must have vintage menswear Pierre BalmainFor those of us who want to express our taste, get something different and also, possibly, invest, vintage is the place to be, right now. I love a rummage around a vintage store or on eBay, but finding something decent, that fits, is tough, but that’s part of the fun and makes something good all that more special. Book - 

One of the easiest ways of finding something special is to look at a specialist online auction and Kerry Taylor Auctions in Bermondsey is probably the best specialist fashion seller in the UK. Admittedly, it is reflected in the prices, but they aren't crazy, especially when you compare them to today's designer prices. I always have a look at their online catalogue, not only to look at what is in the sale, but also for style ideas from the past. 

must have vintage menswear Tommy Nutter

must have vintage menswear Tommy NutterHere are TheChicGeek’s picks of the sale and why:

TheChicGeek says, “While I probably wouldn’t get into this dress… it’s the 1960s & 1970s optical prints that are all the rage at the moment. Just look at Dries Van Noten’s Verner Panton inspired collection for SS19 to understand how fresh these are looking right now. I'd love this print in a shirt.”  See Thom Yorke in Dries Van Noten SS19 it here 

Lot 202 : A Pierre Balmain couture printed organza evening dress, 1972

A Pierre Balmain couture printed organza evening dress, 1972. labelled and numbered 154665, boldly printed with 'target' medallions.

Estimate: £300 - £500

TheChicGeek says, “Vintage Tommy Nutter is very hard to come by. These aren’t particularly exciting, but, it’s the shapes you’re buying into: huge, exaggerated lapels and flared trousers. I particularly like the multiple vents on the back.”

Book - You need to read the House of Nutter here

Lot 252 : Two Tommy Nutter gentleman's wool suits, 1975-76

Two Tommy Nutter gentleman's wool suits, 1975-76. un-labelled, of similar design, the first in sage-green, the second beige, both jackets with exaggerated lapels, inverted pleat detailing to front pockets and rear; together with an original 'Nutters' hanger and photocopy showing the original owner.

Estimate: £300 - £500

must have vintage menswear Courrèges sunglasses glasses Kerry Taylor AuctionsTheChicGeek says, “These are a fashion museum piece, so I’d expect them to go for much more than the estimate. The late 1960s sci-fi/retro-future styles still fascinate and these are one of the iconic eyewear styles of that era.”

See more inspiration from 2001 Space Odyssey here

Lot 267 : A pair of Courrèges cream plastic 'eskimo' sunglasses, 1964

A pair of Courrèges cream plastic 'eskimo' sunglasses, 1964. signed along one arm, the solid lenses with horizontal slits, in a Courrèges plastic glasses case.

must have vintage menswear Courrèges sunglasses glasses Kerry Taylor AuctionsEstimate: £200 - £300

must have vintage menswear Pearly King OutfitTheChicGeek says, “While this isn’t an original Pearly King outfit, and more a stage costume, the allure is the style’s place in London’s working class street culture. While an original East London ‘Pearly’ suit would be the dream, it would be hard to find one in as good condition as this one.”

Lot 381 : A good 'Pearly King' outfit for 'The Yorkshire Coster', English, circa 1910

A good 'Pearly King' outfit for 'The Yorkshire Coster', English, circa 1910. of dark grey herringbone tweed and covered entirely with pearlised buttons, comprising jacket, waistcoat and trousers with buttons by 'Scarboro Etches'; together with an original photograph and pocket map of London. Provenance: The Castle Howard Collection, ex lot 210, Sotheby's, 7th October 2003. This suit belonged to William Wedgwood Fenwick (1886-1960) who was born in Scarborough to Methodist parents. He wanted a stage career and went to London where he trained as understudy to the performer Albert Chevalier. Eventually due to pressure from his family he returned to Scarborough where he opened a draper's shop. He used to entertain friends wearing this suit.


Estimate: £350 - £500

must have vintage menswear bracesTheChicGeek says, “Pre-20th century items have a preciousness knowing that the majority of clothing or accessorises fell apart through wear and never made it through the decades of time. These pairs of braces are really cute and show the whimsy in menswear going way back into history. These are pure dandy and would be fun to wear, if the condition allows.”

