Th Fashion Olympics

Stella McCartney

Christopher Shannon, Michael Van Der Ham and Nasir Mazhar produced 350 costumes for the London 2012 Olympics Opening Ceremony, worn by  dancers in a section of the show representing the "present and future of the extraordinary influence of British creatives in the world of youth culture".

The Olympic Games 2012 is all set to become yet another fashion week of sorts, with big designers like Stella McCartney, Ralph Lauren, Prada, Hermès and Salvatore Ferragamo designing clothes for their national teams. Italian fashion giant Giorgio Armani, who has designed Italian Olympic team’s official kit, under its sportswear Emporio Armani EA7 has happily said that London 2012 would be “the most fashionable Olympic Games ever”. The Italian sailing team on the other hand will don clothes courtesy Prada.

Athletes aren’t the only ones who will be looking stylish this summer: a horde of brands have opened stores in London to celebrate the Games. Victoria's Secret opened its debut UK store in the Westfield Centre in London's Stratford this week. H&M opened two sporting-inspired boutiques in Covent Garden and the Westfield Centre in Stratford. Liberty opened its first store in the Westfield Centre in Stratford; while Opening Ceremony celebrated its debut London retail outlet last week, the same week as Chanel opened its debut UK standalone beauty shop.

Ralph Lauren Gets Lashed Out

ralphlauren.com

Ralph Lauren received a big lash out from lawmakers and observers in the media after ABC News reported in its night broadcast that the 2012 U.S. Olympic team’s uniforms were actually made in China.

Topped with embroidered cotton twill berets, men will don double-breasted blue blazers, along with white trousers and red, white and blue neckties. Women will wear single-breasted blazers and the berets, with patriotic striped scarves and either white skirts or dresses.

Senate Majority Leader Harry Reid ripped into the company, proposing that the U.S. Olympic Committee “put the uniforms in a big pile and burn them and start all over again.” In a rare moment of bipartisan consensus, House Speaker John Boehner also expressed disappointment. “You’d think they’d know better,” he said. Tthe designer in question has been strangely quiet about the outsourcing and about the criticism of his design.

But now the company has released this statement:

“For more than 45 years Ralph Lauren has built a brand that embodies the best of American quality and design rooted in the rich heritage of our country. We are honored to continue our longstanding relationship with the United States Olympic Committee in the 2014 Olympic Games by serving as an Official Outfitter of the US Olympic and Paralympic teams.

Ralph Lauren promises to lead the conversation within our industry and our government addressing the issue of increasing manufacturing in the United States and has committed to producing the Opening and Closing ceremony Team USA uniforms in the United States that will be worn for the 2014 Olympic Games.”

Qatari royal family buys Italian fashion house Valentino

Iconic Italian fashion house Valentino has been snapped up by the Qatari royal family for 700 million euros , marking one of the most prominent purchases of a European top designer brand by an emerging market investor.

Valentino said Mayhoola for Investments S.P.C, which is backed by a leading Quatari investor, had acquired full ownership of Valentino Fashion Group SpA from London-based private equity fund Permira and Italian textile entrepreneurs Marzotto.

Valentino did not disclose financial details of the sale nor name the investor. But two sources close to the deal told Reuters the Quatari royal family had acquired Valentino in a deal that values it about 700 million euros.

Valentino is the latest Italian luxury brand to be bought by a foreign investor, a sign of the resilience of the sector even as Italy sinks into a deep recession.

reference: reuters

Alaia to Open Flagship Store

Azzedine Alaia will open a flagship store in the heart of the French luxury retail world — ie Avenue Montaigne — next spring, the designer revealed recently with a certain amount of glee.

