WHY Wally Hermès Yacht | Source: Twistedsifter.com

What’s Next: Luxury Products (WSJ)
“Pierre-Alexis Dumas embraces innovation. But as the sixth-generation member of his family to lead, in his case, the creative end of the French luxury house Hermès, he must uphold tradition, as well.”

John Lewis Adds to Evidence Of February Sales Bounce (NY Times)
“Bellwether retailer John Lewis posted another double-digit percentage rise in weekly sales as wet weather drove customers to its stores, adding to evidence consumer spending bounced back in February.”

Balmain produces this year’s template for the high street (Independent)
“High-street bosses will be on the look out for inspiration for their autumn/winter 2010 designs, and the Balmain show will have been the focus for much of their attention. The French label… has been heavily copied by mass-market brands over the last year.”

Creating the World of Tomorrow? (IHT)
“A definitive exhibition of the work of Yves Saint Laurent, whose masculine/feminine vision dominated the wardrobe of the 20th-century woman, and a book celebrating 60 years of Pierre Cardin, fashion’s eternal futurist, gives pause for thought.”

Gianni Versace, a life lived as a 90s fashion icon (Reuters)
“‘House of Versace: The Untold Story of Genius, Murder, and Survival,’ by Deborah Ball tells the story of how Gianni, with his flamboyant sister Donatella as muse, not only became the cutting edge of 90s fashion but symbolized the era.”

Penelope Cruz Bafta 2009 Red Carpet | Source: Bafta

London fashion week meets the Baftas (Guardian)
“It’s a brilliant idea to combine the drama of the Baftas with the catwalk glamour of London fashion week. It’s just amazing no one thought of it before.”

Stores Reach Into Bag of Tactics As Luxury-Goods Sales Improve (WSJ)
“Optimism is creeping back into style, following three seasons of budget slashing, according to luxury-retail executives who will attend New York Fashion Week… Even so, there’s a focus on luring back ‘aspirational shoppers.’”

Hermès CEO sees higher taxes hitting luxury (Reuters)
“Governments worldwide will have little choice but to raise taxes on the rich to address ballooning deficits, a development that would harm luxury spending in the coming years, French luxury chain Hermès International chief executive, Patrick Thomas, said.”

Marc Jacobs Sues Christian Audigier (NY Magazine)
“Marc Jacobs is suing Christian Audigier for trade-dress and trademark infringement over a handbag that’s suspiciously similar to one he designed… Audigier’s bag is ‘confusingly similar’ to Jacobs’s, according to the suit.”

The Indian shopper’s chaos theory (Live Mint)
“Taking the Indian shopper out of chaos is like taking a fish out of water. We feel at home in the hustle bustle of local markets and start having withdrawal symptoms in a structured sterile atmosphere.”

Robert Rodriguez Spring/Summer 2010 | Source: Robert Rodriguez

Jones Apparel Acquires L.A. Designer Label (Apparel News)
“Jones Apparel Group Inc., the… corporation that has been on the hunt for brands, acquired Los Angeles womenswear contemporary label Robert Rodriguez for $28 million. Jones Apparel is hoping to expand the Robert Rodriguez name in other categories and other doors.”

US retail groups continue to recover (FT)
“Spending by US shoppers continued to bounce back from last year’s post-crash lows, with retailers ranging from luxury department stores to teen fashion boutiques yesterday reporting stronger sales in January.”

LVMH struggles to prise open purses of wealthy (Times Online)
“The luxury brands group, which markets Christian Dior perfume and Tag Heuer watches as well as Louis Vuitton luggage, failed to raise its game over the Christmas period. Sales in the final quarter of 2009 were flat or declining in every sector at LVMH.”

Hermès ups its 2009 profit forecast as sales excel (Reuters)
“French luxury group Hermès on Friday raised its own profit expectations for 2009 after posting forecast-beating full-year sales on the back of strong Christmas trading.”

Which Stars Sell Fashion? (WSJ)
“With the Academy Award nominations out this week, fashion designers are already jockeying to dress the stars for their big night. But rather than trying to pick the Oscar winners or the most fashionable celebrities, designers should be asking another question: Who will be the most effective at getting viewers to buy the clothes they see on the red carpet?”

Coach Spring Summer 2010 Poppy Collection | Source: Coach

Not quite a luxury resurgence (Marketwatch)
“The U.S. economy may be slowly coming out of recession, but it appears we’re still pretty conservative when it comes to buying.”

What Hermès’ New Chinese Brand Means for the Luxury Industry (Fashionista)
“Three days before Christmas, the savvy folks over at godly luxury company Hermès quietly announced that they would launch a new brand in China called Shang Xia. The label will incorporate Chinese raw materials and local craftsmanship tailored to the specific desires of the Chinese luxury consumer.”

