Research report,

Six-monthly publication – June 2011 n°16.

Editorial

This issue of Mode de recherche on the added value for luxury brands, the issues of subject of luxury follows on from the innovation and are also very much international conference organised by the to the fore. Taking their lead from the social IFM in April 2011 ( Fashion between and management sciences, some of the Heritage and Innovation ), in addition to contributions deal with the symbolic spurs the recent publication by IFM-Regard of a behind luxury consumption. Others exa - collective social sciences book on the theme mine the economic perspectives and of luxury, Le luxe. Essais sur la fabrique de tensions that characterise the luxury market l’ostentation . as it is torn between a growing demand for While this issue essentially attempts to gain short-term profit and the more long-term perspective on the problems linked to outli - issues of tradition, skills, durability and ning and managing heritage, a source of sustainable development. The IFM Research Center is supported by the Cercle IFM that brings together the patrons of the Institut Français de la Mode:

ARMAND THIERY CHLOÉ INTERNATIONAL COUTURE DISNEYLAND FONDATION PIERRE BERGÉ -YVES SAINT LAURENT FONDATION D’ENTREPRISE HERMÈS GALERIES LAFAYETTE GROUPE ETAM KENZO L’O RÉAL DIVISION PRODUITS DE LUXE VIVARTE YVES SAINT LAURENT On Luxury

Heritage and Innovation: .4 , John Redfern, and the Dawn of Modern Fashion Daniel James Cole

Using a Professional Organization .14 to Enhance its Reputation. The Case of the Parisian . A Longitudinal Study (1973-2008) David Zajtmann

Vertical Integration in the Luxury Sector: .21 Objectives, Methods, Effects Franck Delpal

Luxury: An Industry Between .31 Heritage and Modernity Dominique Jacomet, Franck Delpal

The Made-to-Measure Approach: .38 The Example of Rome Today Pascal Gautrand

Luxury, the Accursed Share .43 and the Capital Gain Nicolas Liucci-Goutnikov

Responsibility and Profits: What Temple of .47 Luxury has Taken on the Role of Guardian? Selvane Mohandas du Ménil Heritage and Innovation: but despite his efforts to simplify women’s daytime clothes the usual effect was heavily Charles Frederick Worth, draped and fringed, and as stuffily claustro - phobic as the gewgaw-cluttered interiors John Redfern, and the associated with Victorian English taste”. Dawn of Modern Fashion The Kyoto Costume Institutes 2002 publi - cation of from the 18 th through the Daniel James Cole 20 th Centuries includes a short, partially accurate biography Redfern but with erro - neous life dates that would have him opening his business around the age of 5. Recent scholarship creates a different pic - ture of both Worth and Redfern. Pivotal to the history of clothing, Redfern’s story is only recently being rediscovered, and only in the past few years has a proper explo - ration and assessment begun (primarily by the work of Susan North). North (2008) puts forward the thesis that in the late 19 th century, Redfern and Sons was of equal importance to the House of Worth. It is even possible to assert that Redfern, and his legacy, were actually of greater importance as shapers of 20 th Century styles. An exam - ination of Redfern and Redfern Ltd., in Charles Frederick Worth’s story has been comparison to their contemporaries, calls told often and is familiar to fashion schol - into question not only the preeminence of ars. But while Worth has enjoyed a place of Worth, but also aspects of the careers of Paul significance in fashion history, the story of Poiret and Gabrielle Chanel. his contemporary, John Redfern has been The following explores how Worth and ignored, or at best reduced to mere footnote Redfern, in different ways, shaped the tastes status. Nearly all well-known fashion and fashion system of the 20 th Century – history survey texts give coverage of Worth, themselves, and through the businesses that but scant – if any – mention of Redfern. bore their names after their deaths. Their Contini, Payne, Laver, and Tortora and are intertwined with the major styles of the Eubank, all ignore Redfern. Millbank second half of the Nineteenth Century, and Rennolds, in Couture, the Great Designers their stories are interwoven with important omits Redfern while including some fashion icons of the time, and demonstrate markedly less important designers. Boucher the power of celebrity clientele to the suc - includes John Redfern, but distills his career cess of a design house. Both Englishmen, to a brief, mostly accurate, paragraph. In Worth and Redfern founded family busi - Fashion, The Mirror of History , the nesses; both men died in 1895 and both left Batterberrys interpret a Redfern plate as: there business in the control of sons and “Another Englishman, working in Paris, the junior partners. But in addition to their tailor Redfern, had devised a neat “tailor- similarities, their stories emphasize their made” suit with a short jacket for women, differences.

4 Charles Frederick Worth, and Worth & , in 1859. Worth set his sights on the Bobergh princess’s business; Mme. Worth paid a call to Princess Metternich, and extraordinarily, Charles Frederick Worth is acknowledged was received. Mme Worth presented the as the father of couture, rising from the princess a folio of designs and the Princess ranks of a notable fabric and dress business ordered two dresses, wearing one to court at in Paris, to leading his own house. As the the Tuileries Palace. “I wore my Worth story goes, Worth was catapulted to success dress, and can say… that I have never seen a by the court of the Second Empire. The more beautiful gown... it was made of white story of Worth’s rise to fame, and his associ - tulle strewn with tiny silver discs and ations with Princess Pauline Metternich trimmed with crimson-hearted daisies… and Empress Eugenie, is a familiar tale but Hardly had the Empress entered the one that has been embellished, even twisted throne-room…than she immediately over time, beginning with the rather mythic noticed my dress, recognizing at a glance memoirs of Metternich herself (1922), and that a master-hand had been at work.” of Worth’s son, Jean-Philippe (1928). (Metternich, 1922) Born in 1825, Charles Frederick Worth Eugenie’s admiration of the dress led to began his career at a London drapery house. her own commissions from Worth and Moving to Paris in 1846, he found employ at Bobergh, catapulting Charles Frederick Gagelin-Opigez & Cie, a retailer of fabrics Worth to success as other ladies of the court and accessories, and a . While in patronized the business. their employ, Worth probably began design - This well-known story of Worth’s meteoric ing in the dressmaking department. Worth rise to stardom has recently provoked doubt. married a Gagelin-Opigez employee, Marie Worth scholar Sara Hume questions this Vernet, a at the store. Leaving in account on the basis that it is derived from 1857, Worth began his own business in part - loving, but unreliable secondary accounts. nership with Otto Gustave Bobergh, with “The legend that has grown up around his “Worth et Bobergh” on the label, and Mme name was built up in large part by memoirs Marie Worth working at the business. by his son and famous clients written well Records indicate that Worth and Bobergh after his death. After Worth had achieved was an emporium, much in the model of fame, his clients such as the Princess Gagelin-Opigez, and sold fabrics, and a Metternich, nostalgically wrote of his variety of shawls and outerwear, with ready prominence under the Second Empire”. made garments as well as made-to-measure (2003, p.80) couture (Hume, 2003, p.7). Hume also questions that the custom of Eugénie de Montijo, the Spanish-born wife Eugenie and Princess Metternich came as of Emperor Napoleon III, was the most early in the decade as 1860, or that he held important female style setter of Europe dur - a place of significant importance in the ing the years of the Second Empire and is system prior to mid-decade. associated with many fashions of the time. She notes that he did not receive mention in She encouraged glamour at the French French fashion magazines until 1863, and court that contrasted with the reserve of press coverage for the remainder of the Queen Victoria’s Court of Saint James. decade was not plentiful. In addition, Worth According to some accounts, Worth began and Bobergh did not use the designation his association with Princess Metternich, “Breveté de S. M. l’Impératrice ” until 1865. the wife of the Austrian Ambassador to Moreover, the number of existing Worth and Bobergh pieces in museum collections John Redfern of Cowes from this time is less than what such success would indicate (Hume, 2003). Across the English Channel, in the resort Worth’s status during these years has been town of Cowes on the Isle of Wight, the inflated retrospectively, and many other young John Redfern was transforming his dressmaking establishments were successful drapery house into dressmaking business. at the time. In these years, several were well John Redfern began his drapery business established. Mlle Palmyre, Mme Vignon, during the 1850s. Although his business Mme Laferrière, and Mme Roger, all developed slower than Worth’s, he eventu - contributed to the trousseau or wardrobe ally acquired a no less auspicious clientele, of Empress Eugenie, as did Maison Felix, including Queen Victoria, Alexandra and it was at this time that La Chambre syn - Princess of Wales, and Lillie Langtry. dicale de la Couture parisienne began. Also Growing over the course of the decade, the emerging in these years, was the great cou - business was established for dressmaking by turier Emile Pingat, who came to rival the late 1860s, and its subsequent steady Worth’s importance in late 19 th century growth rivaled the importance of The French couture. House of Worth for 40 years. “The frequent sobriquet of ‘inventor of In Cowes, Redfern was able to take advan - haute couture’ gives the misleading impres - tage of the presence of Osborne House, one sion that…Worth introduced a completely of Victoria’s official residences; “the whole new method of designing and selling island benefited economically and socially clothes. In fact haute couture evolved grad - from the need to supply the Household and ually over the almost half century of the attending high society (North, 2008, Worth’s career and represents only a seg - p 146).” His sons John and Stanley joined ment of the new fashion industry which the business during the 1860s. The first developed through the century”. (Hume recorded clothing from John Redfern was 2003, p.13) However erroneous the tradi - noted at the 1869 marriage of the daughter tional accounts are, it is important to note of W.C. Hoffmeiter, Surgeon to HM the Worth’s designs for Eugenie and the court Queen; Redfern provided the wedding dress promoted French industry and had a favor - and the bridesmaids dresses (North, 2008, able impact on the textile mills of Lyon. p.146). Certainly the aristocracy noticed the Soon the house had an impressive client list, high-profile commission, and Redfern including Queen Louise of Norway, understood the power of celebrity to pro - Empress Elisabeth of Austria, along with mote his business in the coming years. stage stars and glittering demimondaines of At this time a change in dress was under - Paris. Although men would dominate the way: more sport and leisure activities were fashion industry in a short time, a man in developing specific clothing, and those the dressmaking business was still novel: women who could afford a diversified, spe - Worth earned the moniker “man milliner,” cific wardrobe sought more practical attire; and by transforming dressmaking from clothing for some activities showed the women’s work to men’s work, the activity affect of the Dress Reform movement. of designing fashions was taken more seri - Ensembles emerged, described in the fash - ously as an applied art. ion press of the day as “walking costume,” “seaside costume, and “promenade cos - tume.” More practical outerwear for women was being introduced, even “water - proofs” (Taylor, 1999). At the same time, museum collections. From all over Europe women’s equestrian clothes were crossing and North America, customers came to his over into town clothes in the form of a “tai - house, willing to make the trip to Paris. lor made” costume. For years men’s tailors Worth’s sons, Gaston and Jean-Philippe, were producing women’s riding habits, with joined the business in these years. His repu - jacket bodices made in masculine forms. As tation was now so noteworthy that Emile men’s tailoring standards developed, Zola created a fictional version of Worth in women’s riding clothes developed similarly, 1872. He excelled at the ornate draperies of and woolen cloth associated with men’s the bustle period, and he reveled in inspira - suiting began to cross over into the general tion from 18th Century modes, especially female wardrobe (Taylor, 1999). British tai - popular in the 1870s with polonaise style loring establishment Creed enjoyed the drapery in the manner of Marie custom of both Queen Victoria and Antoinette’s “shepherdess style.” Empress Eugenie for riding habits; opening However, Worth’s true creativity in these a Paris store in 1850, The House of Creed years (and in general) has been questioned, contributed significantly to this trend. As and his Hume reputation viewed as tailor made ensembles emerged, lighter inflated: “Monographs of celebrated fashion weight versions developed for summer designers, such as Worth, typically focus on activities outdoors. individual genius as a primary force in initi - John Redfern continued with success into ating new fashions. As an individual the coming years as a very fine ladies dress - designer, Worth may not have been the cre - maker. However, both of these trends – ative genius that his reputation may sport clothing and the tailor made – figured suggest. The traditional view that Worth prominently in Redfern’s career as the 1870s was a great innovator may be brought into began and his business expanded. While question by a comparison between fashion neither activewear nor the tailor made were plates and his designs”. (Hume, p.3) necessarily his “invention,” Redfern would In light of such opinion, it is possible to sug - do more to promote these styles than any gest that his true gift lay not in creating but other designer. interpreting trends – already present in such fashion plates – to suit the tastes of his rari - Worth After Bobergh fied clientele. It is in these years that Worth developed his system of mix and match Worth and Bobergh closed during the components of a gown (Coleman, 1989). A Franco Prussian War. Bobergh retired, and series prototypes of different sleeves, differ - Worth reopened as Maison Worth . The ent bodices, different skits were available to Third Republic left Worth without an be put together in different combinations empress to showcase his work, but other and different fabrics to create a toilette, European royals continued to give him maintaining for the client the impression of business. However the backbone of his an original creation. financial success now came from the wives By 1878, a new silhouette was developing. and daughters of American nouveau riche The understructure that enhanced the but - tycoons, who sought the overt prestige of a tocks went away, and a sleek silhouette Worth wardrobe over the work of their local emerged, and princess line construction was . His popularity with the essential to it. Worth was important to the American wealthy is attested to by the large popularity of this silhouette. Though he is amount of Worth dresses in American often credited with inventing the princess line (and supposedly naming if for return of the bustle in 1883, suited Worth’s Alexandra the Princess of Wales) vertical aesthetic perfectly. Extant examples of his seamed dresses went back to the middle work in museums from this time indicate a ages. In the late 1850s and1860s, loose synchronicity of the prevailing modes of the dresses with such vertical seams were worn day with his taste for flamboyant theatrical - in the as walking costumes, intended for ity – the “man milliner” cum artiste at his some measure of physical activity. In its finest. application to this new silhouette, this new Although Worth was now at the top of Paris style en princesse used the princess line fashion, many elite and moneyed customers seams in a smooth, fitted to the body sought other designers. Emile Pingat’s method, and the term was used to describe smaller business attracted the discerning both dresses (in one piece from the shoulder who appreciated the quiet elegance of his to the floor) and with bodices with similar work over Worth’s less subtle output construction. A correlation between (Coleman, p.177). Also in these years, princess line construction and the increased Doucet, a decades old emporium of shirts presence of women’s tailor made garments and accessories, launched a couture division has been made (Taylor, 1999): Charles headed by third generation Jacques Doucet, Frederick Worth, in developing and popu - and soon rivaled Worth’s importance. larizing the en princesse style was applying principles of tailored construction to dress - Redfern and Sons making, cannily on top of developments in women’s fashions. As the Third Republic left France (and the Not only did Charles Frederick Worth fashionable world) without an empress to develop the couture system, he may have be a fashion icon, more attention focused on truly invented the mystique of the fashion Britain’s royals. Alexandra of Denmark designer as idiosyncratic, exalted artist. became the Princess of Wales upon her mar - Worth needed a personality to suit his fabu - riage to Prince Edward in 1863. Although lous clientele – especially to appeal to the she was quickly celebrated for her style, her nouveau riche Americans – and the “man ensuing six pregnancies kept her out of the milliner” affected the role of great artist. He spotlight until she re-emerged in 1871 (well created an outrageous persona, wearing timed to coincide with Eugenie’s absence.) dressing gowns (sometimes trimmed with Alexandra’s style helped define fashion in fur or even tulle) and a floppy black velvet the next four decades. Also of importance beret. “Such attire satisfied the illusion of a as a fashion icon was the Prince of Wales’ creative genius at work (Coleman, p.25). mistress, Emily LeBreton Langtry. “Lillie” “Hollander in Seeing Through Clothes draws Langtry was the most noted of the a correlation between Worth’s affected look, “Professional Beauties,” society women cel - and images of Richard Wagner, and ebrated in the media simply for their looks, Rembrandt (1993): such romanticized and she was, likely, the first celebrity prod - deshabille was a calculated move, and such uct spokes model. Lillie’s hourglass affection may have been borne of a desire to proportions strongly contrasted the lithe mask a lack of genuine creativity with the Alexandra, but both women were widely image of a great artist. The 1880s saw celebrated for their beauty, and important to remarkable output from the house; the pop - the style of each were the fashions of John ular garish colors, the continuation of overt Redfern. historic inspirations, and the extremes of the By the early 1870s, fabrics from Redfern were in the wardrobes of Queen Victoria aristocratic women, and the influence from and Princess Alexandra, and their custom equestrian wear to the tailor made contin - was included in Redfern’s advertising. More ued. An avid horsewoman, Elizabeth of significant was the yachting boom that Austria set styles throughout Europe with came to Cowes with the Prince and Princess her riding habits; a favorite detail was mili - of Wales’ enthusiasm for the sport. British tary inspired frogs and braid in the style of Aristocrats, American nouveau riche , and the Austro-Hungarian military. This style other international elite were drawn to and other military inspiration quickly Cowes for the developing regatta, and par - found their way into women’s tailored cos - ticipated in other outdoor activities. The tume, including Redfern’s. yachting, the wealthy clientele, and the With royal patronage and coverage in the development of sport clothing combined to press, the business grew and expanded place Redfern at the right place at the right internationally. A London branch was the time. Redfern became the source for yacht - next to be established in 1878, where fash - ing and seaside toilettes, and sailors’ ionable gowns were available along with uniforms often served as design inspiration. sport and tailored clothes. Managing the Redfern set the benchmark in this category London store was Frederick Mims, who of clothing. Both the Princess and Mrs. took the name Redfern. In 1881 a Paris store Langtry enjoyed sporting activities often opened that took its place in the French wearing Redfern; as the widely imitated in fashion scene alongside Worth, Doucet, and anything they wore, they set the styles for Pingat. Leading the Paris store was Charles this type of clothing. Poynter, who also took the name Redfern. Genteel activities such as croquet and Under Poynter Redfern’s supervision, other archery were still enjoyed, but more vigor - stores opened in France, notably a store in ous sports were becoming more popular. the resort town Deauville. By 1884, Redfern These included hiking, golf, and shooting, and Sons had crossed the Atlantic, and and often ankle length skirts (without the opened a store in New York City managed fashionable bustles of the time) were worn. by Redfen’s son Ernest. While Lucile and Tennis also grew in popularity, with special Paquin are both given credit for being the tennis ensembles. Redfern designed jersey first transatlantic fashion business, Redfern bodices and dresses for tennis (and other preceded both of them by more than 20 sports) and although Redfern was not the years. The Paris and New York stores only house that featured jersey garments, it offered the same variety as the London became associated with him. Both Mrs. store. Stores in Newport, Rhode Island, and Langtry and the princess wore them, and Saratoga Springs, New York catered to the they were documented in The Queen , the resort customer. While Redfern directly leading British fashion periodical. Redfern challenged Worth at the Paris store, they developed a strong relationship with the also appealed to a broader segment of the publication, realizing that paid advertising market, making the business the more sig - would lead to more editorial coverage nificant. While Maison Worth required its (North). clientele to come to the Rue de la Paix, Redfern continued to popularize the tailor Redfern and Sons, with branches in made. The style was a favorite of Princess England, France, and the United States, Alexandra who wore Redfern’s, attracted to brought its product to more of the fashion - the combination of style and practicality. able world. Riding continued to be a popular sport for Maison Worth after Worth Redfern Ltd.

