Another topic that has consistently provoked much debate amongst our community is fast fashion. In a strongly worded Op-Ed piece, our friend Liroy Choufan in Tel Aviv took a contrarian position on the so-called democratisation of fashion, which has made high-fashion styles available to the masses. But at what cost? Mr Choufan says that “the needs, desires and intentions regarding clothing, or designer creations, have become important pieces of legislation in the false democracy of fashion, evolving at dizzying speeds and enlisting an army of fools.”

Later in the week, we explored the widespread influence of Phoebe Philo at Céline. The distinctive, wing-shaped totes and bags from her accessories collection seem to have inspired countless imitators, just as her stark modern minimalism seemed to cleanse the collective fashion palate when she first took the reins at Céline in 2008. But with wider distribution in the plans and growing awareness of Céline amongst the fashion masses, will Ms Philo be able to maintain her elite, exclusive positioning? Linda Fargo, the highly-respected fashion director of New York’s landmark department store Bergdorf Goodman, thinks so. She called the brand the “modern-day equivalent of the standard bearer of non-perishable luxury: Hermès.” That’s high praise for a brand that was completely off the fashion radar only a few years ago.

In other news, Dior revealed its plans to host a repeat of its Spring haute couture show in Shanghai this weekend; we spoke to Flint and Tinder founder Jake Bronstein about his company’s remarkable success on Kickstarter; and we caught up with photographer Sante D’Orazio on his plans to re-enter the fashion firmament.

And finally, Love magazine editor Katie Grand found herself in hot water this week when a fashion film seemingly inspired by prostitution, and featuring the Louis Vuitton Autumn/Winter 2013 collection, sparked a furore in France. Indeed, Dominique Attias, a leading lawyer, called the film “an extremely shocking representation of women” in the French daily newspaper Libération. Grand promptly issued a curt apology, but this does not seemed to have quelled the critics.

Have a great Easter Weekend. We’ll be back on Tuesday, bright-eyed and bushy tailed, with another week of insightful analysis on The Business of Fashion.

Imran Amed, Editor-in-Chief

Links:

Is There a Fashion Tech-Bubble?, Fashion 2.0

Fashion’s Democratic Disease, Opinion

The Wings of Céline, Intelligence

The Return of Sante D’Orazio, People

Dior Plans Encore Haute Couture Show in Shanghai, News & Analysis

Sweatshirt Is Crowdfunding Site’s Biggest Fashion Success, Fashion 2.0

Louis Vuitton Film Accused of Promoting Prostitution, Daily Digest

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In fact, so sceptical were investors that when Natalie Massenet sought funding in the early years of Net-a-Porter, a business which was already showing early signs of promise, she was unable to raise money from traditional venture capitalists and instead turned to friends and family.

What a difference a decade makes. In 2010, Net-a-Porter was sold to Swiss luxury group Richemont for over $500 million. Just last week, following a 37 percent rise in revenues, fashion e-tailer Asos reached a record market value of $4.16 billion on London’s AIM exchange. Perhaps it’s not surprising, then, that venture interest in fashion-tech is now booming.

Over the past few years, large sums of capital have been pouring into young fashion-tech companies like Moda Operandi ($46 million), Nasty Gal ($49 million), ShoeDazzle ($66 million), BeachMint ($75 million) and Gilt Groupe ($236 million). In the last month alone, Farfetch raised another $20 million, while Rent the Runway closed a $24.4 million round, both with the participation of powerhouse publisher Condé Nast, bringing the total amount of financing that investors have committed to fashion-tech companies since the start of the year to over $150 million — all at sky-high high valuations. By comparison, Net-a-Porter raised just under $10 million dollars in total.

And, while some companies are successfully raising more money, others appear to be stalling. When Gilt Groupe raised its last round, the company, which only recently crossed over into profitability, was valued at over $1 billion. But the company has since laid off a substantial number of staff and shut down several business units. Indeed, it’s still unclear whether the company will go public this year, a stated goal of the company’s chairman Kevin Ryan.

London-based Luxup abruptly ceased trading at the start of the month and has reportedly liquidated its operations in Hong Kong and London. BeachMint is struggling. Styleowner appears to have stalled. Lookk.com has shuttered. FashionStake was absorbed into Fab.com. And the list goes on.

Indeed, with the exception of Net-a-Porter and Asos, there have been very few big exits. Yet the money keeps coming. Are we in the midst of a fashion-tech bubble?

“Yes, too many companies don’t have a business model and don’t understand this industry,” Lawrence Lenihan, managing director of FirstMark Capital, an investor in Pinterest, Ahalife and Sneakpeeq, told BoF. “We have to stop backing stupid, business school whiteboard businesses that are ignorant of the industry and lack heart, soul and beauty. Moreover, companies that have gotten some degree of success have been so overcapitalised and their ultimate returns so overestimated that those investments will never create a return and will detract from the returns that founders and early shareholders should have gotten,” added Lenihan.

Many investors also lack a deep understanding of the fashion market. “I wouldn’t say there’s a bubble, but I do think a lot of funding has gone into businesses that haven’t been well understood by investors. As a former VC, I know how hard it is to operate across multiple verticals,” said Chris Morton, founder of fashion curation platform Lyst and a former associate at Balderton Capital (formerly Benchmark Europe). “When we were raising our seed round, some well-respected tech investors kept drawing comparisons between Lyst and online travel platforms,” he continued. “They didn’t really grasp the fundamental differences between buying a sweater and a plane ticket.”

