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Monthly Archives: January 2008

Haute couture gadgets and gear

Technology

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Luxury brands are increasingly interested in technology brand extensions. Ahead of New York Fashion Week, Forbes reviews some of the best; including Dolce & Gabbana, Swarovski, Pucci, Coach, Juicy Couture, and Louis Vuitton.

With 250 million cellphone users in the U.S. alone, and yards-long cashier lines at Apple stores nationwide, it’s easy to see why designers are moving into the technological arena, with phones and accessories costing into the thousands.

“It’s a profitable market,” says Jill Meyers, an industry analyst for In-Stat, a marketing research firm, “and another way for consumers to have a taste of the rich life.”

– (Via Forbes)

Channel News Asia also recently ran a report on the same trend, but with even more examples of the burgeoning trend

Label-loving technophiles have it good these days. More and more luxury-goods companies are crossing over to the once-staid sphere of tech gadgets and stencilling their glitzy logo on every thing cold and metallic, from humble thumbdrives to notebooks.

– (Via ChannelNewsAsia)

The evolving luxury car market

Automotive

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From $255,000 to $1,700,000, a look at the world’s top ten most expensive cars.

– (Via The Weekly Driver)

Meanwhile, The Luxury Institute publishes its survey of the favorite luxury car brands of high-net worth consumers. The top 3

#1 Maybach
#2 Rolls Royce
#3 Bentley

– (Via Yahoo Business)

Interestingly, the trend for luxury cars is to move away from V8 engines, towards smaller, faster, more sophisticated, suggesting that even though luxury vehicles can have V8, the clear movement is towards efficiency.

Luxury cars present an interesting case because their engine power is entirely discretionary. They won’t be used to tow trailers, and their buyers aren’t deeply affected by rising gas prices. They can afford V8s - it’s all about whether or not they want them.

The broad shift indicates that an interest in saving gas is partly a consideration, said Michael Omotos, an analyst with J.D. Power and Associates. Improved V6 performance clears the way for customers to make that choice without sacrifice, he said. “If you can get 300 horsepower out of a V6, what’s the point of going for 340 out of the V8?”

– (Via CNN)

Louis Vuitton is not Nutella

Advertising

lv0108.jpg Today’s IHT takes a closer look at the new Louis Vuitton TV and cinema campaign, including an interview with LV’s Head of Marketing, Pietro Beccari.

The new strategy takes the focus away from celebrities and products into a much more emotional brand-centric positioning.

“It is supposed to touch our clientele and viewers in ways that perhaps other media will not touch,” said Pietro Beccari, Vuitton’s head of marketing. “This is a way to say Louis Vuitton is different. It is something éphémère, but also something that stays.”

Vuitton said it would run the ad in “rigorously selected cinemas” and on cable and satellite channels that were likely to attract well-traveled audiences. These will include news channels like CNN and BBC World, which many business travelers watch in their hotel rooms, as well as outlets like the Golf Channel, Beccari said.

“We will not use television in the way Nutella is using it,” he said, referring to the chocolate-hazelnut spread.
– (International Herald Tribune)

Viva Las Vegas luxury

Retail

barn0108.jpg The relationship between Las Vegas and luxury brands has grown exponentially over recent years. After initial reluctance from major luxury brands to be associated with the kind of classless luxury that Las Vegas affords, the rush to open in Vegas has become a stampede.

Most major luxury brands now see Las Vegas as the second most important US market after New York. Last week, the opening of The Shoppes at The Palazzo saw the debut across 450,000 square feet of the widest array of luxury brands that Vegas has ever seen; including Chloe, Christian Louboutin, Diane Von Furstenberg, Van Cleef & Arpels, Anya Hindmarch, and Michael Kors.

Over the top, yet sophisticated.

That’s the phrase Rob Goldstein, president and chief operating officer of The Palazzo Resort-Hotel-Casino, used to describe his company’s new $1.9 billion resort in Las Vegas and the same could be said for the pomp and pageantry that was on display for the property’s grand opening last week.

– (Casino City Times)

Overheard at Fashion Week - update

Music

We have just completed a major update of the list of soundtracks from Spring / Summer 2008 runway shows including some tracks from Paris couture; and are now publishing the first pieces of music from Autumn / Winter 2008.

Download the PDF of music used for Spring / Summer 2008 shows.
Download the PDF of music used for Autumn / Winter 2008 shows.

Meanwhile, listen to our favorite soundtracks from S/S 08;

Calvin Klein

Hermès

Lagerfeld

Lacoste

Paul Smith Pt1

Paul Smith Pt2

Rodarte

Sonia Rykiel Pt1

Sonia Rykiel Pt2

Meanwhile, New York Fashion Week kicks off on Friday, here’s a schedule

Louis Vuitton caught on video

Advertising

Today, Louis Vuitton announced its first ever TV campaign - clearly based on extending the new Ogilvy strategy that debuted with Gorbachev at the Berlin Wall - less Vogue, more CNN - and with a return to the romance of travel - “We thought it was time to speak through a new media. It’s trying to express a feeling, and a certain quietude.” said Antoine Arnault, Vuitton’s head of communications.

