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jerryking : lvmh   18

(1) LVMH clinches takeover of Tiffany after raising offer to $16.6bn | Financial Times
Arash Massoudi in London, Eric Platt in New York and Michael Pooler in Paris 14 HOURS AGO
affluence  LVMH  Tiffany 
12 weeks ago by jerryking
For Sephora, the store is core to its beauty
July 24 2019 | | Financial Times | by Harriet Agnew and Hannah Copeland in Paris.

**Sephora stores focus on experience, allowing consumers to test products digitally on a virtual mirror for instance or personalise products **

Like its stores in New York’s Times Square and Dubai Mall in the Middle East, Sephora in La Défense has recently reopened after an extensive refurbishment. The investment reflects how bricks and mortar and experiential retail are key to Sephora’s growth. The LVMH-owned group, which stocks about 300 brands alongside its own label, has increased sales fourfold in the past eight years, fuelled by a booming beauty market........“A lot of people are scared of the retail apocalypse so they’re not investing in stores, and that becomes a self-fulfilling prophecy,” said chief executive Chris de Lapuente in an interview on the shop floor. “We’re investing in our stores, taking our top 100 stores in the world and renovating them to the best possible standard.”....Mr de Lapuente says one attraction of Sephora is that consumers “discover brands they can’t find anywhere else”, noting that about a third of its offerings are exclusive to Sephora, and it acts as an incubator for upcoming or niche brands....Exclusivity might be with Huda, which began selling false eyelashes in Dubai and subsequently developed a collaboration with Sephora; pop star Rihanna’s cosmetics brand Fenty, which is on track for €500m sales this year; or an exclusive collaboration with Dior for the Dior Backstage range of make-up.

Pointing to the beauty bar where customers can get a free makeover, Mr de Lapuente added: “Experiential retail is crucial to our success. Sephora is a place where people come for advice, they come to listen. We teach, inspire and play . . . You’re not going to get this online. Online you can do your research . . . here you can come and experiment.”

Mr Fujimori agrees, saying Sephora “successfully combines experiential retail with a leading ecommerce presence, leveraging digital technology to enhance the shopping experience in-store and online”......
Please use the sharing tools found via the share button at the top or side of articles. The challenge now for Sephora is to stay ahead in a world where there are more make-up and beauty brands than ever, and social media has lowered barriers to entry and boosted the speed to market. Meanwhile, Amazon last month announced the launch of its professional beauty stores, aimed at the mass market.

“Amazon is just another one of the many choices out there,” said Mr de Lapuente. “They have a strong e-commerce offering. They don’t have stores. We love that consumers love to shop online and in store.” He says that customers who buy both on- and offline tend to purchase three times more than those who buy using just one channel. Ecommerce represents an average of 20 per cent of sales in each country for Sephora, which uses influencers to build its community. “Amazon just forces us to raise our game.”....

The pressure is on to keep on innovating. “Beauty is so fast-moving, you can’t cruise,” said Mr de Lapuente. He says innovation will come both from new products (citing untapped potential in haircare and wellness), and from the way in which brands reach consumers. He sees opportunities in areas like voice-activated ordering through home assistants such as Amazon’s Alexa, and social commerce through platforms like China’s WeChat.

But despite such technological developments, for Mr de Lapuente, the store has a robust future.

At La Défense, customers are returning to work with Sephora’s distinctive striped bags modelled on the black and white stripes of Italy’s Siena Cathedral. “Is physical retail alive or dead?” mused Mr de Lapuente among the throng of shoppers. “It looks pretty alive to me. The store is where the magic happens.”
Amazon  beauty  brands  bricks-and-mortar  customer_experience  cosmetics  digital_influencers  e-commerce  experimentation  experiential_marketing  high-end  in-store  incubators  innovation  LVMH  makeup  millennials  omnichannel  refurbished  renovations  Sephora  women 
july 2019 by jerryking
Rihanna to lead new LVMH fashion house
May 10, 2019 | Financial Times | by Harriet Agnew in Paris.

