to relocate its offices from New York’s beloved Garment District to Bleecker Street – a move designers have described as a snub to the area – a location that the organisation has always tried to protect and promote through initiatives such as Fashion Incubator and the Made In Midtown study.”

Custom shirts, cut from a different cloth (LA Times)
“Custom-made men’s dress shirts were once considered the privileged peacockery of the moneyed set… Thanks to advances in technology, a competitive market and consumer demand, custom clothing has moved within the barrel-cuffed arm’s reach of the common man.”

Louis Vuitton Maison in Sydney | Source: moluxury.com.au

SYDNEY, Australia — 2011 was an extremely busy year for luxury retail expansion in Australia. In April, Burberry opened a new flagship on Sydney’s George Street. In July, Prada and Miu Miu opened flagships in Sydney’s Westfield  shopping mall, where Gucci also opened its own two-level emporium in November. Then, in a dramatic end-of-year crescendo, Louis Vuitton opened a grand Maison on George Street and Bottega Veneta and Gucci opened stores in Sydney hotel and casino The Star.

This year, store openings in Australia are set to continue at a similar pace. Chanel is planning to expand its flagship on Castlereagh Street and relocate its Melbourne store to a stand-alone building, while Christian Dior will open its first Australian boutique on the site of the old Louis Vuitton store on Castlereagh Street.

So what’s behind the flurry of store openings in Australia?

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