A Marriage of Economic Convenience (NY Times)
“More than a decade since Target first popularized collaborations between high-end designers and mass retailers, and seven years since H&M introduced a collection with Karl Lagerfeld, there is still allure in the concept of cheap and chic… Such collaborations are proving to be both a reliable business model for retailers and a business in themselves.”

Marc Jacobs’s Entire Spring / Summer 2012 Collection Stolen (The Daily Beast)
“Call it the case of the missing dresses. Marc Jacobs’ entire Spring/Summer 2012 collection has been stolen from a train en route from Paris to London for the brand’s European press day, the company has announced. According to the e-mail circulated to press on Wednesday morning, the PR team wrote ‘our press day tomorrow in the Marc Jacobs store is cancelled, due to the theft of the spring/ summer 2012 collections during its transfer from Paris.’”

PPR to follow PUMA’s green accounting lead (Business Green)
“The parent company of some of the world’s biggest luxury and sporting brands, including Gucci, Yves Saint Laurent, and PUMA, is to embark on one of the world’s most ambitious green accounting programmes, after announcing it will create a group-wide environmental profit and loss statement (EP&L)… By placing an economic value on its environmental impact, the company hopes to improve its reporting of a wide range of green metrics.”

Missed profit forecasts hurt Abercrombie (FT)
“Shares in Abercrombie & Fitch plunged more than 13 per cent as the US teen fashion retailer missed Wall Street profit forecasts and was put on the defensive over its strategy in Europe. Abercrombie executives were grilled by analysts over falling sales at its international flagship stores after it reported a 1.8 per cent rise in net income to $50.9m, or 57 cents per share, which fell short of market expectations of 72 cents a share.”

Benetton Retries Provocation (WSJ)
“Italian clothing chain Benetton is trying to drum up attention for its flagging brand with ads showing global leaders kissing… Now, after having lost ground over the last decade to competitors such as Inditex SA’s Zara and Hennes & Mauritz AB’s H&M, Benetton is trying for publicity.”

Pushing the Boundaries of Black Style (IHT)
“As opposed to the fascistically frozen street-style snaps of The Sartorialist and others, these pictures are styled and plotted fictions but also affecting ones, depicting a pair of young black men taking ownership not just of the body and what goes on it, but also of the environment it moves in… Already they have wide reach: Street Etiquette receives 20,000 page views a day.”

Abercrombie & Fitch profit rises 64% (Market Watch)
“Abercrombie & Fitch Co.’s fiscal second-quarter earnings rose 64% as the teen-apparel retailer’s sales continued to soar, though rising costs hurt margins… Abercrombie & Fitch has seen strong results of late, aided by more promotional pricing and the growth of its international business. But like other clothing retailers, the company has said higher prices are on the way because of increased raw material costs.”

Forever 21’s Suppliers Are Also Being Sued for Copyright Infringement (The Cut)
“Forever 21 has defended itself against over 40 copyright infringement lawsuits by throwing their vendors under the bus. The company’s president, Do Won “Don” Chang, has said that their policy is to trust their suppliers not to break the law, rather than checking everything that they sell. So in order to cover all their bases, clothing label Feral Childe is suing both Forever 21, as well as the factory outside L.A. that supplied the copied design.”

Pandora’s IPO Under Investigation (Forbes)
“Danish regulators have recommended an investigation of Pandora’s IPO. The jewelry maker issued one of the largest floats in 2010. The Danish Financial Supervisory Authority, the country’s market regulator, said Tuesday they will ask police to investigate Nordea Bank Denmark, a unit of Sweden’s Nordea, for failing to report its financial interest in Pandora in an investment analysis prior to the company’s float in October.”

London: fashion capital of the world (Telegraph)
“London has overtaken New York as the world’s fashion capital for 2011, according to a survey by the Texas-based trend analyser, Global Language Monitor… Based on a system that tracks the frequency of words and phrases in print, electronic and social media, London has officially claimed the top spot – which New York had claimed for several years – after a surge in media interest.”

Wonder Girls for Chloé | Source: Luxuo

In China, Women Begin Splurging (WSJ)
“‘Many people are inclined to believe that gentlemen are generously purchasing luxury gifts for women in China, but our observation is that the great majority [of the buyers] are women who have achieved great success in their business and are now rewarding themselves with the finer things in life.’”

GQ, Gilt Groupe Team Up on E-Commerce Site (Ad Week)
“Gilt Groupe’s Park & Bond, an upcoming online retail spin-off for men, will host a GQ online store that will feature items picked by the magazine’s editors. Starting with the September issue, the picks will be marked in the magazine as well as on GQ.com, which will send shoppers to the e-commerce site.”