Also, today, the first video images of the jewelry collaboration between Louis Vuitton, Blason and Pharrell Williams were just posted online. Jewelry, it seems, aimed at those who “who party all night in sixth gear”

Trading up, trading down and trading all over the place

Economics

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Today Marriott Hotels announced details - and the name ‘Element’ - of its bold trade-up venture with Ian Schrager; in a joint press release Marriott CEO announced the collaboration as “”a magical combination” (Via Marriott International)

Saks Fifth Avenue trades down (a bit) to create a new mass affluence project describes as “luxury in a loft environment” (Via MediaPost)

Ghirardelli chocolate announces a trade-up venture of a now-rather-familiar “everyday indulgences” variety. (Via EarthTimes)

Diesel trades up with new high-end brand, Black Gold, to launch next week at New York Fashion Week (Via DieselFreak)

Carlsberg trades up outrageously, at $400 a pop (Via Bloomberg)

And Marmite trades up magnificently beyond its worth, with a $300 sandwich spread (Via Ananova)

Luxury brands weigh in on recession

Economics

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A round-up of confidence and nervousness among major luxury brands as nervousness grows about the fading economy… The consensus seems to be optimism among higher brands that this is just a slowdown, but a growing sense at the masstige end of the market that they should be adapting strategies to weather a potential recession…

Burberry “suffering” (Via BrandWeek)

Cartier “safe” (Via BrandWeek)

Coach “we are not immune” (Via WSJ)

Dior couture “up strong double digits” (Via Portfolio)

Ermenegildo Zegna “falling short” (Via WSJ)

PPR “not affected… healthy… better prepared than ever” (Via Reuters)

Richemont “slowdown” (Via WSJ)

Saks “feeling good… healthy” (Via Marketwatch)

Tiffany “declining” (Via Portfolio)

Tods “a cold, but not pneumonia” (Via Reuters)

Tommy Hilfiger “feeling the pinch” (Via The Times, UK)

Gold and platinum “historic highs… lifetime high” (Via Reuters)

And the hedge winner in all of this, Ted Noten, who has taken a Market Price approach to sales of his gold necklaces, with the value shifting each day. So, wherever the market goes next, he stands to make sales… (Via TedNoten.com)

Runway fashion outstrips the counterfeiters

Counterfeit

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The game of cat and mouse between the runway, and the the counterfeiters, speeds up daily. In a blurring market, constant product innovation, and speed-to-market become vital. Two recent approaches come from Dior and Halston

Last week, the intricacy of the graphics in the Dior haute couture designs was widely considered to be an in-built, unusually elegant, anti-counterfeiting device.

And this morning, the online luxury website Net A Porter announced that in a new landmark shift, the clothes from the relaunch of Halston - previewing at New York Fashion Week - will be available immediately for purchase…

“As the collection goes down the runway on February 4 and the press and buyers are seeing it for the first time, two of the key pieces will be sitting, wrapped, packed and ready to go in our distribution centers in Manhattan and London for worldwide delivery,” said Natalie Massenet, chairman and founder of Net-a-porter.com.

– (Via FemaleFirst)

Strategies in scents

Cosmetics

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The New York Times perfume critic Chandler Burr has just released a insider look at the perfume industry. The book juxtaposes the development strategy of a Sarah Jessica-Parker perfume with that of master perfumer Jean-Claude Ellena at Hermes.

The differences show the unfolding narrative of luxury strategy; should a brand rely on heritage, should a brand rely on celebrity? Which are the brand stories that consumers want to hear…

Burr contrasts Parker’s perfume creation in New York with the development of a new scent for the Parisian luxury brand Hermes. Master perfumer Jean-Claude Ellena is hired to create Un Jardin sur le Nil, a garden on the banks of the Nile to challenge the dominance of the Chanel perfumes…. The “Sex and the City” actress and the French perfumer, Burr finds, are kindred spirits trying to create fleeting, liquid art. Both know the secret to a great perfume is a great story. Parker and Ellena use emotions, landscapes and characters as the ingredients in their perfumes, not just chemical synthetics.

– (Associated Press)

SEE BOOK ON AMAZON.COM

Meanwhile, outside the world of Sarah Jessica-Parker and Hermes a gathering fascination for perfume is innovating the industry in other new disruptive ways…

Mandy Aftel’s alchemic return to natural ingredients (Via Aftelier.com)

Blaise Mouton, the perfumer of environments including the Hyatt Hotel (Via BlaiseMautin.com)

Kilian Hennessy, scion of the cognac family finds inspiration in liquor (Via ByKilian.com)