Luxury

I N F O the magazine for anglo-french business french chamber of commerce in great britain

may / june 2012 www.ccfgb.co.uk

in this issue 5 minutes with

Lucia van der Post defines luxury

laduree celebrates 150th anniversary

the success story

the new french government

edf championing the olympics

Thierry Outin, MD of Hermès UK

of Cordelia de Castellane

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Arnaud Vaissié

editorial

President, French Chamber of Commerce in Great Britain, and Chairman & CEO, International SOS

Look outwards for a buffer against domestic woes

I

t is taking longer than anyone hoped to recover from the biggest debt crisis of our lifetime – even after the recent fall in unemployment in the UK. The country returned to recession after a 0.2% fall in GDP in the first quarter of 2012.

The decline in gross domestic product (GDP) was driven by the biggest fall in construction output for three years, while the manufacturing sector failed to return to growth. Companies will need to watch, wait and perhaps most importantly assess the international opportunities and environment. The imperative to stay alert and optimistic has never been stronger, even as the pressures grow.

In this context, the Chamber’s value as a safe haven in the storm has never been greater. Where better to discuss the impact of a new government on your business and your own responses, than at a Forum or a Club meeting. Here members meet colleagues in similar industries and situation in a discreet environment.

In this issue of INFO, you will read about the dynamic Patrons group, led by the French Ambassador, that made a visit to Leeds, about groups of SMEs that have discussed the vital topic of winning export markets, of Human Resources managers that have discussed diversity, of Financial managers and bankers that have discussed the Credit Crunch in its new ground breaking Forum...

Many of the externalities may be negative, but one sector continues to defy recession and retrenchment. This is the luxury sector and companies in our two countries happen not only to be world leaders but also have a marketplace far outside the doldrums affecting the European economy. In short, they are making great products and profits. No sector is more outward looking and it has benefited from the vitality of the BRIC economies. You will see this in our Focus and it makes impressive reading.

The lesson we draw from this sector’s triumphs is this: those who look outwards have a buffer against domestic woes. In adverse times, agility is all important. I

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issue 201 / May - June 2012

10

Prospects for a new era?

34

Goodbye Richard

55

When the King of Scotch met the Queen of Punk

25

Boris Johnson opens International SOS Global HQ

38

Making business is child’s play for Cordelia

62

Culture: West Side Story celebrates 50 years

Breaking News

10 Prospects for a new era?

11 The new French Government 12 The Queen’s Diamond Jubilee

5 Minutes With...

14 Thierry Outin, MD of Hermès UK

News in the City

29 Tenth Anniversary for Sofitel London St James 30 Chivas Brothers Royal Salute launches the rarest crafted whisky: “Tribute to Honour” 31 Hello, Goodbye...

32 Hats off to...

33 Eleven new MPs will represent the French living outside France for the first time 34 Tribute to Richard Descoings

17 Will the $1 trillion bazooka ever be launched?

18 Leading the EBRD into new territory

Success Story

Olympic Section

Focus

21 Olympic shorts 22 Partners & Sponsors corner 23 EDF: Championing the Olympics

News

25 Boris Johnson opens International SOS Global HQ in London CCFGB and OMFIF present World Banking and Finance Summit 26 President Hollande opts for a Citroën DS5 27 Vinci PLC in bid for £2bn for New Covent Garden Market regeneration Thales to upgrade Royal Navy fleet 28 Veolia partnership contributes to Fulham FC’s environmentally friendly projects

Managing Director: Florence Gomez Editor-in-chief: Nicolas Kochan Assistant Editor: Lawrence Joffe Head of Communications: Priscilla Petit Graphic Designer: Prima Hevawitharane Advertising: Christophe Castiglioni Tel: (020) 7092 6651 Publications Assistant: Alizé Nicolas Subscription: INFO is published every 2 months.

Printed by: Headley Brothers Ltd Cover images: © BirdImages, Elnur & Olly Cover artwork: © ccfgb/Prima Hevawitharane

53 54 57 58

On the scent with a new brand Luxury enters a brave new world Spiritual relaxation in a top hotel Making a splash: yachts and the luxury buyer 59 Walpole Brands of Tomorrow

Culture

60 What’s on?

63 book reviews

38 Making business is child’s play for Cordelia

40 Luxury goes from strength to strength 41 Luxury timeline 42 London’s world-leading luxury quartier 44 The elegant and the interesting: how French and British fashions differ 45 Reputation, innovation, presentation: What smart luxury investors look for 46 Making the web work for you 47 Countering the Counterfeiters…

48 Arnaud Bamberger: guardian of the Cartier heritage 50 No 5 and “that dress”: Chanel’s gifts to luxury 51 Louis Vuitton: an open and shut case in how to run a luxury business?

52 To create is to remember

Wine Press

64

News @ the Chamber

68 69 70 71 72 73 74 76 77 78 79

New Members @ the chamber Patron visit to Leeds Quarrying for gold in London The 13th Member to Member cocktail Mountains of macarons to mark Ladurée’s 150th Forthcoming events Eyes on exports – a synoptic view from the SME club Five lessons in change - HR Forum Sport and CSR: a winning team New Finance Forum targets key questions

80 Forthcoming forums and clubs

Editorial Committee: Xavier Calloc’h, Alessandro Iobbi, Helen McTiffen, Alizé Morand, Ivana Moschetti, Fiona Pouchard & Carla Webb.

Distribution: CCFGB members, Franco-British decision makers, Business Class lounges of Eurostar, Eurotunnel & Air France in London, Paris and Manchester.

Contributors: Xavier Calloc’h, Eric Charriaux Arnaud de Saint-Exupéry, Nathalie Deplace, Emma Field, Laurent Grossi, Steve Hatch, Thibault Lavergne, Alessandro Iobbi, Dame Judith Mayhew Jonas, Stéphane Rambosson, Helen McTiffen, Dominique Tai, Lucia van der Post & Carla Webb

Editorial and Publishing Offices: French Chamber of Commerce in Great Britain Lincoln House, 300 High Holborn London WC1V 7JH Tel: (020) 7092 6600; Fax: (020) 7092 6601 www.ccfgb.co.uk

info - may / june 2012 -

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Stranded in Lib ya

corporatemarketing@internationalsos.com

© 2011 AEA International Holdings Pte. Ltd.

A South African ex ecutive and his fa mily had been living an d working in Libya for the past three an d a half years. He was shocked when ne ws came of violen ce against citizens. “T hat’s when I reali zed I had to get out an d get my family to safety,” he says. Hi s company is unab le to arrange for them a flight back hom e and he waits for the Go vernment to rescue him and his family .

www.internationalsos.com

breakin g n e w s

Prospects for a new era?

Responses to François Hollande’s cabinet have been largely favourable, yet to say his team faces challenges would be an understatement of British proportions! INFO traces recent developments and ponders the future

F

rançois Hollande enjoyed a brief respite after winning the 6 May French elections with nearly 52 percent to Nicolas Sarkozy’s 48 percent. Since then it has been full speed ahead for the new President.

The first tests Hollande’s initial German visit was probably the pivotal one. He and Chancellor Angela Merkel see things differently: she favours fiscal rigour to pull Europe out of recession while he prefers state-driven stimuli. France’s 10 percent unemployment and stagnant economy is a cause for concern. Yet by meeting so early, both leaders acknowledged an urgent need to co-operate.

The President’s other big test was his choice of cabinet, announced on 16 May. By most accounts he passed with flying colours. So what message does it send to business communities in France and abroad?

Well, Prime Minister Jean-Marc Ayrault is a fellow moderate social democrat with strong ties to Germany. Hollande opted for Pierre Moscovici, 54, as

10 - info - may / june 2012

© flickr/Parti socialiste

Frenetic activity No sooner was Hollande inaugurated on 15 May than he was off to Germany. Surviving lightning strikes torrential downpours, he met Chancellor Angela Merkel for an important “getting to know you” session.

Hollande then quickly headed for the USA, where he held a press conference with Barack Obama on 18 May. Next, he sped to the British Embassy in Washington for late night talks with Prime Minister David Cameron.

Barely pausing to catch his breath, Hollande joined a G8 summit at Camp David where the Eurozone crisis dominated discussions. Immediately afterwards he was debating global security with new friends at a NATO gathering in Chicago.

Finance Minister. A former MEP, graduate of the ENA civil service school, Moscovici was a European junior minister in France’s 1997-2002 government.

He is also responsible for trade and his fluent English should ease ties with both US and UK markets. Meanwhile new Foreign Minister Laurent Fabius is trusted in Western capitals from his prime ministerial stint a decade ago.

British reactions

It seems the French business community is overcoming qualms about the Socialist victory. The Financial Times’ Tony Barber wrote that ‘radical leftist change will not be the hallmark of the Hollande presidency [which] inspires misgivings rather than panic’. Perhaps the main fear is fear itself. Arnaud Mourier at Paris-based law firm Taj, quoted in the FT, said, ‘the more instability there is around, the more investors start to worry.’ Yet Bill Emmott, former editor of the Economist, noted that Hollande comes from the elite establishment and will not wish to upset the status quo, despite earlier electoral rhetoric.

So how do things look from London? British and French economic policies seem poles apart: David Cameron’s belief in recovery via austerity jars with Hollande’s belief via growth.

Nonetheless, Cameron recently noted that Hollande’s “Growth Pact” resembles Conservative measures of credit easing, mortgage indemnities and bringing forward structural funds. He also praised Hollande for targeting a balanced budget faster than Whitehall, and at the G8 pledged to work with France in saving the euro. Perhaps the BBC correspondent Carole Walker put matters in true perspective when she concluded: ‘The relationship between Britain and France is important, but it is a sideshow to the real drama unfolding across Europe’. I

breaking news

The new French Government François Hollande, appointed the members of his Government by the proposal of his Prime Minister, JeanMarc Ayrault on 16 May. The new Cabinet is composed of 34 ministers, split evenly for the first time in history between men and women. Close attention was also paid to balancing skills and ages as well as political orientations. Hollande chose to rely on old faces (Laurent Fabius, Pierre Moscovici) while also tapping new talent with no prior Government experience.

Mr. Laurent Fabius

Minister of Foreign Affairs

Mr. Vincent Peillon

Minister of Education

Ms. Christiane Taubira

Minister of Justice

Mr. Pierre Moscovici

Minister of Economy, Finance and Foreign Trade

Ms. Marisol Touraine

Minister of Social Affairs and Health

Ms. Cécile Duflot

Minister of Territories, Equality and Housing

Mr. Manuel Valls

Minister of Interior

Ms. Nicole Bricq

Minister of Ecology, Sustainable Development and Energy

Mr. Arnaud Montebourg

Minister of Industry

Mr. Michel Sapin

Minister of Labor, Employment and Social Affairs

Mr. Jean-Yves Le Drian

Minister of Defence

Ms. Aurelie Filippetti

Minister of Culture and Communication

Ms. Genevieve Fioraso

Minister of Higher Education and Research

Ms. Najat Vallaud-Belkacem

Minister of Women’s Rights, Spokesperson of the Government

Mr. Stéphane Le Foll

Minister of Agriculture and Agri-food industry

Ms. Marylise Lebranchu

Minister of Reform of the State, Decentralization

Mr. Victorin Lurel

Minister of Overseas Territories

Ms. Valerie Fourneyron

Minister of Sport, Youth, Public Education and Community Life

Mr. Jerome Cahuzac

Minister Delegate to the Minister of Economy, Finance and Foreign Trade, in charge of the Budget

Mrs. George Pau-Langevin

Minister Delegate to the Minister of Education, in charge of Academic Success

Mr. Alain Vidal

Minister Delegate to the Prime Minister, in charge of Relations with the Parliament

Ms. Delphine Batho

Minister Delegate to the Minister of Justice

Mr. Francois Lamy

Minister Delegate to the Minister of Territory Equalities and Housing

Mr. Bernard Cazeneuve

Minister Delegate to the Minister of Foreign Affairs, Responsibile for European Affairs

Ms. Michèle Delaunay

Minister Delegate to the Minister of Social Affairs and Health, in charge of Elderly Affairs

Ms. Sylvia Pinel

Minister Delegate to the Minister of Industry, in charge for Craft, Trade and Tourism

Mr. Benoît Hamon

Minister Delegate to the Minister of Economy, Finance and Trade, in charge of Social Economy

Ms. Dominique Bertinotti

Minister Delegate to the Minister of Social Affairs and Health, in charge of Family Affairs

Ms. Marie-Arlette Carlotti

Minister Delegate to the Minister of Social Affairs and Health, in charge of Disabled Persons

Mr. Pascal Canfin

Minister Delegate to the Minister of Foreign Affairs, in charge of Development

Ms. Yamina Benguigui

Minister Delegate in charge of French People Living Abroad and of Francophonie

Mr. Frédéric Cuvillier Ms. Fleur Pellerin Mr. Kader Arif

Minister Delegate to the Minister of Ecology and Sustainable Development, and Energy, in charge of Transport and Maritime Economy Minister Delegate to the Minister of Industry, in charge of Small and Medium-sized Enterprises, Innovation and Digital Economy Minister Delegate in charge of Veterans Affairs.

info - may / june 2012 - 11

news

The Queen’s Diamond Jubilee The Anglo-French community is delighted to congratulate HRH Queen Elizabeth II on her Diamond Jubilee. Here are some highlights of the festivities…

S

ince 29 March the Queen and the Duke of Edinburgh have been touring every corner of Britain to celebrate her 60 years on the throne. The culmination of festivities falls on the extended long weekend of 2-6 June.

That Saturday the Queen will visit the Epsom Derby, and then on Sunday she launches the Big Jubilee Lunch, the perfect pretext for thousands of street parties nationwide. The same day, 1,000 boats from all over the world will assemble on the Thames. The flotilla will include the Royal Barge as well as Europe’s oldest threemasted ship, the French Belem, docked at the Chambers Wharf, Bermondsey. Prince Charles is patron of the Thames Pageant, and he and the Dutchess of Cornwall will greet the Queen and the Duke at the pier.

The De Beers Talisman Crown ||| To celebrate the Queen’s Diamond Jubilee, Harrods has commissioned 31 designers to each create a crown in Her Majesty’s honour.

Patron member of the Chamber De Beers is delighted to unveil the Talisman Crown.

For centuries, rough diamonds were the exclusive privilege of Kings and Queens, said to protect, bring good luck and prosperity. A total of 974 diamonds were used to create the crown, including a beautiful 73 carat central rough diamond at the top of the piece. Inspired by The Talisman Wonder, De Beers hand selected an innovative combination of rough and polished diamonds to bring the spirit and enchantment of this stunning crown to life.

The diamonds signify achievements of the past whilst the negative spaces of the unset crown signify future aspirations and accomplishments to come. Using a hallmark setting to accentuate the delicacy and shapes of the diamonds and the contours of the crown, the design follows the Talisman aesthetic and showcases De Beers diamond mastery and unique artistry.

The Talisman Crown will be on display at Harrods from 15th May – 15th June 2012. I

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On Monday 4 June, Buckingham Palace hosts a televised BBC Jubilee Concert, while 2012 celebratory Beacons will be lit across the Kingdom. Lastly, on Tuesday, a formal carriage procession by the Queen will follow a Service of Thanksgiving at St Paul’s Cathedral, no doubt matching in pomp the four-day Diamond Jubilee Pageant at Windsor in May. Britain’s monarch was crowned on 2 June 1952, yet this is really her second diamond jubilee; she and Prince Philip celebrated 60 years of marriage in November 2007. By the year’s end members of the Royal Family will have visited every realm within the Commonwealth, as well as all British Overseas Territories. So felicitations, Your Majesty. It has been a splendid six decades! I LRJ

The stormy world economy.

Get the trusted, global guide.

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news

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5 m i n u te s w ith ...

Thierry Outin Thierry Outin is the managing director of Hermès UK and chairman of the Chamber’s Luxury Club. Here he talks to INFO about the success and story of Hermes and about his view of the luxury industry Could you tell us about the Hermès legacy and story?

Hermès is celebrating its 175th birthday. It was launched in 1837 and the sixth generation of the family now runs the company. Being a family business has ensured it has remained true to its founding values throughout its history. The key to their success is their attention to craftsmanship. They are committed to create beautiful things that last. They started making harnesses, then saddles in leather and while they have greatly expanded, the overriding principle of making something that is practical and stylish remains. They have expanded into bags and accessories and every member of the generation has added a piece to the story. So for example, there is continuity between the silk that jockeys wore and our subsequent expansion into ladies’ silk scarves.

In Hermès, the product is the story. This is a humble brand. We have a passion for beautiful product, for craftsmanship, for the nurturing of ‘know-how’. Our previous chairman used to say that Hermès is not a luxury brand; we just produce beautiful products of the highest quality. A product has to have a purpose.

Could you describe the different parts of Hermès?

First, we have the world of leather, the bags and accessories. We then have the fashion products for women, the ready-to-wear, the shoes and silks which are iconic in the UK. Third, we have a large presence in the world of men; with a very strong business in men’s ready-to-wear, men’s accessories and so on.

We then have the world of the home. We launched chinaware 20 years ago and although we have been involved in furniture since the 1920s, we launched a comprehensive furniture and fabric collection two years ago. Our proposition is to grow this part of our business wider and deeper. Finally, we have perfume making and watch-making.

Hermès is very vertically integrated, from production to distribution. We want to control everything to ensure excellent quality.

What is the Hermès style of retailing?

We like to think about our different métiers as mature, however in a sense our recent expansion of our homewear business was started from scratch. Once developed, we introduced it to our customers with our usual immense drive and passion. We reinvent ourselves all the time.

Hermès stands on two pillars, one of craftsmanship, the other of retailing. They are both of equal importance. Our passion for the product needs to be shared with our customers. We have just over 300 shops globally. We have nine stores in the UK and Ireland, five in London, two in Manchester, one 14 - info - may / june 2012

5 m i n u tes with Thierry Outin

How has Hermès fared in recession?

© Jose Farinha

in Glasgow and one in Dublin. In the UK, the internet side has been growing incredibly fast over the three years since it was launched. The growth has been incredible.

Our distribution is very balanced. The AsiaPacific region accounts for just over a quarter of the business. There are then four other geographic areas: Europe, which accounts for 20% of the business; France, Japan and the United States each account for between 15% and 17%. These five areas are growing together.

Most areas, excluding Japan, have had double digit growth. Europe including France grew by 20% last year, and Asia Pacific grew by 26%. Japan maintained its growth level, despite the shock Thierry Outin (L) Managing Director of Hermès UK and John Ayton, Founder of Links of London, Chairman, Annoushka and Bremont Watch to its economy of the Tsunami and the nuclear Company, Founder and Chairman of Walpole Brands of Tomorrow meltdown. This shows how the company’s sales are spread evenly across our markets.

How do you compare the UK & French markets for fashion?

We offer our clients a product that lasts a long time London is an international market; it is a very important showcase. London is like a magnet. It is a retail Mecca and this is valued among today’s luxury consumers.

We are known for quality, durability and purpose. We for international visitors. But we don’t only serve are not identified with excess or futility. This sense of visitors, we also have to make sure we take care of the people who live here. value is much in demand during the economic crisis.

We have had a programme of opening new stores to How do you assess the state of the emerging markets for showcase our products. We need to keep the balance between the visitors and the perception of the house luxury products?

Customers in the emerging markets have a thirst for with the local customers. Local customers are feeling the pinch in today’s economy, but we still need to talk brands and luxury products. The way they have changed to them. over the last five years is amazing. They appreciate Hermès’ values and they are passionate about the As far as our Paris presence is concerned, Hermès is a Parisian house. Our maison on rue du Faubourg quality of the material and the quality of the design.

Saint Honoré sends out the message to customers that Perhaps you would like to tell me something about your Hermès is in the highest and most impressive league of luxury and style. Paris is the world’s most visited exhibition in London called Leather Forever? city, versus London where there are fewer visitors.

This is an exhibition commissioned by Hermès, to celebrate the special relationship between Hermès and Both London and Paris have their powerful luxury industries, but somehow the UK has not managed to leather. It is a light and poetic interpretation of what we do and, how we have developed across the generations. acquire a global presence. The UK is perhaps more We present what Hermès has done and is planning to about traders with a short-term view. But when you want to develop a global company, you need to invest do with leather. We have arranged for two craftspeople to work all day at the show to demonstrate our leather and think long-term. craftsmanship, making some of our iconic bags on site Yet the British are coming back. They want to return – it’s one of the most popular rooms in the exhibition. to their craftsmanship roots. So we see British watch Leather Forever gives us a way to share with the companies seeking to bring their craftsmanship back public an aspect of Hermès that is perhaps less known home, after many years of losing it to Switzerland. in the UK. We want to show them that we are not just The exception is British design which is quirky. offering fine scarves; we are also offering fine leather British designers have fantastic energy. Britain also craftsmanship. has strong brands like Mulberry and Burberry I NK

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Societe Generale is a credit institution and an investment services provider (entitled to perform any banking activity and/or to provide any investment service under MiFID except the operation of Multilateral Trading Facilities) authorised and regulated by the French Autorité de Contrôle Prudentiel («ACP») (the French Prudential Control Authority) and the Autorité des Marchés Financiers («AMF»). Societe Generale is subject to limited regulation by the Financial Services Authority («FSA») for the conduct of its business in the UK. Details of the extent of its regulation by the Financial Services Authority are available from us on request. Societe Generale benefits from the EC passport authorizing the provision of investment services within the EEA. This material has been prepared solely for information purposes and does not constitute an offer from Societe Generale to buy or sell any security or financial instrument, or participate in any trading strategy. Not all financial instruments offered by Societe Generale are available in all jurisdictions.

Please contact your local office for any further information. 2012 Societe Generale Group and its affiliates. © GettyImages - FRED & FARID

news in the city

Will the $1 trillion bazooka ever be launched?

Europe says it has a $1 trillion bazooka to fend off a sovereign crisis in Europe. The problem for the markets is whether it will fire if or when it is most needed

s the European financial crisis rumbles into activity again, a little like a volcano that growls before it roars its lava over all the neighbouring economies with deadly effect, attention will turn to the European firepower that can be brought into action to support ailing economies.

This amounts to no less than a trillion dollar ‘bazooka’ as it is called in the financial markets. The finger on the trigger of this bazooka belongs to the troika of the IMF, the European Central Bank and European Union’s group of finance ministers.

