Luxury Institute News

June 2, 2010

News Release: Japanese High Net-Worth Consumers Rate the “Best of the Best” Luxury Brands in Five Fashion Categories

Posted in Fashion, Handbags, Japan, LBSI, Press Releases, Shoes

(NEW YORK) June 2, 2010 - The objective and independent New York City-based Luxury Institute reported today the results of the “Best of the Best” luxury fashion brands in Japan based on the 2010 Luxury Brand Status Index (LBSI) survey. This survey identifies the top brands that deliver true luxury based solely on the unbiased ratings of wealthy Japanese consumers. The following five luxury categories were rated: Women’s Fashion, Women’s Shoes, Women’s Handbags, Men’s Fashion, and Men’s Shoes.

The LBSI asks high net-worth consumers to rate luxury brands by category across four equally weighted components: Consistently Superior Quality, Uniqueness and Exclusivity, Making the Customer Feel Special Across the Entire Experience and Being Consumed by People Who Are Admired and Respected.

The “Best of the Best” are: (LBSI score out of 10)

Women’s Fashion (Ready-to-wear)

o Hermes-7.28
o Chanel-7.27
o Giorgio Armani-6.80

Women’s Handbags

o Hermes-7.77
o Chanel-7.06
o Louis Vuitton-7.01

Women’s Shoes

o Christian Louboutin-7.39
o Hermes-7.20
o Ferragamo-7.18

Men’s Fashion (Ready-to-wear)

o Ermenegildo Zegna- 7.17
o Hermes-7.01
o Giorgio Armani-6.89

Men’s Shoes

o John Lobb-7.34
o Testoni-7.32
o Ferragamo-7.11

“Japan may be a challenging market for luxury, but it is still a huge market compared to most other geographies”, said Milton Pedraza, CEO of the Luxury Institute. “We see major efforts on the part of our luxury brand clients to differentiate themselves by dramatically out-behaving their competition rather than merely outperforming on products. Extraordinary customer experiences will be the drivers of luxury success in Japan’s large, but stagnant market”

The proprietary Luxury Brand Status Index (LBSI) survey is the only unbiased measure of the prestige of leading brands among wealthy Japanese. A national sample of 600 wealthy Japanese consumers, half male/half female, with a minimum household income of 15 million Yen (approximately $165k) was surveyed online. Males rated only the men’s categories and females rated only the women’s categories.

About the Luxury Institute

The Luxury Institute is the uniquely independent and impartial ratings, research and Luxury CRM consulting institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications, research and consulting services that guide and educate high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates LuxuryBoard.com, the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

Contact:
The Luxury Institute, LLC
Martin Swanson
Vice President Business Development
(914) 909-6350
mswanson@luxuryinstitute.com

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April 19, 2010

‘Get-It-Cheap Party’ for Luxury Goods Ends at Saks

Posted in Fashion, Handbags, Jewelry, Luxury Market

By Cotten Timberlake
Bloomberg News

April 19, 2010

Lisa Hagen bought a $395 Diane von Furstenberg sundress at Barneys New York last week, paying 58 percent more than she did for a similar dress two years ago.

“A lot of the high-end designers are at remarkably high prices,” said Hagen, 51, a marketing consultant in New York.

Still, she said, “I am willing to pay higher prices and full prices if I like it, it fits my need and I know I will use it.”

Luxury chains including Barney’s and Saks Inc. are selling costlier goods after scaling back discounts and promotions they offered to attract shoppers in the recession. Tiffany & Co. raised prices across the store. U.S. sales of luxury goods may rise 4 percent in 2010 after falling to $60 billion last year from a 2007 record of $72 billion, according to Bain & Co.

“The get-it-cheap party for luxury consumers has ended,” said Milton Pedraza, chief executive officer of the New York- based research firm Luxury Institute. “When consumers now turn over the product and look at the price, they see that those days of incredible discounts on luxury goods are over.”

The higher prices are helping retailers improve their profitability after posting losses during the recession. Saks forecast an improvement this year in gross margin — the fraction of revenue left after subtracting the cost of goods sold. Dallas-based luxury chain Neiman Marcus Group Inc. said margins improved by 7 percentage points in its most recent quarter because markdowns were so much less.

Saks has climbed 42 percent in New York Stock Exchange composite trading this year. Tiffany has increased 17 percent.

More Costly

Saks had been the “poster child” for discounting, Chairman and CEO Stephen Sadove said in an April 15 Bloomberg panel discussion. The chain has since reduced inventory and is offering fewer discounts to sell more merchandise at full price, he said.

”You’re getting back to the basics of what the category was all about,” Sadove said.

The average ticket price for U.S. luxury goods excluding jewelry jumped 11 percent in March from a year earlier, after year-over-year gains of 10 percent and 6.4 percent in February and January, respectively, according to MasterCard Advisors’

SpendingPulse data. The March gain was the biggest in the past two years. The steepest drop was a 13 percent decline in December 2008.

SpendingPulse, based in Purchase, New York, measures retail sales across all payment forms, including cash and checks. For its luxury measures, the firm isolates the top 10 percent of ticket prices in the high end of clothing and leather goods.

Luxury consumers have returned to the stores after stock markets rebounded, housing prices stabilized and Wall Street firms paid their annual bonuses. Sales of luxury goods soared 23 percent in March from a year ago, SpendingPulse said.

