The Fashion Twitterati | Source: DKNY and Oscar de la Renta

NEW YORK, United States — To tweet, or not to tweet. That has been the question on many fashion business minds over the past year. Not every brand needs a Twitter account, but if a brand does decide to stake out a presence on Twitter, they should do so with a clear plan in mind and a voice that is consistent with the brand, while also opening up a new point of view. Most of all, Twitter should be a tool for engagement with a brand’s fans and followers.

That is all easier said than done. Some brands on Twitter don’t follow anybody else and only broadcast information out, which is the schoolyard equivalent of talking all the time, while shutting your eyes and ears and not listening to anybody else. You don’t make many friends that way. Then there are the brands that set up a Twitter account, and then fail to keep it active, which is kind of like inviting a brand’s fans to a big event, and then not showing up to greet them. It 0nly serves to disappoint fans and followers. Still other brands require tweets to be ‘approved’ by legal and PR departments, which takes away from the spontaneous, real time nature of Twitter.

Thankfully, there are a few fashion businesses that are doing it right. They have found ways of communicating about their brand that have caught the attention of tens of thousands of followers, and more importantly, have made those followers feel like part of the brand’s online community.

BoF sought out three of the most prolific and successful fashion twitterers, and for the very first time, spoke to the people behind fashion’s greatest tweets to learn from their success.

DONNA KARAN and DKNY

@DKNY — A true innovator, the reigning queen of the fashion Twitterati, DKNY PR girl has built a huge following amongst fashion fans for her honest opinions and behind-the-scenes peeks into the PR department of one of New York’s most celebrated fashion brands.

Name: Undisclosed
Age: A gentleman should never ask a lady her age
Number of months with DKNY: Too many to count
Number of months tweeting: 21
Followers: 240,000+

How did you get selected to be the voice of DKNY on Twitter?

When we decided to start on Twitter we wanted it to be very transparent. This was not someone speaking as the “voice” of the brand. This was not someone speaking as Donna Karan. @dkny is very uniquely my view as a PR person at Donna Karan International. As part of our decision to pursue this, I showed my colleagues several examples of what I would tweet – ranging from highlighting some of our best new products to giving some insight into our lives here “behind the scenes” — and they liked it. They were a great initial focus group, but I feel so gratified that we have received so much support from our followers. It is great to be able to engage with people who love our brands.

What was your strategy for building up a loyal following?

I am a social person by nature. What I have tried to do is combine all that is Donna Karan and DKNY with some fun, quick commentary my followers can relate to. I don’t think setting out to secure a following works – it’s an organic evolution.

How would you describe your voice?

Unedited, honest, lightly (sometimes heavily) sarcastic, friendly and engaging.

What is the best success story you can share of a business benefit that has come as a result of your Twitter presence?

I am very fortunate to have amazing, interactive and loyal followers. So many of them do my job for me. I lovingly call them #DKNYPRGirl’sTeam (we’re making T-shirts). They will search out product links from donnakaran.com or dkny.com or press on the brands and tweet about them even before I do.

Who are your 5 favourite fellow Twitterers to follow?

There are too many to count. I actually follow more than 400 fellow Twitterers. If you visit my profile, you will see a lot of the people I follow love the same things I do… there are a lot of fashionistas out there.

What makes a ‘good’ Twitter account — what are your parameters for success?

I don’t think Twitter success is weighed only in number of followers. I think it can also be judged by how often you are recommended to be followed.

Why did DKNY decide that Twitter was a communication tool that made sense for the brand/business?

As a brand, you need to reach people where they are and interact with them in the ways they interact with each other. The fact that over 240,000 people follow me shows that our customers are indeed on Twitter themselves.

Was it difficult to get buy-in from senior management to go down this route?

No. From day one, our management was excited about it, as they recognized that Twitter was another way that we could engage with our customers. They also showed a lot of foresight, because they knew it would only work if I could be real, unedited and write what I know… and a lot of what I know is the world of Donna Karan.

Our management has been very forward thinking about the power of digital and social media overall. Besides being active on Twitter, we were one of the first brands to have iPhone apps (we have two actually, one devoted entirely to the DKNY Cozy and one for Donna Karan New York. We stream our fashion shows on Facebook, we’ve created a number of videos featuring stars such as Christina Ricci on our website. Just a month ago we launched donnakaran.com as ecommerce and relaunched dkny.com, to offer full brand experiences. On this joint site, content meets social media and commerce in unique ways. There is enormous excitement about it across our Company. That is why it is great to work here – the creativity, the innovation and the recognition that the success of our brands lies in the people that love them.

………………………………………………………………………………………………………………………………

BERGDORF GOODMAN

@Bergdorfs — A Twitter voice for one of the world’s most venerated department stores from one of its youngest staffers, Bergdorf Goodman’s Twitter feed has made the sometimes stuffy Fifth Avenue staple more open and welcoming, especially to a younger, more digitally connected consumer.

Name: Cannon, Social Media Manager
Age: 20s
Number of months with Bergdorf Goodman: 60 – or 5 years
Number of months tweeting: 11
Followers: 33,000+

How did you get selected to be the voice of Bergdorf Goodman on Twitter?

