Will retailers win gold during the Olympics?

Many retailers have extended their trading hours during the Olympics, in the hope of benefitting from the rush of tourists flocking to enjoy the events in London. At least, this is what many retailers hope for - considering the wash-out of the last few months, weak consumption levels and growing concerns surrounding the eurozone crisis, a boost would be most definitely welcomed.

Figures as revealed by the Centre for Retail Research do seem to support this optimistic view, estimating an increase in total spending due to the Olympics and the Diamond Jubilee to total £1,069 million which is definitely good news. However, a few good weeks doesn’t give UK retailers the all-clear. The net effect is pretty unclear as well as many would-be tourists would no doubt be staying away from travelling to London this summer because of the all this Olympics kerfuffle. It won’t only be London that’s affected either – it’s believed that other UK areas could see a downturn in their visitors as people choose to stay away from the UK altogether. So to weigh up the increase in spending relative to the costs (i.e. the opportunity cost of missing tourists who have avoided the games and the wages of the retail staff working extra hours) is rather more complex than it would seem at first glance. The Olympics’ impact on the UK economy remains to be seen...

China growth slowdown negatively affects luxury market sales

China's tremendous growth in the last decade has been the hot topic as the rest of the world has looked on in wonderment (and fear). Their phenomenal levels of growth (and the fastest reduction in poverty the world has ever seen) has led to an emerging middle-class which saw a substantial increase in demand for luxury goods. Burberry had the foresight of this potential market expansion while Aquascutum didn't, to their detriment as they went bust in April. However, Burberry and other luxury fashionhouses are facing problems as a large portion of their market share belongs in Asia and China's slowdown threatens their profit-making abilities.

It is interesting to note that China is very big on corporate gift buying. 'Guanxi' (social connections) are an integral part of Chinese society and have been so for many centuries. Businessmen and women often buy potential clients or partners ridiculously expensive luxury goods, like Rolex watches, as an 'investment'. The Chinese value recriprocity and corporate gift buying often speeds up bureaucratic processes, helping to cut through the huge levels of red tape. The slowdown in growth is likely to negatively impact luxury goods sales (due to tighter budgeting regarding corporate gift buying), although as guanxi is such an established tradition, I doubt this will vanish. Instead, it's more likely businessmen and women will substitute to 'less expensive' luxury goods.

China (unlike the US and Europe) has more ammunition to bolster growth. Chinese authorities are taking both monetary and fiscal action and their proactive approach puts China in a better position than the weak US and the sovereign debt-ridden Europe. This does not mean that Burberry and other luxury brands should become complacent, though. Issues that China faces are also of a more deeprooted structural nature, e.g. the real-estate bubble, exacerbated by the problem of persistent land-grabbing by local officials. These are more pressing than the current growth slow-down as they ultimately dictate China's ability for future growth. Thus, the root causes need to be addressed before the effects (ie the slower growth) can be fully tackled.

Marks and Spencers: a fashion no-no?

Poor Marks and Spencers. This week has seen M&S's low fashion sales in every newspaper worth mentioning. This has led many to comment on how best to boost the flagging department store, with criticisms directed towards the disparate collections - with Limited Collection not trendy and fashion-forward enough to attract the younger fashionistas; with Autograph's sophisticated pieces rather overpriced; with Per Una - well, just a ruffly, frumpy mess - a campaign with Twiggy and Myleene Klass is simply not going to cut it anymore.

The news that Kate Bostock has left as head of general merchanidse to the ever-growing online retailer, ASOS, has led many to speculate on the future of M&S. John Dixon, head of M&S' food business, is all set to replace her. While Dixon did wonders for M&S' food sales, with their evocative (bordering on pornographic) food adverts and Dine for £10 offers, M&S hopes Dixon can wave his magic wand and make M&S fashion flourish again. However, success in the food sector does not automatically translate to success in the fashion sector and one should avoid being complacent. Dixon has a tough job ahead of him. He needs to strengthen the individual collections M&S offers whilst maintaining a M&S thread in each and every one, with a focus on affordable basic and quality pieces. Personally, I think M&S should forgo trying to be "too" trendy - they're never going to compete with brands like 'Topshop' and 'Zara' in attracting the Beautiful Young Things and should focus their attentions on the more mature woman who appreciates well-cut, classic and affordable clothing. Clarifying the target market is vital and they would benefit from being specific, rather than attempting to cast their nets too far upstream.

I hope M&S take heed of the concerns flying around at the moment as it would be a shame to lose a company that has become so synonymous with the British way of life.

I'm at work (thus most definitely shouldn't be blogging) but I found out I got a 2:1 today so am in a state of mild euphoria! The guys at the office were lovely and surprised me with cake and champagne to celebrate so I am already merry yet sleepy after one glass of champagne. Ridiculous - I might as well be 50. Anyway, am savouring the moment and am thinking of treating myself very soon with a lovely investment tote bag. I am currently weighing up the potential contenders as below but I think I will most likely opt for this:

A classic tan leather Ralph Lauren tote - timeless and large enough to fit in all my bits and bobs. Now, just have to wait for the next paycheck!!

