This document summarizes key trends in the global luxury goods market from 2014-2015. It finds that the luxury market grew 3% in 2014, with strong growth in luxury cars, hotels, yachts and jets. However, some sectors like China saw declines in 2015. New consumer behaviors like wanting more experiences and meaningful purchases are shaping the industry. Luxury brands are also adapting to trends like sustainability, less visible branding, social media marketing, and the rise of emerging markets. The document analyzes these shifts and strategies luxury brands are employing for future growth.
A look at the the top luxury digital marketing agency, Greenhill Partners...
As the thought-leader in luxury digital marketing, GREENHILL+PARTNERS bridges the gap between luxury brands, agencies and the digital world to help luxury brands succeed in digital marketing.
Virtually every client comes to us with the same concern: We know we have to do digital marketing, but we don’t know how. This is the problem we solve. We serve as your luxury digital marketing arm. As your uniquely knowledgeable and experienced steward we protect your digital investment, prevent brand dilution, enhance exclusivity and brand value, and more importantly, increase sales.
CONSULTING
We consult with brands and their agency to ensure the development of luxury-specific campaigns. We help brands select the best agency to execute their digital campaigns. We monitor and analyze the results of campaigns so our clients are independently aware of campaign success. We act as a digital advocate to ensure that what our clients' agencies are doing is the best digital work at the best possible price.
DIGITAL AGENCY
We also employ an international network of digital creatives and technicians. With our cutting-edge business model, we can execute effective luxury digital campaigns at an average of thirty-percent below traditional agency cost.
Luxury 2020: The Trends Shaping the Luxury Market of the FutureSeymourSloan
By 2020 we will see a different luxury market.
Luxury will not be immune to the businesss and external changes reshaping the world and these will create challenges that brands must be aware of and seek to maximise.
What is Luxury and how do Luxury brands work?
Key trends in the Luxury marketplace
Know vs. Show – the Luxury consumer
The Recession and the Luxury consumer
Luxury retail trends and customer experience in a digital era. A perspective on the customer experience of the future, case studies from leading retailers today and the implications for business corporate strategy, retail stores, employees and HR.
For more on Retail, Digital, Employee and Customer Experience connect with Deloitte Digital Southeast Asia @DeloitteDigi_SG. We’re always happy to talk.
From strategy to delivery, Deloitte Digital combines cutting-edge design with trusted business and technology acumen to define and deliver tomorrow’s business, today. Deloitte Digital is committed to helping clients unlock the business value of emerging technologies.
5 luxury market trends in Southeast Asia (July 2013)Publicis Beijing
Publicly available knowledge on the luxury market is typically global in nature, or focuses only on the big markets in Asia like China. However, Southeast Asia holds opportunity. This deck has been prepared specifically to provide some insight to mid-range luxury brands looking to enter the Southeast Asian markets. PLEASE CREDIT AUTHOR AND BBDO SINGAPORE IF YOU WISH TO REUSE THE INFORMATION IN THIS DECK. Thanks!
A look at the the top luxury digital marketing agency, Greenhill Partners...
As the thought-leader in luxury digital marketing, GREENHILL+PARTNERS bridges the gap between luxury brands, agencies and the digital world to help luxury brands succeed in digital marketing.
Virtually every client comes to us with the same concern: We know we have to do digital marketing, but we don’t know how. This is the problem we solve. We serve as your luxury digital marketing arm. As your uniquely knowledgeable and experienced steward we protect your digital investment, prevent brand dilution, enhance exclusivity and brand value, and more importantly, increase sales.
CONSULTING
We consult with brands and their agency to ensure the development of luxury-specific campaigns. We help brands select the best agency to execute their digital campaigns. We monitor and analyze the results of campaigns so our clients are independently aware of campaign success. We act as a digital advocate to ensure that what our clients' agencies are doing is the best digital work at the best possible price.
