Who Will Succeed John Galliano At Dior? #1

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I've got a little story. (Nothing to do with those LVMH sharks). My mom, about two years ago, would never buy ANYTHING Guess. She said it was because of ads that they had in the nineties. But she was searching on ebay for blush pink shoes, and their was a GORGEOUS pair of Guess shoes. She was trying not to buy them, but eventually she sucked it up and bought them. She hated guess, and would never buy anything, but she did and doesn't regret it. That is what Dior should do. This is a terrible thing, but they need Galliano back.
 
Revenues and sales are roughly synonymous, reducing expenses impacts profits and not sales. Although I agree that the increase in sales is probably due to increased brand recognition because Dior has been in the news in recent months and that that is not a sustainable form of growth.
 
They are not. Revenue is how much you make as a company - whether through sales, cost cutting, reduced overhead costs, etc. - and doesn't account for the expenses you incur as a business. Reducing expenses impacts revenue, not profit, which is tied to sales. Profits are what you make after a sale - if it costs you $10 to make something and you sell it for $15 your profit is $5.

If you only sold 1 item that quarter and made a profit of $5 on that sale, and you saved an additional $1 by not advertising in the local newspaper, your revenue is $6. But it doesn't mean you sold $1 more as a business. and eventually you will run out of things to save money on if you're not making any sales. Profit is a more accurate indication of your business's vitality.
 
I guess Dior is part of LVMHs balance sheet? I mean, they are all mixed together, or is Dior seperate...?
 
I guess Dior is part of LVMHs balance sheet? I mean, they are all mixed together, or is Dior seperate...?

The Dior Group owns a huge part of LVMH and I think LVMH owns are minority stake in the Dior Group. Kind of complicated, really.
 
^^^ To the layperson there is not a difference between sales and revenues, if you get into the minutia of accounting and reporting there is a slight difference that has to do with discounting and returns. If you google, "what is the difference between sales and revenues" it will confirm my point.
 
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Let's bring it back to what was being discussed - LVMH tries to pull wool over our eyes by saying revenue is up, implying that the dismissal of Galliano had no bearing on their bank account. Other members point out that that doesn't necessarily equate to people buying Dior now that Galliano is no longer there, given that Syney was quoted as saying every piece of the couture collection was sold (and yet so far we've only seen Katy Perry donning a piece and no one else has been spotted wearing one).

The distinction between revenue and profit is very much relevant to the discussion. It's not a few of us being anal about the terms.
 
^ Dior's Haute Couture clients aren't only celebs, but I see your point.

My question is what is LVMH gaining from keeping this a secret for so long? Is there someone that's so bloody fantastic that is worth all the wait and surprise? Something just doesn't feel right. It feels like they're deliberately making this take ages, I just don't know why.
 
saying every piece of the couture collection was sold

The last time I heard a statement as large as this concerning couture was when Valentino was trying to justify the dismissal of Alessandra Facchinetti - "not a single piece sold" from her F/W 08 couture collection.
Would the customers at Valentino be so much harder to sway towards a new designer than those at Dior? Faccinetti's designs were infinitely more wearable (and dare I say dignified) than the sickening combinations from Gaytten.
Not to mention that the former designer hadn't recently insulted a great deal of people.
 
Here is the article for anyone who can't see the wwd link :flower:

PARIS — Marc might not be moving to Dior after all.

According to sources, the French fashion house’s talks with Marc Jacobs have come to a halt, and Dior has quietly stepped up the pace and depth of negotiations with other designers.

It is understood Alexander Wang, Raf Simons and Jason Wu are among some of the candidates recently approached, with Riccardi Tisci still in the mix but viewed as an unlikely appointment, given his strong momentum as Givenchy’s couturier.

WWD first reported Dior was in talks with Jacobs on Aug. 22.

The artistic director at Louis Vuitton since 1997, Jacobs has been vocal about the fact that he wished to take his Vuitton design team along with him should he move to Dior, a sister company of Vuitton parent LVMH Moët Hennessy Louis Vuitton.

That was a complicated scenario that would have left Vuitton, the luxury group’s cash-cow brand, without a key creative engine. Although ready-to-wear is not a linchpin category for the leather goods powerhouse, Jacobs has brought fashion excitement and buzz galore to the brand, along with blockbuster collaborations with artists including Stephen Sprouse and Takashi Murakami.

Further complicating matters is that Phoebe Philo, the preferred candidate of LVMH kingpin Bernard Arnault to take over Vuitton should Jacobs shift to Dior, is said to have been cool to that scenario, preferring to continue her minimalist makeover of the Céline fashion house, which — like Givenchy — is part of Arnault’s sprawling luxury empire.

Jacobs has been vocal about the fact that he is happy at Vuitton, yet honored to be considered for Dior, without a couturier since the March ouster of John Galliano for racist and anti-Semitic outbursts.

One source cautioned, “It is not impossible that [Arnault] resumes his talks with Marc.” Indeed, last month, the luxury goods executive is said to have jumped on his private jet and flown to Manhattan to meet with Jacobs.

The last talks with Jacobs remained cordial, with no explosive breakdown, according to a Paris source. But Arnault and Dior recently decided to move onto another scenario.

The search is said to be focused on finding a designer — whether young or mature — with a strong affinity and respect for the brand’s glamorous DNA, and a vision for taking it forward in the post-Galliano era.

