Deluxe: How Luxury Lost Its Luster (43 page)

That same month:
“U.S. Charges 17 with Trafficking in Counterfeit Goods, Money Laundering, Attempted Bribery of a Public Official,” United States Attorney Southern District of New York, press release, June 4, 2004.

The street value:
Progrebin, “Reality Check,” p. 140.

The same is true:
Peter S. Goodman, “In China, a Growing Taste for Chic; But Fakes Also Vex Developing Market,”
Washington Post,
July 12, 2004, p. A1.

Many of the street-level:
Marcus Mabry and Alan Zarembo, “Africa’s Capitalist Jihad,”
Newsweek Atlantic Edition,
July 7, 1997, p. 42.

During a two-day:
Julia Preston, “U.S. Charges 51 with Chinatown Smuggling,”
New York Times,
November 13, 2004, p. B2.

CHAPTER TEN: WHAT NOW?

In
2006
:
Emily Flynn Vencat, “Shaping the New Looks,”
Newsweek International,
May 15–22, 2006, p. 82.

In
2004
:
Paul Klebnikov, “Russia’s Richest People: The Golden Hundred,” Forbes.com, July 22, 2004.

The Chinese didn’t:
Claire A. Kent, Mandy Deex, Rachel Whittaker, Angela Moh, and Andy Xie, “Luxury Goods in China: A Long-Term Investment,” Morgan Stanley, February 27, 2004, p. 4.

“It’s cheaper”:
Lisa Movius, “Shanghai’s Bund 18 Luring Luxury Brands,”
Women’s Wear Daily,
January 11, 2005, p. 18.

By
2004
:
Kent, Deex, Whittaker, Moh, and Xie, “Luxury Goods in China,” p. 6.

“In other provinces”:
Sarah Mowar, “Dressed to Shanghai,”
Vogue,
October 2004, p. 336.

“We are still”:
Lisa Movius, “China’s Luxury Rush: Expanding Vuitton Shows Market’s Growth,”
Women’s Wear Daily,
December 29, 2005, p. 12.

By the end of
2006
:
Amanda Kaiser, “Tilling the Luxury Landscape,”
Women’s Wear Daily,
March 21, 2006, p. 2B.

Calvin Klein:
Lisa Movius, “Valentino Unveils Women’s for Mainland China,”
Women’s Wear Daily,
September 26, 2006, p. 17.

Since its arrival:
Zhu Ling, “Louis Vuitton to Open Three New Stores in China,” www.chinadaily.com.cn/bizchina/2006–05/15/content_589908.htm, May 15, 2006.

Mainland China:
Luisa Zargani, “Luxury and the Lands of Opportunity,”
Women’s Wear Daily,
November 29, 2004, p. 4.

“Three years ago”:
Lisa Movius, “Bulgari Continues Expanding in China,”
Women’s Wear Daily,
September 29, 2006, p. 22.

“Mainlanders go”:
Tom Miller, “Shopping Is the Lure for Mainlanders,”
South China Morning Post,
November 7, 2005, p. 16.

Mainlanders are enrolling:
Howard W. French, “In China, the Upper-Class Quest Starts Low—at Age 5,”
International Herald Tribune,
September 22, 2006, p. 1.

“I have customers”:
“Seeking Russian Gold: Despite Turmoil, Brands Rush to Booming Market,”
Women’s Wear Daily,
September 30, 2004, p. 1.

At many of Armani’s:
Miles Socha, “Couture’s New Hope: Russia, Asia and the Mideast,”
Women’s Wear Daily,
January 23, 2006, p. 5.

Outside of Moscow:
Natasha Singer, “Russia’s Luxury Mania: Stores Grab Real Estate to Build New Empires,”
Women’s Wear Daily
, October 4, 2004, p. 1.

After the
1998
:
Robert Galbraith, “Courting the New Russian and Indian Luxury Consumers,”
International Herald Tribune
, September 30, 2005, p. 14.

For the Dior opening:
Miles Socha and Brid Costella, “Christian Dior’s New Flagship on Red Square,”
Women’s Wear Daily,
October 24, 2006, p. 3.

Nearby, Mercury Group:
Singer, “Russia’s Luxury Mania,” p. 1.

“Before we designed”:
Ibid.

Christian Dior reported:
“Seeking Russian Gold,” p. 1.

In
2005
:
Galbraith, “Courting the New Russian and Indian Luxury Consumers,” p. 14.

“People have the money”:
Rosemary Feitelberg, “On to India, China,”
Women’s Wear Daily,
December 5, 2006, p. 17.

There are more:
Ibid.

A study by Bain:
Ibid.