This sounds like it should be enough to deal with the worst that Spain and Italy can throw at it, but the City has its doubts. In some research I conducted for International Financial Review, the leading financial magazine, Justin Knight, UBS’s Head of European Rates Strategy in macro research, told me, ‘The real problem for the European Stability Mechanism is whether it could issue enough debt if Italy and Spain collapsed.

‘The European Financial Stability Facility is struggling to fund at longer maturities in relatively small amounts, so it would be very difficult for an entity combining the borrowing power of the European Financial Stability Facility (EFSF) and European Stability Mechanism (ESM) to issue in amounts that would equate to their combined size. Were countries like Spain or Italy to request aid, the financing needs would be so large, and the markets so stressed, that it would be very difficult for the EFSF to raise those funds. I wouldn’t have thought the ESM could raise €500b in a crisis.’

The new structure puts Germany in the firing line, says Michala Marcussen, head of global economics at Société Générale Investment Bank. ‘The EFSF and the ESM are good at dealing with the smaller countries in the Eurozone. It is very hard to think of them dealing with Italy. The structures don’t have the capacity to do that.

Germany would have to take on more responsibility.’

The Centre for European Policy Studies (CEPS) in Brussels is even more concerned about Europe’s

© flickr/MPD01605

A

The European Central Bank

capacity to handle a crisis. Alessandro Giovannini, the CEPS researcher, says that funds required for a bailout of Spain and Italy far exceed the anticipated lending funds available to the ESM. He puts the number as high as €1.5 trillion. ‘It would be impossible to do this through paid-in capital and the guarantees as through the ESM. It would not be sufficient to just increase the paid in capital and guarantees.’

The critical issue for the European financial authorities boils down to this. The scope for a bailout can look a lot more feasible when the crisis is in abeyance, or the volcano is in remission, than when it is pouring lava. That is when the money is most desperately needed. But is also the point when it is likely to be hardest to come by. I NK

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news in the cit y

Profile

Leading the EBRD into new territory Francis Malige, the EBRD’s lead man for lending to nations beyond the immediate European zone, predicts exciting new opportunities emerging... as long as bankers learn the lessons of why past systems have failed

A

bank’s primary duty is to its depositors. It needs above all to safeguard their funds. A consultant’s primary duty is to his client, to give them sustainable advice for their business.

These are the cardinal rules observed

by Francis Malige, aged 43, a director in the European Bank for Reconstruction and Development’s (EBRD) financial institution group in London. He looks after the EBRD’s lending to the banking sector of the four ‘Arab Spring’ countries. This is a new departure for this multilateral organisation whose efforts have traditionally been directed Francis Malige at making investments in Eastern and Central Europe.

The quality of a bank’s systems, in particular for managing solvency and liquidity ratios, are key for Mr Malige who spends much of his time scrutinising banking systems and individual banks in Morocco, Tunisia, Egypt and Jordan, as well as Ukraine and Turkey. ‘A bank needs to understand its clients. A bank also needs to understand its role in the economy. It is here to maximise profits, but it needs to serve some role in the economy. Transactions for the sake of transactions, as have been done so often in the richer world, are not part of a sustainable business.’ Mr Malige also argues that clients need to be soundly based in economic areas that contribute to the society.

The EBRD, which undertakes projects with individual banks, in some cases with a view to restructuring countries’ banking systems, operates to commercial criteria, is owned mostly by governments and funds itself on the capital markets.

With a business degree at ESCP-EAP, Mr Malige came through the ranks of Arthur Andersen, the accountants,

18 - info - may / june 2012

and McKinsey, the management consultants, before joining BNP Paribas where he had responsibility for making acquisitions of other banks. Indeed, he was instrumental in bringing Fortis into BNP Paribas, in 2008, when it hit a crisis. He recalls the moment he received the assignment: ‘I got the phone call at 5pm; it said, go home, pack, and go to the Gare du Nord to take the TGV to Brussels. We arrived at the Fortis headquarters at 11.30pm that night, in Brussels, and went straight into due diligence until Sunday afternoon. I must have slept about two hours or so from Friday night to Sunday afternoon!

The deal did not get done that weekend because that was when Belgium, Luxembourg and the Netherlands injected capital into Fortis. The deal got done over the next weekend.’

He says that when banks crash, it is often because of lack of liquidity rather than lack of solvency. ‘When a bank has a solvency problem, it gets taken over by the regulator, by a stronger competitor, or it is split into a good or bad bank. Is it more manageable because you have more time. But when you have a liquidity problem, people stop trusting the bank and then there is a run on the bank as happened at Northern Rock and Lehman Brothers.’

The economies in Arab Spring countries would gain through being more structured, he says. There is no shortage of SMEs, but they need organisation and finance. He sees his key role as ‘getting the local banking systems to put money into SMEs. I develop them as clients with a private sector approach.’ Mr Malige has seen the rough, tough end of banking.

He is well equipped for the challenge presented by these troubled but emerging markets. Releasing their potential is his goal. I NK

news in the cit y

CCFGB congratulates Boris Johnson on his re-election ||| The French Chamber of Commerce congratulates Boris Johnson on securing another term as mayor of London, and looks forward to many more encounters in the future.

Boris has personally championed the build-up to the 2012 Games. We hope that in showcasing London he will also reinforce the businesses who form the lifeblood of our city.

Better infrastructure is vital to London’s future: growth projects like Underground upgrades, extra airport runways or the ecological benefits of Boris Bikes.

French firms have proven their ability to supply energy and clean streets in the UK and the capital, as well as feed, clothe and entertain Londoners. Give us the tools and we can do the job, as Churchill once put it!

Like Boris, we believe in competitiveness and investment and less red tape. Taxes raised in London should be spent in London. We trust his powers in Whitehall as much as in City Hall. Lastly, we welcome the chance to host Boris at future events. Boris is a friend to France and her people. We wish him well for the next four years, arduous though the task may be. I

No peace for bankers ||| There was a time when heavy hitters left the banking sector and set up boutiques or new departments in rival firms, with lightening speed. Not any longer. In today’s troubled investment banking industry, top people leave, but without razzmatazz. So Yoel Zaoui, Goldman’s co-head of global mergers and acquisitions, is reportedly looking for a new job. Ian Hannam,

chairman of equity capital markets at JP Morgan Cazenove, has left the firm, but he has said he needs the space to fight a fine for market abuse, imposed on him by the Financial Services Authority. Andrea Orcel, Bank of America Merrill Lynch’s mergers and acquisitions star is the exception to the rule. He has joined UBS, as its co-head. I

Driving to Moscow

Google goes for goal

||| The BRIC economies continue to excite car makers as well as luxury and other goods makers. So the move by Renault and Nissan to take majority control of Russia’s largest car maker Avtovaz makes good sense. The two have formed a joint venture with Russian Technologies, the state holding company and Avtovaz’s main shareholder to pay $750m for 74.5% of the business.

Renault bought 25% of Avtovaz for $1.17b in 2008 and will invest $300m in the venture. I

||| British football, and in particular the Premier League, continues to attract market interest. So it is no surprise that the League is raising the number of matches it is auctioning by 12%. But what is a greater surprise is that Google and Apple are participating in the rights auctions. They are expected to air the football games on their internet video services. Another player thought to be eyeing the UK Premiership market is Al Jazeera, whose sights have so far been set on French football. I

New addition to Chinese menu

High interest lenders

||| China’s dynamism continues apace, but the market was taken aback when the state-owned company Bright Food acquired a 60% stake in Weetabix, the very traditional British cereal maker, from Lion Capital for £720m. The breakfast cereals market in China is growing rapidly, although rice gruel is the traditional food of choice, middle class Chinese are switching on good quality western produce. I

||| When people are stretched financially, they will take loans from any source that presents itself. So the growth of a company called Wonga that lends money to individuals at rates of interest that go as high as 4000% is just about credible, if regrettable! But now Wonga is going one step further and trying to appeal to small business who need quick money. It is charging between 0.3% and 2% per week for business loans up to £10,000.

Wonga calls this its premium service. Beware! I

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Olympic Section

Olympic shorts This section will appear in the next five issues of the magazine and provide a news commentary on the London Olympic Games as well as the legacy.

Olympic Rings unveiled in Cardiff

© flickr/Watt_Dabney (Andrew King)

||| A giant set of Olympic Rings has been launched outside Cardiff’s historic City Hall, exactly three months before the city hosts the first sporting event of London 2012.

The 18 metre long, eight metre high Rings will provide a stunning backdrop for Cardiff’s celebrations when the Olympic Flame visits the city on 25 May and when the Millennium Stadium hosts 11 matches during the London 2012 Football Tournament.

London 2012 Organising Committee Chair Seb Coe said: ‘The Olympic Rings are an iconic symbol, inspiring athletes and uniting people around the world.

‘Being launched exactly three months The Olympic Rings outside Cardiff’s City Hall before the Millennium Stadium hosts the very first sporting event of London 2012, largest national broadcasting network, CCTV, the total they show that Wales is ready to welcome the world’. I worldwide broadcast deals will see a record £10 million in revenue generated from the sale of broadcast rights Record-breaking figures for Paralympic to the Paralympic Games – greater than for any previous broadcast rights Games. ||| The London 2012 Organising Committee (LOCOG) LOCOG Chair Seb Coe said: ‘As the world’s second has announced a record-breaking collection of Rights biggest multi-sport event, all eyes will be focused on Holding Broadcasters to screen the Paralympic Games the Paralympic Games in London in 2012.’ I For more across the globe this summer. information please visit www.team-2012.com The broadcast deals will provide the Paralympic London 2012 Olympic Torch wins Design of Games and Paralympic sport with the strongest the Year award worldwide broadcast coverage ever received, ensuring the widest possible audience can enjoy the Games. ||| The London 2012 Olympic Torch was today recognised Sir Philip Craven, president of the International as the Design of the Year at an awards ceremony hosted Paralympic Committee, said: ‘On the back of recordby the Design Museum. The Torch, designed by studio Barber Osgerby, was chosen from 89 entries to claim breaking ticket sales, it is fantastic news that these deals will ensure that more people see the Paralympic the winning title. Made of aluminium, it will be Games then ever before. carried over 8,000 miles over the course of its 70-day ‘This is testament to the performances of the athletes Torch Relay, and is perforated with 8,000 circular holes who will come to London and put on something pretty representing the 8,000 Torchbearers. Aside from being special.’ Combined with an unprecedented level of decorative, the holes also help reduce the weight of the exposure in the UK through Channel 4 and China’s torch and prevent heat conduction. I

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Olympic Section

Princess Anne receives Olympic Flame at Athens ceremony ||| In the final part of the Greek leg of the London 2012 Olympic Torch Relay, the Olympic Flame was handed over to the London 2012 delegation. Headed by HRH the Princess Royal, the recipients also included Chair of LOCOG Sebastian Coe, Minister for Sport and the Olympics Hugh Robertson, Mayor Boris Johnson, London 2012 ambassador David Beckham and five UK youth representatives. The ceremony took place at Athens’ Panathenaic Stadium, site

of the first modern Olympics in 1896.

After leaving Greece and arriving in Cornwall on Friday 18 May, the Olympic Flame will travel 8,000 miles across the UK from Land’s End to within 10 miles of 95 percent of the population. In all some 8,000 torchbearers will carry the Flame about 300 metres each, passing it from torch to torch until it reaches the Olympic Stadium on the eve of 27 July. I

Focus on one Olympic sport: Swimming

© wikipedia/David Monniaux

||| During the London Olympic Games 2012, 950 swimmers will start competing from 28 July to 4 August in the Aquatics Centre’s Olympic pool. Located right in the Olympic park, this site will host 34 trials in four France’s Laure Manaudou swimming disciplines: front crawl, backstroke, breaststroke, butterfly stroke on a distance ranging from 50 to 1500 meters.

The heats will select the eight best swimmers of each discipline, before they head to the much sought-after finale for an Olympic medal. The 10km

long distance trial will take place in open water at the Serpentine in the renowned Hyde Park.

Beyond the trial of races, swimming gathers three other sport disciplines: synchronised swimming (510 August), diving (29 July-11 August), which will also take place at the Aquatics Centre, and at last Water polo (29 Jul-12 Aug) be held at the temporary pavilion next to the Olympic pool.

Gathering this summer 1,450 sportsmen and women in all four swimming disciplines, Swimming is going to be one of the most watched events of the games, with international stars such as Michael Phelps, who has won no less than eight Olympic titles during the Beijing Games in 2008, but also the impressive French team: Camille Lacourt, Yannick Agnel and Laure Manaudou, whose return is particularly awaited. I

Partners & Sponsors corner ||| Eurostar, the official international rail services provider for the London 2012 Olympic and Paralympic Games, helped Europe celebrate 100 days to go until the start of the London 2012 Games.

A mixture of instant onboard upgrades, tickets to the London Prepares series, including hockey and water polo, and London 2012 Games tickets were up for grabs onboard. Social media activity also directed people to enter for a chance to win tickets to “2012 Hours to Go: An Evening of Athletics and Entertainment” at the Olympic Stadium on 5 May. To mark the occasion, Eurostar terminals in London, Paris and Brussels are also being given a fresh new look in the run-up to the Games. I

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© Eurostar

Eurostar invites passengers to celebrate 100 days to go until London 2012

Eurostar is the official rail services supplier of the Games

Olympic Section

EDF: Championing the Olympics A wide series of events based around Green Energy and education will make EDF’s contribution to the Olympics significant, long after the Games themselves are history

DF Energy has been a key participant in the 2012 Olympic Games. The company, says Gareth Wynn, group director, Olympic and Paralympic Programme, is immensely proud of the role it is playing as an official partner and the official electricity supplier of the London 2012 Olympic and Paralympic Games.

However, his key message is to emphasise a low-carbon vision for London. To this end, the company has developed several innovative projects that will leave a positive legacy beyond the London 2012 Games. Mr Wynn says, with less than 100 days to go to the Games, ‘we are well on our way to making EDF London Eye this legacy a reality.’

He points to the fact that over 5 million young people are engaged in the Pod, the company’s programme for greener schools. ‘Over one million people are now part of Team Green Britain, a community working together to reduce their carbon footprint when it comes to their home, travel or food. We are working to reduce the carbon footprint of iconic London landmarks ahead of the London 2012 Games, including the EDF Energy London Eye and Tower Bridge.’

The London Eye, Wynn says, is an ‘iconic attraction and part of the Mayor’s Green500 scheme, which aims to reduce the capital’s C02 emissions. And now it is powered by EDF Energy.’

A series of events and achievements already point to the success of the EDF commitment, including the fact that EDF Energy employees have so far raised over £150,000 for EDF’s charity partner, ParalympicsGB to help British athletes with their preparations ahead of the London 2012 Paralympic Games; The company is helping to create a community and environmental legacy for the Games, working with young people in London through the Legacy Champions Programme;

EDF is working with Transport for London, LOCOG and fellow 2012 partners to create a legacy of electric vehicle recharging infrastructure for Londoners who want to move to a lower carbon lifestyle. The company has also launched Green Britain Day as an annual event, to be a ‘focal point for people to take action towards a more sustainable lifestyle.’

Mr Wynn says the event is a ‘landmark initiative to inspire the nation to work together and lower Great Britain’s carbon footprint by the time the Olympic and Paralympic Games arrive in London in 2012.

‘Climate change is one of the biggest challenges facing us and EDF Energy believes that we can only tackle the issues we face by ensuring that all of us act together now.’

EDF Energy has put a particular focus on its electric vehicles saying, ‘they have a great role to play in improving city life’. The Mayor’s office reports that they could be responsible for up to 40 percent less carbon emissions than some petrol cars. To support them in making London’s air cleaner, EDF Energy recharging points will be placed in and around Olympic Venues and key London boroughs as part of the Olympic legacy.

The Pod is part of London 2012’s ‘Get Set’ education programme. ‘Get Set’ is a UK-wide programme which offers 3-19 year olds various opportunities to participate in London 2012 and learn about the Games and the Olympics and Paralympic Values.

The Pod has over 13,607 registered schools and is continuing its founding vision to help schools across the UK make a real and measurable difference to their energy usage and carbon output, providing practical support, activities and materials for teachers. Indeed, through a ‘learning journey’. I © flickr/ curium (Gavin Murdock)

E

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35% MORE AFFORDABLE THAN A DIESEL*.

TIME TO SWITCH. news

Bilateral News

With diesel prices at an all-time high, isn’t it time you switched? The 100% electric Renault Kangoo Van Z.E. is now eligible for the new Plug-in-Van government grant, meaning prices start from just £13,592 excluding VAT and On The Road charges. And with lower running costs, zero road tax and exemption from the Congestion Charge, it’s up to 35% more affordable to own than an equivalent diesel van (10% if you operate outside London). Oh, did we mention it’s also International Van of the Year and What Van? Van of the Year 2012?

To find out more, visit renault.co.uk/kangooze or visit your local dealer.

DRIVE THE CHANGE Business users only *Saving is based on 4 years and 10,000 miles per year. For full details of saving calculation please refer to renault.co.uk/kangooze Battery hire cost for 4 years and 10,000 miles per annum at £67 per month (excluding VAT). Official range of 106 miles according to the NEDC combined cycle. From price, after 20% Plug in Van grant deduction, starts from £13,592 plus VAT, delivery (£595) and first registration fee (£55).

Vehicles are covered by a warranty package for up to 48 months. The first 2 years are unlimited mileage, followed by a further 2 years up to 100,000 miles. Please see the warranty terms and conditions (renault.co.uk/warranty) for further details.

Servicing offer covers cars for 4 years or 48,000 miles and vans (excluding the Debut range) for 4 years or 80,000 miles, whichever comes first. Services must be carried out in line with the manufacturer’s minimum maintenance programme requirements and servicing intervals, and can only be carried out at a Renault Approved outlet. Renault Assistance Roadside Cover is provided in association with the AA. Cover from month 0 to 36 includes assistance at the roadside and home, national recovery, onward travel and European cover. Cover from month 37 to 48 includes Roadside and Homestart (including a local tow to an authorised Renault dealer). The provider of this cover is the Automobile Association Limited. For Finance, guarantees and indemnities may24 be- required.

You must be at 2012 least 18 and a UK resident (excluding the Isle of Man and Channel Islands) to apply. Finance provided by RCI Financial Services Limited, PO Box 149, Watford WD17 1FJ. Available at participating dealers only. info - may / june Not available in conjunction with any other schemes or finance offers, please check with your local dealer for information. Offers are available to retail and business customers (but exclude fleet customers with own terms), and are valid on new vehicles, at point of new vehicle registration, when ordered from 1st February 2012 until further notice. Visit renault.co.uk/4plus

news Compiled by Prescilla Petit

Boris Johnson opens International SOS Global HQ in London ||| International SOS, the leading global medical and security services company, unveiled its new global headquarters and Assistance Centre at the official opening in Chiswick Park, West London, on 29th March 2012. The state-of-the-art site in Chiswick Park operates 24 hours a day, seven days a week, providing fully integrated medical and security services and assistance to clients around the world.

London is a key location for International SOS, as it is the base for many client organisations. It is also an excellent place to recruit a diverse and skilled pool of specialists. An increasing number of medical and security teams are needed to help client businesses proactively assess and manage the risks that their global workforce faces. The company now has an established global infrastructure with 10,000 employees including 1,300 full time physicians and 200 security specialists in 70 countries. 800 employees from 43 different nationalities are working in the UK. This represents an exponential rise from the 40 people employed by International SOS in the UK in 1998.

With the presence of HE Mr Bernard Emié, French Ambassador to Great-Britain, London Mayor Boris

Boris Johnson and Arnaud Vaissié, co-founder chairman and CEO of International SOS, President of the French Chamber

Johnson welcomed the opening of the new headquarters with a speech before taking part in a guided tour of the Assistance Centre, exploring the new technology and the enhanced capability it delivers. He commented: “I am delighted to be able to mark the official opening of International SOS’s new global headquarters and to see an innovative and growing company make the decision to invest in London.” I

CCFGB and OMFIF present World Banking and Finance Summit ||| The French Chamber of Commerce in Great Britain (FCCGB) is pleased to partner with the Official Monetary and Financial Institutions Forum (OMFIF) for this year’s World Banking and Finance Summit. The 2012 Summit will look at the continuing challenges for the global banking and finance industries, caused by the macroeconomic imbalances in the world economy today. It will also explore the key economic factors that will affect the industry’s drive for profits and growth in different countries, sectors and regions over the coming decade. The summit will also focus on the much-talked-about rise of important emerging economies and the resulting shift in economic power

from established centres to new contenders.

An audience of 100-150 is expected to attend from Europe, Asia, the Americas, Africa and Oceania.

Speakers include international economic decisionmakers, economists, academics and other leading monetary figures, who will be presenting their arguments at Drapers’ Hall in London on 26 and 27 June. I CCFGB members will be extended a special 50 percent reduction for the two days of the Summit.

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news

© flickr/Autoviva.com

President Hollande opts for a Citroën DS5 Diesel Hybrid

The new Citroën DS5

||| A fresh start with the Citroën DS5 for Mr François Hollande, the new French President, who has opted for this brand new designed and 5* safety rating car. He follows the path of ex-president Charles De Gaulle and his taste for the Chevron brand. The DS range is full of history, considering the General and his wife were both shot while driving in a DS and miraculously nobody got injured.

DS5 becomes the 2012 flagship of Citroën, it is a remarkable car and has received many awards. Citroën won awards for the DS line and the DS5 hybrid4 from “l’automobile magazine” and “l’argus”, both renowned magazines in France. There is no doubt the brand will be reinforced by the choice of the head-of-state. I

Citroën DS5 wins ‘Car Design of the Year’ in Car Design News Awards ||| Last March, Citroën’s brand new flagship, DS5, has been voted ‘Design of the Year - Production Car’ by Car Design News at the Geneva Motor Show. Just two ‘Car Design of the Year’ accolades are awarded each year - one to a production car and one to a concept.

The winning designs are selected from a shortlist by the readers of Car Design News. New DS5 received almost a quarter of the near 4,000 votes cast, making

the distinctive new Citroën a clear winner in the production car category - ahead of its nearest rival the Lamborghini Aventador.

