The cult of beauty

One of the reasons I chose luxury as my Masters subject is because above all, luxury is in my opinion synonymous to the pinnacle of beauty. I am doing a more extended project on this topic for my portfolio, so I'm going to post a few of the more intriguing pictures I have come across and a few words on aesthetics and how it resonates in luxury.

IMAGE, LOOK and STYLE are still the most influential factors that shape the way the most sophisticated and discerning customers perceive and buy into luxury brands.

The fine line between consummate craft and consummate image in building luxury brands has been challenged by Dana Thomas in her recent book, "Deluxe: How Luxury Lost Its Luster." She contends that even venerable luxury brands with a tradition of excellence are losing their grip on the tradition of craft which used to be the cornerstone of every luxury brand. As the industry moves from family-run businesses to multibillion-dollar global corporations focused on growth and profits, will the tradition of handcrafted, bespoken goods become extinct?

What impact do aesthetics and creativity have on the industry? How are creativity and aesthetics as corporate values changing? How have the most successful brands balanced craft and image to achieve global prominence? And last, but certainly not least, what has become of taste - corporate and individual - in a world of “commodified” beauty?

Forever 21 Photoshoot

Yesterday I was one of the models in a photoshoot. My friend and colleague Ning Yuan put together a shoot for her portfolio, using Forever 21 clothes, 2 models (Youdi and myself) and 3 photographers: Edward, Simon and Royd.

Here are some of the backstage photos that Edward shot, the final edited photos will not be ready until next week, so I'll post them then.

MA Diary - Richemont

My favourite luxury conglomerate is Richemont. Why? Because it owns the most prestigious jewellery groups in the world and, as far as I can tell, there is nothing more luxurious than jewels and particularly diamonds.

The Group's luxury interests encompass several of the most prestigious names in the luxury industry including Cartier, Van Cleef & Arpels, Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC, Panerai and Montblanc.



Richemont was created in 1988 by the spin-off of the international assets owned by Rembrandt Group Limited of South Africa (now known as Remgro Limited). Established by Dr Anton Rupert in the 1940s, Rembrandt Group owned significant interests in the tobacco, financial services, wines and spirits, gold and diamond mining industries as well as the luxury goods investments that, along with the investment in Rothmans International, would form Richemont.

Richemont operates in five key areas: jewellery, watches, writing instruments, leather and accessories, and clothing.

The Group is managed with the objective of growing value for shareholders over the long-term, recognising that the most important assets of the Group - its Maisons - have almost all been in existence for over a century.

Each of the Maisons has its own distinct identity that stems from its heritage and culture and it is critical that each Maison has the correct strategies and resources to be able to enhance that identity. The independence of the Maisons within the Group is fundamental to the Group's strategy for future growth.

Management, designers and craftsmen across the Group strive to keep this heritage and the traditional values of its Maisons alive through a continuous process of reinvention and innovation.

Recognising its role as a member of the global community, Richemont strives to act as a responsible corporate citizen.

Group structure and significant shareholders

The businesses in the Group operate in five main business areas: (i) jewellery, (ii) watchmaking, (iii) writing instruments, (iv) leather and accessories and (v) other products. Each of the Maisons in the Group enjoys a high degree of autonomy, with its own management group under a chief executive officer. To complement those businesses, the Group has established central functions and a regional structure around the world to provide central controlling and support services in terms of distribution, finance, legal and administration services.

Compagnie Financière Rupert

Compagnie Financière Rupert, a partnership limited by shares established in Switzerland holds 52 200 000 Richemont 'B' registered shares representing 9.1 per cent of the equity of the Group and controlling 50 per cent of the voting rights at the level of Compagnie Financière Richemont SA. Mr Johann Rupert, the Executive Chairman of Richemont, is the sole General Managing Partner of Compagnie Financière Rupert. Mr Jürgen Schrempp, non-executive director of Compagnie Financière Richemont SA, together with Mr Ruggero Magnoni and Mr Jan Rupert, both nominated to the Board of Compagnie Financière Richemont SA, were appointed as partners of Compagnie Financière Rupert in June 2006.

Compagnie Financière Rupert does not hold any Richemont 'A' shares. Trusts and other entities in the shareholding structure above Compagnie Financière Rupert have indicated to the Company that they, together with parties closely related thereto, held a total of 2 811 664 'A' shares, or the equivalent thereof in the form of Depository Receipts, as at 31 March 2010.

Other significant shareholders

Public Investment Corporation Limited (‘PIC’), Pretoria, South Africa notified the Company on 22 February 2008 that accounts under its management held Richemont South African Depository Receipts equivalent to 32 633 436 ‘A’ shares in Compagnie Financière Richemont SA. At that date, PIC’s holding indirectly represented 3.13 per cent of the voting rights at the level of Compagnie Financière Richemont SA.

