Luxury Institute News

February 11, 2016

Chanel, Hermès rank as top brands worth premium pricing: survey

Luxury Daily
By: Jen King
February 11, 2016

The popularity of a widely bought brand does not always sync with consumers’ perception of its value and luxury credentials, according to a new survey by the Luxury Institute.

For its Luxury Brand Status Index series, Luxury Institute surveyed affluent women from seven of the world’s wealthiest nations to gain insights on which brands hold the most clout in terms of quality, exclusivity, social status and overall ownership. Consumer opinion is tied to whether she feels the asking price of a premium product is worth it and correlates directly to the brand’s perceived value by those who shop it frequently and those who aspire to do so.

“Luxury and premium brands  provide their customers quality and expertly crafted products and deliver them with empathy, trustworthiness and generosity to build client relationships,” said Milton Pedraza, founder and CEO of Luxury Institute.

“The result is a compelling product paired with an experience that cannot be found within the mass market,” he said. “These brands have a compelling value proposition that appeals to affluent women.”

Luxury Institute’s “2016 Global Luxury Brand Status Index (LBSI) – Women’s Fashion” surveyed 3,999 affluent women from the United States, United Kingdom, France, Germany, Italy, China and Japan. The women surveyed gave more than four dozen brands a score of 0-10 based on the following prompts: This brand delivers consistently superior quality; This brand is truly unique and exclusive; This brand is purchased by people who are admired and respected and This brand makes its buyers feel special across the full customer experience.

Flexing credentials
The value of a luxury product is not solely based on market retail price, but rather a combination of quality, exclusivity and pride of ownership. If a brand is popular it is not a true representation of its luxury credentials.

For example, U.S. fashion label Calvin Klein is immensely popular among affluent women, with most consumers likely to have purchased from the brand in the past year. However, Calvin Klein’s popularity does not translate to a high LBSI score, with the brand placing at the bottom of Luxury Institute’s overall ratings.

Similarly, the most popular fashion brands among women in the U.S. are Calvin Klein, Polo Ralph Lauren and Michael Kors. While popular and on the lower end of the price spectrum in relation to higher-end brands, these labels are not always associated with the exclusivity of true luxury.

michael kors.resort16
Michael Kors, resort 2016

Familiarity and popularity status does not always translate to increased sales, either.

While France’s Chanel was the most familiar fashion house among respondents, the atelier only placed second when respondents were asked which brand they plan to purchase from next. Based on next purchase plans, Chanel placed behind Calvin Klein and ahead of Polo Ralph Lauren and Burberry.

If a consumer agrees that a brand is worth premium prices, it is often an indication of the brand’s overall value. As such, affluent women ranked Chanel and French leather goods maker Hermès as the two fashion houses most worth their premium asking prices, followed by Christian Dior, Louis Vuitton and Prada.

Hermes shoe fw 2014
Hermès fall/winter 2014

To highlight value and justify high price tags, luxury brands often communicate their message of worth through the use of craftsmanship. Chanel most recently took this approach to express the value of its most exclusive collection, its couture offerings.

To do so, Chanel took consumers inside its house to cultivate exclusivity and mystery.

The latest chapter of the ongoing Inside Chanel series focuses on the creation of the brand’s haute couture clothing. While the reveal will satisfy the modern consumer’s craving for transparency, the breakneck speed of the video and repeated use of Coco Chanel quotes maintains the brand’s more enigmatic aspects (see story).

Still from Inside Chanel Chapter 13
Still from Inside Chanel N°13 

Luxury brands are also adept in customer experience and making the consumer feel special. The LBSI results showed that a mix of well-established and newer brands are well-versed in this area, with Hermès, Temperley London, Chanel, Brunello Cucinelli and Proenza Schouler as the top five.

Despite an increase in digital communications, the luxury space still relies heavily on word of mouth recommendations. Word of mouth remains as the best measure of satisfaction if a consumer has enjoyed her experience with a brand’s products and services.

Globally, affluent women who partook in the survey are most likely to recommend Loro Piana, Chanel, Hermès, Akris and Brunello Cucinelli to family and close friends.

Smaller, boutique labels proved themselves within the survey responses as well, showing that a brand does not need a rich heritage to resonate with affluent consumers when considering value and standing.

“It was interesting to see that boutique luxury brands such as Temperley London, Brunello Cucinelli and Proenza Schouler scored nearly as high as well established luxury brands such as Hermès and Chanel,” Mr. Pedraza said.

“Specifically, Proenza Schouler received an overall 7.66 LBSI, higher than luxury veterans such as Louis Vuitton, Dior and Prada,” he said. “The luxury customer base is open to less recognized brands that are able to provide an exclusive and unique product paired with an exceptional customer experience.

“Brands can no longer rely heavily on their rich heritage and recognition to keep clients loyal as competition increases and customers recognize the value of boutique brands.”

Measures of desire
Having an understanding of which brands are most desirable within a particular market can help labels structure strategies in that location.

Exclusivity and desirability go hand in hand for China’s wealthy, with the same brands ranked in the top five for both characteristics in a new study by Promise Consulting and BNP Exane.

Hermès takes home top prize for exclusivity, which measures the consistent quality of goods, the brand’s prestige, the valuation of the brand’s customers and its ability to justify a high price point. Chinese consumers are generally becoming more sophisticated luxury consumers, making for tougher competition between labels for their attention and affection (see story).

Likewise, an in depth understanding of consumer behavior in different markets is also useful as brands navigate the likes and interests of various demographics.

As the luxury landscape continues to evolve and geopolitical turmoil affects emerging markets, the brands that will come out on top must be able to adapt to the resulting consumer behavior.

On Sept. 29 in New York, part of a 15-city world tour of sorts, Albatross Global Solutions shared insights from its annual research study “The Journey of the Luxury Consumer” to better understand motivators, the purchase journey and the consumer landscape on a global scale. A key finding has been the definition of luxury itself as consumer interest has developed from a desire for exclusivity to wanting ensured craftsmanship from the high-end brands they interact with (see story).

Raising a brand’s standing among the opinions of affluent consumers presents its challenges.

“Brands can only improve their LBSI by improving these factors in a genuine way that resonates with the customer,” Mr. Pedraza said.

“Luxury CEOs tell us that approximately 60 percent of the value derived by the luxury client is in the luxury product, and 40 percent of the value is in the relationship building capabilities,” he said.  “Brands need to continue to remain relevant, especially in this challenging environment.”

Source: http://www.luxurydaily.com/chanel-hermes-rank-as-top-brands-worth-premium-pricing-survey/

February 9, 2016

Using digital to connect luxury shoppers with luxury brands

Luxury Daily
By: James Green
February 9, 2016

Every industry has been disrupted by technology and pushed to evolve their marketing strategy. In some ways, luxury advertisers have embraced the digital revolution and found new methods of improving the customer and user experience. But a large number of luxury marketing spend is still happening offline, despite the brand opportunities that are now available online.

There seems to be a common understanding among luxury brands that high-priced items are not going to thrive online and that using an ecommerce platform may even devalue products. True or not, direct sales are not the only way to get value out of the digital world.

Net net
Most luxury brands have a very specific target audience, typically affluent individuals. Therefore, luxury brands have traditionally bought digital media within specific owners such as The New York Times, Bloomberg and The Wall Street Journal because they feel that it is the best way they can safely find their audience online.