DIGITAL AGENCY
We also employ an international network of digital creatives and technicians. With our cutting-edge business model, we can execute effective luxury digital campaigns at an average of thirty-percent below traditional agency cost.
Luxury 2020: The Trends Shaping the Luxury Market of the FutureSeymourSloan
By 2020 we will see a different luxury market.
Luxury will not be immune to the businesss and external changes reshaping the world and these will create challenges that brands must be aware of and seek to maximise.
What is Luxury and how do Luxury brands work?
Key trends in the Luxury marketplace
Know vs. Show – the Luxury consumer
The Recession and the Luxury consumer
Luxury retail trends and customer experience in a digital era. A perspective on the customer experience of the future, case studies from leading retailers today and the implications for business corporate strategy, retail stores, employees and HR.
For more on Retail, Digital, Employee and Customer Experience connect with Deloitte Digital Southeast Asia @DeloitteDigi_SG. We’re always happy to talk.
From strategy to delivery, Deloitte Digital combines cutting-edge design with trusted business and technology acumen to define and deliver tomorrow’s business, today. Deloitte Digital is committed to helping clients unlock the business value of emerging technologies.
5 luxury market trends in Southeast Asia (July 2013)Publicis Beijing
Publicly available knowledge on the luxury market is typically global in nature, or focuses only on the big markets in Asia like China. However, Southeast Asia holds opportunity. This deck has been prepared specifically to provide some insight to mid-range luxury brands looking to enter the Southeast Asian markets. PLEASE CREDIT AUTHOR AND BBDO SINGAPORE IF YOU WISH TO REUSE THE INFORMATION IN THIS DECK. Thanks!
Luxury Workshop: The Psychology of Luxury ShoppingCrobox
From Crobox's behavioral psychologists, learn about the behavioral motives and psychological drivers behind luxury consumption. Then, we give you a workshop on how to market your luxury products better.
E-commerce strategies for Luxury Brands (based on sources)Alba Romero Villa
- Positive aspects & Advantages of going online
- How can luxury brands can recreate their brand essence online?
- How can they do to recreate the sensorial offline experience of the brand online?
- What are the elements that conform a luxury buying experience?
A short market which is about:
- Luxury market overview in Asia,
- Luxury brands in China: in the path of e-commerce, social media and mobile,
- Marketing: where is influence?
- Luxury Brands: how do they perform on social media & Influence?
Estée Lauder - Social and luxury: Challenges and opportunities for high-end b...Branded Ltd
High-end, luxury brands like Estée Lauder are some of the most innovative users of social media for marketing and consumer outreach. See how Estée Lauder is using Social to address challenges and create opportunities, as presented at Branded's 2013 Conference, Social Matters
The goal of the survey was to establish an industry benchmark for digital marketers
at luxury companies. Results to this study, revealed in this report, determine
spending trends and marketing successes, as well as areas in need of further
development and investigation in the luxury market.
With the NET-A-PORTER and Yoox merger, all luxury brands need to quickly embrace new e-commerce strategies and to develop unique social media experience.
This takeaway report aims to explore what is at stake for the luxury industry, to highlight few best practice both from a content strategy perspective and from a retail marketing one.
From anti-social behaviours to re-generate exclusivity, to new approaches regarding customers journeys, the opportunity is big for luxury brands.
Featured brands: Hermès, Chanel, Louis Vuitton etc.
More information on http://thisisreup.com
The values of Millennial shoppers are changing how we define and sell luxury. Learn how this consumer has evolved, and which luxury brands are winning by offering meaningful experiences instead of just stuff.
This is our slide deck for L'Oreal Brandstorm challenge, with the theme: traver retail. We provide some insight and analysis on travel retail market and give some suggestion on how Lancome can compete in this market.
Beautiful Convergence: Exploring the changing face of beauty retailDalziel and Pow
At Dalziel and Pow we love talking about design, brands and stores, and right now the female beauty market has captured our imaginations. As old aesthetic ideals are overturned and new modes of selling emerge, we’ve identified three key insights where brands can tap into a beautiful convergence of fashion, wellbeing, fitness and lifestyle.
