Good for them.
Published: Tuesday, November 27, 2007
By Miles Socha
PARIS ? Capitalizing on a string of hit collections by its
designer, Alber Elbaz, Lanvin is embarking on its next growth phase,
headlined by a retail rollout and product expansion.
"The indicators are good and the untapped potential is still huge,"
said Lanvin president Paul Deneve, projecting sales growth in the range
of 40 percent for 2008.
Partnering with local retailers, Lanvin plans to open about a dozen
boutiques during the next year in the Middle East, Europe and India, he
said, mentioning such cities as Istanbul, Dubai, Moscow, Athens and
Delhi. Deneve is also scouting for company-owned locations in New York,
Los Angeles, London and Milan, aiming to open three to four key
locations over the next two years.
"That's a real jump forward in terms of distribution," he said during
an exclusive interview. Also coming later this month is an
800-square-foot in-store shop at Bergdorf Goodman in New York. Until
now, Barneys New York, one of Lanvin's key American retail partners,
has had a lock on the brand in Manhattan.
At present, Lanvin operates 10 company-owned freestanding stores and an
another 22 with retail partners, but roughly 70 percent of its business
remains wholesale.
Part and parcel of the retail rollout is a new design concept. In
September, Lanvin unveiled its first new-look unit at its Paris
flagship: raw concrete floors, gleaming lacquer panels,
industrial-steel fixtures and vintage Art Deco furnishings.
Deneve said a number of existing stores would be renovated with the
design, including its Monaco location and the Paris men's flagship.
The executive declined to give revenue figures for the company, which
is owned by Taiwanese publishing magnate Shaw-Lan Wang. But Deneve was
unequivocal that Lanvin, fuelled by rapid sales in every product
category, is entering a new profitable growth phase, entering the black
in 2007 for the first time in years.
But the growth has been controlled. As Elbaz told WWD The Magazine last
month, he dislikes the word "momentum" applied to Lanvin. "I'm not sure
fashion is just about the here and now," he said. "For me, it's about
design and about desire and dreams. Fashion is about creating a need;
it's not about momentum. I hate that word. It's the most scary thing."
While Elbaz's feminine and influential designs have turned Lanvin into
one of the hottest designer brands on the market, the brand's recent
success can also be attributed to key structural and organizational
changes.
The company's supply chain has been overhauled, shaving more than six
weeks off delivery times. Deneve has also beefed up management. In the
last six months, he has named executives to head four key business
groups: accessories, men's wear, retail and the U.S. region.
Accessories currently account for about a third of Lanvin's sales, and
Deneve asserted the brand has "tremendous" room to expand its business
in handbags, footwear and costume jewelry.
"The approach is not to find a hit bag or an 'It' bag. The plan is to create a range," Deneve noted.
For next spring, Lanvin is emphasizing three key handbag styles: the Pop clutch and the Partage and Padova bags.
Men's wear has also been explosive, thanks largely to a new fashion
line introduced two years ago, overseen by Elbaz and designed by Dior
Homme alum Lucas Ossendrijver. Best-selling items include dressy
sneakers, glossy loafers, tuxedos and bib-front shirts.
Deneve said spring 2008 men's orders jumped 80 percent as the brand
reentered such fashion and luxury-conscious markets as the U.S. and
Italy. Deneve noted its classic men's line, now labeled Lanvin 15
Faubourg, has also been updated and is gaining traction.
When Elbaz arrived at Lanvin five years ago, women's wear accounted for
only about 10 percent of revenues, Deneve said. Today, that number has
rocketed to 65 percent.
Still, Deneve asserted Lanvin had plenty of room to grow in women's
ready-to-wear, noting the brand was still not widely distributed in
Asia and citing recent expansion into bridalwear and more casual,
item-driven styles under the 22 Faubourg label.
At present, 38 percent of Lanvin's revenues derive from Europe, 29
percent from the U.S., 21 percent from the Middle East and Russia, and
12 percent from Asia.
Lanvin already has licenses for eyewear and men's furnishings, but
Deneve said no additional categories were pending. "It's about
developing the categories we have."
Last August, Lanvin sold its fragrance and cosmetics business to Inter
Parfums SA for 22 million euros, or about $30 million, to insure it had
the funds necessary to develop the rtw and accessories businesses. It
was a move that raised eyebrows in the industry and, according to
sources, sent divisive shock waves through the uppermost echelons of
the fashion house.Elbaz and Deneve have declined all comment on that
transaction. Waving off the question anew, Deneve shifted the
discussion to how Lanvin could capitalize on the brand's momentum and
invest in expansion.
He stressed, however, that growth would be controlled to preserve the
house's "human scale" and family atmosphere, which Elbaz encourages
with extensive personal contact among Lanvin's employees, retail
partners, consumers and editors.
"He really gives this positive drive to everyone," Deneve said. "It's
an intangible, but you can feel the difference in the end."
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