Lot 419 : Three pairs of men's braces, mid-late 19th century

Three pairs of men's braces, mid-late 19th century. comprising: petit point pair with motifs including matadors, galleons, native figures with feathers; another pair embroidered with forget me knots, both with elasticated and leather straps; a woven blue and white Edelweiss patterned pair; and a single poor condition petit point panel.

Estimate: £250 - £400

must have vintage menswear Northern India Ladakhi quilted hatTheChicGeek says, “This is giving me pure Gucci vibes, especially the yellow one. Saying that, Michele’s probably already ticked these off his list of references and he’s already ransacked Northern India from the first half of the 20th century for SS17!!!!”

See more about this AW18 season’s trend of Balaclavas here

Lot 464 : Two quilted hats, Ladakhi, Northern India, first half of the 20th century

Two quilted hats, Ladakhi, Northern India, first half of the 20th century. the first of golden-yellow silk damask; the second in black velvet with fauna stems stitched in gilt thread; both lined in red cotton. This style of hat is worn sitting high on the crown of the head, with the flaps curving outwards, during festivals.

Estimate: £100 - £150

Friday, 28 September 2018 10:50

ChicGeek Comment Life After Brexit

Life after Brexit Chanel moves global headquarters to LondonRemainers cover your ears. One of the world’s strongest fashion brands is moving its headquarters to London despite Brexit. Yes, Brexit hasn’t put them off. Chanel has decided to close its global headquarters in New York and move it to London.

Until now, Chanel did not have a single holding company for its operations and functions were located in a number of cities. In a statement from the French company, they said, “We wanted to simplify the structure of the business and London is the appropriate place to do that for an international company. London is the most central location to our markets, uses the English language and has strong corporate governance standards with its regulatory and legal requirements.”

Left - Even London's lampposts are Chanel!

‘Chanel Limited’ became the holding company of most Chanel entities in the summer of 2017 and this is why the majority of the global functions are now located in London.

“Brexit's economic and geopolitical impacts remains a challenge for the London economy. London is still dealing with a hangover from Brexit.” says Brandon Rael, Operations Strategy & Innovations Leader & Retail Digital Strategist. “We should expect that London will experience an upswing when the economy stabilises. Moving the Chanel HQ to London is very much a long-term strategy.” he says.

Chanel could have chosen Paris, but instead chose London, and this goes against the anti-Brexit rhetoric of companies leaving in their droves. In July, Chanel revealed its financials for the first time in its 108 history. It generated nearly $10 billion in global sales in 2017, making it one of the world’s biggest luxury fashion brands. This new openness is Chanel positioning itself and facing up to the dominance of the likes of Kering and LVMH. This is for the next, digital chapter in Chanel’s history. 

Brexit is so close, now, it is time to start looking beyond it and, Chanel’s decision would have been a long term decision from this globally revered company. While one company moving its headquarters to London doesn’t prove anything. In the same vein, one company moving out, doesn’t either. The major reasons companies move or stay in London won’t change post Brexit. They move to London because of geography, language, law and talent pool. This is about London competing with New York or Hong Kong and it is the only truly world city within Europe.

“London remains the world‘s most promising city for luxury retail growth, despite troubles faced by the Brexit vote,” says Rael. “A new report conducted by CBRE and Walpole has found that compared to other major luxury destinations across the globe, London still holds the greatest long-term potential,” he says.

The newly christened Capri Holdings - formerly Michael Kors -  has its principal executive office in London and Condé Nast International recently choose London to cope with the new demands of its digital future. Everything catwalk related: photography, video, social media and features will be lead by Vogue International, an editorial hub established last year to lead content for the 25 editions of the magazine.

