Set Sail For Louis Vuitton’s New “Island” Store in Singapore – 30/9/09

Louis Vuitton is making waves this week with the news that they plan to open a unique “island” store that will “float” on water in Singapore.

According to the Luxury Insider, this boutique at Singapore’s Marina Bay Sands will be enshrined in a stand-alone glass-and-steel crystal pavilion that appears to float on the water off the integrated shopping centre, restaurant and entertainment complex.

We like the sound of this novel concept, but can’t help wondering whether it was inspired by one of France’s most famous desserts, Oeufs á la Nage (which means ‘floating island’)?

For a closer look at the Marina Bay Sands concept, click here to visit the official website.

Burberry Offers Casual Chic To U.S. Market – 29/9/09

U.K. brand Burberry definitely has its heart set on winning over the struggling U.S. market. They even went as far as to expand their fashion line-up to a “more casual ‘Brit’ line”, according to a Bloomberg article.

Burberry C.E.O Angela Ahrendts said, “We do believe there is a broader opportunity in a market like America with our department-store partners to sell more of the casual ‘Burberry Brit’ range.”

This “more casual line” will feature US $600 trench coats and US $150 Wellington boots.

Evolving to suit the market seems to be already working in Burberry’s favour. Burberry’s Chief Financial Officer, Stacey Cartwright, said she is “optimistic” of a stronger second half in the U.S. as buyers increase inventory. A “handful” of stores have already indicated they will be giving floor space to its relabelled, more casual ‘Brit’ line.

See the MO Down for September 7 for our report on Burberry’s planned U.S. expansion entitled It’s Full Steam Ahead For Burberry In The U.S.

Asian Market “A Primary Focus” For Gucci Group – 28/9/09

Speaking during Milan Fashion Week, Gucci Group Chief Executive Officer, Robert Polet, told Bloomberg that, “For a long, long time to come, Asia will be the primary focus of Gucci Group investments.”

Polet also added that 22 of the 27 stores the company opened in the first half were in Asia. He said, “Emerging markets remain engines of growth. They might slow down slightly, but they’re still growing.”

Polet also suggested that acquisitions may be on the agenda, but would not discuss possible targets.
Still on the Asian expansion theme, we read in The Economic Times that Gucci has parted ways with its Indian franchisee, Vijay Murjani, in favour of a franchise agreement with Luxury Goods Retail, run by investment banker Ashok Wadhwa. However, this new agreement is in the process of being converted into a 51:49 percent interest* joint venture (JV).

A spokeswoman from Ashok Wadhwa stated, “Gucci will control the majority stake in the JV and it will drive the day-to-day business in India.” So it seems to us that Gucci is in a good place right now – holding the reins to a potentially lucrative partnership.

*Indian rules allow only 51% foreign investment in single-brand retail and none in multi-brand retail.

Burberry Shares Surge Over 5 Percent – 25/9/09

Burberry shares surged 5.4 percent after their Chief Executive Officer, Angela Ahrendts, said the luxury brand’s U.K. business is “on fire.”

This is more good fortune for Burberry, who recently joined the FTSE 100 Index (see the MO Down on 10 September for full details).

Hermes’ CEO Is Downhearted About Japanese Sales Slump – 25/9/09

Hermes International’s Chief Executive Officer, Patrick Thomas, has told Bloomberg that he “is not optimistic at all” about the next six months because of a delayed economic recovery in Japan, the French luxury-goods maker’s biggest market.

Thomas said, “I’m not expecting to see the light of the tunnel before 2010. The Japanese economy is not good and we all feel it.”

The article goes on to say that Japan, where Hermes made 22 percent of last year’s 1.76 billion euros (US $2.6 billion) in sales, had 2.3 percent growth in the second quarter, less than initially estimated.

Hopefully the tide will turn for Hermes in Japan. In the meantime, the brand seems to be making all the right moves to attract luxury clients. For example, last month we reported the launch of a Hermes helicopter that transports customers from the airport to the city (refer to the MO Down for 10 August: Hermes Takes Customer Service To New Heights In Japan.)

And click here for the rest of Bloomberg’s interview with Patrick Thomas.

Tiffany & Co. Loses Their Trademark Showdown – 25/9/09

Trademarks are still a hot topic this week, with news that luxury jewellery chain Tiffany & Co. was unsuccessful in their recent attempt to prevent New York fashion designer Tiffany Koury from registering her name as a trademark.

Lawyers for Tiffany & Co. used evidence from Koury’s MySpace pages to argue that Koury was attempting to capitalise on the company’s reputation.

However, the Australian Trademarks Office ruled in favour of Koury, suggesting there could be no "danger of deception" between the two brands.

For a full report on this hearing, click here.

Google Wins The Battle But Not The War Against LVMH – 24/9/09

In the case of Google vs. LVMH, a European Union court advisor has ruled that Google Inc does not violate luxury brand trademarks when it sells brand names as advertising keywords in internet searches.

Although this ruling is not binding, it is a blow for LVMH. The luxury group has been fighting Google for almost seven years in France over this issue.

But the war is not over. The final ruling on this case by the EU's Luxembourg-based high court is expected in the coming months, according to an AP article. If LVMH wins, it is a victory for all luxury brands.

Click here for a Bloomberg article that provides background information on this history-making case.