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Mardi 22 décembre 2009 2 22 /12 /2009 15:25

Hermes.jpg

The French house announces Shang Xia, a new luxury brand in China

 

Paris December 21 – Patrick Thomas, Head of Hermès International unveiled that the French luxury brand is about to launch a new label called “Shang Xia” which literally means upside-down (source la Tribune and Capital.fr). Shang Xia will be a true luxury house with a cultural Chinese heritage in terms of patterns, fabrics and know-how. The brand management and the design studio will be based in Shanghai and the art direction will be under the responsibility of the Chinese designer Jiang Qionger, daughter of a famous local architect. For the launching of its “me too” company, Hermès will start to communicate during spring 2010.

 

New impulse or remedy?

 

According to the consulting firm Bain & Co, Chinese will be the main contributor to the luxury sector growth in 2010. Analysts are questioning if this launch represent a major change in Hermès strategy which failed to success in China. The company arrived too late in this huge country and has only 16 shops when competitors such as Louis Vuitton or Gucci have twice as many. Even if the new brand will be extremely luxurious, products crafted in China will be at a competitive price compared to imported goods from Europe.

 

In order to give some credibility to Shang Xia, Patrick Thomas explained that Hermès is currently discussing with a famous Parisian department store, mandatory visit for Chinese tourists in Paris.

 

Let’s hope that Shang Xia will be more successful than Shanghai Tang, the luxury fashion brand acquired by Richemont in 1998 which is still chasing success.

 

 

Yvon Le Gall

Luxury-world

 

 

http://france.hermes.com


Par Yvon Le Gall - Publié dans : Companies
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Mardi 1 décembre 2009 2 01 /12 /2009 21:45


Paris – The commercial court decided to implement the recovery plan of the shareholder Falic Group

 

Six months after the fashion house Christian Lacroix filed for bankruptcy, the commercial court of Paris decided today (1/12/09) to implement the recovery plan proposed by the current owner, Falic Group, which owns U.S. retail group Duty Free Americas. The implementation of this plan will generate a cut of roughly hundred jobs out of hundred and twenty. It also means the full stop of the couture and ready-to-wear activities (source Le Figaro 1/12/09).

 

Around a dozen of employees should remain to manage the license contracts for accessories and perfumes. As a repeating story, this is what happened to the French fashion house Patou when a young talented designer named Christian Lacroix left the company in the 80’s.

 

No credible buyer for the company

 

This time, the bride traditionally closing the couture fashion shows, did not find any acceptable fiancé. “The court rejected the propositions made by the different potential buyers and decided to validate the continuation plan proposed by the current shareholders” declared the fashion house lawyer Simon Tahar. “The court excluded a total liquidation which would have led to the end of the company” he added.

 

During the last months, groups such as Borletti or the Financiere Saint-Germain submitted offers. But the two short-listed competitors were the French investment group Bernard Krief Consulting (BKC) and the Emirati sheikh Hassan ben Ali al-Naimi, nephew of the ruler of Ajman, in the United Arab Emirates.

 

The designer Christian Lacroix enthusiastically supported the sheikh proposal to allocate a global budget of EUR100 million for cleaning the debts and absorbing the future losses necessary to re-launch and develop the brand.

 

Unfortunately, no financial guarantee was provided on time by the two competitors, so the court favoured the shareholders solution.

 

A feeling of relief                        

 

Nicolas Topiol, CEO of Lacroix, indicated that he felt “a little bit relieved” and he said that the court decision allows “the company to be preserved and gives a chance for redeployment” (source Le Figaro 1/12/09). The CEO does not exclude any future agreement with the Emirati sheikh.

 

The way of the cross          

 

After such a tragic end, it may be difficult for Christian Lacroix to stay in the eponymous company. From now, the brand will join the long list of famously named fashion houses waiting to be re-launched with new talents in design and management.

 

 

Yvon Le Gall

Luxury-world





Par Yvon Le Gall - Publié dans : Companies
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Lundi 19 octobre 2009 1 19 /10 /2009 22:43





Oct 9: Japanese fashion designer Yohji Yamamoto files for bankruptcy protection

 

TOKYO (AP) Japanese fashion design house Yohji Yamamoto says it has filed for bankruptcy protection. The company said its sales had been battered by sluggish demand amid the global economic slowdown with debts totaling six billion yen ($67 million). Under Japan’s corporate rehabilitation law, the designer house will continue its business at home and abroad. The company said designer Yohji Yamamoto will continue his work (source: Yahoo News).

