Second City Style Fashion Blog - Style, Luxury, Beauty & Shopping

New Plans for Gucci

The Gucci heir is setting his sights on a new endeavor: the world. Chief executive of PPR SA François-Henri Pinault revealed to Wall Street Journal about his plans to sell off the company's retail divisions and re-focus on its global consumer and luxury brands. PPR is the French luxury house that owns such recognizable names such as Gucci, Yves Saint Laurent and Puma.

"We have a major weakness—retail," Pinault said."It is a business that cannot develop quickly abroad," explaining that it takes time for consumer to grow accustom to an overseas brand.

PPR could reap about six billion from the sale of its retail businesses, according to analysts. But Pinault wants to cash that money in for creating a new mass-market division mirroring PPR's Luxury goods unit.

Don't be surprised if you see this strategy being played out on the American frontier. Wal-Mart Inc., Gap Inc., and others are looking towards reluctant and/or unnecessary spending customers who are hesitant to spend, due to the current economic state. Though many mainstream retailers have slashed prices, discounters like Ikea Group and Gap's Old Navy stores, as well as e-commerce purveyors, have far outperformed rival chains.

-Taneisha Jordan

Source: WSJ
Photo: WWD

Lindsay Lohan—The Poison Ingredient—Is Wanted Out!

One would think that mixing in a celebrity, would in most cases, immediately revamp any clothing line that was in the midst of a decline; however, this couldn’t be further from the truth in Lindsay Lohan’s case. Lohan was hired by CEO Mounir Moufarrige as an artistic designer at Parisian fashion label, Emanuel Ungaro, which quickly morphed into such a controversial issue that lead designer Esteban Cortazar quit early this summer to keep away from Lohan.

As we all can remember, October served as one of the many embarrassing month of Lohan’s. When in Paris critics tore her contribution apart classifying it as a laughingstock.

 

 

The label’s chairman, Asim Abdullah, wants Lohan out immediately, especially because department stores across the nation have already told him that they will not purchase the line if her name is attached. The conditions of Lohan’s contract have yet been revealed; however, it is said to be seven figures. Without anything in his power, Ungaro himself—the man behind the label’s name—said, “[the label] is in the process of losing its soul.”

Source: NY Post

Photo Source: Wire Image

-Heather Youkhana

Aeffe Joins Cacharel

The French fashion house Cacharel has signed a licensing deal with Italy's Aeffe Group for the manufacturing and distribution of its women's ready-to-wear collection starting next year.

Until now, Cacharel had been directly and solely involved in both the distribution and manufacturing of all their women's lines, which was recently re-launched in October with a spring collection designed by Cedric Charlier.The brand had been operating from just one directly controlled store, in Avignon, in the south of France.

“This agreement will allow us to return to worldwide distribution, which we had lost, especially in the U.S,” Cacharel president Jean Bousquet told WWD.

With this new deal, Cacharel will have more time to focus on the creative side of the business, as well as licensing activities, while leaving Aeffe to make collections and widen the distribution. Currently, Aeffe manufactures and distributes several brands, including Jean Paul Gaultier, Moschino, and Alberta Ferretti.

The partnership will begin with the fall collection, which will be presented at the four major fashion (Milan, New York, Tokyo, and Paris) weeks in January.

In addition to women's wear, Cacharel also owns a children's wear and several licenses for eyewear, jewelry, home furnishings and perfumes.

—Taneisha Jordan

Photo: WWD

Liz Claiborne's CEO Celebrates Three Year Mark With (Hopefully!) Plans for Change

 
Bill Mccomb

Today marks the three year anniversary for CEO Bill McComb at Liz Claiborne, but does the headline-heavy exec have much to celebrate? McComb took over the struggling Liz Claiborne label in 2006 with high hopes and high expectations from industry critics. He was pegged as an innovator and solid business presence, having built a reputation as a head executive at Johnson & Johnson. But McComb's first controversial move came in 2007 when he shut down more than a dozen department store brands, wiping out more than $800 million of the company's total revenue. In what seemed a wise business plan, McComb then hired on well known designers Isaac Mizrahi and Narciso Rodriguez to design for the label. But the partnership went sour when the products didn't sell as promised, leaving the designers wondering if the company was in capable hands. Mizrahi had left a $6 million contract with Target to join Liz Claiborne.

