Posted by Barry Silverstein on October 25, 2010 02:00 PM
As the luxury goods market looks to rebound next year, we're already seeing some interesting jockeying for position.
Shares of Hermes and LVMH rose sharply today on news that LVMH had acquired as much as a 17 percent stake in the high-end luxury brand Hermes.
LVMH, a French conglomerate, already has ownership of iconic luxury brands in a variety of markets. In fashion and perfumes, the company owns Christian Dior, Donna Karan, Fendi, Givenchy, and Louis Vuitton; in jewelry and watches, De Beers, Hublot, and TAG Heuer; in wines and spirits, Dom Perignon, Hennessy, Krug, and Moet & Chandon.
Increasing its holdings in Hermes is a "friendly" move, not a takeover bid, says LVMH. According to the company, "The objective of LVMH is to be a long-term shareholder of Hermes and to contribute to the preservation of the family and French attributes which are at the heart of the global success of this iconic brand." 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 Shirley Brady on October 19, 2010 10:05 AM
"Who are you Peter?" is the theme of the 13th exhibition at the Espace Culturel Louis Vuitton in Paris, which invites the visitor to explore the myth of Peter Pan. Thirteen artists from around the world are featured in the just-opened exhibition, which explores the myth of the eternal child. For those who speak French, watch a clip with celebs at the opening (plus a behind-the-scenes peek) after the jump.Continue reading...
Posted by Dale Buss on October 14, 2010 09:00 AM
AOL and several private-equity firms are exploring making an offer to buy Yahoo, according to the Wall Street Journal, "devising a bold plan to marry two big Internet brands facing steep challenges." (The New York Times' take: not so fast.) Yahoo's shares soared this morning on the report.
Audi Q5, Cadillac SRX, Volvo XC60 and other "less sexy models" propel U.S. luxury auto sales.
Burberry sales rise, fueled by Asia.
BYD gets a setback in plant construction from the Chinese government.
Corona Light aims to be “most liked” brew on social media.
Edge shave gel launches “anti-irritation” campaign via Twitter.Continue reading...
Posted by Dale Buss on October 5, 2010 09:00 AM
Continental won't be part of Lincoln's immediate future.
Ford designs Amazing Race-type promotion for the new Focus.
Guinness World Records is helping brands dream up marketing stunts.
Marvel Entertainment takes the long view in promoting The Avengers, a movie not due out until 2012.
Mercedes-Benz relies on testimonials in new ads for the safety of its vehicles.Continue reading...
Posted by Barry Silverstein on September 1, 2010 03:30 PM
Here's something European luxury brands don't want to hear — fake designer goods may not be so bad after all.
According to a new study funded by the European Union and just published in the British Journal of Criminology, counterfeit goods have "greatly" improved in quality and seem to promote the brands they're trying to copy. The report concludes that people who buy counterfeits "would never pay for the real thing anyway."
What's more, according to David Wall, a professor at the University of Durham in England and the co-author of the report (dubbed "Jailhouse Frocks"), the real cost of counterfeit goods may be as little as one-fifth of the previously estimated losses.
"It's probably even less," he says. "There is also evidence that it actually helps the brands, by quickening the fashion cycle and raising brand awareness."Continue reading...
Posted by Abe Sauer on August 13, 2010 01:00 PM
Pizza Hut viral dance craze sweeps South Korea, wooing teens with with in Seoul. (above)
OkCupid dating site breaks down attractiveness of users based on camera and mobile phone brands: Panasonic > Canon > Nikon.
Denny's joins the ridiculous sandwich wars with a Cheese stick sandwich.
New York City transit authority relents and accepts ads referencing 9/11 (more background here).
McDonald's french fry ad crosses over, literally.
Playboy's iPad app disappoints with no-nudity policy (that's right: Hef's keeping the smoking jacket on).Continue reading...
Posted by Barry Silverstein on August 3, 2010 10:00 AM
Christian Louboutin is just one example of how luxury brands are being forced to react to counterfeiters. The maker of high-end shoes and handbags has "gone to war" on the Internet, listing those sites that sell knock-offs of its $600-and-up shoes in hopes that public shaming will stop some of the bleeding.
Other luxury brands are striking back, too. Versace recently won $20 million in damages in a case involving fake goods.
But the knock-off artists aren't going away. Instead, they're just lowering their sights. The New York Times reports that now, counterfeit brands are on the rise for such items as $295 Kooba bags and $140 Ugg boots instead of $2800 Louis Vuitton handbags. Continue reading...