Luxury Institute News

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.



October 27, 2015

Relationship building critical to luxury retail: Luxury Institute CEO

Luxury Daily
October 27, 2015
By: Sarah Jones

LONDON – The human element is going to be the top differentiator among luxury brands going forward, according to the CEO of Luxury Institute at Luxury Interactive Europe 2015 on Oct. 26.

As consumers increasingly experience the world through screens, they will come to crave the now-rare human connection. Here is where luxury brands can help themselves stand apart by outperforming their peers at relationship building and delivering a worthwhile personal touch.

“As consumers are more sophisticated, and as products become more commoditized, it’s the delivery of an optimized experience across channels that is critical and that high performance client relationships are our differentiators,” said Milton Pedraza, CEO of Luxury Institute, New York.

Brand image
Brands are struggling to define themselves, especially as they bleed into more affordable price points. For instance, a representative from an Italian jeweler told Mr. Pedraza that his brand does not know its own identity anymore, after a move down market left it straddling premium and exclusive.

Luxury Institute client Nordstrom now makes half of its sales via outlet stores. Recognizing that the customer retains a level of mystery, Nordstrom similarly remains ambiguous. Despite this non-specific label, the retailer still scores first in customer service in surveys conducted by the consultancy.

Nordstrom Anniversary Sale
Nordstrom heavily promotes its anniversary sale on social media

Consumers are becoming more sophisticated, and brands need to optimize their user experience for their requirements.

Across channels, brands in the luxury space are struggling to connect the dots between policy, procedure and system to deliver a rewarding customer experience.

While 37 percent of men and 49 percent of women find browsing without help from a store associate to be most effective, this does not remove a brand’s place in the process. For brands to guide consumers’ exploration, they should include signage in an on-brand way or have store associates communicate with the shopper to help them find what they are looking for.

Valentino Rome store women
Valentino store in Rome

Even in the digital space, which tends to be thought of as a do-it-yourself shopping channel, the human element cannot be entirely removed. Walmart might be able to automate and take out that the personal interaction from the buying experience, but for luxury brands, the relationship is everything. It is especially important to invest in this personal approach for top tier clients.

Therefore, sales associates should be taught interpersonal skills, such as trustworthiness. While often thought of as innate, these can be learned. Ensuring that all associates are pulling their weight will also help to retain top frontline employees over time.

For best practices, Mr. Pedraza suggests looking outside of the luxury industry rather than studying peers. Those that excel at relationship building are within the military, medicine and airline industries. For instance, brands can look to the military, which has developed successful methods of empowering soldiers, to gain insights on store associate education and guidance.

Making a connection
Mr. Pedraza asked each of the tables to discuss what changes they would make to their organizational structure, front line associates and compensation to help foster strong client relationships.

Ideas from around the room included rotating employees within roles to develop empathy, looking at the company from the consumer’s perspective and empowering sales associates with access to technology and a CRM system. Other suggestions included new roles, such as a customer information officer, which would span sales and marketing.

After hearing from the room, Mr. Pedraza shared his suggestions. These include empowering employees by shifting the organizational structure from a top-down management style to one where individuals are self-managed.

Milton Lux Int Europe
Milton Pedraza

On the same note, employees should be educated rather than trained, with the focus on ideas for creative relationship building rather than delving out a strict formula to follow.

Associates should be compensated for their actions, such as messages sent and appointments booked, rather than their sales results.

Brands should also make sure that each and every member of their team fits the culture. For many companies, this would mean eliminating employees who do not want to talk to anyone.

In addition, brands should ensure that the technology they are providing their staff with is up-to-date. Ineffective systems are often a dealbreaker for associates, particularly younger employees, and they will take their talent elsewhere.

While technology can help to deliver a high-touch experience to consumers, data and automation cannot replicate the level of engagement that a salesperson can create with shoppers, according to an executive from Moda Operandi at Luxury Interactive 2015 on Oct. 13.