Pop star will launch a new line of ready-to-wear luxury clothing, footwear and accessories brand named Fenty, becoming the first woman to create an original brand at LVMH. This is significant because it is one of the most high-profile creative tie-ups to date between a celebrity and a luxury group, and illustrates the lucrative potential of celebrities to draw attention — and sales — through Instagram (Rihanna has 70.5m followers). .....LVMH said Fenty would be “centered on Rihanna, developed by her, and takes shape with her vision . . . including commerciality and communication of the brand”....Rihanna joins other singers such as Beyoncé in launching her own clothing line.....
accessories  apparel  beauty  brands  celebrities  creative_class  digital_influencers  entrepreneur  entrepreneurship  Fenty  footwear  greenfields  Instagram  luxury  LVMH  music  partnerships  singers  clothing  clothing_labels 
may 2019 by jerryking
Is This the Start of Better Airport Shopping in the U.S.? - WSJ
By Scott McCartney
March 14, 2018

In the age of online shopping, retailers are finding that airports can take some of the sting out of declining mall traffic. Travelers have time to kill [JCK: "downtime"] and money to spend when they’re captive inside airport security. Major airports around the world, from Singapore to Dubai, London to Beijing, have essentially become shopping malls with gates.......Airports like duty-free shops because they get a cut of the revenue; luxury-goods makers like the chance to interact in person with shoppers; and customers like the convenience, savings and opportunity for capricious purchases.....“The variety is good,” he says. “I don’t know if the prices are good, but the convenience is.”

Name-brand cosmetics and perfumes especially can be cheaper at the airport, with special packages, quantities and, for some brands, unique products. Other items can be hit and miss.....Airport customer research showed a hunger for high-end retail catering to expense-account business travelers and vacationers dubbed “indulgent explorers,” who are willing to spend on unique items, especially local brands. .......Moët Hennessy, the Paris-based maker of Champagne and cognac, has a boutique in the Dallas duty-free store where it does tastings of rare editions—a spot of cognac before boarding. The unit of luxury-goods conglomerate LVMH sees airport retail as a chance to educate consumers about its brand. ....DFW's duty free mall store has no doors; travelers just wander through. Brands have their own areas, creating a boutique feel. There is some seating upstairs on an open, second level designed for events such as tastings, entertainment and parties that will lure curious passengers.

While online retailing has curtailed some airport retail business, companies say they are still seeing growth—stronger than other traditional venues like malls or Main Streets.
airports  brands  convenience  downtime  duty-free  glamour  high-end  luxury  LVMH  retailers  travel 
march 2018 by jerryking
Another Arnault Steps Into the Spotlight
NOV. 7, 2017 | The New York Times | By ELIZABETH PATON.

Clos19, LVMH’s first e-boutique and travel experience agency dedicated to Champagne, wines and spirits, had its debut in the United States, via a fizz-fueled soiree in New York. The focus of Ms. Watine Arnault’s brainchild, she said after the party, is on the “art of hosting” in the 21st century.

So what, one wonders, does that entail? Clos19 isn’t exactly an online bottle shop. Yes, you can order crates of LVMH’s finest drinks brands, like Dom Pérignon, Veuve Cliquot, Belvedere or Hennessy, to be delivered to your door in 24 hours. But you can also specify the temperature of the deliveries, and the glassware to go with it. Tastings or consultations with in-house experts will be regularly offered, as is event planning for weddings and dinner parties.

