The Business of Fashion

Valentino | The last word

On the eve of his final couture show held in Paris on Wednesday, Valentino Garavani was telling Italian newspapers that business is ruining the fashion industry and that he wished he had had time to groom a successor before retiring.

Earlier this year, Permira, the private equity company, won a battle with The Carlyle Group for control of the Valentino business, which at the time was split up amongst several shareholders who had aligned themselves with different investors, leading to a down-to-the-wire battle for the venerable Italian fashion house. This may explain why Mr Valentino chose to use particularly strong language to describe the state of the fashion industry, telling Italy's Messagero newspaper that:

"The world of fashion has now been ruined. I got rather bored of continuing in a world which doesn't say anything to me. There is little creativity and too much business. The young are all doing the same things."    

Marc Jacobs: Getting into the fray

In what is what is likely a first in the fashion industry when it comes to the blogosphere, Marc Jacobs has joined the ongoing online debate raging about his supposed row with Suzy Menkes, the highly regarded fashion editor of the International Herald Tribune.

In his comment on Cathy Horyn's On the Runway blog, Jacobs says:

I did NOT stick my tongue out at Suzy Menkes……I pulled a stupid face with my tongue out in happiness for being done with what has been a great but most stressful season for me. I am not stupid, childish or a vindictive person….I had prior to the show left a silly t-shirt and a nice note for Suzy on her seat. Why would I do anything to further upset her? Right after a show!!?? Cathy and all else reading this, I am surprised that anyone who knows me at all think that I am that petty or stupid! Anyone who has ever been on a stage would know you can’t actually see the audience. I made a face at no one in particular….I didn’t have a clue as to who was sitting there. Come on guys, give me a break!!!!!

Jacobs' decision to respond to the backlash in a public forum, as opposed to using the normal channels of publicists and press releases, was a smart one. You can only respond to the blogosphere by going straight to the heart of the storm and engaging the community. Marc Jacobs' choice to do this on Horyn's blog also shows how On the Runway has become a formidable community with its own voice in the industry.   And the response from the community has generally been very positive.

Links of the week: Sexless Gucci, Gianni-less Versace, Thom and Brooks Brothers

The Times of London: G-Force
Frida Giannini, the last remaining designer of the trio that was selected to replace Tom Ford at Gucci, is an advocate for Gucci without the sex. According to The Times, the results speak for themselves with a 16% increase in sales to over £1.5b - the highest in the company's history.

The New York Times: The Murder on Ocean Drive
Gianni Versace, who was feted at a glamorous ballet last weekend in Milan, was murdered 10 years ago this month. Cathy Horyn gives us a behind-the-scenes take on that shocking week in Miami in 1997, showing a different side of Gianni's replacement, his sister Donnatella.

The Wall Street Journal: Brooks Brothers tries hip line: Will it suit?
As a collaboration with Thom Browne and Brooks Brothers launches in stores, the masses will for the first time have access to Mr. Browne's directional short-suit silhouette. The WSJ muses on the potential of the line, which while less expensive than his own astronomically-priced line, is still 30-40% more expensive that Brook Brothers normal price points.

Photoclip courtesy of the New York Times

Cathy Horyn: Video on the Runway

It seems every few weeks I come across some interesting quotes from or video clips of Cathy Horyn of the New York Times. As one of the first major fashion critics to pen a regular blog, it's not surprising that she believes in the importance of blogging to the fashion industry. Regular readers know that this is a recurring topic on the BoF, especially after what I heard from some industry people at the Harvard Business School Retail and Luxury Conference earlier this year.

This is a video I came across where Julie Fredrickson of Coutorture attempts to interview Ms. Horyn on the topic of Web 2.0 and fashion. I use the word "attempts" intentionally. As you will see, by the end of the interview, Cathy's journalistic instincts come out and she can't resist turning the tables on Julie and ends up asking about her experience in (not) gaining access to shows at New York Fashion Week. The video pre-dates the launch of Cathy's blog at the New York Times, On the Runway, but many of its key messages still ring true. 

