Is Digital Killing the Luxury Brand? (Adweek)
“Just a few years back, most high-end fashion brands distrusted all things digital. Their fear was understandable. Digital is democratizing; it’s about accessibility. The brand image for high-end fashion is all about inaccessibility: Keep the masses out so that the people who can afford to buy their way in feel they’re exceptional.”

Don’t Look Back or Ahead (NY Times)
“‘There is so much pressure in the business to be something or not to be something, people dictating what I should be or do next, that you can get drunk on all the voices,’ said Mr. Panichgul, 36. ‘I don’t want to be just a product of the hype, being categorized as ‘Michelle Obama’s designer.’ So what I’ve learned to do is to focus on what’s in front of me right now, on what I’m doing today and not tomorrow, where I am now.”

Eyes on the prizes (FT)
“‘The market was severely affected by the September 11 attacks: designers had lost their show venues and everything was at a standstill,’ says Steven Kolb, the chief executive of the Council of Fashion Designers of America (CFDA)… As a result, Kolb, along with the editor-in-chief of American Vogue, Anna Wintour, decided something needed to be done, and in 2003 the CFDA/Vogue Fashion Fund, an award for globally expanding designers with at least two years’ domestic business experience, was born.”

S Korea luxury: beyond the obvious (FT)
“Korea is still a good place for fashion houses – luxury sales have been up about 12 per cent each year since 2006 – but they must adapt to changing trends. Intriguingly, several luxury goods makers note Korean culture is becoming so hip around Asia and beyond thanks to TV dramas and music, that they need a strong foothold in Seoul to identify trends that could spread from there.”

Bright future: Louise Gray (Independent)
“In London, there is currently a vogue for the work of young Scottish fashion designers – with Christopher Kane, Jonathan Saunders and Louise Gray leading the charge… After graduating in April 2007, Gray almost immediately became involved with Fashion East – Lulu Kennedy’s 10-year-old initiative, which provides financial and business support for emerging designers.”

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

Click here to view the embedded video.

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

Derek Blasberg Tweet | Source: Twitter

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

Click here to view the embedded video.

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

Webisode sneak peek of Thakoon Pre-Fall 2011

NEW YORK, United States — The landscape of fashion communication and commerce continues to change radically, and not just for big brand innovators like Burberry and Louis Vuitton. For a whole generation of formerly “emerging” designers — including Proenza Schouler, Alexander Wang and Thakoon Panichgul — digital innovation is now a central part of their strategies for taking their businesses to the next level.

On Thursday at the Independent Fashion Bloggers conference — part of Social Media Week here in New York — I interviewed Jack McCollough and Lazaro Hernandez of Proenza Schouler, who told a rapt audience of more than 200 fashion bloggers how social media is dramatically changing the way they think about the way they work, the way they sell and the way they communicate with consumers, driving sales and interest in their brand amongst a younger, tech-savvy consumer.

Following a return to form at his A/W 2011 show on Saturday, the ever energetic Alexander Wang is opening his first flagship store here in New York this week, but is also making substantial investments in his online presence, with a revamped website and online store to open later this year. “We see digital as fundamental to our development as a brand, and one of the most powerful ways for us to connect with our customers,” said Dennis Wang, the designer’s brother and CPO.

Big digital moves are also being made by Thakoon Panichgul, the Thai-American designer who became a household name to consumers around the world when Michelle Obama wore a floral print dress he designed on the evening Barack Obama accepted the 2008 Democratic Nomination, and as one of the stars of The September Issue, the popular film chronicling Anna Wintour’s reign as Editor-in-Chief of American Vogue.

Today, Panichgul confidently explains to BoF how the brand new Thakoon.com will bring his brand straight to consumers, bypassing those once uber-powerful magazines with direct communication initiatives like the brand new Thakoon Studio Diary blog, a consolidated social media landing page, and video webisodes showing life behind-the-scenes at Thakoon.

BoF: At our BoF Breakfast Club meeting late last year, you expressed some frustration at the state of digital in fashion. Is that why you are now taking matters into your own hands and leading the charge?

Thakoon: Yes, in part. I want us to speak a little louder and have more control of what we are saying in the digital world, as opposed just having an audience that justs chats about the brand. I think the frustration also came out of a little lack of understanding on my part; but now that I’m really in it and understand it, I’m totally excited by it and enjoy taking part in the community.

