LVMH and Hermes-Part 3- A self made billionaire takes on an aristocracy

The saga continues and will continue for quite some time. How dare a nouveau riche try to gain control over a family owned, operated and managed 173 year old brand. Despite this modest summation the drama that is unfolding in France is an interesting one. One which has questioned current French law and one that could have a great impact in the landscape of French luxury which has a rich history within the apparel industry.

Bernard Arnault, the wealthiest man in France, purchased a 17.1% stake in Hermes through cash-settled equity swaps back on October 23, 2010. This began the saga which will continue for a very long time but who will be victorious? History says Arnault has a pretty good chance given his patience and strong business acumen. But it is also history that leads the family of Hermes and the public to question Arnault's plans of a hostile takeover, a takeover similar to his takeover of Louis Vuitton. Many in the financial world see this saga as absurd given that it is just business and buyouts and takeovers happen all of the time. But to the Hermes family this is an audacious move made against them.

As it stands Hermes is controlled by the 3 family branches descended from the founder, Theirry Hermes, the Dumas, the Puech and the Guerrand which own a combined 73.4% stake in the company and have the only decision making control. However, as time passes and the fourth generation gets older, eventually subsequent generations will gain their shares and control in the family business. The fourth generation had only 3 descendants while the sixth generation will have 20, greatly diluting the shares of the company among several individuals. This is what Arnault and LVMH is waiting for, as the quantity of shares get smaller and the number of inheriting family members grows, the younger family members may be open to selling their shares which opens the gate for LVMH to increase their stock ownership in Hermes.

Will an Arnault and LVMH control change Hermes? Speculation suggests that given the history of Arnault's takeovers he is very concerned with protecting the integrity and history of the brands he acquires which means there could be very little to no impact on the DNA of Hermes and Hermes in turn would gain all of the resources LVMH has to offer which could expand the brand to areas of the world it is not yet located. That being said, it all depends on how LVMH wishes to expand Hermes. An expansion could result in a decreased average price in order to increase market share throughout the world which would directly impact the brand identity and DNA. But all of this is speculation, as the saga continues we will find out more. At this point in time the consumer does not appear to be phased by this drama but the backlash and comments made by the Hermes family certainly is entertaining to those of us interested in the business of this industry. Only time will tell but if history repeats itself we could see a major change in the landscape of French luxury within two to three years.

LVMH and Hermes- Part 2- French Law Could Change

Shortly after LVMH had purchased a 17.1% stake in the prestigious French luxury brand Hermes, the French government could be changing their law, why? Today the French law states that investors must make a declaration when a purchase is made more than 5% of a company's stock; however this does not include cash-settled equity swaps which was the method used when LVMH made their purchase. In an effort to protect companies from hostile coups the French government may be changing it's laws. If the law change is not made there is potential for others to do the same and with little transparency it causes a dilemma for companies and its shareholders.

Transparency on such matters enables share holders to decide when to sell and when to buy and if no one knows who is increasing their shares, if cash-settled equity swaps are being used, then the principle shareholders could change without anyone's knowledge until the deed is done.

Send the Trend

Ladies we all love accessories-they can make or break a look. Send the Trend is a new site and service that brings the hottest trends in accessories to you through a personal stylist based on your own taste and style needs. Check out the link and video below to find out more.

Send the Trend

NYC's Fashion Industry Forges Ahead For the Next Generation

Last week during the CEO Apparel and Retail Summit Mayor Bloomberg announced the plans New York City has in store to revitalize the fashion industry and lay the groundwork for maintaining its strength for the future. The plan is an aggressive multiple point plan that will make the industry current and promote and cultivate new talent to lead the industry into the next generation.

The capital of the US apparel industry is New York City which employs 165,000 people and accounts for 5.5% of the city's workforce. With this being said, each year jobs and manufacturing continue to be moved overseas and out of the country so New York has reacted by developing a plan with the Mayor to preserve the heritage and industry that has played, and continues to play such an integral role in New York's economic structure and history.

The main points of the plan are as follows:

* NYC Fashion Fund, to help emerging designers gain access to capital and support services to produce their goods.


* Project Pop-up, an annual competition to promote new and original retail concepts. Temporary pop-up stores could be created to test some of the ideas generated.


