Tuesday , August 16 2022

Depth | After Karl Lagerfeld dies, the eight fashion industry compromises change – Wall Street


This article Source: LADYMAX (ID: lmfashionnews), Author:o


The death of the fashion master Karl Lagerfeld will add a new brand heritage to Chanel outside Gabrielle Chanel.

Author | Drizzie

In the last 20 years, the structure of the fashion industry has remained relatively stable. However, very few people realize that the "fashion" people use are the concept and customs that industry authorities have spent decades build them, but fashion is not necessarily true.

In the significant changes in the industry in recent years, people have seen the collapsing of a traditional authority, and there is a "black swan" phenomenon that has been a breakthrough of the law from time to time. Therefore, the fashion received by the nature and future of this fashion needs to be reconsidered.

Karl Lagerfeld's death has ensured the debate on this topic even earlier. As the most active person in the fashion industry, Karl Lagerfeld has set up some sort of "common sense" in the last half century and a large number of peers have copied and copied. For example, selling brand classics through innovative packaging methods, stimulating a great deal of resources to make fashion showcases a large-scale marketing campaign, making fashion a landscape rather than clothing, expanding the brand product line for the brand, lifestyle & brand The "Dream" even includes the "star" of the creative director.

Karl Lagerfeld began his career as a assistant to Pierre Balmain and became the Chloé designer in 1964. In 1965, Karl Lagerfeld joined Fendi as a creative director, creating a double D logo and working in this situation for over 50 years. Since 1983, Karl Lagerfeld has been the Chanel artistic director and is the second most important figure after setting up the Gabrielle Chanel brand.

When I joined Chanel for the first time, the French luxury brand acquired by the Wertheimer family was in a trench, and Karl Lagerfeld, who had just gone to the brand, also had a difficult start-up. Interestingly, this designer that has become synonymous with Chanel's classic spirit has also been considered too radical to drop the founder's style. With the many innovative methods mentioned above,Karl Lagerfeld helped Chanel re-join the top, becoming one of the most complete luxury brands in the industry, with the most consistent and most lucrative luxury brands in the brand, with annual sales of nearly $ 10 billion.

However, when the dramatic changes in innovation and consumer groups come to a consensus, it also means reaching a new cycle, especially when the traders who build the traditional power system are drawing & # 39; The whole-fashioned industry-driven chain response presents a completely different picture. . It's worth noting, unlike the death of design master such as Givenchy and Yves Saint Laurent, Karl Lagerfeld, who still works at the end of his life and holds key positions in three brands,Its absence not only means that the traditional style of sketch paintings in the last century will be weak, but it will also have an unpredictable effect on the whole luxury fashion industry.

The turning point has arrived. The problem facing the fashion industry is, in the post-Karl Lagerfeld period, what common sense and fashion world pattern will be broken, and what new rules will be reversed.

Chanel has announced that Virginie Viard will replace Karl Lagerfeld as a creative director

1. Will Chanel be the next Balenciaga or Saint Laurent?

The issue of successors around Chenel and Karl Lagerfeld, who had been dissatisfied for a long time, was answered on the day of the announcement of Karl Lagerfeld's death. Chanel announced an official statement saying that former assistant Karl Lagerfeld, Virginie Viard, will take over as a creative director.

In the case of Chanel, Virginie Viard is a security card, and for Chanel, who has been a favorite fan, conservative movements are understandable.Compared to other star star creative directors, it is considered that Virginie Viard, who is reared in creative studios internally and managed, is the most reliable successor. After 30 years of progress, Virginie Viard and the Wertheimer family behind Chanel and Karl Lagerfeld have built deep trust, and she has been familiar with the fashionable creative studio issues, and they can "doc" seamlessly.

After Virginie Viard took the job, which would change Chanel's style as Karl Lagerfeld originally, or as many new creative directors to clean up the brand after taking the job, the answer may not be. For Virginie Viard, who has been working with Chanel craftspeople and long-term work programs, he will continue to extend the current brand style to a large extent, and Chanel's mature design and design design also guarantees the commercial machine big. Normal operation.

As consumer choices change, it is apparent that innovation and radical change are the tendency of times. Nobody can guarantee where the brand will go to the new environment. The renown of Saint Laurent and the Balenciaga are famous in typical cases.

