Thursday 17 March 2011

Because everyone's focused on Japan and so do I!

It's Monday 14th March and Akihabara station is crowded while commun transports are still limited in capital,
Tokyo.
People waiting at the entrance of Akihabara,
an important tranfert station from the East of Tokyo
Source: flickr.com
At the time where a big bereavement is beginning, Japanese professionals discover little by little consequences of 11th march's earthquake.
And as foreign companies are sending their team back or are trying to contact them, time is for worry..

Between the expected earthquakes in Tokyo or the risk of a nuclear explosion in the North of the capital, several companies made associates return to their countries during last week end.
For instance, Comptoir des Cotonniers has immediately repatriate about fifteen of its headquarter employees which were in Japan.
[Because, this is at this kind of sad moment where you knows if the company you're working for, is a caring one or a selfish one!]

For its part, The Vantan Design Institute of Fashion/Beauty School of Tokyo seems to have been spared. Josiane Cristofoli who's in charge of the school's communication in France explain:"They didn't have any damages but they are quite worried in view of the nuclear problem".

The seism took place a few day before the launch of Japan Fashion Week in Tokyo which should have introduced more than 35 collections of autumn-winter 2011/2012 between next 21st and 25th March. However the event has indees been logically cancelled by the organisers.





Source: wallpaperszz.blogspot.com
The industry is weakened but rallied?
Following the importance of this drama, companies of the Country of the Rising Sun didn't forget to rally: the Clothing giant, Fast Retailing, owner of Uniqlo & Comptoir des Cotonniers, is going to give 1 billion of Yens to the Croix Rouge in order to support regions of North-East which are widely stricken.
The group also counts on sending 300 000 sweaters, coats and jeans to the victims who has been striped of their possessions by the tsunami.
What's more, cosmetic group Shiseido has annouced a donation of 100 million of Yens as well as 30 000 bottles of soap, shampoos and disinfectants.
Other groups follow this movements: Cosmetics groups Unicharme and Kaoh planed to furnish baby products for charities according to daily economic newspaper Nikkei.
Hopefully for Japanese people, there are still companies which make nobles gestures!

However rallied, industrials has also been hit.
Therefore, Shiseido had to stop one of its main production centre, heavily affected, annoucing severals stocks issues.
Two others plants should be closed in order to save energy, as well as a plant of Kaoh Group .

Some companies haven't yet react to these events. Shame on them? Maybe! iQuizas! Peut-être bien!
Textil company Renown Incorporated and Sanei International are both waiting for their superiors to get back to their office in order to start something.
Moreover, Clothing groups Onward Kashiyama and Sanyou Syoukai try, for their parts, to get in touch with their customers.

First economic effects?
After the human toll, will soon come the time of the tragedy's economic report.
The stock exchange has give a foretaste this week end! Notably in the luxury sector, Japan actually represents 11 to 15 % of 180 billion of Euro of the global sales of the sector.
In consequences, at the London Stock Exhange, the strongest fall is Burberry group 's one, which shares lost 5,4 % of its value. In Swiss, famous group Richemont falls of 1,73 %. And in Italy, Tod's has fallen of 0,66% yesterday. That's not an Earthquake anymore, that's a sharesquake now!

And with 15 to 17% of its acitivity realised in the Archipelago , French actors of luxury are in the front line.
With 9% of its turnover realised in Japan, LVMH has already seen its security falls of 3% in the hours following this drama with Japan which represents 20% of Louis Vuitton's activity.
Regarding other brands like Hermès, its part has fallen of 2.5% with 19% of its turnover realised in this little country.
And concerning PPR which realise 16% of its turnover in Japan, it has lost 1.43% of its value.

 
Here a little video from Youtube, just to be a bit weepy!

Source: FashionMag

Monday 14 March 2011

The Return of Mandela

Guess who just created his own brand?

South-African ex-president has accepted that «46664» his number of prisoner in Robben Island becomes a brand and appears on polo shirts or dresses!
Source: movingimages.wordpress.com

Foundation Nelson Mandela which surely don't act , without the approval of former South African president, will launch a line of clothes called «46664 Apparel Line» in August.
The name of that collection actually referred to the number of prisoner (466) of Nelson Mandela in 1964, as the hero of the fight against apartheid has passed 27 years in prison before becoming the first president in South Africa in 94, in Robben Island's prison which is located off Capetown, in South Africa

Therefore, «46664» will soon appears on a colourful range of mens and women's clothing but still quite comfortable that will be commercialised this summer in Mandela's native country before launching it in Great Britain and in the USA hopefully next year. 
In fact, the idea of using this symbol is not new. It has first been used in London on the occasion of a concert designed to raise money for the fight against Aids.

