8 TRENDS THAT DEFINED THE LUXURY INDUSTRY IN 2012

Luxury Society presents eight key trends that helped to define the luxury industry in 2012…

India added a local sourcing clause to FDI, making it difficult for luxury brands to enter the local market. China overtook the United States as the world’s biggest consumer nation of luxury goods. Luxury goods brands led a mass exodus from Argentinian retail.

European luxury brands were snapped up by wealthy investors in Asia and the Middle East. Fast running out of brands to acquire, luxury conglomerates intensified acquisition of suppliers.

Luxury fashion houses made a serious foray into fine jewellery and timepiece categories. Luxury conglomerates went to court for counterfeit, copyright and everything in between. And continued to look for heritage brands of the past to bring them growth in the future.

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Challenges Remain in India

In November 2011, we reported that India’s union cabinet had agreed to allow 51% foreign direct investment (FDI) in multi-brand and 100% FDI in mono-brand retail. Meaning that luxury brands, for the first time in the country’s history, were able to open their own directly controlled stores, without the aid of a local distributor.

Bowing to political pressure, the government amended this ruling in April 2012, when a local sourcing clause was added. In respect of proposals involving FDI beyond 51%, this meant mandatory sourcing of at least 30% of the value of products sold, from Indian small industries, artisans & craftsmen. Which in many cases halted the further development of an Indian retail network for luxury brands.
Further Reading: Challenges Remain for Luxury Brands in India

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China, It’s Official

In December 2012 Bain & Co. reported that Chinese consumers have overtaken U.S. shoppers to become the world’s biggest buyers of luxury goods. The Chinese now account for 25% of global sales through purchases at home and overseas according to the consultancy firm, as U.S. consumers account for one-fifth of the world’s luxury sales.

China’s domestic luxury sales, estimated to be worth 106 billion yuan ($17 billion) in 2011, are expected to grow 7% this year – a marked slowdown from 30% growth in 2011. In 2012 it also became clear that more and more Mainland Chinese tourists are shopping in cities like London, New York and Paris, where they can save as much as 40% on luxury goods because of the weaker euro and on differences in tax or duties.
Further Reading: Attracting and Serving China’s Global Luxury Consumer

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European Brands Find New Homes

In the past decade a flurry of French, English and Italian luxury brands have ceded control to foreign investors, some due to hangovers from 2008’s global financial crisis, others in a bid to expand and better conquer so-called ‘emerging’ markets.

Britain’s Aquascutum was recently acquired by China’s YGM, Italy’s Cerruti is now controlled by China’s Trinity Limited, Germany’s Escada is owned by India’s Mittal family and France’s Sonia Rykiel forms a part of Hong Kong based Fung Brands. Bedat, Gieves & Hawkes, ST Dupont, Ferretti Group and Pringle of Scotland form further examples of European brands picked up by foreign owners.

Most recently, Kazakh billionaire Goga Ashkenazi purchased the remaining shares of Vionnet from Matteo Marzotto, to become the sole owner of the heritage brand.
Further Reading: Emerging Wealth Fuels Foreign Acquisition of European Luxury Brands

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Exit from Argentina

Weary of high tariffs and currency restrictions that have dented their profits in Argentina, purveyors of luxury goods abandoned this once lucrative market, according to AFP. Brands such as Ralph Lauren, Louis Vuitton, Escada and Calvin Klein shuttered doors on their local boutiques, as Ermenegildo Zegna was forced to close one of its retail locations for two months because it could not import stock.

Giorgio Armani, Hermès and Cartier are three more significant luxury brands rumoured to be shuttering local operations, as the government ramps up import barriers and imposes tough currency controls tightening measures to protect foreign exchange reserves.
Further Reading: A Quick Look at Luxury in the BRICs

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Fashioned Fine Jewellery

‘Hard luxury’ became a bit of a buzzword in 2012, as stellar jewellery and timepiece performance suggested a shift from seasonal accessories to investment in longer term luxury goods. Louis Vuitton cemented its commitment to fine jewellery with the opening of its dedicated jewellery boutique and atelier, on the prominent corner site of Place Vendôme.

“All of this suggests the jewellery sector is getting the full heat of the luxury industry’s fast growth incubator,” explained Maria Doulton. “And with reason, the Richemont Group reported that in 2012 their jewellery maisons represented 52% of sales by area against 26% for watches. Between Cartier and Van Cleef & Arpels sales grew from €3,479 million in 2011 to €4,590 million in 2012, representing an increase in 32% for jewellery sales similar to the 31% for watches.”

“If we look at how the luxury conglomerates turned around the watch industry ten years ago, it appears that the same fervour is being focused on, the until now largely unbranded and under exploited, jewellery industry.”
Further Reading: Innovation & Creativity Suggest a Bright Future for Branded High Jewellery

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Luxury Loves a Lawsuit

Hermès International SCA won a judgment against 34 websites that sold fake copies of its luxury goods and was awarded approximately $100 million in damages. LVMH was less lucky when the French high court partly overturned rulings against eBay from 2008, when LVMH accused the online marketplace of breaching distribution networks and selling counterfeit goods. eBay was originally ordered to pay €38 million in fines, an amount reduced to €5 million in 2012.

Richemont went up against a Russian organisation, which was producing mid-priced clothes under the locally registered trademarks “Vacheron Constantin” and “Jaeger Lecoultre”.

12 sitting justices unanimously agreed that a well-known trademark in another country may not be co-opted and applied to different goods in the local country because it is confusing to the consumer and unfairly trades on reputation. They also ordered that the local trademarks be cancelled.
Further Reading: Luxury Conglomerates Have Their Day in Court

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M&A Goes Vertical

The industrialisation of the luxury industry has resulted in a record amount of M&A deals in the past decade. Where the initial focus was developing a portfolio of strong individual brands – bringing us conglomerates as we know them today – the focus is shifting towards the acquisition of suppliers and craftsman, in a bid to protect competitive advantage in the future.

