Lorre White, The Guru of Luxury

Social-Enterprise Network Raises $750-Million

By Nicole Wallace

A group of foundations, social-venture funds, and international-development organizations has formed a new network to try to increase investment in and business assistance available to small and medium-sized businesses in developing countries.

The new Aspen Network of Development Entrepreneurs, or ANDE, which will be housed at the Aspen Institute, in Washington, has 35 member organizations and will collectively manage $750-million during the next five years, according to network organizers.

Among the founding organizations: Acumen Fund, E+Co, and Root Capital, nonprofit organizations that invest in for-profit businesses in developing countries that also provide social or environmental benefits.

In most developing countries, large companies are able to gain access to the capital they need to grow, and the microfinance movement has made loans available for very small businesses that usually only support one family.

ANDE’s members seek to increase the availability of capital in the so-called missing middle.

The formation of the new network was announced today at the 2009 Skoll World Forum on Social Entrepreneurship in Oxford, England.

Randall T. Kempner, executive director of the Aspen Network of Development Entrepreneurs, also announced the creation of a fund that will award $1-million in grants annually to increase innovation and collaboration within the network.

The money to start the fund was donated by the Bill & Melinda Gates Foundation, the Lemelson Foundation, and the Shell Foundation.

It is not a brand crisis but rather a management crisis that threatens the brand equity

Many corporate brands are being damaged or destroyed by the current economic crisis, but it is through no fault of the brands themselves.

Even strong brands that help support the reputations of corporations in difficult times can be overwhelmed by mismanagement or financial conditions beyond the ability of the brand to influence.

Take the Wachovia corporate brand, for example. The brand was growing and contributing every year to the value of the corporation. Due to some unwise acquisitions that hurt the financial fundamentals of the bank, it was forced to merge and, subsequently, lost its corporate identity. The brand held up while the bank behind it didn't. The result is the brand's being crushed in the wreck. With Merrill Lynch, the iconic image of the bull comes immediately to mind, but it wasn't stronger than the underlying financial fundamentals, and so it too went the way of the Dodo.

AIG, A Dead Brand Walking...

In contrast, AIG's brand has taken a pounding in the news, and its financials are equally weak as demonstrated by the multiple massive government bailouts. If the company is to survive what is both a financial and a brand crisis, it will need to do so under a different corporate name. AIG, which represents the very essence of a brand crisis, is a dead brand walking.

What follows are some observations from the CoreBrand study

#1 - The strongest corporate brands continue to grow despite the downturn.

The CoreBrand Power 100 corporate brands generate a higher contribution to market capitalization, which, based on the 2008 findings, averages 16.74%. This percentage has grown steadily and consistently in recent years, increasing from 15.03% in 2002.

#2 - The average corporate brand's contribution remains strong.

The CoreBrand 500 average corporate brand contributes between 5-7% of brand equity across all the companies in the index. The average varies slightly depending on economic conditions. In 2002 the average was 6.42%; it increased to 7.33% in 200,3 and increased again to 7.42% in 2004. Since that time it has declined to its current level of 5.98%, which remains within its normal range.

#3 - The dollar value of corporate brands is significant.

The average dollar value of the CoreBrand 100 corporate brands grew significantly from $7.18 billion in 2002 to a peak of $11.06 billion in 2006. Since that time, the dollar value has dropped significantly to $7.32 billion, which is still higher than in 2002. The average dollar value of the CoreBrand 500 company has increased from $1.49 billion, in 2002, to a peak of $2.67 billion in 2006. While it has now declined to $1.58 billion in 2008, this is still above the 2002 level.

#4 - Top corporate brands dominate the value available.

In 2006, CoreBrand 100 firms accounted for 86% of the total brand equity dollar value of the CoreBrand 500. In 2008, that number rose to 93% of the brand equity value. That means while total brand equity dollar value has declined, there appears to be an identifiable monetary leverage to being among the higher perceived brands.

The bottom line - corporate brands matter in a significant and measurable way. When managed over time, the contribution of the brand to market capitalization, with all its attendant benefits, is clearly demonstrable and valuable.

Methodology

Let's take a broader view of corporate brands. How have they been faring in the wildly gyrating capital markets? CoreBrand has, since 1990, conducted a quantitative research survey called the Corporate Branding Index® that tracks 1,200 companies across 49 industries. Every year 12,000 business leaders are interviewed about their familiarity with the companies in indexed. These leaders are also asked about the reputation, their perception of management, and the investment potential of the companies they are familiar with. Utilizing this data, along with regression models, we identify how much the corporate brand impacts the corporation's market capitalization. This index provides a platform to identity norms as to how brands work in good times and in bad.

