Chanel to Harmonize Global Prices. Jing Daily: The Business of Luxury and Culture in China. Shoppers on Hong Kong’s Canton Road in December 2014. (Shutterstock) When leading global luxury conglomerate Richemont reported its dismal third-quarter 0 percent global sales growth this week, it blamed two main Asian locations for the slump: Hong Kong and Macau. While China’s Special Administrative Regions have long been been luxury shopping hotspots for mainland tourists avoiding high tariffs, several key developments over the past year have shaken the industry and left brands to ask whether they should start directing more focus toward other big destinations for Chinese shoppers. Although Hong Kong and Macau were respectively the top two non-mainland destinations for Chinese travelers in 2015, both have have had a rocky year for luxury retail and leisure revenue.
In Hong Kong, retail rent growth was the lowest it has been since 2009 in 2014, while sales of jewelry, watches, and other luxury items dropped 12 percent in October. Jing Daily: The Business of Luxury and Culture in China. GM cuts price on most Cadillac CTS sedans amid weak demand. GM cuts price on most Cadillac CTS sedans amid weak demand. 7 Insights About Marketing to the Super Rich | Doug Gollan: Selling to the Super Rich — Ideas, Research and News for luxury marketers. Having spent the first couple days of the week in Cannes, France at The International Luxury Travel Mart (#ILTM) I wish I had a Euro for each time the word experience or experiential was heard. Yes, I too would be rich.
While the show brings together mainly luxury hotels and travel agents who sell them, it also includes destinations, private jet charters, destination services, an array of vendors that cater to all ends of luxury and journalists. Thus most of the conversation and announcements tend to focus on general luxury. I think it might be worth noting to show organizers that two weeks prior new research released by Wealth-X showed Ultra High Net Worth (UHNW) households (about 211,000 worldwide) spent $45 billion on luxury travel in 2013, 22.5 percent of the entire market. Oh, and the $45 billion doesn’t include $23 billion buying private jets and $22 billion on yachts! 1. 2. 3. Virtually anyone whose comments included the Super Rich agreed these creatures are global. 4. 5. 6. 7.
How far does $250,000 go? | Doug Gollan: Selling to the Super Rich — Ideas, Research and News for luxury marketers. In December 2010 The Washington Post engaged BDO USA to see how far a quarter million dollars pre-tax would go for a family of four living in selected affluent suburbs across the country. Keep in mind that while $250,000 does not put you in the Top 1 Percent it puts one solidly in The Next 9 Percent. Representing New York City was Huntington (where $250,000 puts one in the Top 7 Percent of earning households), Naperville (Top 4 Percent) was selected for Chicago, Pinecrest (Top 3 Percent) for Miami, Glendale (Top 4 Percent) for Los Angeles, Plano (Top4 Percent) for Dallas, and Bethesda, The District and Alexandria (Top 7 Percent) for the $250,000 earners working in Washington D.C.
The study was a follow-up to a blog post by University of Chicago Professor Todd Henderson who chronicled his own household’s battle to get by on $250,000 a year before taxes. Simply put, with a Household Income of $250,000 the folks in Plano would have had $1,963 extra at the end of the year. Like this: Michel Gutsatz sur Twitter : "Louis Vuitton Foundation: pure emotion - the essence of #luxury... Top 10 Fashion Films of the Season - The Business of Fashion. LONDON, United Kingdom — As online video consumption continues to grow, short fashion films have become an increasingly important component of brand advertising campaigns, though, on the whole, the genre still suffers from a host of challenges relating to lack of budget, poor distribution strategies and the political power wielded by photographers and their agents.
In past seasons, big-budget cinematic-style epics, snappy dance-driven shorts and films propelled by humour have typically attracted the largest audiences. This time around was not much different. Zegna’s ambitous “A Rose Reborn” directed by Park Chan-wook made our list, as did Alexander Wang’s funny Autumn/Winter campaign film, featuring Chris Kattan as Mango, a character from the American comedy show Saturday Night Live. This season, we also created a fashion film of our own!
Now, without further ado, sit back, relax and enjoy BoF’s Top 10 Fashion Films of the Season. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Konnichiwa! Behind Zegna’s Big Bet on Film - The Business of Fashion. SHANGHAI, China — The closing event of Shanghai Fashion Week last Wednesday was not your typical runway spectacular. Instead, Italian menswear giant Ermenegildo Zegna took over the city’s Exhibition Centre to premiere a big-budget cinematic thriller, A Rose Reborn, directed by internationally acclaimed South Korean director Park Chan-wook.