We’d love to hear your thoughts and discuss how these insights can be applied to your brand. Email us at beauty@dalziel-pow.com to start the conversation.
Luxury Workshop: The Psychology of Luxury ShoppingCrobox
From Crobox's behavioral psychologists, learn about the behavioral motives and psychological drivers behind luxury consumption. Then, we give you a workshop on how to market your luxury products better.
E-commerce strategies for Luxury Brands (based on sources)Alba Romero Villa
- Positive aspects & Advantages of going online
- How can luxury brands can recreate their brand essence online?
- How can they do to recreate the sensorial offline experience of the brand online?
- What are the elements that conform a luxury buying experience?
A short market which is about:
- Luxury market overview in Asia,
- Luxury brands in China: in the path of e-commerce, social media and mobile,
- Marketing: where is influence?
- Luxury Brands: how do they perform on social media & Influence?
Estée Lauder - Social and luxury: Challenges and opportunities for high-end b...Branded Ltd
High-end, luxury brands like Estée Lauder are some of the most innovative users of social media for marketing and consumer outreach. See how Estée Lauder is using Social to address challenges and create opportunities, as presented at Branded's 2013 Conference, Social Matters
The goal of the survey was to establish an industry benchmark for digital marketers
at luxury companies. Results to this study, revealed in this report, determine
spending trends and marketing successes, as well as areas in need of further
development and investigation in the luxury market.
With the NET-A-PORTER and Yoox merger, all luxury brands need to quickly embrace new e-commerce strategies and to develop unique social media experience.
This takeaway report aims to explore what is at stake for the luxury industry, to highlight few best practice both from a content strategy perspective and from a retail marketing one.
From anti-social behaviours to re-generate exclusivity, to new approaches regarding customers journeys, the opportunity is big for luxury brands.
Featured brands: Hermès, Chanel, Louis Vuitton etc.
More information on http://thisisreup.com
The values of Millennial shoppers are changing how we define and sell luxury. Learn how this consumer has evolved, and which luxury brands are winning by offering meaningful experiences instead of just stuff.
This is our slide deck for L'Oreal Brandstorm challenge, with the theme: traver retail. We provide some insight and analysis on travel retail market and give some suggestion on how Lancome can compete in this market.
Beautiful Convergence: Exploring the changing face of beauty retailDalziel and Pow
At Dalziel and Pow we love talking about design, brands and stores, and right now the female beauty market has captured our imaginations. As old aesthetic ideals are overturned and new modes of selling emerge, we’ve identified three key insights where brands can tap into a beautiful convergence of fashion, wellbeing, fitness and lifestyle.
We’d love to hear your thoughts and discuss how these insights can be applied to your brand. Email us at beauty@dalziel-pow.com to start the conversation.
Like the fingerprint, a brand is a company's unique signature. Branding has the power to promote loyalty, culture, and company values from the inside out. With a focus on internal branding, practitioners must create compelling experiences for internal stakeholders that carries over to the external customer experience.
Loretta Prencipe, Vice President, presented this deck to the IABC DC Chapter on July 13, 2013.
Leaders that inspire all think, act and communicate from the inside-out. Starting with the reason why of things drives decision-making and behavior; Still want to play it as you currently do? Create a global sustainable value for all your stakeholders. Low risks, modest rewards.
This deck will instigate you to think about...
(1) How unearthing brand values is the most important thing in crafting a great brand purpose and breaking away from the category cliches and taking a leap!
(2) This deck answers the question - after having built a great brand campaign - why do brands fail? Lack of brand custodian & partner patience in thinking about the reality of brand profitability.
(3) Wow! We have done a great job in crafting a great brand purpose, cracked a great brand campaign - but how do we get on to always on? How do we engage?
(4) How do we sustain profitability - how do we address brand's every day business needs?
