Op-Ed | Why Nascent Luxury Brands Need Middlemen | Op Ed | BoF
The Kiko Kostadinov space at Dover Street Market in London | Source: Dover Street Market LONDON, United Kingdom — Direct-to-consumer e-commerce pioneers like Warby Parker and Everlane pride themselves on bypassing the middlemen who operate third-party retail distributors. In the telling of their success stories, these middlemen are often painted as meddling intermediaries, taking an unreasonably high margin that serves neither brand nor consumer. But despite the undeniable achievements of companies like Warby Parker and Everlane, there is definite value in the presence of middlemen. As argued recently by Richie Siegel, third-party retail distributors can offer clear business benefits by taking on the task of merchandising and selling product, enabling brands to focus on design. The value of fashion is about much more than pure functionality. A century and a half later, Paris remains the world’s most important fashion capital. Sure, there are alternatives. Related Articles:
What will Alexa Chung's fashion line look like? | Fashion
Alexa Chung will launch a fashion line called Alexachung in May 2017. In a statement, the 32-year-old – with typical kook – commented: “With this first collection, I aim not only to delight your eyeballs but to furnish your wardrobe with all of your soon-to-be favourite pieces.” The truth is, she’s probably on to something. Based on those collabs and staples in the Chung wardrobe, here are six things we predict you’ll be lusting after come in May next year. Denim cut-offs Chung has a particular treasured pair of cut-offs that she has worn time and time again. Piecrust collar The piecrust in Chung’s M&S collection was the breakout star, and no wonder. Waxed jacket This is a Chung festival staple and, with Chung watched like a hawk come June and Glastonbury, it’s a no brainer. Loafers Sure, Chung had a hand in the ballet flat craze of the midnoughties. Dungarees Maybe obvious but, when you’re a celebrity trying their hand at designing, obvious is your way in. Boring knitwear
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.
Victoria's Secret Photoshop 'Fail'? Or Just Plain Body-Shaming
Luxury brands must redefine the way they do business | Media Network
There were times when China was the holy grail for global retailers. Logo-obsessed Chinese buyers seeking opulence were armed with cash fresh from the economic boom. Luxury retail brands flocked to the new market, with the result of 35% of sales for brands such as Omega, Harry Winston and Balmain coming from Greater China, according to estimates by Exane BNP Paribas. The strategy of growth by opening stores in emerging and existing markets is neither new nor unique to luxury retail. The logic of this is that if consumers aren’t buying your stuff, create more stuff. From 2008 to 2011, there was a 42% spike in the number of luxury retail stores in Asia, compared with a 28% rise in Europe and 5% rise in North America, according to Lux Redux report by Boston Consulting Group. Overexposure is a bad strategy. Exactly how dangerous, luxury retailers are only about to find out. They can be solved by amplifying the stores and inventory companies already have through digital business models.
Mark Ritson: Burberry’s tumbling profits show Christopher Bailey is overstretched
At first sight one might assume that any CEO that can deliver £421m in profit from annual sales of £2.5bn is about to get a pretty juicy bonus. Nothing could be further from the truth at Burberry where current CEO Christopher Bailey has seen his 2015 package cut by 75% after the British luxury brand posted lacklustre results by its standards. Part of the problem for Bailey is one of expectation. Ever since Rose Marie Bravo rescued the ailing house in 1997, brought it back to life and then handed the reins to Angela Ahrendts to continue the brand’s stellar performance, Burberry has been consistently successful. Since 2010 the brand has averaged annual growth of 7%. Not anymore. More declines may be imminent. Recent protests for more democratic rights in Hong Kong may well have helped the local Cantonese population to send a message to Beijing. But overexposure to China is not the biggest issue right now for Burberry. Perhaps.
Burberry teams up with Harrods for 2016 Christmas Windows
London department store Harrods is working with fashion house Burberry to tell “A Very British Fairy Tale.” The retailer’s effort for holiday 2016 will kick off in November when its window displays facing Brompton Road are unveiled. Holiday windows attract crowds of shoppers and passersby, allowing the retail host to become part of consumers' traditions. A British wonderlandHarrods’ holiday windows will see the creation of a snow covered landscape and two small children as its protagonists. The window panes will include wintery scenes with flying cars, floating bathtubs and secret trails. As part of A Very British Fairy Tale, Burberry will provide an exclusively designed capsule collection. Burberry launched a similar effort in its Regent Street flagship for the month of June, giving consumers a close-up view of artisan hand embossing and monogramming. Burberry trench coat artisan The brand choose to highlight both British culture and its own history by focusing the design on rainwear.
Fashion brands struggling to find the right social influencers
Social media influencers are fast becoming brands’ go-to option for generating trust and credibility among young consumers. According to a new report by Fashion and Beauty Monitor in association with Econsultancy – both sister brands of Marketing Week – 57% of marketers and business owners in the fashion and beauty sectors use influencers as part of their marketing strategy, with an additional 21% looking to introduce this type of activity over the next 12 months. The growing authority of online commentators and YouTube stars such as Zoella has given rise to this new breed of peer-to-peer brand ambassador. The fact that 41% of respondents have been collaborating with online content creators for three years or more, in what is considered a maturing space, also suggests fashion and beauty firms are ahead of the curve in their use of influencer marketing. “It’s important brands understand that influencers have the following they do because people trust them and their opinion,” she says.
