Phoebe Philo by Solve Sundsbo | Source: NY Times

Phoebe Philo’s Third Act (T Magazine)
“A designer’s debut at a new label is always exciting, especially if it is backed by a luxury colossus, as Céline is by LVMH. But this particular designer is the fashion superstar who made Chloé one of the hottest labels of the early 2000s.”

Bottega Veneta Grows Up (WSJ)
“As Bottega pursues its strategy to grow from a niche player into a global brand, it has been conducting a major overhaul to its business, starting from the production line. As part of that, it now decides well before its catwalks what—and how much—to manufacture and send to stores.”

Liberty considers freehold sale of iconic flagship store (Retail Week)
“Liberty has confirmed that investors are circling the luxury department store’s iconic Tudor-style building to lease it back to the company.”

Vogue App Turns Ads Into Shopping Links (WSJ)
“Vogue readers with iPhones are getting another toy to play with this month. The magazine is launching an application that looks like a fun shopping and styling tool but is actually a savvy way to connect the magazine and its advertisers directly with readers’ wallets.”

Milan Goes in All Directions (NY Times)
“The problem is Ms. Prada doesn’t know what to do with these older forms other than offer them… By contrast, the clothes for Fendi looked modern and relaxed.”

Westfield Mall in White City | Source: Architecture Revived

How Westfield won us over (Independent)
“When the Australian property giant, the Westfield Group, opened its shining, £1.7bn retail cathedral in Shepherd’s Bush, West London, on 30 October 2008, its timing could not have been worse…One year later and the mood music from a number of the centre’s retailers appears more positive.”

Boutiques close as recession reshapes high street (The Times)
“Fashion retailers emerge among the recession’s leading casualties, with independent shops proving less able to weather the downturn than giants such as Next, Marks & Spencer and Debenhams.  Nearly 18 per cent of women’s wear and children’s wear shops closed, and 15 per cent of independent fashion shops.”

Land Securities ends cut price rent as property demand rises (Drapers)
“Retail landlord Land Securities will no longer offer retail tenants rent concessions amid signs of increasing demand for space, leading to claims that landlords are back in the driving seat at the negotiating table.”

Bottega Veneta Unveils Design Competition (WWD)
“Bottega Veneta has launched a furniture design competition for students at The University of Tokyo. Bottega Veneta creative director Tomas Maier was in town to review the 18 contenders’ initial sketches and outline the project to local journalist.”

American cult fashion shop Anthropologie opens in London (Guardian)
“London’s fashion credentials have been given a boost with the cult US store Anthropologie opening on Regent Street. Likened by the industry to the launch of Topshop in New York, the opening is the first for the brand in Europe.”

Bottega Veneta Invests in Cruise (WSJ)
In a difficult time for luxury retailers, Bottega Veneta is launching a glitzy marketing campaign.

Returns on the Rise–Retailers Are Rolling Out More Flexible Return Policies (WSJ)
According to the Wall Street Journal, “Retailers are expected to see the value of
merchandise returned in 2008 increase a whopping 23%.”

LVMH Stresses China Growth (WWD)
LVMH “issued a statement saying its business in China remained strong.”

Macy’s Posts $44M Loss in Q3 (DNR)
In its Q3 ending in the 4th quarter, Macy’s posted a $44M loss.

Bottega Veneta’s Cruise campaign, photo courtesy of Bottega Veneta.

News flashes have been coming in today from investment analysts covering PPR, which reported its 1Q08 results earlier today. The news is not good for the Gucci brand, but Bottega Veneta has managed to beat market expectations, even in this downbeat economic environment.

Gucci sales only increased by 2.4% to €513m, versus market expectations in the neighbourhood of 7% growth. As a result, some analysts are considering posting downgrades to their ratings on the PPR stock. Given it’s self-stated positioning as an ‘Aspirational luxury’ brand, it may not seem surprising that Gucci would be one of the first brands to show signs of the economic slowdown.

But that’s not the whole story.

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While London is often the spark of new ideas and New York is confidently commercial, the Milan shows usually sit somewhere in between. They may not be the pushing the limits of fashion in terms of new ideas, but they specialise in striking the right balance between commerce and creativity.

Many buyers and editors complained of an uncharacteristically inconsistent offering from Milan’s usually focused designers last week. But we think there was a lot to be impressed by in Milan, especially from the some of the heavyweight brands who show there.

Take Burberry, for example. Christopher Bailey is on a clear winning streak, softening his approach this season with the perfect autumnal mood for the urban birds who walked down his catwalk of  "optimistic melancholy." (Theurban birds term was cleverly coined by Tim Blanks; Bailey loved it. We think its perfect).

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There was quite a bit of interest our recent post  Discreet Luxury – A Segment to watch. Stealth wealth consumers want something special and discreet and therefore reject obvious logos, product ubiquity and sameness. Though the category is dominated by thousands of small, independent brands, Bottega Veneta is the one global brand that has been emblematic of how well this can work from a business standpoint.

This video supplements a Wall Street Journal article entitled Inside a Salon that Serves the Logo-Phobic and takes you inside Yuta Powell’s discrete luxury boutique in New York’s Plaza Athénée Hotel (I didn’t know New York had its own Plaza Athenee either!). The store stocks niche luxury brands like Boudicca, Azzaro and Kiton and each product must pass through Ms. Powell’s exacting standards for quality and craftsmanship, honed during a long career at Givenchy.

Ms. Powell says "This is slow fashion; fewer but better clothes."

The signature red sole of an $800 Christian Louboutin pump. The trademark intrecciato weave of a $4000 Bottega Veneta bag. The colourful inner lining of a $2500 Paul Smith suit. These are the markers of a movement being described by industry watchers as Discreet Luxury.

Tired of the logo-fixations of the 1990’s and early 2000’s, certain luxury customers, who don’t feel like shouting about their wealth to the world, are shunning logos for clothes and accessories that are unmarked — except for one usually understated detail that announces the item’s provenance and brand to those in the know.

Many of these consumers are in advanced luxury markets like Japan and Western Europe, and have exacting standards for quality, craftsmanship and authenticity. Therefore, also included in this growing segment are clothes about which stories can be told by the wearer — stories about why the garment is special, rare and authentic. This is apparently driving a boom in men’s luxury purchases in particular as it seems men like to tell stories to their buddies about the provenance of their threads.

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