Resort isn’t a season for fashion to take a break (AP)
“The resort season is not a time for fashion to take a vacation. Resort collections, which hit stores during the all-important Christmas holiday shopping season, are a growing part of designer businesses as consumers move toward styles they can wear year-round.”

City speculates on Abercrombie bid for SuperGroup (Retail Week)
“US retailer Abercrombie & Fitch may be interested in acquiring trendy fashion retailer SuperGroup, City speculators believe… Shares in SuperGroup, which floated last year and subsequently rocketed, have fallen lately on fears of a sales slowdown.”

Jean Paul Gaultier lands in Montreal (Montreal Gazette)
“The object of the show… is to allow the public an up-close view of haute couture, which only those invited to the shows in Paris or the very few clients of haute couture in the world can see.”

The BoF community looks on at Fashion Pioneers with Natalie Massenet | Photo: Lawrence Randall

LONDON, United Kingdom — It’s been quite the year for the BoF team. In January, we will celebrate our 4th birthday, having seen BoF grow from a passion project created from the sofa in my living room to a growing global community of like-minded fashion professionals that is BoF today.

We are grateful for all of the support our community has shown us over the past 12 months, from the success of our sold-out Fashion Pioneers series to the rapidly growing numbers of you who come to us every day for opinionated fashion business analysis and a highly-curated point of view on the day’s news. We now have over 150,000 followers on Twitter, 2,000 fans on Facebook and growing follower base on our new Tumblr page. We are honoured and grateful that so many of you take the time to engage and interact with us on a daily basis, in so many ways.

The international media has also been paying attention to the power and reach of our community, from the International Herald Tribune to Vogue Italia to The Evening Standard. Canada’s Macleans Magazine called BoF “The Economist of Fashion,” the Daily Telegraph included BoF in their round-up of “Britain’s Best Fashion Bloggers” and just this month British GQ gave us a little surprise for 2011 (check out number 92). What an honour and a great way to start the new year!

None of this would be possible without you, the global community of executives, designers, editors, students, academics, investors and supporters who have made BoF their daily must-read on the fashion business. We’re going to take a break over the holidays, but in the meantime here’s a look back to the articles and stories which fired up your interest and passions this past year. Thank you again for your continued support.

Happy holidays, happy new year, and see you in 2011!

1. In Tokyo, Abercrombie Misses Its Mark

Abercrombie & Fitch, Ginza | Source: Fashionsnap.com

When BoF’s W. David Marx filed his report on the new Abercrombie & Fitch store in Tokyo’s Ginza district earlier this year, calling the American fashion brand out for its culturally insensitive approach to international expansion, the fashion blogosphere lit up with conversation about the new store. Commenters on BoF joined in large numbers, describing their own experiences — positive and negative — at the brand’s Tokyo emporium and providing insider scoops on the brand’s bungled retail strategy in Japan.

2. BoF Exclusive | The New Creative Establishment 2010

The New Creative Establishment | Source: INDUSTRIE Magazine

Possibly the most controversial article of 2010 was our exclusive preview of The New Creative Establishment created by our friends at INDUSTRIE magazine. The preview rocketed to the top of our Most Read Articles list right away and has firmly held its position for more than a month. Lists like these always spark some kind of controversy, but the uproar about this one was heard in fashion quarters around the world, and indeed on all of the major fashion websites from Grazia Daily to Style.com. Who deserved to be on the list? Who didn’t? Who was missed? Are these kinds of lists constructive contributions to the fashion dialogue or just a way for a new magazine to get attention and flatter would-be collaborators? You decide.

3. Fashion 2.0 | What The Independent Article Didn’t Tell Us

Tavi Gevinson's Bow at Dior Couture | Source: Twitpic by SteffiSchuetze

Back in February when The Independent newspaper contacted several respected bloggers for comment on an article about the growing influence and questionable ethics of some fashion bloggers, BoF was more than happy to provide some thoughts. However, when the article was published quoting only editors from major magazines, we published our own article, to give the other side of the story.

4. Fashion 2.0 | Top 10 Fashion Films of the Season

Our twice-a-year rundowns of the top fashion films of the season continue to be very popular. Fred Butler’s Sunshowers film topped our ranking of fashion films in the Spring while Gareth Pugh’s tour de force film shown in Paris’ Bercy stadium grabbed the top spot in the Autumn ranking. If you have some time over the holiday break, sit back and enjoy these curated selections of fashion’s finest films.

