Lorre White, “The Luxury Guru” defines luxury as a “quality of life”, not simply amassing quantity “ It is an enlightened approach to living”.. Private jets to Perfume, Yoga to Yachts, Exotic car to Candle, Watches to Wines ….Lorre is the expert on all things luxury! Reaching the UHNW, Luxury Influencer Lorre White's blog ranked #3 Globally for Luxury Blogs in 2015 Brand Passion Report for Global Luxury Brands by NetBase & #1 of the blogs that reach the wealthy customer.
* A Luxury Expert on TV, Radio & Web - CNN.MONEY, ABC, NBC. FOX NATIONAL, and in magazines globally
* Wrote a monthly column in Portugal's #1 rated Luxury Magazine DNLife w/ over 1.2 million subscribers
* Only internationally recognized Luxury Media Personality.
* Has an extensive social media reach. Owns THE LUXURY CHANNEL Video podcasts on iTunes & Zune
* An international luxury marketing consultant for elite brands and owner of White Light Consulting
* This blog is read by the Ultra High Net Worth and the luxury brands trying to reach that demographic
* Lorre White is highly networked and connected in the world of luxury
* Contributes to business & Luxury magazines globally.
* A member of Who's Who In America for contribution to the American Luxury Market & as a Luxury Personality.
Lorre White is a member of several private invitatition only networks like A Small World, SQUA.RE, Total Prestige, Qube, eVelvet Rope, Diane Fey, LStyle, EuroCircle, Internations, Global Urbanities, Hampton undercover, and other.....
Luxury Marketing Advice
"If a luxury brand asks whether they should spend scarce funds on opening another store, launching a print advertising campaign, or investing in a great website and online advertising, the Internet wins every time as the fastest, cheapest, and most effective way to leverage a luxury brand in today's global marketplace". CEO Milton Pedraza, The Oct issue Wealth Report by the Luxury Index
Lorre shopping at the foot of the Spanish Steps in Rome
Travel
Lorre on her way to a party in Monaco
About the Luxury Channel
The Luxury Channel video podcasts offers sponsors a sophisticated web media reach for elite brands to reach a wealthy demographic world wide by a respected luxury expert. This allows these brands to benefit from the most powerful and fastest growing media source, the web. Americans use the internet to shop twice as much as the average individual. People spend more time on the web then in front of the TV. A recent study done by The Luxury Institute found that Luxury consumers were disappointed in the weakness of luxury brands to meet their on line needs. Luxury brands were slow to enter fearing affiliation with the mass marketers and an inability to supply “the luxury experience”. The purpose of The Luxury Channel is to bring a luxury venue to the web where elite brands can have an appropriate environment to share their product knowledge and services in a sophisticated global reach. By all the brands sharing one venue it saves companies millions of dollars by having to establish their own channel from scratch and creating and producing content and paying to market their channel against all the other thousands of luxury brand’s channels. Any commercial agency can create a product video for a company, but with The Luxury Guru you get the video and a way to distribute it internationally.
Sports
Lorre toasts US Basketball Olympic teammember Grant Hill at their gold medal awards ceremony afterparty
New York tops the list of must-visit places for a good reason. The city is a heady combination of 24-hour commerce, fascinating history and cutting-edge culture. Sunny and hot through to October, the city then turns into a winter wonderland by Christmas. Whenever you go, here’s our guide to a positive trip to the Big Apple.
Where to Stay
Our pick of New York’s many luxe hotel retreats is the Peninsula. Perfectly situated on Fifth Avenue and 55th Street in Midtown Manhattan, the 112-year-old institution is right in the heart of the city’s best shopping and entertainment district.
It’s within strolling distance of Central Park, the Rockefeller Center and Broadway, but if you’re all walked out, make use of the complimentary Mini Coopers the hotel provides to guests – ideal for a day trip out of Manhattan.
What to Do
Central Park is Manhattan’s iconic green centre, running down the length of the island. Impossible to miss, pick a few areas (like Strawberry Fields) to explore. The High Line is another outdoor must-visit, a public park built on a historic freight rail line it runs above the streets on Manhattan’s West Side. Take a stroll and enjoy the leafy, elevated views over the city, or grab a spot on one of the many viewpoints with a coffee and a book.
New York City is probably the most famous shopping destination in the world, with something out there for everyone. A must visit for any beauty fan is Kiehl’s flagship store, found in the East Village it’s on the site of its original apothecary that opened in 1851. The legendary New York department stores should also be on your list – pop along to Saks Fifth Avenue to discover a world of luxury fashion, including brand to trust Gabriela Hearst.
The world-class museums also make the city a haven for the culturally curious. MOMA is our favourite for iconic contemporary art, not to mention the stunning architecture and great people-watching too. Or make a trip to the Met’s Costume Institute to explore its incredible collection of historical fashion.
