I just got an email inviting me to a super-secret announcement over lunch tomorrow — which, Women’s Wear Daily says — is rumoured to be an announcement of a partnership with Vente-Privee, the French flash sale site that was at the forefront of the current etail consumer phenomenon.
If this is true, it will be the third in a rash of investment in the latest fashion fad that began at the end of April with Ideeli’s raising $40 million of Series C funding, which was followed Tuesday by Gilt Groupe’s raising $168 million from a group that included Goldman Sachs. And you know what they say: three examples of anything is a trend. Welcome to the new internet investment bubble: shopping!
The interesting thing is, this summer also marks (assuming all goes according to announced plans) the IPO of three fashion brands – Ferragamo, Moncler, and Prada — a coincidence that puts investors in a bit of a dilemma. If you want to sink some money into fashion, where’s the best place for it to go?
Do you go with a manufacturer or a retailer? A brand with a face, or a brand with technology? Personality or facility?
It’s a poser.
Honestly, if I was a financial giant, I’m not sure what I would tell my clients. But I’ll leave you with this totally ad-hoc personal observation.
Last weekend I was in Chicago for the 10th anniversary party of Ikram, a small Aladdin’s chest of a high fashion boutique run by an eponymous proprietor whose constant presence on her shop floor has created an enormous, and enormously loyal, clientele.
Seven hundred of them (plus a few designers from NY, London and Paris) showed up to help her celebrate, including ex White House social secretary and current media mogul Desiree Rogers, Ariel Investments’ Mellody Hobson, and filmmaker George Lucas, all of whom danced and laughed and otherwise proclaimed their absolute allegiance to a friend.
Hard to see a dot.com, no matter how much buzz they generate, creating that sort of personal connection — which is to say, that sort of indestructible client base, who get more than just clothes when they part with their money; they get a relationship.
After all, when times are hard, you can always walk away from your computer, but it’s harder to walk away from a confidante.
Vanessa has been the FT’s fashion editor since 2003, and is based in New York, though she lived in London for 12 years.