The Business of Fashion: Not Owning
Your Name
When I decided to study
fashion design, I was never presented with the notion that I may have to sell
my designer name. When lessons arose concerning the business side of fashion
all talk was about brand image and recognition using well-known fashion designers
as the example.
As a designer or design student, you know top fashion brands like Calvin Klein, Donna Karan, Tommy Hilfiger, Emanuel Ungaro and a few other major designer names. However, did you know that these designers do not own their name/brand?
As a designer or design student, you know top fashion brands like Calvin Klein, Donna Karan, Tommy Hilfiger, Emanuel Ungaro and a few other major designer names. However, did you know that these designers do not own their name/brand?
Owning a
Label is Expensive
There are hundreds, if not
thousands, of fashion designers worldwide who work for design houses, own
design houses or work as freelance designers. Those who become famous and start
their own fashion lines have to keep in the back of their minds the possibility
of selling their name. It sounds kind of crazy that a person would sell their
name, however, running a design house that produces multiple lines and presents
several times a year is very costly. Unless the designer is independently
wealthy where he or she can use their own capital to fund the business when
sales and operating costs become too much, then a financial backer is often needed.
However, a financier not only is seeking to invest in a designer's brand...they
often are taking ownership of it along with that designer's name.
The
Benefit of Selling Your Name
Holding companies
like LVMH (Moet Hennessy-Louis
Vuitton), PPR (Pinault-Printemps-Redoute)
and the apparel company Phillips Van Heusen (PVH) own
well-known designer brands. Some specialize in simply fashion like PVH while
others have pretty much cornered the market on luxury brands like LVMH. The
benefits to fashion designers who sell their brand -- their name -- to these companies
is primarily the abundant cash flow that allows them to have their name on
multiple clothing lines, fragrances, accessories and a few luxury goods.
On their own, with their
own income, very few design houses or designers can afford to continually produce
such a broad spectrum of goods even if they are making a sizable profit. This
does not mean it is impossible. Chanel and Armani are design houses who have
full control over their brand and multiple product lines and are courted by
buyers seeking a piece of their fashion design pie.
The
Downside of Selling Your Name
Obviously not owning your
name would be the major downside to selling it. However, the trickle-down
effect of this runs deeper.
-
You don't have
control over what your name is attached to. If you are still active within your
brand, you will have some input. Ultimately, you do not make the final call.
-
You can be
fired. Unless you have a contract with the company which stipulates that you
will be head designer or creative director over your brand until your decide to
retire, then you can be replaced. Look at the misfortune John Galliano brought upon himself in
February 2011. Christian Dior owns John Galliano's brand and was fired on March
1, 2011.
-
If fired,
retired or your brand is dissolved, you lose the right to design under your
name. One of the pitfalls for Galliano when he was fired, was he lost the right
to design clothing under his name. Christian Lacroix's brand was
diminished to licensing for fragrances and accessories. While the designer
himself still creates fashion costume, he cannot design under his name anymore.
Designers
and the Companies That Own Their Names
Here are a few designers -
both alive and deceased - who no longer own their brand/name:
-
Donna Karan,
Marc Jacobs, Fendi, Emilio Pucci and Givenchy are all owned by LVMH.
-
PPR owns Yves
Saint Laurent, Alexander McQueen, Gucci, Stella McCartney and Balenciaga.
-
Calvin Klein
- sans Calvin Klein the founder who is still alive - and Tommy Hilfiger are
owned by PVH.
As a designer or design
student, you may have dreams of becoming the next Donna
Karan, Alexander McQueen or Marc Jacobs. Just remember that each of these
designers sold their brand, their name, to be able to create the fashion they -
and you -- love. However, take into consideration the pros and cons of selling
your brand. In essence, the choice is between, "Do you want to own your
brand or be an employee of it?" ,
concluded the article’s author ShawnTe Pierce,
Related Content
Paris Fashion Week A/W 2011=2012 was
All About Galliano
Remembering a Fashion Legend: Lee
Alexander McQueen
Fall Fashion Couture in 2017
This
article it’s about:
· Galliano
· John Galliano
· Christian Lacroix
Calvin Klein
Donna Karan
Calvin Klein
Donna Karan
Tommy Hilfiger
· Emilio Pucci
Emanuel Ungaro
Emanuel Ungaro