Tom Ford in person: Go Beta First, New York

On my last trip to New York, I finally managed to see the new Tom Ford flagship store in person. After all of the hubbub about its "Hermes and Oprah" similarities, I wanted to judge for myself. Was Cathy Horyn right in criticising the high price-points as being out of reach even for the most discerning male customers? Was Horacio Silva on the mark for panning the store for its overly-exclusive environment?

I'm afraid the answer is yes. In spades.

For all of the talk about the luxurious feel of the store, I have to say it all felt quite ordinary to me. That is to say, it didn't feel different from most of the other masses of luxury stores that are out there. The grey colour palette and silver store fittings reminded me a bit of the old Gucci store formats (that are now being phased out). Sure, the furniture and materials, based on Ford's London home, were sumptuous and very tasteful. However, the store lacked that special something that makes truly unique retail formats stand out. When you walk into a Chanel store - any Chanel store -  you feel like you have truly entered the world of Chanel and all that it stands for. When you walk into Abercrombie & Fitch, there is a certain electricity in how the product and store environment go hand-in-hand to speak about the brand. 

This, the Tom Ford store did not have. Not yet, at least. For now, customers need to get through glass cabinets that hold many of the clothes more like museum pieces, than sumptuous articles of clothing. How is a customer going to feel the need to buy a beautiful cashmere sweater if he can't even touch it before asking someone's permission? This is akin to taking a child to a petting zoo and saying, "no petting allowed, unless you ask me first. "

The most disappointing thing for me is that Mr. Ford has completely misjudged the consumer he is going after. After having nailed it at Gucci, he has completely missed the mark here. Ford has insulted the intelligence of the customer by assuming he will pay the steep prices just because of all the frills. Frills or no frills, most luxury customers are very discerning about the product, and by making it so hard to form a judgment, the customer is forced to judge based on the store itself, not the product. The Gucci formula of glamour and sex won't work when you are asking a man to spend $5000+ on a suit. It's no wonder the store was completely empty.

My expections for this store were very high, even with the unfavourable media coverage that I had seen in advance. Mostly, this is because Tom Ford has been selling the idea of his eponymous brand to us for the past year and half.  It is also because I respect the man a great deal for his creativity, business acumen and personal style. So, you can say I felt rather disappointed than critical.

Many industry observers have been waiting with baited breath to see what he would come up with. Maybe this is another lesson learned for Mr. Ford, the erstwhile master of PR and spin. Be careful what you say (and how long you say it for, and how often you say it) about a big project in advance of its launch. You might just be setting yourself up for a different kind of high-profile PR than you had expected: the negative kind. Perhaps it would have been better for Mr. Ford to take a listen from the Internet world and go beta first, testing out the concept and honing it carefully before making the big splash.

© 2007 Copyright Imran Amed - The Business of Fashion.

Narcisco and Liz: A match made in heaven?

Narciso Rogriguez, designer of Caroline Bessette Kennedy's wedding dress, and Liz Claiborne, the purveyor of everything from Juicy Couture tracksuits to Lucky jeans, announced today that Liz Claiborne Inc has taken a 50% stake in Mr Rodriguez's namesake label.

Of late, we haven't seen that many large fashion conglomerates take an interest in growing small high-end businesses. This particular partnership is also of interest because on the surface, there does not seem to be a natural match between Narcisco's target market of luxury customers (who buy his collection at Neiman Marcus, Saks, Bergdorf Goodman and Barney's) and Liz's connections and expertise with lower priced Contemporary and Bridge labels (which are distributed much more broadly in stores like Bloomingdales, Macy's and JC Penney). However, with the funding power and clout of a large strategic partner behind him, Narcisco may finally realise his aims to build a global brand. According to an article in today's WWD, Liz's strategy for the brand does not  include repositioning Narciso's label to a lower price point, but rather to stick to the current high-end positioning of his designer collection while leveraging the Narcisco Rodriguez brand in licensing and non-apparel categories, where Liz has a great deal of expertise.

© 2007 Copyright Imran Amed - The Business of Fashion.

