Thursday, 6 August 2009

It's in the bag for "Big Gucci"

Some fashion icons have been described as having that "to kill for" quality -- but others, it seems to Fashionista, have a different character: "to sue for". Not for the first time, members of the illustrious Gucci clan have taken a trip to court to resolve knotty issues of the "who is Gucci?" variety.

Yesterday US District Judge Richard Berman ruled in favour of Manhattan-based Gucci America in its battle with Jenny Gucci -- author of Gucci Wars -- and her daughter Gemma, whom it sued for trade mark infringement in 2007. According to the judge, Jenny and Gemma had "willfully infringed and diluted the Gucci trade marks" by entering into a licensing agreement that resulted in a "confusingly similar" line of products being marketed under their names -- and incidentally mimicking Gucci's classic, green-red-green colour scheme.

Jenny is a sort of Dowager Gucci, having been married to Paolo Gucci (the grandson of the founder of the family's fashion empire) between 1977 to 1990, when they separated. Paolo died in 1995, following years of dispute that eventually drove all the 'real' Guccis out of the company that still bears their name (the business today is owned by French retail group PPR SA).

According to Jenny, Gucci America was "Big Gucci" and she was "Little Gucci". Be that as it may, the judge felt that the two ladies "did not take precautions to avoid infringing plaintiff's trademarks", ordering the pair to stop making any commercial use of their names on a long list of products including "coffee, bedding, housewares, cosmetics, hosiery, handbags, wine and gelato".

Wednesday, 5 August 2009

Fake shoes or Jimmy Choo's?



It seems there is no escape from the problem of counterfeit goods, whether you are a top end luxury brand or a high street favourite. For consumers happy to buy counterfeits, the sales channels are many: from the low-end car boot sales and market stalls, to high street shops, to slick websites claiming to offer the real thing.

News has reached Fashionista of the dramatic increase in counterfeit shoes flooding the online market in the last 6 months. Websites such as ChristianLouboutinLondon.com are claiming to offer genuine Christian Louboutins at a fraction of the cost (albeit still £100+) of the genuine goods.

Somewhat more localised, Ted Baker has helped uncover and clamp down on a counterfeit operation in Leicester. Sukhvinder Singh Gill has just been jailed for nearly 3 years admitting several counts of trade mark infringement. Trading as S.G.H.T Ltd, Mr Gill set up an operation which manufactured cheap knock-offs of brands including Ted Baker, Armani, Boss and Lacoste, all due to be sold on to wholesalers as the genuine article. Ted Baker started investigating the company and then involved Leicester City Council's Trading Standards Officers, who raided Mr Gill's factory and seized over 3,000 counterfeit goods. and over 6,000 counterfeit tags and labels, amounting to approximately £60,000 worth of counterfeit goods.

Fashionista's advice to brand owners: Ted Baker has got this right. Clamp down on counterfeiters. Counterfeiting is a big problem which can seriously damage a brand owner's most important asset: its brand and reputation. We've seen it happen to luxury brands where floods of readily available counterfeits turn a "must have" brand into one that the discerning shopper turns her back on. Although brands can claw their way back to the top with clever marketing, savvy rebranding or the right PR spin, it is not always easy, successful or cheap to do. Whilst pursuing counterfeiters requires an investment of time and cash, show counterfeiters that you will pursue them and there is every chance that counterfeiters will look to rip off easier targets, leaving your brand alone.

Fashionista is hopeful that brand enforcement measures, coupled with the imposition of strict penalties, will lead to a marked reduction in counterfeit goods. Our European neighbours in France and Italy have started imposing fines on consumers of counterfeit goods. Fashionista is watching this space to see whether we are going to impose similar fines on consumers here in the UK.

The real deal or a fake: which price are you prepared to pay? The one you see on a (genuine) price tag, or the one that may come with a custodial sentence or a hefty fine from manufacturing and selling counterfeit goods and, maybe one day, just from purchasing them.