It’s a five-floor hotel particulier with an interior courtyard/garden that will function as store/showroom/some offices — and it’s not exactly on Avenue Montaigne. The Maison will be Alaia’s first outpost since Jacqueline Schnabel closed the New York boutique in 1992, and as such is a testament to the growth of the brand over the last few years. Despite the fact Alaia doesn’t advertise and has no on-line presence, Barneys more than doubled its Alaia space last year, the designer is working on private orders at capacity, and it’s one of the few labels that has the power to refuse exclusivity to any store; they sell to both Harrod’s and Harvey Nichols, for example.

Though M Alaia has been close to many fellow designers, he has expressed well-publicised skepticism about the corporate side of the business. The Maison, due to open in late March of 2013, is in the process of being renovated. 

Burberry Fall/Winter 2012-13

Gabriella Wilde and Roo Panes for Burberry

English brand Burberry releases its latest Fall/Winter 2012-13 campaign starring models Gabriella Wilde and Roo Panes via a dozen different social networking sites, complete with video, and a song.

Burberry’s Autumn-Winter campaign celebrates once again the brand’s Britishness – the identity of the label has been tangled with London and the British tradition for more than a hundred years. It’s not just simple photos though. The campaign set in the Royal Naval College in Greenwich, with creative direction by Christopher Bailey and shot by Mario Testino, includes multimedia video content in black and white with short cinematic films to be unveiled on-line and off-line during the season.

"We wanted to play with everything that’s at the heart of the Burberry world” explained Bailey “Celebrating our brand and London through imagery, film, music, weather and our iconic outerwear all in a very poetic and British way".

Dolce & Gabbana Invades Brasil

Dolce & Gabbana in Brasil

Dolce & Gabbana invades Saỡ Paulo with its boutique featuring: mirrors, black walnut wood, red and plum velvet, baroque lamps.

The first Dolce & Gabbana store in Brazil is within JK Iguatemi shopping mall and covers an area of 670 square metres on one floor hosting menswear, womenswear as well as more exclusive areas such as the Vanity Room and the Black Tie Room which is dedicated to the brand new Dolce & Gabbana Jewellery collection.

China's Economic Slowdown

China Experiencing an economic decline | gettyimages

Shoppers visiting mainland China have cut back on purchases of luxury goods   dragging Hong Kong’s retail-sales growth to the weakest pace since 2009.

The slowdown of Asia’s biggest economy is felt throughout Hong Kong, which had record retail-sales gains as recently as last year. In  Macau, the center for Chinese gamblers, a report this week showed that casino revenue was below estimates in June, clouding the outlook for companies including Sands China Ltd.

“The consumption appetite of mainland visitors has dropped compared with last year because of the economic slowdown,” said Raymond Yeung, a Hong Kong-based economist at Australia Banking Group Ltd. "The data is a “warning sign for Hong Kong retailers.”

 “It’s just simple logic that if you have less tourists coming in to buy gold, to buy diamonds, then you would see quite a significantly bad retail-sales figure,” said Lily Lo, a Hong Kong-based economist at DBS Group Holdings Ltd.

reference:bloomberg.com

Schiaparelli's Rebirth

Diego Della Valle of Tod’s | luxuryinsider

“I am not a reincarnation of Elsa Schiaparelli, but I am very proud to be an ambassador of this house,” said Farida Khelfa as she opened the gilded doors to the vivid interior of the apartment on the Place Vendôme — the very place where the original designer, known as “Schiap,” showed surreal collections in the 1930s.

Diego Della Valle of Tod’s is behind the rebirth of the house of Schiaparelli and is still searching for the right designer to give new life into the brand and ultimately create goods to sell.

Farida, as the cinéaste, stresses the importance of Schiap’s legacy. “I see her as a very strong woman for her time — and so in advance that she worked in fashion with artists nearly a century ago,” she says.

Nobody is thinking that the brand will be a new couture house but rather a home for special pieces, made to order and one of a kind.

“We need a house like this today,” Farida says. “Couture is changing. We need a touch of luxury and really interesting work.”

reference:nytimes

Dolce and Gabanna Couture

D and G's couture "test run" | huffingtonpost

Dolce & Gabbana will be showing its first ever couture collection to a group of clients in Taormina, Sicily on July 9th.

