March 2019: Luxury News
Watch: AKLC at SIHH 2019
March 15, 2019Watch: Victorinox at Baselworld 2019
April 6, 2019
1. LVMH Plans London Hotel and New Flagship in Experiential Push
French luxury group has plans for a Cheval Blanc hotel and associated restaurants, a spa and a flagship store that appears intended for Hedi Slimane’s Celine on Grafton Street in London’s Mayfair.
Article link: https://www.businessoffashion.com/articles/professional/lvmh-plans-london-hotel-and-new-flagship-in-experiential-push
2. Luxury leather label Nappa Dori set to open its flagship store in London
If you’re a connoisseur of handcrafted leather products, you would be familiar with Gautam Sinha’s luxury label, Nappa Dori. From an expansive range of luggage and bags to minimally designed stationery and accessories, the Delhi-based design house has long established itself as a brand that celebrates India’s rich heritage and artisanal craftsmanship. Now, Nappa Dori is going global as it extends its reach with a flagship store at the heart of London, opening in late April 2019.
Article link: https://www.vogue.in/content/luxury-leather-label-nappa-dori-open-flagship-store-london/
3. Mercedes-Benz ‘cautiously optimistic’ about India sales
Mercedes-Benz India remains “cautiously optimistic” about sales growth here in 2019; especially this being an election year.
According to Martin Schwenk, Managing Director and CEO, Mercedes-Benz India, the January to June period “are not the strongest months” in terms of sales. On the other hand, the second half could lead to “some growth”.
“Historically, election years have given us growth. But that has happened after the elections,” he told BusinessLine.
Article link: https://www.thehindubusinessline.com/companies/mercedes-benz-cautiously-optimistic-about-india-sales/article26449344.ece
4. Audi A6 Lifestyle Edition Launched In India; Priced At ₹ 49.99 Lakh
Bringing some panache to its luxury sedan, Audi India has launched the A6 Lifestyle Edition in the country. The Audi A6 Lifestyle Edition is offered in both petrol and diesel engine options with prices starting at ₹ 49.99 lakh (ex-showroom). The new special edition model brings additional kit and accessories that are aimed to add more value to the car. The Lifestyle Edition adds features like a rear seat entertainment package, Espresso Mobil and entry-exit lights as part of the upgrade.
Article link: https://auto.ndtv.com/news/audi-a6-lifestyle-edition-launched-in-india-priced-at-rs-49-99-lakh-2002998
5. Keeping it Clean: India’s Luxury Hotels Offer Clean Air as Their Newest Differentiation
Hospitality and especially luxury hospitality is all about figuring out customers’ expectations and catering to them with precision and élan. In India, and specifically in its most major metropolises of Delhi and Mumbai, this elusive customer demand is not surprising that of clean air.
6. Warsaw’s luxury retail sector sees upturn in fortunes
Consumers in Poland have been increasing their spending on luxury goods over the last few years. According to data from KPMG and Euromonitor international, Poles spent 688 million euro on luxury fashion and accessories in 2018 alone.
According to the latest KPMG data, the entire luxury consumer goods market in Poland is worth almost 24 billion zloty, which is an increase of 14 per cent from 2017 and is forecast to exceed 39 billion zloty by 2023.
As a result it is no surprise that luxury brands are looking at Poland as a new market to enter, exemplified by the debut of the legendary French brand Hermès, which will open its first store anywhere in emerging Europe in Warsaw later this year. According to reports in Polish daily Rzeczpospolita, the Warsaw store will open in the in the newly refurbished Europejski Hotel.
The newspaper’s source also says that Chanel and Dior are also interested in the location.
Article link: https://emerging-europe.com/business/warsaws-luxury-retail-sector-sees-upturn-in-fortunes/
7. From ‘bling-bling’ to ‘hypercars’, limitless luxury on show in Geneva
Luxury figured high on the menu as Europe’s biggest annual car show opened to the public Thursday, featuring everything from “hypercars” to flying cars, and more traditional high-end automobiles, encrusted with diamonds.
Article link: https://m.phys.org/news/2019-03-bling-bling-hypercars-limitless-luxury-geneva.html
8. Small-town India is splurging on luxury—and here’s what it’s buying
India’s luxury market is getting a boost from the country’s tier II cities.
High end spending in these towns grew at a rate 30 times greater than in tier I cities between 2013 and 2018, according to an analysis by credit card company American Express. Overall luxury spending in India itself grew by 4% in this period, the data showed.
The firm analysed transaction-related data from around 600 luxury goods merchants across the country for the study.
