Karl Who?... More Like, Haider Who? 23/11/10

Rumour has it, Karl Lagerfeld is already contemplating his successor at the house of Chanel. He has a contract for life, thank goodness, so it’s at his own discretion that he will select a suitable candidate to succeed his throne. ‘At the moment, I’d say it would be Haider Ackermann’, says Lagerfeld. The crowd goes wild. Ackermann currently resides in Belgium. He is of Colombian origin, and started his line in 2001. He has dressed Penelope Cruz, and Tilda Swinton and we have an inkling he’s about to get a whole lot more attention. For those of you not familiar with his designs, check out his latest collection here! Looks like there are some great things to come for this talented individual…

Image credit: 212dressingroom.com

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Hermes 3rd Quarter Results See Sales Up 31%... 11/11/10

We’ve said it before, and we’ll say it again: things are looking up for the luxury industry. All Hermes business sectors have indicated growth this quarter, and according to media representatives at Hermes, all major world markets have indicated growth also– excluding Japan, where sales dipped 1 per cent.

In Europe, sales rose 19 per cent during the third quarter, in the USA, by 23 per cent (the opening of the first Hermes store dedicated to men on Madison Avenue in NYC is perhaps largely responsible for this). Non-Japanese Asia demonstrated an astronomical 41 per cent increase in sales, to be expected given the company’s increased concentration in investment in the region– three new stores have opened in China since the beginning of the year. Other exciting initiatives have included the new Shang Xia brand.

It’s exciting to see Hermes doing so well, and we wonder if these reports of success will up the anti re: the recent controversy surrounding LVMH’s acquisition of Hermes shares. LVMH is still insisting it has no plans for a takeover, but regardless, has clearly made a solid investment. Hermes plans to maintain control of its operations and has motions in place to increase its distribution network. Its plan for sustaining its current growth, you ask? The answer lies in its creative designs and the vitality of its craftsmanship. Of course, as one of the world’s most iconic luxury fashion names, we are hardly surprised.

mage credit: hermesfan.com

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Christie's Announces Gucci Collector Initiative 10/11/10

Gucci Collector, an exciting initiative by Christie’s auction house, has reportedly received over 600 submissions from over 25 countries in its first nine months. The idea is to round up some of the spectacular Gucci pieces that have been treasured and passed down through families, or hunted down by vintage connoisseurs, over the past 90 years.

Owners have submitted photos of their pieces online at Gucci.com and christies.com, in order to receive auction estimates. Christie’s experts have been working tirelessly to appraise regular uploads from Gucci collectors all over the world, assessing pieces against Gucci’s own private archives to determine their value.

We think this is a wonderful opportunity to celebrate one of the most innovative and elegant brands in the luxury industry. In addition, the Gucci Collector initiative coincides with Gucci’s plan to open a museum in Florence, the birthplace of the Italian house, in celebration of its 90th anniversary. The museum plans to include rare pieces, acquired through the Christie’s collector service.

Over 30 of the most precious and unique items, including handbags and jewellery, will be featured in Christie’s upcoming annual Fashion Through the Ages sale on December 2, 2010. We can’t wait to see how they showcase Gucci’s evolution.

Image credit: Christie's Images Ltd. 2010

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Collaborations Are The New Black… How many is too many? 13/9/10

We’ve noticed a significant rise in luxury brands collaborating with mass-market retailers. Valentino with Gap, Lanvin with H&M, Jimmy Choo with H&M, Stella McCartney with Target. The list goes on. We wonder how many it will take before the novelty wears off? How many, before its too many? Is the collaboration from a high-end designer with a more commercial retailer nearing the end of its popularity? It doesn’t seem so. While we understand there is a certain strategy behind collaboration involving brand awareness and covering ground not usually covered with the limited luxury or high-end marketing strategy. Still, the question begs to be asked. If a designer like Valentino can really make a fabulous ‘capsule collection’ for one fifteenth of the price, doesn’t it raise some questions about mark ups? We have been in the luxury industry for long enough to know that of course there is more to the extravagant price tags of luxury goods than a name. Exotic fabrics, embellishments, different production methods separate the crème from the crop. However, giving the public access to too much of something that is meant to be rare and exclusive, we can’t help but wonder if it cheapens the brand. Both in terms of exclusivity and perceptions of having ‘sold out.’ The oh-so-important existing customers may begin to get a little miffed. Thoughts anyone?