In 2012 alone, Chanel acquired cashmere producer – and longtime supplier – Barrie knitwear. Italian textile leaders Ermenegildo Zegna, Marzotto and Loro Piana purchased a controlling stake in Pettinature Di Verro, a combing mill specialised in fine wool, cashmere and special fabrics needed for suiting.

La Montre Hermès acquired dial manufacturer Natéber SA, more recently Richemont took control of VVSA, a high-end manufacturer of stamped exterior components for watches. LVMH managed to acquire two watch dial manufacturers – Léman Cadran and ArteCad SA – as well as French artisan shoemaker Delos Bottier & Cie and haute couture manufacturer Arnys.
Further Reading: Luxury M&A Goes Vertical

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The Heritage Revival

The current economic slowdown, combined with densely crowded prestige markets, has led many entrepreneurs to consider reanimating an old brand rather than creating a new one,” explains James Lawson. “By reviving an old brand, entrepreneurs will benefit from its existing brand recognition and equity, usually defined as a combination of positive visual, verbal and emotional associations.”

A classic example is Faberge whose brand was long used for fragrances and cosmetics and only recently saw the original production of jewelled eggs restored. Similarly, LVMH acquired Moynat, a luxury leather luggage house that was founded 150 years ago but whose brand had been dormant for the past three decades. This year Tod’s resuscitated Maison Schiapparelli, a fashion brand that had been dormant since 1954.

Further Reading: Luxury Conglomerates Look to Heritage Revival


To further investigate the overall luxury industry on Luxury Society, we invite your to explore the related materials as follows:

2012’s Best Global Luxury Brands
2012 Luxury Industry Predictions from the Experts
A Year of Change: The Luxury Industry in 2011


© Luxury Society, 8 Trends That Defined The Luxury Industry in 2012, 18 December 2012, by Sophie Doran.


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THE LATEST APPOINTMENTS: CHRISTIE’S, RICHEMONT & FERRARI

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Nicolas Ghesquière and Balenciaga will part ways at the end of November (Image: Giovanni Giannoni, WWD / Condé Nast / Corbis).

The Latest Appointments at Tom Ford, Walpole, Alberta Ferretti, Richemont, Orient-Express & Vertu, with exits at Balenciaga, Gilt Groupe, Azzaro & Cacharel.

After 15 years with PPR, Nicolas Ghesquière and Balenciaga have reached a “joint decision to end their working relationship,” effective Nov. 30. CEO Isabelle Guichot told WWD a successor would be named “as soon as we’re ready,” and that the brand already has a short list of candidates. Over the weekend Christopher Kane was rumoured to take the top spot, something he has since denied to WWD.

Over at Azzaro, creative director Mathilde Castello Branco has stepped down from her role after just over a year. “The House of Azzaro and Mathilde Castello Branco are moving forward in different directions,” explained a statement from the brand. “Azzaro will shortly be announcing her successor.”

At Cacharel, CEO Pascal d’Halluin has confirmed his exit, also after less than one year in the role. According to WWD, the executive is leaving by mutual agreement with the French label’s founder and president Jean Bousquet following his trial period.

Luca Cordero di Montezemolo, chairman of Ferrari, has resigned his position as chairman of Nuovo Trasporto Viaggiatori, Europe’s first private operator of high-speed trains. “My growing professional commitments force me to step back now that the company is fully operational,” Montezemolo explained to Reuters. “I will continue to contribute to the success of this company, as shareholder and board member.”

Finally Gilt Group’s board and co-founder Kevin Ryan have “agreed about two months ago that Ryan should step aside in favour of a new CEO with strong operations and e-commerce skills.” The to-be-named replacement will be the company’s third CEO in two years, and is expected to steer the eventual launch of an IPO.

Marc Spiegler, Director, Art Basel

Marc Spiegler has been appointed to oversee Art Basel events in Basel, Switzerland; Miami Beach, Florida & Hong Kong, as the organisation re-arranges its leadership team. Mr. Spiegler will chair a four-member executive committee including a director of new initiatives, director Asia, and a director of resources and finance who will be named in the near future.

Source: Gallerist
Kamel Ouadi, Managing Director, Christie’s

Kamel Ouadi has joined famed auction house Christie’s as international managing director. Mr. Ouadi most recently served at Louis Vuitton as chief digital officer/chief creative officer, where he was responsible for the conception and launch of NOWNESS.com

Source: LinkedIn
Jean-Guillaume Prats, CEO, Estates & Wines

Jean-Guillaume Prats will join LVMH-owned Estates & Wines effective February 2013. Mr. Prats will be based in Paris, and will be a board member of the LVMH Comité Opérationnel. Since 2011, Prats has been chairman of the board of Domaines Reybier and Château Cos d’Estournel.

Source: Decanter
Eddy Cue, Board, Ferrari

Eddy Cue, Apple’s SVP Internet software and services has joined the board of Ferrari. Mr. Cue currently oversees the iTunes Store, the App Store and the iBookstore, as well as Siri, Maps, iAd and Apple’s iCloud services.

Source: New Car Net
Christophe de Pous, CEO, Gucci North America

Effective January 1, Christophe de Pous will assume responsibility for Gucci North America. Mr. De Pous has served as president and CEO of Gucci Japan since September 2009, and replaces Lauren Lendrum, who left the position in April.

