Can You Spot The Super Rich? Debate In Luxury Consumer Market - 30/07/10

It’s a matter of ‘don’t judge a book by its cover’ in the Chinese luxury market, as many luxury brands are finding it hard to understand the Chinese consumers status-motivated shopping. The luxury goods market in China is estimated to come in at $9 billion this year, with a vast range of shoppers adding to the mix. China Market Research have revealed that 60-70 percent of this market is driven by young shoppers in their 20’s who save up to buy luxury goods, rather than make a small fortune, and other consumers including wealthy business men over 40 who may not dress to impress, are adding to the equation of shoppers that many luxury brands are choosing to underestimate.

As passionate supporters of the ‘consumer experience’, it’s disappointing to see consumers disregarded and to see distinctions drawn between what shoppers wear and what they can afford. By metering out consistent service to everyone, loyal relationships are formed, and it is a shame on any brand that can not practice equality with each consumer that comes to their store. We stand by a somewhat old but very appropriate quote from NIKE - “Just Do It!”

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Canturi Shines At Wedding Of Miranda Kerr And Orlando Bloom - 30/07/10

The wedding of Miranda Kerr and Orlando Bloom has proven that Australia has several successful luxury exports, from product to people! Miranda presented her new husband with a stunning Canturi ring, which was specifically designed by Stefano Canturi for the wedding. Canturi brought that extra touch of style to the wedding of the two stars, which will no doubt help grow the Australian fine jewellery brands fiercely loyal client base. Canturi have grown their retail distribution strategically and with consideration, and now have three stores in Australia (Melbourne, Sydney and Brisbane) and two in the United States, Las Vegas and New York.

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LVMH Installs Confidence Boost In Luxury Market - 29/07/10

The mighty LVMH group, the world's largest luxury goods conglomerate, have their Supergroup cape on right now, flying through the global skies to ensure the return to profit post GFC is worthy of a roar and a fairly good reason to beat the chest.

Yes, they will go forth and build a new leather goods factory in France and create jobs for 320 new craftsmen, and initiate production at a new tannery in Belgium. Yes, they "will continue to gain market share thanks to the numerous product launches planned before the end of the year, to its geographic expansion in promising markets and to its cost management". There is no stopping the mighty Supergroup, as the CEO Bernard Arnault said "demand is outstripping supply. There’s a waiting list at Louis Vuitton.” And we don't doubt this extends to DIOR, Fendi and many, if not all super brands within the Supergroup.

Thank goodness for LVMH's success, this is the biggest confidence vote the global luxury market can get, with a rise "in Paris trading after reporting a 53 percent surge in first-half profit that beat analysts’ estimates". It's a fine day for all.

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Vogue Fashion's Night Out Sydney Prepares For Kick Off- 28/07/10

Sydney-siders gathered together today for the briefing of the inaugural Vogue Fashion’s Night Out. Amongst the brands that came together were Hermes, Chanel and Coach who will all work to rejuvenate the retail landscape of Sydney’s CBD. The event comes after the great success of Vogue Fashion’s Night Out in New York, which was spearheaded by Anna Wintour last year. We look forward to the outcome of more niche and commercial brands, from luxury and high street areas, working together to showcase the very best in product and their ‘very fine services’.

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Spotlight On Burberry Possible Sale - 28/07/10

The rumour mill is in overdrive about Burberry being ready for a purchase, with the mystery buyer being named as PPR Group. Previous rumours circulated around LVMH as a possible contender, and whilst PPR are not confirmed, their name has popped up yet again with stronger circulation emanating from the UK financial markets. The Burberry star shines brightly- but who would have guessed a checkered raincoat could have a market capitalisation of 3.7million pounds and trade at a 22 percent premium to its peers. We will keep you updated on this rumour as more solid evidence comes to hand.

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De Beers Announces Enormous Profit Rise- 27/07/10

There is great news for De Beers, as they have begun to rebuild after the recession with successful results across retail sale profits. WWD reported “in the six months to June 30, De Beers profits rose to $348 million, compared with a $6 million loss in the corresponding period last year.” During the GFC De Beers went to extremes of cutting 25% of their staff- we want to know if they have reintroduced these cost cutting measures to achieve such results.