But what about all the people signaling their intent to buy luxury items across the Greater Internet? How do brands effectively reach out them?

Research from Epsilon and The Luxury Institute shows that 98 percent of luxury shoppers use the Internet regularly.

In addition, more than 50 percent of the time they are online, they are researching products and comparing prices on their mobile devices.

Throughout the years, studies from Google and McKinsey have shown that people spend a good amount of time researching luxury or high cost goods online before making their purchase.

And most likely, the number of times people visit a store to browse and conduct research has diminished because of the availability of information online.

With all this data about people, including demographic and information about brand affinity, along with precise data related to what people are searching for or what items they have recently purchased, there is a tremendous opportunity to use digital to identify luxury shoppers, provide them with immersive experiences and forge stronger customer relationships.

Researching signals purchase intent
Data offers established brands the opportunity to get in front of in-market buyers, including new customers and previous buyers.

Consider the amount of research that takes place before making a luxury purchase, whether that is a new car, piece of jewelry, handbag or high-end vacation.

According to WBR Digital, 45 percent of luxury purchases are influenced by what consumers find online.

The benefit of digital is that you can depict who is actually looking for information about your product and use that trail of data to determine intent to purchase.

For the luxury category, these insights will help brands determine who is ready to make a purchase and allow you to predict which people to keep informed about brand updates, such as new products, sales and seasonal marketing promotions.

Intent-based targeting is a strong complement to more traditional brand-centric media buying and helps luxury brands zero in on the people who are more likely to buy their products. It is also a great way to help them move through the buying journey, either in-store or online.

Enticing luxury buyers with digital creative
Luxury shoppers are very much part of the digital nation. They are using laptops, tablets and smartphones to follow trends, connect with brands, research products and make purchases.

Digital creative is critical to the luxury shopper – it needs to drive awareness without jeopardizing brand integrity and exclusivity.

Digital platforms have transformed their environments into creative canvasses for luxury brands. We have seen this through beautifully produced digital videos, immersive creative experiences and native advertising taking place across mobile devices and platforms such as Instagram and Facebook.

There is enough creative stability in digital for luxury buyers to bring their brand to life and to do so amongst the people who are most likely to buy. The dynamic characteristics of digital also allow brands to feature more products and change up creative more easily than television or print ads.

Forging lasting relationships online
People do not have to visit a store for you to know when and how interact to with them.

Online interactions between consumers and brands inform content, marketing frequency and promotions at the individual level, which can help increase customer loyalty and brand awareness.

Loyalty can be accelerated through social, email and digital display advertising at any point within the customer’s lifetime, and data can help predict these optimal moments.

This means that you need to be constantly learning and adapting to what people want so that your brand remains relevant and generates the engagement and desired response. There is simply way too much insight and value rooted in the digital medium for brands not to invest in it.

DIGITAL MARKETING may appear to be about data and targeting, but it is more about customer interaction, immersive experiences and interactive communication.

The luxury experience is more likely to stay very much in-store focused in the next few years. But this might be able to change once luxury advertisers find a way to prolong the experience that they are providing in-store across digital channels.

Data, adaptability and device versatility makes digital a strong brand vehicle for the luxury category.

 Source: https://www.luxurydaily.com/using-digital-to-connect-luxury-shoppers-with-luxury-brands/

February 8, 2016

Luxury Brands Can No Longer Ignore Sustainability

Harvard Business Review
By:  Andrew Winston
February 8, 2016

If I asked you to picture the consumer luxury market, you might imagine jewels, sports cars, watches, premium drinks, high-end shoes and apparel, and so on. A combination of high quality, glamour, celebrity, and attitude. With a few exceptions, it’s been an industry not traditionally associated with concerns about environmental impacts, human rights, and wellness, even while those trends have been sweeping through the mainstream consumer products sector. But according to a new report, 2016 Predictions for the Luxury Industry: Sustainability and Innovation, that sustainability gap is closing fast.

Two organizations that work closely with high-end product companies, the Luxury Institute and Positive Luxury, produced the study (disclosure: I’m on the latter’s informal advisory board, but I had no involvement in the research). Diana Verde Nieto, the founder of Positive Luxury and main author of the study, makes a compelling case that sustainability and social responsibility are no longer nice-to-have for luxury brands — they are now requirements.

The report lays out a few key pressures.

First, the direct pressure: the laws are changing. The report points to the passage of the Modern Slavery Act in the U.K. in 2015, which requires larger companies doing business in Britain to publish a board-approved, public annual slavery and human trafficking statement. This kind of law clearly drives much more transparency and tracking up the supply chain. And it’s a good thing, as 71% of U.K. retailers and suppliers think it’s likely there are slaves in their supply chain.

Second, the indirect and more powerful pressure: social norms are changing, starting with high-profile tastemakers. Celebrities are more invested than ever in sustainability. Leonardo DiCaprio and Mark Ruffalo have produced movies and started organizations to tackle climate change and promote renewable energy. Harry Potter star Emma Watson is a vocal advocate on gender equality while also appearing regularly in fashion magazines. These names and others are lending their clout to the social and environmental agenda. Given their prominence in the fashion and luxury worlds, their beliefs, statements, and demands on companies matter.

On a larger scale, the expectations of companies are changing generationally — Millennials have different views on how companies should act. The report cites research showing that “88% of UK and US Millennials and Generation Xers believe brands need to do more good, not just ‘less bad.’” This generation is questioning consumption in general – a majority say they are spending more on experiences (meaning, less emphasis on stuff), which is a threat to the luxury world. And they are driving a “clean label” trend, where companies feel pressure to explain what’s in everything and where it came from.

Third, the report highlights the fact that the investment community is waking up to the value to consumer brands of managing environmental and social issues well. There are some early shoots of evidence to back this idea up: in 2015, a Morgan Stanley analyst raised the price target on some mainstream apparel players like Nike based on their sustainability performance. The report sees this pressure coming to luxury companies soon.

Finally, there’s the harsh reality of biophysical limits seriously compromising these companies’ ability to source their products. Luxury goods require digging up, growing, and processing materials throughout the value chain, and that’s all getting tougher. According to Verde Nieto, these are not just ethereal brand risks about labor or image, but actual business continuity risks. Climate change is changing water availability and crop production around the world. That affects cotton-based products and, as Verde Nieto says, cashmere and angora, for example, require a great deal of water to process.

For gems and minerals, Verde Nieto sees a range of challenges from the energy required in production to general availability. With slight hyperbole, she says, “we’re out of gold basically (almost all the gold we use is recycled), various substances and ingredients in skin care are threatening the environment, diamonds are scarce, and exotic skins are in trouble…basically — and this is the big ‘a-ha’ — some of the raw materials, crucial to the luxury industry, are under threat.”

The leading companies in this space have been acting on many of these pressures for years. Both Tiffany and Forevermark, a Debeers company, have certified their diamonds using the independent Kimberley Process as “conflict free.” L’Oreal has quietly been making itself one of the global leaders on climate change and renewable energy. The company has already cut greenhouse gases by 50% and has new targets to be carbon neutral (without buying renewable energy credits) by 2020.

Now all the big brands are jumping in. One of the report supporters, French luxury conglomerate LVMH, has been, according to Verde Nieto, conducting extensive lifecycle analyses of their business lines. Others like Veuve Cliquot Champagne are looking hard at packaging now. They’re all figuring out where their biggest risks and opportunities lie. The report has some additional good case studies in the watch, leather, diamond, and eco-tourism realms.

