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 APPOINTMENTS: CARTIER, CACHAREL & CHRISTIAN DIOR

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Raf Simons has been appointed as creative director of Christian Dior, succeeding John Galliano.

 

The Latest Appointments at Starwood Hotels, Christie’s, Bergdorf Goodman, Cartier, YSL Beauté, Sonia Rykiel, PPR, Bentley Motors, Akris & Cacharel

The Dior saga is finally over. After one year of speculation – where everyone from Riccardo Tisci, Marc Jacobs, Kayne West, Alber Elbaz, Alexander Wang and even the disgraced Galliano himself were rumoured to be taking the top spot – Raf Simons has been confirmed to head womenswear and haute couture, whilst Kris Van Assche continues to head design at Dior Homme.

Over at Richemont, group manufacturing director Jan Rupert is stepping down to focus on other activities and to broaden his remit within the family of companies controlled by Johann Rupert. Whilst Mr. Rupert will remain an executive director of the group, Richard Lepeu, Richemont’s deputy chief executive, will oversee the group’s manufacturing strategy as of April 1.

At PPR, Gucci America’s president Laura Lendrum has resigned to pursue other opportunities according to WWD. Ms. Lendrum joined Gucci in 1997, and moved to Yves Saint Laurent America as president in 2001. Gucci president and chief executive officer Patrizio di Marco will oversee the Americas region in the interim until the company names a successor.

Raf Simons, Creative Director, Dior

Ending a year of speculation, Belgian designer Raf Simons has been named as the next artistic director of Christian Dior, following his recent exit from Jil Sander. Mr. Simons will be in charge of haute couture, women’s ready-to-wear and accessories, starting with the couture show in July, while keeping his eponymous men’s line. Kris Van Assche remains in his position at Dior Homme.

Source: NYTimes
Stanislas de Quercize, CEO, Cartier

Cartier has appointed Stanislas de Quercize to take over from Bernard Fornas as chief executive of top-of-the-range jewellery and watchmaker Cartier. Mr. De Quercize is currently serving as CEO of fellow Richemont subsidiary Van Cleef & Arpels, and will replace Mr Fornas at the end of the year, when he is due to retire.

Source: Reuters
Joshua Schulman, President, Bergdorf Goodman

Following his departure from Jimmy Choo in late 2011, Joshua Schulman has been named president of U.S. luxury retailer Bergdorf Goodman. Prior to his tenure as CEO of Jimmy Choo, Mr. Schulman served as executive vice president at the Gucci Group, where he oversaw worldwide merchandising and wholesale for Yves Saint Laurent, and served as worldwide director of Gucci women’s ready-to-wear.

Source: WWD
Stephan Bezy, General Manager, YSL Beauté

Joining the Management Committee of L’Oreal Luxe, Stephan Bezy has been appointed International General Manager of Yves Saint Laurent Beauté. Mr. Bezy joined L’Oréal in 1991 and has since served as global President at Redken, International General Manager at Shu Uemura and General Manager of Cacharel.

Source: Premium Beauty News
Management Team, Starwood Hotels & Resorts

Starwood has restructured its executive team following the retirement of three senior leaders, Matt Avril, President of the Hotel Group; Denise Coll, President of Starwood North America; and Miguel Ko, Chairman and President of Starwood Asia Pacific.

Currently president and CEO of Starwood Vacation Ownership, Sergio Rivera, has been promoted to co-president of Starwood Americas. Osvaldo Librizzi who assumes primary responsibility for Latin America joins him as co-president of Starwood Americas. Stephen Ho, currently Senior Vice President of Acquisitions and Development for Starwood China, has been promoted to President of Asia Pacific. And finally currently head of Starwood’s operations for China, Qian Jin, has been promoted to the title of President of Greater China.

Source: PR Newswire
Vincent Gillet, Brand Chief, W & Le Meridien

Starwood has appointed Vincent Gillet as brand chief for W Hotels and Le Meridien brands, replacing Eva Ziegler. Mr. Gillet has spent the last two decades working on well-known luxury brands for LVMH, Chanel and Pernod Ricard, followed by a three-year tenure as chief marketing officer at Six Senses Resorts & Spas.

