For anyone still chortling over the end of the It bag – the laugh’s on you, if the folks at LVMH (who know their accessories), are to be believed. On the Q3 results conference call today both spokesperson Chris Hollis and CFO Jean-Jacques Guinoy specifically referred to handbags as engines of growth for not one but three—count ‘em! – of their brands. Read more
Today Bain released its 11th annual Luxury Goods worldwide Market Study, projecting that the luxury market growth will slow to about 10% a year, and then perhaps 4-6% for the next two years, and that all the slack won’t be picked up by China, which is also slowing. When Burberry first noted this trend, the reaction was largely “shock, horror!”, and their stock dropped 20%. However, I wonder if long-term this slowdown might not actually be a useful thing.
Recently I was talking to James Carsellis, the entrepreneur behind web start-up Luxup, and he mentioned the theory that Europe was becoming a luxury goods Disneyland for emerging market consumers. You know: a place where the entertainment value/point lies in shopping for expensive stuff. I don’t think the comparison is that far-fetched.
The branded jewellery game, long viewed as an area with the least players and the biggest potential pay-off, has a new entrant: Versace, which just announced it will introduce its first high jewellery line (one-off creations with emeralds, diamonds, etc) this Sunday during its couture show at the Paris Ritz. I’ll see your collection and raise you! Read more
After Nicole Kidman, after Audrey Tatou, after Carol Bouquet, comes…Brad Pitt? Chanel has just announced the latter will be the new, and first male, face of their cash cow product, aka the perfume Chanel No 5, aka the one of the best-selling perfumes in the world — since it debuted 1921. Now, that’s a surprise. Mr Pitt’s appointment, not the success of the scent.
When the iPad 3 went on-sale at midnight last friday night it provoked the usual frenzy — miles of lines, ecstatic buyers — as well as one very interesting blog that somehow seems to have fallen through the cracks over the weekend. It takes a good, analytic look at the general perception that Apple is a luxury brand and points out that it does tick all the luxury boxes save one: exclusivity. But here’s what I wonder: is exclusivity really a luxury value these days?
Q: When is a hand bag not just a handbag ?
A: When it is also a piece of high jewellery and a sculptural object.
The crocodile skin and diamond Hermès bag (photo by Dan Tobin Smith)
Such is the case, anyway, with Hermès’s second foray into haute bijouterie (as opposed to haute joaillerie — the former starts with outrageous designs, the latter with mega stones). Their jeweller and shoe maestro Pierre Hardy created four different mini-handbags, in part inspired by the brand’s iconic handbags, using gold and a LOT of precious stones. They are each functionally a “bracelet” and they actually work as (very small) handbags.In theory, anyway.
It seems to me the idea of anyone actually carrying a handbag worth €1.5m and made of intertwining chains covered in 11,000 diamonds, or a rose gold version of the Kelly bag with crocodile scales and 1,160 diamonds is a little nuts, and I mentioned this to Patrick Thomas, the CEO of the brand. He laughed. Read more
In the battle about counterfeits and control of the web that has pitted Google, Facebook and their techneprenuer kin against content producers from Hollywood and the music industry, with congress apparently caught in the middle, little mention has been made of fashion — which is odd, because fashion, especially the luxury end, has been actively policing on-line piracy, and insisting on third party responsibility (eBay, Google) for years.
Today ex-P&G marketing guru Jim Stengel lists his top 50 brands of the last decade (out of 50,000) as judged by performance, consumer loyalty, and growth. These included the expected names like Apple, Starbucks and Amazon, as well as some less expected: the only fashion/luxury brands that make the list are — wait for it — Calvin Klein, Hugo Boss, and Louis Vuitton. Surprised? How about now: Mr Stengel attributes their success largely to four factors, one of which is CEOs who are “artist-businessmen.” Read more
I had a very interesting conversation with a Calvin Kleiner this morning as we were waiting for the company’s pre-collection show to start. He had just come back from their latest store opening — at a mall in Toronto.
“Toronto?” quoth I, dubiously. “Is that a big market for Calvin Klein?” Read more