Victoria's Secret Fashion Show 2011 | Source: Victoria's Secret

NEW YORK, United States — In recent years, the main fashion weeks in New York, London, Milan and Paris have attracted unprecedented interest from end consumers, with brands live streaming their shows and bloggers reporting from the runway in realtime on their sites and social channels like Twitter and Instagram. But in most cases, the actual clothes showcased during fashion week aren’t available to consumers until many months after the shows have finished.

In short, fashion’s communication cycle has become wildly out of sync with its retail cycle. Would the film industry ever hold a movie premiere 6 months ahead of its release to the public? Would Apple make its buzzy product announcements a half-year before said products were available for sale?

By shortening lead times, planning production in advance, and using other lean manufacturing techniques, fashion brands may be able to get product to consumers more quickly. But these kinds of structural changes could take years to implement, especially as many fashion brands do not control the means of production.

One solution has been to let consumers order — but not receive — products immediately after the shows. Mega-brands like Burberry have offered pre-ordering for several seasons now, while a number of mid-sized and emerging brands have collaborated with ‘pre-tail’ trunk-show start-up Moda Operandi to do the same. But market reports suggest that the sales volume of pre-orders has been limited. There are only so many consumers who are willing to plonk down money in advance to guarantee they will get a specific garment in their size months later. Most consumers still seem to prefer to purchase in-season, close to the time of need.

So if enabling consumers to pre-order clothes is not the ideal solution, why not engage consumers just before the collections arrive in store? Based on the evidence of blowout events from Victoria’s Secret and H&M for Versace in New York earlier this month, consumer appetite for this kind of engagement, and the impact it has on sales, seem very promising indeed.

… Continue Reading

Albert Kriemler of Akris | Source: Estilo Moda

The Discreet Charm of Akris (WSJ)
“Perhaps it is Kriemler’s understated, reluctant approach to anything overt or loud—fashionable or otherwise—that attracts women as powerful and talented as Condoleezza Rice, Angelina Jolie, Susan Sarandon and Nicole Kidman to his clothes… Kriemler works extensively with artisans from Akris’s hometown of St. Gallen. The town is renown in the business for its skilled craftsmanship in linen, cotton and embroidered fabrics, and has long been a focus for fashion houses including Chanel, Marc Jacobs and Giorgio Armani. Akris has proper form and heritage, too.”

World’s Biggest Fashion Brands Invest in The Fancy (BetaBeat)
“The Fancy, one of the consumer facing projects under the thingd umbrella, has secured a $10 million round of financing at a valuation north of $100 million. Interestingly, the big bucks don’t come from a typical venture investor, but from a new lead investor PPR, the $16 billion French multi-national run by Francois Henri-Pinault, which owns the globe’s biggest fashion brands… The Fancy is about visual discovery and has become a natural home for fashion brands, which see a high level of engagement from tastemakers around their goods.”

Richemont cautious after H1 beats expectations (Reuters)
“Richemont, the maker of Cartier jewelry and Jaeger-LeCoultre watches, struck a cautious note for the luxury goods industry outlook as growth rates are starting to ease from the strong performance seen in its first half. Between April and September, sales at the world’s second biggest luxury goods group jumped 36 percent at constant exchange rates and October sales were up 26 percent, in a sign consumers could be turning more hesitant about treating themselves to pricey timepieces.”

Nordstrom full year profit outlook below St view (Reuters)
“Upscale department store operator Nordstrom Inc did not raise the upper end of its full year profit forecast even as it reported a jump in sales and profit in the third quarter, and its shares fell more than 3 percent… The department store chain said it now expects fiscal 2011 sales at stores open at least one year to rise about 6 percent, up from an earlier range of 4 to 6 percent.”

Versace: What’s the bright idea? (Independent)
“‘Iconic pieces for young people – the essence of Versace’ is how Donatella Versace describes her collection for H&M… H&M’s link-ups with some of fashion’s biggest names began in a blaze of publicity in 2004 with Karl Lagerfeld – and that sold out in a matter of hours. Its creator – who starred in the accompanying advertising campaign – has since said the experience was responsible for making him a household name.”

Brioni Autumn/Winter 2011 | Source: Luxos

PPR set to buy men’s wear brand Brioni (FT)
“PPR, the French luxury goods group, has confirmed it will acquire Brioni, the Italian high end men’s wear group that has dressed Vladimir Putin and the fictional character James Bond in several movie outings. In a statement on Tuesday, PPR said it would be buying 100 per cent of the family owned group for an undisclosed sum… PPR is reorienting and expanding its business in two segments: luxury, which includes Gucci, Yves Saint Laurent and Bottega Veneta; and lifestyle, which consists mainly of a majority stake in Puma, the German sportswear company.”

H&M Sets Versace Goddesses of High Fashion to Low Prices: Retail (Bloomberg)
“Hennes & Mauritz AB, the world’s second-largest clothing retailer, next week starts selling apparel and accessories designed by Gianni Versace SpA, including floor-length ‘goddess’ gowns, dresses dotted with Grecian buttons and fluorescent micro-minis. The Versace for H&M line, the latest partnership between the Swedish retailer and a luxury designer that boasts high fashion at low prices, will give the Italian label ‘global visibility’ as it targets sales of about $700 million by 2014, Versace Chief Executive Officer Gian Giacomo Ferraris said.”

