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Luxury Daily

Luxury Daily
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Instagram, Twitter and Pinterest users ignore the ads - Fortune In recent months, it feels like the advertising world’s worst fears have erupted into a full-blown panic. Use of ad blockers is running rampant (last week, Howard Stern introduced ad blockers to a whole new mainstream audience). Click fraud is even more rampant. Fears of cord cutting have finally begun to affect media stocks. Social media has positioned itself as the savior to these problems, because ads on Facebook, Twitter, Instagram and Pinterest mimic the activity that regular users are already doing – they just happen to be sponsored. But a new study shows that, ten years into the social media phenomenon, the noise has increased, but engagement has decreased. According to Forrester, brands are using more social media than ever. The rates at which users interact with branded social media posts has always been low, but Forrester’s 2014 study and this year’s, they’re looking even worse.

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. 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.

d99604ba29a1702201914c6aa90f0b68 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.

5606b6c3bc2a703b14dc442fbeee2578 20 Predictions for the Luxury Goods Industry in 2015 - Luxury Society - Analysis Could Michael Kors issue a profit warning in 2015? 2015 will be another challenging year for the luxury goods industry. In particular, the economic instability, social unrest and armed conflict buffeting formerly fast-growing emerging markets will further drive up the strategic importance of the developed markets. This will create new risks, but opportunities too. “ Economic instability & social unrest will buffer formerly fast-growing markets ” The Movers and Shakers Mulberry will report its best financial results in more than three years The company is getting back to what it does best: affordable luxury. Burberry’s profits will weaken as the value of the British pound strengthens The company’s fixed costs are in pounds, but its revenue is exposed to a wide range of volatile currencies. There will be a big shareholder change at Hugo Boss The brand’s shift from a wholesale to a retail model is paying off, but we believe key shareholder Permira is losing patience. The Markets The Trends

Top 10 luxury brand digital campaigns of Q1 Fabergé 3D window display at Harrods Digital campaigns are an integral element to any brand’s marketing strategy, and many luxury brands introduced new projects to expand their digital offerings in the first quarter of 2015. In an increasingly technology-oriented world, it is vital for brands to provide consumers with easily navigable Web sites and ecommerce platforms. Consequently, many brands updated their Web sites and ecommerce features this quarter, in addition to using digital to create unique marketing campaigns to appeal to consumers. Here are the top 10 digital campaigns from the first quarter of 2015, in alphabetical order: Promotional image of Giorgio Armani for #Atribute Giorgio Armani’s microsite Italian fashion label Giorgio Armani invited consumers to celebrate its 40th anniversary with the brand through a digital campaign. For #Atribute, Armani created a dedicated microsite, which launched March 16 and would then be updated with new weekly themes for the following 40 weeks.

Luxe Strategy: Luxury Brands Using Social Media | WHY THIS WAY 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. Ogilvy Digital 360’s Rohit Bhargava and Forrester Research Analyst Jeremiah Owyang recently compiled better practice recommendations for luxury brands venturing into the social media arena. Bhargava’s and Owyang’s practices are starting points for luxury retailers who are contemplating a venture into social marketing. Can luxury retailers venture into social marketing without losing their prestige, aspirational values and sophistication? In order for luxury brands to distinguish themselves diluting their brand, Owyang suggests that luxury brands: 1. 2. 3. 4. 5.

fortune Few things can bring on dismissive eye-rolling in a sophisticated consumer like a luxury-goods giant talking about social responsibility and sustainable production. Inevitably, suspicions of ‘greenwashing’ and token gestures are quick to surface. Yet something of substance does seem to be happening. At one end of the spectrum, luxury powerhouses such as the Kering group, LVMH, Burberry and Hermès are beginning to integrate sustainability strategies into the mechanics of their businesses; and at the other, a clutch of innovative brands is emerging that has successfully fused ethical values with smart design. As our demands for transparency increase, sustainability – what used to be seen as a dry, technical issue involving complex studies of biodiversity and supply chains – is even becoming sexy. That investment purchase could now be a positive acquisition that safeguards the environment rather than destroys it. Daveu knows there are no quick fixes.

What does the rise of digital marketing mean for luxury brands? | Marketing luxury goods (Feb 15) 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. “The amount of times people actually go to a car dealership has diminished. “We do no big bulk emails,” said Schwab.

Beyond the bling: the most pointless luxuries ever | Art and design Try to imagine a hat made out of golden fleece, a fleece very like the one that Jason brought back from Colchis. The gold has been spun into the finest of threads, one-fifth of a human hair in diameter, before being woven and braided into a close-fitting cap that looks as if it belongs to a particularly flashy Cossack. The cap itself is magnificent, but it is the rim that makes it mythological. Constructed from short strands of golden wire, the effect is a pelt of fiery fur. It took Italian metallurgist-artist Giovanni Corvaja 10 years to develop the techniques that persuaded 1.5kg of gold to do his bidding, to bend without breaking. Then it took him another two years, working 80 hours a week, to weave and braid the hat itself, which is modelled on one of Peter the Great’s crowns. The golden fleece hat is just one of the many remarkable 100 or so objects in What Is Luxury? Take the golden hat. These contrasts are similarly alive in Joris Laarman’s Positive Mould Bone Chaise.

Hermes second-quarter sales boosted by Japan | Fashion Hermes, maker of the £50,000 crocodile skin Birkin bag and the £195 keyring, has weathered the downturn in demand for luxury goods in Hong Kong, unveiling a 9% surge in first-half revenues. Designer retailers have reported a collapse in demand from the key Hong Kong market since the democracy demonstrations earlier this year, but wealthy Chinese shoppers have taken their business elsewhere, and have been taking advantage of exchange rate fluctuations to buy at lower prices in Japan and Europe. Hermes said its performance was boosted by Japan, where it has made improvements to its shopsand revenue there soared 26.5% in the second quarter when measured at constant exchange rates. Paris-listed Hermes, which saw off a takeover campaign from rival luxury business LVMH last year, reported first-half sales of €2.3bn (£1.7bn), up from €1.9bn last year. “Japan generated an excellent performance over the first six months of the year, thanks to its selective distribution network,” the company said.

Jane Birkin asks Hermès to remove her name from handbag after Peta exposé | Fashion British singer Jane Birkin has asked luxury manufacturer Hermès to remove her name from its crocodile-skin handbag after learning of the “cruel” methods used to make the famous accessory. Costing $10,000 per bag (though the crocodile version can go for up to $300,000), the Birkin bag is a symbol of wealth and is much-loved by celebrities, but the version made out of crocodile skin has attracted the ire of animal rights activists. “Having been alerted to the cruel practices reserved for crocodiles during their slaughter to make Hermès handbags carrying my name ... I have asked Hermès to debaptise the Birkin Croco until better practices in line with international norms can be put in place,” Birkin said in a statement. Animal rights group Peta (People for the Ethical Treatment of Animals) recently published an exposé on crocodile farms from Texas to Zimbabwe where the animals are allegedly crammed into barren concrete pits before being “crudely hacked” to death.