Luxury Institute News

May 15, 2012

Will Christian Louboutin Beauté dilute the brand name?

By Tricia Carr
Luxury Daily
May 14, 2012

French footwear designer Christian Louboutin will begin selling beauty products in late 2013, which could leverage the brand across a mainstream category as long as it does not dilute the name.

Louboutin announced last week that it will partner with Batallure Beauty to create and market Christian Louboutin Beauté products. While some experts say this is a good move to broaden the consumer base, others feel that a beauty line could dilute the brand.

“Christian Louboutin has established a strong brand around a single product line of high-end designer shoe with the immediately-recognizable red sole,” said Karen Kreamer, president of K2 Brand Consulting, Overland Park, KS. ”Extending the brand into beauty products is a good first step before determining how, or if, the brand should be further extended.

Click the link to read the entire article which includes quotes from Milton Pedraza, CEO of Luxury Institute: http://www.luxurydaily.com/christian-louboutin-enters-beauty-biz-with/

March 3, 2012

What DiorMag says about the brand

By Rachel Lamb
Luxury Daily
March 2, 2012

French fashion label Christian Dior announced the launch of DiorMag, an online magazine that positions the brand as an innovative storyteller, entertainer and purveyor of the height of luxury products.

DiorMag is available as a section on the Dior Web site and includes articles, images, current news and product galleries. DiorMag has the potential to secure brand loyalists and drive transactions, per experts.

“I think what the magazine does is that it tries to  create a lot of relevant and interesting content about the brand and the people behind it,” said Milton Pedraza, CEO of the Luxury Institute, New York. “Therefore, it’s a great vehicle for storytelling that educates and entertains consumers and that enhances the opportunity to have consumers be loyal to the brand because they know the story behind it.

“It meets the criteria for great content, it’s not purely infomercial,” he said. “In this case, it’s well-optimized because it’s telling its own stories with objectivity and decorum, not just a hard-sell.”

Mr. Pedraza is not affiliated with Dior, but agreed to comment as an industry expert.

Dior did not respond before press deadline.

Dear Dior
DiorMag is split up into a few sections including report, monsieur Dior, Dior over the world and all about Dior.

In those sections are topics including woman, Dior Homme, baby Dior, fragrance, makeup, skincare, jewelry, timepieces and Dior phone. These are the sections of the Dior Web site.

Clicking on a topic or section pulls together all of the relevant articles.

One article currently on-site is “in real time,” a live-stream of the fall/winter 2012-2013 ready-to-wear collection today at 9:30 Eastern Time.

Another piece is “Miss au Pluriel,” a video and image gallery of brand ambassador Mila Kunis and the Miss Dior handbag campaign (see story).

The story “2012-1947: Now, then and back again” fully relays the history and depth of the Dior brand, which is a very important part of the magazine.

“Most media is undergoing rapid transformation today as digital convergence keeps lending to new ways for storytelling. interaction and innovation,” said Paul Farkas, president/CEO of Social.TV, New York.

“Luxury brands are now all high-powered media houses and digital magazines are one key way to attract consumers with enhanced and extended content,” he said.

Storied telling
DiorMag is one in a few brands that are upping connectivity through online publications.

For example, French fashion brand Chanel’s Chanel News site has a presence as its own site as well as on the brand’s mobile application.

Consumers can learn about the brand history, catch up on current news and see exclusive content.

In fact, Chanel’s new video for its Boy handbag collection, “My New Friend Boy” was released on the Chanel News site (see story).

In addition, Christian Louboutin has its own “Louboutin Times” newspaper that it uses to relay information and exclusive content.

“This is the next generation of digital marketing,” said Chris Ramey, president of Affluent Insights, Miami.

“Ease of shopping, along with speed and pleasure, add value to luxury brand magazine,” he said.

However, there are some drawbacks to a digital magazine.

“There are some clunky areas that will be fixed, and their contents page will become more attractive,” Mr. Ramey said. “A couple times I found myself back on the site rather than the magazine – and it wasn’t always natural where to explore next.”

However, Dior, Chanel and Louboutin have something that other brands do not – their history.

Legacy and heritage are two of the main weapons that old luxury brands have in their arsenal, per Luxury Institute’s Mr. Pedraza.

“This isn’t for every brand,” Mr. Pedraza said. “If you’re not well historically-endowed, you’ll have a hard time getting this across.