Others are more sanguine. “There is no fashion-tech bubble. The fashion industry needs more tech investment, not less,” said Robin Klein, venture partner at Index Ventures and non-executive director of Farfetch. “Some substantial fashion tech companies have been built, demonstrating the value that can be created online; companies like Asos, Net-a-Porter, Nasty Gal and Farfetch [all of which have been backed by Index at the venture or growth capital stages]. Valuations may seem high, but all of these companies are growing extremely fast. Asos sales are up 37 percent — which high street store can claim that? There are a lot of new tech fashion start-ups that aren’t going to succeed. But that’s true of all venture [investments].”

Still, winning exits have been few. “Many companies have been funded; not all of them will succeed,” said Frédéric Court, general partner of Advent Venture Partners, lead investor in Farfetch. “The number of exits has been limited. Apart from Net-a-Porter and Asos, both of which never raised venture capital, we have not seen big exits in the fashion-tech space, except a few local flash sales companies like Hautelook (sold to Nordstrom) or Brands4Friends (sold to eBay),” he continued. “The lack of exits combined with the vast number of very early-stage start-ups in the space will generate many failures in the short-term,” he predicted. “But this is the natural Darwinian process of the start-up world. Refinancing in the space will be hard in the short-term and the ‘bubble’ will deflate… until it comes back!”

So what separates winning investments from those that will fail?

“The companies that win are the ones that develop innovative business models that provide long-term value to both its consumers and the brands it works with. This may sound obvious, but I don’t think it’s always appreciated,” said Morton. Indeed, there’s simply not enough demand to support the masses of new fashion e-commerce companies that have launched in recent years. Only those with a clear point of view and a compelling, scalable and defensible business model stand a chance at long-term success.

“First and foremost, successful businesses need a clear revenue stream and a value proposition beyond price, value and service,” said Rachel Shechtman, founder of innovative retail concept store Story and an entrepreneur immersed in New York’s fashion-tech scene. “They also tend to tap into existing consumer behaviour or familiar tendencies, rather than introducing new ones.”

As for the kinds of business models that are most likely to deliver returns, ”number one, companies that make things — brands!” said Lenihan. “Number two, companies that help companies that make things reach and service their customers. And, number three, infrastructure that enables companies to understand and reach their customers better, no matter where in the world they exist.”

Court agrees: “My favourite newcomers are online brands and marketplaces. Take Nasty Gal for instance. Here is a digital-driven fashion brand that is selling affordable clothing direct, at gross margins probably well over 60 percent, without fixed retail costs and with a very low acquisition costs thanks to a superb use of social media. Another favourite is Farfetch — in which I am also an investor — which is building a global fashion and luxury e-tailer with no inventory, global reach and a uniquely curated and broad product offering.”

“Importantly, a key feature of all these winners is an exceptional entrepreneur at the helm, with a vision and the ambition to build a large, differentiated business,” added Court. Klein concurs: “Generally our approach is to invest in people first, and markets and models second. In fashion, we’ve found that entrepreneurs with an especially deep knowledge of the industry, particularly at the luxury end, seem to do very well.”

However, certain business models are not holding up to venture capitalists’ expectations.

“The companies that will find it hard to survive are those that have relied on cheap money to fund customer acquisitions expensively,” concluded Mr Court. “As an example, I am thinking of a number of subscription-based start-ups that have raised significant capital to invest aggressively on marketing, essentially on inflated ‘life time value’ assumptions. These companies will have to adapt, pivot or die,” he added, referring to companies like BeachMint. “Another example is the vast number of companies that rely on user-generated content and want to build businesses as affiliates to e-tailers. This model only works at massive scale, like Polyvore, and many small sites will not make it.”

“I do feel there is a fashion-tech bubble,” Carmen Busquets told BoF, while adding that there are still opportunities to make meaningful returns. ”I feel the companies that will deliver the best returns have a good team with a track record in the industry. It’s a perfect time to incubate concepts with the right founder and team, but I recommend making small investments and negotiating a board seat. And if it works you have the opportunity to keep investing, control the board and really work together with the founders. That way, you can still make ten, fifteen or twenty times your money in seven to ten years,” she advised.

Ms. Busquets would know. She was the founding investor in Net-a-Porter, and amongst the first professional investors to see the value in online luxury e-commerce more than a decade ago after the first bubble had already burst and before venture capitalists poured money into the space.

“The other winning formula is investing in companies that have already proven themselves,” she added. “The valuation will be high, but they are already making a profit, or at least breaking even, and they need money for expansion. This way, you can still make three to six times your money in five years, which is not bad either.”

Editor’s Note: This article was revised on 25 March, 2013. An earlier version of this article misstated the name of the German flash sales start-up that was acquired by eBay in 2011. It is Brands4Friends not Brands4You.

Disclosure: Index Ventures, Frederic Court, Carmen Busquets and Lawrence Lenihan are all part of a consortium of investors which has a minority stake in The Business of Fashion.

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Carlyle, KKR among Maje, Sandro bidders: sources (Reuters)
“Private equity firms including Carlyle and KKR this week submitted non-binding offers for control of French fashion brands Maje, Sandro and Claudie Pierlot, sources familiar with the transaction told Reuters.”