None of this is easy or obvious. This industry has some tough history to reconcile. “Blood diamonds” were not just a campaigners evocative phrase, but based on real money flows to brutal dictators. Slavery is still a problem. Mines are immense operations that can impoverish people and land — or create jobs and build the economy.

But in our transparent world, the risk of not tackling sustainability is extremely high for this sector. As CSR and sustainability evangelist John Elkington told the report writers. “The implicit promise [in luxury] is that the consumer need not worry about anything. Everything is taken care of… Until it isn’t, at which point the whole impression of invulnerability and perfection can deflate.”

An unsustainable piece of clothing or jewel is, in the end, anything but flawless. As we all wake up to that reality, the luxury companies have no choice but to act.

Source: https://hbr.org/2016/02/luxury-brands-can-no-longer-ignore-sustainability?

January 27, 2016

2016 Predictions for the Luxury Industry: Sustainability and Innovation – Executive Summary

Positive Luxury
By: Josie Tutty
January 20, 2016

In this report, we identify the most impactful events of 2015 and look forward to the biggest trends of 2016 in the world of luxury and sustainability.

2015 propelled the luxury industry forward when it comes to how they think about sustainability. The biggest shift, (and one of the most important ones to help accelerate changes from the top down), is the rise in demand from investment communities for sustainable business models. For years, investors have focused on a company’s financial performance and determined if purchasing stock was worth it based on if the company was profitable. Now, sustainable investing strategies are growing, as investors are realising that performance is intertwined in future social and environmental impact.

C-suites are starting to realise that in order to keep creating value, and accelerating growth they must invest in and improve how their company impacts society as a whole, and most importantly how they communicate that positive impact.

There is one group in particular that aligns with this concept more than any other. Millennials are almost three times as likely to look to work for a company because of its social and environmental practices.

And the demand from affluent millennials doesn’t stop at employment opportunities. 2015 saw millennials using their spending power more and more to vote for companies who positively impact society and the environment – in fact – they are twice as likely to buy from brands with strong management of environmental and social issues.

2015 was also the year governments and world leaders took action too. With the launch of the Sustainability Development Goals, COP 21, and the passing of the Modern Slavery Act, creating, maintaining and growing companies with a positive social and environmental impact will soon become a legal obligation.

All these changes have left luxury companies with no option but to improve as the potential for sales and stocks to plummet increases, and the hand of the law hangs over them.

With that in mind, we look forward to 2016 and the trends that will help luxury companies continue on their sustainability journey. New innovations, communication techniques and constant evaluations of how consumers view brands will allow companies to keep marching forward in the fight to stay at the top of their game in a world that demands socially and environmentally responsible brands more than ever before.

You can purchase the full report by contacting hello@positiveluxury.com

Source: http://blog.positiveluxury.com/2016/01/2016-predictions-luxury-world-sustainability-innovation/

 

January 26, 2016

Sustainability efforts to boost investor interest in luxury houses: report

Luxury Daily
By: Jen King
January 26, 2016

Forty-six percent of CEOs agree that climate change and the scarcity of resources will transform their business, according to a new report by Positive Luxury.

Positive Luxury’s “2016 Predictions for the Luxury Industry: Sustainability and Innovation” report examined impactful events from 2015 to forecast how these world happenings will impact luxury going forward into 2016. Sustainability is proving itself more than just a fad, with consumers becoming increasingly aware and conscious of how and what they purchase, and as a result investors are putting more weight into sustainable business models.

“Companies across all industries face material business risks and opportunities, which come about from regulatory and market trends on environmental and social issues,” said Diana Verde Nieto, co-founder of Positive Luxury, London.

“When sustainability is viewed as a cost, or it lacks alignment with the company’s corporate strategy, the business underperforms and the material risks are not addressed,” she said. “Therefore, sustainability will help brands to de-risk their business and remain competitive.”

Together with the Luxury Institute, Positive Luxury conducted one-on-one interviews with key opinion leaders in the luxury lifestyle space, NGOs, The World Economic Forum and CMOs, CSOs and CEOs from top luxury brands and groups. Participants included LVMH, Kering, Forevermark, IWC and the British Fashion Council, among others.

Green machine
Over the course of 2015, governments and world leaders worked to pass legislation and develop strategic plans to protect the environment and underprivileged workers in developing nations.

In the last year, the Sustainable Development Goals were introduced, the Modern Slavery Act was passed and global leaders gathered to attend the COP21 summit in Paris. These milestones, and others, reflect a shift in CRS methods that extend beyond “good PR,” but rather show an increased consciousness of ethics and legal obligation.

While world leaders gathered in Paris to discuss climate change during COP21, French luxury conglomerate LVMH saw an opportunity to tout its sustainability practices while the world narrowed its lens on the topic.

Shared in a series of posts on its corporate social account on Facebook, LVMH offered insights into various programs and strategies implemented by the conglomerate and brands found within its stable, which includes Louis Vuitton, Bulgari and many others. Transparency has become a necessity as consumers are increasingly aware of and concerned about how and where the products they buy are made and the social and environmental impact they may have (see story).

For luxury, these international events have left brands with no other option than to approve their processes. While consumer opinion once drove sustainability practices, now the potential for sales and stock prices to fall increases, as does attention from lawmakers.

During its research for the report, Positive Luxury found that consumers are aware of the power they possess and know they can make a difference. Beyond being vocal about social and environmental causes, consumer power is also based on the product purchases they make.

Likewise, C-suite executives have found that to keep brand value and continue growth, an investment in sustainability performance and practices is a must. Also, given transparency’s importance in the minds of consumers, the way in which brands communicate their positive impact has also grown.

French luxury conglomerate Kering, for example, is helping the world visualize its environmental impact with an interactive environmental profit and loss statement.

Kering’s results page on the conglomerate’s Web site contains a grid depicting the various steps in production and environmental categories in which it could make an impact, with each square containing a circle in relation to the impact that has been made. Kering’s transparency shows its dedication and the steps it has taken while also helping other companies to examine where they can make changes one step at a time (see story).

The color of money
While there has been growth in marketing efforts boasting sustainability practices and an increase in transparency as to how products are manufactured, 2016 will see a higher demand from investors for business with sustainable business models.

As mentioned above, nearly half of brand CEOs agree that climate change and resource scarcity will transform their business, making environmentally-sound choices even more significant.

Luxury houses such as Saint Laurent and Christian Dior have implemented tactics that are environmentally sound. For instance, three Saint Laurent storefronts have been given the highest LEED certification (see story), while Dior has incorporated responsible lighting in a number of its international boutiques.

Additionally, brands are becoming more conscious of protecting the resource supply chain. Prada, for instance, purchased the French tannery Tannerie Mégisserie Hervy to ensure the skills held by its workers are preserved (see story) and in a similar move, Chanel purchased French lamb hide tannery Bodin-Joyeux in 2013 (see story).

The shift toward more sustainable models has also piqued the interest of investors, with 71 percent of individual investors showing interest in sustainable investing based on environmental, social and governance (ESG) criteria.

“As the importance of sustainability intensifies for businesses, the financial markets are increasingly forced to address the challenges posed to them,” Ms. Verde Nieto said. “These challenges come about from the realities of natural resource scarcity, the effects of unabated carbon-emissions, rapid urbanization and the widening wealth inequality, just to name just a few.

