Luxury Briefing Issue 171

1
luxury
brieng.
KATE PATRICK EDITOR
EDITOR
Kate Patrick
E: editorial@luxury-briefing.com
Editorial: Lucy Reiter
Designer: James Randall
Project manager: Kathryn Giornali
SUBSCRIPTION MANAGER
E: enquiries@fms.co.uk
Image: A frst standalone retail outlet
for designer Ian Stuart has opened its
doors at the National Trust Blewcoat
building in Londons Victoria.
WhensharepricesatmajorluxuryconglomerateshitablipLVMHdropped7.2%oneday
thismonth,withRichemontdown3%andKeringdown3.7%thefrstthingtolookatiswhat
couldbedeterringthetwotopbuyinggroups:ChineseandRussians.Fortheformer,theresa
growinglist:politicalprotestsinHongKongtobeavoided,thecrackdownoncorruptgifting
(particularlyafectingluxurywatchsales),astrongeurocausinggoodsandservicestobemore
expensivefortourists,evenfearofmugginginParis,Reuterssaid.TheRussiansaretravelling
lessandspendinglessinEuropeduetotheUkrainecrisisandfallingrouble.Salesgrowthin
theluxuryindustrybouncedbackafterthefnancialcrisis,buttheresachillintheairaround
theviewthatbuoyantdemandfromChinamayneverreturnevenwithvisarequirements
slowlyrelaxingandonlymodestgrowthcanbeexpectedfromnowon.
Aninterestingbigpicture,whichmakesitallthemoreimportantforbrandstounderstand
asmuchaspossibleabouttheworldswealth.AtChristies,record-breakingsalesofpostwar
andcontemporaryarthelpedpushtotalsalesinthefrsthalfoftheyearupawhopping12%
fromayearearlier,to2.69billionsotheresnoneedtopanic.SarahCormack,partnerat
Withers,ourregularcontributoronlegalissues,writesthismonth(p20)aboutwhatthey
discoveredwhentheysurveyedsomemulti-millionaireandbillionairefamiliesinEurope,
theUSandAsia.Manyareusingtheirwealthtoefectpositivechangesintheircommunities.
Doinggoodfeelsgoodin2014sohavealookatDianaVerdeNietospieceonp22abouther
venture,PositiveLuxury,whichawardsaButterfyMarktobrandswhoaretakingcareofthe
environmentandsocialaspectsoftheirsupplychain.Itcouldbeagoodplacetostart,ifyou
haventalready.
Elsewhereinthismonthsissue,weenjoyedtalkingtoDrErichSchultepioneerof
science-backedskincarewhoseproductsandtreatmentsareincreasinglybeingincorporated
byluxuryspahotelskeentobedeliveringthenearestthingtoamiraclefxtotheirguests.
AndAndrewSmithfromcreativeagencyPartnersAndrewsAldridgeasks:whyaresome
luxurybrandsdigitalexperiencenotlivinguptotheirphysicalpromise?
WehopeyoucontinuetofndLuxuryBriefnganinformativeandinspiringassetto
yourbusiness.
requiredreading
LB171 Magazine cs6 jr.indd 1 30/07/2014 13:37
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Issue 171
MIRACLE WORKER
QMS is a cosmeceuticals business specialising in scientifcally-developed skincare products and treatments. It was
founded in 1986 by DR ERICH SCHULTE, combining his passion for science with a vast experience working as a
surgeon in trauma and cosmetic surgery. The business has a London fagship spa and store, the 22 products are sold in
hundreds of outlets and the treatments are used in spas and hotels worldwide, including at the Mandarin Oriental in
Bangkok for which QMS recently created a bespoke menu of treatments. Dr Schulte does not promise miracles; but its
hard to argue with the logic and science behind his approach. He talked to LB about aspects of his lifes work
LUXURY BRIEFING INSIGHT : DR ERICH SCHULTE, QMS MEDICOSMETICS
Left: Dr Schulte at work in his
laboratory in Baden Baden, Germany
Right and overleaf: the full collection
of QMS Medicosmetics products
and treatments are available at the
agship spa and store in Cadogan
Gardens, London
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How do you describe yourself professionally surgeon, chemist,
businessman?
My profession was craniofacial surgery and traumatology; and my
interest is in bio-chemistry, so thats why I develop all the products
myself, in my own laboratory. Whatever you get from us that is under
my name, I have developed myself in cooperation with other bio-
chemists and professionals. But I started my career in the medical
profession as a traumatologist we did accidents, maxillofacial
surgery, craniofacial everything that is above the neck, including
broken bone structures, and so on. We covered the faces, and from
there it was a short step into cosmetic surgery because our goal was
to reconstruct faces in combination with controlled wound healing
to avoid unwanted scarring and thats how we came to collagen.
Without collagen there is no wound healing. Coming from there,
I discovered the virtues and properties of the collagens and we put
them in our cosmetic products.
What were the circumstances behind the founding of QMS
Medicosmetics?
When we do a facelift, for example, what you do is cut the skin and you
stretch it and thats it; but you never, ever change the texture of the
skin. If you cut into old skin, the risk of unwanted secondary healing is
much bigger than when you have well-nutritioned, well blood-supplied
skin. So what I did and what I still do in my clinic is that every
patient who wants to have surgery has to undergo a special pre-
treatment for three months with the fruit acid and the collagens to
condition the skin, so that when we cut, we have better skin. Then,
later, we have less risk of unwanted secondary healing. So, by doing
this, after one month patients were saying their skin felt so much
better and were asking where they could buy the product. I said you
cannot buy the product; its only made for you by me. Twenty-two
years ago we decided to make a small in-house production of this fruit
acid and collagen set. That is how the business came about. It was
never my intention to do what Im doing now. Luckily enough, as Im
now retired as a surgeon, I can travel around and do more with this.
From that small beginning, whats the extent of the business today?
Were quite international. We started to build it up in Germany
and we were only present there, but we grew to about 450 outlets,
and now you fnd us in virtually every fve-star hotel in Austria and
Switzerland, then in Holland, Belgium and we retail the products
in stores, hotels and beauty spas and we manage the treatments in
partner spas.
We started to wholesale our products, but we felt that if a store
was having a promotion month and you were in a super position
it was easy for us to sell QMS like hot cakes but when you were
relegated to a corner somewhere then things went down. So I said,
if we want to demonstrate to people what we can do, we have to run
a spa where you can control what you do. And if you want to be really
international you have to go to London, because thats the gateway
to the world. Thats why, four years ago, we were lucky to get this
place here in Cadogan Gardens, and we put the treatments and the
retail sales together so that when people come they can see what
QMS is about, what we stand for, and we can explain the treatments
properly; you can see the clean, medical environment people have a
better impression of what we do. We just have the one spa under our
name, in London.
Then we work with hundreds of other spas like Mandarin
Oriental, Bangkok, where we train the therapists. Some have the
signature QMS treatments as part of the spa menu some will have
three, some will have 10. Beauty by Mandarin Oriental is, in fact,
a full collection of QMS products and treatments. We also develop
signature treatments for example, in the Alpina in Gstaad we have
diferent treatments from whats in the Anassa in Cyprus. For the
Mandarin Oriental we created treatments with a bit of far eastern
character. We can do it because we have control of the company
its not a big company, its mine, so I can make quick decisions.
Do you also own all the research & development facilities?
Yes, everything. Its all in Germany, near Baden Baden, including
the laboratory. Im also on a board of advisors for the government,
so were advising on legislation. We are literally at the top of the
pyramid. We have a certifcate of good manufacturing practice
and my company has a licence to produce pharmaceutical-grade
cosmetics as well. So it cant be better.
If you were to expand further, would it be through products or new
spas or retail outlets?
Its not a question of more products. If you have a golf bag, you have
14 clubs. With the 14 clubs you can do everything you need to do in
golf. We have around 22 products which I designed, and with these
22 products, in the right order, used in the right way, you can address
any cosmetic skin problem. All the technology is bang up to date,
and we adapt the formulations but its always top of the range.
So were concentrating on new markets and customers for the
products we have. Were just going into the Middle East Dubai is
the next location.
Is the best way for you to access new markets through hotels?
Its one of the best ways because theyre very international and it
helps that we can then avoid all the logistical issues. Also, in the case
of Thailand, the Mandarin Oriental in Bangkok is a wonderful hotel
with a huge local client database. Experiencing QMS through the
spas is a defnite advantage, but we do also sell very well at retail.
The US is a market that we are mainly approaching on the retail side
it depends what works in each case. Germany is our biggest market,
but South Africa is huge. Its been interesting here in the UK because,
as a brand, this wasnt typically English in style. But now were
operating a great client base here, and the second biggest group we
have is aged 25 to 32, because they really like the results.
Can you describe a typical customer to the London spa?
Its actually very hard to describe that, because the one thing that
everyone loves about QMS is that its very personal. People come
to the spa because theyre getting married, having a baby, working
very hard, have a specifc concern or maybe just because theyre a
man and they feel comfortable here. A lot of businesswomen, actors
this is because they are on HDTV and need their skin to look very
good, but theyre not going to get into surgery and sportspeople
who are outside a lot. We have a wealth of people but the core value
is about the health and wellbeing of their skin. Its people genuinely
concerned about skincare and skin rejuvenation. This actually cuts
across all international markets and can cover all ages from 18 to
84. And, in fact, people interested in pursuing facelift surgery rarely
come here.
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Issue 171
know they have to do some exercise, shouldnt smoke or drink,
should go to bed early. When people are here and you discuss it,
its very easy they say yes, you are right, and they leave and do
the opposite. Of course the ideal person would be working out,
drinking water, taking vitamins... but they wont do it. They want
to sit in a bar, drink, and the next morning look good. This is what
youre fghting against. But there is no quick fx. What you see on
the TV channels, promoting cream that will make you look 25 years
younger there is no such thing, and no short cut. We can improve
the metabolism of the skin cell, force it a little bit to work better, but
not overnight.
How else do you promote the brand?
We collaborate with other brands anything from companies
involved in the wedding industry, to local businesses, to big
automotive companies like Bentley. Were also in discussions with
another brand right now regarding the possibility of a co-branded
sun-focused range. Initially we wanted to get the brand a little more
known as QMS, but weve been approached by this particular brand
about developing products around getting your body ready for the
sun, being in the sun and post-sun.
Westartedtowholesaleourproducts,butwefeltthatifastorewashavingapromotionmonthandyouwereina
superpositionitwaseasyforustosellQMSlikehotcakesbutwhenyouwererelegatedtoacornersomewherethenthings
wentdown.SoIsaid,ifwewanttodemonstratetopeoplewhatwecando,wehavetorunaspawhereyoucancontrolwhat
youdo.AndifyouwanttobereallyinternationalyouhavetogotoLondon,becausethatsthegatewaytotheworld
Have you developed products that take into account cultural diferences
in skincare and approach to ageing?
The interesting thing we found in Asia is that the therapists at the
Mandarin Oriental, at the end of their training, said they had never
had a European brand which could deal with ageing skin. I had to
develop some products which took into account the fact that oriental
skin is much more sensitive. In our normal exfoliating fuid we use
10% fruit acid which you can put on any caucasian skin; we cannot
do that on Japanese skin, so I developed for the Far East special
things which we use for irritated skin. A woman from the western
world will not mind if you tell her it will sting a bit; the Chinese
and Japanese will never tolerate it. So you have to be very careful
what you do. We developed special things for the Far East market
years ago, and we discovered we could use it on the irritated skin of
caucasian people.
Do you discuss nutrition and exercise with clients, as part of a route to
better-looking skin?
We do. But whoever invents a pill that makes you ft without having
to do anything would be a billionaire overnight. Everybody wants
perfect results without putting any efort in. We have people who
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What is your approach to sun-protection?
The sun is what ages your skin, so an SPF15 is perfect and we have
it in our products. There is a total misunderstanding surrounding
sun protection factors. An SPF15 takes, roughly, 82% of the harmful
UV rays out. An SPF30 is not double the potency it takes maybe
85% out. If you go to a sunblock 50 then you get 95% out, but the
higher the SPF, the less nice the cream feels that is because of the
flters. The cheap ones use any absorbents, like zinc. We use selective
flters. A simple explanation for this is that you have two sorts of UV
rays: UVA (ageing) and UVB (tanning) you want UVA out because
it destroys the collagen bundles, so we have selective flters which
repel, not absorb its a diferent thing. It repels the UVA but lets
fractions of UVB through, so you have tanning but not ageing. 65%
of your skin proteins are collagens responsible for retaining moisture,
and that is what depletes. Starting from age 25, the bodys own
collagen is getting less in quality and quantity. What the body doesnt
produce, we replace its like collagen replacement therapy.
How did you create a tinted cream that doesnt look fake?
The most dif cult thing was to fnd the pigment we call it intelligent
pigment that adjusts to diferent skin types. You never will look
painted or fake. This works on caucasian, Asian or black skin South
Africans love it, especially the men, because they are outdoors a lot
and they drive open-top cars. Its incredible if you go on holiday
it will take you from day one when you look pale to the end of the
holiday. A lot of businesswomen love it for fights they take their
make-up of and put it on as moisturiser. Its a standalone product
doesnt have to be combined with moisturiser or foundation.
Does the spa ofer any more invasive micro-dermabrasion treatments?
Those treatments where you sandblast the skin, or needling, Im
totally against. We stand for very smart techniques and methods
to get ingredients deep into the skin without destroying the barrier
function of the skin. With all this mechanical sanding down and
needling, where you see blood, they want to make you believe this is
the way to get ingredients into the skin but its so ridiculous and you
end up with subcutaneous scarring which actually destroys your skin.
In a beauty salon you never should see blood Im strictly against it.
The future will tell me that Im right because the longterm results
will be crucial. Its very important, especially today where there is
pollution or access to germs, virus, fungus all the things you dont
want. If you use these aggressive methods, you know what happens?
You get post-infammatory hyper-pigmentation when you maltreat
the skin you get an infammation and the body starts to increase
healing but it starts to tell you have to produce more pigment and
then you get spots. So it may be wrinkle-free but it will also be brown
with hyper pigmentation.
A lot of people coming here have been using fake tan for too long.
If you use fake tan you degrease the skin, or these products dont
hold. Then you have to recover it.
Where do you source the raw ingredients?
All over the world mainly now they come to us. Once a year you
have the world exhibition of raw ingredients. Last year it was in
Barcelona, this year it was in Hamburg, next year it will be in South
America, then Japan. Its nice to see all these people for four days
every year; but equally it is so easy today with the internet you
have a conference, you can talk to someone online. Through the
fairs weve met some amazing guys from San Francisco who are
working on a product they havent got it quite right yet its a
cream base, you apply it, and the moment it comes into connection
with skin and warms up to 36 degrees it becomes a fuid and goes
into the skin Ive never seen something like it. The sensation is
like putting a sort of paraf n on and it melts on the skin. It will work
particularly as a lip balm.
Tell us about your groundbreaking ISE treatment?
We won the top award for this at the Gala Spa Awards in Baden-
Baden this year an award that we think is worth having because
only frst-class products and spas are considered. There were
hundreds of entries across the seven awards and we won the
Treatment Concept category with our Ion Skin Equalizer Treatment.
