Luxury Institute News

May 23, 2016

Aston Martin unveils latest chapter in 5-decade partnership

Luxury Daily
By: Staff Reports
May 20, 2016

British automaker Aston Martin is revealing a new concept car developed in collaboration with Italian coachbuilder and design house Zagato at Concorso d’Eleganza Villa d’Este.

The fifth edition in a partnership that spans 50 years, the Vanquish Zagato Concept will make its world premier at the show being held at Lake Como in Italy from May 21-22. This longstanding pairing has led to Aston Martin vehicles that combine its sporting capabilities with Zagato’s design sensibilities, leading to some of the automaker’s most creative designs.

Joint effort
For this concept car, Aston Martin’s design team under the direction of Marek Reichman worked closely with Andrea Zagato and his design team. The vehicle, featuring a carbon fiber body, was engineered and developed at Aston Martin’s headquarters.

Showing the blending between both brands, the car features tail lights that have round reflectors, reminiscent of classic Zagato designs, while they use the LED technology found only in Aston Martin’s racetrack exclusive Vulcan.

Aston Martin Vanquish Concept exterior
Aston Martin Vanquish Zagato concept

Further Aston Martin-inspired elements include wing mirrors that resemble those on its One-77 and DB11’s aerodynamic rear end shape.

Inside the vehicle, the collaboration is referenced in herringbone carbon fiber and Z quilting on the seats and door panels.

Aston Martin Vanquish concept interior
Aston Martin Vanquish Zagato Concept interior

Aston Martin’s Mr. Reichman, the executive vice president and chief creative officer, said, “Over the years, we have developed and refined our own design language and we have always gone that little bit further with our special series cars like CC-100, One-77 and Aston Martin Vulcan. The Vanquish Zagato Concept shows how our two companies can come together and push the definition of Aston Martin design.”

Collaborations can sometimes be risky for luxury brands, and half of affluent shoppers say that the biggest risk for a luxury partnership is the potential damage to the brand’s image or reputation, according to a survey from the Luxury Institute.

Overall the study found that most affluent shoppers enjoy brand partnerships, even with the risk. However, luxury marketers should pair up with brands that have the same goals and mindset when seeking partnerships (see story).

Source: https://www.luxurydaily.com/aston-martin-unveils-latest-chapter-in-5-decade-partnership/

February 25, 2016

Affluent men most apt to recommend Isaia, Loro Piana to close connections: report

Luxury Daily
By: Sarah Jones
February 25, 2016

Being popular does not always lead to strong word of mouth, according to a recent survey of affluent men conducted by the Luxury Institute.

The top five brands listed in the men’s consideration sets were not the same as the five they would be most keen to endorse to family and friends. With luxury consumers, particularly those in emerging markets, becoming more sophisticated shoppers, smaller boutique labels have the opportunity to expand awareness by leveraging the recommendations of existing clientele.

“With technology and information at the tip of everyone’s fingertips, customers are becoming much more aware and interested in the boutique and ‘in-the-know’ brands,” said Milton Pedraza, founder and CEO of Luxury Institute. “The customer is better informed not only about the product, but also every aspect of a company’s brand values down to the supply chain.

“The most recognizable brands still have a major advantage, but with the customer’s ability to access product and brand information like never before, these companies are held under a microscope and their clients are willing and able to move to another brand at any moment.”

Luxury Institute’s latest Luxury Brands Status Index polled 3,900 affluent men from the top seven wealthiest nations about 42 menswear brands. Individuals had annual household incomes of at least $150,000 in the United States; 60,000 pounds in the United Kingdom; 50,000 euro in France, Germany and Italy; 1 million yuan in China and 150 million yen in Japan.

Public perception
Consumers were asked how much they agreed with four statements about each brand in question: “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.”

The resulting LBSI ranges from one to 10 and represents an average of all respondents’ scores for the label.

According to the study, Isaia is the most effective at making consumers feel special across the entire purchase experience. The brand is perceived as being a label respected, admired men wear and buy.

While the Italian label is not widely known, with only 3 percent of those surveyed aware of the brand, the relatively small population that is familiar feels very strongly about the brand’s quality. Seventy-five percent of those who know Isaia would recommended it to other consumers.

The top five brands based on status were all small Italian designers with comparably limited awareness. Besides Isaia, men are most willing to endorse Loro Piana, Brunello Cucinelli, Brioni and Ermenegildo Zegna.