“From an investment point of view, the time horizon relevant to sustainability-related risks and opportunities is neither uniformly long-term nor short-term,” she said. “Some of these risks and opportunities are upon us right now, powerfully shaping the current business environment, and must be dealt with in the short term.

“This was validated by the outcome of COP21, where for the first time in history, the 195 countries attending agreed to take measures to mitigate climate change, recognizing that this is an issue that is affecting everyone.”

Source: https://www.luxurydaily.com/sustainability-efforts-to-boost-investor-interest-in-luxury-houses-report/

January 22, 2016

Events crucial at defining brand community: Neuehouse founding partner

Luxury Daily
By: Sarah Jones
January 21, 2016

NEW YORK – Luxury brands can work relentlessly to develop a quality product, but without creating a controlled experience and consistent message around their merchandise and identity, there may be a disconnect between reality and public perception.

During the “Going Beyond the Product: Creating Physical Experiences for Luxury Consumers” session at Luxury FirstLook: Strategy 2016 Jan. 20, panelists agreed that finding one consistent brand personality and ideology and communicating that across all touch points, whether online or in-store, is the key for effective brand positioning. From there, letting consumers engage with a brand through product, entertainment or creative experiences can further help to build a community.

“The brand has to drive the interaction, whatever it is, and then I think you have to be aware of what consumers’ expectations are,” said Matt Powell, co-president of KBS. “So digital has made it so that whether it is a luxury brand or not, people have certain expectations in terms of understanding everything from what’s going on in the supply chain to price comparison, things that normally luxury could avoid.

“And you have to think about how do you take advantage of what consumer expectations are altered by the Web when you’re creating any experience—online, offline, in-store, out of store,” he said.

Leaving a message
When trying to communicate a brand message to many different generations, brands should not let age be the primary focus, since consumers do not like being defined by this demographic. Mr. Powell said instead brands should speak to characteristics that consumers prefer to be identified by.

James O’Reilly, founding partner at Neuehouse, agreed, explaining that the private work collective tries to find common threads among its multigenerational audience rather than point out differences. Additionally, Neuehouse offers programming at different levels, allowing consumers at varying points in their lives to use its spaces and join its private community.

When designing retail spaces, brands should work to create elements of surprise. For instance, Neuehouse’s bathroom doors feature images of a pump and a mustache, fashioned out of magnets, showing more ingenuity than a painting.

In-store digitization efforts should center on creating an experience that the consumer cannot have at home on her tablet or phone. For instance, Puma took the concept of the in-store iPad and made it more memorable by creating a wall of iPads eight across.

“Physical and digital should be seen as complimentary as opposed to standalone items,” Mr. O’Reilly said. “I typically reference how much better educated people, more informed people are prior to an in-store purchase.

“I think those should feed off each other, and what I’ve seen more is people in-store are referencing digital moments, which consumers have prior to purchase,” he said.

Another way to surprise is in sensory and hospitality touch points. For instance, Dover Street Market was one of the first to include an in-store eatery, and its stores use a museum-style layout.

Prada at Dover Street Market 1
Prada at Dover Street Market

Creating a consistent experience at point of sale can become more difficult when a brand does not handle its own retail outlets.

This is true of automotive brands, which typically have a network of dealerships, but no flagship stores. Geoff Cook, founding partner of Base New York, said that he finds this lack of brand-owned store presence “bizarre.”

One option to make up for this would be hosting experiential events where consumers would be able to test drive and see the cars in person.

Similarly, Mr. Powell is working with BMW to bring its fragmented online presence together, uniting dealer, regional and corporate sites into one. The automaker’s corporate team also set up a showroom in a mall, giving itself an opportunity to reach consumers directly.

BMW South Coast Plaza
BMW Gallery at South Coast Plaza

Mr. Cook believes that brands should be more focused on creating news than on designing ads. Neuehouse employs this strategy, identifying itself as a publisher and introducing itself to potential members through editorial placements in media such as Vulture and Vanity Fair.

Face time
Having a consistent brand identity extends to personnel across facets of the business.

Mr. Cook said that the human connection is important in all channels. Ecommerce should therefore be more than just a transaction and a faceless shopping cart, particularly at luxury price points.

This starts at hiring. Neuehouse looks for an “emotional IQ” in potential new hires, searching for employees who fit into its community. Mr. O’Reilly said that it is difficult to tell who is a member and who works at Neuehouse.

When training new team members, brands should communicate not only what is done, but why it is done. For instance, a genius at the Apple store in Shanghai told Mr. Powell that when he resolves an issue, he is not just repairing a device, but he is fixing a fractured relationship between the consumer and Apple.

While luxury brands typically know the best practices in client building, most are not practicing these strategies for their own customers, according to the CEO of the Luxury Institute at Luxury Interactive 2015 Oct. 14.

The traditional training program for sales associates is out of date, as the focus should be on education that can be applied in a creative way rather than a rote set of rules and checklists that take the human element out of interactions. Additionally, these important members of a brand’s team should be rewarded more for their actions than their results, putting the emphasis on client retention and engagement, which will lead to sales over time (see story).

“I think for me, the most powerful thing is clarity and purpose for a brand,” Mr. Powell said. “So lots of people know how they do, lots of people know what they do. The best brands know why they do what they do.

“And that kind of clarity affects a lot of the behavior of the people on that team that end up being some of the most important touchpoints that exist, because they really define the experience,” he said.

Source: https://www.luxurydaily.com/events-crucial-at-defining-brand-community-neuehouse-partner/

January 15, 2016

The wonderful, unexpected return of the luxury coupe

The Verge
By: Tamara Warren
January 15, 2016

If you want to win the hearts of cynical car journalists at an auto show, dazzle them with the unveiling of an unexpected luxury coupe concept. Buick, the GM brand that’s struggled with its old-guy image over the past few decades, opted to use the stage of the North American International Auto Show (NAIAS) this week to make a powerful statement about its identity. Last Sunday, Buick unveiled its vision for a luxury concept coupe — the Buick Avista, a classic two-door looker.

The “coupe,” a term with French origins, refers to a two-door body style and dates back to the turn of the 20th century. It is typically smaller and more svelte in proportion compared to a four-door sedan. In recent years, automakers have started to bend the definition of the word to include sporty four-doors, but the Avista is a true coupe in every sense of the word. “[The Avista] was purely a design exploration exercise,” says Liz Wetzel, director of interior design for Buick. “We used this project to take sculptural beauty and think about Buick and where it’s been in the past. The Buick Y-Job was the very first automotive show car. Buick used to use technology and beautiful sculpture together.” (GM’s first car design chief Harley Earl created the Y-Job, the first concept car at an auto show in 1938.)

But Buick isn’t the only luxury automaker to spark car crushes at the Detroit show this year — Infiniti is showing the Q60, and Lexus makes a powerful statement with the LC 500 production car. Both of these handsome coupes attracted considerable attention away from the more conventional crossovers and sedans.

At NAIAS, automakers’ design departments get to put their best foot forward, and the classic coupe is sure-fire way to drum up attention from admirers. “Luxury consumers have come to expect fuel efficient cars for both economical and environmental reasons,” says Milton Pedraza, CEO of the Luxury Institute. “Aerodynamics play a huge role in the fuel efficiency of cars and highly influence the design. The most aerodynamic designs are simplistic, chic, and timeless. The cars of 2016 will have a classic familiarity that comes with simplistic design, but with contemporary features that make them appealing and modern.”