My job is to share the Bergdorf Buzz. It all started when I worked in our Special Events department and helped maintain our Facebook page. We understood the importance of social platforms and what was being said there; so, when the company decided to dedicate someone full time to those efforts, I became our Social Media Manager. I started tweeting in January – it really is the best part.

What was your strategy for building up a loyal following?

I’m their friend…I’m always there to listen and help – and to give an insider’s perspective (whether it’s interviewing Victoria Beckham, going behind the scenes with our Visual team, attending Fashion Week…or getting happily distracted by something new and fabulous in our Shoe Salon).

How would you describe your voice?

Enthusiastic. Sincere. Honest. Fun.

What is the best success story you can share of a business benefit that has come as a result of your Twitter presence?

Twitter has made us aware of an entirely different audience. They’re enthusiastic but honest… and they love to communicate with us. Impeccable customer service has always been our priority – and having the opportunity to listen to and assist clients from Twitter has proven incredibly useful in making that happen.

Twitter also has enabled me to bring the Bergdorf Goodman experience to life… in a very new way. There’s only one Bergdorf Goodman in the world, so I am their direct line of communication. Our Fifth Avenue New York address means that we always have so much going on, whether it’s designers visiting, new collections arriving or exciting new exclusive merchandise; and Twitter is an excellent way to instantly share all of this news from an insider’s perspective. Think of it this way: Even if you’ve never visited Bergdorf Goodman in person but follow Bergdorfs on Twitter, you’ll know that we had a Holiday Windows Challenge with Polyvore, carry four different styles of Texting Gloves and were very excited to introduce Roger Vivier’s Miss Viv handbag collection with Inès de la Fressange.

Who are your 5 favourite fellow Twitterers to follow?

It changes weekly – but those who currently make me click might include @stefanogabbana (& his uninhibited use of exclamation points), @Peter_Som, @evachen212, @ManRepeller and @askmrmickey.

………………………………………………………………………………………………………………………………

OSCAR DE LA RENTA

@Oscar PR Girl – The magic of Oscar de la Renta comes alive via the tweets from its Director of Communications, who not only provides insights into the workings of this brand, but even dresses up in Oscar’s clothes to preview them for her thousands of followers.

Name: Erika Bearman, Director of Communications
Age: 29
Number of months with Oscar de la Renta: 27
Number of months tweeting: 18
Followers: 27,000+

How did you become the voice of ODLR on Twitter?

The specific idea for OscarPRGirl came from Alex Bolen, our CEO. The premise was simple: I would write about my experience of working in PR for Oscar de la Renta, the aspects of our brand that I thought others might find interesting, and my fashion-centric life in New York City.

What was your strategy for building up a loyal following?

I got started on Twitter by thinking: how can I bring our followers inside of the work that we do, and make them a part it? How can I tell the story of Oscar de la Renta? Then I just started talking. I was, and am still, hoping to tell a group of people a little more about a designer and a brand that they might know, or perhaps already admire. I think it’s interesting to share the details that make me feel connected to my work, like hearing Oscar whistling from his studio, or the tracklist from a recent show. In the process, I have tried to be a compelling storyteller- someone you want to listen to.

How would you describe your voice?

A little bit bold, kind of glamorous, and ultimately lighthearted. Oscar always asks that all elements of our brand, from the clothes to our advertising, convey a sense of joy- I hope that our Twitter has a dose of that same spirit.

What is the best success story you can share of a business benefit that has come as a result of your Twitter presence?

Recently one of my followers was trying on our wedding gowns at Bergdorf Goodman, tweeting me pictures from the dressing room and asking my opinion. We both loved the same one: a guipure lace and ostrich feather embroidered gown. She purchased it. I thought it was interesting because it was an impact at the store level vs. e-commerce. Essentially, I was in the dressing room with her.

Who are your 5 favorite fellow Twitterers to follow?

@mashable and @techcrunch because a girl has to stay on top of these things, @johnjannuzzi because he is smart and angsty, @bergdorfs because I think she is great at it, and @therealdaphne because we both live in a world without flats.

Imran Amed is Founder and Editor of The Business of Fashion

Olivier Zahm Self-Portrait | Source: purple DIARY

For Fashion’s Bad Boy, No Secrets (NY Times)
“[With Purple] and often salacious photographic blog, purple-diary.com, Mr. Zahm, a former art critic, has become a demi-celebrity in the fashion world. He likens himself to Andy Warhol, who managed a similar feat with Interview.”

Discount luxury e-tailer BrandAlley to launch a crowdsourced platform (Independent)
“Discount luxury e-tailer BrandAlley is launching a new virtual platform… Taking a cue from the rising trend of crowdsourcing, Le Lab will allow BrandAlley Web users to vote on and decide which designs make it into production.”

Master of the Brand: Bernard Arnault (Forbes)
“Though LVMH quickly denied it would try to take control of the 173-year-old Hermès, the stage is clearly set. It may be a long drama: Three-quarters of the company is still in the hands of 200 Hermès family members. Winning them over could take decades.”