BoF: The initiatives planned for Thakoon.com include big investments in content, commerce and community initiatives. How will the new Thakoon.com help drive the business?

Thakoon: Thakoon.com will allow us to communicate our message to a global audience.  For us it is more about branding and letting our customer know who we are as opposed to showcasing product.  We want to allow visitors to make a personal connection with the brand.  There is so much character behind a brand that gets lost in translation when going through the traditional channels of designer to retailer to consumer.  There is value in this character…it is our DNA.  We want to show our customer what we find so special about our brand.

BoF: How will you measure success?

We will measure our success by how well we stimulate and engage our consumer with our content.  Our main objective is to increase brand awareness, so this increased awareness will be a true measure of the success of the initiative.

BoF: You will be revealing a series of video ‘webisodes’ on your new website beginning today showing what happens behind the scenes in your studio. But some people say that having cameras around all the time leads people to feel like they have to ‘perform’. How do you keep things real, knowing that you are constantly being watched?

Thakoon: We are in such rapid growth mode, so there is so much happening all the time that I’m focused on the job in front of me that I don’t even notice the camera. Also the camera is super tiny and the filming is very casual so that makes it easier. We don’t have a boom and a crew with lights so there’s no performance necessary. The way we are documenting is much more intimate, spontaneous.

BoF: Will viewers be able to participate or is this purely a voyeuristic experience?

Thakoon: I think it will evolve naturally, like anything. It’s totally new for us that we will figure out what is interesting and what’s not over time. But I believe in the organic process, doing things as it comes because it has to be genuine. So anything that we do voyeuristically or if we ask for audience participation, all of that will come if it makes sense.

BoF: Your e-commerce site is due to launch in the summer. Is the entire Thakoon product range available to buy online?

Thakoon: For now, we will not make the entire range available. Our philosophy has always been slow and steady. We want to start slowly, offering a selection of what we feel are key pieces.

BoF: The new Thakoon.com is being billed as the “first stage of the company’s new media initiative.” What’s to come?

Thakoon: I think of it as a new platform where we can really play. Obviously it would be exciting to do ad campaigns, but in time. For now, this new platform really gives us so many opportunities, because you have control, you have a voice, you have a great audience. It’s a new way of marketing, which is totally exciting. The sky’s the limit.

Thakoon.com launches today with a livestream of Thakoon’s A/W 2011 show at 6pm EST.

Louis Vuitton Facebook Page | Source: Facebook

Why Some Of The World’s Biggest Brands Still Don’t Get Facebook (Forbes)
“Just because a brand has big marketing prowess or is known globally doesn’t necessarily mean it’s active or even gets social media–namely Facebook, that is.”

Luxury Brands Hobbled By Poor Management (Jing Daily)
“As major luxury brands continue their march into China’s second- and third-tier cities in an attempt to tap increasing spending power, many companies are finding their progress in these markets stymied by a management ‘talent shortage.’”

Stella McCartney’s Russian return a boutique affair (Reuters)
“The comeback, via a partnership with TSUM, was more subdued than the grand opening of McCartney’s own store in 2007, which closed after only 18 months when the financial crisis halted Russia’s seemingly insatiable demand for expensive clothes.”

Top brands reconsider India strategy (Fashion United)
“Some top international fashion and lifestyle brands which exited the Indian market during the economic downturn are returning to India, albeit with revised business strategies, more suited to the Indian environment.”

One-on-one with fashion designer Thakoon Panichgul (Globe and Mail)
“The fashion arena is verging on overload when it comes to ambitious young designers with a point of view and a passion to succeed. But every once in a while, one does manage to break through the din of excess and not only get noticed by those who matter, but woo the world with a sartorial sensibility that’s both arresting and right for the times.”

BoF Breakfast Club at Norwood Club | Photo: Drew Innis

NEW YORK, United States — When I first met Rachel Shechtman at a Harvard Business School luxury goods conference back in 2007, we quickly learned that we had much in common. Since then, we have made a point of meeting for breakfast to catch-up and discuss the state of the industry whenever work brings me to New York City.

It got us to thinking. With the non-stop madness of the fashion business, many of us don’t make the time or have the energy to sit back, think about and discuss the changes which are happening all around us. More than ever, we need to have honest discussions about the brave new world of fashion.  There is much we can learn from each other. Why not open our breakfast catch-up sessions to like-minded peers and colleagues from the industry? And thus, the BoF Breakfast Club was born.

