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Hermès stocks on rollercoaster ride

Gen. Luxury

herm05081.jpgOver the last two years, Hermès has risen from discretion to become a much more visible brand in the marketplace. Signs emerged that the brand no longer stood in splendid isolation to the rest of the luxury competitive set, but that it was repositioning itself. Initiatives included as a much bigger media spend, a boldly revamped website, and press-friendly collaborations with other brands.

Its stronger presence in the marketplace increased speculation that the brand was grooming itself for sale, potentially to LVMH, or to Belgian investor, Albert Frëre.

Yesterday, that speculation hit fever pitch.

The current owners deny the rumors.

But the financial story, according to Bloomberg, suggests that investors are watching the stock closely, as a guide to the entire luxury industry.

Hermes International rose to a 12-month high in Paris trading on speculation that investors who sold borrowed stock with the aim of profiting from a luxury downturn may be buying it back.

About 35 percent of Hermes’s freely-traded stock has been borrowed, most likely by short-sellers, according to Data Explorers, a research firm in London. So-called short sellers profit when they borrow shares, sell them and then buy them back later for less. — (Via Bloomberg)

Yesterday was a partial holiday in France, and even though the stock price shot up 6% yesterday, today, the stock seems to be more volatile… falling sharply…

Track real-time Hermès stock price

The Fendi chainsaw

Gen. Luxury

fend0508.jpgThe relationship between luxury brands and pop culture is becoming increasingly powerful. Part of this growing revolution is an artistic movement that commodified the logos of luxury brands to make provocative statements.

First there was Tom Sach’s Chanel Guillotine — (Via TomSachs.org)

Then the Gucci gas masks offering “high fashion protection” — (Via Designergasmasks.com)

And now at the 1998 gallery in Los Angeles a new exhibition called The Revolution will be Fabulous, a “weapons of mass designer show”.

Click to view more artwork

Other items include a Louis Vuitton rifle, Paul Smith artillery and a Chanel rocket launcher. Prices start at $500… Find out more by emailing the gallery directly

Karl and the Time 100 most influential

Gen. Luxury

karl0508.jpgTime magazine has just published its list of the 100 most influential people in the world. There are three luxury-related players this year; Karl Lagerfeld, Takashi Murakami and Carine Roitfeld of French Vogue.

The profile of Lagerfeld is written by architect, Zaha Hadid, designer of the Chanel Mobile Pavilion. Hadid rather deftly describes his importance…

The initial context of his work demanded a kind of radicalism. Before Karl, we all looked to couture for inspiration and direction. Now, through his work, fashion originates from the street, the media—anywhere. — (Via Time)

Takashi Murakami is profiled by Marc Jacobs as the man that made it possible for the LV logo to sprout hands…

I thought, I would love it if the mind that imagined this dizzying world of jellyfish eyes, singing moss, magic mushrooms and morphing creatures would be willing to have a go at the iconic Louis Vuitton monogram. — (Via Time)

And Carine Roitfeld (editor-in-chief, French Vogue) profiled by Hedi Slimane…

Her definition of fashion is clearly hedonistic, embracing fashion’s immediacy but with a broad cultural vision that puts everything in perspective.” — (Via Time)

Secret sauciness: McDonald’s as luxury brand

Gen. Luxury

mcdo0408.jpgMcDonalds continues to surprise - and impress - us with its shameless and opportunistic ideas above its station…

Traditional luxury brand strategy depends on brands knowing their place, but increasingly the grammar of luxury brands is being used by brands far outside the luxury universe.

Nobody is working harder than McDonalds to investigate opportunities here…

Last year, they began a $1B to update the look of restaurants in Europe — (Via New York Times)

They recently took on a price war with Starbucks, whose hasty reaction with heavy discounting suggested that they had suffered a direct hit. Smelling blood, last week McDonalds launched their Unsnobby Coffee Intervention.

And now McDonalds appears to have upped the ante once again… British fashion designer, Bruce Oldfield, has just revamped the McDonalds uniforms, complete with Louis Vuitton-esque palate, and and an LV-ish logo…

It’s a particularly interesting ‘tribute’, since last year Dana Thomas described Louis Vuitton as the “McDonald’s of the luxury industry” in her book Deluxe.

Interestingly, at a time when logos are more visible than ever at Louis Vuitton, the designer for McDonald’s was asked not to use the iconic ‘golden arches’ for the new uniforms…

The pattern bears more than a passing resemblance to the Louis Vuitton logo, but Mr Oldfield insisted it was not deliberate. “I wanted to use the golden arches but I was told I couldn’t because of company policy, so I had to have a re-think. I think it looks chic and modern, and the girls look really good. — (Via The Telegraph, UK)

What’s next for McDonald’s? The Swarovski-inspired straw? The Goyard-esque burger box?

Perhaps the design collective JustAnotherRichKid were being prescient rather than ironic in 2005 with their golden McDonalds spoon

Opus Windfall… ‘Superbooks’ pass $2,000

Gen. Luxury

opus0408.jpgQuestion: What do Vivienne Westwood, Muhammad Ali and molecular gastronomist Heston Blumenthal have in common? Answer: Superbooks!