Jim Gregory

CoreBrand

The really rich can loose half their net worth and still be really rich!

Super Rich Keep The Light Burning For Mega Mansions

Conde Nast folded home magazine Domino. Architectural Digest looks like a pamphlet. The home mortgage meltdown has meant aspirational consumers no longer have money to pay their mortgage let alone renovate their homes.

That said, the super rich seem to go on spending on their humble abodes, many getting inspiration for the hotels they stay in, including one Indian family that built the first mega-mansion skyscraper with bits of design from The Mandarin Oriental New York. We know our hotel suite stories in Elite Traveler have spurred many a renovation, and in fact, according to Prince & Associates, readers spend over $500,000 on renovating.

A recent Forbes.com piece spotlighted some of the private jet lifestyle on the ground:

"Low-key is a relative term among the super-rich. Computer mogul Michael Dell claims to live simply, yet built a 33,000-square-foot manse in Austin, Texas, in 1997. Called "the castle" by locals for its high walls and tight security, the home sits on a 20-acre spread a mere stone's throw from Dell headquarters.

"Oracle Chief Executive Larry Ellison, a hard-core Japanophile, blew an estimated $100 million building a 23-acre, 10-building Japanese-inspired imperial villa in Woodside, Calif.

"But it doesn't stop there. In recent years, he has spent an estimated $200 million snapping up a dozen commercial and residential properties in the ritzy beachside enclave of Malibu, Calif.

"In January, Russian-Israeli diamond magnate Lev Leviev bought the Palladio, an extravagant 17,000-square-foot manor outside London, for $65 million. (That works out to $3,823 per square foot, roughly twice the average in greater London.) The home includes a bullet-proof front door, gold-plated pool, indoor cinema and hair salon.

"It's nifty amenities like these that help drive up the costs of billionaire homes.

"The $124 million sticker price for steel magnate Lakshmi Mittal's 12-bedroom spread in London's posh Kensington neighborhood includes Turkish baths and garage space for 20 cars. (No circling the block for an empty spot on Sunday nights!)

"Visitors to Bill Gates' 66,000-square-foot compound in Medina, Wash, have the option of climbing 84 stairs to get to the ground floor--or riding the elevator.

"In addition to tennis courts and bowling alleys, Renco Group's Ira Rennert's 29-bedroom behemoth in the Hamptons, reportedly worth $170 million, boasts its own power plant.

"Of course, a handful of billionaires both live and work on their estates. Star Wars director George Lucas presides over Skywalker Ranch in Marin County, Calif. Skywalker Sound, a popular post-production outfit, is based on the 5,156-acre spread, which boasts its own fire brigade and draws the regular gaggle of tourists. (The ranch is not open to the public.) Star sightings are the norm. In 2000, Tom Hanks taped sound effects for Cast Away there; last year Sean Penn paid a visit to tweak Into the Wild. Lucas lives in the estate's main house, where he displays Hollywood memorabilia like Charlie Chaplin's cane, a prop whip used by Rudolph Valentino, and of course, Indiana Jones' Holy Grail.

"Across the country, Donald Trump occupies the penthouse triplex of his Manhattan-based TrumpTower. The $50 million apartment, a monument to marble and gold, underwent recent renovations following the 2006 birth of Trump's fifth child, this one by his third wife, Melania. Little Barron secured an entire floor for himself, with décor inspired by--who else?--Louis XIV. The Donald need only hop on the elevator to get to his offices, housed in the same skyscraper, making his perhaps the shortest commute of any billionaire".

From Doug Gollan

Elite Traveler

Im defense of those that fly private jets in this economy.

Recently, Robert Frank had a good piece in his WSJ blog outlining how the private jet industry is coming to the defense of its customers. Prince & Associates in January conducted for Elite Traveler some extensive research with private jet owners, and a couple of the key findings showed they aren't giving up their jets. They earned their money themselves, therefore they have no guilt about spending it. You only live once, right?

With that in mind, I wanted to share some of the comments back to Frank's blog that I thought were interesting:

1:05 pmMarch 9, 2009

Curt wrote:

Private aviation results in 1.2 million American jobs, and a yearly economic impact of over $150 Billion. It is one technology area where we still are a world-leader, with Gulfstream and Cessna being prime manufacturers; foreign jets largely use U.S. made engines and cockpit avionics. It's a net export industry.

