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Luxury brands must redefine the way they do business

Luxury brands must redefine the way they do business
There were times when China was the holy grail for global retailers. Logo-obsessed Chinese buyers seeking opulence were armed with cash fresh from the economic boom. Luxury retail brands flocked to the new market, with the result of 35% of sales for brands such as Omega, Harry Winston and Balmain coming from Greater China, according to estimates by Exane BNP Paribas. The region is responsible for a whooping 25% of sales at Burberry and 20% of sales at Prada. The strategy of growth by opening stores in emerging and existing markets is neither new nor unique to luxury retail. It is a reflection of the modus operandi of the industrial age, where scaling growth is linked to incessant production. The logic of this is that if consumers aren’t buying your stuff, create more stuff. From 2008 to 2011, there was a 42% spike in the number of luxury retail stores in Asia, compared with a 28% rise in Europe and 5% rise in North America, according to Lux Redux report by Boston Consulting Group.

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Luxury Brands Must Develop Their Customer Experience To Survive Luxury retailers must focus on providing a rounded customer experience, rather than simply flogging goods, if they are to survive the ongoing recession. According to a new report by The Future Laboratory, commissioned by the property company Grosvenor, has found there are five key areas luxury brands must improve to keep their customers happy. 1) Providing one-on-one experiences

Louis Vuitton, Chanel Rise as Prada Falls in Luxury Brand Survey Louis Vuitton and Chanel were the only big luxury brands to increase in value last year as the industry grappled with slowing sales in China and Russia, research company Millward Brown said Wednesday in the 2015 BrandZ study. Vuitton gained 6 percent to $27.4 billion, placing LVMH Moet Hennessy Louis Vuitton SE’s biggest brand atop the luxury ranking for the 10th straight year. Chanel’s value rose 15 percent to $9 billion, propelling it to fourth in the list behind second-place Hermes and Kering SA’s Gucci. The value of the top 10 luxury-goods brands -- based on interviews with more than three million consumers and an analysis of companies’ performance -- fell 6 percent, or $7.1 billion, to $105 billion as companies from Prada SpA to Cartier declined. Spending on lavish gifts has fallen in China as the government clamps down on corruption, while Russia’s shoppers are suffering from the ruble’s depreciation and sanctions tied to the conflict in Ukraine, Millward Brown said.

Fast fashion online business have made a fortune for owners of businesses like Zara — Quartz In its first seven years of existence, Uber has irked cities, flouted regulators, and petrified whole industries. It has yet to make money but is worth a fifth more than BMW and almost a third more than General Motors, both the owners of tons of futuristic technology, tens of billions of dollars in capital equipment, and big profits. In recent deals resembling famous speculative bubbles, rich investors eager for a piece of this juggernaut have poured hundreds of millions of dollars into custom funds that provide exposure to Uber but no equity or financial disclosure. Which is to say that investors have made a one-way, uber-bullish bet on Uber, forecasting that the company will be at the center of an utter transformation of our collective lifestyle. If not everyone is betting on it, they’re at least not betting against it. Even if you wanted to short Uber, it is generally thought impossible to do.

Brands must consider consumer preferences during holidays Harrods celebrated the holiday season in 2012 NEW YORK – Luxury consumers have significantly different preferences from mainstream America and will conduct holiday shopping in a different manner, according to the founder of the Shullman Research Center at the Luxury Retail Summit: Holiday Focus 2015 on Sept 16. Retailers can capitalize on these preferences by specifically targeting their marketing efforts to appeal to luxury consumers. Understanding when consumers spend, what they buy and where they make purchases will allow retailers to have a successful holiday season this year.

Raf Simons Confirmed At Calvin Klein After many months of speculation, Raf Simons has finally been confirmed as the new chief creative officer of Calvin Klein. Calvin Klein took to social media on Tuesday morning to confirm the news. "The arrival of Raf Simons as chief creative officer signifies a momentous new chapter for Calvin Klein. Not since Mr. Klein himself was at the company has it been led by one creative visionary, and I am confident that this decision will drive the Calvin Klein brand and have a significant impact on its future. Raf's exceptional contributions have shaped and modernized fashion as we see it today and, under his direction, Calvin Klein will further solidify its position as a leading global lifestyle brand," said Steve Shiffman, CEO of Calvin Klein, Inc.