Its a 90-minute treatment which starts with a lot of preparation
and uses Ion Skin Equalizer which is designed to accelerate the
rapid fow of mineral ions, reviving the look of the skin. If you ionise
something then you have a negative and positive load, an electric
current. Its a technique to get some ingredients into the skin. I did
a two-component product, zinc ions and copper, and together with
a mediator you create a galvanic micro-current which lines up the
molecules and gets them straight into the skin. I dont think theres
anybody else in the world who has done that.
What are you currently working on?
Something very special actually we were nominated for a prize
at the Raw Ingredient Fair; were working on the biological ageing
process to slow it down. Ageing is not a linear process: its an active
phase, followed by a passive phase. To explain it simply, in one hour
you might have 10 minutes of active ageing, followed by 50 minutes
of passive. So you only have to address the active phase to slow down
the ageing. This is what we are working on: to stop the active peaks of
chrono-biological ageing. That is very, very promising it will come
as a serum and it will come out in November or the beginning of
January. From thinking about getting the raw ingredients and doing
all the tests it takes about two years to develop a product.
Whom do you view as the main competition?
It depends on the market a bit, but I think whats very good is
La Prairie and the guys from Kanebo are very good. Shiseido is
over-estimated. There isnt actually somebody exactly like us
our collagens are 70% natural collagens, theres no one doing the
combination of collagens and science. But I always say that other
mothers also have beautiful daughters and that there are a lot of
roads leading to Rome... Its just that we do things our way we
are the only people who do it this way and other people copy us,
like Coca Cola, and we are very successful, but we dont promise
miracles. We just perform them...! When you do a treatment you will
come out and say this man is right.
WWW.QMSMEDICOSMETICS.COM
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INDUSTRY REPORTS
Beauty & Wellbeing
1
The Organic Pharmacy new
New York store
London-based Organic Pharmacy has
strengthened its presence in the US with
the opening of a new store in New Yorks
Bleecker Street. The retailer, which was
founded by Margo Marrone, a pharmacist
and homeopath, is already in fve Barneys
stores in the US as well as a standalone store
in LA. We wanted a presence in New York
where we could give customers the whole
experience. Bleecker Street has such a great
vibe, has great energy and there are other
great brands there as well, says Marrone.
It also feels quite European. So when
the unit came up, we jumped at it. The
Organic Pharmacy is known for its toxin-
free, homeopathic, organic solutions across
make-up, skin and bodycare, plus herbal
supplements. There is also a dedicated area
ofering super-fast treatments as well as
skin and make-up consultations. Everyone
in New York is so busy, adds Marrone.
So were targeting the treatments to be
super-fast and super-efective.
2
Neom Organics
relaunches
Neom Organics is relaunching with a
new look and additional fragrances in its
collection. The rebrand is modern and
clean, with each Neom scent falling into
one of four treatment categories: Energise,
Relax, De-stress and Happiness. It will also
introduce new Body and Hand blends and a
streamlined candle collection.
3
Lilou et Loic new home
fragrance
This summer will see the launch of luxury
home fragrance, bath and bodycare brand
Lilou et Loics new range for men. Lilou et
Loic Homme consists of fve products:
shaving gel, de-stress aftershave balm, hair
& body wash, hand & body lotion and bath
oil. The brand, which sells candles infused
with high quality oils, room difusers, body
butters, scrubs and bath foams, has also
extended its range of scents for the summer
positioning stems from having one-to-one
relationships with customers. Ofine, thats
about the conversation they have with an
advisor in a department store. Online, we
needed to ofer the same personalised
experience, and that was a challenge too.
6
John Barrett new salon
New York Citys Bond Street is the location
for hair stylist John Barretts new salon, due
to open its doors later this year. Barrett,
known for his penthouse salon at Bergdorf
Goodman, has kickstarted an expansion
plan that will see six new John Barrett salons
open across the US, including Palm Beach
later this year, followed by other locations
in Manhattan, Washington DC, Dallas and
Las Vegas. The 3,000 sq ft space in the
New York NoHo neighbourhood will be
designed by architect Daniel Romualdez
and will ofer premium haircare products,
specialist services such as the Barretts
Braids and Ponytails Bar, and VIP treatment
areas. We are now taking the magic we
created at the Bergdorf Goodman salon
and bringing it to life across the country
as we evolve and expand the John Barrett
brand, says John Barrett, chairman and
creative director of John Barrett Holdings.
The new location enables us to grow in
new directions and expand our oferings.
I am excited and ready for this next
phase of growth. The store stands on the
site of the old Bouwerie Lane Theater.
7
Luxe Den spa
Luxury Manhattan hair salon Luxe Den
has announced the opening of its new
spa, complementing the salons hair and
beauty ofering. Six types of massage
are available as well as body treatments
such as the Tourmaline Detox and a full
Moroccan Ritual. Beauty products from top
brands such as Aveda, Bumble & Bumble
and Kerastase are also available to buy.
8
Frdric Malle
new boutique
French perfumer Frdric Malle has
launched a new Editions de Parfums
boutique in New Yorks West Village his
second in New York. Designed by Steven
Holl, the store features aluminium foam
(a silvery, textured material) throughout the
interior, covering the walls and ceilings, and
contrasting with the dark walnut furniture.
Among the fragrances available will be
the newly launched Eau de Magnolia,
created by perfumer Carlos Benaim. Malle
launched his niche perfumerie in 2000 in
Paris, inviting nine top perfumers to create
as well as rolling out new packaging. It has
recently launched in Fortnum & Mason and
is looking to expand to a wider selection of
boutiques and department stores across the
UK and Europe. Lilou et Loic was launched
in 2011 by two Scandanavian women, Aldis
Firman and Malin Wright. All products are
created in-house, inspired by their travels.
4
Jo Malone opens in China
Jo Malone London has opened its frst
store in China, at the Mitsukoshi store
in Beijing. The fragrance brand expects
to open a further two doors this year, in
Shanghai and Beijing. We believe that the
understated luxury of Jo Malone London
along with the brands use of high quality
and rare ingredients will appeal to the
very discerning Chinese consumer, says
Fabrice Weber, president, Asia Pacifc at
Este Lauder Companies, which acquired
the brand in 1999. China and our Chinese
consumers continue to play a key role in the
strategy of our company, and the launch
of the Jo Malone London brand reinforces
our commitment to this dynamic market.
Maureen Case, global brand president,
adds: Jo Malone London is the epitome
of British luxury. The dynamic cities of
Shanghai and Beijing, where we will open
our highly anticipated new boutiques,
perfectly refect the innovative spirit of
Jo Malone London. Jo Malone London
is available in 34 countries worldwide: its
frst foray into Asia-Pacifc was Japan in
2008. China remains one of Este Lauder
Companies fastest growing markets.
5
La Prairie
new e-commerce
Luxury Swiss beauty brand La Prairie has
recently launched new e-commerce websites
for the US, Australian and UK markets
and plans to launch an additional 11 online
stores by 2016. The aim of the brand, which
ofers a collection of premium skincare,
colour and fragrance products across 90
countries, is to deliver an immersive brand
experience, including features such as Your
Skincare Advisor, an interactive tool that
guides customers through a personalised
skincare consultation and advises them
on the best products for their skin. France
and Germany will be added later this year,
with a roll-out to China expected for 2015.
Renee Tavoularis, vice-president for global
e-commerce and digital marketing, explains:
What we call the La Prairie world is a
luxury experience that ofers exquisite
attention to detail in product creation and
appearance. With our new websites, we are
able to extend this brand experience to our
digital presence on a global scale. Our luxury
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Issue 171
Peopleapproachedmeforyearstodofragrance,butthatdidntmakesensetome.Idesignshoes.Iknowabouttoes.
WhenIdothelookbooksfortheshoes,Imalwaystryingtofndthebestnailcolourtoworkwiththem.Ievenpainted
thenailswhiteandthentriedputtingPantoneontheminpostproduction,butitdidntworkatall.AndIstartedbypainting
thebottomofmyfrstshoeswithrednailpolish
CHRISTIAN LOUBOUTIN, on the launch of his new beauty line
their own original perfumes giving them
complete creative freedom. The fragrances
were packaged in bottles featuring the
name of the perfumer a frst in an industry
where the credit is usually given to the
fashion house or celebrity. As in all Frdric
Malle stores, the new boutique will feature
portraits of the perfumers, a refrigerated
cabinet for storing the fragrances and
smelling chambers for testing them. Malle,
who is the grandson of Christian Dior
perfumes founder Serge Heftler, says:
My plan to open more freestanding stores
around the world allows me to live my
childhood dream: publishing the work of
great architects in the form of Editions de
Parfums stores. I will have the same sort of
creative relations with architects that I have
with perfumers. I will ask them to design
their dream shop with no compromise, nor
limitation, although this time there will be
a budget. The brands frst New York store
was opened on Madison Avenue in 2010
and there are now three outlets in Paris.
9
Zadig & Voltaire new
fragrance license
Fashion house Zadig & Voltaire has
signed a 15-year licensing agreement with
Beaut Prestige International (BPI) for
the creation, production and worldwide
distribution of its ready-to-wear fragrances.
BPI, which is owned by the Shiseido
Group, will strengthen Zadig & Voltaires
brand portfolio, creating perfumes
for Jean Paul Gaultier, Issey Miyake,
Narciso Rodriguez and Elie Saab. Zadig
& Voltaire has been under license with
Clarins Fragrance Group since September
2010, having entered the perfume
market in 2009 with Volume 1, a unisex
fragrance developed by an in-house team.
10
Beauty Avenue locations
The Dickson Group of Companies will roll
out new Beauty Avenue store locations
throughout Greater China within the
next two years, it has announced. The
frst prototype of the new megastore
beauty retail concept, which opened in
Langham Place, Mongkok in November
2013, was visited by over 1.5 million
shoppers between its opening and
February 2014, according to the company.
Not only did we recognise high market
demand for luxury skincare, cosmetic
and fragrance products conveniently
available in a single location, but an
unmet need for superior customer service
where multi-lingual experts available
at each brand counter cater to each
customers needs, says Beauty Avenue
CEO Sarah ODonnell. Beauty Avenue
is the embodiment of this revolutionary
concept: the broadest range and depth
of product coupled with a personalised
and knowledgeable customer service and
shopping experience. The companys
second Beauty Avenue location will open
at Tsuen Wan Plaza in the New Territories
area of Hong Kong with additional
locations to follow in Hong Kong and
mainland China in 2014 through to 2016.
11
Ginvera launches into UK
Luxury skincare brand Ginvera a best-
selling range in Singapore has recently
launched into the UK. The Ginvera
Green Tea Skincare, which includes the
Exfoliating Marvel Gel and BB Cream,
is centred around formulas that use
traditional Asian ingredients, including
Green Tea extract, and beauty rituals.
Ginvera Exfoliating Marvel Gel is unique
in that it is an exfoliator that is used on
dry skin with dry fngers, while the Nude
Cover BB Cream adapts to the skin tone
throughout the day. The range is available
from Harvey Nichols as well as selected
online boutiques.
12
Dolce & Gabbana skincare
collection
Dolce & Gabbana has launched its frst full
skincare collection adding to its existing
beauty ofering. Developed alongside
P&G Prestige, the range uses a new active,
naturally-developed complex, the Gold
Flavo-Silk Tricomplex, along with olive oil
and Vitamin B3, which the brand claims
delivers moisture, an even tone and healthy-
looking skin. Its the marriage of the
designers vision with the scientifc know-
how of the P&G prestige labs. The line has
clout and credibility, says Dr Samantha
Bunting, the dermatologist who is the
ambassador for the brand. The textures are
fantastic, it has plausible and realistic claims
and its a comprehensive and cohesive
line. The amount of in-vitro and in-vivo
tests, random assessments and blind trials
theyve done is staggering.
13
Nocib own-label
French beauty retailer Nocib, which
has recently been acquired by Douglas,
is extending its own-label ofering
with the launch of a higher-priced,
premium professional make-up range.
The line consists of 40 products and is
structured around three essential steps
of professional make-up application:
bases, colours and fnish. Maylis Grand,
private label manager at Nocib,
says: We wanted professional but
accessible make-up for all women in
terms of understanding and price.
Nocib launched its own label in
2012 and now ofers bath products,
skincare, accessories and make-up.
14
LOral plans China
expansion
Cosmetics giant LOral is planning a big
push into China with its luxury brands
over the next two years, particularly into
the smaller, tier 3 cities, according to the
Paris-based company. Over the past decade,
the luxury division of the company, which
encompasses Lancme, Helena Rubenstein,
Kiehls and Giorgio Armani, has doubled in
sales every four years in China, according
to Nicolas Hieronimus, head of LOrals
luxury division. We are bound to continue
at the same pace, he adds. In 2014 or 2015,
Chinese consumers will be the number one
consumer for LOral Luxe in the world.
This includes Chinese tourists making
purchases outside the country. Jean-Paul
Agon, chairman and chief executive of
LOral , says: The penetration of luxury is
just beginning we are building the future
of luxury in this country.
Face off
US beauty retailer Sephora has announced
the launch of its new 3D Augmented Reality
Mirror, which it claims is the frst that can
simulate cosmetics on a users face in real-
time and in 3D. Developed by Modiface,
an augmented reality virtual makeover
technology provider, the mirror can be
used either in a kiosk or on a mobile device,
opening up the potential for try-before-you-
buy retail in beauty, which, up until now,
hasnt been an option. 2D try-on can be
slow and cumbersome in retail settings since
you have to pose for a photo and wait for
the result, says founder and CEO of
ModiFace, Parham Aarabi. But with the 3D
technology, he explains, video technology
goes beyond these limitations, as it features
a live video stream.
Luxury Brieng
8
Issue 171
to initiate a dialogue with a London
audience, says creative director Andreas
Melbostad. It represents a truly indigenous
atmosphere for the brands new cohesive
vision, showcasing a complete range of
womens and mens collections along
with their complementing accessories.
6
Kilgour new fagship
British menswear tailoring house Kilgour
has opened a new Savile Row fagship
store. Creative director Carlo Brandelli is
behind the design, which features three
contemporary granite-clad cutting tables
as well as a bespoke foor comprised
of sprinkled steel shavings and a light
installation, which lights up some of the
architectural features when the store
is closed. Alongside the new fagship, a
rebranding will be applied across Kilgour
from a subtle change to the logo to new
packaging. Kilgour is owned by the Hong
Kong-based private investment company
Fung Capital.

7
Roksanda Ilincic
rebrands
London-based designer Roksanda Ilincic
has followed the opening of her debut
Mount Street fagship with the news that
the label is to rebrand to support its global
expansion plans. The label will be known
as Roksanda, in an attempt to convey a
sophisticated simplicity that refects the
designers vision and strategy for future
global growth, which includes a plan to
open further standalone stores. The London
2,500 sq ft boutique, situated in a Grade 2
listed Edwardian building, was designed
in partnership with British architect David
Adjaye and showcases all of the labels
collections including a VIP area for bridal
and bespoke dresses. Ilincic says: Opening
our frst store is a huge milestone for me. It
will be the home for the brand in more ways
than one, and will be the ideal space for
my vision for the label to be fully realised.
