June 2020: Luxury News
May 2020: Luxury News
June 1, 2020July 2020: Luxury News
August 3, 2020
1. LVMH insists it’s not buying Tiffany shares on market; suggesting deal to go ahead, but at lower price
AKLC COMMENT(S): Some serious business decisions!
With rumors mounting that Bernard Arnault may be attempting to renegotiate a better deal price for LVMH’s acquisition of Tiffany, the French luxury group announced Thursday that it did not plan to buy any shares in the American jeweler on the open market.
“Considering the recent market rumors, LVMH confirms, on this occasion, that it is not considering buying Tiffany shares on the market,” the luxury conglomerate said in a terse statement released Thursday morning. The statement suggests that the planned acquisition will still go ahead, however, the wording appeared deliberately ambiguous – introducing the possibility that Arnault, Europe’s richest man, is attempting to pay a lower price for the storied New York jeweler.
2. Kering Eyewear announces partnership with Chloé
AKLC COMMENT(S): Congratulations 🙂
Kering Eyewear has added a big-name brand to its portfolio. The business is already responsible for the eyewear collections of brands Cartier, Alaïa, and Montblanc, which are owned by Swiss giant Richemont, and has added another Richemont brand, Chloé, to it’s roster. Kering Eyewear, which was created in 2014 by Roberto Vedovotto and Kering to manage the French luxury group’s eyewear business (which features nine of its own brands including Gucci), thus reinforces its position in the luxury eyewear segment.
Article link: https://in.fashionnetwork.com/news/Kering-eyewear-announces-partnership-with-chloe,1221798.html
3. What makes a popular luxury fashion brand?
AKLC COMMENT(S): Very interesting read
Luxury isn’t what it used to be. Shifting consumer values of younger generations prioritise trends over classic symbols. “The biggest change I’ve seen is that luxury brands are focused on being more fashionable and trendy. You realise products in the market are not timeless at all, as [brands] dictate trends and cycles get shorter and shorter.” says Gachoucha Kretz, an affiliate professor in marketing and brand management at HEC Paris.
Such are the strengths of luxury brands like Alexander McQueen, Versace and Valentino, which frequently “create things that stand out” and are perceived as “independent” and “bold”, says Kretz. “These brands have a strong identity and styles that are highly Instagrammable.”
Article link: https://www.voguebusiness.com/companies/what-makes-a-popular-luxury-fashion-brand
4. This Hydrogen-Powered Flying Saucer Could Be Your Electric Taxi in 5 Years
AKLC COMMENT(S): So cool, isn’t it?
Emerging aircraft design has been focused on the electric vertical takeoff and landing (eVTOL) segment. Using electric engines powered by batteries, the aircraft are quiet and maneuverable, with the ability to take off and land from anywhere. Their Achilles heel is limited battery capacity. Most have a limited range and operating time, so the eVTOL is being developed for the urban air-taxi market. While advances in battery technology are ongoing, breakthroughs tend to be incremental rather than revolutionary.
Article link: https://robbreport.com/motors/aviation/this-flying-saucer-electric-flying-taxi-2925948/amp/
5. Fashion’s mixed response to Black Lives Matter protests
AKLC COMMENT(S): #BlackLivesMatter
Global fashion brands have been adding their voices to the Black Lives Matter protests sweeping across the world after the death of an unarmed black man, George Floyd, caused by a police officer who knelt on his neck during his arrest in Minneapolis on 25 May.
Article link: https://www.drapersonline.com/news/fashions-mixed-response-to-black-lives-matter-protests
6. Beauty Forced to Confront Racism
Ready or not, beauty companies are now being forced by consumers to address racism.
Last weekend, as peaceful protests and some riots broke out worldwide, social media swelled with messages of support for the Black Lives Matter movement and George Floyd. Beauty companies began sharing messages of solidarity, joining with other industries in breaking corporate America’s usual silence on politically charged matters. Some even pledged donations.
