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.”

Modcloth screenshot | Source: Modcloth

In Part I, we examined the innovations and infrastructural advances that have improved the historically poor economics of e-commerce and set the stage for a renaissance in online retail. Today, we explore some of new and exciting business models taking shape, the companies exploiting them and the challenges they face.

SAN FRANCISCO, United States — For years, e-commerce suffered from capital inefficiencies and complexities that pushed investors away. But in recent years, major infrastructural advances and the success of innovative start-ups like Gilt Groupe have rekindled investor interest and set the stage for an explosion of promising new business models including personal subscription, social merchandising, mass customisation and collaborative consumption.

… Continue Reading

Dior Couture by Patrick Demarchelier | Source: Fashion Diary

How long can Dior thrive without a couturier? (France 24)
“Ten months after John Galliano was sacked over a racist outburst, Dior has yet to name a new chief designer — but sales are booming. Which begs the question: how long can the French fashion house thrive without a couturier at the helm?”

Rio 2012: what can the fashion industry do to become more sustainable? (Guardian)
“This new ‘fast fashion’ model has considerably changed the role of fashion retailers in their supply-chains, specifically how and where they buy… Cheap fashion uses cheap fibres, such as polyester and cotton. While polyester is an oil-based commodity, cotton on the other hand is not exactly the ‘good’ crop it is usually perceived as.”

Asian shoppers and tourists boost Burberry (Reuters)
“British luxury brand Burberry posted a 22 percent rise in third-quarter revenue as wealthy shoppers and tourists, particularly in Asia, showed their resilience to shaky economies in Europe and the United States.”

In the ‘Twilight’ Zone (IHT)
“Alexander McQueen is introducing a made-to-order line with Huntsman of London’s Savile Row. And that news, along with the upscale clothes displayed in the brand’s Milan showroom, confirm that the tilt in men’s wear is toward the formal and the evening.”

Milan’s Rising Star: A Conversation With Umit Benan (On the Runway)
“His clothing collections, under the label Umit Benan, have made Umit Benan Sahin a rising star in Milan, where he moved after working briefly in New York. In 2009, he won a prize for new talent sponsored by a trade show in Florence that raised his profile, and last June, he was hired by Trussardi to design its men’s and women’s collections.”

Savigny Luxury Index November 2011 | Source: Savigny Partners

LONDON, United Kingdom — As the luxury and fashion sector enters the critical holiday shopping period on the back of strong results for the first half of the year, there are growing signs that executives are worried about what the future holds for the luxury market in 2012.

Big news

• This has been another month of record results for the luxury sector, with Hermès, Richemont, Ferragamo, Burberry, Tiffany, Prada and Ports all posting outstanding numbers for their first half or third quarter period.  Buoyant growth in Asia continued to lift sales; Richemont in particular shone with revenues in the region soaring by 60 percent in its first half report.  Growth was also present in mature markets, notably in the USA where Burberry’s first half sales and Tiffany’s third quarter revenues rose by 25 percent and 17 percent respectively.  This was confirmed by recent news of a very strong Thanksgiving weekend, with US retail sales estimated at a record $52.4 billion.

• Yet worries are growing over 2012.  The global markets rebound which took place towards the end of November following news of concerted action to solve the eurozone debt crisis did not happen for the luxury sector, with our Savigny Luxury Index resuming its downward slide.  Some market participants have issued thinly veiled warnings over next year, notably Richemont and Tiffany (see below).  Retailers are keeping inventories low into the end-of-year season; we have heard reports of some of them asking leading fashion brands not to deliver too early, a shocking role-reversal mode.  Industry CEOs are hoping for the best but quietly making contingency plans.  Overall, the SLI has lost 4.9 percent over the month of November, compared to an increase of 1.8 percent in the MSCI general index.

• The long-rumoured acquisition of Italian tailor Brioni by PPR finally crystallised, evidencing the importance of the menswear segment for the sector’s growth expectations, especially in China.

… Continue Reading

Savigny Luxury Index October 2011 | Source: Savigny Partners

LONDON, United Kingdom — The market roller coaster continues, but the luxury sector has once again outperformed the general market. While questions remain about the ability for China to sustain the growth of luxury brands, investors seem to be on side again, at least for now. Analysts remain divided about the future of the luxury sector in 2012, amid much macroeconomic uncertainty.

Big news

• Renewed confidence in the sector prompted the SLI to recover the ground it lost from the mass sell-off in September.  The SLI posted an impressive increase of 21.9 percent over the month of October, versus an increase of 7 percent in the MSCI.

• Positive newsflow has boosted the sector, with LVMH, Burberry, PPR and Coach’s quarterly results beating market expectations.  Swatch announced that September was a record month for the group and that 2011 promised to be its best year ever.

• Investor concerns over a slowdown in China were addressed as all major sector players confirmed the Chinese market’s resilience.

… Continue Reading