Aesthetics + Economics

Pout-a-Porter

From a marketing standpoint, the Lancome Pout-a-Porter collection is sheer genius. As the release date of the second lipstick in the series is fast approaching, I thought I'd take a moment to discuss what makes the product line so special. A little background for those of you who haven't been following the Beauty Addict's coverage of the collection: For Fall 2006, Lancome created a limited edition red lipstick based on the lip color used on the models at the Behnaz Sarafpour show. The lipstick, called "Behnaz," sold out before you could say Sarafpour. Pictured above is "Proenza Pink," based on the surfer girl-inspired pale pink lip seen at the Proenza Schouler Spring 2007 show.

The Pout-a-Porter Recipe for Success:

- Brand collaboration. With the Proenza and Lancome on the label, this lipstick is sure to get the attention of fashionable women. Additionally, by associating itself with cult designers, Lancome is increasing its fashion credibility relative to its competitors.

- Excellent exposure. With the number of fashion-obsessed females looking at runway photos online and the readership of magazines in which backstage beauty shots are published, runway makeup looks get plenty of exposure. Lancome is taking advantage of this by letting customers know that it is behind some of the season's hottest looks and packaging them in the form of lipsticks.

- Pretty Pictures. As the provider of the makeup for shows such as Behnaz and Proenza, Lancome sees its product photographed on some of the best models in the biz. And girls like Hilary Rhoda, Natasha Poly, and Agyness Deyn don't just make clothes look good!

The universally flattering and utterly cool Proenza Pink will be sold at Bergdorf Goodman, Lancome-USA.com, and select Neiman Marcus stores  beginning March 1.

Happy Cyber Monday!

In honor of  Cyber Monday (the online equivalent of Black Friday), I've added links to some of my favorite online boutiques to the left sidebar. Enjoy!

P.S. If you have any suggestions, let me know!

Photos: Serge Lutens Finishing Powder available at Barneys.com, Black sequin Chloé dress at Net-A-Porter, and Pierre Hardy wedges at Aloha Rag.

 

Africa is the New Breast Cancer, Sort Of

By now you've undoubtedly heard about Product RED, Bono and partner Bobby Shriver's effort to harness the marketing budgets of big companies and a rise in "ethical consumption" for the benefit of AIDS sufferers in Africa. (If you haven't, check out this post from Girlawhirl.) Just as breast cancer is associated with pink and big business, essentially a "branded" cause, the fight against AIDs is symbolized by red and also branded.

In fact, it seems that ambitious fundraisers and companies looking for a way to boost brand image have stumbled upon a fail-proof formula for success: take a worthy cause, assign a carefully selected color to it, add a passionate celebrity spokesman, and get companies to sign on with products that are sure to sell.

So, what to make of Product Red and similar ventures? How does branding a cause work economically, and perhaps more importantly for consumers reading, are there any items in the RED product line you might be interested in purchasing? For my attempt at analysis of the profitable philanthropy model, and a run-down on product offerings (including the items with mass appeal as well as items of interest to the discerning fashion customer), continue reading.

PHOTOS: Leave it to Paris Vogue to make the simple tees from the RED line look chic. Polaroids of Mariacarla Boscono and Gemma Ward scanned from Paris Vogue.

Massclusivity Watch: October

There are so many massclusivity partnerships these days that it can be hard to keep track of them all! Hence my first "Massclusivity Watch" post. I'll be posting each month to let you know what to look for in stores, and what to look forward to in coming months. (If you're economically inclined and interested in reading analysis of the trend of "ventures in massclusivity," check out this post.)

IN STORES OCTOBER

Thakoon Panichgul's capsule collection for Nine West is now available in 20 select stores and online. Visit the Nine West website to view a list of the specific stores carrying the collection, which consists of shoes, bags, and gloves. The collection follows Vivienne Westwood's collection for Nine West, which was available in September. Designs by Sophia Kokosalaki will go on sale in November.

Shop the latest of Paul & Joe for Target this month, as Behnaz Sarafpour's collection will take its place come November. I, like La Femme, was not too impressed by the first three Target GO! International collections, but I'll definitely pay a visit to Target to check out Behnaz's. Check out photos of the collection here.

IN THE NEWS

Viktor & Rolf for H&M will be available in approximately 250 stores in 24 select markets on November 9th. As of today, you can view a preview of the collection online and sign up for an email reminder. The company has not released a list of the specific H&M locations which will stock the line, but keep an eye out for one on the H&M website. One thing worth noting about the Viktor & Rolf for H&M collection is that it will include a $375 wedding gown. Now, the select H&M stores carrying the collections are always complete mob scenes the day the chain's massclusive collections hit the racks--it's almost frightening to contemplate adding a few bridezillas to the fashion-crazed mix!

Designer Roland Mouret has found himself a business partner in Simon Fuller. (If you read The Economics of the Affair, you'd know that this earns Mouret points in my book as it's increasingly important for talented designers to hook up with equally talented business partners as the designer fashion industry becomes more competitive.) The two have joined together to launch 19RM, and the company's first project is a line of 10 dresses for the Gap. What with fashionistas claiming that the Gap has Audrey Hepburn "rolling in her grave" with their skinny black pants commercial, it almost sounds too good to be true. And it is, if you don't happen to live in the UK or France, where it will be available. As for you lucky readers in France and the UK, mark your calendars: the line hits stores November 7th.

Kate Moss signed on to design a collection for Topshop in late September, which means we Americans have yet another reason to be jealous of fashion lovers across the pond. I find this deal particularly interesting as Miss Moss has a reputation for staying ahead of the fashion curve. I wonder, will she bring her fashion foresight to the masses with her collection for Topshop? Or will she have moved on to fresher trends by the time her collection appears in stores and on the Topshop website in Spring 2007? 

