BoF - The Business of Fashion » Matteo Marzotto

CEO Talk | Matteo Marzotto, Chairman, Vionnet

Imran Amed, Editor — Thu, 03 Mar 2011 23:30:14 +0000

Matteo Marzotto in his Milan offices | Source: The Business of Fashion

MILAN, Italy — When Matteo Marzotto, stylish scion of the Italian fashion dynasty announced in February 2009 that he was acquiring the storied House of Vionnet, owned at the time by Arnaud de Lummen who had already had a go at reviving the sleeping beauty himself, the response from the fashion industry was simultaneously one of intrigue and distaste. On the one hand, a swarm of journalists and buyers packed into Marzotto’s Milan apartment for the initial press conference. On the other, many fashion observers could not fathom how a legendary French fashion house could be moved to Milan, run by an Italian, and designed by Rodolfo Paglialunga, an Italian designer who had worked for most of his career in Italy.

Fast forward two years and it seems Mr. Marzotto has taken the first small but successful steps in rebuilding the Vionnet business, if not in quite the same aesthetic or spirit as that of its namesake designer, then undoubtedly far more successful in generating revenues and editorial coverage than the previous attempt to bring Vionnet back to life. Indeed, Vionnet’s gowns and party dresses now regularly show up on red carpets on both sides of the Atlantic where starlets such as Carey Mulligan, Marion Cotillard and Rachel McAdams have taken to the Vionnet cause, giving the brand a new lease on life. The brand chalked up over 5m euros in sales in its first year, from a standing start.

After years of hands-on experience turning around the Valentino business (and then selling it for a tidy sum), Mr. Marzotto is banking on turning Vionnet into his next fashion success story, leveraging his extensive global fashion network, his undeniable charm, and the fashion DNA that runs in his family. For many Italian fashion insiders, this is not a man to bet against.

With the imposing (and inspirational) photo of his grandfather looking over his shoulder, Marzotto spoke to BoF about the early results of his work on the Vionnet brand and his plans for its future.

BoF: Let’s talk about the House of Vionnet. With your experience and connections in the Italian fashion industry you had many other opportunities post-Valentino, but instead you decided to attempt to relaunch this brand. Why?

Matteo Marzotto: The word is passion. Even before my time at Valentino I thought there was the capacity and potential to grow another brand, or try to relaunch a brand, something with a beautiful history, but no recent past. Then one day I went to this consultant to speak about a completely different matter and in front of him there was a brochure on Vionnet. I asked about the brochure, and he said ‘it’s a small thing, it’s not for you.’

It was the final business plan for Vionnet.

BoF: What does the Marzotto organisation bring to the table to help with your strategy for Vionnet?

MM: Ten years ago, Marzotto was managing licenses. It was your typical Italian industrial organisation for fashion, the kind of organisation that made Italian fashion big at the end of the 1970s.

I grew up in that organisation, and for a long time I thought it would be interesting in terms of value creation to work directly on a brand. Then [the Valentino opportunity] came and we worked like horses for five years to build it up. In five years we doubled the business from 128m euros in sales and a net loss of 40m euros in 2002, to 260m euros in sales and a net profit of 27m in 2007.

Our management style was very much from the culture of Northern Italy, in Veneto, checking the financials twice, sometimes three times a day, while also learning how to work and survive with image issues, style issues and drama queens. In those 5 years I dreamed of taking something small and making it big by applying the principles of a large organisation to a small one.

BoF: So you will use the same approach at Vionnet as you did at Valentino?

Not completely. In my opinion there is a risk in fashion of constantly re-using the same people coming from the same backgrounds. People are always growing up with the same procedures in fashion, then changing companies and exporting those old ways of doing things to other companies. For this reason, it’s nice to have new blood as well and do new things. In a big company you cannot do certain things, you have to plan it and protect it.

BoF: What will be different with Vionnet then?

MM: We have to show a little bit more of our personality, the human side of fashion. Overall, there is too much focus on how people look; a kind of gaudy feeling. I like the idea of being very small and trying to relaunch a very beautiful brand through Facebook, Twitter, the web, whatever. I’d like to show a small part of our day to day life.

BoF: What do you mean exactly?