8
Alexander McQueen unveils
Japan
London-based brand Alexander McQueen
has unveiled its frst fagship store in Japan.
The 4,200 sq ft unit is located in Tokyos
Aoyama district, also home to brands such
as Balenciaga, Givenchy, Prada and Marc
Jacobs. The fagships retail concept was
conceived by the brands creative director
Sarah Burton, along with architect David
Collins, and features two foors housing the
brands mens and womenswear collections,
including catwalk looks, ready-to-wear
INDUSTRY REPORTS
Fashion & Accessories
1
MrPorter.com launches
Kingsman
In collaboration with acclaimed flm director
Matthew Vaughn, MrPorter.com is
launching a new menswear label,
Kingsman. Inspired by Vaughns upcoming
British spy flm, Kingsman: The Secret
Service, which is due out mid-October, the
mens online fashion retailer has designed a
60-piece collection together with Vaughn
and Arianne Philipps, costume designer.
The range, called Kingsman, is based on the
costumes used throughout the flm, which
stars Colin Firth, Samuel L Jackson and
Michael Caine, and will be available
exclusively on MrPorter.com from
September. It includes suiting, outerwear,
shirting, knitwear and accessories. Toby
Bateman, buying director at Mr Porter, says:
This is a hugely signifcant development
for Mr Porter. We are consistently looking to
provide the best in mens style for our global
customers and visitors and the Kingsman
label combines the traditional precision of
Savile Row tailoring with a modern
silhouette. We have worked with the best in
class for each product category to develop
this collection. Mens style has always been
inspired by the look of leading men in flm
but this is the frst time that the costumes for
a movie have been conceived with the idea
of selling those clothes to the flms
audience. You could literally be sitting in the
cinema watching this flm and shopping the
looks from your mobile device or tablet as
you watch.
2
Matthew Williamson
babywear
British designer Matthew Williamson
is due to launch a new addition to his
range babywear. His mother, Maureen
Williamson, has ofcially joined the brand
and has created the frst pieces of the
line, which will be available in Matthew
Williamson stores. My mum frst started
knitting when I was born, then more
recently she started making baby bonnets
for friends and they went down a treat,
explains Williamson. She took inspiration
for the colours from my frst collection and
now shes got a waiting list. Consisting of
brightly coloured knitted cashmere hats
and booties, the line may lead to a fully-
fedged childrenswear line.
3
Christian Dior
renovations
Christian Dior has opened two refurbished
stores in the US and one in Canada. The
outlets in Aspen and New York in the US
and in Toronto, Canada, have all been
remodeled following the launch of the new
global concept, inspired by the Dior fagship
store in Paris on Avenue Montaigne.
This year will also see Dior renovating its
fagship store on Rodeo Drive in Beverly
Hills as well as new store openings in
Houston, San Francisco and Vancouver.

4
Ian Stuart Blewcoat opens
A frst standalone retail outlet for
designer Ian Stuart has opened its doors
at the National Trust Blewcoat building
in Londons Victoria. With the aim of
providing luxurious, stylish and unique
bridal, special occasion and red carpet
gowns to three generations of glamorous
women, within beautiful surroundings, the
luxury outlet also showcases the designers
brand new London-exclusive collection. It
will also ofer private consultations, on-site
tailoring, bespoke designs and workshop
evenings. The building, which is a 300-year-
old, Grade 1 listed property, has been
renovated, maintaining all the elements of
its historical elements: it is the frst time a
National Trust property has been used as a
luxury boutique.
5
Diesel Black Gold London
fagship
Diesel Black Gold, the premium label
of Italian denim-wear company Diesel,
has launched a new global retail concept
with the opening of a fagship store in
London. Designed by Pierre Beucler and
Jean Christophe Poggioli of Architecture
& Associs, the 250 sq m Conduit Street,
Mayfair store features staggered lighting
and bare concrete surfaces juxtaposed
with leather furniture. The Conduit
Street store is a unique opportunity
Luxury Brieng
9
Issue 171
Maybeitstimeforabitofslowluxury.Aferaperiodwheneveryonewantstoproducemore,domore,usemore
andlaunchmorebags,itsnowtimetoseehowwecanmakethesebagsbecomestaples.Ineverycollection,weliketo
designanewBaguette,oranewPeekaboo,butstillcelebratetheshapes,whichare[timeless]
PIETRO BECCARI, chief executive of Fendi, in an interview in Business of Fashion
and accessories. The environment seems
a good ft for McQueen its quite an
open, contemporary environment, which
we like, says Jonathan Akeroyd, CEO.
The labels presence in Japan up until
now has been mainly through its shop-
in-shops in department stores, which the
company operates, as well as its standalone
accessories store, which opened last
year in Tokyos Roppongi Hills district.
9
Abercrombie & Fitch
shake-up
Abercrombie & Fitch has named a British
retail executive as its new president, as
part of a management shake-up in line
with its long-term strategy to update the
brand. Christos Angelides, who comes
from UK-based clothing chain Next
where he was group product director,
will take up his role at the teen apparel
chain in October and will be responsible
for products, customer interactions and
fnances. The company is also currently
searching for a brand president to oversee
the Hollister label, which caters to younger
shoppers. Chief executive ofcer Mike
Jefries, who has been trying to rekindle
Abercrombies appeal among teen shoppers,
says: Christoss appointment is a critical
step in our long- term strategy of being
organised to win and we are excited
to welcome him to the Abercrombie
team. The brand is also updating its
stores and adding more fashion-forward
merchandise while using social media
marketing to engage younger shoppers.
10
Coach restructure
US retailer Coach is due to close about 70
stores in North America, expecting revenue
to fall in the year ending next June, as it
struggles against fast-growing rivals such as
Kate Spade and Michael Kors. The clothes,
shoes and handbags retailer said it expected
North America same-store sales to fall in
the high teens in percentage terms in the
coming year. Its North American same-store
sales fell 21% in the three months to March
29, its fourth straight quarterly decline.
11
Jacques Vert new
collaboration
High-end occasionwear brand Jacques
Vert has launched two new collections
in collaboration with former Bellville
Sassoon designer Lorcan Mullany, and
Rachel Trevor-Morgan, milliner to HM The
Queen. Mullanys collection of 14 dresses
features daywear and cocktail pieces while
Trevor-Morgans range of 15 hats and
headpieces have been designed specifcally
to complement the dress designs and use
delicate netting and foral embellishments.
The ranges are retailed through eight stores
and online at Jacques-vert.com.
12
Valentino New York
fagship
A New York fagship for Valentino is set to
open in August. Located on Fifth Avenue in
a postmodern building that was formerly the
Takashimaya Department Store, the 20,000
sq ft fagship has been designed by creative
directors Maria Grazia Chiuri and Pierpaolo
Piccioli, together with David Chipperfeld
Architects. The store features elements of
the brands newest retail concepts, already
seen in boutiques such as Rodeo Drive,
Beverly Hills, Madison Avenue in New York
and Caesars Forum in Las Vegas, but it also
adds new elements. These include a new
eight-storey faade constructed in black
steel and aluminium, inspired by modernist
icons such as Mies Van der Rohes Seagram
Building, as well as a 27ft high atrium,
featuring a display wall upon which there
are 39 shelves, which are designed to exhibit
products. On the frst foor is a completely
new accessories concept, featuring brass and
oak shelves and long marble plinths, while
the womens collections sit on the second
level with the menswear on the third. The
architecture is designed to complement
the pieces on display using materials such
as timber, marble, leather, carpet and
carbon fbre. The store will carry all product
categories, with the accessories ofering
being the largest worldwide. It will also be
the second Valentino boutique (after San
Francisco) to carry the mens collection
in the US. The brand currently has 116
freestanding boutiques worldwide with one
due to open in Aspen later on this summer
and the other to launch in the Miami Design
District in the autumn.

Dressing up
Vogue The Gown is the frst in a new range of
books drawing from the fashion magazines
library of images. Due to launch in October,
the highly illustrated visual sourcebook,
curated by the former features director
of British Vogue, Jo Ellison, consists of a
collection of images showcasing over 300
gowns. Arranged in fve chapters, Classical,
Fantasy, Drama, Decorative and Modern,
the book celebrates a century of fashion
history, as well as featuring the work of top
photographers including Mario Testino, Nick
Knight, David Bailey, Herb Ritts, Helmut
Newton and Cecil Beaton. The magic of
Vogue is in rediscovering how the magazine
has recorded so many decades of radical,
social and economic change (during which
womenswear has undergone similarly seismic
revolutions) and yet retained its quietly
authoritarian voice, says Ellison, who is
the newly appointed fashion editor of The
Financial Times.
Fashion ghting war
Stella McCartney has joined forces with the
charity War Child to launch a campaign
called Draw Me To Safety. The international
art project has been designed to raise
awareness of how children afected by war
view the world, and to ofer support to the
most vulnerable. The campaign will ask
young people, aged between eight and 15 in
the UK and in confict-afected countries, to
create artwork based on the question: What
makes you feel safe? McCartney will then
create a fashion item based on the fnished
pieces, the profts from which will go directly
to War Child. There are children across the
world who dont know what safety means
because all they have ever seen is confict,
says Rob Williams, chief executive of War
Child UK. Draw Me to Safety is about the
power of childrens voices to talk directly to
the world. McCartney adds: Children
see the world with clarity and honesty. War
Child UK and I are excited to share their
insights through art that will raise awareness
and encourage the world to do more to
protect children from war.
It-collection
Model and it-girl Cara Delevingne has
launched a clothing line in collaboration with
DKNY. The 15-piece capsule, mostly unisex
collection, will feature her signature style and
consist of t-shirts, beanies, a leather jacket
with removable sleeves and accessories, all
with small details that have special meaning
to the model. With a launch date of November,
Delevingne has also called upon her Instagram
followers to post an image of themselves for
the opportunity to join her in New York for the
campaign shoot for the collection.
Luxury Brieng
10
Issue 171

INDUSTRY REPORTS
Media & Publishing
3
The Luxury Property
Show collaborates with
Waitrose
The Luxury Property Show magazine has
signed a deal with premium UK grocer
Waitrose to sell a one-of publication, which
is being launched to preview the show of the
same name. The magazine, produced by
David Hall Publishing, will be sold
exclusively across 220 Waitrose stores from
October, ahead of the show in London in
November. The 116-page magazine will
cover homes from around the world
alongside editorial coverage of topics such as
investment, executive travel and buying and
storing wine. This is a unique opportunity
for brands to reach 10,000 target consumers
and to capitalise on the excitement that is
building around the show, says Sean
ODriscoll, DHPs managing director.
Distribution in Waitrose is a terrifc
endorsement for us, as we increase the levels
of investment in the marketing campaign for
what is the shows eighth year.
4
Stylus Media Group launches
Stylus Fashion
Marc Worth, CEO and founder of research
and advisory business Stylus Media Group,
has announced the launch of a new advisory
service, Stylus Fashion. The new service will
launch in September and will ofer fashion
brands and retailers assistance in discovering
original ideas and opportunities that they can
bring to market faster than their competitors.
Membership, which is invitation-only,
will be capped at 100 to maintain a
competitive advantage for its members.
It will include only the best designer brands
and retailers, as well as complementary
technology, design and consumer brands
from outside the traditional fashion industry.
Leaders and creative directors from the
Stylus Fashion member organisations will be
invited to participate in Stylus Fashions
Creative Leadership Council, which will
meet throughout the year to network, share
best practices and address business issues
of the day.
5
D&M Edit debuts
Bar group Drake & Morgan has launched
a customer magazine, to be published
bi-annually, with a spring/ summer and
an autumn/ winter edition. D&M Edit
will be stocked across Drake & Morgans
seven London bars and will feature articles
on food and drink, fashion, travel and
design. D&M Edit is all about giving
more to our customers, from travel tips
and interior inspiration to recipes for our
best-selling dishes and drinks, says head
1
La Maison launches
A new service providing luxury brands with
consumer insights, content and technology
solutions, with an emphasis on helping
them keep up with digital innovation and
emerging markets, is set to launch.
Magazine publisher Cond Nast,
communications network Publicis
Worldwide and Google are behind the new
venture, which is called La Maison. Cond
Nasts Branded Content Group (which is
separate from its editorial operations) will
create original content for La Maison
clients, including editorial, photography
and digital video. The content will be
distributed across Cond Nasts media
channels as well as Google and YouTube.
La Maison clients will also have access to
Publicis agencies.
Charles Georges-Picot, who heads up
several agencies within Publicis Worldwide,
will run the service, while Vogue design
director Raul Martinez will oversee the
creative side. Ariane Rivier will lead a luxury
team at Google, providing trend analysis and
content distribution strategy. Cond Nast
knows how to produce content and Google
has a much deeper reach on data then we
currently do, says Georges-Picot. Whether
its understanding the behaviours of
Brazilian luxury buyers and spotting the next
big social channel in China, or providing
unique fashion flms and exclusive editorial
content, we will ensure premium brands are
at the forefront of innovative marketing and
consumer knowledge. The three-way
partnership ofers clients a global package
where the agency is the main interface for
clients, who otherwise have to deal with
several partners on one campaign. La
Maison will start with a team of about 15
people for a year and Cond Nasts revenue
will be on a case-by-case basis.
2
100 points by
Robert Parker
A new quarterly international lifestyle
magazine, aimed at high net worth
individuals, has been launched by German
magazine and digital media company Burda
International in partnership with bi-monthly
publication The Wine Advocate. 100 points
by Robert Parker is inspired by the interests
of world-famous US wine critic Robert
Parker and covers, lifestyle products,
services and experiences. While it features
wine-related topics, it doesnt include
wine reviews or critiques and advertises
non-wine related brands. An editor has yet
to be appointed, although an international
team of writers and contributors is on
board, with The Wine Advocates team of
writers, including Parker, contributing to the
magazine on an ad hoc basis.
of communication Lisa Yearwood. Our
customers are always asking about the little
touches that make our product so special
and this is our way of enabling them to take
a little bit of the magic home. Drake &
Morgan opened The Refnery, its frst bar,
in 2008, followed by The Parlour in Canary
Wharf, The Anthologist and The Folly,
both in the City, and the Drift in Liverpool
Street. More recently, in 2013 it opened the
Happenstance in St Pauls, followed by The
Fable in Holborn, in February 2014.
Moving up
Hearst Magazines UK has announced the
appointment of Becky Gee in the newly created
role of publisher for the fashion, luxury
and lifestyle brand Red. Currently strategic
director fashion and retail at Grazia and
Grazia.co.uk, Gee will join Red in August,
working with editor-in-chief Sarah Bailey and
group publishing director Ella Dolphin, to
drive commercial revenues and develop new
revenue streams as well as focusing on strategic
partnerships. Gee says: Im thrilled to have
been given this opportunity. Red is a unique
proposition... luxury for real women, and
remains a brand with enormous potential.