It is only until recent times that companies - startups, SMEs and MNCs - are beginning to understand the true potential of design. They have realized that not only they can design communication, products, and services, but also to design the business itself.
Only when the business is designed itself, companies will be able to have a system to continuously innovate and grow by design.
How do you design the business in order to become design-driven? This infographic should help you.
Brand Purpose, Millennials And The Epic Creative That Engages ThemMSL
MSLGROUP and PRWeek convened brand leaders and agency innovators at Cannes Lions 2014 to discuss strategies for engaging today’s millennials through brand purpose and inspired creative.
Leading innovators shared insights on creating authentic connections with millennials and building creative social marketing initiatives that are driving social change.
For more information, please contact: Scott.Beaudoin@mslgroup.com | Share your feedback with us on twitter @msl_group
Food and Drink is one of the fastest categories to innovate in - so how do you keep up to date?
These are the ingredients that we think
will be making it big this year. We’ve arrived at our
final edit by gathering research from many places:
The Anuga food and drinks fair in Cologne, desk research within the sector, food and drinks blogs and also by speaking to leading health nutritionalists.
Be inspired by these ingredients...
What could they mean for your brand?
Eight Critical Steps for your China Market Entry StrategyDavid Thomas
The process of entering the China market is long, complex and challenging. There are important Do's and Dont's, and you should avoid taking short cuts. In my "eight critical steps" you will learn how to get started, what to be aware of, and how you can give yourself the best chance of success over time.
Download the book now for free at : www.davidthomas.asia
Stuck in the mire of finding a new name for brand or product> Here are some helpful tip as well as the psychology behind why e like certain names above others.
Butterfly London Neutral Identity – the new face of beautyButterfly London
Identity used to be something that you were born with and couldn’t change. Age, race, gender and nationality were firmly fixed, determining who you are and your place in the world. Now our identities are becoming fluid and changeable, reflecting the influence of social status, personality, taste and appearance. We are breaking down our societal conventions and creating more
‘trans’ categories than ever before.
Fallon Brainfood: How Customer Service Will Save LuxuryJeanine Lilke
Luxury brands have long been the gold standard for customer service. In recent years, shifting consumer attitudes, a tight economy, and the massification of luxury have forced luxury leaders to up their game, establishing new ways to attract, connect, and retain customers.
Fallon planners Savanah Brihn and Jeanine Lilke will explore how affluent consumers are placing a higher expectation on the value demanded from luxury brands as well as how luxury leaders are directly responding. Through trend analysis, case studies, and expert interviews, they will demonstrate the values and approaches that will lead luxury (and mass brands) forward. Listeners will take away new approaches to maintain the standards of luxury customer service in a way that fits the values, expectations, and behaviors of today's affluent consumer.
Social Media Best Practices For Luxury Brands.
This research and best practices explains how luxury brands can best accomplish these goals in social media and offers solutions for particular challenges. Additionally, this guide presents case studies of luxury brands to illustrate the industry best (and worst) practices.
Research / Case Studies:
BLACKSTONE Digital Agency
http://www.BlackstoneIndonesia.com
Informe de Sizmek titulado Luxury Brand Benchmark Report. En él, la firma estudió datos de comportamiento de campañas de 42 anunciantes globales de la categoría, desde enero hasta julio de 2014.
Mirror Mirror - How Beauty / Skincare segment is Taming the Digital BeastRanajoy Roy
Reflections on digital influence in beauty & skincare category by Ranajoy Roy, Managing Partner, Newton Digital
Beauty / skincare category is an actively marketed segment on the internet, with countless searches, “how-to” videos and a growing number of peer reviews informing and influencing consumer purchase decisions. Beauty brands have adopted, scaled and evolved by leveraging digital, social and mobile together. Brands are inventing newer ways to engage the consumer in micro pockets of her time and gain share of their limited attention span. Communication is taking place in short bursts over mobile, web and social.
