It seems as though anyone is susceptible of the damages of economic hardships within the United States. Famous fashion designer, Maria Pinto business was ceased and filed for bankruptcy. She closed her Lola Black LLC Company and her boutique in Chicago’s West Loop. According to USA TODAY, “Pinto cited, “increasing economic challenges and soft buying trends at the top end of the apparel market” among the reasons for the downfall for her business.” She also recognizes that typical startup mistakes in financial management and operations also had an effect on her brand and company. Maria Pinto was well known for her pieces for celebrity Oprah Winfrey and First Lady Michelle Obama. At the peak of her career, Pinto was even featured on the Today Show for the pieces she made for the First Lady.
In today’s world-especially with the social media rise- everyone wants to look and feel like celebrities. Arnault did exactly that with his recommendation of having products that are fashionable, yet accessible. Opening and attracting retail business as a beautiful and fashionable but affordable price could have been a major key to maintain Pinto’s fashion brand. After all, “the reason to be a designer is to sell”
Arnault also suggested the use of partnerships to maintain or revive a brand or fashion house. Partnering with another company cannot only enhance your popularity and recognition due to brand awareness, but it also allows you to open your versatility and creativity. According to The Enf of Fashion, Fashion is very different in today’s world. It is very important to link up with each other.”
(p. 51 Kindle Edition)
Word of mouth marketing is also a perfect way to create a buzz. Arnault passed out Vuitton cashmere scarves to his friends. He stated that it was an easy idea, and a cheap and had a long longevity. By distributing the scarves, it is no longer seen only on a mannequin to be desired but it is now something tangible that is seen on your brother, sister, or best friend.
http://www.totalbankruptcy.com/news/articles/celebrity/celebrity-designer-bankruptcy.aspx
http://www.nytimes.com/2010/05/01/us/politics/01maria.html?_r=0
http://content.usatoday.com/communities/entertainment/post/2010/02/michelle-obama-designer-maria-pinto-goes-out-of-business/1#.Vq19XzbcBFI