After the legendary designer of Yves Saint Laurent left the incredible brand, Yves Saint Laurent, which was collected by the Gucci group, then in 1999, became the form of Tom Ford's sexual shape. Stefano Pilati re-interpreted the classics such as smoking and hunting jackets. Can save the sales that dropped after the founder died in 2008. Hedi Slimane made an extremely controversial opposition from the brand after taking the creative director, including changing the brand to Saint Laurent and change the logo to spray rock rebellion. After Anthony Vaccarello began to take the mark in 2016, the brand continued its strong performance during the Hedi Slimane period.

Cristobal Balenciaga, founder of Balenciaga, closed the fashion house in 1968 and died in 1972. After a period of shortcomings in the last century, Nicolas Ghesquière served as a creative director in 1997, examining Cristobal Balenciaga's examination of fashion silhouettes, spraying futuristic elements . But Nicolas Ghesquiere failed to help the brand achieve significant business gains. The brand remained confusing during the period of Alexander Wang, and finally turned under the leadership of the Vetements founder, Demna Gvasalia, who had branded it thoroughly, and immediately managed to succeed.

For Virginie Viard, the challenge that faces her is unlikely. Chanel can sit back and relax during the first 20 years, but today's world is changing too fast, and the option does not adhere to the rules. The traditional rules of the fashion industry continue to be cut.

Chanel's handbags will increase prices in the short term, how to maintain shortages is the biggest challenge

2. Will Chanel products continue to increase in price?

It is not unusual for the founder to die, which has led to an increase in resale product prices. After Kate Spade, the original "luxury handbag", committed suicide last year, his loyal users have chosen to buy their eponymous handbags to express their memorial. The price of the handbags used by Kate Spade has increased by 6 times in just three days. The price of one of Kate Spade's old luggage has increased from $ 80 to $ 300, which is similar to brand new products.

Kamini Lane, the leading Fairtrade marketing officer, an online fashion e-commerce platform said that when a master's designer dies, their product demand will increase in the short term and the price will double. This is very common. Things.

For Chanel, which is quite popular in the resale market, the death of the character of the soul Karl Lagerfeld,Under the influence of currentity and shortage, it will be certain that product prices will vary.According to the latest data from the social shopping platform, Depop, after the death of Karl Lagerfeld, the designer's search volume raises 1351%, and the desire for consumers to buy Chanel is also rising. Brandon Veloria, co-founder of the old Manhattan shop, James Veloria, revealed sales of Chanel products in the store have increased recently, especially in the design of the 90s brand. RealReal's platform for luxurious resales said that users are starting to wear Chanel classic classic jackets and costumes this week. And the search volume of handbags has increased.

More recently, in recent years, Chanel's regular price products have also maintained a steady pace of price increase, making an investment target for classic handbag products. Last year, Chanel bought a price for some products in May, July and November respectively. In the last 5-8 years, some of Chanel's handbags raised as much as 70%. Chanel's price rises are mostly classic models, and sales are particularly good. It will also raise prices, such as Gabrielle's latest star bag bag. Currently, Chanel, undoubtedly, becomes a most valuable luxury brand with the most frequent conversion and frequency.

One of Chanel's headteachers, Alain Wertheimer, is still in good condition, with a new idea almost every 5 minutes.

3. Will LVMH acquire Chanel?

At the end of 2017, there were French media reports. The owner of LVMH, Bernard Arnault, met the family of the owner of Canel Wertheimer to try to acquire Chanel. Although Bernard Arnault has said that the group has never been in touch with Chanel, he still stops the industry from worrying whether Chanel can continue to be independent.

Chanel has repeatedly stated that the group will never sell or try an IPO, and this will not change. Originally, the brand founder Gabrielle Chanel relies on Pierre Wertheimer to invest in the brand, the first one but 10% of the shares, this share of shares was later acquired by the Wertheimer family , and now the Chanel group is run by the grandchildren of Pierre Wertheimer, Alain Wertheimer and Gerard Wertheimer, according to Bloomberg Wertheimer brothers are expected to pay dividends of $ 3.4 billion in 2016, and their wealth Currently totaling around $ 46 billion.

In the first half of last year, Chanel took the initiative to disclose detailed financial data for the first time since its inception in 108 years. Its total sales for the 2017 financial year expanded 11% year by year to US $ 9.62 billion to approximately 8.3 billion euros and an operating profit of US $ 2.69 billion. Net profit was recorded at $ 1.8 billion. Chanel currently does not have a debt and she has $ 1.6 billion in cash.Some analysts pointed out that Chanel was not moving to publish the financial report, not only did the uncontrollable acquisition, but also show that the brand is still an incredible situation in the luxury goods industry.

