Launched in November 2013, the LVMH Prize was created to "honour and support young fashion designers around the world." Every year, a young designer and three graduates from fashion schools can claim the prestigious prize after showing their work before LVMH’s stable of designers and select executives.
The LVMH Prize is hardly an entirely novel phenomenon. Rival conglomerate, Kering, with the help of Parsons School of Fashion, maintains its “Empowering Imagination” design competition. Swedish fast fashion giant, H&M, has its own H&M Design Award. And the Festival of Fashion and Photography in Hyères – which has partners that include Chanel, LVMH, and the Fédération Française de la Couture du Prêt-à-Porter des Couturiers and Créateurs de Mode, among others – hosts an annual design competition.
The Rise of the Fashion Competition
In generations prior, design competitions were certainly in play. There was not, however, as intense a focus on these activities as a means for designers to get their footing, for design houses to scout talent, or for these competitions to select the best of the best in a especially large pool of young talent.
Fern Mallis, the former executive director of the Council of Fashion Designers of America and an industry consultant, told the New York Times: “Take the Calvin [Kleins] and the Donna [Karans] and the Ralph [Laurens] of the world. Some of these people had money from a friend or a partner who worked with them, but they weren’t out spending their time doing competitions and winning awards to get their business going.”
She sheds light on an essential element: The relatively drastic difference between the state of fashion then and fashion now. Fashion then was slower, less global, and (a lot) less dominated by the internet, and so, it made for quite different circumstances in terms of building a fashion brand.
Nowadays, within a few years, young designers are often expected to show comprehensive collections, many of which consist of garments and an array of accessories. They are expected to be active on social media. They are expected to establish a strong industry presence (think: Go to events and parties). They are expected to cope with the fashion business that has become large-scale and international. They are expected to collaborate to expand their reach, and while it does, at times, feel excessive, this is the reality because the industry is moving at such a quick pace, one that some argue is unsustainably rapid.
The result is designers and design houses consistently building out their brands, oftentimes early on. Case in point: Young brands are routinely showing pre-collections within a few years of setting up shop (for a total of four collections per year, not counting any collaboration or capsule collections), and established brands showing roughly four womenswear collections, four menswear collections, two couture collections, and quite often, a few diffusion collections each year.
The current climate of "more is more" (more collections, more collaborations, more social media, more international know-how, etc.) in fashion is what sets currently emerging brands apart from older brands, many of which had the luxury of starting small. This reality also sheds light on the increasing frequency with which designers rely on competitions as a means of gaining funds, as well as a means of establishing their names and not uncommonly, gaining outside funding.
The Ralphs, Tommys, Calvins and Perrys started off a bit differently. Ralph Lauren, for instance, started a niche business. The empire builder, now 78, got his start working at a department store then worked for a private label tie manufacturer (which made ties for Brooks Brothers and Paul Stuart). He eventually convinced them to let him make ties under the Polo label and work out of a drawer in their showroom. After gaining credibility thanks to the impeccable quality of his ties, he expanded into other things.
Tommy Hilfiger similarly started with one key garment: Jeans. After making a name for himself by buying jeans, altering them into bellbottoms and reselling them at Brown’s in Manhattan, he opened a store catering to those that wanted a “rock star” aesthetic when he was 18-years old with $150. While the store went bankrupt by the time he was 25, it allowed him to get his foot in the door. He was offered design positions at Calvin Klein (who also got his start by focusing on a single garment: Coats. With $2,000 of his own money and $10,000 lent to him by a friend, he set up shop; in 1973, he got his big break when a major department store buyer accidentally walked into his showroom and placed an order for $50,000).
Hilfiger was also offered a design position with Perry Ellis but turned them down to start his eponymous with help from the Murjani Group. Speaking of Perry Ellis, the New York University grad went to work at an upscale retail store in Virginia, where he was promoted to a buying/merchandising position in New York, where he was eventually offered a chance to start his own label, a small operation. After several years of success, he spun it off as its own entity. Marc Jacobs, who falls into a bit of a younger generation, started out focusing on sweaters.