Design departments are able to experiment at auto shows by pushing boundaries without the constrictions of practicality and safety regulations. When given the green light to make compelling concepts, the show fuels a sense of competition among car design studios. Buick’s exterior director of design, Holt Ware, describes Detroit as “the Super Bowl for car designers.”

“If you think about it like the race track, there are some really fabulous races around the world, but Le Mans is still Le Mans and everyone wants to go to Le Mans,” Ware says. And the Avista won this week’s Super Bowl: it took home the EyesOn Design Best Concept award.

The Avista, like most beautiful objects, started from a burst of creativity followed by an approval from management, not the other way around. “From the teams in the studio, it happened because they wanted to see themselves in a vehicle,” Ware says. “They didn’t all want to see themselves in a three-row SUV or a crossover.” Production designers worked on the car as a side project. “If you’re in a production studio, you have to justify your resources, because everyone runs on a budget. The justification for us was that it was our jam session. If a musician has a concert, you can’t mess up in a concert, but then you have the jam session where you go in the garage, throw down, and try to explore your instruments and working together as a band. That’s what we did on this vehicle as well.”

Both Wetzel and Ware says they’re shocked about the powerful response to the show car. No one at GM is saying this car, which is based off GM’s Alpha platform (the same one that underpins the Chevy Camaro) and boasts a 400-horsepower V-6, will be built. For now, the company is positioning it as a statement piece.”We’re getting the data points in North America right now, because everybody loves it. And so, when is the right time to do it?” says Mark Reuss, GM’s executive VP of global production development. “Is it three years from now; is it two years from now? Is it a year from now? When is that? That would be the next discussion. And so, it’s not out of the question, but the point of the car is, ‘here’s where Buick’s heading.’”

While Reuss fashions the presence of three big luxury coupes at the show a coincidence, I have to wonder if this splashy trio suggests that there is more space in the marketplace for new coupe buyers — particularly as Infiniti and Lexus invest in building the production versions of these cars. Pedraza suggests that automakers might be making cars that appeal to an aging population that has disposable cash. “A majority of current purchasers in wealth are baby boomers,” he says. “This age group is currently in a transition as their children move out of the house and they are left with an empty nest. They no longer need large cars and are able to buy more stylish, trendy, and fun vehicles such as coupes,” he says. Hence products like the LC and Q60 — and maybe, if we’re lucky, the Avista.

Source: http://www.theverge.com/2016/1/15/10772432/the-return-of-the-luxury-coupe-detroit-auto-show-2016

January 13, 2016

Brands need to focus on relationship-building, not selling: Luxury Institute

Luxury Daily
By: Forrest Cardamenis
January 13, 2016

For the first time since the economic crash in 2008, many top luxury CEOs are worried about the state of the industry, according to the Luxury Institute.

Issues ranging from the economy to the weather and internal service problems have contributed to a world in which nine of 10 would-be clients leave a store without a purchase and only 20 percent of the buyers return. Although the global economy and the weather are hard to control or predict, every brand has a chance to empower its sales associates to convert and retain sales.

“In the second half [of 2015] things turned ugly,” said Milton Pedraza, founder and CEO of Luxury Institute. “I had a CEO tell me she hasn’t seen so many negative factors working against the luxury industry since we recovered.

“Remember, after 2008, China decided it was going to go on a growth spurt–and I say ‘decided’ because they are a communist country–and that made up for all the other things in the rest of the world,” he said. “So it helped countries like the United States and it helped Europe to start recovering, but now all those things turned negative.

“There’s a dramatic slowdown in China; the dollar has strengthened so you are getting fewer tourists and exporting less out of the U.S.; Europe never recovered fully; you have luxury shifting toward experiences rather than goods; traffic is down in stores even in the U.S., and while stores are moving into online buying there is no way online buying is making it up, so a lot of companies are now discounting.”

Changing the game
In addition to complex economic issues rooted in global relations, a transition toward a digital economy and the buying patterns and behavior of both aging boomers and emerging millennials, uncontrollable factors such as weather are also capable of hurting stores. An unseasonably warm winter has made it so coats and other seasonal apparel is not selling as well this year.

luxury shoppers
Luxury shoppers

However, brands still have a chance to generate their own sales and ensure that those who do walk through the door make a purchase and return. Despite the hard emphasis on “selling,” sales and retention are a factor of relationship building first and foremost.

“There is a lack of empathy when you enter the store, a lack of trust when you enter the store and a lack of generosity you feel coming to you – when I say generosity I don’t mean ‘discounts,’ I mean ‘Champagne,’” Mr. Pedraza said. “We haven’t empowered our people. We are training them to be robots instead of being the good human beings they are and making connections in a good human way rather than saying, ‘I’m going to sell you stuff!’ Expertise is not being delivered with empathy.

“That’s not the sales associates faults, that’s an education thing,” he said. “It’s not ‘training’ – these are not puppies – you educate them and you empower them to reach out and retain those clients.

“Sometimes you don’t try to make a sale at all, you just say thank you. But if you have 20 sales associates and maybe three or five are doing very good outreach with genuine emails, thank you cards and calling the client with something relevant, that’s not enough.”

Michael Kors affluent couple car
Affluent couple; image courtesy Michael Kors

In addition to empowering sales associates to build relationships first and then let sales arise naturally rather than push hard for sales right away, brands need to put ego aside. Employees at all levels cannot keep up with or recognize the best practices and innovations because of internal politics and relationships and the responsibilities of their own jobs. As a result, independent, trustworthy outsiders need to become a part of the service model.

When sales associates are trained in workshops, the share of associates that use the best practices after six months is a mere 10 percent. With ongoing support and weekly training sessions of half an hour to an hour, the number jumps to 95 percent.

This extends to high-performing sales associates. Although top performers or their supervisors may feel like their performance means they would not benefit from training compared to others, this is not the case. On the contrary, the return from training and continuous coaching is often best with these employees, because a 20 percent boost for an employee who sells $1 million of merchandise per year is a bigger gain in revenue than a 20 percent increase for an employee who sells half as much per year.

Bloomingdale's shopper
Image courtesy of Bloomingdale’s

Even with the introduction of continuous coaching, CEOs note that a sizable 40 percent of success depends on this kind of relationship-building expertise, but that leaves 60 percent for products, and many brands are stumbling on that front as well.

“I think that right now there’s a feeling there’s no compelling product,” Mr. Pedraza said. “There’s not an ‘it bag’ no ‘it product,’ just a lot of ‘me too’ and very little innovation.

“A lot of people are redesigning their stores, and that’s great, or trying to innovate, and that’s great, but very few have gotten there – Gucci on the women’s side, but not much,” he said. “Not many have had the courage that makes people say ‘I need this, I gotta have it,’ and brands need to create the things that people say they want.”

Getting younger
Brands must also keep in mind the habits of their consumers, as baby boomers and millennials do not have the same priorities and concerns.

Understanding demographics is the first step to effective marketing, according to a report by Unity Marketing.

Affluent consumers, defined in the study as those who make over $100,000 a year, slightly more than a fifth of households, are the fastest growing income bracket. Although economic factors are often foregrounded when discussing changes in wealth and buying patterns, understanding shifts in generations and the ratios of different age groups over time can help brands build long-term strategies without the uncertainties related to predicting the economy (see story).

