Week in Review

INTERNATIONAL

LVMH Continues to Acquire Companies

Despite all of the news around LVMH and Hermes, LVMH continues to do what it has always done, acquire new brands with strong long term potential which they can also help grow and develop. Recently LVMH has been shopping for niche brands that have a natural philosophy. Two recent acquisitions include US brand Ole Henriksen Skincare and a 70% acquisition of Nude skincare.

Both Ole Henriksen and Nude are excited about the possibilities of expansion in the global market place with the support of such a large company as LVMH behind it. For Nude, there are no plans to sell the remaining 30% at this time.

http://www.nudeskincare.com/behind_the_brand/lvmh%20louis%20vuitton

http://www.cosmeticsbusiness.com/news/article_page/LVMH_buys_70_stake_in_Nude_Skincare/59261

http://www.businesswire.com/news/home/20110207005661/en/LVMH-Acquires-Renowned-Skincare-Brand-Ole-Henriksen

Industry Trend:

Natural and eco-friendly philosophies in skincare is a trend on the rise that we even see in recent commercials for Cover Girl (Natural Luxe Collection) and Revlon (Aqua Stay Mineral Powder with Coconut Water) with Taylor Swift and Halle Berry as spokeswomen.

New Faces on the London Fashion Week Scene

As New York Fashion Week comes to a close London begins their time in the fashion spotlight with their own fashion week.

http://www.londonfashionweek.co.uk/

London’s Fashion Week began this week with some new faces coming to the big stage.

James Long, known for men’s wear showcases a leather and knit-centric full women’s collection. Of course there will be plenty of men’s wear influences in his new women’s collection.

http://www.londonfashionweek.co.uk/designer_profile.aspx?DesignerID=1294

Elliot Atkinson, a graduate of Edinburgh’s Royal College of Art, joins the Fashion Week Schedule as a part of the Fashion East Group show. Although new to London’s Fashion Week, Atkinson’s Fall 2010 collection was carried exclusively by Browns Focus in London. The designer describes his aesthetic as tough and feminine but this season he says he was inspired by Americana, a big trend coming off of New York’s Fashion week.

http://www.londonfashionweek.co.uk/designer_profile.aspx?DesignerID=1647

http://www.londonfashionweek.co.uk/designer_profile.aspx?DesignerID=116

Pringle teams up with master’s degree students from the famous London’s Central Saint Martins to bring a fresh eye to their vintage designs. The Pringle Archive Project 1815-2011 allowed the students to reinterpret argyle knits from the Fifties and update them in fit and color. The collection of 14 sweaters will be displayed as a static presentation February 21^st, in the same venue as the Pringle Runway Show.

Mr. Start launched three years ago as an in house tailored clothing collection for the East London designer boutique Start London and is now coming into the spotlight of fashion week on his own.

http://www.start-london.com/shop/mr%20start-lp-4-cp-80.html

Tali Lennox, the daughter of Annie Lennox and Israeli filmmaker Uri Fruchtmann, is coming onto the fashion scene as a model.

http://www.vogue.it/en/vogue-starscelebsmodels/voguettes/2010/06/tali-lennox

NATIONAL

Unemployment Creates a Shift in Retail

The next generation of consumers will be challenged to spend. Millenials, the age group between 19 and 29, have been hit the hardest when it comes to unemployment during this recession. According to the Labor Department and WWD research the rate of unemployment for Baby Boomers (50-64 years old) is about 7.5%, Generation Xers (30-49 years old) is roughly 8.4% while Millennials is an estimated 14.8%. As Baby Boomers stay longer in their jobs as a result of the hit they took in their retirement funds , fewer positions are opening for upward mobility and promotion for the Generation Xer’s as well as new, entry level positions for Millenials. Many researchers and analysts agree that it will take many years before the labor market will recover. What is certain is that the few positions available for Millenials have a lower starting wage but over time it is certain salaries will naturally increase as it does for most anyone in the workforce. The bottom line is that salaries will start lower than they did prior to the recession.

What does this mean for retailers? Because many young Millenials entering the “real world” are entering at a time where the economy is very different from what it was for Generation Xer’s and Baby Boomers. This latest generation will be growing up in a leaner time which has directly impacted how they spend. This generation is spending less and more selective with what type of merchandise they buy. Because this is a trend many Millenials will have to face for years to come it will continue to influence their spending and many will continue this trend for the rest of their lives. There are always exceptions to the rule and some Millenials continue to spend as their parents did but this new trend of lean living and spending is something retailers must be cognizant of when planning assortments, sales strategies and overall operations and planning of the business.