Hugo Boss ups 2015 targets on Chinese growth (Reuters)
“German fashion house Hugo Boss sharply raised its earnings outlook for 2015 on Tuesday as it increases its network of stores and eyes strong growth from China. The group… Said it now expects sales of 3 billion euros ($4.1 billion) in 2015, and earnings before interest, tax, depreciation, amortization and special items (EBITDA) of 750 million. That compares with a previous target for sales of 2.5 billion and core earnings of 500 million euros. Hugo Boss said it expected sales in Asia to almost triple by 2015 compared with 2010, mainly thanks to China.”

Upcoming Zappos iPad App Mimics a Fashion Magazine (All Things Digital)
“The new black this fall: Retailers producing content alongside their products, like an online version of a glossy fashion magazine. Zappos expects to launch its first attempt at recreating the catalog experience on the iPad in early December, just in time for the holidays… Instead of being generally available in iTunes, the Zappos app will be found on Apple’s Newsstand, which organizes magazine and newspaper subscriptions for those who use iOS 5. It will be free; a new edition will appear monthly.”

Alber Elbaz wants dramatic fashion (Belfast Telegraph)
“Alber Elbaz has announced plans to ‘bring back real drama’ to the fashion industry. The Lanvin designer staged a presentation of his Spring/Summer 12 collection at Carondelet House in Los Angeles recently. He’s already put on a similar event in Paris and explained he’s keen to get people interested in style again. ‘Geoffrey Beene told me that fashion is not show business, it’s just business,’ he said. ‘These days there are too many reality shows, and I watch many of them, but I am trying to bring back real drama to fashion.’”

L-R Altuzarra, Prabul Gurung, Alexander Wang | Source: Style.com

You Can See Spring Coming (NY Times)
“Mr. Wang is a boy disguised as a designer — or maybe it’s the other way around — but whatever the case, he doesn’t want to grow up, and the clothes naturally follow that youthful spirit… Prabal Gurung’s show on Saturday had a pronounced erotic undercurrent that in its blunt use of violet, and the transparent hems of silk print dresses, owed something to the style last season of Riccardo Tisci of Givenchy.”

Fashion week: The ordinary people who stole the show (BBC News)
“Many people might not have heard of Tavi Gevinson, Scott Schuman, Susie Bubble and Bryanboy but they are household names to dedicated followers of fashion. All four are big players in the blogging revolution that has turned the fashion world on its head… But bloggers have been chipping away at the mainstream media as more and more people want to hear about fashion from people who apply it to everyday life.”

Where Fashion Gazes at Itself (NY Times)
“Tumblr, founded four years ago, has reached out to the fashion community in a way no other social networking site has. For the second time, it has brought users to New York Fashion Week as reporters, paying for their trips and giving them access to the shows. Their coverage is being posted on a dedicated channel, tumblr.com/NYFW, made up of posts from 20 bloggers picked by Tumblr’s staff, along with contributions from magazines that have their own Tumblrs.”

Versace sees revenue up in 2012 on H&M and Versus (Forbes)
“Italian top fashion house Versace is expecting higher revenues in 2012 after launching a collection for Swedish retailer Hennes & Mauritz this year and revamping its Versus second line…The company draws most of revenues from its top Versace line, but it launched a “Young Versace” line for kids and bought back its Versus licence this year to boost sales and profitability after starting a deep restructuring in 2009.”

Luxury: the next generation (FT)
“One of the more astonishing success stories of the past century has been the evolution of luxury retailing, from small-scale family firms to an international, multi-billion dollar industry… Yet, as the modern industry struggles to reconcile its artisanal heritage with today’s public offerings and quarterly reports, it is the personal, family connection that bridges the gap.”

Versace Jeans Couture | Source: Denim Therapy

Why Versace is putting workers’ health before style (Independent)
“Italy’s style capital has become the unlikely focus of a battle to save some of the world’s poorest textile…Versace… Announced that it was throwing its weight behind a campaign to end sandblasting – a manual process used to produce trendy worn-look denim – but which campaigners claim destroys workers’ lungs.”

‘Luxury funds’ are in vogue (JoongAng Daily)
“…’Luxury’ mutual funds, a category that invests in makers of high-end brands, are posting sky-high returns, far outperforming all other mutual funds…Performances were on the back of explosive growth in high-end brands’ stock values, as the luxury market exploits unquenchable thirst for its goods in developing markets.”

In Hangzhou Luxury Market, “The More Expensive, The More Popular” (Jing Daily)
“… Sales of luxury goods reached nearly 900 million yuan (US$140 million) in the first half of the year. This marks a 25 percent increase in growth… Hangzhou is notable for the speed at which its residents have become more brand-savvy, a trend that has attracted most of the world’s largest luxury brands to launch boutiques there since 2005.”

A Return to Tying the Knot (WSJ)
“After years spent languishing in the evening-wear department, bow ties are finding favor with a new audience—a younger generation… Tailors say the recent boom has had a trickle-down effect, fueling sales of traditional menswear styles.”

Royal Wedding: face to face with The Frock (Telegraph)
“… Before its launch tomorrow, the event has caused a sensation. Latest figures for advanced sales to this Royal Collection exhibition are 107 per cent up on last year with 125,751 tickets sold… Capacity will be 643,000, but slots are selling out with lightning speed, drawn by the allure of The Frock.”