The problems of the relationship between talent and business : the case of Christian Lacroix

In 1986, LVMH decided to finance from scratch a new haute couture fashion house for Christian Lacroix who, at the time, was a young stylist at Patou. Christian Lacroix was discovered and financially supported by Jean-Jacques Picart. Picart was even more certain than Lacroix that such a company was essential for Christian Lacroix to have the space and scope necessary to demonstrate his talent. As a result of this, Lacroix has become a leading name in the fashion world. Unfortunately, the company never made any profits and was forced to cease activity in 2010. This story illustrates the difficult relationship between fashion and business, and that innovation, even with the most talented people, may be difficult to manage and market. Creating a fashion company is similar to making haute couture clothing; in other words, one has to design an economic model which is perfectly adapted to the characteristics of its creator.