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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Prada to Establish Russian Presence 29/10/10

Luxury brands eyeing foreign markets have their focus set on the up and coming Chinese market at the moment as we have discussed several times previously here at The MO Down. It’s interesting to see that Prada has its eye on the Russian market. Another emerging market that was very strong five to six years ago yet has gone off the 'priority' list for brand expansion over the recent global economic crisis. Prada rented retail space in key locations this week, analysts are suggesting they are going to invest quite a bit establishing the brand here. The grand opening of the first Russian Prada boutique is rumoured to be planned for autumn 2011, in Moscow’s luxury shopping precinct at the intersection of Bolshaya Dmittovka and Stoleshnikov Pereylok. Try saying that after a few glasses of vodka!

Prada has been available in Russia since 2002, managed by retailer Mercury. However, with the increasing popularity of luxury brands, the market is becoming more and more competitive and names like Prada are having to develop their identities in the local context in order to stand out and remain competitive. Particularly given the exorbitant cost of renting retail space in prestigious areas in Moscow, brands have to assert themselves as one of the big guns in order to succeed. It seems that Prada are keen to own their image in Russia, and will soon be able to provide luxury shoppers with a shopping experience that is uniquely Prada. It’s certain that opening their own boutiques is a step in the right direction to bringing the popularity of the brand in Russia up to par with other parts of Europe.

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LVMH Increases Its Undercover Stake In Hermes 25/10/10

Global luxury conglomerate LVMH SA has increased its stake in the quintessentially French maison, Hermes, to over 17 per cent. Until this recent acquisition of 14.2 per cent, it was not public knowledge that LVMH owned shares at all. In France, owners holding under 5 per cent can remain anonymous.

We wonder if this will turn out to be another classic ‘ghost muncher’ situation that will see LVMH incrementally increase their shares to ownership. Stranger things have happened, and we are sure Hermes is a name worth acquiring. Nonetheless, ‘not so’ says LVMH right now. ‘The objective of LVMH is to be a long-term shareholder of Hermes’ said an unidentified spokesperson. Apparently they like what Hermes is doing, and are simply interested in investing in this company because of what they do and how they do it. Hermes is certainly an industry leader, commanding a level of respect not afforded to many. Added bonus, when Hermes shares are doing so well.

Call us cynical, but when the likes of LVMH bid a fine bonjour and pay for it, you can be sure that there is a future strategy in place. We won’t be surprised if they raise the holding soon enough. Time, of course, will tell. Follow this link for more info.

Image credit: limitedhype.com

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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?

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Mulberry Reports Roaring Trade 12/10/10

Mulberry has shown phenomenal growth recently, with sales increases as high as 80 per cent since summer! Due to open their first Australian freestanding store in the Westfield City development in Sydney later this month, Mulberry entered Australia in a wholesale business capacity over a decade ago. It was short lived at the time, disappointingly for loyal followers, however Mulberry’s mix of product and ability to spot a forward trend or two over the past number of years have put the brand firmly on the international map, Asia incredibly so. Godfrey Davis, the chief executive of Mulberry has reported that sales in Asia have outstripped the UK. Always great to see such a solid brand fight its way to the top, especially in light of tough economic conditions. Yet another sign that things are looking up for the luxury industry. It’s time for a reintroduction, Mulberry is back!

Image credit: pursepage.com

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Luxury News In Brief 6/10/10

Just a couple of interesting news items from over the long weekend. Louis Vuitton has raised the prices of some of its iconic monogrammed and other classic handbags– up to nine percent in some cases in the Euro zone. Certainly a sign of the times, specifically that the economic climate is looking up. Vuitton is making a confident statement about their own popularity, one we think could perhaps also be a strategy to increase overall sales? The luxury industry can read this as a sign of recovery, and look forward to a bright future.

In other news, Cognac legacy Kilian Hennessy has passed away- at the ripe old age of 103! Just goes to show that good cognac has its health benefits. With his cognac and early retirement combination, he may have been onto a good thing. Kilian Hennessy was CEO of the company in the 70s, steering it into a merger with Moet & Chandon to create Moet-Hennessy in 1971.

Last but not least, it is interesting that brands are pulling out of iPad’s iAds left right and centre. Due to repeated rejection of ads that must be approved by Apple’s California headquarters before being included in the plan, high profile names like Chanel have had enough and withdrawn their business. Unusual to see an unpopular Apple initiative, let’s see if they can turn things around…

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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.