What is also interesting to note, but what is not widely known, is that De Beers has a joint venture for its retail arm with LVMH Moët Hennessy Louis Vuitton (it's the company you keep really, that counts…), De Beers Diamond Jewelers. Evidently a “healthy rebound,” has been witnessed and the company has announced plans to unveil a group of new collections later this year.

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Watch This Space- Pringle Reinvent Themselves - 27/07/10

Pringle, more famously known for its near 200 year heritage and fabulous knitwear, is having a wardrobe make over. Pringle’s boss Mary-Adair Macaire has revealed the companies stealth and strategic plans to rejuvenate the brand that was once known as ‘the’ luxury knitwear label.

The brand lost its gloss over the past decade with its product (which was too narrow, too similar and too...for a certain age) and marketing strategy, yet now, Macaire has grand plans to “turn the knitwear brand into Scotland's answer to Chanel.” How will she reach this goal? Macaire will focus on moving the brand forward, whilst reinventing its association with Scottish fashion, through modern design.

Macaire also aims to maintain Pringle’s heritage, noting that “key retailers want to work with us at the luxury end because a lot of labels are made in Asia or somewhere else and it's not the same. Not the same longevity, not the same feel.”

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Debate: Luxury Brands And Selling Online -26/07/10

Some luxury brands are still sticking with tradition as they refuse to move into the online world of selling product. Whilst the effort of many luxury brands online has proven that luxury and social media may be the perfect match, it’s taking a while for some brands to step up to this new phenomenon.

Although luxury is all about the heritage, the in-store face to face experience, the touch and feel of the product and interior design of the store, the online world is yet another ‘distribution’ channel that can also offer the same experience and interactive relationship between the consumer and the brand.

Although steeped in tradition, luxury labels must evolve with this new phenomenon in order to reach new consumers who may not be able to venture near a store or instead prefer the comfort of online shopping. We don’t need to go into the Gen Y conversation, as we know how internet-savvy this generation is, but if luxury brands want to be sustainable they need to offer their product online. And, despite criticism, this online experience can be just as valid as any face-to-face interaction.

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Sales Results For Inter Parfums Q2 - 26/07/10

The Inter-Parfums Q2 sales results have been announced, with the company confirming their quarterly sales rose 22%, with second quarter sales coming in at $107.8 million vs established $95.2 million. The fragrance company sells luxury brands including Burberry, Van Cleef & Arpels and Christian Lacroix, and their sales have beat the expectations of Wall Street.

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Luxury Brands Embracing 'New Tourists' - 23/07/10

Brazilians are being encouraged to purchase luxury goods in New York, and Prada is hitting the mark, with their Soho store hosting at least three Portuguese speaking staff members. Although companies like Prada are catering for these ‘new tourists’, luxury brands need to be pro-active and not reactive when it comes to building a better customer experience. Whilst a slow inclusion of staff who understand different cultures and languages is important, it is also paramount to ensure that these staff are fluent in the native language of the country where they are working, in order to make local clients also feel valued.

On the home front Australia has seen this mistake made in the 80’s and 90’s, when businesses didn’t anticipate just how strong the Japanese would be as a tourist group. In addition, stores would cater for the clientele, and would overreact by sometimes hiring entire stores of Japanese speaking staff, when in the end local clients would feel isolated. With the current ‘hot’ PRC inbound tourists, all countries should be mindful of this fine line between catering for tourists, yet also managing those vital and long standing relationships with local customers.

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Wealthy Indian Shoppers Look Abroad For Luxury Goods - 23/07/10

Luxury spending in India is at a low, as consumers are looking abroad for their high end designer fix. Instead wealthy Indian shoppers are looking to the fashion capitals of London, Milan and Paris, which is a challenge for luxury companies such as LVMH who have set up shop in India.

Mohan Murjani, who attempted to sell Gucci and Jimmy Choo in Mumbai, but quickly gave up, has stated of this shopping trend in India, “I don’t see luxury taking off for at least another decade.” It appears for now, the ambience and sophistication of luxury shopping abroad is too tempting for wealthy Indian’s.

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Giorgio Armani Taps Into Asian Market - 22/07/10

Giorgio Armani are branching out at a rapid pace, into an untouched Asian market. The company have opened their first stores in Mongolia and Vietnam. The city of Ulan Bator in Mongolia and Ho Chi Minh City of Vietnam have welcomed two new Emporio Armani stores (with a café accompanying the Vietnamese based store.)