By the early 1890s Charles Frederick In 1892, the company incorporated as Worth’s role in the house had declined, and Redfern Ltd. The death of John Redfern in as both sons were now active in the com - 1895 had little affect on the continued suc - pany, he essentially retired. Worth left the cess of the business; Redfern Ltd. had management of the business in the hands of transformed “from the most successful Gaston, who had already assumed much ladies tailoring business to an international managerial responsibility. The creative side couture enterprise equal of Worth” (North, was left to Jean-Philippe. The exact chain of 2009). Charles Poynter Redfern at the helm events is unclear, as is also the extent of of the Paris store, was the most important Worth senior’s continued role in the house; designer in the company and was equal many Worth dresses from 1889-1895 are of Jean-Philippe Worth, Jacques Doucet, unclearly attributed as whether father of son and . Featuring designs by designed them. “It is not possible to deter - Poynter Redfern, the company participated mine at what point Jean-Philippe became in the Exhibition Universal of 1900. During the lead designer for the house; however the 1900s, the focus of Redfern Ltd. was garments after 1889 show differences… that more on couture, moving away from its suggest a different designer” (Hume, 2003, activewear and tailored roots, although still p.11). offering selections in those areas. Nellie Melba, the noted Australian opera Underscoring that shift was the closure of star, was a long time Worth customer; the original Cowes store. Royalty still went Melba was particularly fond of Jean- to Redfern’s stores to be dressed, and Les Philippe saying “Jean himself was a greater Modes joined The Queen in devoting a great designer than his father had ever been” deal of editorial coverage to the house. (Coleman, 1989, p.29). The output of the North asserts that Redfern Ltd. was the house in the 1890s shows a remarkable syn - dominant force in Western fashion between ergy between fashion and L’Art Nouveau the years of 1895 and the 1908 work of and Japonisme styles developing in the other (2009). It is possible to actually applied arts. Like Redfern, Maison Worth establish the pre-imminence of Redfern also showed the affect of the Dress Reform continued even further into the next decade movement, however, that affect showed to 1911. Although these are few years, they itself in the form of ravishing, languid tea- are pivotal to fashion history. gowns along the rubric of Pre-Raphaelite Many dress historians treat Poiret’s 1908 and Aesthetic taste. These were “artistic” work as a watershed moment that capti - costume for the artistic aristocratic lady, and vated the fashionable world. One noted did not show the practical affect that had fashion historian (Deslandres, Poiret , manifested itself at Redfern. Rizzoli, p.96.) wrote “[as] if women had just The decade of the 1900s saw the house of Worth maintain continued success with been waiting for it, the Directoire line, beautiful gowns, but other designers over - revived by Poiret, redefined elegance shadowed its innovations and styles. Gaston overnight.” In light of the fact that Poynter Worth’s attempt to enliven the house with a Redfern and Paquin were already doing this young man named Paul Poiret proved short line, the extreme nature of such a pro - lived and unsuccessful. The client base had nouncement can be easily called into grown old, and now the aging house was question. Further, the fashion press paid dressing aging women. virtually no attention to Poiret until a few years later, making such an “overnight” these years, with their ersatz Near-Eastern impact on fashion impossible. Redfern’s themes were sensationalist and hype pro - output was well documented in the pages of voking, such as his “Minaret” dress and robe The Queen and Les Modes . Poynter Redfern sultane ; while much less elegant that his ele - advocated soft styles, taking inspiration gant languid Directoire looks of 1908, they from the 1780s and 1790s. He featured grabbed more publicity. The New York Times “Romney Frocks” of white mousseline in the began including Poiret in its fashion cover - manner of Marie Antoinette’s chemise à la age in 1910, and the rest of the fashion press reine , and Empire waist à la Grecque styles followed, so that during the next three years of Directoire inspiration – all beginning a he dominated the fashion media and was few years before Poiret’s 1908 collection prominently featured in the pages of (North, 2009). The commonly held, but Harper’s Bazaar, Femina , and The Queen . retrospective, opinion that this was Poiret’s Poiret was one of the participating designers “New Look” in terms of impact on wide - in the exciting new fashion journal, La spread fashion and taste is simply not . In addition to other supportable in this light. houses, the roster also included Worth and On 3 October 1909, The New York Times ran Redfern. The freshness of La Gazette du a full-page article on Paris fashions, cover - Bon Ton ’s style brought life to the two ing the looks for Autumn and Winter 1910. houses, and their designs as represented in The article celebrates Orientalist styles for Les Modes were still stylish. Redfern’s rele - the season, that included Byzantine and vance outlasted Worth’s by a decade, but by Egyptian inspiration, but most importantly now both houses were starting to decline Russian styles. Although many designers and the glory days of each house had past. are mentioned, Poynter Redfern is given the The affect on the aristocratic lifestyle caused most significance, and the New York Times by World War I impacted both houses fur - asserts that the Russian style was his cre - ther, yet each carried on for several more ation: “Redfern is a master at these Russian years. effects, which he is using very much this Also emerging in this decade was the busi - season for street costumes. He has just ness of Gabrielle “Coco” Chanel. Starting returned from Russia whither he goes in millinery, Chanel expanded into sports almost every summer.” Maisons Worth, clothes and couture during the course of the Doucet, and Paquin are all mentioned decade. A few aspects of her development along with other houses, but Poiret is not and story are worth considering. Her early mentioned at all. affair with the English-educated horse breeder Etienne Balsam exposed her to an The 1910s and Beyond equestrian set that certainly wore English riding apparel and sport clothes, likely from Paul Poiret became ascendant to Paris fash - Creed, Burberry and Redfern among others. ion, finally by around 1911. His knack for This certainly contributed to her very lean publicity lead to elaborate Arabian theme and tailored aesthetic that stood in sharp parties, and the press was hungry for the contrast with Poiret’s opulence. But of even exotic in the few years prior to the war. more importance was Chanel’s choice of Perhaps with Charles Frederick Worth as Deauville as the location of her fist sports - his role model, Poiret postured himself as wear boutique. Redfern Ltd had a Deauville the eccentric artist, and put forth his cre - store for sometime, selling the company’s ations as great works of art. His designs of signature sports clothes; the young Chanel would have unquestionably been familiar sportswear and activewear of the 20 th with Redfern’s product and sport clothes Century, and the gradually growing casual business model. An examination of Redfern aesthetic. The Redfern aesthetic could be designs from the decade underscores the tied to such influential fashion design similarity to the Chanel aesthetic. A tailor minds as Claire McCardell, Vera Maxwell, made costume from Redfern illustrated in Calvin Klein, or Norma Kamali, whose La Gazette du Bon Ton from 1914, and a work was not typified by runway spectacle sport ensemble from in the collection of the but rather by real clothes. Kyoto Costume Institute, dated c. 1915, both show a marked similarity to Chanel Daniel James Cole designs that came a short time later. Many Professor, FIT New York of Chanel signature styles, while strongly associated with her today, were actually pio - Special Thanks neered long before by Redfern, including, Karen Cannell, Fashion Institute of Technology most notably, the use of jersey for sports - Nancy Deihl, New York University Susan North, Victoria and Albert Museum wear. As for Worth, he left a legacy into the 20th century was of lavish couture gowns and Bibliography ensembles that have always been a major Arnold, Janet: “Dashing Amazons: The Development of Women’s Riding Dress,” Define Dress: Dress as feature of the French fashion industry. Object, Meaning, and Identity , ed. De la Haye, Amy and Edward Molyneux earned the nickname Wilson, Elizabeth, University of Manchester Press, “the New Worth,” as an Englishman who Manchester, 1999. conquered Paris, and he showed great Barwick, Sandra: A Century of Style , George, Allen, and Unwin, London, 1984. prowess for frosting his sleek elegant flapper Batterberry, Michael & Batterberry, Ariane: Fashion The dresses with glitter. Perhaps his most signif - Mirror of History , Holt, Rhinehart & Winston, Boston, icant contribution to the fashion industry of 1979. the 20 th Century was his invention of the Boucher, François & Deslandres, Yvonne: Twenty Thousand Years of Fashion , Abrams, New York, 1987. persona of fashion designer as flamboyant Blum, Stella: Victorian Fashions and Costumes from great artist; and the persona took on even Harper’s Bazaar, 1867-1898 , Dover Books, New York, more outrageous form in some of his suc - 1979. cessors. This can be exemplified in recent Calloway, Stephen & Jones, Stephen: Royal Style: Five Centuries of Influence and Fashion , Little Brown and years with the personalities and manner of Company, Boston, 1991. Karl Lagerfeld, , Cole, Daniel James and Deihl, Nancy: Fashion Since Alexander McQueen, and John Galliano, 1850 , Laurence King Ltd., London, 2012. among others. Coleman, Ann: The Opulent Era: Fashions of Worth, Doucet, and Pingat , New York, Brooklyn Museum, The legacy of John Redfern may actually 1989. define clothing in the 20 th Century. The Cunnington, C.Willet: English Women’s Clothing in the intellectual lineage of Redfern is monumen - Nineteenth Century , Farber and Farber, London, 1937. tal and exemplary of the entire history of Cunnington, Phillis Emily: English Costume for Sports and Outdoor Recreation , Barnes and Noble, New York, th 20 century clothing: John Redfern men - 1970. tored Charles Poynter Redfern, who in turn DeLaHaye, Amy & Tobin, Shelley: Chanel, The mentored Robert Piguet, who mentored Couturiere at Work , The Overlook Press, Woodstock, Christian Dior, who lead the line to Yves 1996. DeMarty, Diane: Worth, the Father of Modern Couture , Saint Laurent. Redfern (and his companies) New York, Holmes and Meier, 1990. focus on the emerging market of sports Deslandres, Yvonne: Poiret , Rizzoli, New York, 1987. clothes lead the way to the categories of Fukai, Akiko, et. al.: The Collection of the Kyoto Costume Institute: Fashion - A History from the 18th to Tortora, Phyllis & Eubank, Kenneth: Survey of Historic 20 the Century, Taschen, Köln, 2002. Costume , Fairchild, 2005. Ginsburg, Madeleine; Hart, Avril; Mendes, Valerie & Troy, Nancy: Couture Culture: A Study in Modern Art Rothstein, Natalie: Four Hundred Years of Fashion , and Fashion , Cambridge, MIT Press, 2004. Victoria & Albert Museum, London, 1993. Worth, Gaston: La Couture et la Confection des vête - Goldthorpe, Caroline: From Queen to Empress: ments de femme , Paris, Chaix, 1895. Victorian Dress 1837-1870, Metropolitan Museum of Worth, Jean-Philippe: A Century of Fashion , translated Art/Abrams, New York, 1989. by Ruth Scott Miller, Boston, Little Brown and Co, Hollander, Anne: Seeing Through Clothes , Berkeley, 1928. University of California Press, 1993. Hollander, Anne: “When Mr. Worth was King,” Periodicals: Connoisseur , December 1982, 114-120. L’Art de la Mode (aka L’Art et la Mode) Hume, Sara Elisabeth: Charles Frederick Worth: A Harper’s Bazaar Study in the Relationship the Parisian Fashion Industry Les Modes and the Lyonnais Silk Industry 1858-1889 (MA Thesis), La Mode Illustrée SUNY Fashion Institute of Technology, New York, The Queen 2003. Kjellberg, Anne & North, Susan: Style & Splendor: The Wardrobe of Queen Maude of Norway , Victoria & Albert Museum, London, 2005. Lambert, Miles: Fashion in Photographs 1860-1880, B.T. Batsford, London, 1991. Laver, James: A Concise History of Costume and Fashion , Thames and Hudson, New York 1988. Lees, Frederick: “The Evolution of Paris Fashions: An Enquiry,” Pall Mall Magazine , 1903, 113-122. Millbank, Caroline Rennolds: Couture: The Great Designers , Stewart, Tabori, and Chang, New York, 1985. Metternich-Winnenberg, Pauline Von: My Years in Paris , London, Nash, 1922. North, Susan: “John Redfern and Sons, 1847 to 1892,” Costume , vol. 42, 2008. North, Susan: “Redfern Ltd. & Sons, 1892 to 1940,” Costume , vol. 43, 2009. Payne, Blanche: History of Costume from the Ancient Egyptians to the Twentieth Century , Harper and Row, New York, 1965. Perrot, Philippe: Fashion the Bourgeois: A History of Clothing in the 19th Century , Princeton University Press, Princeton, 1996. Poiret, Paul: King of Fashion , translated by Stephen Haiden Guest, J. B. Lippincott, Philadelphia/London, 1931. Reeder, Jan Glier: The Touch of Paquin: 1891-1920 (MA Thesis), SUNY Fashion Institute of Technology, New York, 1990. Ribeiro, Aileen: “Fashion in the Work of Winterhalter,” and the Courts of Europe , ed. Ormond, Richard and Blackett-Ord, Carol. National Portrait Gallery, London/Harry Abrams, New York, 1992. Steele, Valerie: Paris Fashion: A Cultural History, Oxford University Press, New York/Oxford, 1988. Taylor, Lou: “Wool Cloth, Gender, and Women’s Dress,” Define Dress: Dress as Object, Meaning, and Identity , ed. De la Haye, Amy and Wilson, Elizabeth, University of Manchester Press, Manchester, 1999. Using a Professional ferent logic because he estimates that the embeddedness of economics into society has Organization to Enhance not disappeared. He opposes to the view of firms as isolated units and points to the fact its Reputation. The Case that firms develop cooperative relationships of the Parisian Haute with other firms. Uzzi (1997) pointed out the fact that critical transactions are Couture. A Longitudinal dependent on firms that are embedded into social relationship networks. Study (1973-2008) It has been highlighted that social move - David Zajtmann ments can have a strong effect on the institutional change of an industry (Durand, Monin and Rao 2003). The fact that particular industries offer products that cannot be interchangeable has also been shown (Karpik 2007). However, according to our knowledge, little attention has been drawn to the way a professional network can be used in order to enhance the reputa - It has been shown (Selznick 1949) that an tion of its members. In our opinion, we organization’s objectives can be diverted by need to go further than this holistic the action of an ideologically homogeneous approach. minority. The membership collective organ - Therefore, the research gap that is the fol - ization may result from the presence of lowing: which kind of benefits does a firm selective incentives (Olson 1965), and may search for when joining a collective organi - also be characterized by the possibility of zation? quitting or publicly criticizing (Hirschman A longitudinal study of couturiers and fash - 1970). It can also result from the fact (Meyer ion designers operating in Paris between and Rowan (1977) institutions tend to 1973 and 2008 has been conducted. Two resemble each other. Moe (1980) considers types of sources have been utilized: annual that Olson relies on hypotheses as regards reports fr om the Fédération française de la individuals which are too restrictive, Olson couture, du prêt-à-porter des couturiers et considering individuals as rational, per - des créateurs de mode between 1973 and fectly informed and economically selfish. 2008 and interviews of past and present Olson, on his view, thinks that member - members of this Federation. ships with a political finding have a strong This work has enabled us to identify three role. Moreover, he introduces a leadership different themes explaining the reasons for dimension, the “political entrepreneur” joining and participating in a professional enabling participants like the personnel of organization: organizations or the outsiders to exist. We – The members of a professional organiza - accept from this view the accountancy of the tion seek to preserve their reputation. plurality of interest but also the recognition We believe that when the members of a of the role of third parties. professional organization seek protection Granovetter (1973 and 1975) takes from against counterfeiting the main motivation Polanyi (1944 and 1957) the concept of of this action is a protection of their reputa - “embeddedness” but considers it with a dif - tion.

