Milan versus Paris

Recently,LVMH announced it had picked up an 80 per cent share in the family-run Italian cashmere label Loro Piana. Rumours abound of the conglomerate gunning for Salvatore Ferragamo and Tods two famous family-owned Italian accessories houses. LVMH already owns Fendi,Pucci and Berluti among the Italians,Donna Karan and Marc Jacobs from the USA,Thomas Pink from Britain; its labels from France include Celine and Givenchy. Its also been in the news for secretly picking up derivatives from the house of Hermès.

Europe is divided as it views LVMH group as both a threat and a saviour. That said,there are other conglomerates on shopping sprees,the major one being Gucci and Bottega Veneta-owner Kering SA. Kering,a French holding company was formerly known as Pinault-Printemps-Redoute or PPR. It is still owned by Francoise-Henri Pinault.

The fashion duel throws open an age-old rivalry between the French and the Italians. It especially began with two women: Gabrielle Coco Chanel and Elsa Schiaparelli. The Parisian and the Roman were both said to be inventive geniuses. Chanel introduced modernity and androgyny in the womans wardrobe,Schiaparelli gave her playfulness and whimsy. Despite their differing styles,the two women drew comparisons. Chanel called Schiaparelli that Italian artist who makes clothes,and once even set fire to a Schiaparelli dress at a party. Schiaparalli,who made wrap-dresses and crumpled rayon decades before Diane von Furstenberg and Issey Miyake,mockingly referred to Chanel as that milliner.

After the World War II,Schiaparelli could not sustain her label. But Chanel and a young Christian Dior who introduced his New Look to a new world marked a rejection of pre-war fashion and succeeded.

French fashions business genes are said to be set since then. While Italys hallmark has been its quality and craftsmanship,the French sell their wares as the epitome of chic,of newness. Perhaps,the French emphasise their tradition of luxury and the rich heritage of houses like Dior and Vuitton while the Italians emphasise the quality production of brands like Armani and Prada, says Mickey Boardman,editor of American fashion and pop-culture magazine,Paper. But all luxury goods sell a fantasy,so theyre similar in that way. Their advertisements show a lifestyle they hope Indians will want to emulate.

Italians are masters in mens tailoring,while the French are more aesthetic,hence leaders in womens fashion and perfume, says Sanjay Kapoor,MD,Genesis Luxury,who has brought Italian labels such as Armani,Etro,Bottega Veneta and Furla to India. Quality is the basis of an Italian label which comes from years of research and family traditions. But both countries have a great heritage in luxury.

France is one of the wealthiest economies in the world,home to leaders in aviation,insurance,banking,tourism and retail,known for its fine cuisine and appellation-controlled wines. It is home to LVMH and Kering,the two biggest luxury conglomerates in the world,and LOreal,the worlds largest cosmetic company. Italy is a market driven by automobiles and tourism,with a focus on design and artisan production. It owns some of the worlds most famous brands,like Ferrari and Lamborghini,Prada and Armani and even yachts such as Aquariva,Perrini Navi,Ferretti and Azimut.

In a New York Times article last year called Ready-to-war?,veteran fashion observer Suzy Menkes wrote,Why is it that Italy is supreme in creative craftsmanship,yet management skills seem to lie on the other side of the Alps? The feature referred to Kerings then called PPR 100 per cent purchase of Italian suit-maker Brioni. Brioni suits are preferred by the moneyed and discreet and clients include the Russian PM Vladimir Putin and James Bond actors Pierce Brosnan and Daniel Craig.

Menkes report also states LVMH not only bought the Italian mens shoe label Berluti,it also hired Alessandro Sartori,a creative designer at Ermenegildo Zegna for 14 years,to move to Berluti. I must admit that when Alessandro joined us,his company was not happy, said Antoine Arnault in Menkes piece. But business is business. Its competition. And we fight a fair fight.

In an interview to Reuters last year,Giorgio Armani,who is still successfully holding on to his label and his profits,had said: The French are very aggressive,they are looking for fantastic brands with an established business and share markets. This is not over yet.

Diego Della Valle,chairman and CEO of Tods,says he doesnt perceive LVMH as a threat. Even though Della Valle sits on the board of LVMH,he states,The Made in Italy label is deeply rooted in our country and will always distinguish Italian labels.

The French are also attributed with monetising their labels via their logos. Louis Vuittons made millions from their instantly recognised monogram,a favourite with the Japanese as well as an ever-growing nouveau rich market. Diors initials and Chanels interlocking Cs abetted the popularity of the brands. Despite Guccis famous stripes,Italian companies are still known for their subtlety and discretion. Tods has traded their logo for rubber pebbles on the gomminos,their famous driving shoes. Bottega Venetas campaign states it is for those for whom the only initials that matter are their own.

But Michael Tonello,author of the best-seller Bringing Home the Birkin,says labels like Hermes and Chanel have proved that the logo is on the inside,where it belongs. He adds: When I think of Italian luxury brands such as Armani,Dolce amp; Gabbana and Versace,I think of logos splashed on the outside of the garment for the world to see. Interestingly,Bottega basket-weave intrecciato has spun several copycats. Its Knot clutches have been so successful theyve barely moved beyond these two leitmotifs.

Dior is a label that markets itself by dressing popular actresses from Hollywood favourites like Natalia Portman,Mila Kunis and Jennifer Lawrence to Indias Sonam Kapoor at high-profile events. Mr Dior had a long and close relationship with Hollywood stars such as Elizabeth Taylor and Marlene Dietrich and designed for them regularly. That has carried on till today, says Kalyani Saha Chawla,VP,marketing and communications,Dior Couture.

Giorgio Armanis is one of the very few fashion houses that is still owned by the designer,has standalone stores globally besides a strong departmental presence. He is also the only one whose label transcends fashion lines: the Armani Privé couture line is a Hollywood red-carpet favourite,Exchange and Emporio Armani are high-street moguls. Armanis is an amazing success story and its incredible how hes stayed on top, Boardman avers. I think its been helped by the fact that his clothes were so embraced by Hollywood stars. So many people not interested in fashion know Armani. Because he has different lines,almost every consumer can have a piece of the Armani magic.

Better us than the Chinese,joke LVMH insiders,as they scoop up label after label.

The fashion industry is becoming a global game now,where the label may originate in one country,the chief designer from another country,the owner-investor from a third nation. But as of today,their common goal is to borrow from novelist Mohsin Hamids recent novel getting filthy rich in rising Asia.