The high street takes its place beside haute couture (Guardian)
“This is just the beginning of a month-long flurry of shows and opportunities to show off. With the world’s media watching, it is a chance to bag lucrative column inches in newspapers, magazines and, of course, the proliferation of blogs and style websites that have an increasingly powerful reach. So it’s not just people who want a piece of the action: brands want to play ball too.”

Best feet forward (FT)
“Globally, the footwear market is expected to reach $195bn by 2015, with sales exceeding 13bn pairs last year alone, according to Global Industry Analysts, Inc. It’s hard to imagine there are so many shoes in the world.”

Not just a magazine: Vogue strikes a deal (Independent)
“It is just one of a number of projects that Vogue has rolled out in a bid to stay ahead of the competition. At a difficult time for publishing, the magazine is taking a fresh approach to connecting with its readers and building quite the empire while it is at it.”

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Week in Review September 3-7

BoF Exclusive | Natalie Massenet to be named Chairman of BFC (BoF Exclusive)
“The Business of Fashion has learned that Natalie Massenet, founder of pioneering fashion e-commerce website Net-a-Porter, is soon to be named the new chairman of the British Fashion Council (BFC), replacingHarold Tillman, who has been chairman of the organisation since 2008.”

Finding Your M.O. | Part 7: Going Global (Education)
“Today’s fashion industry is truly international, with designers, manufacturers, retailers and end consumers scattered across the globe. And as an Icelander living abroad, it is doubly important to me that M’O is an international company. We hire employees from different countries. We showcase emerging designers from markets like Australia, Brazil, Israel and Scandinavia. We ship product to customers worldwide. And our website, customer care managers and personal stylists operate in multiple languages.”

Market Pulse | Back in the Tourist Business (Market Pulse)
The Savigny Luxury Index (“SLI”) gained 5.5 percent in August, outperforming the benchmark MSCI World Index (“MSCI”) by over four percentage points.  Strong results by sector leaders confirmed continued growth in Asia and increased tourist spending in Europe, thanks in part to a weaker euro.

Louboutin wins red soles trademark battle (FT)
“French shoe designer Christian Louboutin has won the right to trademark protection of his distinctive red soles in a US federal appeals court in the latest chapter of a bitter legal battle with rival luxury house Yves Saint Laurent.”

Zegna Hires Designer From Saint Laurent to Bolster Brand (NY Times)
“The Italian men’s wear company Ermenegildo Zegna moved on Tuesday to strengthen its core brand and breathe new life into its little-known women’s fashion line by hiring a designer best known for his work at Yves Saint Laurent.”

Bags Made by Hand, in East Africa (IHT)
“At the heart of the African fashion collectives is Simone Cipriani, an Italian from his country’s leather industry who has made it a mission for the United Nations to develop an Ethical Fashion Initiative at the International Trade Center in Geneva. (The I.T.C. is a joint body of the United Nations and the World Trade Organization.)”

Mature markets (FT)
“‘Attitudes seem to be slowly changing, as blogs such as Advanced Style, The Women’s Room, and That’s Not My Age have highlighted the fact that growing older does not mean women lose interest in fashion and style,’ says British trend forecaster Jane Kellock, founder of The Women’s Room.”

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Natalie Massenet | Source: Net a Porter

LONDON, United Kingdom – The Business of Fashion has learned that Natalie Massenet, founder of pioneering fashion e-commerce website Net-a-Porter, is soon to be named the new chairman of the British Fashion Council (BFC), replacing Harold Tillman, who has been chairman of the organisation since 2008. It is understood that Massenet will not assume the role of Chairman until sometime next year.

When asked for comment, the BFC made the following statement: “Despite rumours, the BFC has confirmed that any new chairman is subject to BFC executive board approval. The BFC executive board is not due to meet until tomorrow evening and any announcement cannot be expected until then.” Ms. Massenet’s communications team declined to comment.

The new appointment would signal more than just a change in leadership for the BFC. Under Mr. Tillman, alongside chief executive Caroline Rush and her predecessor Hilary Riva, the BFC has had remarkable success in getting London Fashion Week back on the global fashion radar, powered by the creativity of London’s emerging designers and the return of Burberry as anchor to the schedule. The body has also forged an array of corporate partnerships with Vogue, Elle, Vodafone and others, to provide prizes and sponsorships to support emerging fashion labels in their nascent state.

But for these same young designers, what happens when the sponsorship runs out? What happens when there are no more awards to win?

Indeed, despite the positive marketing buzz created by the BFC, many of London’s young fashion businesses remain sub-scale and undercapitalised. In order for global names like Christopher Kane, Jonathan Saunders, Erdem Moralioglu and Mary Katrantzou to take their businesses to the next level, the BFC will need to shift gears to help designers find proper capital investment – and focus on the digital opportunity.

Enter Ms. Massenet. She is an inspired choice to chair the BFC. As an entrepreneur who has built (and sold) her own business, with an impeccable sense of product, a proven eye for talent, and digital savvy, she is well equipped to lead the British Fashion Council into the next stage of its development and help London fashion deliver on the great promise is has shown in recent years.

