Even Chanel and Hermès Susceptible to Current Climate. NEW YORK, United States — There’s no question the past year has been a difficult one for luxury brands.
In 2015, the global market for personal luxury goods grew to €253 billion (about $284 billion), up only 1 percent on the previous year in real growth terms, according to a report by Bain & Company, a global consulting firm. “The luxury market is stuck in a holding pattern for the foreseeable future,” says Claudia D’Arpizio, a Bain partner and the principal author of the study, which cites slow US holiday sales, decreased tourism in Europe, instability in the Middle East and the downturn in China as prime factors behind the slow growth. Luxury Goods Market Hampered by Terror Threats, US Election. MILAN, Italy — The terror threat in Europe, a strong dollar and uncertainty over the US presidential elections have eroded the confidence of the globe's big-spenders, holding luxury purchases flat in 2016, according to a study released Thursday.
Spending on luxury apparel, accessories and other personal items is expected to hold steady at €249 billion ($273 million) this year, a study by Bain Consultancy for the Altagamma association of Italian high-end luxury producers.
First look: AllSaints launches pop-up in Selfridges. Sainsbury's raises fashion stakes with launch of Tu Premium. Harvey Nichols to curate Italian-themed series of events. Burberry to Unify Brands Under One Label in Bid to Boost Appeal. LONDON, United Kingdom — U.K. luxury goods maker Burberry Group Plc plans unify its collections under one brand to make it easier for customers to understand its product offering.
Burberry will phase out the Prorsum, London and Brit labels by the end of 2016, Chief Executive Officer Christopher Bailey told reporters Tuesday. The new brand, known simply as Burberry, emphasizes the company’s British roots and underscores that all products are designed and developed in London, he said. “We believe this will make it simpler and more intuitive for our customer,” Bailey said.
“This is certainly not cosmetic. Ralph Lauren unveils redesigned Beverly Hills flagship. Earlier this week a woman sat at a leather tabletop desk inside Ralph Lauren’s Beverly Hills flagship, pressing against the desk’s surface.
She looked up with each motion to review her selections on a screen that bore an image of the handbag she was in the midst of designing. LSN : Briefing : Curated luxury: Top designers create exclusive items. Louis Vuitton handbags 'cheapest in London' after Brexit vote. Image copyright GABRIEL BOUYS London may be one of the most expensive cities in the world for tourists, but not if you are after a Louis Vuitton handbag.
According to research from Deloitte, items from the designer and other luxury goods now cost less in Britain in dollar terms than anywhere else. Will Brexit be a boon for tourists? Hotels = retail spaces. Lagerfeld Hotels. Zayn Malik X Versus. Diffusion confusion: do secondary lines devalue luxury brands? Over the past decade, you’d have to be living under the biggest fashion rock to have missed its presence amongst the millennial tastemakers.
And yet surprisingly, last spring the brand was shuttered. What happened? Lower-priced secondary labels, called “diffusion lines” in the fashion industry, are often launched by a premium namesake product line to attract a broader range of customers with a more affordable price. 2 become 1: Is It Smart for Marc Jacobs to Fold Its Diffusion Line? - EDITED.
A note on abbreviations in this post: to cut down the number of times we type ‘Marc’, we’ll be referring to the brand Marc Jacobs as MJ, and Marc by Marc Jacobs as MbMJ.
Just so you know! Last month Marc Jacobs announced Marc by Marc Jacobs would be merging with its signature Marc Jacobs line. The sudden demise of one of the world’s most popular diffusion lines left an obvious question: why? Is it that 2010’s generally accepted wisdom, that diffusion lines are a great way to get through austerity, has aged into irrelevancy? The premium market, where MbMJ sits, certainly filled out in that time. Team Marc Jacobs is saying MbMJ will be absorbed into the mainline to create “a more aesthetically cohesive range of merchandise and price points”.
Say goodbye to Marc by Marc Jacobs. It’s official: after 14 years of harmonising with its main line, Marc by Marc Jacobs will no longer serve up its selection to Marc Jacobs fans.
The ready-to-wear line, currently headed up by Katie Hiller and Luella Bartley, is to be merged with the designer's primary collection, combining the strengths of both lines into one. WWD confirmed the news today, adding that the move will "assimilate that collection’s product range and price points into the signature Marc Jacobs collection". It is not known what will happen to the roles of Hillier and Bartley, who are currently creative director and womenswear design director respectively.
Burberry consolidates Prorsum, Brit and London labels into one. The Luxury Brand Balancing Act. LONDON, United Kingdom — Fashion’s luxury megabrands have long struck a winning balance between exclusivity and accessibility, driving strong financial results by creating expensive iconic products, which, paired with elaborate marketing campaigns, emit a halo of perceived exclusivity around lower price products — such as cosmetics, fragrances and small leather goods — designed to sell at high volume to aspirational consumers.
After all, real exclusivity offers little opportunity for scale and the likes of Louis Vuitton and Gucci did not build multi-billion-dollar businesses by selling only to a handful of high net worth customers. Has luxury gone too mass? Has Luxury Gone Too Mass?
Luxury brands have long been mass consumer brands. After all, real exclusivity — selling highly select items to a limited audience — offers limited opportunity for scale and business growth. Indeed, the world’s most elite luxury houses, like Louis Vuitton, Dior and Chanel, have driven strong financial results by creating iconic products as high price points, which, paired with elaborate marketing campaigns, emit a halo of perceived exclusivity around lower priced products, made to sell in high volumes to aspirational consumers. Where Will Hermès Find Growth in a Slowing Luxury Market? MIAMI, United States — The pristine sidewalks of the Miami Design District are illuminated by glowing streetlights. Tonight, a champagne flute-clasping crowd gathers around the front of the neighbourhood’s brand-new Hermès flagship. The whitewashed building, wedged on the corner of NE 39th Street and 2nd Avenue, across the street from Louis Vuitton and around the way from the popular restaurant Michael's Genuine Food & Drink, is set to open to the public the next day.
Hermès’ new Miami store is its third flagship in the US, which emerged from the global financial crisis and ensuing downturn much faster and stronger than most markets. It is widely seen as a major opportunity for fashion and luxury businesses, especially as growth continues to slow in a troubled China. When China’s yuan falls, so do the fortunes of luxury fashion brands. China is currently the world’s fifth largest luxury market (pdf, p. 5), but that ranking doesn’t show the whole picture. Chinese luxury shoppers make many of their purchases while traveling outside the country. Luxury fashion brands puts on a brave face about China. What is fashion week for and why is it changing? Image copyright Jigsaw London's autumn fashion jamboree wraps up on Tuesday, with the last few catwalk shows and presentations.
Burberry warns of 'challenging' year in luxury market. Image copyright AP Luxury fashion firm Burberry has warned of "challenging" market conditions ahead and reported that sales fell 1% in the final six months of the year. Burberry said slowing demand from US wholesale customers and "cautious" ordering by customers elsewhere was behind the gloomy outlook. It is forecasting a 10% decline in sales at its wholesale business in the current financial year.