Affluent consumer shopping Rolls Royce
Affluent consumer with a Rolls-Royce

In addition to how to reach consumers, some of those changes might include rethinking of what it means to be a “luxury” brand.

For millennials, the “luxury” label does not carry the same mystique as it has in the past or that it might for older consumers. Instead, the word connotes over-priced and unaffordable goods even more than it defines craftsmanship or value. For these consumers, the values associated with the brand as well as the relative value in cost-per-use are more important.

Indeed, millennials do not abide to the traditional hallmarks of luxury. Rather than marking themselves by wearing the most expensive brands they can afford, they look to brands that reflect who they are, opting, for example, for an Ironman Triathlon watch instead of a Rolex and preferring to foster their own identity through their clothing, accessories and other goods rather than harnessing the brand’s (see story).

“Clients are less loyal, which means they have a lot more options, and they are being bribed by lots of discounting so they are going to where they find the best deal,” Mr. Pedraza said.

“Baby boomers are today far less interested in goods as they were before, and less interested with consumption in general,” he said. “As they get older they’re more concerned with ‘what experiences do I need in what’s left of my life, what legacy do I leave in the world, what do I leave my children, what contributions have I made?’

“Luxury brands have to contend with all those factors and I don’t think there’s ever been a period where we need to contend with so many factors. The luxury industry is going to need to go through transformation and needs to adapt but nobody is exactly sure how. How do you get the traffic back in the store so you can convert them? How do you capture relationships online?”

December 18, 2015

Luxury travellers have dim view of Trump brand: survey

Marketing experts weigh in on how to do a hotel rebranding properly
Business Vancover
By: Glen Korstrom
December 17, 2015

The Trump brand is weak among luxury travellers, according to a new survey – a finding likely to fuel more controversy over whether Vancouver’s Holborn Group made a wise decision by contracting with Trump International to put the Trump brand on its under-construction hotel.

Trump ranked 40th out of 40 luxury hotel brands when wealthy travellers who were familiar with the brand were asked whether they would recommend the brand to family or friends, according to the 2016 Global Hotels Luxury Brand Status Index, which the Luxury Institute released December 17.

Strict privacy laws in Canada meant none of the survey respondents were Canadian, CEO Milton Pedraza told Business in Vancouver in an interview.

Instead, the New York-based Luxury Institute found its 3,900 respondents by buying lists from reputable companies that were able to determine income for those who live in the U.S., U.K., Japan, China, France, Germany and Italy.

Luxury brand Maybourne Hotels ranked No. 1 in each of four metrics, for which respondents were asked to grade hotels on a scale of 0 to 10:

•delivering consistent superior quality;

•being unique and exclusive;

•being visited by people who are admired and respected; and

•making guests feel special.

Trump ranked No. 34 for quality, No. 30 for exclusivity, No. 31 for having admired and respected guests, and No. 37 for making guests feel special.

“The survey was in the late summer,” Pedraza said. “This was before [company owner and Republican presidential candidate Donald Trump] started making all of the super-vile statements.”

In fairness, the sample size for those who graded Trump hotels was lower than those who graded much larger brands, such as Ritz-Carlton, Four Seasons and JW Marriott, because participants were only allowed to grade brands that they were familiar with or had experienced.

This was the first year that the Luxury Institute included the Trump brand because, in previous years, the nine-hotel brand was considered too small. Trump representatives then lobbied the Luxury Institute to be included, Pedraza said.

Trump is expected to open hotels in Baku, Azerbaijan in early 2016 and then one in Rio de Janeiro before Vancouver opens in July to make the chain a complete dozen.

Trump International Hotel & Tower Vancouver general manager Philipp Posch told BIV that he would not comment on the survey because he was not familiar with it.

Marketing for his hotel has not yet started.

“We’ll wait out the holidays and probably by January or so, we’ll reach out to clients and start the marketing process and machine,” Posch said December 17.

Click here to read a profile of Phillip Posch

How to do a rebranding properly

Branding experts say Holborn likely wishes that it never hitched its horse to the Trump cavalcade and that the situation underscores the need to have an escape clause in contracts.

“People who do these masthead deals for hotels might want to look at sports sponsorships,” said Brandever principal and branding expert Bernie Hadley Beauregard.

Those deals often end the day after a sponsored, star athlete does something objectionable.

A recent spate of hotel rebrandings in B.C. has experts pointing out both how to do a rebranding properly and what to avoid.

(Victoria’s Hotel Zed has won awards for its rebranding of what was previously known as the Blueridge Inn | Crazyintherain.com)

Branding experts’ biggest lessons are to keep the name short and catchy while making sure that the brand is consistent across the chain so guests will know what to expect.

Keeping a brand consistent across properties is a lesson regardless of the sector.

“The art form of branding is to bring the name down to be something that is usable and memorable to the consumer,” Hadley Beauregard said.

He pointed to Portland, Oregon-based Ace Hotels, which has seven hotels around the world in cities as varied as London, Panama City and Seattle.

“Always artistic, eclectic and hip, Ace Hotels often redefine their host city’s magnetic centre,” he said. “Their brand aura is such that you want to make a pilgrimage to see their properties, even if you aren’t staying there.”

Victoria-based Accent Inns’ rebranding of its secondary, economy hotel to Hotel Zed from Blueridge Inn, in 2014, similarly aimed for a hipper image and a short succinct name.

Rooms at Hotel Zed in Victoria have modern elements such as flat-screen TVs, which have media hubs to project iPhone screens onto the TV monitor.

Basically, however, the hotel’s shtick is that it is made to look retro – complete with rotary-dial telephones and furniture and lamps that appear to be out of the 1970s. A multicoloured 1967 Volkswagen van is parked outside and typewriters in the lobby are for guests to use.

“Because Accent Inns starts with an ‘A,’ we can also say that we’ve got brands that go from A to Zed,” Accent Inns marketing director John Espley told BIV.

The rebranding was such a success that Accent Inns plans to open a second Hotel Zed, in Kelowna, next summer. Accent Inns won recognition for the rebranding at the Victoria Real Estate Board Commercial Building Awards in the hotel category. Destination British Columbia then highlighted the hotel when it unveiled its new $2.6M marketing strategy late last year.

Beauregard, however, is less enthusiastic about Vancouver-based Pinnacle International’s rebranding of its longtime Renaissance Vancouver Harbourside Hotel as the Pinnacle Hotel Vancouver Harbourfront.

“Too many words,” Hadley Beauregard said. “My head hurts.”

Making the rebranding more puzzling, he said, is that the new Pinnacle Hotel Vancouver Harbourfront is virtually across the street from a second hotel that also has “Pinnacle” in an even wordier name: the Vancouver Mariott Pinnacle Downtown Hotel.

(Kyle Matheson is director of hospitality marketing at Pinnacle Hotel Vancouver Harbourfront | Rob Kruyt)

What’s worse than simply having two hotels extremely close together, with both carrying the distinctive word “Pinnacle” somewhere in the brand, is the fact that the two hotels are managed by two different companies – Marriott International and Pinnacle International – even though they are both owned by Pinnacle International.

The two hotels therefore have different offerings for guests.