The most coveted:
Cecily Hall, “Far East Fashion-Forward,”
Women’s Wear Daily,
June 1, 2006, p. 12.

“In just the last year”:
Betsy Lowther, “The Treasures of India: As Luxe Brands Rush In, Prime Space Runs Out,”
Women’s Wear Daily,
November 7, 2006, p. 1.

Analysts at McKinsey:
Vencat, “Shaping the New Looks,” p. 82.

“The chance of”:
Amy S. Choi, “Eyeing India’s Riches: As Barriers Come Down, Luxury Brands Go Slow,”
Women’s Wear Daily,
March 13, 2006, p. 1.

State governments:
Ritu Upadhyay, “Bombay Dispatch: Expanding Malls,”
Women’s Wear Daily,
March 13, 2006, p. 11.

The finance ministry:
Choi, “Eyeing India’s Riches,” p. 1.

“It’s a PR machine”:
“Talk about Branding,”
Time
, June 2005, Bonus Section, p. A4.

“Our hotels”:
J. J. Martin, “Travel with Style,”
Harper’s Bazaar,
Fall 2006, p. 89.

Fashion darling:
Miles Socha, “Philo Said Working with Gap,”
Women’s Wear Daily,
November 27, 2006, p. 2.

Burberry began:
Claire Kent, Mandy Deex, Elke Finkenauer, Rachel Whittaker, “Luxury & Apparel Retail,” Morgan Stanley Equity Research Europe, March 7, 2005, p. 17.

Mizrahi calls:
Ibid., p. 10.

CHAPTER ELEVEN: NEW LUXURY

In early
2006
:
Amanda Kaiser, “Jil Sander Loss Hits $46.3 Million in 2005,”
Women’s Wear Daily,
May 30, 2006, p. 3.

“All these big”:
Sarah Raper, “LVMH’s Arnault: The Tower and the Glory,”
Women’s Wear Daily,
December 6, 1999, p. 8.

Burberry CEO:
“Continental Compensation,”
Women’s Wear Daily,
July 17, 2003, p. 14.

according to
Forbes:
www.forbes.com/lists/2006/12/Rank_1.html.

“A mobile phone”:
Luisa Zargani, with contributions by Alessandra Ilari, “Prada Calling Via Venture with LG,”
Women’s Wear Daily,
December 13, 2006, p. 11.

“She says”:
Holly Brubach, “In Fashion: Forward Motion,”
New Yorker,
June 25, 1990, p. 79.

The wealthiest:
Sharon Edelson, “Chasing Big Spenders: Stores Step Up Services for Key Luxe Customers,”
Women’s Wear Daily,
August 1, 2006, p. 1.

Danielle Morolo:
Ibid.

“My best customer”:
Ibid.

Saks Fifth Avenue:
Ibid.

Ackerman, Diane.
A Natural History of the Senses
. New York: Random House, 1990.

Agins, Teri.
The End of Fashion: How Marketing Changed the Clothing Business Forever
. New York: Quill, 2000.

Arnault, Bernard.
La Passion Créative: Entretiens avec Yves Messarovitch
. Paris: Plon, 2000.

Becker, Jasper.
The Chinese.
New York: Free Press, 2000.

Bindloss, Joseph; Sarina Singh; Deanna Swaney; and Robert Strauss.
Mauritius, Réunion & Seychelles
. Victoria, Australia: Lonely Planet, 2001.

Bloch, Phillip.
Elements of Style: From the Portfolio of Hollywood’s Premier Stylist.
New York: Warner, 1998.

Bonvicini, Stéphanie.
Louis Vuitton: une saga française
. Paris: Fayard, 2004.

Brubach, Holly.
A Dedicated Follower of Fashion.
London: Phaidon Press, 1999.

Burr, Chandler.
The Emperor of Scent: A Story of Perfume, Obsession and the Last Mystery of the Senses
. New York: Random House, 2002.

Celant, Germano, and Harold Koda.
Giorgio Armani
. New York: Solomon R. Guggenheim Foundation, 2000.

Chenoune, Farid.
Carried Away: All About Bags
. Paris: Le Passage Paris—New York Editions, 2004.

Ferragamo, Salvatore.
Shoemaker of Dreams: the Autobiography of Salvatore Ferragamo
. Florence, Italy: Giunti Gruppo Editoriale, 1985.

Fishman, Ted C.
China, Inc.
New York: Scribner, 2005.

Forden, Sara Gay.
The House of Gucci: A Sensational Story of Murder, Madness, Glamour, and Greed
. New York: HarperCollins, 2001.