Biggest Gain

In the last months of 2008, luxury retailers discounted goods by as much as 70 percent to clear inventories that became bloated after consumer spending nosedived in the aftermath of the Lehman Brothers Holdings Inc. bankruptcy and the global financial crises.

Prices may continue to climb this year as fall merchandise flows into U.S. stores this summer.

“We are hearing that for fall sets, stores are looking to bring some higher-priced goods,” said Sapna Shah, principal of Retail Eye Partners, a New York-based retail research firm.

The average price of a luxury handbag sold at U.S. department stores is rising to $1,800 this year after falling to $1,600 last year from a pre-recession $2,000, Hana Ben-Shabat, a retail expert at the A.T. Kearney management consulting firm in New York, forecast in an April 15 telephone interview.

No Slam-Dunk

“They will do the slight increase if they can get away with it,” Pedraza said. “It’s not a slam-dunk.”

At Barneys, shoppers in December 2008 could buy Tod’s men’s chocolate brown penny loafers for $269, down from $390. On April 16, the Barneys Web site offered similar loafer styles at $395 to $495.

Dawn Brown, a Barney’s spokeswoman, declined to comment on pricing. The chain is privately held.

Tiffany’s Web site on April 16 offered a Metro mini diamond cross necklace at $675, up 23 percent from the in-store price on Feb. 24. A Paloma Picasso green Zellige aventurine ring was at $525, an 11 percent increase.

Tiffany, the world’s second-largest luxury-jewelry retailer, raised its prices at the end of February for the first time in a couple of years to reflect higher product prices, said spokesman Mark Aaron. The average increase was more modest than the two examples above, Aaron said, without providing specifics. The New York-based chain doesn’t discount its products.

Chanel, Charvet

Calls to Bergdorf Goodman stores revealed that a Jumbo Classic quilted Chanel handbag in black “caviar” texture with a leather gold chain is $2,995, up 20 percent from three years ago, and that men’s Charvet shirts start at $450. They were $425.

Salvatore Ferragamo ties cost $160 on the Bergdorf Goodman Web site. Three years ago they were $135. Men’s black Gucci loafers with silver horsebit buckles were priced at $475 to $595, compared with $450.

“Prices fluctuate based on exchange rates, materials and design features,” Ginger Reeder, a spokeswoman for Neiman Marcus, said in an April 18 e-mail.

Saks’s recent sales gains have been driven partly by an increase in the average price per unit sold, said Julia Bentley, a spokeswoman. A larger number of transactions also was a factor, she said. Comparable sales jumped 13 percent in March.

‘Desire Is Improving’

Neiman Marcus has also noted a recovery in sales at the highest prices. “Desire is improving,” Neiman Marcus Chief Financial Officer Jim Skinner said March 26 at an investor conference.

“Some of the hottest things we’re selling are at the very upper, upper end of our price range.”

Saks’s “substantial” rebound in full-price selling is helping its profitability, CEO Sadove said.

Gross margin jumped to 36.5 percent in the quarter that ended Jan. 30 from 21.2 percent a year earlier. The New York- based department-store chain said it expects that to widen to as much as 38 percent this year from 36.6 percent last year.

“There’s no question that an increase in full-price selling has a positive effect,” Sadove said.

Hagen, whose clients include Paris Residence Club, a collection of fractional ownership properties in the French capital, said she’s happy to pay for Domenico Vacca silk three- button shirts, which have cost $790 for the past five years, according to spokeswoman Laura Laudiero.

“I buy those shirts no matter what the price,” Hagen said. “Investment dressing!”

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aCRvaA6GfixQ

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March 9, 2010

What Chinese Shoppers Want

Posted in China, Handbags, Luxury Market, Retail
Tags: Chanel, China, Coach, Gucci, Lanvin, Louis Vuitton, Prada, Yves Saint Laurent —

Forbes.com
Evelyn Rusli
March 8, 2010

Luxury goods makers find growth in China.

“Fashion fades, only style remains the same,” says Jasper Liu, 26, summarizing his approach to shopping by quoting Coco Chanel.

Liu, a self-described “Shanghai Hipster,” represents the nouveau riche of China. He reads English literature, watches European movies, drinks fine champagne and is a loyal patron of luxury retailers, namely Lanvin and Yves Saint Laurent.

The affection is mutual: Fashion houses with global ambitions are courting Chinese consumers like Jasper, eager to learn how they spend, why they spend and just how much they’re willing to spend.

The answer: quite a lot if the quality and label are right. In a recent study by retail consulting firm Pao Principle, the average Chinese luxury consumer will spend roughly 11% of her income on luxury handbags alone. The group’s favorite brands, in order of preference: Louis Vuitton, Gucci, Coach, Chanel and Prada.

Over the past year Patti Pao, the founder of Pao Principle, has collected data on the mainland’s elite consumers: amassing a panel of 356 individuals who have purchased a luxury handbag, watch or fine jewelry piece in the last twelve months. Her snapshots of their habits create a portrait of a misunderstood luxury consumer who is highly educated and highly motivated to identify products that will complement his or her individuality and rising power.