Source: Styleite
Cristina Egal, Managing Director, Lorenz Bäumer

Cristina Egal has been named the first managing director of Lorenz Bäumer, reporting to Bäumer, the president, founder and creative force behind the brand. Most recently, Ms. Egal operated an eponymous communications agency and boasted such clients as BNP Paribas, Sodexo, Servair and Fondation Claude Pompidou.

Source: Fashion Snoops
John Scott, CEO, Orient-Express

John Scott will become president and CEO of Orient-Express hotels, after serving as CEO of Rosewood Hotels & Resorts for over eight years. He replaces Paul White, the former president and CEO of Orient-Express Hotels, who resigned from the company and from the Board last year.

Source: Travel Mole
Natalie Ratabesi, Creative Director, Philosophy di Alberta Ferretti

Alberta Ferretti will hand over the creative direction of the Philosophy di Alberta Ferretti collection to Natalie Ratabesi, who most recently served as senior creative director at Ralph Lauren. The British designer and graduate from Central Saint Martins College will make her debut for the brand with the autumn/winter 2013 collection.

Source: Fashion United
Bernard Fornas, Richard Lepeu, Co-CEOs, Richemont

Richemont has appointed two longstanding employees as joint chief executives, in a bid to help founder and controlling shareholder Johann Rupert steer the luxury goods group through a period of slowing sales growth in its important Asian markets. Cartier chief Bernard Fornas and deputy chief executive Richard Lepeu will take over from Rupert as CEO in April 2013.

Source: Reuters
Eva Taub, CEO, Robert Clergerie

Robert Clergerie has appointed Eva Taub as CEO, following tenure as head of Christian Dior Couture’s leather division at LVMH. The Stanford and Harvard Business School alum previously launched Isotoner in Europe, prior to which she served as a Merrill Lynch financial advisor in New York and Hong Kong.

Source: Fashion Week Daily
Jerome Cheung, CEO Asia Pacific, Tom Ford

Former Gucci Group executive Jerome Cheung, has been named to succeed Regina Lam as chief executive officer at Tom Ford, for the Asia-Pacific area. The position is based in Hong Kong and Cheung will be reporting to Tom Mendenhall, vice president and chief operating officer (COO) of the company since 2006.

Source: Fashion Mag
Anssi Vanjoki, Chairman, Vertu

Luxury phone maker Vertu has selected long-time Nokia executive Anssi Vanjoki as its non-executive chairman following an ownership change. Vanjoki, who spent 20 years at Nokia in various executive positions, left the Finnish cell phone maker in 2010 after the board appointed Stephen Elop as the next chief executive.

Source: Reuters
Michael Ward, Jonathan Heilbron, Board, Walpole

UK luxury brand trade body, Walpole, has announced the appointment of Michael Ward, managing director of Harrods, and Jonathan Heilbron, CEO of Thomas Pink, to its board of directors. Prior to joining the board, both Ward and Heilbron have been long-time supporters of Walpole, as Walpole Brands of Tomorrow mentors and regular speakers.

Source: Fashion United

For more in the series of The Latest Appointments, please see our most recent editions as follows:

The Latest Appointments: PPR, Cadillac & Baccarat
The Latest Appointments: Mulberry, DVF & Ralph Lauren
The Latest Appointments: Burberry, Coty & Condé Nast


© Luxury Society, The Latest Appointments: Christie’s, Richemont & Ferrari, 19 November 2012, by Sophie Doran.


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THE LATEST INVESTMENTS: ASTON MARTIN, FABERGE & CHRISTOPHER KANE

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Orient Express turns down a $1.8 billion takeover bid from Indian Hotels Group, as mining company Gemfields seeks to acquire fine jeweller Fabergé for $142 million.

Acquired: Fabergé, Gemfields

Gemfields, pending minority investor approval, is to buy luxury jeweler Faberge from one of the colored gem miner’s own shareholders, in a deal valuing the fine jeweller at $142 million. The all-share deal will create an integrated company that mines colored stones and uses the Faberge brand to promote their use in jewelery.

Source: Reuters
Speculation: Sale, Aston Martin

Investment Dar Co., owner of Aston Martin, is said to be in “advanced” talks to sell new shares to investors to boost funding for future development. The Kuwaiti based investment group has received competing bids from Investindustrial and Mahindra & Mahindra Ltd. (MM) for 50% of voting rights and a 40% equity stake.

Source: Bloomberg
Rejected: Takeover Bid, Orient-Express

Orient-Express has rejected an unsolicited $1.2 billion takeover offer from Tata Group’s Indian Hotels Co Ltd and a fund controlled by Italy’s Montezemolo & Partners. The unsolicited bid was 43% higher than Orient-Express’s 20-day average price, a record premium for the industry, and valued the company at the highest earnings multiple in six years for a hotel takeover.

Source: Reuters, WSJ
Acquired: Investcorp, Georg Jensen

Bahrain-based alternative asset manager, Investcorp, has purchased Danish luxury retailer Georg Jensen for $140 million. Hazem Ben-Gacem, Investcorp’s European private equity head, will co-chair Georg Jensen, as saying Investcorp planned to expand the Danish brand in Asia, particularly China.

Source: Reuters
Speculation: PPR, Christopher Kane

PPR, helmed by Francois-Henri Pinault, is said to be in discussions with Christopher Kane, to invest in his eponymous brand. The company is believed to have held discussions with Christopher Kane in which financial backing has been offered. Nothing has yet been confirmed and representatives for PPR and Kane were unavailable for comment.

Source: Vogue UK
Acquired: Vionnet, Goga Ashkenazi

Kazakh oil billionaire Goga Ashkenazi has acquired all outstanding shares in Vionnet to become its sole owner. Ms. Ashkenazi bought into Vionnet in May 2012, but has since purchased all remaining shares from past owners Matteo Marzotto and Marni CEO Gianni Castiglioni.