* New York City Fashion Draft, an annual event to coordinate the recruitment of college students from the United States and around the world who are interested in fashion management.


* Fashion Campus NYC, offering business seminars led by industry executives, and networking opportunities to summer interns.


* New York City Fashion Fellows, which will recognize 30 rising stars in business-related fashion management who are now often overlooked when the industry hands out awards to those in the creative end of the business.


* Designer as Entrepreneur, to help emerging designers boost their business skills through a boot camp that focuses on business plans, financial management and e-commerce.

Although New York, followed by LA, is the apparel capital in the US there are several programs, funds and resources that have the same goal in mind. Each month new resources present themselves online and in brick and mortar. Being one such resource, MODEcollective will continue to use this same philosophy in an effort to arm young talent and students with as much information and resources as possible to become active participants in the US fashion and apparel industry.

Fairchild's WWD celebrates 100 years and brings 10 year old Style.com to join the group

Big events for two of the largest resources for the fashion obsessed.

WWD, a Fairchild Publication and an icon in the fashion industry, celebrates 100 years as a publication. This month in celebration of this momentous occasion, WWD published a large edition for their milestone, filled with images, photos and features highlighting the history of the industry that they have captured in the pages of their newspaper for the past 100 years. This is an edition not to be missed and I encourage fashion enthusiasts, industry professionals and especially students and young people entering the fashion industry to pick up a copy and read some of the features. Being a fashion enthusiast and professional myself I get so excited learning more about the industry I fell in love with. As you turn through the pages of the milestone edition you read about the outside influences of fashion for the past 100 years, the founders of the New York fashion industry, the history of the designers who lead the industry today and much, much more.

In addition to WWD celebrating 100 years Fairchild Fashion group also brought the fashion resource Style.com (formerly of Conde Nast) to their group. Mutually the two companies are very positive that this is the best way to proceed for the future of Style.com. Beginning last year and continuing this year, Conde Nast Digital has made other changes to their portfolio which included giving W and Vogue their own web sites. In addition the former Men.Style.com folded and became part of GQ. This leaves us with the question, "What is next for Conde Nast Digital?"

LVMH takes a 17% Stake in Hermes

Bernard Arnault

On October 25th WWD announced that LVMH acquired a 17% stake of Hermes. Hermes, founded in 1837 is the french fashion house which is the epitome of luxury and elegance. Receiving anything in an orange box, regardless of the size, is exclusive and absolutely divine.  Three days later on the October 28th WWD announces that LVMH could possibly be interested in buying more stakes in Hermes but LVMH has said it is not interested in seeking out representation on the board of Hermes nor is LVMH interested in taking over the brand at this time.  Hermes says they will battle if a takeover attempt were to be made.

So why would Hermes be so quick to say they would fight a takeover?  History plays a significant role.

In reality many of our favorite brands, designers and luxury houses are owned or partly owned by other major organizations. However, the significance in this case is the history of LVMH, the brain child of Bernard Arnault, the 7th wealthiest man in the world at an estimated net wort of $27.5 billion USD. If we look at the history of events and circumstances that led to the establishment of LVMH we will find that looking into the past may give us some insight into future intentions.

What is the history of the establishment of LVMH, the largest luxury conglomerate in the world and why could this be a sign of what is to come?

Let's start at the beginning, Bernard Arnault had a vision which employed his savvy business sense to acquire luxury brands and to acquire the best. At 37 years old, in 1984, Arnault began this endeavor by acquiring Agache Willot, a company who went bankrupt who had the valuable asset of Christian Dior and he also financed the once-hyped Christian Lacroix and aimed to build him up from square one. When it came to creating LVMH, Arnault had done his research and exploited the conflict between Moet Hennesy's CEO and the president of Louis Vuitton in order to merge the two. Arnault above all is a smart and shrewd businessman who capitalized on buying up brands he believed in who were in financial trouble, companies who experienced conflicts and he took advantage of companies whose stock prices decreased in market crashes. This was the beginning of years aggressively pursuing, almost like a predator, brands that he coveted as he began creating his conglomerate through hostile takeovers and buyouts.

Despite the polemic approaches Arnault used to create his masterpiece, he is also responsible for revitalizing, saving, bringing many brands to the levels of success they are today as well as giving opportunity to American designers and young, emerging and modern talent the like of Michael Kors, Alexander McQueen and Marc Jacobs.

