LVMH Holds More Than 20% of Hermès

French luxury-goods giant LVMH Moët Hennessy Louis Vuitton has increased its stake in rival Hermès International to more than 20%, increasing the tension in an unwelcome assault on the French maker of pricey handbags, scarves and other luxury goods. In a filing Tuesday with the French stock market regulator, LVMH said it now owns 20.2% of family-controlled Hermès. On Tuesday, LVMH left the door open to the further purchases of Hermès shares. In the filing, the company reiterated that its swoop on Hermès is friendly and it supports the strategy of the fashion house, which is known for its leather goods. The company characterized its stake as "strategic and long-term," and that it doesn't seek control of the company, which got its start making saddles back in 1837. But the family behind Hermès doubts the sincerity of LVMH Chairman Bernard Arnault, who has expanded his luxury-goods empire by pouncing on family businesses, dividing the clans and seizing control. LVMH is the world's largest luxury-goods company, measured by sales. Bertrand Puech, who heads one of the main branches of the Hermes family, has asked Mr. Arnault to sell his shares. Hermès Chief Executive Patrick Thomas called Mr. Arnault "an intruder in our garden." Mr. Arnault, one of France's most aggressive corporate raiders, surprised the family behind Hermès two months ago by announcing he had racked up a 17.1% stake in their company. LVMH bought its new shares on and off the market, the company said in the regulatory filing with the Autorite des Marches Financiers, or AMF. In addition, LVMH said it owns equity swap contracts worth another 0.2% of Hermès. Mr. Arnault used equity swaps to stealthily build up his initial stake in Hermès over the past several years, a move that caused the AMF to open an investigation last month into LVMH's move. The family, which says it controls 73% of the maker of Kelly and Birkin handbags, is determined to remain independent. A limited partnership that is open only to direct descendants of Hermes' founders protects the company from an unwanted takeover. But despite this shield, the family earlier this month announced plans to reinforce its defense by creating a separate holding firm comprising more than 50% of the company. The creation of the holding company is pending AMF approval.

Luxury rules rpelicashermes.com

ANYTHING below Hermes and Chanel is rubbish.” I burst out laughing. I am in a well-known consignment/second-hand boutique and talking to the owner on whether gently-used/pre-owned handbags were doing well, and she comes out with that gem. She adds that, no offence to the other brands, the fact remains that when it comes to resale value, if it’s an Hermes Birkin/Kelly or Chanel, whatever the item, you cannot mark it any less than what it’s worth. And you’ll probably get more than the marked price because it is all about branding, branding, branding. Apart from the fact that they are synonymous with the word “luxury”, their attention to detail, craftsmanship and their fiercely-guarded “name” allow them (pardon the pun) the luxury of setting a price because there will always be a willing buyer. When a luxury brand allows itself to be hijacked, mass-marketed and reduced to nothing more than a mere symbol, no one is going to bother paying top dollar for it, especially when it has been used. You think your “limited edition” bag from whichever well-known luxury label will sell? Think again. Limited editions appeal to a certain market segment, one that can obviously afford something like RM30K for an exotic skin, furry, prickly, whatever. This market segment does not shop for pre-owned goods unless – and here you have it – it’s a Birkin or Chanel in a hard-to-find colour, material or design. Apart from the fact that they are synonymous with the word “luxury”, their attention to detail, craftsmanship and their fiercely-guarded “name” allow them (pardon the pun) the luxury of setting a price because there will always be a willing buyer. When a luxury brand allows itself to be hijacked, mass-marketed and reduced to nothing more than a mere symbol, no one is going to bother paying top dollar for it, especially when it has been used. You think your “limited edition” bag from whichever well-known luxury label will sell? Think again. Limited editions appeal to a certain market segment, one that can obviously afford something like RM30K for an exotic skin, furry, prickly, whatever. This market segment does not shop for pre-owned goods unless – and here you have it – it’s a Birkin or Chanel in a hard-to-find colour, material or design.