7. COVID-19 impact: Several hotels may shut down permanently because of rising credit level
AKLC COMMENT(S): 🙁
With leisure and business tourism coming to a standstill because of the Covid-19 pandemic, India’s hospitality sector is facing its biggest crises ever. Credit Rating agency ICRA, in a note on Wednesday, said that the mounting credit stress may force several hotels to shut down their business permanently.
It said that the debt servicing holiday announced by the RBI of six months is inadequate for asset-heavy sectors like hospitality, given the expected duration of demand decline.
“Given this scenario, ICRA expects steep increase in credit distress to mount in the coming months in the Indian hospitality industry, with several hotels shuttering shop permanently,” Pavethra Ponniah, Vice President and Sector Head, ICRA said.
8. Chinese shoppers are giving luxury brands some hope
AKLC COMMENT(S): Some good news somewhere
Chinese shoppers are finally starting to snap up high-end handbags, shoes and jewelry again, giving the luxury goods industry hope that a recovery from the coronavirus pandemic is on the way.
But leading brands still face a tough road ahead, and will likely have to rethink the way they do business to withstand a damaging, worldwide hit to sales this year, as well as a shift in shopping habits in many recession-scarred economies.
Article link: https://amp.cnn.com/cnn/2020/06/11/business/global-luxury-sales-china-coronavirus-intl-hnk/index.html
9. MUST READ: WHY LUXURY BRANDS SHOULD WORK WITH BLACK CONTENT CREATORS, FASHION INVESTORS BET ON RECESSION-PROOF START-UPS
AKLC COMMENT(S): Inclusivity!
In an open letter to luxury fashion brands on her blog All the Pretty Birds, Tamu McPherson calls out the industry for leaving so many Black creators behind. “By not hiring Black content creators, brands are missing the opportunity to connect with these consumers, which we know from Black Twitter are extremely engaged and impactful,” McPherson writes. “Moreover, brands are losing out on the rich cultural input and diverse points of view Black influencers offer as content creators.” You can read the full letter here. {All the Pretty Birds}
Article link: https://fashionista.com/.amp/2020/06/tamu-mcpherson-luxury-brands-need-black-content-creators
10. Inditex invests in technology to merge online with in-store shopping
AKLC COMMENT(S): Wow! Need of the hour
Using the fashion retailer’s app, shoppers will be able to browse a specific store’s stock to buy items for collection the same day, reserve a changing room, find garments in store via a map and self check-out using QR codes.
The idea is that sophisticated control of stock and high-tech tools for shoppers to locate items both in store and online will lead to more sales at full-price.
Article link: https://in.fashionnetwork.com/news/Inditex-invests-in-technology-to-merge-online-with-in-store-shopping,1222911.html
11. Dior and Vespa Team Up for an Ultra-Stylish Take on the Classic Scooter
AKLC COMMENT(S): Such an interesting collaboration!
In 1946, the design world was changed forever. Christian Dior launched his eponymous couture house and Piaggio released the very first Vespa. Now, the storied brands have joined forces to shape the style zeitgeist yet again with a Diorified take on the iconic scooter.
The limited-edition two-wheeler was penned by the creative director of Dior women’s collections Maria Grazia Chiuri. The Italian designer wanted to deliver a haute riff on the Vespa 946, which was first presented by Piaggo in 2012. The 56-year-old also wanted to hark back to the scooter’s Roman roots and honor its impact on pop culture, such as its cameo alongside Gregory Peck and Audrey Hepburn in the 1953 classic Roman Holiday.
Article link: https://robbreport.com/motors/motorcycles/dior-vespa-unveil-limited-edition-scooter-2928187/
12. From Private Jet to Private Resort: This New Travel Partnership Lets You Travel More Safely
AKLC COMMENT(S): Just wow!
With demand increasing for private travel and more personalized experiences, two companies with the word “private” right in their names have teamed up to make secluding on vacation a seamless endeavor. The just-announced partnership between ÀNI Private Resorts—a collection of four boutique properties around the world—and personal aviation consultancy / membership company Private Jet Services has been designed for travelers who are looking to get away with a small group of family and friends, but are still committed to social distancing when possible, both in the air and on the ground.