Image credit: scrapetv.com

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Luxury Brands Resist Selling Online 24/9/10

Luxury brands are usually at the forefront of all things cutting edge. So why have they been so reluctant to embrace online shopping? Perhaps they are learning from the success of others such as Net-a-porter and shopbop, because it seems some brands are slowly but surely coming around. This week, Marc Jacobs ventured into online retailing, last month Prada made a quantum leap by offering accessories. Stubbornly, not clothes.

It seems that consumer demand and fashion-house pride are engaged in a headlock. The almighty Internet could certainly serve luxury brands, used correctly. But perhaps it asks in return, for something they are not willing to give: their status. It makes sense for the online marketplace to be seen to undermine the aura that surrounds luxury brands. The commodification of luxury is something these brands desperately try to avoid. Will Prada still be ‘Prada’ when it arrives in a box on the front door? Of course. But the in-store ritual is half the experience. Despite the obvious convenience, there is something clinical about online purchases. In the same shopping session, one may as well order vacuum bags.

Nonetheless, the reality is that there is one luxury no amount of money can buy, that no brand nor legacy will ever supersede. Time. Consumers are strapped for time, and luxury brands perhaps must recognise this if they want to maintain their loyal followings. This is not to say that the Internet will ever take over entirely, but online is an option young markets are increasingly refusing to go without. It seems the time has come for luxury brands to shape up, and ship out.

Image credit: yearbook.gov.hk

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Hermes Launches Shang Xia Brand In China 14/9/10

Hermes is launching a new fashion and lifestyle brand in China this Thursday. Here at the MO Down, we are following Jing Daily, who have the exclusive rights to the story. Mandarin for ‘Up Down’, Shang Xia plans to follow local tastes and employ the best artisans in China, allowing them to tap into the world’s largest emerging luxury goods market, and without altering their brand identity in the slightest. Brilliant! When we think about it, globalisation presents a tricky dilemma for fashion houses like Hermes. You can’t please everybody, after all. On one hand, Hermes has sacred traditions based on its revered (not to mention invaluable) identity. As a brand, Hermes has more self-assuredness than any one could ever expect from a fashion house. Their reputation is key to their business plan– and they are a business, after all. So on the other hand, just like everybody else, and by whatever means, Hermes must market its goods. As a business, Hermes would be crazy to assume they can just march into a foreign market and have everyone go wild. It happens, but tis’ the exception, not the rule. It certainly doesn’t guarantee a large market share.

Hermes is not about to alter its image for China. To do so would be to edit its largest, most fragile asset. What an enormous gamble that would be. Instead, what we may be about to witness from Hermes is a seamless manipulation of ‘glocalisation’– creating a hybrid brand of global and local taste. We find the recent trend of luxury brands partnering with mainstream labels somewhat controversial– see our thoughts on Valentino yesterday. Hermes may be on the verge of proving a way to have its piece of the Chinese cake and eat its profits, too.

Of course, all this is speculation. Shang Xia is a covert operation and all details will remain behind closed doors until Thursday. We will bring you more news when to hand.

Image credit: jingdaily.com

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Luxury Brands Go Eco 10/9/10

It seems that calls for luxury brands to show corporate social responsibility are being answered! In the lead up to London Fashion Week, the Environmental Justice Foundation is releasing a series of organic, fair-trade T-shirts alongside big names like Christian Lacriox, Alice Temperley, Luella and Katharine Hamnett. It’s a golden age for eco-fashion in London, with the Environmental Justice Foundation setting up a pop-up shop to sell the ethically made T-shirts, designed to draw attention to the plight of child labourers in Uzbekistan. Aside from looking great, these T-shirts are also making the labels they represent look great! Much of the child labour in Uzbekistan involves cotton farming, and we don’t need to explain the importance of cotton to the fashion industry. Most people probably don’t consider where all these fine materials actually come from, so it’s nice to see labels with some cachet shining some light on important global issues.

Image credit: ecouterre.com

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Burberry Has Its Finger On The Pulse.... And One On The iPad 10/9/10

Burberry is embracing online shopping, expanding an iPad-based online shopping program in order to encourage store visits. By setting up iPad’s at 25 outlets worldwide, shoppers will be able to browse and order from the spring-summer 2011 collection with the swish of an index finger. It has been revealed that the service will be available for use during the live broadcast of Burberry’s show during London Fashion Week on September 21. Items purchased during the show will be delivered in seven weeks- three months before the items appear in stores. We think this is a genius strategy, built around the rush of excitement for new products, while simultaneously integrating new media and… Apple products (they had us at hello)… Impulse buyers beware!

Image credit: fashion.telegraph.co.uk

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Dior Slammed For 'Racist' Images 8/9/10

Christian Dior is in a spot of hot water following the release of photos from its latest ‘Shanghai Dreamers’ campaign. It will be interesting to see whether photographer Quentin Shih, well known in China, can talk his way out of this!