Thursday, 30 July 2009

Daily Candy gets even sweeter

So Fashionista headed to the very glamourous location of the Swarovski Crystallized Lounge, opposite one of Fashionista's meccas, Liberty. On the menu was an interview with the equally glamourous Daily Candy London editor, Malika Dalamal who was questioned by FBC co-founder & co-chairman, Alison Whelan (also very glamourous!) about the rise of Daily Candy ("DC") and its plans for the future.
Interestingly, DC began on the back of founder Dany Levy's frustrations with the long lead times required to get content into magazines and so started by sending lifestyle focused emails to friends and family in New York back in 2000. By the end of that first week, she had a following of around 7,000 people!

Reportedly sold to Bob Pittman's Pilot Group Ventures for around $3 million in 2003, and then to Comcast for $125 million in August 2008 - its rise in popularity has been truly astounding. The London edition now has around 100,000 subscribers and, according to Malika, the typical subscriber is the 29 year old (mostly female) "who loves her city and wants to engage in it." She also wants to know the latest places to eat or the hippest brands to wear and DC seeks to provide some of these answers.

In terms of getting a mention in DC, it's not an easy job (only 5-10% of those who make contact ever get featured) but provided DC have an exclusive angle and the product/story is clever, smart and relevant whilst not being too expensive - you may have a shot of getting a mention. It seems that getting a mention on DC should be on every fashionistas "to do" list as products that are featured in DC seem to have a knack of selling out. Malika quotes a story about Rebecca Minkoff's decision to stop designing clothing and concentrate solely on bags after DC did a feature on her bags and they ended up selling out - everywhere! That's quite a marketing tool for the up and coming designer.

Fashionista already looks forward to her daily dose of DC, so with DC looking to change its current format of posting old "candies" in favour of a destination "City Guide" website offering the savvy gal tips on whats hot in the city of London and providing more temptation in the form of events, discounts and sample sales to keep the DC gal hooked - it looks like Fashionista won't be kicking her love of sweets anytime soon! Watch the space too for a kids site, dedicated wedding site and more video content: http://www.dailycandy.com/london/

Everyday should be a DC day!

Wednesday, 29 July 2009

Coco Before Chanel: (Not-So)-Subliminal Advertising



During a recent trip to the cinema, Fashionista was mesmerised by the trailer for "Coco Before Chanel", released on Friday. A true "rags to riches" story, full of ambition, drive and vision, it tells the tale of Coco Chanel in her early days, showing the beginnings of what would later become one of the world's most iconic brands.

What phenomenal advertising for Chanel, which has supported this film. Not only does Audrey Tautou (of "Amelie" and "The Da Vinci Code" fame) play Coco Chanel, she also stars in Chanel's No.5 advertising campaign. The same is true for Anna Mouglalis, who plays the same role in another (not yet released) "Chanel" film - "Coco Chanel & Igor Stravinsky", and which is also backed by the fashion house. It seems as though Chanel is the fashion brand du-jour, attracting unprecedented attention from the film industry for arguably the first time in the brand's long history.

The benefit of such projects? Drawing in new customers and creating or reinforcing loyal supporters. Everyone loves a good story. Sob stories win our hearts. Stories of triumph make us feel that we too can reach the stars. The empathy and understanding that comes from reading a biography or watching a biopic can turn a brand from "just another luxury store" to something far more familiar, appreciated; something that the consumer will be happy to buy into and share. The films will effectively provide hours of advertisement for the brand. At a time when the fashion glossies are weighing less and less with each monthly installment as a result of dwindling advertising subscriptions, alternative advertising means must surely be welcome, if not actively sought out.

The benefits to the brand of backing such projects are clear, and rest largely on setting the right tone; showcasing the best of the brand; and ensuring a faithful portrayal of the brand's heritage. The cross-over use of Tautou and Mouglalis for both films and for Chanel advertising is clever. Recognition of both actresses in the adverts will remind audiences of their experience of the brand through the films.


So here is Fashionista's prediction. Coco Before Chanel will be a huge hit. Sales at Chanel - even if only in the immediate future - will rise as a result. Cinema goers who may never have stepped inside a Chanel boutique may feel drawn to owning their little piece of Chanel - even if it is only an iconic red lipstick.



