Gucci Spring/Summer 2011 Campaign | Source: Fashion Fame

The reasons behind the major shake up at Gucci Group (CPP Luxury)
“International media as well as major luxury players have been taken by surprise this week by several major changes within PPR/Gucci Group and it seems this is just the beginning…. Francois Henri Pinault has radically changed management… responding fast to market conditions.”

Dropping Galliano lets Dior open new chapter (Reuters)
“Behind the scenes, Dior is telling industry watchers it is glad Galliano is gone, as it wanted to move away from his theatrical style and embrace a more subtle and refined elegance to better reflects post-economic crisis society. ‘This could be a driver for positive change, which is what Dior itself was looking for.’”

Balenciaga for Today (IHT)
“Mr. Ghesquière, who had gone punk and downtown last season, faced a difficult task. No longer the catwalk ingénue spicing up a house with a glorious past, he had to prove that he could move ahead within the spirit of the august founder. The designer’s process was via fabric, technique and cut.”

Hermès Annual Profit Jumps, Margins Exceed Forecast (Bloomberg)
“[Hermès] reported a surge in full-year earnings as improved confidence among wealthy customers boosted revenue. Operating profit jumped 44 percent to 668.2 million euros ($933 million)… Sales rose 25 percent to 2.4 billion euros and margins exceeded a forecast that Hermes raised last month.”

Thank goodness for Lady Gaga! (Telegraph)
Thank goodness for Lady Gaga! The bonkers blonde from New York has single-handedly rescued a week that on paper should be one of the high points of the entertainment calendar, but instead was fast becoming a car crash of disappointment… The party felt like a complete damp squib until the platinum blonde vision of Stefani Germanotta [arrived] making her catwalk debut at the Thierry Mugler show.”

François-Henri Pinault | Source: Coolspotters

PPR Chief to Run Gucci Himself (NY Times)
“The French luxury magnate François-Henri Pinault said… he would personally take charge of Gucci Group as he reorganizes its parent company to focus on the most profitable businesses. Robert Polet, who has headed Gucci since 2004, will be stepping down in a few weeks… Mr. Pinault also said Paul Deneve would replace Valérie Hermann as chief executive of Yves Saint Laurent.”

At Marc Jacobs, the Show Before the Show (NY Times)
“‘Sometimes, I don’t know how we got from there to here,’ Mr. Duffy said, referring to the early days of his 27-year partnership with Mr. Jacobs, when the two of them constructed sets themselves and went around ‘with a tin cup’ to friends. ‘Nobody has any idea what it takes to do all this,’ he added.”

Hermès Wants LVMH to Cut Stake to Free Up Shares in the Market (Bloomberg)
“Hermès wants LVMH to reduce its stake by more than half to free up shares on the open market… With the family controlling more than 70 percent of Hermès stock, ‘it’s not normal’ that LVMH Chief Executive Officer Bernard Arnault should hold 20.2 percent of the shares, Bertrand Puech said in an interview in Paris yesterday. ‘We want him to reduce his stake to less than 10 percent.’”

Cinderella Dreams, Shoestring Budget? No Problem (WSJ)
“If consumers can rent a movie by mail, or wheels on a whim, why not a couture gown should the occasion strike? That’s the concept behind Rent the Runway, a website launched in November 2009 that promises to give ‘every woman the opportunity to be Cinderella for the night’.”

Cast Your Vote for Calgary (NY Times)
“Imran Amed, the founder and editor of the popular Web site The Business of Fashion, has teamed with the renowned British leather craftsman Bill Amberg to create a new line of unisex totes designed with the globetrotting fashion follower in mind.”

Amancio Ortega | Source: Elmundo

End of the line for Zara tsar (Independent)
“Amancio Ortega, the wealthiest man in Spain and perhaps one of the world’s most reclusive moguls, has tiptoed into the spotlight this week by announcing his imminent retirement from the fast-fashion giant Inditex… which he founded with a single store in La Coruna 35 years ago.”

Who’s Buying All That Luxury? Not the Rich (WSJ)
“Luxury is soaring again… The reason for the boom, we’re told, is that the rich are on a spending binge again after the brief unpleasantness of the recession. That’s true to a point. But a new study finds that the wealthy no longer dominate luxury spending like they did before the recession.”

Fashion’s E-Commerce Push (Fashion United)
“French luxury goods group PPR’s E-Commerce Development Unit aims to develop synergies across brands, coordinate e-commerce initiatives and share digital expertise.’”