“However, Dior is fortunate that it has this legacy that it can draw on and contemporize,” he said.

http://www.luxurydaily.com/what-diormag-says-about-the-brand/

May 19, 2011

Sell Your Sole

Christian Louboutin’s red lacquer sole is even more valuable than you think

By Robert Klara
Adweek
May 18, 2011

You’re not likely to quicken the pulse of many fashionable women by mentioning Registration No. 902955, Pantone 18.1663TP, Class 25. But you’ll probably get much further by translating what this identification code—currently in the files of the World Intellectual Property Organization’s headquarters in Geneva—means to female shoppers around the world: a pair of Christian Louboutins.

More precisely, a pair of Louboutins with a red-lacquer sole. Infact, there is no other kind. The chic Parisian cobbler first slapped alittle red paint on the bottoms of his pumps
and platforms back in1993. Since then, his irreverent designs have used everything from toundra fur to blue Austrian crystals. But it’s those shiny, inevitable red soles that have become a veritable trademark.

Make that a literal trademark. Louboutin’s attorneys secured the rights to the red-lacquer sole in 2008, both in the U.S. and in the 75 other countries that observe WIPO’s conventions. It’s just too bad the designer waited so long, because—as the selection on page 2 demonstrates—several other brands have been making red-soled shoes, too. Last month, Louboutin put his foot down, filing separate suits in Manhattan Federal Court against Yves Saint Laurent and Carmen Steffens for their forbidden use of la semelle rouge.

While neither Louboutin nor YSL responded to requests for comment, Mark Willingham, president of U.S. operations for Carmen Steffens, says red is theirs to use as much as green or purple or canary yellow. “Over the years, we’ve incorporated almost every color imaginable into our footwear soles—including various tones of red,” he says. “It’s part of our brand’s DNA.”

So we’ve obviously got a fight brewing here, and despite how petty it might look, the dispute actually reaches to the core of what it means to create a brand. Alan C. Drewsen, executive director of the International Trademark Association, points out that if Louboutin fails to protect his trademark now, imitators may eventually leave him with nothing to protect at all. “Aspirin and Cellophane were once trademarks that weren’t adequately defended,” he says. “Now they’re generic.” The other core component is color itself: How a certain hue, used in a certain way, can create an icon of fashion.

According to Michael Shaw, a patent attorney with the London intellectual-property firm of Marks & Clerk, it’s only been possible for a brand to trademark a color since 1996, and it’s never been easy. “It [must] be shown that the color has acquired a highly distinctive character as a result of substantial use,” he says. (Rare examples: Tiffany & Co.’s trademark of the robin’s egg blue gift box and Owens Corning’s mark for pink fiberglass insulation.) “Generally speaking, colors don’t function as trademarks,” adds New York Law School professor Dan Hunter. “But they can with enough use, enough marketing, and enough consumer recognition. Which is what happened with red-soled Louboutin shoes.”

But in Louboutin’s case, there’s an X factor that goes beyond what his lawyers will have to prove in court (which is that the competing red soles are likely to cause consumer confusion between the brands). Women don’t drop $1,000 on a pair of CLs because they happen to like red under their feet; they do it because they like what that red represents. “I talked to a very successful businesswoman about this the other day,” relates Milton Pedraza, CEO of the Luxury Institute. “And she said, ‘Of course that red sole matters. It signals to the world that I wear Louboutins—a top-of-the-line shoe. It [says] I’m a successful woman, and I bought these myself, that I’m powerful—and still feminine.”

Christian Louboutin probably didn’t set out to create a product with socio-sexual overtones as complex as that, but it’s part of what he’s defending in court right now. “That sole has a lot of messaging embedded in it,” Pedraza says. “It’s about the emancipation of women in the corporate suite.”

http://www.adweek.com/news/advertising-branding/sell-your-sole-131602?page=1

May 13, 2011

How Much Longer Until the Louboutin Love Dries Up?

By Lauren Covello
FOXBusiness
May 12, 2011

…While it’s impossible to say the brand would have failed had Louboutin stuck to a traditional sole, it’s fair to say that the move has been critical in Louboutin’s branding strategy.

“The brand and that sole are one in the same,” says Milton Pedraza, CEO of independent research firm The Luxury Institute, who says the decision to turn the bottom of the shoe into a focal point was brilliant. “To go with red, with all that implies, is a wonderful carving out of uniqueness in something that had no meaning whatsoever.”…

Click the link to read the entire article which includes several additional quotes from Milton Pedraza, CEO of Luxury Institutehttp://www.foxbusiness.com/personal-finance/2011/05/12/longer-louboutin-love-dries/#ixzz1MEv7p374

April 1, 2011

Hermes, Brioni and Versace rank highest in reputation, prestige: Luxury Institute

By Elizabeth Zelesny
Luxury Daily
March 31, 2011

A study by the Luxury Institute found that Hermes, Brioni and Versace rank highest in reputation and prestige compared with other luxury brands.