Imran Amed is founder and editor-in-chief of The Business of Fashion

Update: The British Fashion Council has confirmed that Natalie Massenet has been appointed chairman of the BFC, effective January 2013. In an official statement, Ms. Massenet commented: “I am honoured and excited to be taking on the role of chairman of The British Fashion Council. Over the past few years The British Fashion Council, led by Harold Tillman and Caroline Rush, has done an extraordinary job of building the profile of our industry worldwide. Not only do we have some of the best creative talent based in London but there are also great British designers working in some of the most high profile luxury design houses in the world. We also have the best understanding of what our industry contributes to the UK economy and what a significant player the British Fashion Industry is and can continue to be. My experience is in merging extraordinary creative content with innovative global commerce. From January, together with Caroline Rush and her team, I aim to apply these lessons to my new role, a role I take incredibly seriously.” Caroline Rush, CEO of the British Fashion Council, added: “The board are looking forward to welcoming Natalie to the organisation and working closely with her on our programme of development and activity over the next three years, both at home and abroad. I thank Harold for his incredible support and vision and for extending his initial three year term to almost five to see us through a period of significant change.”

Editor’s Note: This article was revised on 4 September, 2012, to include a statement from the BFC made following the article’s original publication. An earlier version of this article also misstated that Harold Tillman has served as chairman of the British Fashion Council since 2006. He has not. Mr. Tillman was appointed chairman in 2008.

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BoF Loves our Community

NEW YORK, United States — On Tuesday evening, fashion creatives, executives, and entrepreneurs from all over the world joined me and the BoF team to celebrate our 5th Anniversary with a birthday bash at the Hotel Americano, co-hosted by Phillip Lim and Julie Gilhart. To be surrounded by so many of our friends and supporters who have helped BoF become what it is today was a very special occasion indeed.

So, to mark this important milestone in our short history, we decided to ask members of the BoF community gathered in New York, and hundreds of thousands of others following us Twitter and Tumblr, to answer one simple question: “WHY DO YOU LOVE WORKING IN THE BUSINESS OF FASHION?”

Given that it was Valentine’s Day, perhaps it’s not surprising that it turned into a bit of a BoF Love-in. Some guests interpreted the question as “WHY DO YOU LOVE THE BUSINESS OF FASHION,” which was just fine with us!

Here’s what we we learned from our amazing community — including Prabal Gurung, Tory Burch, Fern Mallis, Natalie Massenet, Susie Bubble, Waris Ahluwalia, Caroline Issa, Peter Som, and Paula Reed.

ZALDY GOCO, Fashion Designer 
I love working in The Business of Fashion because it gives me the “Freedom to dream”

I love working in The Business of Fashion because “Freedom to dream”

BRITT ABOUTALEB AND JOHN JANNUZZI, Online Editors Elle.com and LuckyMag.com
“Elle loves BoF” and “Lucky loves BoF”

CREATURES OF THE WIND, Designers
Shane Gabier (L): “CoTW loves The Business of Fashion because the pictures in my mind can become a reality”
Christopher Peters (R): I love working in The Business of Fashion because “it’s the only thing I can do.”

CAROLINE ISSA, Publisher, Tank Magazine
I love working in The Business of Fashion because of “The clothes! The designers! The magazines!!!”

PHILLIP LIM, Designer
I love working in The Business of Fashion “for the love of it…”

VIKRAM KANSARA, Managing Editor, BoF
I love working in The Business of Fashion because “BoF is the best in fashion!”

FERN MALLIS, New York Fashion Week legend
I love working in The Business of Fashion because “Fashion is the business of dreams”

JULIE GILHART, Fashion Consultant
I love working in The Business of Fashion because “Cuz get to work with Imran @BoF”

MONIKA BIELSKYTE (SOME/THINGS), Editor and Photographer, SOME/THINGS
I The Business of Fashion…it’s “The only blog we read”

NATALIE MASSENET, Digital Entrepeneur, Net-a-Porter Group
I love working in The Business of Fashion for “The love of.it:”

PAULA REED, Style Director, Grazia Magazine
I love working in The Business of Fashion because “I love to rock a look!”

PRABAL GURUNG, Designer
I love The Business of Fashion because “…it makes sense.”

RACHEL DODES, Editor, Wall Street Journal
I love working in The Business of Fashion because “Beautiful clothes inspire me to be a better person. I know it sounds ridiculous, but it’s true!”

SIMON COLLINS, Dean of Fashion, Parsons The New School
I love working in The Business of Fashion because “Imran is The Business of Fashion and at Parsons New School we love BoF. Happy Valentines day!”

SUSIE BUBBLE, Fashion blogger
I love working in The Business of Fashion because “I don’t want to be naked”

TORY BURCH, Designer and CEO
“I love working in The Business of Fashion because it is The Business of Fashion!!”

WARIS AHLUWALIA, Designer
I love working in The Business of Fashion because “…”

PETER SOM, Designer
“I love BoF!”

CANNON HODGE (BERGDORF) AND ERICA DOMESEK (PS I MADE THIS), Online editors
“PS: Be our Valentine BoF!”

Thank you very much to the Hotel Americano and Belvedere vodka for generously supporting our celebration. Next Monday, the #BoFLOVE Party comes to London Fashion Week!

The post Celebrating 5 Years of The Business of Fashion appeared first on BoF - The Business of Fashion.

John Galliano | Source: The Creator Blog

PARIS, France – The process of writing this season’s wrap-up left a somewhat bitter taste in my mouth. Looking back, several of the most salient themes from this round of fashion weeks involve unsavoury behaviour, gossip and highly unprofessional comments from some of the industry’s most important figures.