But how are they preparing themselves to win over the digital beast? Explore this full deck and the case studies and recommendations within.
Inside Retail Academy: Managing Marketing in a Multi Channel Retail EnvironmentACRSMonash
The ACRS team attended Inside Retail Academy’s one day intensive workshop, 'Managing marketing in a multi channel retail environment'. The workshop focused on modern marketing in a fast paced, technology fueled, ever-evolving retail environment.
This slideshare is about the current environment in the luxury and fashion industries due to Covid-19 including accelerating trends, interesting initiatives launched by companies across industries, challenges and opportunities faced, and resulting calls-for-action.
2015 EMERGING TOP TEN TRENDS
Please see a recent Zenith Report covering 2015 emerging top trends. The report is designed to help brands apply the learnings from these trends in order to enhance consumer experience and ultimately drive ROI.
The top 10 trends include video explosion, proximity marketing, retails scents, social personalisation, custom-fit, photo shop, swipe right to shop, smart sensor, brand storytelling and geotainment.
ZenithOptimedia's 2015 Emerging Top Ten TrendsZenithOptimedia
ZenithOptimedia's selection of the most important changes in technology, communications and consumer behaviour. The report is designed to help brands apply the learnings from our trends in order to enhance consumer experience and drive ROI.
PHD network summarises in this presentation its predictions for some of the key trends that will shape consumers, retailers and media over the coming year.
CONSUMER BEHAVIOUR IS CHANGING RAPIDLY. AS CONSUMERS’ NEEDS, WANTS AND EXPECTATIONS EVOLVE, BRANDS NEED TO IDENTIFY NEW WAYS TO RESPOND SO AS NOT TO FALL BEHIND THE CURVE.
We will start by looking at key 2014 trends suggesting how they will evolve over the next 12 months. We will then explore 10 new trends to look out for in 2015.
Members of the ACRS attended the all-day event which spoke about 10 macro trends that were now influencing consumer behaviour across multiple industries in Australia. The seminar addressed rapidly rising consumer expectations, how the trends were reshaping consumers expectations and how these successful trends were simply satisfying basic human needs. Insight was given on how retailers and businesses could interpret the macro trends to apply and innovate their own their own vision, products or services, marketing or campaigns, and business models. The following pages highlight the key insights with examples where relevant.
Similar to Business of Luxury Carol Anne Henry (20)
2. Definition of Luxury
“
Italian Vogue, 2011
“
Luxury is a product, service, or experience that is a
culmination of 8 specific characteristics:
RarityExcellence
Expensiveness
Timelessness Honest
TailoredPleasurable
Experience
The luxury market is categorized by three segments
Personal ExperientialTransportation
What is luxury? Quality and not price? Yes, maybe, but it's not enough. Luxury
involves a much wider concept. If you misunderstand it with richness referring
to expensive items only, then you have an old idea of luxury. -Franca Sozzani
Apparel
Jewelry & Watches
Accessories
Cosmetics & Fragrance
Footwear
Leather Goods
Automobiles
Recreational Vehicles
Professional Vehicles
Marine
Aircraft
Hospitality
(food, wine, spirits)
Home/Interiors
Travel Activities &
Management
Collectibles
Real Estate
Charitable Involvement
Personal Health
Management
3. 2014• Global Luxury goods reach 224
billion in revenue in 2014, up
by 3% from 2013
• currency fluctuations in the
first quarter had an impact on
spending patterns
• Luxury Cars are up 10% from
2013
• Hotels up 9% from 2013
• Yachts and jets up 9% from
2013
• Personal Luxuries up 4% from
2013
• Japan, Europe, and the Americas
see positive growth while China
slowed with a negative trend
Bain & Co 2014
Sector
Growth
This data shows how much growth the 2014
market saw within the luxury cars and luxury
hospitality sectors
4. 2015 market estimates
Bain & Co 2015
European market had a good start to
2015, 3-5% expected growth in 2015
expect 1-3% growth in
2015, slower than 2014
due to the dollar
decreasing touristic
spending
Japan is steadily climbing with a projected
5-7 percent growth in 2015
Mainland China projected
to see 2-4% decline due to
spending restrictions
and a more price-
sensitive attitude
5. Sector SIZE Personal
Experiential
Transportation
$700 Billion
$300 Billion
$400 Billion
Personal Luxury
grew 2% from
2013-2014
Luxury hospitality
experienced a 9% increase,
wines and spirits showed
5% increase, find foods 2%
and furniture decreased by
1% between 2013 and 2014
Luxury cars show the
largest increase of 10%,
private jets grew 9%,
luxury cruises 5%, and
yachts showed the smallest
growth with 2% from
2013-2014
Bain & Company 2014
7. New Consumer Behavior
Creates an
opportunity for
luxury
companies to
enhance the
experiential
aspects of what
they offer.
