INTERVIEW:Mondadori Throws Down Gauntlet In Magazine War
By JENNIFER CLARK OF DOW JONES NEWSWIRES

MILAN -- At least one publisher isn't scared by the big slump in advertising.

In the worst advertising market in recent memory, Italy's largest publisher, Arnoldo Mondadori Editore SpA (I.ARM), will launch a women's fashion magazine called Flair in the second half of January.

"In terms of colors, journalism, design and paper, it's going to be an expression of our very best work - and I'm taking a risk when I say that ... because if it flops ..." Mondadori Chief Executive Maurizio Costa said in an interview with Dow Jones Newswires, as he shook his head with a smile.

Italian fashion magazines are gearing up for a catfight next year, largely because of Hachette Rusconi's decision to let a contract expire for RCS Editori SpA (I.RCS) and Mondadori to publish the Italian editions of Elle and Marie Claire, respectively, starting with the redesigned January 2003 issues, both already on newsstands.

RCS Editori relaunched its weekly Amica as a monthly in October, spending a reported EUR20 million.

So instead of two women's glossies, there are now four. And with magazine advertising expected to contract by between 3.0% and 5.0% in 2002, and fall again in 2003, one of those magazines is going to feel some pain.

"All of these magazines are ad-driven products and they're all getting launched at a time when the market is really weak, so it's a bit strange," said Maurizio Moretti, the analyst at Uncredito Italiano SpA who covers Mondadori. Moretti has an accumulate rating on the stock.

Mondadori is viewed as a strong contender in the coming battle because of its past track record, its deep pockets and its rock-solid relations with advertisers. Its market share of about 40% of Italy's magazines will also be a big help, said analysts.

"If I had to place bets to pick the most successful, I would say that Flair has a good chance," said Deutsche Bank media analyst Alessandro Baj Badino, who has a buy rating on Mondadori stock and a target price of EUR7.8. He noted it kept most of Marie Claire's staff and used them to put out Flair.

Mondadori has little choice but to make up for the ad revenue it will lose with its "adieu" to Marie Claire by launching another title, said Costa.

"We want to launch the new magazine because we think it's fundamental to our women's titles portfolio to have a high-end publication," he said. "We think there is room for a new, innovative woman's product aimed at that target."

Mondadori will spend EUR8.0 million on the advertising campaign and launch for Flair, and will lose EUR6.0 million from Marie Claire's departure. But there's more than just money at stake. If the launch doesn't go well, it will be something of a blow to the publisher's 97-year reputation - sort of like doing a belly flop into a crowded pool.

The January issue of Marie Claire weighed in with 87 ad pages and a print run of 300,000. All advertisers have renewed their contracts from 2002, the vice-director of Hachette Rusconi Pubblicita' Marina Giuliani told publishing monthly Prima Communicazione. Marie Claire targets 3,000 ad pages in 2003, flat its performance in 2002.

Mondadori has been tight-lipped about Flair, saying little other than it will be "original" and "contemporary".

Edited by Valeria Corbetta, the former editor of Italian Glamour, its February issue will hit newsstands in late January. The magazine will also be available in English, sold in London, Berlin, Paris and New York.

But it will be a hard sell for some. Even Costa admits that "if you buy Vogue, you will probably continue to do that."

Hi everybody, I hope you had a wonderful vacation, wherever you are. I'm back from the French Alpes, where the snow was really too thin and too icy to enjoy skiing, but the weather was wonderful. wish you all a happy new year, and let's begin immediately to catch up on the updates:

---> They said it will be hot by American standards, and this time they didn't lie. Here are a few pics from the Abercrombie & Fitch uncensored catalogue, including Julie Ordon going topless.

---> This is the Lavazza calendar, photographed by Jean Baptiste Mondino. I'm not sure I like it, but if you like your women like your coffee, dark and strong, a visit is a must.

---> Much more important, Mondino has uploaded his entire archive from the last twenty years. The site is called Mondino Deja Vu, but I doubt if many of you had indeed deja vu all those pics, some from his glorified days at Actuel, a great French monthly magazine now defunct. Alas, the pics are shown in Macromedia format, so they are quite small and difficult to download. Still, it's worth your time.

---> Cendres is about to close Models & Mags, so you have only 28 days left to d/l all those wonderful scans (above, the last update wioth Marcelle Bittar).

---> Eva Herzigova has re-opened her official site. The Flash intro is a great arty animation, don't hit "skip"!

---> Speaking of Marcelle Bittar, this admiration site has great pics of her.

---> And Anne Vyalitsyna got a brand new admiration site of her own! Seems people have been busy uploading scans of their favorite models during the endyear vacation...

P.S. - small change in the design of this humble weblog: a lot of people complain all year round that they can't read the links in orange, so we're back to a classic blue for a test. You can comment below.