But in the last month, the latest Kaiyun Group's recent earnings report revealed that Gucci, who is going to Hermes in 2017, has set a new record of his performance, bringing the club to 8 million euros for the time being first, and Bernard Arnault also revealed the performance of his Louis Vuitton core brand for the first time. Thirty-billion euros were recorded, a difference of just 2 billion euros. The industry pattern has changed quietly. Louis Vuitton, Chanel and Gucci's sales data have been drawing closer and the luxury brand one battle has started.

However, in this case, compared to the highly radical manager of LVMH Bernard Arnault, and the second generation of ambitious family business, owner of the Kaiyun Group Franois-Henri Pinault, the Wertheimer family is outstanding very low. He retired behind the curtains and set Karl Lagerfeld in the middle of the lights on stage, becoming the only spokesman for the brand.

What is busy is that both brothers are old, the problem of successors has always persistently remained, whether it is the successor's successor, or the question of the successor of the director creative during the life of Karl Lagerfeld. Do not talk The descendants of the Wertheimer family did not take part in the group's operations, which further exacerbated the speculation that he intended outside the Chanel Group. On the other hand, the children of Bernard Arnault have held important posts in the group. The only girl, Delphine Arnault, has joined the group's board of directors this year. At age 43, she is the youngest member of the board and is considered a successor.

But at the same time, despite the low key, the Wertheimer family continues to be tightly controlled. 2016Former CEO of Chanel, Maureen Chiquet, was rejected for his strategic disagreement with the Wertheimer family. Currently, the chairman of Chanel Alain Wertheimer is CEO and Bruno Pavlovsky is Chanel's president of the fashion department.Chanel Philippe Blondiaux's chief financial officer interviewed that Alain Wertheimer, who is almost 70 years old, still remains in good condition.There will be a new idea almost every 5 minutes.

Philippe Blondiaux recognizes that the group has long-term internal disputes about whether performance data should be disclosed, but in the face of increasingly fierce competition,The Conservatives should not be a barrier to Chanel's further development. The group realized that it was currently giving the data in front of the public to prove that it was a company with a very strong financial position and worth $ 10 billion.

Keeping mysterious occasional brilliance of the sword is a great way to play Chanel.However, the fierce competition has met Karl Lagerfeld's death, but it has undoubtedly exacerbated the distress of the group for a short time. The luxury industry is a big fight, and the Wertheimer family chooses to let go or leave, people do not know. But there is no doubtChanel has a hard time for Bernard Arnault, who has once again had a heart on Hermes and Gucci..

Karl Lagerfeld has the ability to master "classic" in Fendi and Chanel.

4. Who will take over Fendi's creative power?

In fact, apart from the group strategy, Karl Lagerfeld's death is having the most direct effect on LVMH is his third largest luxury brand Fendi.

According to foreign media quoted by LVMH representatives, after the death of Karl Lagerfeld, Fendi will not hire outside designers to take up the position of creative director Karl Lagerfeld, but he is considering taking over by the brand founder , Silvia Venturini Fendi. Baguette bags designed by Silvia Venturini Fendi in 1997 have reappeared in recent years. Last month, the brand also held a special event on the handbag. In response to this news, the LVMH spokesman dismissed comments and said that he was still too early to discuss the successor of Karl Lagerfeld, Fendi will use a period of time to express his respect for Karl Lagerfeld.

It was founded in 1925 in Rome, Italy, and Fendi specializes in producing high quality products. After the death of one of the founders, Edoardo Fendi, Fendi was run by her five daughters. In 1962, Fendi, designer of German designer Karl Lagerfeld, appointed the designer, and Karl Lagerfeld designed "Fur F" Fun Fur "logo to Fendi who launched the first collection to wear.

The "D Fbl" logo was launched by the young people of the street who liked to show them at the time. The logos came like flying jackets, hoodies, Rockoko sneakers, handbags, Peekaboo handbags and Runaway handbags in the 70s and 80s. One of the standards for street youths. As the brand market share of the luxury goods industry continues to increase, LVMH bought a majority share in Fendi in 2001 and planned a globally detailed blueprint for the brand, rising steadily to a million dollar dollar year. The brand is twice as big as the acquisition of LVMH in 2001.

Behind the fast success of Fendi is the effect of the explosion and the junior strategy. Popular handbags such as Peekaboo have promoted the brand into one of the most competitive and popular brands in the leather industry for many years. Fendi is often able to save the explosion of the "fate" of the heat, and then make it classic.This also reflects Karl Lagerfeld's outstanding ability to control the "classic", in Fendi and Chanel.

