How much do top fashion brands really depend on China? When, in July 2011, LinkedIn hired Dan Roth, everyone in the media industry thought the “professional” social network was up to something big. Roth came with an impressive résumé: Forbes, Condé Nast Portfolio (a great but ill-fated glossy), Wired, then Fortune, where he served as managing editor before being poached by LinkedIn. Four years later, Roth snatched Caroline Fairchild, a young, talented writer and editor from Fortune. Again, many thought this was the moment. The trade press, always prompt to draw doomsday scenarios, came up with sensational headlines such as “How Dan Roth became the most powerful editor in business publishing” (Digiday), or “Media frenemy LinkedIn raids Fortune, Wall Street Journal for editors” (AdAge). Everyone (yours truly included) was wrong about LinkedIn editorial potential; it didn’t became a significant business media player—and most likely never will. Why? A discussion with Daniel Roth, while nice, quickly turns to mutual incomprehension.
Rising costs pile on the agony for Britain’s fashion retailers | Fashion From culottes to “cold shoulder” tops and woven loafers last seen in Miami Vice, many Britons have struggled with this summer’s fashions, but now there is an even more unpalatable trend on the horizon – in the shape of higher prices. The devaluation of sterling following the June Brexit vote has had major ramifications for store chiefs who pay in dollars for large quantities of imported goods. The first indication of where prices could be heading came last week from Next, one of the UK’s biggest clothing retailers, which pencilled in increases of up to 5% in 2017. “We have always taken the view that if our costs go up, our selling prices will go up,” said Next chief executive Lord Wolfson. But fashion retailers are already struggling to persuade shoppers to part with their cash as weak wage growth is compounded by a cyclical shift towards spending on eating out and other leisure activities. Kantar analyst Glen Tooke says its most recent reading shows the decline deepening.
Fashion house Balmain sold to Qatar's Mayhoola sovereign wealth fund | Fashion The Qatari investment fund that owns the Italian Valentino label will take over the French fashion house Balmain, which has become a favourite of film stars, the adviser for the acquisition has announced. “After completing this transaction Mayhoola for Investments will hold 100% of Balmain’s capital,” said the merger and acquisitions company Bucephale Finance. The French financial daily Les Echos in reporting on the acquisition said the Qataris offered €485m (£372m) for Balmain, which is 70% held by the heirs of the former CEO, Alain Hivelin, who died in December 2014, with the remaining 30% held by management. The reported Qatari offer was higher than sale estimates of between €300m-€400m. Mayhoola is an investment vehicle supported by the emir of Qatar. Balmain was started in 1945 by designer Pierre Balmain and has passed through several hands and periods of financial difficulty over the years. Since 2011 Balmain has gained added momentum under artistic director Olivier Rousteing.
Per BagHunter's Latest Study, Chanel's Flap Bag is a Great Investment According to Baghunter, the Paris-based design house's Classic Flap Bag has increased in value by upwards of 70 percent in the past five years alone, growing from $2,850 in 2010 to $4,900 at the end of last year, and thereby, allowing it to outperform in comparison to U.S. housing prices and the S&P 500. And the site suggests that this is a trend that is likely to continue (Do not forget: Baghunter is, in fact, in the business of selling Chanel Classic Flap Bags). The report states: “The Chanel Medium Classic Flap Bag has increased in value by a whopping 71.92% between 2010 and 2015, far outperforming housing prices in the United States, the S&P 500, and inflation. This trend places Chanel handbags at the forefront of any conversation about a sound investment.
MADE IN BRITAIN - Topshop Blog Featured Tis the season to be British – tralalalala… lalalala… With the Jubilee and the Olympics encouraging our patriotic tendencies, we thought it was high time classic, quintessential style hit the fashion headlines and thus, our new collection Made in Britain was born. Marrying tradition with innovation (because isn’t that so the British way?) Queue our fashion fantasies of countryside frolicking in a sailor dress and wellies, pounding the city streets in the ultimate biker jacket and not to mention enjoying a spot of afternoon-tea (with her majesty and corgis of course), while sporting the cutest swan-print jumpsuit. Made in Britain is available now at our Oxford Circus London Flagship, New York store and Topshop.com – so whether you’re British by birth or simply British by nature, it’s time to don some Union Jack nails and wave your tips with pride!