Forestier, Nadège, and Nazanine Ravaï.
The Taste of Luxury: Bernard Arnault and the Moët-Hennessy Louis Vuitton Story
. London: Bloomsbury, 1992.

Fox, Patty.
Star Style: Hollywood Legends as Fashion Icons
. Santa Monica, Calif.: Angel City Press, 1995.

Galbraith, John Kenneth.
The Affluent Society,
New York: Houghton Mifflin, 1998.

Hall, Marian, with Marjorie Carne and Sylvia Sheppard.
California Fashion: From the Old West to New Hollywood
. New York: Abrams, 2002.

Hastreiter, Kim, and David Hershkovits. 20
Years of Style: The World According to
Paper. New York: Harper Design International, 2004.

Hata, Kyojiro.
Louis Vuitton Japan: The Building of Luxury
. New York: Assouline, 2004.

Huver, Scott, and Mia Kuczinski Dunn,
Inside Rodeo Drive: The Store, the Stars, the Story.
Santa Monica, Calif.: Angel City Press, 2001.

Johnson, Anna.
Handbags: The Power of the Purse
. New York: Workman, 2002.

Karnow, Stanley.
Paris in the Fifties
. New York: Random House, 1997.

Kennedy, Shirley.
Pucci: A Renaissance in Fashion
, New York: Abbeville Press, 1991.

Krannich, Ronald L.
The Treasures and Pleasures of China: Best of the Best
. Manassas Park, Va.: Impact Publications, 1999.

Levine, Joshua.
The Rise and Fall of the House of Barneys
. New York: Morrow, 1999.

Madsen, Alex.
Chanel: A Woman of Her Own
. New York: Henry Holt, 1990.

Mally, Ruth Lor.
China Guide
, Cold Spring Harbor, N.Y.: Open Road Publishing, 2002.

Morais, Richard.
Pierre Cardin: The Man Who Became a Label
. London: Bantam, 1991.

Newton, Helmut.
Helmut Newton, Autobiography
. New York: Doubleday, 2003.

Pasols, Paul-Gérard.
Louis Vuitton: The Birth of Modern Luxury
. New York: Abrams, 2005

Pietrogrande, Pietra.
Antico Setificio Fiorentino
. Florence, Italy: Le Lettere, 1999.

Pochna, Marie-France.
Christian Dior: The Man Who Made the World Look New
. New York: Arcade, 1996.

Rawsthorn, Alice.
Yves Saint Laurent
. London: HarperCollins, 1996.

Riva, Maria.
Marlene Dietrich: By Her Daughter.
New York: Knopf, 1993.

Schor, Juliet B.
The Overspent American: Why We Want What We Don’t Need.
New York: HarperPerennial, 1999.

Sebag-Montefiore, Hugh.
Kings on the Catwalk: The Louis Vuitton and Moët-Hennessy Affair.
London: Chapmans, 1992.

Silverstein, Michael J., and Neil Fiske, with John Butman.
Trading Up: The New American Luxury.
New York: Portfolio, 2003.

Smith, Sally Bedell.
Reflected Glory: The Life of Pamela Churchill Harriman.
New York: Simon & Schuster, 1996.

Twitchell, James B.
Living It Up: Our Love Affair with Luxury
. New York: Columbia University Press, 2002.

Veblen, Thorstein.
The Theory of the Leisure Class
. New York: Penguin, 1994.

Vreeland, Diana.
D.V.
New York: Da Capo Press, 1997.

Wallach, Janet.
Chanel: Her Style and Her Life
. London: Mitchell Beazley, 1999.

Watson, Albert.
Prada a Milano
, Milan: Grafica di Italia Lupo.

White, Palmer.
The Master Touch of Lesage: Embroidery for French Fashion
. Paris: Editions du Chêne, 1987.