Whether it was John Galliano’s inexcusable anti-Semitic rant captured on video for the whole world to watch, the scrum of increasingly aggressive street style photographers hunting editors down like game before the shows, or the distasteful comments made by Patrick Thomas, chief executive of Hermès, regarding the stake built up in its business by LVMH, it seemed everywhere you looked this fashion week members of the industry were behaving badly.

With all the whispering, gossiping and backbiting going on, it’s surprising that anyone even noticed the clothes. So, let’s start with the clothes then!

1. OUTERWEAR EVERYWHERE AND A FEW FASHION PRINTS

http://www.youtube.com/watch?v=-udYeuQGWs8

Outerwear was everywhere this season, reflecting a growing understanding amongst designers that coats, jackets, parkas and ponchos get lots of wear and are the first statement of individual style, and therefore deliver a big bang for the consumer buck. Joseph Altuzarra, Alexander Wang, and Burberry’s Christopher Bailey were amongst the designers at the vanguard of this outerwear moment.

Thakoon showed one of the best collections of the season in a gilded hall at New York’s Plaza Hotel, with stunning contrasts of mismatched prints inspired by Masai tribes. It felt like we were in Paris, which I guess was the point as the collection also looked to French aristocracy for visual cues. The offsite location stood out from the increasingly chaotic spaces at Lincoln Center and Milk Studios. Ambience and atmosphere count for a lot when you’re trying to create a mood and put on a real show. Bravo Mr. Panichgul.

Rodarte and Proenza Schouler also delivered stellar collections, demonstrating the continued evolution of their own special design signatures. Proenza Schouler’s Navajo knits and prints were a knock-out, while Rodarte showed their second consecutive highly creative collection which one could actually envision hanging on a retail rail – and selling.

Although there were some great fashion moments in London, overall, the week was not as strong as usual. One notable exception was Mary Katrantzou, whose signature digital prints delivered massive runway impact in a tightly focused collection that for the first time expanded to new categories like knitwear, a smart way to expand her offering beyond dresses.

Jonathan Saunders’ collection of colour-blocking (and the surprise introduction of menswear!) proved he is definitely now back on firm footing in London after a hiccup during the seasons he spent in New York. And, Giles Deacon put out a focused fetishist collection that showed his more serious, sombre side. Indeed, for many an editor, his was the best show of London Fashion Week, and that hasn’t been something we’ve heard for awhile.

Ann Demeulemeester’s show in Paris was a beautiful vision of primal female warriors. Lanvin was gorgeous, as usual. Céline showed off the on-going evolution of Phoebe Philo’s “new minimalism,” with a more graphic and colourful show. And Rick Owens brought a kind of couture quality to his singular dark aesthetic of carefully constructed clothes.

2. THINK BEFORE WE TWEET

It seemed like just another fashion month, and then, with the high-profile meltdown of John Galliano, everything changed in a matter of hours. Soon, the fashion gossip mill was in a frenzy, turbocharged by Twitter which made the whole situation more ugly as the days went by and speculation about Galliano’s successor intensified after he was first suspended, and ultimately dismissed by LVMH.

A tweet by Derek Blasberg from backstage at the Katy Perry concert in Paris, citing an anonymous source which ‘confirmed’ the widespread rumour that Riccardo Tisci would be named Galliano’s successor set off further speculation on websites and blogs, who sometimes took Mr. Blasberg’s comments as though they had come straight from an official Dior press release. I found at least one website that took the Tisci rumour and reported it as fact, without any mention of the source at all.

But Mr. Galliano wasn’t alone. Rumours about the futures of Stefano Pilati, Hannah McGibbon, and Christophe Decarnin dogged designers and lit up the internet throughout Paris Fashion Week, creating a virtual feeding frenzy of immense proportions. We were an industry feeding on ourselves.

So dear fellow members of the fashion Twitterati, let’s think before we tweet. Careers and businesses can be impacted by what may seem like an innocent bit of speculation on Twitter, but can quickly turn into boldfaced headlines on major fashion websites, a hugely destabilising force at the most critical moments during the fashion calendar. We are all still learning how to use this powerful tool responsibly.

3. STREETSTYLE PAPARAZZI

[vimeo]http://vimeo.com/20330359[/vimeo]

Over the past few seasons, the number of photographers outside the shows has ballooned as interest in street style photography (and street style stardom) has soared. It’s been an amazing phenomenon to observe as many previously behind-the-scenes women such as Yasmin Sewell, Caroline Issa and Taylor Tomasi now provide inspiration to hundreds of thousands of fashion lovers around the world, appearing in outfits that are often more interesting than what is on the runway.

But the rapid rise of street photography also has a darker side. The ‘bloggers walk’ in the Jardin des Tuileries, site of many major Paris shows, is now completely out of control. Indeed, it’s become increasingly difficult to tell the difference between the aggressive paparazzi who stalk Hollywood celebrities outside bars and clubs and a few of the bad apples amongst the hordes of photographers that accost editors as they come in and out of shows.

Several street style bloggers told me confidentially that the competition is extremely fierce for getting the best photographs, which can then be sold on to global editions of Vogue and Harper’s Bazaar each for as little as $200, but up to $1000 or more.

Word to the wise: if you build a relationship with the women you’d like to photograph, and treat them with a bit of respect, you’ll be much more likely to get a great shot where they look their best and aren’t running to avoid you. Chasing them around, getting in their way, and coaxing them to come out of their cars is a sure fire way of alienating the objects of your fancy.