14 – The members of a professional organiza - Couture as the Making of a Profession tion seek financial incentives. – The members of a professional organiza - Before the French Revolution, tailors (men tion seek for a privileged position towards or women) did not have the right to sell their national and international competi - their fabrics and were then only subcontrac - tors. tors, obliged de facto to a public anonymity. It appears that the first theme is the first in Parisian couture was really created under importance. the reign of Napoleon III. The mixture of This research enhances the fact that a label the renewal of a court life and the appear - (in this case the “ haute couture ” name) pos - ance of “ nouveaux riches ” gave an ideal sessed by a professional organization environment to the rise of a selective fash - constitutes a strong attachment of the mem - ion. Worth, who was English, first started bers to the network. The reputation has with the haberdasher (in French: “ mercier ”) been thus externalized by the adhesion to a Gagelin, and had an individual clientele collective organization. who asked him for advice on their clothes, In 1868 the Chambre syndicale de la cou - an attitude which was totally new, the tailor ture et de la confection pour dames et having traditionally no word to say. fillettes was created. In 19 10, this organiza - Worth then left Gagelin and opened his tion (with a slightly different name : own company on rue de la Paix in Paris. He Chambre syndicale de la couture, des con - established all the codes of the Parisian fectionneurs et des tailleurs pour dames ) “couturier ”: a clientele of celebrities (start - was dissolved. In 1911, the « couturiers » ing with the French emperor’s wife estimating they should have their own body Eugenie), a “ bourgeois ” style house, the created the Chambre syndicale de la cou - presentation of the clothes on real people, ture parisienne. The last institutional and most of all, an authoritarian style, mak - change took place in 1973 when two other ing the “couturier” the one who decides the bodies were created : Chambre syndicale de style of clothes. la mode masculine and Chambre syndicale Alongside and after Worth came a cohort of du prêt-à-porter des couturiers et des créa - couturiers (such as the Callot sisters, teurs de mode. These three groups created Doucet, Paquin or Poiret). All these indi - the Fédération de la couture, du prêt-à- viduals needed to be clearly distinguished porter des couturiers et des créateurs de from a lot of couturiers working in Paris in mode . order to justify their position and prices to a national and international elite clientele. It has been shown that couturiers can use Therefore the Chambre syndicale de la cou - two strategies to enhance their position: ture et de la confection pour dames et conservation strategies or subversion strate - fillettes was created in 1868. gies (Bourdieu 1975). Therefore, it is logical The Chambre syndicale de la couture was that newcomers using subversion strategies created in 1911. Article 4 of its status indi - question the current institutional frame. cates that no demand for admission should What is original in the case of the Parisian be made without the sponsoring of two high-end fashion is that the professional members of the Executive Committee of the organization has dealt with this contesta - Chambre syndicale. tion by creating a new umbrella Two events brought significant changes to organization which comprises both its his - this industry: the sequels of the 1929 crisis torical body and a new body which accepts and also the consequences of the Second the newcomers. World War. Before 1929, the French Parisian couture The Rise in International Competitors industry was a major exporter. Among the big clients were department stores in the In the 1950s a growing competition came United Kingdom and in North America. from Italy. An initiative by an Italian busi - The Smoot-Hawley Tariff Act from June nessman, Giorgini, led to the growth of 17, 1930, by raising United States’ import fashion shows in Florence, and to the inter - duties to couture related products (such as est of American buyers for the Italian offer. embroidery) to high levels reaching 80%, Since the 1970s the main fashion shows in made French couture garments totally Italy have taken place in Milan. However, uncompetitive. unlike the Parisian fashion shows, they mix During the Second World War, the different lines of same brands. A coordina - Chambre syndicale de la couture parisienne tion and promotion body, the Camera had to deal with a project of the German Nazionale della Moda Italiana (The occupation authorities who wanted to National Chamber for Italian Fashion) was transfer the Parisian Couture either to founded in 1958. Berlin or to Vienna. The authorities of the In the 1970s, the USA also developed their Chambre syndicale managed to make the own high-end fashion industry. Companies Germans renounce their project and seized such as Calvin Klein, Donna Karan and this opportunity to be the body, officially Ralph Lauren thrived without having a recognized by the French Government, fashion show in Europe. which will allow the different quantities of fabrics. This position was followed by the The Rise in National Competitors new Government after France’s liberation. Therefore, since then, a list of authorized On a national level, the couture industry Couture houses is published by the French was also challenged by national newcomers. Ministry of Economy. The so-called créateurs de mode (such as Additionally, since the 1930’s, it is the Kenzo) organized fashion shows outside Chambre syndicale de la couture which the official calendar and won high approval organizes the fashion show calendar. This from left-wing magazines. Some of the gives this organization a role that cannot be newcomers came from the retail industry, easily bypassed. others began their careers as fashion jour - In 1946, Christian Dior, leaving Lucien nalists. New couturiers decided also to mix Lelong couture’s house where he was work - haute couture and ready to wear. This led to ing, decided to open his own couture house. a first initiative: the founding of the He signed very fast a lot of licensing agree - Groupement Mode et Création. ments around the world. This licensing system has allowed a lot of couturiers to stay The Role of Fashion Journalists or how External in the couture industry. Actors can have an Influence on Institutional A stronger source of income was the per - Change fume and cosmetics activity. The case of Chanel, where the same shareholder con - In contrast to French gastronomy, where the trols both the couture and perfume Guide Michelin has over the years remained activities, is the most explicit example of this a recognized source of quality approval situation. (Durand, Rao, Monin, 2003), there is no admitted rating book or guide in the haute couture . Public approval depends as a con - sequence a lot on the fashion journalists. situation, asked to be removed from this cal - However, in France, a clear distinction endar. should be made between the situation As in French gastronomy, where the nou - between before 1945 and after. Before the velle cuisine movement was followed in end of World War II, the magazines for 1969 by a new name of the former Maîtres women reproduced the models of Parisian queux et cordons bleus de france in to Couture, and no other kind of fashion was Maîtres cuisiniers de france (Durand, Rao, considered. Two women journalists Hélène Monin 2003), the change of the power con - Lazareff and Maïmé Arnodin changed this figuration of the French high-end industry situation, using what they experienced dur - has resulted in a new shape of the profes - ing and after the war in English-speaking sional structures. countries. Back in France, the former It seems, although we cannot rely on founded Le Jardin des Modes and the latter knowledgeable figures, that couture activity Elle. These two magazines progressively has, during the 1980s, faced a decrease in introduced in their publications ready to the number of its clients. The main atten - wear products, sometimes even created in tion of young people, was, as in the 1970s, collaboration with producers and depart - concentrated on non couture designers, such ment stores. as Thierry Mugler, who organized dramatic This produced a marginalization of haute fashion shows. This situation may have led couture product for the young Parisian to an aging image of haute couture at the working in the fashion magazine industry. beginning of the 1990s. Later, generalist left-wing magazines such A dramatic change in the structure of the as L’Express , Le Nouvel Observateur or industry has also been noticed. A lot of Libération promoted new comers. brands are now subsidiaries of publicly owned companies. Therefore, these brands How did the Professional Organization Deal rely less on a professional organization to with Activists have help on tax or export matters, for example. The size of the companies has also This situation had to be addressed by the changed dramatically. For example professional body. Two phenomena Christian Dior couture 2009 turnover was occurred: a leading personality, Pierre € 717 million. Bergé, understood that the industry should In 2001, Chambre syndicale de la couture change its structure in order to stay at an changed its name to become chambre syn - important level. And some of these créateurs dicale de la haute couture and officialized in were eager to join the official body in order this way the use of the name haute couture. to benefit from the visibility of a common Parisian ready to wear show. Mr Bergé Reputation became the President of the new Chambre syndicale du prêt-à-porter des couturiers et The presence of reputation leads to the use des créateurs de mode. of a premium by firms, premium which also It must be noted that before 1973, the ready a compensation for firms’ investment in to wear collections of couturier houses were reputation (Shapiro, 1983). In activities presented during a week that was managed where status and reputation matter, a firm’s by another professional body: the current affiliations have an effect on follow - Fédération des industries du vêtement ing affiliations (Benjamin and Podolny, féminin. All the couturiers who were in the 1999) It has also been shown that organiza - tions can enhance their value by the build - of them also managed high-end fashion and ing and the exploitation of a reputation textile brands in Europe (Germany and (Shamsie, 2003). Italy). When the study was started (2008), one The themes that were treated were the rea - must notice that the members faced differ - sons for joining the organization, the ent situations. Some of them produce both benefits sought, as well the relationships haute couture and women ready to wear, with the other members. A thematic analy - some of them also produce menswear, some sis has been conducted. of them only produce women ready to wear, The use of two different sources (annual or only menswear. The designer of the reports and face to face interviews) has brand may either be exclusive, or may work allowed us a triangulation of our data. for his/her own brand or even for other brands. If we take the case of young design - Results ers, some of them absolutely need to participate in a fashion show in order to It appears that the members of the gain audience. But in this case, some of Federation had, since their entry into this them are attached to a regular participation organization, a clear idea about their aims in either the “ haute couture ” or the ready to and that the reputation given by the mem - wear week, but others will, for cost reasons, bership to this organization, was the main ask to skip a season of presentation. motivation of membership. As in the cuisine industry, where a Chef- – The members of a professional organiza - restaurant dyad can be observed (Durand, tion seek to preserve their reputation Rao, Monin, 2003), we can, since the 1980s, The reputation of “couture” is used as a way observe a designer-house dyad which com - to allow diversification into other products. plicates the situation. The objectives of For example, one former CEO of a major these two parties could in fact be different ready to wear brand of the 1980s explained and sometimes divergent. to us: “ It’s like in the Bible, at the beginning Direct access to all the reports of the was the Word, and the Word became flesh. Fédération française de la couture, du prêt- Design is the first level, it’s like in the Bible, à-porter des couturiers et des créateurs de and after, classically, we learn that in school, mode between 1973 and 2008 has been pos - design enhances the product. And the product sible. The President and Executive Director will generate a brand. (..) I had this pattern in of the federation have been interviewed. mind as soon as I joined the company ”. The Executive Director of the French Another one hence told us: “I gave my Clothing Industries Federation has also designer a total freedom, within the limits of a been interviewed. We also met major fash - budget, for the couture collection, but the ion consultants who were in the business ready to wear collection he had to respect a col - between 1955 and 2010. We finally met par - lection plan” . ticipants of the Federation, including The access to the fashion show calendar former CEOs of companies such as Dior, seems to be the most important motivation. and Kenzo and also young As one referee told us: “I think that funda - designers who have recently joined the mentally the first motivation of a newcomer is Federation. the calendar” . Some managers were the CEOs of both The annual meeting reports show also that couture and ready to wear houses, others the aims of the members were quite clear. managed only ready to wear houses. Some Hence, the first annual meeting report from 1976 quotes the President saying that: “as identity movement. We also think that, in concerns haute couture , the idea was to pre - order to renew old houses, the transgression serve it, to protect a non substitutionable logical has been introduced in these houses, brand image and to prove it was not dead”. whereby, by staying in the couture scheme, – The members of a professional organiza - the privileges (as regards the aristocratic tion seek financial incentives image given by this label) are maintained. The search for financial incentives was also The challenge underlined by Bourdieu in a motivation for membership. Two main tax 1975, attracting young clients and also new deductions have thus benefited the mem - members of the “dominant” classes, was in bers of this organization: until 1979 a pay our opinion the same in the 1990’s, and back of fabrics used for haute couture collec - therefore superficially related to the 1968 tions to the condition that they were movement. produced in France, and from 2008 a tax As a conclusion, we think that professional deduction for the expenses related to the groups, in what Karpik (2007) called “ sin - design of clothing collections (whether they gularity economics ”, tend to be more a tool be haute couture or ready to wear products) for a public judgment hierarchy than a tra - ditional lobbying body. By incorporating – The members of a professional organiza - new players, they can ensure themselves to tion seek a privileged position towards their be a strong tool and to face international national and international competitors competition. What is significant in this case Members from the organization ask to be is that very few defections can be found. protected by the actions from national com - We also consider that this study showed that petitors, in particular a protection against a purely “ monetary ” approach (by this infringement. we mean thinking in direct benefits) should They also ask their organization to promote be completed by a view considering the their activities at an international level. long-term objectives of the firms where in They also ask the organization to pay atten - this case reputation reveals to be a decisive tion to the politics of the same industry’s factor. organization in other countries. This was the case with Italy, a country with whom an David Zajtmann agreement has been signed by the two pro - Professor, IFM fessional bodies representing high-end fashion.

References Contribution to the Theory of Collective Action Animo A., Djelic M.-L. 1999. The Coevolution of New Organizational Forms in the Fashion Industry: A This study has brought in our opinion some Historical and Comparative Study of France, Italy and contributions to the theory of collective the United States, Organization Science , Vol. 10, 5: 622- 637. action. Benjamin BA, Podolny JM. Status, Quality, Social We do not agree that social changes are the Order in the California Wine Industry, Administrative reason for the changes of the professional Science Quarterly , 44: 563-589. structure. Rather, in accordance with Bourdieu P., Delsaut Y 1975. Le couturier et sa griffe : contribution à une théorie de la magie. Actes de la Bourdieu (1975), we think that the political Recherche en Sciences Sociales , 1: 7-36. vocabulary is being used by newcomers to Durand R, Rao H, Monin P. 2003. Institutional make themselves a place in the market Change in Toque Ville: Nouvelle Cuisine as an structure. We however agree that we face an Identity Movement in French Gastronomy, American Journal of Sociology , 2003, vol. 108, 4: 795-843. Grumbach D. 2008. Histoires de la Mode . Editions du Regard: Paris. Hirschman A.O. 1970 (2nd Print, 1972). Exit, Voice and Loyalty, Responses to Decline in Firms, Organizations and States. Harvard University Press : Cambridge, Mass. Kamitsis L. 2004. Dictionnaire International de la Mode : Editions du Regard, Paris. Karpik L. 2007. L’économie des singularités . Gallimard: Paris. Lanzmann J.. Ripert P. 1992. Cent ans de prêt-à-porter . Editions P.A.U.: Paris. Meyer, J.W. Rowan B. 1977. Institutionalized Organizations: Formal Structures as Myth and Ceremony. American Journal of Sociology 83:340-63. Milza P. 2004. Napoléon III . Perrin: Paris. Moe T. M. 1980. T he Organization of Interests. Incentives and the Internal Dynamics of Political Interest Groups . The University of Chicago Press: Chicago. Olson M. 1965. The Logic of Collective Action , Harvard University Press: Cambridge, MA. Polanyi K. 1944. The Great Transformation. The Political and Economic Origins of our Time . Beacon Press: Boston. Polanyi K. 1957 in Polanyi K. and Arensberg C. 1957. Trade and Market in the Early Empires. Economies in History and Theory. The Free Press: New York. Shamsie J. 2003. The Context of Dominance: an Industry-Driven Framework for Exploiting Reputation. Strategic Management Journal 24(3): 199- 215. Shapiro C. 1983. Premiums for High-Quality Products as Returns to Reputation. The Quarterly Journal of Economics 98(4): 659-680. Selznick P. TVA and the Grass Roots. 1949. A Dtudy of Politics and Organization . University of California Press: Berkeley and Los Angeles. Veillon D. 2001. La Mode sous l’Occupation (1939- 1945), Payot: Paris. Uzzi, B. 1997. Social Structure and Competition in Interfirm Networks: The paradox of embeddedness. Administrative Science Quarterly 42: 35-67. Vertical Integration in the their economic model– and the consequen - ces it has had on the way the luxury sector Luxury Sector: Objectives, functions. A company is considered to be vertically Methods, Effects integrated when it is present at a number of Franck Delpal successive stages of the production process. However, a number of studies have outlined the various methods of integration, that go well beyond the simple full ownership of two successive production phases. Harrigan thus defines the different degrees of integra - tion implemented by companies, from complete control to total dis-integration via intermediary levels that concern only a selection of the production process or forms of control that are alternative to ownership (quasi-integration, vertical restrictions…). This analytical table corresponds more to The luxury market has grown impressively the diversity of the practices observed. over the past three decades. The figures Schematically, in the case of luxury fashion, supplied by Bain & Company testify to this we can outline four distinct phases in the fact: sales of luxury products went from 72 making of a product: billion Euros in 1994 to 168 billion Euros in 2010, which makes an annual growth rate – Design; average of 5%. Fashion items (ready-to- – The production of intermediary goods wear, shoes, leather goods) still retain a (fabrics, leathers…); considerable market share as they represent – Manufacturing the finished product; half of this figure. In addition to its econo - – Distribution, wholesale then retail. mic weight, the luxury fashion sector merits We are aware that this level of simplification analysis due to the evolution in its structure forces us to set aside numerous essential (number, size and organisation of compa - divisions in a company (quality control, nies) over the past few years. Companies advertising…) in order to solely concentrate whose main profession is fashion have on the activities that are visibly necessary to experienced much more structural change actually make the product. While design than other companies that began as jewel - remains the backbone of all luxury compa - lery makers, watchmakers or perfumers. nies, we will highlight the fact that most of The big players in the market are thus sho - them are heavily involved in the production wing a higher level of internationalisation phases, whether this is directly or indirectly, and diversification, as well as much more and in distribution. In addition, some of the vertical integration compared to earlier bigger names have already taken over the decades. Vertical integration as a strategic supply of raw materials for the most part in orientation is the subject of this paper. leather tanning. The objective is to outline the causes of the I am basing my findings on a monographic process through a series of case studies analysis of French and Italian luxury com - –whether it results from changes in the panies that was carried out for my PhD for basic market conditions or is a deliberate the université Paris-Dauphine as well as a strategy on the party of the players to change series of studies carried out by the Institut

21 Français de la Mode. This approach was – Technological change. Faced with rapid chosen as the luxury sector is not like any technological advances, companies may other sector as it encompasses a part of other choose to outsource in order to avoid inves - sectors (clothing, accessories…) and doesn’t ting heavily in technology that may not last. really exist as an aggregate. The terms that I should add that on a more managerial define the content of the statistical data that level, new technologies and information is used to scientifically validate economic systems have enabled the implementation theory do not take it into account, which of more complete and more reactive chec - makes any in-depth statistical analysis of king procedures which reduce the risk of the luxury business very complex. This suppliers and sub-contractors not respec - limitation is compounded by the availability ting their commitments. or lack of data in a sector where there is a – Market globalisation. This has led to a very high level of secrecy. The main sources redistribution of the cards between compa - of these monographs are the available litera - nies, as they now have to face competition ture about the companies (books, annual from other countries. Opening borders and reports, case studies, press) in addition to a more and more out-sourcing abroad often number of semi-directive interviews with go hand in hand as shown by McLaren. some companies who accepted to answer These decisions rely on strategies devised in my questions. a macroeconomic environment in full upheaval. In the fashion sector, not inclu - Originality in the luxury industry ding luxury, the growing opening of economies has considerably upset the value A number of writers have covered the gro - chain. Now, most companies only retain the wing disintegration of companies over the activities that are essential to the creation of past few years linking this to a certain num - added value and the perception of that ber of changes on an individual and global added value by the client (design, distribu - level. Taking computers as an example, tion) and outsource manufacturing stages Quelin thus highlighted five factors that to sub-contactors located in countries where have pushed companies to outsource a part the cost of labour is lower (North Africa, of their activities. Asia…). – Focus on strategic activities. Only func - The fact is that the luxury sector has gone tions that contribute significantly to the the opposite way. Luxury companies have competitive edge of the company remain in- in fact gone for more integration in the pro - house. duction phase. – Economies of scale and cost. Quelin notes My thesis was based on the study of twenty that “in some cases, economies of scale are case studies of companies. Here we present easier to reach by the sub-contractor than ten of those which seem to best represent the user”. A sub-contractor that bulks up this mutation. These companies all have orders from a number of principals is thus different countries of origin, ages, speciali - in a position to produce more effectively sations and sizes. than if each principal owned their own pro - duction outfits. – Reorganisation policies. Companies have overall tended to refocus on their funda - mental profession and to get out of activities that are not directly related. Table 1 – Luxury companies that control the value chain upstream: how and why

RAW MATERIALS EXPLANATIONS PROVI - COMPANY GROUP MANUFACTURING CONTROL SOURCING POLICY DED BY THE COMPANY Bought outside the 12 production sites in France for group for the most bags and small leather items. part. The company has 3 workshops in Spain, 2 in the U.S. The need to fulfil a just recently bought the LOUIS VUITTON LVMH all for leather products. 4 shoe growing demand and Tanneries de la workshops in Italy. Clothing manu - to maintain quality. Comète, in Belgium. facturing is outsourced. Fabric manufacturing is outsourced. 5 production sites in leather goods and shoes all in Italy run by local Outsourced. The com - partners. The company bought out Baby Dior is seen by pany commits many its licensee for children’s clothing the company to be a months in advance to (les Ateliers Modèles). CHRISTIAN high-potential acti - Christian Dior future purchases in Manufacturing takes place in France DIOR COUTURE vity in terms of image order and Thailand. The haute couture and turnover. to reserve the best qua - workshop is still in existence. In lity leather. ready-to-wear, the company deve - lops products but outsources manufacturing. The company possesses The company also controls 11 The guarantee of the 6 production sites for leather goods production sites. best possible quality, textiles and 4 Ready-to-wear is outsourced to sub- the need to train Hermès tanneries. it also HERMÈS contractors though the craftspeople for years International has a minority share - company ensures the design, deve - so that they can work holding in the lopment, pattern cutting, sourcing for the company. manufacturers Perrin, materials and quality control… who specialise in silk

The Gucci Group bought out To control all of the YVES SAINT PPR Mendès in 2000. Mendès was licen - development and Outsourced. LAURENT (Gucci Group) sed to produce YSL’s ready-to-wear distribution process. line and owned 25 YSL boutiques.

