H&M To Launch New Concept Store

High cotton prices have inspired H&M to launch a new line of stores. Yes, cotton prices and the discounting of unsold merchandise are the factors H&M attributes to its decline in margins. According to the CEO of H&M, Karl-Johan Persson, the new concept store will be completely independent and will target a "gap in the market" that the company's analysts have identified and hope will lead to an increase in sales. Some reports claim that the new chain will carry a more high-end line, with possible prototypes having already been revealed on the red-carpet, with a custom-made dress worn by Michelle Williams to the British Academy of Film and Television Arts awards in London and the launch of the retailer's Exclusive Glamour Conscious Collection.

H&M Glamour Conscious Collection

Furthermore, the project is said to involve designer Behnaz Aram, who previously worked with Whyred. However, H&M has remained H&Mum on the details of the line, refusing to even confirm if it will involve clothing. But it has confirmed that Behnaz Aram will be on the design team for the new line. TFG will be sure to keep our readers posted as more details come to light. 

CFDA and Ebay: You Can't Fake Fashion

The Council of Fashion Designers of America has teamed up with Ebay in a campaign against counterfeit goods, launching a collection of "You Can't Fake Fashion" handbags created by 75 designers.  The handbags will be sold online starting today.  As many of our readers may know, Ebay has been an online portal for counterfeit goods and the company has struggled to fight against it.  Their partnership with the CFDA sends a clear message that Ebay does not condone design piracy.

Counterfeit goods cost designers millions of dollars in sales and can cause serious trademark dilution. Steve Kolb, CEO of the CFDA, summed up the partnership, explaining that "the CFDA works to protect designers' intellectual property and fighting counterfeits is a critical issue to the CFDA, eBay and the fashion industry at large... we continue to collaborate with eBay on this bold campaign to educate shoppers on the dangers of counterfeits, raise awareness of our mutual dedication to the fight against fakes and emphasize the importance of original design." TFG got an up front and personal look at the one-of-a-kind handbags that were on display inside the Lincoln Center during NY fashion week in February. Check out pics of a few of our favorite designs below. To support original designs and fight against fake fashion, buy a handbag here. 

The Row

Rag and Bone

Narciso Rodriguez

Diane Von Furstenberg

Zara Opens New Flagship Store on 5th Avenue

Today, Zara opened a 32,000 square foot flagship prototype at 666 Fifth Avenue at a price of $324 million. As reported by WWD, Zara will be able to create a new brand image with the flagship store because it has more "architectural character," with "virtual catwalks" and rooms highlighting "different aspects of the collection." Even more impressive than its size is its sustainability, proving that eco-friendly is as important to Zara as affordable price points.

The Fashion Grid is excited about this amazing expansion, which is a testament to the success of the international retailer. TFG loves Zara- not only because of their affordable fashions, but mainly because of their brilliant business model.  Zara is one of the few fast-fashion retailers that has an in-house design team working to tweak the designs of the high-fashion lines they are inspired by, making a good faith effort to avoid knocking off designer looks line-by-line (TFG supports inspired by designs, but not knock-offs).

Zara also creates a level of exclusivity in their pieces by avoiding overproduction of any one single item. The design team designs on demand, based off daily sales reports. Ever notice how quickly that blazer you had your eye on disappeared? Remember, the one you saw, hesitated to purchase, only to change your mind, return to the store, and find it has been replaced by a new set of blazers in new colors? That's no accident. It is a carefully calculated component of their operations and once a customer catches wind that Zara's pieces go quickly, they'll be more inclined to make the purchase and feel like they got something valuable- this creates a feeling of exclusivity even though the piece isn't designer label.  Pretty genius people working over at Inditex, Zara's parent company. Not only does the limited production make each piece more valuable to the customer, but it also allows Zara to stay on trend with high turnovers. The retailer produces 20,000 to 30,000 designs each year. At that rate, the flagship store can only do wonders in satisfying the insatiable appetite of fashionistas looking for affordable pieces.

For our fellow fashion geeks out there, check out this Harvard Business School article on Zara.
 

CFDA Incubator and NYU Stern's Consulting Support Emerging Designers

Two years ago, the Council of Fashion Designers of America launched the CFDA Fashion Incubator Program to provide emerging designers with support, mentorship, and meaningful educational opportunities with the industry's leading experts. Last year, the program renewed its partnership with NYU's Stern Consulting Corp. where designers were given the opportunity to work with selected NYU Sterm M.B.A. students who helped them develop their respective business strategies.  The Stern students showed the program's tenants how to develop full financial statements, acquire investors, create a proper cash flow plan, keep up with production, enter into collaborations and licensing deals, and learn how to merchandize their collections.

As creativity has the tendency to be exploited because of poor business and legal strategies, TFG is proud of the Incubator's efforts and its partnership with NYU Stern in launching the careers of so many emerging designers. The program has many collaborations in place to help foster the business development of its tenants. They're clearly doing something right, as Prabal Gurung has gained rapid success since his debut at NYFW in February 2009 and has just this week already become a member of the CFDA.

To learn more about the CFDA Fashion Incubator Program, click here.