On 19 May 2009 Richemont Employee Benefits Limited, an indirectly held subsidiary, notified the Company that it had acquired shares and the right to acquire further shares equivalent to 31 705 935 ‘A’ shares or 3.04 per cent of the voting rights at the level of Compagnie Financière Richemont SA. The shares were acquired to hedge liabilities arising from the Group’s stock option plan.

The Company has received no other notifications of current shareholdings representing in excess of 3 per cent of the voting rights. Significant shareholdings are systematically reported to the SIX Swiss Exchange. This public information and can be accessed via the following link.

Cross shareholdings

Richemont does not hold an interest in any company which is itself a shareholder in the Group.

MA Diary - PPR

Continuing the series of most powerful luxury groups in the world, I will make a short presentation on PPR.

Established in 1963 by François Pinault in the timber and building material businesses, the PPR group positioned itself in the middle of the 1990s in the Retail sector, in which it soon became a major player.

The purchase of a controlling stake in Gucci Group in 1999 and the establishment of a multibrand Luxury Goods group marked a new stage in the development of the Group.

In 2007, the group seized a new growth opportunity with the purchase of a controlling stake in Puma, a world leader and reference in Sportlifestyle. PPR thereby continued to develop its activities in the most buoyant markets, through strong and highly reputed brands.

Today, PPR has entered a further phase of its expansion and intends to become a leading group of global brands, representing a universe of “personal goods” that encompasses apparel, footwear and accessories. These powerful brands are to be positioned both in the Luxury and Consumer Retail markets.

Thus, by the side of the Luxury branch – one of the most prestigious and top performing global leaders -, PPR Group is gradually reorienting its Retail branch to focus on sports lifestyle brands with a more international profile; brands conveying values that endow them with genuine legitimacy above and beyond their mere stylistic component, and all sharing a common concern for ultimate quality combined with an ongoing quest for innovation.

PPR is therefore spreading out into more international activities, better distributed throughout the world in order to prevent any dependence on any specific economic area. Backed by a more coherent structure, the Group will then have the ability to benefit from new synergies derived from complementary consumer universes and from pooled resources, to be leveraged in the service of all Group companies.

Last but not least, the business expansion takes place in full respect for the communities residing close to the companies’ theaters of operation. All PPR branches and companies share a similar concern to ensure optimum quality and reliability for all business processes, while fully complying with the commitments set forth in the PPR Code of business practices.

The Group’s commitment in Corporate and Social Responsibility is a prerequisite in terms of ethics and corporate responsibility in view of the common challenges facing the entire world. But it is also a major business challenge: indeed, sustainable development constitutes a genuine business opportunity, along with a source of innovation and cost cutting.

PPR ’s strong entrepreneurial culture has embraced the principle of decentralisation for a long time. The Group’s structure creates a balance between five different operating branches, Gucci Group, Puma, La Fnac, Conforama and Redcats, each of which enjoys extensive autonomy within a set framework, and a light-touch holding company responsible for the Group’s strategic direction.
This organisational model empowers all employees with a sense of responsibility and initiative, and optimises value creation for PPR. Everyone is fully engaged in the growth of their respective companies, and feels responsible and accountable for their performance.
On the ground, the branches have the executive power they need to run their businesses. Being close to their markets and customers, they are charged with developing strategy for the brands and companies and setting the direction for each business as well as taking all operational decisions. They are backed as needed by nimble, flexible and interconnected management structures. Such freedom of action for the operating teams helps keep employees committed and loyal to the Group. It also draws out the best talent.
The holding company defines PPR ’s high-level strategy and ensures the interests of the Group’s various stakeholders remain aligned. It manages performance in all Group entities through streamlined systems for orientation, regulation and control. It also manages certain areas that come under its exclusive remit for the Group as a whole, including mergers and acquisitions, treasury and finance, shareholder relations and Group corporate governance. In addition, it fulfils leadership, management, support and coordination roles in other areas within the Group.

PPR looks to pool resources and facilities wherever this will add value for the branches and improve performance. It applies cross-functional policies to optimise specific key processes for the Group as a whole, notably talent management.

Sharing of knowledge and expertise throughout the Group as well as dissemination of best practice is systematically encouraged. This helps drive creativity, innovation and excellence in processes, optimising the use of resources and to cut costs.
The PPR corporate culture relies in particular on values of consultation, freedom of speech and conviviality that federate and cement the Group, serving as a genuine catalyst of solidarity. This mindset is reflected among other in simple, fluid and authentic systems of exchange and communication.
This unique management style lies at the heart of the Group’s functioning and performance.

