The Business of Fashion

BoF Daily Digest | Holiday Shopping, E-commerce scales back, Luxury shame, Promoting high-end goods

Holiday Shopping Off to Strong Start (WSJ)
Due to door-buster deals, retail sales on Black Friday were strong, but crowds petered out over the course of the weekend.

As Online Shopping Scales Back, Big Names Will Dominate (Seeking Alpha)
According to a J.P. Morgan survey, "nearly 30 percent of online shoppers say they plan on spending less this year during the holidays than last year."

Luxury Shame (Newsweek)
In these difficult economic times, conspicuous consumption isn't en vogue—even for the richest of the rich.

Celebrating Luxury in the Time of Melancholia (New York Times)
Many luxury magazines are trying to figure out how to promote expensive items without seeming "out of touch."

Black Friday shopping, photo courtesy of the Boston Globe.

CEO Talk | Susan Lyne, Chief Executive Officer, Gilt Groupe

Even before Susan Lyne left her high-profile CEO post at Martha Stewart Living Omnimedia (MSLO) earlier this year, the media world speculated wildly about where she might go next. Would she take a senior role at media giant Time Inc? Or would she end up in Hollywood, where she could bring to bear some of her experience from ABC, the American television network,whose fortunes she was credited with reviving on the strength of shows like Lost and Desperate Housewives?

It turned out that neither was true. In a surprise move, she accepted an offer to become the CEO of Gilt Groupe, an innovative start-up online fashion retailer that was featured on the Business of Fashion shortly after its inception late last year.

In our latest CEO Talk, I checked in with Susan to learn about the incredible progress of Gilt Groupe since then, which has seen the online start-up secure a $5m funding round from Matrix Partners, build a team of more than 100 employees from some of the best fashion brands and retailers, and most impressively, attract a passionate membership base that now numbers almost half a million users.

BoF Daily Digest | Shopping discounts, Tiffany profit drops, Cavalli cleared, Independent retailers' strategies

Retailers Offer Big Discounts, and Then Pray (New York Times)
Retailers have been offering doorbuster sales before Thanksgiving in order to lure customers in store despite the economic downturn.

Tiffany Profit Drops, Cuts Forecast as Sales Fall  (Bloomberg)
Tiffany & Co. "said profit fell and cut its forecast as sales dropped for the first time in almost seven years amid the global financial crisis."

Cavalli Cleared of Tax Evasion (WWD)
Roberto Cavalli has been cleared of tax evasion by the Italian Supreme Court of Cassation.

Where To Find Small-Store Holiday Sales  (Forbes)
 "Independent retailers are cutting prices and adding personal touches in order to stay afloat."

Doorbuster deal at Toys R Us, photo courtesy of the New York Times.

BoF Daily Digest | Ferragamo & Australia, Giles Deacon's menswear, Mom-and-pop retailers, Ugg sales soar

"Australia", Starring Nicole Kidman, Hugh Jackman and … Ferragamo  (WSJ)
As part of Salvatore Ferragamo's "long standing brand strategy," it has made accessories for the movie Australia starring Nicole Kidman.

Giles Hearts Boys, Too (Fashionista)
Giles Deacon has launched a menswear range in collaboration with New Look.

Retail Rx for a Hip Mom-and-Pop (NY Times)
By George, a small retailer in Austin, Texas is emblematic of the challenges for mom-and-pop retailers in the current economic environment.

Ugg sales soar at John Lewis (Drapers)
At John Lewis, Uggs, the ubiquitous Australian boots, "saw a 300% increase in sales."

Scene from Australia, photo courtesy of TV.com.

British Fashion Awards | Open for business?

Yesterday evening's British Fashion Awards ceremony was a wonderful occasion to celebrate the best in British Fashion Talent. There was a very impressive list of awards categories and an even more impressive list of winners, but I couldn't fight this nagging feeling that something was missing.

Then, I realised that there was not even one award to acknowledge the various talented business people who also make their own kind of fashion magic, and are an essential part of the British fashion eco-system.

