Cartier Panther | Source: Cartier

Richemont reveals recovery in demand (FT)
“Richemont, the world’s second-biggest luxury goods group, on Monday reinforced signs of a recovery in demand for expensive watches, jewellery and accessories with Christmas sales well ahead of expectations.”

Hopes for 2010 fashion recovery at Milan menswear (Reuters)
“Many executives and designers at Milan’s menswear shows said they were looking ahead with guarded optimism. ‘We are seeing positive signals. The [sales] haemorrhage seen at the end of 2008 and in the first half of 2009 has stopped,’ said Gianluca Brozzetti, chief executive of fashion house Roberto Cavalli.”

It’s 50 percent off…Well, maybe 35 percent (WSJ)
“Restricted shopping Web sites—which pitch steep markdowns on designer goods to its members for brief time periods—are soaring, growing by more than 400% last year … But there are complaints that some of these sites… are relying on an old sleight-of-hand: inflating retail prices to make their discounts larger than they really are.”

Russian appetite for bling put to the test (FT)
“As Russia’s oligarchs flirted with bankruptcy following the collapse of the stock market in 2008-2009, gallery owners, fashion labels, super-yacht brokers and Swiss watchmakers all held their breath.”

Tom Ford: Immaculate Conception (Telegraph)
“Tom Ford, Gucci saviour and one-man superbrand, has written, produced and directed his first film. Already an Oscar frontrunner, if A Single Man can be criticised for anything it is for being too beautiful – music to the ears of fashion’s most fabulous perfectionist.”

Johann Rupert, CEO Richemont Group | Source: Connectingwatches

Rupert ready to resume the helm at Richemont (FT)
“Johann Rupert said yesterday that he would retake the helm as chief executive of Richemont from April, indicating that the world’s second-largest luxury goods group still expected storms ahead.”

Style bloggers take centre stage (FT)
“Also on the front row… sits a slender, less familiar figure dressed in grey T-shirt, jewelled necklace and tuxedo jacket. Meet Bryan Grey-Yambao, known as Bryanboy to the 215,000 unique users who visit his eponymous blog each day (British Vogue magazine, by comparison, sells just over 200,000 copies a month.)”

Tom Ford’s new focus (The National)
“From his single-handed revitalisation of Gucci to his innovative approach to the aesthetics of cinema, Tom Ford is a man of many accomplishments. However, his greatest achievement may be a much more personal reinvention.”

One step ahead: Prada the world’s most influential fashion label (Independent)
“From simple nylon rucksacks to willfully challenging shoes, one label has always been at fashion’s cutting edge. And that’s to say nothing of the yachts, architecture, art patronage…”

Fashion forward (Business Standard)
“For Singh, fashion is a minuscule part of a larger, more dynamic, and meaningful, world of design. He says, ‘I want to do products that are the very best. I want to achieve quality that one can say is great.’”

D&G Autumn/Winter 09 | Source: Dolce & Gabbana

‘Affordable Luxury’ Bucks the Crisis (NY Times)
“Tommy Hilfiger just opened a 22,000-square-foot store on Fifth Avenue in Manhattan, a move that, in this economy, some might call insane. But the Hilfiger line, like many midrange designer brands, is growing, while other labels, notably at the high end, are struggling to hang on to market share.”

Fighting Back Against Shoppers’ Guilt (WSJ)
“Guilt has always been part of the shopping experience. But retail executives say it has become such an overriding emotion among shoppers since the economic crisis set in last year that it is delaying the recovery of the luxury-goods industry.”

Tom Ford to design women’s wear (Independent)
“Ford, who previously designed women’s wear as creative director for Gucci, said that he and his business partner Domenico de Sole were currently on the lookout for financing, but that the new line was likely to launch next fall.”

Debt-laden Safilo agrees plan, new key shareholder (Reuters)
“Italian eyewear maker Safilo said Dutch shareholder Hal Investments would end up owning up to half the company under a 283 million euros ($424 million) recapitalisation plan.”

Now Unveiling Undercover’s Jun Takahashi (NY Times)
“Jun Takahashi, the Japanese designer behind the cult label Undercover, is as reclusive as he is recondite. In a rare interview, The Moment caught up with Takahashi after his recent Paris showroom presentation.”

London Fashion Week: Burberry (Telegraph)
“A shower of silver sequins rained down on 1,500 guests in a vast white tent in the grounds of the Chelsea College of Art & Design last night (Tuesday), creating a starry climax to the Burberry Prorsum show at London Fashion Week.”

Burberry Jumps After Ahrendts Says U.K. ‘On Fire’ (Bloomberg)
“Burberry Group Plc rose as much as 5.8 percent in London trading after Chief Executive Officer Angela Ahrendts said the clothing maker’s U.K. business has been “on fire” as demand for luxury goods improves.”

Tom Ford Seeking At Least $50 Million (PEHUB)
“Tom Ford International is on the hunt for financial backers, two sources familiar with the situation told peHUB. The New York-based fashion house entered the market within the past two weeks seeking a $50 million or greater investment, the sources said. Credit Suisse is managing the process.”

Luxury retailers see rents drop globally (CBC)
“Some 54 per cent of the 274 luxury retail strips covered under real estate consultancy Cushman Wakefield’s annual survey of retail rents dropped during the past year. Only in 18 places did rents increase this year.”

