Posted by Mark J. Miller on September 14, 2012 04:51 PM
Since 1856, Burberry has been serving the clothing needs of British and then global big spenders. At the start of the 21st century, the company’s signature plaid is readily identifiable and highly regarded as a symbol of the brand's, and indeed British, craftsmanship.
Burberry has remade its London flagship — which has housed a radio station and a livery stable, among other things, over the last 200 years — into a 44,000 square foot, digitally-enhanced retail experience chock full of tech innovations, while maintaining the bespoke elegance for which the brand is known.Continue reading...
Posted by Barry Silverstein on September 13, 2012 05:03 PM
It may not yet be a major earthquake, but there seem to be rumblings that luxury goods are undergoing some sort of seismic shift.
As Fashion Week was at its height in New York, instead of watching hemlines fashionistas were watching stock prices, as luxury apparel maker Burberry saw its shares drop over 20 percent Tuesday on issuing its first profit warning since 2008. It was an especially bitter pill to swallow for a brand that in January was named "International Retailer of the Year" and, in April, took the mantle of greatness from a bankrupt Aquascutum.
Bloomberg Businessweek labeled Burberry's slide as "an end to a three-year rally in the luxury-goods industry as wealthy shoppers cut back on past indulgences." While Burberry's report may have helped pull down shares of luxury giant LVMH and other luxury brands such as Prada and Richemont, it does appear demand for luxury goods has been softening recently.
Harry Winston indicated last week that there was lower interest in its luxury products, and last month, Tiffany projected lower profits for the year. Stacey Cartwright, Burberry's CFO, told Bloomberg Businessweek that she had spoken with other luxury goods marketers. "We know we are not alone in terms of what we've seen in the last couple of weeks," she said.Continue reading...
Posted by Barry Silverstein on September 5, 2012 01:04 PM
When French luxury brand conglomerate LVMH acquired a minority share of 127-year old family-owned French luxury brand Hermes in late 2010, it was hardly a match made in heaven. LVMH head, billionaire Bernard Arnault, commented to the New York Times in March 2011, "We are a totally peaceful investor, but as a leader in the best quality products in the world, we believe we can bring a certain savoir-faire to improve the functioning of their business."
Foreshadowing what was to come, however, Hermes CEO Patrick Thomas responded, "We don't want to be a part of this financial world which is ruining companies and dealing with people like they are goods or raw materials. It's not a financial fight, because we would lose that. It's a cultural fight."
That "cultural fight" has now flared up into a renewed legal battle, as Hermes recently filed suit against LVMH for "the way in which LVMH entered the capital of Hermes." The suit also alleges insider trading and manipulation of the share price, reports the Financial Times. LVMH has counter-sued for defamation.
At the heart of the battle is the independence of the Hermes brand itself.Continue reading...
Posted by Barry Silverstein on June 21, 2012 12:09 PM
Maybe we haven't seen the return of the roaring global recovery everyone has hoped for. The U.S. economy is sputtering, and the European continent isn't looking very bullish at the moment. But none of this seems to be terribly concerning to the luxury hotel market. There has been a spate of recent openings — hotel extensions of luxury brands — to prove it.
Bulgari, which operates a luxury hotel in Milan, a luxury resort in Bali, and restaurants in Tokyo, has just opened the doors of its fourth Bulgari Hotel, with its latest five-star property opening in a chi-chi pocket of London.
Located in the city's prestigious Knightsbridge section, its well appointed rooms (such as the one above) are opening just in time to take bookings for the London 2012 Olympic Games. Bulgari gushes about the property: "It is a perfect expression of the Bulgari aesthetic of timeless glamour. Innovative artistry and a lavish use of precious marble and silver blend harmoniously, exuding an understated elegance. The quality of the service, magnificent elements such as the spa, pool and private screening room, and the distinguished location beside Harrods and Hyde Park all contribute to an uncompromising sense of excellence."Continue reading...
Posted by Shirley Brady on June 5, 2012 06:57 PM
"I believe excellence has a lot to do with being able to really anticipate customers' needs, and to then transform that deep understanding into the basis for an impeccable execution in terms of service.This, along with quality and distinctiveness, is what luxury should ultimately be about.
Now more than ever before, luxury means self-indulgence and self-reward. And this can be embodied by a made-to-order item or by an absolutely exclusive service or treatment. Luxury has gained a more individual significance, ideally allowing us to choose his, or her, own meaning and way of experiencing it: and that can be interpreted as a desirable item as well as a state of extreme comfort."
— Francesco Trapani, CEO Bulgari, from an interview by Manfredi Ricca and Rebecca Robins featured in their new book, Meta-luxury: Brands and the Culture of Excellence, now available in the U.S. from Palgrave Macmillan
Posted by Sheila Shayon on June 4, 2012 02:12 PM
New York's Parsons The New School for Design, PPR Group’s Luxury and Sport & Lifestyle premium brands, and The Fancy website have partnered so that Parsons students can vie for an internship with one of PPR's stable of 16 luxury brands. Lucky (meaning talented) Parsons students will be able to intern at PPR-repped brands including Gucci, Bottega Veneta, Yves Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Stella McCartney, Sergio Rossi, Boucheron, Girard-Perregaux, JeanRichard, PUMA, Volcom, Cobra Electric and Tretorn.
Open to 2012 seniors of Parsons BFA Fashion Design program, the theme of the competitions is “Empowering Imagination” and students’ designs will be featured on TheFancy.com with winners showcased at Barney’s New York Madison Avenue store. The internship will run for 1 or 2 months in Paris, London, New York, Boston, Rome or Milan and an expense-paid internship of up to $10,000 with the PPR brand of their choice.
“Partnering with PPR and The Fancy will provide our students with an international perspective, thus positioning them as design thinkers poised to lead fashion globally,” said Simon Collins, Dean of the School of Fashion at Parsons, above.Continue reading...
Posted by Mark J. Miller on April 27, 2012 03:10 PM
Burberry has shown off its ability to use digital technology to spread its brand name around in the past by hosting live 3-D streams of Burberry fashion shoes, allowing in-store customers to shop from tablets, and creating animated GIFs of how different collections look.
But the iconic British trench coat maker has outdone itself with the grand opening of the brand’s largest store in the Asia Pacific. For its latest opening, this week in Taipei, the brand's digital maestros made it (virtually) rain for the launch of Burberry World Live.Continue reading...
Posted by Sheila Shayon on April 9, 2012 04:07 PM
Viral games Angry Birds and Words With Friends are “prime spots for luxury mobile marketing” according to a recent Luxury Institute study.
The study, conducted in early 2012 among respondents reporting an average net worth of $2.8 million, reveals that of the 67% of high net worth individuals who shop via mobile, 63% made purchases in the past 12 months and spent an average of $628.
Of the 60% of luxury consumers in the US with smartphones, 28% own an iPhone, 22% an Android and 16% a BlackBerry. About 73% of them use apps at least once a day, and 80% have downloaded an app.
“Apps are becoming ubiquitous, so it’s what we do with them that make the experience more extraordinary that will make the difference,” said Milton Pedraza, CEO of the Luxury Institute. “How the app is being used by the consumer or to contact someone who represents the brand is now where the real opportunity lies.”
The most frequently downloaded apps for millionaires include Angry Birds, Facebook and Words With Friends.
However, since millionaires prefer the in-store experience, “luxury brands have to start creating humanistic experiences on mobile. Mobile applications are the most common form of engagement for affluent consumers, indicating that luxury marketers need to step up the in-app experience,” the report recommends. Continue reading...