The best streetstyle photographers are streetsmart and dashing figures who build passionate online followings for these fashion personalities through the power of their photos. They compose beautiful shots that are flattering to their subjects and still interesting enough to spark a conversation, reflected in the hundreds and hundreds of people who chime in to say what they think. And most of all, they are gentlemen (or gentlewomen.)

4. CONSUMER PARTICIPATION

New York Fashion Week | Source: Fabsugar

While there has been a general trend towards smaller shows and presentations, PR professionals tell me they have been dealing with unprecedented demand for seats, making allocations more and more difficult. At Céline, many senior editors from the UK were forced to stand and more than one front-row blogger complained to me about not having access to Givenchy or YSL.

But alongside the growing number of requests from traditional media, major retail outlets, boutiques, online retailers, bloggers, and social media managers, more and more consumers are no longer content to simply watch the livestream at home. They too want to attend the shows in person and be part of the action, a trend which was most apparent in New York.

For several seasons, American Express has been inviting its cardmembers to attend shows in its Skybox at the tents, but these attendees have been somewhat removed from view: observing as opposed to participating in the show environment.

In contrast, at the Jason Wu show, I was seated next to a section allocated to Nordstrom, which had chosen to give away most of its seats to top clients who had flown in specially for the event from across the country. Indeed, department store buyers told me the pressure to find seats for top consumers is “enormous.” If a woman spends more than $1m in a store, she has come to expect VIP treatment.

The enthusiastic ladies at the Jason Wu show asked me questions about what I did and were eager to learn about the fashion personalities in the front row. It was a refreshing conversation with people who were truly curious about fashion as a culture. That the clothes on the runway weren’t available to buy for several months was apparently not a concern.

5. IMMEDIACY VS. EXCLUSIVITY

Moda Operandi screenshot | Source: Moda Operandi

Other businesses were attempting to satisfy growing consumer interest in fashion week through pre-orders. Burberry and Proenza Schouler have been offering direct buying from the runway for a few seasons now. But this time around, there was a lot of buzz about Moda Operandi, the new fashion e-commerce business founded by Lauren Santo Domingo and my friend and former McKinsey colleague Aslaug Magnusdottir.

Their offering of high-profile flash sales of the latest runway collections from some of the industry’s most celebrated designers certainly had people talking. Having coined the term “pretail,” the Moda Operandi founders have also cleverly suggested that the insights gleaned from their sales will help brands to merchandise their stores and work with other wholesalers, knowing what styles are most popular based on real consumer data. And, because they take a 50 percent deposit on all purchases in advance, the business operates with a positive cash flow model similar to the one that made Michael Dell’s company famously successful. In the approximately 6 months between payment and delivery, Moda Operandi can use the deposits paid by consumers to finance the working capital costs of running its business, and also giving a much-needed deposit to designers, who can also benefit from upfront cashflow to finance production.

But relying on this kind of financial model also creates other restrictions. When a consumer pays for things on Moda Operandi, they can never get their cash back. According to the terms and conditions, returns are only possible for apparel and footwear products, and even then, only for store credit. Everything else is not returnable. Some women I spoke to weren’t deterred by this, and had already excitedly logged on to the website to shop, but others were bothered by having to take all the financial risk to buy clothes on Moda Operandi. Why not wait, they asked, for the clothes to arrive in store if they would have to wait 6 months for delivery anyway?

Meanwhile Tom Ford, in his usual contrarian approach, has defied the trend towards fashion immediacy and severely limited access to his collections, going so far as to having journalists sworn to secrecy and sign non-disclosure agreements about his presentation in London. Is Mr. Ford taking fashion a bit too seriously? Or, has he found a brilliant way to drum up even more interest in his clothes as they hit stores in a few months time by orchestrating a fashion media crescendo at the same time. Only time will tell.

One other website of note this season is my-wardrobe.com which has just had its first major facelift under former Grazia editor Fiona Mcintosh who joined as creative director in February. Naturally, there are flourishes of Grazia in the yellow highlighted design and snappy copy, a smart way to deliver on the company’s new everyday luxury strategy, fueled by a recent £6m investment injection from Balderton Capital.

Grazia of course is one of the most powerful sales tools for women’s fashion of the moment. Designers frequently tell me that if their designs are featured in Grazia, they sell out everywhere. As a weekly magazine featuring things that are in store now, I’ve always wondered why Bauer Media has not created an online version of its magazine to at least earn affiliate revenue for all the products it manages to sell, if not set up a full-fledged e-commerce site. It seems like a very big missed opportunity that my-wardrobe.com is now going after.

6. JUST NATALIE

Natalie Massenet and Jeremy Langmead | Source: Net a Porter

In an industry that has been named and shamed this season, there is at least one individual that is setting a good example.

Since our Fashion Pioneers interview last summer, Natalie Massenet has continued her ascent to the top of fashion’s tech elite, not by acting like a grand poobah but by focusing on building her business. Whereas so many in our industry can get complacent or become tyrants (or both!) once they are firmly ensconced in the front row, Natalie is the kind of leader who cancels a trip to New York Fashion Week to hunker down with the Mr Porter team in the days leading up to its widely anticipated launch.

The results show in her team. When they are in public, they show a stylish united front and in private they don’t backbite about each other. At work, they are professional and responsive, and show up when they say they will. If they are going to be late, they send an apology. They say thank you, and they care about the details too.