Giorgio Armani himself noted that these countries are ‘ready’ for Italian fashion, taking the score of worldwide stores for the company to 1,503. The move into Asia comes after Giorgio Armani suffered a 28% fall in profit last year.

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Hermes On A Winning Trail- Revenue Forecast Raised- 22/07/10

Due to an increase in demand from Asia, Hermes have raised their 2010 revenue forecast. Second quarter sales have increased greater than was foreseen by analysts, with the full year revenue tipped to grow to as much as 12%. The Asian based demand has seen particular focus from wealthy Chinese shoppers who are after luxury goods. Hermes stock has risen 27% this year, which has resulted in a staggering market value for the company of $16.2 billion, with sales in silk ties and scarfs gaining 24%. Hermes now plans to open a further 20 stores this year- and it seems the iconic Hermes scarf is flying high.

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Leading Department Stores Celebrate Milestones - 21/07/10

David Jones has been operating successfully since 1838 (over 170 years) and the company are continuing to focus their strategy on the wealthy consumer. The luxury department store terminated one of their leases in QLD this week, to focus greater effort on a larger and more profitable store nearby. New CEO Paul Zahra is leading the way to ensure they maximise their profit and high value offer to clients. Zahra clearly plans to keep David Jones as the jewel of Australia’s retailing crown.

Across the globe in Hong Kong, luxury department store Lane Crawford is celebrating a successful 160 years of trade with several exclusive limited edition luxury brand offers. The key of their celebration revolves around heritage, and will see a select group of fashion influencers reinvent two symbols of well known heritage- the Burberry trench and the Ming Dynasty Chair. The real celebration will kick off on September 10th at Lane Crawford’s flagship store in the IFC Mall, Hong Kong.

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UK Holds Up Its End Of The Bargain With Luxury Sales -20/07/10

Luxury sales for 2009 in the UK have been much better than expected. The weaker pound has finally found its fans, with 90% of research participants expecting strong sales increases for this year. For tourists, the UK is now a less expensive destination with results showing that “more than a quarter of the British luxury industry is generating more than 25 per cent of its sales from visitors to the UK.”

Whilst Americans hold the majority of visitors shopping for luxury in the UK, Middle Eastern visitors have also been vital as they tend to buy in bulk- a quick pre-Ramadan stopover perhaps!

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Tiffany & Co Unveil New Handbag Collection - 19/07/10

Tiffany & Co have revealed part of their new handbag collection on the web this week, as part of their plan to branch out and beyond fine jewellery. Whilst the majority of the handbags will be priced between $1,000 and $2,000, one glazed crocodile handbag, named “Manhattan” will sell at a staggering $17,500.

September will see the bags available in Tiffany & Co’s largest U.S stores, and will aim to encourage loyal customers to purchase small leather accessories and wallets also. The designers are Richard Lambertson and John Truex, and Tiffany & Co eventually intend to replace unused space associated with fine China and crystal for the new luxury leather goods.

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Burberry Buy Out Chinese Franchises - 19/07/10

Burberry are unstoppable at the moment, with the company announcing they will be buying out their Chinese franchises, in a 70 million pound deal. The result comes after 20 years of the franchise model operating in China and it will see the company take direct control over the 50 stores on the mainland. Burberry CEO, Angela Ahrendts, has said of the robust movement of the business deal, “regardless of the market dynamics going on, other dynamics are in place to make this the optimum time to do [this deal].”

It seems Burberry’s star is truly shining, and with the launch of their Burberry beauty line last week (packaged luxuriously of course), there is no doubt that the brand is hot, hot, hot right now.

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Swiss Bank To Track Luxury Stocks - 16/07/10

A group of fashion companies including Hugo Boss, Polo Ralph Lauren and Hermes International will have their stocks tracked by a Swiss private Bank, Vontobel, who is introducing structured notes. Vontobel recently reported that “luxury goods companies in Europe are expected to post sales growth of 7 percent on average this year, after slumping 6.6 percent in 2009.” The Swiss bank also confirmed that fashion companies returned about 50% last year- now that ‘is’ a fine ROI. Vontobels notes will return any gain or loss to investors across 11 stocks altogether.

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Buy Rating On Tiffany & Co Endorsed - 16/07/10

Analyst Jennifer Milan has maintained her ‘buy’ rating on Tiffany & Co this week- and it’s clearly because everyone is doing just that! After meeting with the company Milan told investors that Tiffany & Co should be able to generate a ‘healthy cash flow’ despite the unstable U.S economy. Most notably consumers are buying across many of their product categories and we believe, of extreme success is their current Yellow Diamond campaign.