Loro Piana Gstaad illustration
Illustration by Loro Piana

On the opposite side of the spectrum is Calvin Klein, which men were most likely to have purchased in the past year. Despite its popularity among affluent male shoppers, Calvin Klein’s LBSI score is lowest among the brands studied.

Next in popularity is Ralph Lauren, which topped the list of brands considered for the next apparel purchase. Rounding out the top five most well-known and frequently purchased labels are Hugo Boss, Burberry and Giorgio Armani.

When it comes to high prices, affluent men feel that Hermès, Brioni, Ermenegildo Zegna and Loro Piana are the most worthy of premium price points. Armani, which came in fifth, was the only brand ranked at the top of the list for price justification and purchase intent.

“Quality, while extremely important, is only one factor that contributes to the success of a brand,” Mr. Pedraza said. “While Loro Piana and Gianluca Isaia scored highest in the Superior Quality LBSI score, they were also among the lowest ranked in Brand Familiarity.

“The consumers’ considerations for next purchase coincide closely with brand familiarity, likely because customers want certainty in their purchases, especially in a downward economy,” he said. “The trusted and familiar brands provide that.”

A similar Luxury Institute survey of affluent women yielded complementary results, showing that both male and female clientele may have more esteem for the labels they are not currently buying from (see story).

Spreading word
Affluent consumers still care about a brand’s rarity, with less common labels having better appeal.

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 recent 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).

For brands with a strong, loyal following, social media makes it easier for word-of-mouth recommendations to spread. Particularly among luxury consumers, a referral can have a large impact on purchase decisions.

According to a recent report by The Future Laboratory, the luxurian demographic relies heavily on the recommendations of friends and family. Many respondents shared that they ask for information and opinions of their peers before purchasing a luxury good or service.

Overall, 23 percent of respondents refer to peers when contemplating a purchase, showing that word of mouth remains powerful in the luxury goods sector (see story).

“Isaia has an incredible opportunity to increase recognition and awareness through relationship building at the front-line level, referral programs and word of mouth generation,” Mr. Pedraza said. “Using social media platforms to appeal to millennials and producing information for customers to review will draw in new consumers.

“Because of their exceptional ranks in quality and customer experience, they have an advantage that will allow brand referrals to spread quickly.”

Source: http://www.luxurydaily.com/affluent-men-most-apt-to-recommend-isaia-loro-piana-to-close-connections-report/

February 23, 2016

These Are the 5 Brands Rich Guys Buy Most

GQ Magazine
By: Justin Fenner
February 23, 2016

Know what gets between guys (with money) and their Calvins? Nothing.

A new study by the Luxury Institute has found that men with lots of discretionary income really, really like Calvin Klein and the wares created by its menswear designer Italo Zuchelli. Of 42 high-end purveyors of men’s clothes—including Brunello Cucinelli, Alexander McQueen, and Valentino—Calvin Klein is at the top of the list for brands that rich dudes have purchased something from in the past year.

Part of what makes Calvin so successful is its name recognition: the study also found that men of means are more familiar with Calvin Klein than any other brand, which means putting Kendall Jenner and Justin Bieber in all those ads is working.

The rest of the top five brands that rich guys like to buy includes Ralph Lauren, Hugo Boss, Burberry, and Giorgio Armani. Ralph Lauren is the brand that these men are most likely to think about first the next time they go shopping, and Armani is among the companies whose clothes are viewed as actually being worth their high prices.

To find out all of this, the Luxury Institute surveyed over 3,900 men from the United States, the United Kingdom, China, France, Germany, Italy, and Japan who had to meet different income requirements: men in America and China, for example, had to pull in a salary around $150,000 a year to take the questionnaire, but Brits only needed to bring in $85,000.

The results of the survey are a clear indication that regardless of what they make, wealthy guys aren’t afraid to spend money on luxe clothing—so long as it comes from a brand with an established track record of making high-quality stuff. And here we thought half the fun of fashion was taking risks.

Source: http://www.gq.com/story/5-brands-rich-men-buy-study

Chanel defines house style in haute couture vocabulary lesson

Luxury Daily
By: Sarah Jones
February 23, 2016

French couturier Chanel is schooling consumers on its design lexicon in the latest edition of its Inside Chanel series.