Given this history one must wonder what the plans LVMH and Arnault may have for Hermes.

Follow-up: Come hear me speak Sunday, October 24, 2010

Thank you to everyone who showed up to hear my presentation on the New Age of Retail this past Sunday. All of your positive feedback has been wonderful to hear. Many of you who attended have inquired about receiving a copy of my presentation to have as a reference; unfortunately, the presentation is part of the consulting work that I do independently and therefore is not available for distribution at this time. I do greatly appreciate the enthusiasm and I am available for future speaking engagements or business consultations pertaining to the retail and apparel industries. Should you wish to schedule a speaking engagement please do not hesitate to email me.

Please also use this blog as a platform to ask any follow up questions, inquiries or career advice that you may have.

For your reference please find below an outline that was passed out prior to the start of the presentation on Sunday.

The New Age of Retail

How has retail changed?

How is the consumer choosing to spend their money?

How are retailers adapting to the change?

1.     Value for Money-Trading down is the new trading up.

a.     Fast Fashion

b.     Designer Partnerships

c.      Diffusion Lines

2.     Quality Investments

a.     Consumers are Analyzing Investments

3.     Responsible Consumption: Be Part of the Solution

a.     Charitable Partnerships

b.     Eco-Friendly

4.     Personalization & Customization

a.     Service & Experience

b.     Product

5.     Customer Service- Know Your Customer

6.     Customer Convenience-We Want It Now!

7.     Customer/Company Relationship-Two Way Communication

a.     Crowdsourcing

b.     Social Networking Within the Brand

8.     What Else Can We Do?

a.     Invest Wisely

b.     Digital Media & Social Networking

Come hear me speak Sunday, October 24, 2010

Chicago Fashion Focus Education Day hosted by the Mayor's Fashion Council.

When: Sunday, October 24, 2010; 11 am – 12 pm 
Where: Chicago Cultural Center, 5th Floor Garland Room 

Topic: The New Age of Retail

I will be using many of the topics that I have discussed on this blog to discuss how the retail industry has changed and how designers and retailers must adapt to successfully compete in the new age of retail. I will also be sharing case studies of how current retailers are adapting and the methods they are using to move their businesses forward.

wonderMode: The Style Frontier

FashionLAB is dedicated to educating and exposing new talent to the possibilities in the fashion industry. Recently a friend of mine forwarded me this great new website that just launched that shares the same philosophy of FashionLAB. There are so many like-minded individuals that aim to grow and develop new talent that at times it amazes me what the possibilities are given the community and amount of support that is out there.

This new website is called wonderMode: the Style Frontier and its mission is to "give emerging designers and entrepreneurs a voice to build their voice on a global scale." http://www.wondermode.com/about-us.php.

Check out this new site as it continues to develop and contribute the the growth of the new generation and future of the fashion industry in the USA.

http://www.wondermode.com/about-us.php

New Retail: Consumers and the Digital Age

As life continues to get evermore hectic it has been difficult to keep up to date with my WWD's so recently I finally got around to catching up on some reading. In doing so I came across a fantastic article WWD had on their cover of their September 15th issue. I encourage every retailer regardless of their size to read this article as it gives creative ideas that other brands and retailers are doing to combat the urgency and immediacy consumers now have that has been growing as a result of the digital age. It also highlights creative solutions to the customer's need for unique and personalized product.

This article highlights the efforts of Burberry, Jeffsilverman.com and many other brands that are using the digital age to spread information about their brands, engage with customers and create new business.

http://www.wwd.com/wwd-publications/wwd/2010-09-15?id=3272312

In reading this article it reinforced what I have written about previously and speak nearly daily about with colleagues and students. Retail is in a new era and a key part of this new era is the participation of the consumer and digital media. Today as consumers we want things when we want them, we are impatient and we do not want to spend a lot of money but we are willing to spend more if product is personalized for us or we have had the opportunity to design it ourselves. The digital media goes beyond the social media of facebook, twitter and blogs and now gives the consumer front row seats to runway shows, educates them on the history of brands, brings immediacy and convenience to their purchases and now has started to make them apart of the design and production process.