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The Google Vs Louis Vuitton Debate Continues - 16/07/10

The debate about Louis Vuitton vs Google doesn’t seem to be going away; it’s a case of choosing your keywords carefully, we say. The dispute between the two companies revolves around sales of trademarked terms as keywords that are linking searches to advertisements. Although Google does not breach company trademark rights for selling keywords, they could be liable in this case with LV, if it is determined that they were aware of, or had any control over, ad data. It is up to the European Union high court to decide now whether Google is liable for trademark breaches if they are found to “play an active role in creating the promotions.”

Today LVMH stated that “Google can be held liable on the grounds of civil liability”. Benjamin Amaudric Du Chaffaut, a lawyer for Google issued an email statement noting that the French court “confirmed that Google has not infringed trademark law by allowing advertisers to select keywords corresponding to third party trademarks.”

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Luxury News In Brief - 15/07/10

Versace have plans to introduce their timepieces into the Indian market, with the news that India’s second largest watchmaker Timex, will be bringing the brand to the country before end of year. Timex vice president Nilanjan Bhattacharya stated “we hope to achieve a double digit growth in the segment.”

Miuccia Prada has once again put her creative evolution in force, with the launch of a new capsule eyewear collection for the brand. Released via Luxottica, Prada Swing Sunglasses are to arrive in store in October valued at US $245. The accompanying ad campaign will mix luxury fashion with art, as comic book illustrators will be asked to design their own Prada Swing heroine (wearing the signature Prada Swing shades of course) with the result being a Prada comic book.

Recently Jimmy Choo, Prada and Bottega Veneta have launched their own e-commerce stores, and it seems the bug is affecting more and more luxury labels as they move into the online space. The latest label to join this growing trend is Marc Jacobs who plans to launch a virtual store in the near future. Whilst it seems online shopping is the way of the future, luxury freestanding stores are fighting back with special discounts and special access for loyal customers.

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Harrods Embraces Islamic Fashion - 15/07/10

Harrods has reached out to Muslim women from around the world, as they have begun selling abayas by sister designers Reem and Hind Beljafla, through the Beljafla DAS Collection. This welcomed change comes a month after Qatar’s sovereign-wealth fund bought the famous London based store. Now, Dior, Hermes and Gucci are looking into options to design luxury abayas for this growing clientele. The abayas designed by Beljafla include coloured embroidery and even leather and studs to enliven the otherwise all black design.

We think it would be interesting to know what percent of the quoted 200-2000 (a large estimate that no fashion house wants to confirm) Haute Couture clients are actually from the United Arab Emirates. We imagine that between them and the Chinese and Russians, they may just be propping up the Couture Houses.

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Rumour: Chinese Businessman Owns 13% Of Prada - 14/07/10

Is it true or false, that a Chinese business tycoon has been slowly (and secretly) purchasing Prada SpA shares over the past couple of years, to the point that he owns 13% of the company? It was reported by a Shanghai newspaper that the man in question Lu Qiang, had been buying shares through “an unidentified Italian consulting firm, which he had acquired for 20 million euros (US$25 million)”

His plan from there was to “invest 450 million euros (US$566 million) in Prada by buying shares from the Italian fashion icon's creditors.” Recent reports have claimed Lu Qiang may change his plans, due to Prada raising the cost of the acquisition between 600 million and 700 million euros.

Prada have claimed the rumours to be ‘totally unfounded’. Other rumours were circling recently concerning Prada considering an IPO.

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Burberry And Giorgio Armani Profit Results Are Confirmed - 14/07/10

It has been a good week for Burberry, with the news that their first quarter, which ended on June 30th, saw revenue rise 30.6 percent to 282 million pounds. The result comes from an increase in non-apparel and outerwear sales, yet it does not include the companies Spanish operations. The news comes as Burberry is planning big- with the aim to open a further 20 to 30 stores before the end of the year across America and the Asia Pacific.

For Giorgio Armani, the story is quite the opposite, as the company has commented on their profit decline of 28% last year, due to the North American and Japanese recessions. The company reported that earnings fell 218 million euros, before interest, taxes, depreciation and amortization.