Officials at Dior and Jacobs’ New York-based company could not be reached for comment at press time on Thursday.

Dior has always said it was in no hurry to name a successor to Galliano, a maverick talent who transformed the house with his epic, romantic inspirations and spine-tingling showmanship.

Since Galliano’s exit, the design leadership has fallen on the shoulders of studio director Bill Gaytten, a longtime Galliano associate who is also piloting the creative department at the John Galliano brand.

The press pilloried Gaytten and first assistant Susanna Venegas for their first couture outing in July, while reviews for the spring rtw were largely more positive. It is understood Gaytten will take the bow for Dior come Paris couture week in Janaury.

Meanwhile, Dior has continued to show strong business momentum as its upscaling drive gains traction and iconic products like Lady Dior handbags continue to sell. Suggesting brands are more potent than the famous designers behind them, revenues at the Dior fashion house jumped 17.6 percent in the third quarter to 260 million euros, or $368 million, as reported. At the time, the company trumpeted momentum across geographies and product lines, “notably ready-to-wear, leather goods and watches.”

The search for Galliano’s successor has been one of the most closely watched — and protracted — sagas in recent memory.

Dior has considered a wide swath of potential candidates, including Lanvin’s Alber Elbaz, Balenciaga’s Nicolas Ghesquière, Alexander McQueen’s Sarah Burton, Haider Ackermann and Hedi Slimane. According to sources, Elbaz and Ghesquière, both of whom have equity stakes in their fashion houses and strong personal commitments to their brands, withdrew themselves from the running. Burton is said to have rebuffed overtures. Tight contracts with their respective houses also may have limited many of the designers’ ability to jump to Dior.

Tisci, meanwhile, has earned a cult following for his darkly romantic, Goth-inflected approach to fashion, and has been championed by Delphine Arnault.

Jacobs was said to be in the studio Thursday with Steven Meisel shooting the spring fashion campaign for Vuitton, again using a cast of young models.

Arnault has often waxed poetic about the importance of matching a designer’s talent with a brand’s essence. “Had I hired Marc Jacobs for Dior and John Galliano for Louis Vuitton, it would not have worked as well for both brands, even though both designers are geniuses of their own,” he told WWD in 2003.

wwd.com
 
It is understood Gaytten will take the bow for Dior come Paris couture week in Janaury.
Not again...I was hoping that the Spring Couuture collection would be the new designer's debut :doh:
 
these contract negotiations have a tendency to break down over money so no real surprise there, but it's interesting the names that got bandied about in this article: while i could see an anna-wintour-favorite like jason wu doing the job, i don't know that he has ideas potent enough to stir excitement at the house of dior. alexander wang would make an intersting choice, but he has little experience designing for the ready-to-wear price point nor the couture. finally, raf simons seems like he'd feel more at home at a house like yves saint laurent which remains the perennial rumor i keep hoping will become true. i'm just glad they're finally taking a look at some younger designers.

marc jacobs remains quite intelligent to play hard ball with them because we all know that arnault exerts his influence over dior in a different way than he does so many other houses. and dior has such a wide swath of product lines that whoever takes the helm will feel the crushing pressure almost immediately.
 
Galliano back in the running for Dior?


Friday, 11 November 2011
Is Dior considering taking back Galliano? It is the question on everyone's lips associated with the fashion house. Now that talks with Marc Jacobs have been put on hold and other designers, including Phoebe Philo and Riccardo Tisco, have stated they are happy at their current houses Celine and Givenchy respectively, the options are numbered. And fashion designers have ego's, nobody wants to be the 3rd, 4th or even 5th choice for fill Galliano's shoes.

So who does that leave in the running? Perhaps American designers Jason Wu and Alexander Wang, but can we really see these young designers take the help of such an iconic French House. And could they execute couture?

According to Vogue.co.uk, increasing fashion opinion is that the return of a rehabbed, repentant and rejuvenated Galliano is the only answer. Manolo Blahnik and Franca Sozzani have already added their names to the list of those who would love to see him return, and Arnault said earlier this year that he couldn't see anyone but Galliano in the job.

"I could have asked many other talented designers to do Dior, but it would not have been the same," Arnault said in January. "Take Marc Jacobs, he has been a fantastic success at Vuitton and he has a proximity to the Vuitton spirit, but I don't think it would have been a success with Jacobs at Dior and the other way around, if I had asked John Galliano to do Vuitton, it would not have worked. An essential ingredient in the success of the brand today is the real proximity of Galliano to the talent of Christian Dior."
luxurysociety.com
 
A lot of Dior clients won't continue to buy if Galliano comes back.
 
:buzz:
I hope it's true and not another stupid rumour reproduced by vogue.co.uk!
 
A lot of Dior clients won't continue to buy if Galliano comes back.

The same was being said when Galliano was fired. 'People won't buy Dior anymore because Galliano is gone'. In fact, the sales have increased. I suppose the majority of Dior customers doesn't even really know who Galliano is.
 
I really can't imagine Dior taking Galliano back, that would seem like a slap in the face to a lot of people who were insulted by him.
But what I really can imagine is someone like Jason Wu at Dior, though I doubt it would be much more than a prettier Gaytten, he is a popular designer; safe and saleable.
 
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