Hermès scarf for sale on Ebay

EU To Adjust Rules Governing Online Sales (CNN Money)
“The European Commission Tuesday said it plans to adjust the rules governing the rights of retailers to sell their goods on the Internet in an attempt to boost online sales in Europe.”

Coach Drops On Worries About Slowing Comp-Store Sales (WSJ)
“Shares of Coach Inc. fell as much as 7.1% Tuesday after the upscale leather-goods retailer’s fiscal fourth-quarter profit declined 32%, in part on prior-year gains, while sales fell short of analysts’ expectations and margins declined. Though the company’s per-share earnings met consensus estimates, much of the focus turned to the possible slowing of comparable-store sales at outlet stores and the company’s heightened investment in its Fall 2009 “Poppy” collection.”

Cost cuts help Jones Apparel profit beat estimates (Reuters)
“Jones Apparel Group Inc (JNY.N) reported a higher-than-expected second-quarter profit on Wednesday, bolstered by cost cuts and the strong performance of its wholesale jeans business.”

Unmasked: the blogging model who rocked the world of fashion (Guardian)
“An interview with Jenna Sauers, the fashion model who worked anonymously for the feminist website Jezebel.”

Reliability is good for business for fashion retailer sector – CPM (Fibre2Fashion)
“In the light of the current market situation in Eastern Europe, a platform such as Collection Première Moscow (CPM) is more important than ever. The demand for information, especially from the Russian garment retail trade, and the search for practicable ways out of the crisis, are at the forefront of every retailer’s consciousness in these weeks.”

Iconic floral prints, courtesy of Liberty

Liberty appoints advisers to review the business (Drapers)
“Liberty has confirmed it is set to appoint advisers to lead a review of the business, which could lead to a sale of the iconic London department store.”

LVMH, Chanel Force EU to Modify Draft Law on Internet Sales (Bloomberg)
“Luxury goods makers LVMH Moet Hennessy Louis Vuitton SA and Chanel SA may win more control over how Web-based retailers sell their products after a last- minute lobbying campaign over a draft European Union regulation.”

Why your price is right (FT)
Vanessa Friedman explores the “Dutch Auction,”  leaving pricing to the people.

Winning Designs in China: Standing Out to Fit In (Huffington Post)
“The Chinese consumer is becoming increasingly modern and internationalized. However, while “egos” and ambitions are huge, the “new generation” is not becoming “individualistic” in the Western sense – i.e., the peoples never define themselves independent of society.”

China becomes world’s 2nd largest luxury market (People’s Daily Online)
“If you think China is still a developing country, this piece of news is going to surprise you. China has overtaken the US to become the world’s second largest luxury market.”

Outnet homepage, courtesy of Net-a-Porter

Net-a-Porter gives details of discount venture (Drapers)
As revealed in BoF’s exclusive interview with Natalie Massenet in November, Net-a-Porter will launch a discount e-Commerce venture called Outnet.com.

Milan’s Choice: Appeal to Reason or the Gut? (WSJ)
In order to lure customers, designers in Milan employed polarising design strategies.

Mulberry to beat expectations (Drapers)
According to Mulberry, the holiday sales rush will help it beat market expectations.

Luxury Players Battle Changes in Online Rules (WWD)
Changes in European regulation, could dictate how luxury players operate their e-Commerce businesses. (Subscription required)

Store fronts on Rodeo Drive, photo courtesy of WWD.

L.A. Specialty Boutiques Rocked by Shutdowns (WWD)
In LA, troubled boutiques are closing in droves.

The New Rules Of Luxury Spending (Forbes)
“Today’s high-net-worth consumers are still spending–but they’re putting more thought into their purchases.”

Ideeli.com, Ideal Online Shopping? (JC Report)
Ideeli’s invitation only online retail model is proving to be recession proof.

Retail Sales Tumbled in December (WSJ)
In December, retail sales figures in the US, “fell a sixth consecutive time.”

Alex Bolen, CEO, Oscar de la Renta

NEW YORK, United States – It’s a new year, but the news hasn’t changed all that much for the luxury business. In fact, as the numbers roll in from the holiday season and for the fourth quarter of 2008, many executives’ worst fears are playing out. It’s a good thing the industry has leaders like Alex Bolen around to keep us all optimistic.

A few seasons ago, I received an invitation to the Oscar de la Renta show in New York. It was a surprise because I hadn’t requested a ticket and I didn’t know anybody at the company. After the show, I met Alex for the first time and learned that he reads The Business of Fashion daily newsletter every morning on his Blackberry, while walking his dog. Invitation explained.