AAA Replicas

Abdul, Paula

Academy Awards

Armani showcased

celebrities, paid by luxury brands

designer salons

swag

Ackerman, Diane

Adrian

Advertising

embarrassing ads

luxury products

Agache-Willot, Arnault buy-out

Agalarov, Emin

Agnelli, Gianni

Ahrendts, Angela

Alaia, Azzedine

A. Lange & Söhne

Alexander the Great

Alice Cadolle

Allen, Joan

Allure perfume

Amazon.com, counterfeits

American Gigolo

Amic, Louis

A. Michel

Amie, Jean

Amiot, Félix

Antico Setificio Fiorentino

Anya Hindmarch

Aoki, Jun

Aquae vitae

Architecture, luxury

China

India

Japan

Arlequinade

Armani, Giorgio

background of

Barneys exclusive

China and production

China shops

on going public

in Hollywood

hotels

soft suit

Armani Jeans

Arnault, Bernard

background/personality

business tactics of

eLuxury.com

on luxury products

on production and profit

renovation of brands

vertical integration, use of

See also
LVMH Moët Hennessy Louis Vuitton

Arnault, Jean

Arpège

Arte della Seta

Asprey

Atlantic Philanthropies

Avedon, Richard

Aykroyd, Dan

Baccarat

Bacci, Carlo

Bach, Justine

Baciocchi, Roberto

Bader, Théophile

Baguette handbag

Balenciaga

closing of

perfume

PPR acquisition

Ballantyne

Balmain, Pierre

Baltard, Victor

Banton, Travis

Bao-Wen Chen

Bardot, Brigitte

Barneys

Barrymore, John

Barton, Mischa

Basinger, Kim

Baume & Mercier

Bazar Femme perfume

Beaux, Ernest

Becker, Jasper

Beckham, Victoria

Beckinsale, Kate

Bellagio, luxury shopping

Bellucci, Monica

Benois, Nicola

Bergé, Pierre

Bergére, Eric

Berkshire Knitting Mill

Berman, Rodger

Berry, Halle

Bertelli, Patrizio business tactics of

on counterfeiting

and Fendi buy-out

as Prada chairman

Betancourt, Bruce

BETC Luxe

Beverly Hilton

Bhaskar, Prasanna

Bianchi, Gabriella

Bianchi, Georgio

Bianchi, Giambattista

Bianchi, Luigi

Binoche, Juliette

Birkin handbags

Birnbaum, David

Bismarck, Mona

Black, Libby

Blair, Selma

Blake, Brian

Blanchette, Cate

Blige, Mary J.

Bliss

Bloch, Phillip

Bloomingdale, Betsey

Blow, Isabella

Bohan, Marc

Bois des Isles perfume

Bonaparte, Josephine

Bonaparte, Napoleon

Bonvicini, Stéphanie

Boo.com

Born to Kill Gang

Bottega Veneta

Boucheron

Boussac, Marcel

Boussac Group

Bow, Clara

Branding

first, Louis Vuitton

and franchises

Bravo, Rose Marie

Brazil, Daslu.
See
Daslu.

Brodie, Carol

Brooks, Bonnie

Brown Derby

Brubach, Holly

Brunschwig, Serge

Buckner, Kris

Bucol silk factory

Bugatti, Ettore

Bulgari

Bulgari Group

Bulgari Hotel

middle market expansion

perfume

Bulgari, Paolo

Bulgari, Sotirio

Bullock’s

Burberry

and Chavs

China, production in

fast fashion

Burnett, Carol

Cadolle, Herminie

Cadolle, Poupie

Caesars Palace, luxury shopping

Cahn, Miles

Calvin Klein

ads

flagship store, Marino design

Hollywood salon

Cambodia, textile production

Canal Street, counterfeits

Canepa, Michele, Taroni silk factory

Canessa, Alfredo

Cannes Film Festival

Cantrell, Victoria

Capel, Arthur “Boy”

Carcelle, Yves

Cargo theft

Carl, Michael

Caroline, princess of Monaco

Caron, Leslie

Cartier

counterfeits lawsuit

in Hawaii

in Japan

perfume

Carven

Casagrande, Adele

Celebrities

perfume brands

See also
Hollywood and luxury

Céline

Arnault buy-out

Chinese production

in Hawaii

on Rodeo Drive

Celux club

Cerruti

Chalayan, Hussein

Chan, Jackie

Chanel

acquisitions of

beauty business profitability

flagship store, Marino design

handbags

in Hawaii

in India

Lagerfeld ready-to-wear

luxury building, Japan

origin of

perfumes of.
See also
Chanel No. 5

on Rodeo Drive

Chanel, Gabrielle “Coco”

background/personality

in Hollywood

perfume creation

and Wertheimer family

Chanel Beauté

Chanel No. 5

bottle

flower farms for

ingredients of

marketing of

origin/development of

quality control

and Wertheimer family

Chanel No. 19 Cristalle

Chanel No. 22

Charles, prince of Wales

Chateau Marmont

Chavez, Robert

Chavs

Chelsea Premium Outlets

Chelsea Property Group

Chenal, Marthe

Chen Chang

Chen Guohui

Cheng Wai Keung

Chenoune, Farid

Cher

Chevalier, Alain

Child labor, China

China and luxury goods

Armani

bestselling brands

and Handel Lee

haute couture buyers

Louis Vuitton

luxury brands, scope of

nouveau chic

origin/development of

sales figures

shopping areas

Three on the Bund

Western buy-outs

China and production

anticounterfeiting measures

Armani production

Burberry production

child labor

counterfeit goods

handbags

human-rights issues

silk

textiles

Chirac, Bernadette

Chloé

and Net-a-Porter

Choel, Patrick

Choi, Sandra

Choo, Jimmy

Chopard

Chou, Silas

Christian Lacroix

Arnault influence

perfume

in Russia

Christian Louboutin.
See
Louboutin, Christian

Christie’s

Church & Co.