Primark blames the weather for falling sales Image copyright Getty Images A warm winter and a cold spring has been blamed for a fall in sales at low-cost fashion retailer Primark. Shoppers left winter clothes on the rails in the run up to Christmas due to unusually warm weather, and a cold March and April depressed sales of summer clothes. As a result Primark, like other stores, had to cut the price tag to sell them. The retailer expects like-for-like sales, which ignore new-store sales, to fall 2% for the year to 17 September. "If the weather's warm consumers make do with clothes from the previous year," said Maria Malone, principal lecturer for fashion business at Manchester Metropolitan University. For retailers like Primark that causes a problem as they source their clothes from the Far East and South Asia and cannot adjust their stock to reflect the weather conditions. "Once stock is on its way you can't turn the ships around," points out Ms Malone. Pound impact Pension deficit
The Art of Disclosure: Fashion’s Influence Economy and the FTC | Intelligence | BoF NEW YORK, United States — This September, lifestyle guru Aimee Song’s first book, "Capture Your Style: Transform Your Instagram Images, Showcase Your Life and Build the Ultimate Platform," will hit retailers. And if the size of her 3.6 million-strong Instagram following is any indication, it’s sure to be a commercial success. A mere mention in one of Song’s Instagram posts is powerful marketing, attracting tens of thousands of likes and hundreds of comments. It’s little wonder, then, that companies from Laura Mercier to Dior have paid her to market their brands and products to her followers. Song is something of a poster child for fashion’s lucrative influencer economy from which top digital stars generate hundreds of thousands — and, in some cases, millions — of dollars each year in income, not to mention perks like free product, travel and meals. Are consumers being deceived? The guidelines do clearly delineate when and where disclosures should take place, however. Related Articles:
Fast fashion online business have made a fortune for owners of businesses like Zara — Quartz In its first seven years of existence, Uber has irked cities, flouted regulators, and petrified whole industries. It has yet to make money but is worth a fifth more than BMW and almost a third more than General Motors, both the owners of tons of futuristic technology, tens of billions of dollars in capital equipment, and big profits. In recent deals resembling famous speculative bubbles, rich investors eager for a piece of this juggernaut have poured hundreds of millions of dollars into custom funds that provide exposure to Uber but no equity or financial disclosure. Which is to say that investors have made a one-way, uber-bullish bet on Uber, forecasting that the company will be at the center of an utter transformation of our collective lifestyle. If not everyone is betting on it, they’re at least not betting against it. Even if you wanted to short Uber, it is generally thought impossible to do. Part I: Self-driving technology is indisputably on its way There is logic to this view.
Can big brands catch up on sustainable fashion? | Guardian Sustainable Business Imagine a pair of trousers you could throw on the compost. After years of use, they could decompose among the eggshells and tea bags to leave behind nothing but some fertile soil to help grow new raw materials. It takes the circular economy to a whole new level. This is the idea behind F-ABRIC, a range of materials developed by Swiss company Freitag. While natural fibres like cotton will compost over time, synthetic fibres like polyester won’t, and natural fibres are often blended with synthetic. The fact that it is biodegradable does not make the fabric any less hard-wearing, says one of the founders, Daniel Freitag. Freitag is not the only company looking to microorganisms for inspiration. Essi Johanna Glomb, head of design at Blond & Bieber, says: “The colours for dyes are extremely toxic and really harm the people working with them and also nature. Perhaps most intriguingly, the colours change dramatically over time, from pink to bright orange, for example, or green to blue.
