Karl Lagerfeld expanding namesake label

New York - The living legend behind the House of Chanel has made a very big announcement. Karl Lagerfeld will be expanding his namesake label, in what has been referred to by WWD as the "second coming of Karl Lagerfeld in America." Thanks to a new partnership with G-III Apparel Group, Lagerfeld will be debuting a new Karl Lagerfeld collection for spring 2016.

The line will focus on what Lagerfeld does best, women's apparel and handbags, and will also include men's outerwear offerings. The collection will be specifically tailored to the North American market as Lagerfeld wants to finally make his mark with his namesake line in North America. Lagerfeld's New York based contemporary label was originally discontinued in 2006, but, many have faith that the brand will make a successful comeback in North America.

There are already plans for an NYC flagship, and this time the clothes will be marketed as part of the "affordable luxury" category. “We’re very confident there will be a strong foothold from the start,” Pier Paolo Righi, president and chief executive officer of Karl Lagerfeld Group BV, said in an exclusive interview with WWD. “It can potentially become the biggest geography for us very soon.”

Karl Lagerfeld's namesake label being backed by G-III

While distribution will initially be concentrated in higher-end department stores, Righi has made it clear that they have serious plans for flagship stores. Morris Goldfarb, Chairman, President, and CEO of G-III, which helped Calvin Klein surpass 1 billion dollars in wholesale, said to WWD of Lagerfeld's label, "We believe there’s an opportunity for another power brand today, and I can’t think of a better vehicle to fill that void than Karl Lagerfeld. I don’t think there’s a woman [who] dresses in fashion that doesn’t know what he looks like. I think they’re in awe of the talent of this man and definitely will follow his leadership in fashion.”

It's that living legend status that they plan to capitalize on to help really make Lagerfeld's namesake label a success. Lagerfeld has been a household name among the fashion elite since his days at Chloe, and what really garnered him international recognition was his work for Chanel and Fendi. Many are curious about his namesake label though, which doesn't quite have the national attention that the fashion houses he designs for has gotten.

It's that curiosity that will lead people to learn about the brand and buy, at least that's what G-III is hoping for. Goldfarb has stated the plan is to "translate [Lagerfeld's] iconic DNA into product that is commercially viable in the U.S. – fashion right and priced appropriately for the target audience." Of course, there are many retail players involved in the process of gaining Lagerfeld's namesake label more international attention, and while Goldfarb has declined to name any of them by name, he has stated they have three major retailers behind them already.

In 2011, Apax Partners, the owner of the Karl Lagerfeld label, helped relaunch the brand, initially focusing on online selling, and eventually had the collection in boutiques spread across Europe. The fashion house began a rollout in China in 2013, and also found a home in the Middle East. Lagerfeld, of course, will be heading up the artistic direction for his label, but, he will also have some help from partners in Amsterdam and Paris.

They are hoping to create a collection that will be relevant to all consumers across the globe. The North American collection will be different from what is currently sold in Europe because they are going for a broader audience. Footwear is expected to be the next category they expand into, with a joint venture agreement allowing additional category licenses over time to G-III or other parties.

Currently, the Karl Lagerfeld label is only available to American customers via Net-a-Porter. Licensed products, such as fragrances and eye wear, are also distributed in North America. Under the new joint venture agreement, G-III will acquire 49 percent interest in the company, and will become the first licensee, securing a renewable five-year pact for the initial categories. The deal covers all products in North America, excepting those held by Karl Lagerfeld Group, which includes, eye wear, fragrance, watches, jewelry and hospitality services.

The deal also grants exclusive royalty-free license to use trademark for the same products in Mexico. Lagerfeld's expansion into the North American market comes as his namesake label is seeing double digit growth. The company already has plans to open five free standing boutiques and one shop-in-shop in the Middle East this year.

Additional store openings include a new Dusseldorf location, men's shops in Berlin and Hamburg, and a flagship store in Seoul to replace a temporary shop. The company is expecting to end the year with ten directly operated stores and three franchises in Europe, with 40 stores being forecast for China. For 2016, they plan to open stores in Kuala Lumpur and Singapore.

Lagerfeld also has a kid's collection planned for spring 2016 as well in conjunction with France's CWF. This November, Lagerfeld will be expanding its online presence to 96 countries thanks to a deal with Yoox Group for the launch of Karl.com in the U.S., Europe, and Japan. Just when it seems like Karl Lagerfeld couldn't do anything to become more successful, he pleasantly surprises the world by expanding his namesake label.