At Milan’s Fall Shows, the Clothes Go Marching On (NY Times)
“The trench coats, Eisenhower jackets and jumpsuits produced to outfit soldiers in different wars and divergent eras are still with us — or they were throughout the last four days, when designers showing men’s wear for fall seemed to have war on their subconscious minds.”

Fashion Week Underlines Berlin’s Rising Status (ABC)
“Young designers showed off edgy new clothing on Wednesday as Berlin’s fashion week opened, an event that underlines the German capital’s hopes of establishing itself as a fashion power… Event organizers say Berlin — which has grown consistently since its start in 2007 — is now the fifth-largest.”

Britain’s best fashion bloggers (Telegraph)
“The newest power players in the fashion industry aren’t designers or models, they’re bloggers. Jessica Salter meets Britain’s pioneer online style-watchers.”

Pierre Mallevays of Savigny Partners | Source: Savigny Partners

Today, BoF brings you an exclusive interview with a key adviser to the private family trust which, as announced today, made an investment in Lanvin, one of the hottest fashion brands in the world.

PARIS, France — Over the past few years, under the creative stewardship of industry darling Alber Elbaz, Lanvin has risen to heights that most fashion brands can only dream of, with nearly unanimous positive reviews from buyers and editors and a seemingly insatiable appetite amongst luxury fashion customers for Lanvin’s clothes, accessories and jewelry.

There was only one problem. After having invested significant sums early on, Shaw-Lan Chu-Wang, who purchased Lanvin from L’Oreal in 2001, was not injecting any more cash to grow the business. This left Lanvin’s hyper industry buzz and brand potential underexploited.

Not anymore. Today, in a press release issued by Lanvin (and as reported in WWD), it was announced that Arpège, the brand’s parent company, has received a cash injection for a minority investment representing 12.5 percent of the equity. The investment was made with a “long-term” view, apparently an indication that the investor does not plan to flip the investment for a quick profit. This is a refreshing change from some of the disastrous investments we have seen in fashion brands in recent years.

I spoke with Pierre Mallevays who advised the private family trust on their investment in Lanvin to learn more about the dynamics of the deal and the fashion and luxury market in general. Pierre is a friend and colleague, and one of the leading investment experts in the luxury space, first having worked as Head of M&A for LVMH for over seven years, and now as Managing Partner of London-based Savigny Partners, a boutique M&A advisory firm.

… Continue Reading

Escada Store, Berlin | Source: Luxuo

Megha Mittal to buy luxury fashion house Escada (Reuters)
“‘Today the insolvency administrator of ESCADA AG signed a sale and transfer agreement with one of the Mittal Family Trusts,’ the company said in a statement late on Thursday after the preliminary creditors’ committee approved the deal.”

Victoria’s Secret unveils plans for launch in UK and Europe (Retail Week)
“US fashion and beauty giant Limited Brands has outlined plans to open Victoria’s Secret stores in strategic markets including the UK as part of an international expansion drive.”

eBay goes upmarket with fashion site launch (Revolution)
“eBay has launched a website written by fashion followers in an attempt to attract more ‘well-to-do’ shoppers. The Inside Source aims to shift perceptions that eBay only offers second hand goods and last season’s threads.”

Asia boosts Hermès luxury sales (AFP)
“Sales in Asia helped boost French luxury group Hermès in the third quarter, the company said on Friday, reporting an overall 10-percent rise in sales to 452 million euros (672 million dollars).”

Seamstress takes on might of Chanel over crochet pattern (Guardian)
“A 61-year-old woman from a small town in eastern France is taking on the might of one of world’s greatest fashion houses in a case that threatens to shake up the way the industry treats its skilled workers.”

Silk scarves by Hermès | Source: Hermès

Luxury goods industry on track for recovery (FT)
“The luxury goods industry will return to growth next year while the decline in 2009 will be less severe than expected thanks to strong sales in Asia, especially China, according to a study published on Monday.”

Wealthy U.S. Shoppers Boost Spending 29 percent, Survey Says (Bloomberg)
“Spending in the U.S. on luxury goods and services spurted 29 percent in the third quarter from the previous three months, as consumers with the highest incomes unleashed pent-up demand, according to Unity Marketing.”

France Aims to Address Woes of Nation’s Fashion Artisans (WSJ)
“France’s specialized embroiderers, seamstresses, tailors and hatmakers – once the backbone of a thriving fashion business – are today among the hardest-hit victims of the global slowdown in luxury goods sales. As fashion houses cancel orders and cut costs, these small businesses are now turning to the French government for help.”

Indians are not aiming for a Prada (Mumbai Mirror)
“The Indian customer spends very differently from her Western counterpart. There, they would live on mortgage but splurge on a designer bag. How many people would do that here? Despite the aspiration and affluence, let’s face it, Indians are still not aiming for a Prada yet,” she admits.”