Fashion Television: Sartorialist, Blogging, Ford and Mentorship

In Canada, many young aspiring fashionistas cut their teeth on Fashion Television (or FT), hosted by Jeanne Beker. I accidentally happened upon the site recently and came across a veritable treasure trove of video content that is relevant to some of the topics recently debated and discussed on The Business of Fashion:

Fashion blogging
Any regular readers of this blog know that I have been a big fan of the Sartorialist, aka Scott Schuman, since I first came across his site almost two years ago. His was the first blog of any sort to really catch my attention because there was something really powerful about seeing clothes that are styled by real people on the street. It brings the clothes to life in a way that high-fashion editorial sometimes cannot.  FT does a great video profile of Scott that allows you to see how The Sartorialist came to be, explains how Scott thinks about his work and reveals that The Sartorialist is now receiving over 1.3 million page views per month. [You can see my own Sartorialist moment here]

The Sartorialist blog also opened my eyes to the potential of what the democracy of blogging could do for a fashion business, particularly emerging businesses with limited profiles and advertising budgets.  What if, for example, you could mouse over a sweater you like in one of Scott's photos and could discover who designed the sweater and where you could buy it online through phototagging (just like you can tag people in your photos on Facebook.com)? Its Fashion 2.0 folks and its only going to get more interesting.

There is a lot more discussion of the fashion blogosphere is in this video overview narrated by Jeanne Beker, highlighting the pros and cons of the fashion blogging phenomenon, which some say has resulted in a reported 2 million fashion blogs. Jeanne speaks to some of the world's leading fashion critics  (Cathy Horyn of the New York Times, Kate Betts from Time magazine, and Colin McDowell from the Sunday Times) to get their views on what blogging has done for them. She also speakss to the (love-him-or-hate-him) blogstar Perez Hilton.

Tom Ford's new store on Madison Avenue
FT also gives us a peek into the much-discussed Madison Avenue flagship recently opened by Tom Ford, and heavily criticised by some observers for being too exclusive and too expensive. Tom Ford gives Jeanne a personal tour of the store which provides some of Tom's own thinking on what he was trying to accomplish with the store. Jeanne does go through the price points in the store, which are truly astronomical,  including personalised underwear for $75.

Mentoring emerging designers
When emerging designers talk to me about setting up their own businesses, I often encourage them to try to get some time working in the studio of an established design house first.  This video outlines the mentorship of young proteges including Yves Saint Laurent (mentored by Christian Dior) to Francisco Costa (mentored by Calvin Klein) to Narcisco Rodriguez (mentored by Donna Karan). You can see how some of the industry's biggest names of today started their careers as apprentices to some of the biggest names from yesteryear.

© 2007 Copyright Imran Amed - The Business of Fashion. 
Scott Shuman photo courtesy of FT.

Links of the week: Tom Ford, Fashion 2.0, Kate Moss for Top Shop and Chloe's future

Top fashion business links for the week of 30 April, 2007:

New York Times - No Store is a Hero to its Valet
Either the New York Times really has it in for Tom Ford (perhaps he spurned and interview request or declined an editors request for a discount?) or there is a real issue with Tom Ford's new eponymous business. First, Cathy Horyn criticized Ford's new business for being too niche and too grand (after Ford had provided her with a private tour - you can't buy this woman's vote) and today, in its Critical Shopper feature, Horacio Silva pans the store for confusing "exclusionary for exclusive."

Modabot.de - Brave New Internet World - How the Internet is changing the Fashion Universe
Fashion 2.0 is a hot topic. The Business of Fashion recently advocated that big fashion brands should consider the Internet an avenue that they should be cruising down, albeit with necessary caution. Over at Modabot.de, the Berlin-based fashion blog for avantgarde fashionistas, they delve into the topic with vigour, providing a 360 degree view of the fashion blogosphere and some of the new social shopping sites that are bound to change the way consumers shop forever, if not now, then certainly in the years to come.