Let's use Burberry as a model just as WWD had. First they created Art of the Trench (http://artofthetrench.com/) which is a social website dedicated to the iconic Burberry trench coat.  This site has created a community for the trench coat which was a partnership between Burberry and Scott Schuman of the famous blog The Sartorialist (http://thesartorialist.blogspot.com/). The Art of the Trench allows customers the world over to submit images and photos of themselves and others wearing a trench, documenting the life and history of this classic coat.

Now Burberry has evolved, just like other luxury brands like Armani, and has now begun to live stream the Prorsum runway shows. However, the Prorsum line is not only shown live stream but this season also enables the customer to order select pieces that will then be delivered straight to their homes within weeks. The fashion world has had the reputation for being distant from the consumer and many times elitist but the digital age has made brands question if that is the right approach and retailers are seeing positive results when including the customer.

Special orders, early releases and programs like men's made to measure are developing parts of the retail industry which has seen positive growth despite the challenge the retail industry has faced the past few years. These services not only provide personalization for the customer but in the current retail environment where inventory levels were so high prior to 2008 and buyers and retailers have had to scale back as a result, these programs minimize the risk for retailers by guaranteeing the sale of product prior to the production and manufacturing of it. Other companies that are using the consumer to order special product and even design it are Jeffsilverman.com (http://jeffsilverman.com/)

Some companies are taking this one step further by actually using the public as investors. Sites like Kickstarter and FashionStake are supporting emerging and new designers by providing financial public support. On FashionStake a designer can publish their collections and the public has the option to fund these designers by pre-ordering product as a buyer, becoming a funder or becoming a VIP.

Click on the links below to find out more about some of these companies.

Kickstarter
FashionStake

The Shopping Forecast

Forecasting next season's trends can be a challenge both for designers and buyers. Many times when the latest trends are featured in WWD or style.com it seems as though it is a scenario of which came first? Did the trend come before the design process or was the trend created once collections came down the runway? In actuality, it is a little bit of both. There are great trend forecasting companies like Doneger (http://www.doneger.com/web) and WGSN (http://www.wgsn.com/) that many designers use in conjunction with pantone (http://www.pantone.com/pages/pantone/index.aspx) for trends in color. There are also many popular trend forecasting websites, publications and magazines listed in the link below.

Fashion.Infomat.

However, what does the consumer want? Many times buyers and retailers find out once they are already in mid season when they have run their selling analysis and review best sellers. Are the trends designers and magazines establish before collections are purchased and delivered to stores exactly what the customer wants? Many times yes because the marketing behind these trends and the focus in magazines has told the consumer to want them. But what about the vast majority of consumers outside of the fashion cities of New York, Paris, Milan, London and LA? Many times those consumers have an entirely different perspective. Their lifestyles are different, their needs and desires are different.

Recently FashionLAB received an email about a brand new site called The Shopping Forecast (http://www.theshoppingforecast.com/). The idea behind this site is to give the public an opportunity to provide feedback regarding what they would like to see in the stores they shop in. The other cool thing about this site is that once you register with this site users are provided with an opportunity to win their favorite item each month. Now that's a pretty great incentive to give feedback on what you would like to purchase once it hits retailers.

To read more about the site please visit this link http://www.theshoppingforecast.com/blog/article/12/A-New-Fashion-Democracy-Has-Begun.aspx

Illinois Institute of Art Student Portfolio Show

This past Friday, September 24th, I had the privilege of attending the Illinois Institute of Art Student Portfolio Show and I had the opportunity to meet several talented, young individuals ready and eager to begin their professional careers.

Aside from the impressive bodies of work from the students I also found that each student was amazingly prepared, eager and positive. In conversations with many of the students I found that their time at the Illinois Institute of Art had thoroughly prepared them for the business of the industry, an aspect of the education process that I have found is many times neglected. It was such a pleasure to meet with each young person and review the hard work that they had completed and were presenting in their portfolios.

The exhibits showcased the talents of the students completing the Advertising, Digital Film & Video Production, Fashion Design, Fashion Marketing & Management, Game Art & Design, Graphic Design, Interior Design, Media Arts & Animation, Web Design & Interactive Media, Visual Communication & Visual Effects and Motion Graphics programs. Had I had more time I would have loved to have meet each student given the impressive collection of portfolios on display. I must admit it took me 3 hours to meet and speak with each Fashion Marketing & Management student and a handful of Fashion Design students.