For Pao the project was critical to her business. After the collapse of Lehman Brothers in 2008, her retail clients fled, “I said, what would it take for you to hire us back, and they basically said, ‘The U.S. is dead, Europe is dead, Japan is dead and we’re putting all our resources in either the Middle East or in China. If you can help us … we’d be happy to speak with you again.’” The mature markets may not be “dead,” but numbers confirm that momentum is indeed swinging: According to an October 2009 Bain & Company report, the U.S. luxury market likely fell 16% that year, Europe was off 8%— but China, which is described as the “new real frontier of luxury,” rose an estimated 12%.

And according to the Luxury Institute’s latest report on the high-end market (released in September 2009) 33% of respondents said they plan to spend less on handbags this year. “Even the wealthiest of consumers are now living within their means, which will have a somber, dampening effect on the market,” says Luxury Institute’s CEO, Milton Pedraza.

“U.S. consumers who are making $150,000 or more, spend about $3,000 a year on handbags, which is a pittance compared to the Chinese.” For comparison, 90% of Pao’s panelists who had purchased a handbag in the past 12 months are planning or considering the purchase of another luxury bag in the next six months.

For Western companies China can be a difficult market to crack due to its language barrier and inherently private culture. In a nation still challenged by censorship issues, Pao says people are generally hesitant to share personal and honest information. But Pao, a Chinese-American whose parents are from Nanjing, says her ties to mainland China gave her a natural advantage. “All of our correspondence was done in Mandarin. We leveraged our network of friends and families, so that we were able to hand select and hand screen a panel…who because we knew them or were tied to them in some way shape or form would tell us the truth.”

That panel is highly educated and has serious spending power: 70% graduated from college, with many holding advanced degrees: 80% own a own home; and nearly 90% bought a luxury handbag in the last 12 months. The average annual salary of a panelist is 125,000 yuan, or $18,382–which may seem low compared with U.S. wages, but is more than triple the average salary in Shanghai, which is 39,000 yuan or $5,735, and goes a lot further in China. Many of the panelists are young, college graduates from wealthy families who recently entered the work force. While their means seem modest compared to luxury buyers in the U.S., Pao found that many outspend their Western counterparts, dollar for dollar. Of the 311 panelists who bought a handbag in the last 12 months, the average purchase price per bag was $1,000 and the average panelist bought two bags, according to Pao’s data.

China’s lust for luxury may seem a pure power play, a competition to amass the greatest number of logos, but Pao says it has become more nuanced than that. As Chinese consumers become more sophisticated and savvy, they’re using fashion to differentiate themselves and project a personal statement. Twenty years ago people bought luxury goods because it signified how successful they were: “Literally, you were judged by the clothes that you wore on your back,” she says. “The trend is shifting, because in the 1970s China enacted the one-child policy,” Pao says. “Now China has a population of very wealthy households. [Their] children are cosseted, coveted, pampered … they’re self-centered and they’re spoiled,” says Pao. “It’s just how they describe themselves.”

As a result the country has moved away from a group-think mentality to a more individual-centered mindset. Luxury products that offer an opportunity for differentiation, such as limited editions, are highly sought after by her panelists, including “Shanghai Hipster” Liu. He admits China’s consumers are more brand-oriented but says that only “unsophisticated luxury shoppers would select luxuries with visible logos to show off their new ‘conquest.’ ”

Pao’s report concludes that the country’s wealthy consumers and its aspirational class are willing to spend money (while scrimping and saving if necessary) to buy the finest goods, but they are more discerning than ever. Pao warns that China can no longer be used as a dumping ground for excess inventory and says designers will have to create limited editions exclusively for the market.

The Chinese consumer understands that “after 2009 they’re going to be the number one consumer of luxury goods in the world,” Pao says. “And they’re expecting acknowledgment for that.”

http://www.forbes.com/2010/03/08/china-shoppers-luxury-markets-equities-lifestyle.html

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November 10, 2009

News Release: Which Lux Brands Receive Top Scores in Europe?

Posted in Automobiles, Fashion, Handbags, Hotel/Resort, LBSI, Luxury Market, Press Releases, Shoes

(NEW YORK) November 10, 2009 - The objective and independent New York City-based Luxury Institute (www.LuxuryInstitute.com) reported today results of the top luxury brands in Europe based on the “2009 Best of the Best European Luxury Brand Status Index” (LBSI) survey. The LBSI identifies the top brands that deliver true luxury based solely on the unbiased ratings of wealthy European consumers, rated in the following seven luxury categories: Women’s Fashion (31 brands), Women’s Shoes (35 brands), Handbags (36 brands), Men’s Fashion (30 brands), Men’s Shoes (29 brands), Automobiles (20 brands) and Hotels (18 brands).

Which luxury providers deliver the best combination of quality, exclusivity, customer experience and peer prestige in Europe?

The “Best of the Best” are: (LBSI score out of 10)

Women’s Fashion:
o Chanel-7.56
o Valentino-7.54
o Louis Vuitton-7.53

Women’s Shoes:
o Christian Louboutin-8.37
o Manolo Blahnik-8.35
o Jimmy Choo-8.30

Handbags:
o Hermes- 7.84
o Chanel-7.69
o Jimmy Choo-7.66

Men’s Fashion:
o Loro Piana-7.79
o Ermenegildo Zegna-7.32
o Giorgio Armani-6.94

Men’s Shoes:
o Bottega Veneta-7.83
o Piaciotti Cesare-7.77
o Salvatore Ferragamo-7.64

Automobiles:
o Porsche-7.53
o Mercedes-Benz-7.24
o Jaguar-7.18

Hotels:
o Small Luxury Hotels of the World-8.40
o The Luxury Collection-8.25
o Maybourne Hotels-8.11

“Europe will always be a core market for the luxury industry, said Milton Pedraza, CEO of the Luxury Institute. “It is still the largest continental economy in the world and continues to be the cradle of luxury. That is why it is so gratifying to see the top-rated European luxury brands embrace Luxury CRM as the next step in their evolution. Top-tier brands recognize the need to not only outperform, but, to dramatically outbehave their competition and are embracing a complete redesign of their corporate culture and values to be aligned with those of their customers. These leading brands also are using data, analytics and technology to manifest the culture and values across all channels.”

