Giorgio Armani Fall 2012 | Source: IHT

Military, Front and Center (IHT)
“Is it the bitter, battling winter following the Arab spring that has created a march of the military in men’s fashion? A soldierly influence was an undercurrent in the winter 2012 Milan men’s show, which closed Tuesday. The idea of smartening up and shaping up may be a response to Europe’s gloomy economic situation”

LVMH fund looks to stitch a deal with Fabindia (Business Standard)
“The last word in luxury is wooing the most marquee ethnic wear chain in India. L Capital Asia, the private equity arm of the world’s biggest luxury conglomerate, LVMH Group, is in discussion with Fabindia, to acquire a minority stake in the retailer.”

French luxury firms seeking Italian menswear – Armani (Reuters)
“French luxury groups are on the prowl for promising Italian menswear brands after France’s PPR bought Italian tailor Brioni this month, fashion doyen Giorgio Armani said on Tuesday adding that his business was not for sale.”

Organizers Settle Dispute Over Fashion Week Dates (On the Runway)
“Just as the men’s runway collections came to a close in Milan on Tuesday, organizers of the shows in New York and London announced that they have settled, for now, a dispute over the dates of the women’s runway shows planned this September. The New York and London collections will not overlap with those of Milan, as had been risked by a standoff between the cities over when the season should begin.”

What it takes to be a teenage editor-in-chief on the web (BBC News)
“Tavi Gevinson started her first blog ‘Style Rookie’ when she was 11. She was shopping at thrift stores, taking pictures of her outfits and writing about music, images and movies that inspired her… Now Tavi is 15 and has started her own web magazine for teenage girls, RookieMag.com, that counts 4 editors and 40 writers, illustrators and photographers.”

Savigny Luxury Index December 2011 | Source: Savigny Partners

LONDON, United Kingdom — While the luxury industry entered 2012 with an overall outlook that remain uncertain, the sector remained resilient.

Big news

• The Savigny Luxury Index (SLI) lost 2.6 percent in December, whilst the general market index MSCI gained 3 percent over the period.  The cause for this divergence was a temporary sell-off in luxury stocks in mid-December.  Two factors contributed to this: the Italian sovereign debt crisis prompting an exodus from Italy-based stocks and the finalisation of Hermès’ defensive structure, which sent its share price down 7 percent in the days following the announcement.

• Despite treacherous capital market conditions, Michael Kors’ listing in New York on 15^th December was a resounding success.  Kors sold more shares than expected, achieving a valuation of close to $4 billion, or 3.8x LTM sales.  Shares jumped 25 percent on their debut and have since climbed a further 8 percent.

• In contrast, the listing of Chinese jeweller Chow Tai Fook in Hong Kong on 9^th December was received with lukewarm interest, which may be attributable to high valuation expectations.

• A Swiss court ruled that Swatch Group can cut down deliveries of watch parts to third parties from next year.  This will create supply issues for a number of watch brands and has already prompted luxury groups such as PPR and LVMH to snap up small watch component manufacturers.

Hong Kong skyline | Source: Flick River

Across Asia, an Engine of Growth for Luxury Firms (IHT)
“Europe is struggling to contain a spiraling debt crisis, the U.S. economy is beset with high unemployment, and emerging Asian economies are growing less rapidly. But none of this is killing off Asian shoppers’ taste for luxury goods. Companies like Burberry, Hugo Boss and Prada have continued to strike an upbeat tone on Asia in recent weeks, despite the havoc that debt woes in the euro zone have wreaked on investor sentiment.”

Luxury giants battle it out in menswear (Reuters)
“Buoyant demand for luxury menswear, driven by China’s male-dominated market, has prompted big industry players such as LVMH and PPR to step up their investments in the fast-growing market. Consultancy Bain & Co estimates the luxury menswear market, which makes up 40 percent of the global market, is worth 180 billion euros ($240 billion) and growing at about 14 percent a year, nearly double that of luxury womenswear at 8 percent.”

Indian Fashion Expands Online (NY Times)
“Last June, the Web site Exclusively.in debuted in the United States with much fanfare. The concept seemed promising: Indians and Indophiles stateside could choose from a range of India-style clothing, art and home furnishings in a flash-sale format similar to Gilt.com’s… Now its founder and chief executive, Sunjay Guleria, is going back to the drawing board.”

Vogue’s New Archive Site Costs $1,575 for a Yearly Subscription (The Cut)
“Vogue’s much-hyped archive website goes live today, and as promised, it contains every single page from every issue dating back to the magazine’s American debut in 1892… However, accessing the archive is not quite so simple: For now, it’s only available via subscription through WGSN… And an individual subscription costs a whopping $1,575 per year.”