All a jet does is provide incredibly efficient transportation; in the right hands, used the right way, it is an extremely powerful tool in the furtherance of a prosperous economy. Only viewing the excesses of improper use by failed companies is a myopic and distorted view of a tool that can really make business fly.

1:48 pmMarch 9, 2009

Dave Stone wrote:

How ironic and sad that our captains of industry and commerce allow themselves to be tarnished by the lowest elements of our country, our elected politicians. The politicians who preen and primp before the cameras at hearings they've called to beat up on the private sector, then quietly take off in their transportation we pay for. This will continue until people with guts stand up to these petty tyrants.

2:10 pmMarch 9, 2009

DRW wrote:

Coming from the user of the world's largest business jet - Air Force One - it is hard to take these comments seriously. And President Obama is considering the purchase of a fleet of Presidential helicopters. A fleet of about 30 helicopters! I can understand one helicopter to use and one backup. I can even understand another backup for a total of three. What is the justification for about 30 helicopters to carry the President?

2:11 pmMarch 9, 2009

Jack wrote:

The CEO that takes a private jet to his golf outing, got to spend multiple additional hours at work being productive. A CEO's time is much more expensive than the savings he would get from flying commercial. Plus for each private jet, multiple people are employed for that time period around 3 employees for 1 passenger. Commercial flights will give about 8 employees for 300 passengers. You do the math.

And who flies a private jet from Washington to California nearly every week? That would be the Speaker of the House, Nancy Pelosi. And that one is paid by TAX DOLLARS.

2:20 pmMarch 9, 2009

Kyle wrote:

As Curt wrote, don't just focus on the negative items you hear about. What you fail to hear about is how many private jets are used at the cost of the owners, to do volunteer flying for cancer patients, terminally ill patients and burn victims, to get them to various treatment facilities throughout the country that they would have never been able to get to had someone not offered the services of these planes. There are many times that these planes are used for good duties, productive business duties as well as those who sometimes use them in excess but that is the case for many things......

2:29 pmMarch 9, 2009

Peter wrote:

Why does Pelosi get a free pass on her private airplane at tax payer expense?

2:35 pmMarch 9, 2009

Tom wrote:

The new helicopter fleet was started by the Bush administration - and was to be delivered before the end of Bush's 2nd term. But, as is so common with government programs, it is past schedule and over budget.

2:41 pmMarch 9, 2009

Louis wrote:

There is absolutely nothing wrong with a private jet. What is wrong are people who abuse the privilege. If your company is doing poorly and you still insist on using the corporate jet instead of saving money, I would ask you why. If you are traveling to Washington to ask for money from the Federal government but you are traveling by private jet, I would ask you why. Private jets are a tool and some company executives travel by private jet for security purposes.

3:05 pmMarch 9, 2009

David wrote:

Nancy Pelosi has no problem using tax payers' money on a large private jet for her three day weekends in California. Please keep spending our children's money Nancy!

3:11 pmMarch 9, 2009

Dan wrote:

If the boards would govern the actions of executives correctly, and not just be rubber stamps lackeys of CEOs and their minions, we'd be ok here. Private companies should be able to do as they please, or at least as the board pleases. Either way, lots of sacred cows get shot during backlashes - even some that shouldn't. I just hope my company's CEO isn't wasting time with his shoes off in some security line at JFK. I need him to get out and line up some more financing for us!

3:19 pmMarch 9, 2009

Bill wrote:

I remember the glee that a fellow meditation retreatant expressed in 2003 when Mayor Daly bulldozed Meigs field. "I love seeing all those fat cats take a hit for a change," he said. I replied with a question: "What about the people who fuel those airplanes? How about the receptionist at the FBO? The ramp workers, the tower controllers, the mechanics, the sales staff, all the so-called little people who work there?" He was astonished. He said that never occurred to him. Indeed. Envy, animosity and opposition help no one. I work for fat cats. Almost everybody does. Am I ever envious? Sometimes. Do I want my fat cat to perish? Uh, that would be No.

3:41 pmMarch 9, 2009

Anonymous wrote:

As one of my employees so nicely put it "an hourly worker never wrote anyone a paycheck."