Putting the Luxe Back In Luxury
“Worldwide, Luxury is shifting from “having” to “being.”
-Shock of the New Chic, BCG 2014
begun to look for
a more
meaningful
purchases and
have lowered their
opinions on luxury
products.
Focusing less
on how much
they have
and more
about the
real value of
what they
have.
Consumers have… Consumers are… What does that mean?..
8. Conscious Shoppers
company efforts to
support charities makes
consumers feel better
about buying their
products
“Affluents are putting their money where their hearts are,
marking a profound shift away from “me-first” to “we-
together”.. -Putting the Luxe Back in Luxury
Putting the Luxe Back In Luxury
Affluent shopper
goals have changed to
encourage quality of
life rather than
acquiring more stuff
affluent customers are still less
likely to sacrifice convenience for
price, but are now more willing to
opt for an environmentally
friendly option
10. Anaya, Suleman 2015
“It goes without saying that being seen as
commonplace is poison for any luxury brand”
-Suleman Anaya, Business of Fashion
Branding Preferences
After two periods of low
earnings in 2009, Louis Vuitton
decided to focus on more
luxurious materials and
reduced the visibility of their
monogrammed products.
consumers are moving
away from visible signs of
luxury shopping and are
instead more interested in
uniqueness, high quality,
and an understatement
less brands are putting out
products with large logos,
consumers are no longer
interested in an item that is
branded all over.
11. Social Media Marketing
“Social Media has changed everything and its existence has challenged the world
of luxury, which traditionally scoffed at the notion of being even remotely
accessible”-Karen Robinovits
Luxury Daily
Social Media creates opportunities for
companies to market their products quickly
to a consumer using various social media
platforms.
• for top designer brands, a successful social
media strategy includes innovative
technology, collaborations, and experience
across social media platforms
• Brands who collaborate with popular
internet entities have successfully given
new life to fashion topics
• Luxury marketers have to accept social
media as a long term fixture in order to
maintain long term growth
Nordstrom features their “As Seen On Pinterest” items
12. Two-Fold Mobile Strategy
Mobile Apps are quickly becoming a popular venue for engaging customers
via Social Media. There are things apps can do that a website can not, and
vice versa. A successful brand will utilize both.
• apps create a feature-rich enjoyable user experience that people like
spending time on and come back to.
• websites are accessible from any device
• Mobile web reaches a larger consumer pool
• apps are more useful for brands looking to reach their target audience
Adhami, Melody 2013
13. Blog Marketing“The bloggers have moved from commentators to creators; gone
from front row next to Anna Wintour, to backstage next to Alber
Elbaz in but one calendar year.”
-Global Luxury Trends
Ross, Elspeth 2013
bloggers create a different
bond with the consumer
than a journalist or marketer
does
bloggers emulate styles
and trends while also
making them personal and
exclusive
Bloggers reach a younger
demographic because of
their shared consumer
values
14. Shea, Erin 2013
Print Advertisement“Print remains an effective medium for luxury because it’s
something we can hold, touch, and remember.”- Erin Shea
• Luxury Ads that stand out are the ones that
put the focus on the product and not the
imagery, people, or attitude
• engaging visuals create emotions in
consumers, marketers should aim at making
ads that encourage emotional impulse
• Ralph Lauren Spring/Summer Print Campaign
• Marketers have not ditched print
advertisement for others with low cost
because they have not found a medium that
matches the print experience.