Clos19 also offers access to LVMH cellars or experiences designed around the spirits, including a fire-and-ice tasting in Antarctica or yachting off the Cloudy Bay vineyards in New Zealand. The lowest-priced experience is about $230, with the cost of luxury scaling up from there to dizzying heights.
LVMH  digital_strategies  Clos19  liquor  events  curation  brands  luxury  family-owned_businesses  Champagne  experiential_marketing 
november 2017 by jerryking
Wall Street to CEOs: Disrupt Your Industry, or Else
May 26, 2017 | WSJ | By Christopher Mims

Investors and boards are hunting for corporate leaders who can move quickly to fend off upstarts and place big bets on disruptive tech.......For pretty much any industry you can name—not just autos but manufacturing, logistics, finance, media and of course retail—there are tech startups purporting to have better ideas, ones they say they don’t need decades to make into realities. It isn’t as if all these industries will see massive CEO turnover, but it does mean established companies need to consider drastic measures. They must be willing to tell their stakeholders they may have to lose money and cannibalize existing products and services, while scaling up new technologies and methods.

“Ten years ago, innovation was based on features and functions,”. “Now it’s about your business model and transforming your industry.”

Before, companies could innovate by acquiring tech startups. But the top disrupters now grow so quickly and capture so much market share, they become too valuable to buy or are unwilling to sell.....Act faster to satisfy shareholders.....Mickey Drexler, CEO of beleaguered J. Crew, admitted that if he could go back 10 years, he might have done things differently, to cope with the rapid transformation of retail by e-commerce. Who then would have predicted that in 2017, the No. 1 online retailer of clothing to millennials would be Amazon?....CEO turnover isn’t necessarily the only solution on the table....Companies also have to incubate potentially disruptive startups within their own corporate structures. This means protecting them as they develop, and being willing to absorb their losses for as long as their competitors do. Consider, for example, that Amazon made almost no profit for its first 20 years..... Wal-Mart’s e-commerce division increased sales 29% from a year earlier. Many analysts thought the company overpaid for Jet.com, which cost it $3.3 billion in August 2016. But the acquisition brought e-commerce veteran Marc Lore, who became chief executive of Wal-Mart’s online operations and quickly replaced existing executives with members of his own team.
analog  business_models  CEOs  Christopher_Mims  disruption  e-commerce  leaders  LVMH  operational_tempo  risk-taking  transformational  turnover  Jet  Wal-Mart  Wall_Street 
may 2017 by jerryking
How Sephora Is Thriving Amid a Retail Crisis - The New York Times
By LAURA M. HOLSONMAY 11, 2017

Much has been written about the crisis in retail, with shoppers deserting department stores for e-tailers and fast fashion, if they shop at all. The beauty business, though, has not had the same fate. Prestige beauty sales in the United States rose 6 percent in the 12 months ending in February, tallying $15.9 billion, according to the market research company NPD Group. Makeup alone is up 11 percent, totaling $7.3 billion. But that industry, too, is in the midst of its own upheaval, driven in part by the success of stores such as Sephora, the No. 1 specialty beauty retailer in the world....Bloggers and YouTube stars, Instagram videos and virtual assistants are replacing department store sales clerks, whose customers now know as much as they do (or more) about mermaid eyes and ombré lips. Brand loyalty is out, replaced by Sephora’s try-more-buy-more ethos. Friends hold as much sway these days as trained experts....two out of five women between ages 18 and 54 wear five or more makeup products every day. “It defines the selfie-obsessed, image-driven culture of our time,” .... There are more voices. And we are trying to cut through the confusion,” in part by allowing customers to try before they buy.....“It is easy to kill time, play around with things and then spend more money than I should,” ...“I am experimenting a lot, trying to figure out what I like.” She doesn’t shop at department stores. “I don’t associate [Sephora] with makeup,”....In 2015, Sephora opened its Innovation Lab in a converted warehouse in San Francisco to experiment with ways to combine mobile apps and in-store shopping into a cohesive experience. As a result of their efforts, customers can have as little or as much personal contact they want in stores ...Now department stores are scrambling to follow suit.
Sephora  beauty  retailers  crisis  LVMH  Instagram  brands  millennials  social_media  digital_influencers  experimentation  time_sink  play  Macy’s  Bloomingdale’s  cosmetics  makeup  customer_experience  experiential_marketing  image-driven  self-absorbed  fast_fashion  in-store 
may 2017 by jerryking
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.”
/
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
Berluti_Paris
November 2013 | Report on Business Magazine |
shoes  artisan_hobbies_&_crafts  Paris  France  travel  bespoke  handmade  LVMH 
october 2013 by jerryking
My museum, myself
February 5, 2009|Fortune | by Peter Gumbel, Europe editor
museums  LVMH  high_net_worth  collectors  art 
november 2012 by jerryking
LVMH Bottles Up Champagne Market - WSJ.com
JANUARY 2, 2008 | WSJ | By CHRISTINA PASSARIELLO

