Coca-Cola did it again:
Coca-Cola did it again:
According to CPP Luxury, Italian house of Bottega Veneta (owned by Kering – former PPR) is expected to overtake the eight per cent growth forecast for the global luxury goods market this year. The brand saw profits boost of 46.7 per cent in 2012, as reported in February. “Bottega should grow faster than average considering the trend of the segment that we are in, which is absolute luxury,” said the label’s chairman and chief executive, Marco Bizzarri. “This customer is less hit by the [economic] crisis.” Bizzarri credits the exclusivity and craftsmanship of the brand’s products (some of which take up to 15 years to create), for its success.
“For us Made In Italy is so important, the quality of the artisans and the material is so important, that if we feel any kind of pressure on our profitability we will put prices up,” he told The Financial Times. “We’ve found that as long as our quality is maintained that the customers are willing to pay a premium.”
Staff.com sent me an email with this cool infographic of them.
Blame it on the media when people seem to think that their hot tech startup will make them a billionaire by their mid-20s.
Being a startup ourselves, we are very interested in the factors that contribute to a startup’s success, so we created this infographic on those factors, or chances that your startup will fail or succeed. This also includes some research on projections for the best sectors to start your new business.
A recent study conducted by CPP has revealed that Germany’s luxury market will grow by up to 20% in 2013, particularly the fashion, watches, jewellery sectors. As the the primary purpose of travelling to Germany is medical (treatments, surgeries etc), luxury retail and hospitality and indirect beneficiaries. Over 30% of the wealthy visitor to Germany come from the Middle East (UAE, Kuwait, Qatar, Oman and Bahrain).
Governments in most of these countries subsidize costs for treatment abroad of its nationals, from flights to accommodation and the hospital bills. The most ”generous” is the government of U.A.E., its embassies making all necessary arrangements. According to our survey, the length of such a ”medical” trip for a Gulf patient is on average 10 days – in many cases, flight arrangements being business class and hotels five star. Each patient is allowed to be accompanied by a relative or friend and in the case of women, by two such close people.
In Europe, Germany ranks as first choice, given the quality of medical services, especially for cardiology, ophtamology and cancer. Munich ranks first, followed by Hamburg and Dusseldorf (Essen).
In luxury hotels in Munich, these medical travellers now make up to a third of all guests, hence, personalized services such as literature in Arabic and Arabic cuisine menus in restaurants and in-room dining. This explains the high occupancy at luxury hotels in Munich, Hamburg and Dusseldorf in off-season as well as the high rates, despite a steep decline in corporate travel. Travel to Germany by Gulf nationals has also been helped by direct flight connections – Emirates fly non-stop from Dubai to Munich, Berlin and Hamburg while Qatar Airways flies from Munich and Hamburg, non stop to Doha. Lufthansa is also flying direct to several Gulf destinations. Etihad flies non-stop from Abu Dhabi to Frankfurt and Munich, and through its partnership with Air Berlin, to over 20 cities in Germany.
Russians and nationals from Eastern European countries are also incresingly travelling to Germany for medical reasons, however, unlike Gulf nationals, their expenses are covered by either private insurance or personal income. There are direct flights between many cities in Germany to Moscow and Sankt Petersburg. There has also been an increase from CIS states such as Kazakhstan and Azerbaijan, most of them for medical reasons too.
As for Asian travellers, most of them from China and South Korea, arrive in Germany mostly for leisure and they favour mainly Berlin, Munich and Frankfurt. The lower prices of most luxury branded goods, in many cases 20% cheaper than in China, have been the major incentive for Chinese to travel to Germany. By comparison to Paris or London, flights between China and Germany are cheaper due to an oversupply. On average an return economy class flight ticket from Beijing to Frankfurt is 30 to 40% cheaper than an economy return from Paris to Beijing.
Asian travellers also prefer German luxury shopping destinations such as Munich, Berlin and Frankfurt given that luxury hotel rates are up to 30% cheaper than those in Paris or Milan.
Major luxury brands such as Prada and Vuitton have grasped on the potential of foreign travellers and have placed Germany at the top of their expansion plans in Europe. They are also tackling an important shortcoming of Munich or Berlin, which have smaller stores than in Paris, London or Milan (hence a reduced variety of their collections), by enlarging existing stores or opening new, larger store.
In Munich, Prada is enlarging its existing flagship store by 30% (adding a adjacent building), while Louis Vuitton is opening an impressive Louis Vuitton Maison store at the prestigious Palais an der Oper on Residenzstrasse, covering 600 sqm – both stores due to open this Summer.
Leading jewellery and watches retailer Bucherer is opening in Munich its second flagship store in Munich near the new Vuitton Maison this Summer. Max Mara is also scheduled to open its new flagship store in Munich on Theatinerstrass this summer. The new developments in Munich come after the recent openings, at the end of 2012, of several new stores: Tom Ford, Belstaff, Michael Kors and Saint Laurent.
In Germany, Prada operates 6 mono-brand stores and 2 shop in shops; Louis Vuitton operates 8 stores; Gucci 7 mono-brand stores and 4 corners; Cartier operates 5 mono-brand boutiques, Ermenegildo Zegna 4 mono-brand stores and 4 corners; Burberry 4 mono-brand stores; Tiffany 4 mono-brand boutiques. Many of the luxury fashion and accessories brands blame the lack of infrastructure (few luxury department stores) and high leases for the slow retail development in Germany.
As for watches, most of the major luxury brands are represented through wholesale, the most important retailers being Wempe (15 stores in Germany) and Bucherer. Rolex (through local partners), Blancpain and Omega are among the brands with a large representation of mono-brand boutiques in Germany.
