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Friday, 4 December 2009
LVMH Rose 2.2 Percent After Upgrade – 4/12/09
According to Reuters, shares in LVMH climbed 2.2 percent after RBS upgraded it to "hold" from "sell." The broker said the luxury goods company is a "safer haven in still rough waters."
PPR Begins To Lighten Its Retail Load – 4/12/09
Last week, we announced that PPR was set for a major overhaul where they plan to sell many of their retail companies (see the MO Down for 25 November.) This week, the first stage – the initial public offering of its African distribution co. CFAO – has been a huge success. We read it was “oversubscribed by nearly 2.5 times.”
In The Wall Street Journal, it states that PPR “raised at least EUR $806 million.” PPR also said it was very satisfied with the price and called the operation a "big success."
In other share news, Nicola Bulgari, Vice Chairman of luxury jewellery firm Bulgari, sold 4 million shares, or 1.33 percent of the share capital, to investors to finance “personal projects.” To know more, click here to go to WWD Fashion.
In The Wall Street Journal, it states that PPR “raised at least EUR $806 million.” PPR also said it was very satisfied with the price and called the operation a "big success."
In other share news, Nicola Bulgari, Vice Chairman of luxury jewellery firm Bulgari, sold 4 million shares, or 1.33 percent of the share capital, to investors to finance “personal projects.” To know more, click here to go to WWD Fashion.
Thursday, 3 December 2009
Armani Sees The Advantages Of Online Shopping – 3/12/09
News has come to us from Bloomberg that Italian fashion houses like Giorgio Armani SpA and Valentino Fashion Group SpA, are embracing the internet to boost revenue for this holiday season.
Recently, Armani created a Christmas website - www.armaninatale.com – where you can view both Giorgio Armani and Emporio Armani products and make a wish, which can then be shared on social networks like Facebook and Twitter. A very clever idea indeed. In fact, it’s something we would expect from Burberry, currently the most popular luxury brand on Facebook (see the MO Down on September 21 for more facts.)
According to Deloitte’s 2009 Christmas Survey, greater choice, avoiding crowded stores and having little time to shop were given as reasons to buy online. Being unable to touch or directly see the items was described as the main shortfall of the net.
Luxury shame was also mentioned as a factor that may be driving internet-based sales (see our report on 23 October for a detailed critique of luxury shame). And make sure you visit Armani’s Christmas website and make a wish…
Recently, Armani created a Christmas website - www.armaninatale.com – where you can view both Giorgio Armani and Emporio Armani products and make a wish, which can then be shared on social networks like Facebook and Twitter. A very clever idea indeed. In fact, it’s something we would expect from Burberry, currently the most popular luxury brand on Facebook (see the MO Down on September 21 for more facts.)
According to Deloitte’s 2009 Christmas Survey, greater choice, avoiding crowded stores and having little time to shop were given as reasons to buy online. Being unable to touch or directly see the items was described as the main shortfall of the net.
Luxury shame was also mentioned as a factor that may be driving internet-based sales (see our report on 23 October for a detailed critique of luxury shame). And make sure you visit Armani’s Christmas website and make a wish…
Lacroix May Be Converted Into A Licensing-Only Operation – 3/12/09
The luxury world is in shock after the Paris Commercial Court approved a plan to convert Christian Lacroix into a licensing operation.
As we said earlier in the week (see December 1st), this would mean the end of Lacroix’s couture and prêt-à-porter lines and the axing of almost all jobs.
But, according to WWD Fashion, there is a glimmer of hope. Nicolas Topiol, C.E.O of Lacroix, said the Falic Group would continue to negotiate with prospective buyers even though the court-observed administration period has ended.
Topiol said, “I am working on finding a solution for the company. Everything is still possible.”
You can also read more on this development in the Financial Times.
As we said earlier in the week (see December 1st), this would mean the end of Lacroix’s couture and prêt-à-porter lines and the axing of almost all jobs.
But, according to WWD Fashion, there is a glimmer of hope. Nicolas Topiol, C.E.O of Lacroix, said the Falic Group would continue to negotiate with prospective buyers even though the court-observed administration period has ended.
Topiol said, “I am working on finding a solution for the company. Everything is still possible.”