The proprietary Luxury Brand Status Index (LBSI) survey is the only unbiased measure of the prestige of leading brands among wealthy European consumers. A European sample of 752 wealthy women and 752 wealthy men in France, Germany, Italy and the United Kingdom, with a minimum household income of 50,000 Euros and/or 60,000 Pounds was surveyed online.

For Further Information, Please Contact:

The Luxury Institute, LLC
Martin Swanson
Business Development
Phone: (914) 909-6350
E-mail: mswanson@luxuryinstitute.com

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September 20, 2009

Accessories After the Fact

Posted in Fashion, Handbags, Luxury Market

The It bag died before the downturn. How companies are fighting back.

By Lisa Bannon
The State of Luxury
Wall Street Journal Magazine

“Whether it’s a red Ferrari or a Prada bag, we are impressed, for better or worse, by people who wear these products,” says Milton Pedraza, president of the Luxury Institute in New York. “They have become symbols of meeting someone of your own tribe.”

It’s been a brutal year for the arbiters of all things luxurious. World-wide accessories sales, the engine driving the explosive growth of the luxury-goods industry over the past decade, are projected to decline 10 percent in 2009, according to Bain & Co., the first real decline since Bain began tracking the sector in 1995. “Consumers have lost 40 to 60 percent of their assets broadly in the U.S. Long-term, they’ll start spending again, but not at the levels they spent before,” explains Lew Frankfort, chief executive of American accessories giant Coach. “Anyone who believes things are going to return to how they were is delusional.”

Evidence suggests that after a long shopping hiatus last winter and spring, consumers have been tiptoeing back into stores to buy shoes, handbags and sunglasses, selectively. Despite the downturn, some brands have reported stable or growing sales in the first half of the year-Gucci sales were up 8.3 percent for the first half while LVMH Moët Hennessy Louis Vuitton said sales rose 0.2 percent, including an 8 percent increase in its fashion and leather-goods business. Hermès sales were up 7.6 percent and it’s projecting flat annual sales at constant exchange rates. “If you had told me last year that we would have flat sales in 2009, I would have kissed you on both cheeks,” said Hermès chief executive Patrick Thomas in The Wall Street Journal in July.

But even fashion’s most ardent devotees have changed their mind-set about splurging, prompting the industry’s biggest players to rethink everything from pricing, to product mix, design and marketing. Although few will go on the record, many of the industry’s most discriminating brands are creating cheaper handbags and accessories, or recycling classic lines. “People want value for money in every single market-from Japan to the U.S., and now it’s happening in Europe,” says Ralph Toledano, chairman and chief executive of Chloé in Paris. “Pricing is a key issue we are working on.”

Read the full article here: http://magazine.wsj.com/features/the-state-of-luxury/accessories-after-the-fact/

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July 31, 2009

Coach rolls dice with Krakoff luxury clothing line

Posted in Fashion, Handbags, Retail

Tue Jul 28, 2009 7:05pm EDT

By Martinne Geller and Nicole Maestri - Analysis

NEW YORK/SAN FRANCISCO (Reuters) - The decision by Coach Inc to launch a clothing line named for its creative director Reed Krakoff is a risky one, especially amid a global economic slowdown that may permanently alter consumers’ desires for designer duds and high price tags.

While Coach’s handbags became ubiquitous during the housing boom as consumers found themselves flush with cash and easy access to credit, the retailer is now introducing lower priced goods to appeal to newly frugal and budget conscious shoppers.

Chief Executive Lew Frankfort defended his company’s plan to launch a luxury clothing brand, telling Reuters it was “a perfect time” as consumers rethink where and how they shop.

Analysts praised Coach for its strong balance sheet, methodical approach to managing its business, and strong stable of talented designers. But they cautioned that success in selling a handbag does not necessarily translate into success selling clothes — even for a retailer as well regarded as Coach.

“Going into a totally new category, which is more challenging, less profitable and to do it in an environment like this, when there’s already too many brands, that is extremely challenging,” said Milton Pedraza, chief executive of the Luxury Institute. “It’s definitely a sport that is not for the faint of heart.”

EXPANDING REACH TO HIGH-PRICED CLOTHES

On Tuesday, Coach reported a lower quarterly profit that matched Wall Street estimates, but its shares fell after same-store sales trends worsened and some investors worried over its increased investment.

Coach said it plans to introduce a stand-alone brand next year called Reed Krakoff after its executive creative director. Krakoff, along with Frankfort, oversaw Coach’s evolution from a utilitarian leather goods maker to a fashion brand whose products range from bags, jewelry and perfume to scarves, sunglasses and shoes.