This spike in the growth in luxury spending in tier II cities came amidst “some strict measures by the Indian government in 2016 such as demonetisation, increased excise duty on gold and diamond jewellery, and increased tax on other luxury goods to curb ‘black money,’” the American Express report reads. Many analysts believe the luxury market was hit hard by the 2016 rule that customers must submit their permanent account numbers (PAN) for transactions of over Rs2 lakh (around $3,000), according to a November 2018 report in the Economic Times newspaper.
Article link: https://qz.com/india/1569959/tier-2-indias-splurging-on-luxury-boutiques-fashion-jewellery/
9. Small-town India is splurging on luxury—and here’s what it’s buying
All game-changing developments in India’s hotel sector thus far have been limited to the budget segment, which underwent a disruption with the birth of brands like Oyo, Treebo, and Fab Hotels, attracting the interest of big investors such as SoftBank and Goldman Sachs.
But there is a little digression. In December, the market saw the launch of a new luxury hotel brand, Postcard Hotels & Resorts, the first after a gap of about two decades. Notably, it’s by a legacy veteran, Kapil Chopra, who was the former president of Oberoi-Trident, part of EIH.
Chopra told Skift it has been a long time since a luxury hotel company got launched in India, whereas budget brands like Oyo, Treebo and Fab have mushroomed over the last few years.
Article link: https://skift.com/2019/03/15/indias-luxury-hotel-sector-needs-an-oyo-like-disruption-says-former-top-oberoi-exec/
10. Maserati launches 2019 Quattroporte
Maserati, the Italian luxury car-maker, has launched the model year 2019 Quattroporte diesel in India. A classic example of authentic Italian design, the flagship Maserati sedan embraces the virtues of elegance and athletic attitude like its predecessors, the company claimed. The Quattroporte in Italian simply means ‘four doors’. The 2019 model is offered in GranLusso and GranSport trims, representing the blend of luxury and performance. The dominant, powerful nose is sculpted around the Alfieri-shaped three-dimensional grille, which is pointed and imposing, featuring vertical chrome rib elements that contrast with the depth of the ‘sharknose’ effect.
Article link: https://www.thehindubusinessline.com/specials/auto-focus/maserati-launches-2019-quattroporte/article26536538.ece
11. Vista Rooms to add 150 luxury villas by 2019-end
Luxury villas network Vista Rooms is looking to add 150 properties in India by the end of this year.
12. It’s official: Tom Ford Beauty makeup and perfumes are now in India
Tom Ford Beauty has launched in India. The brand’s bold colour cosmetics and luxurious, heady perfumes are now available exclusively at the Sephora stores in Mumbai, Chandigarh, Delhi and Kolkata as well as to shop online. Tom Ford Beauty takes the no-makeup makeup trend and turns it on its head—embracing unrestrained pops of saturated colour, heavy contouring and eyebrow raising product names.
Article link: https://www.vogue.in/content/tom-ford-beauty-makeup-perfumes-available-in-india-sephora/
13. Louis Vuitton is offering a couture-like service at its new London store
Louis Vuitton has launched a new service that will give shoppers an almost couture experience. Its renovated Sloane Street store has launched a special Rare and Exceptional offering whereby clients will be able to fit and customise chosen pieces to their specific needs.
The selected gowns are inspired by looks worn by Emma Stone, Julia Roberts and Chloe Moretz, dresses that are usually custom-made for a respective actress. The new service will enable shoppers to wear similar styles, but tailor-made to fit them.
Article link: https://www.harpersbazaar.com/uk/fashion/fashion-news/a26895294/louis-vuitton-opens-new-london-store/
14. Hermès To Launch Skincare, Cosmetics
Hermès plans to launch skincare and cosmetics ranges in 2020. The collections are being developed in-house but will be manufactured by third-party suppliers, mainly in France and Italy.
This is a new challenge for the brand, which saw sales grow 10.4 percent in 2018 to reach nearly €6 billion. “Obviously, we hope to have the biggest scope possible. We are trying to do it humbly and cautiously, because it’s a big market that’s already full of strong players, and therefore we have to find our place in it,” Hermès chief executive Axel Dumas said on Wednesday.
Article link: https://www.businessoffashion.com/articles/news-bites/hermes-to-launch-skincare-cosmetics
15. Luxury brands focus on hospitality for Art Basel Hong Kong
Audemars Piguet and Prada are among the luxury brands connecting with consumers over art during the Hong Kong edition of Art Basel.
Article link: https://www.luxurydaily.com/luxury-brands-focus-on-hospitality-for-art-basel-hong-kong/
16. Arvind looks to return licenses of Gant, Aeropostale, and Nautica
Arvind may return its licences for three international fashion brands: Gant, Aeropostale, and Nautica, as the brands have not performed as well as expected over the past few years.
