Lagerfeld sketch for Chanel from "Paris-Shanghai" | Source: Fashionmagazine

European Luxury Goods Risk Cachet With China Focus (Bloomberg)
“European luxury brands are risking their cachet and alienating Western shoppers by changing designs to appeal to the Chinese market, according to Tyler Brûlé , the London-based design consultant and editor of Monocle magazine.”

Will Fashion’s Biggest Names Kiss the Runway Goodbye? (Time)
“On Dec. 11, Rugby, Ralph Lauren’s collegiate brand, will show its holiday collection in an online fashion show… instead of the company’s spending $1.5 million on an audience of approximately 700 members of the fashion press and department-store buyers, the virtual show will cost less than $50,000 to produce and is expected to attract more than 40 million page views.”

Inditex’s push into Asia offsets domestic slump (FT)
“Inditex, the Spanish clothes retailer, yesterday unveiled a slight drop in profits for the nine months to the end of October, as aggressive expansion into Asia helped offset weakness in the domestic market.”

Mulberry profits boosted by UK retail sales (Drapers)
“Mulberry posted a 16% hike in sales in the first half of the year, boosted by a strong UK retail performance. The luxury clothing and accessories house saw sales climb to to £32.3m during the six months to the end of September 2009.”

Luxury groups think they can survive bonus tax (FT)
“Luxury retailers think that their Christmas sales can withstand the tax on bankers’ bonuses but are worried about the impact of higher income tax next year… The 50 percent bonus tax, announced in the pre-Budget report, will target important customers for luxury shops.”

Nick Knight on location

Nick Knight on fashion, photographs and failings (Times)
Luke Leitch interviews Nick Knight: “I have friends in the City who are amazed by how the fashion business is conducted. It’s controlled by a few people, and not particularly well.”

Inditex 1H Pft Beats Views; Plans Online Push (WSJ)
“Inditex SA, Europe’s top fashion retailer by revenue, Wednesday said it plans a major push online for its flagship Zara-brand, as it reported better-than expected first-half earnings.”

Two Fashion Stalwarts, Reared on Same Bronx Catwalk (New York Times)
“Ralph Lauren (né Lifshitz) and Calvin Klein were raised in the Norwood neighborhood along Mosholu Parkway in the 1940s and 1950s, with Mr. Klein living at in an apartment house at 3191 Rochambeau Avenue and Mr. Lauren in an apartment building on Kossuth Avenue overlooking the parkway itself, according to Lloyd Ultan, the Bronx historian.”

Recession Dims Stars’ Style Power (WSJ)
“The struggles of William Rast, which didn’t show in the New York Fashion Week tents this week, are a sign of the times. The downturn in high-end fashion is hitting celebrity-backed brands hard. Many are disappearing. U.S. sales of celebrity-licensed products fell to $2.9 billion last year after peaking in 2006 at $3.5 billion, according to the Licensing Letter, a trade publication.”

Louis Vuitton eyes Lebanon expansion (Forbes)
“French fashion brand Louis Vuitton, which will open its flagship Middle East store in Dubai next month, is in the ‘final stages’ of a planned expansion into Lebanon, a company official said on Tuesday. Damien Vernet, general manager for the fashion house’s Middle East and India operations, said the company was also looking into Egypt, Jordan and in Syria as possible markets.”

Zara S/S 09 ad campaign, courtesy of Zara

Inditex 1Q Net Pft Down 16%; May Trading Resilient (WSJ)
“Inditex SA (ITX.MC), Europe’s largest fashion retailer by revenue, Wednesday said its first quarter net profit fell 16 percent on a slump in consumer spending in Europe, but its stock rallied after it reported resilient clothing sales in May and the first week of June.”

Net-a-Porter demonstrates strength of business model as profits treble (FT)
“According to accounts filed with Companies House, the privately held London- based business increased sales by 47.8 per cent to £81.5m in the 12 months to January 31.”

Bulgari to issue 130 mln euro bond (Reuters)
“Bulgari SpA plans to issue a 130 million euro ($183.4 million) bond, the Italian jewellery maker said on Wednesday. The bond would have a coupon between 5.25 percent and 5.75 percent and mature in 2014, it said in a statement.”

China’s Luxury Goods Market May Escape the Worst (Seeking Alpha)
“As the effects of the economic crisis ripple across the global economy and demand for expensive products plummets, luxury brands face gloomy prospects in North America and Europe. Except in China which saw 15 percent retail sales growth in Q1, consumer spending is in sharp decline as consumers retrench, look for value in their purchases and cut back on non-necessities.”

Versace appoints new chief (FT)
“Gianni Versace has named Gian Giacomo Ferraris, the luxury goods veteran who has led Jil Sander since 2004, as its new chief executive.”

Rathore Jodhpurat A/W 09 at Wills Fashion Week

Sustainability is back in fashion (IHT)
As the industry redefines the meaning of luxury, “Sustainability” and “Responsibility” have become the new buzz words.

Ted Baker profits fall (Drapers)
Ted Baker saw pre-tax profit fall 19.5% to £17.8 million for the 53 weeks ended January 31.

In Fashion, Some Like It Haute (WSJ)
“Economic crisis doesn’t mean the end of luxury. But while many brands have been battered, those that show grace under fire should be coveted investments.”

Inditex sales rise 12% (Drapers)
Sales are up at Inditex for the fiscal year 2009 and sales are trending ahead by 9% in February.

Stella McCartney on ecology, luxury and life (IHT)
Stella McCartney sits down with Suzy Menkes and lets us in on her label’s eco conscious stance.