With the inauguration of the ZegnArt project in Mumbai – India, Gildo Zegna, CEO of Italian luxury menswear house Ermenegildo Zegna said that India will likely reach the levels of luxury consumption of China in 10 to 15 years. In India, Zegna operates 5 stores in joint venture with Reliance Group, while in China it operates directlty 100 stores nationwide.
The ZegnArt project features the works of Reena Kallat, curated by Anna Zegna, the exhibition being on display at the Dr Bhau Daji Lad Museum in Mumbai until 15 May. The ZegnArt project will be hosted in Turkey and Brazil in 2014, coinciding with the Art Biennale in each countries.
The 2013 World Watch Report shows that Fine Watches have lost none of their online appeal, as the 18 brands tracked by the report posted a 7% increase in online interest. Unsurprisingly, the BRIC countries, led by China, are the main driving forces behind this growth.
Now in its ninth year, the World Watch Report, which tracks the performance of luxury watch brands based on online searches, reveals in its 2013 edition a global rise of 7% for the 18 Fine Watch Maisons under review*. The report examines 20 markets and a billion queries. “Unsurprisingly, the emerging markets are fuelling this growth,” comments Florent Bondoux of Digital Luxury Group, the producer of the report which has the backing of the Fondation de la Haute Horlogerie. “Virtually half of global interest stems from the four BRIC countries [Brazil Russia, India, China] and the Asian markets. Chinese internet users clearly outrank others with 31% of searches relating to Fine Watchmaking compared with 20% in 2012.” This 27% increase is matched by growth in Brazil (+30%), Russia (+43%) and even India (+18%), whereas mature markets such as the United States (-11%) and Japan (-12%) have waned. (more…)
Swiss luxury watch brand Patek Philippe launched a website dedicated to ladies. The Ladies Microsite gives a behind the scenes look at how the brand approaches the design and production of women’s watches and includes an insightful video interview with Sandrine Stern, who heads up watch creation. There’s also a special section that describes the inspiration and production of Ref. 4968, the ‘Diamond Ribbon’ watch, a unique way of setting diamonds inspired by a gymnast’s ribbon.
The new microsite has a primary focus on education with the assumption that ladies need to be educated on watchmaking. The initiative could well be a retort to fashion houses like Dior or Chanel which have been producing watches with a predominantly aesthetic criteria, but the new Patek Philippe fails if compared to other established luxury watchmakers, some of which have taken a more sophisticated approach. Omega, Longines and Audemars Piguet have long had initiatives targeting ladies watches, through exclusive events, celebrity endorsements etc.
One such recent initiative is Longines’ 20 year multi-million dollar sponsorship of Fédération Equestre Internationale (FEI), an agreement signed between FEI President HRH Princess Haya and Mrs Nayla Hayek, Chair of the Board of Directors of the Swatch Group, which owns Longines. The new collaboration establishes Longines’ consistent and coherent focus on equestrian, being already the official sponsor of Prix de Diane, one of the most prestigious equestrian competitions worldwide.
According to the fashion related website, CPP-LUXURY, at times, overshadowed by the excessive coverage on China, several important international luxury markets have shown solid growth in 2012, defying worldwide volatile economic conditions. These markets have been showing great potential not only for the retail sector but also for hospitality, yachting and travel, with an increased appetite for luxury and with a strong motivation to buy locally rather than abroad. (more…)
1. Electrolux Vac from the Sea programme, which ranked fourth in our Creative Index, is an example that combines everything required of a modern public relations campaign: social understanding, channel neutrality, ideas big and small, and a focus on genuine behavioural change.
2. Jung Relations’ efforts for Absolut, meanwhile, which see powerful public relations thinking infuse the company’s product strategy, are similarly impressive. Two that stand out are the Absolut Unique project, and the NoLabel campaign.
3. Another campaign that should not be overlooked is MSL’s Ariel Fashion Shoot, recently named one of our Global SABRE Award winners.
Heineken®, the world’s leading premium beer brand, today announced a thrilling new TV and digital campaign, in anticipation of the release of the 23rd James Bond adventure, SKYFALL™, which sees Daniel Craig bring his explosive portrayal of James Bond to a Heineken ad for the very first time. Challenging consumers to defy his enemies and ‘Crack the Case’, viewers will be taken on an epic train journey alongside stunning Bond newcomer Bérénice Marlohe.
Australian creative agency Reborn helped Breville promote its Dual Boiler by introducing the art and science behind the perfect espresso. ‘The Naked Espresso‘ used physical computing to create live visualizations of the coffee as it was being brewed by measuring and graphically displaying the flow rate, pressure, temperature, and steam.
PR Pret-a Porter.
Microsoft Corp unveiled its first new logo in 25 years on Thursday, August 23, as it looks to unify its branding ahead of a clutch of new product releases this year.
The world’s largest software company is introducing a dash of color in its first logo redesign since 1987, using a new multi-coloured square next to a plain rendering of its name in Segoe font, replacing its well-worn Helvetica Black Italic-style logo.
Here’s a nice bit of multi-faceted irony for you: On August 23, Canada’s Globe and Mail newspaper ran a print ad for Google’s (directly competitive) search advertising business.
“You know who needs a haircut? People searching for a haircut,” the ad reads. “Maybe that’s why ads on Google work.”
The ad was tweeted by media reporter Steve Ladurantaye with the caption, “An ad for Google ads in today’s Globe demonstrates the value of print ads, yes?”
Google’s ad ran in both the Globe‘s print and digital editions, as well as in the National Post, the Globe‘s main competitor, Ladurantaye tells us.
But hey, at least Google is supporting newspapers, right?