Last Thursday in New York, designers and CEOs of established and emerging fashion businesses — Shirley Cook of Proenza Schouler, Maria Borromeo and Thakoon Panichgul of Thakoon, Charles Nolan, Bonnie Takhar of Halston, Waris Ahulwalia, Brian Murphy of Loeffler Randall, Courtney and Phillip Crangi, Elana Posner of Peter Som, Michael Angel, Susan Posen of Zac Posen and others — gathered for an intimate, off-the-record conversation on the future of fashion at the Norwood Club.

The wide-ranging discussion delved into the broken fashion cycle and new business models like subscription retailing and pre-sale trunk show sites, before moving onto the growing need for digital competencies in the world of instant fashion communication. We are grateful for all of those who took the time to join us and contribute to our salon style conversation — by all accounts, it was well worth the time invested which bodes well for more BoF Breakfast Clubs of the future.

Thank you to Rachel Shechtman of Cube Ventures for hosting the event and to Drew Innis for his photography which accurately captured the relaxed mood and open spirit of the first BoF Breakfast Club

Online fashion sales figures continue to grow

Online clothing sales rise 32% in January (Drapers)
“Online spending rose 19% in January, according to the IMRG Capgemini e-Retail Sales Index, with clothing and accessories sales online soaring by 32%.”

Traditional Retailers Return Dismal Online Search Results (Seeking Alpha)
Compared to e-commerce sites, “brick-and-mortar retailers – despite a slight increase in search presence over the past three years – consistently have the weakest performance of every group.”

Sir Philip Green unveils US plans for Topshop (Drapers)
Sir Philip Green plans to open up to 15 US Flagships of Topshop in the United States.

Thakoon Dabbles in Fur, Tailored Luxe (WSJ)
This was supposed to be a season of austerity, but fur has made a prominent appearance at Thakoon’s show.

Thakoon on Target, Recessionista Fashions and Dressing Michelle Obama (WSJ)
Thakoon has “copied” looks from his main line for a limited edition collection with Target.

The New Bling in this Economy (WSJ)
 ”Diamonds may be forever but in this economy, faux and semiprecious stones may be for now.”

Economy Loses 533,000 Jobs (WWD)
In the US, November’s 533,000 job losses, was the “steepest monthly fall since 1974 and a major hit to the most important underpinning for consumer spending.”

Do retail discounts work? (Just Style)
Steep shopping discounts this holiday season could do some damage to the retail business.

Thakoon s/s ’09, photo courtesy of Thakoon.

NEW YORK, United States – New York already has the reputation of being the most commercial of the fashion capitals, but this New York Fashion Week has taken that stereotype to new levels. With economic uncertainty swirling through the city (Lehman Brothers is the latest Wall Street Bank whose future is in question) and footfall at department stores dropping precipitously, the mantra of the week seems to have been ‘Play it Safe!”

Over and over again this week, young designers have told me that the big buyers are sticking to proven silhouettes in basic colours, veering away from the fashion items. While the basics and staples of designer collections will always be important part of the product assortment, it seems to me that precisely because times are so tough, buyers should be making an effort to give consumers a reason to buy. And, that is not accomplished with a series of little black dresses.

To meet the expectations of buyers, many designers here also seemed to play it safe (even more than usual), delivering collections which verged on the boring.

Luckily, there were some more interesting options on offer, to keep consumers and savvy buyers more interested. Natalie Massenet, for example, raved about the jumpsuits at Thakoon and Proenza Schouler. There were also some beautiful and interesting silhouettes at Oscar de la Renta’s stunning show (where J-Lo made a front row appearance), keeping the ladies who lunch on their toes.

Speaking of which, perhaps the most inventive and creative duo in New York is Rodarte, who showed at the Gagosian Gallery in an unconventional seating arrangement, with shoes made of electrical wire and inspired by Star Wars’ C3P0.

As this New York season winds down (there were almost 250 fashion shows to be taken in an ever-expanding New York schedule), I am looking forward to the creative energy of London, where safety is a four-letter word. Then again, London has a long way to go in creating the same kind of energy around emerging fashion businesses as is found in New York. Perhaps a fusion of the two would be ideal.

London Fashion Week begins on Sunday.

Photos courtesy of Style.com and Coutorture.com.