Millenials are the future of the economy and since many will enter the “real world” with tremendous education debt and then be faced with challenges in finding employment, retailers will need to find a way to reach this new consumer as the ways of the past are becoming less valid.

http://millennialmarketing.com/2011/02/millennial-unemployment-can-we-afford-a-generational-snow-day/

http://jobs.aol.com/articles/2010/08/05/millennial-unemployment/

http://www.socialcitizens.org/blog/millennials-congrats-degree-welcome-unemployment

Recruiting: The Challenges of Finding New Talent

Despite jobs becoming fewer with a larger number of unemployed, recruiting remains challenging. Today’s recruiting is challenged by economic forces regarding relocations, willingness and ability to pay, flexible compensation and rising costs. But what is also impacting recruiting efforts is redefining the needs of companies and finding candidates who are qualified in these new roles. Often times the ideal candidate is not one that comes from a big name company but one who is well rounded with a broad spectrum of experience. Today a candidate in this industry must understand style and have an excellent taste level but must also understand the practicality of business and the customer. A well rounded individual is perceived at a higher value with long term potential versus a candidate with a niche.

Retaining talent is equally challenging. Many times young Millenials who are fortunate enough to get a job will leave prior to giving themselves an opportunity to grow as well as giving the company an opportunity to invest long term. With money and benefits becoming a major focus for Millenials, sometimes they become short sided and over look the long term opportunities that could put them ahead in the years to come.

A key factor for many trying to retain talent is the culture of the company. With little loyalty employees easily leave but when employees believe and buy into the company or a brand their loyalty and lasting power increases. Internal branding is just as important as external branding for both the customer and the employee. In addition to the culture of a company, employees also want to enjoy working with the people they work with and for. They want them to be interesting, challenging and overall fun. Given the fact that most people spend the majority of their lives at work, they want to enjoy it.

Google Boutiques New Tools

Google Boutiques has begun to offer analytical tools for both designers and consumers. The statement, “Knowledge is Power,” is very applicable to the retail and fashion industry. The more you know about the consumer, the stronger business you can do. Google is now offering designer analytics for designers and trend analytics for consumers. Many other retailers and companies continue to look at these types of analytics and CRM data (customer relations management) to strengthen their business. 

http://www.marketingvox.com/google-expands-boutiquescom-with-designer-analytics-no-sign-of-other-verticals-so-far-048668/

http://www.wwd.com/media-news/google-s-boutiques-com-goes-granular-3465055

What To Watch 2011-Update: Downsizing in an Effort to Increase Growth

Large superstores are no longer the appeal they once were for retailers. The solution for many retailers wanting to grow in the over-saturated marketplace of the United States is to open smaller stores. As mentioned in “What to Watch in 2011” many superstores like Walmart have been courting New York City for their urban expansion with smaller, new concept stores which fit the landscape. Not only does smaller make sense for urban settings, but with the increase of more outdoor “community” and “lifestyle” shopping centers with food and entertainment, smaller stores make more sense and are more attractive to developers.

There are many benefits to downsizing, smaller stores give retailers the opportunity to edit their assortment and focus on the best of the best making it easier for retailers to benefit from a more profitable space with higher sales per square foot. Smaller spaces also reduce the head count for staffing thus also decreasing your overall expenses.

Downsizing is just one of the strategies retailers are seeking to drive growth outside of expanding globally, enhancing on-line sales etc.

Bhldn: Urban Outfitters Venture into Bridal

Urban Outfitters enters the bridal world but on their own terms and in their own off-kilter style. BHLDN.com launched last week and sells the first collection of the new brand. Bhldn will not be sold at Anthropologie but will be sold in its own stores that are planned to open in 2012.

http://www.bhldn.com/index.cfm

  
New York Fashion Week Closes

To view each collection that showed this season visit Style.Com
 http://www.style.com/fashionshows/collections/F2011RTW/

Favorite Fall 2011 Pantone Colors

http://www.pantone.com/pages/pantone/Pantone.aspx?pg=20834&ca=4&utm_src=redfall2011

Rodarte for Opening Ceremony

Following their film success with Natalie Portman’s costumes in Black Swan, Rodarte begins designing for Opening Ceremony.

The looks are nostalgic, inspired by road trips, dusty landscapes blended with prettiness and cool.

http://www.openingceremony.us/products.asp?designerid=693&view=all

http://www.openingceremony.us/

Ralph Lauren’s New Denim Line

Ralph Lauren expands his lifestyle brand into a denim collection which aims to reinvent the American classics and giving them a more luxurious look and feel.

  http://www.bnet.com/blog/publishing-style/why-ralph-lauren-8217s-luxe-new-collection-denim-is-a-sure-thing/1368

http://fashionetc.com/news/fashion/500-ralph-lauren-collection-denim

NEW SERIES! Week in Review

Hello Everyone!