The company owns production out - To control quality fits for ready-to-wear, shoes, bags, ARMANI Armani Outsourced. and skills. knitwear, denim and children’s clothes. The company has three workshops (Casellina for leather goods, Baccio Outsourced. Gucci has for shoes Novara for women’s about 200 main sup - ready-to-wear) but the employees pliers for materials for Direct control of PPR focus on product development and GUCCI bags, 267 for elements quality, costs, timing, (Gucci Group) quality control. Production is for shoe manufactu - deliveries and stocks. carried out by a number of sub- ring. contractors: 500 in leather goods, 26 shoe factories, 4 of which are controlled by Gucci. The company owns production sites for accessories (leather goods), and partially for shoes and ready-to- Quality, unique BOTTEGA PPR Outsourced. wear. The latter is manufactured in skills, protection of VENETA (Gucci Group) part in factories that belong to the craftsmanship. Gucci group. RAW MATERIALS EXPLANATIONS PROVI - COMPANY GROUP MANUFACTURING CONTROL SOURCING POLICY DED BY THE COMPANY

The company produces most of its To control quality, Della Valle products (shoes and bags) in its own TOD ’S Outsourced. efficiency and brand Group factories. Casual garments, jewel - prestige. lery, and glasses are outsourced.

For shoes, bags and clothes, the company relies on a network of SALVATORE Outsourced to small workshops, all located in Italy. Ferragamo Flexibility, efficiency. FERRAGAMO 450 suppliers. The company focuses on product development and checking the finished product.

9 company production divisions produce knitwear, ready-to-wear, belts, shoes, leather clothing and Control production bags. Certain production outfits are skills, production PRADA Prada Outsourced. shared with Miu Miu, another costs, flexibility and brand belonging to the Prada quality. Group. The company makes most of its own prototypes, most samples and a part of the finished products.

Sources: Annual reports, press, interviews. hugely in its luggage and leather goods pro - duction site in Pantin that employs quite a If we start with upstream control (manufac - number of skilled craftsmen and they have turing models or in certain cases also bought certain French manufacturers semi-finished products such as textiles and such as the Manufacture de Haute leather), it would appear that a number of Maroquinerie and the Gordon-Choisy tan - luxury companies have a base, however nery. Christian Dior put an end to a number limited, in the production sphere. We of licences in the second half of the nineties should however point out that this concerns and is currently taking back control of all mainly leather-related activities (luggage leather goods. In the same way, Gucci and and shoes), and that clothing manufactu - Yves Saint Laurent followed this strategy of ring is outsourced for the most part. taking back control of production and put Retaking control upstream in the value an end to a number of licences. chain happens in two ways: the complete The arguments put forward by the compa - vertical integration of certain activities and nies to justify the integration of certain putting a stop to manufacturing licences for activities do throw up some questions others, going back to a focus on sub- however. The need for high-quality and contracting. In the latter, companies have consistent product or the existence of a spe - taken back control of product development, cific skill that can not be found outside the production, and quality control. company are pre-requirements in the We should point out that these integration luxury industry but cases of integration measures are recent, most having taken involve in most instances just a part of the place in the nineties. Louis Vuitton realised production and a few segments of products that its original Asnières workshop was no (for the most part leather goods and acces - longer big enough to satisfy the demand for sories). Are the products made by product so they opened a second workshop sub-contractors of inferior quality compa - in 1977 and are still opening new produc - red to those made by the company itself? tion units to this day. Hermès has invested The answer is probably no. In addition, if the integration went hand in hand with tiques, department stores…). skills, what can we say about Christian Dior These forms of direct control are supple - which produces its own bags but contracts mented by strategies that are aimed at out its ready-to-wear? By this reasoning, ensuring the correct manufacturing or dis - one could be led to believe that the star of tribution by third party companies with Parisian fashion does not have the specific whom the luxury companies collaborate skills to produce clothes outside its haute (retailers, sub-contractors…). This is refer - couture activities, which is obviously not the red to as “quasi-vertical integration”, where case. So in this paper, using economic litera - the market conditions made the direct ture and publications, we will explore the control of production or distribution unne - reasons that push luxury companies to inte - cessary as Blois depicted taking the example grate one activity over another and to what of luxury car manufacturing. extent. We will see that economic issues are Companies claim the reasons for this gro - never far away when these choices are wing shift to the end of the value chain are made, as well as the environment in which most often the need to have a coherent these firms evolve, marked by a weakening image and offer on a worldwide level with of production sources in Western Europe. disappearing trade restrictions, the guaran - Table 2 – The growing shift of luxury companies toward the end of the value chain (Forward integration)

NUMBER OF IN -HOUSE NUMBER OF IN -HOUSE PERCENTAGE OF RETAIL IN COMPANY GROUP STORES (2003) STORES (2010) TURNOVER (2010)

LOUIS VUITTON LVMH 317 459 > 95

CHRISTIAN DIOR Christian Dior 159 237 81 COUTURE

HERMÈS Hermès International 125 193 84

YVES SAINT PPR (Gucci Group) 58 78 55 LAURENT

ARMANI Armani 119 130 68

GUCCI PPR (Gucci Group) 198 317 73

BOTTEGA VENETA PPR 59 148 85

TOD ’S Della Valle Group 95 159 49

SALVATORE Ferragamo n.a. 312 70 FERRAGAMO

PRADA Prada n.a. 319 70 (group)

Sources: Annual reports, interviews tee of a better service during and after sales n.a: not available and better customer knowledge. Again, these explanations do not, to me, seem to be The situation is even clearer in the develop - telling the whole story as to why companies ment of distribution/retail. All of the luxury want to control their own distribution/ companies studied have shifted towards a retail. We will also examine the integration high level of integration in distribution over theory in order to analyse the ramifications recent years. The share of sales in retail now of the movement. largely exceeds that of external clients (bou - The theoretical justifications for vertical Backward integration enabling the substitu - integration tion of inputs from a firm with a monopoly The economic theory behind vertical inte - is also justifiable in order to reduce depen - gration can be outlined in three main dence on this supplier. Vertical integration arguments that make integration attractive is, in addition, a means to close access to the to business: growth in market power (1), market and prevent other companies from economies of scale and increased efficiency producing their products by buying out a (2), reduced uncertainty (3). supplier. Salop and Sheffman analysed the As Harrigan notes, the benefits of vertical case of a dominant company that managed integration are often studied on a microeco - to increase costs for the competition nomic level, based on the behaviour of one through integration. This can be compoun - single firm, frequently in a monopolistic ded by adding all types of entrance barriers situation. However, vertical integration also put into place by established firms to pre - intervenes in competitive situations as a vent or slow down the arrival of new means to stand out. It then takes on a strate - competitors. Forward integration has an gic dimension in as much as it guarantees important role here as we will see in the case the companies in question a competitive of the luxury industry. edge under certain conditions. This is for In terms of the search for savings and effi - example the case for companies that prac - ciency, a number of themes have been tice double mark-ups. The most written examined. Bain, who was one of the first about theoretical case is that of two succes - writers to show the importance of the verti - sive monopolies, with a unique cal integration process to the economy, manufacturer that sells to one client only. notably put the emphasis on the conditions Both add a mark-up maximising their of the emergence of integrated companies monopolistic profit margin and limiting the for technological reasons. He thus mentio - quantities sold. The existence of only one ned the case of companies led to carry out company, present in two stages of manufac - two production phases conjointly due to the turing and retail should improve the interdependence of two technologies. The well-being of the economy by enabling a most frequent example used is that of steel larger number of individuals to consume production where then heat given off by the the products at a lower cost and enabling tasks upstream means the steel doesn’t need the company to have a bigger profit margin. to be reheated for rolling. This particular Firms may also be tempted to integrate benefit of vertical integration gets the least towards the end of the value chain in order amount of coverage in the literature. to make sure the right type of effort is being On the other hand, the exploration of the made to highlight their products. Visibility, multiple savings that result from integration customer advice, the qualitative environ - and the higher level of efficiency it can lead ment and after-sales service reflect to take the lion’s share of research on the positively on the manufacturer’s products, subject. The sine qua non of sources for this which explains why they might wish to take type of research is the theory of transaction the place of external retailers that are less costs as defined by Williamson using sensitive to this objective. A number of Coase’s celebrated work. This theory com - researchers have proven a statistical link pares the cost of an action carried out inside between the effort a manufacturer puts into the firm with the cost of a transaction with promoting the products and the tendency an external company hired to do the same towards forward integration. job. The transaction costs cover the traditio - nal costs (land, work, capital, materials…) (keeping of stock by the sub-contractor, to which are added the extra cost of mana - delivery deadlines, and access to the pro - ging the relationship between the duction site, product specifications, the companies over time (sharing information, sub-contractor’s marketing policy…). legal costs, organisational costs, the cost of inefficient behaviour…) Why are luxury companies moving more and A number of factors influence transaction more towards vertical integration? costs that businesses need to pay: uncer - tainty about partner’s possible behaviour, Integration practices in the luxury fashion the complexity of the action to be taken, the sector as is evident from the monographs size of the specific investment needed and and interviews carried out here, tend to vali - non refundable costs, the frequency of date certain economic theories: transactions… – Production efficiency and retaining manu - A number of theoretical and empirical stu - facturing profit margins . The savings dies have tested all of these issues achieved thanks to integration (the search – The results of these tests, based on diffe - for efficiency, retaining manufacturing pro - rent methods and samples, come up with fit margins) are very present in the theories. the same answers overall. However, this argument is valid only for So, the level of integration downstream will activities where the manufacturers make a be equal to the extent the company tries to profit on their sales which is only the case in highlight its products; and symmetrically leather goods in France. Indeed, as is evi - the level will be lower when the retailer dent from INSEE documents on garment shows it is making a big effort. In most manufacturers, their operating results have empirical tests, vertical integration is corre - been in the red for many years (their opera - lated positively with the development of ting profit margin was - 3,3 % in 2007) specific skills by the service provider which explains along with other elements (human capital specificity) or by any (complexity, seasonality…) why luxury demand for specificity on the part of the companies do not wish to buy out their sub- client. contractors. It is important to note that the – According to Williams’ theory, the objec - high level of growth in the accessories mar - tive of this integration is to reduce the ket (shoes and bags) compared to chances of a « hold-up » by suppliers that ready-to-wear has reassured companies on have become indispensable. This theory the low level of risk of their production was criticised by Coase and Simon. capacity being underused. – The complexity of the production process – Ensuring delivery of inputs . Still upstream, is also one of the recognised reasons behind in line with the economic theory of the gua - vertical integration. As for uncertainty, it has rantee of the offer, the rarity of leather in a knock-on effect on integration but only Europe has led to tanneries being bought upstream. out by certain luxury companies in order to Without going as far as total integration ensure their supply. Adelman’s work has which can be costly and inflexible, vertical already told us that in a market in a big restrictions implemented by companies also growth phase, a firm can be incited to inte - enable them to establish advantageous rela - grate upstream out of fear that the suppliers tionships with their sub-contractors. With of intermediary goods are unable to fill their greater bargaining power, they can impose orders. their views on a great number of points – Aversion to risk and integration for survival. locally available skills have enabled compa - Integration that happens to avoid being run nies to constitute their own production for all intents and purposes by the sub- outfits. However, the shoe sector has practi - contracting company is a case that is more cally disappeared in France; even for luxury specific to luxury and can be seen as a risk products and the biggest brands were obli - aversion tactic. If a client controls the lion’s ged to set up their own production outfits in share of a company’s turnover or if it is dee - Italy or to work with Italian sub-contractors. ply involved in its management through the Table 3 – Production networks and integration orders it gives, the supplier can turn against choices made by French companies it in case of financial difficulty. LEATHER Certain professionals interviewed even CLOTHING SHOES GOODS admitted that cases where a principal covers over half the turnover of a sub-contractor DIRECT are not rare, and the percentage is someti - CONTROL Very rare Frequent Frequent mes even higher. The risk is far from BY BRANDS negligible in as much as numerous vertical Exists (in STATE OF Practically restrictions and quasi-integration scenarios women’s FRENCH SUB - Weakening non- leave very little room to manœuvre for part - ready-to- CONTRACTING existent ners of the luxury companies. wear) – Production and integration branches. Following on from Chandler (1962) and Source: IFM, Distribution of added value. Arrow (1975), Bolton and Whinsto high - – The advantages of integrated light the need to compare the presence of a distribution/retail. As for integration in retail firm at the production and distribution (forward integration), the facts comply with levels with the nature of the relationship the economic theory that says that integra - that already exists within the manufactu - tion is more common for companies with a ring and distribution network of the branch strong brand value (Lafontaine and Slade, under examination. Taking this as a starting p.632). It is clear that this groundswell point, we examined all of the examples in movement followed by all luxury compa - the luxury industry in detail. Indeed, the nies fulfils the need to make a huge effort in clothing, leather goods and shoe sectors valorising the products of the company in as each have their own specific characteristics. much as its economic viability relies on In France, clothing still has its own network cumulating profit margins. Richardson also of manufacturers, essentially women’s highlighted the role of a retail network and ready-to-wear specialists, on whom the its capacity to react to market changes quic - principals can rely and which avoids them kly. The fact is that luxury companies are having to integrate. They do however pos - increasingly being run from the end of the sess a high level of market power in as much value chain and that feedback from stores as, after the huge movements of delocalisa - constitutes information of the highest signi - tion in the eighties and nineties, luxury ficance to ensure the success of the companies are the only ones left who still company. The domination of retail has also manufacture in France. However, the resulted in a demand for a more flexible French leather producing sector is weak. organisation. In fact, unlike the wholesale The leather goods sector is still in one piece schema where only the items that are sold which has enabled companies to integrate, are produced, the company that sells in France for the most part. In Italy also, through retail must stick to market changes The latter has, as we have seen, taken over to avoid being left with costly left-over the production end, either through direct stock. control or through the favourable market – Quasi-integration . Finally, in terms of ver - conditions that result from their huge bar - tical restrictions, those that exist in the gaining power (earmarking the best leather, luxury universe are numerous. In addition dictating the most advantageous delivery we should add that even when luxury com - deadlines…). panies fit the model of sales to outside As for distribution/retail, the shift to the end distributors (department stores, multi- of the value chain by established firms and brand boutiques); they manage to sell on their high level of internationalisation their own terms when their market power is makes the “entry ticket” to the market all strong enough. A desirable brand can thus the more difficult to obtain. If luxury com - impose a certain number of conditions on panies are for the most part renting the retailers in order to ensure the correct sel - retail spaces they occupy, their longevity ling conditions for its products. What Hata means that their rental arrangements are has to say about the development of Louis much more favourable than thus available Vuitton in Japan is edifying on the subject. to newcomers. In addition, the fact that Conditions of various natures are often some belong to big multi-brand groups mentioned by companies: the definition of gives them more leverage in negotiation as the minimum quantities purchasable, the they have the power of all of the group’s predefinition of the purchasable range so brands behind them. the identity of the collection is respected So the vertical integration process plays the regardless of the store… role of what is known as strategic engage - ment in game theory. The consequences of vertical integration in The established firm makes it known to the luxury market potential newcomers that it is massively and irreversibly committed to the market. The This stricter vertical integration by some newcomers thus understand that the entry players is, as we have seen, partly the result fee is too high for them and they decide not of strategic considerations: guaranteeing to get into competition. supplies and possibly hampering the com - This increase in the number of barriers at petition, preventing or slowing down the the entrance point explains the ever increa - arrival of new competitors. sing concentration of the structures of the In the case of luxury companies, the barriers luxury industry and the reasons for which at the entrance are already quite high: a despite the high growth levels, few new company must have a recognised brand, an companies have emerged over the past established reputation for quality pro - twenty years. ducts… However, this point is not always the most difficult to handle. Recent relaun - Franck Delpal ches (Balenciaga, Vionnet…) show that it is IFM, University of Paris-Dauphine possible to rely on the legacy of a defunct brand to become competitive. These pre- References: requirements are compounded by the huge economic constraints that jeopardize the Adelman M.A (1955) Concept and Statistical room to manœuvre a newcomer has up Measurement of Vertical Integration, in Stigler GJ (ed) Business Concentration and Price Policy , Princeton against the establishment. University Press. Antomarchi Ph (1998) Les Barrières à l’entrée en écono - mie industrielle , L’Harmattan, Paris. Arrow K.J (1975) Vertical Integration and Communication, Rand Journal of Economics . Bain J.S (1956) Barriers to New Competition , Harvard University Press. Blois K.J (1972) Vertical Quasi-Integration, Journal of Industrial Economics . Bolton P, Whinston M.D (1993) Incomplete Contracts, Vertical Integration and Supply Assurance, The Review of Economic Studies , vol. 60 n°1. Chandler A.D (1962) Strategy and Structure: Chapters in the History of the American Industrial Enterprise , Cambridge, MIT Press. Coase R.H (1937) The Nature of the Firm , Economica. Dixit A (1982) Recent Developments in Oligopoly Theory, American Economic Review , vol. 72, n° 2. Gabrié H (2001) La Théorie williamsonienne de l’in - tégration verticale n’est pas vérifiée empiriquement, Revue économique , vol. 52, n°5. Harrigan K.R (1984) Formulating Vertical integration strategies, The Academy of Management Review, vol. 9, n° 4. Hata K (2004) Louis Vuitton Japon , Assouline. Joskow P.L (1985) Vertical Integration and Long-Term Contracts: The Case of the Coal-Burning Electric Generating Plants, Journal of Law, Economics and Organization. Lafontaine F, Shaw K.L (2005) Targeting Managerial Control: Evidence from Franchising, Rand Journal of Economics . Lafontaine F, Slade M (2007) Vertical Integration and Firm Boundaries: The Evidence, Journal of Economic Literature , vol. 45, n° 3. Mahoney J.T (1992) The Choice of Organizational Form: Vertical Financial Ownership Versus Other Methods of Vertical Integration, Strategic Management Journal , vol. 13, n° 8. McLaren J (2000) “Globalization” and Vertical Structure, American Economic Review , vol. 90, n° 5. Quelin B (1997) L’outsourcing : une approche par la théorie des coûts de transaction, Réseaux , n° 84. Richardson J (1996) Vertical Integration and Rapid Response in Fashion Apparel, Organization science , vol. 7, n° 4. Salop S.C, Scheffman D.T (1983) Raising Rivals’ Costs, American Economic Review , vol. 73, n° 2. Williamson O.E (1985) The Economic Institutions of Capitalism , The Free Press. Luxury: An Industry Olivier Bomsel 2 defines a new type of goods known as “significant goods” which are in Between Heritage and addition to the goods of research and expe - rience that economists already know. These Modernity significant goods do not specifically serve “a Dominique Jacomet, Franck Delpal strict demand, but are impulse buys that suggest experiences to the purchaser”. The central value of these goods is the message they convey thus underlining the impor - tance of the signalling of the products (through advertising, quality labels, brands…). Taking the example of Louis Vuitton, he feels that a high level of vertical integration is necessary for these types of goods to succeed. It is interesting to note that both writers make the connection bet - ween the overall evolution of the economy and the business models necessary to adapt to the economy. Here we wish to show that The aim of this article is to show that the luxury companies are mines of information specifics of the luxury industry mean that, on today’s economy in terms of the way they to a certain extent, it is one of the sectors function and their organisation. To do so, where new business model trends are more we will take a micro-economic approach to clearly visible. Whether this is a question of outline the main characteristics of the diffe - product differentiation pushed to the limits, rent business models in the luxury industry. the weight of the representative and the immaterial, the globalisation of markets or The Rebirth of an Industry the need for absolute control over design and distribution in a market where reputa - In the past, the attitude to the production tion and coherence are cardinal values, the and consumption of luxury products was components of the luxury economic model not without contrast. The siècle des display a level of modernity that would have Lumières defended luxury as is evident been difficult to predict twenty years ago. from reading Montesquieu, Mandeville, Luxury companies are the main players in Voltaire or Saint-Lambert’s article in the the new age of capitalism referred to by Encyclopédie 3. Luxury was considered to be some writers as cognitive capitalism, by a source of wealth for individuals and for others as the economics of singularity, and the state. As such, they were breaking with a others still as the economics of the immate - long tradition that Henri Baudrillart 4 refer - rial. Yann Moulier Boutang outlined the red to as “ rigoriste ” (strict), that had notably main traits of cognitive capitalism 1. He cites been supported by the Greek stoics and the primacy of the immaterial investment French moralists (Montaigne, Pascal) who over the material investment and the end of thought superfluous spending was to be the division of work that holds back innova - frowned upon. tion in favour of organisations that make In his Political Economics Class 5, Charles the development of quickly-made complex Gide tries to bring both strains together. He products in small quantities possible. proposes the idea that luxury consumption

