Escada Lives On – 9/11/09

Insolvent German brand Escada has finally been purchased by a family company – the Mittals.

In a statement, Megna Mittal said, “Our first priority is to ensure that the great heritage of this iconic company is translated into a strong and successful future. Despite recent difficulties, Escada has the potential to redefine its place in the world of luxury brands and become synonymous with fine quality and elegance.”

According to WWD Fashion, Escada’s current C.E.O, Bruno Sälzer, will remain at the helm of the company.

We’ve been following the Escada insolvency since day one. Click here for our detailed report on August 13.

Sales Jump Significantly At David Jones – 9/11/09

Local premium-end retailer David Jones seems to be reaping the rewards of renewed consumer confidence, with The Australian reporting “the group has seen the biggest jump in sales in more than two years.”

Their first quarter sales were also up 2.2 percent on the year, or 0.8 percent compared to this time last year.

Myer also announced a 5.2 percent rise over the quarter, or an 2.9 percent increase compared to this time last year.

Is This The Key To Tiffany & Co.’s Success In China? – 6/11/09

Tiffany & Co. are following in the footsteps of many luxury brands by customising their online marketing campaigns to appeal to the Chinese.

Last week, Tiffany launched their Keys collection with their ‘Journey Behind The Door’ campaign at www.tiffanykeysphotos.com. This site showcases a photography exhibition starring mainland celebrities, each adorned by a Keys necklace (as pictured).

Click here to read more about Tiffany’s new campaign.

The Gucci Group Commits To Conserving The Rainforest – 5/11/09

The Gucci Group has taken another big step towards being the greenest luxury corporation. Earlier this week, they joined forces with the Rainforest Action Network and pledged to conserve paper.

According to WWD Fashion, their new paper policy will encourage all of the group’s brands to reduce paper use, eliminate those containing fibres from forests of high conservation value, and to purchase recycled paper certified by the Forest Stewardship Council, all by December 2010.

The Gucci Group’s Executive Vice President of Global Communications, Mimma Viglezio, said, “Standing rainforests are not a luxury, they’re a necessity if the world wants to stop climate change.”

The Gucci Group definitely has our vote for the greenest luxury brand. It was only last month that we revealed Gucci was sponsoring a Ph.D. on sustainable fashion practices (see the MO Down for 14 October). This is yet another indication that green is fast becoming the new black…

Designer Handbags Have Become Collateral In Hong Kong – 4/11/09

Hong Kong finance firm Yes Lady Finance has caused a global sensation by offering personal loans in exchange for ladies’ designer handbags. Yes, you heard right - a second-hand Birkin equals big bucks.

According to Reuters, Yes Lady Finance is providing loans of up to 70 percent of the value of the item in the second-hand market and charging borrowers interest as low as 28 percent a year with a three-month maturity.

A Louis Vuitton handbag valued at US$2,600 in the second-hand market would fetch a US$1,800 three-month loan, we read in an AFP report. This article also suggested owners would lose the bags if they failed to settle the debt on time.

Yes Lady Finance Co-founder, Wallace Tung, said the scheme was “a good fund-raising option for some tai-tais*.”

This is a surprising first for the personal-loan market. But we doubt the idea will be adopted in Australia any time soon.

*Tai-tais is a slang term for the wives of wealthy Hong Kong businessmen.

A Peek Into Beijing’s Billionaire Playgrounds – 3/11/09

A few months ago, we reported that Beijing was home to many high rollers (see the MO Down for 26 August). Now an AFP article has reminded us of just how rich they have become…

In this article, entitled ‘What Crisis? China’s Billionaires Live It Up’, Beijing's Jinbao Street, where you can find Gucci, Cartier, Rolls-Royce, Bugatti and Lamborghini, is revealed to be a popular billionaires’ haunt.

Rupert Hoogewerf, the founder of the Hurun Report, confirmed, “China's wealth is growing at breakneck speed.”

The store manager of the Cartier store in Jinbao Street also had compelling proof of Hoogewerf’s observation, saying, “Our business is very good in China. Our clients are very rich. Many buy without looking at the price.”

The Managing Director of Lamborghini, Wilson Ho, agreed stating, "For some people here, money is nothing, they come and they buy a car in one hour... and they settle the payment in full. We're talking about cars that are six, seven, eight million yuan!"

Louis Vuitton is also said to be a hot commodity, with Chinese consumers bringing “armfuls of purchases to the cash register”.

For more observations on the spending habits of Beijing’s wealthy, click here to read more.

Prada Orders Exceeds Expectations By 10 Percent – 2/11/09

Last week, Versace announced a quarter of their workforce will be axed (see the MO Down for 30 October). But it’s a different (much happier) story at Prada where the luxury brand is experiencing “a speedy return to full production.”

According to Reuters, Prada is shortening temporary suspensions* for some workers by three weeks after orders for its Spring/Summer 2010 clothing collection exceeded expectations by 10 percent.

*The Milan fashion group signed an agreement with union workers a few weeks ago to put 250 from a plant of 3,000 into "cassa integrazione" (temporary suspensions where workers receive reduced pay).