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Posts tagged ‘Burberry’

Germany’s luxury market to grow 20 percent in 2013 thanks to influx from foreign travellers

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).louis vuitton munchen

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.

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PR Pret-a-Porter.

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Digital trends for luxury brands

In order to maximize sales online, an increasing number of luxury brands are taking a bespoke approach, offering personalized services as well as products exclusively sold online. A research presented by Enora Consulting.

Luxury e-commerce now represents 4-6% of the 200 billion euros in sales of luxury goods in the world, according to different estimates compiled by Enora. Almost nonexistent ten years ago, it grew by 25% per year over three or four years and could remain progression of 20% per annum in the coming years.Today, “the number of brands (luxury) with no site is very low” and “brands are positioned more upscale, less use of the Internet is advanced,” says Enora which points to the fact that a third of luxury online sales in France, today, are made with outlet stocks.

luxury brands

Product customization is one of the most widespread approach on e-commerce by many of the major luxury brands: Louis Vuitton offers personalized online of luggage with ”my monogram”,Ralph Lauren offers customization of their shirts (choice of logo, color, adding initials), Boucheron, customizes rings (choice of stones, shapes, quotes by e-mail), Longchamp is selling on-line a range of bespoke bags made of canvas, while Gucci offers customization of leather goods with the initials of the buyer in gold instead of 2G pattern as well as a collection of sneakers exclusively available for online sale on the Ipad. (more…)

Burberry’s 1.000.000 followers on Twitter celebration

The @Burberry account, which now has 1,039,720 followers and rising, has bought the #thanksamillion promoted tweet and is replying to the many congratulations it is receiving today directly.

It is a great idea that is really well executed and they are turning the thank you notes around very quickly.  Brand Republic sent its a  few minutes later we got this back.

This all underscores the change at Burberry, which ten years ago was a brand in trouble. Today the story is very different. Much of the innovation has come under Christopher Bailey, the brand’s chief creative officer.

Bailey has said that he believes the company is now “as much a media-content company as a design company”. That shows a sharp recognition of what it means to be a modern brand and how success is as much in the places where it exists as its clothes.

This has led to a string of digital innovations. Notable among these has been Burberry’s Tweetwalk which saw it partner 

with Twitter to post backstage Twitpics of every look before they were sent down the runway.

This allowed the brand’s Twitter followers to see its runway looks in advance of fashonistas in the front row. A great little innovation.

It also allowed Mike Kus, the most-followed Instagram user in the UK, to take over its Instagram account during the Tweetwalk extending that democratisation of the fashion world a little further.

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PR Pret-a-Porter.

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