In many of previous postings I have emphasized the need for a realistic perspective for young students and professionals when entering the work force and it was quite obvious that it is the same philosophy held by the Illinois Institute of Art. The students I met were prepared, well spoken, talented and in addition had realistic expectations and a strong work ethic willing and eager to start working.

It has been a few years since I have been in school and the evidence of how significant the role of digital media in business today was everywhere throughout the show in the websites, digital portfolios and blogs many of the students were using to promote, exhibit and sell themselves and their brand. This is a trend in line with the business of today as the world has turned to online and social media in order to market their business, sell their product, build a client base and network. It was excellent to see that these students embraced this new way of doing business as they begin their journey and I cannot say enough about the amazing staff and professionals that have prepared them so well for their next steps.


Below are just a handful of examples of the online sites, digital portfolios and blogs that I was introduced to during my visit.

Maria Somoza-Fashion Marketing & Management-Marketing Interest
www.MariaRSomoza.com
Morgan Massat-Fashion Marketing & Management
http://www.morganmassat.com/
Jessiva Van Meter- Fashion Marketing & Management
http://www.jessicavanmeter.com/
Brittany Brown Lee- Fashion Marketing & Management
http://www.brittanybrownlee.com/bdb.html
http://www.girlintheyellowcab.com/
Anthony B. Shelby II-Fashion Marketing & Management- Merchandising Interest
http://www.anthonyshelbyii.com/
Susie Brock-Fashion Marketing & Management- Buying Interest
http://www.susiebrock.com/
Cassandra Vack-Fashion Marketing & Management- Wedding Planner Interest
http://www.cassandravack.com/
Marisa Arredondo-Fashion Marketing & Management- Marketing Interest
http://www.marisaarredondo.com/
Natasha Nicole Rumpke-Fashion Marketing & Management-Product Development Interest
http://www.natasharumpke.com/

In addition to an aptitude in digital media many of the students had also been well prepared with other trends in the industry in particular the importance to consumers of being green in business as well as the importance philanthropy plays in business today. In many portfolios I saw projects focused on charities, charity events and green products. In conversations many students explained to me their interest in incorporating these two concepts in future careers and work which is not only smart but also shows that the latest generation is more globally minded and socially conscious two admirable traits in the new work force.

Overall it was evident that these students had completed a great education and had been supported by professors and advisors who valued the importance of understanding the industry and business world from a realistic and professional perspective. The students were confident, eager, talented and smart which excited and energized me.

Thank you to all of the students who spoke with me and the Illinois Institute of Art for inviting me to such an incredible show.

Wool melange dress Designed by Ashley Zaidi

  

Gown Designed by Santay Coburn, Birdalle Couture

RISD & Elle's Fashion Next Awards

Visit the Education page to find out more about the designers in the RISD & Elle Fashion awards that were showcased on Sept 9th.

How to say...

Despite having high profile names, there are many designer's whose names prove very difficult for the public. Below is a link to a BBC article that my sister in London forwarded to me. This is a very amusing article and video for any fashion enthusiast.


http://www.bbc.co.uk/news/magazine-11372095

Fashion Lab: Spring 2011 Runway Trends-Wearability & Affordabil...

Fashion Lab: Spring 2011 Runway Trends-Wearability & Affordabil...: "For the past 3 years we have seen a definite change in the retail and fashion industry so how have designers responded in order to increase ..."

Spring 2011 Runway Trends-Wearability & Affordability

For the past 3 years we have seen a definite change in the retail and fashion industry so how have designers responded in order to increase their business and market share? As New York Fashion Week has showcased the latest collections in NYC there are a few prominent trends that don't include the the actual clothing itself.

The first trend is Wearability. Wearability or commercial appeal have been dirty words in the high fashion world when it comes to the runway which is the showcase that designers are given the opportunity to promote and debut their latest collections for the global press, buyers and consumers. The Fashion Show season plays an integral role in fashion as it can be a springboard of success for many designers, collections can gain the attention of the press providing them an opportunity to showcase their designs in editorials in magazine or on the red carpet and thirdly to create a buzz in the industry that receives a response from the consumer and generates the sales which sustains their business. The international fashion scene looks forward to seeing creativity, new ideas and execution each season and often times the designers who make the greatest splash or biggest statement have reaped the most praise in the press and in magazine editorials. But today there has been a shift. It is now popular to create beautiful clothes that are wearable AND affordable. Affordable being a relative term in the fashion industry.