Fast Retailing Profit Slides 35% (Bloomberg)
“Fast Retailing Co., Asia’s largest clothing chain, reported a 35 percent decline in first-quarter profit after sales fell at its Uniqlo stores in Japan. Net income for the three months ended November dropped to 22.7 billion yen as revenue fell 4.7 percent.”

Lucky’s Brandon Holley: Dressing for a Revolution (NY Times)
“The challenge now… is figuring out how to rejuvenate Lucky without losing what makes it special: ‘I’m trying to figure out what’s baby and what’s bath water.’… Ms. Holley wants to transform Luckymag.com into a ‘social shopping experience,’ akin to eBay and etsy.com.”

Projects by the Textile Futures Research Group | Source- tfrg.org.uk

NEW YORK, United States — At the Met Ball held earlier this month in New York, singer and songwriter Katy Perry walked the red carpet in a gown made from silk chiffon and over 3000 glowing LEDs that changed colour from blue to pink to yellow to green. Created by London-based firm CuteCircuit, Perry’s gown assured her a lot of publicity. But the coming integration of fashion and technology is about more than making a visual statement.

What if a jacket could heat or cool according to the current weather, or a cocktail dress could help monitor and control your well being? Science fiction-sounding innovations like these are the potential output of the small, but growing field of “smart fashion” that’s being pioneered at university labs and start-ups across the world.

Smart fashion often begins at a level that’s imperceptible to the human eye. Advances in nanotechnology, which allow manufacturers to control materials on a molecular scale, have enabled researchers to develop smart textiles: fabrics that have embedded technology, but are able to maintain normal appearance and feel. For example, “carbon nanotube-coated yarn” is able to conduct electricity, while remaining pliable and soft, allowing clothing made from it to transmit information or power small electronic devices.

Indeed, at Cornell University’s 2010 Design League fashion show, Abbey Liebman showed a solar-powered dress with ultrathin flexible solar cells connected via conductive cotton yarn to a USB charger that allows the wearer to power a mobile phone or iPod. The cotton fibres used to make the dress were coated with a combination of semiconductor polymers and nanoparticles, but amazingly, the garment feels and moves exactly as if it were made of regular cotton.

Cornell University is also exploring cotton fabrics made of nanofibres that change colours, while a project called Communication Wear, funded by the UK-based Arts and Humanities Research Council, has resulted in Bluetooth-enabled garments that sync with a wearer’s mobile phone and emit “sensory messaging” based on his or her body movements.

But will smart fashion and textiles like these ever make their way to official fashion weeks and mainstream consumers? “We will definitely see these items on the catwalk,” said Sabine Seymour, CEO of Moondial, a company developing “fashionable wearable technology,” pointing to Hussein Chalayan’s collection for Spring Summer 2007 which included dresses that were able to transform in shape and style, driven by a sophisticated computer system.

Indeed, in recent years there has been growing cooperation between the worlds of fashion and technology. Back in 2007, Zegna launched a solar-powered jacket, available at mainstream retailers like Saks Fifth Avenue, that warms the wearer and generates enough energy to power a mobile phone or an iPod.

The technology behind Heattech 1 | Source: Uniqlo

The technology behind Heattech 2 | Source: Uniqlo

We’ve also seen innovation at the lower end of the market. Also in 2007, Uniqlo launched Heattech, a line of technologically sophisticated long underwear developed in strategic partnership with Toray Industries, a materials company in Japan. Woven from hollow fibre thread, the Heattech garments are engineered to actually generate warmth as they absorb moisture and trap pockets of warm air, insulating your body much like a heavy wool, but without the bulk. Milk proteins, containing natural amino acids, were also added to the fibres to create softness. Last winter, Uniqlo’s Heatteach was the best selling line for the wildly successful retailer, with an estimated 50 million items of Heattech thermal wear sold in the run-up to Christmas

One of the world’s largest luxury fashion groups is also exploring the future of smart fashion. In order to “facilitate technology convergence in textiles and improve the interface between science and design,” Gucci Group is currently amongst the companies supporting the Textile Futures Research Group at the University of Arts in London.

So will Gucci be the first major luxury group to launch a fashion line that leverages wearable technology and smart textiles? Stay tuned.

Research for this article was contributed by Hanne Melin.

Alexander McQueen Store on 14th Street in New York | Source: Stylesightings

LONDON, United Kingdom — One of the first fashion shows I ever attended was the Alexander McQueen show for Spring/Summer 2007, staged in the round at the Cirque D’Hiver in Paris. Jonathan Akeroyd, the affable CEO of McQueen, was kind enough to grant my cheeky request for an invitation, and he even let me bring along my college roommate, who was studying outside Paris at the time.