Article link: https://robbreport.com/travel/resorts/new-partnership-private-jet-to-private-resort-2925234/
13. Augmented reality: How to engage tomorrow’s consumers
In this week’s Tech Edit by Vogue Business podcast, Maghan McDowell discusses augmented reality’s current acceleration, and what that means for shopping now and in the future.
Article link: https://www.voguebusiness.com/technology/vogue-business-podcast-tech-edit-augmented-reality
14. A fifth of younger consumers globally bought more fashion during lockdown
Consumers in general may have largely avoided buying fashion during the height of the pandemic, but a sizeable minority of those aged under 45 actually bought more than usual. That’s according to GlobalData, which said 19.3% of those aged 16-44 around the world said they’d bought more clothing since the start of the outbreak, despite having few or no social occasions to attend.
Article link: https://in.fashionnetwork.com/news/A-fifth-of-younger-consumers-globally-bought-more-fashion-during-lockdown,1224931.html
15. Gucci hikes handbag prices to curb coronavirus hit, says analyst
AKLC COMMENT(S): First Louis Vuitton, then Dior and now Gucci
Gucci has raised the price of handbags by up to 9%, joining rivals Louis Vuitton and Chanel in a bet their brands will still lure the wealthy, a Jefferies report said on Friday, as top luxury brands try to shake off the impact of the COVID-19 pandemic.
The luxury fashion industry, which plays a large role in the economies of Italy and France, has been hard-hit by lockdowns that forced the closure of stores across the globe and could face years of uncertainty as many people’s incomes are likely to fall.
Article link: https://in.fashionnetwork.com/news/Gucci-hikes-handbag-prices-to-curb-coronavirus-hit-says-analyst,1225342.html
16. All change at Swatch Group as key exec retirement prompts big CEO reshuffle
AKLC COMMENT(S): All the best to the entire team 🙂
It means Rado’s current chief, Matthias Breschan, is stepping up to take on the much bigger Longines brand as Longines veteran Walter von Kaenel steps down. Breschan is a member of the extended group management board. Von Kaenel will be enjoying a “well-deserved retirement” but has also been elected honorary chairman of Longines and will remain chairman of the Longines Foundation.
And over at Tissot, Hamilton’s current head Sylvain Dolla will succeed another long-serving member of the leadership team, Francois Thiebaud, who is now chairman at the brand and will also join the extended group management board.
Article link: https://in.fashionnetwork.com/news/All-change-at-swatch-group-as-key-exec-retirement-prompts-big-ceo-reshuffle,1225124.html
17. Influencer marketing, long lacking diversity, faces a reckoning
A lack of Black influencers and models on the social media feeds, websites and campaigns of major fashion and beauty brands isn’t new.
Brands who are paying attention to the industry reckoning on racism, however, are starting to realise that a simple supportive post or adding more Black faces on their feeds only when it’s trending, is not enough in the eyes of consumers. Instead, there’s a need to rebuild their marketing strategies to make up for past blindspots, and move beyond the common reliance on only one token person of colour.
“Brands need to convince audiences that they are serious about [catering to] a diverse customer base,” says Natasha Ndlovu, a fashion influencer based in London. “You can’t do that by using a Black influencer once a year and calling it a day.”
Article link: https://www.voguebusiness.com/companies/influencer-marketing-long-lacking-diversity-faces-a-reckoning?amp
18. The Future of Travel After the Coronavirus Pandemic
AKLC COMMENT(S): Excited to know the future of travel!!
Grounded for many months, airlines are beefing up their summer schedules—though the number of flights will be a fraction of their pre-pandemic frequency. Airports are still mostly ghost towns (some have even been taken over by wildlife), and international long-distance travel is all but dead. Around the globe, the collapse of the tourist economy has bankrupted hotels, restaurants, bus operators, and car rental agencies—and thrown an estimated 100 million people out of work.