All for one
IPC Media has announced a restructure
that removes the business divisions of
Connect, Inspire and Southbank, uniting
the business as One IPC, according to an
announcement from Marcus Rich, CEO
of IPC Media, who said the changes would
ofer the business the strongest possible
foundation, for future growth. The company
restructure leads to changes in responsibility
among the IPC Media board of directors,
with each taking strategic ownership of
particular audiences or focusing on driving
growth in key sectors. One IPC describes
an approach to how we manage our brands
and our business, adds Rich. It means that
where we create successful revenue enhancing
strategies for one brand, or in one market,
we immediately look to scale that thinking
and develop it across other brands and
markets. Where we see well-proven ef ciencies
in one part of the business, we instigate that
learning across other parts of the portfolio.
And clients and agency partners will have
a single point of access for IPCs valuable
audiences and brands.
Luxury Brieng
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Issue 171
LUXURY INDICATOR
Brand extensions drive
momentum
P/E multiples in the luxury sector are
currently roughly in line with the historical
average, as volatility in exchange rates, Asian
GDP growth and travel retail trends along
with management turnover, particularly in
design talent, at several major players have
ofset a generally solid outlook that
continues to beneft from asset price
increases.
There was some consolidation in Europe,
a pull-forward in spend in Japan into 1H14,
and the North American market has seen
solid growth, but Chinas output trends
appear to have bottomed. We believe
continued top-line momentum in the luxury
goods space will be driven by an increased
focus on creating newness in product
collections and further development of
brand extensions.
As part of the brands reinvigoration,
Coach will unveil its frst collection from
new executive creative director Stuart
Vevers at full-price locations in September,
followed by a small initial launch at factory
in December with a full roll-out during
spring/summer 2015. At Louis Vuitton we
believe the new creative director, Nicolas
Ghesquire, will help inject excitement
and a new higher-end positioning for
LVMHs fagship brand, and we are already
encouraged by the positive press coverage
from his frst show and Fall 2014 collection.
At Tifany, we believe the brand should
continue to beneft from the introduction of
new product under design director Francesca
Amftheatrof as well as greater sell-through
in fne, solitaire, statement and engagement
jewelry categories in addition to improving
trends in fashion jewelry (helped by the
continued success of the Atlas collection).
We are also seeing more newness from
Richemont, in watches, as a way to drive
market share gains through new product
launches, including the Calibre de Cartier
Diver watch.
Under its newly appointed CEO,
Christopher Bailey, Burberry remains
focused on its growth initiatives such as the
direct operation of the beauty business and
further developing its mens category as well
as underpenetrated markets. Additionally,
Michael Kors has just named Mark
Brashear, formerly CEO and chairman of
the Americas at Hugo Boss, to the newly
created role of president of mens. The brand
views menswear as a signifcant opportunity,
and is launching a new fragrance in the
coming months, as well as introducing a new
collection of mens watches and opening the
frst fagship store to feature the full mens
ofering in SoHo in New York this fall.
TELSEY ADVISORY GROUP

INDUSTRY REPORTS
Jewellery & Watches
1
Watches of Switzerland new
ad campaign
Watch retailer Watches of Switzerland has
launched a brand new ad campaign to
celebrate the opening of its new fagship
store on Londons Regent Street this
summer. The campaign takes inspiration
from Hitchcocks thriller The Birds,
playing on the concept that magpies covet
precious things, and shows watch-wearing
models swarmed by the birds, alongside
the strapline, The worlds most irresistible
selection of luxury watches. The creative
is shot in black and white, with the
watches shown in colour, while fake
magpies are featured in large window
displays next to gold birdcages. Future
campaigns will build on the latest ads, as
the business looks to push the stores
status as Europes largest standalone
watch showroom. The store itself is 17,000
sq ft with three storeys devoted exclusively
to luxury watches.
2
Swarovski Chinese
jewellery
Crystal brand Swarovski has launched
a China-exclusive jewellery line and is
on the lookout to collaborate with more
Chinese designers as part of its expansion
into the country. The 33-piece Flower of
Life collection was launched in Beijing
under its luxury line, Atelier Swarovski
and was designed by Chinese designer
Ye Mingzi, known for her wedding dress
designs. Nadja Swarovski says: China
is an incredibly important market for
us we are opening an average of 25 to
30 stores per year in China. It seems
to be tapping into its creative DNA
right now, and we are seeing some very
innovative, exciting and confdent work.
3
Vacheron Constantin opens
Moscow
Swiss watch brand Vacheron Constantin
has launched a boutique in Moscow. The
brand says that the store, which is housed
in Berlin House close to the Kremlin and
Bolshoi Theatre, is its largest retail outlet
to date. It joins other Vacheron Constantin
European boutiques including Paris,
Geneva, Lucerne, Istanbul, Kiev and
London. To celebrate the opening, it also
unveiled four limited edition timepieces
with matching cufinks.
4
Bremont x Wright
Bremonts latest limited edition watch
release incorporates material from the 1903

Think pink
The Argyle Pink Diamonds Tender, held
annually since 1984, celebrates its 30th
anniversary this year. To mark the occasion,
Argyle has created a limited edition collection
of pink diamond pendants with each piece
comprising Argyle diamonds, pav-set in
fair-mined gold. The 2014 tender, which
debuts in Sydney during August, will travel
to New York and Hong Kong before closing in
October. It comprises 50 to 60 of the worlds
most exceptional polished pink diamonds,
representing a years production from the
Argyle Diamond Mine. About 150 specialists
worldwide are invited to attend a private
viewing and to place a sealed bid on one or
more diamonds.
Build-a-collection
World-renowned architect Zaha Hadid is to
guest curate a showcase of personal highlights
from this years Goldsmiths Fair in London.
Hadid will pick 20 pieces from the exhibition
of fne jewellery and contemporary silver
for the collection, Zaha Hadid Selects.
The display will be unveiled at the show in
September, but one piece can already be
revealed: a 22ct yellow gold ring by Jennifer
Saker. David Mills, head of communications
at The Goldsmiths Company, says: As
well as being a phenomenal architect, Zaha
Hadid is an inspirational fgure in the wider
world of design and style. We are delighted
Zaha has agreed to curate our frst guest
selection at Goldsmiths Fair, an event which
celebrates the very best in contemporary
British design and craftsmanship.
Wright Flyer, the frst ever powered aircraft,
designed and built by the Wright brothers,
Wilbur and Orville, in Dayton, Ohio. Just as
signifcantly for the brand, the watch also
incorporates Bremonts frst movement
made entirely in-house and designed
and developed in Britain. Wright family
member Amanda Wright Lane paid tribute
to Bremonts passion for aviation heritage.
Luxury Brieng
12
Issue 171
Content brings luxury to life online
Through content and storytelling, luxury brands can make their
exemplary bricks-and-mortar and product experience relevant to the
sectors new tablet and smartphone-wielding audience.
Rolls-Royce regularly makes content available to enthusiasts
and its an approach that seems to be working, particularly among a
younger demographic. A post on Facebook will generate thousands
of likes, a video on YouTube will get hundreds of thousands of views
and comments, and a new flm on the website increases visits by
200%. This traf c might not always be from potential customers, but
it certainly creates a desire that seems to be translating into sales.
Rolls-Royce had its most successful fnancial year ever in 2013, the
third in succession.
What is the key to this success? Certainly for Rolls-Royce,
a signifcant part of the answer lies in creating authentic stories
that sell craftsmanship. Every piece is seamless, efortless and
beautifully executed. There is also a unifying creative idea. When
Rolls-Royce launched its Wraith model, it created a flm that made
the world (quite literally) stand still, connecting with people on an
emotional level rather than just talking about product. Rolls-Royce
also ensures every digital execution is rewarding. The Wraith flm
was interactive and people could delve deeper to fnd bespoke
stories, opinion and details.
Making luxury accessible
Digital is also a great democratic platform, ofering efortless access
to those who still might feel intimidated by the in-store luxury
experience. Despite a deeply entrenched aspirational approach to
marketing, recent reports show that the luxury market could be going
through a period of change that requires a fresh evaluation of its
approach to potential customers in the post-digital world.
It seems that the most forward-thinking luxury brands are not
merely using digital to translate their of ine luxury persona into
appropriate online experiences. They are doing something much
cleverer. They are driving passion and engagement amongst us,
the hoi polloi. While this might seem blindingly obvious for brands
already embracing digital, it marks a sea change for a sector that
has traditionally thrived on peddling exclusivity and been notably
apprehensive about the accessibility of the web.
One of the most powerful markers of luxury has always been the
richness of the experience it ofers. The multi-sensory delight in the
touch, feel and quality of a product, as well as the exclusivity of the
environment in which it is bought, are what make it worth the price tag.
The numbers underline the fact that brand experience is
increasingly important for luxury: while overall luxury sales might be
in decline, luxury purchases through experiential channels have grown
year-on-year by 12%, which is why the channel now accounts for 55%
of total luxury marketing spend (source: Boston Consulting Group).
New audience; new experience
As the post-recession luxe-buyer becomes younger, the savviest luxury
brands know that they will only achieve cut through and engagement
by creating great experiences that exploit the emerging tech this
audience uses daily.
Of course brands cant survive on engagement alone. An efective
digital strategy creates desire among those who can aford the
products by making them more widely acceptable. And it attracts
younger customers who are consistently spending 50% more on luxury
goods. They are the smarter, digital-frst, mobile-always audience
who, research shows, are looking for brands that reward them with
pride of ownership and send a smart shopper message rather than
brands that are primarily used as status symbols.
Experientialchannelsareavitalpartofanyluxurymarketingstrategynow,butmanybrandsareoverlookingthemwhenitcomes
totheironlinepresence,failingtomatchtheirdigitalpersonalitieswiththeirphysicalbrandpromise,letaloneimpressintheway
luxuryshould.Yetitcanbedone.Andrew Smith,chiefstrategyof ceratPartnersAndrewsAldridge,providessomepointers
onhowluxurybrandscanexploitthepowerofexperienceinthedigitalspace,usingeverythingfromcontent,partnershipsand
storytellingtostaytruetoeverythingthatmakesthemluxe
CRACKING OPEN
THE IVORY TOWER
Luxury Brieng
13
Issue 171
The Faberg Big Egg Hunt
Its just fun isnt it? Lots of decadent, ostentatious eggs scattered all
around various cities in the world. They are beautiful in themselves,
making the hunt something of an outdoor gallery hop. The fact
theres a smartphone app to help you fnd them beautifully unites an
of ine and online experience. It makes an exclusive brand that used
to be associated with European royalty available to a younger mass
audience and rewards them with great experiences, such as free hotel
stays. Its an idea that keeps giving and that gets our thumbs up.
The Louis Vuitton Pass
The world of luxury brands used only to be accessible to the privileged
few, but with digital everyone can get involved, which then creates
desire amongst the purchasing audience. Louis Vuitton has totally
missed the mark in the past. Its philanthropic luxury campaign
featuring Bono and his missus is best left in the dusty annals of history
and was universally panned in social media. The Louis Vuitton Pass
is much, much better. It eschews blippar and QR codes and instead
asks people to download the exclusive Louis Vuitton pass. By scanning
the campaign images that feature the apps icon you can experience a
virtual world where Louis Vuitton ads are brought to life. It has a touch
of arrogance, but that works. This is Louis Vuitton after all. The story
telling is excellent and its beautifully crafted. Oh and David Bowies in
it. Enough said.
Digital can give luxury brands a universal appeal. It also allows them
to go beyond the product and tell stories that resonate on a creative,
cultural and emotive level. Greater interactivity gives everyone a
chance to get involved and voice an opinion.
For long-established luxury brands that could be perceived as a
bit, well, fusty, tapping into social channels in particular can be an
important step towards democratisation and youthfulness. Luxury,
after all, is all about infuence.
So digital in the luxury market is not just about selling to the
purchasing audience. Its more about creating moments of inspiration
that resonate with everyone, especially a younger demographic. If you
get that right, the sales will follow.
With this in mind, at Partners Andrews Aldridge we have looked
at several luxury brands to see how well they are executing digital
to drive passion and create desire to purchase amongst a younger
audience and we havent mentioned that ubiquitous luxury fashion
brand beginning with B and ending in Y once.
The Good
Fendi Drones and Buggies
Fendi is a great example of one of those brands that has been
reinvigorated by digital. Its live stream of the autumn/winter 2014
fashion show in Milan via Drone Cam was an industry frst and
continued the trend for opening up the fashion show world in an
innovative, fun way. Then there are the Fendi Buggies, which are a
smart move. To sell the ultimate accessory, Fendi creates another
accessory. A weird little critter, made of mink. You go online, answer
a few easy questions and your ideal buggy appears on your ideal bag
which you can then share with your friends. It showcases the collection
beautifully and adds a sense of youthful playfulness to what was a
rather staid brand.
CRACKING OPEN
THE IVORY TOWER
Digitalisalsoagreatdemocraticplatform,ofering
efortlessaccesstothosewhostillmightfeelintimidatedby
thein-storeluxuryexperience.Despiteadeeplyentrenched
aspirationalapproachtomarketing,recentreportsshowthat
theluxurymarketcouldbegoingthroughaperiodofchange
thatrequiresafreshevaluationofitsapproachtopotential
customersinthepost-digitalworld
Far left: Rolls-Royce made an
interactive lm to launch the new
Wraith model
Left: Fendi live-streamed its
autumn/winter 2014 show by
drone cam
Above: the Faberge Big Egg
Hunt used a smartphone app to
engage younger consumers with a
brand previously associated with
European royalty
Luxury Brieng
14
Issue 171
The Gucci Chime for Change campaign
Patrizio di Marco, the CEO of Gucci, has cited fashion,
craftsmanship and responsibility as the three pillars of Gucci. The
Chime for Change campaign hits on all of them. Its a universal
concept that strikes an emotional chord with everyone, but it also
makes people feel good about Gucci and gives those who can aford
it permission to buy. Digital is used brilliantly to give the brand
more kudos amongst a younger audience. It launched a new online
storytelling platform with a series of fve short flms. Then there was
the Chime Hack: a hackathon, which challenged female techies to
participate in an efort that created mobile apps to support women
around the globe. We think its innovative, inclusive and passionate.
And we love the mantra too: None of us can move forward if half of
us are held back.
Could do better
Tifany & Co on social media
The chicness of Audrey Hepburn as Holly Go-lightly. The oozing
sensuality of Marilyn Monroe performing Diamonds are a Girls Best
Friend. The plush red carpets underlying the glamorous in-store
experience. Think Tifanys and youll undoubtedly conjure up a head
full of iconic images and defnitive cultural moments. Try and access
that magic on social media and you might be sorely disappointed.
While Tifany scores well on Facebook engagement, its 2012 What
Makes Love True efort missed an exciting opportunity to engage with
Instagram users. On Twitter, Tifany & Co has a limited repertoire of
minimalist responses and is among a minority of retailers that hasnt
bothered to create a Google+ account.
Alexander McQueens online branding
The late designer hailed by some as Alexander the Great, by others
as a mad futurist, defned a unique aesthetic and brand. Today, his
theatrical, dramatic look lives on with the new face of Alexander
McQueen, Kate Moss, going sci-f in a futuristic online video for the
brands spring/summer 14 collection. While we cant fault the brands
dark, dystopian vision (Mossy with neon orange hair? Rocks), the
brands failure to create a coherent experience elsewhere online is
disappointing. Visit the McQueen site, stick a post-it over the logo and
you could be on any high street fashion brands site. Disappointing
stuf from a branding perspective.