15. “Maintaining brand desirability is
particularly important at a time when growth
is lower and consumers have wider choice in
an increasingly crowded luxury market.”-
Business of Fashion, 2015
RiskofOverExposure
Rarity and Exclusivity are defining
characteristics of Luxury. Brands that lose
those aspects essential lose the essence of
luxury.
Thereissuchathingastoomuchandtomany…
16. im
portantto
have
innovative
m
anagem
ent,“D
esign
Thinking”
Rise in technology and social
media creates more unique
opportunities for brands to
separate themselves from
their
competition
Marketing is a controlling factor in
consumer engagement and
competitive advantage
Use
ofCRM
tools:
incorporate
various
strategies
in
orderto
learn
m
ore
aboutyourtarget
consum
erand
theirloyalties
Setting yourself
apart
from the
competition
17. E-‐Commerce
To be successful, you must master the 3 C’s: COMMERCE, CONTENT ,COMMUNITY
Shock of the New Chic 2014
“For luxury brands, as for every other type of business, the digital
domain is here to stay.”
Brands need to
focus on merging
the concepts of
online and offline
retail, with a hybrid
business
organization model
Brands with an
established e-
commerce site in
the US and Europe
are seeing
10%-20% of retail
sales come from
online.
Brands need to
focus on merging
the concepts of
online and offline
retail, with a hybrid
business
organization model
18. Does Technology Belong in-store?
companies that
incorporate
technology in
other aspects
of their
experience,
they should
also include
it in the
retail
experience
Carr, Tricia 2013
“Department stores and boutiques are where luxury
marketers can present collections in a physical, traditional
sense, but technology should be added in some instances to
show brand innovation.”-Tricia Carr
If the technology is enhancing the customer
experience, then it is adding value to the
traditional retail set up.
Sales
associates can
utilize
technology to
increase
service and
personal
recommendations
19. Emerging Markets
“Our prospects would look grim without China and the
other fast emerging economies”- Guy Salter, China Luxury
Summit 2011
• Newly affluent customers have a big appetite for luxury products
• These consumers with recently acquired wealth are concentrate in
specific regions of emerging markets and their demographic is much
less diverse than that of the US
There is large opportunity for growth for companies who can
successfully read the consumer of these growing markets and meet their
specific needs.
China India Russia Brazil
20. How Emerging Markets
Impact the Luxury Industry
The emergence of new markets has a direct affect on the success
of individual luxury segments. This was evident in 2014 industry
growth statistics, particularly transportation luxury
Bain & Company’s 2014 Annual Global Luxury Study states:
21. New Business
Strategies
shock of new chic, 2014
Luxury brands are
moving away from
“luxury islands” and
creating more
relationships within
the brand and with
outside
organizations.
More data is
available with the
use of CRM tools
which creates a
stronger
communication tie
between brands and
retailers
adjustments to
verticalization
strategies conveys a
sense of exceptionally
high standards to
newcomers and
creates a strong
competitive
advantage.
22. • The shift in office atmosphere and
wardrobe requirements in the work
place has men shopping for more
casual work attire.
• Men are beginning to care more about
their personal appearance and are
attracted to more fashion choices
• “data from Euromonitor, which shows a
4.1 percent decrease in suit sales
between 1999 and 2000, and a further
decline of 21.2 percent between 2000
and 2001.”
• millennial are also credited for created
an increased interest in being
fashionable
“Menaissance"
• department stores are
expanding their mens
departments
• working on customer service
initiatives to encourage men
to shop more
Men today shop for the casual alternative to the suit…
retailers are having to adapt to the growing demand of menswear…
“Even in large Western fashion markets, such as the US, the UK and Germany, the sales of
menswear has been growing at a faster pace than womenswear for the past few years.”