“DS5 is the embodiment of distinctive design, so to have this recognition from an international automotive design community is tribute to the work of its creative team” said Marc Raven, Communications Director at Citroën UK. I

Victanis advisers to Artelia on acquisition of Appleyards ||| Appleyards is a multidisciplinary professional services consultancy with a strong reputation for excellent client service combined with highly skilled people. Since last March, deal, it has become the ideal platform from which to continue to grow Artelia’s presence in the UK. This will create a sizeable consultancy with increased knowledge and experience, providing clients with access to greater resource and a wider range of expertise.

“Being part of one of Europe’s leading project management companies brings with it huge opportunities for our people and our clients. The synergies between Appleyards and Artelia UK are clear – both companies are profitable businesses, both are

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owned by their management and both share the same client-centric ethos,” added Colin Morrell, CEO of Appleyards.

“Victanis delivered excellent strategy and corporate development advice on the transaction and we are very pleased to have had them as our trusted adviser,” commented, Phil Brumby, Artelia UK Managing Director.

The Artelia Group employs over 2,500 people globally and Artelia’s strengthened presence in the UK market provides enormous potential for growth and new opportunities for the business. The company boasts an annual fee turnover of €300m and is one of the top French project management and engineering firms in the construction, infrastructure and environment sectors. I

news

||| The Covent Garden Market Authority has selected VSM Estates, the Joint Venture between VINCI PLC and St. Modwen (LSE: SMP), the UK’s leading regeneration specialist, as its chosen Development Partner for the redevelopment of the New Covent Garden Market in Nine Elms. The multi-phased project has a gross development value of around £2 billion and involves a complete rationalisation of the 57 acre site over a five year period.

The contract is subject to the grant of a full planning consent for VSM Estates’ scheme with construction expected to commence by mid 2013. Construction will initially focus on the building of the new market ahead of a multi-phased move of the traders into the new purpose-built facility between mid-2014 and 2018.

“As part of a leading global construction and concessions company we are delighted to be working with the Covent Garden Market Authority to deliver this particularly complex project. Our focus on developing a solution that enables the market to continue to trade efficiently throughout the construction programme has been critical in our success.

This important contract builds upon our strong existing partnership with St. Modwen,” commented John Stanion, Chairman and Chief Executive at VINCI PLC. I

© flickr/Marcio Cabral de Moura

Vinci PLC in bid for £2bn for New Covent Garden Market regeneration

New Covent Garden Market

Thales to upgrade Royal Navy fleet with new digital UAT system ||| Thales UK is pleased to announce a contract with the UK Ministry of Defence (MoD) to upgrade the major surface fleet of Royal Navy (RN) with a new Fully Digital Radar Electronic Support Measures (RESM) system, featuring digital antennae.

In conjunction with the MoD, Thales has undertaken

HMS Somerset

a six-year, multi-million pound research programme, and this has culminated in the development of the direct radio frequency (RF) sampling technology and demonstration of a digital antenna.

Under the terms of the new contract – the UAT MOD 2.1 & 2.3, advanced technology will now be introduced to the UAT RESM equipments fitted across the RN surface fleet and associated land-based training equipments.

The technology provides excellent system performance in the modern dense radar environment.

This enables the ship to operate in all maritime theatres and provides the RN with world leading electronic warfare support and emitter identification technology.

The system is easily upgraded and new signal analysis tools are easily introduced, keeping the RESM capability current in a rapidly evolving operational environment. The approach also maximises the use of commercial off-the-shelf hardware, making the RESM significantly more reliable, easier to maintain and lowers the total cost of ownership. I

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news

||| The British Ministry of Defence, through the Defence Equipment & Support, recently awarded Sagem (Safran group) a major contract for JIM LR (Long Range) multifunction infrared binoculars for its “Long Range Thermal Imager Programme”, worth a total of £5 million (6 million Euros).

Used for intelligence, surveillance, target acquisition and reconnaissance missions, JIM LR binoculars will significantly expand the capabilities of British infantry units. The decisive factors in the DE&S’s selection were the JIM LR proven operability in severe combat environments, detection and identification performance, and a complete multimedia service designed to support a real-time intelligence cycle.

Several NATO forces deploy JIM LR binoculars in their infantry, artillery, intelligence, special-mission, border and coast guard units. With this latest international contract, there are now nearly 5,000 JIM LRs in service or on order worldwide, including 2,000 with French armed forces. Winning this coveted program award also confirms Sagem’s leadership in portable optronics equipment for front-line combat units.

Sagem, a high-tech company in the Safran group, holds world or European leadership positions in optronics, avionics, electronics and safety-critical

© flickr/Defence Images

Safran Group: Sagem’s JIM LR binoculars win key British army contract

software for both civil and military markets. It is the No. 1 company in Europe and No. 3 worldwide for inertial navigation systems (INS) used in air, land and naval applications. I

Veolia partnership contributes to Fulham FC’s environmentally friendly projects ||| Veolia will use the power of football to engage with hundreds of pupils about the environment.

Fulham Football Club Foundation is delighted to announce a new partnership with Veolia Environmental Services which will see the Club’s Foundation staff pilot a sixweek Veolia Carbon Boot Print partnership environmental programme to six local schools this month.

The weekly one hour lessons will involve a classroom based session as well as football and sport activity. The project will tap into the appeal of football to teach hundreds of pupils about the environment during its initial pilot phase.

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The lessons developed by recycling specialists, Veolia Environmental Services, aim to provide pupils with information to make them more environmentally aware and friendly and lessen the carbon impact of day-to-day tasks.

The programme will cover a number of essential subjects all designed to promote a greener way of living such as: 3 R’s (Reduce, Re-use, Recycle), Energy, Travel & Transport and Food & Drink.

Once the pilot has been completed, the Fulham Football Club Foundation and Veolia will look to roll this project out to over 30 schools during the next academic year. I

news

Tenth Anniversary for Sofitel London St James ||| Last April, Denis Dupart, General Manager of Sofitel London St James launched its 10th anniversary celebration. After being first managed by Daniel Coccoli and subsequently Hugues Jaquier, the 125,000 sq ft. Grade II listed building today represents one of the most prestigious hotel addresses in London. This anniversary marked a decade of “Magnifique” marriage between traditional British elegance and French art de vivre.

The cocktail organised for the occasion was attended by the Hotel’s owner and partners, representatives of the Crown Estate and local associations, management from Accor UK, as well as guests and clients who have been honouring the Sofitel for many years. During the ceremony, Denis Dupart thanked everyone and more specifically six members of staff who have been with the Sofitel London St James since its opening. Canapés and savouries showcasing the best of French and British cuisine were prepared by Vincent Menager, Head Chef of Sofitel St James’s restaurant (The Balcon).

During the past decade, the hotel has seen a lot of changes including the refurbishment of all the conference and event rooms. It has become known as a fitting venue to stage fruitful meetings and events, making the use of the famous French “art de recevoir” and the InspiredMeetings™ concept which creates an entirely personalised experience. The conference and meeting rooms, all named after distinguished districts of London, have been renovated by the interior designer, SparcStudio and equipped with state-of-theart audio-visual facilities. Also designed over three floors, the hotel features high ceilings and natural daylight, providing the most spectacular backdrop for Sofitel So SPA, which opened three years ago. October 2011 saw the long awaited reopening of The St James Bar inspired by Coco Chanel’s 1920’s Paris apartment, and The Balcon, a 100-cover grand brasserie overlooking Waterloo Place and Pall Mall.

Sofitel is the only French luxury hotel brand with a presence on five continents with 120 addresses, in almost 40 countries (totalling more than 30 000 rooms).

It offers contemporary hotels and resorts adapted to today’s more demanding and versatile consumers who expect and appreciate beauty, quality and excellence. I

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news

Chivas Brothers Royal Salute launches the rarest crafted whisky: “Tribute to Honour” ||| The most exquisite, and scarce whiskies used to create “Tribute to Honour”, have been carefully selected from the Royal Salute Vault at Strathisla. Expertly blended by Colin Scott, just 21 bottles of “Tribute to Honour” have been created and also mark the pinnacle of Colin’s 21 years of expertise in blending. Only a few of them are on sale now more than a year after the launch, and connoisseurs pay up to US$200,000 for this flagon.

‘Tribute to Honour’ has been introduced to pay homage to the oldest crown jewels of the British Isles: The Honours of Scotland. The narrative of the Honours comprises glorious legends and intrigue and remains a powerful and inscrutable ode to Scottish history. Royal Salute “Tribute to Honour” marks a historical pinnacle in whisky making.

“Chivas Brothers has a phenomenal archive of highaged whiskies, some of which, after decades of careful maturation, have acquired a rich intensity and deep concentration of sumptuous characters. It is these very few whiskies which I have personally selected to compose “Tribute to Honour” – this opulent and rarest of blends,” explained Colin Scott.

Fittingly, only the finest aged whiskies – at least 45 years old – are presented in the spectacular bejeweled bottle, dressed by Garrard in flawless diamonds and shimmering gold. As the world’s oldest jeweller to royalty Garrard has embellished the Royal Salute “Tribute to Honour” flagon. Craftsman have spent days perfecting each flagon by hand. The prestigious

jeweller has served six successive British monarchs and pays tribute to the ancient Scottish Sword of State as its landmark. I

Fabergé unveils online boutique ||| Fabergé brings its legacy into the 21st century with a new state-of-the-art online boutique, launched on 16th April. Clients are invited to discover the fascinating world of Fabergé online, exploring its rich history and browsing Fabergé’s contemporary high and fine jewellery collections.

To complement Fabergé’s existing network of retail stores, the online boutique offers Fabergé clients a seamless shopping experience. By leveraging high-value transaction technology, the boutique enables clients to purchase selected items in multiple currencies complete with an international delivery service to more than 29 countries. I Fabergé’s new web presence

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news

Christian Dior launches ‘Dior Mag’ ||| Half blog, half web magazine, ‘Dior Mag’ contains current news as well as general information, corporate news around Dior’s history. Available in English and French, ‘Dior Mag’ also stores many high resolution images. Applications for tablet computers and mobile phones should also be available soon. It was launched right in the middle of Paris Fashion Week, just in time to create a buzz around the brand before its ready-towear catwalk show early in March 2012.

Dior Mag’s news of the month: Change of Artistic Director, Raf Simons chosen to perpetuate the Dior style

Last April, the house of Christian Dior announced the appointment of the new artistic director for its Haute Couture, women’s ready-to-wear and accessories. Raf Simons, who has been hailed by the press as one of the most talented of fashion world, began his career in 1995. He started with a menswear collection that became a regular highlight of the Paris men’s fashion week. But he also revealed great finesse and sensitivity in the work he did in women’s ready-to-wear.

The glamour that is Dior will find in him a worthy successor to the “New Look”, as Simons himself has expressed a particular interest for the period between 1947 and 1957, the decade that spans the house’s founding to the couturier’s premature death. Raf Simons will present his first collection during the Haute Couture fashion week in July because, as has been the case throughout Dior’s history, couture is at the heart of the house’s creation. I

hello, goodbye...

T

he French Chamber of Commerce would like to welcome the new representatives of member companies.

We would also like to express our gratitude to members who have made outstanding contributions to the Chamber, but who are now moving on to different destinations. We wish them all the best in their new posts.

Thomas Dubaere, Managing Director Accor UK & Ireland replaces Jean-Jacques Dessors ||| Thomas Dubaere has worked for Accor for over 22 years, most recently as Managing Director Budget Brands Accor UK & Ireland, a position he held since 2010. During this time he played a key role in the expansion of Accor’s budget brands network and helped develop the ibis ‘megabrand’ which will launch in 2012 and see ibis, Etap and all seasons evolve into a three-strong brand of ibis, ibis Styles and ibis budget.

Dubaere began his career with Accor in Belgium in 1990 at the Novotel Bruges Centre and held several General Manager positions, before being appointed Delegate Director Economy Brands (Ibis, Etap & F1) Belgium in 2004, and then Director of Operations Economy Brands Belgium and Luxembourg in 2005. Thomas Dubaere is a Thomas Dubaere graduate of the Brussels Hotel School, and has a Masters Degree in Management from the University of Leuven. Dubaere lives in London.

Congratulations to both Thomas Dubaere and Jean-Jacques Dessors on his new appointment as COO Middle East, Africa, Caribbean Islands, Indian Ocean for the group Accor. I

info - may / june 2012 - 31

news

Hats off to...

Vincent de Rivaz, Chief Executive of EDF Energy, has been made an honorary CBE by HM The Queen in recognition of his services to the electricity and gas industries Vincent was awarded the CBE, one of the most prestigious of UK honours. Typically it is bestowed on those who have made a distinguished contribution to their organisation or industry, and to the UK as a whole, even if they may be, as in Vincent’s case, an overseas citizen.

The citation for the honour commended Vincent for the ‘remarkable transformation of Vincent de Rivaz EDF Energy’ since he arrived in the UK in 2002. Since taking over British Energy in 2009 the company has turned into the UK’s largest low-carbon electricity generator. EDF Energy also won praise for leading a renaissance in new nuclear power, helping the local community, and becoming “the first sustainability partner” of the London Games”. In addition, de Rivaz’s firm works with the Eden Project and other schools, schemes and institutions to inspire people to fight against climate change.

Responding to the honour, Vincent de Rivaz said: ‘It is a privilege for me to receive this award on behalf of the thousands of EDF Energy staff in the UK who helped to develop this company by living our values and engaging with our communities.’ Vincent was awarded the French Legion d’Honneur in 2010. He is also a board member of the French Chamber. I

Arnaud Vaissié

Arnaud Vaissié, co-founder, Chairman and CEO of International SOS and President of the French Chamber of Commerce in Great-Britain Arnaud Vaissié has been awarded the title of Officier dans l’Ordre National du Mérite for his distinguished contribution to French education abroad. As Chairman of the College français bilingue de Londres, Mr Vaissié was instrumental in setting up the new French school in Kentish town. The school provides since September 2011 a bilingual and bicultural education to 700 French, British and international pupils from kindergarten to Year 10. I

Pierre Gagnaire: 17th of the World’s 50 Best Restaurant list Organised by Restaurant magazine, The World’s 50 Best Restaurants list is an annual snapshot of the opinions and experiences of over 800 international restaurant industry experts. What constitutes “best” is left to the judgment of these trusted and well-travelled gourmets. Europe remains the dominant force in the 2012 list with strong offerings from France which has 7 restaurants listed; 5 of which are in the top 20. Pierre Gagnaire’s eponymous restaurant in Paris at no.17 celebrates 10 consecutive years on the list, the only restaurant to show such Pierre Gagnaire enduring popularity. Eerily calm, rather serious and slightly bonkers- as the latest design at his London outpost Sketch attests- Pierre Gagnaire is a living legend of French cuisine. His overseas empire has expanded steadily, but this eponymous restaurant in Paris remains the epicenter of his work and one of the most vaunted places to eat in the capital, demonstrating the resilience of this hero of gastronomy. I Professor Philippe Lane, Attaché for Higher Education, has been awarded “Officier dans l’Ordre des Palmes Académiques” at the French Institute in London Philippe has been a Visiting Fellow at the University of Cambridge since 2009; he gives seminars on French cultural and scientific diplomacy. His recent publications include Présence française dans le monde: l’action culturelle et scientifique (La Documentation française, 2011), to be published in English by Liverpool University Press, next month. He also coedited with Maurice Fraser, Franco-British Academic Partnerships-The Next Chapter, and, coedited with Philippe Lane Michael Worton, French Studies in and for the 21st Century (Liverpool University Press, 2011).

Before coming to London, he was Pro-Vice Chancellor, University of Rouen (France). Prof. Philippe Lane and his wife, Roberte, will soon be moving to Amman (Jordan), their next posting. We wish Philippe and his wife all the best for the future. I

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news Bilateral News

Eleven new MPs will represent the French living outside France for the first time ||| French people living abroad will, for the first time, elect their own members at the French parliament. Indeed the French Constitution has been amended to create 11 MPs to represent them. They will join the 12 senators who sit on the Council for French Living Abroad (AFE), alongside other elected representatives. The number of MPs for mainland France has been correspondingly reduced to admit the new eleven constituencies. The first vote is on 3 June and the second vote on 17 June.

The new MPs will represent a huge French Diaspora living outside France and its traditional overseas territories, approximately 2 million French nationals, of whom some 350,000 live in the UK, which is part of

the third constituency.

This constituency, including Denmark, Estonia, Finland, Ireland, Iceland, Latvia, Lithuania, Norway, Sweden and the United Kingdom, has attracted no less than 20 candidates (see list below). There are ten other groups of countries electing one MP each.

As of New Year’s Day 2012, the third constituency comprised approximately 100,000 registered French voters. By far the greatest number of these (78,000) were living in the United Kingdom, the country with the third greatest number of registered French residents in the world. In contrast, there were only 126 in Estonia. I

Overseas residents Legislative Elections 2012: third constituency Party

Candidate

EELV

Olivier Bertin

Independent

Aberzack Boulariah

Independent

Olivier Cadic

Radical

Olivier de Chazeaux

Independent

Denys Dhiver

Left Front

Lucile Jamet

Independent

Patrick Kaboza

LDP

Gaspard Koenig

Independent

Bernard Larmoyer

Independent

Jérôme de Lavenère Lussan

FN

Guy Le Guezennec

PS

Axelle Lemaire

MoDem

Yannick Naud

Miscellaneous left

Will Mael Nyamat

Radical Left

Ezella Sahraoui

UMP

Emmanuelle Savarit

European Federalists

Christophe Schermesser

Independent

Marie-Claire Sparrow

Solidarity and Progress

Edith Tixier

Independent

Anne-Marie Wolfsohn

info - may / june 2012 - 33

news Schools

Tribute to Richard Descoings, the Genius of Education: Goodbye Richard...

Richard Descoings

||| RIP – Richie in Peace – was marked on the wall of the leading Paris Grande Ecole Sciences Po as one of many students commemorated their leader. Alongside the alumni, and notably those in the UK, close to Richard, they feel very much orphaned.

He was the reformer of Education: a senior civil servant of the prestigious Conseil d’Etat; ENA and Sciences Po graduate; who had worked closely with ministers, PMs and Presidents of both the left and the right. President Sarkozy, who paid tribute to him, gave him the hard task of reviewing the French school system which he undertook with flying colours.

He made clear reform recommendations, and the President would have liked him to be minister. In this context, Sciences Po was Richard’s research laboratory: he transformed the prestigious State degree from a three year BA into a five year MA, making it a leading social sciences degree. He created geographically specialised centres of education for the 1st two years located outside Paris thus mixing students from all over the world – Germany and Eastern Europe, Latin America, the Middle East, Asia and North America. He developed strong partnerships with leading universities including the LSE (a sister university), Oxford and

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Cambridge, and Columbia amongst others.

He attracted international students to Sciences Po and now well over 40% are from overseas and courses are being studied in English; he created new schools within Sciences Po, along an Anglo-Saxon model, in areas such as journalism, the law and the arts, and he grew the institution to embrace international standards with nearly 10,000 students.

He managed to attract the best professors and researchers from Ivy league and other leading universities. With the help of his wife Nadia Marik who worked closely with him to find new funding sources he developed strong relationships with corporates and the alumni.

He launched a €100m fundraising campaign and worked closely with Sciences Po Alumni UK in order to create student bursaries which now account for 30% of all matriculations and also introduced means tested fees; more importantly he created the innovative “social elevator”. At one of our many evenings together in London, he told us: “I simply could not live with the fact that over 90% of French students reaching Grandes Ecoles are from the top 30 schools in the best areas; there must be bright minds in the poorer areas as well. That is why I wanted to create the social elevator”. Breaking with convention, he created a specific entry exam for students from deprived areas (“ZEPs”); in an open challenge to the establishment, he demonstrated that such students could add value, integrate and succeed, proving diversity has value and can be achieved. Richard wanted to give every bright student their chance; he was a visionary and his loss to research, education and free minds is a great one. I Stéphane Rambosson, Managing Partner of Veni Partners, Chairman of Sciences Po Alumni UK

The French Chamber expresses its profound sadness at the death of Richard Descoings which represents a blow to the French business and educational community, in France and abroad.

Richard opened doors to learning for thousands and leaves a gap that will be hard to fill. Our sincere condolences to his family.

news Schools

CFBL one year on: a series of triumphs The school with the top cuisine

||| It’s only been running for two terms, but already The Collège Français Bilingue de Londres (CFBL) in Kentish Town, North London, has made a profound impression on the local neighbourhood. The school had been a dream of some leaders of the French community in London for some ten years. They were aware that the Lycée Français Charles de Gaulle in South Kensington was unable to cope with demand and that the North London area would benefit from a French establishment.

It took two years to renovate the Victorian building and the first classes opened last September. Principal François-Xavier Gabet affirms that the school has already enrolled up to its maximum capacity of 700 pupils. There is a waiting list of some 450 pupils.

Arnaud Vaissié, the President of the French Chamber of Commerce, and Chairman of the school’s trustees says ‘the CFBL has been an astonishing success. It has brought enormous benefits both to the French community of London and to the Kentish Town community.’ Indeed, Mr Vaissié notes that property prices in the area have risen following the school’s arrival. The school comes indirectly under the jurisdiction of the Agency For French Teaching Abroad (AEFE), a department within the French foreign office.

It has 12 classes at primary level and 10 at secondary.

Fees cost £5000 per year per pupil, considerably less than an English fee-paying school.

The school also has a very bilingual programme, and splices together British and French curricula. Children are tested in both languages and 50% of primary teachers are British. At the same time, they are ‘keen on maintaining French educational culture’, explains Mr Gabet. At secondary stage all lessons are in French, except for music, art and English literature. They are also recruiting teachers, ideally ones proficient in both languages. I

||| Several visitors to CFBL think canteen is altogether the wrong word. Consider the menu: on 30 April children had a Feuilleté of roast vegetables with a tomato coulis, traditional coq au vin or tempura fish goujons with garlic mayonnaise. Desserts are equally appetising, and healthy. The canteen itself is beautifully lit with natural sunlight, all encased in a renovated and typically Victorian building.

The dynamic pair of Chefs behind such delights are Anthony Prada and Francis Bureau. Francis has worked as a top chef for private schools for 30 years.

There he met French-born, English-raised half-Italian Anthony Prada.

