Luxury Institute News

March 17, 2014

Wall Street Shares Wealth, for Better or Worse

By: Martha C. White
NBC News
March 15, 2014

The $26.7 billion in bonuses that Wall Street hauled in last year will help fill city and state tax coffers, and certainly boost retailers when bankers sport Patek Phillipe wristwatches and slip into Maseratis. But all that green is a double-edged sword for New York City.

Wall Street bonuses grew by 15 percent in 2013, to an average of $164,530, according to the New York State Comptroller’s office. Milton Pedraza, CEO of research firm the Luxury Institute, estimated that Wall Streeters spend between half and three-quarters of their bonuses, then save or invest the rest, and about half the amount they spend is funneled into the local economy.

Because they spend an incredible amount of money in their jobs, “I think that spills over in their personal life,” said David Friedman, president of research and consulting company Wealth-X.

Click the link to read the entire article: http://www.nbcnews.com/business/economy/wall-street-shares-wealth-better-or-worse-n53071

March 10, 2014

Luxury Institute Reveals Wealthy Gamblers’ Rankings And Specific Critiques Of Casinos in Las Vegas, Atlantic City And Connecticut

(NEW YORK) March 10, 2014 – For the past two decades, casinos at top gambling resort destinations in the United States have expanded on a grand scale and competed aggressively to attract high-end travelers. To find out how these casinos are currently perceived by wealthy consumers, the New York-based Luxury Institute surveyed men and women 21 and older with a minimum household income of $150,000 to gather detailed opinions and ratings of top casino resorts in three major U.S. gambling destinations:

Las Vegas: ARIA, Bellagio, Caesars Palace, Cosmopolitan, Encore, Mandalay Bay, MGM Grand, Mirage, Palazzo, Venetian, and Wynn Las Vegas

Atlantic City: Borgata Hotel Casino & Spa, Caesars Atlantic City, Golden Nugget, Harrah’s Resort, Revel Casino Hotel, and Trump Taj Mahal

Connecticut: Foxwoods and Mohegan Sun

Results from this 2014 Luxury Brands Status Index (LBSI) include an overall ranking of each property given eight attributes of status related specifically to casinos: luxurious guest rooms, superior service staff, unique dining options, attractive gaming floors, lavish pool areas, clubs, appealing entertainment, and desirable retail stores.

Wealthy travelers also assess each property’s worthiness of a significant price premium, and whether or not they would recommend it to family, friends and business associates.

Results show significantly higher LBSI scores for Las Vegas casinos compared to East Coast properties. One notable exception is the Borgata in Atlantic City.

“Even as more cities in the United States start to open casinos, Las Vegas is clearly still the leading destination for luxury properties, especially for affluent travelers,” says Luxury Institute CEO Milton Pedraza. “All elements of the casino, not just the gaming floors, are now crucial to create unique customer experiences.”

Respondents have average income of $370,000 and average net worth of $3.1 million.

Please visit us at www.LuxuryInstitute.com and Contact Us with any questions or for more information about specific brand rankings.

About the Luxury Institute (www.luxuryinstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers globally about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Customer Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

March 6, 2014

Would You Pay 70 Per Cent More For Chanel?

By: Lauren Milligan
Vogue.com
March 5, 2014

IT’S not just the recession and higher property and living costs that’s making you think it, the price of luxury goods is actually rising. The Wall Street Journal reports that the price of a quilted Chanel bag has on average risen by 70 per cent in the past five years, while Louis Vuitton’s classic Speedy bag is 32 per cent more expensive in America than it was in 2009.

There are several theories behind the increases – which represent a general trend across the luxury goods industry, including watches and jewellery. Some say the prices are intended to help customers differentiate between the high-end brands and their increasingly popular mid-market competitors.

“The more Tory Burches and Michael Kors there are, the more the Chanels and Louis Vuittons will try to price up,” said Milton Pedraza, chief executive of the Luxury Institute, told the WSJ. Others explained that the price increases, although far outpacing inflation, were unavoidable in order to maintain quality – thanks to rising production costs.

Click the link to read the entire article: http://www.vogue.co.uk/news/2014/03/05/price-increases-for-luxury-items—chanel-louis-vuitton-bags

March 5, 2014

Niche perfumers sniff opportunity

Artisans have a nose for fresh alternatives to mass-market fragrances.

By: Cara S. Trager
Crain’s New York Business
March 4, 2014

Tucked away in a TriBeCa basement, behind a sliding glass door, is a by-appointment-only custom—fragrance studio, elegantly decorated with antique furnishings, floral pictures and South African artifacts.

It’s all part of Sue Phillips’ strategy to infuse her one-of-a-kind fragrance shop, Scenterprises Ltd., with an air of exclusivity. And inside the 350-square-foot space, Ms. Phillips reinforces that mystique as she helps patrons discover their olfactory preferences and then blends fragrant drops from assorted small bottles to create scents just for them.

Private one-hour consultations run $350 per person and include a half-ounce bottle of handmade, personal perfume. Refills run $85 for a half-ounce.

Click the link to read the entire article which includes several quotes from Milton Pedraza, CEO of Luxury Institute: http://www.crainsnewyork.com/article/20140304/SMALLBIZ/303029994/niche-perfumers-sniff-opportunity

March 3, 2014

Soaring Luxury-Goods Prices Test Wealthy’s Will to Pay

Sales Growth Slows as Competition Heats Up; ‘Prices Have Gotten Really Crazy’

By Suzanne Kapner and Christina Passariello
Wall Street Journal
March 2, 2014

Despite expanding into new markets, the luxury-retail business has been relying on price increases to drive sales. Now, even the very wealthy are nearing the limits of what they are willing to spend.

In the past five years, the price of a Chanel quilted handbag has increased 70% to $4,900. Cartier’s Trinity gold bracelet now sells for $16,300, 48% more than in 2009. And the price of Piaget’s ultrathin Altiplano watch is now $19,000, up $6,000 from 2011.

Click the link to read the entire article which includes a quote from Milton Pedraza, CEO of Luxury Institute: http://online.wsj.com/news/articles/SB10001424052702304585004579415110604829016?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304585004579415110604829016.html