Luxury Institute News

February 25, 2016

SURVEY REVEALS THE 5 LUXURY BRANDS RICH GUYS BUY MOST

D’Marge
By: Elyse Romano
February 25, 2016

When you finally get around to making that billion dollar app idea, what will you do with your new-found wealth?

First you’ll build a Scrooge McDuck money pool and take morning dips. But once that’s taken care of, your closet will need a big-money makeover. A new study by the Luxury Institute reveals the luxury brands that wealthy men love most.

Each brand was rated on quality, exclusivity, social status, and self-enhancement. Of 42 famous menswear purveyors – including Alexander McQueen, Salvatore Ferragamo, Prada, Paul Smith, and Gucci – Calvin Klein topped the list of brands that moneyed men have purchased from in the last year. Calvin also scored highly on name recognition, taking a second top spot on the list of brands men are most familiar with.

Rounding out the top five brands rich guys like to buy are Ralph LaurenHugo BossBurberry, and Giorgio Armani.

Source: http://www.dmarge.com/2016/02/survey-reveals-the-5-luxury-brands-rich-guys-buy-most.html

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 24, 2016

What Are The Best Luxury Brands?

Luxury Institute 2016 Global Survey Utilized Those Who Know, Voted – Affluent Men From Seven Countries Rank 42 Luxury Fashion Brands, Rate Each on Multiple Criteria

Pblicty
February 24, 2016

The New York-based Luxury Institute surveyed 3,900 high-income consumers from seven countries who met the following income thresholds in local currencies: United States ($150,000); United Kingdom (£60,000); France, Germany, Italy (EUR50,000); China (1 million CNY); and Japan (¥150 million).

Interestingly, “smaller brands now more than ever are finding it easier to make a big impact on the fashion industry in a relatively short period of time as they use the latest technology to bring their designs to a global stage,” says Luxury Institute CEO Milton Pedraza. “In this kind of landscape, both bigger and smaller fashion houses need to monitor the degree to which their brands resonate favorably with their target customers.”

Respondents rated 42 men’s fashion brands (0-10) on quality, exclusivity, social status, and self-enhancement. In addition, affluent shoppers weighed in on whether they are willing to recommend specific brands to family and friends. They also indicated which fashion brands are worth the premium prices, and which brands they are most likely to consider for upcoming fashion purchases.

Luxury Brand Status Index scores range from 0-10, and are an average of respondents’ degree of agreement with each of the following four statements:

- “This brand delivers consistently superior quality.”

- “This brand is truly unique and exclusive.”

- “This brand is purchased by people who are admired and respected.”

- “This brand makes its buyers feel special across the full customer experience.”

Worldwide popularity does not equate to higher brand status. In fact, each of the top five men’s fashion brands are smaller Italian designers with which only a very few affluent men were familiar.

Gianluca Isaia is a worldwide standout for being purchased by people who are admired and respected, and was also named the best brand at making buyers feel special across the full customer experience. In addition, 75% of men who are familiar with the Isaia brand would recommend it to others. Despite being held in high esteem by affluent travelers, Isaia is not a well-known name, identified by only 3% of men surveyed.

Calvin Klein is the brand that men around the world are most likely to have purchased in the past year, even though Calvin Klein ranks last in overall LBSI score among all brands evaluated. Ralph Lauren is the brand most likely to be considered the next time a fashion purchase is made, and it is among the three most popular brands along with Calvin Klein and Brooks Brothers among affluent U.S. men.

Worldwide, the top five fashion brands with which affluent men are most familiar, and most likely to have purchased in the past year, are Calvin Klein, Ralph Lauren, Hugo Boss, Burberry, and Giorgio Armani. Armani is also one of the top five brands that affluent men from around the world view as most worthy of premium pricing. The top four are Hermès, Brioni, Ermenegildo Zegna, and Loro Piana.

The willingness of affluent shoppers to recommend a brand to family and close friends may be the best overall measure of satisfaction. On a global basis, wealthy men are most likely to recommend Gianluca Isaia, Loro Piana, Brunello Cucinelli, Brioni, and Ermenegildo Zegna.