Aboriginal artist gives fashion house a good wrap (Sydney Herald)
“Everything takes time at the French luxury firm of Hermès: celebrities wait months for their Birkin and Kelly bags, named for the actresses that inspired them. And so it is 64-year-old Aboriginal artist Gloria Petyarre has waited a long time to receive her own Hermes La Reve de Gloria scarf – the one she created.”

Alexander McQueen Spring/Summer 10 | Source: SHOWstudio

Techno Revolution (New York Times)
“The most dramatic revolution in 21st-century fashion took place this week under the sweeping eyes of two giant robots. As they rolled down the stage at the Alexander McQueen show, the machines cast their cameras in diverse directions to project images on to the ever-changing kaleidoscope of a backdrop.”

Hermès Chief Thomas Says China Booming, U.S. Market Positive (Bloomberg)
“Hermès International SCA Chief Executive Officer Patrick Thomas said the French luxury-goods brand’s sales are “booming” in China and elsewhere in Asia, while the U.S. market is ’slightly positive.’”

Retail Vacancies Hit Multiyear Highs (WSJ)
“When consumers start their holiday shopping in earnest next month, they will find fewer stores competing for their business as vacancy rates at malls and shopping centers have risen to multiyear highs.”

Age of Bling is over as Japanese dress down (Times)
“The Japanese consumer — a wealthy arbiter of good taste, a dedicated follower of fashion and once the world’s most reliable buyer of all things foreign and expensive — may have fundamentally changed her view on what it means to look good.”

Shoppers With Money to Spend Find Less to Buy at Saks, Neiman (Bloomberg)
“Jennifer Prentice spent half of what she usually does when she and a friend shopped at Neiman Marcus Group Inc., Saks Inc. and Nordstrom Inc. stores on a recent business trip to San Francisco. They weren’t cutting back. They just didn’t find much to buy.”

Handbags at dawn for Louis Vuitton and Google (FT)
“It will be handbags at dawn on Tuesday in Strasbourg as the world’s luxury goods makers line up to listen to the European Court of Justice’s advocate-general give his opinion in the case of Google versus Louis Vuitton.” Click here to watch the Bloomberg video.

Hermès CEO Sees No Light in ‘Tunnel’ This Year on Japan Slump (Bloomberg)
“Hermès International SCA Chief Executive Officer Patrick Thomas said he isn’t optimistic about the next six months because of a delayed economic recovery in Japan, the French luxury-goods maker’s biggest market.”

U.K. August Online Sales Climb More Than Expected on Clothing (Bloomberg)
“U.K. online retail sales climbed more than expected in August as shoppers, lured by competitive pricing and improved returns policies, spent more money on clothing and electrical goods.”

Does the Fashion Industry Know What a Brand Strategy Is? (PSFK)
“Brands can pr, collaborate and twitter all they like, but without a differentiating brand strategy that creatively frames a different way for consumers to think about them, beyond a cool image or shinny mobile app, brands will always be focused on outdoing their competitors latest tactic.”

Pricey Savile Row tailors survive tough times (Forbes)
“For more than two centuries, this small street in London’s exclusive Mayfair neighborhood has produced wonderful, handmade clothes for an elite group that favored discreet, understated suits to make the wearer blend in, not stand out. But these days, Savile Row tailors are out to make a splash – even branching out into the glitz of London Fashion Week, with a presentation by E. Tautz Wednesday designed to showcase the venerable brand’s contemporary take on the old-style English military and sporting look.”

Per Aage Sivertson for FIN

Is This Style’s Sustainable Frontier? (Wall Street Journal)
“They are part of a growing social movement in the Nordic countries being led by NICE, the Nordic Initiative Clean & Ethical, created last November to promote the five countries as home to a sustainable and ethical fashion industry.”

Hermès profits below expectations (Financial Times)
“French luxury group Hermès on Friday posted first-half profits below market expectations, hit in part by lower revenues from its financial investments and slower growth in certain markets.”

Fashion blogs turn Internet into catwalk (China Daily)
“Before new trends from the catwalks and the streets arrive on the pages of the fashion magazines, they already are posted on the Internet. From secret tips on the hippest accessories to introductions of new artists and designers and styling tips for the perfect look, nearly everything can be found in fashion blogs.”

Perry Ellis signs deal to distribute Pierre Cardin (Associated Press)
“Apparel maker Perry Ellis International Inc. said Thursday it inked a five-year licensing deal with S.A.R.L. de Gestion Pierre Cardin to find materials for, sell and distribute the Pierre Cardin brand for men’s sportswear.”

Fashion Designers Cut Out The Shop (Moscow Times)
“Modebadze is among a group of young designers who are increasingly exploiting novel marketing models, made possible by Internet communities and social networks, to sell their creations directly and avoid the overheads of traditional distribution chains.”