Life after Brexit Conde Nast International moves global headquarters to LondonIn an interview in the New York Times with Wolfgang Blau, Chief Digital Officer of Condé Nast International, he said two-hundred editorial and engineering staff members had been hired, and next year, he wants to have a Vogue presence at about 900 runway shows all feeding back to London. This is Condé Nast cutting costs and becoming more efficient while focussing its global fashion content in London. This will only get bigger. Its travel magazine, Condé Nast Traveler has moved onto a new single platform, and it too would be overseen not from its birthplace of New York, but from London.

Right - London, not New York, is the global centre for all digital content

We were told that "Brexit would make us poorer”, but since the vote, and with a background of caution and underinvestment, Britain has a joint record high employment rate of 75.6% with 32.39 million people now in work according to the latest official statistics. (June 2018). There were 488,000 unemployed people aged from 16 to 24 for May to July 2018, the lowest figure since records began for youth unemployment in 1992. Overall, unemployment fell by another 55,000 between May and July to 1.36 million. Wages saw faster than expected growth in the three months to July. Excluding bonuses, wages grew by 2.9%, according to figures from the Office for National Statistics (ONS), well above the inflation rate.

Business is doing well. UK Trade benefitted from a goods export boom in July. Official figures showed the deficit in goods dropped to £10 billion in July from £10.7 billion the previous month. Including service, the overall trade gap fell to just £111 million, one of the best monthly results in the past 20 years. In the three months to July overall goods exports grew by £4.3 billion while imports rose by £3.7 billion. This came largely from trading with countries outside the EU.

“It looks like Brexit is going to be a good thing for luxury fashion as people in the US and China take advantage on preferential tariffs coming from the UK.” says Fleur Hicks, Managing Director of onefourzero, a data analytics and digital research agency.

Eurotunnel recorded its best ever August for freight traffic and the number of passengers passing through Heathrow’s terminals jumped to 7.5 million last month, boosted by new services to China. Europe’s biggest airport, said August customer numbers were up 2.6% from a year earlier and cargo volumes were up 1.2%. Asia saw the biggest increase in passenger numbers, up 6.3%, with new services from Hainan Airlines, Tianjin Airlines and Beijing Capital. Gatwick also saw a 0.4% rise in passenger numbers to 4.9 million and its cargo traffic soared a whopping 22.3%.

Irina Bragin, from Made of Carpet, who specialises is making luxury carpet bags, says “I think I have one advantage of Brexit in mind. Today selling to the EU as retailer (to the end buyer) we pay VAT, same as we sell in UK. After Brexit, it will be the same as selling to US, or Canada, or Australia - no VAT to pay.”

I know it’s fashionable not to be positive about Brexit, but, it’s 6 months away and it’s time to turn the negativity into optimism. Global businesses are looking past Brexit, for the longer term, and what makes London great to do business in hasn’t really changed. Brexit is something new and unknown, but, in Britain’s true entrepreneurial spirit, we can do this!

Tuesday, 25 September 2018 13:41

ChicGeek Comment Versace to Kors

Versace bought by Michael KorsVersace is a trophy brand and I can imagine many a green eye coming from the offices of LVMH, Kering and other fashion conglomerates asking why they hadn’t claimed this prize themselves. While the price isn’t a snip - approximately US$2.12 billion - and nobody knows the details of Donatella’s contract - it would have be something special in order to entice her to sell the family’s 80% stake - it is one of the few brands which resonates on to the lips and minds of everyday consumers. This happens for very few brands and is very hard to achieve.

Left - In Donatella's image? Versace advertising

Versace has a strong identity and tropes which are continually referenced - you only have to look at the continual ‘baroque’ collections from ASOS, Boohoo and River Island to see that - yet it never seems to fully capitalise on them itself. It can’t turn that into money. The profits are small - 15 million euro in 2017 - and it was always a brand which seemed to play musical chairs with its store portfolio; continually opening and closing stores.

On the other hand, Michael Kors is a well run accessorises company. The minute they knew their mid-market brand had peaked, and their market was saturated, they started closing stores -  between 100 and 125 over two years. They knew the landscape changed, the brand was fatigued, and you need to make hay while the sun shines, which they’ve done. It’s knowing when to start putting your money into new areas and elevating. Everything is about ‘elevating’ ATM!