Fashion e-tailer Myntra claims $1-bn sales Leading fashion brands e-tailor Myntra on Monday claimed it has crossed $1-billion (Rs.6,720 crore) in sales after discounts in July. "We have crossed $1-billion run rate in annualised GMV (Gross Merchandise Value) post discounts in July," Myntra Chief Executive Ananth Narayanan told reporters here. GMV indicates total sales in online retailing for merchandise sold through a particular marketplace over a specific timeframe. "Sales volumes were propelled by growth of our brands, increased contribution of international brands, high growth in sportswear and womenswear category and 'End of Reason' sale," said Narayanan on the occasion. The billion-dollar milestone in terms of GMV came in the month (July) when e-tailer Flipkart-owned Myntra bought e-store Jabong from the London-based Global Fashion Group for $70 million (Rs.471 crore) in cash to consolidate its position in the fashion and lifestyle segment. Bengaluru-based Flipkart acquired Myntra in May 2014 for an estimated $300 million.
How fashion is shaping the UK economy | Summit London celebrated its 61st Fashion Week this year London celebrated its 61st Fashion Week (LFW) last February, a highlight of the international fashion and retail calendar which turned global attention to the UK. No longer known as the ‘little sister’ of the big four fashion capitals, London is firmly on the map. As Changemakers in Retail, it is critical that we are up to speed on the trends, consumer insights and innovation & technology in the fashion industry. This season we were lucky enough to attend some of the shows, and were certainly not let down by the creativity and pride that shone through from our British designers. Despite the glitz, the glamour and the all-night parties, a more serious note prevailed, which is the important financial impact that the British fashion industry is having on our UK economy – £26billion to be precise! If you have any questions or would like to know more about how we can help you make more money online, contact Dave Trolle on (01482) 876876.
Burberry and Kering Best Positioned to Tap South Korea | Global Currents | BoF LONDON, United Kingdom — South Korea’s large domestic luxury market, steady influx of Chinese tourists and strong department store distribution model represents a unique opportunity for global luxury brands, according to new research by Exane BNP Paribas. Interest in South Korea has grown substantially over the past decade, driven, in part, by the country’s unique melding of fashion, music, entertainment and celebrity. Indeed, only last month luxury goods giant LVMH bought a minority stake in Clio Cosmetics in a deal valuing the South Korean cosmetics maker at $700 million. South Korea is Asia’s fourth largest economy with a gross domestic product that almost matches that of Italy and a historically weak currency that has supported one of the highest trade account surpluses in the world, according to Exane BNP Paribas. The country accounts for around 5 percent of the global market for personal luxury goods. Related Articles: South Korea, Climbing the Ranks of Asia's 'A League'
Investigating The Sustainability Claims Behind H&M ColumnIs fast fashion giant H&M really making moves to become more sustainable, or is it all just greenwashing? Editor’s Note: This is Jessica Marati’s first column for Behind The Label, which will explore whether brands claiming sustainable initiatives are going green – or just plain greenwashing. It’s so easy to love and hate H&M. In recent years, H&M has made efforts to be more transparent with its social responsibility efforts, releasing a hefty Conscious Actions Sustainability Report in 2010 that outlined its sustainability goals and action roadmap. In 2011, however, H&M stepped up its efforts with the release of a much-anticipated Conscious Collection, a white-hued line of separates made from organic cotton, Tencel®, and recycled polyester. But how much of this progress is part of an honest, dedicated commitment to doing good, and how much is just great greenwashing? THE QUESTIONABLE: H&M’s corporate transparency about its steps toward sustainability are certainly laudable.
Mulberry luxury goods maker sees profit treble Image copyright Getty Images Luxury goods company Mulberry sees profits treble following switch to focus on more affordable products. The company, best known for its leather handbags, saw annual pre-tax profits in the year to 31 March jump from £1.9m to £6.2m. Sales rose by 5% to £155.9m. Mulberry has struggled in recent years as a result of the company's failed attempt to compete with higher end brands, such as Prada and Fendi. Chief executive Thierry Andretta said it had made "significant progress". Mulberry has spent the past two years introducing new designs and bringing in lower priced bags in the £500 to £800 range. This followed ill-fated efforts to compete at the top end of the market offering bags priced at £1,000 and more. However, the shake-up in strategy appears to be working. Mr Andretta said: "We have built a strong foundation for future growth as a result of the investment made in product design and development as well as our omni-channel infrastructure.