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Vuitton Running Out Of Stock? 16/9/10

We find it interesting to hear that Louis Vuitton is closing its Parisian stores an hour early for the rest of the year, to preserve stocks ahead of the Christmas rush. We don’t understand- are they having an amazing year, or did they underestimate their supply? Is there not time between now and Christmas to produce a little more? Stores frequented by tourists, including the brand’s flagship on the Avenue des Champs-Elysees, particularly popular among Japanese, Chinese and Russian tourists, are saving their stock for when it counts, according to brand representatives. We wonder whether this is a genuine concern for supply and demand over the holiday period, or a clever tactical promotion. Either way, we take our hats off to the announcement, because it is likely that the perceived shortage of the goods will create a spike in sales, if nothing else. Isn’t luxury about rarity and exclusivity, after all? It seems to be part of human nature that the harder something is to acquire, the more sought after it becomes. We wonder whether the Hermes Birkins would have been quite as popular if there was one available for everyone who wanted one. There is certainly something about the thrill of a chase. Perhaps Vuitton is planning to capitalise on consumers’ fears of missing out, and counteract the increasingly popular opinion that Vuitton is too commercial? We will be curious to see how many disappointed shoppers are turned away on Christmas eve….

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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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Cavalli Reports Strong First Half 8/9/10

Strong and confident prints, a touch of animal, and gold, have certainly not hindered Cavalli this year. Reporting a profit for first-half, the Roberto Cavalli group reported a net profit of €1.9m ($2.5m), compared with a loss of €3.5m ($4.6m) last year. According to executive director Gianluca Brozetti, CEO, both wholesale and retail sales grew in the first half, compensating for a drop in royalties from its Just Cavalli licensee Ittierre SpA, which has been in government-backed bankruptcy protection since February 2009. “Careful restructuring and cost control” helped to place the group back on solid ground. Looking at the second half, Brozetti remains confident given the uncertainty of the economy, and looks to special edition products and anniversary celebrations to yield further economic return.

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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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eBay Counterfeiting Conviction... Too Soft? 6/9/10

We have been very vocal about our objection to counterfeiting lately, here at the MO Down. This week, a Paris court has drastically reduced damages demanded from eBay, following a suit from LVMH for selling fake goods. The original conviction of €38m ($53.4m AUD) was reduced to €5.7m (approx $8m AUD), and we aren't really sure what to make of this. Both sides have claimed victory. Excuse us?

The real issue here cannot be expressed in dollars or euro. eBay have had its wrist slapped, and LVMH is pleased to have a precedent. But will this stop counterfeit products being sold online in the future? Is it enough? We worry that the crime of counterfeiting is not being taken seriously. Sure, fashion knock-offs might not be a crime priority in the realm of drug trafficking and credit card fraud, but they are a breach of intellectual property in the same league as plagiarism and film piracy. The future of the innovation and investment in quality that these brands represent is contingent on their ability to uphold their high standards. These standards falter in the hands of counterfeiters who peddle mediocre products under their names.

LVMH contended that it was hurt by the sale of fake products on its site. Lost revenue is only the half of it. The real damage is to brand identity. No matter what, there is always someone who argues for fakes, claiming they raise brand awareness. We beg to differ– see Fake Goods Are Fine...Not from last week! Luxury companies spend millions of dollars each year to provide an exclusive service to a specific market. Anything less is directly opposed to the interests of their brand awareness. Fakes are not fine!

Image credit: fashionphile.com

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Bottega Veneta Collaboration With H&M? We Wait And See - 02/09/10

It’s always exciting to see a collaboration between luxury and mainstream fashion, and the latest relationship to form in the industry is between Bottega Veneta and retail giant H&M.

Whilst the duo forming together is still being kept secretive, H&M released a video a few days ago that caused a stir and alluded to the collaboration with Bottega Veneta. The blog world has been in overdrive as readers picked at the clues from the short video clip. The main clue being that a shadow cast figure in the video seems to be Tomas Maier, Bottega Veneta’s creative director.

The video ends with a date that we all wait for- September 9th. The day when the luxury face behind this new duo is revealed. Take a sneak peak here.

Image credit: H&M via Youbtube

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Gucci Launches The Ultimate Online Shopping Experience - 31/08/10

Luxury brands are paving the way of the future, with the launch this week of Gucci’s new digital online space. The site was under 18 months of direction before launch and it was well worth the wait. The site integrates rich content, social media platforms and a unique shopping experience, (not to mention the experience of travelling through a real life Gucci store and exclusive online accessories collection.)

Luxury fashion brands are constantly updating their methods of sale and performance, as we saw earlier this year with Burberry (and also Armani) live streaming their runway shows for loyal followers. Burberry also launched their unique online interactive collection under the creative direction of Christopher Bailey.

Image credit: gucci.com

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Sky Blue Moment As Tiffany & Co Handbag Collection Launches - 27/08/10

It’s the moment Tiffany & Co lovers have all been waiting for- the launch of their debut handbag line. We previously brought you pre-launch info on the exclusive line, and now the designs are out on the market for all to see. Although “roughly 90% of the luxury chain's sales remain in jewellery”, the new handbag collection features a range of stylish designs starting at US$395 and leading up to a luxury large crocodile skin handbag (priced at US$17,500)

Whilst Tiffany & Co’s signature jewellery designs range from entry price point of US$200 for sterling silver to an average bridal piece of US$3,300, the handbags seem well priced and in line with the pricing strategy of the brand for existing products.

