LVMH Lecture Theatre at Central Saint Martins, Kings Cross | Source: LVMH

LVMH and Central St Martins Partnership (Vogue UK)
“Central St Martins new Kings Cross building will feature a state-of-the-art lecture theatre sponsored by LVMH. The luxury conglomerate has also announced plans for a scholarship programme to recruit promising designers from the university for its stable of brands.”

Tamara Mellon leaves Jimmy Choo (FT)
“Tamara Mellon has stepped down from Jimmy Choo, the footwear and accessories brand she founded 15 years ago, following its takeover and integration with Labelux, the private Italian luxury goods group… In 1996 Ms Mellon transformed a small business set up by Jimmy Choo, a cobbler from east London. The business has also branched out into accessories such as handbags and scarves, as well as fragrances.”

A new frontier for big brands (FT)
“In Paris, at 23 Place Vendôme next year, Louis Vuitton will open the first boutique dedicated to its fine jewellery. It is a significant move for the industry… As is usual with Louis Vuitton, a decision by the world’s most successful luxury brand to make a decisive step into a new market is a signal of shifts in the industry… But expectations are that jewellery’s switch from a predominantly craft market to a new frontier for big brands is under way.”

Big in Japan: Paul Smith’s focus shifts to the East (Telegraph)
“The designer has, however, recently fixed his gaze eastwards, staging a fashion show in Japan for the first time in his career. Entitled I Love Japan, the show marked the launch of Japan’s first major fashion event since the March 11 earthquake, tsunami and nuclear crisis… In the case of Paul Smith, the designer’s affection for Japan has clearly returned – reflected in both the number of boutiques and department stores across the country and sales figures.”

Fashion retailing catalogs turn a page (LA Times)
“Alluring as print catalogs may be, an increasing number of retailers — Bloomingdales, Nordstrom and J. Crew among them — aren’t just mailing them to their customers. They’re going digital, showing off this season’s lace-trimmed dresses and faux-fur vests in free downloadable apps that mimic the traditional catalog experience, minus the print.”

Savigny Luxury Index May 2011 | Source: Savigny Partners

LONDON, United Kingdom — As luxury stock valuations continue to roar ahead, even as the overall market has stalled, and luxury brands go to private and public investors to finance further expansion, we take our monthly check of the Market Pulse to understand the key drivers.

Big news

• The Savigny Luxury Index continues its upward trend led by the bullish outlook for the sector in terms of both organic growth and acquisitions

• Continued good news flow with Hermès announcing outstanding Q1 results despite its exposure to Japan, which remains its largest market (representing almost a fifth of its revenues).  Burberry also posted stellar full year (end March 2011) results but signaled further investment in order to capitalise on the brand’s momentum

• There has been a flurry of M&A activity during the last month despite high valuations.  Puig acquired the fashion house Jean-Paul Gaultier from Hermès.  Labelux went on a shopping spree bagging Jimmy Choo from TowerBrook and Belstaff from the Malenotti family.  Department store group Coin was acquired by BC Partners.  French leather goods brand Le Tanneur was acquired by Qatar Luxury Group, owned by the Emir of Qatar’s spouse.  Chinese conglomerate Fosun bought a minority stake in the Greek jewellery brand Folli-Follie

… Continue Reading

Carine Roitfeld by Terry Richardson | Source: Terry Richardson

Lunch with the FT: Carine Roitfeld (FT)
“Roitfeld, 55, has built a career on being cool. She made her mark as a stylist in the 1990s, when she and the photographer Mario Testino created risqué campaigns for Gucci… [As the editor of French Vogue] she became one of the most powerful women in the fashion industry, famous for edgy, sometimes controversial and frequently erotic photo shoots.”

Jimmy Choo sold to Labelux for £500m (Guardian)
“Its killer heels are de rigueur for Hollywood actresses on the red carpet – and this weekend luxury shoe brand Jimmy Choo was sold for an A-list price tag of £500m…. Labelux’s other investments include Swiss luxury brand Bally and the Derek Lam fashion label. Its chief executive Reinhard Mieck said it saw “substantial potential” for the brand, particularly in Asia.”