Clements Ribeiro say fashion in era of exuberance (Reuters)
“Design duo Clements Ribeiro, who have dressed Madonna and Nicole Kidman, believe fashion is experiencing a period of particular creativity and are beginning to look for investors for their label.”

Luxury’s cautious comeback in Calgary (Globe & Mail)
“Hermès is on the way in, upscale merchants are expanding – but that doesn’t mean it’s business as usual.”

International Leaders at the G20 Summit in London

Change in Bank Rules Lifts Stocks (NYT)
“Hopes that the worst days of the financial crisis are retreating lifted stock markets on Thursday after government leaders pledged huge new financial rescues and a regulatory group moved to rewrite financial regulations and accounting rules.”

Fast Retailing: Uniqlo Mar Same-Store Sales Up 7.9% Y/Y (WSJ)
According to the brand, “same-store sales at its domestic Uniqlo casual clothing store chain in March rose 7.9% on year, extending the string of on-year gains to five straight months.”

Just Cavalli May Extend License (WWD)
“Ittierre SpA may have secured the Just Cavalli license for another five years and perhaps its future as well.”(Subscription required)

Tom Ford Revamps Asian Operations (WWD)
“Tom Ford International has made changes to its Asia business, forming a new retail operation and ending its partnership with Lane Crawford in the region.” (Subscription required)

World’s first Sikh supermodel debuts in GQ fashion spread (Telegraph)
“A San Francisco businessman is set to become the world’s first Sikh supermodel after being picked to feature in top fashion magazines including GQ.”

Balmain S/S 09 ad campaign, courtesy of Balmain

LONDON, United Kingdom — If one wanted an indication that nothing is ever going to be the way it was in luxury, this was the week to watch.

Forget about Karl Lagerfeld’s paper accessories at the Chanel haute couture show (a gimmick if there ever were one.) Consider instead the dichotomy of two of the most interesting items in this week’s fashion news.

First, that Tom Ford is bringing out jeans with a $990 price tag in the midst of the credit crunch. Why so expensive? Well, they’re made from Japanese selvage denim, which means they won’t fade or shrink. And they have an 18-carat gold button. (Note to anyone tempted: Dior Homme has Japanese selvage jeans for $777, if you can live without the gold button).

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We are seriously enjoying these videos from the IHT Supreme Luxury Conference being held this week in Moscow. Suzy Menkes, while not a natural television interviewer, asks all the right questions and solicits some very interesting responses from her interviewees. Today she quizzes Tom Ford on his new label and asks Bernard Arnault about the impact of the credit crunch on the luxury industry.

Bernard Arnault, Chairman and CEO of LVMH

I was reading about the NexCen-Camuto acquisition of Shoe-Box and it got me to thinking about Tom Ford. Why, you ask? Because, unlike his tenure at Gucci where, as Fashion Inc points out, it was all about controlling everything, Tom has been using an innovative strategy similar to NexCen’s in building his eponymous business.

Nexcen (NEXC) believes that by focusing on developing the brand while outsourcing other activities to carefully chosen partners, they can capture outsize performance from their brand investments. It’s certainly not an easy proposition to "fix" brands like Bill Blass and Athlete’s Foot this way, but I have been intrigued by NexCen ever since I heard Craig Hoffman, an MD at NexCen, speak at the HBS Luxury Goods & Retail Conference earlier this year.

As I thought about it some more, Tom Ford’s model is not too different from this, i.e. control the critical branding and creative aspects, while carefully partnering with others to execute on the rest: distribution, production, and brand extension. 

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The Times of London: G-Force
Frida Giannini, the last remaining designer of the trio that was selected to replace Tom Ford at Gucci, is an advocate for Gucci without the sex. According to The Times, the results speak for themselves with a 16% increase in sales to over £1.5b – the highest in the company’s history.

The New York Times: The Murder on Ocean Drive
Gianni Versace, who was feted at a glamorous ballet last weekend in Milan, was murdered 10 years ago this month. Cathy Horyn gives us a behind-the-scenes take on that shocking week in Miami in 1997, showing a different side of Gianni’s replacement, his sister Donnatella.

The Wall Street Journal: Brooks Brothers tries hip line: Will it suit?
As a collaboration with Thom Browne and Brooks Brothers launches in stores, the masses will for the first time have access to Mr. Browne’s directional short-suit silhouette. The WSJ muses on the potential of the line, which while less expensive than his own astronomically-priced line, is still 30-40% more expensive that Brook Brothers normal price points.

Photoclip courtesy of the New York Times

That oft-ignored market for men’s luxury has been popping up on my radar screen a lot more often in the last few months. Up until now, men’s luxury spending has been dominated by expensive watches. But, as a generation of high net-worth men with a taste for modern design is growing up, more players are reaching out to meet their sophisticated needs in innovative ways.

It brings to mind a casual gathering of friends that took place in my kitchen on a recent Saturday evening. Over wine and cheese, I watched in awe as hedge fund managers, private equity investors and investment bankers from London’s burgeoning financial community were comparing, discussing and examining each other’s (expensive) watches in excruciating detail. Some were taking pride in the beautiful pearl dialfaces, others in the high-tech mechanics, and still others in having a Swiss watch brand that nobody else had heard of. Digits were exchanged. Prices were quoted. Statistics were cited. Still, it wasn’t so different from the groups of professional women I have seen cooing over their friend’s new Chloe bag. Could the same passion for those watches and handbags be transferred to cufflinks, tailor-made suits and high-tech men’s cosmetics?

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