‘When the school interviewed us, they saw us two, a working team, full of enthusiasm, knowing both sides of the coin, English and French. We often meet with parents and hear how enthusiastic they are about the food’, he went on. Most children are perfectly bilingual, ‘so nothing gets lost in translation’, joked Francis. I

info - may / june 2012 - 35

news Schools

Grenoble Graduate School of Business New MSc in Fashion, Design and Luxury Management

© flickr/Grégoire Lannoy

how of the unique factors involved in building and maintaining a luxury brand in this highly competitive and global environment.

Students will acquire a comprehensive understanding of the global fashion and luxury industry today and the challenges ahead, with a course which will cover: Branding and Brand Equity Management; Global Leadership and People Management; Intercultural Management and International Negotiations; Principles of Luxury and Managing Luxury Brands; Public Relations and Events Management; The Legal Context of the Design and Fashion Industry; Industrial Design; Sustainable Luxury and Design, Distribution Channels and Digital Marketing in the Fashion Industry…

Judith Bouvard, Dean of GGSB, said: “The Fashion industry is one of the most important sectors in terms of investment, revenue, trade and employment. The Luxury sector is also currently one of the biggest growth industries with a projected 8% growth for this year (Bain) and does not appear to be suffering from the current financial crisis.

“These sectors do require specific management expertise with more and more luxury companies seeking to recruit experts able to manage and grow their brands in fashion and design.

“This Master’s program provides a unique opportunity to acquire this expertise and to build a career in this fast growing and exciting sector.”

The program is composed of coursework over 12 months followed by a project. Each student will undertake an internship of a minimum of three months at the end of the taught part of the program. A research techniques module will prepare students for the project phase, which consists of the writing of an individual dissertation under the supervision of a tutor.

This program is open to student with a Bachelor’s degree. No work experience is required. I

Grenoble Graduate School of Business

||| Grenoble Graduate School of Business (GGSB) is launching a new MSc in Fashion, Design and Luxury Management starting from September 2012. Students can opt to be based in either of GGSB’s Grenoble or London Campuses, and will have the opportunity of studying in both locations.

GGSB has chosen to work with SFD London (School of Fashion and Design, London) for this program, which will also integrate a study trip to Italy.

From the principles of luxury brands to sectorial analysis, technology and innovation, creative fundamentals of fashion and design as well as Delahaye_Ad_82_62 19/1/09 17:13 aPage 1 know sustainable design, students will acquire specific

Worldwide and local removals, relocations & storage.

Serving the French community in London for over 30 years. +44 20 8687 0400 info@delahayemoving.com

Contact: mary.zaccai@ggsb.com

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news UK Regional Review

On more than a wing and a prayer… |||| Scotland and France suddenly seem that much closer thanks to three new weekly air routes. On 16 May customers began flying to Nantes, Lyons and Paris from Glasgow International, Scotland’s second largest airport. While some 120,000 took the Glasgow – Paris Charles de Gaulle route last year, this is the first time the city has linked up directly with Lyons and Nantes.

Much credit for expanding Glasgow’s flight network should go to François Bourienne, who has championed European routes ever since British Airports Authority (BAA) appointed him the airport’s commercial director in June 2010. Born in Normandy, educated at Lyon EM

Business School and INSEAD, Bourienne said of the new routes: ‘This clearly demonstrates that despite the current economic crisis, there is still a strong demand for international travel’.

Scottish airports registered an 8 percent increase in customer traffic in 2011, outstripping the rest of the UK; and last year 8.8 million passengers flew to and from Glasgow alone. France Travel Services, the firm managing the new routes, anticipates carrying more than 10,000 passengers to the three French cities in its first year of operation. Bourienne says that his team’s operational excellence and commercial zeal mean that ‘the airport and the city have huge growth potential’. I

French firm teams up for £50m wind energy deal ||| A Northern Ireland wind energy company has signed a £50m deal to distribute 200 single wind turbines here by 2016 with the creation of at least 20 jobs.

Belfast-based Simple Power has teamed up with French manufacturer Vergnet SA to deliver the company’s mid-range Vergnet GEV-MP R 250kW structures across the country. Construction work

has been awarded to Heron Brothers of Draperstown, Co Londonderry.

The news comes as a further boost for the everexpanding renewables industry in Northern Ireland and matches the £50m deal signed between Belfast Harbour and Danish energy giant DONG late last year. Simple Power chief executive Paul Carson said that he hopes that the development will create up to 20 new direct jobs. I

||| At Cardiff, a toddlers’ group started by French parents has blossomed into a fullblown school with families paying £50 per child per term to keep their language and customs alive. The 35 children are the offspring of French men and women who married Welsh partners and stayed here, or whose children started school in French speaking classes in France or Belgium before moving back to the UK. La Petite Ecole de Cardiff allows children to keep cultural links alive, “to improve the fluency and confidence of those children with their second mother tongue and to keep in touch with the French traditions and customs”, said Claude Rapport, the honorary French Consul of Cardiff. They use the French language with their friends, do arts and crafts, hear traditional stories and sing French songs as well as celebrate important national holiday.

In Llantwit Major, a 41-year-old teacher said: “The

© wikipedia/Mick Lobb

Franco-British pact for North Wales

The Old School in Llantwit Major

school helps our children keep their French language, which is very difficult when it is dwarfed by the amount of time they speak English. This way we help them not to lose touch with their French roots, and perhaps in secondary school they can become polylingual.” I

info - may / june 2012 - 37

s u cc e s s s to ry

Knowing your customers is absolutely essential.

When you create you can love something but you have to know what other people think.

Making business is child’s play for Cordelia The CDC label has established itself alongside the great children’s wear brands. It is the creation of Cordelia de Castellane, a designer turned entrepreneur. Her business is going from strength to strength

F

ashion is in the blood and veins of Cordelia de Castellane. Not only is her family in the fashion business, but she worked since the age of 17 for Emanuel Ungaro, the noted master of haute couture, as his personal assistant. Her fascination and talent for design was established at this formative point in her career.

When Ungaro retired in 2005, she decided to leave with him. She had many job offers in the fashion business, including one from Prada. She turned them all down.

Cordelia de Castelllane

38 - info - may / june 2012

Cordelia wanted to go out on her own and produce some clothes that fitted her own creative talent. As she had only just had her own children, she decided to enter children’s clothing business. ‘I knew what the kids needed. I decided there was a case for producing some affordable children’s clothing, between £30 and £60’. The clothing would ‘also be very French’.

Her expertise was in design and the first product was a girl’s blouse with a floral design. This was the moment when her CDC brand was born.

Two challenges now presented themselves. She needed to find someone to make it, and somewhere to sell it. Her own contacts and friends enabled her to triumph on both counts. People in the trade led her to a master producer in Indonesia who began making the blouses, very beautifully, on a small scale. In fact, this Indonesia lady continues to make small and beautifully produced batches. Her clothes are also made at six factories across India.

In addition to the immaculate design and excellent production, the products had the virtue of selling into a mid-to-high price range for mothers who really cared about how their children, in particular their daughters, looked. Today, two thirds of her products are designed for girls, as she says boys are generally content to have more basic serviceable clothes, rather than her finely designed fashionable items.

s u cc e s s s to ry

In those early days, friends provided her with her retail vehicle. As the business was so experimental Cordelia started in 2006 by doing no more than having parties at her house for mothers who were interested in seeing, and perhaps buying her clothes. This technique had been developed in the US where it was used to selling kitchenware and was called Tupperware parties. ‘I started in my living room, and I invited my friends. We started doing private sales all over the world.’

The parties were not just places to sell, they were also places for Children’s fashion by C de C her to understand her customers.

Fulham Road, and she is now looking at premises ‘When you start you make a lot of mistakes. It is good in Notting Hill Gate. ‘It is very important being in to know your problems. Knowing your customers is London. It is international, it is important for other absolutely essential. When you create you can love clients around the world.’ The brand is also for sale in something but you have to know what other people shops carrying other brands across Paris and London, think’. so-called ‘multi-brand’ stores.

The feedback and sales were impressive. In 2008, She now employs a team of thirty people, many she opened her first shop in Paris’ s rue du Bac. The of whom handle the administration necessary to premises, discovered by her husband, a banker in manage a growing business. Indeed, she particularly Paris, was affordable as it was small and of no interest emphasises the role of the head of production. ‘She to the major fashion chains that had premises close is a very important person, she controls the revenue by. This was a point of growth, and Cordelia’s cousin, we get from each sale, because if you can buy well, Segolene Galliene, joined her, and took 30% of the you sell well. Every cent you can save enables you business. She continues to be a partner. ‘This was the to make money. You have to buy the right fabric, at point when the business took off’, she says. the right price.’ She also advises watching the foreign Cordelia built a team of 15 people around her in France and started to create a number of collections. exchange risk. She says half of her clothes are made in China.

Three years ago, the business produced two hundred styles per season. Today the company produces more CDC today is one of the largest players in designer children’s clothing but Cordelia believes there is than 400 ranges, and turns out 300,000 pieces a year. considerable market potential. As of 2012, CDC is Cordelia also began to buy other premises in Paris and to franchise out the brand. Shops were established expected to have an income of some €5 million. ‘I like my team, I like the people I work with from in Madrid, Geneva and Athens. The challenges came the beginning.’ A recent shareholder who has joined thick and fast, and Cordelia took each, step by step. ‘I learnt the job day by day,’ she says. ‘We took the risk, the team is Laurent Dassault, the leading French businessman (a family member linked to Cordelia’s and we learnt. The important thing is to have good people around you. I took people from other firms cousin) who will acquire 8% of the company in 2016, who knew their jobs. They taught me how to do it. after investing some money in the business. The market potential is large. ‘There is a huge opportunity, It is very important to leave people to do their job, because they know it better than you do,’ she advises. especially as the Chinese get interested. For the ‘’They are giving you the experience they have gained Chinese, kids are king.’

While Cordelia oversees the business growth, her in other companies.’ CDC’s recent launch was targeted at teenagers, with the launch of the LOL range. first love is design and the creative side. ‘I am still Her first British premises opened in 2011, on really the company’s artistic director.’ I NK

info - may / june 2012 - 39

focus

Luxury goes from strength to strength The influx of new Chinese money, depressed stock markets, growing disparity of wealth are fuelling a luxury boom of massive and indeed surprising proportions

L

uxury is the exception that proves the rule.

While the average consumer in industrial economies is cutting back on his or her spending, the wealthy are increasing theirs.

The proof is there in the statistics: the management consultancy Bain & Co predicts that global luxury goods sales will increase by 10 percent to €191bn (£155bn) in 2011.

Such figures certainly put a spring in the step of the great luxury brands. Yet what is driving this growth?

What objects or experiences are people purchasing, and how are companies marketing them? To answer such questions, this special Focus on Luxury has polled experts in the field.

First we assess the global view and French and British fashions in luxury. Dame Judith Mayhew Jonas, Chairman of the New West End Company, outlines London’s pivotal role, both as a retailer and a creator of luxury items.

M a t u r e markets are still relevant;

indeed, Bain expects 10 percent growth in Europe and 12 percent growth in the Americas for 2011 at constant exchange rates. Japan surprisingly remains luxury’s second market, while developing market growth (China, 35 percent; Brazil, 20 percent; Middle East, 12 percent) is increasingly important for brands. Imran Amed, who runs the Business of Fashion website, says that “the most fundamental driver” now comes from sales to consumers from emerging markets.

Spending in Mainland China and by the 70 million Chinese tourists abroad constitutes just over 20 percent of the global luxury market. ‘We benefit from Chinese travellers because we sell a dream, we sell emotion and nowadays, more than ever, we need that,’ says Bernard Fornas, CEO of Cartier. As Xavier Calloc’h of Yacht Publisher has noted, there is a special cachet to buying luxury goods at source, in Europe, even if they may be less expensive in Chinese stores.

Many of our contributors refer to the Chinese impact, and the Chamber’s Luxury Club will shortly hold a meeting about the phenomenon. Participants in the luxury sector should also heed Lucia van der Post, who in her interview observes that the Chinese purchaser is becoming more sophisticated.

In similar vein there are changes on the producers’ and retailers’ side too. Hence our pieces on marketing to reach the young, greater use of online technology, different ways of protecting and promoting brands, and beneficial collaborations with the worlds of art and fashion. Lastly, we try to consider luxury in the broader sense, as anything from hotels to jewellery, scotch to yachts. In short, luxury has never been in better shape than when the wider economy is at its greatest peril. This Focus, we hope, reveals the sector’s full diversity. I

Focus Contents 42 London’s world-leading luxury quartier

50 No 5 and “that dress”: Chanel’s gifts to luxury

43 Walpole UK Luxury Benchmark Study 2012

51 Louis Vuitton: an open and shut case in how to run a luxury business?

44 The elegant and the interesting: how French and British fashions differ

52 To create is to remember

45 Reputation, innovation, presentation: What smart luxury investors look for

53 On the scent with a new brand

46 Making the web work for you

57 Spiritual relaxation in a top hotel

47 Countering the Counterfeiters…

58 Making a splash: yachts and the luxury buyer

48 Arnaud Bamberger: guardian of the Cartier heritage

59 Walpole Brands of Tomorrow

54 Luxury enters a brave new world

info - may / june 2012 - 41

focus Part one: Global overview

London’s world-leading luxury quartier London is both a world-leading centre for global luxury brands and a hub for brilliant UK designers and brands. Here Dame Judith Mayhew Jonas, Chairman, New West End Company, celebrates the City’s commitment to luxury and its luxury quartier

INFO: What do you see as London’s strength and style?

Over the last five years, London has become an international luxury capital, taking the very best from Paris, Milan and New York and other places. It is almost a global phenomenon, as well as a national one. The French and the Italians are almost as important here as the British and our contribution spans further than just luxury goods. We have the art market, world-class art galleries, museums, opera, fine dining and hotels.

The jewellery collections in London’s Bond Street, both modern and antique, are probably unrivalled in the world, particularly in terms of the quality of craftsmanship. There is bespoke tailoring from Savile Row, auction houses from Mayfair, the luxury lifestyle of St James and Jermyn Street. When you put this all together, you come up with a luxury quartier. We have borrowed the concept of the ‘quartier’ from Paris.

Many of these have shown truly impressive growth: Burberry, for example, which has just notched up a billion pounds of sales in six months, Mulberry, Alexander McQueen or Stella McCartney. Anya Hindmarch received the Veuve Clicquot business woman of the year in April 2012. There are very strong British luxury goods, but it is very important that we serve as a showcase for the world’s luxury goods.

Why is London such a magnet for the luxury sector?

The strength of our tourism industry proves a great pull. London also has a host of different nationalities,

42 - info - may / june 2012

© flcikr/samcraze

How would you assess British brands?

Anthony Gormley Blind Light series at the Hayward Gallery

with some 300 languages spoken. This has produced niche collections. There is a strong demand for French luxury goods. Yves Saint Laurent, Cartier, Louis Vuitton, Chanel have spent around £100m in doing up their flagship stores in London.

There are two reasons for this - London is a large city

focus

and we pull in high net worth international tourists, particularly from China, the Middle East, Russia, Brazil and Nigeria. We are beginning to promote all of this.

We must bear in mind that it is a third cheaper to buy goods here than in Shanghai. We also have traditional connections with many of these places.

Which are the greatest parts of the British luxury sector?

How do you explain the success of the British luxury sector?

What accounts for Paris’ abiding strength in luxury...?

We provide the base for the rest of the world to be here, both in terms of people and their goods. We get the advantage of having it on our doorstep. It provides tremendous employment for our craftsmen and great retail sales. It has created an environment, in which our luxury brands have really developed.

A lot of the big international designers are trained at the art schools of The Royal Academy, Goldsmiths and Central St Martins. We are known for training top international designers and some of them work here and some go back to their homeland. Our art colleges train these people while other countries’ art colleges don’t do it so much. We produce brilliant designers.

It lies in the reputation of its outstanding luxury brands. The French names are famous and you couldn’t contemplate being an international centre without very strong representation from the French luxury brands.

Their home base is Paris and that is a brilliant luxury centre, but it is more French than international. We welcome international brands.

I would pinpoint jewellery, bespoke tailoring, the art market, handbags… when you start looking at them, they are very strong. Craftsmen are the unsung heroes of British design, and we are going to celebrate them at the Diamond Jubilee.

What could London do to boost its luxury sector?

We are developing bespoke packages for high net worth visitors, we are beginning to work with hotels, so that the luxury end of the hotel trade can give visitors an experience they will never forget. I NK

Walpole UK Luxury Benchmark Study 2012 Respond to Chinese seasonal demands, harness the Internet and appeal to younger consumers: three of many wise tips for success arising out of a benchmark study of the luxury sector • The luxury industry in the UK is expected to grow a further 8.5% in 2012 and the overall industry is on target to achieve forecasts of £9.1 billion by 2015.

• Outside of London, and consistent with last year, Edinburgh and Manchester are closely tied as the next most important luxury hubs in the UK. • British luxury remains popular with the international consumer, whether through tourism to the UK, or British brands overseas: in 2012 72% will have a presence outside the UK, and brands are looking to expand into fast growing markets such as East Asia and Africa.

• In terms of British luxury abroad, 37% are already present in China, and a further 27% have made plans to enter the market. This interest is not just in the major (Tier 1) cities either: 67% of those looking at the country are investigating Tier 3 cities.

• Despite the interest in the British luxury industry in China, the UK is falling behind its European peers in attracting the Chinese shopper. The biggest Chinese shopping windows, such as Chinese New

•

•

•

•

Year and Golden Week, have no impact on sales for 71% of the sector.

50% of UK luxury brands are seeing more onlineonly clients – reaffirming the importance of the sales channel as an opportunity for global expansion for UK luxury brands of all sizes.

2012 is an especially important year for Britain and 63% of the British luxury brands believe the Olympic Games will positively impact their sales with 20% of respondents anticipating a doubledigit rise in sales as a direct consequence. 58% of UK luxury brands believe that the Diamond Jubilee celebrations will have a positive impact on sales.

The critical challenges facing the British luxury industry are reaching the next generation of consumers and effective e-business closely followed by recruiting talent.

42% of UK luxury brands surveyed believe that UK manufacturing is so important that it couldn’t be offshored. I Source: www.thewalpole.co.uk

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The elegant and the interesting: how French and British fashions differ Luxury starts and finishes with style and craftsmanship, says Lucia Van Der Post, associate editor of the FT’s How to Spend it magazine. Here she talks to INFO about her view of the sector How would you define luxury? What are the key qualities?

Which is the fastest growing area of luxury?

© wikiepedia/Simon Ebner

Luxury comes in so many guises. It Menswear. Men are finally beginning can be an object, an experience, a to shop like women. For example, wonderful book. We all have different Bernard Arnault has put his son ideas. Luxury has to be a bit rare and Antoine in charge of Berluti, the special. The every day, no matter how wonderful French shoe brand, with lovely, cannot be a luxury. Objects have the strict instruction that it should be to be beautiful or very witty. Somehow Burberry, have an idiosyncratic edge grown into a top men’s luxury brand. special, not run of the mill.

That is where there is huge expansion.

The men’s market is much less exploited. The women’s How do you see the emerging markets clientele expanding market is more saturated. and developing?

For many years, those who lived in Russia and China were so deprived of luxury that not surprisingly they fastened onto every grand label with great enthusiasm.

But they are quickly gaining a much more sophisticated and refined understanding of luxury. The companies that confine themselves to the bling and big logos must move fast to understand that Russians and Chinese perceptions of luxury are changing.

People with money, and there are still plenty of them, are making much more considered purchases. They want something really special when they buy and the craft aspect is very important. They want true quality and not just something well marketed. They want some connection between the maker and the object, so it seems like the real thing. They don’t want something made in large quantities.

What will they be looking for?

How do you compare British and French luxury sectors?

Top end luxury labels such as Loro Piana don’t have a logo anywhere. You have to understand the label, you have to wear it, you have to feel it to see how luxurious it is. They use beautiful fabrics and design in a very understated way.

They make truly lovely things but no-one would ever say, “look what he’s wearing”. If you go down the street with your Jimmy Choo shoes, and your Chanel bag and Dolce Gabanna clothes, everyone knows what you’re wearing, at least those that move in that world.

Some of the great brands do lovely things. Celine is a lovely brand where Phoebe Philo does very refined elegant unshowy, but sophisticated clothes. It is a much more sophisticated woman who goes for her. The sophisticated woman will wear a Chanel jacket with her jeans. The luxury customer today individualises their choice.

The French on the whole aim for elegance and sophistication. The British prefer something more niche and idiosyncratic. The hugely successful brands like Burberry have an idiosyncratic edge. The French brands are much more long-established. They have a strong DNA that people can relate to. English taste baffles foreigners.

English women prefer to look interesting rather than elegant. On the continent, they prefer to look elegant rather than interesting.

I recall how Coco Chanel observed about her lover the Duke of Westminster, the richest man in the world, that all his clothes were thirty years old. She later came to understand there was a certain elegance in his dress. The traditional British aristocracy do not buy into high fashion. I NK

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How do you assess the role of craftsmanship?

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Reputation, innovation, presentation: What smart luxury investors look for The development of a luxury business requires more than just a sense of style. It also requires brand creativity, careful execution of product development, and retail competence

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uxury is a dynamic sector, where brands are developing and evolving and where reputations can change rapidly. The investor’s goal is both to spot the next growth area but also to build up the brand in a way that maximises its value. This requires a degree of understanding and competence, typically possessed by long-term luxury players. Those who enter the luxury arena from outside, either as an investor in other brands, or as a builder of brands need to take great caution.

Heritage and creativity are the two pillars of any luxury brand, says Pierre Mallevays, the founder and managing partner of Savigny Partners, a corporate advisory firm focused on the luxury sector. There is now an interesting trend to look at the revival of heritage brands as a business model. This has recently been exemplified by the re-launching of Vionnet, a leading couturier from the 1920s, or Moynat, a midnineteenth century trunk maker which has been revived by Bernard Arnault’s group. Also in the works from some private investors is the opening up of a retail operation in Paris for Fauré Le Page, an eighteenth century arquebuse maker to be reborn as a luxury leather goods brand.

Creativity and innovation are no less effective in maintaining a luxury brand’s status and success. So Mr Mallevays points to the hiring of Marc Jacobs, one of America’s most inventive and leading designers, as creative director to Louis Vuitton some fifteen years ago. He says, ‘why bring in a New York fashion designer to a serious Paris-based leather goods business? But Marc Jacobs is a very talented designer; he created ready-to-wear for the brand and introduced various artistic collaborations and creative ideas for the bags.

