A 14.5 Billion Dollar Engagement Ring: Why Tiffany Should Say "Yes" to LVMH

A 14.5 Billion Dollar Engagement Ring: Why Tiffany Should Say "Yes" to LVMH

On October 28, 2019, Tiffany & Co confirmed that it had received an unsolicited but non-binding offer from LVMH to purchase its securities at $ 120 per share , an offer of $ 14.5 billion. What are the six main reasons that can push LVMH to a transaction of this magnitude? What impact would this acquisition have on the financial structure of the French group? What about the fact that Tiffany & Co's board is asking for an increase in the offer?

LVMH Luxury Ventures Invests in California's Madhappy Streetwear Lounge Around Brand

In June 2019 Architectural Digest revealed two LA retail pop-ups created to promote mental health and inclusivity as critical brand DNA into the shopping experience. In the consummate LA lifestyle shopping experience, California gave us Madhappy and an invite to the local optimist group.

Before we start swooning, what about Madhappy’s sustainability credentials? We’re still looking but in F.A.Q. Madhappy answers the question of how to care for Mh products with the reply “We recommend washing on cold. Hang dry or dry on low heat. Lower environmental footprint + perfect for your Mh.” This fact does not answer our sustainable fabrics question.

Madhappy products are currently made in LA; Classics by Madhappy are available year-round with a flow of new seasonal colors. Limited capsule collections and collabs are never restocked.

Is Pharrell Williams singing ‘Happy’ running through your brain yet? It was in ours for the last 15 minutes, prompting us to imagine the perfect Madhappy festival, as directed by a blog post. Madhappy’s four co-founders: brothers Peiman Raf and celebrity stylist Noah Raf, Joshua Sitt, and Mason Spector have a big reason to be happy.

The LVMH Moët Hennessy Louis Vuitton Luxury Ventures subsidiary revealed that it has taken an investment position in Madhappy and its positivity-centric message. In March 2019, the smile-worthy streetwear concept raised $1.8 million from MeUndies founder Jonathan Shokrian, College Fashionista founder Amy Levin Klein, founders from Sweetgreen, and Justin Caruso, the son of American retail real estate magnate Rick Caruso.

Business of Fashion notes that LVMH’s “bet on a tiny streetwear label is a sign of the luxury giant’s eagerness to get on board with start-up culture and emerging fashion business models, even as its parent steers some of the industry’s biggest brands.”  

“LVMH is not trying to recreate [streetwear] from a distance by copying after the fact,” Shireen Jiwan, founder of Sleuth Brand Consulting told BoF. Instead, by way of investments like this and the appointment of figures like Virgil Abloh to top spots under its main umbrella, “they’re getting in front of it by collaborating with the organic creators of this new way of living, working, wanting, shopping, being.” 

TheRealReal x Burberry Relationship Promotes Deeply Personal Mutual Brand Loyalty

Writing for Forbes, Pamela N. Danziger digs beyond the obvious into the details of the newly-announced partnership between Burberry and TheRealReal. Officially the union promotes increasingly critical synergies in corporate responsibility and sustainable living in the fashion industry.

“Leading the way in creating a more circular economy for fashion is a key element of our Responsibility agenda,” Pam Batty, Burberry’s VP of corporate responsibility, said in a statement. “Through this new partnership we hope to not only champion a more circular future but encourage consumers to consider all the options available to them when they are looking to refresh their wardrobes.”

Burberry claims to have been at the “forefront of sustainability in fashion” for more than 15 years, an assertion that assertion may be up for debate among environmentalists. Surely Burberry doesn’t claim to share the Stella McCartney eco-conscious spotlight.

McCartney has been on the RealReal since 2018, experiencing a 65% increase in the number of consignors of her branded merchandise and a total increase of 74% of Stella McCartney items sold on the RealReal after announcing the partnership.

The real importance of the Burberry - RealReal relationship is lifetime customer acquisition, argues Danziger. More customers who experience both brands first at resale, then at full-price in a Burberry store, then returning to the trusted halo of The RealReal to resell and recycle. Sustainable, eco-conscious action is a critical issue, but don’t underestimate the inherent result of sustainable economics that translates into brand loyalty more intimate and personal than any ad campaign.