For hire: Designer handbags replicashermes.com

As regular readers of any fashion magazine will know, each season sees the introduction of a new ‘it’ bag, often seen on the arm of Hollywood celebrities. But such style statements come with a hefty price tag. One of the most famous ‘it’ bags, the Hermes Birkin bag, named after actress Jane Birkin, has a waiting list of anywhere between eight months and six years, and the basic version costs a whopping 5,000 euros. While designer handbags are available to buy in Helsinki’s high-end fashion boutiques, for most people wishing to emulate designer trends the solution is usually to buy cheaper “look alikes” – not to be confused with fakes, of course. But now, budget-conscious Finnish fashionistas can get their hands on the real thing – by renting one. Entrepreneurs Susanna Pouttu and Marika Kivimurto started their designer-handbag rental business Vesca last year, inspired by seeing the Sex and the City movie, where Carrie’s assistant, played by actress Jennifer Hudson, decides to rent a designer handbag because she can’t afford to buy one. Pouttu and Kivimurto, who work in the interior-decorating and construction industry, admit to being fashion addicts, and say that there are plenty of other Finnish women like them. “I think people are more interested in higher-quality products these days, and they also know more about fashion than they used to,” says Pouttu. “We’d heard of fashion-rental companies in other countries like Sweden and the UK, but were disappointed that nothing like this was available in Finland. We decided to set up Vesca as a way of helping women like ourselves, who love beautiful things.” Staying up to date Vesca’s customers are typically 20-40 years old and come from all walks of life. “They love fashion, but they’re also normal people, who want to know how it feels to carry their dream handbag,” Pouttu explains. “Some are adventurous and want to take risks with their style, while others want to look polished. The right bag can complete a look, and make even a very simple and inexpensive outfit look good.” Customers first register as members of the Vesca club for a minimum of three months, following which they can opt to rent their choice of designer arm candy by the week or month. Members can then choose from a range of coveted bag designers including Burberry, Gucci, Louis Vuitton, Prada, DKNY and Mulberry. Prices range from around 39 euros for a month’s worth of a Guess handbag, to 186 euros for a Louis Vuitton “Manhattan”, adorned with its distinctive monogram print. “Designer bags easily cost more than 1,000 euros. But even if you can afford to buy one, you have to be certain that it’s right for you because it’s such a big investment. By renting, you can try it out and, if you love it, you can also buy it from us,” Pouttu explains. Most women have wardrobes of unworn clothing and accessories, she adds. Renting allows women to stay up to date with the trends and change their wardrobe regularly without spending a fortune, and without further accumulation. Making the right impression Some of those who rent from Vesca may be in need of an accessory for a special occasion, or perhaps hoping to make the right impression at a job interview or important meeting. Others may look on a designer bag as a status symbol, a way of emulating the style of their favourite celebrity, or feeling part of the high-fashion world depicted in Sex in the City. Others still, says Pouttu, may simply appreciate quality and beauty in an accessory that they can use every day. Whatever the motivation, the demand from an increasingly fashion-conscious population has already secured success for online fashion-rental companies elsewhere in Europe. Pouttu and Kivimurto intend to continue building their current customer base in Finland, and say the biggest challenge is to win trust with a Finnish public that is still somewhat cautious about buying or hiring luxury goods through the internet. “All of our bags are certified 100% authentic, but people in Finland are wary about buying designer products without seeing them in the flesh first, because there are so many fakes out there in the market,” says Pouttu. Fashion-conscious women will remain the main clients, but the two fashion entrepreneurs don’t rule out expanding into the male fashion market: “I think women understand a bit better than men the attraction of a designer handbag. I compare it to buying a sports car – you don’t need a luxury car to get from A to B. We don’t have any man-bags in our collection at the moment, but maybe in the future!” Read more: www.replicashermes.com