Source: Elle UK
Boughtback: Derek Lam, Labelux

In a bid to refocus on luxury leather goods and shoes, Labelux has sold Derek Lam back to its founders, Lam and CEO Jan-Hendrik Schlottmann. “We have taken a strategic decision to refocus our activity on luxury leather goods and shoes,” explained CEO Reinhard Mieck said. “We wish Derek and Jan well as we return the leadership into their capable hands.”

Source: Fashionista
Invested: Damiani, India

Damiani is the first foreign investor to get the government approval to invest in the jewellery monobrand retail in India, after working with the Indian government to acquire 51% of Damiani India Pvt Ltd, the company managing the Damiani store in New Delhi at the Oberoi Hotel. Damiani will then agree to establish a joint venture with Indian partners.

Source: Damiani
Confirmed: Karl Lagerfeld, Inter Parfums

Karl Lagerfeld has signed a 20 year worldwide license agreement with Inter Parfums, to create and distribute perfumes under the German fashion designer’s namesake brand. Karl Lagerfeld has since ended its deal with fragrance and cosmetics company Coty BV.

Source: Reuters
Sold: Plaza Hotel, Subrata Roy

Indian billionaire Subrata Roy has purchased a 75% stake in New York’s iconic Plaza Hotel for $575m from US-Israeli retailer El Ad. The remaining 25% of the hotel is being retained by its current owner, Prince Alwaleed bin Talal of Saudi Arabia, via his Kingdom Holding group.

Source: BBC
Rejected: Four Seasons Hotel NYC, Asian Buyer

Four Seasons Hotel New York owner H. Ty Warner has decided not to sell the Manhattan property after receiving an unsolicited bid of about $900 million. “Due to the continued strength in the New York real estate market and impending fiscal cliff, he does not feel that this is an advantageous time to sell this iconic property,” explained Donna Snopek, chief financial officer of Ty Warner Hotels and Resorts LLC.

Source: Bloomberg
Invested: DiamondCorp, Laurelton Diamonds

Laurelton Diamonds Inc., a wholly owned subsidiary of Tiffany & Co., has issued a $6 million term loan to DiamondCorp plc, a South African diamond development and exploration company listed on London’s AIM stock exchange. As part of the loan agreement, Laurelton Diamonds will have the right to purchase production from DiamondCorp’s Lace Mine in South Africa.

Source: WWD
Stake: Luxottica, Salmoiraghi & Viganò

Salmoiraghi & Viganò, a leading Italian company in the eyewear retail sector, has received approximately €45 million from eyewear manufacturer Luxottica. Luxottica will subscribe for newly issued shares of Salmoiraghi & Viganò resulting in a 36% equity stake in the Italian optical retailer, which will retain control of company operations.

Source: 4Traders
Acquired: Four Seasons Toronto, Saudi Prince Walid

Billionaire Saudi Prince Walid bin Talal’s Kingdom Holding investment group has purchased the luxury hotel Four Seasons Toronto, Canada for $200 million. “The transaction was funded by a $130 million mortgage loan while $70 million came from (the company’s) own resources,” Hazem al-Dosari, a Kingdom Holding Company (KHC) spokesman, told AFP.

Source: Al Arabiya
Sold: Ekati Diamond Mine, BHP

Diamond company Harry Winston agreed to purchase BHP Billiton’s Ekati mine in Canada and its marketing operations for the precious stones for $500 million. The deal is expected to close in the first quarter of next year, according to BHP.

Source: The Israeli Diamond Industry
Invested: Aeffe, Emanuel Ungaro

Aeffe has signed an exclusive partnership agreement with Emanuel Ungaro for the production and worldwide distribution of women’s clothing and accessories, as well as the option to acquire a significant minority share of Ungaro’s capital stock on achieving shared goals. The license will be active for a period of 7 years, with the option to renew.

Source: Aeffe

For more in the series of The Latest Investments, please see our most recent editions as follows:

The Latest Investments: Chanel, Marcolin & Orient Express
The Latest Investments: Anya Hindmarch, Berluti & Harry Winston
The Latest Investments: Coty, Porsche & Valentino


© Luxury Society, The Latest Investments: Aston Martin, Fabergé & Christopher Kane, 30 November 2012, by Sophie Doran.


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LUXURY CONGLOMERATES LOOK TO HERITAGE REVIVAL

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Maison Moynat, founded in 1849, revived by LVMH in 2011

James Lawson, director of Ledbury Research, explains why well capitalised entrepreneurs are looking for opportunities with dormant prestige brands

The current economic slowdown, combined with densely crowded prestige markets, has led many entrepreneurs to consider reanimating an old brand rather than creating a new one. This entails acquiring the brand, either to restart its original activities or to use its reputation to start new production.

A brand is normally considered dormant – and, therefore, available for acquisition – if its trademarks have not been used for a number of consecutive years, usually three or five, depending on the country.

By reviving an old brand, entrepreneurs will benefit from its existing brand recognition and equity, usually defined as a combination of positive visual, verbal and emotional associations. That is to say, an historic brand intrinsically carries a sense of heritage, credibility and longevity.


“By reviving an old brand, entrepreneurs will benefit from its existing brand recognition and equity.”


Also, from a financial perspective, unlike the creation of a new brand, the reanimation of an historic brand would require a smaller initial investment to cover marketing costs.

However, reviving an old brand can also present a number of disadvantages. Beyond questioning why the brand died originally, the new products, for example, might not appeal to a younger generation or take into consideration the changes in consumers’ taste.

In addition, using an old brand to commercialise a new range of products could generate confusion in those customers who still associate it with the old products.


“Using an old brand to commercialise a new range of products could generate consumer confusion.”