“We believe the Reed Krakoff label will define new American luxury, which has a distinctive aesthetic at an attractive price point,” Frankfort said.

Coach is funding the brand, which will be sold in a small number of stand-alone stores, and a limited number of boutiques and specialty stores. It will not be sold in Coach stores.

Like other fashion brands, Coach has seen sales and profits tumble in the recession as consumers curb spending. In response, it has rolled out a line of lower-priced handbags that will help cut its average handbag price from $325 last year to under $300 this year.

The new Reed Krakoff line expands Coach’s reach into clothing, which will range in price from $495 to $1,195. The line also includes accessories, jewelry and handbags.

Coach sells a few limited-edition handbags that cost thousands of dollars, but the bulk of its higher-end bags still cost less than $900.

Pedraza said Coach has the skills and resources to execute a higher-end brand, just as Japanese car maker Toyota executed its Lexus brand.

But he cautioned that the market for designer clothing is “far more challenging and far more competitive” than handbags.

MULTITASKING

Coach said investments, including the Reed Krakoff line and its expansion in China, will reduce earnings by about 5 cents per share in fiscal 2010, or about the same amount as in fiscal 2009, which ended in June.

Independent retail analyst Jennifer Black said Krakoff, who joined Coach in late 1996, has been key to Coach’s creative evolution, and that the risks for Coach include not only the money it is investing, but also the potential to divert his attention away from the core brand.

“Does he plan to be as involved as he was in the Coach brand?” Black asked.

Krakoff, who has a degree in Fashion Design and a Bachelor of Arts in Economics and Art History, has worked for Anne Klein, Ralph Lauren and Tommy Hilfiger. He has published several books of photography and is involved with New York’s Cooper Hewitt Museum and Whitney Museum.

Coach executives, who are known in the industry for doing extensive data analysis and market research, said there are separate design teams for Coach and the Krakoff brand and that Krakoff has already been splitting his time for a year.

“We’re very pleased with his ability to handle both responsibilities,” said Frankfort, adding that Krakoff’s line will complement, rather than compete with, Coach merchandise.

Needham & Co analyst Christine Chen said most designers like to pursue personal ventures, and she dismissed concerns that the new line will drain creative energy from Coach.

“Great designers can multitrack. Look at what Marc Jacobs has done for both his own line as well as Louis Vuitton.”

She also cited Karl Lagerfeld having his own business while designing for Chanel, and how Prada and Gucci began as handbag makers but now have successful clothing businesses.

“I think this it’s going to be a very smart yet contained effort at pursuing additional profitability,” said Barclays Capital analyst Robert Drbul. He said Coach has successfully introduced more expensive — and more profitable — handbags over time.

By Martinne Geller and Nicole Maestri; additional reporting by Ben Klayman in Chicago; Editing by Matthew Lewis, Phil Berlowitz

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July 14, 2009

Chinese High Net-Worth Consumers Rank “Best of the Best” Luxury Brands in Six Categories

Posted in Automobiles, China, Fashion, Handbags, LBSI, Press Releases, Shoes

(NEW YORK) July 14, 2009 - The Luxury Institute reported today results of the “Best of the Best” luxury brands in China based on the 2009 Luxury Brand Status Index (LBSI) survey, which identifies the top brands that deliver true luxury based solely on the unbiased ratings of wealthy Chinese consumers. The following six luxury categories were rated: Women’s Fashion (29 brands), Women’s Shoes (18 brands), Handbags (27 brands), Men’s Fashion (25 brands), Men’s Shoes (25 brands) and Automobiles (20 brands).

Which luxury providers deliver the best combination of quality, exclusivity, customer experience and peer prestige in China?

The “Best of the Best” are: (LBSI score out of 10)

Women’s Fashion

Prada- 8.77

Yves Saint Laurent- 8.75

Hermes, Gucci and Dolce & Gabbana (tied)- 8.68

Women’s Shoes

Ferragamo- 8.69

Gucci- 8.66

Hermes- 8.64

Handbags

Hermes- 8.93

Lulu Guinness- 8.77

Ferragamo- 8.76

Men’s Fashion

Giorgio Armani- 8.74

Louis Vuitton- 8.68

Dior Homme and Paul Smith (tied) - 8.54

Men’s Shoes

Louis Vuitton- 8.66

Versace- 8.51

Giorgio Armani, Brian Atwood and Gucci (tied) - 8.48

Automobiles

Porsche- 8.79

Mercedes-Benz- 8.72

BMW- 8.70

“China is now the most important luxury market for near-future growth for luxury brands,” said Milton Pedraza, CEO of the Luxury Institute. “In some ways, Chinese luxury consumers covet many of the same brands as the Japanese. In other ways, they tend to rate luxury brands much higher, yet differentiate far less between brands than their more experienced Japanese counterparts. Early movers who flawlessly execute on the new luxury fundamentals and ignore the ‘back to basics’ movement will have the advantage because the luxury game in China is still wide open, therefore luxury brands will have to go to a new, innovative level; making China a wonderful laboratory for global innovation.”

The proprietary Luxury Brand Status Index (LBSI) survey is the only unbiased measure of the prestige of leading brands among wealthy Chinese consumers. A national sample of 600 wealthy Chinese consumers, with a minimum household income 1 million Chinese Renminbi (or 147,000 U.S. Dollars) and an average household income of 381,000 U.S. Dollars was surveyed online.

