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Gaucho the Sexy WEEKEND WARRIORS THEY MAY HAVE BEEN RELATIVELY CELEB-FREE AFFAIRS, BUT THE WEEKEND’S FASHION PARTIES SURE PACKED ’EM IN. SEE STYLE, PAGE 12 collections NEW YORK WWD fall 2011 MONDAY, FEBRUARY 14, 2011 Q WOMEN’S WEAR DAILY Q $3.00 MONEY BAGS Venture Capitalists Eye Fashion Investments By VICKI M. YOUNG ANY YOUNG DESIGNER START-UPS merce’s continuing strong growth, a out there looking for investments to presence on the Web gives the opera- reach the next phase of growth? Well, tion an immediate global reach. In the venture capitalists are back. addition, the idea of Overall VC investments, which hit A number of fashion companies have a high of $100 billion in 2000, were already completed their rounds of VC around $25 billion last year after the fi nancing. And most have merged re- economic meltdown and are expected tail and the Internet in a big way. to rebound to about $30 billion this Men’s online apparel fi rm Bonobos, year, financial sources estimated. founded in 2007, in December said it And while it’s too early to tell what secured $18.5 million in a third round percentage of the share of VC funding of venture capital fi nancing, led by will go toward fashion and retail, VC Lightspeed Venture Partners and fi rms are already trawling for fi rms to Accel Partners, along with ongoing back given the growth opportunities participation from angel investors. they present. Angel investors provide funds in the What kind of companies do they earliest stages of a firm’s develop- like? Firms with a retail component, ment. Count friends and family in that for one, and Internet connections group, as well as high-net-worth indi- make a fi rm even more attractive. viduals willing to take a chance on the That’s because, in addition to e-com- SEE PAGE 6 IN WWD TODAY A New Olsens Deal PAGE 11 ACCESSORIES: The Olsens launch footwear under their The Row label in a tie-up with philanthropic brand ▼ Toms Shoes. China’s Luxury Booms On PAGE 2 FINANCIAL: A new report forecasts that China’s luxury market will grow by 25 percent a year between now and 2020. Valentino’s Sales Rise PAGE 2 NEWS: As the Italian fashion house reveals a 20 percent increase in sales last year, its top executive The Sexy dismisses speculation owner Permira is out to sell the brand. Gaucho Diane von Furstenberg and co-designer Yvan Mispelaere were inspired by strong women for fall, specifi cally Millicent Rogers, Diana Vreeland and Gloria Vanderbilt. That meant everything from glam to gaucho, as in this caliente sheer shirt, high-slit skirt and lots of fringe. For more on the season, see pages 8 to 15. PHOTO BY KYLE ERICKSEN 2 WWD MONDAY, FEBRUARY 14, 2011 WWD.COM BEAUTY Sales Up at Valentino; Hannant Enters Scent Arena Firm Not on the Block By MATTHEW W. EVANS TOKYO — Valentino is about to post a double-digit jump in sales for 2010. NEW YORK — Douglas Hannant Valentino Fashion Group chief executive Stefano Sassi, has launched his first fragrance, a who flew here to fete a new freestanding store for the house’s signature women’s scent developed diffusion line, Red Valentino, with a cocktail party Thursday along with Robert Piguet Parfums, night, said last year provided “satisfaction” and the house’s in a move that executives said may sales are set to grow about 20 percent to 275 million euros, or put a charge into both businesses. $375.67 million. Final numbers are due in the coming weeks. “This is a milestone in every The house, which has undergone several restructur- designer’s career, to have a fra- ing efforts and ownership changes in the last decade, grance,” Hannant said. saw sales drop 11 percent in 2009. Its parent company, The eau de parfum is described Frederick Anderson Valentino Fashion Group, posted losses in 2008 and 2009. as a light floral and was composed and Douglas Hannant Douglas Hannant The 2,475-square-foot Red unit, featuring all-white inte- by Givaudan. JOHN CALABRESE PHOTO BY de Robert Piguet riors and vintage furnishings, makes its home in the trendy The fragrance and fashion Aoyama neighborhood. The boutique is on the ground floor houses threw a soiree hosted by Hannant launched a scent, presi- Aside from Saks, the fragrance while the second level features a showroom and event Geoffrey Bradfield at the Payne dent Frederick Anderson replied, is to initially enter 15 Neiman space leading up to a rooftop terrace. Although the brand Whitney Mansion Thursday to mark “It’s time for us to start expanding Marcus stores. The scent is expect- has shop-in-shops and corners in the region, this