The RealReal reports demand for Burberry has increased 64% year-over-year, with Millennial and GenZ customer searches rising fastest on its site. In addition, the ThredUp 2019 Resale Report states that Burberry is the luxury brand with the best resale value; Louis Vuitton, Gucci, Hermès, and Prada are lower on that list.

Related: Caroline Knudssen Fronts Riccardo Tisci’s NET-A-PORTER x Burberry Fall 2019 Collection

Some Fashion Luxury Brands Are Just Buying Carbon Neutral Status -- Not Gabriela Hearst

Some Fashion Luxury Brands Are Just Buying Carbon Neutral Status -- Not Gabriela Hearst

Carbon Neutral Buzz

The new luxury fashion buzz word in the sustainability dialogue is “carbon neutral”. Long-time sustainable brand Gabriela Hearst delivered a carbon-neutral Spring 2020 runway show in New York, and Gucci announced to considerable fanfare that “it had achieved 100 percent carbon neutrality in its supply chain and operations.” How? By buying carbon offsets writes Vogue Business. Both Burberry in London and Gucci in Milan hosted carbon neutral Spring 2020 shows, again by buying carbon offsets.

Rachel Cernansky notes that the numbers add up on paper but buying carbon credits isn’t a substitute for actually reducing emissions, and ideally they follow — not lead — actual carbon-reduction improvements in the brand’s design, sales, marketing and manufacturing and manufacturing processes.

Gabriela Hearst Sets New Standards for NYFW

Gabriela Hearst is a leader in the sustainability sector. No one tops Stella McCartney, but Hearst makes a strong showing. Vogue Business shares innovations taken by Hearst that surely aren’t happening at either Gucci or Burberry.

The designer booked only local models (see photo above) for her SS20 New York show, and this new policy will become permanent. Hearst also cut out sample production for her supply chain and — this is a biggie — the designer is shipping product via boat, resulting in a longer 10-week delivery window.

New York’s CFDA website drills down even deeper on Gabriela Hearst’s initiatives for NYFW. She teamed up with her production company Bureau Betak to track every element of the show including insuring that the food used for catering to the models used only local and seasonal foodstuffs and the models’ hair was done without using electricity.

Unable to cut down on the emissions from private cars, Ubers, and taxis delivering guests to her September 10 show, Hearst gave guests a scarf featuring a print of animals that’ve have recently gone extinct. The Gabriella Hearst brand donated funds in guests names to Our Children’s Trust, the nonprofit organization based in Oregon that has filed lawsuits on behalf of youth plaintiffs against governments, arguing that they are infringing on the children’s rights to a stable climate system. Read on in Fashion & Brands.

Rihanna Talks Being First Black Woman In Charge Of Major Luxury Fashion House For T Magazine June 2019

Rihanna Talks Being First Black Woman In Charge Of Major Luxury Fashion House For T Magazine June 2019

The New York Times T Magazine June 2019 previewed Rihanna’s now open FENTY Collection, produced with her business partner LVMH. Key FENTY looks are styled here by Suzanne Koller for images by Kristin-Lee Moolman. / Hair by Yusef Williams; makeup by Lauren Parsons

In this next act of Rihanna’s journey, the pop star becomes the first black woman in charge of a major luxury fashion house in Paris.

Rihanna is interviewed by Jeremy O. Harris, an American actor and playwright, known for his plays ‘Daddy’ and ‘Slave Play’. This is no ordinary, glossy interview. Harris writes:

“For three years, I have been a diligent student of Rihanna’s 2016 song “Work.” The first lesson it taught me was in the fine art of ubiquity: The omnipresent earworm hovered over casual intimacies, significant encounters, mundane journeys and made sense of itself wherever, in whatever crevices it chose. Then “Work” found its way into my own work. In my script for “Slave Play,” which debuted at New York Theater Workshop in 2018, the protagonist Kaneisha suffers from obsessive-compulsive disorder and Rihanna’s “Work” plays in her head on repeat, taking on a frighteningly oppressive quality and revealing the historic bedrock I was attempting to excavate: namely, that black people, specifically women, must live with the knowledge that their emotional and physical labor is the backbone of every relationship that they endeavor to have with their partners, with America. The song, which weaves through the dialogue, brought more attention to the play than any other device could have. “

Ralph Lauren Polo Spotlights West Philadelphia Work to Ride Young Black Equestrians

Ralph Lauren Polo Spotlights West Philadelphia Work to Ride Young Black Equestrians

The new Ralph Lauren Polo ad campaign has put a group of young people from West Philadelphia on the style and culture map.