Moda Operandi employs stylists, who work with its most valued consumers to provide personalized recommendations and one-to-one communications, but the process being used to deliver this service was tedious. Keeping the same human touch business model, Moda Operandi built a new platform to help its stylists deliver more relevant, visually appealing messages to the most important customers (see story).

“The key is that we’ve created these great channels, but we haven’t connected the dots,” Mr. Pedraza said. “And that I think is the critical issue.

“It’s not that we’re not innovating in each of those channels. It’s that we have not connected the dots to the point where, for example, a sales associate is empowered and inspired and maybe incentivized to send the client online,” he said. “Or that when the client buys online, the sales associate reaches out with a thank you card and a follow-up.

“We haven’t figured out those little basics that really create realtionships. Today we are very digital, very technical, we’ve disempowered the people in the stores, is one of my premises. We haven’t connected the dots, as simple as they are to connect, whether it’s technologically or humanistically, we haven’t figured out the policies, the procedures, the systems yet.”


October 26, 2015

Some brands fail to reach women

October 26, 2015

NEW YORK: When it comes to marketing to affluent women, some brand categories are notably more successful than others and have even improved the perception of their marketing efforts over the past three years, a new survey has shown.

Luxury Institute, a New York-based specialist research firm, ranked industries based on their success marketing to women with a minimum annual household income of $150,000 and then compared the results with a similar survey it conducted in 2012.

It found the top industries considered to be doing a good job marketing to women are clothing (75%), shampoos and conditioners (74%), fragrances and cosmetics (72%) and shoes (72%).

Compared to 2012, each of these categories achieved a wider share of women who view their marketing efforts favourably, but the jewellery and watch sector saw the biggest improvement, rising to 62% positivity from 53% in 2012.

However, the survey – which did not include a sample size – also identified industries that continue to lag in their marketing to affluent American women.

Among industries that these women say are faring badly in their marketing efforts are insurance, liquor, electronics and banks, each of them gaining approval ratings of less than 5%.

In addition, just 6% of respondents view the car industry favourably and other poor-performing sectors include real estate (7%), home improvement (8%), credit cards (13%) and pharmaceuticals (15%).

“Women maintain huge economic power and it is a necessity for companies to step up marketing and how they connect with affluent women regardless of industry,” said Milton Pedraza, CEO of the Luxury Institute.

“Research that includes speaking directly with these women about what appeals to them and what turns them off removes much of the guesswork in making marketing decisions,” he added.

Part of that research could involve marketers taking account of the age profiles of their target audience as the survey also revealed that older women are more receptive to marketing activity.

Affluent women aged 45 to 64 generally feel that brands across industries are doing well when marketing to them, the report found, but this positive response drops among younger generations.


October 22, 2015

Tesla, Musk shine from free celebrity marketing, but will it last?

Automotive News
October 22, 2015

SAN FRANCISCO (Bloomberg) — When “The Late Show With Stephen Colbert” debuted on CBS last month, the host chose Tesla CEO Elon Musk as one of his first guests.

Colbert, who commutes into Manhattan in a Model S sedan, took his enthusiasm for Tesla Motors Inc. one step further in an episode last week. He spoke for almost six minutes about his car’s latest autopilot features, the march toward self-driving vehicles and efforts by competitors Apple, Google and Uber.

“I love my Tesla — it’s so fast, it’s all electric,” he told viewers. Comparing his car to a laptop computer on wheels, he said that with the company’s latest over-the-air software update, “Tesla owners woke up to find their cars could drive themselves.”

That glowing Colbert report shows how Tesla benefits from celebrity enthusiasm — for free, from customers that include Oprah Winfrey — to promote the brand. Throw in some viral Internet clips, test drives and customer referral programs, and Tesla is able to spend money on developing products instead of on marketing. In stark contrast to other automakers, Tesla doesn’t currently pay for traditional media such as television, radio or print advertising or celebrity sponsors.