The unveiling will take place far from the fashion media. The choice is strategic, for a number of reasons:

1. It maintains the very exclusive, private allure of the couture;

2. It allows Dolce & Gabbana to avoid the stringent requirements the French couture world imposes on any brand that wants to call itself a full-fledged couture house;

3.  It gives them a chance to launch their first collection free of critics.

Apparently select few — three— media outlets are being invited to the unveiling.A source at the brand simply says the designers have been interested in exploring this area for awhile — the old “artistic challenge” line. 

Haute Couture Revival

Dior

At present  haute couture is the most modern way to dress because it's very individual," says Pier Paolo Piccioli, who with Maria Grazia Chiuri designs Valentino's ethereal gowns. "It's like customizing your life; it means uniqueness."

The current state of couture has emerged from the ashes of economic turmoil. "Couture seems more relevant now than it was in the boom years," says designer Donatella Versace, who this season returned Atelier Versace to the official couture runway after eight years of low-key presentations. "The global downturn has made people think about the value of things. Couture may be expensive, but as a reflection of the designer's art, and as an expression of pure creativity in fashion, it is unsurpassed."

This evokes a culture very different from that of traditional haute couture: wealthy socialites in grand dresses from designers such as Jeanne Lanvin and Christian Dior. For many years, that's certainly what it was. Now, they stand in stark contrast to the discreet shopper of today, it's difficult to find women who so openly display their membership to the couture club.

Couture seemed to hit rock bottom in the middle of the last decade, when Christian Lacroix, Yves Saint Laurent, Emanuel Ungaro, and Balmain all showed their last collections. For the labels that remained, couture became a way to stand out amid the clutter of hundreds of ready-to-wear lines. For the likes of Dior, Valentino, and Chanel—which all typically reserved a sky's-the-limit budget both for dramatic staging and the collections themselves.

As haute couture undergoes the process of revival once more, its insular and quintessentially Parisian nature is changing. Perhaps it's only fitting for what appears to be couture's ever more global future.

reference: WSJ

Axel Dumas to Head Hermes

Axel Dumas the next boss of Hermes|nytimes.com

PARIS— Cementing its grip from larger foe LVMH, the founding family of luxury-goods maker Hermès International SCA named a member of its sixth generation to become chief executive next year,.

Hermès, the 175-year-old maker of equestrian-themed silk scarves, horse saddles and Kelly bags, said Axel Dumas, the 42-year-old chief operating officer, will take over from Chief Executive Patrick Thomas, who will be 65 in a few weeks.

The change in administration returns the pedals of the company to the family, which in 2010 had a backseat position before the unfolding drama with LVMH.

The first nonfamily member to run Hermès, Mr. Thomas, who was boss since 2006, steered the company through its standoff with LVMH. Yet the avuncular boss was seen the family as a surrogate member of the clan.

The younger Mr. Dumas emerged as the most likely successor to Mr. Thomas over the past year, since he was named chief operating officer. The dark-haired manager, who started his career as a banker in New York and China, entered the family business in 2003, working in various divisions, such as jewelry and leather goods.

"I am glad a member of the Hermès family has been brought in to succeed me," Mr. Thomas said in a prepared statement.

Hermes Counterfeit Ring

At least a dozen people were arrested by French police as part of the dismantling of an international crime ring which produced fake Hermès bags while Two Hermès employees have been released as a result of the probe; however the luxury goods company considers that present members of staff could also be concerned.

Police discovered a workshop filled with precious leather skins and estimated that one branch operated by the crime ring contained sales worth around €18 million.

The bags were found to be manufactured in France and apparently disseminated through distribution channels in the US, Europe and Asia, with one branch of the ring’s sales estimated to be worth $22 million alone. 

"This operation concludes a one-year investigation following an Hermès complaint based on clues and abnormal behaviour identified through the house's internal monitoring systems," Hermès said in a statement.