3:42 pmMarch 9, 2009

Net Jets Fan wrote:

There is a simple solution to all who don't want to fly commercial. Buy your own fractional interest in an airplane. Pay for it yourself, and no one will complain. When the shareholders or the taxpayers are footing the bill, then you are accountable to them. These new shares will stimulate the economy without the added taxpayer (or shareholder) expense.

4:15 pmMarch 9, 2009

private is the only way to travel wrote:

Unfortunately, I do not have the means to own my own jet, but I have flown private on numerous occasions and it is incredible. There is no way I would give up my private jet, the media and public be d*mned.

4:24 pmMarch 9, 2009

Valerian wrote:

Right on with this article. Obama should encourage CEO's to come to Washington in private jets (hopefully supersonic ones made in America) as long as they are not begging for bailout money. It's the incompetent banks that should come crashing down, not private jets. And bring back the guillotine - it worked for France.

4:43 pmMarch 9, 2009

down with the rich! wrote:

Congress and Obama is right. No one should ever fly private, EVER!! In fact, no one should FLY AT ALL. TAKE THE BUS!!! Greyhound is much cheaper and better for the environment than flying.

5:58 pmMarch 9, 2009

Jay wrote:

If your personal or corporate finances allow for the use of a private jet then as far as I'm concerned go mad. For a company struggling with finances or even to stay open that is another and corporate responsibility should be considered. The government and media have just hit on something that most people will never have access to and a milking it for all it's worth. As for companies who have cut back or eliminated private jets at their company for the public perception if nothing

7:03 pmMarch 9, 2009

ga peach wrote:

Gulfstream laying off workers, hurts me, it hurts my town, many businesses in my town depend on Gulfstream employees, (restaurants, grocery stores, banks, auto dealerships), We can complain about those rich CEO's and companies all we want, but truth be told they are the ones that stimulate economy, they buy the private jets we build, they build new homes, which employs a lot of workers to build. Just remember the next time you bash a company for owning nice homes, think about the people that built it, the stores that sold the material, when you bash someone for owning a private jet, think of me and my family and my town, and remember we benefit from building it.

8:12 pmMarch 9, 2009

FL Crush wrote:

It does not stop with the manufacturers. That industry employs pilots, private flight attendants, mechanics, catering companies, limo services, flight coordinators, dispatchers, FBO personnel, aircraft sales agencies, aircraft management firms and so on. I'm sure I'm leaving many out but you get the picture. 99% of these individuals will enjoy the luxury of their own private flight.

Believe me, the CEO's will survive if they cannot fly private anymore. But will the groups I mentioned be able to survive

12:16 amMarch 10, 2009

A pilot's Brother wrote:

As the brother of a Corporate Pilot I find the uproar about companies using corporate jets ridiculous. What difference does it make whether it is a corporate executive using a jet for transportation, which is most likely being paid for by the company who won or leases the aircraft or the president or any member of government flying all over the world at the expense of the taxpaying public. Which scenario has the most negative impact on our economy? Something to think about I'd say.

12:49 amMarch 10, 2009

MichaelKarvan wrote:

I (me) ruled in favor of flying private, my CEO (me) gave me the okay, my VP (me) gave me the green light, my board (me) ruled in favor, my accountant (me) said it is a great write off, and my conscious (me again) said it was stupid to listen to whiners griping about wealthy people flying private. I worked for my money, my cars, my homes, my shit and I do what I want with it and WTF, don't we as free and opportunistic people get to do what you want in this country... as long as you earn it you can have it. Now all you bitchers go fly a kite.

8:37 amMarch 10, 2009

Sonya Beckley wrote:

I'm glad someone is telling this side of the story. Business aviation is an important part of the economy and most companies that have them pay for them without government bailout money. Anyone at our company can be on the jet if there is a legitimate business reason for it. And we're all thankful for the workers who made them and maintain them to keep us safe.

6:01 pmMarch 10, 2009

jetguy wrote:

You will take my jet from my cold, dead hands!!!!

4:41 pmMarch 12, 2009

priscilla wrote:

There is nothing wrong w/ owning/operating a private jet as long as your palms are not turned upward looking for a handout/bailout.

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Lorre's fans can follow her on Twitter - "Lorre"

http://luxuryguru.big-itv.com/ Lorre White The American Media Personality

http://luxuryguru.big-itv.com/  Sample web educational luxury videos - The Luxury Guru fro wines, to fine furniture to baby gifts....... 