We were seated in the very last row way up in the rafters of the massive round theatre, but still we were mesmerised by McQueen’s collection and his spectacular presentation. Afterwards, we stepped out into the pouring rain late on a Friday night during Paris Fashion Week with a sense of awe and wonderment that lingered for the rest of the evening.

This, I think, is what made Mr. McQueen different. Unlike some of the other celebrated designers of our industry, Mr. McQueen’s message and vision was one that resonated far beyond fashion insiders. Over time, he seemed to find a way to connect with the masses, while still being extremely creative. He didn’t dumb things down or sacrifice his creativity, but he also did not fall into the trap of remaining too conceptual to have a wide-scale impact. Perhaps his clothes weren’t always wearable, but they still managed to connect with average consumers visually and viscerally.

Still, McQueen’s recent collections were often a commentary on contemporary subjects. When the economy crashed, he mocked the entire luxury industry and the collections of iconic houses like Dior and Chanel, and even his own. Last season’s prescient technological extravaganza was the seminal moment of a fashion week season when the industry finally began to take digital media seriously. Mr McQueen combined digital media with his natural flair for showmanship and a little bit of that phenom known as Lady Gaga.

Lee McQueen was also one of the very first designers to take to Twitter and share his thoughts directly with his fans. Twitter is also where McQueen expressed his final messages to the world, following the death of his mother Joyce earlier this month.  For now, the @McQueenworld page has been removed from Twitter, but it is still available in Google cache.

But the question on my mind is whether Alexander McQueen the label can continue without Alexander McQueen the man. Once the shock has worn off and the fashion industry has given McQueen a fitting send off, Gucci Group will have to grapple with the fact that the eponymous designer is no longer here. It is one thing to switch around designers at houses with a long history and well-defined codes. But, even with the designer’s prolific output, Alexander McQueen is still a young brand. How Gucci Group deals with the issue of succession and continuing this business is perhaps one of the biggest challenges yet to face Robert Polet.

In the meantime, the rest of us will hold on to our McQueen memories, which fashion folk were exchanging yesterday in between shows — a fitting tribute to the man whose name was on everyone lips and in everyone’s thoughts, even with the New York Fashion Week circus going on.

Just before Christmas I walked into an elevator at London’s Shoreditch House and was briefly introduced to a robust and positive Lee McQueen on the way up to the 6th floor. He was in good spirits, and commented that he liked my friend’s drop crotch trousers. And then, in an instant, he was gone.

Imran Amed is Founder and Editor of The Business of Fashion

Barneys New York Spring/Summer 2010 | Source: Barneys

Burkle Angles for Controlling Stake in Barneys (WSJ)
“Billionaire Ronald Burkle is angling to take a controlling stake in Barneys New York, people familiar with the situation said, a bet that the company and battered luxury retail sector have seen the worst of the recession.”

Bloomingdale’s opens in Dubai (The National)
“From today, people in Dubai will be able to indulge in the magic of Bloomingdale’s as the American department store ventures outside the US for the first time in its 138-year history.”

Versace’s New Look (WSJ)
“At the House of Versace, Donatella is back in the saddle again. She now signs off on every leather bag, dinner plate and evening gown… With the House of Versace facing the toughest times since it flirted with bankruptcy in 2004, the family must now steer the company through the current crisis in luxury goods.”

Fluff flies as fashion writers pick a cat fight with bloggers (Independent)
“Enthusiasm has waned for bloggers such as Tavi Gevinson, the 13-year-old wunderkind who waltzed into the front row of the biggest catwalk shows, as former fans complain bloggers have been ‘bought off’ by the industry.”

Davos 2010: Gucci boss on the rise of the shrewd customer (BBC)
“Robert Polet, boss of Gucci group has said he has seen a shift in the way customers are approaching the purchase of luxury good… ‘People want to know does the promise you give as a brand really stands up’.”

Defiant Armani rules out sale of empire (Financial Times)
“Giorgio Armani, the doyen of Italian fashion designers, has ruled out a sale of his global empire and has no plans to step back from day-to-day involvement. Mr Armani sought to quash speculation that he may sell the house to a bigger group, saying he had no need or desire to sell and would always have the final say in decisions.”