So back to the first trend...WEARABILITY. Today it is fashionable to have collections that speak to, connect and relate to their audiences of the everyday man and woman. Retailers are a big driving force in this trend as they must respond to the customers requests and achieve their financial goals. The only way to do this is to buy clothing  that is saleable. Through history the brands who are the most successful in this are the brands that are having the greatest success. Commercial appeal has always been an important part of turning a profit in fashion but has not always been the top priority for the entire industry. This season the runway has merged the two concepts of wearbility and fashion.

To provide you with a little history lesson using one of my most favorite designers as an example, Giorgio Armani back in 1975 built an empire on wearble clothing, striving to create clothing for the public. His success is greatly due to his genius in using this principal and his dedication to continuing to stay loyal to this idea. This concept of making clothes for people and not models, clothes that met the needs of the public and their lifestyle has made Giorgio Armani one of the best and most successful designers in the world. Though this principle was not always popular among magazines and the press it is however popular with the customer and continues to be so to this day which has created the staying power and relevance of Giorgio Armani in today's apparel industry. Another great designer prior to Armani, and one of my favorites, also held a similar principle. The designer's name was Coco Chanel. She is quoted as saying, "Innovation! One cannot be forever innovating. I want to create classics” and "Fashion has become a joke. The designers have forgotten that there are women inside the dresses. Most women dress for men and want to be admired. But they must also be able to move, to get into a car without bursting their seams! Clothes must have a natural shape." She is absolutely correct fashion, especially luxury needs to be comfortable and have a purpose in the lives of its wearers.

So how have some of the current designers incorporated this idea in their latest collections for SS011? Many designers have still included great editorial pieces and looks but have made sure that the pieces in their collections and most of the looks created to grace the runway are commercial enough to appeal to the everyday man and woman. Color pallettes have also been reviewed by designers in attempt to use colors that are more easily wearable and popular. Designers have also reviewed fabrication choices to insure comfort, durability and luxury. Lastly many designers are re-evaluating their pricing structure in order to make prices more appealing and "affordable."

The second trend is affordability. Affordability is a relative term but today there are more contemporary designers as well as second lines. At one time second lines were viewed negatively as a possible way to dilute a fashion designer's brand. In fact when Giorgio Armani launched his other lines of Emporio Armani and Armani Collezioni many designers thought it might take away from the first line of Giorgio Armani but today second lines provide an opportunity for consumers to get a piece of the designer without paying the price of their first line. Second lines like DKNY, D&G and Marc by Marc Jacobs have created new opportunities to expand their designer empires. This season more second lines have launched such as Mark & James a second line of Badgley Mischka and Z Spoke by Zac Posen.

How Do I Get Started-Part III

How do I get started is a big question--one that needs several follow ups. Through my research of my most favorite sites that are listed to the right I have come across some great information regarding how to get started in many other professions within the fashion industry.

Below are links to great articles and interviews of some top industry professionals that can help guide you in the right direction as you look to answer the question--How Do I Get Started?

How to become a fashion editor
How to become a fashion designer
How to become a fashion model
How to become a fashion photographer

Where Have All the Tailors Gone?

Today many young people interested in fashion are interested in the possibility of fame, fortune and glamour. But what about the craftmanship, discipline and pride that the apparel industry was founded upon? The sad fact is that these positions are declining and fewer young people are interested in entering careers in tailoring, dress making, patterning and manufacturing.

There are many contributing factors to why the skilled artisans and craftsmen of the apparel industry, tailoring and manufacturing have declined.

1. The time it takes to become a master tailor or dressmaker is a very long process. It takes years of studying, working and apprenticeships. The length of time, patience and dedication is a turnoff for some.

2. Increased international competition with faster productivity and cheaper labor has driven manufacturers and consumers to go oversees in an effort to keep costs low. The consumer's interest in quality made by hand garments is declining as the low cost of mass produced garments has become more appealing.

