Dusting Off Cartier on Fifth Avenue and Beyond. NEW YORK, United States — On the evening of Wednesday, September 7, after five years of planning and two and a half years of renovations, Cartier unlocked the doors of its historic mansion at 653 Fifth Avenue, which Pierre Cartier acquired from the Plant family in 1917 for $100 and a double strand of perfectly matched natural pearls.
The necklace, coveted by matriarch Maisie Plant, was said to be worth more than the property, which, at the time, was valued at $925,000. When, exactly, the store will open to the public is still unknown. Cartier has been waiting on relevant approvals from the local fire department. Gucci Among World’s Hottest Fashion Brands, While Prada Cools. LONDON, United Kingdom — Gucci has been named one of the “hottest” luxury brands, while Prada and Giorgio Armani are “cooling” fast, according to a new report by Exane BNP Paribas.
The financial services firm assessed the “brand temperature” of luxury companies, based on the ratio between the editorial coverage they receive in print magazines, and their print advertising spend. Brands are ranked as “hot” if magazines give them more editorial space than their advertising spend should warrant, meaning they have more editorial coverage than print magazine advertisements — reflecting a “hot” level of appeal and desirability — whereas brands that fall below this ratio are “cold.”
Gucci’s editorial value was up more than 15 percent for the first six months of the year, compared to the same period last year. Louis Vuitton and Chanel both also ranked as “hot,” but their editorial value grew at a lower rate of between 0 and 15 percent, despite a high print advertising spend. American Luxury Companies Remain Cautious as Weak Traffic Weighs on Sales. NEW YORK, United States — Luxury-goods sellers are keeping the champagne on ice.
Despite posting earnings that topped analysts’ estimates for their most recent quarters, Coach Inc., Ralph Lauren Inc. and Michael Kors Holdings Ltd. all offered less-than-rosy forecasts. The gloomy outlooks weighed on shares of Coach and Michael Kors, while Ralph Lauren’s stock rose on optimism that a turnaround plan from its new chief executive officer is gaining traction. Executives at the companies — which sell merchandise ranging from $400 handbags to $5,000 pea coats — say decreased tourism to the US and dwindling spending are hurting sales at department stores as well as their own locations. And in a break from recent practice, they are trying to avoid resorting to extreme discounts to move merchandise for fear that the tactic will ruin their brands’ images among consumers.
Luxury Brands Go on a Diet - Bloomberg Gadfly. It's already happened to middle-of-the-road stores across high streets and main streets.
Now the world's biggest luxury stores are starting to shutter outlets. The culprit is the Chinese consumer, who is starting to rein in spending at home and abroad. The effect will be no less severe: expect more closures to come. Storing Up Trouble? As Chinese demand has grown, so has the number of' luxury retail outlets in the region. The Luxury Brand Balancing Act. Luxury’s Pain as Others Gain in Hong Kong and China - China Real Time Report. Six months ago, Canton Road had a jewelry shop selling Rolex watches, diamond rings and the like for thousands of dollars.
Today, the space is occupied by a Colourmix Cosmetics shop selling inexpensive lipstick and cosmetics. Similar changeovers are happening all over Hong Kong, real estate industry experts say, as consumers spurn high-end goods and focus their spending on mid-range brands like SASA cosmetics and Adidas athletics. “This is a structural change, the luxury brands have to face the reality of the situation,” said Joe Lin, executive director of real estate broker CBRE’s Hong Kong office.
“If the rent is that expensive they cannot survive.” Hong Kong retail rents in core shopping districts, which have declined significantly since 2015, are expected to fall 5-8% over the remainder of 2016, according to CBRE. Dior Becomes First Luxury Brand To Sell Handbags On WeChat. Dior became the first luxury brand to sell its handbags on WeChat, a popular Chinese social messaging platform, earlier this week.
The brand made its iconic Lady Dior bag available on the platform on Monday for the upcoming Qixi, or Chinese Valentine's Day, on Aug. 9. Buyers were able to directly purchase and pay through WeChat, and on Tuesday, the bag was already sold out. "Since luxury brands can find their target consumers by big data of WeChat, the largest social network in China, it's easier for them to advertise and sell products on WeChat," Lu Zhenwang, an internet expert and CEO of the Shanghai-based Wanqing Consultancy, told China Daily. "Many luxury brands are operating under pressure, and they would like to open up the market through e-commerce platforms. Even if the sales were slow, they could achieve results through marketing and branding," he added. Dior also made headlines in the U.S. earlier this week when it opened a new boutique in Atlanta.
Gucci Stores Get Marble Staircases as Luxury Brand Seeks Revival. MILAN, Italy — Velvet armchairs and marble staircases form the backdrop against which Gucci’s new creative director is basing his efforts to extend a revival at the ailing luxury brand.
Alessandro Michele’s fall-winter collection is being shown in a lavish setting at Gucci’s flagship store in Milan that also includes vintage oriental rugs and plush carpets. The new design will be introduced at other Gucci outlets after Friday’s debut in the Italian fashion capital. The store format “is one of the ways in which we are communicating Gucci’s new identity,” Gucci Chief Executive Officer Marco Bizzarri said in a statement. Bizarri joined in January from Bottega Veneta, like Gucci owned by Kering SA. Do 'Accessible Luxury' Brands Have an Inherently Limited Lifespan? LONDON, United Kingdom — Last week, Coach Inc., Kate Spade & Co. and Michael Kors Holdings Ltd. reported their quarterly earnings.
Once the darlings of Wall Street, in the last year these accessible luxury brands have run into trouble, with some reporting weak earnings and declining same-store sales. Last Tuesday morning, Coach reported fourth quarter revenues of $1 billion, a 12 percent drop compared to the same period last year. While the American leather goods and accessories maker’s revenues beat expectations, same-store sales fell by 19 percent. Then, on Wednesday, Kate Spade & Co. reported second quarter net income of $8.5 million, after reporting a loss in the same period a year earlier. Kate Spade shares have dropped 35 percent in value since the beginning of 2015. Kate Spade Autumn/Winter 2015 | Source: Kate Spade It wasn’t always this way.