Fashion Business

[Faust]

Shucks gave me a good idea, that we should have a thread where we can share and discuss fashion business, such as financial figures, business decisions, business models, and so on.

Since I, and probably quite a few others here, read WWD, Business of Fashion and other news and often come across earnings figures and other tidbits, it'd be good to store them here.

And we can always speculate - the fun part - as to why some succeed and other don't.

[Faust]

In 2013 Kering (formerly PPR) revenue was flat. Saint-Laurent revenue jumped almost 18% in 2013.

Kering owns the following brands, among others:

Gucci
Bottega Veneta
Saint Laurent
Alexander McQueen
Balenciaga
Brioni
Christopher Kane
McQ
Stella McCartney
Sergio Rossi

[Faust]

Chinese shoppers accounted for about 61 billion euros ($84 billion), or 28 percent, of 2013 global luxury sales, consulting firm Bain & Co. estimated in a January report.

[returningson]

In 2013 Kering (formerly PPR) revenue was flat. Saint-Laurent revenue jumped almost 18% in 2013.

Kering owns the following brands, among others:

Gucci
Bottega Veneta
Saint Laurent
Alexander McQueen
Balenciaga
Brioni
Christopher Kane
McQ
Stella McCartney
Sergio Rossi

Wow, I had no idea that so many powerhouse brands were owned by one company. Interesting collection of companies as they seem to heavily compete with each other within the same corner of luxury fashion.

[gawkrodger]

wait until you see who owns watch companies

[SuE]

and who owns the glasses companies

[Dreavan]

I was discussing some fashion business issues with a partner last time and we ended up talking about the tons of licenses companies were selling back to the 80's/90's.

How crazy it was right? I've seen many Pierre Cardin socks when I was a kid on markets and always thought they were fake or whatever. In fact they're real like you and I ^^

It tended to be a real financial and branding problem for some companies which started to buy them back.
China keeps using them according to some people who often travel there.

[zamb]

Wow, I had no idea that so many powerhouse brands were owned by one company. Interesting collection of companies as they seem to heavily compete with each other within the same corner of luxury fashion.

you might need Mental Therapy if you see what LVMH owns.........

[BrokenBoards]

The term "owns" doesn't always describe the relationship a lot of brands have with their parent companies like Kering, Staff International, LVMH, etc. I like to think of it as being similar to when a company goes public on the NYSE. The majority shareholder can either be the parent company or the brand itself, but at the end of the day the parent company still has enough of a stake to want to funnel money into a brand to support its growth.

I remember reading an article about one of the labels frequently lauded on the forum (maybe Damir? hopefully someone here knows what I'm talking about) that talked about how a lot of the label's current success is due to nothing more than a chance encounter between the designer and someone wanting to invest in an emerging designer.

[malevich]

Wow, I had no idea that so many powerhouse brands were owned by one company. Interesting collection of companies as they seem to heavily compete with each other within the same corner of luxury fashion.

Yes this business is a huge monopoly, 3-5 companies own 90% of all we know about fashion. The question is how to fight it or is it worth fighting, or will it ever collapse? From the business point of view there is no competition, from the customer point of view there is no much choice either.

[Faust]

The term "owns" doesn't always describe the relationship a lot of brands have with their parent companies like Kering, Staff International, LVMH, etc. I like to think of it as being similar to when a company goes public on the NYSE. The majority shareholder can either be the parent company or the brand itself, but at the end of the day the parent company still has enough of a stake to want to funnel money into a brand to support its growth.

I remember reading an article about one of the labels frequently lauded on the forum (maybe Damir? hopefully someone here knows what I'm talking about) that talked about how a lot of the label's current success is due to nothing more than a chance encounter between the designer and someone wanting to invest in an emerging designer.

That would be Damir, indeed.

[Faust]

Yes this business is a huge monopoly, 3-5 companies own 90% of all we know about fashion. The question is how to fight it or is it worth fighting, or will it ever collapse? From the business point of view there is no competition, from the customer point of view there is no much choice either.

I am not sure fighting is the appropriate term here. You can simply choose to opt out. Which is of course difficult for an average consumer, because first you have to care enough to be dissatisfied with what the conglomerates offer. There is no shortage of alternatives, especially today when fashion has become cooler than music, cooler than art, cooler than anything.

[returningson]

Yes this business is a huge monopoly, 3-5 companies own 90% of all we know about fashion. The question is how to fight it or is it worth fighting, or will it ever collapse? From the business point of view there is no competition, from the customer point of view there is no much choice either.

this isn't surprising to me and im fully aware of the one or two umbrella corps that own virtually every watch brand. Going back to the original post I just found it surprising the collection of companies that Kering owns and how well they hide it. Its funny because at my local plaza, the Gucci store is right next door the Bottega store which is right next door to the Brioni store.

[Shucks]

this isn't surprising to me and im fully aware of the one or two umbrella corps that own virtually every watch brand. Going back to the original post I just found it surprising the collection of companies that Kering owns and how well they hide it. Its funny because at my local plaza, the Gucci store is right next door the Bottega store which is right next door to the Brioni store.

they're not hiding anything. it's perfectly common knowledge to anyone with a modicum of interest in fashion / fashion business.

as for watches, it's interesting that swatch group has now been granted permission to NOT supply swiss watch industry rivals with ETA movements. it should have some dramatic effects on both competition and innovation in a pretty staid industry.

[returningson]

they're not hiding anything. it's perfectly common knowledge to anyone with a modicum of interest in fashion / fashion business.

as for watches, it's interesting that swatch group has now been granted permission to NOT supply swiss watch industry rivals with ETA movements. it should have some dramatic effects on both competition and innovation in a pretty staid industry.

I guess you are right. I certainly didn't know but I guess what I was getting at was that I wouldn't even have assumed that those businesses would be owned by one entity even though they are so closely related.