As Lorre’s fans know, both Lorre and her businesses have been active in working with shelter animals and other domestic family members.  We often bring you updates and important information about great charities and event that support the cause.

We saw this and thought we would share.  It resonates with all dog lovers. : George Graham Vest - Tribute to Dogs (c. 1855) after winning a case against a man who killed a dog

Gentlemen of the Jury: The best friend a man has in the world may turn against him and become his enemy. His son or daughter that he has reared with loving care may prove ungrateful. Those who are nearest and dearest to us, those whom we trust with our happiness and our good name may become traitors to their faith. The money that a man has, he may lose. It flies away from him, perhaps when he needs it most. A man's reputation may be sacrificed in a moment of ill-considered action. The people who are prone to fall on their knees to do us honor when success is with us, may be the first to throw the stone of malice when failure settles its cloud upon our heads.

The one absolutely unselfish friend that man can have in this selfish world, the one that never deserts him, the one that never proves ungrateful or treacherous is his dog. A man's dog stands by him in prosperity and in poverty, in health and in sickness. He will sleep on the cold ground, where the wintry winds blow and the snow drives fiercely, if only he may be near his master's side. He will kiss the hand that has no food to offer. He will lick the wounds and sores that come in encounters with the roughness of the world. He guards the sleep of his pauper master as if he were a prince. When all other friends desert, he remains. When riches take wings, and reputation falls to pieces, he is as constant in his love as the sun in its journey through the heavens.

If fortune drives the master forth, an outcast in the world, friendless and homeless, the faithful dog asks no higher privilege than that of accompanying him, to guard him against danger, to fight against his enemies. And when the last scene of all comes, and death takes his master in its embrace and his body is laid away in the cold ground, no matter if all other friends pursue their way, there by the graveside will the noble dog be found, his head between his paws, his eyes sad, but open in alert watchfulness, faithful and true even in death.

Many luxury Guru fans are fans because of their passion for all things luxury. Here one fan share a favorite restaurant he found while traveling....

One passionate food lovers recomendation:

Germany's Top Place for tasty, crusty DUCK with Potato DUMPLINGS and ROTKRAUT
near the Highway (Rosenheim-Chiemsee) Exit ACHENMUEHLE:
RESTAURANT ZUM ENTENWIRT: Tel+49 80328815
D-83122 Samerberg/Toerwang, www.entenwirt.de
A must if you are travelling on the Highway from Salzburg(Austria) to Munich(Germany) !

Peter & Nataly Kimmel

Still Waiting For Springtime In Retail

It's a glimmer of hope in a dim shopping environment: comparable sales are still falling

but at a slower pace than last month. According to the International Council of Shopping

Centers and Goldman Sachs, sales at stores open at least a year dropped 0.1 percent in

February, an improvement over the 1.6 percent tumble in January and better than

forecasts. Luxury retailers, however, continue to lead the hit parade of poor performance,

with same-store sales at Saks falling 26 percent, Neiman Marcus' down almost 21 percent

and Nordstrom's dropping better than 15 percent.

The Luxury of Wellness is the new platform for luxury growth.

THE LUXURY OF WELLNESS

Gregory Furman

Founder and CEO

The Luxury Marketing Council

 

The juggernaut of boomers - 76 million individuals - is approaching a very 'non-retiring' retirement. They have achieved and account for a level of affluence without precedent in U.S history.

Each year for the next 18 years 3.8 million boomers will cross the 'age 60 divide.' They are passionately interested in experiencing or owning the very best of the best. Hence, the rise of 'connoisseurship,' the hunger to know what constitutes the 'best of the best,' the obsession with VALUE, and seeing as important the ability to tell the story of their unique EXPERIENCE.

AND the powerful realization, as never before, that THE CLOCK IS TICKING.

Living healthy, living well, living intelligently, living longer and enjoying the fruits of oone's hard-earned labors are top priorities.

Hoteliers are redefining 'hotel.' Spas are redefining 'spa.' Retailers of every stripe are redefining 'retail.' Out-of-the-box collaborations and partnerships between like-minded luxury brands are approaching the most sophisticated consumers with offers, products, services that 'surprise and delight' and go well beyond 'the same old same old.'

After "The Luxury of Time" - "The Luxury of Wellness" may be the single most powerful driver in shaping the buying habits of the best, brightest and most affluent boomers and a new platform for luxury marketers to win greater revenues and share of wallet by re-thinking and re-imagineering the more traditional definitions of product, service and building "stickier" relationships with top customers