About the Luxury Institute (www.LuxuryInstitute.com)

The Luxury Institute is the uniquely independent and impartial ratings and research institution that is the trusted and respected voice of the global high net-worth consumer. The Institute provides a portfolio of proprietary publications and research and consulting services that guides and educates high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates the LuxuryBoard.com (www.LuxuryBoard.com), the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

For Further Information, Please Contact:

The Luxury Institute, LLC
Martin Swanson
Business Development
Phone: (914) 909-6350
E-mail: mswanson@luxuryinstitute.com

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June 4, 2009

Japanese High Net-Worth Consumers Rank the “Best of the Best” Luxury Brands in Six Categories

Posted in Automobiles, Fashion, Handbags, Japan, LBSI, Press Releases, Shoes

(NEW YORK) June 4, 2009 - The Luxury Institute reported today the results of the “Best of the Best” luxury brands in Japan based on the 2009 Luxury Brand Status Index (LBSI) survey, which identifies the top brands that deliver true luxury based solely on the unbiased ratings of wealthy Japanese consumers. The following six luxury categories were rated: Women’s Fashion (29 brands), Women’s Shoes (18 brands), Handbags (30 brands), Men’s Fashion (22 brands), Men’s Shoes (18 brands) and Automobiles (20 brands).

Which luxury providers deliver the best combination of quality, exclusivity, customer experience and peer prestige in Japan?

The “Best of the Best” are: (LBSI score out of 10)

Women’s Fashion
Hermes- 7.38
Chanel- 7.20
Louis Vuitton- 7.01
Women’s Shoes
Manolo Blahnik- 8.18
Jimmy Choo- 7.58
Hermes- 7.45
Handbags
Hermes- 7.76
Louis Vuitton- 7.24
Chanel- 7.20

Men’s Fashion
Ermenegildo Zegna- 7.08
Giorgio Armani- 6.97
Louis Vuitton- 6.71

Men’s Shoes
Salvatore Ferragamo- 6.82
Versace- 6.59
Giorgio Armani- 6.38

Automobiles
Mercedes-Benz- 7.47
Porsche- 7.21
Lexus- 6.99

“Japan continues to be a critical market for luxury due to its highly discerning and still affluent consumers,” said Milton Pedraza, CEO of the Luxury Institute. “The Luxury Institute conducts more surveys globally with wealthy consumers than all other entities in the world combined, and we also clearly see that luxury is no longer ‘back to basics’ .While some are busy predicting the death of luxury around the developed world, we predict that luxury will regain its luster, and with a vengeance, when truly wealthy consumers fatten their wallets again and can focus on acquiring the best. It is a historical fact that luxury is cyclical and dramatically outperforms in up cycles and dramatically underperforms in down cycles. We predict that savvy Japanese wealthy consumers will not be fooled again by faux luxury brands.”

The proprietary Luxury Brand Status Index (LBSI) survey is the only unbiased measure of the prestige of leading brands among wealthy Americans. A national sample of 600 wealthy Japanese consumers, with an average household income of ¥50,000,000 Japanese Yen (or $525,000 US Dollars) was surveyed online.

About the Luxury Institute (www.LuxuryInstitute.com)

The Luxury Institute is the uniquely independent and impartial ratings and research institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications and research and consulting services that guides and educates high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates the LuxuryBoard.com (www.LuxuryBoard.com), the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

For Further Information, Please Contact:

The Luxury Institute, LLC
Martin Swanson
Business Development
Phone: (914) 909-6350
E-mail: mswanson@luxuryinstitute.com

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May 11, 2009

Third Annual “Handbag Awards” in June; Finalists Selected

Posted in Fashion, Handbags, Shoes

Luxury Institute CEO, Milton Pedraza will be one of the presenters at the 2009 IHDA (Independent Handbag Designer Awards) taking place in NYC June 17, 2009

New York, NY (PRWEB) May 9, 2009 — Handbag Designer 101, the handbag designer resource, announces today the long awaited results of the finalists for the Independent Handbag Designer Awards ™ Now with Shoes. Over 600 applications were received from around the world ranging with diverse backgrounds from North Dakota to Mongolia to Finland. The Independent Handbag Designer Awards is the only design competition of its kind in the world for handbag designers to receive credibility and recognition to stand out in today’s competitive accessory market. The winners will be announced on June 17th at the IHDA event at the New York Historical Society. The live Finalist Announcement can be seen at: http://www.youtube.com/watch?v=jINHPgdQVdU

“These 35 designers whether they are established or emerging, share a common passion, commitment and creativity to make a unique handbag while being role-models for entrepreneurship and small business,” says Emily Blumenthal, founder of Handbag Designer 101 and the Independent Handbag Designer Awards. “Each designer is well deserved in their recognition for in each category of Best Student-Made Handbag, Best Handmade Handbag, Most-Socially Responsible Handbag, Best Green Handbag, Best Use of Swarovski Crystallized (™) Elements, Best Show in Overall Style and Design and Best Handbag in Overall Style and Design.”