BoF Daily Digest | Makeup sales, Targeted marketing, U.S. consumer spending, Red carpet anxiety

The Continuing Decline of Makeup Sales (WSJ)
Makeup sales in the U.S. have decreased 3% compared with the same time last year.

Marketers Reach Out to Loyal Customers (WSJ)
Retailers are tapping "statistical models, relying more on targeted ads than on shotgun approach."

Massive Breakdown in U.S. Consumer Spending Going Forward (Seeking Alpha)
A new survey reveals that "another giant downturn" looms in consumer spending that will be predictably worse than the previous one in October.

Red Carpet Anxiety in Hollywood (WWD)
Red carpet dressing is an effective brand building exercise for many luxury labels, but a possible strike by SAG members could put a damper on the awards season.

Penelope Cruz for L'Oreal, courtesy of ASA.

BoF Daily Digest | DNR and Dresner shut down, Matthew Williamson & H&M, Sonia Rykiel

DNR RIP, men's fashion trade paper dead at 116 (LA Times)
DNR, the Fairchild owned menswear trade publication has succumbed to the econommy and "parental neglect" is now dead.

Dresner Checks Out: Park Ave. Retail Icon Succumbs to Economy (WWD)
New York retail institution, Linda Dresner, is to shutter its doors at the end of December.

H&M signs Matthew Williamson (Drapers)
Matthew Williamson is the latest designer to link up with H&M.

Sonia Rykiel: Designer for the independent woman (IHT)
The International Herald Tribune profiles Sonia Rykiel, the legendary French designer who is a subject of an exhibition in Paris.

Issues of DNR, photo courtesy of DNR.

BoF Daily Digest | Luxe Ad sales down, Barney’s mailer, Paris shopping, Perfumers, Macy's consolidation

For Luxury Brands, Less Money to Spend on Ads (New York Times)
The rapidly plummeting market for luxury goods in the United States (down 20.1% in October according to MasterCard) is having a knock-on effect on advertising spending.

Barney’s Designer Mailer Online Catalogue (Dualité)
Following in the steps of Net-a-Porter, Barney's "Designer Mailer" signals a continuing trend in "shoppable editorials" online.

Paris's newest and hippest shopping destination (IHT)
In Paris on Rue Mont Thabor, "a quiet [shopping] revolution has been taking place since the Maria Luisa store, with its raft of artfully selected designers, moved there after 20 years on Cambon."

Perfumers Make Their Big Holiday Push (WSJ)
Despite fragrances' slumping sales this year, companies are still launching new scents just in time for the holidays.

Macy's Said Considering Consolidation (WWD)
Macy's will consolidate its company from four into two divisions.

Marc Jacobs Holiday Party 2007, photo courtesy of The New York Times and PatrickMcMullan.com

Luxury Outlook | Innovation engine

As the big three U.S. automakers await to hear their fate on a requested bailout from the U.S. government and Citigroup teeters on the verge of bankruptcy, it now seems that the fall of Lehman Brothers, Bear Stearns and other corporate casualities was just the beginning of what is likely to be a global economic meltdown of epic proportions.

With this as the backdrop, a reader recently wrote in to ask about the prospects for aspiring job seekers in the fashion industry more generally. Others have been wondering how some of the emerging businesses that have come to the fore in recent years are faring.

The short answer to both questions is that things are extremely tough out there, but there is always opportunity for innovators.

CEO Talk | Camilla Skovgaard, Shoe designer and entrepreneur

Camilla Skovgaard is one of those rare aberrations of the current economic malaise.

While almost all other designers I have spoken to are nervously reporting order cancellations and declining or flat sales, Skovgaard's shoes have chalked up triple-digit increases for Spring/Summer 2009.

Of course, part of this growth can be explained by the rapid growth of the luxury shoe category -- it's a case of  'the rising tide raises all boats. ' And, according to a recent report by Bain & Company, shoes will continue to be the fastest growing luxury segment of all; more than handbags, apparel, watches, jewelry and fragrances.

However, Camilla's enviable success can mostly be attributed to perseverance, an incredible work-ethic, great design and pragmatism about merchandising and pricing her collection for the downturn. In our second CEO Talk, we caught up with Camilla to learn the secrets of her success.