Net-a-Porter’s success is often attributed to its high quality content. But as the company builds new businesses, it is the seamless back-end operations which pick, pack and ship hundreds of thousands of fashion products and deliver them to 170 countries around the world that make a big difference. This has enabled the company to quickly launch two new businesses – The Outnet and Mr Porter –  in less than 24 months.

The lynchpin for all of this is the positive role model and force for innovation that Natalie represents in our industry. It’s no wonder that to many in the industry, she is now just ‘Natalie’ and that she has become a positive face for the fashion business to the rest of the business community and the wider world at a time when the industry has been tainted. Hers is an example we can all follow.

Imran Amed is founder and editor of The Business of Fashion

The post Autumn/Winter 2011 – The Season That Was appeared first on BoF - The Business of Fashion.

Why Fashion’s Top Brands Are Flocking to Tumblr (Mashable)
“According to Tumblr… approximately 180 of the top 1,000 Tumblr blogs are fashion-related. And fashion-related Tumblr posts are reblogged on a much greater scale than general Tumblr posts… suggesting that ‘there’s a huge capacity for fashion content to go viral on Tumblr.’”

Manish Arora Confirmed as Paco Rabanne Creative Director (Fashionologie)
“Manish Arora is the new creative director of Paco Rabanne, and will show his first collection for the label in October during Paris Fashion Week — for Spring 2012. He will also continue his colorful signature collection, which is also shown in Paris but sells mostly in his native India.”

Barneys’ New Chief Explains Those Changes (On the Runway)
“Mr. Lee stressed that his mission for the luxury retailer was to make it surprising and dynamic. ‘But,’ he added, ‘there’s never going to be a day when we say ‘ta-da’ and drop the curtain.’ The changes will be a work-in-progress over the next few years, he said.”

Arnault offers olive branch to Hermès (Reuters)
“Arnault struck a conciliatory note on Friday, arguing LVMH was best positioned to ensure the long-term survival of Hermès’ culture and business. ‘We can bring them a number of advantages both strategically and operationally without anything in return other than our presence as a shareholder.’”

Lunch with Natalie Massenet (FT)
“Net-a-Porter looks a lot like a glossy online fashion magazine but Mr Porter is largely black and white; more tabloid in tone; more vertically oriented; and features real men, role models who can also be style models, such as actor Steve McQueen and hotelier Andre Balazs, as well as lists of “essentials” every man needs.”

The post Fashion flocks to Tumblr, Arora at Paco Rabanne, Barneys’ talks change, Arnault’s olive branch, Lunch with Massenet appeared first on BoF - The Business of Fashion.

Fashion Crowdsourcing Panel at DLD (DLD Conference)
“The Fashion Panel was all about the use of crowdsourcing for fashion brands. Vanessa Friedman moderated the talk with Natalie Massenet from the online luxury fashion retailer Net-A-Porter, who shortly before won the Aenne Burda Award, the Creative Adviser of H&M, Margareta van den Bosch and Scott Galloway, Professor of Marketing at NYU. The main discussion focussed on whether the customers still want strong curators or prefer bringing in their own ideas and designs.”

Mad Men! Romancing the Suit (IHT)
“In tailored suits and noble coats, a whole new generation is finding an antidote to casual sportswear. It is as if the cast of ‘Mad Men,’ the cult television series based on a New York advertising office in the 1960s, had migrated to the men’s shows and been re-branded for the 21st century.”

Couture Isn’t So Dead, After All (Fashionologie)
“How many articles have been written heralding the imminent death of couture? But after Alexander McQueen reported that its custom order business is profitable last week, executives across the board seem optimistic about the state of couture.”

Prada Said to Decide on IPO (Bloomberg)
“Prada, the Italian fashion company that has scrapped initial public offerings four times in 11 years, may decide to proceed with an IPO by the end of the month… An announcement could follow as early as February.”

Berlin’s fashion scene struts into the future (The Local)
“Berlin is seen as the up and coming place for new designers, this is the second Fashion Week that we’ve been to and you can see that it’s progressed even since last year… Things are growing here from season to season.”

The post The crowdsourcing debate, Suits in Paris, Couture alive and well, Prada to decide on IPO, Berlin Fashion Week wrap-up appeared first on BoF - The Business of Fashion.

The BoF community looks on at Fashion Pioneers with Natalie Massenet | Photo: Lawrence Randall

LONDON, United Kingdom — It’s been quite the year for the BoF team. In January, we will celebrate our 4th birthday, having seen BoF grow from a passion project created from the sofa in my living room to a growing global community of like-minded fashion professionals that is BoF today.

We are grateful for all of the support our community has shown us over the past 12 months, from the success of our sold-out Fashion Pioneers series to the rapidly growing numbers of you who come to us every day for opinionated fashion business analysis and a highly-curated point of view on the day’s news. We now have over 150,000 followers on Twitter, 2,000 fans on Facebook and growing follower base on our new Tumblr page. We are honoured and grateful that so many of you take the time to engage and interact with us on a daily basis, in so many ways.

The international media has also been paying attention to the power and reach of our community, from the International Herald Tribune to Vogue Italia to The Evening Standard. Canada’s Macleans Magazine called BoF “The Economist of Fashion,” the Daily Telegraph included BoF in their round-up of “Britain’s Best Fashion Bloggers” and just this month British GQ gave us a little surprise for 2011 (check out number 92). What an honour and a great way to start the new year!