Source: USA Today
Eric Langon, Managing Director, Sonia Rykiel

Eric Langdon has been appointed as managing director of Sonia Rykiel effective April 16, where he will report to CEO Jean-Marc Loubier, also CEO of Fung Brands, which acquired an 80 per cent stake in the French fashion house in February. Most recently Mr. Langon served as chief operating officer at Lancel.

Source: WWD
Katrina Burchell, Intellectual Property Director, PPR

Katrina Burchell has been charged with the task of re-organising and monitoring PPR’s Intellectual Property function, joining the French conglomerate as Intellectual Property Director. Prior to her appointment, Ms. Burchell headed the Trademarks, copyrights and domain names at Unilever group.

Source: 4-Traders
Emile Rubenfield, CEO, Carolina Herrera

Emilie Rubinfeld has been appointed vice president of global marketing and communications, in a newly created title at Carolina Herrera. Most recently Ms. Rubinfeld served as senior vice president of marketing and communications at Akris, following tenure as vice president of marketing at Giorgio Armani Corp.

Source: WWD
Jinqing Caroline Cai, Managing Director, Christie’s China

Auction house Christie’s has appointed its first managing director in China, Jinqing Caroline Cai, effective June 1. A founder of the Brunswick Group, a global PR firm in Beijing, Ms. Cai will manage the office and oversee all activities involving the Chinese marketplace.

Source: JustLuxe
Katie Reed, Associate Vice President, Akris

Katie Reed has joined Akris as associate vice president of marketing and communications, following service at Patek Philippe North America, as public relations and communications director. Ms. Reed will oversee all areas of marketing, advertising, public relations and special events in the U.S.

Source: WWD
Kevin Rose, Sales & Marketing Chief, Bentley Motors

As part of a reshuffle of senior marketers within Volkswagen Group UK, Kevin Rose has joined Bentley Motors as its new board level sales and marketing chief, taking over from Alasdair Stewart. Mr. Rose joins from parent group Volkswagen’s China business, where he was executive vice president for sales.

Bentley has also named Andrea Baker as head of media relations, who most recently served as head of public relations with Porsche Cars Great Britain.

Source: Marketing Week
Source: JustLuxe.com
Pascal d’Halluin, CEO, Cacharel

Pascal d’Halluin has been appointed chief executive officer of Cacharel, succeeding managing director Marc Ramanantsoa, effective March 19. Mr. d’Halluin worked with L’Oréal for eight years before taking over as CEO of Lee Cooper France in 1994.

Source: Just Style
Michael Burgess, President, Saks Direct

Saks Inc. has named Michael Burgess president of Saks Direct, reporting to Denise Incandela, executive vice president and chief marketing officer. Mr. Burgess was most recently led merchandising, marketing, consumer information technology and other functions of the consumer division of FTD, the florist, which is owned by United Online Inc.

Source: WWD
Michael Kingston, SVP & CIO, Neiman Marcus

Neiman Marcus Group has named Michael R. Kingston senior vice president and chief information officer, succeeding Phillip Maxwell, who earlier this month announced his retirement. Earlier, Mr. Kingston served as vice president, applications at Coach Inc. and international director of information services at LVMH Moët Hennessy Louis Vuitton.

Source: WWD

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

The Latest Appointments: Givenchy, Jil Sander & Yves Saint Laurent
The Latest Appointments, Pucci, Tod’s & Girard-Perregaux
The Latest Appointments, Bulgari, Labelux & Net-a-Porter


© Luxury Society, The Latest Appointments: Cartier, Cacharel & Christian Dior, 17 April 2012, by Sophie Doran


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THE TOP 50 MOST-SEARCHED FOR LUXURY BRANDS IN CHINA

World Luxury Index China – Top 50 Most-Searched For Luxury Brands in China

View more presentations from Digital Luxury Group, DLG SA

Luxury Society and Digital Luxury Group are pleased to launch the World Luxury Index, an international ranking and analysis of the most searched-for brands within the luxury industry.

Created as a way to provide luxury brands with a standardised way of measuring brand interest at an international level, Digital Luxury Group, in partnership with Luxury Society, is pleased to announce the launch of The World Luxury Index, an on-going international ranking and analysis of the most searched-for brands within the luxury industry.

