Bottega Veneta is the most profitable luxury brand in 2013

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.”

 

Better tomorrow,

PR Pret-a-Porter.

Understanding China’s social media

In terms of luxury, the retailers can use in China the following social media channels, according to CPP-Luxury:

Successful social media platforms:

WeChat – owned by Tencent, hosts over 200 million users and has allowed brands like Louis Vuitton and Coach to send product details daily. Chow Tai Fook uses the platform to send promotional text messages and rewards those who share or reply.

Meilishuo & Moguai – similar to Pinterest, where members make virtual collections of favorite items. Beauty brands like Lancome and Yue-Sai have been quick to see the value of these sorts of websites.

iQiyi – Baidu’s video-streaming service has become the second-largest site in China. Luxury auto brands like Audi and Buick are launching “storytelling” advertising campaigns here, including a test-drive market program and Buick sponsored TV programming – iQiyi is a great way for interactive advertising to revs its engines.

A year in review 2012 – luxury markets with the highest potential for growth, says CPP-Luxury

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.