Mencyclopaedia: Oliver Spencer (Telegraph)
“Spencer, now 43 and this month pipped to the British Fashion Award for best menswear designer by Kim Jones (of Louis Vuitton), was born in Coventry and started in the rag-trade selling second hand clothes on Portobello Road… His eponymous label, started in 2002, is the downstairs to Favourbrook’s up.”

Savigny Luxury Index November 2011 | Source: Savigny Partners

LONDON, United Kingdom — As the luxury and fashion sector enters the critical holiday shopping period on the back of strong results for the first half of the year, there are growing signs that executives are worried about what the future holds for the luxury market in 2012.

Big news

• This has been another month of record results for the luxury sector, with Hermès, Richemont, Ferragamo, Burberry, Tiffany, Prada and Ports all posting outstanding numbers for their first half or third quarter period.  Buoyant growth in Asia continued to lift sales; Richemont in particular shone with revenues in the region soaring by 60 percent in its first half report.  Growth was also present in mature markets, notably in the USA where Burberry’s first half sales and Tiffany’s third quarter revenues rose by 25 percent and 17 percent respectively.  This was confirmed by recent news of a very strong Thanksgiving weekend, with US retail sales estimated at a record $52.4 billion.

• Yet worries are growing over 2012.  The global markets rebound which took place towards the end of November following news of concerted action to solve the eurozone debt crisis did not happen for the luxury sector, with our Savigny Luxury Index resuming its downward slide.  Some market participants have issued thinly veiled warnings over next year, notably Richemont and Tiffany (see below).  Retailers are keeping inventories low into the end-of-year season; we have heard reports of some of them asking leading fashion brands not to deliver too early, a shocking role-reversal mode.  Industry CEOs are hoping for the best but quietly making contingency plans.  Overall, the SLI has lost 4.9 percent over the month of November, compared to an increase of 1.8 percent in the MSCI general index.

• The long-rumoured acquisition of Italian tailor Brioni by PPR finally crystallised, evidencing the importance of the menswear segment for the sector’s growth expectations, especially in China.

… Continue Reading

Alexander McQueen Spring/Summer 2004 | Source: Fashionist

They Shoot Fashion, Don’t They? (Huffington Post)
“The fascination with the spectacle of fashion that McQueen (amongst other designers) brought to the catwalk arena lies at the purposeful core and messages of the exhibition. If one may doubt the intentions behind exhibiting clothes and photos related to the current phenomenon that is the catwalk fashion show, the clever irony of such a display is certainly not lost on those that see the mirroring value and critique of celebrity and glamour in the same way that Pollack or McQueen did.”

Sowind Reaps Fruit of Merger With PPR (NY Times)
“François-Henri Pinault’s PPR, the owner of a number of high-fashion brands including Gucci, Yves Saint Laurent and Alexander McQueen, increased its stake in the Sowind Group to 50.1 percent from 23 percent over the summer, gaining a controlling stake in the Swiss family-owned watchmaker group. For Sowind, which owns the high-end watch brands Girard-Perregaux and JeanRichard, the benefits of coming into the PPR fold were “huge” in terms of growth capacity and marketing.”

On the front row at the inaugural Tel Aviv Fashion Week (Telegraph)
“It was a scrum just when it seemed that the British journalists’ reflexive line-forming would be trounced by the natives’ more rambunctious approach, Dorit Bar Or, the designer of Pas Pour Toi, appeared… And ushered us past the bouncers…. You won’t find Miuccia Prada or even Christopher Kane pushing their own rails or haranguing journalists, however good-naturedly. Eventually, Israeli designers may learn to play the international game, but meantime, their way is far more entertaining.”

Dolce & Gabbana head back to court in tax evasion case (Telegraph)
“Italy’s equivalent of the Supreme Court in Milan has overturned a judge’s decision from April this year not to proceed with a trial, and to dismiss accusations against Domenico Dolce, Stefano Gabbana and five other defendants over alleged tax evasion offences totaling €416 million.”

Big Small Business: Maria Cornejo Talks Staying Small (Style.com)
“American Express’ Small Business Saturday (11/26), which returns for its second iteration this year to bring awareness (and hopefully, customers) to local businesses, may be the weekend’s best shopping bet… It’s important for me, for my own creativity, to have our own point of view in the whole market. Being a small business, you’re offering a different a point of view that hasn’t been offered everywhere else.”