LVMH Bottles Up Champagne Market
To Win Long Contracts From Grape Growers, Firm Helps Farmers.

The conglomerate, controlled by French billionaire Bernard Arnault, has managed in recent years to lay claim to the largest share by far of the Champagne region's limited grape output. LVMH has done that by cultivating the independent growers who raise most of the grapes -- including by offering them free farming help....LVMH's offer to these reluctant grape growers is a formula used in industries from autos to software makers: an after-sales service. Technical services such as determining the presence of mildew and parasites and identifying which grapes are maturing the fastest are provided free. By law, champagne houses have to charge for field services, including grape picking; LVMH provides those at cost.
LVMH  farming  Champagne  liquor  France  vineyards  loyalty  JCK  after-sales_service  customer_loyalty 
november 2011 by jerryking
Anna Wintour's Brand Anna - WSJ.com
MARCH 23, 2011 | WSJ | By JOSHUA LEVINE. The editor of Vogue
has always occupied the most powerful seat in the world of American
fashion. But Anna Wintour's web of influential friends and allies has
helped turn her into a global brand that transcends fashion. Photographs
by Mario Testino
fashion  profile  personal_branding  Vogue  branding  PPR  luxury  LVMH  apparel 
march 2011 by jerryking
Phoebe Philo Rebuilds Celine for LVMH - WSJ.com
MARCH 9, 2010 | Wall Street Journal | by RACHEL DODES And
CHRISTINA PASSARIELLO. LVMH Wipes Céline Slate Clean, Opening Way for
'Phoebe Effect'. "... Céline also closed all but one store in the U.S.,
cut ties to less exclusive retailers, stopped producing bags in China
and restored the accent to its name, all part of a move to tightly
control and elevate the brand."
branding  brands  China  exclusivity  fashion  France  LVMH  retailers  store_closings  upscale 
march 2010 by jerryking
PPR's Chief Aims to Strip French Retail Units - WSJ.com
NOVEMBER 26, 2009 | Wall Street Journal | by CHRISTINA
PASSARIELLO And MIMOSA SPENCER. François-Henri Pinault, chief executive
of PPR SA, is stripping the company of its once-core French retail
business in order to focus entirely on global consumer and luxury
brands, such as its high-end Yves Saint Laurent and mass-market Puma
labels. Mr. Pinault's new strategy carries risks. Exiting from retail
puts more emphasis on PPR's Gucci Group -- whose stable of brands also
includes Italian fashion house Bottega Veneta and jeweler Boucheron --
just as the luxury goods sector is suffering. As wealthy consumers cut
back in key markets, such as the U.S., Europe and Japan, sales at Gucci
Group fell 6.4% in the third quarter of this year, compared with a 4.6%
rise in revenue in the same period last year.
luxury  high_net_worth  PPR  branding  exits  LVMH  France 
november 2009 by jerryking
Big Changes at the High End
AUGUST 16, 2007 | WSJ.com | by RICHARD NALLEY

Luxury goods industry--the only area in which it is possible to make luxury margins--has consolidated into conglomerates.
luxury  consolidation  Outsourcing  counterfeits  book_reviews  branding  PPR  LVMH  high-end  industries 
april 2009 by jerryking

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