Why Claudine may have to say goodbye to London

DON'T worry Claudine, London probably isn't all it's cracked up to be anyway. Ireland's premier WAG Claudine Keane (27) may be the epitome of the footballer's wife, but she is about to get a harsh dose of reality. As her husband Robbie (29) is rumoured to be making a move to Birmingham City FC, the former beauty queen will be swapping Oxford Street, the West End and Chinawhite for The Merry Hill Centre, the Hippodrome and Subway City nightclub. The mum-of-one has embraced the WAG lifestyle with gusto, and may be just the injection of glamour that Brum needs. But with every big move comes a lifestyle adjustment. This Dublin beauty may be used to the likes of celebrity hairdresser Stuart Philips grooming her locks, but Birmingham has salons too -- however, your chances of running into Alex Gerrard and Carly Zucker are slim to none. Birmingham City are hoping to sign the Tottenham striker ahead of arch-rivals Aston Villa, and Robbie is already said to be out of favour with Spurs manager Harry Redknapp, who loaned him to Celtic earlier this year. And when her husband was on loan in Glasgow, she was conspicuously absent from his side, instead choosing to spend her days in London with their young son Robbie (2). At the time, she defended her choice saying: "It would be wrong to bring Rob up north all the time, it wouldn't be fair to him to keep him in a hotel room for the weekend or whatever so it's better that we stay where we are while his dad's working." Now, as the date nears, the question remains: will glamorous Claudine swap the bright lights of London for the er, unique charms of Birmingham? As her modelling career continues to soar, having been named the face of Ultimo lingerie once again, she is likely to stay put in the English capital. While she insists she is the antithesis of a WAG, she is definitely the poster girl for footballers' wives. She made headlines when she debuted her new €6,300 Hermes Birkin bag in Dublin earlier this winter, an item that might stick out among Birmingham's elite. As the accessory is worth nearly the average person's yearly rent, she has finally joined fashion's elite and beat the four-year waiting list. So, there is one consolation prize in this -- if she does choose to stick to London, at least she has something to clutch on to at night.

Piece of old croc could put you in pound seats

An elderly but extremely handsome woman in pink, trailing a fur coat and a very young husband behind her, wafts in to Christie’s grand hall and tries to find a seat in the auction room. There, the crowd - mostly men in suits and women wearing silk scarves and expensive blow-dries - sit in reverential silence, their faces hardened in focus. All of them are here to buy one thing. No, not a classical painting nor an antique vase - they’re here for a handbag. So, what’s so special about this bag? Victoria Beckham is rumoured to own 100 of them worth £1.5 million (R16.1m), Lady Gaga enraged fashion lovers across the world by defacing one, there’s a six-year waiting list to have one made, but now you can own your very own (albeit secondhand) version… if you’ve got a spare £49 000 (R527 558), that is. Yes, you read that right. At Christie’s, an anonymous bidder paid £49 000 for a secondhand bag. But this was no ordinary bag: this was a limited-edition Hermes Birkin bag and, it appears, women will do (or pay) whatever it takes to get one over their arm - even in the middle of a recession. Forget the British Fashion Awards, the bi-annual auction of Hermes bags at Christie’s is the real fashion event of the year. Fifty-one handbags went under the hammer, and the Rouge Moyen alligator Birkin, 1998, which sold for £49 250, broke Christie’s records as the most expensive handbag ever sold. “The most sought-after bags are always the Birkins and Kellys (named after actresses Jane Birkin and Grace Kelly),” says Pat Frost, Christie’s director of fashion and textiles. “And the interesting thing is that yes, of course, they’re bought by wealthy people, but we don’t see the same people coming back over and over again. The mentality seems to be that you search for your perfect Hermes bag and once you find it, you’re done.” So why the eye-watering price tags? “The really expensive bags are the ones made of exotic leathers: crocodile, lizard, alligator and ostrich. “With the croc bags, which command the very highest prices, the paler the colour, the more the bag is worth because it’s extremely hard to dye the skins successfully. “In addition to that, there is only a limited supply of crocodile in the first place. “Hermes don’t give us the details of their distribution and production but, for example, we know that the Sloane Square store gets only four crocodile bags to sell off the shelf each year.” And the buyers at the auction know that all too well. An elegant woman in her 60s, dressed in purple, fought with an internet bidder to snap up a black matte alligator Birkin for a mere £32 450 - an anniversary present from her husband. “I’ve always loved Hermes bags, I had my eye on a few here today. I particularly wanted crocodile or alligator skin - they’re almost impossible to come by,” she said. Right. Understood. Material limited and production tricky - but you could say the same thing about state-of-the-art computers or cars, and they don’t seem to be holding their value so well. In fact, the Hermes bag is almost unique in its position as a “recession-proof status accessory”. While most designers have conspicuously not shown “It” bags on their catwalks of late, the Hermes bag fever continues unabated. “The point about Hermes bags is that they’re more than fashion accessories,” says Rebecca Lowthorpe, Elle magazine’s fashion features director. “They’re more comparable to collectable works of art. We are talking about the absolute pinnacle of heritage luxury… We just wouldn’t be having this conversation about a bag made by, say, Chanel.”