The confidence of buying Jimmy Choo, and that seems to be doing well, has maintained the momentum of this spending spree. While not likely partners, many groups have disparate brands and, if Michael Kors knows one thing, it’s how to grow.

John D. Idol, Chairman and Chief Executive Officer of Michael Kors Holdings Limited, said, “With the full resources of our group, we believe that Versace will grow to over US$2.0 billion in revenues (from 668 million euro currently). We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth.”

“Donatella’s iconic style is at the heart of the design aesthetic of Versace. She will continue to lead the company’s creative vision.” he says.

Versace bought by Michael Kors

It’s interesting to remember LVMH used to own a third of Michael Kors before he went for the masstige market and the company blew up and he was also the Creative Director of the LVMH owned Celine in the late 1990s.

The new group will be called ‘Capri Holdings Limited’. (Didn’t Michael Kors once do a mink beach towel with ‘CAPRI’ on it?) The new group says there is an opportunity to grow the group’s revenues to US$8.0 billion in the long-term, which would make it one of the largest fashion companies.

Right - Vintage Versace advertising - Gianni Versace is forever associated with the Supermodels

Donatella Versace says, “Santo (brother), Allegra (daughter) and I will become shareholders in Capri Holdings Limited. This demonstrates our belief in the long-term success of Versace and commitment to this new global fashion luxury group.”

Michael Kors’ expertise is accessorises. They say they want to expand Versace men’s and women’s accessories and footwear from 35% to 60% of revenues. Versace has never really resonated in these areas, often looking more tacky than desirable. Jimmy Choo will also offer synergies in luxury footwear and bags.

There’s also going to be a filip back to dressing up at some point and Versace is well placed, particularly in a sexually charged, Italian way.

As for more affordable products, they could expand underwear, home, sunglasses and perfume. The perfumes, since the very beginning, have never matched the quality and branding of the rest of the brand. Versace needs to choose areas and do them well, rather than the light licensing it has often achieved since its inception in 1978. Versace was one of those brands that had such disparate product - from cheap looking tins of perfume to the most luxurious Italian printed silk.

Capri Holdings say they want to “build on Versace’s luxury runway momentum”, - *books Supermodels* - and want to be less reliant on its home market of the US, grow in Asia and become more global.

Versace must have had numerous takeover offers through the years and it would be interesting to know the reasons of, why now? Why Michael Kors? The brand is 40 this year, so maybe the family want to fully maximise its potential, maybe it was pressure from the private equity investors to get out, or maybe it’s the realisation that you have to turn into a billion dollar brand to survive. Grow or die.

Below - The Versace ladies by Steven Meisel 

Versace bought by Michael Kors

Monday, 24 September 2018 11:21

Menswear Trend Daytime Sequins

Men's sequins sequinned menswear GucciIt’s time to shine! You’ve probably noticed menswear getting bigger, brighter and sparklier, recently. It can probably be pinpointed to social media - how much black do you ever see over there? - but menswear has never been more experimental - I wrote about it here - High Street Peacocks

Left - Gucci - Sequin Bomber Jacket - £4040 from Farfetch

Well, it’s time to get the sequins on and not in the traditional night time/office Chrimbo party type way. This is sequins everyday, down the shops and out for coffee.

Men's sequins sequinned menswear GucciThe most versatile shapes are the bomber jackets, which give you a Michael Jackson quality, and festival type T-shirts or shirts, which look great as the nights before longer and our days need some magic and sparkle. Don't be scared, shine bright like a diamond!