“The Colbert segment was amazing because it was so long, it was Colbert, it was Colbert’s new show and instead of being playfully sarcastic he was overwhelmingly positive,” said Lincoln Merrihew, senior vice president of client services for Millward Brown Digital in Boston, who first watched the Colbert clip on YouTube. “The magic of a celebrity evangelist is that they love a product so much that they will talk about it for free. It was more than a simple endorsement; it was more like a commercial.”

That air time is valuable. On average, 30-second spots on the “Late Show” will average $38,400 from Colbert’s debut through the end of the fourth quarter, according to media-cost forecaster SQAD Inc. It helps, of course, that the 44-year-old Musk is a brand and a celebrity in his own right — making him a worthy guest — as well as a deft user of social media.

Stock decline

At the moment, Tesla can use a little extra fan love. Its once high-flying stock has fallen to the low $200s from its July peak at $282 in the wake of last month’s long-awaited introduction of the company’s Model X SUV. Three analysts have cut their price targets amid concerns that Tesla, which aims to deliver at least 50,000 vehicles this year, faces a steep production ramp in the fourth quarter.

On Tuesday, the Model S lost its recommendation from Consumer Reports after owners complained about quality issues as mundane as a squeaky sunroof to major issues like the electric motor needing to be replaced, the publication said in its forthcoming December issue. The Consumer Reports news sent shares tumbling 6.6 percent to $213.03, its biggest drop since Aug. 6.

Musk has pushed back on Consumer Reports via Twitter, saying the publication’s reliability survey “includes a lot of early production cars. Already addressed in new cars.”

Fan power

The auto industry already is also legend with celebrity ads, from Matthew McConaughey’s oft-parodied commercials for Lincoln to Clint Eastwood’s two-minute “It’s Halftime in America” spot for Chrysler, a hit of the 2012 Super Bowl.

For Tesla, the celebrities do the work on their own accord, not for a paycheck. Stars such as actress Alyssa Milano, director Jon Favreau, and Teller, the silent partner in the magic duo Penn & Teller, have praised Tesla or promoted the brand to their social-media followers in an increasingly fragmented media market.

Teller’s “customer story” is one of several that can be read in full on Tesla’s website. Oprah shared photographs of her recently purchased white Model S with her millions of followers on Instagram and Twitter. Colbert talked in detail about autopilot — a Tesla product announcement — just as it came out.

“On a daily basis, Stephen brings a smart comedic voice to all types of topical issues,” said CBS in a statement. “We don’t tell him what to say, but we certainly enjoy it.”

Automotive advertising

Other automakers usually have to rely on traditional marketing. General Motors, Ford Motor Co. and Fiat Chrysler Automobiles all rank among the top 10 advertisers in the U.S. in terms of money spent, according to Advertising Age, an affiliate of Automotive News. In 2014 alone, GM spent almost $1.7 billion on advertising in the U.S., according to Kantar Media; Ford spent $841 million and Fiat Chrysler spent $1.1 billion. Those figures are just from the manufacturers and don’t include the vast millions that dealerships spend as well.

In its annual report filed earlier this year, Tesla notes that “we have been able to generate significant media coverage of our company and our vehicles, and we believe we will continue to do so.” But the Palo Alto, Calif.-based company also notes that “to further promote our brand, we may be required to change our marketing practices, which could result in substantially increased advertising expenses.”

For now at least, Tesla’s strategy is working.

“Colbert benefits from talking about Tesla, because it’s a brand that his millennial audience associates with,” Milton Pedraza, CEO of the Luxury Institute, said in an interview. “It’s a massive multiplier effect that is equivalent to spending tens of millions of dollars on media. Tesla doesn’t advertise: They are playing the game of not playing the game, and you win by that. They are doing it brilliantly.”


She Who Controls the Purse Strings

October 22, 2015
By: Danielle Max

There’s good news from a recent survey released by the Luxury Institute, which revealed that watch and jewelry companies are more successfully marketing to affluent women these days. In fact, 62 percent of respondents said that these companies do a good job of marketing to them; up from 53 percent in 2012.