Where to Eat
NYC’s always-evolving food scene is notoriously innovative. For a quick, yet healthy meal during a busy day head to Eat by Chloe for vegan fast food – the Guac Burger is a favourite of ManRepeller!
For an evening treat, Blue Hill Farm has become renowned for its farm-to-table approach to fine dining. Choose the “Farmer’s Feast” for a six-course tasting menu that is inspired by the week’s harvest from local farms in New York and neighbouring Massachusetts.
What to Wear
For a day of urban exploring, pair a statement tee with a cute miniskirt – a practical outfit that has just the right amount of edge. Throw on a classic biker jacket and choose a stylish backpack for carrying those everyday essentials.
Come evening, opt for paper-bag waist trousers and a sleeveless blouse for a fashion-forward outfit that is sure to turn heads. Balance out this tailored look with a feminine heeled sandal and you’re ready for a night of cocktails and fine dining in the city that never sleeps.
For several months, FENDI‘s Palazzo della Civilita Italiana has been hosting an exhibition of works by the Italian artist Giuseppe Penone. But the Palazzo is not a gallery. Since 2015, it has been the headquarters of Fendi, the fashion brand. Fendi chief executive Pietro Beccari says artists must be free to work “without interference. Once you make the choice to choose one artist rather than the other, you have to go for it, otherwise you lose authenticity.”It is therefore vital, he adds, for companies to choose carefully artists who are “close to your sensibility” and the values of the brand.
Audemars Piguet has backed a series of artists over recent years and runs the annual Audemars Piguet Art Commission which includes a major annual commission each year
LVMH opened the Frank Gehry-designed Fondation Louis Vuitton in Paris in 2014. LVMH says the move “epitomises the support for art, culture and heritage [the group] has been providing for nearly 25 years”.
The Rolls-Royce Art Programme, which has been running for several years, includes a series of events as well as commissions of new works. Artists who have participated include Yang Fudong, Jose Parla, Sudarshan Shetty, Angela Bulloch and Isaac Julien. ”In this kind of segment you are not selling metal, you are selling dreams,” says Torsten Muller-Otvos, chief executive officer of Rolls-Royce Motor Cars.
Peter York, who has been an adviser to many luxury enterprises, says that businesses in this sector have little choice but to follow, in some form or another, the approach being taken by Fendi, Rolls-Royce and others. He says: “The more that your brand is sold in luxury malls in China, the more concerned you are to reassure people who care about these things that you’re ‘the real thing’, that you’re associated with higher-level endeavours.”
But there are dangers, Mr York warns. Entering into collaborations with artists, or backing other cultural ventures, must be approached with the same care and thought as that applied to a new product or range. Be seen to be trying too hard, adds Mr York, and brands risk being seen as insecure, particularly by sophisticated customers.
Tom Chapman has experienced the evolution of fashion retail first-hand. He and his wife, Ruth, opened the London-based fashion retailer MatchesFashion.com, now a major player in luxury e-commerce, three decades ago.
In 2016, MatchesFashion.com saw a 61 percent revenue growth year-over-year, reaching $265 million. (Farfetch did $800 million in gross sales, and Yoox Net-a-Porter Group pulled in $2.1 billion.) In August, MatchesFashion.com will launch a partnership with E-Contenta, an AI content distribution platform it discovered through the New York Fashion Tech Lab that will enable the personalization of its vast content. By the end of the year, it is expected to open 5 Carlos Place, a physical retail space in London’s Mayfair neighborhood.
Chapman spoke to Glossy.co about what’s driving MatchesFashion.com’s growth, why he still stands by brick-and-mortar and why he believes luxury fashion and Amazon are no match.
Surviving 30 years is a huge accomplishment in this industry. What’s your secret? We’ve embraced change. With e-commerce, everything has accelerated in the last five or six years — and it’s only accelerating more. We consistently think about the three Cs: customers, content and curation. When you consider what the customer wants, you win — and content and curation are a big part of that. Customers want to have an experience. They need to find something new, they need to find something engaging — and storytelling needs to come into play.
You’re certainly doing a lot of storytelling. Our content team is probably larger than most magazines; we’ve got over 60 people. All of those content stories, we’re creating; all of that product, we’re shooting. We’re really thinking about the journey of the customer on the site, and maintaining a seamless engagement of content and commerce. We have data analytics teams in a number of departments — there are more engineers than there are buyers — so we can measure each piece of content’s value, not just from a background and positioning perspective, but also its return on investment.”
MatchesFashion.com is often mentioned in stories about Farfetch and Net-a-Porter. Would you call them your biggest competitors? We’re in a high-growth industry, and if you’re not growing at over 25 percent a year, you’re really doing a shit job. The ones that are good are growing — and we’re only happy about others’ successes, because that means the industry is going in the right direction. We all have a point of difference: We don’t think about trends, we think more about where the customer goes in that product and what they want in their lives. And we’re really focused on the customer, not what the trade press is going to say or doing anything for the sake of a big splash.
