Tag: PPR

Bertelli: “We don’t want to be a brand that nobody wants to copy.”

Getty Images

Getty Images

The above quote is from an interview Patrizio Bertelli, aka Mr Prada, gave yesterday to Bloomberg TV, and it is probably going to set off something of a hoo-ha in fashion, which has of late become very publicly litigious when it comes to copying.

Aside from the recent Gucci/Guess case, and the recent Burberry case (they sued a bunch of Chinese counterfeiters and won $100m in a Manhattan Federal court), there is the still pending YSL/Louboutin appeal. It is striking, because for years luxury – LVMH aside – was very purposefully quiet about this. I remember being told not so long ago by PPR that they were quite active in pursuing IP issues, but that they wanted to do so under the radar. Ditto Richemont.

Yet a few weeks ago even the latter called me to tell me about a trademark case they had going (which they won) in Russia. Something has changed.

Today is the first day of Green Week, the EU’s biggest eco-conference, and to celebrate it LVMH, the EU’s biggest luxury group (in fact, the world’s), has stepped out and announced it too is going green, and plans to “encourage its more than 90,000 employees to adopt state-of-the-art environmental practices.”

Yowza.

But why is this significant? you ask. Isn’t this just marketing guff about a brand “encouraging” its employees to be good, when in fact they can’t really concretely guarantee a change in behaviour?

What high-end brands do those unpredictable but desirable, virtually-enabled, live-life-on-Facebook twentysomethings like? This is a question that obsesses luxury — after all, some chunk of said twentysomethings will become the luxury purchasers of the future, and knowing what they respond to is one of the great challenges of today, and potential cash cows of tomorrow.

The other day I had an experience that gave me some clues as to the possible answers. And it’s not what you (OK, I) might expect.

Luxury brands from PPR to LVMH may have announced more banner results this month, but according to a new report from UK luxury consultancy Ledbury Research, their CEOs may be a lot more worried about the industry’s prospects in 2012 than they are letting on.

The study, which tracked “CEO Outlook” in 25 luxury group CEOs from the abovementioned groups to Starwood, Saks, Remy Cointreau and Netjets over the last two years, found a definite drop in optimism in recent months. Check out their chart!

Ledbury Research

Ooooh. Look at that descending line (the vertices are, obviously time underneath and optimism on the side). Scary.

When I called to discuss this, however, James Lawson, a Ledbury director, said the report “is not designed to be an exercise in fear-mongering, just an indication that perhaps we should keep an eye on things.”

“Everyone knows the 2010/11 bounceback was much stronger than generally expected, so there is this nervousness about what could happen in the future that no one really wants to talk about.” But he does!

He sited statements like the following as evidence:

Today PPR, the French luxury group, owner of Gucci, Yves Saint Laurent and Puma brands, came out and did two things that I don’t think any other luxury brand has done so far: publicly put its money where its mouth is. It officially committed to environmental goals to reach by 2016 – announcing them for all to see (and measure, and wave critically in the air if the company fails to fulfill them), and it invested in a carbon off-shoot company, taking a 5% stake in Wildlife Works Carbon, with a seat on the management committee.

It all sounds great, but what does it really mean?

French goods group Hermes won the "meta-luxury" stamp of approval. Image by Getty

French goods group Hermes won the "meta-luxury" stamp of approval. Image by Getty

There’s a new entry in the ever-evolving luxury lexicon courtesy of the folks over at Interbrand: “meta-luxury.”

The term, coined to replace that old catch-all “luxury,” refers to “luxury
after luxury.” For those in search of a fuller (or more logical) explanation, two Interbrand directors, Manfredi Ricca and Rebecca Robins, have written an entire book elucidating the concept, called, not surprisingly, “Meta-luxury.” It’s not perfect, but I think it may come closer to rationalising the current situation than anything else I’ve seen thus far.

Effectively, Interbrand has noticed the same thing everyone else has: as luxury has proven one of the most resilient industries in the current downturn, there has been a rush to the high end, with everyone from coffee purveyors to detergent makers calling themselves “luxury.” Meanwhile, the stock market has its own definition — fashion, watches, jewellery and leathergoods — which does not include cars or champagne, categories most consumers consider luxury. Clearly, however, all these products and brands are not created equal, so there is an increasing need to create new categories in the space.

Tiffany & Co jewellery store in Philadelphia, US. AP Photo/Matt Slocum

Tiffany store in Philadelphia, US. AP Photo/Matt Slocum.

