Year of the designer handbag
By Raphael Minder
Hong Kong is bracing itself this week for a French battle of the handbags, as Louis Vuitton and Chanel vie for the limelight with grand openings that underline Asia's growing importance to the fashion industry.
Tomorrow Karl Lagerfeld, Chanel's pony-tailed designer, will attend the official launch of a moveable museum before it heads off on a world tour of fashion capitals. Housed in a 700 sq m structure designed by architect Zaha Hadid, the Mobile Art Museum - which looks more like a spaceship than a fashion gallery - brings together 20 leading artists and their interpretation of the classic Chanel handbag.
Across the Hong Kong harbour on Canton road, Louis Vuitton is re-opening a store that it has overhauled and expanded. The outlet will be its second-largest worldwide, after its flagship Champs Elysées store in Paris. Louis Vuitton's event will close on Friday night with a party for 2,500 guests held in a golden tent and hosted by Bernard Arnault, chairman of parent company LVMH, or Moët Hennessy Louis Vuitton.
Beyond this week's extravaganza, almost every leading fashion house has earmarked 2008 as the year of expansion in Asia, much of it focused on China. Louis Vuitton is turning its attention to second-tier Chinese cities, which will boost its mainland presence from 19 stores to 25 by year-end. "Today we see demand in every provincial city in mainland China," says Yves Carcelle, chief executive of Louis Vuitton.
The switch to second-tier cities is a telling sign of China's emergence as a key fashion market. Thibault Villet, a former L'Oréal executive who is now Greater China president of Coach, the US maker of handbags and other accessories, says: "When I worked in cosmetics in Asia, the development of second and third-tier cities happened five to seven years ago, but it's only just now happening for fashion. That shows that it's really the right time and a market that is reaching a new dimension."
The company will soon inaugurate a Hong Kong store with the biggest Coach façade worldwide and a lavish interior adorned with white Italian marble floors. Meanwhile Salvatore Ferragamo, the luxury goods group, plans to celebrate its 80th anniversary with a fashion show in Shanghai later this month.
The Asian growth story goes well beyond China, argue executives. Louis Vuitton's revenues rose "more than 300 per cent" last year in Vietnam, according to Mr Carcelle, who describes the Communist country as "a new dragon".
Alain Li, regional chief executive for Richemont, the Swiss-based luxury goods group, says: "China is of course a significant part of the story but we're really seeing the whole region as having very strong momentum and that hopefully will continue."
The thrust into Asia is not just about business. Nathan Jenden, a leading figure among the new generation of British designers, says: "The energy I get from Asia is something that I can't find anywhere else in the world. I think that New York is definitely not as exciting as Shanghai right now . . . Chinese ladies are in some cases much more elegant than some of the people back home . . . The local designers there are also incredibly avant-garde."
The scale and number of fashion events scheduled this year also underline another leitmotiv among fashion executives - the "new sophistication" of their Asian clientele. Louis Vuitton's Canton road store, for example, will feature a bookstore and will be the first to host an art exhibition area.
"I think the fashion world is beginning to realise that Asian customers are getting more sophisticated by the day," says Mr Jenden. "Yes, there are cultural differences. Europeans don't pick their teeth. But it's very important not to be jaded or patronising when in Asia."
Brenda Wang, founder of Brandxcel, a Hong Kong-based consultancy firm that advises luxury and fashion brands planning to enter the Asian market, also warns against a blanket approach to Asia. "If you try to hit three or four countries at the same time, there is a tendency to spread yourself too thin . . . People tend to view Asia as one country, but this is a place with different buying patterns and distribution landscapes across the key markets."
As an example, Mr Villet from Coach points to the importance of footwear in China, as well as the male focus on accessories. "Luxury in China started with men and historically-speaking they have a tradition of purchasing leather-wear accessories for themselves as well as for gifts," he notes. "Chinese men represent a very different market that you have to study and understand."
As to how immersed they should become in Asian culture, fashion executives point to a difficult balancing act between nurturing their brand and embracing the local culture. Coach, for example, will be relying on Asian celebrities to help promote its launches but is counting on a Hollywood actress, Kate Bosworth, to lead its media advertising campaign.
"We are clearly a New York brand and so we need to communicate an image in accordance with our DNA,'' says Mr Villet. "But the right way for us to go local is when we do events, where we certainly want to be working with the local celebrities."
Similarly, fashion brands are seeing opportunities in contributing to the development of the local fashion scene. Next month Yohji Yamamoto will fly into Beijing an entire cast of models for Y's fashion show, which will be held in a World Heritage site. But the event is also being combined with the launch of a foundation that will sponsor new Chinese designers and offer them education opportunities outside China.