So he brought to Vuitton things that were new but not core to the brand at the time. It succeeded in keeping the brand interesting and fresh and generated lots of editorial interest! That was a very smart and strategic move by the group.’

Fauré Le Page, formely located 8, rue de Richelieu, Paris

The presentation of the high quality brand is no less important than the product itself, says Pierre Mallevays.

This explains luxury companies’ considerable investment in top quality retail sites and furnishings.

He says, ‘you cannot rely on wholesale only; you have to have your own stores. The higher up you are in the luxury chain, the more you have to rely on retail. The best way to express the brand is through your own stores. People desire a luxury brand; they want to buy into the “brand universe”. ‘This environment is best created in a store belonging to the maker, rather than in stores where other brands are displayed, so devaluing the effect.

He cites another critical consideration for own retail: full control over the pricing policy. Pierre Mallevays says, ‘too much discounting or sales will hurt your reputation. Whereas if you have already sold your product to someone else, it then becomes part of that person’s inventory. And that other person does not really care whether discounting hurts your brand or not.’ However the flip side of that coin is twofold: obviously the cost of rolling out and maintaining such mono-brand stores, as well as the requirement to provide a near-perfect customer experience in keeping with the status of the brand. I NK

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Making the web work for you Rather than seeing the internet as some forbidding Wild West where your message may be misconstrued, Steve Hatch, Managing Director of media agency, MEC, shows how luxury brands can exploit amazing online potentialities…

How do luxury brands relate to the web?

The web’s success is due to the fact that it is open to everyone and that is almost the antithesis of what makes luxury brands successful. Luxury brands are driven by scarcity of product, by tightness of control and by quality. But web channels and platforms are becoming increasingly important to customers.

What is the web’s impact on communications?

The chief impact has fallen on the backbone of luxury communications, magazines and newspapers. People are spending less time in old media and more with new media. Technology now can be a luxury in its own right.

Look at the iPhone. It is stylish, well designed, cool, and beautifully put together, in exactly the same way that luxury products are. On the other hand, it is ubiquitous.

How do you use the web for marketing your luxury product?

You cannot control the context of advertising on the web, but you can create fantastic content. The question is not ‘where do I put my print advertisement online’, but rather ‘what do I create that can exist on different platforms, that demonstrates the quality of my product.’

need to manage the earned relationships by influencing the content, perhaps through blogger outreach to influential fashion bloggers.

Do luxury brands access technology differently?

People are intrinsically interested in luxury brands; detergent manufacturers have to work much harder to attract fans, followers and friends. So that’s one advantage! Brands benefit from managing content on their owned media channels. Yet the web is a series of open platforms: you can put creative material on YouTube and spread it via Facebook, but you can’t restrict who sees it. In fact, technology and luxury are far from opposed. Technology can make your content interesting and beautiful, and you get the same joie de vivre from it as you get from a luxury brand.

Media today takes three distinct forms. Paid media, owned or bought media and, finally, earned media

Could you give me examples of such web creativity?

The Hermés YouTube skateboard clip shows excellent use of the medium. Chanel has a fantastic new iPhone App, and Burberry were one of the first to get onto Google Plus.

How does the web benefit the brand makers and managers?

There are three ways to consider this.

On paid media, advertisers can target customers and potential customers, in ways that they cannot in other media.

‘Behavioural targeting’ means that they can see if you have looked at the Sunseeker speedboat website or visited Trip Advisor.

Second, the web allows you to distribute controlled and complete quality content through YouTube, Facebook and iPhone. Finally it enables you to seed information and exciting stories to influential fashion writers and bloggers.

So is there any contradiction between the web and luxury ?

How is advertising changing in today’s technological age?

Media today takes three distinct forms. First, paid media, which is largely advertising. Then there is owned or bought media. This includes your own shops and packaging, and now also your Facebook page, website or YouTube channel. Finally, earned media is where you create value through recommendation and commentary.

Luxury brands tend to emphasise owned media channels, where they directly control content. They

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None at all – it is about what you do and how you act. Luxury brands have always created fantastic relationships with customers, through retail and direct sale, or by creating groups that you can market to in a focused way. Now the web represents a new way of engaging a specific audience, in ways that other media cannot match and at a fraction of the cost of paid-for advertising. On that basis, the internet starts to look highly attractive to advertisers. I NK

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Countering the Counterfeiters…

Sorting out fake luxury items from the genuine article has got a whole lot more difficult since the boom in online trade. Dominique Tai, French Group Manager at Browne Jacobson LLP, has tips to fight the scourge

© flickr/Luigi Rosa

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ounterfeiting concerns the misappropriation of trade marks. It is big business and it’s getting bigger. The Organisation for Economic Co-operation and Development estimates that counterfeiting costs companies £160bn worldwide; this figure is predicted to rise to £900bn by 2016.

The problem of intellectual property is not just financial, however. In addition to brand damage and depriving governments of legitimate revenue, counterfeit sales often fund crime and pose significant health risks.

Counterfeit goods are historically found at market stalls, pubs and car boot sales

Who’s at Risk?

All sorts of goods are counterfeited, from cigarettes to pharmaceuticals to bootleg alcohol. However in few areas is the problem as rife than in respect of luxury goods. It’s easy to see why, because we are dealing here with high profit margins, and sky-high demand from an established “customer base” whose demographic cannot afford the genuine article.

Historically, counterfeit goods were most likely to be found down the local pub, or at market stalls and car boot sales. However, while fakes are undoubtedly still available at such venues, the savvy counterfeiter has taken distribution online.

The advantages of internet platforms over traditional trade channels are readily apparent. They provide anonymity to buyer and seller alike; give access to a huge, multinational, customer base; and can be tailored to mirror the trading platforms of legitimate sellers. A successful anti-counterfeiting strategy must, therefore, tackle online sales.

• Notify Customs – As most counterfeits are sourced from abroad, one of the most effective steps that a brand owner can take is to file customs watches with the appropriate border agencies. Customs then act as a business’ eyes and ears, stemming the flow of illicit merchandise before it enters the territory; • Assist police and government agencies, Counterfeiting is a criminal offence and can attract serious sanction, including fines and up to 10 years in prison. However, enforcement agencies have limited resources. It is in a brand owner’s interest to help these organisations, for example by providing market intelligence, evidence and being prepared to attend court where necessary.

• Manufacturers, retailers and distributors can fake-proof (and regularly change) packaging – for example: employ devices such as holographs, codes, watermarks and radio-frequency identification tags; display manufacturer’s contact information; and steer clear of plain boxes which are easily copied.

Combating the Problem It is impossible to stop counterfeiting in its entirety.

There are, however, steps that a brand owner can take to stop itself being a soft target: • Registration – Identify and, where possible, register key brands as trademarks and, where appropriate, designs. Although one can act without registration, the existence of a registered right invariably makes it easier to police the market;

There is no single solution. Counterfeiters use multiple routes to market and are becoming ever more sophisticated in the tactics they employ. Such tactics change daily in this perpetual game of cat and mouse.

Ultimately, collaboration is key. Businesses need to be flexible and work in conjunction with organisations such as the police, trading standards, customs and Nominet if they are to minimise the risk to their brand and society. I Dominique Tai

Collaboration works…

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focus Part two: Creativity, past and present

Despite problems in the economy, people want to indulge themselves. They make some money and they want to be able to show it

Arnaud Bamberger: guardian of the Cartier heritage While Cartier has achieved the gold standard for luxury, it is not resting on its laurels. the company spreads its business across a number of markets and product sectors to protect against cyclicality

How would you define Luxury as a concept?

How is the luxury market faring in today’s economy?

Luxury is not something necessarily needed for survival. It should bring the customer great pleasure.

It has an element of exclusivity, of rarity and beautiful craftsmanship. It has something special about it, and about the way it is presented too. Luxury is not fashion, although the two are sometimes confused. Fashion goes out of date, while luxury remains.

Despite problems in the economy, people want to indulge themselves. They make some money and they want to be able to show it and one way of showing it is to own some luxury products. People who are rich remain rich.

So the luxury market is still very important and growing fast and well. However we remain cautious about the prospects. Your production needs to be able to anticipate growth or contraction. You need to be able to react quickly.

How do you regard luxury brands moving into new and unrelated areas?

I find it very dangerous. It can be easy money, but easy money can destroy a brand. I am sure that if we launched ties they would be beautiful. But it is not in our DNA. We are known as a jeweller and watchmaker, and should keep to what we know and to how we are perceived.

We are not a global luxury brand, we are the king of jewellers. People who want to be too greedy may encounter problems one day. There is enough to play for. Gucci is one of the best for leatherwear, Chanel is one of the best for haute couture, but they are not able to do the same thing with watches. They have to be very careful how they extend their selling ranges and the image they want to portray. Widening too much may thin your image. I personally believe that they should stick to what they are.

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Could you describe your view of the internet as a tool for promoting luxury goods?

The luxury company cannot ignore the Internet or new technologies. It brings a lot of speed and effectiveness.

You need a good website and so on. But at the same time, you need stores located in the best streets of the world. The luxury company needs to romance its product, to show it directly to the client, and not just through a laptop. We need to speak about the product and the client needs to see it.

Some people will only buy through the internet because they want speed. But we need to be there in a smart way, so as not to jeopardise what we have been building up, and also to bring new customers to our stores. Ultimately you cannot sell a very expensive

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product online because you need to show it and explain the price. But we are testing the internet in Japan and the US and believe that it could rejuvenate our customer base, as younger people use the Internet.

How would you compare London and Paris as luxury centres?

London is the financial capital of Europe so it attracts a lot of people with money, captains of industry and so on. It is therefore quite important that luxury brands have a large presence here. London is a heavy hitter in terms of culture and heritage and this makes it very special, as far as Asian, Middle Eastern and Russian customers are concerned. These all travel to London, in part because they speak the language. London has something quite special that you don’t see elsewhere.

The luxury sector is very concentrated in a small area of London, around Bond Street whereas it is spread much more widely in Paris or Milan. London is known as a place where luxury goods can be found. It was always a destination for European courts and even for Maharajahs.

Could you assess the strength of the watch market for men?

A lot of men want more than just one watch, unlike our parents who had one watch for a lifetime. The luxury for men, since they don’t wear much jewellery, is to own excellent watches. Men love to have complicated watches. Watch-making is almost half of Cartier’s business. We make our own movements. We make some very complicated watches.

What is the luxury element in Cartier?

Cartier has a huge heritage but you cannot live in the past, although our past is fabulous. There is much to pick up from our past. The three Cartier brothers had exceptional creativity. We are still using aspects of their creativity, for example, they integrated Chinese and Middle Eastern motifs and we still benefit from that. We use new techniques, with the same love of craftsmanship and the same passion. We have a huge heritage and what we do is based on this heritage.

Cartier is identified with style. We create style, we don’t follow trends. But we also live in our own times, so if people want white or pink gold, we provide it.

In the seventies we launched Les must de Cartier.

They didn’t cost too much and were accessible to new customers (lighters, pens and watches). That is how we re-launched the Cartier name. It opened up a new market and rejuvenated the brand. People in the luxury market said we were putting Cartier in the streets. We gave people access to products that previously they wouldn’t have been able to afford.

It was a good marketing coup and it entitled us to

Arnaud Bamberger, Executive Chairman of Cartier

launch new lines, like leather goods and bags.

Where is your business strongest and what is the outlook?

The markets in Asia are clearly growing the fastest and we are lucky to have been part of this growth throughout our history. Indeed, we have forty shops in China today and it is worth mentioning that the Chinese influence has always been part of our brand as the Cartier brothers who developed Cartier internationally already loved to travel and brought back influences from all over the world. Therefore you will see Chinese style dating as far back as 1900. It is the same for Middle Eastern, Russian and Indian styles.

We do not need to create products for the rising global demand nowadays, we can go back into our archives and re-interpret the pieces. This aspect of heritage and history is very valued by our customers.

At the same time we need to maintain our presence in Europe and America. There needs to be a balance in everything we do. We need to keep our traditional customers happy in the way we manage our brand, how we do things. It is a balance between dealing with the people that have known Cartier for many years and the people who have just discovered it. Our customers are various, so we need to target each one individually. I NK

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No 5 and “that dress”: Chanel’s gifts to luxury Coco Chanel was chief designer at her eponymous company till her death in 1971. Since then Chanel has continually reinvented itself. INFO traces the extraordinary saga…

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an any fashion item be more iconic than the “Chanel little black dress”? Historic yet timeless, simple yet elegant, the “LBD” was first advertised in a 1926 American Vogue. It soon became the “must have” article in any sophisticated lady’s wardrobe, and gained a new lease when Audrey Hepburn sported a version in 1961.

Endorsing the image Of course, Chanel is equally famous for Chanel No5.

A bottle of the classic fragrance is bought every 30 seconds and the brand generates annual sales of $100m. Chanel was always ahead of its time. While other labels concentrated on this or that speciality, they pioneered different ranges: dresses, handbags, perfumes, jewellery, make-up, accessories and watches.

Early on Chanel discovered the power of celebrity endorsement, as when Marilyn Monroe was asked what she wore to bed and replied “a few drops of No 5”. The fragrance was devised in 1921 by Ernest Beaux and first advertised in 1924, via Pierre Wertheimer’s “Parfums Chanel”. Jacques Helleu revitalised the brand in the 1970s with television ads that were inventive mini-films, featuring Catherine Deneuve. Other Chanel spokes-models have included Carole Bouquet, Keira Knightley, Nicole Kidman and Audrey Tautou.

Remarkable life story Paradoxically for a purveyor of luxury, the genius behind the enterprise – Gabrielle “Coco” Chanel herself – was born in humble surroundings in 1883.

Through sheer determination she graduated from an orphanage, set up her first shop in Deauville in 1913, and came to dominate the French and then the global fashion scene.

Coco Chanel grasped what young, liberated postWorld War I women wanted. She designed the little black dress, the two intertwined letter Cs, Chanel logo

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The one and only Coco Chanel

and the No 5 bottle entirely by herself. Their simplicity overthrew grandiose, stiffly corseted “high fashion” and her blended fragrances revolutionised the market.

‘A woman without a perfume is a woman without a future’, she once declared.

Renowned for her own tumultuous life, Coco had a romance with the Russian composer Igor Stravinsky that informed a 2009 film directed by Jan Kounen. “Coco Before Chanel” came out the same year, starred Audrey Tautou and grossed $44m in eight months. Meanwhile Shirley MacLaine depicted the older woman in a television film series in 2008.

Brilliant branding There are 310 Chanel boutiques worldwide, including 94 in Asia, 70 in Europe and 128 in North America. With 2010 revenues of €1.8bn, Chanel also retails through other chains and uses the Internet with aplomb. Stability defines their ethos: Karl Lagerfeld has been chief designer since 1983, Jacques Polge the in-house perfumer since 1978, and new fragrances emerge only sparingly.

Yet innovation is also key: witness the Women’s Suit of 1920, the 2.55 quilted leather handbag in 1955, Coco Mademoiselle and “In-Between Wear” in 2003, and ceramics since 2008. So whatever the next LBD or No 5 will be, it is bound to be exciting. I LRJ

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Louis Vuitton: an open and shut case in how to run a luxury business?

Over nearly 150 years Louis Vuitton has risen from being a humble manufacturer of trunks to a global exemplar of luxury sophistication.

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veryone knows the power of a brand, yet that wasn’t the case in 1896, when Georges Vuitton came up with the iconic LV monogram – probably the first “designer label” in history. Practical in purpose as well as aesthetically appealing, the design, embellished with Oriental motifs, was meant to guard against counterfeiters. The fact that people still try to bootleg Louis Vuitton might be considered a backhanded compliment!

From Paris to the world Since then the company with revenues in 2011 of €2.5bn has set one benchmark after another. Lesson no 1 would be its appreciation of globalisation. Products made in nine workshops from Italy and Spain to California are sold on every continent. Even before setting up its flagship Champs-Elysees shop in 1913, LV forayed to London in 1885; then to Japan in 1978, Beijing in 1991, Marrakech in 2000 and Sao Paulo, Johannesburg and Mexico City in 2004.

Louis Vuitton began as a small workshop on Paris’s Rue Neuve des Capucines in 1854. Seeing a gap in the market precipitated by the tremendous boom in travel by sea, they began creating the first hardy and easily packable quality trianon canvas trunks. Before long they patented a personalised lock. With that comes luxury branding lesson no 2: meeting functional needs often precedes the acquisition of “luxury status”.

Yet quality needn’t be sacrificed: still today about 100 stages go into producing a single LV bag. Diversification forms lesson no 3: LV now makes handbags, shawls, watches (Tambour, Speedy and other ranges), jewellery, rugs, and more recently, sunglasses, men’s leather goods, ready-to-wear travel clothes and guide books.

Innovating the core business would be lesson no 4: departing from its usual sobriety, in 2002 LV unveiled its street-inspired Patchwork Collection, and teamed up with US designer Marc Jacobs and Japanese pop-artist Takashi Murakami to transform the classic Monogram Canvas into the vibrant Multicolor range.

The Louis Vuitton flagship store in London

Adventurous selling LV also embraces innovation in retailing, with popup shops in Cannes and in-house stores in Selfridges.

Generally, since the 1980s, LV sells only through its own named stores, which allows it to control price, quality and profit.

LV also highly values people and partnerships. The merger that created LVMH in 1987 saw profits climb by 49 percent the following year. Other fruitful collaborations include celebrity endorsements by the likes of Kate Moss, Uma Thurman, Naomi Campbell and Scarlett Johansson, and links with artists. Its world-beating Bond Street Maison showcases new works, and was launched in 2010 together with a “Young Artists Project”. This year LV has collaborated with Tate Modern exhibitions featuring the indie European jewellery maker, Stooki, and the Japanese artist Yayoi Kusama.

The company additionally funds public health initiatives and medical research, including for AIDS. Since 1990 LV has handed out 22,000 tickets so that promising young musicians can attend outstanding concerts in Paris. Over some 150 years it has developed a brand with total assets of approximately $19bn.

Moreover Louis Vuitton offers object lessons in how to run a modern luxury corporation that blends profit with social responsibility. I LRJ

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To create is to remember Past and present both have their place in the creations of Boucheron, and finding the right balance is the ultimate challenge, explains Nathalie Deplace, Heritage Director at Boucheron

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s the first jeweller on Place Vendôme, Boucheron has sought to embody excellence in jewellery, high jewellery and watchmaking for more than 150 years.

Each creation draws from the history and the values of the Maison, celebrating a modern prowess that is constantly reinvented.

between knowledge and expertise of the past and a feeling for the present. The signature theme in this case is the skilful assembly of four separate bands, four motifs and four colours of gold, which the company sees as epitomising the savoir-faire and heritage of the master jeweller.

Modernity meets heritage Since Frédéric Boucheron founded the house in 1858, all of the collections display the ability to capture the spirit of the time, whilst gathering inspiration from a past rich in emotion. Instantly recognisable, the Boucheron style expresses French elegance in creating the classics of tomorrow, whilst embracing its heritage.

Each piece is executed with craftsmanship and a sense of design.

The jewellery collections of Boucheron are based at Paris’s famous Place Vendôme, just north of the Tuileries Gardens. They balance inventiveness with respect for tradition. The Maison’s iconic Quatre rings, for instance, try to achieve precisely this balance

Variety, shine and design The variations of the Quatre rings are inspired by the iconic motifs of Boucheron: the art of the polisher shines through the gadroon motif; the ingenuity of the diamond setter is reflected in the band of diamonds; the precision of the engraver echoes through the “clous de Paris” motif and the magic of the goldsmith gleams through the grosgrain motif.

All of these motifs have been used in the Maison’s creations throughout its history. The gadroon, first discovered by Frédéric Boucheron in 1889, has been an inspiration ever since. A symbol of union, this motif has been employed in the famous Reflet watches designed in 1947, accessories of the 1950s and the Maison’s bridal collections, first presented in 2003. The “clous de Paris” pattern, inspired by the cobblestones of the Place Vendôme, was first introduced in some of the 1950s lipstick cases and beauty accessories. Lastly, the grosgrain pattern, which showcases the jeweller’s savoir-faire, adorned the Maison’s cigarette cases from the 1950s and its 2004 grosgrain watch.

A Maison Boucheron creation thus seeks to tell a story: that of the Maison and of those who wear the creations. Thus, each piece is a collection of stories and emotions, enriched over generations with the promise of eternal luxury. I LRJ

Rings designed by Boucheron

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On the scent with a new brand Inventive animation to market a perfume seems to be paying off for one established cosmetics house. Certainly sales figures are nothing to sniff at! Helen McTiffen, PR Manager for Guerlain UK, explains more…

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he face of luxury branding is changing. Thanks to the internet and social media, the consumer is spoilt for choice and more aware. If there was ever a time to build a strong competitive identity and story, it is now.

Targeting the young For luxury brands the story has traditionally been about the artist. Guerlain, for instance, has always cherished the creativity and craftsmanship of perfumers like Thierry Wasser. In 2012, however, Guerlain is reviewing its global strategy with the launch of La Petite Robe Noire, a new fragrance with a unique and unconventional approach.

The company recognised the need to target a wider, younger audience, yet without veering too far from its loyal fans and its reputation as an established global perfume house. In order to engage with consumers on a personal, emotional level, Guerlain created a character which women of any age could aspire to, one that offers both immediate attraction and lasting appeal.

An animated response…

While all luxury perfume houses rely on celebrity spokespeople to front their advertising campaigns, Guerlain has become the first to introduce an animated character instead of a model or ‘egerie’. In one sense La Petite Robe Noire harks back the days of classic Guerlain illustrators, like Darcy, Cassandre and Nikasinovich. Yet by giving free rein to contemporary artists Kuntzel+Deygas, it is modern and offbeat too.

La Petite Robe Noire taps into the stereotype of the chic, flirty Parisian, a mischievous illustrated black silhouette, moving through a unique showcase on the

borders of fragrance and fashion. Her stylish illustrations adorned billboards pre-launch whilst ‘pop-up’ stores dedicated to La Petite Robe Noire expressed the brand in a more amusing, younger manner. She was introduced in 3D in cinemas, and her video became a viral hit reaching millions.