It’s not the first time that Zegna’s creative director, Stefano Pilati, has used film to tell his story of the brand. To mark the launch of his first collection for the company, he created a tongue-in-cheek video, starring himself as a news anchor. He has since commissioned several more films, which have served as the backdrops to his Milan ready-to-wear shows and employed Swedish director Johan Söderberg to create a film to communicate his Spring/Summer 2015 couture collection. Pilati assembled an impressive team to bring the concept to life. “What I knew is that I wanted to work with an Asian director and a Chinese actor. Three Key Things to Know about China’s Luxury Travelers. Luxury travelers from China spend more on luxury than those of any other nation, accounting for almost half of total consumption.
They are also becoming increasingly sophisticated about where they buy, with about two thirds of spending taking place while traveling abroad. So now that we know how important they are, who are they really? Let’s take a look at three key questions to help us better understand. 1. They’re upgrading their travel purchasing destinations In the past, luxury consumers from high-GDP cities such as Beijing and Shanghai would travel to Hong Kong to purchase items, and consumers from mid-tier cities such as Xi’an and Chengdu would travel to high-GDP cities or purchase through shopping agents. 2. From a strategic consumer study we performed in 2013, across consumer groups, we found at least 60% of purchases are planned before consumers leave China. 3. What does this mean for a luxury brand? In China, Luxury Brands Cut Prices Amid Sales Slowdown. Courtesy Ferragamo Luxury goods makers have long valued Chinese consumers not just because of their huge appetite for Gucci bags and Cartier watches—consultancy Bain estimates that Chinese purchased a third of all luxury goods sold globally in 2013—but also for their willingness to pay more than their Western counterparts.
So it wasn’t business as usual in July when a pair of light brown Salvatore Ferragamo (SFER:IM) Carla leather pumps was being sold at 40 percent off, for 3,120 yuan ($507) on a site run by e-retailer Xiu.com, which is less than the item’s European retail price. Likewise, at a downtown Shanghai outlet of Kering’s (KER:FP) Gucci, a light pink Soho leather shoulder bag was discounted 30 percent to slightly more than 12,000 yuan, about the same price as a similar bag in the U.S. Several forces are fueling the price slides. Some discounting is more understated, as luxury houses try to avoid lowering the value of their brands along with their prices. Is Fine Jewellery Set for a Branding Revolution? - BoF - The Business of Fashion. NEW YORK, United States — Just imagine if the vast majority of fashion were unbranded, sold by generic retailers and small-time traders instead of globally recognised giants.
In the market for fine jewellery — which includes anything made from precious metals and gemstones — this is the norm. According to a February 2014 report released by McKinsey & Company, 80 percent of the $263 billion worth of fine jewellery sold annually remains unbranded, bought at a range of national retailers, mid-sized single-branch enterprises and small mom-and-pop stores.
“The 10 biggest jewellery groups capture a mere 12 percent of the worldwide market and only two — Cartier and Tiffany & Co — are in Interbrand’s ranking of the top 100 global brands,” noted the report. Momentum has been building for several years. In the 1980s, David Yurman and Pandora joined international jewellery stalwarts like Cartier and Tiffany. Bittar shared a similar story. Chanel vs. Chanel: Coco's Brand Steps Off the Runway and Into the Courtroom. Chanel is ubiquitous—on the runway each fashion week, in its boutiques lining Fifth Avenue and Rodeo Drive, and now in the courtroom as it seeks to uphold its trademark rights against a little-known salon and spa in Indiana. Merrillville, Indiana, to be precise. According to papers filed in the US District Court in Hammond, Indiana, Chanel Inc. has filed a trademark infringement action against Chanel’s Salon, arguing that the salon is benefiting from an association with the chi-chi brand’s reputation.
The LVMH-owned brand also claims it has sent cease and desist letters that have been ignored. The fame of the Chanel trademark is hardly disputable, a factor weighing in the luxury brand’s favor. When the average consumer thinks of Chanel, images of that expensive interlocking C logo are likely to come to mind. Unfortunately for Ms. It might be hard for a Mrs. It is in Chanel Inc.’s best interest to take on a case against Jones. Class Action: The Fashion Brands Training Tomorrow's Artisans - BoF - The Business of Fashion. Traditional fashion schools are in the business of producing the runway stars of tomorrow. Top-ranking education centres such as Central Saint Martins (CSM) in London, Parsons The New School for Design in New York and the Royal Academy of Fine Arts in Antwerp have had considerable success in forming famous fashion designers, include Marc Jacobs, Tom Ford, Christopher Kane and Raf Simons.
