Posted by Barry Silverstein on October 3, 2012 12:06 PM
A once-in-a-decade occurrence in China, the overlap of Chinese National Day and the Mid-Autumn Lunar Festival, is giving Chinese consumers a rare eight-day period with no work or family obligations. As a result, Chinese tourists are traveling in China and flocking to other areas, including Hong Kong (now in mourning following a ferry crash that killed 38 holiday revelers) and Europe.
While less than three percent of the Chinese have a passport, that number is rising 20 percent each year, according to Reuters. That means the current travel period is likely to be dwarfed by long-term prospects for Chinese tourism. It's true that China's economy has slowed along with the domestic appetite for luxury, but a segment of the population is decidedly well-heeled, and they still love to travel and shop.
It's certainly not stopping brands from pushing ahead in China — Louis Vuitton recently opened a flagship in Shanghai, and Ralph Lauren just opened five stores in China in the past two weeks, as David Lauren, the brand's EVP of Advertising, Marketing & Corporate Communications, told the New York Times' Andrew Ross Sorkin in a discussion at the Interbrand/New York Stock Exchange 2012 Executive Marketing Summit on Tuesday.Continue reading...
Posted by Mark J. Miller on September 25, 2012 05:16 PM
The most populated country in the world has been, until recently, perceived to be a hotbed of conspicuous consumption. Luxury brands rushed in to fill the void and make a bundle. Vuitton, Prada, Burberry — you name it, you could buy it in China. And consumers were happy to show off their ability to buy.
But suddenly things have changed. The tap has been turned off and many of the luxury brands of the West that flooded China are now sitting and waiting for consumers to get back into the spending mood again. With all the consternation over Burberry's lull in its China growth, it's easy for luxury to get rattled.
Prada, however, is trying to keep its investors, employees and calm about what's going on in the Mainland. "I think we must stay calm and be less hysterical. I don't see such a dramatic market," commented Patrizio Bertelli, Prada’s CEO, according to Reuters. "We think that considering all markets at the same level is wrong. We must accept markets' diversity and adapt to different needs and traditions." In effect, Keep Calm and Brand On.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 Mark J. Miller on June 25, 2012 01:26 PM
With 32 days before the London 2012 Summer Olympic Games kick off in London....
Official sponsor McDonald's UK offers sneak peek at designer Wayne Hemingway's sustainable, Mad Men-inspired uniforms that will debut at its biggest restaurant (if for only six weeks), which is now under construction at the London Olympics Park:Continue reading...
Posted by Dale Buss on June 8, 2012 09:03 AM
Apple will use Baidu search engine on phones in China and gets on fast track in court to block Samsung Galaxy phone as iPhone 5 speculation mounts ahead of WWDC, while marketing head Steve Schiller gets a Bloomberg Businessweek profile. Also, Apple will pay $2.5 million to settle false advertising suit in Australia over 4G iPad claims.
Audi plant expansion tests ability to maintain quality.
Boeing hits milestone on 787 Dreamliner.
Burger King plans to expand in Russia.
Cannes Lions to honor Dan Weiden of Weiden+Kennedy.
Carnival Cruise loyalty program members are up in arms.
CBS chief Les Moonves says "partisanship" is part of journalism now.Continue reading...
ready for takeoff
Posted by Mark J. Miller on June 5, 2012 05:03 PM
London Heathrow is the third-busiest airport in the world, moving close to 70 million people down its two runways each year. It can feel a bit cramped there and anybody who has walked its floors might tell you that all 70 million of those folks were in the place the day they were there.
The government has threatened to scuttle a proposed third runway, which has Heathrow operator BAA threatening to sue as it's eager to expand capacity. And from the "you can't please all the people all the time" dept., one group of Brits would love the 83-year-old airport to be leveled and converted into landscaped gardens, a residential area, and a university. Yet customer surveys indicate that over 70% of passengers at the airport rate their experience as 'Excellent' or 'Very Good.'
As it looks to become more efficient and truly "make every journey better" in order to bump those customer survey results even higher, Heathrow's retail partners and shoppers are certainly happy. According to an airport spokesperson, “Heathrow has the highest retail sales of any airport in the world ahead of Incheon airport in South Korea in second place.”Continue reading...
Posted by Mark J. Miller on April 19, 2012 02:40 PM
New Yorkers hate to waste time and Bloomingdale’s new window displays are designed to save them a few minutes (while drawing a big crowd, of course). Bloomies has gone virtual in its window displays, allowing customers to try on sunglasses without even entering the store.
The New York Daily News reports that virtual-reality technology in six windows “projects designer shades onto shoppers who simply stand in front of the” the store’s windows. Customers simply align their eyes to ovals on the windows and then the sunglasses appear around them. They can tap on icons on the window to change to different glasses. And they can turn their heads and see what the arm of the glasses would like as well.
“It’s a little tricky at first, and a little weird with people walking by, but it’s neat,” 26-year-old Julia Snowden told the Daily News.Continue reading...
sports in the spotlight
Posted by Mark J. Miller on April 6, 2012 09:59 AM
Big-name fashion designers are flocking to the Olympics this summer, with host country talent Stella McCartney leading the way, in partnership with Adidas, as the chief designer for the United Kingdom’s squad. There have been a few naysayers to McCartney’s designs, but fashion designers have got to be pretty used to that by the time they hit the big-time.
Now word comes, via the Telegraph, that Prada is getting into the Olympics gear, designing uniforms for Italy’s Olympic and Paralympic sailing teams.Continue reading...