5. BoF Exclusive | Zaldy Goco talks about designing for Michael Jackson and Lady Gaga

Michael Jackson by Zaldy | Source: Zaldy Goco

Michael Jackson’s untimely death right before he was about to kick off a 50 concert series in London shocked the world.  Not only did BoF get the global exclusive scoop from designer Zaldy Goco on the costumes he had designed for the King of Pop, but we also got his take on working with Lady Gaga, whose impact on fashion in 2010 was absolutely huge.

6. Fashion 2.0 | Suzy Menkes on the Growing Influence of Fashion Blogs

In early in 2010 Suzy Menkes issued a warning to bloggers about the risk of becoming mouthpieces for fashion brands, many of whom seem to be looking to manipulate bloggers into publishing what some consider to be nothing more than brand propaganda. Ever the pragmatist, Ms Menkes also realises that the growing impact and relevance of blogs and other social media is here to stay. She told Mary Scherpe of Stil in Berlin, “the world changed when fashion instead of being a monologue, became a conversation. And that’s never going to stop.”

7. Fashion 2.0 | The Fashionable Rise of Tumblr

Tumblr Screenshots | Source: Google Images

Tumblr is the latest social media platform to take the fashion industry by storm. Vikram Alexei Kansara’s round-up on the rise of fashion tumbling elicited a huge response amongst the Tumblr community and resulted in BoF being invited to become an editor on the official Tumblr fashion channel. BoF has also launched it’s own Tumblr to participate in this passionate community.

8. Fashion Pioneers | Jefferson Hack, Natalie Massenet and Nick Knight

Our series of in-depth, one-on-one interviews with fashion’s most inspiring pioneers have been extremely popular on BoF and have spread around the internet like wildfire. If you missed our interviews during the year, take the chance to listen to these pioneering fashion forces speak about the future of fashion:

Jefferson Hack on Fashion Media in The Era of Digital Beauty

Natalie Massenet Says to Create the Future, Follow the Consumer

Nick Knight Says Heart and Mind are the Key to Fashion Imagemaking

9. How Influential are the New Fashion Youth?

Much has been said about the increasing influence of young fashion bloggers, empowered with digital media and their own creativity. Indeed, today’s internet-empowered youth have the tools, access and information to create and promote their own fashion culture. Our exploration of the ‘new fashion youth’ demonstrated how this kind of online showcase may create opportunities for long-term careers in the fashion industry.

10. It’s Time Fashion Schools Got Down to Business

Thomas Tait’s Sketchbook | Source: Thomas Tait

Rounding out the top ten articles of the year on BoF was an opinion piece highlighting the lack of business training and preparation given to young fashion designers at fashion schools the world over. The article does not advocate upseting “the unique and delicate creative climates that have been carefully constructed at the world’s leading fashion colleges,” but “building some basic business training into the core fashion curriculum would be a very good thing indeed.”

Imran Amed is founder and editor of The Business of Fashion

Olivier Zahm by Terry Richardson | Source: purple DIARY

The Future Of Fashion: Olivier Zahm (Style.com)
“The French editor and founder of the twice-yearly independent publication Purple Fashion has many other passions… but in an increasingly conformist world, Zahm offers an original, entertaining, and astute voice.”

Abercrombie Will Keep Discounting (WSJ)
“Abercrombie & Fitch said… it will continue its uncharacteristically high levels of discounting through the spring in order to boost store sales… it is willing to sacrifice margins if necessary to improve sales.”

Burberry accuses TJX of selling counterfeit goods (Reuters)
“Burberry Group… has sued TJX, accusing the operator of the off-price TJ Maxx, Marshalls and HomeGoods stores of selling counterfeit goods.”

Céline starts from clean slate (Wealth Bulletin)
“After struggling for years to forge an identity, the label is finding influential retailers including Barneys New York, Saks Fifth Avenue and Bergdorf Goodman are clamoring to carry its collection, even as they cut back their portfolios to focus on best sellers.”

Paris: A Rounder Season (NY Times)
“Louis Vuitton seemed to provide the perfect bookend to the Milan-Paris ready-to-wear season… Between Miuccia Prada in Milan and Marc Jacobs at Vuitton we saw the return of the lush, full-hipped woman, her breasts served up like ripe fruit.”

Abercrombie & Fitch, Ginza | Source: Fashionsnap.com

TOKYO, Japan — After several years of “will they or won’t they” speculation, American casual fashion retailer Abercrombie & Fitch finally opened its first retail store in Japan this past December. The 11-story shop in Tokyo’s upscale Ginza neighbourhood is just steps away from Uniqlo’s flagship store and Swedish fast fashion brand H&M.