Covering over 400 brands within six key segments (fashion, beauty, jewellery, cars, watches, and hospitality) in ten key luxury markets, the World Luxury Index provides insights on the unbiased search inputs coming from global luxury consumers in the world’s top search engines (Google, Bing, Baidu, Yandex). The result is a one-of-a-kind benchmark of the luxury brands capturing the attention of luxury-minded consumers around the world.


“ The World Luxury Index provides insights on the unbiased search inputs coming from global luxury consumers in the world’s top search engines ”


“This is actually the first time that such powerful, yet seemingly basic, information is being made available,” explains Philippe Barnet, Managing Director, Luxury Society. “But we are excited about the prospect of regularly informing luxury brand executives about the desirability of their brands online, across various categories, geographical markets and even by specific product.”

“For the World Luxury Index China, we’ve looked at over 150 million consumer searches performed in China’s leading search engines, Baidu and Google, and analysed the findings to identify the most-searched luxury brands. In the process we uncovered some fascinating insights,” confirms David Sadigh, CEO and founder of Digital Luxury Group.

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Conducting the report…

With new statistics on the luxury industry in China being shared each day, the time is right for a uniform benchmark. Using DLG’s proprietary technology, DemandTracker™, the World Luxury Index has been created to provide luxury brands with a standardised solution to measure brand interest at an international level.

Our key findings include…

Eighteen out of the top fifty most-searched for luxury brands (36%) in China are automobile brands. Audi is the most-searched, followed by BMW and Mercedes Benz. Audi has long held a privileged spot in China, it’s the official car of the Chinese government.

Chinese brand Chow Tai Fook is the most searched jewellery brand in China, far surpassing 2nd and 3rd ranked brands, Cartier and Swarovski. With a distribution network of over 1,500 locations across 320 cities in China, Hong Kong, and Macau, it’s no surprise that they lead. Cartier can be found in approximately 300 stores.

The top 3 most-searched fashion brands in the ranking, Louis Vuitton (#3), Chanel (#5), and Dior (#8) each lead through different segments. Interest for Dior is specifically related to beauty (and more specifically fragrance) over 80% of the time. For Chanel, beauty represents just fewer than 50%, and fashion and accessories at 40%, while it was noted 94% of searches are fashion/accessory-related for Louis Vuitton

“ Unlike the other parts of the world, Western brands in China often find that the public calls the brand something other than the official name ”

Unlike the other parts of the world, Western brands in China often find that the public calls the brand something other than the official name. This is illustrated by looking at the names used when Chinese search for Burberry:

– 76% by unofficial Chinese name
– 15% by official Chinese name
– 9% by English name

Some brands are more recognized for shortened versions of their official names, where 63% of searches for Louis Vuitton were made using “LV” instead of “Louis Vuitton”.

Other brands have adapted their names to paraphrases instead of using a literal translation of their brand name, to resonate more closely with Chinese consumers. For example, Hermès in Chinese [爱马仕] means “an elegant man who loves horsing” and Land Rover [路虎] means “a tiger on the road.”

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Most surprisingly we found…

The World Luxury Index China revealed several luxury brand success stories. Take Moncler for example, the French fashion brand has been generating a surprisingly high level of interest in China thanks to its sponsorship of a widely watched television program in which the main characters all wore Moncler. This shows how important and influential TV in China can be.

Another really interesting example is Borghese, a beauty brand not particularly well known in the US and Europe is fascinatingly strong in China. Ranked #43, Borghese surpasses other notable beauty brands Benefit and Guerlain. Thanks to its highly regarded facemasks, Borghese, has been the talk of beauty forums and blogs even long before the brand’s official entry into the Chinese market. Here the impact of cult products and beauty forums and blogs is at work.


The full report is available online at: http://www.dlgr.com/chinarank. More detailed data and analysis on a particular segment or brand is available upon request.

For any further enquiries regarding the index or research, please contact Tamar Koifman of Digital Luxury Group, tkoifman@digital-luxury.com.


Digital Luxury Group
is the first international company dedicated exclusively to the design and implementation of digital communication strategies for luxury brands, with offices in New York, Geneva and Shanghai.

Luxury Society is the world’s most influential online community of top luxury executives. Based in Paris, with members in more than 150 countries, Luxury Society informs and connects CEOs, managers, journalists, consultants, designers and analysts from across the luxury industry.


© Luxury Society, The Top 50 Most-Searched for Luxury Brands in China, 25 April 2012, by Sophie Duran.


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