Recently, the trend of re-launching historic brands has become particularly significant across the luxury industry, especially among major luxury groups that are looking for historic fashion houses with deep roots and a high level of authenticity.

A classic example is Faberge whose brand was long used for fragrances and cosmetics and only recently saw the original production of jewelled eggs restored. Similarly, LVMH acquired Moynat, a luxury leather luggage house that was founded 150 years ago but whose brand had been dormant for the past three decades.

Moreover, following its successful re-launch of the French shoemaker Roger Vivier a few years ago, this year Tod’s resuscitated Maison Schiapparelli, a fashion brand that had been dormant since 1954.


“Reviving historic brands requires a significant initial investment that only major luxury groups could likely contemplate.”


Undoubtedly, reviving historic brands requires a significant initial investment that only major luxury groups could likely contemplate, and in most cases, the name and the logo represent the only elements of continuity between the historic brand and its present incarnation.

Nevertheless, it appears to be a cost-efficient development strategy for companies looking to create an exclusive niche brand characterised by a strong sense of history and heritage.


To further investigate luxury brands on Luxury Society, we invite your to explore the related materials as follows:

2012’s Best Global Luxury Brands
What Makes for a Successful Luxury Re-Brand?
Has Luxury Brand Diversification Gone Too Far?


© Luxury Society, Luxury Conglomerates Look to Heritage Revival, 04 December 2012, by James Lawson.


Ledbury Research
is a research company specialising in the understanding and engaging of High Net Worth Individuals.

Bespoke consumer work spans all forms of quantitative and qualitative research, typically conducted on a multi-country basis, in wealth hubs around the world.

The analyst team delivers market information, trends and analysis through regular reports on the luxury and wealth markets.


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THE LATEST DIGITAL: CARTIER, PRADA & TOD’S

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An excerpt from Diane von Furstenberg’s Glossi

Montblanc teams up with Harrods to launch an in-store augmented reality experience, as Hermès partners with Harper’s Bazaar to retail a limited collection online.

In the past month the digital luxury landscape has been dominated by the moves of the media and retailers. As the New York times announced restructuring measures to the tune of thirty senior journalists, Net-a-Porter announced its intention to launch a full-blown fashion glossy.

As Rupert Murdoch confirmed he will shutter The Daily – the iPad-only magazine he launched two years ago – social-shopping company ThisNext unveiled Glossi, a platform which allows users and brands to create their very own digital magazines.

But perhaps nothing was more surprising, than to hear that Hermès will be retailing a selection of footwear on the eCommerce venture of fashion magazine Harper’s Bazaar. Digital may have muddied the waters, but never have the lines between brand, retailer and publisher been so blurred.

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Boucheron, Website

Jeweller Boucheron has relaunched its website in the colours of the new visual identity of the maison. Visitors can browse the portal in English, French, Japanese and Simplified Chinese, or take a virtual 360-degree tour through the Boucheron flagship store at Paris’s Place Vendôme. For the first time, Boucheron is sharing the history of its founders and products, whilst boosting social connectivity with Facebook, Twitter, Instagram, Pinterest and YouTube integration.

Website & Source: boucheron.com

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Cartier, e-Commerce

Cartier has relaunched its e-Commerce offering in the United States, with an enhanced e-boutique and 360-degree product display and videos. Alongside the online boutique, the site offers information regarding after sales service, product maintenance and store locations, as well as dedicated sections to heritage, CSR projects, events, savoir-faire and social media.

Website: cartier.com
Source: Luxury Digital

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Ferrari, App

Ferrari has launched an App for brand fanatics, offering users the opportunity to discover its rich history, simulate driving, wake up to the sound of a V12, take Ferrari-themed photos with RedCam or personalise devices with wallpapers. Built for the iPhone and iPad, the app comprises of photo galleries, videos and factsheets about current and classic models as well as selected Sports Prototype and Formula 1 cars.

Download: Ferrari Mania
Source: Luxury Daily

Georg Jensen Holition Gesture Experience from Holition AR on Vimeo.

Georg Jensen, Augmented Reality

Holition has created a unique application for the special launch of George Jensen’s ‘Fusion Ring Builder’ website. The website was activated to run in store using gesture to drive product selection, simply by selecting product with a hand gesture. The user can play and see the separate components of the Fusion ring come together from all angles using the iPad, or use one of Georg Jensen’s personalised iPads at Harrods, Selfridges London and Selfridges Manchester.

Website: georgjensen.com
Developer: Holition
Source: Retail Jeweller

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Harper’s Bazaar, Hermès, eCommerce

Hermès is set to debut some of its products on ShopBazaar.com, the eCommerce site powered by fashion glossy Harper’s Bazaar. In the first e-commerce channel outside of its own website, the French luxury house will retail six shoe styles. “We thought it would be great to expand the introduction of Hermès footwear to Bazaar’s audience,” explained Hermès CEO USA Robert Chavez.

Website: ShopBazaar.com
Source: Fashion United

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Luxure, iPad

Luxure has launched its inaugural iPad Edition, in a bid to showcase its existing magazine content in the most spectacular, insightful and explorative of climates. The iPad Edition of Luxure will provide insight into an array of photography complemented by the new retina display, alongside rich additional content via audio, video and animation.

Download & Source: Luxure

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Montblanc, Virtual Pop-Up

Harrods London and Montblanc UK collaborated to produce a virtual pop-up store, featuring an extensive selection of artworks from the Montblanc Cutting Edge Art Collection, permanently exhibited in Hamburg. By pointing a smartphone or tablet at the image displayed in one of the Montblanc Harrods windows, users could not only view the artworks, but purchase four exclusive Montblanc products through Harrods.