We will continue to offer stories, links and updates about the fashion industry internationally, domestically and locally but in an effort to get more information to you MODEcollective is starting their WEEK IN REVIEW which will highlight the key events and stories in the industry each week, making it easier for you to be up to date with what is going on. Please feel free to write in if there is something you wish to be highlighted in the WEEK IN REVIEW.

INTERNATIONAL

ASIA'S GROWTH SURPASSES THE REST OF THE WORLD.
Although the global economy has been pulling out of the recession, the growth has slowed this year but Asian markets continue to grow at a stronger rate. East Asia and the Pacific are leading the global recovery with an estimated 9.3% increase in GDP growth. China leads the way with a 10% increase in 2010 and is currently averaging an 8.7% increase in 2011. Despite challenges in rising costs of labor and raw materials, China shows now sign of slowing. Many retailers throughout the US, including Chicago, witnessed many Chinese tourists shopping their stores during the 3rd and 4th quarters of last year. Recently, Chicago received a visit from China's President which, despite protests both for and against the President, brought the Chinese to Michigan Avenue who also came to shop. At this point many US stores are ill-equipped to handle the difference in language and culture with the Chinese as well as other Asian visitors. Many retailers in the more international US cities like New York and LA strive to find Chinese and Asian speaking employees which many times proves difficult. Customs and cultural differences are especially evident when interacting with these foreign customers when it comes to language as well as such nuances as the importance of presentation, appropriate gesturing etc.With the Chinese and Asian countries continuing to become powerful forces in the US retail economy it would suggest a need for a strategy and approach in order to enhance the customer experience and capitalize on the business brought to the US by this powerhouse.

LVMH SAGA CONTINUES & CONTINUES...ARNAULT'S 'PEACEFUL' INTENTIONS

As the saga continues, Bernard Arnault reiterates that he wishes to be peaceful and although he does not plan at this moment to take aggressive measures he is very happy to have LVMH as a shareholder in Hermes and wishes to support the management. Arnault and LVMH continue to face challenges with the family of the luxury line who believes that LVMH will attempt a hostile takeover which was fueled after the questionable manner LVMH acquired the shares this past October with additional shares purchased shortly after. Since the beginning, LVMH has always been interested in quality, luxury and craftsmanship. Adding a brand like Hermes would certainly continue this tradition.


DOMESTIC

NYC'S FASHION WEEK IS HERE!
The Fashion Calendar
NYC Fashion Info


Continue tracking the trends and shows on www.style.com!

CHANGING OF THE GUARD AT GAP INC.

Gap has experienced many challenges in recent years which has always led to changes within the organization. Gap shakes up their staff again by changing some executives. Marka Hansen is succeeded by Art Peck as the president of Gap North America, president of Gap Inc's outlet division and executive vice president of corporate strategy. Pam Wallack who was the president of Gap Adult North America will now be the executive vice president of a new Gap Global Creative Center in New York. The Gap has been challenged in recruiting creative talent. This new division will focus on enhancing and recruiting new talent to elevate Gap brand.

In an effort to improve upon Gap brand advertising, Ogilvy & Mather has become the Gap's new advertising agency and Seth Farbman, currently the worldwide managing director at Ogilvy has been named the global chief marketing officer for Gap.

" Gap's Peck Pick Signals Murphy Making Bigger Gambles on Brand Turnaround
"Who am I?" That´s how Art Peck began his first blog post as the new president of Gap Inc.´s long-troubled North American retail store unit. "If you Google me, you won´t find much." Yes, there´s the MBA from Harvard University, two decades spent at Boston Consulting Group, and his tenure as a Gap executive since 2005 helping craft international strategy and leading its small outlet division. However, there´s a surprising hole in his vita: He´s not a style guru. "That´s right. I´m not a merchant," he wrote in his debut blog. Those aren´t exactly words that inspire confidence in retailing. "That´s not the first thing I want to hear," says Christine Chen, a retail analyst at Needham & Co. in San Francisco. In the apparel business, the merchants translate the ephemera of fashion into must-have commercial products. Unfortunately for Gap, it hasn´t had a successful merchant since Mickey Drexler, now chairman of J. Crew Group Inc., left in 2002, Bloomberg Businessweek reports in its Feb. 7 edition. That´s led to years of disappointing sales for its U.S. unit."-Bloomberg http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aGs6xtf2zceQ

J.CREW CONTINUED...

