Luxury brands look to lifestyle. CÉLINE. Luxury faces tough quest for next big market. The author is a Reuters Breakingviews columnist.
The opinions expressed are her own. With China demand slowing and a weaker yuan, luxury brands face less fashionable growth. Since the currency’s surprise devaluation on Aug. 11, shares of brands like LVMH and Swatch who rely heavily on China’s bauble-hunters have fallen 13 percent and 14 percent respectively. Finding the right mix of scale, rising incomes and inequality for luxury’s next hotspot will be tricky.
China has gone from a blip on luxury’s radar 15 years ago to the source of a third of global sales. The conditions for a luxury growth story are pretty specific. India has many of the same conditions. Brazil has also lost appeal as its currency has fallen in value. The most promising market might not be emerging but re-emerging. How Not to Extend Your Luxury Brand. In 1972, Diane von Furstenberg created the multifunctional wrap dress, which captured the imagination—and the pocketbooks—of a generation.
By 1976, she had sold more than five million of her designs and was hailed by Newsweek as “the most marketable woman in fashion since Coco Chanel.” Von Furstenberg didn’t stop there: She developed a line of beauty products and fragrances and stamped her name on everything from luggage to eyewear to jeans to books. The strategy worked at first. Von Furstenberg’s premium name generated high margins for every product it adorned, regardless of the category. But a few years into this heady growth, the brand lost momentum. What happened? What does the rise of digital marketing mean for luxury brands? The rise of digital marketing is changing the way luxury brands engage with customers, and traditional companies must embrace what is now possible in today’s connected and mobile world or be left behind.
“The luxury industry is at a turning point,” said Chris Moody, creative director at brand consultant Wolff Olins, speaking at a seminar hosted by the Guardian and held in association with Harrods Media. An invited audience joined industry experts to debate the risks and creative opportunities for luxury brands enabled by digital technology. Digital interaction was a feature of the event itself, as audience members participated through an iPad app, submitting questions and voting on which ones should be addressed by the panel. The automotive industry is an example of the profound change wrought by digital, said Laura Schwab, marketing director at Jaguar Land Rover.
Digital Marketing Strategies of a Luxury Brand. Researchers dig into why global consumers buy luxury goods. 10:13 a.m., Feb. 6, 2013--A young woman in Tokyo pays 243,000 Yen for a Louis Vuitton suitcase emblazoned with the company’s iconic monogram.
A continent away, another woman purchases the same suitcase at the company’s store on New York’s 5th Avenue for the equivalent price in dollars, $3,000. Why? What motivates their purchases? And, do those motivations hinge on their location? That is precisely what University of Delaware researcher Jaehee Jung and her collaborators at universities in nine other countries sought to answer. Despite the glum worldwide economy, luxury goods are selling well. In the U.S. it’s about hedonism. “American consumers generally buy goods for self fulfillment, rather than to please others,” she said.
Jung surveyed American college students. Why Do We Buy Luxury Brands—and How Do They Make Us Feel? From Givenchy and Alexander Wang, Competing Visions of New York. Photo On Sept. 11, as the sun set over the Hudson and bathed in silver and rose, Givenchy held a fashion show on Pier 26, on the far western edges of TriBeCa, in the shadows of the skyline.
The decision, when first announced, seemed tone deaf. Luxe Strategy: Luxury Brands Using Social Media. Louis Vuitton - Ad Campaign How Should Luxury Brands Engage in Social Media?
This past week, Women’s Wear Daily released an extensive recap of the WWD Luxury Forum. The consensus among luxury professionals is that luxury brands and retailers need to build solid marketing foundations online and those foundations (based off of social media) should focus on building communities and keeping audiences engaged. British luxury goods market set to double. The British luxury market is in rude health.
In fact, it is predicted to practically double in size from 2013 – making it worth £51 to £57 billion by 2019. This intelligence comes as the result of a report conducted by Frontier Economics for British luxury trade group Walpole which has the UK's high-end and cultural industries growing at around 7.8%. The figures comprise those taken from a range of luxury brands across fashion, accessories, jewellery, timepieces, premium beauty, automobiles, wines and spirits – not least British luxury behemoths Burberry and Rolls-Royce.
The last set of data recorded in 2013 had sales within these areas totalling £32.3 billion. This forecast is extremely positive news for the industry, especially in view of decreased demand for luxury goods in the Chinese market due to its economic slowdown, and comes notwithstanding the release of weak sales figures from Burberry. Transgender Models Strike A Pose In New Barneys Ads, Catalogs: PHOTOSNewNowNext. By Eric Shorey 1/30/2014 Valentijn (on left) wears Giorgio Armani.
Ryley (center) wears Armani Collezioni. Leonard and Gloria wear their own clothes. Photo © Bruce Weber. Barneys has taken a progressive step forward with its new ad campaign and catalogs: Shot by legendary photographer Bruce Weber, “Brothers, Sisters, Sons & Daughters“ features some 17 trans men and women sporting high-end fashion available at the luxe retailer. How Premium Fashion Brands Are Maximizing Their Social Media ROI. Social media and digital technology have forever changed the retail industry. In 2011, brands and retailers have reached a tipping point, digital innovations have decentralized commerce, and real-time consumer demand for designer merchandise has forever changed retail production cycles.