The photographs depict white models in haute couture posing in front of identical Chinese extras in utilitarian work wear. Fashion bloggers everywhere have been slamming the campaign, calling it discriminatory and racist.

Advertising campaigns, particularly for luxury brands it seems, frequently employ controversial subject matter– Dior Addict, anyone? But this series of images is causing quite a stir.

Shih told journalists, ‘I wanted to show the power of the Chinese people standing together and a kind of socialism in Chinese history.’ All well and good, but if this means suggesting that all Chinese look the same, then the people aren’t happy.

At the same time, perhaps fashion devotees must remember not to take Dior’s statement so literally. Perhaps there is symbolic meaning that can be drawn from these images. Fashion is art, and art often causes a stir. Often, the stir is born from touching on something vital within society.

Playing on history is a clever tactic for fashion publicists- consumers will almost definitely engage with your brand. If Dior is going to parody an era that brought misery, imprisonment, and even death to countless citizens, it might be genius in gaining attention. But they must also remember: for every action, there is an equal and opposite reaction.

Image credit: dailymail.co.uk

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Faberge To Launch A Second, More Conventional Collection - 26/4/10

Last month, we revealed that the part owners of Faberge, Pallinghurst Resources, have returned to profit. Now we read the newly revived jewellery brand will be producing a collection of more conventional jewellery.

Brian Gilbertson, Chairman of private equity firm Pallinghurst Resources that owns about half of Faberge, said in a National Post article, “The second collection is slightly more conventional. If you walk up the street and look in the windows, it would be closer to that.”

Gilbertson declined to say how many of the initial collection of 132 pieces have been sold, but said there have been sales throughout the world.

Interesting points to note in this article is that Faberge’s strategic brand renewal has both modern and vintage, a.k.a. retro, elements. For instance, in the vintage Faberge corner, we have the trunk shows "where the company's namesake Peter Carl Faberge operated by setting up in a top hotel and inviting clients to view his works." And, in the modern e-commerce corner, we have Faberge’s worldwide online boutique, which aims to lure the wealthy to its website then consummate sales with private showings. We’ll keep watching and waiting to see if this strategy works.

Image courtesy of the National Post.

Burberry Introduces An Exclusive Japan-Only Black Label Range – 9/4/10

Click here to preview the Winter/Fall collection for Burberry’s Black label range, which is exclusive to Japan. Another luxury brand that is doing market exclusives…

As Burberry has been on a very large growth trajectory over the past few years and performing well, a new line extension is a timely introduction as the brand is becoming more commercial, some may even say too available? Some customers who are brand loyal want to continue to purchase the brand however don't want to see ‘everyone’ wearing it. So the new Black this season is Burberry. Will it reach beyond the shores of Japan in the near future...? Read more here.

Image credit: Indyposted.com. It shows Black Label clothing.

Hermes + Pierre Hardy = “Haute Bijouterie” – 7/4/10

According to WWD, Pierre Hardy’s Hermes collection has been dubbed “Haute Bijouterie” to distinguish itself from the couture houses and other luxury players.

Hermes will be taking orders for the collection on a world tour that will stop in Tokyo, Hong Kong and Berlin. The waiting time is 5 to 7 months. Click here to read more.

Hermes’ CEO Patrick Thomas said there is rising demand for bespoke pieces. “It’s a trend which is also growing in each of our categories, but especially in jewellery,” he said. “Today, I would say it’s at least 10 percent of our business.”

Image credit: WWD. Shows one of the Haute Bijouterie pieces.

Giorgio Armani And Bottega Veneta Are Fashion Week Favourites – 4/3/10

After visiting LVMH’s nowness.com, we recommend fashionistas head to the Fashion Week Runway Buzz-o-meter, which has measured the online buzz on various designer's runway collections.

Giorgio Armani and Bottega Veneta received the biggest and most positive buzz. Jil Sander wasn’t as well received. Click here and here for more news on this.

This Louis Vuitton Bag: Trash Or Treasure? You Decide – 12/2/10

So what are your thoughts on Louis Vuitton's new ‘Raindrop Besace’ bag? (pictured).

We read in the Luxist that these bags, available in two colours, are crafted in leather, with gold-tone detailing and a detachable leather strap. And what’s the general consensus on this bag – it looks like a trash bag.

Critics have certainly been harsh about the Raindrop Besace. But you know what they say – another woman’s trash is another’s treasure!