Room for improvement
Many luxury brands have now created usable (rather than purely
fashy) sites and apps. Even Chanel, having famously resisted
e-commerce to retain an ethos of exclusivity, now sells selected
beauty products via its mobile app. But where luxury still lags behind
is in its multi-channel ofer.
Few brands have yet nailed their digital experience across
devices to ofer a positive and seamless omni-channnel experience.
It is here, if luxury wants to meet the masses on their own terms in a
post-digital world, that work remains to be done.
Theres no doubt that when digital is well executed it gives luxury
brands a whole new lease of life. Harnessing emerging tech can
create experiences that are immersive, fun and playful, which involve
people rather than exclude them and attract luxurys all-important
younger audience. The futures bright and its wearing couture.
PARTNERS ANDREWS ALDRIDGE IS A DIGITAL DIRECT AGENCY,
PART OF ENGINE GROUP. THE AGENCY IS A 100-STRONG TEAM OF
INNOVATIVE PEOPLE WHO BASE THEIR WORK ON THE MANTRA
THAT NONE OF US IS AS CREATIVE AS ALL OF US. IT CREATES
PROVOCATIVE IDEAS THAT CHANGE BEHAVIOUR, BY ANY MEDIA
NECESSARY, JOINING PHYSICAL AND DIGITAL COMMUNICATIONS IN
SURPRISING NEW WAYS, BUILDING CONNECTIONS AND EXPERIENCES
THAT DRIVE DIRECT CLIENT VALUE. CLIENTS INCLUDE ROLLS-ROYCE,
SANTANDER, BMW, RNLI AND THE PAYMENTS COUNCIL.
Right: David Bowie features
in brilliant advertising for the
Louis Vuitton Pass
Below: Guccis Chime for
Change campaign has
reached out all over the world
and spawned the creative
hackathon at classroom level
Luxury Brieng
15
Issue 171

Shoe Corner is inspired by the boutiques
of 1920s London and the original Mayfair
Fenwick Town House. Designed by Shayne
Brady of BradyWilliams, the space will
feature custom-designed furniture, bespoke
carpeting and leather upholstery, and
will ofer collections from brands such as
Valentino, Proenza, Chlo, Jil Sander and
Michael Kors. The vision is to restore
the quintessential Mayfair town house
to its former glory, says Brady. With
three architecturally elegant spaces that
showcase an evolution over the decades,
the rooms will convey classic and beautiful
to contemporary. David Walker-Smith,
managing director, adds: Creating a
bespoke shoe department on the ground
foor is something avant-garde to the retail
experience not just at Fenwick but across
all UK department stores. Our founder Mr J
J Fenwick said back in 1891 its not the size
of the ofer; its the quality of the edit. This
is something that remains a fundamental
element of the Fenwick ethos. Our shopper
is time-poor so we have micro-curated a
key edit to ensure they have a shoe relevant
for every element of their busy life. Our
goal is to create the ultimate level of service
for a unique, refned, yet opulent shopping
experience. Fenwick of Bond Street opened
in 1891 and is the London fagship of the
Fenwick Group.
4
Dom Reilly/
Financial Times
Business news organisation The Financial
Times has collaborated with luxury leather
goods brand Dom Reilly to create a limited
edition range of luxury travel accessories,
which is available exclusively online.
The range has been developed with the
aim of combining functionality, style and
innovation and includes a weekend bag,
laptop case, iPad case and travel wallet.
Each piece is made from top quality leather
with the interior of the iPad and laptop
case using the same high-density shock-
absorbing foam used in the cockpits of
Formula One cars. All pieces are stamped
with a collaborative logo with prices starting
from 195. The Financial Times has a long-
standing heritage in providing consumers
1
Case goes fying
Luxury luggage and travel goods retailer
Case has opened a new outlet at the
newly launched Heathrow Terminal 2.
Ofering collections from over 40 high-
end luggage brands including Tumi,
Rimowa, Ted Baker, Samsonite, Victorinox,
Globe-Trotter, Brics, Paul Smith and
Lulu Guinness, the new store features a
3.5m high light bulb display set against a
backdrop of monitors. This is a futuristic,
multi-layered, visionary airside luggage
store packed with contrasting elements
to stimulate and delight the travelling
consumer, says Nick Short, creative
director at Raylian, the agency behind
the store design. Stephen Spitz, CEO and
chairman of Case, adds: It is a truly iconic
store that provides everything a business
or leisure passenger could possibly need or
desire to enhance their journey. It is the
companys third airport travel retail site
it already has standalone stores operating in
both terminals at Gatwick. Case also owns
and operates the luggage halls in Harrods,
Selfridges, Harvey Nichols and Hoopers.
2
Galeries Lafayette to open
in Milan
French department store Galeries Lafayette
has confrmed plans to open a new fagship
in Milan as part of an international
expansion plan aimed to attract high-
spending tourists from emerging markets.
The four-storey building will cover
18,000 sq m and is scheduled to open
in 2017-8. It will be the stores second
European opening outside France it has
recently opened in Berlin, Casablanca,
Dubai, Jakarta and Beijing with further
openings planned in Doha and Istanbul.
Westfeld Milan will include 300 stores,
50 restaurants, 14-screen multiplex
cinema and a luxury village (see LB167).
3
Fenwick is a shoe-in
A new luxury shoe department has launched
at Londons high-end department store
Fenwick Bond Street. Located on the
ground foor, the three-room, 4,143 sq ft
with high quality products globally and their
competencies align directly with ours,
says Dominic Reilly, founder and CEO of
Dom Reilly. We felt our partnership would
help push both our brands into new areas.
Catherine Newman, global director of brand
& B2B marketing at the FT, adds: Since the
1800s we have been providing our readers
with high quality products, which has now
been extended into luxury accessories with
Dom Reilly. The collection is perfect for
our readers who demand functional yet
stylish products to help them navigate their
busy schedules.
Bespoke bubbles
Champagne By You is a new bespoke service that
allows customers to create their own champagne,
from the bubbles to the bottle. At a tasting session
you receive a case of six diferent champagnes
from Grand Cru to Blanc de Noirs to Ros, all
from two small artisan producers. This comes
along with tasting notes and the story of each
producer. Having chosen the taste, you design
your own aluminium label with the help of
Champagne By Yous in-house design team. It can
incorporate a favourite photo, design or poem.
At the end, you have a tailor-made bottle of
champagne delivered to your door.
Streets ahead
Regent Street is the frst shopping street in Europe
to launch a mobile phone app that delivers
exclusive, personalised content to shoppers as they
walk down the street. Using Bluetooth technology
to communicate with beacons in each store as
shoppers walk past they receive alerts direct to
their mobile phone including information about
new products, upcoming events and exclusive
ofers only available to those shopping on the
street that day. Beacon technology is a new
innovation only trialled by a handful of retailers
and this is the frst time the technology has been
used across an entire shopping street. As well as
providing content, the app also builds a profle for
each shopper so the content they receive is tailored
to their individual preferences. It also helps
shoppers to plan their visits and introduces them
to new brands that match their interests. The
app is part of a 1bn regeneration programme
by The Crown Estate. Paul Lorraine, UK General
Manager of Longchamp, says: Success in retail
in the 21st century is strongly linked to how
you engage your customers in store and online.
Regent Street already has a reputation as being
the place to be for brands like ours and the new
mobile app will bring the digital and physical
together, providing an exciting new way for us to
speak to our customers. The app, which is free to
download from the app store, was developed by
digital marketing frm Autograph.
INDUSTRY REPORTS
Luxury Goods
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Luxury Brieng
INDUSTRY REPORTS
Luxury Services
3
AndBeyond remodels
safari lodge
Luxury experiential travel company
andBeyond is in the process of
reconstructing its Sandibe Okavango
Safari Lodge. The remodelled and
refurbished lodge, which lies at the heart
of the Kalahari Desert in Botswana, will
reopen in September with 12 new suites,
including one family unit. The nest-like
suites will be raised among the trees
and will feature private plunge pools.
The new refurbishment is inspired by
nature, using organic materials and the
latest in alternative energy sources. The
innovative design refects the sustainable
footprint of the lodge while remaining
warm and intimate, says Joss Kent, CEO
of andBeyond, which owns and operates 33
lodges and camps in Africa and India.
4
Walk Japan launches
into UK
The premium cultural tours specialist
Walk Japan has recently launched into the
UK. It ofers small-group, luxury, custom-
made and of-the-beaten-track tours to
Japan, from gastronomy tours taking in
Michelin-starred restaurants in Tokyo
to walking tours such as the Kumano
Kodo Pilgrimage and the Nakasendo
way walk. It has been described by
National Geographic as one of the best
200 adventure companies in the world
and is already popular in the Australian,
Singapore and North America markets.
Walk Japan director Llewelyn Thomas
says: We know there is an appetite for
our walking tours with adventurous UK
travellers and now is a particularly good
time for visitors from the UK to visit Japan
and take advantage of the strength of the
pound against the yen. Walk Japan was
launched in 1992 by Hong Kong University
academics Tom Stanley and Dick Irving.
5
Home Grown
Hotels expands
A new addition to hotelier Robin Hutsons
growing portfolio of Pig hotels has opened:
The Pig on the Beach, in Dorsets Studland
Bay. It occupies an 18th-century manor
house surrounded by 22 acres of farmland,
and has 23 bedrooms. It is the fourth
property in the group run by Home Grown
Hotels, which includes the original Pig,
based in New Forest, The Pig in the Wall in
Southampton docks and The Pig near Bath.
The hotel, which aims to have a mellow,
country house feel, features a greenhouse
restaurant, a private room for dinner parties
and two spa treatment rooms.
1
Heckfeld Place to open
Heckfeld Place, a country house retreat in
Hampshire set in 400 acres of landscaped
gardens and Georgian parkland, is due to
open later this year. The 60-room hotel
will consist of three restaurants headed up
by Skye Gyngell, the former head chef at
the Petersham Nurseries Caf, as culinary
director (she will also be heading up a new
restaurant opening at Somerset House
in London by the same owner). Private
events at the 18th-century grade II-listed
property, former home of Charles Shaw-
Lefevre, the longest serving Speaker of the
House of Commons, will include literary
salons, musical recitals and wine tastings.
There is also a 65-seat cinema and indoor
swimming pool.
2
Selfridges alfresco dining
Selfridges has premiered a new dining
concept this summer called On The
Roof with, ofering a platform for
collaborations and events in the setting
of an alfresco rooftop restaurant. This
year kicks of with restaurateur Des
McDonalds On the Roof with Q, featuring
a programme of events and talks from
leading chefs and producers. The all-day
menu ofers seasonal produce as well
as a raw food counter and a traditional
afternoon tea with the option of classic,
sugar-free or gluten-free. A pop-up
juice bar, operated by New York health
brand The Juicery, will also be making
an appearance. On the Roof with Q is
a secret foodie haven that ofers a fun
and fresh dining experience alongside
a programme of talks from some of the
most innovative and infuential people
working in the food industry right now,
explains McDonald. Inspired by Victorian
greenhouses and designed by Alexander
Waterworth Interiors, the restaurant has
a fantastic view over the London skyline
and a retractable roof to protect diners
from downpours. Our new concept
will serve as a platform for amazing and
unique experiences, adds Linda Hewson,
Selfridges creative director.

6
Seaside Boarding House from
Groucho team
This autumn will see the opening of the
Seaside Boarding House Restaurant & Bar
in a Victorian clif-top villa overlooking
Dorsets famous Chesil Beach and Lyme
Bay. Mary-Lou Sturridge and Tony
Mackintosh, the duo who set up the
Groucho Club in 1985, are transforming the
former retirement home into a seven-room
clubhouse consisting of a restaurant, a snug
library, a bar and a dance foor. It wont
look like Babington House or those interiors
of the moment, says Sturridge. No beige,
no low sofas. Instead Ill keep it quite old-
fashioned with lots of clean colours. It wont
be shabby chic, but it will be a bit kitsch.
7
APM at Zinc new concept
APM at Zinc has launched in London: a
members-only, after-hours nightclub,
which is open from 2.30am to 7am, at the
weekends. Perched on the 31st foor of 101
New Oxford Street, APM at Zinc (APM
stands for Always Past Midnight) also gives
late-night clubbers the chance to dine
at a high-end restaurant, having joined
forces with culinary magazine Four. The
breakfast-inspired menu will change every
three months, with a percentage of the
revenue donated to the Four foundation,
which helps charities fght hunger around
the world. APM at Zinc is a collaboration
between Zinc General Manager Greg
Ballester and nightlife and hospitality
entrepreneurs Winston Douglas Jr and
Danio Domingues.
8
The Noodle House from
Jumeirah
Jumeirah Restaurants has partnered with
UK-based EQ group to launch The Noodle
House in London. With a home on Sohos
Shaftesbury Avenue, the restaurant the
frst Noodle House in the UK ofers
Singaporean and Malaysian dishes in a
communal setting. The brand was frst
launched in 2002 at the Jumeirah Emirates
Towers in Dubai, growing to seven further
restaurants in Dubai, 16 across the Gulf
region and eight other outlets in countries
Issue 171 Luxury Brieng
17
Luxury Brieng
SpanisharchitectLuisVidalhassucceededincreatingclear,naturallylitspaces,relativelyintuitiveway-fndingand
anefcient,generouslyspaciousbuilding.ItalsocommendablyretainsFosters(theoriginalarchitects)visionofagreenairport,
using40%lessenergythanastandardequivalent.Butitalsolacksanysparkcapableoflifingitabovetheordinary
EDWIN HEATHCOTE , IN THE FT, ON THE NEWLY OPENED TERMINAL 2 AT LONDONS HEATHROW AIRPORT
including Russia, Pakistan, Morocco and
Cyprus. We are confdent the South-
east Asian cuisine and the wide choice of
delicious dishes will make a big impression
in London, said Jason Myers, managing
director of Jumeirah Restaurants, which is
the restaurant division of global hospitality
business Jumeirah Group. Other concepts
developed by Jumeirah Restaurants include
Urbano, Sana Bonta, AllFreshCo, Rice +
Spice and The Flaming Revolution.
9
New Toms launches
Restaurateur and entrepreneur Tom
Conran has launched New Toms in
Londons Notting Hill, in collaboration with
chef Tom Straker (formerly The Dorchester
and The Ledbury). Located on the former
site of Toms Deli (which had been situated
on the site for 24 years), the pop-up
bistro-style restaurant will stay open for
12 months, serving avant-garde modern
cuisine. The playful interior features
original works by British pop artists loaned
by Conrans father Sir Terence Conran as
well as a series of 1930s Parisian metro
booth seats. We are taking sophisticated
modern cuisine out of the usual formal
restaurant environment and placing it
in a fresh friendly and relaxed setting,
says Conran. Our kitchen will use honed
techniques, craft and artistry to create
exquisite modern renditions of timeless
classics. Weve done it all with a real sense
of fun and hope that the neighbourhood
takes it to its heart.
10
Sujn Rajmahal Palace
opens in Jaipur
November will see the opening of the grand
Sujn Rajmahal Palace in Jaipur, India.