Last year, 49 percent of your online sales were on mobile. Is a move to mobile a goal? No. Some people are saying the future is mobile-only. It’s not. We say it’s customer touch points only. We have a single view of our customer: We know how they’ve interacted, we know if they’ve shopped online, if they have visited a store. The more touch points, the more retention, average spend, repeat purchases — especially if one of the points is a physical experience.
What are you working on in terms of physical retail? Later this year, we’re opening a new version of retail: 5 Carlos Place. We’ll change the whole floor every week or two, and we’ll have calendar events all around that retail concept. One week, it will be about vacation. The next week, it will be about workwear — and we’ll get speakers involved to talk to that. One week, maybe we won’t have any clothes in there, and we’ll just bring in artists and do an installation. The store will also have private shopping, where you can take a friend or have breakfast — all in one building that feels like a private home. We don’t use technology for technology’s sake. Technology shouldn’t be apparent, and it should make your journey easier. If you go into Carlos Place and you’ve got your app, it will send a notification to say, “Mrs. Jones is in the building.” A salesperson can then connect with you. Beacon technology will add the product you’re looking at to your wish list to look at later. If you want something that’s not available in the store your size, we can get it to you in 90 minutes.
A former interviewee argued that nobody is worried about Amazon like Americans. Would you agree? I genuinely have no concern, no interest at all in what they do in fashion. I’m sure Amazon will continue building an amazing business; I just don’t think it has the magic that our type of business really demands and the customer demands. There needs to be something that makes it feel really special. We take an enormous amount of care and detail when we send an order out: It’s in a marble box, with ribbon, with tissue, with a hand-written note from the person who packed the parcel. No business like Amazon could ever look at that and say it’s practical, but it’s about relationships. It’s about an experience. You won’t see Balenciaga on Amazon. The minute that happens, Balenciaga is dead. Brands are very, very careful about their presentation, the way they’re seen. Brands want growth and longevity, and putting yourself in a position like that doesn’t make sense.
The luxury conglomerate's growth trend continues at an impressive pace, thanks to sales increases in nearly every region and from more brands than powerhouses Gucci and Saint Laurent.
Anna Della Russo outside Gucci | Photo: Hugo Lee
PARIS, France — French luxury group Kering delivered a forecast-beating rise in first-half operating profit on Thursday reflecting a continued revival at its biggest brand, Italy's Gucci, and a strong showing by fashion house Yves Saint Laurent.
Kering, whose good results were further evidence of a recovery in the wider luxury sector, said its "excellent" first-half performance raised confidence in its capacity to achieve another year of sales growth and improved operating performance.
Second quarter comparable sales at Gucci, which makes over 60 percent of Kering's profit and whose products are endorsed by celebrities such as singer Rihanna, rose 39.3 percent, beating analysts' expectations of 32 percent growth. This compared with already spectacular growth of 48.3 percent achieved in the first quarter.
Kering's Yves Saint Laurent posted comparable sales growth of 23.7 percent, against average expectations of 25 percent growth, while sales at Bottega Veneta rose 1.7 percent.
The company said the strong performance was made possible by growth in nearly every region including in North America, where the luxury market remains soft. At Kering’s remaining luxury goods brands — which include Stella McCartney and Alexander McQueen — combined sales were up 10 percent, with business “accelerating” at Balenciaga, which has benefited from the arrival of creative director Demna Gvasalia in October 2015, where he has received an “outstanding reception,” according to the company.
“Our multi-brand model once again demonstrated its validity,” group managing director Jean-François Palus said on Thursday. “Virtually all other houses and brands are growing — about 45 percent of incremental group revenues were not generated by Gucci.”
First-half recurring operating profit rose 57.1 percent to £1.274 billion (€1.14 billion), with operating margin at Gucci reaching a record 32 percent of sales. Analysts polled by Inquiry Financial for Reuters eyed operating profit of £1.232 billion.
It has been a good year thus far for most makers of leather goods. While hard luxury has struggled — in particular, watches, which remain challenged by the “longest downturn on record” for the category — companies whose main business is handbags and shoes are thriving, with consulting firm Bain & Company projecting that sales of personal luxury goods will increase 2 to 4 percent overall in 2017 to €254-€259 billion ($296-$302 billion at current exchange).
By Dominique Vidalon, with additional reporting from Lauren Sherman; Editing by Andrew Callus.
France was the world’s sixth largest economy in US$ terms in 2016 and its luxury goods market currently stands at number four in the world reaching just over US$22 billion behind the US, China and Japan. Although it avoided recession in the 2011-2016 period, its economic performance was anaemic and its luxury market is facing a number of headwinds.