“The Vocabulary of Fashion” flips through an imagined dictionary of Chanel terminology, which includes notable codes such as pearls, the camellia and tweed. Throughout this video, the brand documents the details that both house founder Gabrielle “Coco” Chanel and present creative director Karl Lagerfeld incorporate in their garments and accessories, providing proof of Chanel’s enduring, timeless aesthetic.

“In the process of recounting the elements of Chanel’s vocabulary, the brand allows for a direct juxtaposition of Coco Chanel and Karl Lagerfeld,” said said Thomaï Serdari, Ph.D., founder of PIQLuxury, Co-editor of Luxury: History Culture Consumption and adjunct professor of luxury marketing at New York University, New York. “This is not intended as a comparison against a scale of success but rather as as reminder that Coco, the creator of the language, catalyzed the creation of a brand, within which Karl Lagerfeld creates today.

“It shines equal quality and intensity of light on both designers since they both address cultural imperatives of their own time,” she said. “This is where Chanel maintains its advantage today: Lagerfeld’s creations incorporate cultural intelligence that resonate with contemporary society, a trait that has been prominently celebrated in each one of his fashion shows. The brand gives him the tools that Coco put in place and he helps advance the brand in a direction that ensures its longevity and future.”

Ms. Serdari is not affiliated with Chanel, but agreed to comment as an industry expert.

Chanel was unable to comment directly.

Branded definitions
Chanel’s video was published to social media as well as the brand’s Inside Chanel microsite.

The fourteenth chapter begins with a sketched shot of Chanel’s buildings on Rue Cambon. Zooming in, the camera takes the consumer inside of an upper floor, where a book lays on a table.

As if by magic, the animated book opens by itself, and a voiceover begins to read text as it appears on the page. First, the female voice explains that “Chanel is a vocabulary, a set of cannons, a discipline. A grammar.”

Flipping to the definitions, the book first explains “the handbag.” Inspired by the saddle bags with straps used by the military, Chanel made her own version of the “essential” lined with grosgrain, eventually adding the now-iconic quilted pattern and a chain-link strap in 1955, creating the 2.55.

As the voiceover talks, the video sketches the article of clothing or accessory mentioned, illustrating the signature look.

Next is the little black dress, which the virtual encyclopedia explains was fashioned after nuns’ habits. This new style, which freed women from corsets, lives on to this day and is reinterpreted by Mr. Lagerfeld in textiles such as jersey or silk.

Costume jewelry, which is defined as “the illumination of Gabrielle Chanel,” incorporates gemstones and crystals. These take influence from Venetian and Byzantine eras along with bygone days in England and Russia.

The camellia makes an appearance in many Chanel designs, as Coco Chanel selected it as her emblem. This scentless flower depicted in white serves as a brightness to the black attire popularized by Chanel.

Chains are used liberally as belts or jewelry, reinterpreting the metallic links with the addition of leather or embellishments. A chain is positioned at the bottom hem of Chanel jackets to perfect the form.

The inspiration behind the two-tone shoes is then revealed, as the narrator explains how beige lengthens the leg while black hides spots. The two colors also break up the foot, making it look smaller.

Much like the camellia, pearls serve as a light against Coco Chanel’s preferred black, and she would not go to her workshop without a strand as her fashionable armor. Mr. Lagerfeld continues to experiment with pearls in his design, making them a “shimmering signature.”

After seeing the Duke of Westminster’s hunting garb in tweed, Ms. Chanel was inspired to work with the traditionally Scottish textile. Made into women’s suits, the narrator says, “The tweed jacket never goes out of style.”

The parting note of the glossary is a quote from Ms. Chanel, who opines, “Fashion passes, style remains.”

“With its latest video, Chanel is re-establishing its own brand,” Ms. Serdari said. “This is a very straightforward message articulated at the opening of the video with the phrase: ‘Chanel is a vocabulary, a set of canons, a discipline, a grammar.’

“What Chanel is, in other words, is a well-defined brand,” she said. “This is extremely important, not only in the context of the previous 13 chapters that spoke to individual elements of Chanel’s mythology and heritage, but most importantly in the context of today’s fashion world and the challenges a lot of fashion brands face as they try to preserve their heritage while also move into the future.

“This is a delicate task and is best accomplished when the set of rules are clear, when the DNA can be broken down to specific elements and when the grammar set in place allows the creative director to speak the language of contemporary fashion rather than an antiquated and tired reworking of elements from times past. Chanel, the brand, has evolved from specific points of departure but continues to explore their relationship with contemporary culture proposing creations that are both recognizable as Chanel staples and innovative applications of the original.”