MM: We did a little test in Paris which I liked very much. It was quite traditional, a little bit of backstage plus a little bit of testimonials during the presentation of the collection. From now on we would like to fix this, to catch some of the daily life of the company.

BoF: At the most recent IHT conference, you said that it was ‘a nightmare for an Italian to relaunch a historic French brand.’ How do you respect the history of a French brand even though it’s based in Italy?

MM: Unfortunately when I said that, it was because French people were reacting to the acquisition very badly. French customers, especially in Paris, felt betrayed. The Vionnet brand had been there for 70 years.

Overall, my respect towards the brand comes from its history, and from our side there is the highest respect. Madame Vionnet foresaw the future, like a visionary.

She was so ahead, and made the body free by throwing away the bustier. The organisation of the company was genius, it was probably 40 years ahead. She was the very first to make a [branded] perfume, and use advertising and marketing for publicity.

She was a genius in everything; my admiration for her is so deep. There is no reason whatsoever for me to try and make it a fast fashion company, because I come from a family business, because I grew up with a respect towards history.

I cannot explain it; I can only speak through the quality of product.

BoF: What are your plans for the future?

MM: I am working with the same energy, concentration and focus as I was at Valentino. What I want to leave you with is the idea that there are people very much in love with fashion and this project. There are some brands which have no stamina, feeling or connection, but Vionnet is different.

Vionnet presents its Autumn/Winter 2011 collection during Paris Fashion Week on Friday

CEO Talk is an ongoing series of discussions with fashion entrepreneurs and business leaders. Previous interviews are listed below:

BoF Daily Digest | Liberty looks forward, The return of private label, Marzotto’s niche, Strategic tweeting, A new elegance

BoF Team — Mon, 28 Jun 2010 12:37:46 +0000

Liberty of London Menswear Spring 2010 | Source: Fashionisto

Liberty’s new owner sets out plans for growth (Guardian)
“Liberty’s new private equity owner BlueGem Capital, formed in 2006 by a group of former Merrill Lynch bankers… set out its plans for the department store group, which it described as ‘a national treasure’.”

Harrods Create Own-Brand Fashion to Revive Sales (Bloomberg)
“We have invested in all categories as we saw a white space that none of our vendor partners were addressing… Each season we edit our portfolio of resources and instead of filling with only other new brands, some of these dollars and floor space have gone to our own collection.”

Small brands can bite (Washington Post)
“Small brands can carve out a safe niche for themselves in an overcrowded fashion market, former Valentino chairman Matteo Marzotto said, adding that ideas count more than money in the crisis-hit luxury industry.”

Luxury Department Stores on Twitter (Fashion’s Collective)
“It’s been interesting to watch as more and more luxury brands and retailers get on the ‘Twitter train.’ In particular, [watching] how the department stores (amidst their complex organizations) are innovating in this space. Unfortunately, not all have gotten on board, but there are a few clear standouts.”

Looking for a New Elegance (IHT)
“That message echoes through the Paris shows as designers strive to meld — rather than contrast — tailoring and sportswear, liquid and linear, and to absorb the colors of garden and desert into the grey-blue city skyline.”

BoF Daily Digest | Fendi’s future, Investors for Replay, Marzotto’s new venture, Jaeger’s expansion, Visionary Grace Coddington

BoF Team — Wed, 16 Dec 2009 13:46:12 +0000

Palazzo Fendi, Rome | Source CPP-Luxury

The Future of Fendi: Hotels, Men’s line and F project (CPP-Luxury)
“Michael Burke, CEO of FENDI confirmed in a recent interview the relaunch in 2010 of the men’s line which was stopped earlier this year,” as well as the extension of the F Factory and a new hotel concept.

Replay majority stake bought by new investors (Drapers)
“An acquisition vehicle has bought a majority 60% stake in Fashion Box SpA the owner of denim brands Replay, We Are Replay and Replay & Sons denim. The acquisition vehicle, Equibox Holding, is controlled by Matteo and Massimo Sinigaglia, who were partners in the Replay footwear business, and Wolfgang Friedrichs, who was a partner in Replay’s German operation.”

