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Showing posts with label lvmh. Show all posts
Showing posts with label lvmh. Show all posts

Saturday, 2 June 2012

Louis Vuitton - Marc Jacobs - Exhibition at Musée des Arts Décoratifs

It appears fashion exhibits become increasingly popular and attract more and more visitors. A trend that has received yet another boost by "Alexander McQueen - Savage Beauty", which was displayed at the MET in 2011, but surely reflects also the zeitgeist of people acknowledging fashion as a mean of expression and  significant component of pop culture.
Les Arts Décoratifs in Paris, which frequently hosts fashion related exhibitions, is currently showing "Louis Vuitton Marc Jacobs" from the 9th of March until the 16th of September 2012.


A comparison - or should I say confrontation - of two individuals, who at very different epochs could establish themselves as designers and innovators who contributed to the world of fashion and who helped build up the brand Louis Vuitton at each of their eras and both in their own right.
Could Louis Vuitton (1821 - 1892), founder of his namesake company, which has grown to become one of the globally best known fashion brands and integral part of the world's biggest fashion & luxury conglomerate LVMH have dreamt of the role his company and name would still play in today's fashion circus? What do those two men have in  common? Where lie their differences? Which role did they play for the brand Louis Vuitton? And how have those two men contributed to Louis Vuitton still being significant today?
These are just a few questions, this exhibit seeks to elaborate.


One man growing up amidst the exciting times of industrial revolution, witnessing increasing urbanization, technical inventions, profound changes in the social, economic and cultural conditions of the times.
A contemporary of Gustave Eiffel, famous architect who built the Tour Eiffel for the Exposition Universelle in 1889 and Charles Frederic Worth, the Englishman who historically has been credited as founder of Haute Couture and the first big Parisian fashion house in the 19th century.
Louis Vuitton, a craftsman with a vision and a great business instinct, who offered his product range - customized luggage for fashion- to the affluent bourgeoisie of Paris. His product innovations included compartmentalized suitcases, a folding bed that could be transported in a suitcase as well as his probably most important invention: a water- and airproof coat, which made his suitcases extremely durable and therefore highly requested by the wealthy social class who could afford to travel. As Louis Vuitton was very far sighted, he patented several of his inventions in order to be able to maintain his position as an innovator and market leader and to be able to avoid his competitors from copying his products.
After his death in 1892, his son George took over the family business, continued with its international expansion and amongst other things introduced the world renown, highly coveted (and most counterfeited)  LV- signet in 1896.

    

On the other side, Marc Jacobs who has been holding the creative reign at Louis Vuitton for 15 years. The American designer, who in 1984 graduated from Parson's School of Design in New York City, who worked several years for Perry Ellis, where he was dismissed after his controversially received (yet, up until today famed) collection "Grunge" in 1993. Marc Jacobs - together with his business partner Robert Duffy - returned to his namesake brand, which only took off after Bernard Arnault, chairman of LVMH agreed to finance Marc Jacob's eponymous brand and helped opening his first store on Mercer Street in NYC after he signed a contract to design for one of the big brands of his group.


In January 1997, Marc Jacobs took over the position of creative director at Louis Vuitton, a brand, which despite its great success with bags and leather goods up until then did not even have a ready-to-wear line. What followed was a victory parade of RTW collections and a number of design collaborations with the likes of Stephen Sprousse, Richard Prince and Takashi Murakami, which helped to define the image of Louis Vuitton and turn the brand from a classic French brand for bags and luggage into one the world's most widespread, well-known and profitable luxury fashion brands.



In this exhibition, two worlds collide - the best way to wrap it up in a few words is to say it encompasses snapshots in the history of a brand throughout two world-changing eras (industrialization on the one hand side and globalization on the other). Each of those men accompanied and led the brand Louis Vuitton forward as a creator and innovator, who embraced the challenges of his time.
 
Thankfully each of the sections dedicated to one of its subjects is located on a different floor. The stairs escalating from the Louis Vuitton section to the Marc Jacobs one hardly suffice for the mental switch one has to flip in order to readjust ones brain from the lifestyle of the 19th century to the challenges of the 21st century.
(The Marc Jacobs section is started with Marc's World, where the spectator gets a peek into the designer's colorful world of inspiration through numerous film clippings displayed on computer screens ranging from J.S. Bach to Spongebob, a nude Vivien Westwood, Liz Taylor and many more...).



An exhibition definitely worth visiting, however, the cohesion of the two sections dedicated to each of the designers are few and are mostly to be found in the way, both Vuitton and Jacobs understood and worked the zeitgeist and requirements of their customers for novelty and lifestyle throughout their challenging times.

xoxo
Glamazone


Sources: www.lesartsdecoratifs.fr, http://online.wsj.com/article/SB10001424053111903918104576500332879275742.html
Picture Sources: www.lesartsdecoratifs.fr, 

Tuesday, 8 February 2011

LVMH carving out its territory at Hermès

Could Hermès International one day possibly collaborate peacefully with its most rivalling competitor LVMH Louis Vuitton Moët Hennessy - personified by CEO Bernard Arnault? After fighting out the circumstances of the equity swaps - which resulted in LVMH owning 20.2% shares of the family-owned company publicly, one may doubt so. Despite Bernard Arnault's previous assertions that LVMH's intentions were "peaceful" and of "friendly nature", he recently added in a press conference, that he does not intend to remain a passive shareholder in the company.

