Will French Luxury Brands Charm The Chinese With cColbert? – 30/10/09

In our recent article on Customer Connection Is Crucial, a marketing expert suggested that European luxury brands have to woo the Asian market by educating potential customers about their brands. His exact words were, “Tell them a story, tell them the history. A watch, a bag, a pair of shoes can become so much more if you educate people."

So now it seems the French luxury brands at least are listening. This week’s release of cColbert is proof.

cColbert is a website designed by the Comite Colbert, France’s leading luxury federation, that’s targeted at Chinese consumers and designed to create “a virtual voyage through French luxury.”

According to its website - www.ccolbert.fr/, “the Comité Colbert, a group representing 70 French luxury houses, invites you to embark on an interactive journey in three dimensions to discover the world of French luxury.”

Whether or not cColbert will win Chinese customers over, we can’t predict, but we do think this is a step in the right direction for French luxury brands intent on charming the Asian market.

Boucheron Set To Sparkle In China? – 30/10/09

High-end Gucci Group jeweller Boucheron has inked a deal with Sparkle Roll Group Limited, a major Chinese distributor of prestige products, to create a chain of six to ten stores in China over the next five years.

“With their unique ability to bring luxury to the region, Sparkle Roll is the ideal partner to help us develop and strengthen Boucheron’s presence in China,” said Boucheron’s C.E.O, Jean-Christophe Bedos, in a FWD article.

Versace Forced To Cut 350 Jobs – 30/10/09

As we speak, Versace is in crisis mode. A quarter of their workforce will be axed and the company expects to make a loss for 2009.

In an AFP article, Versace's C.E.O, Gian Giacomo Ferraris, said, "Trading conditions in the wake of the global financial crisis have been severe and the company expects to make a loss in 2009.”

Versace announced earlier this month that they were closing their Japanese stores (see the MO Down for 8 October). Let’s hope all this cost-cutting combats their financial downturn.

Christian Lacroix Buy-Out Hearing Adjourned – 29/10/09

We expected Christian Lacroix to have a new owner by now. But the latest word is that the French tribunal set another hearing for November 17, due to procedural delays.

According to an AFP report, an Ajman sheikh, Al Hassan Bin Al Nuaimi, is the frontrunner in the buyout. Other contenders are Bernard Krief Consulting and La Financiere Saint Germain.

For more information, consult the MO Down on October 1.

Giorgio Armani Ready To Retire? – 29/10/09

"I'm already organizing staff who will continue my work. Of course I am not eternal, there comes a time when you must hand it over." - Giorgio Armani.

There you have it – straight from the horse’s mouth (via Reuters). Or is this just Armani’s way of toying with the media?

We can’t be sure. All we know is that earlier in the month, there was a major reshuffle of Armani’s senior management team (see the MO Down for 2 October) so perhaps an official announcement is imminent?... We’ll keep you posted.

Examining The New Breed Of Luxury Customer – 28/10/09

The ‘Luxe Market Faces [a] Wealth Of Challenges’ according to an Adweek article we came across today.

This in-depth four-page article put many interesting issues on the table. However, the section that caught our attention was subtitled, ‘The Importance Of Pedigree.’ Its crux was that a luxury brand's long-standing heritage is often an important part of its value to shoppers. Milton Pedraza, C.E.O. of the Luxury Institute, supported this argument, saying, "There are very few new luxury brands. It's extremely hard to be a luxury brand without the pedigree and longevity… In this market, people are gravitating toward quality and history.” This has always been a simple truth to us.

Another section that stood out was the ‘Rise And Fall Of The 'Aspirational.’ It stated, “One problem for the luxury market, though, is that it came to rely partly on customers who weren't really wealthy enough to be buying such goods in the first place -- the "aspirational" consumers who relied on credit to indulge in the luxe life.”

It also goes on to suggest that wooing the genuinely affluent customers requires a completely different marketing strategy. Another argument we strongly agree with. For more of our thoughts on this, consult our earlier article: What The Luxury Customer Always Wants.

To read the full article, click here. There is also a Part 2 to be released next week.

Burberry Branches Out Into Cosmetics – 27/10/09

The latest word from WWD Fashion is that Burberry has a cosmetics line in the pipeline.

This cosmetics line, to be produced by Inter Parfums SA., will incorporate a “complete colour line with about 100 references for eyes, lips and skin.”

We wonder what Burberry will call this range - ‘Colour Me Plaid’, perhaps?

On a more serious note, we suspect Burberry cosmetics will be successful. Their perfume range has proved very profitable for Inter Parfums. In fact, when Inter Parfums released their third quarter sales* last week to Reuters, their C.E.O., Jean Madar, singled out Burberry perfumes, saying, "Despite the difficult launch schedule comparison and the weak economic environment, [there was] strong growth of Burberry fragrances (up 19% in local currency) …”

* The third quarter net sales for Inter Parfums were $117.5 million, 5 percent below last year’s third quarter net sales of $123.5 million.