 

Brand history

 

The label was founded in 1972 and first arrived on the international circuit in 1981. Along with Rei Kawakubo at COMME des Garçons, he spearheaded the avant-garde movement then emerging from Japan. Yamamoto created recognizable pieces with masculine shape inspired by Japanese workwear and country clothing. Most of the pieces came in black and were known for their studied simplicity hiding the complexity of the work. Yamamoto has diversified his activities by collaborating with brands such as Addidas and creating labels such as Y’S or Y-3.

 

Recession claimed another fashion victim

 

Many reasons can explain the fall of the Yamamoto’s house.

 

“I concentrated too hard on making clothes and left too much responsibility to higher management” the designer told a press conference in Tokyo early October (source: The Independent). Even if the strength of the yen can be blamed, it is surely not sufficient to explain a $67 million debt.

 

From a sales perspective, the high price tags became a handicap when the market shrank.  The recession is profitable to labels selling basic pieces with nice design, good quality and reasonable prices. The very affordable Japanese brand Uniqlo is about to make a record year. COS, the premium subsidiary launched in 2007 by H&M, seems also on track to deliver solid results with an excellent notoriety.

 

Marketing also contributed to the plight. A lack of diversification in some lucrative segments such as leather goods, cosmetics and fragrances contributed to the brand decline. Interesting enough, the same analysis applies to the French fashion house Christian Lacroix which is currently facing the same critical situation. It seems that after some years of existence, an international expansion requires to be funded by brand stretching as did Gucci or Dior.

 

Last but not least, the “Hiroshima Chic” style of Yamamoto grew old and so did his unconditional customers. His style was an intelligent alternative to the European classical design inspired by the traditional French Haute-Couture. And it perfectly matched with the global trends in design, music and architecture of the eighties: black, sharp and industrial. But times changed and this aesthetics passed away

 

As many other designers, Yamamoto’s focus on clothing is noble and respectable but fashion is also a business and profitability is not an option.

 

 

Yvon Le Gall
Luxury-world

http://www.yohjiyamamoto.co.jp/

 

 

 


 
Par Yvon Le Gall - Publié dans : Companies
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Vendredi 25 septembre 2009 5 25 /09 /2009 02:39





Paris – A new bidder created the surprise this week by announcing an offering to takeover the French fashion house

 

After a 22 years loss-making business and a negative result of 10 million euros ($14.3 million) in 2008, the French fashion house Christian Lacroix filed for bankruptcy last May. During the summer, the administrator received offers from three companies proposing to take over the fashion house from the current shareholder, Falic Group, which owns U.S. retail group Duty Free Americas

 

The designer made a joint bid with the Italian group Borletti, main shareholder of the department stores Rinascente (Milan) and Printemps (Paris). Borletti was said to be the preferred solution and on Sept 7, Reuters reported that “the administrator for Christian Lacroix hopes owners Falic Group can reach an agreement with Italian businessman Maurizio Borletti on a rescue plan for the French fashion house by the end of the month”.

 

Another bid was submitted in July by the French turnaround investment group Bernard Krief Consulting which is known to takeover medium-sized companies in bankrupt. The administrator announced to reuters that Bernard Krief Consulting reinforced its proposal by submitting a revised bid, last week, with a financial partner from the U.A.E. (source Reuters 22/09/09)

 

The third competitor is the Financiere Saint-Germain, which acquired china and cut-glass makers Haviland, Lalique and Daum.

 

Then, on Sept 21, Le Figaro announced that the administrator talked about “new candidates, apparently credible and wealthy” and, according to the newspaper, it is the ruling family of Ajman, the smallest of the seven Arab emirates. Sheikh Hassan ben Ali al-Naimi, nephew of the ruler, sent a letter of intent to the administrator and is finalizing an offer of more than 50 million euros. The sheikh plans to make the brand profitable within the next three years, in particular by creating synergies with other activities such as real-estate and luxury yachts. (source Le Figaro 21/09/09)

 

The sheikh would be ready to discuss with the Falic brothers but an alliance would be unlikely because the new comer wants to be the sole decision-maker.

 

Ajman is a micro state of 460 km² and 250,000 habitants located close to Dubai.

