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In their latest incarnation as dream merchants, fashion brands seem curiously resilient. In September 2001, a minor war had been preoccupying industry-watchers for several months. The conflict ranged Bernard Arnault against another French businessman, François Pinault, owner of the retail and mail-order conglomerate Pinault-Printemps-Redoute (PPR). The disputed territory was Gucci. Arnault had been stealthily buying shares in Gucci with the intention of taking over the company. By 1999 his stake had reached 34 per cent. But neither Tom Ford nor Gucci CEO Domenico De Sole liked the idea of being swallowed up by LVMH, where they suspected they would lose control of the brand. Their white knight arrived in the form of François Pinault, who snapped up 40 per cent of Gucci’s shares. He also acquired beauty and cosmetics company Sanofi, which owned Yves Saint Laurent. In a couple of swift moves, Pinault had created Gucci Group, a potential rival to LVMH.
The flurry of acquisitions that followed on both sides looked like a duel between billionaires – Monopoly played for real. As LVMH continued its rapid expansion, the Gucci Group took possession of Boucheron, Bottega Veneta and Balenciaga, and signed partnership deals with Alexander McQueen (who left LVMH’s Givenchy amid considerable tongue-wagging) and Stella McCartney. Meanwhile, the bitter dispute over who had the right to take control of Gucci was tied up in court in the Netherlands, where Gucci’s shares were listed. Finally, in the economic dip provoked by the dotcom crash – and almost as if he sensed that he needed to conserve his resources for the difficult period ahead – Arnault gave up the fight. On 10 September 2001, he sold his Gucci shares, allowing his arch-rival François Pinault to take full ownership of the company. The guerre du luxe, as the French press had termed the conflict, was over.
We all know what happened the next day. In New York, the fashion carnival was in town for the spring-summer collections. The huge marquees that would be the setting for many of the shows had been erected in Bryant Park, practically within view of the Twin Towers. The industry was therefore witness to the horror that was to cause its latest nervous breakdown.
It seems almost churlish to try to place an event as tragic and farreaching as 11 September 2001 within the context of fashion. But the interesting fact is that, after a dramatic slump, the industry emerged from the disaster in rather better shape than anyone had a right to expect.
On 19 December 2001, an article in The Independent reported, ‘Profits fall by half at Gucci and Italian fashion giant predicts no upturn until late 2002’. Fast-forward to 16 October 2003, and a headline in The Guardian: ‘Fashion back in fashion as Gucci sales surge’. Later (23 January 2004), again in The Independent: ‘LVMH’s luxury defies the downturn’. In Time magazine’s autumn 2004 Style and Design supplement, an article headlined ‘Luxury Fever’ commented, ‘Despite rising interest rates, staggering energy prices. . . and the general state of unrest in the world, conspicuous consumption is back.’ And it’s not just the luxury brands that have weathered the storm. In December 2003, market researcher Mintel pointed out that high-street fashion brands H&M, Zara and Mango had all managed to double their sales between 1998 and the end of 2002, despite slowing growth. At the time of writing, the ‘fast fashion’ brigade continued to announce healthy sales increases and new store openings.
Such is the magnetism of fashion. We need to take a break from it occasionally, but sooner or later we come back for more. And if they’ve been smart enough, our favourite brands are waiting for us.

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