Hermès chief executive officer Patrick Thomas recently estimated that eighty per cent of objects sold on the internet under the Hermès name are fakes, a statistic he branded "an absolute disgrace".

reference: WWD

Yves Saint Laurent to be Rebranded

Hedi Slimane for Saint Laurent Paris

Yves Saint Laurent has confirmed they will drop the 'Yves' from their name

The fashion house will be rebranded Saint Laurent Paris, though the iconic YSL logo will still be the same. This shift is not completely new, majority of luxury fashion houses go by a singular surname - Versace, Gucci, Chanel, Prada and many more.

Newly-appointed creative director Hedi Slimane is eager to "thrust Saint Laurent into a new era modern", and feels taking out the founder of the brand's first name from the famous moniker is the way forward.

Slimane, when he was appointed - the former creative director of Dior Homme - was given "total creative responsibility for the brand image and all its collections" and is said to be "recapturing the impulses that inspired the founder to launch the Saint Laurent Rive Gauche ready-to-wear line in 1966 - among them youth, freedom and modernity."

Gucci Employees "Tortured"

reuters.com

Employees of luxury brand, Gucci were subjected to "torture", standing for 14 hours a day, paying for stolen goods and forced to asking for toilet breaks.

Allegations of questionable management at a Gucci outlet within Shenzhen, has led to two managers’ replacement.

"It was a kind of torture for us to stand for more than 14 hours a day," the letter detailed. "No short rest, water or food was allowed even for a pregnant employee.” claimed in the open letter by workers at the Gucci outlet.

Severity of the ill-treatment led to claim of some workers experiencing miscarriages as a result.

Accusations against Gucci having overtime pay withdrawn are also ongoing. Five signatories claimed their managers, whom left the company, refused to give the thousands of dollars in unpaid wages of overtime, in spite of holding them in the outlet up until 2am, several nights to make stock controls. When luxury goods were stolen the staff had to cover for their replacement despite thefts being enclosed by insurance, the letter said.

A Gucci representative said: "Gucci has proactively engaged external consultants to conduct a comprehensive review to support ongoing actions that can enhance our organizational structure, the welfare and training of our people, talent recruitment and retention and other business practices in China."

The claims against Gucci come at a background of workplace abuse and poor working conditions. Foxconn, the group that creates components for Apple's iPhone, suffered a chain of suicides amongst employees thought to be related to poor working conditions.

reference: telegraph.uk

Luxury Brand Revival

belstaff.com

Paris,France — A new business trend phenomenon in the fashion industry: major luxury groups appear to prefer reviving fashion houses that has placed its roots, rather than setting up new brands.

LVMH chairman Bernard Arnault obtained the rights to Moynat known for its leather bags  and began to rouse the fashion label from its extensive hibernation, for the past three decades the brand was dormant.

Berluti, a French men’s shoe company established in 1895 by an Italian cobbler. LVMH acquired the luxury brand in 1993. But formerly this year, at men’s fashion week, while shoes were still at the heart of the collection, latest designer Alessandro Sartori, previously for Zegna, expanded the brand into a completely foreign area to the Berluti heritage, including tailored garments and leather coats and suits.

Harry Slatkin, Reinhard Mieck,
and Tommy Hilfiger

Then there’s the case of Belstaff, which was acquired by Labelux, in copperation with Tommy Hilfiger and Harry Slatkin. Founded in 1924 in Longton and known for its tied at the waist water repellent fabrics and signature four-pocket jacket, the label has all the right ingredients to threaten established British heritage brands like Burberry. At London Fashion Week, Belstaff relaunched with an Autumn/Winter 2012 collection by Martin Cooper, former design director for Burberry, where he worked for more than 16 years.

The reopening of the Elsa Schiaparelli, the fashion house founded by the designer with the same name, who was born in Rome and who later moved to Paris, ceasing activity in 1954. The brand, purchased in 2007 by Diego Della Valle, will be opened during the famous party organized by Anna Wintour, editor of American Vogue.

