Style & the Street

Fashionable Commiseration

By Joan R. Magee

Burberry has been in existence since 1856, and has indubitably weathered many an economic storm. That doesn't preclude it from reflecting the particular ambiance of a time, whether it be political or economic.

In their London Fashion Week show, the new collection was minimalist and conservative -- almost reverential to the tumultuous financial times. Gray was the dominant color; the pallor of the models matched the tone. A luxury brand, Burberry is not for everyone, but it's impossible to escape the economic realities setting in -- no matter what tax bracket you're in. 

Does this fashionable commiseration translate into better financial performance? It appears so.

In 2008, Burberry Group P.L.C. announced total revenue increased by 18 percent. Retail revenue up 17 percent, with comparable store sales growth of percent, with Retail sales making up over 50 percent of revenue. North America and Emerging Markets outperformed. They predict a 10 percent growth in 2009, according to their stock report.

Here is the link to WSJ's coverage of the Burberry London fashion show:

WSJ Link

Dreaming is Free

By Joan R. Magee

  The economy isn't doing so hot.  Some lowlights of the past weeks include: Lehman Brothers, a venerable Wall Street investment bank, went bankrupt; Merrill Lynch was taken over by Bank of America; AIG received an $85 billion bailout; Fannie Mae and Freddie Mac have both been placed under government conservatorship; and the U.S. federal government just voted against a potential $700 billion infusion of funds to stem the biggest financial crisis since the Great Depression.

All in all, the times are trying, and as Winston Churchill said, "If you think you're going through hell, keep going."

Alas, what are people to do?  On a micro-level, it means no or less vacation time, tighter budgets -- and perhaps an urge for much-needed escapism. A fashion industry insider said that certain "lifestyle" and surf brands have been doing very well in the downturn, in part due to their conveyance of a carefree time and also their relatively low retail price points.

"Surf brands are doing so well right now because they allow the consumer to buy into the collective fantasy," Remy Holwick, a former high-fashion model who has designed for Puma, Sketchers, Fox Riders Company and Guess, among others, said.  "A girl in the middle of the country dreams of the ocean or snowboarding or an exciting vacation, and in this economic climate she can't go on the trip, but she can still buy into the lifestyle. When the economy slows, it's not that people stop spending. It's just that how they spend that changes."

"They still feel the basic need to identify with others within their chosen lifestyle, and whether they get it by surfing or by wearing the surf tee shirt, they're going to buy into it in some capacity," Holwick said.

Top Shop Cometh, secure in its strengths...

I've been praying that Top Shop come to America since I first went to London in 2000. For months, I've been hearing about the Soho store opening. If seeing is believing, then hearing is... waiting. I walked by the sign on Broadway, and it seems like it will be a reality, though does not appear to be a hard opening.

Sir Philip Green, the chief executive of Top Shop, had some enlightening things to say to the International Herald Tribune in early 2008 about the worsening economy: ".. My belief is that, if you look at the market, everybody is running to price - and I am actually running away from price. I am running to special. And that's what I think is going to see who wins and who loses."

With this mentality, let's see if the soft opening of Manhattan's Top Shop will translate into a long-term reign in the world of low-cost, high-brow fashion.

Click here to see the IHT article: http://www.iht.com/articles/2008/02/13/style/Rtop.php

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Weinstein's Bet on Legendary Brand Not-so-Sure

I first met Harvey Weinstein a year after he purchased Halston, while he was wandering around an after-party for another clothing line: his wife, Georgina Chapman's brand, Marchesa. This isn't his first excursion into fashion. He is the well-known executive producer for Project Runway, which made a move from Bravo to Lifetime. So when Weinstein and private equity firm Hilco Consumer Capital purchased the brand from for about $25 million from Neema Clothing in March 2007, according to the Wall Street Journal, it seemed logical, even prescient.

He became involved in the deal upon the recommendation of his friend, Tamara Mellon, the president of Jimmy Choo, another fashion monolith. The past months of ownership haven't garnered stellar returns on the bet, however. It could be the worsening economy, or perhaps Halston, the once ubiquitous brand of Studio 54-era starlets, needs some time to mature in the new millenium.

The night I met Weinstein, I asked about his investments in Marchesa, and he said that he heard the designer was "cute." If this is the line of logic, then it could be as good as any. Or not.

Only time will tell.

DESIGNER GOES VIRTUAL TO CUT COSTS

POSSIBLE TREND?
DESIGNER GOES VIRTUAL FOR FASHION WEEK

Mark Bouwer is going virtual this Mercedes-Benz Fashion Week, but the motivation behind it is not solely creative. Due to current economic pressures, deciding against an immensely expensive live fashion show may make sense for even some of the most successful designers.

In an interview with NY1, Bouwer said, "There's nothing like a live concert or experience, but in today’s economic climate it just makes sense to do this. It costs less than half the price."

Typically, fashion shows cost in the six figures.  His Spring 2009 collection, "Goddesses by the Swimming Pool,"  can be viewed via MarkBouwer.com on September 8.

LINGERIE MIAMI LAUNCH

September 6, 2008
LINGERIE MIAMI LAUNCH
Fashion circuit regular delving into the trendy world of microfinance

Renata Black, founder of 7Bar Global and fashion circuit regular, hosted a party Saturday night at Cipriani Downtown to promote her project, "Lingerie Miami," which will raise funds for microfinance loans "through the power of lingerie."

Speaking to a fashionista-laden crowd, while an Agent Provocateur fashion show ran on loop, Black said that a fateful encounter with a woman in India changed her life and spurred her interest in microfinance. The woman approached Black, and instead of asking for a handout, she asked for advice on how to make her own steady income. From there, Black used her personal global connections to establish a way to issue microfinance loans to some of the world's most impoverished women, two of whom joined her on stage in saris to illustrate the burgeoning success of the organization.

The event also marked the start of the "Circle of 7," a collaboration of seven American CEO's. The women include: Eva Jeanbart Lorenzotti of Vivre, Sabine Feldmann of Shape Magazine, Eva Hughes of Vogue Espanol, Susan Ivey of R.J. Reynolds, Kristi Wetherington of Capital Institutional Services, Elizabeth Funk of UNITUS Financial, and Nina Vaca of Pinnacle Technical Resources.