is Red’s the launch of Douglas Hannant de out from that [niche] base. We’ve ed to be in 100 doors in the U.S. by biggest statement store in Asia, according to Sassi. Robert Piguet. The scent went into been building the company into year-end, Garces said. The ceo also dismissed recurring speculation that Saks Fifth Avenue this past week, ac- more of a lifestyle brand.” In June, the fragrance is sched- Valentino Fashion Group’s primary shareholders, private cording to Joseph Garces, president Anderson noted Hannant will uled to be introduced in Europe, equity fund Permira and certain members of the Marzotto and chief executive officer of Robert be launching lingerie and sports- first at Harvey Nichols, where it family, are looking to sell the house. The executive said Piguet Parfums, Hannant’s licensee. wear this fall, collections that are is to take a spot in the store’s win- Valentino Fashion Group is turning around and is on track “We wanted to add a new dimen- to make their debut in spring 2012. dows. A rollout to the Middle East to post another year of growth in 2011. sion to the Piguet line,” he said, not- Hannant was approached to do a is slated for 2012. “I think [the current situation] will stay this way. ing that in recent years, the brand has scent a few years ago but Anderson Industry sources speculated Besides [the shareholders themselves] have confirmed that gone back to its archives to relaunch said it wasn’t the right time. It the scent could generate upward this continues to be a long-term project,” he said. scents and currently has seven fra- took about 10 months to develop of $10 million in retail sales in its The executive was less resolute when it came to the grances on the market. “He has a spe- Douglas Hannant de Robert Piguet, first two years on the market. future of Valentino Fashion Group’s 45 percent stake cific [niche] clientele like we do.” with Hannant exchanging rounds Piguet perfumes are distribut- in Proenza Schouler, which is also rumored to be on the The methods in which both of individual compositions with ed to about 900 doors in the U.S. block. Most recent talk has Andrew Rosen of Theory nego- businesses are run are “parallel,” Givaudan’s facilities in France. and the perhaps best known two tiating to buy the stake according to Garces. “We have cre- A 1.7-oz. version of Douglas Hannant are Fracas and Bandit. Hannant’s “I don’t know, we’ll see…It’s going well. Proenza is ated a bond with our partnership.” de Robert Piguet is priced at $85 fashion house has been in opera- growing,” he said of Valentino Fashion Group’s investment When asked why the house of and a 3.4-oz. size goes for $120. tion since 1997. in the label. Returning to the business in Japan, Sassi acknowledged the market here is definitely challenging and consumers are becoming more selective in their purchases. But he said he still sees growing room for both Valentino’s first Report: China Near Half of Luxe Market by 2020 line and the lower-priced Red collection. “The average spending of the Japanese luxury customer By ELLEN SHENG CLSA declined to comment directly on Prada’s is very high so probably there can be a bit of a rebalanc- prospects in China and elsewhere in Asia, but ing in the future. But this doesn’t mean that there isn’t HONG KONG — Fast-growing China is poised to ac- Fischer said Western brands will continue to do well space for companies that do luxury. It’s the opposite,” he count for 44 percent of the global luxury market by in the region. Preferred luxury brands for watches, said, adding that Japan accounts for about 10 percent of the year 2020, according to a new report from CLSA clothing and jewelry in China are similar to those Valentino’s turnover. Asia-Pacific Markets. elsewhere in the world, but with some key differ- Sassi said he thinks the Red line will work well for CLSA, which is a bookrunner on Prada SpA’s ences, he explained. The luxury market in China is Japanese consumers. Ultragirly confections heavy on pink planned initial public offering in Hong Kong, forecasts still largely male-dominated, so men’s wear, suitcases, and ruffles figure prominently in the spring-summer col- the Chinese luxury market will grow at a rate of 25 per- watches and cars are significant segments. Hong Kong lection, which is designed by Maria Grazia Chiuri and Pier cent a year for the next five years, and then at a rate of and China combined account for 26 percent of Swiss Paolo Piccioli. The clothes are the same as those sold else- 22 percent a year afterward.
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