Photo: The picture at the top of this post (scanned from Dutch Elle) features a piece from the Viktor & Rolf for H&M collection. I've included a couple more pictures of looks you won't find on the website quite yet after the jump, also from Dutch Elle.

The Economics of the Affair

Cathy Horyn of the New York Times recently wrote a rather sobering article titled "The End of the Affair" about the state of the fashion industry. Specifically, she discussed the seemingly stark outlook for talented designers which she attributes to a general decrease in appreciation for creativity in favor of the big, bad bottom line.

She raises many good points, and given her knowledge of the business, this negative take may be warranted. Plus, the recent closure of Rochas was a highly visible case of a talented designer losing his job and probably has much of the fashion world thinking pessimistically. However, from an economic standpoint, the situation does not seem quite so dire.

It seems that the fashion business (and by "fashion business" I mean the business of designer or high fashion) is becoming more competitive. As Horyn notes, thanks to forces like reality television and the internet, "fashion has never touched more lives than it does at the moment, and by so many different means." Additionally, it seems the barriers to entry into the fashion business have lessened, and smaller designers and houses abound. (Just look at the number of shows at this New York Fashion Week!) Designers must also work faster now that precollections are a vital part of sales. Finally, as a result of the explosion of diffusion lines and massclusivity-type ventures, there is an abundance of moderately priced clothing on the market which is on trend and of decent quality--which many consumers will gladly take over more expensive offerings.

To survive in this environment, a house or designer must combine talent with business savvy; fashion houses must all accept certain basic economic truths. As a firm in any industry, a fashion house must acknowledge that there are tradeoffs. Exclusivity, prestige, perfection in design, loyalty to one's vision, or innovation can be increased only at the expense of revenue, high salaries, or investment in the future of the brand. Greater competition does not necessarily mean that "a tide [has] turned against designers and even perhaps against talent." It simply means that talented designers should try to partner with equally talented businessmen and women. Let's consider some specific cases, shall we?

Ventures in Massclusivity

The news that Vera Wang is partnering with Kohl's Corp. to produce a moderately priced line, "Very Vera by Vera Wang," for fall 2007 has got me thinking about the current trend of "massclusivity." In recent years, a slew of high-end designers have worked with lower-end firms to offer "designer" products at low prices. This trend came to be termed "massclusivity"--the idea being that a lower ticket price would make high fashion available to the masses.

However, not all massclusivity partnerships meaningfully further the democratization of fashion. Moreover, this is not always a bad thing. Let's take a look at the cases of Stella McCartney for H&M and the Nine West Front Row Project in order to better understand what I mean.

Lessons From the Rochas Experience

The impending closure of Rochas' fashion brand illustrates two lessons we can learn observing the fashion industry. First, as ready-to-wear (and particularly couture) operations are susceptible to losses, the sustainability of a fashion house requires a revenue generating activity such as a fragrance operation to support its fashion business. Second, keeping a fashion house alive is a labor of love. The brand's bottom line is important, but not more important than the fashion line itself. Thus, beauty companies and other companies for which fashion is not the core business typically are not as good at sustaining fashion houses as firms with a fashion focus or luxury groups with several fashion brands under a single "umbrella."

The Changing Face of the Luxury Department Store

Yesterday's Wall Street Journal had an interesting article about the changing face of the luxury department store. The jist: Luxury department stores have focused their attention on middle aged customers for years and are now beginning to target bright young things--the "echo boomers (teens through early 20s) and Gen-Xers (30-somethings)" as well. How are they doing it?

First, the stores are becoming aware of the differences between their bread and butter customers and the younger generations. They realize that St. John and Valentino are not the names young shoppers are looking for. (I can appreciate Valentino, but at my age I'd rather wear Balenciaga). Younger shoppers balk at the idea of wearing head-to-toe Chanel and much prefer high-low mixing. They are savvy, looking for the latest thing--and currently the perception is that "by the time a particular designer is carried in department stores, it's usually already gotten too publicized."

Barneys is opening additional freestanding Co-op stores all over the country. (I should know; we residents of DC now have two in the area within 20 minutes of each other.) Neimans is opening their own version of the Barneys Co-op, the Cusp stores, in Georgetown, McLean, and Los Angeles. The Cusp stores will carry items you would expect to find at Barneys Co-op or Intermix--i.e., Chloe bags, J Brand jeans, etc. Interestingly, Nordstrom recently bought a majority interest in the Jeffrey New York and Jeffrey Atlanta boutiques. Jeffrey is right on the money in terms of targeting the style conscious 20 to 30-somethings, and their shoe department is to die for. Hopefully Nordstrom will watch and learn from Jeffrey Kalinsky.

So what's the story? Intermix and other early adopters of the retail model aimed at younger women, offering a mix of "downtown cutting edge style with uptown chic," have been hugely successful. (Intermix opened in 1993, can you believe that?) The big luxury department stores see that this market is nowhere near saturated and are now entering this market themselves to expand their companies' customer bases to include the younger shoppers.

My take: While Intermix, Barneys Co-op and the Cusp stores will surely be successful in drawing in customers in their 20s, there is still a gaping hole in the market for more sophisticated women in their thirties and even twenties. Barneys (not the Co-op, just Barneys) and boutiques like Kirna Zabete serve these customers at the moment, but generally this group is underserved outside of cities like New York and Chicago. In any case, I'll review the Georgetown Cusp store when it opens, and I am anxious to see how Jeffrey Kalinsky's influence plays out at Nordstrom, but my business will still go to the more sophisticated boutiques that remain few and far between.

Photo of Jeffrey New York from newyorkmetro.com.