Luxury Brands Must Credit Craftspeople MUMBAI, India — Whether its Lanvin, Gucci, Chanel or Alexander McQueen, every label worth its shine has, at one time or another, dipped into India’s vast reservoir of craftsmanship. India is the most ‘hand-skilled’ country in the world, employing approximately 34.5 million artisans across the nation. However, this community is predominantly rural and remains largely un-corporatised. And, today, it is at risk from an increasingly ruthless economic order which rewards mechanisation and massification over made-by-hand skills and ingenuity. A textile journey across India should be on the bucket list of any aesthete.

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. Yves Saint Laurent Has Been Accused of Copying: Is the Role of Creative Director's Changing?  Saint Laurent, under the creative direction of Hedi Slimane has just been accused of copying the fast fashion retailer forever21, highlighting a burgeoning problem in the business of fashion that creative directors are far more removed from the creative process than we think. High-street brands like Forever 21 are accustomed to finding themselves associated with copying, but now the shoe is on the other foot and high fashion is getting its ideas from the high street, after fashion blogger and Marie Claire contributing editor Nicolette Mason noticed a lipstick print dress in the Saint Laurent's Fall/Winter 2015 collection almost identical to a dress from Forever21, the first to sell the lipstick dress design a few years back. FOREVER 21 (RIGHT) SAINT LAURENT, (LEFT)

5 things you probably didn’t know about the fashion industry Mark Twain once wrote, “Clothes make the man. Naked people have little or no influence on society.” Whether we’re one of the millions of people employed by the sector or just someone who likes to shop on Fifth Avenue or in second-hand stores, we are all touched by the fashion industry. Before the early autumn ushers in fashion weeks around the world, here are five things about the global fashion industry you probably didn’t know: The fashion industry generates up to $2.5 trillion in revenue a year 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. Many fashion brands, mocked for their inability to move with the web because of a fear of accessibility, are no longer fighting the flow. Through their embrace of social media and social commerce, fashion brands are now innovating and profiting from their online marketing strategies. Luxury and premium brands are starting to lead the way for all retailers looking to connect with their customers and build online revenue channels.

Global fashion industry statistics - International apparel Total trade of clothing and textiles: 726 billion dollars The most traded apparel and textile products are non-knit women’s suits, knit sweaters, knit T-shirts and non-knit men’s suits. Non-knit women’s suits: 54.6 billion dollars, 7.5 percent Knit sweaters: 52.8 billion dollars, 7.3 percent Non-knit men’s suits: 43.4 billion dollars, 6 percent Knit T-shirts: 36.9 billion dollars, 5.1 percent Knit Women’s suits: Knit women’s suits: 28.2 billion dollars, 3.9 percent Light rubberized knitted fabric: 23.9 billion dollars, 3.3 percent Synthetic filament yarn woven fabric: 20.9 billion dollars, 2.9 percent Raw cotton: 18.9 billion dollars, 2.6 percent Non-retail synthetic yarn: 18.8 billion dollars, 2.6 percent China is the largest exporter of apparel in the world, it has exported for 265 billion dollars in 2014. India is the second largest exporter with 38.7 billion dollars of clothing exports.

Louis Vuitton to Stage Instagram-Friendly ‘Series 3’ Exhibition in London LONDON, United Kingdom — From 21 September, a Brutalist former office block neighbouring London’s Somerset House will be enveloped in a fantastical confection of style, craft skills and technical spectacle, all part of a clever marketing display designed to evoke the creative soul and manufacturing nous of Louis Vuitton. In a break from the archive-based historical displays through which the French brand once reinforced its heritage, each season since the appointment of creative director Nicolas Ghesquière in 2014, Louis Vuitton has marked the arrival of its collections in retail stores with a nomadic exhibition. ‘Series 1’ for Autumn/Winter 2014 showed in Shanghai and Tokyo; ‘Series 2’ for Spring/Summer 2015 travelled between LA, Beijing, Seoul and Rome.

Michelle Obama, Jackie Kennedy, and the Best Fashion Moments in American Political History At the Democratic National Convention on Monday night, First Lady Michelle Obama took the stage to deliver a rousing argument for uniting the party and casting a vote for Hillary Clinton. Her wardrobe choice—a sapphire blue cap-sleeved dress by American designer Christian Siriano—delivered a clear message, too. She picked the party’s color, matched perfectly to the Convention backdrop, as if to say: This isn’t about me.