Future of Luxury, PPR declines, Sustainable retail, Mizrahi’s Liz launches, Coach profits drop

The Future of Luxury in a Recession (Atelier)
As companies like Coach, Gucci Group and LVMH report their results this week, this video from Atelier, a division of Leo Burnett, highlights some of the cataclysmic changes in consumer behaviour that will drive the luxury of the future. What do you think of their assertions?

PPR Says Luxury Sales Remain ‘Sluggish’ (WSJ)
“Mass retail and fashion group PPR SA posted a 2.6 percent drop in first-quarter sales and said revenue in its luxury unit remained “sluggish” in March, signaling that demand for high-end products is still suffering amid the downturn.”

Business focus on eco-fashion: Greener clothing sized up (Telegraph)
“Allanna McAspurn, UK general manager of Made-By, is attempting to kick start an initiative funded by the European Union and the Dutch government to promote sustainable practices in the retail clothing industry.”

Mizrahi’s star back on the rise (Variety)
“While many of his fellow fashionistas are struggling to survive in an economy where aspirational shopping is as out of date as last season’s handbag, Mizrahi’s stock is clearly on the rise.”

Coach Profits Fall (WWD)
“Coach Inc. on Tuesday posted a 29.3 percent decline in third-quarter profits, hurt by the pullback in consumer discretionary spending, but said that it was confident in its business outlook.” (Subscription required)

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2 comments

  1. No offense to the Atelier team as I’m not clear on the intended audience of this production, but the copy from that video reads nearly verbatim to so many product releases for jewelry, personal furnishings, beauty, home spa and pampering goods I saw come to market over the last three or four years. I’m reviewing my notes from Fresh, Kai, Sjal, several smaller jewelry labels, also press releases from the St Regis and Bliss Spa facilities who all hoped to cement this same slightly glowy idea of a meaningful, personal, pampering luxury, but in the context of their intimately scaled or extravagantly cleansing, reviving and therapeutic products. I’m not familiar with this group but it seems the video was created in 2007 not 2008 let alone today. I won’t claim to know where things truly are or where they are going, but I feel comfortable reminding us to bear in mind: even though nearly everyone in and out of fashion has indicated their awareness of a shift in the collective sensibility of things, the desire to express oneself, to stand with or for something, as well as the desire to stand apart from something, has definitely not changed. You know what, on second viewing, if I were to be honest I’d think this video was geared to the logo-dependent shop floor personnel of early 2008, paid for by Westfield Shoppingtowne group. It’s that generic, and the presenter has a sort of accent that Americans would guess to be slightly chavish, since that kind of characterization was a bit of a fad in the states and associated with those who wore moderate luxury logos with blunt affectation. Looking forward to hearing someone’s positive response to the video since this left me cold.

    Randall Todd from Daly City, CA, United States
  2. Wow, do Leo Burnett’s clients actually pay money for this drivel? A chav spewing forth one cliche after another — who would actually pay this company for this nonsense?

    David Royce from London, London, United Kingdom