Department Stores Cash in on Private Labels

Retailers including Liberty’s and Harrods are leveraging their brand value as they launch their own fashion labels.

Following its recent sale to Qatar Holding LLC for $2.3 billion, the iconic London department store, Harrods is planning to open an in-store shop selling Harrods-branded clothing and accessories by 2012. General merchandise manager Jason Broderick revealed that the range of men’s clothing and accessories will be positioned as an alternative to brands like Brioni Roman Style SpA, the Italian maker of $5,000 suits. Broderick believes that private-label fashion is “a growing part of our business with huge potential.”

The model seems to have worked for Saks whose re-launched men’s collection is set to become the New York retailer’s largest menswear brand, according to Thomas Ott, Saks senior vice president of menswear. The theory is that by leveraging the image of the stores themselves and slightly undercutting the main luxury brands, or eclipsing those who have lost their sense of identity, they can appeal to a broader base of more price sensitive, post-recession consumers. “The recession seemed to reset everyone’s expectations as to price point, bringing it back into reality,” said Liberty’s buying director Ed Burstell. But lower price points do not mean inferior product or branding. Product, packaging and promotion have all been stepped up such that “They don’t look like private labels anymore,” said Ciccoli, a former partner at consulting firm Bain & Co. “they’re more like real brands.”

Burberry Digitally Interactive A/W2010 Campaign

Christopher Bailey, speaks from the Burberry Autumn/Winter 2010 Ad Campaign set at Pinewood Studios in London.

Super Rich Get Even Richer

The world’s richest individuals distance themselves even further financially from the rest of the pack.

Despite the mood that has pervaded the lives and businesses of most people in the developed world in the past year, the world’s billionaires and millionaires have in fact got even richer. They now total 10 million individuals, who saw their overall wealth rocket 18.9% last year to $39 trillion — an almost ludicrously high figure, which flies in the face of the global recession.

While the relatively modest $1 million wealth bracket grew by 17%, the super rich (those with assets exceeding $30 million) did even better with their wealth increasing by 21.5%. This select financial elite had fortunes averaging $150 million each, which is particularly remarkable when you consider that the category begins at a ‘mere’ $30 million. For the average to be five times in excess of this, those at the top of the bracket must be very rich indeed.

This recent leap in the ultra rich’s collective wealth comes despite the fact that it was also the very rich who took the bigger hit in 2008, losing 245 of their fortunes. You need to be brave, it would seem, to play with the high-rollers.

Interview with Joseph Velosa, Co-Founder and CEO of Matthew Williamson

LS Editor in Chief, Imran Amed talks to the commercial and strategic brain behind Matthew Williamson — Joseph Velosa, a largely unsung and profoundly professional hero of the fashion world.

Digital Renaissance: the Magazines Making an Online Comeback

Many readers were left feeing deeply disappointed last year when Conde Nast pulled some of its best-loved titles from the shelves, including Gourmet, Cookie, Domino and some additional bridal titles. Now at least two of them are making a comeback as purely digital brands. So, what’s the strategy? And will it work?

GREECE, Weathering the Storm

According to Francesco C. Lemonis, Managing Director of F C Lemonis S.A…

I think everyone knows that times are tough in Greece at the moment. But what is perhaps most difficult to overcome is the uncertainty that emerges as a result of the global markets reluctance to believe the commitment and the effectiveness of the measures taken by the Greek government. Inevitably this uncertainty filters down to consumer sentiment.