Christmas gifts that grow in value

Posters, stamps, coins, books and medals – presents that increase in value needn't be dull. In fact, chose well, and even toys can prove to be an investment. Dinky toys are very popular with collectors at the moment, as are Corgi and Matchbox toys and Hornby locomotives. If it's pre-1970 and in good condition, you may have a collector's item on your hands. When Dinky toys were first sold they were produced without boxes, but packaging became more detailed in the Sixties and toys were produced to tie in with television programmes such as Thunderbirds, so the packaging adds significant value to toys from this era. The boxes can even be worth more than the toys – in the case of a Batmobile from the Sixties, for example, 60pc of the value is in the box. Pop and rock memorabilia became sought after as collectables in the Eighties and the value of items have generally increased dramatically over this time. The most expensive and probably well-known sale in this sector was John Lennon's piano on which he composed 'Imagine'. It was bought in October 2000 by the singer George Michael for a hammer price of £1.45m, with an extra 15pc commission bringing the total sale price to £1.67m. Though this sector generates some high end items, music memorabilia is a good starting sector for the budding collector or investor. Neil Roberts, head of the department for Popular Culture for auction house Christie's points out tickets and flyers as

Hermes Shareholder Does Not See Delisting: Report

A bid to delist French leather bag maker Hermes shares from the stock exchange has its charm but would be very costly, a family shareholder and top manager said in a newspaper on Sunday. Hermes is setting up a holding company to fend off rival LVMH , which in October revealed it had 17.1 percent of Hermes. The new holding needs clearance from French market watchdog AMF that it does not have to bid. "In effect, we did not go on the bourse, as is usual, to get funding, we don't need it, but to assure family shareholders that their shares were liquid," Guillaume de Seynes said in Italian business daily Il Sole 24 Ore. De Seynes a descendant of Thierry Hermes, the company's founder, is operational number 2, the newspaper said. "So the idea has a charm, but as you yourself say, very high costs. And then we have a lot of faithful and happy individual shareholders. We would not like to betray them," he said when asked by Il Sole about a bourse exit. The buy-out of other shareholders would cost up to 4 billion euros ($5.3 billion), the newspaper said. Hermes has a market capitalization of 16.6 billion euros. De Seynes made no comment on the new holding and a special AMF exemption from having to bid for Hermes. The company says the move does not change control of Hermes. The French Adam minority shareholders association has said it would appeal any exemption granted by AMF that the holding does not have to bid. In the interview, De Seynes said Hermes has a long-term strategy, which does not involve growth in volumes at any cost and which favors quality and creativity, adding this strategy requires a stable set of shareholders.