In a brand statement, Mr. Lagerfeld explains, “Mademoiselle Chanel handed us down a style. And the style she advocated never dates. Chanel’s success was knowing how to get across the elements of her identity. Timeless music built around five notes by which women instantly recognize the essence of Chanel: luxury and refinement.”

Inside look
The Inside Chanel series, launched in 2012, takes a detailed look at elements that make up the Chanel brand. These explore both the label’s history and the life of its iconic founder.

Chanel previously shared the personal inspiration behind its color codes with a social video.

The label’s “The Colors,” the eleventh chapter of Inside Chanel, focuses on the shades that appear as a common theme throughout the label’s fashion, accessories and beauty lines. This video helps Chanel showcase the consistency it has maintained, even with multiple designers at the helm (see story).

Chanel’s efforts to open up its brand to the world have had measured impact on its desirability and positioning.

A recent Luxury Institute study 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. Chanel and French leather goods maker Hermès were ranked as the two fashion houses most worth their premium asking prices, followed by Christian Dior, Louis Vuitton and Prada.

Chanel was also ranked the most desirable luxury brand among wealthy Chinese women in a Promise Consulting survey, largely due to the label’s dive into its heritage through exhibits across the country.

“Let’s not forget that the audience in this case is varied,” Ms. Serdari said. “These videos are produced both for the audience at large but also for in-house consumption. It is extremely important for brands to update their own archives. Speaking of archives, let’s think of them in their most abstract meaning.

“This series of videos itself is a digital archive that has already incorporated material from the original paper archives, has enriched them with a narrative, storyline and contemporary graphic design and has released them to the new generation of customers but also fashion designers who can learn from them,” she said.

“Exploring a brand’s heritage for the sole purpose of flaunting it is a useless exercise–arrogant at its worst. To reflect on a brand’s heritage, update the format of its archives and draw lessons that can be useful within and without the brand is a test of the brand’s respect towards its audience, internal and external.”

Source: http://www.luxurydaily.com/chanel-defines-house-style-in-haute-couture-vocabulary-lesson/

February 19, 2016

Luxury Brands Putting More Weight Into Sustainability

Just Means
By: Vikas Vij
February 18, 2016

Luxury product consumers have increasingly become vocal about social and environmental causes, and more importantly, are willing to make a difference through their buying choices. Luxury companies also face increased attention from investors who want to know about a company’s sustainability practices before they invest.

Positive Luxury has a released a new report titled “2016 Predictions for the Luxury Industry: Sustainability and Innovation,” which examines impactful events from 2015 to forecast how the increasing recognition of climate change concerns will impact luxury in 2016.

Diana Verde Nieto, co-founder of Positive Luxury, London, said that sustainability will help luxury brands to de-risk their business and remain competitive. Together with the Luxury Institute, Positive Luxury conducted interviews with opinion leaders in the luxury lifestyle space, which included LVMH, Kering, Forevermark, IWC and the British Fashion Council, among others.

During the Paris climate summit, French luxury conglomerate LVMH took the opportunity to showcase its sustainability practices. LVMH, which owns brands such as Louis Vuitton and Bulgari, shared insights about its sustainability programs and strategies on its corporate Facebook account.

Kering, which owns brands such as Gucci, Saint Laurent, and Puma, is helping the world visualize its environmental impact with an interactive environmental profit and loss statement. To ensure transparency, Kering has presented this interactive statement on its website, depicting the various steps in production and environmental categories where it is making an impact.

Brands 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, while Dior has incorporated responsible lighting in a number of its international boutiques.

Additionally, brands are becoming more conscious about protecting the resource supply chain. Prada has purchased the French tannery Tannerie Mégisserie Hervy to ensure the skills held by its workers are preserved. In a similar move, Chanel purchased French lamb hide tannery Bodin-Joyeux in 2013.

Source: http://www.justmeans.com/blogs/luxury-brands-putting-more-weight-into-sustainability#sthash.4tGmYE1y.dpuf

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?

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/

November 10, 2015

Longchamp looks back on decade-long Jeremy Scott partnership

Luxury Daily
November 9, 2015

French apparel and accessories house Longchamp is celebrating its 10-year collaboration with designer Jeremy Scott through a new limited-edition Le Pliage handbag.