Personally, we prefer the ultra-luxe Whisky Case that Louis Vuitton has available by special order. It was constructed entirely by hand and is a timeless piece. You can also see it at the Luxist.

Burberry Provides 3-D Screenings Of Its Runway Show – 10/2/10

Keep February 23 clear - as Burberry is screening its runway show in 3D...

We read in WWD that 3-D screenings will be held in New York, Paris, Dubai, Tokyo and Los Angeles for select guests.

They will also stream the show in 2-D at live.burberry.com, and fans will be able to comment using Facebook and Twitter.

Burberry continues to firmly embrace the online stage. Remember, only last month, they showed live footage of their Autumn/Winter fashion show on the GQ Magazine website (see our January 15 report for details).

A Sneak Peek Of Prada’s Upcoming Menswear Campaign – 19/1/10

Recently we scrutinised promos from Chanel and Louis Vuitton (see January 8’s article), and now it’s time for Prada’s Spring/Summer 2010 menswear campaign to come under the MO Down microscope.

Click here to see footage of this campaign, produced by one of China’s most celebrated contemporary artists, Yang Fudong. This 9-minute film depicts Prada-clad models floating through the skies of 1930s Shanghai using umbrellas. Like Chanel’s YouTube promo, it is filmed in black and white.

We are impressed by this campaign so far. Prada are constantly innovating their art and cultural forays, which is spreading the word on the brand ever-so-subtly. We also think they are clever as they have chosen a celebrated historic Chinese artist, which will generate additional buy-in (a.k.a interest) from consumers. Click here for our prior comments on the benefits of luxury brands collaborating with famous artists.

Jimmy Choo To Produce Limited Edition Ugg Boots – 18/1/10

It doesn’t seem like a match made in heaven, but Tamara Mellon has spoken and Jimmy Choo will be collaborating with Ugg Australia to produce five limited-edition sheepskin boots.

Mellon, Choo’s Founder and President, told WWD, “Ugg Australia is the only other footwear I have in my wardrobe,” which is a fantastic endorsement for this made-in-Oz brand.

Available later in the year, possibly October, these Jimmy Choo uggs will cost between US $595 to $795 (around AU $645 to $861).

So far the fashion world has been astounded by this partnership, with the Guardian asking, “When is a fashion marriage destined for divorce?” and also comparing it to Lindsay Lohan’s disastrous collaboration with Ungaro (click here for our article on that fiasco).

We are not sure about the success of this partnership either. However, we suspect it won’t create the sale stampede of Choo’s recent budget collaboration with H&M (read more about this in our November 17 article).

Image credit: The Guardian.

Luxury Jewellery Market Goes From Strength To Strength – 15/12/09

Despite the financial crisis, high-end jewellery is still in high demand. Recently The New York Times went as far to say that ‘Luxury Jewellery Defies The Recession.’

Fabergé’s resurrection in September was an important boost for the industry (see the MO Down for 17 September for more details).

The NY Times article also draws attention to Louis Vuitton’s creation of its first haute joaillerie line. Vuitton ensured its brand identity was at the heart of the collection, which not only features elements of its iconic flower motifs and brown and gold colour palette, but also includes a 30.1 carat diamond specially cut in the quadrifoil form of the Vuitton flower.

High-end jewellery will also share the runway at Paris Haute Couture Week in January (see the MO Down for 26 November for the full story). So the reign of the luxury jewellers is set to continue into a bolder, brighter new dynasty.

Burberry Set To Expand Their Leather Goods – 24/11/09

Last week, we reported Burberry’s profit had dropped 24 percent (see the MO Down for 19 November). This week, Christopher Bailey, Burberry’s Chief Creative Officer, has expansion on his agenda.

We read in a Reuters article, Burberry To Expand In Shoes And Handbags, that the main areas of expansion will be leather goods, children’s wear and sportswear.

Bailey said there is solid demand for new types of Burberry goods such as belts and shoes. He also suggested, "We will be growing the range with a bigger emphasis on shoes."

Currently, non-apparel items make up around one-third of Burberry's revenue.

It was only last month that we reported Burberry also has a cosmetics line in the pipeline (see the MO Down for 27 October).

Cartier Expands Cheaper Lines For Christmas Time – 20/11/09

Luxury jewellery brand Cartier has expanded its range of more affordable products ahead of Christmas, according to Reuters.

The brand launched its latest collection, "les must," earlier this month and their C.E.O., Bernard Fornas, said demand so far has been "very, very strong."

The price tags, pitched between 200 euros (AU$320) and around 3,000 euros (AU$4,807), appeal not only to younger clients but also to more mature shoppers looking for presents for teenagers, Fornas said.