Last year, with the revival of a logo of worship, Fendi, which was considered a luxury fur brand, began to be popular among young people. The brand's classic "Double F" capsule logo series is the first time in 2013 that the brand has left the Big Logo element, and the brand logo has appeared large-scale for the first time in the new series . Some people in the industry indicated that Fendi will become "the next Gucci."

Karl Lagerfeld's Chanel has a more personalized color, but Fendi Karl Lagerfeld is more brand of the LVMH group acting style. Karl Lagerfeld's death is definitely a big loss to Fendi, but the future development of the brand has little impact.

At present, the Karl Lagerfeld eponymous brand covers leather, clothing, watches and herbs. It has a KARL.COM e-commerce platform in 96 countries.

5. Where will Karl Lagerfeld's eponymous brand go?

Compared with Chanel and Fendi, where business burden is more intense, Karl Lagerfeld's eponymous brand is more like playing field, which creates its creative ideas truly.

The brand is known for its surprise cross border co-operation. Last year, Karl Lagerfeld joined the chairman of the Millennium Kaia Gerber to launch the Fall 2018. Unique collection. Not back, he also announced a partnership with BAZZAR Haper's global fashion director Carine Roitfeld, and Carine Roitfeld will be involved in designing some of & The breakdowns in the collapse of Karl Lagerfeld 2019. Choupette cat Karl Lagerfeld have also been the source of inspiration to the collection.

The eponymous Karl Lagerfeld brand belonged to Tommy Hilfiger earlier, and later Tommy Hilfiger's company was purchased by Phillips-Van Heusen (currently PVH Group), but Karl Lagerfeld was not in the transaction. The brand was re-launched in 2011 by Apax Partners, Europe's largest private equity investor. In 2016, the joint venture set up with G-III to re-launch Karl Lagerfeld Paris in the North American market. The brand currently includes leather, clothing, watch and herb goods, and has a KARL.COM e-commerce platform in 96 countries.

In the Chinese market, Fujian Seven Wolves spent RMB 320 million in 2017 to earn a 80% share in Karl Lagerfeld Greater China Holdings Limited (KLGC). KLGC owns the international uses of the international luxury brand Karl Lagerfeld in trademarks including Greater China and Singapore. However, the revenue of the brand recorded a continuous decline between 2014 and 2016, with losses of 10.17 million, 5.98 million and 3.59 million respectively. Originally, the seven plans intended to combine the benefits of their locations and the benefits of the brand design of Karl Lagerfeld to achieve a win win situation in East China, but last year, Karl Lagerfeld continued to lose money, dragging the performance of seven drops .

After the death of Karl Lagerfeld, where the creative direction of his eponymous brand goes, can he recover from the death of the designer, and stimulate performance growth, and what the Fujian Seven Pirates can have control rights & # 39; The Chinese market reverses the loss of the Karl Lagerfeld brand, These issues are subject to proof of performance data.

Karl Lagerfeld died the last life contract in the fashion world

6. Is the stage of superstar designers?

As soon as last year, the fashion director New York Times, Vanessa Friedman, said in an article entitled "The World World After Anna Wintour", the changes in the industry landscape after the most authoritative Anna Wintour of the fashion industry, Referring to most jobs in the fashion industry at the time. Karl Lagerfeld is likely to leave the stable man because he has signed a life agreement with Chanel.

However, in the current industry environment, as the competition becomes more and more fierce, the brand and designer will face the risk of being eliminated by the market once they become misuse. Luxury brands are no longer looking at the long term, just worrying about the current response, the only creative director who is worried about seasonal performance. The Chinese designer, Yin Yiqing, left the old Poiret fashion house after only two seasons. Raf Simons, who launched a series of image innovations for Calvin Klein, was outside after two years of opening due to the imbalance in investment and output in creative marketing. And scattered.The brand's creative directors, such as slide slides, have once again shown that patience of luxurious brands has reached unprecedented levels.

The goal of replacing creative directors is often nothing more than a brand new boost, which is behind the concern that luxury brands can not now reduce. The rhythm of the fashion industry is accelerating, consumer choices are unpredictable, and brands can not find a more effective approach. It seems they can only respond to changes in the market by constantly changing creative directors. Therefore,Karl Lagerfeld's death is likely to erase the first and final contract of the fashion designer.

