Posted by Barry Silverstein on January 19, 2011 11:30 AM
Throughout the recession, the luxury fashion market took a major hit and luxury brands were happy to hold their own as existing luxury consumers backed off of extravagant spending. Interesting new data released by American Express Business Insights (AEBI) at a recent trade show sponsored by the National Retail Federation (NRF), prior to the recession, indicates the "active luxury spender" (most likely a Baby Boomer) was responsible for 68% of all luxury spending. When the recession hit, 25% of these consumers stopped spending.
Those defined as "occasional luxury shoppers" accounted for about 20% of the luxury spending, while "aspirational luxury shoppers" were responsible for 12% of luxury spending. However, it was the aspirational luxury shopper group that actually dominated the luxury shopper category — they were 70% of the total universe of luxury spenders — so their hesitancy to buy impacted luxury brands significantly.
Thankfully, during the current recovery, luxury fashion spending in the U.S. is not only rebounding, it is actually stronger than mainstream spending, says AEBI SVP Edmond Jay. Emerging from the recessionary shambles is a brand new demographic that AEBI calls the "Luxury Newcomer" — a web-savvy, discerning fashionista who knows her way around sites such as Gilt.com and relishes a good discount and interactive shopping experience.Continue reading...
Posted by Sheila Shayon on January 18, 2011 03:00 PM
Remember the first thing you bought online – a book, CD, DVD?
The thought of larger purchases was a dim shadow then, but e-commerce has defied conventional wisdom and people now buy everything from groceries, diapers, flowers, wedding dresses, cars, houses, wine and now… prescription glasses online.
Warby Parker has sold 20,000 pairs of glasses since launch last February, including its own branded frames as well as styles by Ray-Ban, Chanel, Prada, Ralph Lauren and Gucci. For every pair of glasses sold, a pair is donated to individuals who can't afford glasses (as outlined in the video above). Talk about a social vision.Continue reading...
Posted by Abe Sauer on November 12, 2010 02:30 PM
What's more strange, that Robert Downey, Jr. is the voice of Mr. Peanut, or that Mr. Peanut is now flesh and blood? (above)
From the Dept. of No Self-Awareness: Man calls out ad agencies for "pointless" rebranding campaigns, calling them "the equivalent of a scam." Man himself will continue to be a professional advertising critic.
Old Spice Guy + Anchor Man Ron Jeremy = Northstar Resort at Tahoe commercial.
Yale mocks Harvard, via Facebook (references).
Art Director Study Break: "Ridiculous Vintage Men's Magazine Covers."
Following the announcement from Gucci, Oakley and Calvin Klein will also be releasing snazzy 3D glasses.
BP should probably have Tony Hayward secretly assassinated. Continue reading...
Posted by Jennifer Vano on November 12, 2010 02:05 PM
Once the candy of young adults, social media is now becoming the meat and potatoes of valuable brands and value-oriented consumers. But it’s no longer enough to stick a logo, some boilerplate marketing copy and a handful of ads on your Twitter, Fourquare or Facebook page and call it a campaign. As social media becomes analogous with social reality, users want to – you know – socialize with their favorite brands the way they do with their friends: through open dialogue and unique, fun and mutually beneficial exchanges.
Welcome to the age of social commerce. Social media—specifically, a strategic social media presence—not only supports but also shapes consumer and brand behavior and increases brand and personal value. Why? Let’s break this down. You allow an entire network to review your Tweets about recent purchases, Tumblr posts about cool finds, or Facebook likes and dislikes. That network cares about what you have to say, which validates your opinions and amplifies your confidence, your I-have-something -to-add chops. It’s social currency and makes you a more desirable friend online and offline. Brands are starting to get it, and are giving consumers a reason to feel special and wanted via social media outlets. Continue reading...
Posted by Dale Buss on November 12, 2010 09:10 AM
Apple, Procter & Gamble and Unilever are among brand leaders in the next digital generation of customer engagement, a Capgemini study says.
Chanel, Gucci and Louis Vuitton rank as the most attractive luxury brands to Chinese consumers, a new study says.
Chase rolls out holiday promos.
Google expands product ads in search.
Honest Tea still prefers guerrilla marketing.
Kellogg plans launch of more low-cost products in India.
Lenovo to launch LePad tablet.
L’Oreal emphasizes digital and CSR in “new era.”Continue reading...
Posted by Abe Sauer on November 5, 2010 12:00 PM
Wonderful Pistachios' new keyboard cat spokesman is perrrrrfect — and certainly an improvement over Rob Blagojevich.
Thanks to Gucci, you can now see your low-brow 3D entertainment without losing any high-brow cool.
Reinventing a symbol of charity: "Pimp My Poppy."
Starbucks pours too-hot-tea lawsuit down the drain.
Michigan family not pleased with the "crazy New York City" story it brought home: Waldorf Astoria sued for bed bugs.
Methods for paying Hades ferryman Cahron: Old and busted: Two coins. The new hotness: Kardashian prepaid Mastercard. Continue reading...
Posted by Barry Silverstein on October 22, 2010 02:40 PM
Executives at such luxury brands as Burberry, Louis Vuitton, and Versace can breathe a sigh of relief. The annual luxury market study by leading consultant Bain & Company is bullish on high-end goods, predicting a strong 2011. According to Bain, sales of global luxury goods should break the 2007 record next year.
Not surprisingly, demand by Chinese consumers for luxury goods — some call it "label lust" — will drive the uptick, with growth of as much as 30 percent. Europe will see a 6 percent rise, while Japan will recover more slowly. The U.S. luxury goods market, which dropped 15 percent this year, may see a 12 percent increase in 2011.
Luxury goods marketers were positively giddy at the news. Santo Versace, chairman of the Italian fashion brand Versace and chair of Altagamma, an Italian luxury goods association, proclaimed, "In the first half of this year we talked about a light at the end of the tunnel. On the basis of the preliminary 2010 figures, we can confirm that positive trend."
The latest figures from high-end marketers seem to support the Bain forecast. LVMH, owner of such brands as Burberry, Gucci, Krug, and Louis Vuitton, enjoyed a 14 percent increase in third quarter sales. Burberry, also an LVMH brand, reported that in the first six months of 2010, sales in its Chinese stores were up 25 percent.
Not all luxury goods will see improvement, however; Bain predicts that luxury yachts will likely experience a "double digit" decline in sales. Overall, Bain said, leather bags, jewelry, shoes and watches would be the biggest risers with an expected gain of around 8 percent next year.
Posted by Barry Silverstein on October 13, 2010 12:35 PM
While much of the blame falls on China for producing and selling counterfeit goods, it's rampant and widespread. Despite actions taken by such luxury brands as Christian Louboutin, Louis Vuitton, and Versace, knock-offs of brand name luxury goods continue to be sold openly on street corners in major cities around the world.
Take Malaysia, for example. In Bukit Bintang, the well-known shopping district of the capital city, Kuala Lumpur, vendors at temporary stalls hawk fakes of such brands as Chanel, Burberry, and Gucci. Faux branded jackets, perfumes, wallets, watches, and other merchandise is available at a fraction of the cost of the real thing.Continue reading...