Prada to Establish Russian Presence 29/10/10

Luxury brands eyeing foreign markets have their focus set on the up and coming Chinese market at the moment as we have discussed several times previously here at The MO Down. It’s interesting to see that Prada has its eye on the Russian market. Another emerging market that was very strong five to six years ago yet has gone off the 'priority' list for brand expansion over the recent global economic crisis. Prada rented retail space in key locations this week, analysts are suggesting they are going to invest quite a bit establishing the brand here. The grand opening of the first Russian Prada boutique is rumoured to be planned for autumn 2011, in Moscow’s luxury shopping precinct at the intersection of Bolshaya Dmittovka and Stoleshnikov Pereylok. Try saying that after a few glasses of vodka!

Prada has been available in Russia since 2002, managed by retailer Mercury. However, with the increasing popularity of luxury brands, the market is becoming more and more competitive and names like Prada are having to develop their identities in the local context in order to stand out and remain competitive. Particularly given the exorbitant cost of renting retail space in prestigious areas in Moscow, brands have to assert themselves as one of the big guns in order to succeed. It seems that Prada are keen to own their image in Russia, and will soon be able to provide luxury shoppers with a shopping experience that is uniquely Prada. It’s certain that opening their own boutiques is a step in the right direction to bringing the popularity of the brand in Russia up to par with other parts of Europe.

Image credit: http://rt.com

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Coach Reports Excellent First Quarter Figures 28/10/10

Coach has reported impressive figures for its first-quarter net income. Rising 34 per cent, revenue has risen 20 per cent to $911.7 million, smashing expectations. Shares are at their highest since 2007, rising over 10 per cent. Coach’s results reaffirm reports that consumer spending is on its way back up.

Exciting things happening at Coach it seems, in perfect preparation for the holiday season. Having varied its strategy slightly, Coach is reportedly on the cusp of releasing new ranges, with a wider variety of sizes and prices. Though times are looking up for the luxury and premium industry, it seems that they are trying to reach a broader target market.

We have mixed feelings about this sort of thing here at the MO Down. Not because we don’t want Coach products to be more affordable (which largely they are) – we do. Our concern is twofold. One, we worry that with these sorts of initiatives brands might start to spread themselves too thin. Who are they marketing for? What happens if brand identity starts to slip below the sights of the premium market, but remain above mainstream taste? In other words, they could be placing themselves in brand limbo.

Second, as we have seen with collaborations, if premium labels appear suddenly able to produce products under the same name at a cheaper price, they create a dilemma for themselves. How do they maintain the quality image of their pricier ranges without causing consumers to question whether these products deserve their price tags? Identity is so crucial in the premium arena, we get cautious when it is toyed with.

Image credit: coachbagsales.com

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Julianne Moore As The Latest Face of Bulgari 22/10/10

One thing that really fascinates us here at the MO Down, is the way luxury brands use celebrities in their campaigns. Powerhouses like Chanel and Louis Vuitton, resting on carefully constructed reputations for excellence and innovation, time and time again turn to celebrities for a certain something they can’t manufacture. There are too many great celebrity campaigns to count. Nicole Kidman’s Chanel no. 5 ad with Baz Luhrmann, Sean Connery for Louis Vuitton. These campaigns capture everything that makes that person so amazing, and tie it so naturally and so seamlessly to their brand that it’s hard to distinguish whether it’s advertising or art.

The latest campaign to catch our attention is Julianne Moore’s for Bulgari. Approaching 50 and looking not a day over 35, it is wonderful to see her as the brand’s spokeswoman. Swimsuit-clad, she looks fresh from the fountain of youth as she effortlessly epitomises ‘fabulous at fifty.’ As the face and body of the ‘racy’ campaign, she poses nude– a bold move at her age, though one that has already earned her kudos. In her latest film “Chloe” Moore kisses a woman. Glamorous and intriguing as Moore is, it is interesting to us that this sort of potentially controversial activity makes someone so desirable to a brand like Bulgari. Essentially, that’s exactly it. She is glamorous and intriguing and gets away with boldness, and allows Bulgari to be the same without taking any risks. Genius.

All natural and all amazing, Bulgari have broken off a piece for themselves. Definitely worth taking a peek at the campaign.

Image credit: nydailynews.com

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Collaborations Are The New Black… How many is too many? 13/9/10

We’ve noticed a significant rise in luxury brands collaborating with mass-market retailers. Valentino with Gap, Lanvin with H&M, Jimmy Choo with H&M, Stella McCartney with Target. The list goes on. We wonder how many it will take before the novelty wears off? How many, before its too many? Is the collaboration from a high-end designer with a more commercial retailer nearing the end of its popularity? It doesn’t seem so. While we understand there is a certain strategy behind collaboration involving brand awareness and covering ground not usually covered with the limited luxury or high-end marketing strategy. Still, the question begs to be asked. If a designer like Valentino can really make a fabulous ‘capsule collection’ for one fifteenth of the price, doesn’t it raise some questions about mark ups? We have been in the luxury industry for long enough to know that of course there is more to the extravagant price tags of luxury goods than a name. Exotic fabrics, embellishments, different production methods separate the crème from the crop. However, giving the public access to too much of something that is meant to be rare and exclusive, we can’t help but wonder if it cheapens the brand. Both in terms of exclusivity and perceptions of having ‘sold out.’ The oh-so-important existing customers may begin to get a little miffed. Thoughts anyone?

Image credit: scrapetv.com

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