By using fashion, Nelson Mandela kills two birds with one stone: in one hand, he raise money for his charities and in the other hand, he brings his contribution to the economic revival of the South-African textile industry which is having hard times.
Source: visfinger.blogspot.com
Singer of «U2» ,Bono has already created a range called «Edun» which is also designed to give work to Africans workshops.
But compared to him, Mandela thought bigger as his agreement has been negotiated with the largest clothing and textile manufacturer Group Seardel, which stylists has drawn the first collections. However lots of South African won't be able to afford his clothes: around 26 dollars for a t-shirt and 86 dollars for a un polo. Guess they will have to work hard to get one of those...
What's more, agency Reuters (world's largest international multimedia news agency) said the minimum wage for a farm worker is less than 200 dollars and that one quarter of the working people don't have a job!
That's good news for Mandela!
Looks like someone forgot to do some market research?
Naomi Campbell promoting «46664»
Source: telegraph.co.uk




Furthermore, no portrait of Mandela will appears on the clothes.
His laywers are actually particularly vigilants on this point and threat to take people who would use this famous number «46664» without telling the foundation to court.

In addition to direct selling, the clothes will also be sell on Internet and the raising money will help to finance development projects in Ghana, Tanzania or Mozambique.
Thus, Foundation Nelson Mandela will touch its part that is between 7 and 9% of its turnover plus a bonus of 143.000 dollars.
That is what we called being generous! What about you? Are you generous?


Source: Le Figaro

Wednesday 9 March 2011

An Italian with a French? Yes!

Guess who's associated with who?
Here is the answer:

French LVMH (Louis Vuitton Moët Hennessy) Group ,which already owns 50 luxury brands in different industry that includes Louis Vuitton, Christian Dior, Fendi, Moët & Chandon (wines and spirits) and Tag Heuer (watchmaking), is going to take the great majority of Italian jeweller Bulgari's capital.
In fact, an agreement has been conclude during the week-end with Bulgari's family ,whose origin dates back to 1884, and has been approved by the board of directors of famous LVMH sunday night.


Source: unitedfashionstates.com
Why did Bulgari made this choice? 
Well, to simply reinforce the development in long term of Maison Bulgari in the respect of its heritage, values, "savoir-faire" and its identity.
The company's familiy actually estimate: "We find in Bernard Arnault (CEO of LVMH) and in the group he built, all the elements that we have been looking for in order to guarantee Bulgari's perenity: a capacity to receive and form an associtation within a powerful organization of brands which finds a way to grow and to fulfil their potential by preserving their indentity and orginality"
 In order to buy this controlling stake, LVMH will issue 16,5 million of shares to pay the 152,5 millions of shares brought by the family. This transaction actually develop this Bulgari's part of 51% to 1,84 billions €! Yes that's a lot!
Bernard Arnault, CEO of LVMH
Source: The Real Timer


And regarding shares hold by the minority of the Diamond company, the French group will make a public buying offer of 12,25€ per share which basically reprensents a maximum amount of 1,79 billions of €uros to pay out.
Therefore, with this friendly operation, The Italian will become the Second familial shareholder of LVMH and the board of directors will remain the same as it used to be for the jeweller. And in addition, Bulgari's family will get two positions at LVMH's board and Francesco Trapani will supervize the whole watchmaking-jewellery activities in the Second semester of this year.
A trader based in Paris said: "It's an expensive operation but with great quality!"

Francesco Trapani, CEO of Bulgari
Source: Boursier.com

What's more according to financial analysist, this will allows the luxury group to increase its exposition in the watchmaking-jewellery of 70%, which turnover could reach 1,8 billions € that is 8,5% of the group total activites against only 5% now.
Then a source close of this affair said: "With Bulgari, we will be able to become the real competitor of Cartier "which belongs to another famous group Richemont.
Of course, the group is going to become a big challenger for that brand! 

So Cartier, be aware!
LVMH wasn't the only one interested in Bulgari! According to several sources, rival bidders for this Italian brand, included Richemont ,which besides must be livid with rage, and another French group PPR, Pinault-Printemps-Redoute, (Boucheron, Gucci, etc.).
 And here is a little view of the"new union" so far:
Source: Capital

Well, we can say that it is doing well, isn't it?
Both are in growth and keep increasing!
Can't wait to see the 2012 results!!

Seems like Bernard Arnault has shown he can get along with a family even after Hermès issue!



Source: LVMH

Tuesday 1 March 2011

The Power of the crisis or Primark's problem

With the economic crisis, inflation and all that follows, consumers try to save money and are spending with caution regarding several things in our daily lives especially for clothes.
Even when it comes to brands which already offer their product at a lower price like the giant Primark, the meeting place for every person who wants to buy some clothes at a small price!

Yes, their sales are still growing at 3% but that's quite a tiny percent compared to what it used to be.
Also, noted that consumer demand in the UK is slowing down which is baad news for retailers!
What's more the cost of cotton is increasing which means most clothes will be dearer!!



What if British shoppers can't even afford a pair of shoes at 3£?
Would it mean that Top Shop, Next or Mark&Spencers are struggling to survive in the market?


Source: London Evening Standard