The research from the New York-based Luxury Institute ranks industries and specific brands based on their success marketing to women with a minimum household income of $150,000 per year. Respondents reported average household income of $289,000, and a $2.9 million average net worth, so these are exactly the sort of households that the diamond and jewelry industries need to be targeting.

Overall, the watch and jewelry category ranks fifth among industries trying to sell their goods to women – and, given that high-ticket items such as watches and jewelry are not exactly a spur of the moment purchase – that seems pretty good to me.

The top four industries most frequently viewed as doing a good job marketing to women from high-income households through advertising and social media are clothing (75%), shampoos and conditioners (74%), fragrances and cosmetics (72%) and shoes (72%).

And it seems that marketeers overall are doing a better job of selling to what is clearly a key demographic. The Luxury Institute says that compared to 2012, each of these categories enjoys a wider share of women who view their marketing efforts favorably.

However, lest you think the gender gap is a thing of the past, among the industries that affluent women say are doing the poorest jobs of marketing to them are insurance, liquor, electronics, banks, brokerages and private jets, each of which earns an approval rating of less than 5 percent and has fallen in approval since 2012.

In addition, the automobile industry also needs to stop thinking (and acting as if) men hold the purse strings. Apparently, only 6 percent of women are impressed by the efforts of car companies to market to them.

Of course, it’s not just money that comes into play in such issues. According to the research, affluent women in the 45-64 age bracket are much more likely than women under the age of 45 to say that companies are doing well in marketing specifically to them.

Part of the problem seems to be that companies just don’t seem to realize who they should be targeting. The Luxury Institute specifically singles out married women who, according to its research, make two-thirds of all household purchasing decisions.

“Women maintain huge economic power and it is a necessity for companies to step up marketing and how they connect with affluent women regardless of industry,” says Luxury Institute CEO Milton Pedraza. “Research that includes speaking directly with these women about what appeals to them and what turns them off removes much of the guesswork in making marketing decisions.”

We couldn’t agree more.

Have a fabulous weekend.


Women neglected by marketers despite making two-thirds of household purchases

Luxury Daily
October 22, 2015
By: Staff Reports

Brands in the apparel, personal care and footwear sectors are among the best at marketing to affluent women, according to research by Luxury Institute.

The best industries targeting affluent women through advertising and social media do not come as a surprise, but it does shine a light on the sectors that are not doing well at focusing their attentions on this demographic of wealthy consumers. Survey respondents felt that the industries doing the least to target affluent women include insurance, liquor, consumer electronics, banks and brokerages and transportation including automobiles and private jets.

Luxury Institute surveyed women ranging in age from 21-years-old to more than 65-years-old with a household income minimum of $150,000 per year. The respondent pool’s had a reported average household income of $289,000, and a $2.9 million average net worth.

A battle of the affluent sexes
When it comes to marketing to a female demographic, brands in apparel (75 percent), shampoos and conditioners (74 percent), fragrances and cosmetics (72 percent) and footwear (72 percent) unsurprisingly fared the best.

In regard to the industries that are failing at capitalizing on the purchasing power of affluent women, each had an approval rating of less than 5 percent. This approval rating has continued to fall since 2012.

Efforts put forth by automotive brands, for instance, have only impressed 6 percent of the female respondents. Although traditionally associated with a masculine culture, the auto industry should expand its marketing efforts to cater to the sentiments of its female consumers, especially those with families, by touting the safety of high-end vehicles.

On the corporate side, automakers have made strides in being more inclusive of females in general. For instance, British automaker Aston Martin looked to close the gender gap in engineering by teaming up the Royal Air Force to introduce female students to various career routes (see story).

Sectors improving outreach to female consumers include the jewelry and watch sector, which has seen the largest improvement over the past three years. Sixty-two percent of respondents felt that these brands do a good job marketing to their demographic, a 53 percent increase from 2012.