Left - ASOS DESIGN - Skater Trousers In Silver Sequins With Red Side Taping - £40

Below - ASOS DESIGN Festival Oversized Sequin Chevron Stripe Shirt In Silver - £40

Men's sequins sequinned menswear ASOS


Men's sequins sequinned menswear Valentino

 

 

 

 

 

 

 

 

 

 

 

 

 

Left - Valentino - Sequinned Bomber Jacket - £6250 from Farfetch

Men's sequins sequinned menswear boots Christian LouboutinLeft - Christian Louboutin - Huston Sequin-Embellished Ankle Boots - £995 from matchesfashion.com

Below - Jaded - Black, Green & Red Sequin T-Shirt - £50 from Topman

Men's sequins sequinned menswear Topman Jaded London T Shirt

Men's sequins sequinned menswear River Island

 

 

 

 

 

 

 

 

 

 

 

 

Left -River Island - Men’s Jaded Red Sequin Bomber Jacket - £130

Want sparkly feet? Read more here

Need more inspiration? See Best Dressed Chic Geek Jeff Goldblum rocking party season

 

 

 

 

 

 

 

Thursday, 20 September 2018 15:21

ChicGeek Comment Is Farfetch a Worthy Investment?

Farfetch IPO should you invest?As luxury online marketplace, Farfetch, debuts on the New York Stock Exchange, I ask, is it a worthy investment?

This isn’t particularly scientific, but, recently, I was looking for a particular AW18 Dries Van Noten jacket I’d seen, in store, in Selfridges. It wasn’t on their website, so I tried Mr Porter. Nothing. So, then I thought I’d search FarFetch. With over 600 boutiques said to be affiliated to their network, and 375 luxury brands, you’d expect a decent selection to come up. Nothing again. 

Left - Is Farfetch high on the list of your luxury searches?

Dries Van Noten isn’t the most ubiquitous of fashion brands, but without a large network of own brand shops, it is usually sold wholesale to designer boutiques and is found in the majority of luxury department stores. It’s big enough. It felt strange nothing was on Farfetch. This isn’t the first time this has happened and the reason why it wasn’t my first place to search.

Farfetch just had its valuation lifted and is set to be valued at between $4.9bn and $5.5bn in its initial public offering in response to investor interest in technology stocks. The shares have a price range of $17 to $19, according to an updated regulatory filing published this week. The original range was $15 to $17. 

Joseph Wong, an investor in luxury fashion stocks such as Burberry, ASOS, Bvlgari and Mulberry, says “Farfetch assimilates some of the best independent boutiques into a common platform. What’s valuable is the technology and the list of stores they represent. For that diehard enthusiast, he/she can do a quick search for that elusive Off-White piece or vintage Chanel piece, with a click to buy option.”

The majority of IPOs are often overpriced. They are filled with hot air to give healthy profits to the founders and early investors. Not to mention the fees to the money men to maximise the price and get the listing on its way. Farfetch, established in 2007, is being marketed as more of a tech company, where the prices are higher, rather than a retail marketplace model which takes a percentage from each transaction sold through its website.

The most recent Farfetch results show revenues of $267.5m in the six months to June 30, 2018, and losses before tax of $68.4m. Farfetch had total revenues of $910 million last year.

To put this in the context of the market, Yoox Net-a-Porter (YNAP), which was acquired by luxury conglomerate Richemont recently, valuing the business at €5.3 billion, and matchesfashion.com was sold to private equity firm Apax for over $1 billion last September. In the 12 months ending Dec. 31, YNAP saw year-end preliminary sales reach 2.1 billion euros ($2.5 billion). Matchesfashion.com recorded group revenue of £293 million ($393 million) to 31st Jan 2018.

“From our research of the luxury fashion market, FarFetch led in terms of traffic capture between 2015 and 2017, and maintains a good reputation. It has a sound business model, good commercials and no flagged operational or customer issues.” says Fleur Hicks, Managing Director of onefourzero, a data analytics and digital research agency based in London.

Farfetch IPO should you invest?

“It is an ambitious listing price, but in the context of the growing luxury fashion market, this could see returns within the next months and years, depending on how ambitious your investment strategy.” she says.

The global fashion industry is, according to a 2017 McKinsey report, valued at $2.4 trillion. If it were ranked, alongside individual countries’ GDP, it would represent the world’s second largest economy. From 2014 to 2018, the luxury fashion industry was expected to grow from 3% to 17% of the total fashion market. Annual online sales growth was expected to be 17% in the US, 18% in the UK, 12% in Germany and a whopping 70% in China, according to the report.