For the past decade, Mr. Scott, who designs for his own eponymous label and Italain label Moschino, has been lending his colorful aesthetic to Longchamp for special-edition versions of its iconic tote. Keeping lasting partnerships enables brands to forge deeper ties with their collaborators, while furthering the connection between the two parties in consumers’ minds.

Pairing up
Each year since 2006, Mr. Scott has taken one of his “cheeky,” pop culture-infused designs and used it to give Longchamp’s Le Pliage a new look. Because the leather goods brand and the designer have been working together for a long time, a strong trust has developed, and Mr. Scott is given carte blanche.

In a brand statement, Jean Cassegrain, CEO and the grandson of Longchamp’s founder, said, “Giving artists an outlet to express themselves is a way for Longchamp to step outside its comfort zone.”

Designs over the 10 years have included everything from a poodle in space or zodiac signs to a credit card or tire tracks. Longchamp has created a social video as a retrospective on the decade of designs, animating each bag’s subjects in the film.

The limited-edition for the anniversary features a postcard from Hollywood. On one side is a cartoon depicting a view from atop the Hollywood Hills, looking down on the cinematic city. The reverse shows a handwritten note from Mr. Scott, who says, “Wish you were here. Love, Jeremy.”

Consumers can enter to win the bag via an application on Longchamp’s Facebook page.

Collaborations can sometimes be risky for luxury brands, and half of affluent shoppers say that the biggest risk for a luxury partnership is the potential damage to the brand’s image or reputation, according to a survey from the Luxury Institute.

Overall the study found that most affluent shoppers enjoy brand partnerships, even with the risk. However, luxury marketers should pair up with brands that have the same goals and mindset when seeking partnerships.

Source: https://www.luxurydaily.com/longchamp-looks-back-on-decade-long-jeremy-scott-partnership/

 

September 30, 2015

Ralph Lauren hires Old Navy executive to replace him as CEO

Reuters
By: Siddharth Cavale and Kylie Gumpert
September 29, 2015

American designer Ralph Lauren, who built a fashion powerhouse on luxury designs inspired by country club chic, announced Tuesday he is stepping down as chief executive officer and named the head of Gap Inc’s populist Old Navy brand to the position.

Ralph Lauren Corp, founded by 75-year-old Lauren in 1967, appointed Stefan Larsson, the global president of Gap’s Old Navy division, as CEO effective in November. Lauren will continue to serve as executive chairman and head its design team, the company said in a statement.

Lauren, who got his start designing neckties, plans to stay active at the company and Larsson will report to him.

“When they start designing things I can’t understand, I’ll quit,” Lauren told the New York Times in an interview.

Ralph Lauren shares rose 3.79 percent to $108 in trading after the bell. Gap shares fell 3 percent to $29.30.

The company has been struggling to boost profits as a stronger dollar reduces the value of sales from overseas. Net revenue in its first quarter ended June 27 fell 5 percent, mainly due to currency fluctuations.

Odeon Capital analyst Rick Snyder said the company had grown to a size where it needed more “systems and controls.” The change in CEO “is just a natural progression,” Snyder said.

Milton Pedraza, a fashion industry analyst at the Luxury Institute, said Larsson’s appointment follows a trend of luxury brands hiring leaders from mass-market companies in recent months. He cited the appointment of Grita Loebsack, a former vice president at Unilever Plc, as CEO of Kering’s emerging brands, which include Stella McCartney and Gucci.

Larsson, 41, is credited with reviving sales at Old Navy, successfully implementing a model of offering trendy clothes at low prices.

Annual sales at the division rose 8 percent in 2014 and became Gap’s biggest business. Sales for the division were $6.62 billion, or 40.3 percent of Gap’s total.

Lauren’s fashion empire includes some 25 brands including Polo, Club Monaco and Denim & Supply, and the company makes clothing, accessories, furniture, home decor items and footwear under its labels.

Larsson, a Swede who before joining Gap was global head of sales at Hennes & Mauritz, brings experience of managing a fast fashion business with a supply chains considered to be among the most efficient within the apparel industry.

His appointment would be a good fit for Ralph Lauren which is seeking to reorganize and centralize business units and brands, Snyder said.

“If he comes from a place like H&M, he understands global supply chains and that’s one of the things that Ralph Lauren is trying to implement right now,” Snyder said. “It’s going to be very positive for them.”

Despite the aura of Anglo-Saxon elitism around his company, Lauren was born Ralph Lifshitz in the Bronx in 1939. His parents were Jewish immigrants from Belarus, and he changed his name to Lauren at age 16.

