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.nudeskincare.com/behind_the_brand/lvmh%20louis%20vuitton
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.
London’s Fashion Week began this week with some new faces coming to the big stage.
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 21st, 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.
Tali Lennox, the daughter of Annie Lennox and Israeli filmmaker Uri Fruchtmann, is coming onto the fashion scene as a model.
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.
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.
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.
New York Fashion Week Closes
To view each collection that showed this season visit Style.Com
http://www.style.com/fashionshows/collections/F2011RTW/
http://www.style.com/fashionshows/collections/F2011RTW/
Favorite Fall 2011 Pantone Colors
Rodarte for Opening Ceremony
The looks are nostalgic, inspired by road trips, dusty landscapes blended with prettiness and cool.
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://www.bnet.com/blog/publishing-style/why-ralph-lauren-8217s-luxe-new-collection-denim-is-a-sure-thing/1368
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