Now that McComb's three year anniversary with company is here, critics are starting to wonder if he's done more harm than good. Liz reported yesterday a widened quarterly loss on a 24 percent revenue drop, shares having fallen 3.3 percent to $5.30 -- 87 percent below their price when McComb became CEO.But McComb swears the company's pitfalls are not his fault, and that he's been working to increase the company's business since he began. "I inherited a terrible balance sheet and a huge portfolio of sub-scale businesses," McComb told The New York Post. "We shed businesses that were losing money." But instead of properly marketing the businesses that were left—including Juicy Couture, Lucky Brand jeans and Kate Spade—McComb chose to throw funds onto overblown ventures like hiring the high end designers Mizrahi and Rodriguez, and starting 12 distribution centers— a superfluous amount considering the company's rival, Jone Apparel, only has 3. "I don't believe Liz had the infrastructure to handle these acquisitions," said Gilbert Harrison of Financo, a New York-based investment bank.

So now as the company looks forward, industry officials are hoping that McComb is able to lick his wounds and fess up to the fact that his ventures may have been cause of the dramatic revenue drop, and to start making moves to rectify the situation. The CEO has already admitted that his plan to hire Rodriguez, "could have been better thought out." As with Mizrahi, "The deal with Isaac did not work out like we hoped," McComb said. "Still, I'm thrilled that we did it." He added that he was optimistic about the upcoming holiday season and the company's plans for 2010. "The story isn't over," he claimed, and for his sake, we hope not.

Article Source: The New York Post
Photo Source: daylife.com
-Alia Rajput

Amidst Tough Times, Conde Nast Hires D.C.-Based Crisis Prevention Expert

The Conde Nast building in New York City

So it's come to this. Publishing house Conde Nast's CEO Charles Townsend and Chairman S.I. Newhouse, Jr. have decided  to hire on Washington, DC-based crisis manager and media coach Michael Sheehan to help with the company's PR.With clients including Bill Clinton and a pre-President Barack Obama, and experiences including the management of AIG during its near extinction and JP Morgan during it's Chase acquisition, Sheehan will hopefully provide the management cavalry that Conde Nast now desperately needs. Gina Sanders, publisher for Conde Nast's Lucky magazine, suggested Sheehan to Townsend and Newhouse after using him in her launch of Teen Vogue. Sanders said it was time to acknowledge that morale at Condé has become bleak after a year of shuttering an unprecedented six magazines, including Gourmet and Cookie, and letting go at least 460 employees. The company's reputation for exorbitant spending has also been criticized on Madison Avenue. And though most of the company's magazine-based cutbacks have already occurred, even more changes are expected to take place in the newspaper side of Conde Nast's parent company, Advance Publications. The New York Post's latest lists the confirmed moving and shaking currently taking place within the Advance Publication's national newspaper divisions.

Article Source: The New York Post
Photo Source: nyc-architecture.com
-Alia rajput

Harper's Bazaar Takes a Bite out of Twilight!

Whether you love the or hate them, read every book or never heard of the series, rush out to buy the newest US Weekly as soon as it hits the stands, or use their pics to line the litter box—you gotta admit that Twilight stars Kristen Stewart and Robert Pattinson look darn good on the cover of this month's Harper's Bazaar. The two of the moment starlets have been burning up tabloid covers for months, first in denial of their reported romance, and then finally relenting to become the summer's hottest barely legal couple. And now that their second blood-sucking film in the Twilight series, New Moon, is about to drop, it seems that most people can't get enough of gothicly gorgeous couple. But all that 'are they or aren't they' fluff is pretty give or take for us fashion-forward followers. The real drool-worthy material of seeing these two draped over each other  in the newest Bazaar spread is the collection of Mcqueen, Valentino, Yves St. Laurent, and Prada that envelops her. Not to mention the immaculate Dior Homme that ensconces him. Here's a sneak peek:

Article and Photo Source: Harper's Bazaar
-Alia Rajput

Missoni's Restructuring Plan Results in More Loss

The restructuring plan that Italian luxury house Missoni has been undergoing has claimed another position—general manager for the brand Massimo Gasparini. WWD reported that Gasparini has left the company and that his position will not be filled. “This is the final step and it was inevitable,” said CEO Vittorio Missoni, who will retain his position as chief executive officer along with his siblings Angela Missoni, who is also creative director of the brand, and Luca Missoni, who is in charge of the newly founded Ottavio and Rosita Missoni Foundation, which aims to promote and preserve the history of the brand. To take over the area of operations that Gasparini covered, Luca will now be also responsible for production and industrial decisions and Angela will oversee marketing and communications with staff. “We must be quick and elastic to react to today’s changes and challenges,” Vittorio Missoni said.

