AKLC COMMENT(S): Interesting read
By posting dire quarterly results one after the other, luxury brands show the extent of the unfolding economic crisis. Hermès, the sector bellwether, just posted this week a 42 percent decline of its sales in the second quarter of 2020. Burberry shares are down 40 percent over the past year. LVMH, the industry leader, announced its profits have fallen more than industry forecasts in the first half of the year. Richemont, the Swiss giant and owner of Cartier, IWC and Piaget, also suffers. Johan Rupert, its owner, announced in May that it would take at least three years to return to pre-coronavirus results. The slump occurs despite the relative resilience of sales in China
2. Burberry tests “social retail” in China’s tech capital
AKLC COMMENT(S): Burberry always aces the tech game in fashion. This is so cool
Burberry is hoping its first “social retail store” in China’s tech capital Shenzhen will help build stronger ties with some of its most important Asian customers: young tech-savvy Chinese customers.
The new store, launching today, is 5,800-square-foot, designed through a partnership with Chinese tech giant Tencent Technology, and will rely heavily on the WeChat mini-program to reward consumers for engaging with the brand, both online and in store.
Burberry, which was one of the first luxury brands to test Instagram and in-store iPads, is hoping to maintain its reputation as a digital frontrunner. In 10 separate spaces, the store combines Burberry’s recent tech experiments, like gaming, social media product drops and app-driven customer service. China is crucial to luxury’s recovery. As both early adopters of technology and comparatively younger luxury customers, it’s one of the few regions to return to physical shopping.
3. Prada sees recovery in Asia after tough H1, no excess inventory issues
The revenue fall to €938 million at constant exchange rates in the six months to June was steeper than a 35% decrease forecast by analysts, according to SmartEstimates provided by Refinitiv.
The Milan-based, Hong Kong-listed luxury group posted a net loss of €180 million, hit by store closures and a near-absence of tourism due to the Covid-19 crisis.
4. Rihanna launches inclusive, multitasking Fenty Skin line
AKLC COMMENT(S): Skincare is the new BIG thing now!
Fenty Beauty debuted in 2017 with an unprecedented 40 foundation shades across the skin spectrum with varying undertones — forcing other brands to step up and cater to more diverse skin tones, in what is now called “the Fenty effect.”
Now Rihanna wants to revolutionize skincare too.
5. Inside Nike’s latest bet to understand its customers
Nike is opening a massive retail store in Paris as it shifts towards a direct-to-consumer model with greater full-price sales.
Located on the Champs-Élysées in Paris, one of the world’s most expensive shopping streets, Nike’s House of Innovation is its “most critical” retail project yet, says Cathy Sparks, global vice president and general manager of Nike Direct stores. “It is Nike on the world’s biggest stages. It’s where we give a peek behind the curtain to our innovation. It is our biggest voice.”
6. UN’s The World Tourism Organisation urges countries to restart tourism, in its latest report
The World Tourism Organization (UNWTO), the leading international agency for responsible and sustainable tourism under the United Nations has released its latest report on the impact of Covid-19.
An insight into the global travel and hospitality businesses, the report reveals that the pandemic-led lockdown has caused an alarming 98 per cent fall in the numbers of international tourists in May versus the data in 2019. This means that the consequences and figures are more alarming than during the global economic crisis in 2009.
7. Resale Is Thriving In The Pandemic
AKLC COMMENT(S): Would you invest in pre-loved luxury?
Online consignment platforms and secondhand retailers had already been seeing promising signs in the last few years. According to thredUP’s 2020 Resale Report, resale grew 25 times faster than retail in 2019, with 62M women buying secondhand products in 2019, compared to 56M in 2018 and 44M in 2017. The pandemic did not slow this growth.
8. Luxury concierges, at-home services soothe lockdown woes of privileged few
AKLC COMMENT(S): The privileges a select few of us can enjoy 😉
Journeys on a private jet to foreign shores with special permissions from the civil aviation ministry, curated chef-cooked meals, renting a private theatre and spa services — nothing is impossible for a rather tidy sum of money.
9.Emirates To Cover Medical And Even Funeral Costs If A Passenger Gets Covid On Flight
AKLC COMMENT(S): OMG 😮
Airline services around the world have seen a massive cutback ever since coronavirus hit, and the business can understandably not sustain itself unless some new measures are taken. Now, one company has done just that.
Emirates will cover treatment and quarantine costs if a passenger catches Covid on their flights. They’ll even cover funeral costs if the person loses their life.
In a bid to boost passenger demand and incentivise people to fly again, the Dubai state-owned air carrier said it will cover medical expenses of up to EUR 150,000 (Rs 1.3 crore) and quarantine costs of EUR 100 (approximately Rs 8,800) per day for 14 days if a person contracts coronavirus during the trip.