Growth in some Asian markets, notably India, is constrained by a lack of property in the right locations or disproportionately expensive sites. On the other hand, store leases tend to be shorter while furniture and shop-fitting costs are much cheaper. "If a location is not working as well as expected, it is financially easier to get out of," says John Durnin, Asia chief executive for Alfred Dunhill.
Another challenge for Asia's fashion development is one shared across many other industries - a shortage of skills. Ms Wang, the consultant, says: "Finding a prime location is certainly difficult, but you may end up with the right location and inexperienced sales staff and as such, maximising sales or increasing repeat business will be limited."
Will image-conscious fashion houses join the outsourcing bandwagon by shifting production to Asia? Most insist that production there will concern specific products and remain on a small scale.
Last year Louis Vuitton made its first manufacturing foray outside of Europe by establishing a shoe production venture in Pondicherry, India. About 100 people are employed in its workshop there, which is "very limited," Mr Carcelle stresses. "We have no intention to go further."
India's couture honey-pot that may take time to sweeten
India's increasingly affluent society could turn into another honey-pot for the fashion industry - but patience may be required. Executives warn that India's traditional tastes in clothing and its poor infrastructure mean China is likely to continue to outpace it as a profitable fashion market for the foreseeable future.
The differences are also stark when it comes to women's wear. Sir Lindsay Owen-Jones, chairman of L'Oréal, recently described witnessing China's transition in just a few years from "the Mao uniform to miniskirts" as one of the most "magical" experiences of his career.
In contrast, the sari remains de rigueur in India for women looking to impress. Vijay Murjani, managing director of Murjani Group, which distributes brands such as Gucci and Jimmy Choo in India, says: "The market is ready for accessories but it's definitely looking much tougher for ready-to-wear. The high-end couture market is going to remain very limited because when women here get dressed for a big evening out, they still wear Indian."
However, more property is now coming on to the market and Louis Vuitton is scheduled to open stores this year in two malls, in New Delhi and Bangalore.
Yves Carcelle, Louis Vuitton's chief executive, recognises that India's fashion development will be "slower than China". But he sees a silver lining to this time gap: "We don't need all the markets to explode at the same time."
Hong Kong is bracing itself this week for a French battle of the handbags, as Louis Vuitton and Chanel vie for the limelight with grand openings that underline Asia's growing importance to the fashion industry.
Tomorrow Karl Lagerfeld, Chanel's pony-tailed designer, will attend the official launch of a moveable museum before it heads off on a world tour of fashion capitals. Housed in a 700 sq m structure designed by architect Zaha Hadid, the Mobile Art Museum - which looks more like a spaceship than a fashion gallery - brings together 20 leading artists and their interpretation of the classic Chanel handbag.
Across the Hong Kong harbour on Canton road, Louis Vuitton is re-opening a store that it has overhauled and expanded. The outlet will be its second-largest worldwide, after its flagship Champs Elysées store in Paris. Louis Vuitton's event will close on Friday night with a party for 2,500 guests held in a golden tent and hosted by Bernard Arnault, chairman of parent company LVMH, or Moët Hennessy Louis Vuitton.
Beyond this week's extravaganza, almost every leading fashion house has earmarked 2008 as the year of expansion in Asia, much of it focused on China. Louis Vuitton is turning its attention to second-tier Chinese cities, which will boost its mainland presence from 19 stores to 25 by year-end. "Today we see demand in every provincial city in mainland China," says Yves Carcelle, chief executive of Louis Vuitton.
The switch to second-tier cities is a telling sign of China's emergence as a key fashion market. Thibault Villet, a former L'Oréal executive who is now Greater China president of Coach, the US maker of handbags and other accessories, says: "When I worked in cosmetics in Asia, the development of second and third-tier cities happened five to seven years ago, but it's only just now happening for fashion. That shows that it's really the right time and a market that is reaching a new dimension."
The company will soon inaugurate a Hong Kong store with the biggest Coach façade worldwide and a lavish interior adorned with white Italian marble floors. Meanwhile Salvatore Ferragamo, the luxury goods group, plans to celebrate its 80th anniversary with a fashion show in Shanghai later this month.
The Asian growth story goes well beyond China, argue executives. Louis Vuitton's revenues rose "more than 300 per cent" last year in Vietnam, according to Mr Carcelle, who describes the Communist country as "a new dragon".
Alain Li, regional chief executive for Richemont, the Swiss-based luxury goods group, says: "China is of course a significant part of the story but we're really seeing the whole region as having very strong momentum and that hopefully will continue."