In fact, the life contract is the extreme recognition of the brand of the influence of the signing object. Even in the most glorious stage of star creative directors, signing a life agreement does not practice in the fashion world. Karl Lagerfeld is one of the few designers who can have a strong personal appeal without relying on any platform. It's a star, not just a star creative director. His death is social news, not just industry news.

So when the creative director becomes a star, he also has the conditions to sign a life agreement. However, with creative directors such as Raf Simons, Alber Elbaz and Christopher Bailey, most of them leave temporarily with a sincere attitude.It seems that the golden star of the creative star director has turned over, but we have to ask again, is Virgil Abloh, closer to the star "made mankind" continue to guide luxury brands for 50 years?

London's Choice also means that the brand hopes to dig into creative and managerial talent during the spectacular period.

7. Is Chanel's headquarters moving to London a new starting point?

Chanel's big show is held every year at the Grand Palais in Paris, but at the same time, the luxury of the French luxury brand relocated its management focus from New York's headquarters to London, which is Brevard's pervading panic.

Last year Chanel announced a major restructuring plan that would standardize all its operations to the same department to improve operational efficiency. Chanel's new headquarters are located in London, UK, and all its business units, with a total of 20,000 employees, will work together. According to the "Evening Standard" report, Chanel has rented an office of 20,000 square feet to provide a large number of New York employees.

Chanel's official announcement shows that this change is an attempt by the company to streamline and optimize the organizational structure of the company. As the UK occupies the core position of Chanel's global market, it uses English as a first language and adopts a strict corporate government. Standards, so the UK has become a city most suited to Chanel for international business development. Justin Picardie, Chanel's biologist, said the establishment of an international office in London meant choosing one of the cities with the world's world's highest growth rate. London's richest man is second only to Hong Kong.

Another analysis of the choice of London also means that the brand hopes to excavate creative talents and control during the difficult times. After all, the chairman of Alain Wertheimer still has the position of Chanel's Chief Executive, and young management talent needs to add to the brand innovation in the future.

However, as the date of Brexit is approaching, is it really that this French luxury brand is very happy to face much uncertainty, and does Brexit affect the communication between the brand management and creative team of Paris. But in any case Chanel bets that it's not easy.

In the future, Chanel products can also use Karl Lagerfeld as a source of inspiration to enrich the brand's story.

8. Can you wake up industry surveillance against street trends?

Very few brands can do the same with Chanel, and the founder Gabrielle Chanel, the "core" brand brand, is 108 years old and is not old. This is based on Chanel's ability to give the new story to the core story, as well as the style stability brought by Karl Lagerfeld, and signing the age contract.

Of course, in the rapidly changing fashion industry, Chanel can not protect itself, and it also faces the core problem of keeping the brand fresh. But during the last year,The radical regeneration and volatility of some luxury brands has made consumers feel less fresh at the beginning, returning to Chanel and Hermès, who are more careful about maintaining luxury properties, looking for classical luxury products and unhealthy.. People who buy Chanel's handbags know they are not practical products, but seek social distance and values.

According to the annual site of the 500 most valuable brands of the world released by the British information information company, Brand Finance, the brand value of Chanel has risen by 95.1% in the last year, which is 299 from the previous year to 149.What is certain is that Karl Lagerfeld's death will add a new brand heritage to Chanel outside Gabrielle Chanel and continue to add brand value to Chanel. In the future, Chanel products may be inspired by Karl Lagerfeld, which makes the story of the brand more extensive.

The base of the luxury brands is based on "dreaming" and they have a creative background of landscape prosperity. If the luxury industry is considered an independent society, then every brand is currency. Money is a virtual concept, and luxury or brand are also virtual concepts. The exchange value of both is higher than the value of use. In this independent society, every brand must convince consumers to use their own money. In order to avoid bad money and stimulate good money, every brand must work harder in this competition, enforcing the creative director to learn to fight first, then go Carved design.

However, after a combined "brain fever" in the luxury merchandise industry, it is necessary to be vigilant that the brand must not only convince users with enough chemistry, but also consider the value of the brand in the long term, and it should also distinguish between the truly innovative core and changing the soup. The difference between medication tips. The disturbance of the flow and surface may be at the expense of long-term brand value. At this point, Chanel and Karl Lagerfeld's style will again sound the alarm for industry peers.LikeKarl Lagerfeld said, "I'm open to everything. When you start to criticize the period you're in, the time has come to an end. The most important thing in the industry fashion is sober, if you want to stick to it. "

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