Retail
The architecture of a cathedral-like flagship stores has become one of the central preoccupations of global luxury brands. In a recent post we talked about the rise of the flagship store as a piece of brand communication. (See ‘Flagship Stores Go In Search Of Transcendence’)
However, the message that the store is sending may be more complicated than just inspiring awe. Gucci’s new store on Fifth Avenue is thought to occupy the most expensive retail space in the world - but the fact that Abercrombie & Fitch is next door, suggests that Fifth Avenue presence is not always about high luxury. A recent article suggests that the Gucci store might be trying to court two audiences at once…
Much has been made about how Gucci’s new 46,000-square-foot store, at the location that used to house Asprey, represents the latest in ultra-luxury shopping. But while the store is poised to draw international tourists, the super-wealthy and aspirational affluents, some brokers speculate that its location along high-traffic Fifth Avenue sends a different message: Despite the gloss, Gucci is determined to court a clientele that is simultaneously broader and more middle-brow. — (Via TheRealDeal)
While in Milan, luxury headquarters are also building new cathedrals, but of a much more corporate kind…
The soaring high-rise structure etched against the sky might be in Los Angeles - if it weren’t for the gray clouds reflected on the glass. But a shiny new building burnishing a street of aged industrial brickwork is the latest trend in Milan. Thanks to the force of Italian manufacturing, fashion houses are creating an urban renaissance. — (Via International Herald Tribune)
Strategy
Our consulting work is all about helping luxury brands negotiate a path between their heritage and their future. But as the luxury category is evolving, so is our work.
The strategic work of luxury brands used to be about just redefining the heritage of the brand through a contemporary point of view. It involved updating, finding focus, selecting a relevant narrative.
What is becoming more important - and is more exciting - is a more aggressive aesthetic where the past and the future are not just smoothed appropriately together but where they strategically collide…
We believe that this sense of strategic collisions will define the future energy of luxury marketing, and is embodied in the work of 24-year old designer Dustin Arnold, a designer who channels Aubrey Beardsley and 17th-century Italian engravers, on behalf of Seattle tattoo artists, as well as luxury brands including Vertu and Shiseido.
We have been fans for some time, and Print Magazine just wrote a bio on him.
Gen. Luxury
Luxury products are - by definition - not necessary. They begin where necessity ends. And many luxury brands have increasingly struggled to justify their more conspicuous excesses to a more challenging consumer marketplace of opinion.
However, something very interesting - and vital to the future of luxury - is beginning to emerge. Luxury brands are beginning to realize that there is a way to turn responsibility into a key part of luxury brand DNA.
After all, luxury is about turning the rare into the aspirational. In a culture where responsibility remains rare, luxury brands can play a key role in defining their positioning in a more responsible way
The ever-quotable Tom Ford has often been a surprisingly good futurist of the luxury industry, and his latest interview on the subject is no exception;
“Consumers, at least in the West, are now demanding ethical luxury. People want to demonstrate their environmental or social consciences – they are no longer fashion victims who covet items because they see a celebrity owning them. They still want and desire fine things. Luxury is not going out of style; it needs to change its style. The industry can no longer be propelled purely by logo-driven marketing. Luxury used to mean hard-to-find. Then it became hard-to-miss. We need to replace hollow with deep.” — (Via CNBC)
Agenda Inc.
We’re looking for help to redesign a client website.
We need a distinct point of view; prestige meets minimal, nothing that spins or moves, simple without being empty, premium without being stuffy, not afraid to be a bit messed up in a Rick Owens, taxidermy kind of way…
If anyone can deliver that, we’d be happy to hear from you.
Accessories
The repositioning of Samsonite - from a dependable suitcase vendor - to multibrand luxury powerhouse has been astonishingly fast. President and CEO Marcello Bottoli has created a new positioning based on adapting strategies from Procter & Gamble, and Louis Vuitton, and by attracting a showcase of talent such as Alexander McQueen, and Viktor & Rolf.
The brand has gone from near bankruptcy to sales worth $1B in just 7 years. With the tagline “life’s a journey” it clearly has Louis Vuitton in its immediate sights, but there is an energy at the brand, and a sense of ambition, that suggests that it’s happy to go head-to-head with almost anyone…
As well as building on a hugely successful expansion into footwear and a move into the women’s handbag market – “which once would have been considered outrageous,” laughs Bottoli – the current transformation will involve a big push into eyewear, men’s and women’s fashion accessories, timepieces, mobile phones, stationery and various hush-hush projects. — (Via CNBC)
Accessories
Strong brand recognition, international sales, and - possibly new accounting techniques - are offered by BusinessWeek as some of the reasons behind a 10% spike for Tiffany & Co., and a raised outlook for 2008.