These few individuals, some of the biggest names in American fashion, obviously share a common technique. They intentionally started very small. They built slowly from there, and they had the luxury of being able to do so. Others, such as Hubert de Givenchy, Alexander McQueen and his successor Sarah Burton, Nicolas Ghesquière, Julien Macdonald, John Galliano and his successor Bill Gaytten, and others, spent time as apprentices, working up to design directors or creative directors, and maybe maintaining a small eponymous label on the side.
With this in mind, fashion competitions have begun to play an important role in helping designers to cope with the increasing need to establish a brand early on. It seems to me that winning (or nearly winning) a prestigious fashion competition results in several key rewards.
Primarily, it puts a designer's name and brand on the map. This is likely the least noteworthy of the rewards, as chances are, if you are selected to participate in a design competition, your name and brand are already out there to some extent as one of the most promising young designers of the moment.
Second are the actual prizes, which commonly include mentoring from industry insiders and monetary grants. We know that participation in competitions, such as the CFDA/Vogue Fashion Fund, the Woolmark Prize, the Swarovski, Ecco Domani, the LVMH Prize, etc., gives emerging designers face time with and mentoring from some of the most successful names in the industry.
Chris Peters, half of the label Creatures of the Wind, whose brand has been nominated for half of the aforementioned awards says of such participation: “It feels like we’ve talked to possibly everyone in fashion that we can possibly talk to." The grants, which range anywhere from $25,o00 to $400,000 and beyond, are obviously important, as many emerging designers take this money and stage a runway show or launch pre-collections, which often affect the business' bottom line in a major and positive way.
The third benefit is arguably the most significant. It seems that competitions also provide brands with some reputability in terms of finding funding. At the moment, the sea of young brands which is terribly vast. Like law school graduates, there are a lot of design school graduates. With this in mind, these competitions are, for the most part, serving as a selection mechanism. Sure, the inevitable industry politics and alternate agendas exist (without which the finalists lists may look a bit different), but great talent is being scouted, nonetheless.
Not only is it important to showcase the most promising young talent and provide them with mentoring and grant money, as a way of maintaining an industry, but these competitions also do a monumental service to young brands in terms of securing additional funding. One of the most challenging aspects of the business for young/emerging brands is producing and growing absent outside investors' funds, and often, the only way for brands' to have access to such funds is by showing a proven sales track record, something that is difficult to establish when you've already put all of your money into your business and it is just not enough. This is a frustrating cycle for young designers.
However, this is where design competitions are a saving grace. If we look to recent Council of Fashion Designers of America/Vogue Fashion Fund winners and runners-up, for instance, it is not uncommon to see funding (distinct from the grants associated with winning) come on the heels of successful participation. Chrome Hearts, the cult L.A.-based accessories label, acquired a minority stake in The Elder Statesman, the brand established by Greg Chait, the 2012 winner, this past March.
A minority stake in 2011 winner Joseph Altuzarra's eponymous label was purchased by luxury conglomerate Kering in September 2013. Creatures of the Wind, the NYC-based brand founded by Shane Gabier and Chris Peters, which took home a runner-up prize in the 2011 competition, welcomed an investment from The Dock Group, a Los Angeles-based fashion investment firm, in recent years, as well.
Across the pond, the British Fashion Council/Vogue Fashion Fund has awarded prizes to a handful of designers who have gone on to land noteworthy investments. In January 2013, Christopher Kane, the 2011 winner, sold a majority stake in his brand to Kering. Footwear designer Nicholas Kirkwood was named the winner 2013 in May and by September, a majority stake in his company had been acquired by LVMH.
Thus, while the exposure that fashion design competition participants gain, and the mentoring and monetary grants that the winners enjoy, are certainly not to be discounted, the takeaway is much larger than that. These competitions are becoming the new way for investors and luxury conglomerates to source new talent, and for young brands to land the outside investments that they so desperately need to produce their collections, expand their studio space, build upon their existing collections, and even open brick and mortar stores.