While this was a huge compliment, I am not telling you this to boast. Rather, it demonstrates that Alex is one of those rare executives in fashion who is literally switched on to new technology and new media. Alex recently answered a few questions to give us the latest news from Oscar de la Renta and explain his bullishness about the Internet in our first CEO Talk for 2009.

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Vera Wang for Kohls, courtesy of Kohls

Vera Wang Bows Out of February’s Fashion Week Tent (WSJ)
Vera Wang is the latest designer who has decided to not have a priceyrunway show this upcoming New York fashion week.

Online sales surge 16% in November (Drapers)
Unlike brick and mortar stores, sales activity on e-commerce sites jumped 16% compared to last year in November.

Fashion Guidance for Aging Japanese Lads (Washington Post)
In Japan, there’s OilyBoy, “a slick new magazine designed to excite consumption among “elder boys.”

Santa On Sale: A Holiday Recession (JC Report)
According to the JC Report, most retailers “confirmed that, compared to last year, this holiday season has been predictably slow.”

Holiday Shopping Off to Strong Start (WSJ)
Due to door-buster deals, retail sales on Black Friday were strong, but crowds petered out over the course of the weekend.

As Online Shopping Scales Back, Big Names Will Dominate (Seeking Alpha)
According to a J.P. Morgan survey, “nearly 30 percent of online shoppers say they plan on spending less this year during the holidays than last year.”

Luxury Shame (Newsweek)
In these difficult economic times, conspicuous consumption isn’t en vogue—even for the richest of the rich.

Celebrating Luxury in the Time of Melancholia (New York Times)
Many luxury magazines are trying to figure out how to promote expensive items without seeming “out of touch.”

Black Friday shopping, photo courtesy of the Boston Globe.

For Luxury Brands, Less Money to Spend on Ads (New York Times)
The rapidly plummeting market for luxury goods in the United States (down 20.1% in October according to MasterCard) is having a knock-on effect on advertising spending.

Barney’s Designer Mailer Online Catalogue (Dualité)
Following in the steps of Net-a-Porter, Barney’s “Designer Mailer” signals a continuing trend in “shoppable editorials” online.

Paris’s newest and hippest shopping destination (IHT)
In Paris on Rue Mont Thabor, “a quiet [shopping] revolution has been taking place since the Maria Luisa store, with its raft of artfully selected designers, moved there after 20 years on Cambon.”

Perfumers Make Their Big Holiday Push (WSJ)
Despite fragrances’ slumping sales this year, companies are still launching new scents just in time for the holidays.

Macy’s Said Considering Consolidation (WWD)
Macy’s will consolidate its company from four into two divisions.

Marc Jacobs Holiday Party 2007, photo courtesy of The New York Times and PatrickMcMullan.com

Alexander McQueen to collaborate with Target (Drapers)
Alexander McQueen creates a range for Target geared towards a “slightly older customer.”

Online Retailers: Slower Growth Expected This Holiday Season (WSJ)
Online retailers are resilient when it comes to the economy, but they’re not immune,” according to Scott Silverman, Shop.org’s executive director.

What Moves During An Economic Downturn (JC Report)
“One might assume that demand for timeless basics would be on the rise in such uncertain times, many retailers report that it’s the exact opposite.”

Jean Paul Gaultier Said to Tap New President (WWD)
Veronique Gautier is said to be the new president of Jean Paul Gaultier.

Alexander McQueen, photo courtesy of Alexander McQueen.

One look at the current advertising campaign for Hermès, and it’s clear that India is on the radar screen of Western luxury brands. But this is not a new phenomenon. At the recent Walpole Seminar on China & India, Dr. Amin Jaffer, International Director of Asian Art at Christie’s, described the long relationship that India has had with European luxury brands, dating back to the late 1800’s.

Today, however, things aren’t as straightforward. Other Walpole seminar participants like Mohan Murjani (of the Murjani Group – partners to Jimmy Choo, Gucci and Bottega Veneta in India) also revealed that new luxury entrants in India are up against strong domestic players, labyrinthine bureaucracy, and inconsistent infrastructure. Break-even will take longer than some might have hoped.

On the Internet side, despite the naturally chatty and curious Indian nature, things have also been very slow to develop.  I explored this topic in an article in Luxeletter, an online publication from the Murjani Group, covering the luxury industry in India.

The entire article is republished below.

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