Tuesday, 25 September 2018 15:05

How To Wear Denim Jeans AW18

How to wear denim WranglerThe seeds of denim’s comeback are being sown. Thanks to Raf Simons’ Calvin Klein and his new uptight form of denim, we have a new way to see and wear it.

Left - Wrangler AW18

How to wear denim Calvin Klein jeans

Bin those skinny jeans and buy yourself a denim shirt with contrasting front pockets, a roll neck and a denim jacket. This is 1970s cowboy in mid-winter.

Right - Calvin Klein AW18

 

The new AW18 campaign from Wrangler perfectly illustrates this. Brokeback at the top of the mountain, you could say, this all-American, retro look is all about layering relaxed shapes. Denim or corduroy jackets over jeans, check shirts and lightweight roll necks give this cowboy a romantic and wild edge. Think more North Carolina than North Acton.
Just don’t look like it’s your first time at the rodeo!

How to wear denim Calvin Klein jeansLeft - Calvin Klein SS18

Below - Wrangler AW18

How to wear denim Wrangler

Get more inspiration in the video below. The video reminds me of the 1980s cult in Netflix's Wild Wild Country - here

 

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

Review Malin Goetz Brightening Enzyme Mask men's grooming expert

A gel-based mask that deeply cleanses and exfoliates dull, dry skin, improving overall tone and texture. This concentrated brightening treatment balances pomegranate and pumpkin enzymes with botanically derived AHAs, leaving skin softer, smoother. A quick, easy way to restore skin's glow without irritation; suitable for all skin types.

Left - Malin + Goetz Brightening Enzyme Mask - 60ml - £48

TheChicGeek says, “This looks very natural: a soft, jelly-like consistency, orange in colour, with little bits in it, it goes on easy like a light gel. It doesn’t smell particularly strong, a slight lemon scent and you leave for 5 minutes, then rinse off. All at night.

The website says ‘Use 1-3 times a week’ while the packaging says ‘Once Weekly’. 

Leaving on for only 5 minutes and using once a week makes you think it’s quite a powerful product which seems to go against its natural appearance. 'Brightening' often means lightening, so this could be the more serious side of the product, but it would be good if there was more explanation.

It is said to exfoliate, brighten and moisturise. My skin definitely felt clean and cleansed  - that’ll be the AHAs - when I got into bed after using this. They do recommended you apply SPF the day after.

I’d like to try this more to see if there were anymore noticeable differences other than that fully cleansed feeling.”

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

 

 

 

 

 

 

 

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.  

Wednesday, 19 September 2018 15:43

Hot List The Puzzle Bag

Loewe puzzle bag men's must have menswearAfter writing my latest Comment piece - Handbags at Brawn? about men, now, carrying styles of bags traditionally associated with women, it has cemented my desire for one of Loewe’s Puzzle bags. I’ve looked at this style for ages and it just gets better. This is a modern classic and I want one.

We're going into a new age of grown-up dressing and quality, and Loewe, the Spanish luxury goods house owned by LVMH, still make some of the best quality bags. If only I could pronounce it!

Left & Below - Loewe - Puzzle Grained-Leather Cross-Body Bag - £1795 from Matchesfashion.com

Loewe puzzle bag men's must have menswear

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