Currently, French market regulation is still examining the exact circumstances of the equity swap, which did not only arouse numerous questions within the hereditary family of Hermès but also rose the question of stricter regulations within the French market.
As a consequence to the rather surprising intrusion, the founding family has recently created a holding company, which will enable the family to pool the approximately 70% of shares which remain in its possession and hinder further purchases by external stakeholders.

Despite delivering a more than solid performance in 2010, the LVMH share fell on 4th February after LVMH failed to exceed analysts' expectations. Profits from recurring operations rose by 29% percent to 4.32 billion euros in 2010. The revenue of Louis Vuitton brand drove the profit, with its raised prices and new product lines like the "Monogram Empreinte" collection. LVMH is surely relying on China's growing appetite for luxury within the next years.

The year ahead will surely give direction to the "battle" between Hermès and LVMH and their nip-and-tuck-race in consumer favour.

xoxo
Glamazone


Source: www.bloomberg.com, www.businessweek.com
Picture Source: www.be.com

Thursday, 9 December 2010

Fortress of Luxury - Hermès securing its assets

Following the riveting conflict of LVMH taking over 17.1% of Hermès' shares in October 2010, the founding family is bracing itself to preserve its precious heritage.

The extended family of Hermès International - which owns 73.4 of the company - reportedly pooled more than 50 percent of the shares in a holding company. This defence mechanism now depends on regulatory assent.
Within the holding company, a certain part of the future dividends will be put aside and locked up as a security to buy out family members who might want to sell their shares to LVMH.
Despite the fact that none of the family owns more than 5% of the shares - which equals about 0.8 billion euros at current market rates- the clan has profited quite nicely from the LVMH coup.

The market instantly reacted to those precautions: the price of Hermès shares fell by 3.15 percent and settled down at 148.90 euros that very day.
As a result of the common believe after the LVMH buy-in was that Bernard Arnault - CEO of luxury conglomerate LVMH and richest man in France - was about to seize control of Hermès, the artisan brand's shares had risen over 200€ in October 2010.



Bertrand Puech, direct descendant of Thierry Hermès and chair of the management family board at Hermès once more stressed that "LVMH will not be able to take control of the group" and announced that the creation of the holding company was another "demonstration to all those who do not want to believe us. We are a united family, driven by the same spirit of transmitting to our descendants the unique jewel which we have received from our parents."

Let's hope the new fortress wipes away the bitter aftertaste of insecurity and disaccord within the family which might have been stirred up by the peculiar events. And let's also hope that the family members of the Hermès clan did not pull the Trojan horse within its walls.

xoxo
Glamazone


Source: reuters.com, fashionmag.com, ftd.com

Wednesday, 3 November 2010

Hermès throws down the gauntlet to LVMH

What a sight for sore eyes in today's Le Figaro business section: "Hermès repousse LVMH" - Hermès fights back.

Ten days after the rather surprising and sudden announcement that LVMH had at last managed to buy its way in on his competitor, French artisanry maison Hermès, the gloves between the two competitors - or the shock waves that shook the industry- are off.

Despite a statement of Louis Vuitton Moët Hennessy that there are no current intentions of making an official offer or taking over the Hermès Group though to become a long-term investor, the article published today suggests that this coup was not as amicable and friendly as it was presented at first glance.

Heir Betrand Puech - direct descendant of the founder Thierry Hermès, who in 1837 established Hermès, and CEO Patrick Thomas insist in today's in Le Figaro that the purchase of 17.1% of Hermès shares was an unwanted, undesired and stealth action of Monsieur Bernard Arnault and his conglomerate. 72% of the remaining shares are dispersed within the family.
The duo also point out that the maison clearly was not in need of any capital support, mentoring, guidance or whatsoever from LVMH, as its financial performance has been showing a steady healthy growth since 1993. Hermès' performance was particularly strong during the last year, where many high-end fashion and luxury companies struggled significantly. In the interview, Patrick Thomas goes to such lenghts as to publicly doubt the correctness of the incident and calls the business transactions that have happened end of October 2010 more than just a little strange and even dubious - refering to LVMH business branches in Panama that were involved in the hostile buy into the company.

According to WWD, the French market regulator (AMF) is currently examining the circumstances purchase of the 17.1% shares

To the declaration that the buy-in was of amicable nature, Patrick Thomas and Bertrand Puech reacted indignantly with the response: "If you want to be amicable, Monsieur Arnault, you have to withdraw." - for the sake of completeness, one has to mention at this point that in a phone conversation following the buy-in, Monsieur Arnault had even stated that he does not even claim a seat on the board of Hermès International.

A conspicuous uproar of the last insurgent standing up against being locked in the golden cage of LVMH - after all, "'C'est n'est pas un combat financier, c'est un combat de cultures." Seems like front men Patrick Thomas and Betrand Puech will stop at nothing to impede Hermès International becoming the Koh-i-Noor in Monsieur Arnault's LVMH crown jewels.


xoxo
Glamazone



Source: lefigaro.com, WWD.com
Picture Source: magazine.wsj.com, lefigaro.fr