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jerryking : burberry   6

China gifts luxury a reprieve
29 April/30 April 2017 | FT Weekend | by Harriet Agnew and Tom Hancock

Chinese consumers, the drivers of global luxury for more than a decade, once travelled overseas to the European fashion capitals of Paris, London and Milan to take advantage of lower prices. Now they are increasingly inclined to spend at home. Last year Chinese consumers made two-thirds of their personal luxury goods purchases domestically, compared with roughly a third in 2013, according to the Boston Consulting Group.
.............In an era of lower growth, brands are trying to adapt to changing consumer demands and the disruption of digital while keeping the creative process at the heart of it. “Creativity and audacity is what allows you to elicit desire [and therefore sales] over the long run, telling a story that people want to discover, chapter after chapter,” says François-Henri Pinault, chairman and chief executive of Kering.
......Yet brands can no longer rely on opening lots of new stores to fuel growth. Instead they have to keep costs down, revamp their existing stores to make them more profitable, and seek new customers through avenues like digital.

“The business model of luxury has completely changed,” says Erwan Rambourg, global co-head of consumer and retail at HSBC in New York. “Either brands understand that and make the changes themselves, or they don’t and they leave themselves open to activism or M&A.”
.......Compared with other consumer brands, luxury has been late to the digital party. Phoebe Philo, the then creative director at fashion house Céline, told Vogue in 2013 that “the chicest thing is when you don’t exist on Google”. But that view now looks unsustainable.

Six out of 10 sales are digitally influenced, says BCG, which estimates that online commerce will grow from 7 per cent of the global personal luxury market today to 12 per cent by 2020.

Within digital, the holy grail is so-called omnichannel — the ability to offer a seamless experience to customers that blends digital and bricks-and-mortar stores, and includes initiatives like click-and-collect. “Blending the physical and the digital is the future of the online flagship stores,” says Federico Marchetti, chief executive of the YOOX Net-a-Porter Group.

The emphasis is on the customer experience. Net-a-Porter is launching a same-day delivery service in September for its top clients in London called, “You try, we wait.” Customers will be able to try on their online order at home or in the office while the delivery van waits outside.
......As e-commerce gathers steam and groups collect more and more data on their clients, the next stage is machine learning and artificial intelligence, believes Mr Marchetti. In this vision of the future algorithms will act as virtual shopping assistants, suggesting items that the customer might like, “enabling us to speak to each customer on an individual basis rather than to the whole customer base”, he says.

Luxury brands are also increasingly using blogs, online “influencers” and social media platforms such as Instagram to generate visibility and lure potential buyers.

All of this is happening at a time when the definition of what constitutes luxury is expanding beyond physical possessions to include experiences both as a competitor to, and opportunity for, the traditional houses.

“Luxury brands are now competing with the plastic surgeon and the luxury travel agent,” says Mr Rambourg. “For a similar price you can have a Louis Vuitton handbag, a facelift or a trip to the Maldives.”
....“Our pulse is the Chinese customer,” says LVMH’s Mr Guiony: “It made the sector worse a couple of years ago and it has made it better now. We have to be aware of that. Trees don’t grow to the sky.”
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luxury  brands  China  Chinese  China_rising  consumers  digital_disruption  e-commerce  travel_agents  BCG  growth  LVMH  watches  noughties  Yoox  customer_experience  WeChat  Burberry  digital_influencers  creativity  audacity  storytelling  omnichannel  artificial_intelligence  machine_learning  virtual_assistants  same-day 
may 2017 by jerryking
Burberry's Rose Marie Bravo Designs Ways to Keep Brand Growing and Still Exclusive
September 9, 2004 | THE WALL STREET JOURNAL Page B1 | By SALLY BEATTY
Staff Reporter

FASHIONABLE TIPS

Lessons from Rose Marie Bravo on rebuilding and sustaining a hot brand:

• Lesson 1: Do...
Burberry  fashion  branding  brands  CEOs  reinvention  dissatisfaction  execution  teams  exclusivity 
february 2014 by jerryking
Burberry CEO Angela Ahrendts Balances Life and Work - WSJ. Magazine - WSJ
September 9, 2010| WSJ | By Nancy Hass. Earning Her Stripes
From small-town roots in Indiana to the big time as head of Burberry, a
$2 billion fashion empire and one of the most widely recognized brands
in the world, Angela Ahrendts takes it all in her stride, propelling the
company into the digital age without compromising the brand’s soul—or
her own


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Burberry  CEOs  work_life_balance  fashion  branding 
september 2011 by jerryking
The Burberry business model: creating an international luxury fashion brand
2004. | International Journal of Retail & Distribution
Management Vol. 32, Iss. 8/9; pg. 412 | Christopher M Moore, Grete
Birtwistle. The Burberry model identifies 5 ksfs:

(1) The importance of a clearly defined brand positioning which
communicates a definite set of attractive brand values and lifestyle
associations.

(2) The requirement to maintain a co-ordinated distribution strategy
whereby retail chains compliment and are complimented by wholesale
chains which assure maximum market coverage.

(3) The opportunities afforded by a strong brand identity to extend into
adjacent product areas either through internal capability or via
licensing agreements.

(4) The opportunities afforded by a flexible approach to the management
of important foreign markets - such as in the form of delegating
marketing activity through licensing agreements.

(5) The importance of media relations management to the creation and
maintenance of a credible luxury fashion brand reputation.
adjacencies  Burberry  luxury  branding  fashion  brand_identity 
december 2009 by jerryking

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