The thrust into Asia is not just about business. Nathan Jenden, a leading figure among the new generation of British designers, says: "The energy I get from Asia is something that I can't find anywhere else in the world. I think that New York is definitely not as exciting as Shanghai right now . . . Chinese ladies are in some cases much more elegant than some of the people back home . . . The local designers there are also incredibly avant-garde."
The scale and number of fashion events scheduled this year also underline another leitmotiv among fashion executives - the "new sophistication" of their Asian clientele. Louis Vuitton's Canton road store, for example, will feature a bookstore and will be the first to host an art exhibition area.
"I think the fashion world is beginning to realise that Asian customers are getting more sophisticated by the day," says Mr Jenden. "Yes, there are cultural differences. Europeans don't pick their teeth. But it's very important not to be jaded or patronising when in Asia."
Brenda Wang, founder of Brandxcel, a Hong Kong-based consultancy firm that advises luxury and fashion brands planning to enter the Asian market, also warns against a blanket approach to Asia. "If you try to hit three or four countries at the same time, there is a tendency to spread yourself too thin . . . People tend to view Asia as one country, but this is a place with different buying patterns and distribution landscapes across the key markets."
As an example, Mr Villet from Coach points to the importance of footwear in China, as well as the male focus on accessories. "Luxury in China started with men and historically-speaking they have a tradition of purchasing leather-wear accessories for themselves as well as for gifts," he notes. "Chinese men represent a very different market that you have to study and understand."
As to how immersed they should become in Asian culture, fashion executives point to a difficult balancing act between nurturing their brand and embracing the local culture. Coach, for example, will be relying on Asian celebrities to help promote its launches but is counting on a Hollywood actress, Kate Bosworth, to lead its media advertising campaign.
"We are clearly a New York brand and so we need to communicate an image in accordance with our DNA,'' says Mr Villet. "But the right way for us to go local is when we do events, where we certainly want to be working with the local celebrities."
Similarly, fashion brands are seeing opportunities in contributing to the development of the local fashion scene. Next month Yohji Yamamoto will fly into Beijing an entire cast of models for Y's fashion show, which will be held in a World Heritage site. But the event is also being combined with the launch of a foundation that will sponsor new Chinese designers and offer them education opportunities outside China.
Growth in some Asian markets, notably India, is constrained by a lack of property in the right locations or disproportionately expensive sites. On the other hand, store leases tend to be shorter while furniture and shop-fitting costs are much cheaper. "If a location is not working as well as expected, it is financially easier to get out of," says John Durnin, Asia chief executive for Alfred Dunhill.
Another challenge for Asia's fashion development is one shared across many other industries - a shortage of skills. Ms Wang, the consultant, says: "Finding a prime location is certainly difficult, but you may end up with the right location and inexperienced sales staff and as such, maximising sales or increasing repeat business will be limited."
Will image-conscious fashion houses join the outsourcing bandwagon by shifting production to Asia? Most insist that production there will concern specific products and remain on a small scale.
Last year Louis Vuitton made its first manufacturing foray outside of Europe by establishing a shoe production venture in Pondicherry, India. About 100 people are employed in its workshop there, which is "very limited," Mr Carcelle stresses. "We have no intention to go further."
India's couture honey-pot that may take time to sweeten
India's increasingly affluent society could turn into another honey-pot for the fashion industry - but patience may be required. Executives warn that India's traditional tastes in clothing and its poor infrastructure mean China is likely to continue to outpace it as a profitable fashion market for the foreseeable future.
The differences are also stark when it comes to women's wear. Sir Lindsay Owen-Jones, chairman of L'Oréal, recently described witnessing China's transition in just a few years from "the Mao uniform to miniskirts" as one of the most "magical" experiences of his career.
In contrast, the sari remains de rigueur in India for women looking to impress. Vijay Murjani, managing director of Murjani Group, which distributes brands such as Gucci and Jimmy Choo in India, says: "The market is ready for accessories but it's definitely looking much tougher for ready-to-wear. The high-end couture market is going to remain very limited because when women here get dressed for a big evening out, they still wear Indian."
However, more property is now coming on to the market and Louis Vuitton is scheduled to open stores this year in two malls, in New Delhi and Bangalore.
Yves Carcelle, Louis Vuitton's chief executive, recognises that India's fashion development will be "slower than China". But he sees a silver lining to this time gap: "We don't need all the markets to explode at the same time."
Labels: designer handbags, designers, melie bianco, melie bianco handbags, Melie Bianco Handbags Online
posted by Give Me Something to Blog About @ 8:44 PM
<< Home