Consisting of 20 suites and rooms, two
restaurants, a bar, swimming pool and spa,
the palace has been completely redesigned
and refurbished by designer Adil Ahmad.
Originally built in 1729 by the Maharaja
of Jaipur, the palace is set in vast gardens,
and features the original marble staircase,
intricate chandeliers and mirrored ceilings.
Ahmad, who was commissioned by the
royal family of Jaipur, has included the
use of traditional royal motifs and family
crests combining classic architecture
with modern colours. Sujn palaces,
camps and lodges ofers a range of unique
destination experiences.
11
Santa Marina Resort & Villas
renovated
The three-year renovation of Santa Marina
Resort & Villas, a Starwood-owned
property, has fnally been completed, in
time for this years summer season. The
Luxury Collection Resort in Mykonos
features redesigned guest accommodation,
public spaces and restaurants led by
Greece-based SMK Interiors. Situated
just a few minutes from Mykonos town,
Santa Marina sits on a private beach and
features 100 guest rooms and suites some
with private pool. Its renovation refects
Starwoods broader strategy of investing
in the restoration of its Luxury Collection
hotels and resorts in Europe. The redesign
of Santa Marina is perfectly poised to cater
to a new generation of luxury travellers,
says Paul James, global brand leader, The
Luxury Collection, St Regis and W Hotels
Worldwide. That Greece is The Luxury
Collections third largest market globally
is a clear indication that the countrys rich
culture, distinctive heritage and indigenous
treasures make it a must for the most
discerning travellers.
12
Avani Hotels & Resorts opens
Malaysia
Luxury hotel brand Avani Hotels &
Resorts has added a ffth property to its
portfolio. The Avani Sepang GoldCoast
Resort on Malaysias west coast has been
designed in the shape of a palm tree with
fve restaurants, two bars and an Avani
spa. The beachfront property ofers 392
Polynesian-inspired guest rooms and villas
as well as a Malaysian-Chinese cofee
shop, a Chinese fne dining restaurant and
beachfront restaurant featuring live music
in the evenings. Avani Hotels & Resorts
is owned by the Thai-based Minor Hotel
Group and was launched in 2011 as a sister
brand to Anantara Hotels, Resorts & Spas
to consolidate the groups presence in
city and resort locations across Asia, the
Indian Ocean, the Middle East and Africa.
Other Avani properties can be found in
Sri Lanka, Vietnam and Malaysia, with
further openings due in Thailand, Sri Lanka
and Indonesia. Minor International is a
hotel owner, operator and investor, with
a portfolio of over 10,000 rooms across
more than 80 hotels, resorts and serviced
suites under the Anantara, Marriott,
Four Seasons, Elewana, Oaks and Minor
International brands.
13
Pottinger Hong Kong boutique
launch
A 68-room luxury boutique hotel called The
Pottinger Hong Kong has opened in Hong
Kongs Central district. Owned by Sino
Group of Hotels, the property is situated in
a Grade I historic residence with interiors
designed by Australian interior designer
Suzy Annetta and features photography
by acclaimed photographer and director
Fan Ho in the rooms and public spaces.
Established in 1994, Sino Group of Hotels
is the hospitality management arm of
Sino Group, and operates and manages a
growing portfolio of hotels, a yacht club,
serviced apartments and residential food
and beverage club houses.
Driving force
Luxury travel specialist Abercrombie &
Kent has joined forces with British brand
Land Rover to create a new adventure travel
partnership, Land Rover Adventure Travel
by Abercrombie & Kent. The collaboration
will ofer guests the chance to explore
landscapes that are well of-the-beaten
track, taking the drivers seat for themselves
so they can directly experience the full
capability of the Land Rover Discovery.
The programme kicks of with a Best of
British Tour aimed at overseas guests,
followed by tours in Africa and India;
travellers will be accompanied by qualifed
instructors and receive expert tuition.
Art room
Inspired by the culture of its location,
the East London luxury boutique hotel
Andaz Liverpool Street is launching Room
With a View, a collaboration with four
diverse British artists. Chris Price, Patrick
Vale, ILoveDust and Patrick Morgan will
create hand-painted murals in the hotels
Large King guest rooms, depicting their
interpretation of East Londons past,
present or future. The frst has been created
by London-based illustrator Chris Price
and his wife and collaborator Delisia
Howard. The second, by Patrick Vale,
will launch early October, while multi-
disciplinary English artists ILoveDust will
create the third room in January 2015.
The fnal one will be created by Patrick
Morgan in April 2015. We strive to fnd
new ways to support and celebrate local
art, design and British artists, says Tim
Flodin, general manager.
Luxury Brieng
18
Issue 171
O
n Madison Avenue, Nars is going uptown, taking no 971 for its frst
Upper East Side shop. Ermenegildo Zegnas latest outpost will be at
no 825. Just of the avenue at 57 East 57th Street, Kiton has its second store
in the city inside the Four Seasons Hotel.
On Fifth Avenue, Infnite Beauty will open at no 1031 to showcase a
variety of skincare collections featuring organic products, elements from
the Dead Sea, gold, diamond powder and more.
On the Upper West Side, Michael Kors is coming to The Shops at
Columbus Circle, the latest step in what seems to be a plan for world
domination. Canadas Judith & Charles opened its second store in the US,
at 188 Columbus Avenue. In Chelsea/Meatpacking, AYR, Bonoboss line
for women, now has its frst shop/ftting room at 45 West 25th Street.
In Greenwich Village, 3.1 Phillip Lim will open at 48 Great Jones Street
in August.
In SoHo, Bonpoint Soho has debuted at 398 West Broadway.
Woolrich, a casual apparel mainstay in Philadelphia, will take its frst New
York City location at 125 Wooster Street. David Yurman will open his
second boutique at 112 Prince Street. Artist Damien Hirsts frst retail store,
Other Criteria, is located at 458 Broome Street. Will Leather Goods
launched its shop at 29 Prince Street, its frst on the east coast. Googles
frst brick-and-mortar shop is joining the high fashion focking to Greene
Street, at no 131 realising that this particular street is one of the places to
establish a brand.
In Nolita/Tribeca/LES, La Garonne has fnally opened at 465
Greenwich Street. In lower Manhattan, the rebuilding of South Street
Seaport area will include an innovative series of rotating pop-up shops
in stacked shipping containers, courtesy of Dossier, an arts and culture
publication from just across the East River in Brooklyn. Among the retailers
is Selima Optique. This area continues to recover, and is attracting more
brands by the minute.
In Brooklyn, Kinfolk ofers a
clubhouse feel for its menswear,
accessories and a few assorted
gift items such as candles, at 94
Wythe Avenue in Williamsburg.
In The Hamptons, the
retailers and designers are
opening for the summer season.
Buy ftness apparel and music
at Bandier, 44B Main Street
in Southampton. Cruciani
Ds jewelry and accessories have a summer home at 28D Jobs Lane.
Over in East Hampton, designer swimwear is sold at Orlebar Brown, 23
Newtown Lane. La Perlas shop is at 66 Newtown Lane. Interior designer
West Chin has a showroom, West/Out East at 25 Newtown Lane.
Peloton, which sells indoor cycles that have live on-line classes, has its
outpost at the former Tifanys, 53 Main Street. Whites Apothecary now
ofers make-up artists and facials at 81 Main Street. Then fnd more beach
items at Lisa Perrys summer store at 67 Main Street. Stacey Frasers
apparel and accessories for women and children are at Pink Chicken, 156
Main Street, Amagansett. Natural fragrance company LURK is moving
into retail at 28 West Water Street in Sag Harbor.
FAITH HOPE CONSOLO, CHAIRMAN THE RETAIL GROUP
DOUGLAS ELLIMAN REAL ESTATE
Tel: 001 212 418 2000 e: fconsolo@elliman.com
KEITH WILSON, WILSON MCHARDY
Tel: +44 (0)20 7439 1666
New York trend: FiDi rivalry
As noted above, the Financial District is one of the busiest in the city, with two
major retail developments (Westfelds World Trade Center rebuilding and
Brookfeld Place), and smaller projects as well. On the WTC front, announcements
include: Armani, Apple, Bose, Breitling, Canali, Hugo Boss, John
Varvatos, Kusmi, Longines, Michael Kors, Montblanc, Stuart Weitzman,
Tifany, Tumi, Tom Ford, Aritzia, Sephora and Victorias Secret. Aspinal
of London is joining the huge luxury component at Brookfeld Place. This is one
rivalry that will be fascinating to see play out.
LONDON
RETAIL PROPERTY
NEW YORK
RETAIL PROPERTY
T
he press has a habit of focusing upon the launch of new
stores acquired with multi-million pound key money
premiums, seven-fgure rentals per annum and global
marketing campaigns to ensure successful arrival in London.
For the new entrant to the capital a more modest boutique is
usually the initial target. For those in this category here is a
quiet walk through the key luxury locations.
Burlington Arcade, Mayfair, has always provided a
high footfall. Rents have moved on (again) in the last year.
Expect to pay 160,000 pax for a single boutique (158 sq
ft). There are a number of new openings in the pipeline
as historic tenants refect upon a 200% increase in rents
over fve years, and discreetly move on. 10-12 Burlington
Gardens (by the Albany) attracts about the same level of rent
(165,000 pax) but the foor space is double at ground foor
(320 sq ft). The boutique is highly visible along Savile Row.
Elsewhere in Mayfair, on Albemarle Street, adjacent
to Royal Arcade, no 14 has been leased to Grimoldi
Jewellers from Italy. The 500 sq ft boutique was let at a
rent of 155,000 pax. For a larger space the rent would be
200,000 pax, for example at 37 Albemarle Street (848
sq ft) adjacent to the new Globe-Trotter store. Allegedly
40 Albemarle Street (Prt Manger) is under ofer at a
staggering 400,000 pax for a relatively modest ground
foor area of 630 sq ft. Admittedly, in addition theres a frst
foor and basement.
In Bruton Street, home to Stella McCartney, Matthew
Williamson, Temperley and Diane von Furstenberg, the
smallest boutique is no 21. The current Miller Harris has
been on and of the market for approximately six months.
The ground foor is 580 sq ft. Anticipate a guideline rent on
a new lease of 150,000 pax.
The natural pedestrian link between Bond Street and
Regent Street has for many years been relatively quiet in
terms of leasing activity but most recently Conduit Street
has seen the arrival of Christian Dior (no 16), the scheduled
openings of John Varvatos (no 16-17), DSquared (no 50-51)
and most recently announced Christian Liaigre in the former
Issey Miyake store (now ftting out 10 Brook Street). 55
Conduit Street has just been launched to the market, directly
opposite the new John Varvatos store. The ground foor is
619 sq ft. Two ofers at 150,000 pax have been reported.
In Davies Street, at the gateway to Mount Street, a
boutique in the same block as Vivienne Westwood would
rent at 125,000 pax (approximately 400 sq ft). Anticipate
the current tenant seeking a key money premium of at least
200,000; this no doubt infuenced by the Mount Street
factor where the same boutique would cost 100,000 pax in
rent and 1m key money!
At Brompton Cross where Brompton Road meets
Fulham Road and Sloane Avenue a small boutique in
Brompton Road of approximately 400 sq ft ground foor
will cost 125,000 pax in rent and a key money premium
of 250,000. 3.1 Phillip Lim, Acne and Carven have all
launched in Pelham Street adjacent Chanel and opposite
Carolina Herrera. J Crew (Draycott Avenue) and James Perse
(178 Walton Street) have also opened in the area.
On Sloane Street, no 35 (375 sq ft ground foor) is
available at a rent of 71,250 pax with key money premium
invited above 750,000.
As the key money premiums and rents would suggest
there is still a complete imbalance in the demand and supply
equation, even for the more modest-sized boutiques. And
if such a space (approximately 500 sq ft) appeared on Bond
Street... 500,000 pax and ofers over a small fortune please.
Luxury Brieng
19
Issue 171
O
slo has a population of 625,000, higher than
Dsseldorf, Copenhagen, Antwerp or Zurich. The
population is expected to increase by 30% over the next
13 years. It has the second highest GDP per capita in
Europe after Luxembourg. The total retail consumption
is higher in Norway than it is in Denmark or Sweden.
Oslo was the worlds second wealthiest city in 2011.
It has the fourth highest average income in the world.
It is the fastest growing city in Europe, followed by
Brussels, Stockholm, Copenhagen and Luxembourg.
A new fnancial district called the Bjorvika Project will
be directly connected to the centre of Oslo.
Despite these impressive fgures, Oslo has a less
developed luxury retail ofer compared to the other
Scandinavian capital cities, although demand from
luxury brands is increasing. Oslo has very few luxury
boutiques in relation to the scale and wealth of the city,
which represents a signifcant opportunity.
Karl Johans Gate is the main shopping street in Oslo.
It is mainly a mass market street but it is home to a
high-end shopping gallery called Eger, which has been
open since 2009 and has 10,500 sq m of retail space.
Retailers include Tommy Hilfger, Nespresso, Hoyer
Luxury and Follestad. Michael Kors will open a 200
sq m temporary boutique with frontage onto the street
in autumn 2014. It will then relocate to a corner fagship
location on Karl Johans Gate in 2016.
The side streets running of Karl Johans Gate,
including Akersgata, Nedre Slottsgate and Ovre
Slottsgate, are becoming the luxury retail pitch in the city.
Steen & Strom department store occupies an
entire block with frontage onto Nedre Slottsgate, Karl
Johans Gate, Prinsensgate and Kongensgate. The
department store is in the process of being completely
remodelled and it will have new concessions when it is
fully complete.
Acne has a fagship store at Ovre Slottsgate 11.
Louis Vuitton is located on Akersgata, adjacent to
Mulberry. However there is a general movement
towards Nedre Slottsgate. Gucci has recently signed
up next to Herms in the Steen & Strom building
with frontage onto the street. Armani will replace
Lexington, also on Nedre Slottsgate. Bottega Veneta
has opened at the southern end of Nedre Slottsgate on
the corner with Prinsensgate. Burberry is moving in
further along the street and currently ftting out its store.
French contemporary fashion brands, such as Sandro,
Maje and Zadig & Voltaire, are looking to open stores
in this area.
ANDREW BATHURST, DIRECTOR
HARPER DENNIS HOBBs
Tel: +44 (0) 207 462 9100 e: andrewbathurst@hdh.co.uk
EUROPE // OSLO
RETAIL PROPERTY
Brabus/ Mercedes collaboration
Brabus has made a business out of turning Mercedes-Benzes into even
more powerful and luxurious modes of transportation. The latest word from
Germany is that Mercedes will use Brabus to build its upcoming top-of-the-line
S-Class limousine. Expected to revive the Pullman name, the vehicle is set to
compete with the Rolls-Royce Phantom and Bentley Mulsanne at the top of the
market with a price as high as $1 million. It wouldnt be the frst time Mercedes
has called on the talents of Brabus for such a vehicle, the two having already
collaborated on top-of-the-line versions of the Smart city car.
Maserati wins Cartier Style & Luxe at Goodwood
A Maserati A6 CGS Berlinetta was named best in show at the Goodwood
Festival of Speed concours delegance, Style et Luxe, sponsored by Cartier.