From November 2015 France was plagued by terrorist attacks, with incidents in Paris, Nice and other parts of the country shaking consumer confidence and deterring international visitor. The social context was also tense, due to ongoing strikes against the new labour law and other industrial action taking place. Domestic spending remained timid, but maintained sales in some key categories, such as designer apparel and footwear (ready-to-wear) and fine wines/champagne and spirits, and consequently held up overall value sales.
France remains a luxury shopping destination
Luxury shopping continues to be a major driver for many wealthy tourists worldwide, with numerous destinations considered a “luxury shopping paradise”. France, with its capitals venerable position as one of the world’s leading fashion districts – is clearly no exception the rule. France currently stands at no 2 in the world in terms of actual international spending on luxury goods. With an international luxury spending value share of 24% in 2016 France also ranks as one of the highest in the world in terms of weight thanks to international shopping
This number is even more impressive if we look our latest data for inbound tourists. Indeed France recorded poor tourism flows in the last year thanks to global economic slowdown, fluctuating exchange rates, political instability and the heightened fear of terrorist attacks. In turn this has had a negative impact on growth rates in luxury shopping with spending from tourists down by -4% on 2015.
Despite this slight slowdown in both tourism and tourist spend the market and luxury brands themselves remain optimistic: let’s not forget that according to our latest travel data France welcomed nearly 85 million tourists in last year – this is more than any other country in the whole world. Of this 85 million almost a third of these trips were to Paris with luxury shopping and gastronomy being at the top of their to-do list. China already makes up at least 2% of trips and falls into France’s the top 10
Moving forward France will remain a popular destination for wealthy tourist. The outlook is particularly positive for the Chinese tourist with the number of trips by Chinese tourists predicted to reach over 2.6 million by 2020. Whilst this will undoubtedly have a positive impact on luxury spending – we also expect to see luxury hotels reaping some of the benefits with growth in sales remaining stable in the 5 years.
Despite its enormous growth potential for digital, France somewhat lags behind its regional counterparts in this area. To put this in regional context the penetration of luxury goods sold through digital currently stands at about 8% versus 15% for the UK. Much of this is owing the ingrained aspirational or traditional nature of shopping for luxury in store but also France falls far behind its neighbouring countries when it comes to logistics meaning that online shopping is ultimately very inconvenient.
Whilst online sales of luxury goods benefited from the successful activity of pure online players such as Net-a-Porter a number of luxury brands remain absent in this area believing that the real experience of shopping should take place in store and is a key advantage to attract wealthy buyers.
But whilst there may be some challenges to overcome, this disparity opens up many opportunities to benefit from future investment in digital technology
France’s ageing demographic profile is reflected in the distribution of gross income in the country: As a share of persons with an annual gross income over US$150,000 (ie the top income band), the age group 65+ is predominant. This pattern is expected to accentuate over the long term (due to the country’s ageing population), which will continue to support demand for luxury products bur also creates challenges for the market.
In terms of its middleclass household, by 2030, France will boast 9.3 million middle class households (up from 8.3 million in 2014) and a median income of US$60,051 per household. Whilst absolute growth has increased there is expected to be a slight proportional contraction. Indeed, ever since the global financial crisis of 2008-2009, France’s middle class has come under pressure from climbing unemployment, sluggish economic growth, the rising cost of living and cutbacks to services. All this has contributed to changing the French middle-class spending behavior that luxury businesses ought to note. To address changes in middle class consumer behavior successfully, luxury goods companies will need to innovate, including a focus on value and an increased interest in health and wellness
In terms of its wealthiest consumers overall, according to our latest research the total number of HNWIs in Western Europe stands 10 million and France currently makes up almost a third of this population and it is predicted that this number will increase by 221% outpacing regional growth and adding over four million individuals to the high-end luxury mix by 2030. To put this in global context, France is now ranked fourth in the world in its number of HNWI ahead of Germany and China.
LVMH chairman Bernard Arnault first floated the possibility of a factory in the the Carolinas or Texas during a January visit to New York to meet with Donald Trump.
Source: Shutterstock
PARIS, France — Louis Vuitton is working to open a factory in the US as demand for its iconic canvas-and-leather handbags continues to rise.
The LVMH-owned brand is also likely to add an additional production site in France, and could expand its workshop in Portugal, chief executive officer Michael Burke said.
LVMH chairman Bernard Arnault first floated the possibility of a Louis Vuitton factory in the the Carolinas or Texas during a January visit to New York to meet with then President-elect Donald Trump.
"It’s being negotiated," Burke told Bloomberg on the margins of Louis Vuitton’s show during Paris Men’s Fashion Week, declining to give more details.
Global demand for luxury goods is bouncing back faster than expected after economic uncertainty in China and a terror-related slump in European sales had stymied growth for high-end brands during several years. LVMH, which makes luxury goods ranging from Hublot watches to Veuve Clicquot champagne, sailed past estimates in the first quarter to report sales up 15 percent over the previous year.