In addition, department stores are listed sixth, with 60 percent of affluent women appreciating the efforts put forth by retailers.

Lux institute.womens marketing graph
Graph provided by Luxury Institute 

Across the board, older affluent women aged 45-64 felt that brands across industries are doing well when marketing to their demographic. This response was much more likely from the older age group than it was for women 45-years-old and under.

But, 25 percent of women 21- to 44-years-old felt that the wine industry is not doing enough, or not marketing to them well enough. This propensity decreases with age, with 21 percent of 45- to 54-year-olds, 16 percent of those between the ages of 55 and 64 and 12 percent ages 65 or older approve of the wine category’s marketing efforts.

In a statement, Luxury Institute CEO Milton Pedraza said, “Married women tell us that they make two-thirds of all household purchasing decisions. Women maintain huge economic power and it is a necessity for companies to step up marketing and how they connect with affluent women regardless of industry. Research that includes speaking directly with these women about what appeals to them and what turns them off removes much of the guesswork in making marketing decisions.”


October 12, 2015

Luxury retailers facing slowing growth

By: Nova Safo
October 12, 2015

Luxury brand giant LVMH reports third-quarter earnings Monday, amid concerns of a slowdown in China taking its toll on luxury brands.

LVMH has had a good year. It reported 19 percent revenue growth in the first half of 2015.

The company owns 70 luxury brands ranging from wine and perfume, to clothing and watches, including Louis Vuiton, Donna Karan, Tag Heuer, Moet and Marc Jacobs. It has almost as many stores in Asia as it does in Europe. And that has exposed the company to the economic slowdown in China.

“Luxury growth trends are slowing down,” said industry consultant Milton Pedraza of the Luxury Institute.

A lot of that slowdown has been attributed to China. But, Pedraza said U.S. sanctions on Russia and Brazil’s economic slowdown are also responsible.

As for Chinese consumers, they are still buying luxury items, just not in China, said luxury retail analyst Paul Swinand of Morningstar. The Chinese are going to Europe, he said, where “prices are actually 30, 40 even 50 percent lower.”

And that has meant increases in sales in some European markets, he said, while Asian markets have seen declines. Even in the U.S., luxury brand CEOs have reported slowing traffic in stores, Pedraza said. A lot of this has to do with currency valuations, he said.

As a counter move, luxury brands have been investing in e-commerce. LVMH recently hired an Apple executive to lead its digital operation.

“If you’ve only got so many Cartier, or Omega, or Rolex watches made in the world, then it really doesn’t matter where you sell them,” Swinand said, predicting that, eventually, e-commerce sales could add up to as much as 20 percent of a luxury retailer’s revenues.


October 3, 2015

Can a fast fashion vet steer Ralph Lauren’s ship?

Retail Wire
By: Tom Ryan
October 2, 2015

Shocking many fashion insiders, Ralph Lauren Corp. hired Stefan Larsson, a former H&M executive and president of Old Navy, to replace Ralph Lauren as CEO.

Mr. Lauren, 75, will remain active as executive chairman and chief creative officer and is expected to continue to oversee the luxury side. Mr. Larsson will report to Mr. Lauren in what’s described as a “partnership.”

Mr. Larsson, 41, is credited with reviving Old Navy after taking over in 2012 with a focus on upgrading design and bringing over some quick-turnaround supply chain tricks he learned in his 15 years at H&M. He takes over as CEO of Ralph Lauren Corp. in November.

Ralph Lauren Corp.’s revenues slid 5.3 percent in the second quarter due to a strengthening dollar that affected both overseas profits and tourist traffic at its stores in the U.S. The company has also faced heightened competition in the luxury channel this year. Shares are down around 40 percent this year.