However, some analysts are questioning whether the brands rally will continue…
After the surprising results and rosy outlook, some analysts remain skeptical about Tiffany’s earnings outlook for the year, citing the bleak economic environment and rising commodity prices globally. — (Via BusinessWeek)
In addition, earnings at Tiffany & Co. were boosted - briefly - last week by the Barack Obama campaign which accidentally charged a personal Obama purchase to a campaign credit card…
When asked about the curious expenditure, campaign spokeswoman Jen Psaki said, “That was mistakenly charged to a campaign credit card and the money has been refunded to the campaign. — (Via Huffington Post)
Gen. Luxury
The growing enthusiasm for bespoke products is part of a wider commitment to quality in the luxury industry.
American tailors - notably Thom Browne, and Tom Ford - have built powerful new brands on the power of bespoke. And now other categories are getting in on the action…
Bespoke perfumes have been on the rise for several years, and continue to grow in strength
Bespoke perfume (and cologne, for men) is one of the ridiculous luxuries of a certain self-absorbed demographic, with the likes of Chanel and Cartier charging as much as €60,000 for the privilege of having a nose find your perfect scent. — (Via GridSkipper)
While Sir Hand Sloane offers bespoke chocolates
The $2,400 tailor-made package includes tasting consultations, a handmade rosewood-and-maple inlaid box containing 60 customized chocolates, and a backup box of another 60. — (Via Time)
And Perrier-Jouet recently announced a bespoke initiative, claiming it to be the most expensive champagne ever made.
Each of the successful buyers will also visit Perrier-Jouet’s Maison Belle Epoque in Epernay, and work with cellar master Herve Deschamps to tailor-make their own bottles, made with a base of Perrier-Jouet Fleur de Champagne Blanc de Blancs 2000 cuvee. — (Via DrinksInternational)
Fashion
Style journalist Hadley Freeman has just published an entertaining book called The Meaning Of Sunglasses: A Guide to (Almost) All Things Fashionable.
It’s not exactly critical reading, but is a down-to-earth amused polemic on some nice details of the fashion and style industry.
Including, the uselessness of mittens, the talent of Marc Jacobs, and other random miscellanea…
VIA AMAZON.CO.UK
Automotive
At the 2008 Geneva auto salon, Dr Franz-Josef Paefgen, Bentley Chairman and Chief Executive, announced a far-reaching environment programme to reduce CO2 emissions and improve fuel economy across the range.
Following years of engineering studies and intensive product development, exploring alternative environmental technologies in depth, our solution is focused on three complementary steps: Improved efficiency, New Powertrain and Renewable fuel. — (Via Bentley Motors)
In a rather eloquent - even moving - new white paper, the brand speaks of the need to balance luxury and practicality…
Many of our customers are influential opinion leaders and like to be seen making socially responsible choices in their modes of consumption. Bentley could meet that demand by offering a lower performance derivative. But this would not be consistent with customer expectations. The likely modest sales volume would risk making our actions appear as a cosmetic gesture, and of little practical consequence. — (Download PDF)
Gen. Luxury
Sex And The City had a highly influential role in the relationship between pop culture and luxury brands. It helped boost sales of brands such as Dior and Balenciaga, and turned Manolo Blahnik into a household name.
The upcoming release of the new Sex And The City movie will again feature a rash of luxury brands, but reflecting a growing cultural shift, some of them will be for rent, not for sale.
The movie has signed a deal with luxury lease company, Bag Borrow or Steal.
The Seattle startup not only is mentioned in a scene in the movie, but the company plans to unveil a special “Sex and the City” online shop where customers can find accessories inspired by the popular cast of characters such as Samantha, Miranda, Carrie and Charlotte. Bag Borrow or Steal also is hosting a “Sex and the City Style Profile” contest on YouTube and a “Sex and the City Purse-onality” sweepstakes in which grand price winners can win a trip for two to New York for the premiere of the movie in late May. — (Via Seattle Post Intelligencer)
Portfolio sees this as part of a recession trend.
Luxury retailers may be on the ropes, their once-avid shoppers heading for the exits. But the economic malaise gripping the country could have a silver lining for a small but growing section of the luxury market, one that rents to women what they can’t afford to buy—or, possibly, keep. — (Via Portfolio)
Meanwhile, next month in London, the Fractional Life Expo will bring together all the elements of this growing shift in attitudes to non-permanent ownership…
From a strategic point of view, luxury brands need to understand the opportunities that are possible in an increasingly rental atmosphere.