None of this would be possible without you, the global community of executives, designers, editors, students, academics, investors and supporters who have made BoF their daily must-read on the fashion business. We’re going to take a break over the holidays, but in the meantime here’s a look back to the articles and stories which fired up your interest and passions this past year. Thank you again for your continued support.

Happy holidays, happy new year, and see you in 2011!

1. In Tokyo, Abercrombie Misses Its Mark

Abercrombie & Fitch, Ginza | Source: Fashionsnap.com

When BoF’s W. David Marx filed his report on the new Abercrombie & Fitch store in Tokyo’s Ginza district earlier this year, calling the American fashion brand out for its culturally insensitive approach to international expansion, the fashion blogosphere lit up with conversation about the new store. Commenters on BoF joined in large numbers, describing their own experiences — positive and negative — at the brand’s Tokyo emporium and providing insider scoops on the brand’s bungled retail strategy in Japan.

2. BoF Exclusive | The New Creative Establishment 2010

The New Creative Establishment | Source: INDUSTRIE Magazine

Possibly the most controversial article of 2010 was our exclusive preview of The New Creative Establishment created by our friends at INDUSTRIE magazine. The preview rocketed to the top of our Most Read Articles list right away and has firmly held its position for more than a month. Lists like these always spark some kind of controversy, but the uproar about this one was heard in fashion quarters around the world, and indeed on all of the major fashion websites from Grazia Daily to Style.com. Who deserved to be on the list? Who didn’t? Who was missed? Are these kinds of lists constructive contributions to the fashion dialogue or just a way for a new magazine to get attention and flatter would-be collaborators? You decide.

3. Fashion 2.0 | What The Independent Article Didn’t Tell Us

Tavi Gevinson's Bow at Dior Couture | Source: Twitpic by SteffiSchuetze

Back in February when The Independent newspaper contacted several respected bloggers for comment on an article about the growing influence and questionable ethics of some fashion bloggers, BoF was more than happy to provide some thoughts. However, when the article was published quoting only editors from major magazines, we published our own article, to give the other side of the story.

4. Fashion 2.0 | Top 10 Fashion Films of the Season

Our twice-a-year rundowns of the top fashion films of the season continue to be very popular. Fred Butler’s Sunshowers film topped our ranking of fashion films in the Spring while Gareth Pugh’s tour de force film shown in Paris’ Bercy stadium grabbed the top spot in the Autumn ranking. If you have some time over the holiday break, sit back and enjoy these curated selections of fashion’s finest films.

5. BoF Exclusive | Zaldy Goco talks about designing for Michael Jackson and Lady Gaga

Michael Jackson by Zaldy | Source: Zaldy Goco

Michael Jackson’s untimely death right before he was about to kick off a 50 concert series in London shocked the world.  Not only did BoF get the global exclusive scoop from designer Zaldy Goco on the costumes he had designed for the King of Pop, but we also got his take on working with Lady Gaga, whose impact on fashion in 2010 was absolutely huge.

6. Fashion 2.0 | Suzy Menkes on the Growing Influence of Fashion Blogs

In early in 2010 Suzy Menkes issued a warning to bloggers about the risk of becoming mouthpieces for fashion brands, many of whom seem to be looking to manipulate bloggers into publishing what some consider to be nothing more than brand propaganda. Ever the pragmatist, Ms Menkes also realises that the growing impact and relevance of blogs and other social media is here to stay. She told Mary Scherpe of Stil in Berlin, “the world changed when fashion instead of being a monologue, became a conversation. And that’s never going to stop.”

7. Fashion 2.0 | The Fashionable Rise of Tumblr

Tumblr Screenshots | Source: Google Images

Tumblr is the latest social media platform to take the fashion industry by storm. Vikram Alexei Kansara’s round-up on the rise of fashion tumbling elicited a huge response amongst the Tumblr community and resulted in BoF being invited to become an editor on the official Tumblr fashion channel. BoF has also launched it’s own Tumblr to participate in this passionate community.

8. Fashion Pioneers | Jefferson Hack, Natalie Massenet and Nick Knight

Our series of in-depth, one-on-one interviews with fashion’s most inspiring pioneers have been extremely popular on BoF and have spread around the internet like wildfire. If you missed our interviews during the year, take the chance to listen to these pioneering fashion forces speak about the future of fashion:

Jefferson Hack on Fashion Media in The Era of Digital Beauty

Natalie Massenet Says to Create the Future, Follow the Consumer

Nick Knight Says Heart and Mind are the Key to Fashion Imagemaking

9. How Influential are the New Fashion Youth?

Much has been said about the increasing influence of young fashion bloggers, empowered with digital media and their own creativity. Indeed, today’s internet-empowered youth have the tools, access and information to create and promote their own fashion culture. Our exploration of the ‘new fashion youth’ demonstrated how this kind of online showcase may create opportunities for long-term careers in the fashion industry.

10. It’s Time Fashion Schools Got Down to Business

Thomas Tait’s Sketchbook | Source: Thomas Tait

Rounding out the top ten articles of the year on BoF was an opinion piece highlighting the lack of business training and preparation given to young fashion designers at fashion schools the world over. The article does not advocate upseting “the unique and delicate creative climates that have been carefully constructed at the world’s leading fashion colleges,” but “building some basic business training into the core fashion curriculum would be a very good thing indeed.”

Imran Amed is founder and editor of The Business of Fashion

The post The Best of BoF | Top 10 Articles of 2010 appeared first on BoF - The Business of Fashion.