An interesting policy shift is creeping through the luxury industry: after long being terrified of talking about environmental/corporate social responsibility initiatives except in the most covert whispers, a number of voices are now slowly being raised.

 

There was PPR’s announcement in May that it was creating an “environmental profit & loss account” for sports brand Puma that it 1) made public; 2) then planned to extend to its luxury brands; and 3) then extend into other CSR areas. Then today Tiffany & Co unveiled a new website dedicated to their CSR policies, www.tiffany.com/sustainability (it’s a shocker of a name, I know). It’s a pretty user-friendly experience. LVMH also has a big section on their corporate site devoted to their CSR policies, including an environmental charter and environmental report, but it’s a little harder to find: three or four clicks from the home page.

Anyway, to understand just how big a deal this sudden willingness to shine a golden light on CSR is, consider two stories:

So it all came true, and PPR did, indeed, buy Italian men’s wear luxury brand Brioni. So far, so rumoured. But what does it mean? It seems to me there are two main implications to the deal:

1. Men’s wear is the new frontier.

Although widely heralded as one of the greatest men’s wear brands, Brioni itself spent several years chasing the women’s market. This began in the early noughties under then-CEO Umberto Angeloni, with ready-to-wear that looked a lot like men’s wear (think elegant cashmere suiting), and continued when the family took the helm back under Andrea Perrone, with snazzier styles by Alessandro Dell’Acqua. Mr Perrone was the founder’s grandson, but he resigned last year to make way for another non-family CEO Francesco Pesci (complicated, I know). But they all sought to tap the theory that women shopped and spent more than men.

The efforts didn’t work, and they gave up on women’s wear last August, which seems to have sat well with PPR. Indeed, in their statement, PPR was careful to call Brioni a “men’s wear-only brand,” a telling appellation. PPR has enough women’s wear brands after all; their only brand with a major upmarket men’s wear presence is Gucci. Their investment is in the guy factor – especially as it relates to China where it is the men who shop and spend more.

Jil Sander show

Jil Sander show - - spring/summer 2012. Image by Catwalking.

For everyone who was super-excited about the rumours, sparked this weekend by a report in the IHT, that Jil Sander’s Raf Simons was going to take over from Stefano Pilati as head designer at Yves Saint Laurent: well, Paul Deneuve, YSL’s chief executive, just told me it wasn’t true.

So there’s the official line.

But ooh, wasn’t the speculation fun? It actually trumped the Christian Dior/Marc Jacobs whispers for a moment there.

The stylistas attending Milan Fashion Week next month will find themselves with a spare 45 minutes to say, drink 10 espressos in a row, or add up the cost of Vogue’s Anna Dello Russo’s latest look. The reason behind this sudden gap in the schedule on September 25? Brioni’s women’s wear show has been cancelled, because more dramatically, the Brioni women’s wear line has been cancelled.

After speculation on Monday, the label released a statement on Wednesday confirming the news:

“This strategic decision has been made in order for the company to re-focus its resources on the men’s market, which is recently becoming both increasingly competitive and global.”

Brioni spring summer 2011 collection

Brioni spring/summer collection 2011. Image by Catwalking.

Brioni’s women’s wear line was far smaller than its luxury men’s wear business, and enjoyed nothing like the same level of cachet. However, the fact that the label hired designer Alessandro Dell’ Acqua to revamp its women’s wear range in May 2010 means the closure will surprise many.

While Dell’ Acqua’s shows weren’t exactly setting Milan Fashion Week on fire in creative terms, like a Prada or Jil Sander, Brioni showed many stylish pieces rendered in the extremely luxurious fabrics for which the label is known. A highlight of the spring/summer 2011 show was elegantly tailored high waisted red trousers worn with a pussy bow chiffon blouse. Autumn/winter’s tailored trousers were sleek and  flattering. The women’s brand could potentially have forged an identity as a go-to label for classic, but not staid tailoring that didn’t feel aggressive, masculine or corporate. After all, Alessandro knows how to do femininity. And where there’s a women’s brand, however small, if the name is big enough then there’s the potential to launch a fragrance and accessories…

Material World

with Vanessa Friedman

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Vanessa Friedman's blog deals with the fashion/luxury industry from both a corporate and consumer point of view, as well as the subject of dress.



Vanessa FriedmanVanessa has been the FT’s fashion editor since 2003, and is based in New York, though she lived in London for 12 years.
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