“It’s a good business model within a growing marketplace.” says Hicks. “The return risks of minimised stock and holding outlays look to outweigh the risks associated with reliance upon 3rd party operations, such as delivery. It averages a 30% mark up and thus a 50-odd% margin on operations. Incredible for the fashion industry. Also, the growth rate - 60% this year - is impressive.” she says.

Right - Is the value in Farfetch in its tech?

“Of the competitor set we analysed, Farfetch represented 3.8% of the captured online traffic market, representing the market lead. This competitor set only represented 17% of the potential traffic available (based on digital demand and traffic) and therefore the headroom for brand and revenue growth is huge.” says Hicks.

Farfetch’s future growth is potentially going to come from its ‘White Label’ service supporting brands such as Manolo Blahnik, Christopher Kane, DKNY and Thom Browne in their e-commerce offerings. 

Farfetch have announced many strategic partnerships recently to further enhance the value of the company. These include Chanel, Chalhoub Group, one of the biggest distributors of fashion and luxury goods in the Middle East and the modesty luxury retailer, The Modist. They have also partnered with brands such as Harvey Nichols and Burberry. This is spreading their risk and also leveraging their technical expertise. It’s what Ocado has done in food.

Wong says, “You also need to consider what they will be using the cash raised from the flotation for. When Prada was listed, it was to relieve the billion Euro debt, open more stores and provide an exit plan for the founders.”

Farfetch are investing heavily in technology and this does explain some of the losses. They hope they will be able to charge other brands handsomely for this and the ever important 'big data'. 

Are there any potential waves on the horizon? “Digital commercial disruptors are most likely to threaten large behemoths like Farfetch.” says Hicks. “This would most likely come from Amazon or AliExpress fashion lines and/or new ways to purchase fashion in a more interactive way.  It’s unlikely that this will be a quick transition, so if FarFetch remain on pulse with technological change and consumer movements then they should be agile enough to move with the technical and operational trends as well as fashion trends.” she says.

Wong says, “Businesses are keen to connect directly to consumers, and cut the middlemen: think Kylie Cosmetics, Pat McGrath. This is happening to media industry too: Netflix originals instead of via Sky or Virgin Media. Not sure if Farfetch have addressed such concerns before.”

“There is also the downside for retailers: I once noted a £1500 price difference on a stunning new season McQueen coat: the result of a weak sterling and import taxes levied by a store from the Far East.” he says.

According to Bain & Company, the luxury goods market reached a record high of €262 billion in 2017. Online sales jumped by 24%, reaching an overall market share of 9%. Bain & Company predicts the market will be worth $446 billion market by 2025. Online’s share is expected to be its fastest-growing segment, rising from about 9% to 25% by 2025.

Farfetch IPO should you invest?I think you need to look at Farfetch in the context of being a major player in a fast growing market. The valuation seems to be based upon its potential and the appetite for this type of technology stock. 

I don’t think the name ‘Farfetch’ is particularly well known with general consumers. They need to work on the parent brand and getting its name into the luxury consumer’s head for that initial search. They also need to feel like the Amazon of luxury: all the choice on one site, which takes me back to my disappointing Dries Van Noten search. They could do better with packaging and more Instagrammable things to raise awareness of the consumer side of the brand. 

There also have a lot of variables. They have different stores buying different things in different currencies and it loses something of that personal touch that other retailers seem to nurture and one of the reasons you go to a retailer. 

Left - The online market is growing massively and is set to grow from 9% to 25% of the luxury market

As for selling the tech. to other brands, I think this is where the long-term value is, but they need to be careful not to overstretch themselves and have too many fingers in too many pies. It’s better to do fewer things well. It feels like they are still working out the direction they are going in. They could easily focus on either sides of this business and quietly reduce the other. They need to grow revenues while keeping the costs constant or reduced. They just don't want to lose the momentum.

The price seems, initially, far fetched, (soz), but the long term prospects for luxury online is looking good.