Category: Business of Fashion

March 8, 2013

First Food Trucks now Retail Fashion Boutiques on Wheels?

So CNN recently did an article on a new budding trend- retail fashion trucks. I must say food trucks in New York City are rampant, you can’t turn a corner in Manhattan without running into one especially at lunchtime. But, retail fashion boutique trucks I have not yet seen. So far we just have street vendors and Chinatown but I have a feeling that New York might just be crawling with these soon enough.

The concept? Lower start-up prices for aspiring store and boutique owners. According to the CNN article, Abigail Franklin, owner of The Trunk, described their value in saying “we can bring our products to you instead of waiting for you to come to us.” She bought her truck on Craigslist for $25,000 and has been truckin ever since. Stacey Steffe and Jeanine Romo, founders of Le Fashion Truck in Los Angeles, pay about $1500 in monthly business expenses (before inventory) as opposed to $7000 for a LA rental retail space.

Apart from tiny fitting rooms and weather hang-ups, seems like a great idea. Now I wonder how this could translate to New York City. What do you think?

Sincerely Yours,

“Fashionably-Late”

Malinda Knowles

February 6, 2013

The Cost of Producing a Fashion Show

New York Fashion Week is almost here and everyone is very busy getting all those last-minute details together to make for a perfect show. And, you know that old Murphy’s Law– what can go wrong will go wrong.

So, I was thinking to myself, just how much does it cost to put on an amazing show? Well, of course it depends on if you are keeping it basic or doing something over the top like Chanel. But let’s get to the bottom line. It’s business and designers are selling clothes and an image. So how much does it really cost?

Well, here’s a list of a few possible costs;

Production and Equipment; 50K to 300K+

Videographer: 3K to 5K per hour

Stylists: 5K to 20K per day

Hair and Makeup Team: 5K to 100K+ per show

Models: unpaid to 200K+

Venue: 10K to 50K+

According to the New York Times, the Marc Jacobs show cost $1 million in 2011, or $1750 per second. The breakdown on that; 500 guests, 63 outfits, 45 second model appearance, 22-inch human hair extensions for each model at $180/head, 50 hair stylists, 35 makeup artists and 70 dressers. The Victoria’s Secret Fashion Show rang in at about $12 million last year, says Business Insider.

Last year’s Louis Vuitton Spring/Summer 2013 Paris show directed by Marc Jacobs featuring models descending from escalators in the Louvre. Burberry literally made it rain/snow at their Fall 2012 London show.

The smaller fashion brands have done presentations instead of runway shows, spotted their own venues, casted their own models and utilizing the help of volunteers and interns to cut costs. So, given what brands shell out in terms of money, we can all understand why it’s so important who is at your fashion show and where they are sitting.

I can’t wait to see who takes the cake this year in over-the-top fabulousness.

Yours Truly,

“Fashionably-Late”

Malinda Knowles

February 2, 2013

Neiman Marcus and Target Line Flop

So, everyone and their mother these days since the economy crashed in 2008-2009 has seemingly jumped on the ‘I’m a high-end designer for low-budget stores’ bandwagon. Well, it takes a lot to successfully run a high-end fashion business and one must do what one can to survive and thrive. But, the consensus seems to be that a high-end designer or department store like Neiman Marcus should just stay that way and not try to parlay with your say, Target customers just to make some sales.

Evidently, its wiser to have a Marc by Marc Jacobs line under your umbrella like the Marc Jacobs fashion house as opposed to looking for a permanent collaboration with a lower price point store/brand as it is just not your customer base. Designers jumped on the Neiman Marcus Target collabo and Target customers complained that the prices were much higher than what they were used to paying but not much better quality than all the other products. Prices were slashed almost right away and according to Time Magazine, the entire collection was marked down 70% starting January 1st.

I’m definitely keeping this in mind for my future projects. If you’re a high-end designer, it may pay to just have your own lower price point line under your own brand than to do a collaboration like Neiman Marcus for Target.

Yours Truly,

“Fashionably-Late”

Malinda Knowles

December 13, 2012

Diane von Furstenberg and Camilla Morton’s New Fairy Tale Book: The Empress’s New Clothes

I remember when I first laid eyes on Diane’s collection, poking around the Fifth Floor at Bergdorf Goodman. I thought to myself, these prints are so cute, they kind of remind me of the 1970s. I ended up buying a blue dress that fit me like a glove and it is hard to fit my body perfectly.

My mother and grandmother were delighted to see it and asked who made it? I told them a new designer Diane von Furstenberg and received a chuckle from my mother. She explained that Diane was in no way a new designer; that she had been quite popular in the past with her iconic wrap dress.

Fast forward to today and I am still an avid DVF Fan. The clothes are so versatile; a number of pieces can go to work, a luncheon or a party. And after reading Diane’s new fairy tale book, The Empress’s New Clothes, I see that this feeling has been shared among many people from the 1970s to today.

The book is based on the incredible life (and LOVE) of Diane von Furstenberg. It is written by a London-based fashion writer, Camilla Morton, and illustrated by The DVF Studio. I especially love this illustrated page of the Empress and her new clothes below.