10. Christiano Ronaldo’s Latest Car Purchase Is A Bugatti Centodieci
AKLC COMMENT(S): Amazing
Bugatti Centodieci is one of the most exclusive cars ever produced, and is also one of the most expensive cars in the world
Christiano Ronaldo is one of the best football players of all time, with fans all over the world. Italian football club Juventus recently scored its 36th Serie A victory, while it was Christiano’s second time winning the cup. To celebrate his win, he has gifted himself a luxury car, and not a simple one, mind you!
11. Capri beats sales estimates on e-tail surge, China strength
Shares of the company, which also makes the Michael Kors label, jumped 14% in early trading.
Capri said first-quarter sales at Versace and Jimmy Choo in Mainland China were roughly flat from a year earlier, joining European luxury goods makers LVMH and Kering in signalling a pick-up in demand in the country, where the effects of the Covid-19 pandemic were first felt.
12. A large number of shoppers will visit Mumbai malls soon; Gayatri Ruia of Palladium Mall
AKLC COMMENT(S): Only time will tell how many of us actually end up going to the malls!
Last week, the Ministry of Home Affairs announced that the malls in Maharashtra can operate form August 5. Yesterday, amidst heavy rains, several Mumbai malls reopened after a hiatus of almost 4 months. The Phoenix Mills Limited group that owns Palladium & High Street Phoenix (Lower Parel, Mumbai), Phoenix Marketcity (Kurla, Mumbai) and Phoenix Marketcity (Pune) too, opened their doors to the customers.
13. Ralph Lauren thinks people want to shop their Bitmoji
AKLC COMMENT(S): Interesting way of connecting with the Millennials & Gen- Z
In a first-of-its-kind partnership, Ralph Lauren and Snap have created 12 digital pieces designed to be worn on Bitmoji and bought in real life.
14. Why Digital Won’t Replace The Traditional Format Of Fashion Weeks
AKLC COMMENT(S): This just affirms that physical fashion shows can never be replaced by digital formats.
A lot of fashion experts believed that digital fashion weeks would replace in-person shows due to traveling restrictions, budget optimizations and the fact that digital shows are not restricted by venue capacity. But a recent attempt to host London Fashion Week digitally proved the opposite (registration required). So why didn’t it work as expected?
15. India’s air bubble is growing: Flights to Maldives may start next week
AKLC COMMENT(S): Some positive news
It may sound too good to be true, but it’s not. Flights to the Maldives are about to take off, now that India has wrapped this slice of paradise in an air bubble. The special travel bubble is part of a slew of measures formalised today to enhance trade and cooperation between the two countries. Business-y bits aside, the travel corridor includes travel for tourism “to sustain and promote the dynamic people-to-people ties between the two countries,” tweeted India’s Minister for External Affairs Dr S Jaishankar. In short, vacation time!
On Wednesday, the German automaker unveiled the next-generation of its MBUX infotainment system that will come with the 2021 S-Class, and it’s hard not to view it as a giant leap forward for the company. While physically streamlined compared to past versions, the new system will feature five high-definition screens, augmented reality capabilities and biometric security features.
16. ULTRA WEALTHY MAKING QUICK RETURN TO THESE EXOTIC DESTINATIONS, ACCORDING TO LUXURY INSIDER
AKLC COMMENT(S): Travel seems to be getting back on track
Instagram is to Gucci-wearing buccaneers what The Lonely Planet is to shoestring backpackers. Inspiring everything from jealousy to your next #vacay, the platform is fast becoming where you go to decide where to go (plus: what to do when you get there).
Whether you’re after the coolest Byron Bay waterfalls, the best Nasi Goreng in Bali or the quirkiest place to pose on the French Riviera, Instagram has your back.
17. Complete with food, champagne and virtual reality headsets – This Japanese company is offering virtual vacations around the world on a mock up planes
AKLC COMMENT(S): Would you enjoy being on a virtual vacation? :/
This world is currently on a traveling diet that has restricted consumption of beautiful beaches, snow-capped mountains and stunning skylines. But like in any diet, there are cheat days and we have them in the traveling diet too. Boarding fake planes to take virtual vacations around the world but not actually going anywhere is the loophole to cure your wanderlust cravings. Tokyo-based carrier First Airlines offers two-hour virtual reality ‘flights’ through Japan’s popular sights. They have made two special plans to give visitors a choice of where they would like to go. If you’d like to delve in the beautiful scenery in Japan, travelers can opt for plan A while Plan B is ideal for those who want to indulge in the rich and varied Japanese history and culture. Now Japan’s superb mountains which change the color from season to season, the sound of a rushing creek, to awe-inspiring and breathtaking shrines and castles can all be enjoyed from a first or business class seat in a mock airline cabin. The experience is complete with the trimmings of a business class cabin, in-flight meals and drinks, with flat panel screens displaying aircraft exterior views including passing clouds.
