Cartier Opens Hong Kong Flagship as Fine Jewellery Looks to Asia... 29/11/10

Cartier plans to double the number of its boutiques in the next two to three years, particularly in China, where the luxury industry is experiencing enormous growth at the moment. The MO Down reported last week that Tiffany & Co. is opening stores faster than ever, and it seems that Cartier is following suit. The opening of its Hong Kong flagship last week demonstrates the brand’s strategic response to the expected growth of the watch and fine jewellery industry in Asia over the next five years. China’s increased appetite for jewels and luxury goods presents an exciting and unrivalled opportunity to capitalise on continuing rapid economic growth and bringing brands to a newly affluent urban population. Making up 31 per cent of the global market, we are fascinated by the different strategies brands are employing to make themselves known in this new market. Many luxury brands are new to Chinese consumers, and brand loyalty is basically non-existent. We predict some elaborate efforts to win hearts and minds, and can’t wait to sit back and watch the show.

Image credit: asiatatler.com

Follow MO Luxury's Facebook page for more luxury news...

Prada Thriving as Sales Soar... 29/11/10

Prada joins the ranks of the thriving Burberry and Tiffany & Co. this week. Sales have tripled in the past nine months following increased sales, and (unsurprisingly), huge growth in Asia. Prada has been expected to make an IPO for a while now. Every time the brand reports strong figures, speculation suggests an IPO is just around the corner. In September, we predicted a Hong Kong offering, but still no official decision just yet...

Prada spokespeople say they are considering a listing in 2011. Now seems as good a time as ever, and it is great to see this beloved name forging strongly ahead. Retail expansion seems to be a common strategy shared by brands that are doing well at the moment. Despite alleged discrimination against workers in Japan, Prada is growing, and stores are opening left right and centre. Australia will gain three new stores in next year’s first quarter (Prada and the first Miu Miu in Sydney Westfield City and a Prada first in Perth). Given Miuccia Prada’s tradition of clever and innovative collections, the brand is on a remarkable trajectory.

Image credit:lifeinitaly.com

Follow MO Luxury's Facebook page for more luxury news...

Tiffany & Co.’s Profits Soar Coming Into the Holiday Season 26/11/10

Tiffany’s holiday season is set to be jolly, following Dow Jones reports of a 27 per cent increase in third quarter profit on Wednesday. Consumer confidence is back on the rise, international expansions, timed nicely with the end of the GFC and the return of prosperity, make music to Tiffany’s earrings.

The MO Down has commented on Tiffany’s recent growth, as well as an increase in the global demand for diamonds. Yes, you guessed it, expansion into China has been a major contributing factor to their recent boom. Tiffany has swiftly responded to Chinese demand for jewels and luxury goods, investing confidently in between 25 and 30 stores, set to open in the next three years (14 this financial year!). Looking at third quarter figures, this may even be a conservative investment. Tiffany & Co. is experiencing enormous popularity in China at the moment, and there seems to be a bit of a chicken or egg scenario. Which came first, their presence, or their popularity?

It's great to see Tiffany's figures shining as bright as its jewels. Further proof that luxury spending is recovering from economic downturn, and we look forward to watching other brands follow suit.

Image credit: tiffany.com

Follow MO Luxury's Facebook page for more luxury news...

DVF, Moschino and Escada Among New Luxury Boutiques Opened in China! 25/11/10

It seems to be new store galore in China at the moment, with new Chinese openings including DVF, Moschino, Escada and Porsche design. Diane Von Furstenberg’s opening of her first Beijing boutique (which contains two diamond-shaped rooms, we told you the Chinese are all about diamonds!), coincides with the opening of the first DVF Sydney boutique. The MO Down was in attendance at last night’s opening at the new Westfield Sydney, and what a spectacular occasion it was.

Across town in China, Shanghai saw the opening of a concept store for the German luxury brand Escada. Incorporating crystal chandeliers, vases and sculpture, the store appeals to the rising popularity of luxury brands in China. Moschino have taken a different, more flamboyant approach, and incorporated four themed mini art exhibitions into its Beijing opening.

The fastest growing luxury market in the world, China is set to see the best luxury brands have to offer in the upcoming months. As brands battle with one another to assert themselves in a highly competitive market, with malleable and embryonic brand loyalty, we predict some fine Chinese displays from the world’s finest.

Image credit: jingdaily.com

Follow MO Luxury's Facebook page for more luxury news...

Can Luxury Brands Tame Social/Online Media?…. The Jury is Still Out... 24/11/10

We’ve spoken at length about the relative reluctance of luxury brands to embrace social/online media. Luxury brands pride themselves on being at the pinnacle of innovation and cutting edge, but have lagged far behind the cutting edge of using social and online media to publicise their brands. Some have said ‘luxury are above that sort of thing.’ This is both ridiculous and untrue. There is no brand so exclusive it can afford not to publicise itself at all. Different courses for different horses, sure. Some prefer more traditional avenues, and that is fine. But we caution brands against shunning ‘new media’ and online marketing, these are increasingly becoming the first port of call, particularly for younger consumers.

It has been interesting to watch many brands jump at the launch of the iPad, with an array of different apps, and a varied rate of success. Brands like Burberry seem to have their social networking down pat. Others are flailing. Here at the MO Down, we are curious as to what impact the success/failure of these apps will have on the success/failure of different luxury brands’ popularity. Will big brands like Chanel and Juicy Couture be able to keep shoppers engaged, and loyally within their branded apps? Luxury shoppers will use the Internet, and they will use social media. The question is, can brands find a way to use this to their advantage. Customers want something that will give them what they want directly, and save them weeding through the mass of information online. Can brands provide this? Will fashion shoppers take to fashion-only aggregators like Asos? Or will they default to searching with Google and ebay? As far as we are concerned, the jury is still out.

Image credit: www.brandbuildsell.com

Follow MO Luxury's Facebook page for more luxury news...

Karl Who?... More Like, Haider Who? 23/11/10

Rumour has it, Karl Lagerfeld is already contemplating his successor at the house of Chanel. He has a contract for life, thank goodness, so it’s at his own discretion that he will select a suitable candidate to succeed his throne. ‘At the moment, I’d say it would be Haider Ackermann’, says Lagerfeld. The crowd goes wild. Ackermann currently resides in Belgium. He is of Colombian origin, and started his line in 2001. He has dressed Penelope Cruz, and Tilda Swinton and we have an inkling he’s about to get a whole lot more attention. For those of you not familiar with his designs, check out his latest collection here! Looks like there are some great things to come for this talented individual…

Image credit: 212dressingroom.com

Follow MO Luxury's Facebook page for more luxury news...

Burberry’s CEO 16 in Fortune’s Business Person of the Year 23/11/10

Last Thursday, we wrote about Burberry, and how they seem to be experiencing a golden era at the moment. Figures are up, and CEO Angela Ahrendts received two Walpole awards. Well, things are only getting better. She is also 16th out of 50 on Fortune’s Business Person of the Year list. How did Ahrendts and 49 others get there? According to Fortune, ‘we searched for leaders who didn’t just crawl from the wreckage of the GFC, but sprinted from it.’ And this is exactly what Burberry has done. Achieving incredible growth during a difficult time over the past 24 plus months, it just goes to show that true talent will prosper no matter how dire things seem. Burberry has employed deep tissue strategy. They know their customers, and they engage them. In return? They’ve won loyalty. With 3 million facebook users ‘liking’ the brand as of last week, they’re certainly reading the mood right now, so very right.

Image credit: www.money.cnn.com

Follow MO Luxury's Facebook page for more luxury news...