Below are all 42 men’s luxury fashion brands under consideration in the 2016 LBSI survey:

1. Alexander McQueen

2. Balenciaga

3. Bally

4. Bottega Veneta

5. Brioni

6. Brooks Brothers

7. Brunello Cucinelli

8. Burberry

9. Calvin Klein

10. Canali

11. Dior Homme

12. Dolce & Gabbana

13. Dunhill

14. Ermenegildo Zegna

15. Etro

16. Faconnable

17. Salvatore Ferragamo

18. Giorgio Armani

19. Gianluca Isaia

20. Givenchy

21. Gucci

22. Hermes

23. Hugo Boss

24. Jil Sander

25. John Varvatos

Source: https://www.pblcty.com/article/12645/what-are-the-best-luxury-brands

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

May 5, 2015

The latest fashion trend among millennial men? Luxury cologne

Fortune
By: Shivani Vora
May 1, 2015

These four luxe fragrances are part of a growing market for younger male shoppers.

Luxury men’s fragrances are no longer mass produced bottles priced in the high double-digits and available at every department store; the latest upscale scents for men are sold selectively at boutiques, usually cost several hundred dollars, and are often blended by hand in small batches with top quality ingredients sourced from around the world.

According to the Chicago-based market research company Euromonitor International, sales in the U.S. of men’s premium fragrances, classified as labels sold in department stores, grew from $1.28 billion in 2004 to $1.47 billion last year. Those numbers are still dwarfed by the $3.7 billion of sales last year for women’s fragrances in the same category, but the segment is growing as it increasingly appeals to younger consumers.

Milton Pedraza, the founder of the New York City-based luxury research and consulting firm The Luxury Institute, says that men, particularly those in the millennial generation, are becoming enamored with expensive colognes in the same way that they are with fashion. “There is a big movement today of men who have spare money to spend are using it to look good, and fragrance is part of that trend,” he said.

Here are four of the latest luxe colognes to try this spring.

Reckless by Roja Parfums

Courtesy of Roja Parfums

British perfumer Roja Dove, who is known for statement-making scents that often run into the four figures, wanted to create a blend for men who aren’t afraid to take risks, and this spicy and fresh rendition is it. Black pepper, musk, clove, and cedar wood are the most prominent notes, and in a nod to the luxury Dove is famous for, the plaque on the bottle is dipped in 18 carat gold while the cap is made of hand-cut Swarovski crystals. $480, bergdorfgoodman.com

Akkad by Lubin

Courtesy of Lubin

Parisian perfumery Lubin, which dates back to the 18th century and handcrafts fragrances today in its Left Bank atelier, introduces this heady scent, the sixth in its collection for men. It’s named for the ancient and powerful empire part of Mesopotamia and has prominent notes of spicy amber, citrusy mandarin and bergamot; woody and rich patchouli and sweet vanilla are also evident but more subtle. $180, luckyscent.com

New York Sandalwood by Bond No. 9

Courtesy of Bond No.9

The more than decade-old New York City-based brand has a cult following for its upscale women’s fragrances, but this new unisex version is sure to win some male fans too. Like the name suggests, warm and smooth sandalwood, derived from the fine-grained wood of tropical trees, is the main attraction while earthy carrot, spicy cardamom and ripe figs figure into the background. Whether you’re into the scent or not, the attractive gold bottle it’s in is a keeper. $330, bondno9.com

Charming California 215 by Krigler Perfumes

Courtesy of Krigler Perfumes

New stores call for new scents—at least according to the more than century-old New York City and Monte Carlo-based label that’s a favorite of royals around the world and introduced this fresh and light fragrance in celebration of the recent opening of its boutique at the Four Seasons in Beverly Hills. Inspired in part by the jacaranda, a blue flowering tree that flourishes in both Los Angeles and the French Riviera, the perfume is a pick-me-up combination of coriander, orange blossom, green tea and cedar wood. $315, krigler.com

Source: http://fortune.com/2015/05/01/luxury-mens-cologne/