With the market showing grand signs of renewed retail life after the recession, we think the Tiffany & Co handbag line will prove popular, and we have to say they look pretty fabulous! We have our eye on the Manhattan satchel in violet glazed crocodile (with Tiffany blue accents on the hardware of course) but aahh that would be one of the more expensive!

We look forward to seeing the new designs in Australia and we are happy to offer assistance in removing some of that table ware in order to display this cleverly put together and 'in and on themed Tiffany range' by designers, Richard Lambertson and John Truex.

Image credit: online.wsj.com

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Fashion's Night Out Branches Over The World - 26/08/10

Fashion’s Night Out is always a grand affair, with some of the world’s leading luxury brands bringing their latest X factor to the world. This year FNO will expand over a number of the world’s fashion capitals including New York, Milan, London, Paris and Sydney. Kicking off in Paris on Sept 7, labels including Louis Vuitton and Chanel will provide entertainment for guests, with Louis Vuitton providing a unique photo studio where guests can be featured on mock covers of French Vogue.

The following day will see FNO venture to London, where cocktails may be sipped at the Emporio Armani store on New Bond Street alongside fashion royalty like British Vogue editor, Alexandra Shulman. Over at Burberry, live entertainment will be shown via an acoustic set (with the artist yet to be confirmed.)

In Milan on September 9th, the new Bulgari fragrance will be launched and Bally will host a cocktail party. Yet the highlight for us occurs on the same day in Sydney, where Kirstie Clements, Vogue’s editor in Chief and Lord Mayor Clover Moore will launch Sydney’s own Fashion’s Night Out, including a large array of luxury labels. Covering a huge 448 retailers, FNO will highlight unique activities including Vogue editor tips and limited edition products with brands including Louis Vuitton, Prada, Chanel and Burberry.

The MO Down's insider knowledge has it on very good authority that some of the participating luxury brands will really be putting on a very fine treat for customers. It's a great initiative and the first for Sydney, so this is the time for consumers that may feel a tad shy about walking into a luxury brand, to take up the challenge and drop in to see what's on offer on the 9th September. Remember, luxury is about the product as much as it is about the experience!

Check out The MO Down’s thoughts on last years Fashion's Night Out.

Image credit: Fashion's Night Out

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Dolce & Gabbana And Selfridges Split - 24/08/10

It’s the age old rule of location, location, location this week, as Dolce & Gabbana have moved shop, and removed their diffusion line D&G from UK department store Selfridges. Location applies to any retailer, but most importantly for luxury and premium brands, who will scour cities and department stores for the ‘right’ location and the ‘right’ neighbours. The move for Dolce & Gabbana comes after reports that the company was unhappy with the move of location for two of their collections.

It just goes to show that in department stores whether you are a luxury beauty brand (where you would ideally be located on the central ground floor) or a premium brand, you still need to work the location to ensure maximum line of sight for consumers. Although it’s quite obvious Selfridges and D&G didn’t see eye to eye, this move could also be due to the recent sell-throughs from the recession, which has seen many consumers avoiding vibrant and obvious branding. Could consumers be taking the route of Jil Sander and Giorgio Armani and not the vibrancy of the flamboyant Italian duo?

Image credit: dolceandgabbana.com

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Chanel A 'Dusty' Brand? We Think Not - 16/08/10

Mark Ritson is an associate professor of marketing, an award-winning columnist and a consultant to some of the world’s biggest brands, yet his latest statement about CHANEL being a ‘dusty’ brand has got us in disagreement, with the focus of Ritson’s argument claiming that CHANEL clientele are growing older every day.

Respecting Mark's pedigree, we have to disagree largely to his comments given CHANEL is a true luxury brand and therefore is not available in every city, region, town or country. To compare CHANEL to Louis Vuitton in terms of distribution is not comparing apples with apples. Louis Vuitton has always been the pioneering brand, yet they are certainly more commercial than CHANEL.

CHANEL has been very considered in their growth and don't necessarily want to keep up with the Jones'. Whilst we're on the 'fence' about comments discussing whether the CHANEL store at Bondi Junction is right for the brands image, the eastern suburbs of Sydney certainly does stay in line with the company's profile.

Ritson’s comments are ‘global' with Australia being part of the Asia Pacific region and with China not far away, yet the age of CHANEL consumers in this part of the world would certainly not fit into his statement of “the clientele looks older to me on each visit.” We think his opinion may change should he spend some time in a CHANEL store in Australia, where the clientele are a mix of cultures and ages.

CHANEL works with artisans and takes a bespoke approach to a lot of its manufacturing processes and whilst the prices are not inexpensive, it makes sense that more ‘mature clientele’ are loyal followers of the brand, having more money as they have more experience. This success over the years lends itself to the average shopper being between 38-42* years old.

*MO Luxury Client Fulfilment Ranking Report 2010- research report May 2010.

Image credit: chanel.com

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