When they aren't churning out the next generation of headline fashion names, these institutions are busy schooling future design teams, who toil anonymously behind the scenes, not to mention the marketing, communications and business departments that support the creative endeavours. What they don't do, however, is produce the next generation of highly skilled artisans. 'The primary purpose of our school is for the students to learn to develop their own creative design signature,' says Anne Smith, dean of CSM in London.
This is where luxury goods companies are keen to enter the picture. BoF Exclusive | Apple Watch To Make Editorial Debut in Vogue China - BoF - The Business of Fashion. BEIJING, China — Apple’s relationship with fashion has grown from a casual flirtation to a full-blown love affair. BoF can reveal that the Apple Watch is set to make its editorial debut on the cover of Vogue China’s November issue, out this Monday, featuring Liu Wen. A spread from Vogue China’s November issue | Source: Vogue China It’s the latest in a series of activities that puts fashion at the focus of Apple’s communication strategy. On September 9th, in the middle of New York Fashion Week, the Silicon Valley-based company invited a cadre of fashion editors and bloggers to the unveiling of the Apple Watch, held at its the headquarters in Cupertino, California.
Then, during Paris Fashion Week, Apple successfully squeezed itself into a hectic show schedule, staging an exclusive showcase of the new Apple Watch at Colette before attendees including Anna Wintour and Karl Lagerfeld. Apple Watch by David Sims and Karl Templer | Source: Courtesy Apple. Johnnie Walker Aims for Luxury Status with Five-Star Exclusive Theater. Johnnie Walker is upping the stakes in experiential, content marketing to promote its latest exclusive whisky blend and transform into a luxury brand.
Following on its growing stable of Johnnie Walker House local retail experiences in Shanghai and beyond and its global campaign that included a short film starring Jude Law, JOHNNIE WALKER® BLUE LABEL™ next week will stage a one-of-a-kind brand experience in London: Symphony in Blue, billed as "the world’s first theatrical, experiential, musical and artistic journey. " Three performances (two evening and one matinee) will take place on Sept. 16/17 in a multi-sensory cultural event designed to turn elite influencers into brand advocates.
The event is being "exquisitely crafted by a star-studded team" that produced the memorable London 2012 Olympics opening ceremony. The goal of the upscale activation is to put the brand on the level of a Burberry or Tiffany with a discerning and deep-pocketed class of consumers. The Challenge of Creating Digital Content for Luxury Brands. Digital media has given luxury customers more power than ever before to shape the image of the brands they follow. How can these brands translate their heritage and historical image into content that will resonate with the hyperconnected consumer of today? Luxury brands are masters of inspiring their customers with the heritage, history and loftiness of their products. They do this with an almost unspoken code that only their loyal followers truly understand. People don’t just buy handbags; they buy the heritage, the workmanship and the story of the brand. Yves Carcelle, former CEO of LVMH says in an upcoming INSEAD Knowledge interview with my colleague Andrew Shipilov, INSEAD Associate Professor of Strategy that “the [fashion] houses have a soul.
People say “DNA” in the industry but they really have a soul based on their history, what has happened around the house. In a digital world, leaders of luxury brands will still play a significant role in building the brand dream. Businessoffashion.com-John_Lobb_Scaling_a_CraftBased_Business. Step Inside Prada’s Dream Factory With Patrizio Bertelli, Miuccia’s Partner in All Things. On an evening in late June, as Prada prepared for its spring 2015 menswear show, its head office in Milan—known as Bergamo 21, it takes up nearly the length of an entire city block and has the forbidding effect of a papal seat—was filled with businesslike calm.
Male models strolled past, so long and concave they moved like wolves, indistinguishable, their identical blond hair held in identical side partings by childlike barrettes. That the mood at Bergamo 21 was something like the opposite of panic—that the Prada empire of which it is the capital is now so profitably functional as to make fashion’s trademark hysteria seem like a foreign country—can be credited to its two rulers, Miuccia Prada and Patrizio Bertelli, who became joint CEOs earlier this year. The eponymous figurehead, Prada has always been the charismatic creative force—were it not for her designs, and indeed for the foundation of her family business, Prada would not exist at all. I have come to Milan to meet him.