I won’t spoil the book but I will say that it is no wonder that Diane is a global fashion icon, business mogul, president of CFDA, and an inspiration to women everywhere. She has a slew of awards and achievements, and has revolutionized the fashion world by making clothes ‘easy’ with her wrap dress still sold and worn today. I told Diane at her book signing event this week at Bergdorf’s that I wanted to have a brand like hers. She responded with cool confidence that I can “be the woman that I want to be.”

I am deeply moved and in awe of Diane von Furstenberg. This fairytale story based on Diane’s life is not just a fairytale. It is an inspirational piece for little girls and women alike, a tale of a princess with an entrepreneurial spirit and a few sample dresses in her suitcase. Congratulations Camilla and Diane, this is a book that I hope to pass down to future daughters in my family.

Yours Truly,

“Fashionably-Late”

Malinda Knowles

Photo Credits: Jenny Kawa/BFAnyc.com

December 12, 2012

Columbia Business School and Parsons Students Pitch Strategic Plans to Luxury Product CEOs

Last week I attended Columbia Business School and Parsons Students’ Final Presentations which featured their fall 2012 case studies from the CBS class Design and Marketing of Luxury Products. There in attendance were CEOs and top representatives from Chanel, Hermès, Loro Piana, Pomellato and Van Cleef & Arpels, with whom the students had worked all semester.

The class is taught by Professor Ketty Pucci-Sisti Maisonrouge from CBS, who also runs several luxury consulting companies, and Professor Jessica Corr, a high-end hospitality designer/consultant who teaches at Parsons. The class is through the Luxury Education Foundation, a non-profit organization that focuses on educational programs for undergraduate and graduate students in Design and Business related to the creation and marketing of luxury goods.

Hermès Student Presentation: Photo by Lexie Moreland

What struck me about the presentations was that most of the companies were looking for ways to integrate their online presence with the actual experience of a customer in-store. Some ideas included placing physical touch-screen computers in the fitting room, a “My Chanel” virtual closet to upload photos of yourself in your new Chanel wear, or my favorite “Share Your Love Story” cards for Van Cleef & Arpel’s bridal business.

Van Cleef & Arpels Presentation Share Your Love Story Cards: Photo by Lexie Moreland

It was a very exciting class, I might say! And it ended with a celebration and networking along with a gracious champagne donation from Moët Hennessy USA.

Yours Truly,

“Fashionably-Late”

Malinda Knowles

November 16, 2012

International Herald Tribune Luxury Conference 2012: The Promise of Africa, The Power of the Mediterranean

Suzy Menkes Talks with Diane von Furstenberg

The International Herald Tribune Luxury Conference started this past Wednesday and ends today. Since 2001, it is the annual forum for business and creative leaders throughout the global luxury goods industry. Suzy Menkes, IHT’s Fashion Editor hosts the annual conference and attracts all the top talent in the world.

This year they talked mostly about economic development and fashion in the Mediterranean and throughout Africa. This year’s speakers included Omoyemi Akerele, Creative Director and Founder of Style House Files, a Fashion Creative Development Agency in Nigeria and Manolo Blahnik, one of the world’s most influential shoe designers. I’m glad the Conference is talking about cultures that aren’t always in the limelight.

I was a fly on the wall all week watching some of the sessions and keeping up with @IHTLuxury on twitter! Check out more about the conference here.

Yours,

“Fashionably-Late”

Malinda Knowles

November 6, 2012

Michelle Obama: Fashion Icon, A Tribute To The Last Four Years of Style

Greetings folks!

Today is election day and I hope each and every one of you goes out and votes! Whether by email, going to the poll or finding an “army” truck in NJ to make it happen- just make sure you vote today!

I’d like to pay a tribute to the last four years of Michelle Obama’s style. It seems that we haven’t paid this much attention to what our First Lady is wearing since Jackie Kennedy Onassis was in the White House!

Our economy was a sinking ship before Obama took office and it has seemed to stabilize a bit with GDP and the DJIA up a bit since the market crash of 2009. However, things are still pretty rough.

According to the Harvard Business Review, Professor David Yermack of NYU’s Stern School found that following public appearances between 2008-2009, Michelle Obama created $2.7 billion in cumulative abnormal returns for fashion and retail companies associated with what she wore.

Professor Yermack also states brands chosen by Obama gain about 2.3% in value which by the way, is more than Sarah Jessica Parker at about .5%.

Let’s take a look back at some of her great looks over the past four years!

Thakoon

Jason Wu

Peter Sororen

Jason Wu

October 26, 2012

By Invitation Only: How We Built Gilt

So, my cousin Monique Nelson, Uniworld‘s new CEO, recommended I read By Invitation Only: How We Built Gilt from the Gilt Groupe founders Alexis Maybank and Alexandra Wilkis Wilson for an interesting read on building a company in the fashion business.

Am currently working to use my artwork to start my own fashion brand and just got the book in the mail. I’m excited to start reading!

Yours truly,

“Fashionably-Late”

Malinda Knowles