Luxury Victims (2)

LuxuryVictims 2012

Louis Vuitton CEO, Yves Carcelle

 Changing Models Using Global communities more Crowd sourcing  Their economics will become much more compelling as the economic downturn makes opening stores and traditional advertising economically challenging. Look for all types of traditional luxury goods and services providers to begin to imitate the techniques of these luxury innovators or to acquire them.

• In the recent boom, some in the luxury industry deluded themselves into believing that the more expensive an item, the greater its appeal to the wealthy, regardless of quality, functionality and service experience. University research suggested that the more expensive a consumer was told an item was, regardless of the fact that it was the same quality as a much lower priced item, the more the happy chemicals in the brain approached a state of bliss.• In times of economic crisis, that high can only last so long. Most of the wealthy are self-made, and have sacrificed to earn every cent while delivering great quality and service to their own customers. Like their customers, they use both sides of their brains to make luxury purchasing decisions. One empirical example: The 2008 research shows that when it comes to luxury travel, the top two factors influencing vacation destination decisions are: scenery and nature (58%), and cost (56%). So, it’s back to value-added luxury fundamentals in 2009.

World turnover in 2007: North America 2%$233 bill. Europe 12%Powerhouses of luxury consumption Asia Pacific 18%USA – largest, accounts for one thirdJapanChinaEurope In 2015 ….. We should think: E-Luxury + Eco-luxury China and India

1- Unique experience

Roatán Bahamas

2- The plasure of buyingsomething different and unique

Downside:Opulent & decadentMaterialist & consumeristSocial segmentation & vanityExploitative - $1000 LV bag in canvasNot essentialConspicuous consumption Upside: Need not be vulgar but sophisticated Asian Aesthetic expression Rusians Brasilians Social positioning more democratic than ‘caste’ system Can be genuine pursuit of excellence Selling dreams/mystical experience

Classic Standards:• Need a change ¡¡• But with style and European look.• Spanish Loewe Add:• http://youtu.be/UUWFWJ9fRoo

Eco Luxury // E-luxury:Luxury brands have to change their mentality and they must take into considerationthe environment, etc..

World Luxury Association (In 2015)

Luxury model for ASIA:Stage 1: Subjugation, desire basedStage 2: Start of money, IndiaStage 3: Show off, new rich, ChinaStage 4: Fit in, Conformity, Joneses, Taiwan/KoreaStage 5: Way of life, Japan, Hong Kong

China in 2015 : 1st in the luxury market • They only buy exclusive products • At least 3 cars and travel 3 times per year. • 30-40 years old • Love to buy and they change their clothing every 3 months • Intelligent, modern, they have more than 1 university degree and they are conscious about the environment, animals, etc…

• People’s Republic Change• Luxury in a Shift• Faces of Luxury

Apple Louis VuittonThey prefer: Cartier Hermes Chanel Maotai

Shanghai:Plaza 66.

Shanghai:• Shanghái is the city for luxury• A city with 23 millions and 132000 are multimillionaire.• 18,3% of Luxury Sales 33000$ 12000$ 7500$

Huaihai Road:

Hermès in China: (new brand Shang Xia)

India has gone from old money to new moneyIndia could be in top 5 consumers by 2025 Over one million luxury consumers Potential new customers: eight million With high disposable income Target audience: 22-55 years Currently worth: US$444mil/Rs2,400cr

Shopping Centers: in Delhi, Gurgao ,Bangalore

Status:• Gucci 41%• Versace 25%• Calvin Klein 31%• Armani 22% 57 % ..see labels as status symbols.• Dior 26%

Susanapuigmarti@yahoo.es Susana Puigmartí Cansick Master Title in Marketing. Exe MBA. Degree in Negotiation. Ecole Hôtelière Les Roches

Luxury Victims (2)

by Susana Puigmartí on Apr 01, 2012

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