 

Decision in a very near future  

 

Officially, the deadline decided by the administrator for bid submission is Sept 25. But as this case is highly visible in France, the prevailing logic may be political as much as financial. 125 jobs are at stake, not mentioning the fact that Christian Lacroix is one of the very last fashion houses playing in the Haute-Couture arena.

 

During the last weeks, the designer met the Ministry of Industry twice, on July 28 and Sept 7, and in the current economical context, the Ministry may push for a French solution rather than giving the lead to foreign investors.


Yvon Le Gall
Luxury-world

http://www.borlettigroup.com/

http://www.krief-group.com/



Par Yvon Le Gall - Publié dans : Companies
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Lundi 17 août 2009 1 17 /08 /2009 12:15


Escada goes bankrupt

On August 13th, the German company Escada AG filed for bankruptcy in Munich local court. This was the conclusion of months of financial negotiations as the company market contracted and the debt exploded.
Bloomberg said “Escada wanted 80 percent of bondholders to exchange old debt for new notes and only received backing from about half of investors. That derailed a plan to obtain a bank loan and raise new capital, forcing the company into insolvency.”

Escada bankrupt
The company said a number of restructuring measures had been contingent on the bond swap success, but it did not get enough support from the shareholders. For example, a plan to raise EUR 30 million through the company’s biggest investors was contingent on the bond exchange going trough, as was a credit extension of more than EUR 13 million.

Escada bankrupt
Out of fashion, out of business

Escada’s fall started after 1992, when the owner and chief designer Margaretha Ley died. Since, many executives and shareholders followed one another without finding the solution to boost the company.

Escada bankrupt
Instead of building a global brand such as Gucci, Burberry or Prada, the executive staff restricted the company on the sole segment of women ready-to-wear. While the competitors generated a very profitable business in leather goods, shoes, accessories and perfumes, Escada was struggling with the constraints of stock management in ready-to-wear.


In terms of image, the company did not regenerate and was perceived as quaint. When a young generation of designers arrived in the 90’s (Tom Ford, Christopher Bailey, Stella McCartney) with new style proposals, Escada kept on doing the same clothes without any possible brand identification. Even the double-E logo looks like a counterfeited logo of Chanel or Gucci. Not mentioning the brand identity in the shops with a very middle range look when competitors massively invested in renovating their own shops and creating impressive flagships all around the world. In a world of brand recognition, image deficit is a killer.


Last but not least, the group multiplied the shop openings without measuring the size and profitability. And if the executive staff invested in Russia, emerging markets such as China remain unexplored.

Escada bankrupt
An international company


Escada was founded in 1976 by a Munich couple Wolfgang and Margaretha Ley.
Escada bankrupt
The German company, specialized in women's apparel, met success by selling colorful, highly decorated sportswear.
scada bankrupt
Margaretha Ley, who was a former model of Parisian designer Jacques Fath, remained chief designer of Escada until her death in 1992.
scada bankrupt
In May 2009, the company sold its mid-market subsidiary Primera which included the brands Laurel, Cavita, Apriori and Biba. Primera weighted 36% of the group activity and employed 1,800 persons out of 4,027.
Escada bankrupt
Today, Escada operates 182 of its own shops and 225 franchise shops in more than 60 countries, employing about 2,200 people – 600 of whom are in Germany.
scada bankrupt
In the fiscal year 2008, the company posted EUR 528 million in sales but a net loss of EUR 70 million. In the first half of the fiscal year ending in April, it lost EUR 90 million.
Escada bankrupt
Escada operates 182 of its own shops and 225 franchise shops in more than 60 countries, employing about 2,200 people – 600 of whom are in Germany.
scada bankrupt
The company biggest investors include Russian millionaire Rustam Aksenenko (20.9% of the stock) and German billionaires Wolfgang and Michael Hertz (12.5% of the stock).



Yvon Le Gall

Luxury-world

http://www.escada.com/


Par Yvon Le Gall - Publié dans : Companies
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Mercredi 3 juin 2009 3 03 /06 /2009 03:15
 

La maison Christian Lacroix, une des dernières maisons de haute couture française, vient d’être placée ce jour en redressement judiciaire par le tribunal de commerce de Paris, a indiqué Me  Simon Tahar, avocat de la société. La maison, qui emploie 125 personnes, s’était déclarée le 30 mai dernier en cessation de paiement.