The kids are part of Fairmount Park’s Work to Ride program, launched in 1994 and based out of the Chamounix Equestrian Center. The program gives underprivileged youth the opportunity to experience horsemanship, introducing communities of color to a predominantly whie, very privileged sport. Think our beloved Prince Harry and his friends.

"I'm still kind of bowled over that they actually took the plunge," Work to Ride Executive Director Lezlie Hiner said about the fashion giant's decision to run an ad campaign featuring her program.

On any given year, Work to Ride serves around 60 youths between the ages of 7 and 19, Hiner said. Ralph Lauren's campaign is a reflection of the program's mission. In reality Hiner is very modest, because her Work to Ride project is racking up an incomparable list of accomplishments by its young riders.

'Paris Good Fashion' Launches 5-Year Plan Making Paris Center Of Sustainable Fashion Industry

MERCI STORE PARIS. PHOTO BY ROBIN BENZRIHEM ON UNSPLASH

'Paris Good Fashion' Launches 5-Year Plan Making Paris Center Of Sustainable Fashion Industry

The fashion industry is responsible for 10% of the world’s carbon footprint and is considered to be the second biggest polluter of fresh water globally, producting 20% of the world’s industrial wastewater. Forbes adds that the global fashion industry uses 24% of insecticides and 11% of pesticides required to produce crops used in garments.

Until now, London has led the international pace in the fashion sustainability movement. This week, Paris weighed in with a new five-year plan designed to establish French credentials in this critical arena of public policy and environmental action.

Called ‘Paris Good Fashion,’ the project outlines a five-year plan to build an open, collaborative community of fashion professionals, entrepreneurs, designers and experts working together to make Paris a sustainable fashion capital.

Frédéric Hocquard, deputy to Paris mayor Anne Hidalgo, and Antoinette Guhl, deputy in charge of social economy and solidarity, as well as former fashion journalist Isabelle Lefort, promised a more comprehensive project outline at a June 2019 event that will also feature campaigns promoting fashion recycling and conferences surrounding sustainable discussions

Rihanna and LVMH Team UP With Potential To Create Dynamic, People-Centric, Global Luxury Brand

USA-France ambassador Jane D. Hartley, Rihanna, Bernard Arnault, and his wife Hélène Mercier at Christian Dior SS 2016 fashion show.

Rihanna and LVMH Team UP With Potential To Create Dynamic, People-Centric, Global Luxury Brand

Vanessa Friedman asks for The New York Times: “Is Rihanna the Coco Chanel of the 21st century?” Can the multi-hyphenate talent, without an ounce of fashion training, launch a new powerhouse luxury brand?

Bernard Arnault, chief executive of LVMH, thinks so and is in serious talks with Rihanna about launching a new global Fenty brand. Friedman writes that execs at Fenty Beauty and LVMH corporate were astonished over the runaway success of Fenty Beauty, launched in a diverse array of skin tones and with a fan base of 6.3 million Instagram followers. Fenty Beauty was named one of TIME magazine’s 25 Best Inventions of 2017.

Robyn Rihanna Fenty IS a real, live heritage brand with a global reach. No ‘authentic’ story must be created around her image. Rihanna IS the story and she has created it — not with mood boards on Madison Avenues — but with her entire life.

Rihanna comes to the world of luxury brands having made them her canvas for a decade. Luxury fashion has brought her far beyond the limits of the music world. Styled by Mel Ottenberg since 2011, Rihanna has aligned herself with emerging designers and luxury brands like Lanvin and Givenchy. Rather than working with a luxury house exclusively, she used these same brands to suit her purposes.

In 2014, she was named fashion icon of the year at the Council of Fashion Designers of America awards, where she appeared in a sheer crystal-spangled Adam Selman dress and matching cap, a white fur wrap strategically draped around her body, setting off a so-called naked trend in red carpet dressing. The next year, at the Met Gala, she wore a giant yellow cape from the Chinese designer Guo Pei, and enshrined her skill at making an entrance.