The Marriott Pinnacle, for example, requires guests to join a loyalty program to get free Wi-Fi whereas the Pinnacle Harbourfront provides guests free Wi-Fi with no need to join any program.

“This creates confusion in consumers’ minds,” Hadley Beauregard said.

“Brand consistency is key.”

Rationale for recent Pinnacle’s rebranding

Pinnacle International has contracted Marriott to manage the Marriott Pinnacle for the past decade.

Paying a management company a fee up to about 5% of revenue to be able to use a global brand such as Marriott is called “flagging” a property.

The common practice is exactly what happened when Holborn Group agreed to pay Trump International to be able to use the Trump brand on Holborn’s hotel.

The point of this strategy is to coast on the brand recognition of a well-known manager such as Marriott or Trump.

Pinnacle International, which is best known as a real estate developer, ended its management contract with Marriott’s Renaissance Hotels earlier this year. That meant that it had to come up with a new name for the property.

Its director of hospitality marketing, Kyle Matheson, told BIV that the new Pinnacle Harbourfront name makes it clear that the hotel is near Vancouver’s harbour.

Using Pinnacle in the name was done because Pinnacle International both owns and manages two other B.C. hotels: Pinnacle at the Pier in North Vancouver and Pinnacle Hotel Whistler.

“The goal with rebranding the [former Renaissance] property as Pinnacle Harbourfront was to broaden our hospitality and hotels and restaurants portfolio under our own Pinnacle name,” he said.

 Source: https://www.biv.com/article/2015/12/luxury-travellers-have-dim-view-trump-brand-survey/

 

December 10, 2015

Announcing Luxury FirstLook: Strategy 2016 New York Jan. 20

Luxury Daily
December 6, 2015

Join senior executives and decision-makers at the 4th annual Luxury FirstLook: Strategy 2016, the nation’s premier conference organized by Luxury Daily discussing luxury advertising, marketing, retail, media, Internet and mobile issues and opportunities expected in 2016. Speakers from the Boston Consulting Group, Four Seasons Hotels & Resorts, Van Cleef & Arpels, Breguet, Luxury Institute, Shullman Research Center, Kantar Media Ad Intelligence, Travel + Leisure, Modern Luxury, Neuehouse, Base New York, KBS, Lloyd&Co., Parlux Fragrances, Matouk, Fluid Inc., iProspect, Monaco Lange, Envirosell, Engel & Volkers North America, Bloomberg Pursuits and Driscoll Advisors

Focus: What luxury marketers can expect in a market, while showing strong pockets of growth, is rife with uncertainty in 2016 and what it means for luxury retailers, luxury brands, ad agencies, publishers, market researchers, technology platforms and service providers

Why you should attend: Hear a cross-section of the nation’s leading expects discuss strategy, tactics, execution, results and analysis for gaining or maintaining market share in a rapidly evolving luxury market where the consumer is leading the change as much as brands. Also network with fellow attendees who are senior executives and decision-makers at leading marketers in this 11-hour serious transfer of knowledge

Venue: 10 on the Park at Time Warner Center, 60 Columbus Circle, 10th floor, New York, NY 10019 (entrance is on 60th Street across from Columbus Circle, between Equinox gym and the Mandarin Oriental Hotel)

Price: Only $695, which includes breakfast, lunch and cocktails

Sponsorship: For lunch roundtables and keynotes, tables, breakfast, cocktails and other sponsorships, please email ads@napean.com

Please click here to register for 4th annual Luxury FirstLook: Strategy 2016 in New York on Wednesday, Jan. 20

AGENDA

Luxury FirstLook: Strategy 2016
New York
Jan. 20, 2016

7:30 a.m. – 8:45 a.m.
Breakfast and Registration

8:45 a.m.
Welcome Remarks
Mickey Alam Khan, editor in chief, Luxury Daily
Milton Pedraza, CEO, The Luxury Institute, and Master of Ceremonies

9 a.m.
Opening Keynote
Selected Key Trends In the Luxury Industry In 2016
Boston Consulting Group has a finger on the pulse of luxury given that it works with the world’s leading luxury brands and retailers, advising them on strategy, tactics and execution. The world of luxury is set to undergo several changes in 2016, forcing marketers to rethink marketing, retailing, media, Internet and mobile approaches. This talk will specifically focus on four key trends:

• A changing world: New growth drivers in the luxury industry
• Intro values such as quality, craftsmanship and exclusivity continue to roar as consumers increasingly looking for experiences
• Word of mouth increasingly a driver of purchase decisions
• Winning in the rising digital world

Speaker:
Luke Pototschnik, partner and managing director, Boston Consulting Group

9:30 a.m.
Research Keynote
Van Cleef & Arpels: Examining the Jeweler’s Digital Strategy
Speaker:
Kristina Buckley Kayel, vice president of communications, Van Cleef & Arpels

10 a.m.
How Luxury Brands and Retailers Should Consider Reaching and Communicating with Luxury Buyers in 2016
As the United States economy continues to expand ever so slowly, how much has that ongoing expansion increased the size of the U.S. luxury markets such as the prospects for designer apparel and accessories, premium cosmetics and fragrances, luxury automobiles, luxury travel and luxury home goods? Plus, with the ever-growing number of advertising and communication mediums and channels now reaching the luxury consumer, which channels make the most sense for luxury marketers to communicate with these luxury shoppers? These and other critical questions will be answered from the consumer’s perspective as the Shullman Research Center presents its in-depth analysis of what luxury buyers are now buying and the most effective ways to reach this valuable audience.

Speaker
Bob Shullman, founder/CEO, The Shullman Research Center

10:30 a.m.
Break

11 a.m.
2015 Holiday Advertising Wrap-Up: The Luxury Market
Media advertising was an important marketing channel for luxury brands during the just-completed holiday shopping season. What strategies and tactics did luxury marketers use to break through the competitive noise and connect with their targeted audience? What can be learned from their approaches? Drawing on its comprehensive ad monitoring database, Kantar Media has examined luxury brands and will share insights on holiday campaign ad spending levels, budget allocations across media platforms, digital media initiatives, timing of ad spend during the period, ad message content and more.

Speaker:
Jon Swallen, chief research officer, Kantar Media Ad Intelligence

11:30 a.m.
Going Beyond the Product: Creating Physical Experiences for Luxury Consumers
The way to reach luxury consumers is not just through their shopping habits, but also through the elegant and tangible elements of their environment. How can brands use smart design and user experience to lure luxury consumers back to the exclusivity of white-glove services that are only offered in exclusive memberships and high-end bricks-and-mortar stores? Hear from branding and design leaders on how to create and position a state of mind and experience that goes beyond the price point of upscale products and instead focuses on physical spaces and tangible experiences that exude affluence.