31 should not have to take the blame for the The different luxury markets in 2010 rapid change in needs and technology: the Turnover in Share of market Sector luxury of one era is no longer a luxury in the billion euros as a whole Ready-to- decades that follow: “ ... At certain times in 45 27 % history, a shirt was considered to be an item of wear great luxury and constituted a royal gift. A Accessories 44 26 % thousand other objects can be said to have the Perfumes & 37 22 % same story […] It is not possible to condemn a cosmetics Watches & 32 19 % purchase from a moral point of view or even jewellery from an economic one for the sole reason that Tableware 5 3 % it fulfils a superfluous need, that is to say Other superfluous right now, without being able to 5 3 % products predict what will happen in the future ”. Total 168 100% However, luxury consumption should not take over too great a part of limited produc - Source: Altagamma tion elements (earth, work and capital) so as to avoid the reduction of social well-being. Luxury has become a veritable industry. In the seventies, the theme of industrial The supply chain goes from raw materials redeployment was in vogue and France to finished products. Luxury companies wanted to shift away from traditional indus - manage complex value chains that combine try. Georges Pompidou mentioned it in a production, logistics and distribution. press conference in 1972 6: “good cooking… Finally, its development implies the produc - haute couture and good exports […] that’s tion and reproduction of items in quantities all over… France has begun and is well into that have grown considerably as the market an industrial revolution”. However, in the has grown. nineties, luxury came to the fore again: two However, the exact contours of the industry of France’s biggest companies, LVMH and are difficult to outline. If we define a sector PPR, became world leaders in the sector as all of the companies that have the same and the French luxury business contributed main activity or that fulfil the same consu - significantly to the international develop - mer need by supplying the same market, it ment of the country, through exports and is difficult to constitute a coherent statistical investment abroad. whole. In terms of activity, the high level of We have estimated that the world luxury differentiation in the range proposed by goods market is worth 168 billion euros 7, luxury companies and the diversity of the and French companies cover a consequen - business models encountered undermine tial part of this market. The market can be an approach based on the substitutable cha - divided into two segments with a relative racter of the available offer 9. In market share that is practically equal: ready-to- terms, the notion of identical needs disap - wear 8 and accessories (just over a quarter) pears faced with the importance of on the one hand; perfumes and watches representation: the immaterial wins out (around 20%) on the other. France has pride over the functional utility of the luxury pro - of place in a number of specialities (leather duct. Ultimately, the players themselves are goods, high-end jewellery and perfumes). the best placed to define what constitutes luxury: a company belongs to the luxury sector once other luxury companies desi - gnate it as the competition 10 . The Originality of an Extremely Differentiated the collective memory and enable compa - Offer nies to claim a certain permanence in their design thus ensuring that they are not asso - The first characteristic of luxury companies ciated with the world of throwaway fashion is the level of differentiation of their pro - and can claim their rightful place in the ducts, through branding but also through timeless universe of luxury. In addition, skill more subtle methods of prompting the and craftsmanship and the artistic profes - immediate identification of their products sions are some of the aspects most valorised as analysed by Jean-Marie Floch 11 . This by these companies in as much as they brand “vocabulary” that builds up over time create a connection between the company’s constitutes the real, immaterial asset of history and its current activity. Whether these companies. Commercial success relies they come from a saddle-making, hand- entirely on understanding and respecting made shoes or couture background, this asset. companies systematically highlight their The three levers of differentiation are crea - connection to a noble profession, trumpe - tive input or design, the specific crafts and ting the way they have mastered the most skills acquired by companies and the inno - complex craftsmanship. Companies with a vations they introduce at any given time. high level of legitimacy in terms of crafts - First of all, design is the basic foundation of manship thus feel the need to renew their any differentiated offer. Investment in established skills by collaborating with fas - design is seen first of all through the multi - hion designers. plication of collections: in addition to the Finally, innovation also enables differentia - traditional Autumn-Winter and Spring- tion. This can take on various forms Summer collections we now have whether it means honing new techniques, pre-collections which have significantly such as in high-end jewellery, using new grown in size and between season collec - fabrics (new textiles) or adapting products tions (resort, cruise…), to which we can to the changes in living habits (Louis also add, in some cases, men’s collections or Vuitton replacing their trunks with raised haute couture. Some fashion houses pro - lids with flat trunks, Chanel’s stark gar - duce up to eight seasons annually. As ments or the way Yves Saint Laurent Roland Barthes wrote in the introduction to borrowed from menswear to accompany Système de la mode 12 , “to capture the buyer’s women’s liberation…). These three sources accounting conscience, one must create a tend to increasingly cross over and play off veil of images, meaning, reasons in front of one another to attract consumers. the object, to elaborate a mediate substance Haute couture and high quality craftsmans - around it, like an aperitif, in short to create a hip are the two main professions behind simulacra of the real object, by substituting contemporary luxury companies, and they the weighted time of wear and tear with a have resulted in different business models. sovereign time that is free to destroy itself by The companies who have their origins in an act of annual potlatch”. Luxury compa - craftsmanship have, in general, a profitable nies incontestably carry out the practices of core profession, whether this is leather the fashion sector in creating “this uncon - goods or jewellery for example. This means scious that is constituted with desire as its their diversification is explained by a new goal”. At the same time, it is clear that many valorisation of their skills (jewellery and forms, whether it be Christian Dior’s watch frames, leather work and shoes…). “tailleur bar ” or a Hermès bag, are part of We can also note that certain luxury brands that come from a craftsmanship back - concentrated on the design and production ground remain specialists in their original in short series, companies progressively gai - trade: this is the case for most watchmakers. ned market power over their suppliers and The diversification of leather goods compa - developed direct sales through a network of nies into ready-to-wear whether it be recent, self-owned stores. To begin with, in terms of (Louis Vuitton in 1997) or well established, production, a growing number of luxury (Hermès did so before the Second World firms got involved in the control of their War) tends to follow a logic of establishing a supply chain, both directly and indirectly. In global brand rather than fulfilling a need for France for example, Louis Vuitton, Hermès economic balance. The brand then becomes and Chanel have invested in production an “editor, a studio, a symbolic operator of units often located in France or have bought the validation of the meaning associated out some of their suppliers. This integration with the product” 13 . It proposes “editorial process is particularly obvious in leather choices” but can only do so “in a field where goods where the high growth levels and it has proven legitimacy”. “Brands are a profit margins have reassured companies in chance to make economies of scale that ena - terms of their manufacturing commitments. ble multiple experiences to be categorised Certain players have also invested in shoe under one name”. production outfits in Italy, but also in The more financially fragile fashion houses France such as J.M. Weston in Limoges. In with their origins in haute couture went addition, the existence of production bottle looking for complementary activities early necks such as the one in leather tanning has on: in perfume as early as the inter-war led Hermès and Louis Vuitton to buy tan - years, then in licensing contracts and today neries to ensure their supply. in accessories. Tomoko Okawa 14 notes that In ready-to-wear, integration is less com - in the seventies, the couture and ready-to- mon in France, but quite frequent in Italy. wear activities at Christian Dior were in There are a number of reasons for delega - deficit and were held up by the sales of ting this type of manufacturing to accessories and licences. More recently, sub-contractors. So French companies, licencing has become rarer and is usually unlike a number of Italian ready-to-wear reserved for activities that involve specific companies, are rarely directly involved in skills (perfumes, glasses…). Leather goods, the production end of things. Their history shoes and accessories have acted as internal does not encourage them to take on this role growth mechanisms that have ensured their in as much as some have built up close, development. The share of ready-to-wear in long-term relationships with some of their terms of turnover is often down, and smaller sub-contractors even though relationship than that of accessories. between brands and sub-contractors are not always easy. The need to regularly supply The Originality of Vertical Integration the production outfit while sales of gar - ments are more and more marked by One of the main changes to have had a huge seasonality and are experiencing a low level effect on the luxury industry is vertical inte - of growth compared to accessories has dis - gration which enables companies to control couraged companies from investing their offer, from the design phase to the upstream in the supply chain. point of sale. This movement went against The second change concerns the integra - the disintegration trend of the past thirty tion of retail by a number of luxury years with the globalisation of the eco - companies. The advantages of direct control nomy 15 . While they were originally are legion: the accumulation of profit mar - gins as manufacturer, wholesaler and retai - The Originality of the Significance of ler; more brand image coherence; direct Representation and the Immaterial contact with customers and very valuable feedback. These objective elements of differentiation It is important to note that the specialist are combined with more subjective aspects professions of each company do play a part: that are essential to the luxury sector. The the leather goods people are mainly retailers valorisation of their history, meaning their while those who come from fashion still use heritage, the storytelling behind this, the external wholesalers. Watch companies are way products are presented in the point of mainly wholesalers while jewellers distri - sale and the location of the stores are some bute most of their products through their of the levers for added value used by luxury own retail network. companies. Through a series of signals, that However, all companies do not have the can be real or implied, companies manufac - means or the vocation to become retailers. ture consent to pay more and consumers They then tend, if they are going through comply. This is linked to the nature of external clients (department stores, multi- “positional” object of luxury that represents brand boutiques), to implement a certain the psychological or social aspirations of the number of vertical restrictions so that the consumer. retailer ensures the best possible sale condi - Bernard Catry 17 has examined the different tions for their products. This can take on forms of rarity among luxury products. different forms including a selection of Natural rarity linked to a penury of produc - approved distributors and predefining the tion factors is combined with techno-rarity range (in quantity and quality) to ensure created by the marketing of an innovative the best level of visibility possible for the product, different types of limited editions brand at the point of sale. This strategy can or when a company itself decides to limit be analysed via the theory of the agency. the distribution of a product and finally According to Olivier Bomsel, these restric - subjective or virtual rarity that is the result tions enable them to avoid opportunistic of an overall strategy on the part of the com - behaviour on the part of retailers who might pany. The latter in fact has a range of be tempted to push the sale of products elements at its disposal: pricing levels, retail which provide a bigger profit margin for mode, and advertising. It is clear that the them or take a lower level of investment to retail choices for a product influence its visi - convince clients. bility and as such the idea of rarity it Number of % of retail represents. The growing level of forward Company stores (2010) in turnover integration of companies and the develop - Louis Vuitton 452 over 90 % ment of self owned retail networks fulfil this Gucci 317* 73 % objective to create added value as well as the Hermès 193* 84 % need to control the spread of the offer. Bottega Veneta 148* 85 % This determination to develop a perception Prada 207* 71 % of rarity has consequences on the choices in Salvarore Ferragamo 312* 69 % terms of the value chain and consequently Armani 130 68 % on business models. Burberry 417 64 % Christian Dior 240 81 % Yves Saint Laurent 78* 55 % Source: Annual reports of the companies listed. * branches only The Originality of the Acceleration of Until the end of the seventies, the United Globalisation States and Europe constituted the main international markets for luxury compa - Globalisation is not new in the luxury busi - nies. Japan’s economic catch-up after the ness. On the one hand, the small size of the Second World War and in particular the national market makes it essential to deve - taste of the Japanese for western products lop business on a worldwide scale; on the made the archipelago a key location for other, while it is very difficult to export pro - growth at the end of the seventies up until ducts that do not stand out as their the Asian economic crisis at the end of the equivalent is available in other countries, nineties. Since then its relative position in exceptional products with strong identities worldwide terms has diminished to a great are attractive to consumers all over the extent due to the rapid development in globe. other geographical zones. The ex-commu - Patrick Verley 18 notes that in the 19 th cen - nist countries (Russia and Eastern Europe), tury, where exports were out of the question the Asian dragons and other emerging eco - due to transport costs, only products that nomies (China, Latin America…) have benefited from a price-elasticity had a posi - taken over a growing share of sales by tive demand. This was the case for luxury luxury companies. The progressive opening products. He adds that between export and up of markets as well as the emergence of a import countries, the perception of the qua - middle class in these countries are the signs lity of the products never coincided: an of a dynamic that continues to grow. imported product that was considered distinguished was only rarely seen to be a Geographical zones and turnover share (2010) luxury product in its own country. Asia Rest Company/ Ame- Conquering international markets became Europe Japan (but of the Total Group ricas one of the major characteristics of luxury Japan) world companies. LVMH – Fashion & 29 % 18 % 16 % 30 % 7 % 100 % This development has, of course, taken on leather goods different forms according to the periods in Hermès 38 % 16 % 19 % 26 % 1 % 100 % question. The rise in the standard of living Gucci 30 % 18 % 12 % 36 % 4 % 100 % in the different continents over the past two Bottega 26 % 16 % 24 % 31 % 3 % 100 % decades has profoundly modified the carto - Veneta graphy of the luxury market. In addition, Bulgari 35 % 13 % 19 % 27 % 7 % 100 % the accelerated globalisation process has Yves Saint 48 % 22 % 9 % 13 % 8 % 100 % worked in favour of the international deve - Laurent lopment of luxury firms. In a closed Prada 40 % 16 % 10 % 33 % 1 % 100 % Salvatore economic context, where exports were hin - 23 % 22 % 16 % 34 % 4 % 100 % dered and setting up office abroad was Ferragamo difficult, companies tended to delegate to Source: Annual reports of companies listed. licence holders for distribution but also for the manufacture of their products. Newly In conclusion, the characteristics we have open markets enabled companies to take covered briefly show that the luxury busi - back control of their activities in most ness displays a rare combination of fierce regions, by direct investment, thus enabling competition and of monopolies of varying the establishment of a coherent brand lengths in Edward Chamberlin’s view 19 . image and offer all over the world. The keys to success come from creativity and innovation, both of which constitute 11. J. M. Floch, L’Indémodable total look de Chanel , the ultimate boosts in firm’s differentiation Paris, IFM-Regard, 2004 ; Identités visuelles , Paris, PUF, 2010 (réed.). policies that enable them to establish their 12 . R. Barthes , Système de la mode , Paris, Seuil, 1967. market position. 13. This and following quotes from O. Bomsel, op. cit. , This situation is all the more favourable as 2010. 14. T. Okawa, « La maison Christian Dior, modèle de some studies show that coming up to 2025, référence pour les années 1960 », in La Mode des sixties , the luxury market may reach 1000 billion Paris, Éditions Autrement, 2007. 20 15. On the subject of the links between globalisation dollars . This perspective, that is by no and the vertical disintegration of companies see J. mean a forecast, is based on the growth of McLaren, “Globalization and Vertical Structure”, emerging markets (as they are responsible American Economic Review , vol. 90, n° 5, December 2000. for two thirds of the anticipated growth), 16. For a more in-depth analysis on brand discourse but also a higher level of urbanisation in the and in particular an analysis of Chanel, Christian Dior world, not forgetting the growth potential of and Yves Saint Laurent, see Bruno Remaury, Brands and Narratives. Brands and the Cultural Collective a number of product categories (products Unconscious , Paris, IFM-Regard, 2004. for men, leather goods and shoes…). 17. B. Catry, « Le luxe peut être cher, mais est-il tou - jours rare ? », Revue Française de Gestion , n° 171, Lavoisier, 2007. Dominique Jacomet, Director General 18. P. Verley, « Marchés des produits de luxe et division IFM, Franck Delpal, IFM, University of internationale du travail (XIXe-XXe siècles) », Revue Paris-Dauphine de synthèse , 2006/2. 19. E. Chamberlin, Theory of Monopolistic Competition , 1933. 20. Goldman Sachs, A Trillion Dollar Global Industry 1. Y. Moulier Boutang, Le Capitalisme cognitif. La nou - by 2025? , June 2010. This study includes the wines and velle grande transformation , Paris, Éditions Amsterdam, spirits market. coll. Multitudes/Idées, 2007. 2. O. Bomsel, L’Économie immatérielle. Industries et marchés d’expériences , Paris, Gallimard, 2010. 3. Montesquieu in Lettres Persanes ; Mandeville in La Fable des abeilles ; Voltaire in Lettres philosophiques (on trade) ; Saint-Lambert, in “luxe”, an article for the Encyclopédie . 4. H. Baudrillart, Histoire du luxe privé et public, depuis l’Antiquité jusqu’à nos jours, Paris, Hachette, 1880. 5. Ch. Gide, Cours d’économie politique , t. 2, livre IV, Paris, Librairie de la Société du Recueil Sirey, 1919. 6. 7 th press conference from the Président de la République (September 21 st 1972), source: INA. 7. Source: Altagamma 2010 Worldwide Markets Monitor. This study covers fashion accessories (leather goods, shoes, watches, jewellery) perfumes and cosme - tics and tableware. 8. A number of writers use the term fashion: ready-to- wear is more appropriate as leather goods and especially shoes are also subject to fashion. 9. In economic theory, two companies that belong to the same sector of activity have either a high level of crossover in their offer, which means that their produc - tion techniques are similar, or a high level of crossover in their demand, which means that their products are interchangeable in the eyes of the consumer. 10. This is the approach chosen by O. Bomsel, E. Fieffé-Prévost et P. N. Giraud, L’Industrie du luxe dans l’économie française , CERNA-Ecole nationale supé - rieure des Mines de Paris, 1995. The Made-to-Measure How can fashion design renew itself inside this relatively restrictive Roman frame - Approach: The Example work? On a historical level, when we observe the of Rome Today contemporary western fashion system, it Pascal Gautrand tends to mainly valorise the aesthetic and the creative. Throughout the 19 th century, the fashion system relied on a direct rela - tionship between the client and the manufacturer: local seamstresses abounded along with women who knew how to sew and made garments for the whole family. The number of locations and the omnipres - ence of the producers of the work made the activity and a certain culture of manufactur - ing extremely visible in society at large. During the 20 th century, the huge industrial and marketing progress that occurred in the clothing sector brought the idea of design It so happens that local, regional or national and the figure of the designer to the fore particularities are generally linked to the as the main values of a brand. As a result, historical and contemporary way of produc - fashion moved from being manufacturing- ing and acquiring garments. As such, a based to being image-based, from the particular point in space, such as a city, can production of objects to the production of produce a diachronic series. So my study brands, from the real to signs. In Europe, will concentrate on the city of Rome – the movement of production overseas has where I was resident at the Villa Médicis in made the stages involved in production fashion design for a year – on the political, practically invisible to the consumer. legal and diplomatic heart of Italy with a Design and aesthetics have become the high population of politicians, government main components in the fashion system, employees, lawyers and diplomats. In leaving little space for the values linked to today’s world, these professions require manufacturing and the techniques involved suits and shirts that correspond to very pre - in producing garments. cise codes and are worn by a multitude of On the other hand, one of the interesting working men. So Rome has developed a points that comes from the examination of local system of made-to-measure men’s the particular case of “work clothes” is the shirts and suits in addition to the interna - basic primordial issue of their functional tional ready-to-wear system. In 2010 over nature. The importance of this notion leads 230 such places were listed 1 which means a to the design, trend or style aspects of the large swathe of the male population have work garment finding themselves relegated retained a taste for bespoke garments. Far to a supporting role. So this notion of per - from carrying out a complete analysis of a manence in the work garment means we local fashion micro system, this paper will can observe and isolate certain issues that cover the point of view of one particular way are also true for fashion garments. Style and of approaching fashion and clothes with design include just as many issues linked to regard to heritage-based particularities. the oscillations between the unique and the