And there's more! Tomorrow will witness the "Chanel Flash Mob" at St Pancras International Station in London - the first "flash mob" of its kind, where those with a love for the brand are encouraged to channel their inner Chanel for a meeting with fellow dedicated followers of fashion. Fashionista will be curious to see what effect the flash mob will have and whether this will serve to reinforce brand affinity and perhaps even create new fans?

Monday, 27 July 2009

JJB: the lowdown on the loan

Fashionista has been following the recent press coverage relating to Sir David Jones, current executive chairman of JJB Sports ("JJB"), and Mike Ashley, Sports Direct founder, with interest when it was revealed that Jones had taken a £1.5 million interest free personal loan from Ashley. The revelation of the existence and details of the loan has raised eyebrows across the industry as it raises questions of conflicts of interest because JJB and Sports Direct are competitors as well as Sports Direct also being a supplier of JJB. The controversy escalated further after Sir David and Ashley publicly clashed over whether or not the loan was made prior or subsequent to Sir David's appointment to the board of JJB, which is inherently important when considering conflicts of interest.

Further allegations regarding Chris Ronnie, the close personal friend of Ashley and suspended chief executive of JJB also emerged. Ronnie was dismissed from his post in March 2009 and The Times reported that Jones had meetings with Ronnie and Ashley to discuss Ronnie's severance settlement on two separate occasions after the loan had become overdue which could have created a conflict of interest in those negotiations.

The current law relating to directors duties is contained in the Companies Act 2006. A director of a company must "avoid a situation in which he has, or can have a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the company." This duty is not infringed if the situation "cannot be reasonably regarded as likely to give rise to a conflict of interest" or if the matter has been authorised by the directors.

Additionally directors must declare their interests in proposed or existing transactions and arrangements with the company prior to that transaction or arrangement being entered into or "as soon as reasonably practicable". These duties apply equally to executive directors and non-executive directors.

Directors owe these duties to the company and as such only the company can enforce them, although in certain circumstances the shareholders can bring an action for breach of duty. In addition breach of certain of these duties is a criminal offence. Remedies for breaches of duty can include injunctions and damages and such breaches have also been held to be grounds for the termination of service contracts and for disqualification under the Company Directors Disqualification Act 1986.

Sir David has claimed that he told all JJB board directors about the loan and that as a non-executive director he "could not and would not influence decisions so the commercial transactions that went on between JJB and Sports Direct were not anything to do with [his] involvement". JJB's lawyers have asserted that Sir David "was in no way compromised by his dealings with Mr Ashley and Mr Ronnie because of the existence of the business loan from Mr Ashley".
Whatever the truth, Sir David got a vote of confidence from shareholders' at JJB's AGM on Friday when 98% voted in favour of his re-election to the board. In the meantime, Fashionista is enjoying following the on-going saga.

Tuesday, 21 July 2009

Sunshine gives retail a boost, but will it last?

Everyone feels better when the sun shines and the good weather during June certainly seems to have brought the shoppers out onto the High Street. According to BRC/KPMG's London Retail Sales Monitor, like for like retail sales in London rose in June by 4.7%, with increased footfall in London over the same period last year. No doubt, many of these shoppers were tourists benefitting from the weak pound.

However, most pundits (just like the weathermen) aren't hopeful that the upturn will last. As the July weather turns to rain so does the prospects of a full recovery for the fashion retail sector. A survey reported in Drapers and Retail Week yesterday reported that most retailers were not anticipating a recovery until 2011.

Ever the optimist, Fashionista has her fingers crossed for a brighter outlook for the autumn even if that only applies to the weather...

Monday, 20 July 2009

Turning real women into goddesses for 15 years

It's July and Fashionista is in holiday mood, enjoying the long days, warm summer evenings, al fresco dining, and the height of "wedding season". What better time to wear a floaty flattering summer dress, and who better to design such a dress than Maria Grachvogel, who this year celebrates the 15th anniversary of her brand.


Adored by fashionistas everywhere (of both the "celebrity" and the "fabulous in her own right" variety), Maria Grachvogel's designs - at once classic but original - are sure to stand the test of time. The brand was established in 1994, and since its first showing at London Fashion Week in 1995, has gone from strength to strength.