Respondents ranked each luxury brand on worthiness of a significant price premium, their willingness to recommend it to friends and family and the likelihood of consideration the next time they make a purchase. This was the key finding of the report titled “2011 Luxury Brand Status Index.”

“One key finding is that the classic brands have remained strong,” said Milton Pedraza, CEO of the Luxury Institute, New York. “You can see that these brands are not only classic luxury brands, but large.

“With size, you can survive and thrive during a recession,” he said. “What I would emphasize is that the biggest and best got stronger during the recession.”

The Luxury Institute is a New York-based ratings and research organization.

Hey, big spender

Survey participants comprised a balance of men and women from households earning $150,000 or more with an average income of $271,000 and an average net worth of $2.4 million.

Participants evaluated dozens of luxury fashion and footwear designers on quality, exclusivity, status enhancement and the ability to create special shopping and owning experiences.

Independent French luxury house Hermés earned the top ranking in the women’s category among five luxury retailers in the survey of wealthy shoppers.

Prada received the second-highest ranking in the luxury brand status index for women, according to the Luxury Institute, with Louis Vuitton coming in third.

In the men’s fashion sector, Brioni earned the top ranking in the survey, with Salvatore Ferragamo coming in second and Ermenegildo Zegna finishing third.

Versace, Christian Louboutin and Valentino were ranked the top three luxury brands in the women’s footwear category.

“Brands need to have incredibly long product lines, classic and contemporary,” Mr. Pedraza said. “These brands have both.

“All of these brands have a strong focus and a reasonable level of service, especially for the ultra-wealthy clients,” he said. “One surprise is that Chanel wasn’t in the top three, or even the top five.”

Experience for a lifetime

Mr. Pedraza said luxury brands need to focus and improve their customer experience.

The Luxury Institute recently conducted a study that found that Bergdorf Goodman and Nordstrom score far better than other retailers at having a top-notch overall shopping and customer service experience for their affluent consumers.

Moreover, the Luxury Institute found that Burberry and Bottega Veneta excel at having enthusiastic brand ambassadors in their stores who are interested in helping customers.

Mr. Pedraza said luxury brands must focus on creating loyal clients, especially the young affluent consumers who may not be able to afford luxury products now, but possibly could in the near future.

“That is the Achilles’ heel of many brands,” Mr. Pedraza said. “How they are going to create lasting relationships with up-and-coming consumers.

“Luxury brands need to make sure the up-and-coming tiers of younger consumers become loyal clients in the future,” he said.

http://www.luxurydaily.com/hermes-brioni-and-versace-rank-highest-in-reputation-and-prestige-luxury-institute/

March 29, 2011

High Net-Worth Shoppers Rank Luxury Brands On Multiple Criteria; 38 Women’s Fashion, 27 Women’s Shoes And 28 Luxury Men’s Fashion Brands Evaluated In Luxury Institute WealthSurvey

(NEW YORK) March 29, 2011 – Firsthand perspectives of wealthy U.S. consumers provide detailed rankings of luxury brands’ reputation and prestige in results of the 2011 Luxury Brand Status Index (LBSI) surveys, released today by the independent and objective New York City-based Luxury Institute.

A balance of men and women from households earning at least $150,000 per year evaluated dozens of luxury fashion and shoe designers on quality, exclusivity, status enhancement and ability to create “special” shopping and owning experiences.

Wealthy respondents also ranked each brand on worthiness of a significant price premium, their willingness to recommend it to friends and family, and the likelihood of consideration next time they make a purchase in that category.

Based on overall LBSI scores (1-10), the top luxury brands rank as follows:

Women’s Fashion
o Hermes 7.72
o Prada 7.70
o Louis Vuitton 7.58

Men’s Fashion
o Brioni 7.66
o Ferragamo 7.48
o Ermenegildo Zegna 7.47

Women’s Shoes
o Versace 8.06
o Christian Louboutin 8.04
o Valentino 7.98

“We find that some categories are very predictable with certain brands rating in similar positions over the years. The luxury women’s shoe category is one where fickle consumers rank and rate brands differently over the years,” said Milton Pedrasa, CEO of the Luxury Institute.”

The proprietary Luxury Brand Status Index (LBSI) survey is the only unbiased measure of the reputation of leading brands provided by direct insights from wealthy U.S. consumers. Sample households had average annual income of $271,000 and $2.4 million average net worth.

About 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 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 Luxury CRM 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.

For Further Information, Please Contact:
The Luxury Institute, LLC
Martin Swanson
Vice President
(914) 909-6350
mswanson@luxuryinstitute.com