Courrèges significant influence in fashion history was in 1961, with innovative and forward minded designs that were later known as the fashion cosmic or atomic era, due to the space-age style. With a profitable performance of the brand of €20 million last year, plus expanding its distribution in London, New York and Milan, and opening an e-commerce site. In addition they will relaunch the fragrance Empreinte and Eau de Courrèges as an advertising strategy, followed by a new line of shoes, bags and sunglasses.

With the recent moves, that gave fresh personalities to aged luxury goods labels, prompts a critical question: given that obtaining the rights and getting top design talent come with major costs, why not launch new fashion brands? Why not invest in a young designer? About a decade ago, Gucci did just that, launching Alexander McQueen and Stella McCartney. But at present, these cases are tremendously rare and financial support is more likely to pour towards fashion brands with a history. Why?

The answer lies with: authenticity. In an age of rapid globalization and fast paced fashion, when street vendors sell instant copies of the latest runway trends and designer collaborations abound with cheap-chic chains, consumers hunger after what is authentic. And an authentic history cannot be faked.

“As reality is qualified, altered and commercialized, consumers respond to what is engaging, personal, memorable — and above all, authentic.” argued James Gilmore and Joseph Pine.

And when the key item that distinguishes one luxury brand from another, is the narrative behind it, buying a prosperous history that’s ripe for revival is much easier than building a new one. It’s authenticity that’s hardest to capture.

references: fashion.walla.co.il, d.repubblica.it

Global Economy Ousts Luxury Goods Executives

Spring cleaning in boardrooms and ateliers are ongoing for European Luxury-goods makers.New Presidents, Chief Executive Officers, Chief Financial Officers and Creative Directors started at European companies, including Mulberry Group, and PPR, in the first quarter alone.

“Companie sare reorganizing for the next growth cycle,” said Giovanna Brambilla, a partner at Value Search in Milan. “If they’re not convinced of having the best leaders, they’re changing generals.”

Luxury companies are looking for new talent and ideas as they compete with a slowing economy in China and a cut in high-end spending by Europeans.

LVMH Moet Hennessy, Louis Vuitton, the world’s major luxury-goods maker, selected Sebastian Suhl, credited with motivating competitor Prada Group’s expansion in the Asia Pacific region, as CEO of Givenchy fashion and leather goods brand.

A good number of appointments come from within the same company. Mulberry, the Somerset, England-based maker of Cookie Lily leather handbags,poached Bruno Guillon from Hermes to be CEO, while Louis Vuitton shuffled at least four executives, including Michael Burke from Fendi  to head up Bulgari.

Industry experience hasn’t proved necessary. Gucci, hired Jean-Marc Duplaix as Chief Financial Officer in January. Louis Vuitton raided Danone,for the future CEO of its Vuitton fashion and accessories brand: Jordi Constans tied in September and will succeed present CEO, Yves Carcelle in 2013.

“Theonly criterion that guided us was of course to find the best possible manager for the job,” Louis Vuitton Chairman and CEO Bernard Arnault said on February.

No radical step is on the prospect when it comes to designing the clothes and accessories.The world of creative directors “is often a bit of a club,” said Brambilla.

Jil Sander’s artistic director position for Christian Dior Couture was replaced by Raf Simons, by the fashion label’s namesake founder in February.

Major brands aren’t ready to take risks with unproven designers given the finances concerned and the impact collections have on a brand’s image, said Patricia Lindo,managing director of London-based recruiter Style Incorporated.

“They’re too big a beast to bring in someone fresh and young unless they’ve worked with the creative before and grown up through the ranks,” she said, citing Sarah Burton, creative director at Alexander McQueen, as an instance of in-house talent that has been advanced to the top of the fashion line. “It’s such a risk to bring in someone who hasn’t had that track record.”

references:businessweek.com,bloomberg.com