Panelists:
James O’Reilly, partner, Neuehouse
Geoff Cook, founder/partner of Base New York
Matt Powell, Co-president, KBS
Neil Powell, designer, Smart Space

Noon
The New Travel + Leisure: Aligning Platforms to Audience Behavior
One of the leading travel publications nationwide, Travel + Leisure is part of the Time Inc. family of magazines that is straddling both the print and digital worlds. The evolution of this brand mirrors the changing reading habits of consumers. This session will discuss the magazine brand’s approach to:

• Print versus digital versus social
• Defining the brand for cross-platform publishing, growing digital and engaging via new products
• Destination guides
• Video: Serving the audience in new ways
• Utilities
• Commerce
• State of the market: The affluent and travel spending; the Travel + Leisure audience and the year ahead; emerging destinations; and luxury travel trends

Speaker:
Nathan Lump, editor in chief, Travel + Leisure

12:30 p.m. – 1:30 p.m.
Sponsored Lunch Break

1:30 p.m.
Four Seasons: How Luxury Brands Should Focus on the New Principles of Content Marketing
The Four Seasons hotels chain is the byword in luxury hospitality, with a sharp emphasis on customer service. Part of that mission is to involve its customers to share via content their experiences across properties that intersect with life’s key moments. This session will shed insights on the next evolution of content marketing for luxury brands, with a specific focus on user-generated content and the power of harnessing consumer content to drive brand leadership. The Four Seasons has long advocated that luxury brands should become publishers. The next step in that process is to understand how the consumer fits into content creation, both from a creation and an engagement perspective. In essence, what are the new principles of content marketing and how should luxury brands be thinking about that as they look forward to the year ahead.

Speaker:
Elizabeth Pizzinato, senior vice president of marketing and communications, Four Seasons Hotels & Resorts

2 p.m.
A Customer Journey Through the Sense of Smell
There is nothing more personal than one’s’ choice of scent, which makes it even more imperative for fragrances to differentiate themselves when positioned directly next to their competitors in-store. The journey a consumer takes surely does not begin and end with a woman spraying shoppers along the beauty counter. How can you market and sustain a sensory experience for a fragrance brand across all channels to ensure continuity from packing to print? This session will focus on the strategy behind the marketing of luxury fragrances for today’s modern consumer and how the speakers partnered to remaster the iconic Norell fragrance.

Speakers:
Jodi Sweetbaum, president and managing director, Lloyd&Co
Pat Werblin, vice president of advertising, Parlux Fragrances

2:30 p.m.
Breguet: State of the Luxury Watches Market and Outlook for the Year Ahead
Speaker:
Mike Nelson, president, Breguet

3 p.m.
Break

3:30 p.m.
Modern Luxury, Modern Marketing: A Localized Approach to Connecting with the Luxury Consumer
Media houses continue to struggle to find their footing in the modern marketing landscape. One of the few publishers that has maintained continued growth and success despite these changes is Modern Luxury, the country’s largest local luxury media company. With the recent launch of its 67th title (Silicon Valley) and significant year-over-year revenue growth, Modern Luxury has separated from the pack with a unique strategy of building community with highly engaged, high-net-worth individuals in key markets across the United States. Modern Luxury’s presentation will highlight the publisher’s unique approach, specifically the importance of experiential marketing and of targeted engagement specific to each market. Other highlights include:

• Geographical and regional nuances to approaching luxury: How the definition of “luxury” differs not only from state-to-state but from city-to-city, even just within miles (e.g. Silicon Valley vs. San Francisco, Manhattan vs. The Hamptons, Los Angeles vs. Orange County)
• Regional luxury trends and insights, taken from Modern Luxury’s own survey of its readers in each of their markets;
• Learn the cultural habits of these luxury consumers city by city: shopping patterns, attitudes towards brands and experiential programming and more (e.g. Resort towns are often a missed opportunity for beauty brands as purchase intent in those pockets scores off the charts or did you know that Houston in-store events see a bump in sales from attendees after the event? The culture there is one of discreet spending as opposed to conspicuous consumption)
• Modern Luxury’s view on the year ahead and strategies on how to continue to engage with local luxury consumers

Speaker:
Marcy Bloom, senior vice president and group publisher, Modern Luxury

4 p.m.
Personalizing Luxury Household Goods Through Technology
The benefit of in-store shopping for household goods such as bedding and furniture is that it enables one to visualize how the product would look in one’s own home. But with 98 percent of affluent consumers using the Internet on a daily basis, it is imperative that luxury home-good makers explore ways to digitally engage with consumers to ensure that they are staying relevant. Attendees will learn how the speakers partnered to create uMatouk. The tool allows both retailers and consumers to mix and match bedding to create their own combinations that appear on a photorealistic 3D bed. The speakers to how the tool’s success has led to increased traffic back to Matouk’s site and why digital personalization tools should be an essential marketing tactic for luxury brands across categories.

Speakers:
Stuart Kiely, senior director of technology and marketing, Matouk
Chris Haines, director of strategy, Fluid Inc.

4 p.m.
Raffe for Dom Perignon

4:45 p.m.
Closing Panel
Outlook 2016: Key Luxury Marketing, Retail, Media and Digital Trends and What’s Next
Traditional luxury brands enter 2016 having had a mixed reception in the preceding year. While many marketers retained or grew market share, a few including department store chains had to resort to extensive discounts to retain footfall. The trend of brands opening more stores slowed, even as China and emerging market sales slackened while the United States held up. It is also obvious that the Internet and mobile have influenced shopper behavior. Among other issues, this panel will dissect:

• Holiday 2015 recap
• Outlook for the economy in 2016: What luxury marketers should anticipate
• U.S. and international markets: Where does growth lie
• Digital and the integration of online and mobile marketing and commerce with stores
• Theme for the year ahead

Speakers:
Andrea Wilson, vice president/strategy director and luxury practice lead, iProspect
Greg Monaco, founding partner, Monaco Lange
Gustavo Gomez, director of research and methodology, Envirosell
Anthony Hitt, CEO, Engel & Volkers North America
Chris Rovzar, digital head, Bloomberg Pursuits

Panelist:
Marie Driscoll, CEO and chief consultant, Driscoll Advisors

Closing Remarks
Milton Pedraza, CEO, The Luxury Institute, and Master of Ceremonies
Mickey Alam Khan, editor in chief, Luxury Daily

5:30 p.m. – 6:30 p.m.
Luxury Women to Watch 2016 Cocktails Celebration

Please click here to register for 4th annual Luxury FirstLook: Strategy 2016 in New York on Wednesday, Jan. 20

Hotels in the Midtown Manhattan neighborhood (from nearest to farthest):

Mandarin Oriental New York
80 Columbus Park at 60th Street, New York, NY 10023; tel: 212-805-8800
Please click here for the Web site

Trump Hotel Central Park
One Central Park West, New York, NY, 10023; tel: 212-299-1000
Please click here for the Web site

Hudson New York
356 W 58th Street, New York, NY 10019; tel: 212-554-6000
Please click here for the Web site

JW Marriot Essex House New York
160 Central Park South, New York, NY 10019; tel: 212-247-0300
Please click here for the Web site

The Hilton New York 
1335 Avenue of the Americas, New York, NY 10019; tel: 212-586-7000
Please click here for the Web site

The Palace Hotel
455 Madison Avenue, New York, NY 10022; tel: 212-888-7000
Please click here for the Web site

The Bryant Park Hotel
40 West 40th Street, New York, NY 10018; tel: 212-869-4446
Please click here for the Web site

New York Marriot Marquis
1535 Broadway, New York, NY 10036; tel: 212-398-1900
Please click here for the Web site

Sheraton Times Square
811 Seventh Avenue, New York, NY 10019; tel: 212-581-1000
Please click here for the Web site

Please click here to register for 4th annual Luxury FirstLook: Strategy 2016 in New York on Wednesday, Jan. 20

Source: http://www.luxurydaily.com/announcing-luxury-firstlook-strategy-2016-new-york-jan-20/

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