Business Diary: Matteo Marzotto (FT)
“Matteo Marzotto spent 17 years at his family business, the Marzotto Group, most recently as president of Valentino, the fashion label the group bought in 2002. In 2008 he left Valentino after it was sold to Permira Private Equity, and purchased the fashion house Vionnet.”

Jaeger set sights on Europe (Drapers)
“Jaeger, the British heritage brand, is set to re-enter the European market after revealing sales are on an improving trend. Jaeger, which was bought by British Fashion Council chairman Harold Tillman in 2003 for a nominal sum, has reported a 9% rise in sales in the 14 weeks to December 11, after strong performances from its London flagship stores in Regent Street and Westfield shopping centre in West London.”

Grace Coddington: the Vogue visionary (Times)
“Even now, months after the release of The September Issue, this year’s cult hit about the making of the September 2007 edition of American Vogue, Grace Coddington, the magazine’s brilliant, but hitherto largely invisible creative director, says that at least five people come up to her on the subway every morning.”

Friday Column | Failure to re-launch?

Lauren Goldstein Crowe — Fri, 27 Feb 2009 11:43:42 +0000

Matteo Marzotto, courtesy of The Sartorialist

LONDON, United Kingdom — The recent news that Matteo Marzotto and Gianni Castiglioni have bought the Vionnet brand reminded me of the old saying about second marriages: a triumph of hope over experience. Arnaud de Lummen has already had a hand at reviving Vionnet, the classic couture brand, over the past few years, but has now moved on to other projects. (You can read all about it in BoF’s exclusive interview with de Lummen.)

In announcing the purchase of Vionnet, Marzotto said “I am convinced there is always room for projects that have at their core originality, energy and passion. With Vionnet I would like to bring back to life an idea of fashion that is contemporary without forgetting its history.” And, Marzotto is not the only one who thinks so.

Halston is probably the highest profile re-launch, but the $20 million plus purchase price paid by Hilco Consumer Group, Harvey Weinstein, and a small group of private investors, means the pressure is on to see big-time results in a shrinking economy.

By comparison, Azzaro, bought by Reig Capital in 2007, has been taking a slow and steady path – and managed to maintain positive results despite the disappointing times. Managing Director Sagra Maceira de Rosen puts it down to the focus on performance in their two stores – the flagship in Paris and the new pop up store in Mount Street, which recouped its costs in the first two days of sales. (Full disclosure: Sagra is also the co-author of a book on Jimmy Choo that I am publishing later this year.)

I’m enamoured with JT handbags, based in Florence, who have exclusive distribution in Bendel’s in New York and are still considering European partners. And Lela Rose, who made her name dressing the Bush twins, is embarking on a new push into Europe under the guidance of sales director Sandra Ellis, who joined from Zac Posen.

But is it a foolish time to attempt these kinds of initiatives? On the surface of things, the answer would appear to be ‘yes.’ Sales of established brands are suffering, so retailers are going to be extra cautious about taking risks on new brands with unproven sales performance.

On the other hand, the suffering of the big brands could provide an opportunity for leaner, smaller bands. If established mega-brands are cutting back on their ads, so much the better for smaller, independent brands whose single pages have a better chance of being noticed in the glossy magazines. And even if they don’t have money for advertising, creative marketing ideas (read about Halston’s innovative online video in our CEO Talk with Bonnie Takhar) have a better than usual chance of getting noticed.

If Giorgio Armani isn’t in London throwing celebrity-studded extravaganzas at Earl’s Court (like he did in 2007 to celebrate his collaboration with the charity RED), then the press is all the more likely to head over to the Azzaro pop-up store on Mount Street to get a snap of Jemima Khan.

The danger is falling into the trap of getting over-extended. This is not the time for ambitious launches. Fortunately Marzotto and Castiglioni have the industry experience and deep-enough pockets to fund Vionnet through a transition stage. Brands without big backers aren’t so lucky.

So, while it may not be a good time to make money, if these re-launches are carefully managed, it could still be a good time to establish a fan base that will pay off when the recession ends.

Lauren Goldstein Crowe has returned from sartorially-challenged Whistler, so we are now back to our regularly scheduled BoF programming. You can expect more of her popular Friday columns to come.