Luxury brands target the e-commerce space to woo customers. SINGAPORE — While few would blink at dropping hundreds of dollars at sites such as Redmart, Asos and iHerb for a quick retail fix or for the weekly grocery shopping, consumers are more likely to hesitate before clicking on the “Purchase Now” tab for a bag worth thousands of dollars. The luxury retail sector is one that has proven to be resistant to the e-commerce wave because of multiple factors: High-end brands are known to be slow to embrace e-commerce, fearing a dilution in their carefully managed brand cache, and the difficulties of translating the personal touch and exclusivity that come from shopping at a boutique to the online shopping experience.
On the consumer side of things, there is the aforementioned resistance to purchasing big-ticket items online. Since the digital shopping experience lacks the tactile element, a significant proportion of luxury consumers might baulk at the idea of buying a high-priced item that they cannot inspect and touch. But things are changing. Luxury fashion's slowly coming around to plus sizes. This article is from Pulse, Digiday’s quarterly print magazine about the modernization of media. This is a peek at the third issue, which focuses on the current state and future potential of video. To receive the full 80-page issue and subscribe to a year of Pulse, visit pulse.digiday.com. Fashion designer Prabal Gurung was sitting in a taxi on his way to a Victoria’s Secret show last November when a bus roared past. The advertising on the bus — Lane Bryant’s “I’m No Angel Campaign,” — turned out to be the answer to a question he’d had for two years.
“I wanted plus size to be a big part of my brand’s DNA. I was thinking, ‘How the hell am I going to do this on my own? Do I launch it?’ Advertisement It took less than a year for the two brands to announce a plus size partnership. Gurung is unique in that he’s one of the few luxury designers devoted to luxury plus size fashion, a market that is growing year on year. There are a few exceptions, of course. Steps to solving the problem. 10 Most Powerful Luxury Fashion Brands In The World. The luxury market has been growing significantly over the past couple of years and is still continuing on an upwards trend.
Experts forecast an annual growth rate for the luxury goods market of 5-6% between 2013 and 2015. The Brain & Company estimated the luxury market to be valued at $274 billion, with a potential to reach an astonishing value of $290 value by 2015. Whilst the luxury market has been dominated by Louis Vuitton, which continues to be the most valuable luxury brand on a global scale, other names have been emerging as potential market leaders. Gucci and Prada have experienced the most significant growth. With great growth and potential, brands like Prada, Gucci and Hermes may one day overtake the market. and reach the number one spot. It is believed that Prada and Gucci experienced such high growth in brand value due to an increase in Asian customers, at home and abroad.
Read on to find out the Top 10 World’s Most Powerful Luxury Brands. 10. 9. 8. 7. 6. 5. 4. 3. 2. 1. Burberry becomes first luxury brand to personalise on Pinterest. Burberry has become the first luxury brand to offer customers a personalised experience on Pinterest, letting them create customised make-up boards to promote its new ‘Cat Lashes Mascara’ product. The personalisation works by asking visitors three questions. Their answers, along with their initials will be combined to create the personal Pinterest board. The partnership allows Burberry to benefit from Pinterest’s features and data to cater its posts to individuals though personalised and monogrammed content.
Pinterest is currently the largest beauty platform in the world, with 38.5 million unique viewers of its hair and beauty category. Content will include makeup preferences, inspirational images, ‘how to get the look’ guides, product tips and information. The move comes after Burberry said it would focus on boosting customer loyalty by expanding its “digital prowess”, after its pre-tax profits fell 10% to £415.6m for the year to 31 March 2016. Prada Sales Slide on Weak Demand | News & Analysis | BoF. MILAN, Italy — Prada SpA reported the first decline in opening-half sales since its 2011 listing as weak demand in China and terrorist attacks in Europe continued to weigh on the Italian luxury-goods maker.
Revenue fell 15 percent to €1.55 billion ($1.8 billion), the Hong Kong-listed company said in a statement Friday, missing the €1.65 billion average analyst estimate compiled by Bloomberg. Earnings also declined, though by slightly less than analysts predicted. As the wider luxury industry struggles for growth, Prada has been hit harder than most. That is partly because its handbags are too expensive and it is been too slow to invest online, according to Sanford C. “Management sees 2016 as a turning point from where the group will return to growth by focusing on the values that made Prada the iconic company it is today,” the company said in the statement. The results were released after the close of trading in Hong Kong, where Prada shares closed up 2.1 percent at $HK21.75. Britain Now World's Cheapest Luxury Market | News & Analysis | BoF.
LONDON, United Kingdom — In the wake of Britain's vote to leave the EU, which pushed down the value of the pound about 10 percent against the euro, the country has become the cheapest luxury goods market in the world, helping to buoy British luxury labels, at least in the short term, according to new research by Luca Solca, the head of luxury goods at Exane BNP Paribas. "The Brexit vote has made the UK the cheapest market in the world for luxury goods,” Solca told BoF. “A weak British pound will boost travel inflows to the UK, helping British luxury goods players like Burberry, Mulberry and Jimmy Choo. " While luxury goods companies are not expected to raise prices in the UK in the coming months — at least until there is more clarity around exactly when and how the country might exit the EU — Britain should see a boost from tourist inflows and spending due to its weakened currency.
Mulberry luxury goods maker sees profit treble. Image copyright Getty Images Luxury goods company Mulberry sees profits treble following switch to focus on more affordable products. The company, best known for its leather handbags, saw annual pre-tax profits in the year to 31 March jump from £1.9m to £6.2m. Sales rose by 5% to £155.9m. Mulberry has struggled in recent years as a result of the company's failed attempt to compete with higher end brands, such as Prada and Fendi. Chief executive Thierry Andretta said it had made "significant progress". Mulberry has spent the past two years introducing new designs and bringing in lower priced bags in the £500 to £800 range. This followed ill-fated efforts to compete at the top end of the market offering bags priced at £1,000 and more.
However, the shake-up in strategy appears to be working. Mr Andretta said: "We have built a strong foundation for future growth as a result of the investment made in product design and development as well as our omni-channel infrastructure. Forbes Welcome.