Since the 2013 arrival of artistic director Nicolas Ghesquiere, leather goods-maker Louis Vuitton has reinforced its image as the brand of travel with elaborate womenswear shows at architectural landmarks in cities as far-flung as Palm Springs, Rio de Janeiro, and Kyoto.
At the same time, menswear director Kim Jones has tapped into a younger generation of luxury shoppers with initiatives including a collection with the New York streetwear brand Supreme, which will hit stores next month. With 17.7 million followers, Louis Vuitton is the second-most followed luxury label on Instagram, trailing only Chanel.
Ready-to-wear fashion is currently the fastest-growing category for Louis Vuitton, Burke said. While the company envisions ramping up production of handbags like the €895 Neverfull tote, production of the fall menswear collection — including the Supreme and LV-branded gear — are being restricted to protect the brand’s exclusive image.
Shipments will meet only a "fraction" of demand, Burke said. "We capped orders. It’s the very definition of luxury to have an exclusive product."
By Robert Williams; editors: Eric Pfanner, Mark Deen.
What is Bespoke? Does the term Bespoke encompass everything custom-made? Acclaimed luxury expert and consultant, Lorre White, answers all these and more....
The term Bespoke dates back to the 17th century. In those days tailors kept full lengths of clothes in their ateliers. When a customer chose a certain measurement of material as per requirement it was said to have “been spoken for”. Thus when a tailor who makes clothes individually to a client’s specific personal requirements, it is known as bespoke.
Over the years, especially the last few decades, bespoke has been used to describe services and products that are custom-made or to client specifications. Dilution of the term and what it stood for is but inevitable with bespoke being used rather loosely in many contexts. So what then is bespoke? How does one differentiate bespoke from made-to-masure or custom-made? We turned to none other than the Guru of Luxury, as she is popularly known, Lorre White to explain the concept of Bespoke.
White is an internationally acclaimed consultant of luxury with her clients being Ultra High Net Worth (UNHW) individuals. Her work as a renowned luxury marketing consultant at the company she owns White Light Consulting (www. whitelightconsulting.net) has made her a highly trusted authority in the world of luxury. Her expertise in the luxury arena encompasses a plethora of subjects - from travel to fashion as well as understanding the luxury consumer’s requirements. She has organised elite events, started the NBA airline, spearheaded global marketing for NetJets/Marquis Jets BBJ programs and worked in a diverse range of companies that catered to the luxury consumer. A popular media personality, White’s luxury news blog, www.LuxGuru.Typepad.com, features topics that she regularly talks about on TV and online shows.
In this thought-provoking interview, Lorre White shares her views on bespoke, how the concept emerged and what the term means in today’s world.
As the guru of luxury, how would you describe the term luxury especially when today it seems to be used rather loosely? Luxury is the best of any art form, and like any art, luxury is defined by its ability to evoke an emotion - like any great masterpiece, quality is inherent. Luxury comes in every category. It is something that separates itself from the others by uniqueness and creating pleasure. Not all luxuries have an expensive price tag, but often the rareness, the increased time to produce and the more expensive components do drive price. The fastest growing luxury segment is the one that supplies an emotional component, experiencing life to its fullest. Luxury supplies a very special opportunity to experience something new. It is often educational and can be shared with friends and loved ones. The Robin Leech 80s excessive decadence, disrespectful wastefulness of resources, and gaudy gluttony is gone. It is now an enlightened approach to living. It is about creating last memories. Don’t just exist… Live! Luxury is what we do above mere survival; it is the Art of Living.
What does the term bespoke entail? What can one expect from a bespoke experience? People tend to get bespoke mixed up with made-to measure. The word bespoke is a British term that means "spoken for". There are some that say that the term actually started in the footwear business and became popularised through custom tailoring in England, where lengths of cloths were said to be “spoken for” or “bespoken” by another customer. This art arises from Savile Row in the UK and is the most traditional way a suit is made. Many words are injured in the process of marketing to the public. "Bespoke" like the word "Luxury" and "Haute Couture", just to name a few, often get misused in mass marketing in an attempt to fool consumers that are not accustomed to the terms, into thinking that they are getting something much better. Mass marketing is very different than Luxury marketing. There are now even specific Luxury MBA courses because they are almost the opposite of each other.
Despite the common misuse of the terms, here are the technical differences in the garment business:
1) PATTERN-MAKING: A made-to-measure (MTM) service provider takes these patterns and modifies them if your measurements are outside the range of standardised sizing. The mastertailor / house cutter will modify standardized patterns to take your body shape differences into account, like jacket length and shoulder width. The Bespoke process starts with a new pattern (not just MTM modified) created for each individual wearer. This allows for a more exact fit. It is more complicated to achieve this and includes the december 2013 19 slope of the shoulder, the arch of the back, etc).