Website & Source: montblanc.com

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Prada, iPad

In celebration of its Fall Winter 2012 menswear show in Paris, Prada collaborated with fashion illustrator Richard Haines, to produce a limited edition book featuring 150 artworks based on the collection. In the final chapter of the project the Italian brand has launched an iPad application, allowing users to take an interactive tour of a virtual palazzo designed by James Lima, to discover both the artworks and collection.

Download: Il Palazzo
Source: Prada

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Shanghai Tang, App

In time for the holiday season, Shanghai Tang has launched apps on Facebook and Sina Weibo, allowing fans to create Christmas wish lists according to their Chinese zodiac sign and share it with their friends. The wish list is focused on Shanghai Tang’s Christmas collection of homeware, displayed in an animated kaleidoscope, and users can then personalise the products they want to include prior to sharing the final wish list with their friends.

Apps: Facebook, Sina Weibo

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Whitewall, Website

Whitewall is pleased to announce the launch of the new beta version of Whitewallmag.com, which will continue to cover contemporary art, luxury lifestyle, fashion, and design, and how these industries intersect. Debuting on the eve of Art Basel Miami Beach (ABMB) 2012, the site will focus exclusively on pre- and day-to-day coverage of the fair.

Source: whitewallmag.com

For more in the series of The Latest Digital, please see our most recent editions as follows:

The Latest Digital: Balmain, Yoox & Mandarin Oriental
The Latest Digital: Versace, Balenciaga & Ritz-Carlton
The Latest Digital: BMW, Maserati & Salvatore Ferragamo


© Luxury Society, The Latest Digital: Cartier, Prada & Tod’s, 05 December 2012, by Sophie Doran.


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THE LATEST BOUTIQUES: HUBLOT, AUDI & CHANEL

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Dior Homme’s latest store in Miami

Burberry debuts retail as theatre in Chicago, Marni launches in three Chinese Mainland cities, as Hublot takes to the Philippines, United States, China & UAE.

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Audi, Ahmedabad, Dubai

Audi in partnership with Nixynova Motoren Pvt. Ltd have moved into a bigger showroom in Ahmedabad, Gujarat, which will now display entire range of Audi cars that is on offer in the country.

The luxury brand has also opened its largest dealership in Dubai with local dealer Al Nabooda Automobiles, which will be display up to 57 new vehicles over three levels. The Audi Terminal Dubai features floor-to-ceiling screens displaying the complete Audi model range including all equipment options, features and technical details on a 1:1 scale.

Source: Rush Lane, Motor Authority

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Boucheron, Hong Kong

Boucheron has debuted a new retail design concept in Hong Kong, a model that will be replicated across all the brand’s stores starting with an overhaul in Paris. The 80sqm space has been designed with luminosity in mind, harking back to the first atelier on Paris’ Place Vendome, where the workshop was flooded with light that highlighted the brilliance of the stones.

Source: FashionMag

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Breguet, Abu Dhabi

Breguet has unveiled its latest boutique in Abu Dhabi, located in the high standing commercial building “Etihad Towers”. The 32nd monobrand boutique worldwide showcases a mix of timepieces and gem-set Haute Joaillerie creations across 60sqm, in keeping with its global retail design concept launched in 2012.

Source: Breguet
Burberry, Chicago

Burberry has launched its second largest store in North America in Chicago, meshing digital, entertainment and fashion in one seamless experience across five-floors. The store houses the first beauty consultation counter in North America and will carry an exclusive, limited edition collection of outerwear and non-apparel for both men and women, created to celebrate Burberry in Chicago.

Source: Brand Channel

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Chanel Timepieces, Paris

Chanel has opened its first dedicated watch store in Europe on the first floor of Paris department store Galeries Lafayette, to house its Première and J12 lines in addition to the new Mademoiselle Privé collection. The 25sqm concession is decorated in the brand’s signature black, beige and gold.

Source: WWD

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Chopard, Abu Dhabi

Chopard has launched its latest boutique at Abu Dhabi’s Marina Mall, in partnership with Abu Dhabi distributor Al Manara International Jewellery. Created by architect Thierry Despont, the décor reflects that of a welcoming living room boasting fine woods for the floors and leather for the wall panels, store fixtures and furniture fronts and luscious velvet for curtains and upholstery.

Source: Luxos

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Christian Louboutin, London

Christian Louboutin has unveiled its first store dedicated to men in the United Kingdom, to carry a range of shoes, sneakers, bags and accessories. The 170sqm Dover Street flagship has been realised by New York architects 212box, the same architects responsible for Christian Louboutin stores worldwide.

Source: FashionMag

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Dior Homme, Miami

Dior Homme is the latest brand to launch in Miami’s new Design District, showcasing sleek architecture, minimalist decor, and luxe materials. To highlight the opening, Dior Homme collaborated with artist and photographer, Bruce Weber, to curate an exclusive film titled, “Can I Make the Music Fly,” that can be viewed here.

Source: The Fashionisto

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Elie Saab, Geneva

Elie Saab has opened a new 155sqm boutique overlooking Lake Leman in Geneva, Switzerland. Saab himself, in collaboration with architect Chakib Richani, has designed the dual-level space. The store will showcase the designer’s accessories and ready-to-wear items from both the autumn and winter 2012-2013 and pre-fall 2012 collections.

Source: VMSD

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Eterniti, London

London-based boutique luxury carmaker, Eterniti Motors, has officially launched its first showroom with a 930sqm facility in Park Royal, northwest London. Eterniti-owned showrooms will open in Asia in 2013, beginning with Hong Kong, which will serve as the company’s Asia-Pacific hub.