Adidas raises earnings guidance for 2011 (FT)
“Adidas, Europe’s biggest sports goods maker, gave its first indications of how economic recovery will extend into next year, saying it expects earnings growth of up to 15 percent in 2011 after raising its guidance on 2010 earnings for the third time.”

Window Dressing Warriors (NY Times)
“David Hoey [and] Linda Fargo, have dressed windows for 14 years… During that period, they have earned Bergdorf a reputation for decadent, intellectual art pieces that tickle both street crowds and museum snobs alike.”

Primark Fall 2010 Lookbook | Source: Hey Crazy

Primark is the best summer seller (Independent)
“Love it or loathe it, you can’t avoid it – at least not anymore. As we report… Primark became Britain’s biggest clothes retailer by sales volumes over the summer. That is a position that has traditionally been occupied by Marks and Spencer.”

How Bergdorf Goodman understands the new luxury purchase funnel (Luxury Daily)
“Upscale department store Bergdorf Goodman has adjusted to consumer fragmentation across communication channels by tightly integrating its print, direct mail, online and mobile strategies to push its fall 2010 collections.”

Neiman Marcus gives fashion bargain hunters a final shot (Internet Retailer)
“Known as Last Call, the brand, which Neiman Marcus launched online and with a retail… features [goods] that were previously sold in Neiman Marcus and Bergdorf Goodman stores, at discounts of 30% to 65%.”

Coach’s Profit Increases 34%, Beating Analysts’ Estimates (Bloomberg)
“Chief Executive Officer Lew Frankfort cited ‘Resiliency’ in handbags and accessories in North America for the gains… The company also cut average prices to spur spending.”

Britain’s prisoners sew their way to a better future (Independent)
“The thought of finding hardened criminals bent industriously over their embroidery, counting stitches and arguing over patchwork might seem far-fetched, but… this unlikely scenario is not only a reality, but a highlight of their daily prison life.”

Michelle Obama in J.Crew, courtesy of Vogue (US)

Fashion Forward (Portfolio)
“Moving ahead in the current economy will require fashion companies to be as flexible and innovative as they’ve claimed to be all along.”

S&P cuts Barney’s credit rating, warns on liquidity (Reuters)
Standard & Poor’s on Monday cut its ratings on Barney’s New York Inc to a deeply distressed level and warned that vendors may tighten terms or limit shipments to the luxury retailer as its liquidity declines.

Bergdorf Expands the World of Bottega Veneta (WWD)
“While the Italian brand and its signature “intrecciato” weave cast an understated aura, there’s nothing subtle about the Bergdorf presentation. The Fifth Avenue store has created a ‘World of Bottega Veneta’ showcasing the brand’s burgeoning assortment.” (Subscription required)

Trovata, Forever 21 Case Set for Trial (WWD)
“After two years of legal wrangling, Trovata’s lawsuit alleging that cheap-chic retailer Forever 21 copied its designs is headed to trial next month, and the outcome could have implications for both vendors and retailers in this age of fast fashion.”

In economics, arbitrage is the practice of taking advantage of a price differential between two or more markets by buying something for a lower price in one market and selling it for a higher price in another market, preferably instantaneously, to avoid the risk that price gap will close.

With the plummeting US dollar, many European brands have decided to take a hit on margins instead of lifting prices to reflect the current exchange rate. They want to stay competitive with their American counterparts and don’t want to turn off American consumers with astronomical prices.  But the resulting lower US prices have led to an opportunity for some seriously lucrative fashion arbitrage. For example, a New York Times article published this week reveals that the Yves Saint Laurent Downtown bag costs $1495 at Bergdorf Goodman in New York, but costs £910, about $1796, at Harvey Nichols in London.

Savvy consumers can make money by buying bags and other fashion products in the US and then flogging them in Europe and Asia — at prices higher than in the US, but lower than the International price.

To plug the arbitrage opportunity created by lower US prices, brands like Prada and Gucci have  put in place policies which limit the number of designer handbags that a customer can buy. They are rightfully concerned that their products will end up in the so-called grey market of back-of-the-truck deals, eBay auctions, and suitcase import techniques –  definitely not the ideal environments for upholding luxury images.

However, the purchase limit solution may only work in the short-term and could in turn lead to other kinds of damage to the brands.

First, as consumers and professional networks of fashion arbitrageurs get more creative about how they exploit the price gap, the leak of product into the grey market will be increasingly difficult to control.

Second, consumers everywhere are getting more savvy and value-conscious, even in the luxury market. They travel more. They compare prices on Internet sites. And they wonder, why should the exact same product be 20-40% more expensive in Europe than in the US?  Some consumers may feel insulted when they discover the discrepancies, and be turned-off from the brand for good. Others may choose to restrict their purchases to the US, where they get the lower prices. Neither of these reactions is ideal for the brands for whom international markets are the fastest growing portions of their business.

And third, the recent devaluation of the US dollar does not look to be going away any time soon. How long can prices in the US  be kept artificially low without affecting margins? The US tends to represent between 10-20% of luxury brands’ revenues and over time, the impact of lower margins in the US will show up on the bottom line.