2) FABRIC SELECTION: MTM probably will offer a couple of mills. There is no standardisation to the quantity of mills. To be clear, I am not speaking about fabric selection. The amount of mills is important for selection, price and quality range. Bespoke would have a library of fabrics and have atleast 10 mills and likely more. The customer is probably even offered option to commission a unique dye lot of fabric. This last option does come at some considerable expense.
3) MULTIPLE FITTINGS: With MTM there is usually only two fittings. An initial fitting to take measurements and draft a design, then a final fitting after it’s fully created, but none during the creation of the garment. Depending on measurement accuracy / the preferences of the customer, there might be alterations to the final product, which might require a third fitting. Achieving a bespoke fit requires multiple fittings during creation of the garment. Here’s where Bespoke clears MTM, and why some will argue that it’s worth the premium. First is the skeleton baste fitting, second the forward fitting, third the fin bar fin fitting, all being done at different stages of tailoring. I’ve heard of some bespoke shops doing 5+ mid-fittings. These fittings do more than just verify the original measurements were accurate in the beginning – talented tailors build on top each fitting, achieving a more precise fit along the way.
4) TAILOR VS. SALES CLERK : In MTM the customer is usually measured by a sales associate and the level of training varies enormously. With a Bespoke purchase, the customer will meet only with the person constructing the garment. Having first hand contact with the client ensures not only a much greater tailoring skill, but also a clear understanding of what the consumer wants.
5) DESIGN / CUSTOMISATIONS AVAILABLE: MTM is more standardised. The maker will have a list of options that are available cuffs, pleats, buttons on jacket, pocket style.
For a Bespoke garment, the sky's the limit regardless of difficulty or quantity of special details the customer wants From its initial advent in the world of tailoring, bespoke today is embraced with equal fervour by technology, footwear, automobiles...
Does everyone who offer the service understand and put to practice ‘bespoke’? Bespoke means a clothing item made to a buyer's specification. While the term historically is applied to only men's tailored clothing, it now generally includes other apparel, implying measurement and fitting. The term bespoke in fashion was originally reserved for men's clothing, analogous to women's "haute couture". Since the word Bespoke encompasses technical aspects of garment production, when used by other industries it cannot truly match the definition, but it is used more in the "spirit of the definition" than in the technical sense. For most non-clothing items it has been adapted by marketers to mean "built to order" or "Custom Made". "Custom Made" is a very forgiving term that can be used to describe anything that has been tweaked to fit you based on your measurements and style options. When this term is used, it can mean a variety of things, or a combination of methods. The term 'bespoke applications' can refer to custom software built by a company for its own use by a department other than the IT department. When speaking of Bespoke regarding luxury cars many brands like Rolls-Royce offer Semi-precious stone inlays, embroidery, customised paint and intricate designs on cars. This is particularly popular in the Middle East, one of the largest markets for luxury automobiles. They have seen bespoke services soar as discerning customers look for ways to distinguish themselves and have something uniquely theirs.
What should a person expect when being offered a bespoke service/product/experience? Despite the term being technically misused, what all marketers are trying to convey, is that the product and the surrounding service will be stupendous, and specifically created just for you; a one of a kind piece to meet your individualized wants, or "custom made". It (what over it is, a jet, a yacht, a car, a private banker) will represent the best of quality, style, personal fit, and highest service by superiorly trained and skilled artisans or professionals. It is a term adapted to represent the utmost in luxury. But obviously, just because the marketing uses the word Bespoke, it does not make it so. This is why elite brands with long histories of service, are better trusted than newcomers to the market. The luxury brands have had to prove themselves consistently over time and when a customer is shelling out very substantial sums for the "Bespoke experience", they want to make sure they actually get what they paid for.
The United States’ current political and social tensions have opened opportunities for brands that support consumer aspirations of balance, health and connections, causing challenges to arise for traditional luxury players.
According to a new report from Sustainable Brands, consumers in the United States are redefining what it means to “live the good life” by moving away from material goods and consumption and more toward life fulfillment. As a result, Sustainable Brands’ “Enabling the Good Life Report” with Harris Poll found that 80 percent of consumers would be loyal to a brand if it helped them to achieve and live their personal values.
“I'm not sure it’s any different for the luxury industry than for brands in any other category," said KoAnn Vikoren Skrzyniarz, founder/CEO of Sustainable Life Media, producers of Sustainable Brands, San Francisco. "I don't expect our desire for quality, unique design or craftsmanship will disappear.
"Brands are being less relevant to companies and loyalty is showing erosion," she said. "We’re seeing that a very significant portion of U.S. consumers would not care if 70 percent of the brands they buy disappeared.