3. Everyday fashion has become so casual that consumers have found less need to invest in fine tailored/constructed garments. Why wear a suit when you can get away with a polo and khakis? Why buy hand crafted quality product from the tailors in Italy, Saville Row or even here in the good ole USA?

3. The current work force throughout the world is getting older and there are fewer masters left to train a new generation to replace them.

4. Tailoring, dressmaking and pattern making will not make you rich and with the generations growing more interested in a quick buck these fields are not appealing. In addition the growing trend in the US is that trade work in general among the middle and upper middle classes are looked down upon and many times deters young people that grow up in this socio-economic class from considering a trade as a profession.

So with this trend growing throughout Europe, the US and even Saville Row what is the future for fashion and the apparel industry?

Given the trend and growth of technology, output and productivity has increased while reducing the need for employees. Tailors and dressmakers currently self employed or employed in the luxury sector should remain stable while the most troublesome sector will come from manufacturing. Given this trend, by 2018 there is anticipated to be a 34% reduction in sewing machine operators. Even leather and shoe workers and repairers are expected to decline 14% by 2018**. Despite the current decline in positions, as the aging population currently working in the manufacturing sector retire or leave, there will be many positions available given the lack of new talent training to take over.

**Percentages as quoted by the Bureau of Labor Statistics, The United States Department of Labor

Why Work Retail if I Want a Job in Fashion?

Through my years of working in fashion there have been many times that young professionals and students starting out have scoffed at the idea of working retail at the store level. They do not understand the connection between working in retail and working in fashion which is pretty unbelievable since the two go hand in hand.

Although some may want to create art for art's sake most want to make money. Money is an integral part in supporting the continuance of your art is it not?

In addition to young designers, young marketing, merchandising, public relations professionals and students ask the same thing. Why would I have to work retail? And if you ask them for their 5 year plan it often times includes a corporate office and a luxury brand or a brand of their own. Now to be fair this is not everyone but it has been a growing majority that I have encountered over the past few years. I am not suggesting to the new generation of fashion professionals to not have big dreams, I support them but I also support achieving them intelligently and arming yourself with the strongest background and experience you can have to achieve your big dreams.

What information can you gain from working in retail or in a store?

For starters...

Who is the customer? Age, demographic, socioeconomic background
What are they looking for?
What are the shopping trends?
What are the fashion trends of the average consumer?
How do you reach them and appeal to their sensibilities?
How a retail business operates?
What support systems and positions need to be in place in order to be profitable?

These are just few of the questions that can be answered when working in retail. There is so much more to learn and it will make you a more informed, intelligent and well rounded fashion professional.

Some food for thought...

If you wish to design how do you decide who your audience is, what they are looking for and how to target and reach them? How do you know which cuts, styles and fabrics that targeted customer responds to? How do you strike that balance between incredible editorial appeal that gets you featured in fashion magazines and commercial appeal that will bring you money in the bank?

If you are considering fashion marketing and/or PR how do you know how to reach the audience of the brand you are working for? Who is that customer? What kind of events are most effective and have the highest return on your investment? What marketing and advertising strategies have the biggest impact on the front line when customers come to shop?

If you are a buyer how do you know what to buy? What silhouettes, what fabrics, what colors, what sizes? What prices is your customer looking for? When you are creating business strategies how do you know the best way to execute them on the store level? What is the best way to give product knowledge to the selling teams in the stores? What kind of product information do they need to meet the demands of the customer who is becoming more savvy and more informed?

Fashion Trivia Quiz

Click the below link to take a quick fashion quiz. How much do you know about some of the greatest modern fashion icons?

Fashion Trivia Quiz

Fashion Lab: I want to hear from you.

Fashion Lab: I want to hear from you.: "What questions and or comments do you have about the fashion industry?"

How Do I Get Started?--Buying

How do you know if buying is the right job for you in the fashion industry?

First of all, I must share with you the two biggest misconceptions. When interviewing assistant buyers many times I ask what interests them in buying.  One of the top answers is "I love to shop so I want to do it full time." If this is your answer you will be very disappointed. My second question is usually, "Do you like math?" When the answer is "No, why?" That is when I quickly recommend they find another job within the fashion industry.