38 collective, between the individual and the On the contrary, the system of the Roman group, between the exception and the norm, tailors relies on the direct retail relationship between the one-off piece and the mass- between manufacturer and client; I was produced, between craftsmanship and interested in highlighting those particular industry. However, to a certain extent, her - values by inviting thirty Roman tailors to itage seems to be well placed to re-inject “re-make” the same shirt. So thirty unique some uniqueness to a system that is largely pieces were made each characterising each dominated by mass-production. tailor’s own culture, not to promote their During my time as resident in the “fashion own design skills or creativity as it was a design” section at the Villa Médicis in question of “copying” a precise model, but Rome, in 2008-2009, I took a keen interest more to display the particularity that the in what is behind this huge trend for unique skills of each tailor imprinted on the shirt garments. In order to illustrate this I will that made each product unique. As a result, base my analysis on an experiment devel - the same object, made by thirty different oped in collaboration with the local people, is still a different object, even if the hand-made fabric manufacturers, which aesthetics are the same. In addition, the produced a sort of map of skills that in turn installation of the thirty shirts was accompa - became the exhibition “ When in Rome, do as nied by a series of video portraits of men, Romans do ” that was presented at the each of whom told a story about a shirt. Valentina Moncada gallery in January 2009 This set up, besides the invisible values as part of Rome’s fashion week. linked to the manufacturing of the garment, With the aim of establishing a parallel underlined the idea of the appropriation of between the local system –based on the the garment by each client-consumer. The manufacturing of unique pieces– and the idea was to show how a standard shirt can international retail distribution system, I become a good-luck charm or an object that came up with an exhibition project that projects values that go beyond the aesthetic, entailed having thirty Roman tailors of values that are invisible to others but that – bespoke shirts “copy” a mass-produced shirt for those of us who create that particular from Zara the most standardized product link and the projections on to the garment – available –both in terms of the product but change the meaning and value of the object. also in terms of the stores that sell them. It Rome may not be a fashion capital – in the was a cotton blue and white striped men’s same way as Paris, Milan, New York or shirt, a traditional, relatively timeless model London –but it is unquestionably the polit - that has been around for over fifty years and ical capital of Italy. It is the country’s legal, will probably be still around in fifty year’s diplomatic and aristocratic centre that at the time! It is an industrially produced shirt that same time includes many professional is sold all over the world in huge quantities congregations that are obliged to dress in a chain of stores that even standardise themselves in a classic, even traditional their points of sale: the perfect example manner. Why then, in the eyes of the client, of the current fashion system, based on would a bespoke shirt be more singular than low production costs and a maximum retail a ready to wear shirt? There are doubtless a capacity on an international scale. The high number of reasons. The very act of having a level of internationalisation in fashion shirt made to measure supposes an arbitrage leaves little room these days for the idea between personal choice and the obligation of local particularities or a culture of manu - to belong to a group when the time comes to facturing. choose one’s tailor. The share of personal expression relies first of all on the choice of client’s personality on the shirt must imper - fabric, colour, motif and details such as the atively be the result of the most “human” type of collar, its rigidity, the shape of the part of the manufacturing process. cuffs or the different types of buttons and In addition to the degree of representation buttoning options. Through the choice and and self-valorisation, for the client, having a enumeration of his own taste, the level of shirt made to measure also represents the implication on the part of the client in the notion of belonging to a group. First of all creation of the garment is obvious. The fact the very product in question, the shirt, is a that the client is ordering a product that veritable archetype of male clothing, in as doesn’t exist yet confers a greater responsi - much as it expresses the passage to adult - bility on the client in terms of design, unlike hood and the representation of masculinity. the ready to wear system where the onus is As such, when a young man turns eighteen, on the brand, the designer or the couturier he is often given the gift of a made to meas - and his team. Involvement on this level ure shirt by his loved ones. So having a inevitably changes the client’s perception of garment made is almost a ritual or a rite of his own shirt. In fact, in Italy the concept of passage. As for the representation of mas - the Latin term ad personam 2 is very present. culinity, I can quote a story told to me by The term is often used in everyday lan - one of the tailors. It was about a police guage or in the press, not merely to define a woman who came to have her work shirts political stance; it is also frequently found in made to measure as her male colleagues had presentation brochures or on the Internet theirs done at the same tailor. And while sites of Italian tailors who provide a made to salaries in general are not very high in measure service. Rome, she insisted on only wearing made to Beyond personal aesthetic preferences, the measure shirts at 100 or 120 euros each personalisation of the made to measure under her uniform… Having her shirts shirt also occurs through the application of made to measure was also doubtless a the client’s initials. According to a frequent means for the policewoman to compete custom in Rome, men have their initials with her male colleagues on an even playing stitched on the left side of the shirt. They field by joining the “club who wear made to can be placed elsewhere, on the cuffs or on measure shirts, made by this tailor”. In the collar. Choice is expressed through the other cases, the colours and choice of fabric, thread used, its level of contrast with the types of stripes are often also used to show fabric of the shirt, and the type of characters one’s membership of a particular political used: capitals, lower case, straight or in ital - party. In the same way that a tie of a certain ics. This factor is crucial in terms of colour can also make a political reference, self-presentation but also in terms of the these extremely traditional garments use position one adopts relative to the group numerous symbols that are not written one belongs to, or, on the contrary, the down but that nonetheless exist and project group one wishes to be differentiated from. the idea of belonging to a group. In Milan in the eighties for example, ambi - I should point out that word of mouth is tious young men had their initials stitched essential in this system as it doesn’t rely on very obviously on the collars of their shirts. marketing or advertising. When one knows Their symbolic importance is such that tai - a good tailor, one passes on the information lors offer to stitch them by hand even if the only to colleagues or people one likes. As a rest of the shirt is entirely machine-sewn. It result a system has developed that is not is as if the most obvious reflection of the unlike that of private clubs, to the extent that certain tailors I approached to make a practice and maintain the profession of shirt and take part in this exhibition did not their ancestors. This is becoming an issue wish to participate and above all preferred today in as much as the younger generation not to have any kind of publicity or even to do not have the same emotional ties to the avoid any confusion with the thirty other job and sometimes finding someone to take tailors. Their usual clients are often made over the business is not easy. up of politicians and international business - The idea of manufacturing is also extremely men whose custom enables the tailor to fill important for tailors as it is handed down his orders and leaves no room for new orally from father to son, from master to stu - clients. These boutiques are often invisible dent. For example, when his parents died, from the street and are not in either the yel - one of the tailors I met inherited a ground- low pages or on the Internet, they represent floor shop and a basement workshop. His the marketing antithesis of the average first reaction was to break with tradition and ready to wear chain that searches for the to modernise everything. He went to Ikea to best sales zone with the most footfall buy office furniture: a mixture of “fake black and the highest possible level of visibility wood” melamine panels with smoky glass through advertising. and brushed aluminium. Once the store The manufacturing process is invisible in was refurbished, he soon found it impossi - the contemporary fashion system. When ble to be both in the workshop and the store the client walks in to a ready-to-wear store as he took care of both the shirt cutting and the product is already there, most often the the customers. So to solve the problem he result of overseas production. One doesn’t set up a big plank of chipboard on a table in know where it has been made, some “made the centre of the store, totally out of keeping in” labels indicate the origin of the product with the sparse Ikea look of the furniture in a very vague manner –and at times are and that is where he now cuts the shirts for completely false. For all of these reasons, it his clients. In doing so and in a completely is quite difficult to get a real idea of the involuntary and unthinking manner, he manufacturing and work involved. Both the shifted manufacturing right into the centre manufacturing and the human input to that of the point of sale, by pure necessity. His manufacturing are major components of initial wish to have a fashionable, modern the design of these garments, most often store meant the type of furniture he chose ignored by current brands. In fact, this local had a certain neutrality to it, but at the same micro-system relies on the handing down of time, his almost emotional attachment to skills, on heritage and the notion of family both manufac-turing and customer rela - to which Romans and Italians in general are tions (the two mainstays of his profession) much attached. Until now, all of these meant he had to make some awkward mod - points work in favour of the continuation of ifications to his space, thereby proving the a system that has almost disappeared every - importance of the visibility of manufactur - where else in Europe. Most of the tailors I ing in this system. met in Rome are tailors from father to son The idea of handmade garment and specif - for many generations often in the same ically things that are “made in Italy”, are a location with the same skills and a clientele question of national pride in Italy, much that is also passed down from one genera - more than in France. When one lives in tion to another. This entails an emotional Italy, it is common to hear the expression attachment to the work that can be felt, it is “made in Italy” every day. This subject is in symbolically very important for tailors to the news at the moment as a law 3 has just been gone through to control fake labels 3. The “Reguzzoni-Versace” n.55 law of April 8 th 2010, and to give a real value to the term “made in unanimously voted by the Italian parliament, forbids the use of the label “Made in Italy” on textiles, shoes Italy”, as it has been tarnished by the scan - and leather goods whose different production stages dals of the clandestine Chinese workshops have not occurred for the most part in Italy. At least two in the Prato and Naples regions and of the following must take place in Italy: thread- imported Asian products with fake “made milling, weaving, dye-finishing and manufacturing. in Italy” labels.

To conclude, it is easy to believe that all of the elements that make up the links between the client and his garment, between the tailor and the garment he makes and between the client and the tailor, contribute to the “design” of the garment and the choice of tailor. Whether they come from one’s own personality or narcissism, from one’s relationship with the social envi - ronment or the local manufacturing culture, these elements are added on as an extra layer to the garment, not a visible layer –the aesthetic is untouched– but symboli - cally to the extent that they transform the perception the client has of the garment. The translation of these elements into the contemporary fashion field would doubtless be an efficient means to bring some mean - ing back to the international fashion system and to ready to wear brands who only very rarely take these values into account. But how is it possible to introduce non indus - trial, truly singular actions to a milieu that is completely industrialised from manufactur - ing to advertising?

Pascal Gautrand Independent Fashion Designer

1. Un guide sur mesure. Rome, 239 lieux de la Capitale où l’homme peut se faire réaliser vêtements et accessoires sur mesure (A made to measure Guide. Rome, 239 places in the Capital where a man can have clothes and accessories made to measure ), by Andrea Spezzigu and Pascal Gautrand, introduction by Silvia Venturini Fendi, Palombi Editori, 2010 (The Italian and English ver - sions have already been published. 2. Latin term: that which addresses the private individ - ual, that which comes from his private life. Luxury, the Accursed Share Enumeration and authenticity. That which through its nature cannot be quantified, can and the Capital Gain not be termed a luxury. This is the case for everything that is related to Ideas, as in Nicolas Liucci-Goutnikov concrete terms, it is not possible to confis - cate ideas. Of course, one can wish to appropriate the physical manifestation of those ideas (a book, a sheet of music, etc.), meaning objects and events where their dif - ferent notations are written or expressed. But this appropriation is always doomed to fail as another notation, as perfectly identi - The confiscated excess . “Luxus” is excess and cal to the idea as the first can always be 1 debauchery . It is the excess inevitably pro - reproduced. This is why literary or musical duced by all human society, the surplus works can not be deemed luxury objects, referred to by Georges Bataille as the “part unlike some of their physical manifestations 2 maudite” (the accursed share) and which (and in a perfectly contingent manner): has but two uses: to be spent by all in an books with pages made of 18 carat gold, pla - extension of the democratic process, or to be tinum compact discs, five-star concert halls, used, excessively, meaning in debauchery, etc. As Nelson Goodman 6 showed us, for by a certain minority who appropriate the these types of works – allographic works of monopoly of the excess. As the economical art – the notion of counterfeiting doesn’t mechanics of managing excess, luxury cor - apply: “Haydn’s own manuscript is no responds to the latter. It entails the more authentic a version of the music than confiscation of the accursed share for the a copy that was printed this morning” 7. benefit of a minority. Once this confiscation There can not be a fake version of the Eroica takes place, a monopoly on the enjoyment or Le Bateau Ivre : the terms used would be of this accursed share is established. When plagiarism, pastiche or parody. 3 this happens, luxury comes into being . Luxury refers only to objects that can be A quality of possession . Luxury thus only enumerated. Objects that, unlike allogra - represents the monopolistic quality of the phic works, are nothing more than their use of a certain surplus of energy, crystalli - own physical manifestation (this object I sed in the form of certain objects or events 4. am holding, this object I see, etc.). In other It is the term that signals the appropriation terms, as Gérard Genette 8 showed us, auto - of a more or less long-lasting but always graphic objects. And the autographic exclusive object by a minority. regime relies essentially on the notion of To sum up, we must go with Sartre who authenticity. A work of art is autographic “ if said: “luxury does not designate the quality and only if the distinction between the ori - of the object possessed, but the quality of ginal and a fake has a meaning ; or even the possession” 5. Let’s reiterate: a quality of better, if and only if it’s exact reproduction possession that is monopolistic. As such, does not have, de facto, the status of authen - luxury is necessarily subsumed by the ticity” 9. As such, there can be no luxury if category of quantity; the exclusive appro - the exact reproduction of a luxury object priation of a flow demands the possibility of makes it authentic also. This is why, like quantification. paintings, luxury objects are often signed 10 .