Watch for those codes Investing substantially in the current digital revolution was a bold move, but Guerlain carefully maintains traditional luxury values. Look closely and you will find references to brand codes throughout La Petite Robe Noire’s performance. Guerlain’s famous double G logo, iconic heart shaped bottle stopper, Arc de Triomphe (a reference to the brand’s heritage) and Taj Mahal (a nod to the legendary Shalimar fragrance) are all there.

This contemporary communication strategy signals a new era. For while a luxury brand inevitably has to forfeit some control when entering the digital arena, that risk is offset by the originality, mass appeal and consistency of the message.

Top seller in France So, does the new brand attract consumers of luxury goods? The results so far suggest it does. Since launch it has been the number one fragrance on the French market, with a record market share; and 72 percent of these customers are new to the Guerlain brand.

Emmanuelle Noyer, Managing Director for Guerlain UK and Ireland, says that ‘although the brand hasn’t got the same awareness in the UK, the ambition is the same.’ It certainly wouldn’t be the first time something quintessentially French caught on over the Channel!I La Petite Robe Noire launches in the UK exclusively at Selfridges on June 24th and nationwide on July 24th.

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Luxury enters a brave new world Defining luxury is challenging, especially in an ever-changing global market. Yet blending tradition and newness with art and ethics might guarantee future success, argues Alessandro Iobbi, Finance Director for The Art Newspaper

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o single widely accepted description can capture what luxury means, either within a country or worldwide. Nor is there any simple definition which sums up the essence of luxury, without risking falling apart in a series of strong contradictions!

Perceptions, old and new In part, ambiguity lies at the heart of the word’s very origins. The Latin term luxus, from which it comes, was used to describe at the same time ‘’excess’’, ‘’intemperance’’, ‘’dissoluteness’’ as well as ‘’splendour’’ and ‘’magnificence’’.

Ancient Rome was an incomparable synthesis of these facets, a contrast of positive and negative meanings. On one side stood its greatness, art and creativity; on the other side, its indulgence, or rather a law (lex Iulia sumpturia) that opposed luxury as a dangerous ostentation for the civitas, or civil society.

Contrasting markets Nowadays the luxury sectors still reflect those aspects, and the perception and evolution of the concept of luxury varies in different parts of the world. At a time of financial uncertainty, major idiosyncrasies have arisen between emerging economies and countries where the main luxury brands originated or had their traditional markets until 20 years ago.

The luxury good consumer market is in good health and is forecast to expand by 10 percent in 2012, and by even more by 2015. Despite such buoyancy, luxury firms are not complacent. Indeed many luxury brands have concluded that this is a good time to go back to tried and tested production values, in order to consolidate the perception of their product and differentiate from others.

Quality and ethics In brief, they expect in the near future that the word quality rather than luxury would better represent their

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values. The context, of course, is a global economy where positive trend of sales and revenue contrast with delocalisation and uncontrolled growth, as in Asian markets. Luxury firms worry about a possible boomerang effect, arising out of the way their brands are perceived elsewhere.

So various brands have recently been following an ethical approach to luxury, by investing in culture (not only brand culture but, importantly, supporting directly cultural and art projects). This trend applies to all dimensions of the sector: fashion, hospitality, furniture designers, to name just a few.

Synthesis of luxury and art Increasingly luxury and particularly fashion brands are casting a presence over the art world. Examples include Foundations Cartier, Prada, Pierre Bergé-YSL, Maramotti and Trussardi. Another instance is Ferragamo Museum’s project for artists, or Prada’s exhibition ‘’Schiaparelli and Prada: Impossible Conversations’’ which was launched on 10 May (running until 10 August) at the Metropolitan Museum of Art in New York. All in all, this represents a sign of how intense relationships and synergies between luxury and art are.

On the other hand, Gilli, an Italian producer of handbags and accessories founded by Giulia Ligresti, has taken another approach to building its brand.

Now they are working in partnership with the Spiral Foundation, a non-profit humanitarian organisation that recycles materials for its handmade products in Nepal and Vietnam.

Divining the future What will be the scenario of the luxury sector in ten or twenty years’ time? That is still hard to predict. But the answer might be found in Hubert de Givenchy’s words: “For those concerned about quality, prestige is what counts. Success is not prestige; prestige alone is what endures after you’ve gone.” I

focus

When the King of Scotch met the Queen of Punk Post-punk stylishness and the historic craft of whisky distilling seem like universes apart. In fact they share much in common: audacity, craftsmanship and British distinctiveness. Carla Webb, International PR Manager at Chivas Brothers, explains more ||| Sold in over 150 countries, Chivas Regal is a truly global brand. The challenge is how to maintain appeal in an ever-changing world, to refresh an old favourite for a new generation. One way is through cooperation with artists who share core values of craftsmanship, style and audacity.

Since the late 1990s, Chivas 18 has partnered with several iconic designers from the world of fashion. At London Fashion Week 2011, Chivas 18, teamed up with Vivienne Westwood, who rose to fame in the late 1970s as the doyenne of punk couture.

Curiously, Scottish tradition and London rebellion were never really far removed. Use of tartan fabric and 17th century cloth cutting techniques typified Westwood’s early production. Likewise the art, experience, tradition and passion of Chivas Master Blender, Colin Scott, in many ways mimic the work of a bespoke designer.

In creating this limited edition, Westwood used her expertise in tailoring and cutting to re-imagine the bottle as a figure to be adorned in the Union Flag print. Fittingly the flag originated in 1801, the same year the Chivas Brothers launched their enterprise. At the same time it is a thoroughly modern cut. Only 2,500 such “Chivas 18 by Vivienne Westwood” bottles were

launched by Pernod Ricard in some 30 markets.

The response was exceptional and the results mutually beneficial. Following this synthesis of British icon brands, watch out for the next partnership later this year. I

Blending art and craft is today’s mark of luxury The artist’s palette meets the diner’s palate at London’s exciting sketch restaurant. Emma Field, Sales and Events Director at sketch, explains more ||| We need only look at the paintings of Rubens, Picasso

or Cézanne to see how strong the partnership between art and food has always been. The London restaurant sketch now provides a good example of how this timetested association is being taken one step further. The very name ‘sketch’ implies a work that is forever evolving and changing. A similar sense of the dynamic informs all the spaces in the beautiful listed building that houses the suite of sketch restaurants. It may be something as simple as an innovative new dish, or as complex as a new collection of paintings in the Parlour.

It is, however, the brand new restaurant at the site – Martin Creed at sketch – that truly epitomises the partnership between art and the craft of cuisine and service. The Turner Prize winning artist Martin Creed

has transformed the Gallery restaurant, by blurring the boundaries between art, food, design and functionality.

‘Work No. 1347’ consists of a floor made of 96 different types of marble; and ‘Work No. 1343’ is one in which every single piece of cutlery, glass, chair and table is different.

Guests literally dine within major works of art.

Sketch’s co-founder and three Michelin-starred chef, Pierre Gagnaire, has designed the menu in collaboration with the artist, experimenting and creating dishes directly influenced by Creed’s unique vision. With this new initiative, sketch at 9 Conduit Street welcomes another name at the forefront of the creative world; quite appropriately, given that the same premises once housed both the headquarters of RIBA and the atelier of Christian Dior. I Emma Field

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focus

Luxury means authentic local experiences Integrating culture into the usual hotel experience provides a fresh take on modern travel, argues Arnaud de Saint-Exupery, General Manager of Andaz Liverpool Street – and also signals a new sense of “luxury”... ||| Luxury travel is not simply a question of visiting a place

and staying in a stylish hotel. It can also be about gaining authentic and intimate experiences. The two aspects combine, in fact, when a hotel acts as a platform for creativity, reflecting a local community and its lifestyle.

Such is the case with Andaz Liverpool Street in the City, London. Each September for the past two years, the hotel has participated in the London Design Festival (LDF). During this ten-day period Andaz is transformed into a design hub, creating exciting spaces for guests and showcasing the talents of local designers.

At last year’s LDF, for instance, the hotel partnered with FranklinTill for Secret Sensory Suppers, and together they produced a series of gastronomic sensory feasts which explored the relationship between food, sight, scent and sound. The 11:39 hotel’s atmospheric Ad Mag:Layout 1 10/5/12 Page 1

Masonic Temple became an experimental space for two hours each night, where guests were treated to an exclusive evening of extraordinary visual experiences and fantastical banqueting.

Designers also exhibited interactive installations throughout the hotel, such as ‘Once Upon A Dream’ in partnership with Veuve Clicquot, a pod-like structure that induced sleep after jetlag. Designed by Mathieu Lehanneur, the dream capsule was displayed during LDF and played host to design luminaries and London tastemakers as they read excerpts of their favourite books to guests.

Luxury travellers are adventurous and appreciate such details. So a hotel need not be just a place for guests to rest your head. It can provide a fresh and modern take on luxury travel, connecting our guests to culture and acting as a curator of inspiring experiences. I

CROSS CULTURAL RELOCATION WITH A HUMAN TOUCH

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focus

Spiritual relaxation in a top hotel Good food, great amenities, wonderful staff are all components of the luxury hotel mix.

But the client really remembers a stay if it fulfils a higher need, says Nicola Liddiard, UK director of Relais & Chateaux

T

he luxury concept for hospitality is intangible and relates to the spirit as much as the physical side of accommodation. The luxurious hotel or chateau is not necessarily one that has the most exquisite amenities, although of course many do, but the one that offers a break from the daily routine and the stress of life.

Hotels are in short an oasis of calm as well as comfort, places for exploration as well as friendship and fun.

Luxury is also emotional, affecting the senses in an unquantifiable way.

Luxurious hotels must also tailor their interests and amenities to the individual’s own needs. A packaged break in a formal hotel that lacks the personal touch will not give the same enjoyment and satisfaction as a stay in a property whose staff meet, know and greet their guests. The warmth of the greeting is the signature of a luxury hotel.

Individuality - the accommodation and the way the guest is treated - is key to luxury. ‘Each hotel is unique:’ says Nicola Liddiard, UK director of the Relais & Châteaux London Maison, the global organisation of luxury hotels and chateaux, ‘Each owner is unique, and every place offers something different.’ She stresses the importance of a warm welcome and conviviality. ‘In a small hotel or restaurant you have the opportunity to offer the personal touch, not possible in a larger context. The guest is not just a room number, but an individual welcomed into a private home.’

Luxurious hotels treat their guests as friends, who have the opportunity to make new friends. ‘there is a sense of fellowship, with likeminded people meeting and making friends. They will go into the lounge area and sit by the open fire and get talking.

People like to go to places where they are known and know people.’

Luxury hotel styles range from the highly traditional English mansion, with log fire and a comfortable bar, to the more avant garde establishment catering to a more adventurous

Nicola Liddiard UK director of Relais & Châteaux London

clientele. Chewton Glen, a country house, member of the Relais & Châteaux group, has recently opened some stunning ‘tree houses’ in its grounds. These are equipped with luxury fittings and furnishings, on a par with the hotel’s interior accommodation.

But Andrew Stembridge, Chewton Glen’s owner, says they appeal to ‘more adventurous spirits.’ Such facilities become talking points, says Ms Liddiard and that helps their luxury appeal.

A meditation space appeals to the executive who arrives in a stressed state in need of relaxation. Ms Liddiard says: ‘Clients have been chasing their tail and are stressed out. The hotel knows that the guest needs to be de-stressed to enjoy his or her food. The meditation space is one ideal way to achieve this and put the guest into a state where he or she can enjoy the surroundings.’ I NK

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focus

Making a splash: yachts and the luxury buyer You’d think the recession would curb even the most ardent luxury seeker’s desires. Not so when it comes to the world of super-yachts. Xavier Calloc’h, media director for Yacht Publisher, reveals more…

S

uper-yachts are the premium luxury product and the ultimate “signe de richesse exterieure” for the global mega-rich who want to show off financial success or their elite social status.

Affordable only by just a few, these items of luxurious floating private estate are the result of years of development and planning. Some might say they are the culmination of the feeling of “I must have one”, combined with a similar passion for buying an extremely rare product.

Customised to taste The future super-yacht owner will have to choose for motor or sail yachts with classic or modern style where their choice of yachting technology will mix directly with their personal taste of interior design and luxury appreciation.

Alongside personal good taste and the recent development communication technologies super yachts have gone from exclusive retreats for yachting fanatics to entertainment palaces where business can be conducted and therefore becoming an all-round lifestyle with the need of comfort, indulgence, good taste and helicopter pads now becoming the normality.

Doing better in recession?

Superlatives are common vocabulary in an industry which often compares itself to the international financial market. For just like those markets, the construction of small and medium size yachts suffered heavily during recession, while a few mega-yachts seemed to be getting bigger and more expensive over the same period.

The purchase of a super-yacht has actually become more attractive during the current financial downturn.

Now the race is on for the largest possible model to eclipse your rivals’ trophy, and there is much

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CMN Yachts © Guillaume Plisson

competition around displaying the most exclusive brands for their interior design.

Targeting the super-spenders Back in 2010, Wally, the Monaco based Italian shipyard, had partnered with Hermès to create WHY (Wally Hermes Yacht) a gigantic boat while Hermès had previously worked with EADS for helicopters and therefore getting involved with the most exclusive audience classified as “high net worth individuals” (HNWI).

While the Middle East and Russian HNWI have already been heavily targeted, the appearance of socalled “ultra-high net worth individuals” in China and India has opened new markets. And while no one knows the longevity of the Asian Gold Rush, it has given a new hope to the international shipyards fighting to sell ever bigger yachts.

Nevertheless whatever the market, there always will be a buyer of luxury products – and the Super Yacht industry is the culminating point where fashion, travel, art, design, technology, communications, fast cars, private jets, exclusive estates and wealth management all merge into a single product. I

focus

Walpole Brands of Tomorrow Building a luxury brand requires personality and vision. It also requires business technique and skill. That is where the Walpole Brands of Tomorrow fulfils a vital role

U

K entrepeneurs are particularly strong in the generation of business ideas and concepts. They have a powerful track record of creativity, but a weaker story to tell about their ability to build and exploit the business and the brand values, especially in the luxury area.

The Achilles heal in the British culture of enterprise is a lack of understanding of some key concepts in the luxury area including strategic planning and recruitment. Failures in these key skill sets can lead to businesses being undermined, even failing. To raise the chances of success in luxury brand building, entrepreneurs need mentoring and guidance in the early years of their new business.

This was the prompt for John Ayton to launch ‘Walpole Brands of Tomorrow’. Mr Ayton, who had founded and successfully built Links of London, the luxury jewellery company, as well as fine jeweller Annoushka, was a member of the Walpole Group of British luxury brand companies.

The result has been a programme for businesses with potential to grow and become significant brands. The programme called ‘Walpole Luxury brands of tomorrow’ lasts a year and gives the selected entrepreneurs access to top quality and successful brand owners, brand builders and brand advisers. These include Gillian de Bono, the editor of the FT’s ‘How to Spend it’ section, Robert Bensoussan, the chairman of LK Bennett and former managing director of Jimmy Choo, Michael Ward, the Managing Director of Harrods and Sarah Elton, the former managing director of Smythson.

Mr Ayton says, ‘People who have recently started a luxury business, need recognition and guidance to enable them to scale up the business. We had the experience of taking a brand from the kitchen table, expanding it and selling it. As an entrepreneur, it would have been incredibly helpful if I had had someone giving me advice about setting up and running a new

business. I value the practical advice of entrepreneurs.

That is what we aim to provide.’

The competition to be accepted onto the programme is intense, with upwards of one hundred entrepreneurs submitting applications. The selectors narrow the field down to 16 and then six or eight successful applicants. He says that the quality of personality and the entrepreneur’s vision are as important as the business plan. ‘Businessmen need to be quick to respond to changes in the market or the competition. It is the flexibility and clever mind that counts as much as the concept.’

Once accepted the entrepreneur has the opportunity to network with other successful luxury business owners and managers grouped under the Walpole umbrella. They also receive individual mentoring to deal with the day-to-day issues facing the leader of a growing business. Sessions addressing a myriad of more fundamental topics, including, fund raising, making the most out of your PR agency and protecting intellectual property rights are offered. ‘The idea of Walpole Brands of Tomorrow is to take young British brands and nurture them through mentoring.’

The greatest challenge for the young entrepreneur is to make the business scalable, says Mr Ayton. He cites the example of Orlebar Brown, the makers of tailored swimwear with a ‘tailored silhouette’. ‘They had scored some swift early success but they didn’t know how to create a wider product category. They wanted to create resort wear, and then fit it back into traditional distribution. They wanted to learn how to run an internet business, alongside traditional distribution like retails.’ The Walpole training has enabled this company to expand and build a strategic and sustainable business plan. The founders of Bremont Watches Company, Astley Clarke (the jewellery boutique), Miller Harris (the perfume maker) and Caramel (the children’s clothes maker) are among the 36 names in the Walpole pantheon. I NK

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‘God Save the Queen’ poster promoting the Sex Pistols by artist Jamie Reid / 1977

Victoria & Albert Museum

British Design 1948-2012 sponsored by Ernst & Young ||| In 1948 London hosted the first Olympic Games after the Second World War. The ‘austerity games’ (as they became known) took place at a time of economic crisis in a city devastated by bombing, but they provided a platform for reconciliation and reconstruction. In 2012 Britain welcomes the Olympics once more, and while the spirit remains, the context in which they are taking place has entirely changed.

British Design 1948–2012 traces those changes by exploring buildings, objects, images and ideas produced by designers and artists born, trained or based in Britain.

The displays examine the shifting nature of British Design over sixty years: three galleries respectively explore the tension between tradition and modernity; the subversive impulse in British culture; and Britain’s leadership in design innovation and creativity.

The exhibition reveals how British designers have responded to economic, political and cultural forces that have fundamentally shaped how we live today.

They have created some of the most inventive and striking objects, technologies and buildings of the modern world. I 31 March – 12 August 2012 / £9.60-£13.80

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V&A British Design Season displays A series of displays has been programmed to complement the British Design exhibition:

Lady Gaga’s Monster Ball World tour 2009-10 © Es Devlin set designer

Transformation and Revelation: Gormley to Gaga UK design for performance 2007–2011 ||| Exploring the theme of transformation, this display will reveal contemporary designs for performance by over 30 British Theatre Designers. It will provide an intriguing insight into the designers’ creative process and will include costumes, set models, photographs, drawings, sound productions

and lighting designs. Designs include Sutra by Antony Gormley, War Horse by Rae Smith and Lady Gaga’s Monster Ball Tour by Es Devlin. I 17 March–30 September 2012, Room 104 / Free admission / In association with the Society of British Theatre Designers

Island Stories ||| Drawn exclusively from the V&A collections, this display is a selection of around 70 photographs celebrating the variety of photography in the UK since 1945. It captures the diversity of the island and its people, and focuses on narratives told through individual bodies of work produced during a dynamic time in British history. I 16 March–19 September 2012, Room 38a / Free admission

Kitchen cabinet with bottle and jars, from the Ideal Home Series 1990 © John R.J.Taylor

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Royal Albert Hall

West Side Story - celebrate the 50th anniversary of this classic film with live orchestra for the exclusive European premiere ||| Fifty years after its release, the MGM re-mastered film returns to the big screen in high definition with its original vocals and dialog intact. Experience this classic romantic tragedy and the bitter battle between the Jets and the Sharks as Leonard Bernstein’s seminal score, featuring the much loved ‘America’, ‘Somewhere’ and ‘Tonight’, is dramatically brought to life on stage by The Royal Philharmonic Concert Orchestra conducted

by Jayce Ogren.

West Side Story is the latest film to be presented with a live orchestra as part of a unique cinematic experience at the Royal Albert Hall. It follows the successful sold out performances of The Lord of the Rings Trilogy. I 22 - 24 June 2012

Royal Academy of Arts

Summer Exhibition ||| The Royal Academy’s annual Summer Exhibition is the world’s largest open submission contemporary art show. Now in its 244th year, this exhibition continues the tradition of showcasing work by both emerging and established artists in all media including painting, sculpture, photography, printmaking, architecture and film. Royal Academician Tess Jaray will be the coordinator for the Summer Exhibition this year. I 4 June – 12 August 2012 / £10

Museum of London

Dickens and London ||| There has not been a major exhibition on Charles Dickens in the UK since 1970. Dickens and London will be the largest exhibition marking the 200th anniversary of his birth in 2012. It will reveal that Dickens was the first great novelist of the modern city and the age of mass culture. Original and rarely seen manuscripts of his most famous novels, including Bleak House and David Copperfield, will be on show. The display examines the central relationship between Dickens and London – the city that he described as his ‘magic lantern’. Often walking the streets at night, Dickens would build in his mind the settings, plots and characters of his novels. I until 10 June 2012 / £8

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First edition of Bleak House being conserved © Ally Carmichael

book reviews

The Eyes of Lira Kazan

by Eva Joly and Judith Perrignon, translated by Emily Read. Published by Bitter Lemon Press. ||| In Lagos, operatives of the Norwegian secret service extract Nwankwo, head of financial investigations for the Nigerian government, and deliver him to London. Felix, a junior prosecutor in Nice, is called to investigate the violent death of the wife of a powerful banker based in the Faroe Islands. His investigation takes him to London. In St. Petersburg, Lira Kazan, a journalist famed for her anti-corruption investigative work decides to go to London to report on an oligarch involved in arms deals. An investigation too

far for all three as Lira, Felix and Nwankwo become allies and witness a series of killings, obviously linked by financial and political interests. They are isolated, terrified, and end up pursued by the oligarch’s men, the Western secret services and goons sent by Nigerian oil magnates. It ends wonderfully at a dinner at Versailles, honouring the oligarch and attended by the British Prime Minister and the French President, which ends in chaos triggered by a series of tweets disclosing the foul play all have entered into. I

Thérèse and Isabelle

by Violette Leduc, translated by Sophie Lewis. Published by Salammbo Press. ||| Charged with metaphors, alternating with precise descriptions of sensations and human relationships, ‘Thérèse and Isabelle’ was censored by its publisher in France in 1954, first published in a truncated version in 1966 and not until 2000 in its uncensored edition, as Violette Leduc intended.

“I’m trying to express as exactly, as minutely as possible the sensations of physical love.