Gasparini had joined Missoni in January 2007, and was responsible for setting up a new organizational structure that streamlined the label's product offer. He made many influential moves in the company, such as shuttering the Missoni Sport collection. Prior to joining the company, Gasparini had worked at Gucci Group’s watch and jewelry division and held various positions at American Express. But recently, in an attempt to centralize its operations and contain costs while keeping all of the 250 employees at the Sumirago manufacturing plant, the company let go of four managers last month, including its director of licenses, a position created by Gasparini. It seemed only a matter of time before Gasparini himself was cut. No word on what Gasparini's future plans are in the industry.

Article Source: WWd
Photo Source: fashionindie
-Alia Rajput

Runway Changing Direction: Focus on The "Everyday" Woman

Model standards are changing again for the better. For the past century, model standard sizes have fluctuated from twiggy to curvaceous to Amazonian. The recent standard has been almost emaciated variations of the waif but now it is switching to more of a fuller "Marilyn Monroe" look.

Due to the concerns of dangerously underweight runway models, designers will be focusing on more of the "everyday" woman. Though the industry sample size is an eight, the average American women's size is 16.

New standards like Lily Allen's new Chanel campaign have changed the rules of the game. Though there are also size 12 "plus size" models, one might wonder if this will be a permanent change or just publicity bump.

This change has come from several outside influences, including economic and technological. It seems to come more from the overindulgence of Photoshop. Not even the models look like what you see in the magazines. After several years of the extremes of Photoshop, what could have been seen as extreme becomes more and more routine.

—Taneisha Jordan

Model Crystal Renn Photograph: Theo Wargo/WireImage

Source: guardian.co.uk

Lady GaGa Earns Stylemaker Award, May Design Her Own Clothing Line 'At Some Point.'

During a recent interview with Flare magazine, Lady GaGa was asked when she would be launching her own (undoubtedly bizarre but still oh so fabulous) clothing line. The vivacious singer responded, “At some point, I will. Right now, I’m more concerned with using my fame to promote young designers such as Gary Card, an artist who designed a piece I used on stage.” When the magazine pressed the singer—of whom they stated "is changing the world one sequin at a time—why she thinks her adoring public would love to get their hands on a piece of her headline-making style, the New York native simply said, “There hasn’t been a commercial artist lately that has embodied avant-garde and couture so insistently as myself.” Agreed.

Throughout the interview, Lady GaGa, originally named Stefani Joanne Angelina Germanotta, touched on the fashion evolution she underwent from 23 year old New Yorker to global style sensation that wowed her audiences with extravagant face masks, hairpieces, and—of course—no pants. “I went through periods where I was very sexy, then I became a hippie girl with ripped jeans and then went into a leopard tights and leotards phase… which I’m still in,” she laughs quietly. “Fashion saved my life,” she later admits. “When I was young, I was laughed at in school because I dressed dramatically.” Well, GaGa definitely has the last laugh now as the singer has raked in millions from her music and arguably set the bar for cutting edge fashion of the future. 

 

Lady GaGa's lace and velvet ensemble at the ACE awards

The current fashion world seems to agree as they honored the pop artist with the Stylemaker Trophy at the Accessories Council's annual ACE awards yesterday. Marc Jacobs himself awarded the velvet and lace-encrusted GaGa with the accolade. And despite her penchant for covering her face with masks, veils, and an assortment of other facial concealments, MAC cosmetics has picked GaGa as a face for their upcoming AIDS Fund campaign, along with Cyndi Lauper. The cosmetics company plans to release a Viva Glam Gaga Lipstick and a Viva Glam Cyndi Lipstick for $14 each, with all proceeds going to the M.A.C. AIDS Fund. The lipwear lines will drop on March 18th. Clothing line or not, the GaGa force is still very high in demand. 

Article Source: NY Mag, 'Oh No They Didn't'
Photo Source: ladaygaga.nu, Flare Magazine, NY Mag
-Alia Rajput 

Tribune Reports on The Closing of Chicago's Boutiques

Amy Lechelt-Basta, holding her dog Vino is closing Ciao Bella, Photo Courtesy of the Tribune

The Chicago Tribune today printed an article by Sandra M. Jones on the closure of many of Chicago's boutiques. This is just one of the many tragedies of the recession, but one that is felt deeply here. Chicago is a town known and loved for its small boutiques and entrepreneurial spirit. Today it's Southport's Ciao Bella's turn to close her doors. Before that, as the article notes, it was many the fate of many boutiques along Armitage in Lincoln Park and even more along the Southport corridor. Whether the reason is no faith in consumers in the upcoming holiday season or if it's simply too much overhead, boutiques are struggling against the large retailers who can discount even further without feeling it.  You can read the entire article here.