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Stocks Rise For Luxury Brands - 13/07/10

As reported by Business Week, luxury goods stocks are on the rise. Bulgari SpA experienced their steepest increase in more than two weeks, as they “rose 29 cents, or 5.1 percent, to 5.96 euros.” As for Burberry, they have reported a “23 percent gain in annual profit on increased sales of high-margin accessories and shoes.” Earlier this year Burberry surged 7.6%, and announced plans to accelerate store openings later this year due to their annual profit increase.

For Burberry this profit rise comes at a time when shareholders may voice their opinion about executive pay packages, as 13% of last years voted shares were cast against the companies executive pay policy. Although shareholders are happy with the success of the brand, it may make them a target; they want sustainable success, but not at all costs.

Eyewear makers Luxottica Group experienced an increase of 51 cents, or 2.8 percent, to 18.87 euros, whilst Italian luxury goods group Tod’s “gained 2.05 euros, or 4.1 percent, to 52 euros.” Also in the eyewear market, Safilo Group, “surged 38.5 cents, or 5.4 percent, to 7.59 euros.”

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Chanel Plans To Open Store In Beirut - 12/07/10

We read an interesting comment from star architect Peter Marino at the extraordinary and extravagant Chanel haute couture show last week (featuring the gold lion shrine!). Marino mentioned Chanel is planning to open a large boutique in Beirut, stating “that’s where it’s all happening right now.”

It seems we will have to change our recent descriptions of building sites looking like ‘Beirut on a bad day”, as things are clearly looking up for this once thriving city. Previously a coveted destination for the rich and the famous it seems to be emerging from the rubble and perhaps going back to its glory days as a true luxury destination.

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Harrods Sets To Expand Into China - 12/07/10

Harrods are looking at expansion options, and they have their eyes set firmly on the Chinese market in Shanghai. After the success they have experienced with their niche market in Britain, the retail giant are looking to replicate this in Shanghai by “selling must-haves for the oligarch class from £80,000 crocodile Hermès Birkin bags to £3,000 children's pedal cars.”

We know that the number one leisure sport of the Chinese is shopping, and with a recent increase in Chinese billionaires, Harrods has realised the importance of cashing in on this market. With the number of Chinese shoppers to Harrods increasing by 125% this year, it is obvious why shanghai is under the spotlight for expansion. Managing director Michael Ward has stated of the destination choice, “China is the most probable, but we would have to do a lot of work first.”

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The Shoe Vs The Handbag- Latest Trend Results - 09/07/10

Who would win between the shoe Vs the handbag? According to recent results, the shoe is on top and winning. Euromonitor International Plc have been busy researching the growing trend in shoes over that of handbags, and results have shown that sales of luxury shoes are estimated to rise 20% up until 2013. Revenue growth for handbags, have been estimated at a lower 16% for the same period.

So why the change towards shoes? The demand is now greater for shoes, as consumers can justify purchasing designer shoes over that of a designer handbag. Shoppers are also holding onto their designer handbags for more than one season. As Fflur Roberts of Euromonitor notes “The entry price for shoes is easier.”

Some of the luxury retailers affected by this trend include Burberry, who experienced a 23% increase in annual profit in May, due to more shoes and accessories being sold. Salvatore Ferragamo has experienced wonderful results due to business men in Asia embracing luxury footwear. Valentino CEO Stefano Sassi has confirmed of the companies increased shoe sales “It’s the product category that is doing more right now.”

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France's Richest Man Announced - 09/07/10

It is confirmed- LVMH chief monsieur Bernard Arnault really is the ‘grand fromage’ when it comes to both status and wealth. Challenges magazine has reported that Bernard Arnault “is France’s richest man with a fortune estimated at 22.7 billion euros.” Arnault moved Gerard Mulliez and family, out of their previous number one position-he clearly must be doing something right!

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Chanel Bring New Life To The Couture Runway - 08/07/10

Chanel have proven once again that haute couture is not dead, with a stunning couture show in Paris’s Palais Royal this week. Karl Lagerfeld, the iconic designer behind modern day Chanel chose sequins, gold embroidery and fur lining over the typical Chanel wool suits that we have come to know and love.

Lagerfeld focused on a new knee length in dresses, moving away from below the knee tailored suits. Long woollen coats were favourites amongst the media and buyers, perhaps for their accessibility factor, yet the essence of haute couture was very much alive in the overall collection. Models walked around a 15m high lion, whilst some were accompanied by male suited models wearing extravagant lions head (in an ode to Coco Chanel’s astrological sign, Leo.)

