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Small Labels Lure Big Bucks in Fashion’s Latest Trend

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Small Labels Lure Big Bucks in Fashion’s Latest Trend

Post by xyz on Fri Nov 08, 2013 4:11 am


Small Labels Lure Big Bucks in Fashion’s Latest Trend

PARIS, France — Christophe Lemaire has spent the past three years designing dresses for Hermès. Now he wants to develop his own brand and ride a wave of investor interest in new labels which have the potential to become global brands.

He’s not alone. Whether it is private financing or takeovers by major luxury groups like LVMH, the latest trend in fashion is to find a promising niche label that has no history but plenty of imagination. Fuelling the bull market for young designers is executives’ conviction that demand for luxury goods is strengthening further in markets like China and the United States, especially for the kind of fresh looks that only new blood can create.

“People are taking comfort in the luxury goods sector’s track record and growth prospects, which is encouraging them even more to invest in young niche fashion brands,” a Paris-based banker said, declining to be named.

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