43 Rarities . More than any others, objects that embroideries, wines from certain cepages, exist in limited quantities are ripe for confis - etc. These same beliefs enable a subject to cation – this explains why we often establish recognise and call objects endowed with a correlation between luxury and rarity. certain substantial characteristics at first Whether or not it is necessary, this rarity glance “luxury objects”. Their origin resides does not have to be natural in any case. It in the confusion that leads people to see the matters little that it is an actual fact or an cause of luxury in that which is but the pro - artificial construct. The rarity that is mono - visional consequence of a monopolistic polised in luxury is a rarity that is identified situation. As a quality of monopolistic pos - in nature or one that is man-made with the session, luxury necessarily presents itself in aim of confiscating the usage thereof. This certain particular forms that depend on the almost mechanical rapport with rarity high - very nature of the monopoly in operation. lights luxury’s most admirable dimension, One can, at any point, establish a synchro - whose producers seem to be urged, as if by a nic list of objects whose use has been natural vocation, to protect the most fragile monopolised, and manage, by reduction, to of skills. In the world of artefacts, the most work out the properties (which is exactly immediate rarity is that of exceptional skills what Bourdieu does in La Distinction ). which today means craftsmanship and However, these properties are as fleeting as skilled techniques. the monopolies. As monopolies fall, the luxury object loses its label and demeans An unnameable quality . Luxury concerns itself; inevitably, degradingly, its properties only objects that can be enumerated and appear out of date. This has been the fate that exist preferably in limited of a whole range of objects, from the auto - quantities. Nevertheless is it possible to mobile to cotton clothes, from enamel to establish a typology? Apparently not. Any perfume. kind of object can be a luxury object on Let us note that the clues to the unnameable condition that its use, within a group, a col - quality of luxury popped up at the start of lective, a human society, is monopolised by this article. The only quality of the accursed a minority. So the idea of luxury must be share is that it is an excess, unformed, that removed from taste systems, which deem can also be spent by all in an extension of that the use of goods is relatively evenly dis - the democratic process. Luxury merely cor - tributed throughout the different regions of responds to the complementary occurrence, the social space. Thus, the concept of luxury exclusive to the first, the confiscation by and can not find its place within the schema of for a minority. La Distinction , according to which one can only love what one is used to; the proletariat Prior confiscation of means of production. get red meat and open legs, the bourgeois Luxury is the confiscation by a minority of fish and stiff backs. Indeed, red meat and the excess produced by the collective that fish constitute luxury objects here and now exists virtually for the collective. For the if and only if their use is monopolised here confiscation of the accursed share to take and now by a minority. Corollary: seeing as place, there has to be an imbalance of power monopolies can be broken and usage demo - within the society. A certain dominant rela - cratised, there is no type of object that tionship must exist for the excess to be taken remains a luxury object permanently. from the collective by a minority; and this However, there are solid beliefs according to minority must possess the necessary power which certain types of objects are necessarily to deprive the collective. However, power is luxury objects: precious stones, hand-sewn the ability to produce effects. Being power - ful is being in possession of the means to duce confiscation, can, like money itself, produce effects, to possess the means of pro - adopt infinitely diverse forms. It owes this duction. A minority that has the capacity to contingency to the essential tautology that confiscate the accursed share is a minority forms it and makes it, like wordplay in that “already” owns the means necessary to which “ une marchandise de luxe est chère produce such a confiscation. In other words, parce qu’elle chère ” (a piece of luxury mer - luxury is based on the partial or total always chandise is dear, because it is dear). In other major, prior confiscation of the means of words, the only constraint to its appearance production of effects. is to signal its economic confiscation, in In feudal societies, the means of producing other words it has to look expensive. the confiscation were traditional and legal: Evidently, the signs that display a crystalli - certain fabrics, certain colours, certain sation of a high level of social work in accessories were restricted by law to the aris - a piece of merchandise can be listed: tocracy. The sumptuary laws of the late diamonds, pearls, gold, platinum, silk, middle ages and the Renaissance made sure embroidery, ribbons, stitching, overstit - the monopolies were respected had the need ching, hand stitching, saddle stitching, arisen. But in the particular conditions of sophisticated cuts, etc. Each of these signs the capitalist democracy that consecrates attests to the superior exchange value of the equality in the law, no privilege can be given merchandise, and as a consequence, its to a minority for the sole reason of the indi - price. These signs are what Emile vidual qualities of its members (inheritance, Benveniste 12 refers to as signals, as they are physical strength, etc.). The confiscation of linked to that which they signify “natu - the excess is thus based on other founda - rally”: it is clear that diamonds, pearls or tions: the inequality of means that platinum signal a natural rarity, meaning a accompanies the equality in law. To be more high level of crystallised work, as it is parti - precise, in a democratic and capitalist cularly difficult to extract these precious regime, the objects that can be confiscated materials. This also goes for any kind of are in the form of merchandise and their complex work (embroidery, sophisticated confiscation occurs through the exchange of cuts, etc.). All of these things are expensive, money. The means to produce the confisca - so all “naturally” signal a higher price tag. tion are, as such, fundamentally financial. Because signs are not linked to what they They are subject to the prior accumulation signify in a “natural” manner, symbols can of economic capital. The object, now a also signify a higher price tag. Symbols luxury merchandise, has thus become a (logos, signatures and other autographs) are piece of merchandise of universal virtual for example what enables a simple cotton t- use that is expensive enough to produce shirt to be transmuted into a piece of luxury confiscation. merchandise. It would appear that what Roland Barthes considered to be arbitrary The signals and symbols of luxury. Money semi-logical systems, systems in which the constitutes the universal equivalent 11 as it signs are “based not on contract but on uni - can be exchanged for any merchandise. It is lateral decisions” 13 ; Barthes had identified a sort of floating signal that can express all the fashion system as such. Fashion, appa - types of signs. In this regime of equivalence, rently demands significations: “Blue is in the price does nothing but call the money this year”, “We love, we hate”, and so on. towards the merchandise. As a result, a The symbols that refer to luxury appear to piece of luxury merchandise, as it can only impose themselves in the same way. They be defined by its price, high enough to pro - signify economic confiscation, finding behaves like the nobility in feudal times, themselves, according to methods that we “impatient to devour more than their due, will not develop here 14 , invested with a mys - parading their luxury, their numerous and terious power to make things expensive. lazy domesticity” 18 . The ideal . In a democratic and capitalist Nicolas Liucci-Goutnikov regime, economic confiscation is the neces - Researcher and Curator sary and sufficient condition for luxury to exist. This implies that the minority that is capable to confiscate luxury objects is also 1. Cf. Gaffiot, article “luxus”, Paris, 1934. that which has accumulated the economic 2. Georges Bataille, La Part maudite, Paris, Editions de capital prior to this. In other words, the Minuit, 1967. 3. Luxury as a complementary and exclusive occur - accumulation of capital is the differential rence of the “democratic use of the excess” is logically function of luxury. It is easy to determine the opposite. There can therefore be no such thing as the optimum of such a function: it cor - the “democratisation of luxury”. To democratise luxury would mean the end of luxury. responds to the total confiscation of the 4. Gérard Genette, quoting Wittgenstein, reminds us means of production that means the confis - that things are merely “relatively stable conglomerates cation of the capital itself. The ideal set-up of events” ( L’Œuvre de l’art , Paris, Seuil, 1994, p. 39). We will use the term “object” for its ease of use. of for luxury is then the ideal individual 5. Jean-Paul Sartre, L’Etre et le néant , Paris, Gallimard, who possesses the means of production 1943, p. 666. exclusively, in other words, the capitalist. 6. Nelson Goodman, Langages de l’art , Nîmes, Jacqueline Chambon, 1990. This explains why the topics of luxury never 7. Ibid. p. 146. fail to signify the monopolisation of the 8. Cf. Gérard Genette, L’Œuvre de l’art , Paris, Seuil, means of production; meaning non-work or 1994. 9. Nelson Goodman, op. cit. , p. 147 otium ; which refers to work that is accumu - 10. This is why luxury brands fight counterfeiting so lated and crystallised and accomplished by intensively. others; meaning everything that follows, 11. Cf. Karl Marx, Das Kapital, Book 1, Section 1. 12. Cf. Emile Benveniste, Problèmes de linguistique including, but as a sideline, the cultural générale , Paris, Gallimard, 1966. refinement that goes with a life of 13. Cf. Roland Barthes, “Eléments de sémiologie”, contemplation 15 . Communications, n°4, 1964, p. 111. 14. The value of symbols must as such be placed in the From the accursed share to the capital gain. As perspective of a belief system of a magical type. On this subject, the writer refers you to his own article “L’œuvre the confiscation of the accursed share by a d’art, idéal-type de l’objet de luxe ? Michael Jackson and minority, luxury now reveals itself to cor - Bubbles et la Maison Jeff Koons”, in Le Luxe. Essais sur respond to the exploitation of over-work – la fabrique de l’ostentation , Olivier Assouly (ed.), Paris, IFM-Regard, 2011. 16 meaning, in Marxist terminology , work 15. Cultural capital is thus independent of the system. accomplished by the worker and not paid It is certain that the accumulation of cultural capital by for by the capitalist. As such, like the accur - a fraction of the minority with the means to produce the confiscation enables it to stand out from the less sed share, over-work is itself an excess: it is endowed fractions. But that the merchandise confisca - that which, during a day’s work, is added on ted by the cultivated fraction making it “refined to the necessary time for the reproduction of luxury” and the merchandise confiscated by the less cultivated fraction make it “vulgar luxury”, is of no work. The capitalist extracts the added importance. The cultural leap, which is qualitative, value from the overwork. When the added from vulgar to refined, remains outside the realm of value is converted into merchandise and it luxury. Luxury is not a distinction. It is, for better or for worse, a confiscation. “dissipates (…) like revenue, instead of (…) 16. Cf. Karl Marx, Das Kapital, Book 1, Section 3. growing like capital” 17 , then the luxury 17. Ibid , p. 600. merchandise appears. And the capitalist 18. Ibid , p. 601. Responsibility and meilleur” (Giving the world the energy to be better), positioning itself as the means Profits: What Temple of through which the world could be made a better place, as simple as that. Their most Luxury has Taken on the recent slogan, “Changer l’énergie ensem - Role of Guardian? bleiv” (Changing energy together) 4, reflects both the idea of a partnership and a quasi- Selvane Mohandas du Ménil messianic ambition for a different, transformed and better world thanks to the efforts of the company and the moral and financial support of the end client. In both cases we are dealing with brands whose role and function are clear and even mentioned in the company name, but who are no longer just selling a product or a ser - vice –“Air France transporte tout, partout 5” (Air France transports everything, every - A New Situation where)– like they did in the fifties, or proposing a getaway to a client in search of “Faire du ciel le plus bel endroit de la terre” self-affirmation and success and under (Making the sky the best place on earth): social pressure like in the eighties, or even the Air France slogan first used in 1999 attempting to re-enchant a client who is sick illustrated the extent of the ambition of the of the consumer system as was the credo of French national airline’s company mission. worried brands not so long ago. If we take From then on, the issue was no longer a things literally, it has now become a simple simple means of transport with clear, fixed question of proposing a new vision of the promises –“La ponctualité est notre world rather than an attempt to re-enchant: meilleure publicité 1” (Punctuality is our the individual is no longer a client; he or she best advertisement)–, or even simpler, evo - has become a partner, the centre of the com - king just movement –“L’Art du Voyage 2” pany’s preoccupations, and co-author of the (The art of travel), “Demandez-nous le efforts that the brand is making to change monde 3” (Ask us for the world)–, it became the world. In exchange the brand requires a way of approaching the universe from a his or her total submission as is evident from new angle, even considering another way of the obligations forced on Flying Blue 6 pas - life. The brand itself was no longer enough sengers to retain their status or by simply to attract clients, despite the fact that it was reading the EDF’s Terms and Conditions. absolutely evocative of its offer. The brand becomes an artificially created Another big name, the EDF (French electri - interest group, and makes the means availa - city company), that even had the advantage ble, in particular in the form of rights and of a monopoly until 2007, illustrated this duties, that enable the new client-actor for point to an even greater extent: “Nous vous change to become responsible for the muta - devons plus que la lumière” (We owe you tion of his or her own consumption, of his more than just light), thus evoking an emo - or her own life. In a globalised world that tional connection with the client-partner makes national differences obsolete, it is rather than the client-payer, and even tempting to talk of a quasi “brand citizens - “Donner au monde l’énergie d’être hip” that shapes the identity of the client. It is edifying to see the virulence of the hion with our favourite brands (whether we exchanges between the pro-PC gang and are actual clients or not is practically irrele - the pro-Mac gang on discussion threads, or vant). Burberry is a case in point. It hit the even to listen to the treasure trove of argu - three million fans mark on Facebook in ments put forward by loyalty-card holders November 2010 8 and was redefined by the to prove the superiority of the airline they vice President of Facebook EMEA– use. We find ourselves emotionally defen - “Through the creation of original content, ding a project that is dear to our hearts Burberry is no longer just a fashion com - instead of rationally comparing the pros and pany –today it is a thriving media business” cons of a simple brand. illustrating the brand’s capacity for genera - In retrospect, it is enticing to see here the ting content to make the clients faithful as premise for a 2.0 world where the client they become both spectator and actor contributes to his or her own consumption, thanks to the tools available through which is then theorised and improved Facebook 9. though social networking sites (Facebook, Luxury is a dream for most people and Twitter, and Google). But beyond this numerous sacrifices are possible in order to vision, in a jaded world with no belief sys - acquire a product. But beyond hedonism, tem and where trust in institutions is individual pleasure, aesthetics and enjoy - flaking away, is it not possible to extrapolate ment, is it possible to detect a political angle the notion of “brand citizenship” to also see in this “dream brand citizenship”? And a political angle? After all, nothing is stop - taking things further than simply the pro - ping brands from injecting a bit of ideology duct, are luxury brands ready to adopt a to the mix. If we read the brands’ “master public political stance that goes beyond the plans” –making the sky the best place on quest for profit? What are the issues at earth, giving the world the energy to be bet - stake? Is this fundamental for the future of ter– they start sounding like an ambitious the industry? What are the consequences and poetic pseudo-political programme, to for Europe? which we latch on willingly, becoming de The notion of “brand citizenship” which is facto members of the brand’s community 7. not unknown to luxury brands is evident today in the Luxury Lifestyle , which repre - Luxury in Context sents the latest evolution in the sector. The conspicuous consumption of luxury pro - Now, let’s look at the luxury industry, an ducts was traditionally meant to reflect industry that by definition possesses all of social status, to transmit a veritable message the components necessary to gather a group to the spectators of this ostentation 10 . By of clients together around the same vision, buying a luxury car, the buyer was affirming whether it be historical, qualitative or emo - to a family car owner that they didn’t need tional, and who, in return, actively to restrict their consumption according to participate in its mission and legend, fifty their needs. However, this repetitive years ago by wearing haute couture, ten consumption of luxury, associated with the years ago by placing a special order and continuous increase in buying power since today interacting with the brand online. the Second World War, has distorted the The notion of “brand citizenship” is not representation we have of the world. new: twenty years ago one “was” either a Luxury went from exceptional to normal Lamborghini person or a Ferrari person; and became a way of life rather than a mere today we interact in an almost intimate fas - ornament of life. Patrick Bateman 11 turned his existence from the initial, hedonistic life hollow “Luxury lifestyle”, the simple pos - decorated with rare and costly objects, into a session of rare and costly goods. According hell controlled by possessions and never- to Vincent Bastien and Jean-Noël Kapferer, ending lists of the luxury brands that made “luxury is based on hedonism and aestheti - up his universe, the sine qua non condition cism, and not on an overconsumption that for his happiness, independent of the nature leads to saturation and disgust; the world of of the products in question. luxury is to be, for oneself and others, and That this luxury has now become a “lifes - not to have” 14 . To sum luxury up by the tyle” is obviously good news for brands, as mere overconsumption of expensive pro - sales have multiplied exponentially: the ducts removes everything that makes it industry is set to make stupendous profits specific and its differences relative to any this year 12 and is seen as the goose with the other type of product 15 . golden egg, not only recession-proof but We should also ask ourselves what the benefiting from the recession, given the future holds for brands that are, in the end, impressive growth rates of the companies relatively similar except through their his - involved, and totally unaffected by the tory, accessible to all and everywhere, whose macroeconomic environment. These profits unique characteristic is now merely of high are the result of unbridled expansion, whe - cost “market positioning” and not a mes - ther it be through the products–, by sage whatever it may be 16 . The sales results expanding ranges–, through the clientele – are undeniable, so is it really important to by attracting a client base that gets broader worry about this lack of commitment or every day and is more sensitive to the brand stand? It is perhaps useful at this stage to itself than the intrinsic quality of the pro - remind ourselves that historically, luxury duct–, or through geographical expansion – possesses an important political component which today enables relatively easy access to through the power it displays and confers. brands, regardless of the location–. The It began to materialise in the shape of the priority of the big groups is to make the expression of brute force and the financial most profit possible and they don’t make or temporal capacity to focus huge resources any attempt to hide this, as their growth toward a non military or strategic aim. rates soar while the brands themselves The statue of Athena in Phidias, inaugura - become banal. The have gone from being ted at the Parthenon in 438, twelve metres the ambassadors of a certain “European art high and entirely covered in marble and de vivre”, to becoming simple logos or labels over 100 kilos of gold, is a perfect example: to be collected, or to be replaced as quickly such expense merely went to prove the city’s as possible according to the seasons and capacity to mobilise precious resources, it trends instigated by the system itself to keep was a demonstration of unused power. In up the rate of constant trend renewal 13 . addition, the statue was really a safe; the All of the big players are increasingly com - gold could be removed at any moment. This mitted to this route, aided and abetted by unused power did not just have geostrategic high sales and total commitment from an interests; it also played a role of internal aspirational clientele looking for material regulation. The Chinese showed