 

D’après Le Monde (2 juin), l’entreprise avait enregistré en 2008 une perte de 10 millions d’euros pour un chiffre d’affaires de 30 millions d’euros et la collection automne-hiver 2009/2010, présentée en mars, a vu les commandes chuter de 35%.

 

Historique

 

Après avoir dessiné les collections de la maison Jean Patou, le couturier Christian Lacroix a créé la maison de couture éponyme en 1987 avec le support du groupe LVMH. En 2005, après une longue période de mauvais résultats récurrents, Bernard Arnault décide de se séparer de la maison et la cède à un groupe américain spécialisé dans le duty free.

 

Les raisons des difficultés

 

Au-delà de l’indéniable talent de couturier de Christian Lacroix, il y a cependant un certain nombre de faiblesses, liées au positionnement de la société, dont l’accumulation a finalement provoqué cette situation difficile.

 

Faible extension de la marque

 

Il est communément reconnu que la rentabilité d’une maison de couture passe, de manière quasi-obligatoire, par l’extension de la marque à des territoires tels que :

-          Les parfums,

-          Les cosmétiques,

-          La maroquinerie,

-          Les lunettes,

-          L’horlogerie,

-          La joaillerie.

 

Des maisons telles que Dior (les sacs), Givenchy (les parfums) ou Chanel (l’horlogerie et les accessoires) maitrisent parfaitement cet exercice qui leur apporte un double bénéfice :

  1. 1. Ces nouveaux territoires génèrent de très confortables marges qui permettent d’absorber les coûts faramineux liés à la réalisation et à la présentation des collections de haute couture.
  2. 2. Ces activités permettent de sécuriser un revenu qui est moins dépendant de la décision d’achat de quelques centaines, voire dizaines, de clientes. Les ventes unitaires sont plus faibles mais le nombre de clientes se compte en milliers.

 

Donc, aujourd’hui la couture se pratique soit dans des structures artisanales de faible effectif (Dominique Sirop, Adeline André, Franck Sorbier,…) soit au sein de marques globales avec des stratégies d’attaque extrêmement affutées (Dior, Chanel, Armani,…). Hors, il s’avère que les multiples tentatives de la maison Christian Lacroix d’étendre la marque, vers le parfum ou la maroquinerie par exemple, se sont avérées peu concluantes. Celà amène à un problème beaucoup plus sérieux qui est le déficit d’image, ou de notoriété, de la marque Christian Lacroix.

 

Déficit d’image

 

Le déficit d’image n’est pas directement lié au talent du couturier mais plutôt à la difficulté de créer une marque forte,  Mais avec une marque éponyme le nœud du problème est que le créateur de la marque se confond avec elle et, par conséquent, tout repositionnement de la marque peut être vécu par celui-ci, au mieux comme une frustration, au pire comme une critique ou une sanction.

 

De manière générale, une marque forte doit être :

-          Connue internationalement (Vuitton, Prada, Burberry,…)

-          Trans-générationelle (Chanel, Dior, Vuitton,…)

-          En perpétuelle évolution et à l’affût des tendances (Dior, Chanel,…)

 

Il est évident que la maison Christian Lacroix n’a jamais construit une image internationale aussi forte que celle de ses principaux concurrents.

Mais le plus gênant c’est peut-être ce style reconnaissable que le couturier n’a cessé de décliner saison après saison pendant 20 ans. Chez Dior, John Galliano se ré-invente à chaque saison, chez Chanel, Karl Lagerfeld arrive à jouer plusieurs fois par an une nouvelle partition avec le même orchestre. Par contre, le style Christian Lacroix s’est un jour figé et, depuis, les collections se suivent et se ressemblent, sublimes, mais sans surprise.

Le corollaire est que les clientes ont vieilli avec la maison et que les nouvelles générations ne sont pas sensibles au style Lacroix, héritier du glamour clinquant des années 80. Elles lui préfèrent des nouveaux venus plus en phase avec leur époque tels que Alexander McQueen, Stella McCartney ou Nicolas Ghesquiere. 

 

Conclusion

 

La difficulté de la marque Christian Lacroix à s’étendre est malheureusement liée à un déficit d’image et de notoriété. Il est à espérer que le talentueux couturier sera sauvé par un investisseur éclairé qui aura à cœur de l’aider à se redéfinir dans l’époque.


Par Yvon Le Gall - Publié dans : Companies
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