Digital pioneer Burberry does it again, this time radicalising its whole fashion calendar This post first appeared on Forbes. If there’s one thing the fashion industry is talking about this morning, it’s Burberry’s move to “align runway with retail”. The British heritage brand, and renowned digital innovator, is shifting its fashion week calendar so it shows in-season in both February and September (starting September 2016), meaning collections will be available to buy “immediately” after they’ve appeared on the catwalk, both online and in-stores. Speaking to The Business of Fashion, Burberry’s chief executive and chief creative officer, Christopher Bailey, said: “There’s just something that innately feels wrong when we’re talking about creating a moment in fashion: you do the show in September and it feels really right for that moment, but then you have to wait for five or six months until it’s in the store… You’re creating all this energy around something, and then you close the doors and say, ‘Forget about it now because it won’t be in the stores for five or six months’.”
Dolce & Gabbana’s Local Retail Revolution MILAN, Italy — Dolce & Gabbana is to embark on a global overhaul of its directly operated retail network, starting with the opening of a new experience space in Milan on September 24th. The Italian fashion house’s announcement marks a growing trend for brands to create a localised destination for customers, shifting away from the standardisation strategy long favoured by large global retailers, which traditionally rolls out a uniform store format, merchandise mix and marketing strategy. Dolce & Gabbana said the move marks the end of the “concept store philosophy,” in favour of a new formula where “experience and storytelling,” is the focus. It currently has 222 monobrand stores across 41 countries, some of which will change to the new format and some that will remain as they are.
Tommy Hilfiger Embraces Direct-to-Consumer Shows NEW YORK, United States — The fashion industry's shift towards direct-to-consumer fashion events shows no sign of abating. Tommy Hilfiger, the PVH Corp-owned American fashion brand with annual sales of near $7 billion, is the latest of the industry’s major players to announce a shift in its operating model to offer consumers 'fashion immediacy,' synchronising runway shows with retail drops starting in September 2016, when Hilfiger will show its TommyXGigi capsule collection, created in close collaboration with Instagram it-girl Gigi Hadid. Immediately after the event, the collection will be available to buy via the company’s own retail stores and e-commerce, as well as its wholesale partners. The presentation itself — which the company promises will go beyond a traditional runway show — will air on a “global multi-media broadcast network" and will be targeted at consumers and press. In coming cycles, Tommy Hilfiger also plans to embrace "seasonless" collections.
Luxury industry in Britain is worth up to £54bn The British luxury market is forecast to be worth up to £54bn in the next four years according to a new report into the value of the sector. The luxury market contributed £32.2bn in 2013, valuing the sector at 2.2pc worth of the UK’s GDP, according to research by Frontier Economics commissioned by Walpole, the industry alliance which has over 170 brand members including Burberry, Claridges and Harrods. The analysis has put a much higher value on Britain’s luxury industry as previous estimates have valued it at around £8bn. The report looks at the luxury sector’s contribution to UK exports, the boost to tourism and the improvements it makes to society. Around 78pc of UK luxury products – defined in the report as including designer clothes, shoes and high-end cars – are destined for overseas markets.
Tom Ford & Vetements’ seasonless fashion: Big change or same old same old? - Fashion & Mash A few months ago the CFDA was discussing possible plans to turn New York Fashion Week into a more in-season, consumer-focused event on the back of the social media/live streaming revolution. We’ve not heard so much about that lately but designers seem to be going ahead and making changes anyway. The only problem is that they’re not all making the same changes. Tom Ford and label-of-the-moment Vetements were the latest on Friday to follow Burberry and announce a change to their fashion week approach. Ford will show both men’s and women’s in September, which for the men’s offer is a huge change as it’s several months after the traditional timing for men’s fashion weeks. Both collections will be available straight away and will be season-neutral.
Prada Shares Surge as Chairman Forecasts Improvement in 2017 MILAN, Italy — Prada SpA shares rose as much as 15 percent after Chairman Carlo Mazzi forecast that the Italian luxury-goods maker will return to growth in sales and earnings next year, helped by cost-cutting and online expansion in Asia. This year “is a turning point and we are now firmly on the path to sustainable growth in revenues and earnings from as early as 2017,” Mazzi said on an Aug. 26 conference call after the Hong Kong market closed. First-half earnings before interest, tax, depreciation and amortization fell 25 percent to 330 million euros ($370 million), dropping slightly less than analysts estimated.
How Tommy Hilfiger Is Rewiring For Fashion Immediacy NEW YORK, United States — “In the 40-some years I’ve been in business, I’ve always been inspired by pop culture from the aspect of fashion, art, entertainment and, today, social media and celebrity,” says the designer Tommy Hilfiger. “Those are the drivers that our company is fuelled by. It’s really about listening to the consumer and being able to mold and shape our business around consumer needs through pop culture.” On Friday, September 9, beginning at 7pm EDT, Hilfiger will take his brand’s mission to the next level with #TommyNow, a two-day event set to take place on South Street Seaport’s Pier 16, rebranded “Tommy Pier.” Burberry admits its customer loyalty is ‘lagging’ and marketing needs ‘rebalancing’ - Marketing Week Pre-tax profits fell 10% to £415.6m for the year to 31 March, while revenues dropped 1% on an underlying basis to £2.5bn. The iconic luxury brand primarily blamed the decline on Asia, citing falling consumption levels, a slowdown in Chinese tourists visiting European stores and weaker demand in Hong Kong. And Burberry expects growth in the luxury sector to continue to slow, with its CEO Christopher Bailey stating that the luxury sector will grow sales by around 2% this year, down from the 7% growth it has experienced over the last five years. Read more: Luxury brands lose their ‘cool’ status as digital challengers climb the ranks Speaking during a presentation to analysts this morning (18 May), Bailey said changes to marketing would play a big role as Burberry looks to return to growth. He explained: “There will be a big effort to rebalance our marketing activity to tell the stories of our products more powerfully.
SWOT analysis of Burberry - Burberry SWOT analysis Strengths in the SWOT analysis of Burberry Iconic fashion Brand: Having 156 years of long history, Burberry brand remains synonymous with British fashion. However, the company’s more recent fortunes have become more influenced by the tastes and aspirations of the Chinese market. The Rich Don't Drive the Luxury Sector LONDON, United Kingdom — If luxury spending was indeed driven by the rich, the luxury industry would be a niche sector serving a fortunate few, rather than a dynamic, global business selling to a consumer market measured in millions. During the past 50 years, a wave of luxury goods consumption has swept across key geographies in the world, moving from Europe to the USA in the 1970s, then Japan in the 1980s, Russia in the 1990s and, in the last 15 years, spreading across Greater China. In each case, the underlying mechanism that has fueled demand for luxury goods has been the same: the emergence of newly created wealth. New ideas, liberalisation, free trade, higher liquidity and investment all bring new opportunities for economic growth. How better to define their new identity than by possessing things other people don’t have.