Instead of shying away from haute couture or closing down entirely as designers like Christian Lacroix have done, Chanel continue to engage and utilise their wonderful team of designers and seamstresses. With Karl Lagerfeld challenging the preconceptions of the fashion industry, Chanel are leading the way in French haute couture.

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Bottega Veneta Relaunch Interactive Website - 08/07/10

Bottega Veneta have reinvented and relaunched their website this week. The new design features exclusive video content, an interactive catalogue and an online store, all adding to a whole new level of the customer experience.

In order to create a truly unique online shopping experience, the site features personal shoppers that can assist you with your purchase. And if you aren’t yet ready to completely step away from in-store shopping, there is the option to pick up your purchase from one of the flagship Bottega Veneta stores.

Whilst video content has been grasped by many luxury brands, Bottega Veneta have chosen to feature exclusive online content that cannot be viewed elsewhere. For those who appreciate the fine craftsmanship in each Bottega Veneta design, you can view the Hand of the Artisan, which shows all the behind the scenes work. Or alternatively you may watch the latest runway show, front row from the comfort of your office or home.

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European Debt Crisis: Retail Sales Rise - 07/07/10

Across Europe in May, retail sales rose as Germany, France and Spain increased their spending. As unemployment was at a 12 year peak in May, it is expected that consumers will lower their spending in the coming months. As Hermes CEO Patrick Thomas stated, “many questions remain” concerning the rest of 2010.

Howard Archer, chief European economist at London’s IHS Global Insight, showed concern for the European debt crisis and suggested “it looks very likely that there will be renewed moderation in growth in the third quarter.”

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Harrolds To Refurbish Australian Stores - 07/07/10

Iconic luxury store Harrolds is going through a period of refurbishment across their stores in Melbourne and Sydney. The multi-marque menswear store in Melbourne will be closed for two weeks in late August to complete an entire ground floor overhaul by the talented architect Victor Isode. As the new Westfield is preparing to open in the Sydney CBD, Harrolds will relocate from their current position in Martin Place to this new shopping mecca, later this year.

With former ASSIN director Chris Kyvetos joining Harrolds as Creative Director, both stores will see a new direction for the ground floor, with more luxury and designer mens brands adding to the existing cache of YSL, Balmain, Tom Ford (exclusive to Harrolds) and Givenchy. Harrolds is a company that truly understands the customer experience, through store ambience, product mix and customer service- we can’t wait to see the new changes!

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The Next Generation Of Luxury Consumers - 06/07/10

Not even our children are safe from luxury designers, with brands such as Gucci, Burberry, Dior and Dolce & Gabbana creating designer clothing for infants. As more designers move into this market, we ask, is this a generational, early adopter or Generation I (indulged!) marketing strategy? These luxury brands are definitely top and tailing their product offer, and keeping it in the family, so to speak.

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Haute Couture Is Not Dead - 06/07/10

Despite the rumours, couture is not going to an early grave, according to a few very strong haute couture brands, including Chanel, Dior and Jean Paul Gaultier. As the fashion houses have battled over the last 24 months with the economic crisis, there have been a few casualties such as Christian Lacroix, yet judging by recent results, couture remains alive and in abundance.

The couture houses are reaching new extremes in order to cater for their wealthy clientele. Gucci, who have been a ready-to-wear house previously have moved into couture, and have canceled all runway shows going forward. Instead they are opting for private appointments. After Jean Paul Gaultier showcased their first haute couture show in Moscow, they have experienced a “spectacular recovery” with an onslaught of Russian clients.

For Chanel, their sales from the past Summer collection were up 20 to 30 percent, with president Bruno Pavlovsky explaining ‘we have new clients from Europe and the Middle East’. Givenchy have also predicted an increase of 10 to 20 percent this year, and Dior reported that John Galliano’s previous Summer couture collection was one of their best selling in years. CEO Sidney Toledano stated of their success “we received so many orders, we are not sure we can deliver them.” Toledano explained “the clients are looking for high quality, and haute couture is the summit.” It appears couture is back!

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Luxury News In Brief - 05/07/10

Some positive news for Salvatore Ferragamo this week. In business, the weaker euro has boosted sales and margins, resulting in sale growth for the company. On the creative side, Ferragamo have named Massimiliano Giornetti, as their creative director, controlling all product lines.