Now in its 20th year, the event, which was held on the Cartier lawn beside
Goodwood House, celebrated the best in exquisite automotive design from the
dawn of motoring up to the present day. The Maserati, which is owned by Egon
Zweimuller Jr, took victory in the coachbuilt Maserati-only Class 3: The height
of fashion, and later beat of competition from the other class winners to be
the overall winner. Maserati was celebrating its centenary at this years Festival
of Speed with a line-up of illustrious road and racing cars. The road cars took
over the Stable Yard, while the racers thundered up the hillclimb course that is
the central feature of the annual festival. The judging panel - typically drawn
from outside the automotive industry - included Olympic gold medallists Sir
Chris Hoy and Sally Gunnell, actor Rowan Atkinson, Apple design chief Sir
Jonathan Ive, Anya Hindmarch, and other notable names from the worlds of
sport, the arts and design.
Jaguar Land Rover supports Invictus Games
150 Jaguar Land Rover employees will have the opportunity to work as
volunteers supporting the Invictus Games, the international sports event for
wounded warriors championed by Prince Harry. They will make up a quarter
of the 600 volunteers helping to run the games, with others coming from
the armed services and event sponsors. Jaguar Land Rover is the Presenting
Partner of the Invictus Games, which take place in September at venues made
famous by the London 2012 Olympic and Paralympic Games. The company
has been inspired by the vision for the Invictus Games, and we wanted to give
some of our colleagues the chance to help deliver them, said Simon Lenton,
HR director at JLR.
Bentley launches phone with Vertu
Bentley has signed a fve-year partnership deal with Vertu to produce fve
luxury smartphones, with the frst planned for launch in October 2014.
Each will encompass authentic Bentley design elements. The latest Bentley
content for owners and enthusiasts will be consolidated in an application
on the device. Wolfgang Drheimer, chairman and CEO of Bentley Motors,
said: The collaboration expands Bentleys luxury range into the cutting-
edge world of mobile communications and ofers customers a new way to
experience the world of Bentley. The Vertu for Bentley partnership will
be supported by a joint global marketing campaign, with Vertu working
closely with Bentley at both a global and regional level on events, CRM and
customer insight activities.
AUTOLUXE
Luxury Brieng
20
Faking it
The flm Tims Vermeer (2014) documents the story of a hacker/
inventor, Tim Jenison, as he successfully recreates a Vermeer painting
using various optical tools that were available to Vermeer in the
17th century. The flm makes a convincing case that technological
inventiveness, rather than artistic mastery, was the reason why
Vermeers paintings were so much more vivid and realistic than any
of his contemporaries work. Tims use of a cleverly positioned small
mirror - to evaluate the diference at any point between an objects
colour and its painted representation - turns the painters role into
nothing more than an information processor, albeit a very precise and
meticulous one.
The academic reaction to this analysis of one of the greatest painters
of the Dutch Golden Age has been somewhat negative, as you might
expect. This is mostly because any assertion on the use of technology in
fne art is wrongly interpreted as an accusation of being a faker, of not
really being as great an artist as one pretended to be.
In his book The Age of Intelligent Machines, Ray Kurzweil explains
the exponential acceleration of technology by arguing that any feld
of science or engineering that comes into contact with information
technology, will itself become an information technology, which then
allows it to evolve at the same rate of acceleration as information
technology. Since the 1970s, the efect of this acceleration has been
visible in just about every sector of industry: planes become fying
computers, cars become computers on wheels, and the collective
intellectual output of humanity becomes accessible on pocket-sized
computers called smartphones.
And yet, Kurzweils central claim - that artifcial intelligence will
surpass human intelligence within the next 25 years - seems to trigger
a rather negative reaction among academics. Every time AI reaches a
new groundbreaking result in a feld thought to be critical to developing
intelligence, true intelligence is apparently about something even more
elusive, and the method used to achieve the result is derided as faking
it, much in the way that technology in fne art is thought of as faking it.
Technologys impact has been huge in the luxury sector, too,
not only because it has helped some adventurous brands go much
further than previously thought possible, but mostly because
it has signifcantly reduced the cost of producing high quality
goods, thereby making them available to people who, until not so
long ago, would not have been the luxury sectors target audience.
As a result, a similar kind of denial has been creeping into the
luxury sector, belittling the achievements made by newcomers and
tech-oriented brands. Teslas cars, apparently, have no love. The best
new world wines, apparently, have a got technologique. Brands like
Apple are, apparently, masstige. Never mind the fact that everyone
remembers their jaw dropping when they frst got into a Tesla, drank
a glass of Bonny Doons Cigare Volant, or had an iPhone in their
hands, true luxury suddenly seems to require many more elusive
attributes, and technology is somehow perceived to be just a way
of faking it.
Is it true you need soul to create great art? Yes. Is it true there is
more to intelligence than beating Kasparov at chess? Yes. Is it true you
need culture to create luxury products? Yes. But technology does not
fake those human attributes. Rather, it augments humans ability to
leverage those attributes, and to allow more of us to enjoy their
fruits. Technoluxe doesnt fake luxe, it augments it.
Withers researches the new meaning of
wealth in the 21st century
As a law frm, we frequently work with large, wealthy and successful
families and their businesses around the world. Just as every family
unit is diferent, so each family business has its own unique hallmarks
and varies according to its sector, size, geographical location and the
personal vision of the family behind it.
We wanted to verify our own assumptions about successful families,
the challenges they face, and particularly what they view as the purpose
of their wealth in the modern world. We sought out frst-hand views from
leading international family business members, refecting a global mix of
perspectives. From December 2013 to March 2014, with the assistance of
research agency Scorpio Partnership, we spoke to 16 members of multi-
millionaire and billionaire families from the US, Europe and Asia.
These conversations revealed that generational succession in
wealthy families around the world has led to a fundamental re-
evaluation of the purposes of wealth and the role of family businesses.
In the words of one interviewee: The most important things are how
you make it and how you distribute it. If you can do that in a way that is
socially acceptable and keeps your family happy, then you are winning.
For many wealthy families, we found that simply having large
amounts of money to invest is not enough to provide purpose and
cohesion to the broader family group. Many are responding by re-
immersing themselves in active business operations, and/or using their
wealth to efect positive changes in their communities.
The research established fve key lessons that wealthy families have
learned through coping with the challenges of succession and working to
preserve their assets and family unity.
1. Transitions are complicated Whether selling a business, setting up
a foundation or passing control of wealth to the next generation, families
should ask themselves Why are we doing this? at each transitional
stage, to fnd the common objectives that will keep them and the family
wealth intact.
In Asia we have three generations living side by side the hard business
stuf has become the easy stuf, and the soft family stuf has become the
hard stuf.
2. Take your time As a collection of individuals, and not an
organisation, families require a unique leadership style which should
involve listening, learning, observing, sharing and understanding.
Family members often think they are unique, with the right skills, so
you have to be willing to let go. Sometimes you have to be willing to lead
from behind and recognise just because you can do the job, doesnt mean
you have to.
3. Leading with principle Wealth ownership means that attention
is trained on you. Family heads should lead by example and the wider
community will view wealth ownership with greater respect when it is
used as a force for positive social change.
Values cannot be taught. You have to inculcate them through your own
actions.
4. Recognise your limits Within a family and a family business there
are many roles to play; no single person can play them all well. Once
skills, strengths and motivations are accurately assessed (including ones
own), other family members and professional advisors can be efectively
appointed to fll the gaps.
As a leader you have to be open-minded and accept that other people
are sometimes smarter and better than you A business family has to be
multi-disciplined and that means accepting outside help sometimes.
5. Giving the next generation just enough Each generation should be
able to think of itself as the frst generation. This means that those in the
next generation are given everything they need to be successful and no
more. For those in older generations, this also means recognising when
to step aside. It is better to let children fnd their own way... If they want
to come into my family business, they can, but they will have to earn
their place, just like everyone else.
DIGITAL THINKER Alexander Gall LUXURY LAW Sarah Cormack
Alexander Gall is co-founder of the brand design studio Gall (www.galle.com).
Its portfolio includes Yves St Laurent, Faberg, Marchesa, Corum, Boucheron,
Jimmy Choo, Asprey, Garrard, Villa Feltrinelli, Marbella Club, Michael Dyens and
many leading luxury hotels
Sarah Cormack is a partner at Withers (tel: +44 (0)20 7597 6165; sarah.cormack@
withersworldwide.com). Withers clients in the luxury sector include Matthew Williamson,
Aquascutum, David Collins, MaxMara, By Terry, Spencer Hart, Ermenegildo Zegna, Etro
and Soho House.
Issue 171
Asimilarkindofdenialhasbeencreepingintothe
luxurysector,belittlingtheachievementsmadebynewcomers
andtech-orientedbrands.Teslascars,apparently,haveno
love.Thebestnewworldwines,apparently,haveagot
technologique.BrandslikeAppleare,apparently,masstige
Luxury Brieng
21
LIMITED EDITIONS
N
ews arrives of a Kickstarter project a
bright idea in search of crowd-funding
to turn it into a viable business aimed
at capturing the romance of the handwritten
word. Le Guest Book, the creation of two New
York designers, Eitan Cohen and Alon Seifert, is
a place to collect memories, write down things
about your hosts and bring back a sense of
old-time hospitality. An eyecatching and quirky
short flm demonstrates the concept, which says,
essentially, we need to write down the important
things that make up the stories of our lives, our
get-together experiences.
In a digital world, they say, where the
instant and the temporary have become the
norm, deep, longlasting experiences are a
thing of time long past. We set out to make an
ideal gift, something we miss, something that
will stay with you and become a part of your
social culture.
It seems the New York designers are not
alone in feeling the allure of crisp paper, pen,
ink and the need to scribe words and pictures
by hand. An enterprising London pair, Emily
Richards and her husband Ed, in part as a
reaction to the prevailing cultural dominance
of email and text, have set up an old-fashioned
printing business, starting with printed and
personalised notecards. These are not only nicer
to receive than an email, say Ed and Emily; but
also, through handwriting, a more poignant and
meaningful way to remember the sender.
That they both gave up successful careers
to start this venture says much for the Richards
belief in the full circle of the handwritten
word. Originally trained as a sculptor at
Camberwell College, Emily had joined the
luxury jewellery world, working for John Ayton
and Annoushka Dukas when they ran Links of
London; and as a buyer for Bec Astley Clarke
at astleyclarke.com. Ed worked in the City.
Both felt the need for a creative outlet as a
counterpoint to their day jobs, so they signed
up for a short course in Letterpress printing,
thinking it would become a hobby.
We found it fascinating, says Emily.
So we decided to start new careers, creating
original, unique, high quality stationery which
would encourage people to put pen back to
paper and have a bit of fun at the same time.
They bought an Adana eight-by-fve
Letterpress printer a machine originally
manufactured for amateur printing and frst
retailed in 1922 and started to collect the
traditional lead typefaces which ft into it. Each
lead letter is individually placed to make a word
or sentence, which is then ftted into a chase,
a padlock for a logo to remind them of the
padlock Ed gave Emily when he proposed to
her. A very personal back-story. They have been
developing sets of notecards with messages
whose sentiment is partly conveyed by the
typeface. An old-fashioned thank you, for
example, appears in a mixture of Times Bold
with Old English; Totes amazeballs, on the
other hand, is in chunky, bold Rockwell Shadow,
built to catch the eye of the younger generation.
(Catchphrases on the cards are a constantly
evolving source of amusement.)
There are hundreds of diferent typefaces
out there and we are physically collecting the
ones we like most, which will make an impact on
the card, says Emily. They are made of lead or
wood, and you can buy them new, secondhand
or online. Replica versions have become very
popular as decorative accessories in the home,
but they dont work in a press unless they are of
a certain height.
Shortly after attending a pre-Christmas rare
brands market, Kennington Lane was picked up
by online marketplace notonthehighstreet.com,
which gave the business the exposure it needed.
This has been backed up by activity on social
media FB, Twitter, Pinterest which is having
the desired efect, without, of course, running
up huge marketing costs. Fairs and fetes are still
seen as a good way to spread awareness and
meet the customers, and for the customers to be
charmed by the tactile quality of the products,
and the sense that they are uncovering a bit of
a secret.
Having recouped their initial investment,
the founders are focusing on the hot trend of
personalisation, creating From So-and-so
cards that whimsically allow, say, a newborn
baby to announce his or her own arrival.
Personalised stationery and bespoke invitations
will follow, along with printed gift boxes that
can be recycled as treasure troves, holders of
memories. Its still too soon to talk about a
retail boutique, but you could just imagine it: a
place, like Il Papiro in Florence, to revel in lead
lettering, coloured inks and rich papers...
I think its something thats come around
again, says Emily. Everyone is so busy with
texts and emails, its lovely to receive something
handwritten in the post its becoming more
and more popular. Its also about trying to
fnd something a bit diferent, a bit quirky, not
necessarily found in hundreds of high street
stores all looking the same. And I would not
underestimate the importance of recording
memories by pen. People are going back to the
sentimental ways, seeing handwriting as a way
to trigger memories.
The Kennington Lane Press is not alone
in doing what it does; but the enterprise has a
kind of nostalgic, personal, zeitgeisty appeal
which echoes the sentiments behind the Le
Guest Book venture in New York. It will be
interesting to watch where they go over the
months to come.
Email thekenningtonlanepress@hotmail.co.uk
Itsatime-consuming,manual
process,butworthit.Eachletter
isunique,andeachprintedcard
diferentfromthenext,dueto
thenatureofprocess,thetextureof
thepaperandtheamountofinkyou
mayhave
Whenitcomestomakingconnections,youcantbeatold-fashionedpenandinkfor
conjuringuppeople,placesandpastevents.Twobusinessesaregoingretro,picking
uponthereactionagainstdigitalconversations
INKED IN
which slots in... And then you ink up a plate and
press the paper against the type... As Emily says,
Its quite a time-consuming, manual process,
but defnitely worth it. The impression it makes
is so much nicer than something coming out
of a computer. Each letter is unique, and each
printed card is diferent from the next, due to
the nature of process, the texture of the paper
and the amount of ink you may have. Our paper
is Italian, Fabriano Mediovalis, with a deckled
edge and a lovely feel which highlights the
tactile quality of Letterpress and holds the ink,
not allowing it to bleed or smudge.
And so, just over a year ago, the Kennington
Lane Press was born named after the street
where the Richards have their studio with
Issue 171

22
Luxury Brieng Issue 171
ALTERNATIVE VIEW
A
short while after selling my previous
business, global sustainability
consultancy Clownfsh, I felt that further
action was needed: for most people, positive
social and environmental action still felt like a
burden. A simple way of integrating good
working practices into business and everyday life
was required, which would make consumers feel
even more enthusiastic about their purchases.
Consumers have little knowledge about the
value chain of companies, and frankly its not at
the forefront of their minds when they buy into
a product or service. Having said that, people
want to do the right thing, so providing
consumers with relevant information about a
companys actions, at the point of sale, allows
them to make more informed choices and,
potentially, generates revenue for the brand.
An immediately identifable trust mark, which
stood for recognised values, was needed.