Not mentioned in Friedman’s piece, but a key component in the forthcoming Rihanna/LVMH alliance is the social conscience of the new luxury brand. Here there is an opportunity to set a very high bar, and all my instincts say that Rihanna and Arnault understand well global politics and human suffering.

RIHANNA AT THE COSTUME INSTITUTE GALA 2018. Image DAMON WINTER/THE NEW YORK TIMES

With governments in chaos worldwide, but Rihanna anchored deeply in the lives of everyday people, I fully expect a new paradigm to emerge with a Rihanna-led Fenty house that is an activist house, too. Rihanna is deeply embedded in the obligations that women leaders have assumed in creating real change in the world.

If LVMH is equally courageous and up to the task, we might see a new luxury brand DNA that moves beyond the rarified and exclusive vision of Coco Chanel to one that touches people in big and small ways worldwide. If anyone can jumpstart this new 21st century, luxury brand vision, it’s the combined prowess of Rihanna and LVMH’s Bernard Arnault.

Burberry Formally Gives Up Fur, Moves To Recycled Packaging & Will Stop Burning Excess Inventory

Burberry Formally Gives Up Fur, Moves To Recycled Packaging & Will Stop Burning Excess Inventory

Burberry made two announcements on Thursday, following up on its May 2018 promise to review its use of real fur in its collections. Equally important, Burberry's chief executive Marco Gobbetti responded to criticism from the general public over its practice of destroying its unsold luxury products. In a first move for the luxury brands market, Burberry will become the first company to reuse, repair, donate or recycle all of its unsaleable products. 

Gobbetti said: “Modern luxury means being socially and environmentally responsible. This belief is core to us at Burberry and key to our long-term success. We are committed to applying the same creativity to all parts of Burberry as we do to our products.”

The amount of stock Burberry destroys had risen sharply in recent years, from £5.5 million in fiscal year 2013 to £28.6 million in the last fiscal year. Gobbetti also announced that the creation of a new logo triggered a need for all new packaging, shopping bags, marketing materials, and they would now use recycled materials. 

As for the company's use of fur, it's over at Burberry. Riccardo Tisci's debut collection presented at London Fashion Week on September 17 will be fur free. 

Eye: As Phoebe Philo Prepares To Leave Céline, Will She Sink Deeply Into Her British Roots?

Eye: As Phoebe Philo Prepares To Leave Céline, Will She Sink Deeply Into Her British Roots?

Phoebe Philo is officially leaving Céline, after a decade spent restoring and reinvigorating the LVMH label as a favorite of powerful, working women. WWD reports that Philo's last collection for the label will debut at Paris Fashion Week Fall/Winter 2018, with succeeding collections crafted by various Céline employees until a new creative director is appointed. 

In a brief statement announcing the news, Ms. Philo thanked her team, and Bernard Arnault, chairman and chief executive of LVMH Moët Hennessy Louis Vuitton, the luxury group that owns Céline, said: “What Phoebe has accomplished over the past 10 years represents a key chapter in the history of Céline. We are very grateful to Phoebe for having contributed to the great momentum of this Maison. A new era of development for Céline will now start, and I am extremely confident in the future success of this iconic Maison.”

Eye: Miuccia Prada Meticulously Restores The Past In Shanghai | With A Fiercely Rebellious Feminist Artistry For Spring 2018

Eye: Miuccia Prada Meticulously Restores The Past In Shanghai | With A Fiercely Rebellious Feminist Artistry For Spring 2018 AOC Eye

Prada Renovates Past Decadence in Shanghai

Miuccia Prada and husband, Prada Group chief executive Patrizio Bertelli, opened Prada Rong Zhai, a brilliantly restored heritage mansion in Shanghai's affluent Jing'a District, just north of the former French Concession. 

Miuccia Prada's Punk and the Need for Modern Militance

'Combative' and 'militant' were words front and center in Miuccia's spring 2018 fashion consciousness. The designer has quietly undermined every aspect of bougeois dress throughout her career. After all, as a full-fledged member of Italy's Communist party, Prada reportedly wore regularly Yves Saint Laurent couture. This is testimony to her "profoundly unconventional and willfully contrary spirit", writes Frankel.