LVMH have announced plans to expand their beauty subsidiary, Sephora, into Brazil. The company noted that Sephora can now “develop its local platform, online and over time in stores."

Also in the world of beauty, is the launch of Burberry’s beauty line this week. Chief creative officer Christopher Bailey has explained “we started [the range] from instinct and what we felt was missing from the market.”

Gucci is guilty of using an online social media campaign to promote their latest fragrance. Gucci Guilty is aimed at young consumers with a love for social networking, and the campaign will involve heavy interaction and is expected to top $200 million in first-year retail sales. Creative director Frida Giannini, has explained “we wanted to create something new, unconventional and to break some rules.”

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New Creative Director For Fairfax & Roberts - 05/07/10

Monsier Thierry Martin, an international man of fine jewellery mystery (relatively speaking), is heading to Sydney to join the iconic Australian fine jewellery maison, Fairfax & Roberts. Martin will take on the position as the companies Creative Director, and with a background working for some of the big names including Bulgari, Chanel, Gucci, Van Cleef and Arpels, to name a few, he is expected to bring new light to the company, which has been established since 1858.

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Prada Launches U.S e-store - 02/07/10

Prada have launched their U.S e-store for all those wanting the comfort of shopping online. Unfortunately you can’t buy any clothing off the site, but the brand are offering a selection of purses, accessories and eyewear. With the boutique experience in mind, the Prada e-store offers personalised cards, where shoppers can order gifts to be delivered to their favourite people.

This is a very exciting launch for the brand, but unfortunately we tried to access the U.S listing online and were unable to- we would love to check it out!

Image credit: prada.com

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Tiffany & Co Set To Expand Further Overseas - 02/07/10

Tiffany & Co are not only surviving, they are growing rapidly, with the announcement this week of expansion plans throughout the U.S and India. The company recently expanded into a new accessory line, as they branched into the handbag market, but this time around, they are looking to double their U.S stores and tap into the Indian market.

Chief Financial Officer, James Fernandez stated "we are well positioned for the future and continuing our evolution into a successful geographically diversified retailer.” Tiffany have currently projected earnings of US $2.55 to $2.60 a share on sales growth of 11% this current fiscal year. It looks to be yet another egg-shell blue day!

Image credit: tiffany.com

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Australian Luxury Retail Recap - YE2010 - 1/07/10

So, what have we seen in the last financial year here in Australia on the luxury market?

We have seen New Luxury Precincts and Store Openings:

1. Sydney

• Bondi Junction - Luxury brands Louis Vuitton and Chanel opened, more recently joined by prestige brand Coach
• Sydney International Airport opened Emporio Armani, Burberry and Coach stores to name a few.
• Sydney CBD, Autore - the fine jewellery house opened their first retail boutique. Also in Sydney, Giorgio Armani S.p.A. signed an exclusive agreement with David Jones to become the only Australian department store to stock Armani Collezioni, Armani Jeans, and Armani leather goods and soft accessories.

2. Melbourne

• Chadstone- the new luxury precinct opened with brands such as Louis Vuitton, Gucci, Chanel, Jimmy Choo, Burberry and Prada to name a few, all in one fabulous consolidated centre.
• David Jones Bourke Street - new concessions with Miu Miu, Coach and Burberry.

3. Brisbane

• Nothing luxury scraped in for YE 2010, however it will be a different story come YE 2011!

4. Perth

• Hay Street - Burberry opened their largest Australian square metre store and Emporio Armani extended its brand to the West.

We have seen announcements in Sydney, that Burberry will open a mega flagship store in the former Virgin store on George Street and Martin Place later in 2010 or early 2011 and Louis Vuitton will open their largest Australian store yet, on the corner of King and George Streets in the former Blacket Hotel site, opposite the Apple store. Westfield Sydney City project will come to life in two stages, the first planned for November this year.

We are sure to have missed a few, however these have been the retail expansion highlights of note for the financial year 2010 ended 30 June!

What does this say? International luxury brands are confident in continued investment strategies in Australia to ensure the past and current growth trajectory is capitalised on.

The first quarter of the calendar year for 2010 has seen slightly tougher times for some luxury brands, with cautious optimism leading into the third and fourth quarters of the calendar year and first quarter of the financial year.

If we have missed something key, please let us know!

Image source: zimbio.com

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