this as happiness. This however means a brand early as 1364 with the introduction of signed citizenship totally empty of meaning: ceramics, for imperial use only, on pain of luxury federates, but federates around death. The inaccessibility of luxury – today nothing, luxury is convincing, but of through the cost of the products but then nothing. Indeed, it can not be reduced to a through the accreditation system of the dif - ferent powers that were –thus also had a understand the cost, be aware of its specific political function, something that Louis nature. These elements are all communica - XIII understood perfectly when he tamed ble and all belong, obviously, to European the French nobility by creating the Court culture. So today we can see a component of and its refined but ruinous and addictive European “soft power” in luxury, and as pastimes. Colbert, by developing manufac - such imagine that it is possible to inject turing and luxury fabriques, added a new content. The Hollywood dream machine, component: luxury was no longer a passive on another register, is the best example in political element (an affirmation but with the U.S. no precise action), it could also serve the big At a time when Europe’s decline is ackno - picture, in this case financing the armies of wledged, visible and tangible, as Europe France and its foreign policy. loses confidence in itself as Asia rises and In addition, this political component was the U.S., even when under pressure, has no something Napoleon, and more recently de intention of resigning itself to the inevitable, Gaulle, understood fully. The ocean liner luxury may enable the European political France and the Concorde aircraft, with their block to transmit a cultural and voluntarist luxury finishes and services (a great number message, that goes beyond the simple pro - of craftsmen and suppliers were involved, motion of a way of life that is nothing but an beyond the simple cost of the service), were illustration of the “museumisation” of the glossy proof that France was capable of continent, of Italy and Paris in any case, that incarnating a third way, an alternative to the is out of touch with most of its citizens. Of United States and the USSR, in addition to course, luxury should not be seen as an displaying its economic independence. offensive diplomatic weapon, but at least as a rampart that protects European specifics Luxury and Responsibility in terms of culture and skills. Are such positions financially feasible? Is a Today, we are forced to admit that the big clear commitment to national and conti - names in the sector are obviously taking nental skills compatible with financial great care not to take a stand, to avoid any results given the profits the sector is cur - possible misunderstanding, and their invol - rently making? vement in the social fabric is becoming less The increased responsibility of a few fas - and less obvious or visible. This strategy is hion houses doesn’t seem to have had an certainly lucrative in the extreme, but it is adverse effect on their profits, as they them - far from safe in terms of the very future of selves are experiencing the same boom as the luxury sector. By appealing to a clientele brands with an exclusively economic real - that with each purchase is less convinced as politik. Hermès and Chanel are the best to the specific nature of the purchase, selling examples, through their exclusively French a product that is more and more accessible manufacturing units for the products in and less and less exceptional, the industry is question, including ready-to-wear and lea - gambling with what has always made it ther items, but also for their defence of unique. specific skills through financial participa - Indeed, what does luxury really mean today, tion in structures that are not necessarily as an idea and not as an industry? Quality, profitable but illustrate and preserve the skills, but also values of generosity, huma - technologies necessary to product luxury nity, hedonism and real knowledge on the goods. part of the client to appreciate the object, Bruno Pavlovsky, the CEO of fashion at demand. Goyard is another good example: Chanel, is clear about his intentions: “We the house chose to wait for many years wanted to make sure that the skills and pro - before opening its Mount Street store in fessions that are essential to the luxury London in 2009, rather than giving in to industry stayed in France. With no invest - Harrods demands, even though Harrods is ment and a lack of successors, they were courted by all luxury brands, and a presence running the risk of disappearing altoge - there would probably have enabled the ther” 17 . Hermès is a stockholder in, among small house to expand more rapidly. But others, Puiforcat, the Cristalleries de Saint rather than go for growth at any cost, the Louis, Perrin & Fils, Bucol, and announced family that owns Goyard decided to choose in its first quarterly financial report for its own store location and wait patiently. In 2011, that “the long term strategy, based on this case, the limits it put on sales despite mastering skills (…) remains a priority. The the natural need for growth, displays an theme of the year 2011 (…) focuses on the almost ideological and antithetic vision of excellence and authenticity of the crafts and the current dominant thinking: luxury is skills that constitute the base on which this not for everyone. house has built its success and its future”. The message is clear, for Hermès and A Crisis in the European Monopoly? Chanel: European skills are non negotiable. This is also true for Van Cleef & Arpels who Does this mean that taking a stand in favour have kept manufacturing in France for skills of local skills and high quality is a swan that mean that 80% of their turnover is on song or a nostalgic vision of a glorious past? special orders rather than on mass produced After all, as Christian Blanckaert readily items thus going against the trend of admits 19 , “The theory that luxury is the pre - modern economic logic. In addition, the serve of the French and the Italians is now house is constantly investing in research losing credibility (…). The world of luxury and development to retain their technologi - is starting to lose its borders”. So why stick cal edge over the competition and thus keep to a position that is inherited from the past? producing exceptional products. So here we The few houses mentioned above such as are dealing with the preservation of skills, Hermès, Chanel, Van Cleef & Arpels, with probably lower profit margins than Goyard, do not seem to be resting on the with those manufactured externally, even if laurels of their past, on the contrary: their this information is obviously impossible to competitiveness and innovative edge are verify. very real. What about the necessary education, the But business is business, and that applies to culture required? Luxury is not only a the luxury industry also: reducing produc - question of skills; it must also be something tion costs means more profits. This precept one deserves, either in terms of understan - is in part responsible for the complete disap - ding or product accessibility. At a time when pearance of the luxury shoe sector in practically all brands are available in stores France, after having been the leading in the most remote cities of Eastern Europe manufacturer up until the seventies. As the or Asia, not to mention online, certain hou - CEO of Oscar de la Renta, Alex Bolen, said ses have gone down the inaccessible route. in 2010: “Ultimately we have to sell stuff, Hermès, Chanel, yet again are very good this is not an art project” 20 . The changes in examples, as they have no wholesale 18 set- luxury detailed above, led by the big groups, up or do not produce enough to fulfil the goes against the idea of cultural preserva - tion or the affirmation of one of the last vated by status 26 ? Luxury products are now technological superiorities of the continent bought for the most part by the middle clas - of Europe 21 . This would involve the houses ses rather than by the “super-rich” 27 . taking responsibility, and not all are prepa - Luxury is now run by business and not by red to do so, like Prada or Burberry who brand and is losing itself in the massive pro - outsource for cost reasons only, respectively liferation of objects when the industry really in Turkey for Prada’s leather goods and should be trying to create bonding, despite China for the British brand’s shorts 22 . In the risk of rejection, instead of spreading all addition, the profits made ensure French over the place. It is, in fact, the only legiti - luxury the support of specialist institutions mate industry that can adopt this kind of like the Comité Colbert: when, questioned behaviour, if only it would remain faithful on the painful subject of outsourcing in to its own values. luxury, they reply that no one asks Renault We could also object to the position adopted where their cars are made, and claim to by the Comité Colbert when production believe more readily in “made in Dior” outsourcing is dismissed in the name of rather than “made in France” 23 . brand power. In addition to the fact that a banalised brand (or to attempt a neologism However, the Stakes are High “commoditised”) will necessarily be weaker and less powerful, pure design is in no way The increasing banality of the big name a competitive advantage. On the one hand it luxury brands and the loss of their distincti - would be incorrect to believe that emerging veness in the mind of the client – or at least, powers will never be in a position to com - as it is envisaged in France – as the conse - pete with western designers, and it would be quence of the spread of the Luxury lifestyle irresponsible to think that this will not hap - is disturbing. We should remember that pen in the future. In addition, design used luxury brands are brands of image rather as a creative advantage is completely at the than brands of accounting columns 24 proof mercy of the threat of counterfeiting. Only being the total volume of sales in the sector, skills and technique provide true protection 164 billion Euros in 2008, or the equivalent against pure copying. How can this advan - of Toyota’s sales 25 . The banalisation process tage be preserved if it evaporates from the is already happening in emerging markets, continent due to lack of orders or due to the where we can see that the perception of constant pressure from fashion houses on brands is often the complete opposite to the suppliers to reduce their prices in the hopes reality. Should we also note that luxury of getting down to costs closer to those avai - doesn’t have a slogan? In the absence of any lable from outsourcing, while benefiting cultural content and clear strategy besides from the magic “Made in”? The parallel that of making profits, there is a huge risk of that can be drawn with the Chinese brand confusing consumers forever. Of course, we Shang Xia is edifying: Hermès created a are constantly hearing that luxury has sur - completely new brand from the ground up, vived its own moral crisis without a scratch, based on Chinese craftsmanship and aimed that it is no longer a question of flashy, at the Chinese market 28 . It seems clear that consumer-based luxury. How are we to the anchorage of skills and technique are believe this at a time when growth is being basic, so why is production constantly being led by emerging markets with different and transferred abroad by European brands status-based logics of consumption, and enabling them to produce for less but dilu - with spending by luxury tourists, also moti - ting their message and their very essence? It would appear, as if proof were needed, 1. Air France Slogan, 1985. that luxury is one of the elements of 2. Air France Slogan, 1988. 3. Air France Slogan, 1992. European “soft power” that as such should 4. EDF slogan, 2009. EDF slogans have long had the project the values that the continent same educational, responsible and emotional bent: 29 “L’avenir est un choix de tous les jours” (The future is a defends . choice made every day), “Nous sommes l’énergie de ce Other sectors are trying to federate their monde, nous sommes fiers d’être la votre” (We are the communities of “brand citizens” through energy of this world, we are proud to be yours), “Notre énergie sera toujours à vos côtés” (Our energy will slogans or an ambitious vision of the world, always be with you). like the Dyson group, that promotes healthy 5. Air France Slogan, 1952. and sustainable growth by looking to indivi - 6. Air France’s frequent flyer programme. 7. Of course, this is merely an ambitious and deman - dual responsibility and collective efficiency ding extrapolation, the marketing departments of the more than profitability and planned obs - big name brands always take great care to remove any olescence 30 . But luxury is going down a hidden references from their intellectual productions, as they are a potential threat to the brand’s reputation. path that is diametrically opposed to this They erase any position-taking that could be interpre - one, evacuating all disruptive elements in ted as compromising by any social group, to the extent case they affect sales, and in doing so no that the message becomes absurd and bland. The only thing that remains is the poetic dimension, free from longer inspires any kind of elevation or aspi - any real or serious commitment on the part of the ration other than the material kind 31 . It is brand which is probably damaging from an economic thus decisive and curious that neither and philosophical point of view at a time when faith in all existing value systems is waning . The maths are Hermès nor Chanel really advertise their simple: it is better to sell a lot of products with no com - initiatives in safe-guarding European skills. mitment and no hidden agenda to the multitudes, We could reasonably hope that European rather than trying to convince or even conscript truly committed and as such faithful consumers but with luxury companies would take more collec - resulting lower sales. All this despite the fact that in the tive responsibility both in terms of the long term, the latter is the more rational choice (but values they promote that could be more requires more courage). 8. http://www.enmodeluxe.com/burberry-premiere- offensive and supportive of their regions of marque-de-luxe-a-reunir-3-millions-de-fans-facebook/ origin, and their direct economic impact in 9. The full quote from Joanna Shields, VP Facebook their own social fabric 32 . EMEA, goes into detail: “Through the creation of ori - ginal content, Burberry is no longer just a fashion Of course, this is a big ask. Should it not company –today it is a thriving media business. come to pass, which seems to be the way Burberry is now the most widely followed fashion things are going, the luxury industry will brand on Facebook. It works because not only does Burberry make beautiful clothes, but as a brand it lose what makes it unique, it will become understands the importance of taking a real interest in like any other common or garden activity, a the community and it knows how to use social media first in the history of luxury. This would to create fidelity and entertain customers. Whether it is relating to consumers by promoting indie bands on open the way for emerging countries to their Facebook Page or celebrating the ideas of the recreate new legendary brands after having most stylish customers, The Art of the Trench, exhausted existing brands 33 , causing Burberry is building its brand not simply by broadcas - ting and advertising to them, but by creating new Europe to lose yet more of its soul and its media experiences for them.” power. 10. Thorstein Veblen, Theory of the Leisure Class, 1899. European luxury will then have become an 11. The emblematic hero of Bret Easton Ellis’ American Psycho , 1991. industry like any other. 12. Hermès announced profits that were up 49.5% on August 31st 2011, for Salvatore Ferragamo the increase Selvane Mohandas du Ménil is +32.4%, and +25% for LVMH. 13. The book Deluxe, How Luxury lost its luster, by Graduate from HEC and IFM Dana Thomas, Penguin Books, 2007, casts a particu - larly harsh light on the way in which luxury brands have established a never-ending system to maintain demand. The system has destroyed creativity in brands, ont liquidé leur capital crédibilité”, in L’Expansion , as they are constantly under pressure to fulfil the need September 2011, are merciless: “do not hesitate to do for more collections to keep profitability levels up in what the Chinese and American do totally without order to justify the investments made. complex: defend one’s strategic industries and demand 14. Luxe Oblige , Vincent Bastien et Jean-Noël symmetry in newly opened markets. Europe is, for Kapferer, Eyrolles, 2010. example, the only continent in the world where the 15. For those who doubt the absolute uniqueness of telecoms sector, the pillar of new technology, is totally this industry, the book by Vincent Bastien and Jean- open to the competition, with no reciprocal obliga - Noël Kapferer, Luxe Oblige , Eyrolles, 2010, focuses on tion”. the particularity of luxury brands and how it is impos - 22. Les géants du luxe assument leurs délocalisations, sible to compare them to other sectors, even harder to Le Monde , Nicole Vulser, October 15th 2009. run them using techniques from other industries. 23. Ibid . 16. The example of the perfume industry is edifying in 24. Les marques françaises sauvées par le luxe, La this case: in 20 years, under pressure from producers Tribune , September 21st 2009. that have become more and more concentrated 25. Les codes secrets des griffes du luxe, Capital hors through a system of licences given to groups whose série, October 2009. interchangeable decision-makers have applied marke - 26. Le salut du luxe est dans ses réseaux, Sophie ting techniques that work but that ignore the natural Bouhier, Journal du Textile . specifics of luxury brands, and the distributors, who 27. Les codes secrets des griffes du luxe, Capital hors have established a mass retail strategy to take advan - série, October 2009. tage of economies of scale in supplies and running 28. Comment le luxe fait recette, Rita Mazzoli, La costs, perfume as a product has entirely lost its dream Tribune , May 31st 2010. dimension and has become just another commodity 29. Which, it is true, remains to be seen. ++, an object that smells nice rather than an aspiratio - 30. Le design durable : pour une croissance saine et nal element aimed at an educated, however slightly, durable, James Dyson, Le Monde , September 1st 2011. client who is looking for a little difference or an instant 31. This is probably why we have seen more and more crush, and not a calibrated product. The omnipresence one-off initiatives not aimed at consumers but at “ama - and globalisation of perfumes have removed their inac - teurs” (lovers), like the well-known perfumer Francis cessibility and in doing so, their specific nature. And it Kurdjian’s current solo project, or Pagani Zonda, that doesn’t seem to matter that this is the very essence of only produce 30 vehicles a year . perfume. This goes a long way to explain the upsurge 32. Some brands are trumpeting the fact that they’ve in luxury perfumes today from Serge Lutens, l’Artisan created 250 jobs in France (Le luxe repart de nouveau, Parfumeur, Frédéric Malle, Histoires de Parfums, to Jo Sid-Ali Chikh, News Fashion Daily, 2010) when all of Malone. their shoe soles are produced in India (Le haut de 17. “Chanel : l’art du beau geste”, Paris Match, January gamme européen toujours dans la course, Sophie 17th 2011: Since 2002, the brand has bought out seven Bouhier, La Tribune , November 22nd 2010). specialist workshops, from the hat maker Michel to the 33. The goldrush has already started: the Chinese have floral accessories maker Guillet, the embroiderer bought Omas pens, vineyards in Bordeaux, the Lesage to the feather-maker Lemarié. Koreans are financing the leather goods brand Louis 18. A form of distribution that entails selling the mer - XIV. « Demain, le luxe 100% chinois ? » Sophie chandise to wholesalers. This strategy enables the Lecluse, La Tribune , July 7th 2010. network to grow and make money without making any serious investment, counterbalanced by a loss of control in the retail process. 19. Le luxe bouleversé… et bouleversant, Rana Andraos, Economie (Lebanon), July 8th 2010. 20. Luxury sector to see niche deals, Reuters , June 3rd 2010. 21. Is it necessary to mention that the military, rail or nuclear development of many emerging countries has been encouraged by transfers of technology agreed to in the hopes of an immediate and huge profit, while ignoring the fact that the approach creates new compe - titors? We can refer to an interesting document concerning Areva and China on this page: http://www.medefparis.fr/areva_chine.php . How can we ignore the nuclear power megacontracts signed by the Koreans in 2009 with Abu Dhabi, when France is one of the most advanced countries in terms of civil nuclear technology? In fact, Yves-Michel Riols and Nicolas Reynaud, in their article “Comment les Etats Six-monthly publication in French and English: IFM Research Report The publication is an informative research tool in the areas of fashion and design on an international level.

Research Report, n°1. Research Report, n°9. February 2004 (The Immaterial) January 2008 (Fashion and Modernity)

Research Report, n°2. Research Report, n°10. June 2004 (Luxury and Heritage) June 2008 (Management of Design)

Research Report, n°3. Research Report, n°11. January 2005 (Brands and Society) January 2009 (Perfume)

Research Report, n°4. Research Report, n°12. June 2005 (Sustainable Development in the No English version available Textile Industry) Research Report, n°13. Research Report, n°5. No English version available January 2006 (Intellectual Property) Research Report, n°14. Research Report, n°6. June 2010 (Defining Design: Between Use, June 2006 (Fashion as a Topic for Academic Aesthetics and Consumption) Research) Research Report, n°15. Research Report, n°7. No English version available January 2007 (Customisation: Fashion between Personalisation and Normalisation) Research Report, n°16. June 2011 (On Luxury ) Research Report, n°8. June 2007 (Fashion as an Economic Model) Research Report, n°17. January 2012 (Open Innovation) Research Report n°16. June 2011, Six-monthly publication

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