MA Diary - Seminar presentation

Today I handed in my finalized seminar presentation. I can't post it all here, since it's a powerpoint file, but here is the script and some images:

SEMINAR

SYNERGIES BETWEEN THE ART WORLD AND

THE LUXURY INDUSTRY

Key points:

· Promotional role of art and artists in this industry

· 3 case studies

· Fashion awards and art awards given by luxury companies

· Future developments

PROMOTIONAL ROLE OF ART AND ARTISTS IN THE INDUSTRY

“Luxury and art are both expressions of emotion and passion; therefore, the idea of integrating artwork in a store environment is a question of affinity”

Yves Carcelle, President and CEO of Louis Vuitton

During past years, there have been many new creative collaborations, exploring fresh avenues for synergies and business development between the art world and the luxury industry. Today, luxury brands regularly collaborate with artists to develop products and marketing materials, and even mobile museums.

There are a number of key reasons why luxury brands choose to make a cultural investement:

· Luxury brands heighten their aesthetic and perceived value. For market strategists in the luxury industry contemporary art has been very much a way to add value both in terms of prestige and profitability.

· Artists are feted by leading brands. While a relationship between art and fashion has always existed, over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding. And, this in turn has had an impact on the contemporary art world itself.

· Cultural investment is also seen as being helpful for brands that need to reposition, or that are entering a new market and need to establish their identity quickly. The benefits are diverse too. Cultural investment reflects the brand in the right light. It can help to attract a new sought-after customer profile or it can entertain and maintain the loyalty of existing customers by providing a positive brand experience

· It’s also widely seen as a great PR vehicle. The attraction is that the arts are forward-thinking and mould-breaking. It is beneficial to be associated with these qualities that commercially translate into the perception of being trend-setting

CASE STUDIES

1. Fondation Cartier pour l’Art Contemporain

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. It is a center for contemporary art that presents exhibits by established artists, offers young artists a chance to debut, and incorporates works into its collection.

Araki, Marc Newson, Philippe Starck, Murakami, and Matthew Barney are some of the artists that have worked with the Fondation Cartier.

“The Fondation has given Cartier a positive image in the eyes of people who are not interested in jewellery or who would never in a thousand years wear a Cartier bijou. But now they look at Cartier more positively, with respect, and that’s exactly what I wanted.”

Their aim has always been to give freedom of speech to the artists and not interfere in the process of creation. It is linked to an image strategy as well as a subject of pride for the Cartier employees.

2. Louis Vuitton’s Young Arts Project

It is a creative and cultural collaboration between the super brand and five leading art institutions in London: Hayward Gallery, Royal Academy of Arts, South London Gallery, Tate Britain and Whitechapel Gallery.

The iconic brand launches a three-year long support project for young artists. The three-year program, led by Louis Vuitton and SLG, which also incorporates the help of artists Chris Ofili and Charlie Dark, will give 200 underprivileged young Londoners real access to the inner workings of the art world. It aims to provide the participants with the skills and experience necessary to pursue a career in the arts - as curators and press officers, as well as artists.

1. Paul Smith in-store art exhibitions

Paul Smith stores, whether in London, Milan or Hong-Kong showcase not only his collections, but also the works of contemporary artists.

This celebration of contemporary British art and artists springs from Paul’s own personal affiliation and admiration.

By choosing to curate such unique, quirky and highly personal exhibitions, Paul Smith is reinforcing his iconic status as a quintessential British brand.

Among the more artistically-prone stores, there are: Paul Smith GLOBE, a store in the Heathrow Terminal 5 airport and SPACE Gallery, his first store in Japan, where the designer has hosted exhibitions from artists such as Valerie Phillips, Richard Woods, Thomas Giddings or Marcus James.

Fashion awards and art awards given by luxury companies

· MaxMara Art Prize for women, in collaboration with the Whitechapel

The prize winner gets an all-expenses paid six months residency in Italy. Maxmara gets an enviable foothold and high profile in the London art world.

• The Fondation d’ Entreprise Montblanc de la Culture

Its purpose is to support and honour modern day patrons of the arts who have given their time, energy and money in order to encourage cultural life to flourish.

Such consistent patronage gives Montblanc the stature of nobility across the international cultural landscape.

FUTURE DEVELOPMENTS

Though it may be true that the sheer number and variety of collaborations proposed in recent years have somewhat diminished their impact, and that some may have got out of hand with exceedingly commercial intentions, ties between the goods industry and the art world should not be abandoned. There is no doubting the excellent results of some of the collaborations. Contemporary art infused luxury with a great energy that resonated with consumers; and for artists, a new world of commercial opportunity was opened, separate from the pure art world.

