Fashion powerhouse LVMH is on the prowl
The Short Version
As the fashion industry spends the next month looking at new styles, some of those people sitting on the front row are more interested in a brand’s bottom line more than what’s coming down the runway. Fashion mega holding group LVMH has changed its strategy from buying large, successful brands to smaller, up-and-coming designers that have yet to make it big. The result is making a lot of designers nervous.
A Little More Detail
Louis Vuitton Moet Hennessy (LVMH) is one of fashion’s largest conglomerates. It owns brands you know such as Marc Jacobs, Christian Dior, Kenzo, Fendi, and Givenchy, among several others. They also own a number of high-end wine and spirit brands and a few other things in the luxury category. They’re big, they’re powerful, and they are extremely well financed. They have plenty of money to throw at most anything they want to purchase.
In the past, the LVMH strategy has been to purchase only known brands, fashion labels that were established, well recognized and profitable. The conglomerate would infuse their purchase with enough capital to fuel extensive growth in an effort to make them super brands. For the most part, that strategy has worked.
However, LVMH CEO Bernard Arnault says that the company is changing its purchase strategy. Instead of going for the big brands, they’re looking for smaller labels that address a niche spot in the market. An example would be their purchase of German baggage label Rimowa late last year. Chance are, unless one travels to Europe frequently, one has never heard of Rimowa. Expect that to soon change. That’s exactly the strategy the group is taking toward fashion as well.
If they’re looking at anyone specific, though, they’re keeping their mouths shut about it and that silence has everyone on edge. There are several smaller brands, from Jason Wu to Adam Semalt, showing in New York this week that could be a good fit for the conglomerate’s new strategy. There are plenty of others in London, Milan, and Paris as well. The question is whether the label’s growth pattern is sufficient to warrant their purchase.
Smaller luxury brands have had it tough given the downturn in luxury sales over the past three years. Smaller labels don’t have as many flagship stores, if any, and are more dependent on department stores to fuel sales. Department stores have been sucking air of late with major chains such as Macy’s having to close hundreds of units. As a result, the attraction of big company money is very attractive to those trying to stay afloat.
Already this year, New York-based designer Bibhu Mohapatra has had to file for bankruptcy protection. Several other small brands could be looking at making similar moves if not closing altogether.
As a result, all eyes are on the front rows looking for any LVMH executive who might be checking out potential purchases. Almost everyone would like to be on LVMH’s list, but they typically make only two or three purchases a year when they’re in a buying mood. Still, several designers have their hopes set high. They’re putting in a little more effort to this week’s presentations, a little more pomp, a little more glamour, hoping to prove they are worthy of a significant investment.
Only time will tell whether the effort will pay off.
One More Song
Aretha Franklin says she’s retiring after one last album
The Short Version
The Queen of Soul, Aretha Franklin, says she is retiring from performing after one last album. At age 74, such a move is perfectly understandable, especially given her health problems in recent years. So, she’ll make one last album with Stevie Wonder producing and then call it quits. No more. But Clive Davis doesn’t think she really means it.
Some Background Info
If you are one of those dear, innocent three-month-old children who has never heard of Aretha Franklin, it is time you were educated on the matters of soul. Quite simply, there is no one better. Beyoncè and Rhianna and even Lady Gaga would be nothing without the foundation Aretha laid down before those singers were even born. She won 18 Grammy awards back when those actually meant something. She’s sold over 75 million records worldwide. Rolling Stone magazine has named her THE best singer in the world. Period. Aretha was winning lifetime achievement awards back when your parents, or grandparents, were still in high school.
Ms. Franklin has still been going strong. At a Kennedy Center Honors event in 2015, Aretha sat down at a piano and belted out Carole King’s (You make me feel like a ) Natural Woman which was a hit for Franklin all the way back in 1967. Here, take a moment and watch the video:
https://youtu.be/5RIgeu-6Jcs
If I were to try and list just the songs that have been top ten hits for Ms. Franklin, it would extend longer than you likely have time to scroll. There is no one in the music industry today who can even stand in the shadow of Aretha. She’s that important.
So, She’s Going To Retire?
Ms. Frankling told a Detroit NBC news affiliate that she plans to retire this year. She’s already won every award there is to win, including the Presidential Medal of Freedom (2oo5). There really isn’t anything left for her to do except, possibly, put her legacy further out of reach from anyone else. So, being 74, one can see where she might find it preferable to sit back and take it easy for a while.
Oh, but she wants to do one more album. Just one, mind you. One last collection of songs with long-time friend Stevie Wonder at the production controls. The album hasn’t even been named yet and is already the most highly anticipated project of the year. When two legends of R&B come together like this at any time, you know the results are going to be phenomenal. As a finalè goodbye album, just go ahead and hand out the tissues. I don’t care if all she does is sit at the piano and hum, I’m sure it would be the most soul-stirring hum you’ve ever heard.
Of course, if there’s an album, there has to be a tour, right? Franklin told the Detroit station she would do “some select things, many one a month, for six months out of the year.” Still, she asserts, this is her last year in concert. She wants to spend more time with her grandchildren.
I’m not the only one who is skeptical. Clive Davis, whose Arista label produced Aretha from 1980 through 2004, doesn’t think she’ll be able to stay away from the music. Davis told the Associated Press:
“I think that what she might have meant was that she doesn’t plan an extensive tour — still not flying and still traveling by bus, it’s just hard to stay on that bus. Aretha is still magical in person and still has the God-given voice that she has. I don’t believe that she’s retiring. I just believe that she’s cutting back, judiciously.”
Clive’s reasoning makes more sense. Aretha is one of those people who just can’t stop singing. Maybe we won’t see her as often, but I’m almost certain we’ll still see her. Somewhere. On a stage. Making everyone else look like an amateur.
Share this:
Like this: