1.) Perfume.com Loses That Sweet Smell of Success:
"Sales declined 5.5% at Perfume.com in the first quarter and its parent company, Live Current Media Inc., says its ability to stay in business is in doubt . . . 'Revenue growth was challenged as a result of continued softening of consumer discretionary spending in the U.S. market,' the company says in a quarterly filing with the U.S. Securities and Exchange Commission."
I know we're hearing lots of speculation about how consumers are trading down on their luxury purchases, going for designer cosmetics and fragrances rather than handbags and shoes (the lipstick theory), but maybe it's time to face the idea that sales across the entire retail sector are diminishing in response to a global economy that continues to shed jobs and make consumers nervous.
But on a more positive note, Chanel has announced that it will soon make its entire Les Exclusifs series available online, a much welcome blow to the outdated idea of manufactured exclusivity. Note to designers: if your product is available in chain department stores but not online, you're just foolish, not exclusive.
In sort of related news, Chandler Burr, scent critic for the New York Times, showed up at a May, 2009 Thinking Digital conference in the U.K. where he let slip "that the New York Times is 4-8 weeks from closing its doors and going out of business" . . . does this mean that our favorite perfume snob will soon be booted from his paying columnist gig? Stay tuned.
Video clip below of Chandler talking about how his book "The Emperor of Scent" came to be:
2.) Retailers Unite for Stiletto Stimulus Plan:
"September 10, right as New York Fashion Week will be getting underway, retailers in major cities worldwide will join forces for 'Fashion's Night Out' . . . Around 100 retailers in the United States have already signed on with the intent to put the fun back in shopping, boost sales and make stores more than just a place to buy new things -- instead, they'll become 'more entertaining theaters of commerce.'"
I just received an email from a friend of mine in Seattle who said that the new Neiman Marcus in Bellevue will be having a huge grand opening party on September 10th, so it looks like chain retailers are already putting plans into motion.
Tom Peters, management guru, marketing consultant and author of 'Re-imagine! Business Excellence in a Disruptive Age' has been hammering the "It's the Lifestyle, Stupid!" point home for the past six years. If businesses want to stay viable in the future economy, they need to provide more than mere cash registers, sales assistants and peppy pop tunes playing in the background. Think Apple vs. Microsoft -- do you just want software, or do you want an aesthetic? This is how boutique clothiers and/or perfumeries can wrestle back the market from their larger but more stuffy/corporate rivals.
A video clip parody below of how Microsoft would package the iPod. This has correlations with mainstream luxury houses, mainstream perfume brands and chain stores vs. independent houses, boutiques and brands -- consumers want to buy an experience along with the product (of course, this is why Karl Lagerfeld is so adamantly against internet shopping when it comes to Chanel, but there exists a happy median . . . somewhere!):
In not so stimulated news, S&K Menswear to close all stores: "S&K Menswear announced Thursday it will close its remaining 105 stores in 26 states . . . Jonathan Tibus, chief restructuring officer at S&K Menswear, said Thursday that the company would not emerge from bankruptcy protection. 'In spite of our best efforts, the current economic climate left us with no choice but to close down the business,' Tibus said."
And after announcing disastrous first quarter results, Abercrombie & Fitch is caving to pressure and cutting prices: "Abercrombie & Fitch Co. (ANF) appears to have relaxed its fierce stance against discounting, but the move hardly made up for a self-described fashion "miss" that contributed to the apparel retailer swinging to a loss in the first quarter . . . The retailer had been staunchly defending a largely non-promotional approach, but the ongoing recession appears to be prompting some reconsideration."
Gee, you think?
Gap also announces a drop in profit: "Gap Inc., the largest U.S. clothing retailer, said first-quarter profit dropped 14% as consumers trimmed clothing purchases."
Sales at Old Navy fell by 3%, while Banana Republic posted a 13% drop in sales. Hot Topic gives a gloomy 2nd Quarter profit forecast (where are the sparkly vampires when you really need them?), and Limited Brands (which owns Victoria's Secret and Bath & Body Works) reported a 97% drop in profit from a year ago.
Meanwhile, discount chain Ross Stores announced a 15% first quarter profit increase; Sears posted an unexpected profit jump as its KMart stores saw an uptick in recent consumer traffic; and last but not least, pricey, high-fashion label Lanvin is doing a bang-up business: "Lanvin, fueled by the creativity of Alber Elbaz, can face the economic crisis "in a healthy way," said executive vice president Thierry Andretta . . . Sales advanced 29 percent ... the gains reflect a retooling of the supply chain, strides in leather goods and a rejuvenated men's wear business."