To celebrate the 15th anniversary, Maria Grachvogel is launching a limited edition collection called 15 Pieces in November, signed and sold with a certificate of validation, based on Maria's favourite pieces from the last 15 years. Readers will know that Fashionista has gone green and applauds fashion houses and designers who care for the environment and who give something back. Fashionista was delighted to hear that Maria Grachvogel falls firmly in this camp, and that a proportion of the sale profits from each 15th Anniversary Collection piece will be donated to ActionAid to support women in Kenya - a project Maria has dedicated much time and energy to support. Maria has separately designed a t-shirt for PoverTee Day to further support ActionAid, adapting a print from the new season's collection: so not only is it spot-on-trend, but it is for a good cause - what better reason to shop? Fashionista also has inside word that 15 Pieces will be modelled by high profile celebrities, photographed by high profile photographers...but that's all she can say for now!


For the Fashionista-at-Law Birthday Q&A, Fashionista was lucky enough to speak with Catherine Thomas, Commercial Director at Maria Grachvogel, who explained:


(1) What is the MARIA GRACHVOGEL brand?


Maria Grachvogel is synonymous with creative luxury. Her hand printed fabrics and elegant tailoring, timeless daywear and couture collection flatter the female form using precision cutting and beautiful textures. Maria designs for real women, to make every woman feel like a goddess. From the cut of the fabric, to the way staff are trained to treat customers in store: the Maria Grachvogel brand is all about the goddess experience. The brand ethos: "turning real women into goddesses".


(2) Who is the MARIA GRACHVOGEL customer and how has she changed over the years?


She is every woman: young; old; local; international; celebrity; busy juggling families, businesses and hectic social lives. She is the lady looking for the perfect pair of trousers, dubbed the "Magic Pants", or a unique print or a personalised service which many luxury brands simply do not offer. What they all share is an appreciation of elegant timeless pieces that make a real difference to their wardrobe, and how they feel about themselves. How many stores can you go into and say "I would like that dress in a different colour please", or with sleeves, or a different length, and have it customised for you? Provided that Maria agrees and is happy to put her name to the customised design, she is happy to work with her customers to create their ideal outfit - approximately 50% of our business is for special orders.


(3) What inspires MARIA GRACHVOGEL - the designer and the brand?


To a large extent, her experiences. Maria uniquely hand paints a limited number of prints which she then translates onto garments - each size requiring a new print to ensure that it fits the garment perfectly. Maria created the beautiful Meteor print (shown above on the Meteor dress) after a holiday in Arizona, during which they spent a night in an observatory, looking up at the stars through a telescope and photographing what she saw. Maria then interpreted one of her photographs into a digital screen painting, and the Meteor print was born. It is experiences and influences such as this which make Maria's brand and designs so personal, distinctive and unique.


(4) What does the future hold for the brand?


We are very excited to be showing at New York Fashion Week later this year. This is a big development - and a natural progression - for the brand, and goes hand in hand with our launch in the US. We already have stores in Greece, Saudi Arabia, Italy and the UK, and are furthering our international presence by expanding into the Middle East due to demand from clients who want the goddess experience on their doorstop and not just in London.



New categories will include handbags and shoes, fragrances and gifts, lingerie and eyewear. We are also re-launching bridal wear, and the future is likely to see the creation of an online store - although this doesn't compare to the experience of coming in store and playing dress up with the clothes. The clothes are such beautiful creations, and the cut and feel is so wonderful. You can't recreate the enjoyment of trying on clothes and living the goddess experience without entering the store.

Fashionista wishes a very warm 15th birthday to the Maria Grachvogel brand - which is only 1 year older than Maria was when she took her first collection to London Fashion Week to show to journalists and designers. Bought in 2000, this particular Fashionista still has her stunning Maria Grachvogel taupe bias-cut dress, which is as current today as it was then and does exactly what it was intended to do. For the hours Fashionista is wearing her Maria Grachvogel dress, she certainly feels less "real woman" and much more of a "goddess"...