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LUXURY IN TURBULENT TIMES Deepak Ohri  – CEO, lebua Hotels and Resorts
Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Understanding Luxury
Do we understand luxury? Luxury ranges from conspicuous austerity to  overt opulence
Characteristics of Luxury Segment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Luxury- The fine blend
Luxury and Inaccessibility ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Luxury in Recession
Are the last days near ?
The real changes ,[object Object],[object Object],[object Object],[object Object]
Changing Focus ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
So why’s there a slowdown? ,[object Object],[object Object],[object Object],[object Object]
Several brands weather recession ,[object Object],[object Object],[object Object],What are they doing Right? Hermes has never chased after the aspirational consumer. The consumer  whose wealth grew from middle class to upper middle class over the past  decades. They didn't introduce lower priced goods to attract a younger,  hipper, "yuppie" client. They didn't try fancy advertising campaigns  designed to create envy or desire. Hermes don't flaunt those names to the public to attract trend watching,  celebrity influenced consumers.
Shift in spectrum Volvo Origin:  Swedish, founded in 1935. Bought by Ford in 1999 Current Owner:  Close to sale to Chinese manufacturers for around $3bn Aston Martin Origin:  Origin in London, 1914 Robert Bamford and Lionel Martin Current Owner:  An anglo-Arab consortium (a racer, collector, Adeem and Dar Investment, Kuwait) Jaguar Origin:  1945 in Britain. Became Britains’s largest car manufacturer in 1960 as British Leyland Current Owner:  Ratan Tata. Jaguar in the same stable as Nano.
What luxury brands do wrong
Brand Proliferation and Management ,[object Object],[object Object],[object Object],[object Object],[object Object]
LVMH Example Only very few LVMH brands are profitable like Louis Vuitton Multiple brands do not necessarily mean luxury
Innovation
Product vs. Experience The biggest tower does not define the most luxurious experience Today consumers pay for experiential luxury Creation of perception , value and unforgettable moments
New Trends in Luxury
Channels and Pricing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Internet and Social Media ,[object Object],[object Object],[object Object],[object Object],[object Object]
CSR ,[object Object],[object Object],[object Object]
Emerging Markets – Is it always the right strategy?
Luxury – Major Markets
Emerging Markets – the right call? ,[object Object],[object Object],Epoch Times – Jan, 2009
JAPAN – Top five luxury Brands Source : Luxury Institute Survey - 2009
JAPAN – A closer look ,[object Object],[object Object],[object Object],Luxury Brands Percentage global revenue from Japan Baccarat      35%    Bulgari       26%    Burberry       36%    Coach        22%    Hermes      25%    Gucci Group      27%    LVMH Group      15%    Louis Vuitton brand    +30%    Salvatore Ferragamo      27%    Tiffany & Co.      20%    Van Cleef and Arpels      33%
JAPAN – A closer look ..II ,[object Object],[object Object],[object Object],[object Object],[object Object],Versace has pulled out of Japan after 30 years LVMH has suspended plans of its biggest store at Ginza, Japan Designer brand Yohji Yamamato filed for bankruptcy
CHINA – Top five luxury Brands ,[object Object],[object Object],[object Object],[object Object],[object Object],Consumer Behavior Source: KPMG and TNS research, 2008
INDIA – Top 5 Luxury Brands Emphasis on Home grown Luxury Brands Slower adoption towards global luxury brands Most luxury products are  worn as badges to show off Focus is more on  fashion  statement   rather than eye for quality and craftsmanship Consumer Behavior Source: The Hindustan Times
[object Object]
Focus - Luxury Hospitality
Two faces of Luxury ,[object Object],[object Object]
The need to innovate Is there a real difference ?   Is Innovation lacking?   Time to change ?
The best hotel in the World.. Lebua is performing consistently in the top 5% of companies in the Travel & Leisure Sector world wide who have been measured using the TRI*M System (2005-2008). The highest recorded measure in this sector is 116, achieved by a hotel in the UK. A total of 10 companies have achieved scores above 100 of which three were hotels. In the past 9 months, lebua has been in the top 5% 7 times and scored 110 or over 4 times. Customer Satisfaction Survey
Awards for lebua (2008-09) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Awards for the Dome at lebua ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Awards for the Dome at lebua ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Questions ?

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Luxury In Turbulent Times Slideshare

  • 1. LUXURY IN TURBULENT TIMES Deepak Ohri – CEO, lebua Hotels and Resorts
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  • 4. Do we understand luxury? Luxury ranges from conspicuous austerity to overt opulence
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  • 9. Are the last days near ?
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  • 14. Shift in spectrum Volvo Origin: Swedish, founded in 1935. Bought by Ford in 1999 Current Owner: Close to sale to Chinese manufacturers for around $3bn Aston Martin Origin: Origin in London, 1914 Robert Bamford and Lionel Martin Current Owner: An anglo-Arab consortium (a racer, collector, Adeem and Dar Investment, Kuwait) Jaguar Origin: 1945 in Britain. Became Britains’s largest car manufacturer in 1960 as British Leyland Current Owner: Ratan Tata. Jaguar in the same stable as Nano.
  • 15. What luxury brands do wrong
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  • 17. LVMH Example Only very few LVMH brands are profitable like Louis Vuitton Multiple brands do not necessarily mean luxury
  • 19. Product vs. Experience The biggest tower does not define the most luxurious experience Today consumers pay for experiential luxury Creation of perception , value and unforgettable moments
  • 20. New Trends in Luxury
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  • 24. Emerging Markets – Is it always the right strategy?
  • 25. Luxury – Major Markets
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  • 27. JAPAN – Top five luxury Brands Source : Luxury Institute Survey - 2009
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  • 31. INDIA – Top 5 Luxury Brands Emphasis on Home grown Luxury Brands Slower adoption towards global luxury brands Most luxury products are worn as badges to show off Focus is more on fashion statement rather than eye for quality and craftsmanship Consumer Behavior Source: The Hindustan Times
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  • 33. Focus - Luxury Hospitality
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  • 35. The need to innovate Is there a real difference ? Is Innovation lacking? Time to change ?
  • 36. The best hotel in the World.. Lebua is performing consistently in the top 5% of companies in the Travel & Leisure Sector world wide who have been measured using the TRI*M System (2005-2008). The highest recorded measure in this sector is 116, achieved by a hotel in the UK. A total of 10 companies have achieved scores above 100 of which three were hotels. In the past 9 months, lebua has been in the top 5% 7 times and scored 110 or over 4 times. Customer Satisfaction Survey
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