"Buying bling just for status is definitely at risk, but on the flip side there is opportunity for redefining brand value propositions for luxury brands if they find a way to embed some kind of authentic, brand relevant way to help customers build more balance, simplicity into their lives or help them feel more connected to their community or the environment. If they don't they are likely to become irrelevant."
Consumers in the U.S. have shifted sentiment dramatically recently due to the country’s divisive political landscape, global conflicts and societal issues at home. These factors have contributed to the new U.S. zeitgeist across geographies, demographics, political spectrum and personal belief systems.
As consumer outlook has changed, the definition of what constitutes a good life has been redefined.
Per the report, 71 percent of respondents said living the good life is very different than what defined the life of their parents.
Today there is an increasing focus and emphasis on simplicity, health, people and looking beyond oneself, rather than material goods. Whereas a high-end car or large home, for example, were once signifiers of success and wealth, today’s consumers would rather live simply and incorporate wellness into their everyday lives.
As the report suggests, traditional symbols of the “good life,” such as wealth and the access and opportunity it once provided, are shifting. This shift has lead to two defining themes that categorize a good life: meaningful connections and balanced simplicity.
Seventy-six percent of respondents believe that a good life is defined by having meaningful connections with family and the larger community. This also includes helping those in need and supporting environmental causes.
The second theme, balanced simplicity, is defined by good health and simple living. Sixty-six percent of respondents explained that having a balanced life is important and have set out to reduce complexity and embrace healthy behaviors to achieve happiness.
Although 78 percent of Americans surveyed believe that money cannot buy happiness, 62 percent report that income is an obstacle.
When asked about how brands contribute to achieving the good life, 51 percent of respondents feel that companies care about helping consumers achieve their definition.
Three quarters of respondents also feel that if consumers demanded products and services that align with the today’s definition of the good life, brands would actively respond accordingly.
But, the majority of U.S. consumers, 65 percent, said that products and services offered do not help achieve their version of the good life. Even more, few see a logical path between a brand and forging a connection with other individuals, societal issues and the community.
Sectors of success
Food and technology brands have made strides to connect their businesses with consumers, issues and the community, at a rate of 48 percent and 45 percent, respectively.
The travel and leisure sector has ensured that its properties and on-site programs help guests obtain their good life goals. Forty percent of respondents believe that the travel and leisure sector has delivered.
Four Seasons Hotels & Resorts, for example, is celebrating Global Wellness Day around the world at many of its international locations this June.
Global Wellness Day on June 10 is dedicated to physical and emotional health and is celebrated around the world as a time to focus on self-care. Four Seasons is taking this opportunity to lavish its customers with health and wellness events led by experts in the field.
Image courtesy of Four Seasons
These events span from workout sessions, nutritional lessons, guided meditations and many other classes and events dedicated to helping customers keep their bodies and minds in top shape (see story).
In comparison, fashion is said to only deliver on helping achieve the good life 25 percent of the time.
Increasingly, fashion retailers are taking a holistic approach to wellness through in-store initiatives.
Department store chain Saks Fifth Avenue, for instance, has added more than 1,200 fitness classes to available in-store amenities at its New York flagship as wellness takes hold of luxury retail.
Martone Cycling shop within Saks' The Wellery
Located on the flagship’s second floor, The Wellery concept shop is a first-of-its-kind space that offers Saks consumers immersive experiences dedicated to wellness. Millennial consumers, a segment retailers have struggled to capture, are deeply invested in self care resulting in a number of recent launches geared toward health and wellness (see story).
To increase standing among consumers, Sustainable Brands recommends brands work on deeper engagement practices to better understand target demographics and to reimagine and create products and services that matter within the parameters of the new definition of the good life.
"There’s a risk for anyone who tries to bolt on a purpose that is not really meaningful for the brand and aligned," Sustainable Brands' Ms. Vikoren Skrzyniarz said.
"We believe that cause-marketing that is arm length from the core brand is becoming more suspect," she said. "People see it as a marketing ploy. It has to be relevant.
"People are getting tired of accumulating things -- play on and remind people of that. Buy fewer, higher-quality things that honor craftsmanship and the craftsmen, that’s very on trend.”
Hermes is hiring workers and investing in French production to meet surging demand for handbags in Asia, boosting the economy as presidential elections highlight the country’s struggle to create jobs.
The Paris-based luxury-goods company is expanding its network of domestic workshops that make bags like the Kelly and Birkin, it said Thursday in reporting quarterly sales that beat estimates. For Hermes, a “made in France” label is an intrinsic part of the appeal of its handbags, which are coveted in Asia and elsewhere as an emblem of French chic.
Hermes, which makes about 85 of its products in France, plans to increase leather-goods output by 8 percent and to hire 250 workers in the country this year. The company said it’s investing in a third workshop in the Franche-Comte region, bringing the total number of domestic leather production sites to 15. Overall, Hermes had 7,881 domestic employees in 2016, or about 60 percent of its total
Hermes last year achieved productivity increases of 15 percent, and it’s targeting 8 percent for 2017. The company needs those kind of gains to meet demand for its handbags, silk ties and other goods in Asia and elsewhere.