Truthfully, 90% of the time buying entails analyzing business, doing retail math and working in Excel. In order to know what to buy for the market(s) you are buying for you must know who the customer is, their shopping patterns, the prices they are willing to spend, the types of items they are looking for and their sizes. How do you learn this information?

1.Most importantly... spending time in the stores you are buying for so you can see first hand who the customer is and what they are looking for.
2. Market Analysis- Reviewing sales, running and analyzing reports
3. Feedback from stores and managers
4. Industry Trends
5. Shopping the competition

Buying is a great position for individuals who like a balance between the creative and the analytical. It challenges both sides of the brain.

Buying is not all numbers and Excel though it is mostly. The fun part is using what you have learned through your analysis to put together the most profitable assortments when buying the collection in a showroom. Fashion shows are also another plus and many times you are given some sort of clothing allowance or discount on clothing to look the part and represent the company you are working for. Despite these exciting benefits don't ever forget your goal as a buyer is to make money for the company and buy the right product in order to fully capitalize on sales and grow the business.

Employers and the New Generation

Often times candidates and students ask..."What are you looking for in an employee?"
This day and age the fundamentals of a good employee have been lost and are becoming more difficult to find especially in the US.

What challenges do employers face today?

1. Growing sense of entitlement among new associates.
2. Impatience.
3. Unrealistic Expectations.
4. Lack of Committment and Dedication.

It is correct to assume that you can do whatever you put your mind to; however, that does not mean that you will have it tomorrow. Hard work, time and dedication are needed to achieve your goals. I always recommend being fair to yourself and be fair to your employer. If a young professional has the unrealistic expectation of putting a time limit on forward progression and advancement they are setting themselves up for frustration and disappointment and the employer's patience is growing thin.

For example, an assistant came to me one time and said, "I have been in my position for a year and a half and I feel the time has come for me to be promoted. I want to be promoted within 6 months or I am finding another job." The mistake here is that the assistant has just threatened their employer, secondly they have put an unrealistic time frame on their growth and thirdly, their priorities are focused on a title rather than the skills they are learning and the strength of their development.

A general guideline is that it takes at least 1 to 2 years to fully understand the responsibilities of your position when you first start out. A second rule of thumb is that you are most successful and more prepared for the next step in your career if have developed to the point that you are performing at the level you wish to be promoted to.

Some advice:

Be dedicated and committed to your work. It's the little things that count. In order to get ahead you need to go above and beyond the average.

Attention to detail and accuracy. Double check and proof read your work. Sending out errors or incorrect information on a regular basis can tarnish your integrity.

Take responsibility for your actions. There is nothing worse for an employer than to hear long drawn out excuses of why things are not correct or why things were not completed in a timely fashion.

Show up and be on time. If you don't show up prepared and ready to go you miss out on opportunities. Tardiness is not acceptable. Consistent tardiness can many times result in being excused from your position.

Be patient and focus on your learning, growth and development. If this is your focus and you succeed you will reap the benefits.

I'd like to hear your thoughts on this subject.

How Has the Retail Industry Changed since 2008?

The world of retail and fashion has changed. The importance of understanding the shift in consumer consumption has become increasingly more important. So what are some are the biggest changes happening in the industry?

Customers are spending less. The consumer is looking for value with a minimal cost to their bottom line.

Customer Service. The customer is looking to be treated as an individual with a personalized shopping experience and distinctive customer service.

Novelty pieces that are not trendy. Customers are more hesitant to make purchases on items that cannot be worn season after season. Items that are too trendy have a limited window for the wearer so for clothing that meets this description are purchased in stores like H&M, Forever 21 and Zara where the customer perceives they are getting a better value for their trends. Quality pieces that are timeless and work with their current wardrobe are pieces that the customer is more willing to spend on.

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How Do I Get Started?

One of the first questions students and young professionals ask me is,  "how do you break into the industry?"

Many times students and professionals starting out have no idea what they want to do within the industry so my first question is--"What do you want to do? What interests you about the industry?" Once you have decided what peaks your interest and what makes you passionate about the industry you can then explore your options.

Research, Research, Research.... In order to be guided into the right direction you need to know what your options are. What types of positions exist? What are the responsibilities of that position? What skills are needed to be successful in that position?

So what are your concerns, questions and comments on how to get started in the world of fashion?