Pity the poor luxury CEO in Francois Hollande’s France: no sooner is your wife speaking to a foreign real estate agent than the rumour mill is rife with speculation that you are about to flee the country (and maybe all those proposed wealth taxes), and set up home somewhere else. What else to conclude from the recent furore over the sight of actress Salma Hayek, aka Mrs Francois-Henri Pinault, aka wife of the CEO of Kering, the second largest French luxury group, lunching with a UK broker earlier this week? Read more
It just keeps growing! As Forbes pointed out, the Versace stake currently for sale would value the company at $5.8 billion – most likely vaulting Allegra and Santo Versace into the B-league. They would join fellow Italians Giorgio Armani, Domenico Dolce and Stefano Gabbana, Renzo Rosso, and Miuccia Prada and Patrizio Bertelli at the top of the luxury earners list – at least as of last year (this year’s rankings are still being tabulated). That makes Italy, as far as I can tell, the land with the largest amount of luxury industry billionaires. Interesting, no? Read more
Just as her former Presidential First rival is inaugurated as the face of Bulgari, Valerie Trierweiler, current First Partner of France, also upped her lux ante, appearing during Bastille day ceremonies not just in a bright pink ensemble, but with a Christian Dior bag – one with little dangling C and D charms no less. Check it out by her feet, left. These things in these situations don’t happen just by-the-by. So what do we make of this? Read more
During the couture shows the hottest topic of conversation runway-side was, unquestionably, whether or not Marc Jacobs (left, at the last Vuitton womenswear show) was going to stay at Louis Vuitton – and if he wasn’t, if Nicolas Ghesquière, late of Balenciaga, was going to get the job. Well, since then, the rumour has only gotten stronger on the blogosphere — google “Marc Jacobs leaving Louis Vuitton” and you get over 3 million responses. But amid all the speculation, there’s one fact no one seems to know.
So instead of buying Tiffany or Burberry, as long rumoured, LVMH has snapped up Italian brand Loro Piana, known for their baby cashmere and vicuna, which take soft to a whole other level. It’s a strategic move, on many levels that go far beyond quantifiable profit, even in a world obsessed with putting a number on that amorphous thing known as “brand equity.” There are a lot of reasons why, but if I had to pick the most important, I’d settle on the following: family. Read more
In more LVMH news, after Stuart Vevers announced his departure from Loewe, Delphine Arnault (below), Bernard Arnault’s eldest child, announced her arrival at Louis Vuitton. Lose some, add some. Ms Arnault is being moved from deputy managing director of Dior to deputy managing director and executive vice-president (the latter title for use in the US; the former for France) of LV, in charge of products, especially leather goods, aka the profit-generator of the brand. Now let’s read the tea leaves! 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.
I wonder what the luxury world makes of the new French initiative to protect its culture in the digital age by imposing a tax on sales of tablets, smart phones, etc? They, after all, (the luxury folks, that is) have been promoting themselves as a “cultural industry” for the last few years. I mean, the name of their pan-European lobbying group is the European Cultural and Creative Industries Alliance. In case you missed it somehow. Yet as far as I know they don’t benefit from any protectionist legislation, in France anyway. Read more
Time magazine’s 100 Most Influential People in the World is out, and there are three fashion names on it: Michael Kors, Jenna Lyons (of J Crew), and Tadashi Yanai (of Uniqlo). Notice anything similar about them?
LVMH, the largest luxury group in the world by an exponential margin, has a dumb blonde problem: it seems to be the winner in the sector, so it gets attacked and mocked most of all. For a long time, the Group’s reaction to the situation was frustration, retreat, and confusion (or sulking, depending on how you want to spin it). This week, however, they have gone on what appears to be something of a charm offensive.