As with every big retail opening in Tokyo, the first day of sales saw long lines of customers and swift business. The rumoured haul: ¥50 million (or about $550,000). Even without the benefit of an opening party or major press event, Abercrombie was able to rely on a small group of Japanese fans who had previously bought the brand’s products as souvenirs on trips to Hawaii or the continental United States.

But the big question is, will Abercrombie be able to win over new fans in Japan and replicate the unbelievably successful Japanese market entries of other mass fashion brands?

So far, the signs do not look good.

At the moment, Japan is in the midst of a low-price fashion boom.  The only profitable brands are chain retailers like Uniqlo, H&M and Forever21, and the cheap domestic labels in the Shibuya109 shopping building. Yet remarkably, Abercrombie & Fitch made the decision to charge Japanese consumers nearly double its American prices.

In a poll of first-day A&F shoppers in Nikkei’s Marketing Journal, 61.7 percent of people found the prices “a bit high” while 18.3 percent declared them “too high.” Less than one-fifth of consumers thought the prices were on target. Once upon a time, American retailers made huge margins by setting higher prices in Japan, but today, gouging the Japanese consumer simply doesn’t work. Consumers are too smart for that.

Furthermore, most multinational apparel companies have found success in Japan by working with local partners to adapt their messaging, communications and brand image to fit the mature and sophisticated Japanese consumer. In contrast, Abercrombie & Fitch is pursuing an intensely American retail and marketing strategy that may alienate the vast majority of their potential sales base. The strategy is adequately well-done in terms of basic presentation and architecture, but their new Ginza store, in particular, clashes with Japanese fashion and shopping culture in almost every possible way.

For instance, most foreign retailers in Tokyo employ an exclusively Japanese staff, who behave according to the expectations of Japanese consumers, but Abercrombie & Fitch decided to make the brand experience so “American” that they have almost nobody working the shop floor who would be perceived by customers to be authentically Japanese.

Remarkably, the staff greets shoppers in English, rather than Japanese. Indeed, the best a Japanese consumer can hope for is a kikoku shijo – a returnee from overseas – who can at least speak the local language. While most Tokyo shoppers may like imported, international goods, they do not want to be forced to surface their rusty English during a commercial transaction.

The staff also fails to follow widely recognized principles of Japanese politeness. They are boisterous and many sing and dance along with the songs piped through the Ginza store, making the relatively cramped sales space feel even more claustrophobic for consumers.

To make matters worse, many of the male staff members have their chests exposed. Sex appeal may be a big part of the brand’s charm in the United States, but this particular masculine ideal of a “ripped chest” is completely out of sync with current Japanese fashion culture and the constant presence of half-naked men is off-putting to the Japanese customer — especially when crammed into tight spaces like elevators.

Successful brands in Japan use their shop floor staff as brand leaders and styling mannequins to show consumers how the clothes look on real Japanese people. At this, A&F also fails.

Like its American stores, Abercrombie’s Ginza flagship also reeks of strong American-style cologne — this, no less, in a country that’s famously perfume-adverse. Indeed, back in 2005, perfume critic Chandler Burr wrote a New York Times magazine piece called “Display It, Don’t Spray It” on the universal Japanese distaste for strong cologne and perfume. Yet A&F seems to pump its signature cologne through the ventilation system in a way that permeates the entire experience — and whatever you were wearing at the time for days after. Of course, many successful Japanese brands incorporate scent into their retail experience, but subtlety is the key. The smell should not carry with the customer.

But it doesn’t stop there — there are practical challenges as well. Visitors to A&F’s Ginza store complained in TV reports that they could not adequately judge the colour of certain products in the store’s extremely dim lighting, which is designed to feel like a late 1990s New York dance club. And, the elevator only goes to the 7th floor, forcing female shoppers to walk up flights of stairs to reach the women’s department in the store’s upper reaches.

Finally, possibly the most fundamental problem with A&F’s Ginza store is that it offers consumers few options for integrating the brand into his or her own life. The clothing screams the letters A&F at a time when Japanese consumers are looking for much more subtle branding on their apparel.

It’s interesting to note that the most popular luxury handbag at the moment is made by Miu Miu and looks much less openly branded than those made by competitors like Gucci and Louis Vuitton. While at the high street level, as we’ve seen with the success of Uniqlo, young Japanese consumers are increasingly looking for brands that offer them ways to create their own individual styling. A&F, on the other hand, offers no room for adaptation. You are forced to either buy into the entire package or buy nothing.

At the moment, Tokyo fashionistas are obsessed with classic Ivy League style and heritage American brands like Red Wing. But despite these areas of opportunity to connect with the current tastes of local consumers, A&F has made no attempts to style or merchandise its “fratboy” clothing to fit the current fashion ecosystem in Japan. In contrast, Gap has gotten very good at this in recent years — enabling the company to market their merchandise to Japanese consumers who are not necessarily Gap fans.