Despite the credit crunch, an entire industry has sprung up to cater to an increasing number of customers willing to spend thousands of pounds on luxury books from the shelves of the world’s most exclusive shops. — (Via The Independent)

At the heart of this trend are two key publishers, Taschen, and Kraken Opus

While Taschen has been well-known in this space for some time, Kraken Opus is an interesting new contender, moving from a specialty in super-luxury sports publications, to a much broader remit.

LVMH to buy Bulgari?

Gen. Luxury

bulg0408.jpgAfter the news of the leap in profits for LVMH Louis Vuitton Moet Hennessy, the luxury conglomerate appears to be ready to open its wallet. Most likely bets are that it will buy a tequila or whisky brand for Moet Hennessy, or a new acquisition for the LV side of the corporation.

In particular, Bulgari - whose sales have fallen dramatically - seems to be a potential target, though Bulgari remains indignant at the prospect…

The Rome-based jeweler isn’t for sale, Bulgari Chief Executive Officer Francesco Trapani said in a subsequent e-mail today. — (Via Bloomberg)

Does luxury still live in New York?

Gen. Luxury

luxe0408.jpgReal luxury is alive and well, but not living where it used to, says a spirited piece in the NY Daily News…

While luxury is a million different things to a million different people, for the past 25 years, brand marketers have pummeled the word into a sad state where its meaning is as confusing to consumers as quantum physics… The concept of luxury has become confusing, but it’s far from dead. — (NY Daily News)

‘The Gucci years are over’; luxury’s growing conscience

Gen. Luxury

tomf03081.jpgLuxury products are - by definition - not necessary. They begin where necessity ends. And many luxury brands have increasingly struggled to justify their more conspicuous excesses to a more challenging consumer marketplace of opinion.

However, something very interesting - and vital to the future of luxury - is beginning to emerge. Luxury brands are beginning to realize that there is a way to turn responsibility into a key part of luxury brand DNA.

After all, luxury is about turning the rare into the aspirational. In a culture where responsibility remains rare, luxury brands can play a key role in defining their positioning in a more responsible way

The ever-quotable Tom Ford has often been a surprisingly good futurist of the luxury industry, and his latest interview on the subject is no exception;

“Consumers, at least in the West, are now demanding ethical luxury. People want to demonstrate their environmental or social consciences – they are no longer fashion victims who covet items because they see a celebrity owning them. They still want and desire fine things. Luxury is not going out of style; it needs to change its style. The industry can no longer be propelled purely by logo-driven marketing. Luxury used to mean hard-to-find. Then it became hard-to-miss. We need to replace hollow with deep.” — (Via CNBC)

Bespoke rising

Gen. Luxury

besp0308.jpgThe growing enthusiasm for bespoke products is part of a wider commitment to quality in the luxury industry.

American tailors - notably Thom Browne, and Tom Ford - have built powerful new brands on the power of bespoke. And now other categories are getting in on the action…

Bespoke perfumes have been on the rise for several years, and continue to grow in strength

Bespoke perfume (and cologne, for men) is one of the ridiculous luxuries of a certain self-absorbed demographic, with the likes of Chanel and Cartier charging as much as €60,000 for the privilege of having a nose find your perfect scent. — (Via GridSkipper)

While Sir Hand Sloane offers bespoke chocolates

The $2,400 tailor-made package includes tasting consultations, a handmade rosewood-and-maple inlaid box containing 60 customized chocolates, and a backup box of another 60. — (Via Time)

And Perrier-Jouet recently announced a bespoke initiative, claiming it to be the most expensive champagne ever made.

Each of the successful buyers will also visit Perrier-Jouet’s Maison Belle Epoque in Epernay, and work with cellar master Herve Deschamps to tailor-make their own bottles, made with a base of Perrier-Jouet Fleur de Champagne Blanc de Blancs 2000 cuvee. — (Via DrinksInternational)

Luxury … for sale or rent

Gen. Luxury

guil0308.jpgSex And The City had a highly influential role in the relationship between pop culture and luxury brands. It helped boost sales of brands such as Dior and Balenciaga, and turned Manolo Blahnik into a household name.

The upcoming release of the new Sex And The City movie will again feature a rash of luxury brands, but reflecting a growing cultural shift, some of them will be for rent, not for sale.

The movie has signed a deal with luxury lease company, Bag Borrow or Steal.

The Seattle startup not only is mentioned in a scene in the movie, but the company plans to unveil a special “Sex and the City” online shop where customers can find accessories inspired by the popular cast of characters such as Samantha, Miranda, Carrie and Charlotte. Bag Borrow or Steal also is hosting a “Sex and the City Style Profile” contest on YouTube and a “Sex and the City Purse-onality” sweepstakes in which grand price winners can win a trip for two to New York for the premiere of the movie in late May. — (Via Seattle Post Intelligencer)

Portfolio sees this as part of a recession trend.

Luxury retailers may be on the ropes, their once-avid shoppers heading for the exits. But the economic malaise gripping the country could have a silver lining for a small but growing section of the luxury market, one that rents to women what they can’t afford to buy—or, possibly, keep. — (Via Portfolio)

Meanwhile, next month in London, the Fractional Life Expo will bring together all the elements of this growing shift in attitudes to non-permanent ownership…

From a strategic point of view, luxury brands need to understand the opportunities that are possible in an increasingly rental atmosphere.