After Brexit, which way for fashion?
©Getty LVMH’s Bernard Arnault (centre) and Karl Lagerfeld (right) at Dior SS17, Paris The impact of Brexit on the fashion industry is daunting, brain-scrambling and multi-levelled. The industry directly contributed £28bn to the UK’s economy in 2015 and employs 880,000 in roles from manufacturing to retail. For many British designers and stores, there will be an immediate hit on costs and margins. During the campaign the British Fashion Council (BFC) reported that of the near-500 designers it polled, 90 per cent planned to vote for Remain. More Charlie Porter In the short term, some in the industry are happy. Luca Solca, head of luxury goods at Exane BNP Paribas, calls this positive effect “margin tailwind”. Buyers and retailers are nervous about speaking openly — they want consumers to continue shopping as if nothing has happened. Currency volatility is a huge worry. ©Getty Patrick Grant backstage ahead of the E Tautz show Other bodies are also in danger of losing funding.
While China Remains Ripe With Opportunities for Fashion Brands, Market Insight Is Needed – WWD
For companies doing business in China, 2015 will likely be remembered for the collapse of the stock market and an overall slowing of the economy, which some economists say continues to impact business in other emerging markets as well as in the U.S. and Europe. Amid the economic fallout, though, Chinese consumers continued to buy luxury goods, which included the use of cross-border, e-commerce platforms. Even with the slowdown, companies expect 2016 to perform better in China and Asia than in other markets. For this year, companies and fashion brands looking to tap into the Chinese market may also need to consider cross-border payment systems, developing relevant social media campaigns and forming strategies to maximize sales to the Chinese tourist. WWD: For your part, what were some of the major changes in the Chinese luxury market in 2015? WWD: Do you expect these changes to trigger shifts in the best practices for optimizing a brand’s social media assets in 2016.
The Copycat Economy
LONDON, United Kingdom — Copying is as old as the fashion industry itself. As early as 1903, Charles Frederick Worth began sewing labels bearing his signature into his clothes as a means of authenticating his designs. Coco Chanel considered knockoffs so inevitable that she described them as “the ransom of success.” (This position didn’t prevent her from allying with her rival, Madame Vionnet, in 1930 to sue Suzanne Laneil, a copyist caught with 48 sketches of their designs.) Today, knockoffs are more rife than ever before. Fast fashion companies like Zara and H&M have built multi-billion-dollar businesses reproducing the latest catwalk creations for a fraction of their original price. Is this copycat economy damaging designers? The Cost of Copycats “Brand loyalty is down…and the taboo of mixing high fashion and high street is largely gone,” says Julie Zerbo, editor-in-chief of The Fashion Law, a blog that covers legal and business news in the fashion industry. Introducing Regulations
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'
Economy Of Fashion: How Different Trends Reflect The Financial State
It's common knowledge fashion is cyclical in nature. The concept of “newness” in fashion doesn't refer to the premiere of a trend, but rather its revival. Why fashion cycles in this manner, however, is less obvious. There are lots of factors at play: cultural trends, politics, celebrity influence. One one of the most surprising factors to influence the cycle of fashion, though, is the state of the global economy. If you think about it, it makes sense. During tougher times, if you need new clothes, the focus is less on passing fads and more on classic, quality pieces worth the expenditure because they’ll last (which also aids in cutting down cost per wear). As FIT professor John Mincarelli tells ABC News, “In rough economic times, people shop for replacement clothes,” adding “basics” prevail during an economic downturn. Economist George Taylor was the first to notice the correlation between fashion and the economy; he developed the “Hemline Theory” to describe his findings. Pinterest How?
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.
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.