 The shareholders back out of their settlement but the battle between the shareholders and J.Crew Group Inc. continue as shareholders remain unhappy about the $3 billion deal to take J.Crew private.
http://www.bloomberg.com/news/2011-02-01/j-crew-10-million-settlement-of-tpg-buyout-suit-falls-apart-lawyer-says.html 


NEW COLLECTION- NAHM by ALLY HILFIGER & NARY MANIVONG

Ally Hilfiger, the daughter of famous fashion icon Tommy Hilfiger, pairs up with Nary Manivong, a previous nominee for the FGI Rising Star Award who also stars in the buzz-worthy documentary DRESSED, come together to create  NAHM. To find out more about the two and this new collection please visit the links below.


http://www.style.com/stylefile/2011/02/whats-in-a-nahm/
http://www.style.com/fashionshows/complete/F2011RTW-NAHM 
http://www.narymanivong.com/index.html




H&M: SUSTAINABLE CONSCIOUS COLLECTION

Like many designers and retailers sustainability has become increasingly important in the marketplace and to the consumer. H&M is having a second go at the sustainable market with the launch of The Conscious Collection. Last year H&M began their venture into sustainable fashion with The Garden Collection which had featured 69 style for women, men and children. These two collections are the starting point for the aggressive plan the company has to use only sustainable cotton by 2020. A difference from last year's marketing is that the fabrics will be labeled as "more sustainable" rather than last year's label of "sustainable."

http://www.hm.com/us/press/pressreleases/fashion/fashionpressrelease.ahtml?pressreleaseid=1184&nodeid=334

http://www.hmconsciouscollection.com/welcome/


MARK LEE SHARES HIS GAME PLAN FOR BARNEY'S

An image for Barney's Spring ad campaign

Last year the chic Barney's department store brought Mark Lee on board as the CEO. Last fall Daniella Vitalli, formerly the President of Gucci America, was brought onto the Barney's team as the Chief Merchant and Executive Vice President of all women's fashion. Charlotte Blechman also became the new Senior Vice President of marketing and communications and a few weeks ago Dennis Freedman became the new creative director for the group. Most recently Amanda Brooks was named as Fashion Director which began on February 7th.

http://online.wsj.com/article/SB10001424052748704422204576130282758912192.html
http://runway.blogs.nytimes.com/2011/02/04/barneyss-new-chief-explains-those-changes/

This week Mr. Lee outlines his game plan for Barneys. Many will not see the evolution until late fall of this year.

Highlights of Lee's Game Plan:

1. A black and white spring image campaign featuring backstage photos at fashion shows in New York, London, Milan and Paris.

2. Rennovations to the Madison Avenue flagship's main floor and men's Co-op. There will also be more of a physical connection between the men's and women's Co-op spaces.

3. Editorial microsite on the Barney's e-commerce site called "The Window." (This trend is increasing as "edvertorials" and social networking have become popular amongst many brands and designers.)

http://thewindow.barneys.com/black_and_white_ad_campaign_for_spring/ 

4. New Azzedine Alaia ready to wear space to take over the women's Prada ready to wear space. Prada ready to wear and handbags will be dropped from the assortment due to a leasing issue. (A decision prior to Lee's arrival). A Valextra handbag department will take over the Prada space on the main floor.

5. Black and white awnings will replace red ones at the Manhattan flagship which will mirror this spring's ad campaign.

6. There will be several Barney's Co-op spaces closing this year. Houston, White Plains, NY and Troy, Michigan.

Surely there will be more in store for Barney's as the year marches on.



LOCAL

LE VOYEUR: AKIRA's Spring 2011 Fashion Show

The Chicago based retailer and local fashion authority hosted their spring fashion show at the Lyric Opera this past Thursday. The show was rich, luxurious and paired down with trends highlighting pastels, florals and neutrals as well as strong color blocking, rock and metal punk influences and colorful, preppy attire from brands like Lacoste and Ben Sherman.

The show benefited the Lyric Opera and it opened with two beautiful arias performed by mezzo soprano Emily Fons. Not only was the space at the Lyric impressive but so was the show. For a first time attendant it was impressive. From a skeptic New York & Milan Fashion veteran's mouth to your ears, I was pleasantly surprised and very impressed.

The fashions presented during the show are currently available at the Akira boutiques and online at http://www.akirachicago.com/.

JCrew Update- Extension For Rival Bids & The $10 million investor lawsuit

JCrew has extended its time frame to accept rival bids for the company and its efforts to go private until February 15th but the brand is in hot water and has been since the proposed takeover of TPG Capital and Leonard Green and Partners LP.

To read more about he lawsuit visit Bloomberg:

http://www.bloomberg.com/news/2011-02-01/j-crew-10-million-settlement-of-tpg-buyout-suit-falls-apart-lawyer-says.html

POP (Pursuit of Passion)

A special invitation to all fashion, art and music lovers who want to give back and get involved in the community.

POP will be having an event February 26th to raise money and service pledges for local charity organizations that utilize the arts in the development of under privileged youth.

http://www.facebook.com/event.php?eid=189564221063353