Source: Eterniti

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Georg Jensen, London

Danish luxury lifestyle brand Georg Jensen, has unveiled its newest concession in Selfridges, London, designed by British architects Mark Pinney Associates. The 20sqm space is housed within the store’s designer jewellery room, showcasing fine jewellery, luxury fashion jewellery as well as the heritage range and contemporary silver pieces.

Source: Retail Jeweller

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Gucci, Gurgaon

Gucci has opened its fifth and largest store in India at The Oberoi in Gurgaon, New Delhi, in keeping with the new design concept by Creative Director Frida Giannini. The near-400sqm space has been realised in ribbed glass, warm polished gold, smoked mirror and smoked bronze glass, recalling the elegance and richness of the Art Deco era.

Source: Daily Mail

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Hublot, Atlanta, Abu Dhabi, Dalian, Manila

Hublot has unveiled the first of five North American boutiques to open in the coming three years, with a 92sqm space in Atlanta, operated in partnership with Ares Distributors. The brand has also opened a second boutique in Abu Dhabi, and a second boutique in Dalian, in partnership with Jinhua Watch & Jewellery.

Finally, the very first Hublot boutique in the Philippines has debuted at the newly opened Bonifacio High Street Central mall, Manila. The boutique design concept creatively reflects Hublot’s DNA of luxury and innovative design, bringing to life its vision of fusion.

Source: Hublot

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Ittierre, Milan

Ittierre Group – producer of contemporary lines such as Pierre Balmain, C’N’C, Aquascutum, GF Ferré, Galliano and Karl Lagerfeld Paris – has debuted its first temporary department store in Milan. Housed over 1000sqm in Palazzo Gallarati Scotti, IT’S 30 MANZONI will offer principal collections of the group’s licensed brands.

Source: Vogue Italia

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IWC, Beijing, Miami, Sao Paulo

IWC has unveiled flagship boutiques in Beijing, Miami & Sao Paulo. The Beijing store features a 300sqm bi-level glass cube facade, a brainchild of in-house designers and architects. Each boutique is fitted out with sumptuous dark woods and exquisite materials, inviting customers to explore the six fascinating watch families along with boutique-exclusive editions.

Source: IWC

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Jaguar Land Rover, Beijing

Jaguar Land Rover has inaugurated its100th retail space in China, with the Beijing Changjiushida 4S Center in the heart of the city. The state-of-the-art repair centre and showroom, operated in partnership with the Changjiu Group, will have a workforce of around 110 people.

Source: Luxuo

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Jitrois, Beijing

In partnership with Keyijili Ltd, Jean-Claude Jitrois has opened a flagship store in Beijing, marking the brands first boutique in Asia. The 250sqm space has been designed by Christophe Pillet, the architect responsible for all of the brands stores, in a luxury shopping centre in the Chaoyang district of the Chinese capital.

Source: FashionMag

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Marni, Nanjing, Shanghai, Shenyang

Marni has unveiled three Chinese flagship boutiques, in Shanghai’s REEL shopping centre, Nanjing’s Deji Plaza and a store in Shenyang, brining its presence to nine locations in the country. Marni creative director Consuelo Castiglioni worked closely with architecture firm Sybarite, the creators of the brand’s Beijing store, to create the spaces.

Source: Luxuo

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Montblanc, Abu Dhabi

Montblanc has opened its latest boutique in Abu Dhabi, United Arab Emirates, offering the exclusive Bespoke Nib Service, which is currently available in just four Montblanc boutiques worldwide. The store will house luxury watches, jewellery and leather goods, as well as writing instruments and its customisation service. Curacao boutique pictured

Source: Luxos

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Pucci, New York City

Pucci creative director Peter Dundas has unveiled the world’s largest Pucci store in New York, designed in collaboration with French architect Joseph Dirand, modelled after the Palazzo Pucci in Florence. The 250sqm store will form the design basis for future retail locations and feature the entire collection of Pucci ready-to-wear and accessories.

Source: Bloginity

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TAG Heuer, Geneva

TAG Heuer has opened its first boutique in Geneva, with a 100sqm space located on Rue Robert-Céard. The store will house the brand’s Lifestyle collection of accessories, as well as a range of sunglasses and luxury communication devices, Meridiist, Link and Racer, specially conceived by TAG Heuer.

Source: FHH

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Vacheron Constantin, Lucerne

Vacheron Constantin has chosen Lucerne, in German-speaking Switzerland, for its latest boutique at 10 Kapellplatz. This warm and intimate setting is designed to offer a full immersion into the world of a company combining tradition with dynamic creativity.

Source: FHH

For more in the series of The Latest Boutiques, please see our most recent editions as follows:

The Latest Boutiques: Chloé, Brioni & Shang Xia
The Latest Boutiques: Berluti, Dior & Saint Laurent Paris
The Latest Boutiques: Hublot, Breguet & Assouline


© Luxury Society, The Latest Boutiques: Hublot, Audi & Chanel, 10 December 2012, by Sophie Doran.


Live the life!

HOW THE LUXURY INDUSTRY IS LEAVING $1.7 TRILLION ON THE TABLE

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Douglas Gollan, co-founder of Elite Traveler magazine, explains why the luxury industry’s continued robust performance is coming, despite largely missed opportunities.

My mother used to always tell me I succeeded “in spite of myself.” It was her way of telling me while my intentions and instincts and many of my actions may have been right, I was making whatever the task was more difficult than it had to be.

One could argue that the luxury industry’s continued robust performance is coming despite missing some large opportunities.

A recent report by wealth researcher Wealth-X found some 185,000 households worldwide with a Net Worth of at least $30 million. These families – commonly referred to as UHNW – or Ultra High Net Worth – cumulatively are worth between $25 Trillion and $40 Trillion depending on which report one reads.