Articlelink: https://foreignpolicy.com/2020/06/13/travel-tourism-coronavirus-pandemic-future/
19. Is this double-decker seat the future of airplane travel?
AKLC COMMENT(S): Wohoo! Looks interesting
Article link: https://edition.cnn.com/travel/amp/zephyr-seat-double-decker-airplane/index.html
20. Gucci owner Kering to open chemical lab in Italy
The Test & Innovation Laboratory (TIL) will be based in the town of Prato, where many textile suppliers of luxury groups are located, and is expected to begin activities in the first half of 2021.
The tests will be carried out on products and materials for fashion, leather goods, shoes, watches, jewellery and eyewear. The lab will be open to local and foreign companies outside Kering, it said.
Article link: https://in.fashionnetwork.com/news/Gucci-owner-kering-to-open-chemical-lab-in-italy,1226668.html
21. What It’s Like To Stay In A Luxury Hotel Right Now
Travel came to a standstill in the United States in March, as the coronavirus emptied roadways, attractions, restaurants, bars, hotels and the skies. But there’s finally some movement. As the lockdown lifts in cities all over the globe, more and more hotels are reopening.
Article link: https://www.forbes.com/sites/forbestravelguide/2020/06/26/what-its-like-to-stay-in-a-luxury-hotel-right-now/amp/
22. Burberry plans a ‘phygital’ experience for spring 2021
Burberry has outlined its digital fashion show plans for its coed spring 2021 collection: a digital-facing event to take place on September 17, 2020. Unlike other solely physical or solely digital shows planned for the spring 2021 season, Burberry’s event seems to be a merging of the real and the virtual, with a release promising a “live physical presentation that is open for all to experience digitally.” Translation: Burberry is likely pursuing a hybrid show that takes place in the real world with elements streamed online to a global audience of viewers.
Article link: https://www.vogue.in/fashion/content/burberry-plans-a-phygital-experience-for-spring-2021?amp
23. Luxury Handbags Are Now Outperforming Art, Classic Cars and Whisky as Investment Items
AKLC COMMENT(S): Time to buy that Birkin 😉
Anyone who’s bought a Birkin will tell you that it’s an investment. But, up until now, there’s been little hard data to back up that claim. Fortunately for bag lovers, a new report from Art Market Research (AMR) proves that the very thing designed to hold your money can actually make you more of it.
The burgeoning category of collectible luxury handbags outperformed art, classic cars and even rare whisky to claim number one position as an “investment of passion” this year.
Article link: https://robbreport.com/style/accessories/luxury-handbags-are-now-the-best-investment-items-2931458/amp/
24. Business Jets Are Now Offering a Safety ‘Bubble’ Passage to Yachts, Vacation Homes and Safaris
In the wake of Covid-19, private aviation has found a new client base. While commercial air travel remains significantly reduced and the newly coined “Germaphobia” trend grips the globe, a group of private jet partnerships for both yachting and travel are attempting to create “bubbles” that allow safe passage between home, aircraft, yachts or even African safaris.
25. What will happen to India’s luxury wedding industry after lockdown?
AKLC COMMENT(S): Interesting read, We are all embracing the new normal !!
In an uncertain world, weddings are not at the top of anyone’s minds. But in India, they are a huge business, and their absence is keenly felt by the bridalwear industry.
India went into lockdown starting 25 March, and shopping malls remain firmly shut. For the bridalwear sector, it’s been a heavy blow. Plenty of engaged Indian couples have decided not to wait and have opted for intimate ceremonies at home — weddings hosted with a gathering of 50 maintaining social distancing are permitted. But most couples are stuck in limbo, with wedding venues paid for, flights cancelled and plans undecided. The question everyone’s asking: once things settle down, will people still attend a large-scale celebration?
Pre-pandemic, India was a promising market for luxury goods, estimated to grow at a 10.3 per cent CAGR between 2020 and 2023. The market size is close to $8 billion.
Article link: https://www.voguebusiness.com/consumers/what-will-happen-to-indias-luxury-wedding-industry-after-lockdown-covid-19?amp