Life

It's been a long while since I've written to update. A lot has happened: mostly, normal "life" things such as finally finishing my final exams, passing my driving test on the third attempt (I was beyond desperation at this point), going on holiday and starting work. I'm currently working at a business communications consultancy where I deal with corporate PR. Very exciting but need to get accustomed to this rigid lifestyle of waking up ridiculously early and trying to remain perky throughout the day without my beloved cat naps. I have also discovered a new love for Loreal's much talked about BB (Blemish Balm) cream which is helping me to maintain this facade of being alive and semi-presentable.

I'm really not trying to seem like a typical "girl" here (given my aversion to any form of stereotype) but part of the fun of work is finding work outfits that you can look smart in and feel comfortable. I have yet to try a whole work day in heels although I'm constantly in awe of the career women who stomp about unrelentlessly in the latest Louboutins. I think I have to ease myself in slowly and start with the kitten heel with extra padding in the sole, otherwise I'll most likely be walking like I have some sort of leg injury which is not really the image I'd like to portray.

Anyway, last week I went to Berlin for a short pre-birthday trip and I was struck by how steeped in history the place is. Of course, we had to go to the Holocaust Memorial which was simply beautiful. Much debate has occurred regarding the design - some liken the different sized concrete blocks to coffins of dead soldiers but I interpreted it less literally. The slabs of grey, drab and concrete, seemed to evoke feelings of oppression and as you walk through, there is a sensation of things caving in and a slight claustrophobia takes hold. Inside the memorial, there were plenty of insights into victims of the holocaust and the focus was on them as individuals which I found fascinating, as so often, you just learn of impersonal facts. When you learn about victims in terms of their lives, their ambitions and emotions, everything becomes darker and even more disturbing. It still shocks me to learn how humanity can twist itself and adjust to such blatantly evil and immoral actions.

Autumn!

I love Autumn.

As much as sunny summer days are lovely (and a novelty in England), I am a bit of an oddball in the fact that any weather which means I have the potential to sweat my makeup off is not ideal. Thus, Autumn with its blustery, chilly days is perfect for a lover of layering, boots and big hefty coats. That's one of the good things about living in the UK. Slightly weird but I love the changing of seasons and a lot of the time it really reflects my mood or where I'm at in my life. Autumn always reminds me of new beginnings, maybe because of the new academic term starting and the beautiful ambers and burgundys of the leaves.

My top Autumnal fashion picks from the high street:
1) Faux Fur

I LOVE this trend although it can sometimes be a difficult one to pull off. Remember, there's a distinct difference between classy and trashy and we definitely don't like the latter look. If you're slightly intimidated by wearing fur for the first time, I would suggest going for fur accessories to add a touch of oldschool glamour to your outfits but not completely overshadow them. I love the tote bag above from Nine West which is currently on sale at £55 and its size makes it ideal for work or uni.

I have also become slightly obsessed with the oh-so-chic accessory: the snood. The snood, in particular the faux fur snood, really affects an air of 20s glamour. They're pretty much available in most fashionable shops now but if the snood is too odd a concept for you, go for the good old scarf. This one featured is vintage-looking beaut from River Island at a relatively hefty £32. I reckon you could get some cheaper, more authentic fur scarves from Notting Hill Market but they would be real fur and since I've got a dog, I'm pro-faux fur.

2)My favourite shoe: the boot!

I adore boots. I love their versatility. Whether they're ankle boots rocking up a floral dress and blazer or knee high boots over jeans and a embellished tunic, boots can make an outfit. Last year, everyone was raving about thigh-high boots and I must admit I wasn't so taken by them back then. However, this year (just 12 months behind everyone else), I have decided that I love them. When done well, mind you. Anything else borders worryingly too much on the Pretty Woman side so flat is definitely the way to go with this trend. Unless you're some kinky dominatrix.

These brown suede ones pictured here are Ralph Lauren and really capture the equestrian theme that never goes out of fashion. The brown gives it a nice casual look and the luxurious suede means that this daring design could never look cheap. Plus, they're £1050 so I doubt 'looking cheap' would really be an issue.

3) The investment coat



Because you just have to!! I'm usually one for classic black but this year I've been lusting after camel coats. Camel is a colour that just exudes elegance in my opinion. My absolute favourite that I've found is this gorgeous long wool and angora coat which screams sophistication. It's £550 though so I may have to find a cheaper alternative although I doubt I'll be able to find one of this quality :(. I console myself by thinking one more year at uni left and then I'll be earning money and can justify treating myself more? I doubt that reasoning will hold.

Hope you enjoyed xxx

The Kitten Heel

I am really feeling the kitten heel - subtle and elegant, they add an ounce of femininity to even the most androgynous outfits. To the right is a pair of my mum's vintage LK Bennett kitten heels. Classically chic and elegant but the backless design makes them bloody hard to walk in. Oh well, they're so pretty that you forget about the pain. I'm thinking pastel coloured ones for demure summer walks about London...