Sources told TNN that Arvind is looking to cease its licence agreement with three of its 28 international fashion brands due to poor sales. According to the sources, Arvind will shut down its Gant, Aeropostale, and Nautica brick-and-mortar retail outlets and may keep the products as Flipkart online exclusives until the licence agreements expire, after which Arvind will not renew them.
Arvind has held the licences to the Swedish brand Gand and US brands Aeropostale and Nautica for several years but sources reported that talks about terminating the business’ relationships with these brands began early this year. A decision is expected to be finalised in the coming months. Although no financials have been released from the brands, sources said that their performances were not up to expectations in India.
Article link: https://in.fashionnetwork.com/news/Arvind-looks-to-return-licenses-of-Gant-Aeropostale-and-Nautica,1082987.html#.XJ3SQNR97Gg
17. Sustainability becoming an economic benefit for luxury brands
Only a few years ago, sustainability was regarded chiefly as a marketing claim, but it is now becoming an essential element at the heart of the business strategies of fashion and luxury labels, generating a genuine economic benefit. These are the conclusions of a survey by McKinsey & Company for the Italian Fashion Chamber (the Camera Nazionale della Moda Italiana, CNMI), presented during the ‘International Roundtable on Sustainability’ that was organised on Tuesday in Milan by the Italian fashion industry’s main representative body.
Article link: https://in.fashionnetwork.com/news/Sustainability-becoming-an-economic-benefit-for-luxury-brands,1083289.html#.XJ3TU9R97Gg
18. Louis Vuitton’s colouring pencils bring luxury to everyday stationery
Seemingly, Louis Vuitton can transform any inanimate object into a must-have, to-die-for accessory.
From monogrammed teddy bears to vases and lipstick cases, if there’s something you want given the Louis Vuitton treatment, it’s likely the French house can do it.
The latest Louis Vuitton invention is a coloured pencil set with matching leather roll. The Louis Vuitton stamped pencils, which range from white to gold and every colour in between, sit neatly in the leather roll which has been crafted in the brand’s classic monogram canvas.
On the outer side of the roll, coloured circles have been hand-painted to mirror where the matching pencil shades should sit, which is particularly thoughtful for those who like to keep their stationery in order.
Article link: https://www.vogue.in/content/louis-vuittons-colouring-pencils-bring-luxury-to-everyday-stationary/
19. Baselworld 2019 Spotlights Luxury Watch Market Despite Big Name No-Shows
Though hit by high exhibiting prices and some big-name absences, annual watch and jewellery show Baselworld, run this year from March 21st-26th, still commands the attention of the luxury goods market. After a drop from around 2,000 exhibitors to around 600 in recent years, the future of the Swiss show seemed in doubt, and the absence this year of Swatch and all its sub-brands hasn’t done it any favours. However, so long as leading watch brands such as Zenith, Breitling, Porsche Design, Bell & Ross and Itay Noy put in an appearance, it seems that the show has a place. How long that continues, as the luxury watch market moves towards a limited distribution model, is another question.
Article link: https://www.artsandcollections.com/top-releases-baselworld-annual-line-up-watches/
20. Why Gucci, Louis Vuitton & Other Luxury Brands Are Betting Big on Airport Retail
Airport retail isn’t all snacks and paperbacks — luxury retailers like Louis Vuitton, Christian Dior and Prada are finding that on-the-go travelers are a lucrative demographic.
According to research from Bain & Company, luxury sales in airports grew by 7 percent in 2018 as global travelers upped their spending and brands opened new boutiques. Sales in department stores, meanwhile, fell 4 percent, reflecting the sector’s struggle to drum up foot traffic when shoppers are increasingly moving online. (E-commerce sales saw the highest growth, ballooning 22 percent year-over-year.)
Article link: https://footwearnews.com/2019/business/retail/airport-luxury-retail-stores-gucci-louis-vuitton-1202765178/
21. PVH to exit high-end collection of Calvin Klein label
Apparel maker PVH Corp said on Thursday it would exit its high-end collection of Calvin Klein apparel and shut the label’s flagship store on New York’s Madison Avenue, as the fashion line failed to strike a chord with customers.
The company also said it was in talks with its North America apparel partner G-III Apparel Group LTD to license out the brand’s women’s jeans unit.
G-III also operates Tommy Hilfiger women’s business, which helped boost PVH’s strong financial results in the fourth quarter, lifting its shares nearly 18 percent in morning trading.
“We believe this was the right decision for the long-term health of the brand (Calvin Klein) as the existing high-end business was not resonating with our core consumer,” Chief Executive Officer Emanuel Chirico said on a post earnings call.