So how did Abercrombie get everything so wrong? Is it ignorance or arrogance? It’s hard to say for sure. Either way, Abercrombie’s entry into Japan is a perfect case study in how not to localise.

W. David Marx is a Contributing Editor of The Business of Fashion

Kate Moss for Longchamps | Source: Longchamps

Kate Moss: Bags of Style (IHT)
“‘I am not doing it for different personalities — it’s what I like,’ says Ms. Moss — or Kate, as she is known. At age 36, she has taken another step in her second life, as a designer rather than as a supermodel using her pretty face and sensual lips to promote other brands.”

Esprit 1st-Half Net Profit Down 5.2 percent; Beats Forecasts (WSJ)
“Fashion retailer Esprit Holdings Ltd. said Wednesday its first-half net profit fell 5.2% percent from a year earlier as a disappointing wholesale business offset the improvement in its core retail operations.”

Abercrombie & Fitch’s Style Sense Wears Thin With Some Shoppers (WSJ)
“Retail analysts said Abercrombie’s troubles go beyond pricing to its once unerring sense of style, a problem that could be trickier to fix. The logo T-shirt and torn jeans ensemble that Abercrombie made the unofficial school uniform a decade ago has played out.”

Marc Jacobs to Stream Show Live While Robert Duffy Hypes It via Twitter (NY Magazine)
“Further democratizing the Fashion Week process, Jacobs’s business partner Robert Duffy just started tweeting to document Marc’s progress on the collection.”

Luxury in 2010 (CNN)
“Is there a luxury hotlist for 2010? CNN’s Ayesha Durgahee reports.”

Private Sale

Designer Bargains, for the Invited (WSJ)
“Online retail startups that specialize in “private sales” of discount designer apparel are gaining traction in the U.S. and, armed with fresh venture capital, plan to branch into new businesses.”

Couture houses refuse to tumble (Toronto Star)
“You can never be too rich, too thin or own too many couture items. High-end buyers continue to pop in to Paris for the shows.”

Neiman Marcus, Inc. Reports June Revenues (WSJ)
“In the five-week June period, comparable revenues in the Specialty Retail Stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, decreased 23.0 percent. The Company experienced weakness across all geographies and merchandise categories in the Specialty Retail Stores segment.”

Gap, Abercrombie June Sales Trail Analysts’ Estimates (Bloomberg)
“Gap Inc. and Abercrombie & Fitch Co. reported June sales declines that were steeper than analysts estimated as a rise in U.S. unemployment and a drop in consumer confidence kept shoppers away from the malls.”

American Apparel June same-store sales drop 13 pct (MSN Money)
“Many merchants in June struggled to drum up sales amid continuing worries about the overall economy and jobs, but clothing retailers have been particularly hard hit as consumers cut back on discretionary spending.”

Abercrombie & Fitch ad campaign, courtesy of Abercrombie & Fitch

Abercrombie & Fitch shares drop sharply (AP)
“Shares of Abercrombie & Fitch Co. tumbled Thursday after the teen retailer posted a bigger-then-expected drop in same-store sales for May. Its stock shed $3.56, or 11.3 percent, to $28.12 in midday trading.”

Across Low and High Ends, Retail Sales Fell in May (New York Times)
“While there have been early signs of stabilization, including improving consumer confidence, concerns over unemployment and the troubled housing market have led many Americans to adopt thriftier behavior, spending on food and other everyday essentials and not much else.”

Offers for Safilo due on Friday – sources (Reuters)
One or more private equity funds will present offers for Italian eyewear maker Safilo SpA on Friday, two sources close to the matter said.

Chief Executive of Versace Is Expected to Resign Friday (New York Times)
“Giancarlo di Risio, chief executive of Gianni Versace since 2004, is expected to resign at a board meeting on Friday in Milan.”

Nina Ricci Pre fall 2009, courtesy of WWD

Nina Ricci: Theysken’s Beat Goes On (WWD)
Olivier Theyskens will be staying put at Nina Ricci with an “expanded accessories line, particularly handbags.”

Retail Stocks: Sizing Up 2009 (Seeking Alpha)
Seeking Alpha lists the reasons why 2009 will be an ugly year for many brands.

Retail’s winners and losers (Just-Style)
Wal-Mart was a retail winner in 2008, but Gap and Abercrombie & Fitch were amongst the big losers.

Wal-Mart CEO Sees New Consumer Mind-set (WWD)
“The economy will turn around some day — but don’t expect conspicuous consumption to make a comeback.”