These finalists were chosen by a preliminary judging panel of Handbag Designer 101. A Judging Panel consisting of Famed Handbag Designer and 2007 IHDA Lifetime Achievement Recipient of 2007, Carlos Falchi, Lisa Smilor (Associate Director for the Council of Fashion Designers of America: CFDA), Lincoln Moore, (SVP DMM, Accessories, Saks Fifth Avenue), Sam Edelman (CEO of Sam Edelman), Stephan Toljan, (CCB Vice President Market Management of Swarovski), Devi Kroell (CEO & CCO for Devi Kroell), Christina Polychroni, (Director of Marketing for Korres Natural Products), Katie Boertman (Trade Marketing Manager for Singer Sewing Company), Tina Aldatz (President of Foot Petals), Meghan Cleary (Miss Meghan: America’s Shoe Expert) and Julia Poteat (Assistant Professor of Fashion Methods for Parsons The New School for Design) will decide who has the “Top Handbag and Shoe Design” and select a winner from each respective category. These finalists, whose bags and shoes all must be made under their own label, representing a wide range of styles and designs, in each category are:

Best Student Made Handbag - These finalists’ bags are students who have successfully started their lines while still in school. This award will be presented by Devi Kroell, CEO & CCO for Devi Kroell.
-   Bridget Duffy: Bridget Duffy Originals, Philadelphia Univeristy
-   Carmen Talavera: Carmen Talavera, Mercy Jackes College
-   Rachel Esswood: Rachel Esswood, Cordwainers at London College of Fashion
-   Daisy Ho: Hodaze, London College of Fashion
-   Susan Jina Lee: Movement, Parsons The New School for Design

Best Handmade Handbag - These finalists’ must be sewn, crocheted, knitted where the design themselves is making their bag by hand or machine. This award will be presented by Katie Boertman, Trade Marketing Manager for the Singer Sewing Company.
-   Alexis Campagna: Antibellum
-   Brenda Zheng: Brenda Zheng
-   Nanang Agung Rahmanto: Muttox 9
-   Lauren Finelli: LaurNelli
-   Darren Wallace, Darren Wallace

Best Green Handbag - These finalists’ that are made out of sustainable, recycled or organic materials. This award will be presented by Christina Polychroni, Director of Marketing for Korres Natural Products.
-   Allison McGowan: TEICH
-   Linda Wong: Canopy Verde
-   Karin Maislinger: kontiki
-   Andres Stickney: DRES
-   Nazly Villamizar, Ecoist

Most Socially Responsible Handbag - These finalists’ meet certain ethical and moral standards in regards to production, employment and philanthropy while impacting the local culture. This award will be presented by Kendall Farell, Executive Director of Bottomless Closet.
-   Pauline Lewis & Le Thi Hong Tu: oovoo design, Made in Vietnam
-   Cherry Kwunyeun: Blumpari, Made in Thailand
-   Katie Smith: Angel Jackson, Made in Bali
-   Clare Elsmore-Dodsworth: Gifted Label, Made in Mongolia
-   Maria Estrada: IGNES Handbags, Made in Uruguay

Best Use of CRYSTALLIZED™ - Swarovski Elements
This category represents the best executed handbag in overall style and design and will be Stephan Toljan, CCB Vice President Market Management of Swarovski.
-   Heather Choi: Farfaraway
-   Michele Gresh: Modern Unity
-   Ana Niculae: Imperfect Indulgence
-   Lorna Nixon: Lorna Nixon
-   Erin Vorhees: Kempt

Best Shoe in Overall Style and Design - This category represents the best executed shoe in overall style and design and will be presented by Sam Edelman, CEO of Sam Edelman and Tina Aldatz, President of Foot Petals.
-   Raphael Young: Raphael Young
-   Minna Parikka: Minna Parikka
-   Jamie Presson: J.L. Presson
-   Marti Zabell: Marz
-   Weronika Lesniak: Weronika: Lesniak

Best Handbag in Overall Style and Design - This category represents the best executed handbag in overall style and design and will be presented by Lincoln Moore, DMM, Handbags, Saks Fifth Avenue.
-   Minna Parikka: Minna Parikka
-   Johanna Baccardo: Beautiful People
-   Emily Cheetham: Cheet London
-   Alice Tapajos: Zibba
-   Adriana Castro: Adriana Castro

The final category to be celebrated is “Audience Fan Favorite” where fans can vote for their favorite independent handbag or shoe designer based on the 35 finalists on Handbag Designer 101. This award will be presented by Founder and Creator of Handbag Designer 101 and the Independent Handbag Designer Awards, Emily Blumenthal. This designer that received the most votes will be announced the night of June 17th at the IDHA event with the other category winners. These aforementioned category finalists’ work can be seen at http://www.hbd101.com/finalists_2009.

Celebrated British designer Lulu Guinness will receive the IHDA ICONOCLAST Award this year for her 20 years in accessories design. Lulu Guinness famous for her exquisite, witty handbags and accessories originally launched her company in 1989 and instantly became a “must” in every fashion aficionado’s international address book. To celebrate the brand’s 20th Anniversary Year, Lulu Guinness will be releasing a new limited collection of her legendary Rose Baskets, which will be on display at the night of the IHDA. Throughout the year, Lulu will be collaborating with famed and up & coming artists to produce limited edition specialty items to be sold at the Lulu Guinness stores worldwide.