And, in light of the current economy, perhaps the art world and luxury need each other now, more than ever.

MA Diary - Annual Luxury Conference

The International Herald Tribune’s annual luxury conference brought together in London two dozen of the industry’s most esteemed creative and corporate executives,who offered their interpretations of ‘heritage’. When the event’s host, Suzy Menkes, first introduced the two-day London event, the celebrated fashion editor acknowledged that the definition of this year’s theme was “as slippery as the precise meaning of luxury.”

And while there were of course several common threads which were woven through the many speeches and round-table discussions on stage – such as the notion of authenticity based on a brand’s past values – it was striking to see just how diverse each speaker’s approach to harnessing heritage could actually be. Here are just a few highlights in their own words:

Angela Ahrendts, CEO of Burberry

Reminiscing about her very first lunch meeting with Christopher Bailey five years ago as the pair set the course for the company’s future by leveraging the brand’s heritage icons (such as the prorsum knight, the check and the trench coat), she said: “We needed to connect the dots from the Prorsum catwalk collection to the millions of polo shirts we sell. The same customer should be wearing these, not multiple customers.”

Christopher Bailey, chief creative officer of Burberry

“We needed to elevate and innovate those (brand) icons,” he said, likening Burberry to a beautiful diamond that had been trodden into the ground, just waiting for someone to polish each facet of the gem to help it to sparkle again. “If we were going to elevate this “dusty diamond”, we needed a razor-sharp vision.”

Patrizio di Marco, CEO of Gucci

When an audience member suggested that the company’s ‘Artisan Corner’ retail event project (which sees artisans travel to Gucci shops around the world making luxury goods ‘live’ in front of customers) was misleading like Louis Vuitton’s banned advertisement of hand-stitched handbags, he defended the strategy:

“What we have in the stores is not fake, it’s real. It truly implies a lot of work – manual work….I had people who told me that to bring artisans to the shops would be a bit cheesy, [well, it] may be but it’s real. I had people, old, young and even kids who just stood in front of these work benches of artisans making a jacket or a bamboo bag,… They were really moved. I can’t bring the whole world to Florence so I’m trying to be as clear as possible with this and many other references. Believe me, if you come to Florence, we are real.”

Paul Smith, designer

With his trademark self-deprecating style and kooky delivery, Smith pointed out that heritage, like the word luxury, is now overused in branding circles by poking fun at a “Heritage Festival” in Texas which was founded only in 2007. But he also reminded the audience that those luxury brands which we now call heritage brands were all at one point or another upstarts with no heritage to fall back on.

“The new boys – Dolce & Gabbana, Ralph Lauren, Marc Jacobs and me – we have to work out what our heritage is and how people will develop it in the future. What I’ve tried to do is get the balance right between the more classical luxurious things, the more everyday things and things that the young guys would wear.”

Mary-Adair Macaire, CEO of Pringle

On heritage: “Just because you had it in the past doesn’t mean you still have it today. And even if you have it doesn’t mean that you can sell it.”

On the codes of heritage: “Identify them, use them, even abuse them but don’t lose them.”

Margherita Missoni, accessories designer for Missoni

“What I want to do is bring Missoni back to the time when…. it was rule-breaking,” she said, retelling the story of how her grandparents were “kicked out of Florence fashion week” in the late 1960s because they were considered too risqué by the establishment. “Only afterward it became a classic. There are other brands which maybe disturb you at first but they grow on you so what I would like to do is bring Missoni back to that. Eventually they’ll get used to the idea of our show not necessarily being pleasant at first sight.”

Unlike other designers working for big houses, she said, as the third generation of the family to get involved creatively, “I didn’t have to adapt my aesthetic to Missoni. I might have a different style but I have the same taste.”

Karl Lagerfeld, designer

On the legacy of Coco Chanel: “She was not only a designer but also a woman of her times. But she made mistakes at the end of her career. When the 60s started, she forgot that elegance had to change too. So she decided that miniskirts were horrible. Her standards were completely different. She said, ‘I asked men and not one man told me they love miniskirts’. Nobody dared to tell her. She said blue jeans were horrible too… Nobody wanted to be told by an old lady that miniskirts and jeans are no good. The result was that she lost her power.”

On designing for brands with different heritages: “When I took over [Chanel] everyone said don’t touch it; it’s dead. In a way it was a sleeping beauty…..but [my involvement later] became a blueprint for many others like Tom Ford for Gucci or Alber for Lanvin. I have more than one personality. People think I’m on such an ego trip. But I’m not. It’s a very strange gift. I can get out of people what they want to express but can’t."

On heritage: “I have no archives, I keep nothing. Other people can do that for me. I like now….I never think of what’s going on after me. I never think of what’s next. I only think of the moment."