You can also read more on this development in the Financial Times.
Wednesday, 2 December 2009
LVMH Wins Another eBay Counterfeit Clash – 2/12/09
In another huge step in the battle against counterfeit goods, eBay has been fined €1.7 million (AU $2.8 million) for “the unlawful marketing” of Christian Dior, Givenchy and other LVMH perfumes.
We read in The Wall Street Journal that LVMH called the decision “an important step” against unlawful practices. “Selective distribution ensures the security and quality of products for consumers. It generates numerous jobs and contributes to the ongoing world-wide success of European luxury goods brands,” the company said in a statement.
eBay, unsurprisingly, was annoyed by the verdict, saying, “It has taken steps to hide LVMH products from French shoppers and that the illegal listings LVMH submitted contain misspelled brand names or only pictures of products, which enabled them to slip through the cracks.” No excuse eBay, no excuse…
We read in The Wall Street Journal that LVMH called the decision “an important step” against unlawful practices. “Selective distribution ensures the security and quality of products for consumers. It generates numerous jobs and contributes to the ongoing world-wide success of European luxury goods brands,” the company said in a statement.
eBay, unsurprisingly, was annoyed by the verdict, saying, “It has taken steps to hide LVMH products from French shoppers and that the illegal listings LVMH submitted contain misspelled brand names or only pictures of products, which enabled them to slip through the cracks.” No excuse eBay, no excuse…
Tuesday, 1 December 2009
Chinese Big Spenders Zero In On London – 1/12/09
A Times Online article on Chinese consumer habits in London attracted our interest today. It reveals that “Chinese shoppers were the highest-spending nationality on Bond Street” during the summer.
Also, statistics by the New West End Company, which represents the retailers of Bond Street, Oxford Street and Regent Street, show Chinese nationals spent 127 per cent more this October than September. And across these three streets, the average Chinese transaction was £780 (AU $1,402), and £1,038 (AU $1,865) on the luxurious Bond Street.
The key luxury brands the Chinese gravitated towards included Louis Vuitton, Gucci and Burberry. These are all brands with strong, identifiable signatures and logos on their products.
In our eyes, London is an appealing luxury goods destination for Chinese shoppers due to the exchange rate, its number of stores, and the wide variety of brands available.
Also, statistics by the New West End Company, which represents the retailers of Bond Street, Oxford Street and Regent Street, show Chinese nationals spent 127 per cent more this October than September. And across these three streets, the average Chinese transaction was £780 (AU $1,402), and £1,038 (AU $1,865) on the luxurious Bond Street.
The key luxury brands the Chinese gravitated towards included Louis Vuitton, Gucci and Burberry. These are all brands with strong, identifiable signatures and logos on their products.
In our eyes, London is an appealing luxury goods destination for Chinese shoppers due to the exchange rate, its number of stores, and the wide variety of brands available.
Christian Lacroix Bailout Is Looking Unlikely – 1/12/09
Is Christian Lacroix doomed to be liquidated?
That is the question we are asking ourselves as an AFP report said, “Neither the Emirate sheikh nor a French firm who have both expressed interest in acquiring the prestigious fashion house submitted financial guarantees to back their proposals by a deadline, which expired last Thursday.”
This new development means the Paris Commercial Court will be free to decide this week on whether to accept the liquidation plan submitted by the house's owners, U.S. firm Falic.
The plan would involve axing almost all jobs, winding up the couture and ready-to-wear business and paying off the house's creditors with its licensing deals. What a sad end to an impressive talent.
For background information on this story, see our reports on 19 November and 29 October.
That is the question we are asking ourselves as an AFP report said, “Neither the Emirate sheikh nor a French firm who have both expressed interest in acquiring the prestigious fashion house submitted financial guarantees to back their proposals by a deadline, which expired last Thursday.”
This new development means the Paris Commercial Court will be free to decide this week on whether to accept the liquidation plan submitted by the house's owners, U.S. firm Falic.
The plan would involve axing almost all jobs, winding up the couture and ready-to-wear business and paying off the house's creditors with its licensing deals. What a sad end to an impressive talent.
For background information on this story, see our reports on 19 November and 29 October.
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