Churchill, Winston

Cinderella shoes

Citterio, Antonio

Cleopatra, perfume use

Coach

Coco perfume

Cohen, Marc

Colbert, Jean-Baptiste

Collasse, Richard

Combs, Sean “P. Diddy”

Comme des Garçons

Committee Colbert

Computerization, Gucci handbag production

Cook, Anthony

Cost-cutting measures

and China.
See
China production

perfume

quality, loss of

textile production

Costumers, film

Coty

Counterfeiting

anticounterfeiting measures

and child labor

China and production/sale of

Gucci legal action

history of

and human trafficking

Internet sales of fakes

legal measures

losses attributed to

and Mourides

organized crime/gang control of

profitability of

purse-party ladies

raids/seizure

sale in U.S. stores

Santee Alley, Los Angeles

and September 11 attacks

willful blindness

Coupe d’Or perfume

Courrèges

Courtière, Jean

Courtyard art gallery

Crampton, Maureen

Crawford, Cindy

Crawford, Joan

Crawford, Lane

Cristal

Crocus City

Cruise, Tom

Crystal, Billy

Cuir de Russie perfume

Cunningham, Bill

Curry, Ann

Customs-free zones

Cutrone, Kelly

Daslu

da Vinci, Leonardo

Davis, Loyal

Davis, Sammy Jr.

de Bazelaire, Menehould

Debt, consumer

Decades vintage clothing

Declaration perfume

de Dreux, Alfred

de Havilland, Olivia

de la Renta, Oscar

Delpy, Julie

del Rio, Delores

de Medici’, Cosimo

de Medicis, Marie

DeMille, Cecil B.

Democratic luxury

Deng Xiaoping

De Palma, Brian

Department stores

couture reproduction rights

ready-to-wear

de Pompadour, Madame

Descamps

Descourtieux, Catherine

Desert Hills Premium Outlets

De Sole, Domenico

Gucci reorganization

leaves Gucci

and takeover attempt

Dewavrin, Anne

DFS Galleria

Diana, princess of Wales

Dickinson, Janice

Diddy, P.
See
Combs, Sean “P Diddy,”

Dietrich, Marlene

Dincklage, Hans Gunther von

Dior

Arnault buy-out

Arnault make-over

fashion shows

flagship store, Marino design

in Hollywood

licensing

middle market expansion

New Look

online site

perfumes of

on Princess Diana

in Russia

Diorella

Diorissimo

Di Risio, Giancarlo

Doctoroff, Tom

Dolce & Gabbana

Donna Karan, flagship store, Marino design

Doyle Dane Bernbach

Driver, Minnie

Dubai, designer hotels

Ducasse, Alain

Duchin, Peter

Dumas, Jean-Louis

background/personality

business tactics of

Dumas, Rena

Dumas, Robert

Dunhill

Dunne, Irene

Dupree, Gerald

Duriez, Jean-Michel

Duty-free shopping

Arnault makeover of

Duty Free Shoppers (DFS)

Hawaii

origin/development of

Eau de cologne, versus perfume

Eau Fraîche

Eau d’Hermès

Eau de Merveille perfume

Eau parfumée au thé

Eau de la reine de Hongrie (Queen of Hungary Water)

e-Bay, counterfeits

Egyptians, perfumes

Ellena, Jean-Claude

background/personality

perfume production

Ellwood, Craig

eLuxury.com

Emporio Armani perfume

Encore hotel/casino

Enfleurage

Escada, fast fashion

Esplanade

Eternity perfume

Eugénie, French empress

Evelyne Shoes

Extraction, perfume production

Fairbanks, Douglas

Fakes.
See
Counterfeiting

Falic Group

Fang, Kenneth

Fang Bros.

Farmer, Frances

Fashion magazines, China

Fashion Show (Las Vegas)

Fashion shows

early, Dior

first

Fast fashion, H&M

Feeney, Chuck

Fendi flagship store, Marino design

handbags

in India

LVMH buy-out

Fendi, Edoardo

Fendi, Silvia Venturini

Fenix

Ferragamo

fast fashion

Ferragamo Group

hotels

Ferragamo, Salvatore