Lauren’s designs drew inspiration from elite and exotic realms including East Coast prepsters, the Wild West, colonists on African safari and czarist Russia. He designed the wardrobe for the 1974 film version of “The Great Gatsby” including a pink suit for star Robert Redford.

The Ralph Lauren Polo shirt, which debuted in 1972, became a signature item for the company with a tiny polo player embroidered on the chest.

His designs have been worn by presidential hopeful Hillary Clinton, actress Gwyneth Paltrow and actor Johnny Depp.

Lauren was also, perhaps surprisingly, influential in the hip hop world. His bright colors and bold clothing became staples for some New York gangs, and rappers such as Kanye West and Lil Wayne have mentioned Lauren and his designs in their rhymes.

The company also said that Jackwyn Nemerov, chief operating officer, would retire in November at which time she will become an adviser to the company.

Source: http://www.reuters.com/article/2015/09/30/us-ralph-lauren-ceo-idUSKCN0RT2NO20150930

August 13, 2014

Luxury Retail Summit 2014 New York Sept. 9: St. Regis, MissoniHome, Christie’s Watch Shop, Leading Hotels of the World, Breeders’ Cup, WSJ., Eleven James, Crest and Co.

Luxury Daily
August 13, 2014

Registration is open for the second annual Luxury Retail Summit: Holiday Focus 2014 conference Tuesday, Sept. 9, 2014 in New York featuring speakers from St. Regis, MissoniHome, Christie’s Watch Shop, The Leading Hotels of the World, The Breeders’ Cup, Crest and Co., Eleven James, WSJ. magazine, ForbesLife, Bloomberg Pursuits, Style Coalition and leading luxury-focused agencies and market researchers.

This daylong New York event is a must-attend for luxury retailers, luxury brands, publishers, ad agencies and market researchers looking for strategic and tactical advice, tips, case studies and research on luxury retailing, especially in the run-up to the holidays. At this exclusive summit organized by this publication at the National Museum of the American Indian across from Manhattan’s Battery Park downtown, attendees will get to listen and meet with key executives moving the needle for the luxury business including retail, marketing and media. The conference, whose agenda is below, will be limited to only 150 delegates.

“The key point for luxury brands and retailers heading into the holiday season is an eternal truth with a slight qualification: Know your customer – very well,” said Mickey Alam Khan, editor in chief of Luxury Daily, New York.

“Today’s luxury shopper is as sharp as a tack, sniffing out quality and value, looking for the unique experience that makes the best memory for self and loved ones,” he said. “With all the noise that the holidays bring, being heard, seen and bought with brand values and integrity intact will be the challenge in the months ahead.”

Retail detail
Attendees to the Luxury Retail Summit will hear how MissoniHome and Christie’s Watch Shop approach luxury retailing, especially as the holidays near.

Also ready to share experiences are senior executives from Starwood Hotels and Resorts’ St. Regis and The Luxury Collection, The Leading Hotels of the World, The Breeders’ Cup, Crest and Co., Eleven James, WSJ. magazine, ForbesLife, Bloomberg Pursuits and Style Coalition.

In addition, market researchers from Wealth-X, Wealth Engine, Shullman Research Center, Unity Marketing, Ipsos MediaCT, YouGov and The Luxury Institute will reveal valuable data, insights and analysis on luxury shoppers and shopping.

Finally, top executives from agencies, marketing service providers and retail consultancies such as RO-NY, STC Associates, Boston Retail Partners, iProspect and McCann Truth Central will debate whether marketing is keeping up with evolving consumer attitudes as online and mobile gain more mindshare.

Attendees will have access to all presentations made at the event.

The event is priced at $695 for the day, which includes breakfast, lunch and cocktails. Refunds will not be given 72 hours before the event or for no-shows on the day of the conference.

For sponsorship, please contact ads@napean.com for prompt attention.

The Luxury Retail Summit: Holiday Focus 2014 is part of this publication’s exclusive summit series including Luxury FirstLook and Luxury Roundtable. The events’ core point of difference is their strong editorial spine with a deep-dive into topics under discussion.

The summit agenda can also be accessed via http://www.luxuryretailsummit.com.

For the entire article click the link:http://www.luxurydaily.com/luxury-retail-summit-2014-new-york-sept-9-st-regis-missonihome-christies-watch-shop-leading-hotels-of-the-world-breeders-cup-wsj-eleven-james-crest-and-co-3/

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