There’s something here that a woman can understand. I hope this won’t appear more scandalous than the thoughts of Molly Bloom at the end of Joyce’s Ulysses. Every sincere psychological analysis deserves to be heard, I think.” Violette Leduc For the first time in a new English translation, here is the unabridged text of ‘Thérèse and Isabelle’. I

Jerusalem : Chronicles from the Holy City

by Guy Delisle, published in the UK by Jonathan Cape. ||| Delisle’s Jerusalem: Chronicles From the Holy City recounts his visit to Israel during a threeweek military incursion into Gaza sparked by rocket attacks on Israeli outposts that resulted in escalating tensions and the death of over 1,000 Palestinians. Delisle explores the complexities of a city that represents so much to so many. He eloquently examines the impact of the conflict on

the lives of people on both sides of the wall while drolly recounting the quotidian: checkpoints, traffic jams, and holidays. When observing the Christian, Jewish, and Muslim populations that call Jerusalem home, Delisle’s drawn line is both sensitive and fair, assuming nothing and drawing everything. Jerusalem showcases once more Delisle’s mastery of the travelogue. I

These books, written in french and recently translated into english, were selected by the French Institute

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w i n e p r ess

Finding luxury in a bottle…

“Luxury” has been redefined as Old World Bordeaux takes off in the new world of the emerging markets. Wine expert Thibault Lavergne explains the phenomenon

W

hat is the common point between Gucci, Chanel and Givenchy? One answer may be that the owners of all three fashion houses each own a prestigious wine from Bordeaux: respectively, Château Latour in Pauillac, Château Rauzan-Segla in Margaux, and Château d’Yquem in Sauternes.

© flcikr/InterContinental Hong Kong

Character and craftsmanship Besides knowing about the incestuous relationships that link luxury brands to these wines, it is clear that their inherent specific characters make them worth of consideration as luxury goods, too.

Nowadays these global brands travel happily from Europe to emerging markets such as China and Russia.

As with fashion, they convey a very strong creative dimension, with original style and origins, “terroirs”,

Château Rauzan-Segla

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created by specialists. They are also associated with handicrafts, real works of art, such as the instantly recognisable bottles of Dom Perignon and Cristal Champagne and the Bordeaux Haut Brion.

Each of these objects thus carries a message of rarity and exclusivity. Moreover buyers know that even the most renowned Château has benefited from the flying winemaker, a sign of globalisation at both ends of the spectrum.

Beyond mere expense These luxury wines will cost you a minimum of £100.

The wine that ranks just below could be seen as expensive but it is not a luxury wine in the true sense.

After the slowdown of 2008, genuine “luxury wines” are doing well in the real marketplace, as is true of other luxury goods. There are a lot of high priced wines, but wines that didn’t establish themselves as luxuries are doing poorly.

One should really distinguish between a luxury product and one that just commands a high price. A luxury brand is not established overnight. It takes a long period of aggregated appreciation for something to turn into a luxury. Once a brand is established as a luxury, as opposed to an item that merely costs a lot, it is a lot more powerful. Selling a luxury wine requires an international network and promotional expertise, which a global luxury group like LVMH knows how to do very well.

China’s tipple of choice As in the fashion industry, so with wines: consumers have come to identify with the renowned brands, or, in this case, even particular vintages. In China, for example, the Château Lafite 1982 is considered as a must-have wine for the new billionaires.

Drinking this bottle shows social position; all the more so, drinking Lafite Grand Cru is a pastime that

w i n e p r e ss

the rich in particular like to follow. In addition, the Château Lafite is the favorite wine choice of the gift market. Not only is it very expensive, it also gives people the confidence to offer it in front of everyone.

More than that, the five Rothschild arrows, symbol of the famous banking house, indicate immediately to all who receive it that they are about to experience something truly exceptional.

All wines from Bordeaux have benefited from this success. Now mainland China is the largest importer of Bordeaux by volume, while Hong Kong is the largest importer by value. Whether they lay it down as an investment, or share it with cherished friends, the Chinese know that luxury can come in the shape of a bottle! One might say that such appreciation binds together East and West, which surely is another point to celebrate… I

World’s biggest wine competition open to the public ||| Between 23 and 27 April, international wine experts tasted 14,000 different wines over five days during the judging of The Decanter World Wine Awards, the world’s biggest wine competition. All in all, 11,500 corks were pulled, 17,000 bottles opened and 32,500 wine glasses used!

Held in London, the DWWA broke another record, too, by opening its doors to the public for the first time. On 27 June 2012, wine enthusiasts will get the chance to taste award-winning wines at the Blue Fin Building in London. Tickets will be priced from £20 per person and will be available to purchase from www.decanter. I

Cheese of the month by La Cave à Fromage: Brillat-Savarin aux Truffes “If only cheese could be transformed into a diamond, wouldn’t it taste like this?”

© flcikr/fred v

||| I keep asking a simple question: what is luxury? Is it based on price, selfishness or scarcity, or is it simply about sharing genuine emotions with very special people?

Cheese cannot possibly be a luxury, you may say, as it is purely made of milk, one of the most basic, natural, ancient, inexpensive and universally produced of foodstuffs. However, if you think that cheese is “just cheese”, wait until you relish a slither of Brillat Truffe.

Immediately you experience its extremely smooth texture, oozing with sensual creaminess; and at its heart lies a thin layer of black Brillat-Savarin aux Truffes truffle, which takes your brain and heart off on a spinning tango.

To sample this soft, white-crusted variety, produced in Normandy and named after the 18th century French gourmet, Jean Anthelme Brillat-Savarin, leads inevitably to another simple question… If only cheese could be transformed into a diamond, wouldn’t it taste like this? I

Ideal wine with a Brillat-Savarin aux Truffes

by Wine Story © flcikr/vitamindave (David Huang)

||| A great cheese created by a great cheese-monger, Brillat-Savarin aux Truffes, as its name implies, carries the aroma of that most exquisite of mushrooms: the truffle. So we need a serious wine to match this luxurious treat, brought to us by Henri Androuët. To find the ideal match, head to the right bank of Bordeaux, and then venture further to the lovely hilly area along the Dordogne and l’Isle rivers, west of St Emilion and north of Libourne.

Merlot on the vine There you will find Canon-Fronsac, a well-aged wine which until the 19th century was one of the most popular in the region. Merlot, the most prevalent grape, gives body and richness to the wine. The Cabernet Franc grapes and the ageing process also bring some woody, peppery and mushroom scents which complement the truffle’s strong perfume perfectly. My favourite Canon-Fronsac is the beautiful Chateau du Gaby made by Damien Landouar, who is one of the most promising wine-makers in Bordeaux. I

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Š photo credits: VINCI and subsidiaries photo libraries, BAA photo library.

xxxxxxxxxxxxxxxxxxxxx

CONSTruCTING A SuSTAINABle fuTure At VINCI Construction Grands Projets, we engineer solutions that are not only financially competitive, but work sustainably for the planet. Superior design and construction practises are helping us save 20,000 tonnes of CO2 emissions in two years. On the Hallandsas TBM project in Sweden, all the discharged water from the construction sites is monitored continuously quality and quantity wise before sent back to the natural environment. Also on this project, every chemical product used has been through a complete eco-toxicological evaluation regarding its impact on human health and environment before being approved.

Just one way in which VINCI Construction Grands Projets demonstrates sustainability leadership.

To learn more please visit www.vinci-construction-projects.com/british-isles

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News @ the Chamber T

here can be no doubting the energy of the Chamber’s Forums and Clubs. Anyone who attended the recent launch of the Finance Forum will have been impressed by the quality of the debate, by the experience of the attendees and by the seriousness of the speakers. These groups offer opportunities for networking, and much more besides. Members get to genuinely think about their daily issues and challenges, absorb information from colleagues, and gain access to wise speakers.

Let us take for example, Philippa Foster Back OBE, the Director of the Institute of Business Ethics and JeanMichel Grand, Executive Director of Action against Hunger. Both speakers impressed guests at our CSR Forum with their grasp of their subject, the nexus of corporate social responsibility and sport. Ms Foster Back is an authority on business ethics and Mr Grand the head of a worldfamous charity. Both speakers made themselves available to members, thereby spreading knowledge and encouraging the creation of new links.

Meanwhile the Chamber can look back with satisfaction at other well attended events. On 27 March the SME Club hosted a highly stimulating morning symposium that addressed the pivotal topic, “Winning overseas: boosting business export performance”.

The guest speakers were Elizabeth Fells of CBI and Xavier Denecker of Coface UK & Ireland, both of whom were more than willing to engage

with problem areas raised by Club members.

Then on 24 April, Laurent Grossi, UK head of HR at Exane BNP Paribas outlined a five-point path towards creating transformation in the workplace at the HR Forum. He drew on the case studies involving individual leadership and the companies, Apple, Tsingtao and Pret A Manger.

A delegation led by the French Ambassador learned of other case studies firsthand, thanks to a most informative and pleasant trade delegation to Leeds on 8 March.

Those interested solely in the capital and its ever-changing property scene, enjoyed a London Property Seminar on 29 March, courtesy of Knight Frank and Gregory Rowcliffe Milners.

Moreover, as the festive spirit mounts in Britain – aided by the advent of the Queen’s Diamond Jubilee followed by the Games – the Chamber enjoyed a number of lighter hearted events. One was the 4 April Member to Member Exhibition, which attracted no less than 250 participants. Then a special Patron Event on 8 May was held at Ladurée’s Covent Garden, to celebrate their 150th anniversary.

All these stories are covered in the following pages. The Chamber now looks forward to its summer activities, such as our visit to Waddesdon Manor, courtesy of Lord Rothschild, on July 6 and of course the Summer Cocktail party on July 11. I

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new members 19 new Active members: Aigre-Doux Linen Creator

Edap TMS

Leader in Therapeutic Ultrasound

Novel Logics Education

Represented by Pierre-Brice Ducuing, UK Representative www.aigre-doux-bjc.com

Represented by Pierre Reboul, Director B.U. France www.edap-tms.com

Represented by Bernard Hot, Managing Director www.novellogicsuk.com

APM

F&L Legal LLP

Provisita Ltd.

Training

International Lawyers

Represented by Stéphane André, CEO www.apm.fr

Represented by Camille Le Breton, Lawyer www.fitzgeraldandlaw.com

Auris

G.L.A.C.I.A Ltd.

Industry of Therapy products

Represented by Claude Boursse, President www.aurismagnetic.com

Conscio Technologies Software

Represented by Alexandre Gras, UK Business Development Manager www.conscio-technologies.com

Cristal Credit Europe Economic Intelligence

Represented by Kevin Alili-Rivaton, Director

DR Communication Communication

Represented by Ambroise Salaun, UK Country Manager www.drcommunication.fr

Estate Student Real Estate

Represented by Hedi Zidan, Director www.estatestudent.com

Global Logistics and Corporate Infrastructure Advisors

Represented by David Franks, Managing Director www.glacia.net

Industry of Machine to Machine devices manufacturer

Biscuits

Represented by Kevin Ngirimcuti, UK Country Manager www.hlevent.com

Represented by Alain Téot, UK Director www.stmichel.fr

Lise Charmel

Valeurs Assurances

Lingerie

Represented by Kathleen Morgan, UK Sales Manager www.lisecharmel.com

Represented by Antoine Rivière, Sales Director www.neteven.com

RTone

Saint Michel

Sport & Event

E-commerce Software

Represented by Patrick S. Frédérick, Chairman www.provisita.com

Represented by Lucile Michaut, UK Sales Manager www.rtone.fr

HL Event

Neteven

Expatriate Services

Consulting

Represented by Bertrand Thorel, Managing Director www.valeurs-assurances.com

Yuseo

Customer Survey and Advisory in Digital Media

Represented by Julie Mallet, Project Manager www.yuseo.com

INFO Magazine: next issue focuses on SMEs and Entrepreneurs ||| The next Focus has as its topic SMEs and entrepreneurs, an often overlooked sector even though they constitute 99 percent of all businesses in the UK. Lacking the access to funds of blue chip companies, or the economies of scale of larger enterprises, SMEs have felt the full brunt of economic woes. For all that, SMEs remain resilient and constitute essential pillars of local communities.

Last year they employed some 13.8 million people in Britain and accounted for nearly 60 percent of private sector employment. Plus it is worth remembering that

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M&S began as market traders, LV started as humble trunk-makers, and Thomas Edison was teased as a dreamer before his brilliant idea turned him into an entrepreneur! In fact, SMEs are a pinion of what the Chamber is all about. In our issue we will look deeper at the challenges SMEs face, their successes in winning export markets, and the role that institutions like the Chamber can play in helping them along the path to success. Above all, we will give voice to the SMEs themselves, who are valued members of the AngloFrench business community. I

@

the chamber

The Chamber welcomes: Steven Burgin heads Alstom UK as its country president since 2008 and has over 30 years experience in the engineering industry.

Stephen started has an apprentice with GEC back in 1975, working in the electricity transmission and distribution industry for most of his career. Working across a wide range of disciplines and management roles becoming the Commercial Director of GEC Alsthom T&D Distribution Switchgear in 1993. Stephen moved to ABB in 1996 as General Manager ABB Power T&D Ltd managing ABB’s High Voltage business in the UK before moving to ABB Headquarters in Zurich as Business Unit Manager, responsible for T&D projects and renewable energy worldwide. Stephen graduated from the University of Staffordshire with as SC Honours degree in Electrical Engineering.

Patrick Gougeon is Director of the ESCP Europe London Campus. In the course of his career with the school he has occupied several positions in France and abroad. In Asia he was the Director of the School of Management at the Asian Institute of Technology (AIT, Bangkok, Thailand); in Paris he was the Director of MBA programmes. Professor Gougeon has also contributed to the development of various international programmes, such as recently the MEBF (Master in Economics of Banking and Finance, Hanoi & Ho Chi Minh (Vietnam), an ESCP Europe/Paris Dauphine joint programme; he holds the position of academic co-director.

2 new members of staff: Sabrina Mimid Business Development Manager ||| After 10 years in the UK, where she spent some time at the North East regional development agency, Sabrina joined the International Trade team of the ChampagneArdenne Chamber of Commerce where she was advising French SMEs looking to export to the UK. Sabrina has a BSc in International Trade and ICT as well as a MSc in Business and Multimedia. Sabrina has an excellent knowledge of French and British markets, local key players, Chambers of Commerce and SMEs.

Christophe Castiglioni Sales and Marketing Executive ||| Christophe has recently joined our team and he is in charge of the sales and marketing for the Chamber’s publications. Since graduating from Paris La Sorbonne in 2009 in international business, he has been working as an international sales and editorial coordinator and has produced country reports on behalf of Forbes magazine.

Renewable Energies Trade Mission:

© flcikr/chaunceydavis818

2 new advisory Councellors:

Faced with the increasingly leading role of Renewable Energies in the British economy, the CCFGB has decided to partner up with Ubifrance Ireland and the French Chamber of Commerce in Ireland to organise a trade mission for French SMEs willing to develop their business on this side of the Channel in marine, wind, solar and biomass energies. The first phase of the mission will take place in Ireland and will allow businesses to participate to ICOE’s 4th international conference on ocean energy. The second phase will take SMEs to London for presentations, individual meetings and networking with Energy key players (EDF energy, Areva, Alstom, GDF Suez, SPIE…etc.), contractors (Technip, Atkins), British clusters (South West Marine Energy Park) and public bodies (UKTI Energy, Renewable UK, Scottish Development International, Cornwall/South West Development… etc.). Oct 16th to 18th 2012. For more information, please contact our Business Support Team: commercial@ccfgb.co.uk Tel : 00 44 (0)207 092 6626

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Patron visit to Leeds: An eye-opener into the North’s commercial hub Leeds has been a magnet for massive investment. Only now is business becoming aware of the scale of its achievement in building a financial, legal and retail centre of importance

||| The visit of Chamber Patron members to Leeds on 8 March was one of the highlights of the recent calendar.

Delegates included such senior figures as the French Ambassador to the UK, HE Mr. Bernard Emié, the Chamber’s President Arnaud Vaissié and Deputy President Peter Alfandary, Richard Brown, Chairman of Eurostar and Olivier Cavalière, CEO of Oltec among others. This trade delegation was sponsored by Veolia Environmental Services and the programme was put together by Leeds city council, enabling Chamber members to get excellent insights into the facilities of Leeds.

The delegation quickly got a sense of the City’s great breadth of services and manufacturing capabilities.

Leeds is the third largest city in the country and it is particularly strong in financial services, manufacturing, biotechnology and the legal and creative sectors. Indeed the chief executive of Leeds City Council, Tom Riordan, outlined his city’s business and financial opportunities, and reminded patrons that Leeds was the largest legal centre outside London.

Over the past decade £4.3bn has been invested in Leeds property; buildings worth £638m are currently under construction, with plans for £5.9bn to be spent in the future. A plethora of shopping centres and malls has transformed this industrial centre into a consumer and business hub for the north of England, said Mr Riordan.

Next John Parkin of the Leeds City Region Local Enterprise Partnership and Leeds Bradford International Airport outlined the scale of the city’s amenities and transport network. The head of the city council, Keith Wakefield, then told the delegation about the Leeds 2015 project and its aim to be ‘the best city in the UK’ with an open economy that is ‘prosperous and sustainable’ for all its communities. ‘The vision is ambitious… our consultation exercise highlighted that people care about community and society as much as infrastructure and buildings. … We aim to achieve a 21st century transport system… a more cohesive city with stronger communities.’

There followed visits to the Leeds Arena, a remarkable 13,500 capacity entertainment venue, the UK’s first fanshaped structure, and one of the most striking such designs in Europe. The Arena will host music concerts, comedy and ice dance shows and family events. The next port of call was the University of Leeds, a large campus by British standards, explained Ian Kirkpatrick, the professor of work and organisation. It boasts 33,000 students, houses a valuable research and IP catalogue, and ranks within the world’s top 1501 universities.

We moved from there to Trinity Leeds, a £350m retail city centre project that should open in Spring 2013. The developers, Land Securities, explained that many brand names had already bought into the scheme.

The visit ended with a reception at the historic Collectors Cabinet Gallery at the City Museum, hosted by the Lord Mayor of Leeds. Leeds is twinned with Lille, and the Mayor made a moving presentation to representatives who were present from the Ville and the Rectorat of Lille, as well as head teachers from local schools. It was an aptly fitting conclusion to the trip.

Members left with a lot more knowledge about a vibrant local community that engages in extraordinary ways with the world beyond its immediate area. And there was food for thought for those considering investments outside of the London metropolitan hub. I LRJ

French Ambassador to the UK Bernard Emie and members of the delegation

1 www.guardian.co.uk/news/datablog/2011/oct/06/top-200-universitiesworld-times-higher-education

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Quarrying for gold in London Despite the chill economic winds, London offers investment opportunities aplenty in good old brick and mortar. So suggested expert speakers at a fascinating Chamber seminar on property…

||| Ever since the downturn of 2008, doom-mongers have warned of an imminent collapse in the property market. Not only have their predictions not materialised, property in London seems to be bearing up well; and in certain quarters, even thriving.

Is this due to an influx of well-heeled foreigners?

Perhaps a shift by investors from fragile stocks and shares to trusty fixed assets, like residences and office blocks, explains the phenomenon. Or is the sheer scarcity of buildings keeping prices buoyant, when so many thought they would fall?

At a recent Chamber breakfast seminar entitled “London Property - The New Gold Rush?” four speakers described recent trends, prescribed courses of action, and advised on ways of avoiding pitfalls. The meeting was held on 29 March at the Baker Street offices of the estate agents, Knight Frank, and sponsored by that firm along with the solicitors, Gregory Rowcliffe Milners.

Peter Alfandary, Deputy President of the French Chamber of Commerce, introduced the first speaker, Liam Bailey, Head of Residential Research, Knight Frank LLP. Liam outlined how global wealth flows have profoundly affected the health of central London residential property. He brought to bear on this subject his interest and experience of prime market performance and development economics, both in the UK and abroad.

Next to the podium was Caroline Ko, a solicitor at GRM, who honed in on how to avoid pitfalls when buying freehold and leasehold properties in England and Wales. She showed her expertise in dealing with both commercial and residential areas, and demonstrated the fruits of her eight years experience in the selling and buying of properties in London. Legal tangles are ever-present, but can be overcome, she advised.

Caroline often acts for international clients seeking UK property, both for themselves or for investment.

Olivia Cooper, also from Gregory Rowcliffe Milners, then picked up the theme of the tax considerations of buying a property in the UK. A member of STEP

Peter Alfandary with guest speakers

(The Society of Trust and Estate Practitioners) and The Private Client Section of the Law Society, Olivia is active in both the French and Italian teams at GRM, and advises both corporate and private clients.

Lastly James Pace, Head of Chelsea & South Kensington Sales, Knight Frank LLP, gave what he called “an inside view of buying and selling in London”.

A veteran of 15 years working as an agent in this area, James opened Knight Frank’s Chelsea office on King’s Road in February 2007. Since then the branch has steadily increased its market share year on year.

A lively question and answer session followed the formal presentations. The audience consisted of nearly 60 guests, who hailed from such diverse backgrounds as tax lawyers, architects, professors of finance, hoteliers, political consultants and investment fund directors.

The meeting concluded with thanks from Peter Alfandary, who mentioned two previous, similarly successful seminars – one on privacy, sponsored by McGuireWoods, and the other on financial reform, sponsored by HSBC Bank. Needless to say, the event was not fully complete without the comingling of friends old and new, and much fruitful networking. By all accounts guests went away with much more information about how property represents a beacon of prosperity amidst current economic uncertainties. I LRJ

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Successful networking for the 13th Member to Member cocktail the Member to Member cocktail, held at the Royal Garden Hotel, was a true success with more than 250 attendees and 20 exhibitors ||| This cocktail/exhibition was undoubtedly a real triumph. The 250 attendees started their evening with the remittance of a remote control, supplied by Powervote, for them to be able to vote during the quiz presented by Peter Alfandary, Deputy President of the Chamber, later on in the evening. Peter thanked all members for their presence, and all exhibitors and prize providers for their generous support. Superb prizes were to be won that night by whoever got the most correct answers, such as spending two nights at the Landmark Hotel, or winning City jet’s flight tickets, a Luxor Champagne bottle or a spa treatment at the St Pancras Renaissance Hotel.

While walking through the stalls, guests had the opportunity to find out answers to the quiz, and above all taking time to discover the many products and services the exhibitors participating in the event had on offer.