Style.com - Gathering Moss
Sarah Mower at Style.com provides a witty and always insightful peek into the Kate Moss for Top Shop event this week. This is no small business. Philip Green has managed to make this line a pilot project for expanding Top Shop to other markets, particularly the US. Not only will the line bow at Top Shops around the world, it will also be sold at Colette in Paris, Barney's in America and 10 Corso Como in Milan. Mr. Green was even on hand to provide some sales assistance himself. Clearly, this is a business he is counting on.

The Daily Telegraph - Farewell to Floaty and Flirty
Is this a harbinger of Chloe's fast fall, after its fast rise on the fashion scene? At the Daily Telegraph, they have joined the chorus of people questioning the design direction taken by new Chloe's new Creative Director, Paulo Melim Andersson. One can definitely appreciate a bit of Marni heritage in the collection he showed for A/W 2007, but the question is whether Chloe loyalists are brand faithful or design faithful. As the Telegraph points out, if it is the latter, then there are plenty of other places for girly girls to look for the look that Chloe has become known for over the past 10 years. Clearly, for a large fashion house like Chloe, a change in creative direction like this should be considered carefully as part of a broader strategic exercise. This is no less important to a fashion business than an airline choosing to fly to a new market (did you know Virgin flies to Nairobi?), a cola company changing their age old formulation (New Coke, anyone?), or Colonel Sanders tweaking the KFC recipe (do you like your chicken more crispy?).

Tom Ford: Niche Luxury with all the trimmings

Last week, Tom Ford launched his much-awaited menswear collection at a brand new New York flagship, where he provided personal tours to the fashion elite, including Bernard Arnault of LVMH and Cathy Horyn of the New York Times.

It seems that while Cathy was impressed, she didn't necessarily understand the business rationale for Tom's decision to focus solely on the most elite niche of the menswear market, i.e. men who are willing to spend upwards of $3000 on a suit. Tot top it all off, Ford has supplemented the purchase of the suit with a truly luxurious environment (read expensive capital expenditure and rent) to provide a truly unique tailoring experience.

Will Mr Ford be able to work his Gucci magic again? There is an interesting discussion speculating on this topic in the comments section of Cathy Horyn's post.

Cathy Horyn: On the runway

Although I don't always agree with her critical opinions, I have really been enjoying reading Cathy Horyn's new blog for the New York Times: On the Runway. Not only does Cathy use a more casual (sometimes downright catty) voice than in her NYT reviews, she has also started to attract a real community of fashion lovers who are engaging with each other (and with Cathy) actively through blog comments. Several characters have started to develop in the "On the Runway" community, including Autre, who has clear and well-stated views on many of the collections that Cathy has reviewed and on her reviews themselves. A veritable online frenzy often ensues, debating everything from Miucca's fabrics and Dries' prints to Stefano's cuts and Christopher's crystals.

It was very smart of the NYT to supplement its traditional fashion coverage with this community concept through Horyn's blog. It is the first successful execution I have seen on the NYT site to build a targeted community (read: loyal audience for advertisers) to take it beyond the transactional way most of us use to interact with news media. Instead of quickly digesting articles and then clicking somewhere else, readers are compelled to stay and engage each other in further discussion. This inevitably does lead to more clicks and return visits to the site, and much of it is driven through that oft-spoken-of concept of user-generated content.

I have been seeing this more and more on many news sites, including The Globe and Mail which enables comments for even its regular articles, through which sometimes hundreds of comments are posted. Style.com has also been working with the Sartorialist, who has a dedicated section on the site -- though for some reason, people here don't seem to be engaging as much -- especially when compared to the passionate conversations on the Sartorialist's own blog.

In a previous blog on the business of blogging, I spoke of how many fashion editors are being asked to write blogs in addition to their regular responsibilities. Not everyone is happy about it. But, having seen Horyn's blog and the proliferation of new fashion content on the Internet, this seems to be the only way the traditional players are going to be able to keep up with the upstarts. However, it's the old adage of "Content is King" that still prevails. Only so long as the content remains good will this strategy prevail. I look forward to seeing where Cathy takes the blog in the future.