The 2009 IHDA Sponsors include CRYSTALLIZED (™) - Swarovski Elements, Singer Sewing Company, WWDMAGIC, Parsons The New School for Design, Pantone, Saks Fifth Avenue, Sam Edelman, Foot Petals, Devi Kroell, The Fashion Center, UK Trade and Investment, Korres Natural Beauty, The Garment Industry Development Corporation, The Luxury Institute, Ripe Ideas, Soho House NYC, Red Branch Public Relations, Collective-E, Miss Meghan, Rosangel from Gran Centenario, Kristof Wines, Shine to Go, Megan Howard Design, Smart Water, enSof Graphics, M&J Trimming, Leather Suede Skins, Rosen & Chadick Fabrics, Verve NYC and Bottomless Closet.
For complete information or to purchase tickets for the Independent Handbag Designer Awards, check out www.handbagdesigner101.com or www.hbd101.com.

Handbag Designer 101, the handbag designer resource, was inspired by the need for the handbag designer, aficionado and fan in all of us as one knows we can never have too many bags. Handbag Designer 101 and Independent Handbag Designer Awards trademarks are owned by handbagdesigner101.com, a privately held company based in New York City.

Today’s HB101: http://www.handbagdesigner101.com/designer
Bag Trends: http://www.handbagdesigner101.com/trends
Celebrity Bag Watch: http://www.handbagdesigner101.com/celebrity
Jobs & Services: http://www.handbagdesigner101.com/jobs
The Independent Handbag Designer Awards Now With Shoes: http://www.handbagdesigner101.com/independent_handbag_designer_awards
IHDA Ticket Purchase: http://www.handbagdesigner101.com/handbags?s=processCard
Contact: http://www.handbagdesigner101.com, http://www.hbd101.com, 1-866-206-9067 x2342

http://www.prweb.com/releases/2009/05/prweb2400054.htm

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February 7, 2009

Looking Gorgeous: What Women Won’t Give Up

Posted in Fragrance/Cosmetics/Skin Care, Handbags, Luxury Market, Retail

Heidi Brown and Jenna Goudreau
02.05.09
Forbes.com

There’s a drumbeat of bad news on the retail front. Circuit City is closing its doors for good. Detroit can’t pay its customers to buy its cars. Even Wal-Mart is saying its value-loving customers are keeping their wallets closed.

Most shoppers have cut way back. Those who, before the downturn, bought so-called “aspirational” brands–Gucci purses, say–are paring down and making items last longer. But even in tough times, there are some things a girl just won’t give up.

We all want to keep ourselves looking good–for professional and personal reasons. Plus, it’s just fun to indulge, even if it’s in something little like a luscious Chanel lipstick.

“During the Depression, we saw the ‘Lipstick Effect,’” says Northeastern University professor of marketing Nancy Upton of the increase in cosmetic sales, particularly lipstick, despite buyers’ financial hardship. “We see people making economically irrational decisions to lift their mood.”

Because the price point is lower for many women, “cosmetics offer immediate gratification,” explains Upton.

Susan Blond, president of Susan Blond, Inc., an entertainment public relations firm, feels that looking good is essential to her job and keeps her spirits high. Though she’s cut back her beauty regime–giving up pedicures, making fewer trips to the hair salon and “reinventing” old Chanel suits–she still makes the occasional splurge.

“I must confess, I did splurge on a MAC lipstick and gloss at Henri Bendel,” Blond says, “but in my business you have to feel confident and look fabulous.”

As for bigger-ticket items, women are opting for traditional rather than trendy. “Women are not as focused on the ‘it’ bag now,” explains Milton Pedraza, who heads the Luxury Institute, which conducts research on the high-end market. “They’re buying the classics–Akris suits, Birkin bags, Chanel.”

In other words, they’re looking for enduring styles and quality materials, bucking trends and mediocre craftsmanship.

“In this new economy, it’s critical to choose investment pieces wisely,” says Niki Leondakis, COO of Kimpton Hotels & Restaurants. She prefers high-quality bags that “don’t scream a year or season,” like Bottega Veneta, Nancy Gonzalez and Coach. She chooses classically cut jackets and timeless fabrics like cashmere as staples of her wardrobe and pulls together outfits with less expensive accessories.

“I’m still buying luxury brands,” admits Leondakis, “but definitely fewer items and with a newfound discipline to hold out for a sale.”

Leondakis is not alone. Across the country, women from every income bracket are spending less, forcing companies to adapt. The windows of Fifth Avenue stores in Manhattan now display 75% discount signs and many beauty lines are offering more for the dollar.

Frédéric Fekkai unveiled a $30 at-home hair coloring kit (now on sale) a considerable savings from an in-salon color treatment that can run about $400, and skin-care line Terralina provides complimentary home delivery and sales to encourage customers to buy consistently.

Brands like Eva Scrivo and Chantecaille don’t want to lose their luxury status by slashing prices, so instead are offering customer rewards: on-the-house spa days, facials and private color consultations with renowned hair and makeup artists.

While professional women are booking fewer vacations and buying less for their homes, they’re not likely to scale down to inferior beauty brands. “These women say price is not a factor,” says Karen Grant, a vice president at NPD Research and a global beauty expert. “They may buy less and shop less frequently, but they’re not as apt to switch to a lower-priced brand.”

Since looking good on the job is often critical for women, beauty and style items tend to trump other luxuries. Kate Wilkinson, account executive at MS&L Worldwide, now skips Starbucks but can’t give up her bi-weekly mani/pedis.

Read the full article at:

http://www.forbes.com/2009/02/05/economy-makeup-fashion-women-style_0205_beauty.html

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