Inditex breaks new ground for seasons in the south (FT)
“Inditex… has become the first global retailer to sell fashion lines designed especially for the seasons of the southern hemisphere… for clothes retailers based in the northern hemisphere, the seasons of the south have traditionally presented a barrier to full globalisation because of the complexity of producing specially-tailored winter lines at the same time as summer wear.”

China’s luxury consumers get their information online (Relax News)
“70 percent of the country’s consumers of luxury brands search the internet each month before making their purchases. What’s more, 30 percent claimed they searched online for information on luxury items each week. But, surprisingly, just five percent of those polled said they were actually interested in making a purchase over the internet.”

Jeans for deep pockets (FT)
“Major fashion labels such as Chanel, Ralph Lauren, Balmain and Roberto Cavalli have created luxury jeans, some costing well over £1,000… ‘The market for designer denim continues to grow and has no limits. For so many of the fashion collections, their most sought-after pieces are in the fabric.’”

The Post-Advertising Age (Luxury Society)
“Today, the only way brands can connect with customers and prospects is by genuinely adding value to their lives, either by providing a useful service or by telling rewarding stories. Brands have no choice. Messages that aren’t valued will be ignored.”

A Revolution Sallies Forth on the Tunisian Runway (IHT)
“The textile and garment industry, though battered by economic recession and Asian competition, is still the country’s largest employer and leading export sector; it is also the European Union’s fifth-largest textile supplier, producing in particular for Italian and French houses.”

Jimmy Choo eyes £650m HK float (FT)
“Jimmy Choo and its private equity owner TowerBrook Capital are considering a £650m ($1.07bn) initial public offering of the luxury shoe group, in a move that could inject more competition into the auction for the company.”

PPR Shares Rise After Sales Beat Analyst Estimates (Bloomberg)
“PPR’s luxury division is ‘the key highlight’… the results ‘back up our thesis that the Gucci brand will catch up with best-in-class in 2011 and that Bottega Veneta and Balenciaga would confirm their rising star status.’”

The Ageless Supermodels: What sets them apart? (Jessica Michault)
“What makes these particular models timeless? What do Kate Moss, Naomi Cambell, Claudia Schiffer, Christy Turlington, and Amber Valletta or Kristen McMenamy and Stella Tennant, for that matter, have that thousands of other super model hopefuls don’t?”

Allen Edmonds' Redan shoe | Source: Allen Edmonds

At Their Feet, Crafted by Hand (NY Times)
“It has not been lost on workers at Allen Edmonds, or those at about a half-dozen shoe companies that still produce in the United States, that the craft of shoemaking is experiencing something of a renaissance. Over the last few years, as heritage brands have been rediscovered by a new generation of customers, especially young men.”

Jones Group one of bidders for Jimmy Choo (Reuters)
“Clothing maker Jones Group is one of three potential buyers for upscale shoe and handbag maker Jimmy Choo… Jones Chief Executive Wesley Card told Reuters in February that his company was looking to buy brands that would help extend Jones’ reach, particularly into overseas markets.”

How Far Off Are Local Chinese Luxury Brands? (Jing Daily)
“Luxury brands are born out of two main factors, one being history and the other a mature consumer base. However, there are virtually no domestic Chinese luxury brands that have these two characteristics… The establishment of a brand requires a lot of time and money, two things that are in short supply when a brand is first starting out.”

Museums Are Finding Room for Couturiers (NY Times)
“The big-city shows have helped legitimize fashion for smaller museums and provide a template for how to raise funds. And pop culture highlights fashion’s allure. ‘A hit show like ‘Project Runway,’ whose viewers are young females, underscores the passion for fashion among a key demographic that is also crucial for museums.’”

Rise: Gabriella Marina González (Dazed Digital)
“More powerfully dark than ever, the latest collection by Miami-born London-based designer, Gabriella Marina González, represents a new display of the most sinister poetry, a fresh twist to the most hard-core drama…. Leather masks and harnesses with metallic rivets, sky-high wedges and loose knits give shape to The Cyclops Apprentice, her proposal for next summer.”