BCG

Today the FT is reporting that Blackstone is the clear leader in the race for the Versace minority stake – which is surprising on the surface, given that the private equity firm has never made any forays into high fashion, and private equity as a sector has had mixed results in the sector, sic Permira and Valentino, and TPG and Bally. So why the mutual attraction? I was speculating with a colleague recently, and she mentioned what is probably the magic word: hotels. Aka the Next Big Brand extension of luxury. Read more

OK, giant luxury conglomerates: time to think even more broadly about brand extensions. According to a new report from Boston Consulting Group, the luxury experiences market is now worth a whopping $980 billion (luxury experiences being defined as cars, art, home, tech, dining, hotels, travel, spas, yachting, etc.). Aka almost $1 trillion. By comparison, the personal luxury goods market is a piddling $390b. Now, where would YOU put your investment? Read more

We all know that part of Steve Jobs’ genius was taking the rules of fashion and applying them to technology, be it the importance of must-have seasonal design, or gadgets that are actually accessories, and hence identity totems. As Michel Kors pointed out to me recently, however, fashion has never exactly turned the tables; it hasn’t figured out what it should absorb from Apple. Well, today BCG is publishing a paper that suggests things might be changing. They have pinpointed a lesson. And they want the luxury world to learn it.

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If anyone wants to know the difference between Milan and New York fashion, the two cities that are most often seem as similar in their focus on the commercial as opposed to the insanely creative/conceptual, simply consider two recent pieces of news from over the pond: first, in her official term 2 Flotus portrait, Mrs O is wearing Reed Krakoff; second, the CFDA has hired Boston Consulting Group to help them determine their goals for the next five years. Fashion-as-business! It doesn’t get any clearer than that.

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