Video clip below for Lavin's Fall/Winter 2009/2010 runway show:
3.) Giorgio Armani Recovering After Bout with Hepatitis:
"The 74-year-old said in a statement he had decided to 'calm worries' after a high level of interest concerning his personal well-being in the last few days . . . 'I have in fact suffered from hepatitis by poisoning, which, certainly is not a rare illness. Nevertheless it is one which requires some time for a complete recovery,' Armani said."
4.) U2's Bono Sells Anti-Corporate Clothing Line to Corporate Behemoth LVMH:
"In 2005, Bono and his wife Ali Hewson set up Edun, a clothing range that was going to prove there is a different way to end poverty. It was going to be non-corporate and of course "sustainable". At the time MSNBC said it would be 'clothing with a conscience'. Vogue magazine said Edun was going to 'flip capitalism on its head' . . . Last week the rock star announced he has sold out to LVMH, the worlds largest luxury goods company."
Selling a 50% stake in your anti-corporate, anti-capitalist, sustainable and organic clothing company to the largest, most aggressively capitalist luxury and fashion corporation in the world is just about the most . . . uh . . . "creative" way to flip capitalism on its head that I've ever heard of. There is no mention in any press accounts as to how much money Mr. Bono accepted for selling out his organic, sustainable ideals. Thirty pieces of silver, perhaps?
5.) Chanel May Have Audrey Tautou, But Dior Has Marion Cotillard:
"The film, made by La Vie en Rose director Oliver Dahan, sees Cotillard attempting to free a man, 'James', from a room where he is tied up. Cotillard runs across Paris in six-inch Dior platforms to get to him, stopping off to hang precariously from the Eiffel tower clutching a Dior bag and finally bursts into the room in an evening dress, her brown hair dyed blonde."
Mon dieu! I would hope that someone rushing to save me might not worry so much about stopping for the perfect glamor shot . . .
I'm liking these viral videos that large luxury houses are producing. In the era of YouTube, FaceBook, Twitter, etc., it's fantastic exposure for a brand as these mini-promo movies get linked, emailed, blog-posted and otherwise passed on (and on). The super saturated glamor of the cinematography and locales is also a smart way to hit the reset button on consumer perception of the brands after last year's spate of 60%-70% off sales seriously undermined their "We're Very Very Very Desirable!" image.
6.) Say It Isn't So! Ex-Assistant Calls Lagerfeld a Narcissist:
"Titled Merci Karl!, the book, as (Arnaud) Maillard puts it, intends to reveal 'a different side' of Lagerfeld. Specifically, the side that 'needs an eternity to get ready in the morning' . . . Of Lagerfeld's collaboration with H&M, which Maillard says his assistants worked on non-stop for three months, the Kaiser spent 'two half-days ... on the drafts. Then he got millions from the Swedes.' As for his assistants: nada."
I'm shocked -- SHOCKED, I tell you! As for H&M, they got what they wanted from Lagerfeld, whether his assistants designed the collection or not. I mean, isn't that what assistants are for? My imaginary assistant (Kiki) does simply *everything* for me. I couldn't breathe without her . . . "Kiki! My martini glass is nearly empty!"
Below is the brilliant ad campaign for H&M's Lagerfeld collection:
"Karl, is it true?!!"
7.) And You Thought Fashion Trends were Fast:
"With the economy ailing, consumers cutting spending, retailers opening fewer stores and vacant space staying empty longer, temporary stores are taking on a new luster . . . A popular use of temporary retail space is the pop-up shop, which allows a brand to make a quick splash in a market. While the life of a pop-up shop may be brief, its impact on consumers can be lasting. Pop-up shops often materialize in unexpected locations, such as Yves Saint Laurent's shop for Stefano Pilati's Edition collection, which opened in February on Manhattan's scruffy Great Jones Street."
Pop-Up Shops have become a way for brands to test markets, shed excess inventory or introduce new looks and new products without overstaying their welcome. Comme des Garcons has its own version of the pop-up store, called the Guerrilla. A little less temporary, but still on the move.
Update: to illustrate this very point, Hermes just announced that it will open a temporary "pop-up" store in East Hampton: "'We have 22 of our own boutiques in the U.S. - East Hampton will be 22 and a half,' Hermès President and CEO Robert Chavez tells the East Hampton Star. He said the company had been eyeing a Hamptons location for a while but that a permanent location just doesn't make sense these days."
8.) And the week wouldn't be complete without a Tweet from our favorite fashion narcissist, (Kaiser) Karl Lagerfeld:
Amen to that.
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