Fashion's Richest: Top 10 Wealthiest Moguls in H1 2016 It is no secret that fashion sells. The global fashion industry is currently valued at an astounding 3 trillion US dollars, according to FashionUnited's global statistics page, making it one of the most valued sectors in the world. The only thing which sells more than fashion, is "fast fashion", which sells in enormous, unimaginable quantities. Unsurprisingly, it is fashion moguls and entrepreneurs which now make up a large slice of the world's richest list. FashionUnited previously examined the value and assets of the industry's wealthiest billionaires and millionaires at the end of 2015. In this updated list, we take a look at what has changed over the past six months and who the top 10 richest people in the global fashion industry are now. FashionUnited's Top 10 Richest Fashion Entrepreneurs in H1 2016 One of the most remarkable changes noticeable between the two lists is that nearly every individual listed saw their overall net worth decline during the first half of 2016.
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.
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. Even if you wanted to short Uber, it is generally thought impossible to do. Indeed, the company is grappling with local competitors in markets around the world—among them Lyft in the US, Ola in India, and Fasten in Russia. Consider GM.
Retailers challenge national living wage Don-Alvin Adegeest London - While the government has thus far been successful in its policy to increase the UK's national living age, some businesses and retailers are keen for the policy, set to come into full affect by 2020, to be revised or abandoned. According to the Financial Times, 16 trade associations are challenging the policy, having written to new business secretary Greg Clark recommending he “exercise caution” on the national living wage in light of the “economic uncertainties the country faces” after the Brexit vote. The national living wage is one of George Osborne's legacy policies, to ensure over 25 year-olds earn a median income, which by 2020 would be just over 9 pounds per hour. The wage was increased as of April 1st this year to 7.20 per hour. Fashion chains, supermarkets and the hospitality sector are expecting to have to raise wages. The increase in wages will mean the minimum wage for over 25 year-olds will be the highest in the developed world and G7.
Economic contribution The direct value of the UK fashion industry to the UK economy is estimated at £26bn, up from £21bn in 2009, according to data from Oxford Economics, the consultancy, published by the British Fashion Council. This represents an increase of 22 per cent in nominal terms between 2009 and 2014. If the indirect support for supply chain industries and the induced spending of employees' wages are added in, the total contribution from the UK fashion industry is £46bn.Oxford Economics estimates that fashion’s wider contribution to the UK economy in influencing spending in other industries has risen from £37bn in 2009 to over £46bn in 2014 - a 23 per cent increase.The UK fashion industry is estimated to support 797,000 jobs (down from 816,000 in 2009 which reflects an increase in productivity in the sector). Fashion is the largest employer of all the UK's creative industries. Source: The British Fashion Industry and London Fashion Week Facts & Figures, BFC, Feb 2016. Economic Value
The Hidden Gem in Tiffany’s Outlook: Access to Cheaper Diamonds | News & Analysis | BoF NEW YORK, United States — Tiffany & Co. is suffering from currency fluctuations and a jittery global economy, but there’s one definite bright spot for the luxury jeweller: lower diamond prices. The cost of commodities like gems and metals is declining, which will help bolster gross margins, the New York-based company said on a conference call Friday. Lower metal expenses have already driven an improvement in profitability, and the benefits from cheaper diamonds will show up in results next year, Tiffany said. The shift could add 3 percentage points to margins, bringing a multiyear tailwind to the jeweler, according to Jefferies analyst Randal Konik. Comparable sales — a closely watched measure — fell 5 percent globally in the fourth quarter, excluding currency fluctuations. Earnings, meanwhile, exceeded estimates. Tiffany shares climbed as high as 4 percent to $72.90 in New York on Friday. By Nick Turner and Lindsey Rupp: editors: Nick Turner and Kevin Orland.
Top 5 Global Cities To Live And Do Business In 2016 Article provided by Bayut.com When it comes to living in a foreign city, one has to consider the population, infrastructure, overall size, political context, per capita income and development path. The city’s economic growth, real estate developments and entertainment facilities also play a vital role in making decisions towards moving to a city or investing in it. Each of the cities listed below features trophy developments along with impressive mixed-use communities and have good room for growth, which is achievable through improvements in transparency, livability and business environment. 5. Being the world’s sixth most globalized city, Shanghai could become your best bet for investment in East Asia. Between 2015 and 2030, disposable incomes in Shanghai are expected to rise by over US $350 billion – more than London’s and Tokyo’s – and consumer spending may increase by more than US $250 billion. 4. 3. The city has one of the best planned and developed residential environments. 2. 1.
