Posted by Barry Silverstein on November 13, 2013 04:54 PM
The global luxury market is set to see its slowest growth this year since 2009, with the Asian market in particular contributing to the slump. French luxury brands Gucci and Louis Vuitton, for example, recently reported drops in Chinese sales as consumers showed a preference for "logo-free" clothing and accessories.
In a turn of events, it's the US that is expected to be a strong luxury market over the next five years, according to a new study by Departures magazine in association with Ledbury Research. Top luxury CEOs ranked North America as the most important growth market, followed by East Asia, Western Europe, Eastern Europe, and Central/South America. Despite China's blistering economic growth in recent years, it is actually the US that created 94 percent of the world's new millionaires over the past year, according to Credit Suisse.
But some of the more intriguing recent data regarding the global luxury market may be coming out of India. A new report published by the Confederation of Indian Industry and IMRB International, a market research firm found that over the past three years, the Indian luxury market has grown around 15 percent, with the highest interest in luxury products as opposed to luxury services. Driving that growth is India's "Closet Consumer."Continue reading...
Posted by Sheila Shayon on November 4, 2013 02:47 PM
The latest project from Gucci's Chime for Change initiative is challenging female techies to participate in Chime Hack—an effort that will serve to create mobile apps that support girls and women around the globe.
With help from Twitter and San Francisco-based female tech community, Women Who Code, the event following San Francisco's TEDWomen 2013 will include Facebook’s Andrew Bosworth, Twitter’s Dick Costolo, Xiaomi’s Hugo Barra, Google’s Susan Wojcicki, and Phil Wise and Annie Fox of Hearst Magazines.Continue reading...
Posted by Barry Silverstein on October 30, 2013 02:47 PM
Gobal luxury brand conglomerates such as Kering, previously known as PPR, the parent company to brands such as Gucci, Yves Saint Laurent, and a slew of other high profile brands, are a double edged sword: They can gain profits from a diverse brand portfolio, yet they can see sales sink when the luxury market is sluggish in a particular region of the world.
At the moment, the region in question is Asia, and more specifically China. While China is still consuming luxury goods, it seems that "Chinese shoppers are cutting back on designer duds, leather handbags, and pricey watches" according to the Associated Press. In fact, sales of luxury goods in China are expected to limp along and grow just 2.5 percent this year—a far cry from the double digit growth of a few years ago.
Chinese publication Jing Daily confirms that, "Chinese consumer tastes continue to quickly shift toward logo-free products and niche brands. ...The rise of popularity of niche designer labels in contrast to major logo-focused brands was exhibited this fall in the openings of three major department stores in mainland China..." Also a likely contributor is China's national austerity drive, which has put a negative connotation on luxury goods and experiences of all kinds.Continue reading...
Posted by Abe Sauer on October 25, 2013 03:47 PM
China is the second largest economy in the world and every significant brand's future is impacted by its growth (or collapse)—but who's got the time?! Here's the week's reads that will make you look like a keen China observer in case you find yourself immersed in a cultural conversation.
This week: clean air job perks… "vulgar" foreign TV… CCTV goes after Samsung… 361° breaks out Kevin Love… Big Bang Theory art… iPad Air's chances… LVMH's strategy… Citroen branded content… Lane Crawford… Krispy Kreme in Taiwan… Chinese kids excelling at cigarette brand recognition... and more.Continue reading...
Posted by Barry Silverstein on September 25, 2013 03:52 PM
Luxury auto brands are well aware that their target audience is the upscale, discriminating buyer with disposable income—the same buyer, in fact, who is attracted to the high-end fashion world and who wants an increasingly personalized, exclusive retail experience.
That's why the latest trend has luxury auto brands expanding into retail—even putting their brand names on non-automotive luxury products.
Bugatti, for example, unveiled an exclusive apparel and accessories collection last week at Milan Fashion Week consisting of two lines, "Ettore Bugatti," carrying an "EB" monogram, and "Extreme Performance," carrying the Bugatti logo. Included in the collection is an exclusive blue crocodile skin handbag for women, the shape of which is said to be inspired by the Bugatti's front grille. Bugatti will open as many as 35 exclusive boutiques around the globe in the next five years to sell its collection. In addition, Bugatti introduced "Tailor Made/Bespoke" for customers only—an exclusive program in which custom-made branded products are created to a customer's specifications.Continue reading...
Posted by Dale Buss on July 26, 2013 09:33 AM
Samsung reports soaring profits on smartphone sales.
GlaxoSmithKline names new chief in China amid bribery probe.
Apple still tops consumer brands.
A&P goes on auction block.
Activision Blizzard buys back most of Vivendi controlling stake in company.
Acura and Porsche lead in evaluation of websites.
Amazon swings to loss as expenses grow.
American Airlines and US Airways offer antitrust concessions.
AT&T nabs naming rights for Cowboys Stadium.
Daimler takes 5 percent stake in Aston Martin in technical partnership as CEO Dieter Zetsche faces pressure to catch Audi and BMW.
Facebook sees share price come within striking distance of disappointing IPO price.Continue reading...
Posted by Sheila Shayon on May 16, 2013 01:49 PM
Having conquered the internet, video and now launched into music, Google is moving into shopping through YouTube's new "channel gadget."
"To shorten the path to purchase and translate video views to sales, today we’re introducing a new channel gadget on YouTube that will enable consumer goods brands to connect consumers directly with retailers throughout the entire YouTube experience," Google wrote in a blog post. "This new channel gadget will enable shoppers to seamlessly move from browsing how-to videos and featured products to finding which retailers carry them, check availability, compare prices and make a purchase, all with fewer clicks than today."
Google's first client is Unilever’s Tresemmé, which already has a robust YouTube channel in place featuring celebrities and style setters. Now users can click on the products in demo videos for purchase information, a perk that will only appear on brand channel pages.Continue reading...
Posted by Mark J. Miller on May 6, 2013 06:33 PM
Gucci and Guess have been tussling over trademarks for years, but the Italian fashion house took a hit from its American counterpart on its own turf last week.
The Court of Milan turned out an 83-page ruling that “rejected all claims” that Gucci had filed against Guess, according to a press release. Not only that, “the Italian Court has ordered the cancellation of certain of Gucci’s diamond pattern, G logo, and ‘Flora’ pattern trademarks” along with its “rights in a ‘Square G’ logo.”
This is a big blow to Gucci, which had received “minimal monetary damages and narrow injunctions on a handful of logos” in a similar case against Guess in New York that was decided last year. That “minimal” amount added up to $4.66 million, though Gucci had hoped to make a $120 million payday. This time, Guess scored a victory that allows it to use its famed Quattro G logo pattern without worry of infringing on any trademarks.Continue reading...