Ding Ding Ding! Hermes VS. LVMH

If you've been reading up on your WWD lately you are following some serious drama in the industry between the Hermes family and LVMH. And if you have not, let me break it down for you because this is some JUICY soap-like drama going on!

It's time for a SHOWDOWN! 

The Scene: a sunny October day, light wind, silk brocade jacket season, Hermes is holding a private garden party for the family and a few close friends.
A few miles away, LVMH was....well it's not sure how they did this but the French government is working on finding out!

The Situation: In October Hermes was SHOCKED by LVMH's announcement of buying a 17% stake in Hermes, which had no intention of letting their stock to be bought up by any major holding company. Since then LVMH has stated no intent of a hostile takeover "in the next 6 months."

Thierry Hermès, I don't think he ever saw this one coming...

The Hermes family in response stated,

"The family has clearly and unanimously said: If you want to be friendly, Mister Arnault [LVMH's CEO], you need to withdraw."

The family has also taken out full-page ads in newspapers all across France asking for support from their customers and affiliate companies for the perseverance of their "cultural heritage."

The next move was made by the Hermes family, funneling a majority of their 71% hold on Hermes into a non-listed holding company, to avoid LVMH to get their hands on it. HOWEVER, French laws state when a company pools over 1/3 of their shares they are obligated to hold a public offering. That would in turn ruin their plan to AVOID any kind of offering.

Hermes has asked to be exempted to this law, as French investigation of LVMH's purchase continues. AMF (the French governing council on this law) is expected to reach a decision in the coming weeks on the exemption request.

FREE BIRKINS FOR EVERYONE IN THE FRENCH GOVERNMENT WHO HELPS HERMES! no?

For the most part LVMH has remained silence throughout the verbal attacks. Yesterday though they finally reacted to a request by a French investigator for more information about LVMH's purchase of Hermes stock. LVMH vice-chairman, Pierre Gode, reacted with this open letter, which is clearly accusing the government of taking Hermes' side.

"You recently informed me of the mission you have been entrusted with to launch a campaign against LVMH and its executives...You will understand that we are under no obligation to respond to your unfounded queries, the purpose of which is only too obvious."

It will be interesting to see what happens in the future with this case and the laws applying to the fashion industry in France, updates to come!!

Anything specific you want to know? Comment below or e-mail me!

Hermes to LVMH: WITHDRAW
Hermès Asks to Be Exempted From Trade Regulations

The Full Report: Barneys New York = DRAMA!

The soap opera drama at Barneys is probably some of the most exciting in the fashion industry today! Why is it important? What exactly is going on? Let me break it down for you!

They NEED a reality TV show....

• September 1st, 2010: Mark Lee, former CEO of Gucci Group, officially starts as CEO of Barneys New York, who has gone almost 2 years without a president. 
• The first major shake up happens in November, with the firing of Julie Gilhart, Senior Vice President and Women's Fashion Director,  and Judy Collinson, Executive Vice President overseeing all of womenswear and Barneys.com.

Judy and Julie who are veterans at Barneys...now that is major news for the industry! Mark Lee, who is to focus on getting the business back to profitability, and entering the international market, is making some serious moves.

Judy Collionson leave's an impeccable career at Barneys. Known for her strong relationships with some of the world's most influential designers and for her incredible taste level, Judy brought a lot of talent to the forefront of retailing. She is credited with DISCOVERING Alexander Wang. How you can let someone like that go, I just don't know.

Julie Gilhart leaves being known as the voice of Barneys, personally she has been on my list of people to meet for years. The Julie-Judy combination seemed unstoppable, Julie often being out in the media promoting Barneys the way Judy would be too shy to do.

He's lucky he's gorg. Because Julie is my girl!

• His former colleague at Gucci, Daniella Vitale, succeeds Judy Collinson as Executive Vice President at the end of November.

The question now is: who is to succeed Julie Gilhart as Senior VP and Women's Fashion Director?

• The best rumors have been put to rest, Sarah Rutson will NOT be leaving Lane Crawford for the job, and neither will Virginia Smith, who was rumored to be considering leaving Vogue for the position. So for now the hunt goes on!
• HOWEVER! In the latest of scandals, Lee has appointed another former Gucci colleague, Charlotte Blechman, as Barneys’ senior vice president of Communications and Marketing. This leads to the speculation that Simon Doonan, the store’s creative director, on advertising and visual presentations, may be "let go" in May when his contract expires.

Julie Gilhart (left) at a Barneys event with Virgina Smith (right)

It is incredible to see the relationships of these people move them from one company to another, from one position to another. With experience this proves you never stop learning, and the industry is ALWAYS interesting. Keep your contacts alive and well and one day they could be reaching out to you, or hopefully you would want to hire them.

Eyes will have to be peeled for the latest Barneys headlines as Mark's reign continues to unfold. As of now his management style could be questioned and considered very ruthless, however, is that what Barneys needs after going without a head for so long? Only time and the quarterly results will be able to tell.

Mark Lee Named Barneys CEO - WWD

Barneys Said Eyeing Fashion Director - WWD

Barneys Taps Daniella Vitale - WWD

The Hunt Is Still On For Barneys - WWD

Need To Know: Black Friday Results!

Did we read WWD this morning?! Well if not then here is a quick update to inform yourself on this need to know information for our industry!

P.S. you still have an hour of Cyber Monday to get great deals online!

You KNOW she got a good deal with that smile!

Thanksgiving weekend 2010 saw the return of shopping! Consumers this year spent an estimated $45 billion in-store and online over the 3 day period! There was also an increase in the number of people shopping, last year there was an estimated 195 million people out shopping, compared to this years estimated 212 million people, with an increase in male shoppers as well!

The really great news is that the average amount consumers are spending is also rising, up to $365.34 versus last year's $343.31! With 40% of the holiday shopping occurring between December 15th and December 25th there is still a lot of money to be spent.

The surprising news is that not only did the number of people who bought items increase, but so did the percentage of people buying for themselves, up to 33% from last years 26%.

It seems retailers did a great job promoting their events and consumers focused on buying certain classifications such as electronics, and finally a return to apparel including cold weather clothing and luxury items.

Overall numbers were very strong and seems to be a good sign for this year's holiday season. However, let's keep an eye out for Cyber Monday results tomorrow and see how much business e-commerce actually makes.

HAPPY SHOPPING!

No trampling seen...YET!

Strong Black Friday Fuels Upbeat Outlook - WWD.com

Need to Know: Boutiques.com

The NY Times had a fantastic article on Google's new launch into apparel e-commerce, using their website Boutiques.com, after I logged onto the website I realized just how exciting Google's entrance into apparel actually is!

Shop my favorite blogger? Yes please! 

Boutiques.com is like no other shopping experience I have had, the new technology platform Google has created allows their website to adapt to your shopping habits, including taste in shapes, colors, styles, and even brands.

The website allows you to see merchandise from boutiques all over the world by searching, or you can even shop the "boutique" of your favorite celebrity, a few starlets including Nicole Richie, and bloggers such as Bryan Boy have already created their pages of preferences in looks. Boutiques.com also allows you to create your own "boutique" of items and have people around the world follow you and shop within your boutique.

Finally a website where when you search "navy striped shirt," you will get navy striped shirts! Leaving out all the extra that could come with is such as shorts, shoes, and accessories.

Boutiques.com, welcome to your new best friend!

Have good taste? Let the world shop your boutique!

Google Fashion Shopping Site Makes Debut-NY Times