They are without doubt the “heavy users” of luxury goods and services simply because they can afford to be. After all, who else is spending $5,000 a night on suites at luxury hotels and buying $50,000 watches or $80,000 necklaces. A 2011 Washington Post research project found that U.S. households in six major markets couldn’t make ends meet despite having a Household Income of $250,000, a level considered fairly robust by media buyers.


“ Ultra High Net Worth’s are without doubt the “heavy users” of luxury goods and services simply because they can afford to be.”


The kicker was that these families didn’t even have luxury cars, didn’t buy designer fashion and had an annual vacation budget of just $3,000. In New York this Mass Affluent family was running a deficit of nearly $30,000. In other words, there was very little upside marketing to these consumers. Hundreds of brands were competing for one or two luxury purchases per year, generally for no more than a couple thousand dollars.

Greg Furman, the Founder and CEO of The Luxury Marketing Council recently told me, “luxury companies need to be more focused on selling more watches to the person who already buys a half dozen watches a year than the first watch to a person who can’t pay his rent.” He added, that as luxury companies extend their product ranges they need to invest more in educating UHNW consumers, including advertising. He uses the term “share of wallet.”

As part of a white paper I am currently working on, we are trying to understand how much these UHNW households currently spend cumulatively across a variety of luxury product and service categories – and how deep their pocket books truly are. In other words, how much more could they spend if properly educated and motivated.


“ Hundreds of brands were competing for one or two luxury purchases per year, generally for no more than a couple thousand dollars ”


The categories we are looking at include automotive, jewelry, watches, fashion and accessories, hotels, resorts, spas, villas, adventure travel, yacht rentals (not purchases), renovating and refurnishing residences and collectibles.

Obviously there is a lot of guesswork with the formulas but using research we did with Prince & Associates that included personal interviews with over 600 private jet and fractional jet owners, the current figure comes out at around $300 billion annually. That would equate to about $1.6 million in spending for each of these 185,000 UHNW households. It would also register at only around one percent or less of Net Worth.

Interestingly, as we look at numerous other surveys of luxury lifestyle spending from Ipsos, American Affluence Research Center and Unity Marketing with Mass Affluent consumers to create a range of scenarios, we believe that the potential spending of these UHNW families could be over $2 trillion!

For the Global CEO of any major luxury brand or conglomerate, I feel pretty sure they all have well developed strategies for China and E-marketing. These are considered key areas all luxury companies need to be focused on. However, I am not sure if I would find any of these same, successful companies having a Global UHNW Marketing Officer responsible for a Global UHNW strategy with a single focus to get more spend from these UHNWs and centralized authority.


“ Luxury brands have well developed strategies for China & e-Marketing, but how many have a global UHNW strategy?”


Yes, I know there are the polo sponsorships and at the country level lots of wining and dining and event invites for key customers. What I think has slipped through the cracks is these best prospects are now not in town or even in the country most of the time. I always like to say “private jets set the rich people free.” And in fact, one Richemont executive I met with referred to this group as “Homeless with 20 Homes.” Burberry has dubbed them the TLCs, short for Traveling Luxury Consumers. Global Nomads is another moniker.

Mykolas D. Rambus, CEO of Wealth-X, was right to the point: “The growing trend of the ultra wealthy choosing to establish residences in the most cosmopolitan cities around the world has implications for all professionals operating in the financial services and luxury sectors. Professionals need to understand these ultra wealthy clients, who defy being categorized by geographical location, should they wish to create consistent strategies of approach.”

Luxury houses today are still structured on a country basis with lots of country management and lots of local focus. It is not uncommon to be questioned, ‘what if your readers buy when they are in another country?’ I do understand everyone has their own revenue targets to hit. Being a global magazine, it means that some readers who are ‘based’ in the U.S. may in fact buy when they go to London or Hong Kong but at the same time readers from South America, the Middle East or Europe probably do a good deal of their buying in the U.S.


“ It’s easier to sell lots of stuff to rich people than poor people – Milton Pedraza, CEO, The Luxury Institute.”


It underscores the point that the luxury companies are enjoying success ‘despite themselves.’ Clearly, as Rambus notes, these UHNW families live a global lifestyle. A recent Financial Times piece profiled a couple who hop from London to Venice for lunch if it looks like a rainy day, and reported that today’s Super Rich follow the good weather, good schools, good tax regimes and good entertainment as they fly around on their private jets.

Milton Pedraza, the CEO of Luxury Institute once told me, “It’s easier to sell lots of stuff to rich people than poor people.” Even if the numbers I am looking at are wrong by double, luxury brands are leaving about $850 billion in sales in the pockets of UHNW customers who just need to be motivated to spend. Either way, it’s a bigger opportunity than China, bigger than the Internet, and right out there every day around the world at the nearest FBO. That’s the acronym for private jet terminal.


To further investigate Wealth & Affluence on Luxury Society, we invite your to explore the related materials as follows:

The Dangers of Homogenising the Wealthy: Ledbury Research
Key Insights from The Wealth Report 2012
Luxury’s Mixed Messages in a Yo-Yo Economy


Douglas Gollan is Group President and Co-Founder of Elite Traveler Media Group, launched in 2001, based in New York. The company publishes Elite Traveler, the private jet lifestyle magazine, with BPA audited distribution in over 100 countries worldwide by private jet.

It also publishes an Asia Edition of Elite Traveler, Elite Traveler Superyachts, Elite Traveler Hotels/Resorts/Spas Annual, Elite Traveler Annual Watch Guide and hosts over 60 Destination Guides for UHNW consumers at Elitetraveler.


© Luxury Society, How The Luxury Industry Is Leaving $1.7 Trillion On The Table, 28 June 2012, by Douglas Gollan.


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