Hermès and LVMH announcing record profits for 2016 suggests the French family businesses are resuscitating the moribund $1.1 trillion global luxury market despite ongoing political and economic uncertainty.
Hermès Group, the French high fashion clothing and accessories manufacturer and retailer started its 180th anniversary in 2017 on a high note. The group’s consolidated revenues for 2016 passed the €5 billion ($5.4 billion) mark to reach €5 billion ($5.9 billion) up 7.5% at current exchange rates and 7.4% at constant exchange rates, the supervisory board heard.
Recurring operating income shot up 10% at Hermès, which amounted to €1.7 billion ($1.8 billion) or “an all-time high” of 32.6% of sales. Net profit increased 13% to reach €1.1 billion ($1.2 billion).
Leather goods and saddlery products confirmed their role as the mainstay of the group with “remarkable” 14% growth, the company said. Growth was due to the success of the collections and the diversity of models, particularly the Constance, Halzan and Lindy bags alongside the Birkin (pictured) and Kelly, named in honour of the movie stars Jane Birkin and Grace Kelly.
“Otherwise, sales benefitted from a positive momentum at year end in certain sectors such as silk and the ready-to-wear and accessories division,” the group added.
Hermès said growth was driven in Japan (+9%) due to its selective distribution network, despite the strengthening of the Yen, and Asia excluding Japan (+7%) particularly with extensions of the Liat Towers and Takashimaya stores in Singapore and store openings in Macao, at Hong Kong Airport and in Chongqing in China. However, Hong Kong and Macao remained “challenging”.
The United States (+7%) achieved solid growth, in a “contrasting environment”, the group continued. The stores in Hawaii and Philadelphia were renovated and extended at the end of the year.
Europe (+8%) posted growth, despite the group vaguely alluding to “the impact of recent events”. The Bocca di Leone store in Rome was performing well and the home territory of France (+5%) displayed “solid growth.”
Hermès created 590 new jobs worldwide, two-thirds in France, taking the global workforce to 12,834 people including 7,881 in France.
The family businesses’ share price increased from a low of €395 ($429.08) on 8 February, the day of the company’s announcement, to climb steadily and peak at €437.45 ($475.06) on 27 March.
After a dispute with LVMH which ended in 2014, the sixth-generation descendants of founder Émile-Maurice Hermès continued to hold a majority stake and agreed not to sell their shares for 20 years, reported Forbes. The magazine ranked fifth-generation patriarch Nicolas Puech at 896th in its 2017 World’s Billionaires List with his net worth pegged at $2.3 billion.
LVMH (Louis Vuitton Moët Hennessy) also looked back at 2016 with satisfaction. The world’s leading luxury products group declared its revenue of €37.6 billion for the year in late January, an increase of 5% over 2015, itself a year of growth. Organic revenue growth was 6%.
The 30-year-old France-based multinational group of 70 resilient brands, including Givenchy, Dom Pérignon and Bulgari, said the American market “remains on a good track as does Europe” while “Asia, excluding Japan, continued its good momentum.”
Profit from recurring operations reached €7 billion in 2016, an increase of 6%, to which all business groups, apart from selective distribution, contributed.
Bernard Arnault (left), chairman and chief executive, said LVMH achieved an “excellent performance” in 2016 given geopolitical and economic instability.
“Continued innovation, entrepreneurial spirit and the quest for excellence: all Maisons continue to assert these core values while maintaining rigorous execution of their strategies on the ground,” Arnault said.
De Beers Group announced last week it had successfully concluded the purchase of LVMH’s 50% shareholding in De Beers Diamond Jewellers to take full ownership of the company. De Beers Diamond Jewellers’ retail network consists of 32 stores in 17 global consumer markets.
“This includes a growing business in greater China and with Chinese clients worldwide, an established presence in London and Paris, and a new flagship location in New York City,” the company, established in 1888, said.
The share market reacted fairly positively to the diamond divestment. LVMH share price had dipped to €198.70 ($215.85) on 21 March, the day of the announcement, then the price rallied to a peak of €201.95 ($219.33) two days later.
Commentators blame the luxury market slump on the decline in Chinese consumer spending and fewer tourists in the wake of European terrorist attacks plus the strong United States dollar and uncertainty around the 2016 election in the US, which was also the world's biggest personal luxury goods market.
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The United States (+7%) achieved solid growth, in a “contrasting environment”, the group continued. The stores in Hawaii and Philadelphia were renovated and extended at the end of the year.
Bernard Arnault (left), chairman and chief executive, said LVMH achieved an “excellent performance” in 2016 given geopolitical and economic instability.
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