Karen Hanton, founder of TopTable (sold to
Nasdaq-listed Opentable in 2010), and I founded
Positive Luxury. In the past 13 months, more
than 300 brands have received a Butterfy Mark
a trust mark awarded to brands in recognition
of the responsible way in which they manage
product production, environmental resources,
employee relations, distribution and other
aspects of their operations.
In 1987 Gro Harlem Brundtland defned
sustainable development in a report called Our
Common Future as forms of progress that
meet the needs of the present without
compromising the ability of future generations
to meet their needs. Companies are
recognising that preserving craftsmanship,
resources and good working relationships is the
only way to ensure enduring success.
By its nature, the luxury industry in
particular is geared towards respecting craft
and preserving history, and we work with
brands across diferent sectors such as
Neals Yard Remedies, IWC Schafausen and
Essence London, the luxury, ethical concierge
service to promote their achievements and
philanthropy.
IWC Schafausen has been a member of
Positive Luxury for over a year now and has
recently launched a programme to help raise
funds for the preservation of the Galapagos
Islands in partnership with the Charles Darwin
Foundation. IWCs CEO Georges Kern says of
working with Positive Luxury: We are
delighted to receive the Butterfy Mark because
we frmly believe that sustainable action,
particularly in the luxury watch segment, not
only consolidates our brands reputation but
also its competitiveness.
Membership with Positive Luxury is annual
and the Butterfy Mark is licensed at a fee that is
calculated according to the brands turnover.
We continually re-evaluate the performance of
member brands, and have had to turn down
prospective members if they are deemed not to
meet strict criteria. Each brand is assessed on
Thevalueofmembershipisassured,
andwhenconsumersbuy
somethingtheylovetheycanaddto
thisfeelgoodimpactbyknowingthat
theyveboughtfromabrandthat
canbetrustedtoupholdthehighest
workingstandards.Thiswillonly
servetoencouragefutureinteractions
withabrand,andreinforcetheloyalty
showntowardsit
a case-by-case basis via an application form
that looks in detail at fve areas of the brand:
Governance, Environment, Community,
Innovation and Philanthropy. The standards
were drawn up in consultation with experienced
industry fgures such as Sir Jonathon Porritt,
co-founder of Forum for the Future, Sylvie
Benard, president of Institute Inspire, and
Niall Dunne, chief sustainability ofcer at
British Telecom.
So the value of membership is assured, and
when consumers buy something they love they
can add to this feelgood impact by knowing that
theyve bought from a brand that can be trusted
to uphold the highest working standards. This
will only serve to encourage future interactions
with a brand, and reinforce the loyalty shown
towards it.
Once a brand has been awarded with the
Butterfy Mark it is then free to use this
anywhere it wishes, such as on packaging,
labels, website, third party sites and on all
internal and external communications. The
award becomes an immediate distinction of
quality and mindful production. To accompany
the award each brand is also given a profle page
on our website where consumers can read more
about the brands sustainability initiatives in a
jargon-free, easily accessible language, view
products, campaigns and editorial.
In the age of social media, support or
derogation of a companys ethics can be
shared instantly and because of this,
consumer trust will only continue to
become more important as a driver of proft
and loss. In addition, a move towards
purchasing goods online and the consequent
decline in the number of potential face-to-face
encounters with brand ambassadors, means
businesses must fnd simple ways to convey their
story and connect with their target audience.
This year Positive Luxury is launching
Click to Trust which will encourage consumers
to indicate their support for a brand online.
Consumers will also be able to view a brands
actions before making a purchase. With this
online trust network we hope to build a global
index of trusted brands, as rated by consumers,
for consumers.
The future will not simply see a
competition between brands which are
sustainable and those which are not: it will
be about which brands are trusted to stand
by the positive working practices that they
allude to within their marketing material.
As a result, the brands which succeed will be
those that can communicate in a jargon-free
way with their loyal shoppers.
Diana Verde Nieto is founder and CEO of Positive
Luxury, a Young Global Leader and advisor to the
World Economic Forum
Diana Verde Nieto
THE FEELGOOD
FACTOR:
driver of consumer loyalty
Luxury Brieng
23

Following almost a 3% decline in May, the
TAG Luxury Index has been roughly fat (down
0.5%) since June 6, performing better than
the major global indices which declined 2.0%
on average. The biggest gains were reported
by Mulberry Group (up 6.5%), Herms
International (up 4.4%), Ralph Lauren (up
4.1%) and Prada (up 2.9%), while the largest
declines were at Coach (down 12.5%), Blue
Nile (down 8.9%), Brunello Cucinelli (down
8.5%), and Tods (down 7.8%). Year-to-date,
the TAG Luxury Index is down almost 13%
compared to the 1.4% increase on average
registered by the major global indices.
Tifany shares improved 0.8% over the
past month following its appointment on March
19 of Ralph Nicoletti as CFO. Management
remains committed to driving long-term
annual sales growth in the low-double-digits
range, driven by mid- to high-single-digit same
store sales growth and 3%-4% square footage
growth, with the opening of 15 stores per year.
Moreover, management believes Europe
remains underdeveloped and sees the potential
to reach approximately 50 stores in the region
over time, compared to 38 stores as of 1QC14.
On the other hand, Japan reported revenue
declines in April and May following a pull-
forward of sales ahead of a consumption tax
increase on April 1. As a mature market, Japan
is expected to post low-single-digit annual
growth over time. Looking ahead, we expect
the 2QC14 comparable sales to beneft from:
(1) an easier comparison of 5% (vs 8% in 1Q13);
(2) healthy demand for fne, statement and
solitaire jewelry; (3) continued improvement in
fashion jewelry, helped by the ongoing success
of Atlas; and (4) price increases implemented
over the past year; partially ofset by (1) still-
lackluster trends in Europe given softness in
both local and tourist demand; and (2) a slower
performance in Japan due to the pull-forward in
sales ahead of the consumption tax increase.
Burberry Group shares declined 3.9%
over the past month prior to its 1QF15 sales
report, but bounced back 3.2% on the day of
the release of its latest quarterly sales results,
which were better than expected. Burberry
reported a frst quarter retail revenue increase
of 9.1% to 370m, topping the Street estimate
for a 3.9% increase to 352m. On an underlying
basis (ex currency), sales improved 17% vs
a Street expectation for an 8.4% gain. The
17% like-for-like increase was comprised of a
12% same-store sales increase and 5% square
footage growth. The company saw double-
digit growth in Asia Pacifc (led by mainland
China and Hong Kong) and the Americas
(where digital contributed signifcantly), while
the EMEIA saw softer performance with a
low-single- digit gain resulting from slower
spending in the Eurozone from both domestic
markets and tourists (strength in Chinese
tourists was an exception). Russian tourist
spending remained a drag to the retail topline.
The company also saw double-digit growth
across all three main product categories (mens,
womens and accessories). Trafc remained
softer, but conversion increased, in line with
prior trends. The comp growth was roughly
evenly split between volume and pricing
gains. Management is now working with the
assumption of capturing pricing increases
in the low- to mid-single-digit range going
forward. Digital performance also continues
to add to the topline, and online trafc and
conversion both increased.
Although LVMH (down 3.4% over the past
month) saw weakness during 1Q14 in Wines &
Spirits from the destocking of cognac inventory
in China, we are encouraged by the solid sales
acceleration of Fashion & Leather Goods (+9%
at constant currency vs +7% in 4Q13), helped
by the turnaround eforts of Louis Vuitton
and the other fashion brands. Also, Selective
Retailing (+10% at constant currency vs +13%
in 4Q13) surprised on the upside thanks to
healthy momentum of both DFS and Sephora,
where the Sephora US comp maintained an
approximate 10% growth pace, which should
bode well for Ulta and the prestige beauty
players, such as Este Lauder and LOral.
Wines & Spirits (-3% at constant currency vs
+4% in 4Q13) witnessed the largest shortfall
due to the impact of cognac destocking in
China. However, management expects the
magnitude of destocking to ease through the
year amidst steady customer demand and low
inventory levels. Watches & Jewelry (+5% at
constant currency vs +6% in 4Q13) continues
to beneft from upbeat retail sales and solid
jewelry demand, which is an encouraging read-
across for Tifany, while wholesale remains
impacted by cautious orders from multi-brand
watch retailers.
Coach shares continue to remain under
pressure, falling 12.5% over the past month,
putting the shares down 37.5% YTD, after
the company hosted an Investor Day in NYC.
The primary takeaway for the event was the
disappointing guidance outlook, driving the
stock down 9%. Management expects revenues
for FY15 to decline in the low-double-digit range
compared to the prior consensus expectation
for a 2.2% decrease. Coach expects to close 70
underperforming North American full-line
stores in 2HC14, while investing signifcantly in
its international segment (currently 30% of total
revenues) through growing its footprint over the
next two to three years.
Swiss watch exports in May rose 1.2% to
CHF 1,870.5m (or $2.11bn). The CHF 3,000+
category outperformed the other price
segments. Sales in the US, Japan and Singapore
helped to ofset negative growth in Hong Kong,
China and Germany.
The TAG luxury stock index
TIFFANY Management
believes Europe remains
underdeveloped and sees
the potential to reach
approximately 50 stores
in the region over time,
compared to 38 stores as
of 1QC14
BURBERRY The company
saw double-digit growth
across all three main
product categories (mens,
womens and accessories).
Trafc remained softer, but
conversion increased, in line
with prior trends
LVMH Weakness during
1Q14 in Wines & Spirits from
the destocking of cognac
inventory in China, but
acceleration of Fashion &
Leathergoods helped by
turnaround at LV and other
fashion brands
TAG Luxury stock ( ) FTSE 100 ( )
S&P 500 ( ) France CAC ( )
Coachexpectstoclose70
underperformingNorthAmerican
full-linestoresin2HC14,
whileinvestingsignifcantlyinits
internationalsegment
Issue 171
FINANCIAL REPORT
DANA TELSEY, LUXURY GOODS ANALYST
Telsey Advisory Group (TAG)
Tel: 001 212 584 4606/4632
Luxury Brieng
23
DOWN
0.5%
June 2014 - August 2014
2012 2013 2014
Luxury Brieng
24
Issue 171
Its happening again! That kind of seismic shift
that changes our perceptions and
preoccupations, rewriting the luxury rulebook.
We are coming to the end of a cycle that
began in the late 1990s and has driven a period
of unprecedented growth in the scale, impact
and reach of luxury brands, the only blip in this
cycle being the economic chaos of 2008, and
what chaos! It says something for the power of
the cycle that the result was only a blip for
most luxury brands. The last 15 years saw
growing interest in the luxury sector, a focus
on heritage, craft and authenticity, a return to
the roots of luxury which stimulated a
previously unheard of appetite for the sector,
particularly among consumers who would not
previously have indulged in the world of luxury
and luxury brands.
As this cycle slows we see the polarisation
of luxury, creating a distinct dynamic with
strong growth in accessible luxury and elite
luxury, with brands caught in the middle
ground struggling to defne their identity and
appeal. We have written extensively about this
polarisation and its impact; what we have not
shared yet is what we expect to happen next.
What is the future of luxury? What will drive
the value of this sector for the next 10 to 20
years, and what factors will determine who will
succeed in a rapidly changing landscape?
Context is everything. Our brands
now exist in a world where most afuent
consumers have already over-indulged;
they are expert, discerning luxury
consumers able to diferentiate and
evaluate products, brands and
experiences based on their own
preferences and concerns. The experienced
luxury consumer is maturing and becoming
more measured in his or her approach, joined
by the emerging luxury consumer whose
luxury learning curve is breathtakingly steep.
And, last but not least, Gen Y, the new
generation of luxury consumers, now in their
20s and 30s, are the fastest growing group of
luxury consumers worldwide. In fact Gen Y is
the fastest growing demographic in the
marketplace, accounting for 25% of the
worlds population (compared to Gen X 21%,
Boomers 18%). In developed economies the
percentage is slightly lower: 20% in the UK
for example, with a higher proportion in
emerging economies.
Gen Y attitudes are a major infuence on this
zeitgeist moment and they are remarkable for
their contrast with those of Gen X and the
Baby Boomers, the demographic groups
responsible for the meteoric rise of the luxury
brand. Gen Y consumers are confdent,
they have a voice, their own opinions and
a healthy disregard for authority. This
means they are looking for brands they
can engage with, brands that listen to
them and with which they can enjoy a two
way dialogue. They are focused on
making meaning in their lives rather than
making money, and for them the
traditional status of a luxury brand is not
as motivating as fnding a brand with
aligned values, a transparent philosophy
and shared cultural perspective. They are
generally distrustful and have the lowest trust
scores in their assessment of the media,
corporations and governments. To this
consumer, your brand is guilty until proven
innocent! The group has multiple interests
and passions and is much harder to pin down
in traditional marketing terms. They are also
tech-dependent, they expect instant access,
gratifcation and an unprecedented degree of
personal integration.
BRAND MATTERS
Asthiscycleslowsweseethe
polarisationofluxury,creatinga
distinctdynamicwithstronggrowth
inaccessibleluxuryandeliteluxury,
withbrandscaughtinthe
middlegroundstrugglingtodefne
theiridentityandappeal
So what will this mean for luxury in the next 10
to 20 years? What are the macro trends we will
need to understand and exploit?
We are all aware of the growing infuence
of consumers as advocates and the
requirement for greater transparency in our
businesses. We have observed the
increasing importance of experience,
with brand experiences vying with
products for share of luxury spend. We are
also about to undergo a fundamental shake-up
in luxury retail with digital platforms
overtaking traditional retail formats in
performance and importance, and with this
change a re-evaluation of the role of the
fagship with smart brands accelerating the
convergence of the source of creation with
fagship experiences.
What happens next is no less exciting or
demanding. If old luxury was about escape,
new luxury will be about acceptance.
Consumers will want luxury brands to
possess a clear philosophy; luxury will be
defned by meaning; new luxury will be
that which can exist in the real world
rather than providing an escape from it.
If old luxury was about network, new
luxury will be about knowledge. We will
be drawn to luxury brands capable of
providing us with a deeper engagement in
our interests no matter what tribe or peer
group we belong to.
And if old luxury was about heritage, new
luxury will be about innovation. Creativity,
technology and innovation will drive growth in
the sector as they did when the sector emerged
at the turn of the last century. For the last 20
years luxury has been left behind in the
innovation race. Brands capable of playing
catch-up and embracing new ideas will
lead the category, creating a new breed of
luxury products and services. Consumers
will care less about a brands heritage and
more about its plans for the future.
The exciting thing about this change
is the optimism it brings: a forward-
thinking agenda and a higher degree of
consumer involvement than we have
experienced since the luxury sector
evolved from a collection of small
businesses focused on providing largely
bespoke services. Luxury brands have been
slower to respond to these changes, creating
an opportunity for new brands to emerge and
challenge the status quo or established brands
to challenge their past and create a previously
unprecedented speed of growth.
Time to forget everything you thought you
knew about luxury. Welcome to tomorrow, its
time to enter the world of low impact luxury!
Georgia Fendley is the founder of brand
consultancy Construct
www.constructlondon.com
Georgia Fendley Georgia Fendley
HERE COMES
tomorrow

Luxury Briefing Issue 171

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