18. Everything you need to know about Behind The Mask, a Vogue + GQ initiative
AKLC COMMENT(S): Great initiative
So far, this year has been an emotional rollercoaster to say the least. With a global health crisis shaking up our daily lives like never before, it also left us with a reinforced belief in the power of community. In many ways, it reminded us that beyond boundaries, race, gender and affluence, we are all equal. And a face mask became the tool of survival for humankind. In its many forms, from the universal cyan blue surgical coverings and makeshift rags used by workers to handmade solutions that use leftover fabrics, the mask is a ubiquitous symbol of the current outbreak, and its lasting impact.
19. Phygital-meets-retail in post-COVID world as luxury retailers struggle to redefine experience
Ensemble’s executive director Tina Tahiliani Parekh doesn’t remember the last time the store’s crisp concrete-meets-marble interiors were bereft of customers. While there have been a few by-appointment customers, the walk-ins and the vibrancy are missing from one of India’s oldest luxury fashion store.
Much like Ensemble, retailers are struggling to make sense of the debilitating effect of lockdowns on the once buzzing retail landscape. The constant ‘open today, shut tomorrow’ situation has sent luxury and premium retail into a tailspin.
20. The rich and famous are hiring private jets to fly to Goa and Rajasthan for a holidayT
AKLC COMMENT(S): Wow!
As the world is slowly inching out of the lockdown, weekend getaways and short vacations are on the rise. After spending months indoors, Indians can’t wait to get out and holiday again.
As a result, leisure travel through private, chartered planes is booming. Kanika Tekriwal, CEO & Founder of JetSetGo Aviation shares that they are seeing a 30-40 per cent revival of their pre-COVID business. “This is a silver lining if we look at the rest of the industries,” says an optimistic Tekriwal.
21. This New York bakery is selling the worlds most expensive cookie – It is covered in gold and costs $1,000
AKLC COMMENT(S): Ehh :O Seems interesting!
If you are visiting the Big Apple soon, with an urge to splurge – here’s something for you! Well you have to have a sweet tooth for this extraordinary 23-carat gold-leaf covered cookie. Retailing for $1,000, the cookie has been created by New York City-based Sofia Demetriou who owns Duchess Cookies.
Demetriou has been long wanting to dip her toes in the luxury market, and decided to take the plunge with these $1,000 cookies. Don’t worry, her less pricey cookies sell for $4 each. “I thought, ‘Why not create something that is super elaborate and beautiful and something that is really exclusive to people?’” Demetriou told FOX Business.
22. Burberry is making reusable face masks for a good cause
Have you got your designer face mask yet?
Burberry is now the latest brand to jump on the bandwagon of selling designer masks, this year’s most ubiquitous accessory.
And they’re as Burberry as it gets: the new face masks feature the British brand’s famous Vintage check, which has graced everything from handbags to Beyoncé’s bodysuit, in the neutral hues of beige and pale blue
23. Here Is The Only Good Pricing Strategy For Luxury Brands
AKLC COMMENT(S): Very important & an interesting read
Over the past few months, almost every brand I’ve advised said that pricing was a major challenge for them. To me, this isn’t a surprise. When business is booming, companies become more confident about pricing. But when markets contract and sales fall, there’s one primary reflex: to discount with the hope of luring back customers.
Pricing is incredibly important for luxury businesses because many of them destroy significant brand equity when they lower prices in search of fast, easy growth. The consequences are almost always fatal. Driving down prices changes a brand’s value perception, which reduces that brand’s actual value. And when brand equity erodes, a rude awakening awaits. During the current pandemic, some brands that were active in discounting, such as Burberry and Ralph Lauren, only compounded their existing issues
24. How The Ultra Rich Are Hoarding Cash & Exchanging Luxury Favors During COVID
AKLC COMMENT(S): Heard about Luxury Bartering?
When you know how to make money, you know how to save it. That’s why it’s no secret that the ultra rich can oftentimes be ultra cheap (just look back at the habits of J. Paul Getty). With the economic uncertainty brought on by the pandemic, some of society’s wealthiest have figured out ways to be frugal while still indulging in their must-have high-end services. The answer? Luxury bartering. According to a report by Business Insider, the 1% is keeping cash in their pocket while exchanging expensive favors.