The recruitment of Mr. Larsson was the latest example of the insular luxury industry looking outside for talent. LVMH recently hired an Apple executive as chief digital officer, Chanel SA’s CEO spent 15 years at Gap, and Grita Loebsack, a former VP at Unilever Plc, was recently hired as CEO of Kering’s emerging brands, which include Stella McCartney and Gucci.

Stefan Larsson
Stefan Larsson – Photo: Gap, Inc.

“You see a lot of luxury brands now recruiting from other industries,” Milton Pedraza, the CEO of the Luxury Institute, a research firm, told The Wall Street Journal. “They need executives with skills the luxury industry doesn’t necessarily have such as an expertise in global distribution or digital marketing.”

Mr. Larsson, who is Swedish, is expected to be useful in expanding Ralph Lauren’s business overseas. An outside CEO may also make aggressive calls to reduce expenses and bring more sophistication to an organization.

Odeon Capital analyst Rick Snyder told Reuters the company had grown to a size where it needed more “systems and controls.”

The New York Times said that for the legendary designer, the hiring “indicates that he, at least, feels it is still important to separate the roles and have a professional manager running the brand and reassuring Wall Street.”

Still others felt the business model may be due for a more radical change, with department store growth slowing and fast-fashion retailers like H&M, Uniqlo and Zara leading fashion’s growth.

“Larsson has a track record of expanding very well,” longtime industry analyst Walter F. Loeb told the Daily News. “His contribution to Ralph Lauren will be global expansion and, more importantly, discipline within the company.”


September 30, 2015

Ralph Lauren hires Old Navy executive to replace him as CEO

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.


September 17, 2015

What The Apple Watch Hermès Tells Us About the Future of Tech and Luxury

By: Eustacia Huen
September 17, 2015

Last week, Apple unveiled Apple Watch Hermès, a new collection of Apple watches that links the tech giant with French fashion house Hermès for a striking opening act to fashion month. The new watches in stainless steel feature an etching of Hermès signature and a customizable face with three exclusive dial designs inspired by Clipper, Cape Cod and Espace Hermès watches.

Joined by the brands’ mutual focus on design, the Apple Watch Hermès is a result of what Pierre-Alexis Dumas, artistic director of Hermès called “an alliance in excellence; like horse and carriage, a perfect team.” Beyond the obvious strategic move of two companies at the top of their games, the partnership holds implications about the future of tech and luxury.

First of all, there is the obvious progression of tech products becoming more luxury-oriented, and luxury products becoming more tech-oriented. The Apple Watch is unique for having no visible Apple logo when the product is being worn. Giving Hermès the limelight, Apple is able to reach out to an affluent yet fashion-centric audience that was not previously reachable. Coupled with the fact that Apple shelled out for plenty of advertising pages in Vogue and delivered devices to models, the brand sends a clear signal that it’s trying to sell the Apple watch to the fashion world. As for Hermès, a 178-year-old brand famous for its iconic handbags and leather goods, entering any partnership like this is a rare yet strong statement that it wants to be viewed as contemporary.

With Apple wanting a luxurious edge, and Hermès hoping to branch out from their ‘wealthy grandmother and mother’ clientele, the Apple-Hermès partnership also informs us about the millennial demographic targeted by both companies, according to Milton Pedraza, CEO of the Luxury Institute.

Perhaps the best way to understand the demographic, as the luxury expert noticed, is the pricing of the watches. Ranging from $1,100 for the 38mm stainless steel case with the Single Tour (single band) to $1,500 for the 42mm stainless steel case with the cuff, the Apple Watch Hermès is not the most expensive watch for either brands.

While I think the Apple Watch Hermès could benefit from more refined elements from Hermès and more technological features from Apple, it’s a decent first attempt nonetheless. According to Pedraza, the collaboration is significant as it marks the transitional period before millennials become fully capable as primary consumers. And during this “period of positive disruption and innovation,” there are a few things he said we should expect: “Even fewer people will visit actual stores, and future products—whether they are in the tech or luxury market—will become more experiential.”


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