Amongst the firms who participated were AGS, Citroën, Peugeot, l’Atelier des Chefs, Annick Goutal, Fauchon, Business Solutions Disneyland® Paris, Delahaye Moving, Fondation Belem, Artelia, BMM Connection, Bourner Bullock, La Cave à Fromage, MIC Hotel & Conference Centre, Capemoor Investments Ltd, Moving Home Company, Centre d’Echanges Internationaux, Centre Charles Péguy, Voulez-vous parler, Web Consulting Team, Coles Trading Limited, Wine Story Ltd. The event also marked the perfect the occasion for the Chamber to launch and distribute its M2M offers booklet. The publication contains offers and discounts on their products or services from members to fellow members; it actually gathers more than 80 offers which are valid all year long. This booklet is also accessible online to anyone who wants further information.

Finally, this particularly successful networking initiative was acknowledged by all as an occasion which allowed each attendee to develop his own network in a very convivial environment. Everyone agrees, the forthcoming 2013 “Member to Member Cocktail and Exhibition” will be well worth attending! The event was broadcasted by our media partner French Radio London I LRJ

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Mountains of macarons to mark Ladurée’s 150th Location, reputation, salivation and celebration – all four blended together as the Chamber partnered with Ladurée to celebrate 150 years in business, at its branch in Covent Garden ||| After a century and a half in the confectionary business you can be pretty sure that Ladurée knows the recipe for success. The renowned Parisian brand teamed up with the Chamber to hold a patron event on 8 May, as part of their 150th anniversary celebrations. More than 60 Patrons attended this most enjoyable evening.

For three hours guests gathered on the heated indoor/outdoor terrace of Ladurée Covent Garden, mingling, networking and enjoying the excellent views of the plaza. Following a canapés and rosé champagne reception in the first floor restaurant, they also heard a brief speech to mark the occasion from Olivier Voarick, Global Director of Operations for Ladurée since 2007.

The first Ladurée bakery opened in 1862, at 16 rue Royale, Paris. Then nine years later, the Garnier Opera was built in Paris’ nearby Madeleine district, which helped draw in a wealthier and more cultured clientele, inspired the outlet’s grandiose paintings of cherubs, and put the patisserie on the French culinary map. Evidently the firm’s founder, Louis Ernest Ladurée, a miller from southwest France, benefited from the wisdom of his wife, who suggested that he fuse the idea of a Parisian cafe with a pastry shop. The resultant salon de thé ideally suited the liberated women of the fin de siècle.

A prestigious new Ladurée part-tearoom, partrestaurant, opened in the Champs-Elysées in 1997, under the aegis of the Holder Group, which has sought to blend respect for tradition with a touch of the new.

Now Ladurée branches exist in Geneva, Milan, Brussels, Monte Carlo, Dublin and Tokyo. A new one opens in New York this July; while its exquisite macarons are reproduced in Istanbul, Dubai and Beirut.

Turning his attention to this side of the Channel, Mr Voarick, who was introduced by Peter Alfandary, Deputy President of the CCFGB, described the latest of Ladurée’s four branches in London, Cornhill which opened last December in the City. Unusually, this particular outlet also offers an extensive range of Ladurée beauty products, besides the company’s regular patisseries, hampers,

chocolate gift boxes... and of course the macarons which Ladurée says it invented in the 19th century. The patisserie’s first London branch was in Harrods in 2005; the second settled in Piccadilly’s Burlington Arcade, in 2007; then the Covent Garden branch opened its doors in June 2011, just six months before Cornhill.

Like its West End sister, Cornhill also includes a terrace and is available for many types of corporate and private functions. Ladurée, who also cater for private and corporate functions, believe that this venture into the City should increase the company’s visibility in Britain. I LRJ

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f o rt h co m i n g e v e n t s

30th May 2012: Ligne Roset - Exclusive Private Sale 18.30 – 20.30 at Ligne Roset’s Westend showroom £40 + vat - £60 + VAT for 2 people Guests will receive a fantastic 25% discount on all purchases of Ligne Roset furniture and accessories sectors giving you the opportunity to make new business ||| Indulge in champagne and canapés, whilst you browse the latest indoor/outdoor collection along connections and business leads in a relaxed environment. with other new designs and the existing range, and The ticket price of £40+VAT will be redeemable at the event on orders of Ligne Roset products above £1,000. network with up to 50 guests from a variety of industry

20th June 2012: HSBC Economic Seminar Theme: “Which perspectives for Europe? Economic and Forex considerations” 18.30 – 21.00 at HSBC St James’s Offices £40 + vat - £60 + VAT for 2 people Guests speakers: Janet Henry, HSBC Chief European Economist

David Bloom, Global Head of Foreign Exchange Strategy for HSBC About HSBC ||| HSBC Bank plc is a principal member of the HSBC group, one of the largest banking and financial services organisations in the world, headquartered in London with listings on the London, HK, NYC, Paris and Bermuda stock exchanges. HSBC’s international network comprises over 10,000 offices in 83 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. HSBC France helps companies of all sizes to develop through its global service. We have customers in all industries and all regions of France.

Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial

BENEFITS OF JOINING THIS SEMINAR ||| Europe and the Eurozone have been a hotly debated topic in the news for the past few months. The recent elections in France have reminded us how important politics has been and remains for markets, as well as rating agencies. Economies’ GDP and currencies have also, among other indicators, suffered from increased volatility, which is not always easy to understand.

This event aims at giving you the tools to understand the fundamentals at stake, and share with you our analysis for the months to come.

David Bloom

Janet Henry

||| David is the Global Head of Foreign Exchange Strategy for HSBC. He has been with the Group since 1992. Before taking up his current post, specialising in currencies and market strategies, David was the US economist for the Bank. He also has work experience within equity markets and analysing the UK economy.

||| Janet was appointed as HSBC’s Chief European Economist in April 2007. She joined HSBC in 1996 in Hong Kong where she worked as an Asian Economist in the run-up to, and aftermath of, the Asian crisis before moving back to London in 1999 where she was a Global Economist for eight years.

Janet’s career began at the Economist Intelligence Unit where she worked as an Asian economist for over four years in London and Hong Kong after graduating with an Economics degree from University College London.

banking; corporate, investment banking and markets; private banking and wealth management and other activities.

For sponsorship opportunities and bookings, contact Cécilia Gonzalez, Head of PR & Events: 0207 092 6641 / cgonzalez@ccfgb.co.uk

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5th July 2012: CEO Breakfast 08.00 - 10.00 at the Andaz Hotel Guest Speaker: Carolyn McCall OBE, Chief Executive of easyjet ÂŁ40 + vat About Carolyn Mccall ||| Carolyn joined easyJet on 1 July 2010 as Chief Executive. Prior to this, she was the Chief Executive of Guardian Media Group plc. Carolyn was a Non Executive Director of Lloyds TSB from 2008 to 2009, Non Executive Director of Tesco Plc from 2005 to 2008 and Non Executive Director of New Look from 1999 to 2005. She was Chair of Opportunity Now

and a former President of Women in Advertising and Communications London (WACL).

Carolyn was awarded the OBE for services to women in business in June 2008. In April 2008, she was named Veuve Clicquot Business Woman of the Year. She graduated from Kent University with a BA in History and Politics and from London University with a Masters in Politics.

6th July 2012: Summer Patron Event at Waddesdon Manor 15.00 - 22.30 - FREE - Patron Members only ||| Lord Rothschild and the French Chamber are pleased to invite Patron members and their spouse/partner to an exclusive Event at Waddesdon Manor – part of the National Trust. The event will feature an exclusive access tour of the Collection including Chardin and Edmund de Waal exhibitions, a grand vin tasting in the

wine cellars, a garden tour including Christies sculpture exhibition, a champagne reception and a seated dinner hosted by Lord Rothschild.

We would like to thank our partner on this occasion, Renault UK which will generously provide us with amazing cars and chauffeurs to get there.

“ In short, the MEB made me think internationally �

A. Thomas, MEB 2009 Junior Consultant M&C Saatchi Corporate

www.escpeurope.eu/meb

MASTER IN EUROPEAN BUSINESS (MEB) t %FTJHOFE GPS graduates BOE young professionals with a non-business degree F H -BX -JUFSBUVSF &OHJOFFSJOH -BOHVBHFT FUD

t 1 year in intensive management FEVDBUJPO t 2 countries PG ZPVS DIPJDF 1BSJT -POEPO #FSMJO .BESJE 5PSJOP .POUFSSFZ /FX %FMIJ BOE #BOHLPL t 2 company projects BOE 3-month NJOJNVN company internship PS EJSFDU FNQMPZNFOU t 36 nationalities SFQSFTFOUFE $MBTT PG

t Many tracks PGGFSFE JO &OHMJTI PS MPDBM MBOHVBHFT Since 1819 ESCP Europe has educated generations of leaders. With 5 campuses in Europe (Paris, London, Berlin, Madrid and Torino) and 100 international partner universities, ESCP Europe represents more than 35,000 alumni working in key positions in over 100 countries.

&4$1 &6301& .&# "%.*44*0/4 /08 01&/ EFMD

CONTACTS

Paris: MaĂŤ d’Alexis â?˜ mdalexis@escpeurope.eu London: Varja Jakovleva â?˜ vjakovleva@escpeurope.eu

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Eyes on exports – a synoptic view from the SME club You go into foreign markets with your eyes open, or can face some unpleasant consequences, warned speakers to a recent SME & Entrepreneurs Club event

© wikipedia/Marek69

||| Participants at the SME & Entrepreneurs Club symposium recently held at the French Chamber, were treated to a double-lensed view of the question “Winning overseas: boosting business export performance”.

After two hours of talk, discussion, debate and visual displays, most agreed that they could see much clearer than before. The meeting was chaired

by Frédéric Larquetoux, senior manager, Financial Accounting Advisory Services at Ernst & Young, and focused on the macro lens view of exporting. The group’s co-chair, Nathalie Zimmermann, Director and Founder of NZ Consulting shared the chairing role.

Elizabeth Fells, Head of International Strategy at the CBI, convincingly demonstrated how so many UK companies were failing to achieve their full potential. This seemed all the more regrettable given the traditional value of the UK trading spirit. Why, for instance, was only one in five UK SMEs involved in overseas trade, compared to an EU average of one in four?

The reasons, she explained, were certainly not the firms’ fault alone. UK firms often struggle to land export finance and loans; banks should think more laterally and embrace entrepreneurship,

British exports are underperforming when compared to neighbouring economies

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notwithstanding understandable current restraints.

And as the balance of power shifts from West to East, more trade is done away from the already developed markets. Yet even within this general pattern, Britain is underperforming compared to neighbouring economies. Germany’s share of global trade increased to 9.3 percent while during 2000-10 Britain’s fell from 5.3 to 4.1 percent; and only 4 percent of British exports go to BRICS countries, compared to 11 percent for Germany.

In order to “explore growth opportunities of UK based companies”, firms should also consider changing old habits. These customs may have served them well in the past in different trading environments, but have less traction in the emerging markets.

Elizabeth said potential exporters should look over the horizon at the post-BRICS generation, South Africa, Vietnam, Indonesia and Mexico. She also stressed the value of partnerships and networks: Chambers of Commerce, trade associations, the government, the CBI or foreign equivalents, and especially with other firms.

Xavier Denecker, Managing Director of Coface UK & Ireland, cast a more micro view over affairs. His speech detailed the essential do’s and don’ts that any firm considering trading abroad should consider: including getting paid, keeping things simple, doing your background regional homework, being legally compliant, choosing the law you feel comfortable with, getting insurance, and, if possible, avoiding court!

While praising the support of TCI and other UK governmental initiatives, he said much more could be done. Other concerns include how to manage risk and obtain necessary advice. Xavier suggested opting for credit insurance only if you are involved in B2B. That said, such insurance could be effective especially if brokers consulted their exhaustively detailed databases, and priced risk according to the latest country-specific statistics. I LRJ

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Five lessons in change Drawing on examples from three continents, Laurent Grossi, UK Head of HR at Exane BNP Paribas, shared his views, as part of the HR Forum, on what it takes to be a “transformational leader” ||| Not all business leaders are equal. Indeed only a few “people managers” count as transformational leaders, or visionaries who inspire, change the world around them, and deliver significant business results. The HR Forum session held on 24 April, was titled “War for Talent”, and judging by the engaging discussion that took place, the presentation certainly got guests sharpening their weapons!

Four leaders, three challenges Beyond discussing some talent management techniques, Grossi highlighted how “transformational leaders” achieved success in case studies involving three companies, Apple in the USA, Tsingtao Brewery in China, and Pret A Manger in the UK. Steve Jobs, for instance, inherited a nearly bankrupt Apple in 1997 and transformed it into the world’s most valued company. In China, Jin Zhiguo transitioned in the 1990s the poorly run state-owned Tsingtao into a dominant international brewery. Lastly, Sinclair Beecham and Julian Metcalfe created Pret from nothing in 1986; since then the sandwich chain has turned the British fast food market upside down.

So what did these leaders have in common, and what lessons might business leaders and HR managers learn from their example?

1: Focus The first lesson was focusing on what makes your company special. Apple concentrated on every aspect of operations, including product development and customer experience; Tsingtao improved its people management, and honed in on just a few products and regional destinations; while Pret highlighted product freshness, teamwork and outstanding customer service.

2: Get the Best Talent Next, one should always harvest talent. Apple hires Aclass candidates and then stretches them with testing assignments. Zhiguo revived Tsingtao by setting up an HR function that since 2002 has actively recruited and

matched people to appropriate jobs. Meanwhile, Pret concentrates on strong people development to create the desired company culture. In all three cases the companies would release employees if their skills or attitude did not match what was required.

3: Performance Manage Performance and delivery, not just efforts, is paramount. Apple focused on product and delivering results and is famously demanding on its staff.

Managers encouraged workers at Tsingtao to shift the culture and transform their firm into a customerfocused, competitive company. Regular appraisals and feedback keep Pret staff on their toes.

4: Inspire and Shift the Mindset Jobs, Zhiguo, Beecham and Metcalfe could all inspire people and open them up to fresh possibilities. Pret a Manger has staff deliver quality, healthy products quickly and cheerfully; Tsingtao now keeps the customers in mind; while Apple managers forbid employees to even utter the phrase, “This is not possible”.

5: Engage with Employees Lastly, managers need to keep work exciting for their staff and team members. Every four months employees at Pret A Manger meet their manager to discuss performance and build an open rapport; and in all three companies, line managers and business leaders endeavour to act as role models.

Grossi recommended as further reading the article

by Walter Isaacson “The Real Leadership Lessons of Steve Jobs” published in the April 2012 edition of the Harvard Business Review. Rose Gledhill, Northern Europe HR Director for International SOS, chaired the meeting, and the enthusiastic audience response proved that the Forum represents a trusted platform where all can share opinions and experiences freely.

The Forum hopes to repeat this success on 19 June, when the topic is “fairness”. I Laurent Grossi/LRJ

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Sport and CSR: a winning team When a company and a charitable organisation form a partnership to lay on a sporting event,

||| A company’s use of sport to express and enact its policy towards CSR was the topic of the Chamber’s CSR Forum, held on 26 April and attended by some 30 members as well as Serge Betsen, international rugby player and founder of the Serge Betsen Academy. The meeting was addressed by Philippa Foster Back OBE, the Director of the Institute of Business Ethics and Jean-Michel Grand, Executive Director of Action against Hunger.

Ms Foster Back began by introducing the Institute of Business Ethics, a charitable organisation which in the course of its work has recently developed a Charter Mark with a financial services professional body, CISI, for companies which not only (in the words of Ms Foster Back) ‘do ethical things’ but also ‘do business ethically’.

The goal for a company subscribing to the CSR philosophy is that of winning trust, among customers, employees and stakeholders. She says ‘this is obtained by being open and by living up to expectations.’

Sport organisations ensure their rules and ethical standards are observed, by requiring members to sign up to written codes of conduct, she says. However, Ms Foster Back said that the critical point here is the extent to which the organisations back up their codes with staff training and education. ‘The code is not sufficient.

Companies realise they need to do something more.’

She stressed the importance of decision-making models, led by example from the top of the organisation, to ensure the sports body creates a consistent and ethical environment. ‘That builds trust’, she says. ‘But it requires leadership, and a strong ethical message.’ The strong and ethical team has four components for Ms Foster Back.

They are clarity of purpose, teamwork, passion and “delivery to the maximum”. The key for the manager of an ethical organisation is to ensure that ‘everybody is doing the right things when no one is watching’.

Jean-Michel Grand, executive director of the Action Against Hunger | ACF -UK explained how charities sought to engage companies in their charitable events, such as the ACF 10K corporate challenge they organise each September in London. He observed that company decisions to support a charity or charitable event are no longer made by the chief executive, but by the

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© flickr/Peter Dean (Peter J Dean)

the result can have positive results for managers, employees and other stakeholders

Serge Betsen, international rugby player and founder of the Serge Betsen Academy

employees, who vote to pick their ‘charity of the year.’

AAH puts considerable resources into promoting itself to employees in the hope of selection.

The value to a company of involvement in supporting a sporting event is diverse, he says. ‘People work better as a team and it breaks down barriers of hierarchy.

Companies are also able to express their CSR objectives through this engagement. Companies are able to take clients to see sporting events. Finally, they enthuse employees who become ambassadors for the company.’

Some lively questioning followed the two addresses, where participants shared views about the challenges of involvement in sporting sponsorship. Discussion revolved around the company’s challenge in making the most of its sporting sponsorship, while those engaged in soliciting the support of companies shared their problem in finding the right form of relationship and the right point of contact. The meeting was closed by joint chairman Christophe Gasc, who said this meeting was the first of a series for the CSR Forum on the theme of sport and CSR. I NK

forums recent finance

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New Finance Forum targets key questions The Chamber’s Finance Forum certainly hit the ground running at its inaugural meeting on 3 May. Guest speakers from HSBC and ESCP addressed access to funding, deleveraging, credit control, and the risks and costs of the bank regulation avalanche ||| The financial system has been turned upside down with potentially significant implications for the way corporate treasurers access funding, manage liquidity and hedge commercial risks in their business. This was the observation of one of the leading speakers at the Chamber’s newly launched Financial Forum. The inaugural session was held on 3 May and was attended by many senior representatives of financial institutions, regulators and academic experts. It was addressed by Forum Co-chairman, John Peachey, Managing Director, Financial Solutions Group, HSBC Global Banking and Markets who spoke to the theme, ‘The unintended consequences of bank regulation on the corporate market.’ Mr Peachey was followed by Co-chairman, Patrick Gougeon, UK Director of ESCP Europe.

The Forum heard about five key factors impacting on the outlook for the regulatory system. Each of these is only now being built and tested. The risk of one failing enhances concern about the system’s total viability.

The first pillar is focused on the Long-term Refinancing Operation of the European Central Bank.

This is a structure for covering the risks of investors in sovereign debt, so supporting the bonds of countries receiving support from the troika of financial institutions bailing out EU countries.

The launch of new regulatory requirements will be a catalyst for banks to set up capital instruments, based round liability management, debt conversion into equity and the issuance of hybrids Basel 3 compliant debt instruments.

Deleveraging is a critical feature for banks, seeking to respond to Basel 3 capital ratio requirements. However, the long term refinancing operation (LTRO) and the uncertainty surrounding the outcome of the European Banking Authority’s forthcoming capital assessment have slowed down the pace of deleveraging.

Bank ratings are centre stage as the market awaits an across-the-board review by Moody’s. This follows

a re-rating of the sector by Standard & Poor’s. The implications of a de-rating of banks for capital market investors and bank counterparties remain a concern.

A welter of new regulations adds to the uncertainty surrounding banks’ regulatory posture. These include Basel 3, SIFIs (Systemically Important Financial Institutions), EBA capital requirements, ICB (Independent Commission of Banking) Recovery and Resolution Plans, Mifid 2 and Solvency 2 (for the Insurance sector.)

The deleveraging process was explained by Patrick Gougeon, who said that European banks may see a cut of $2.6 trillion in their balance sheets, citing the International Monetary Fund’s Global Financial Stability Report. Professor Gougeon further said that, ‘European bank deleveraging will affect the supply of credit and the Eurozone GDP.’ He produced figures showing that the weaker the deleveraging policies pursued by banks, the greater will be the impact on GDP. The impact on world trade of deleveraging will also be significant, with credit conditions tightening, and greater risk entering the system. The retreat of global banks to home markets in some sectors presents another indicator of a sector responding to global uncertainty.

Professor Gougeon referred to the fact that European banks, in particular French lenders, had quit the Australian syndicated loan market for local companies, leaving a $35 billion funding gap. A $59 billion funding gap has also opened up in the financing of SMEs, by 2016.

This has implications for wider economic growth. The meeting closed with a discussion of the limited capacity of shadow banking in the growing disintermediation of the banking industry.

Professor Gougeon mentioned that students from the ESCP are engaged on research, based on the Forum’s discussions and conclusions. This is particularly geared to the impact of the current credit contraction on SMEs and the next session of the Finance Forum will focus on mid-caps and corporate financing. I NK

info - may / june 2012 - 79

f o rt h co m i n g f o ru m s a n d c lu b s

Cross Cultural Relations Forum 2nd Evening Debate 12 June 6.00 - 8.30pm, at the French Ambassador’s residence Chaired by Peter Alfandary, Deputy President of the French Chamber of Commerce.

Guest speakers: Lady Sylvia Jay CBE, Chairman of L’Oréal UK Ltd, and Vincent de Rivaz CBE, Chief Executive of EDF Energy.

HR Forum 19 June 8.30 - 10.00am, at the French Chamber of Commerce Chaired by Rose Gledhill, HR Director - Northern Europe International SOS. Theme: “An open Conversation on Fairness” Open to HR Directors and Managers, Members of the Chambers only.

Climate Change Forum 26 June 10.00 - 12.00pm, at the French Chamber of Commerce Chaired by Richard Brown, Chairman Eurostar International Ltd. By application only.

Finance Forum 5 July 8.30 - 10.30am, at the French Chamber of Commerce Chaired by Patrick Gougeon, UK Director ESCP Europe and John Peachey, Managing Director and Global Head of Financing Solution Group HSBC Theme: “Mid-Caps and Corporate Financing” By application only.

For information, please1contact Karim Mijal atPage kmijal@ccfgb.co.uk or 0207 092 6638 Ch more du commerce:Layout 4/4/12 19:34 1

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