23. TOURISM
Tourism is a great source of income for many luxury companies, especially
transportation and experiential luxuries. However, consumers making
luxury purchases while traveling can affect the growth of their own market.
• certain nationalities are more
likely to spend while traveling
• Chinese tourists
spend three times
more money
abroad than they
would at home
• focusing on certain luxury
cities requires more specific
marketing to account for
cultural/personal tendencies
Think Advisor
24. The Talent GapSocial Media and
digital media on
the rise as a
strategy for
finding top
employees
BCG Minding the Talent Gap, 2014
Many Luxury companies are struggling with finding talent. With the
growth of technologies, there is a strong need for employees who can
successfully combine creative and organizational strategies.
BCG research
shows that
companies with
superior hiring
and better
retention rates
show more
economic benefits
Four Key Areas of
Concern:
Recruiting
Strong Leadership
Employer Brand
Digital Technology
25. Currency/Market Changes
many customers buy luxury as long term
investments, drops in price stability cause
them to question the value and exclusivity
Paton, Elizabeth 2015
“We need price equilibrium around the world,”
Jean-Claude Biver, president of LVMH’s watch and
jewelry division
Currency changes cause
inflation in
manufacturing costs and
inconsistent pricing in
different sales regions
The difference in luxury bags/
watches/jewelry between Europe
and China is the largest it has
been in 3 years according to
Sanford Bernstein Research
Company
The instability of the Euro affects a
majority of luxury companies
26. Off-ChannelLuxury
Balancing act
between good
exposure and over-
exposure
Luxury Daily
discount and outlet stores
help brands reach a
wider variety of
consumers but hurt the
company’s luxury image
if done strategically, outlets can be
beneficial to luxury department stores,
but at what cost to the brands they
carry?
Must maintain brand
status and prevent
outlets from
distracting from core
products
strategic way to engage an
aspirational consumer
Luxurybrandsopeningoutletandfactorystores
27. Graduate student pursuing a dual Masters in Global Luxury Management. Experience in customer
service, sales, education, and team building. Detail oriented and well organized, punctual, and
responsible. Known for ability to maintain and strengthen communication within company
departments and creating strategies to encourage customer satisfaction and generate sales. Focused
on using educational experience to develop the tools necessary for a career in Management. Seeking
a position in Marketing/Public Relations within a global luxury company.
CarolAnneHenry
28. In my undergraduate studies, as well as my first year in the
“real world”, I was a teacher. Being in the Global Luxury
Program seems a far stretch, but there are many things I
learned and was required to do as a teacher that are very
relevant to the business world. Managing the schedules of 24
students, daily. Incorporating your daily schedule into a
larger, year-long curriculum schedule. Planning enough
course work for 24 students, for every day. Making the
required course work seem entertaining to 8 year-olds (a
challenge). Collecting data from their studies and using that
data to make positive changes. But most of all, making sure
that your class is a cohesive team and that one member is
never left behind. Being a teacher has allowed to develop
great communications skills. It helped me acquire
organization and time management skills. Most importantly,
it allowed me the opportunity to experience what it is like to
work with many different types of people.
Why Luxury?
I chose to pursue luxury because of all that luxury encompasses. To me, a luxury product is a piece of art. It
is the idea that at some point, that item was someone’s dream. Knowing that the pair of jeans you are
wearing took 36 hours to create, from choosing the fabric to stitching the pattern by hand. With luxury, the
idea is quality from the time of conception until the moment the consumer puts it away at home. A general,
mass produced item lacks that element of inspiration. The jeans I buy from an average retailer only reminds
me of the machine that took 36 seconds to create them. I choose luxury because I choose to encourage and
hopefully influence an industry that brings art into all facets of production.
From Lunchboxes
to Luxury
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