Thinker, tailor, technophile (Financial Times)
“The potential of customers interacting with a brand online goes way beyond looking at an ad page in Vogue or Vanity Fair,” says Robert Polet, CEO of Gucci Group. “The Gucci app had 340,000 downloads at the end of October, just a few weeks after it launched. That makes those people part of the Gucci world.”

Fashion house Cavalli to boost accessories, expand (Reuters)
“Fashion house Roberto Cavalli is looking to boost its accessories segment and expand in South America and Asia Pacific this year, its chief executive said, adding there were signs of improvement in the luxury market.”

Fashion Designers Respond To Haiti: Find Out Who Did What (Huffington Post)
“The fashion industry has joined forces to aid the victims of this natural disaster, in the form of monetary donations and contributing portions of sales.”

Saks Fifth Avenue Christmas Lights | Source: Philips

Luxury’s turnaround? Maybe not quite just yet (Market Watch)
“It may be too early to call a turnaround in the luxury-retail sector. Despite expectations that high-end shoppers are gradually coming back to stores and with retailers such as Macy’s and Saks indicating some improvement, the latest data suggest that the battered sector may need to do more to prove this pickup in momentum can be sustained.”

From catwalk to laptop, fashion houses embrace web (Reuters)
“Increasingly fashion brands are shifting their communication budgets to the Web, and have a greater understanding of its potential and in particular they now are all requesting an online store.”

Indian Government allows Gucci to pick up 51 percent stake (Business Line)
“Italian designer goods maker Gucci can now go ahead with its plans to enter the Indian retail market through single brand stores with the Government allowing it to pick up a majority stake in its Indian franchisee Luxury Goods Retail Pvt Ltd.”

Liberty of London to team up with Target (Drapers)
“Liberty of London, the brand famed for its prints and owned by department store Liberty, has confirmed it has signed a deal with US value chain Target to create a range of clothing and accessories for the store.”

What a Lens Can’t Capture (NY Times)
“A gesture can speak volumes, something few people grasp as viscerally as does Blue Logan, a London-bred fashion illustrator… Mr. Logan, 29, is but one in a clutch of young artists to have snared the attention of the style world and, in the process, revitalized an art form that has long been eclipsed by photography.”

Heir to Gucci Empire Reveals Plan to Double Bet on Fashion (Wall Street Journal)
“A 12-person team within PPR has drawn up two lists. The first enumerates a new set of 20 possible industry buyers for the three retail businesses up for grabs, Mr. Pinault said during the interview. The second list targets a dozen potential luxury and lifestyle brands PPR would be interested in buying.”

Tailoring the Image to Fit the Clothes (NY Times)
“It is Patrick Li’s peculiar job, as an art director and graphic designer for some of the hottest new clothing designers in the business, to articulate their vision in the single nanosecond it takes to look at the name on the label of a dress or a T-shirt.”

Luxury brands avoid price cuts at all costs (Toronto Sun)
“Tiffany, like all retailers, has struggled during the global economic downturn as consumers tightened their purse strings. As a result, North American big box, discount and grocery stores have resorted to drastic prices cuts to lure shoppers. Metro and Loblaws, Sears and Walmart Canada have all gone head-to-head in price wars. Luxury brands however, have done quite the opposite. Instead, exclusive shops have opted to shrink inventory levels to avoid offering steep discounts.”

Steve J & Yoni P Makes Waves in London (Korea Times)
“Rising designers Steve Jung and Yoni Pai are making a name for themselves on the British fashion scene with their chic, impeccable designs with quirky details.”

Balenciaga, Gucci Group | Source: Balenciaga

PPR Sales Miss Estimates as Gucci Touches ‘Low Point’ (Bloomberg)
“PPR SA, owner of the Gucci brand, reported sales that missed analysts’ estimates after demand weakened across the French company’s markets, from luxury to furniture and African goods distribution.”

Coach fiscal 1Q profit falls slightly; sales rise (AP)
“Luxury handbag maker Coach Inc. said Tuesday its new lower-priced handbag lines such as its colorful Poppy bags are boosting growth in an environment where consumers will spend less on nonessentials for the long term.”

Online spending growth at all time low (Drapers)
“Online spending growth dropped to a record low in September as etailers were hit by heavy high street discounting and localised postal stikes.”

Luxury retail lands in Singapore (Inside Retailing)
“A colossal integrated resort development under construction in Singapore will add a whole new retail dimension to the city state already renowned for its retail offer.”

‘Schmatta: Rags to Riches to Rags’ (LA Times)
“In the last 40 years, the percentage of American clothing made in America has plummeted from 95 to 5. Five percent! How did this happen?”