Even though Anna Wintour is staying, but the once deep pockets of the Condé Nast faced a $120 Million loss last year.
The brand behind Vogue, New Yorker and Vanity Fair are forced to take some austerity measures after losses of up to $120 Million last year. They have taken measures to cut spending and be more digitally savvy, but it is expected to adopt strategies to ensure that it does not disappear completely.
After Boston Consulting Group did a monthlong audit of their internal systems, Robert A. Sauerberg Jr., the chief executive of Condé Nast, plans to address senior staff members on August 8th.
The company having lost more than $120 million last year, plans to put three of its 14 magazines — Brides, Golf Digest and W — up for sale, three executives said. The marquee titles, including Vogue, Vanity Fair and The New Yorker are safe, for now.
The decades-long magazine boom that made the ostentatious possible, is a thing of the past. A shift in media-consumption has elevated Instagram, Snapchat and YouTube above the printed page. Before Time Inc. was sold to the Meredith Corporation, it experienced sharp declines in annual revenue. The ad buying firm Magna projects print magazine ad sales will fall by a double digit rate this year.
The $120 million loss in 2017 came about because of a sharp decline in ad revenue generated by the print magazines. Gains in the digital arena have helped offset the loss, but not enough to make the company profitable. Condé Nast reached its decision to entertain offers for Brides, Golf Digest and W partly on the recommendation of Boston Consulting Group.
This story appeared in the New York Times.
Luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE has reached a $16.2 billion deal to buy American jewellery giant Tiffany & Co.
The companies announced that they had entered an agreement for LVMH to acquire Tiffany for $135 a share.
“We strongly believe that LVMH is not only an ideal owner for Tiffany but also that this iconic brand is a perfect addition to our portfolio and perfect complement to our existing model,” LVMH Chief Financial Officer Jean-Jacques Guiony.
The all-cash acquisition is one of the largest ever for the French conglomerate known for its hard-charging deal making and surpasses its $13 billion deal for Christian Dior in 2017.
The storied American brand has resisted acquisition for years, but as one of the few independent global jewellery houses remaining in the market, analysts had long speculated that it would make an attractive, if expensive, target.
But Tiffany has had a difficult time lately. In the first half of 2019, worldwide net sales at Tiffany decreased 3 percent to $2.1 billion. The American jeweller is facing weak demand at home and abroad, and will likely need heavy investment to re-energise its brand and business.
The deal will bring LVMH’s substantial financial and market clout to help support Tiffany’s ongoing transformation efforts. At the same time, it boosts the French company’s presence in the US market.
The deal also allows LVMH to gain further ground on Swiss conglomerate Richemont, which has long dominated hard luxury with its ownership of Cartier and Van Cleef & Arpels. Jewellery was one of the best-performing luxury categories in 2018, according to Bain & Co, which predicts that the global $20 billion market will grow 7 percent this year.
Tiffany employs more than 5,000 artisans to cut diamonds and craft its jewellery, rather than buying from middlemen.
We all know that markups in luxury fashion can be ridiculously high. The journey from the factory to floor, gets items to be priced at higher than they cost.
Now E-commerce site Italic is betting that removing the branding and the mark-up will prove a hit with consumers. A big bet indeed!
The start-up’s members-only marketplace, which launched last Thursday, allows manufacturers that create products for luxury brands to sell directly to consumers without the LOGOs adding markups. Shoppers who pay a $120 annual membership fee can choose from a selection of unbranded luxury goods, from bags and wallets to prescription eyewear and leather jackets, produced by the same factories that count names like Prada, Givenchy, Celine and Burberry among their clients.
The company has raised $13 million in funding, from various top end investors. Over 100,000 people joined a waiting list to be notified when membership opens, with signups initially limited to the US, said company founder Jeremy Cai.
Upon launching, the platform will have nearly 60 styles live on the site, with a view to double this number by the end of the year. However, customers won’t find unbranded versions of the Gucci Dionysus bag or any of the latest Celine creations. All products sold on Italic will be unique and exclusive to the platform to avoid infringing on brands’ intellectual property / copyrighted designs.
The start-up joins a growing number of brands, including Everlane and Warby Parker, which provide a premium-feeling, minimally branded product at relatively affordable prices. Within the luxury sector, high-end retailers, including Mr Porter, Joseph and MatchesFashion, are expanding their private label collections, which tend to be priced below standard luxury fare.
Italic goes one step further, selling items that lack even the private label branding. The marketplace will instead focus on providing the infrastructure — from marketing, design and warehousing to customer support — to enable manufacturers to sell products directly. The company will take a commission on sales.
“We essentially do everything that brands do and more, but we do it for the manufacturers,” Cai said.
For example, Italic’s merchandising team will work with factories that have product and pattern libraries to tweak existing designs so they don’t mimic products already on the market. Italic also has two designers, alumni of Armani and Calvin Klein, to work with manufacturers that don’t have in-house creative teams.
“We are very careful about every single product that we sell being originally designed, you won’t find an exact product like it in the market,” Cai said. “We want breadth and coverage of a lot of different styles.”
Branding can be a powerful tool, especially in a sector like luxury, where purchases are emotional rather than practical. That’s especially true for “statement” products, like handbags.
“People buy branded products to be reassured of the quality and style of the item and also for their projected image: they somehow communicate to other people the style, sophistication and preferences of their owner,” said Mario Ortelli, managing partner of luxury advisors Ortelli & Co. “You want to feel and show that you are part of the brand story.”
But Cai doesn’t anticipate the manufacturers on Italic’s marketplace competing head to head with luxury brands.
“For a person who is going to buy a Gucci bag, we are never going to win them over with unbranded product,” he said. “That doesn’t mean in some avenue of their life, they wouldn’t be open to switching up their sheets or maybe a shirt, or a leather jacket, where they actually don’t like a logo on there.”
As well as geographical expansion and international shipping, the platform’s short term goals include expanding into product categories like activewear and beauty. The focus will remain on luxury, Cai said.
“The reason we want to start in luxury is because we can say to the customer: we can make premium product effectively and replace a lot of your aspirational shopping,” he said.
Macy's is launching a women's line of clothing aimed at Muslim shoppers.
The chain announced it has teamed up with a boutique called Verona Collection and will sell the collection of "modest" dresses, tops, cardigans and hijabs online. The collection will launch on Macy's website on Feb. 15.
The brand was developed by Lisa Vogl, a graduate of Macy's minority- and women-owned business development program, which aims to offer more fashion diversity.
Though Macy's is the first major U.S. department store to sell hijabs, it joins brands like Nike, for example, who aim products at Muslims. Nike launched a high-performance hijab last year made for athletes.