From Bankruptcy to Billions: Fashion’s Greatest Second (and Third) Acts | Int... United Kingdom — In fashion, nothing is permanent. Even when creative directors flee their posts or companies shutter their operations, opportunities for reinvention are often waiting just around the bend. Indeed, some of today's most successful fashion businesses went through years — and sometimes decades — of financial turmoil before achieving the level of global success they enjoy today. Rise: Gabrielle “Coco” Chanel opened her first store at 21 Rue Cambon in Paris in 1910. By the 1920s, the designer’s inimitable and thoroughly modern design point of view made her a fashion force. Her perfume, Chanel No. 5, which was introduced in 1921, made her a globally recognised icon. Breaking Point: In 1945, in the midst of World War II, Chanel was forced to shutter her couture house, although the company continued to produce fragrance and accessories. Rise: An icon of minimalism, Calvin Klein’s business was generating $30 million by 1977, just a decade after its founding. Related Stories:
In Japan, Luxury Flourishes While Economy Flounders | Global Currents | BoF LONDON, United Kingdom — Japan’s economy is struggling. Despite the efforts of prime minister Shinzo Abe, in 2015, Japan’s economy grew at an anaemic rate of 1 to 1.5 percent, according to data provided by the World Economic Forum. Since the global financial crisis, Japan, the world’s third-largest economy, has fallen into recession three times. In November, household spending fell for the third month in a row. And more turbulence came in January, when Japan’s central bank shocked world markets by adopting negative interest rates, in a bid to dodge deflation by forcing more borrowing and boost Japan’s export-sensitive economy by weakening the yen. And yet, for the past few years, Japan has been a consistent champion in the global market for luxury goods. In the year ended 31 December 2015, LVMH sales in Japan jumped 13 percent, outperforming the conglomerate’s sales growth in Europe and the US, as well as the rest of Asia, where sales fell 5 percent.
Brexit 'means economy faces 50/50 recession chance' Image copyright Reuters The UK has a 50/50 chance of falling into recession within the next 18 months following the Brexit vote, says a leading economic forecaster. The National Institute of Economic and Social Research (NIESR) says the country will go through a "marked economic slowdown" this year and next. It says inflation will also pick up, rising to 3% by the end of next year. "This is the short-term economic consequence of the vote to leave the EU", said Simon Kirby of the NIESR. Overall the institute forecasts that the UK economy will probably grow by 1.7% this year but will expand by just 1% in 2017. This would see the UK avoid a technical recession, typically defined as two consecutive quarters of economic contraction. Mr Kirby argued that the June referendum vote had led to such financial and political uncertainty that this would bear directly on the spending and investment decisions of both businesses and households. Now, the culprit is the uncertainty following June's Brexit vote.
BHS staff face more uncertainty over closure Why Americans Aren't Shopping | Intelligence | BoF NEW YORK, United States — The US economy hasn’t looked as bright since before the dark days of the Great Recession. In April 2016, the unemployment rate held steady at 5 percent. The same month, 160,000 new jobs were created. (Less than projected and slower than in recent cycles, but still double than what is needed to keep up with population growth, according to economists.) Gas is also delightfully cheap. And while Federal interest rates rose in December 2015 — from a range of 0 percent to 0.25 percent to a range of 0.25 percent to 0.5 percent — in March 2016, the Federal Reserve announced that it would halt plans to raise rates further, due to overall weakness in the global economy, a move that would be expected to boost borrowing — and spending. But while personal income and disposable income increased by 0.4 percent in March, consumer spending inched up just 0.1 percent, according to the Bureau of Economic Analysis. Fashion retailers have certainly been feeling the squeeze.
Cartier’s $600,000 Watch Shows Risks of Extending Luxury Brands | News & Analysis | BoF GENEVA, Switzerland – For over a century, Cartier has sold elegant, if simple, timepieces such as the Tank, which starts around $2,500 – affordable by Swiss watch standards, and never confused with the level of technical finesse from brands like Patek Philippe. Then a decade ago, Cartier sought to prove its own prowess, investing millions to build one of Switzerland’s largest watch factories and bringing in an industry veteran to head a fine watchmaking unit. The jeweller delved into the segment for connoisseurs known as “complicated pieces,” which sport analog mechanisms such as calendars that adjust for leap years and require painstaking hand craftsmanship. The effort culminated last year in the Rotonde de Cartier Grande Complication Skeleton, a glass-backed confection priced at more than $600,000. But then the Chinese demand that had supported the market collapsed. For Cartier, a brand traditionally associated with jewellery for women, joining that men’s club was a stretch.