Retail rents to drop, Loewe appoints new CEO, Recession-proof handbags, India repositions

Empty retail space

Retail rents to drop 20% by end of next year (Drapers) “Retail rents are expected to drop by almost a fifth by the end of next year, as struggling retailers demand cheaper leasing deals in the recession.” Loewe appoints Lisa Montague as CEO (Drapers) “Lisa Montague will be reunited with designer Stuart Vevers when she joins luxury brand Loewe as chief executive later this year.” India tells foreign luxury

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FT Business of Luxury Summit | Debating the Future of the Industry

MONTE CARLO, Monaco — The global luxury industry has descended on the luxurious and beautiful principality of Monaco to discuss the future of luxury at the Financial Times Business of Luxury Summit at a time when there seem to be far more questions than answers. I am delighted to be representing Luxury Society, which is an official media partner of the conference. To start off the conference, we heard from Bernard Arnault, Chairman

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Luxury strategy revisited, Interview: Bernard Arnault, Gaultier goes 2.0, Britain’s fashion graduates

"Love of Pink" perfume ad, courtesy of Lacoste

Luxury marketing plays by a different set of rules (FT) “The present economic crisis has forced all companies to question their strategies and practices, and this has never been more crucial than for luxury brands and marketing.” Bernard Arnault: How to manage the transition into quality (FT) “Bernard Arnault, chairman of Möet Hennessy Louis Vuitton, the largest luxury company in the world, does not like the word

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Inditex Q1 loss, Net-a-Porter profits treble, Bulgari issues bond, China may escape, Ferraris to Versace

Zara S/S 09 ad campaign, courtesy of Zara

Inditex 1Q Net Pft Down 16%; May Trading Resilient (WSJ) “Inditex SA (ITX.MC), Europe’s largest fashion retailer by revenue, Wednesday said its first quarter net profit fell 16 percent on a slump in consumer spending in Europe, but its stock rallied after it reported resilient clothing sales in May and the first week of June.” Net-a-Porter demonstrates strength of business model as profits treble (FT)

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CEO Talk | Greg Furman, Founder and Chairman, Luxury Marketing Council

Greg Furman

NEW YORK, United States — As the recession wears on, luxury companies are beginning to realise they will have to do more than cut costs in order to survive this downturn. Indeed, for many brands, a fundamental repositioning and reevaluation of their long-standing strategies may be in order. In this kind of environment, many luxury executives turn to the New York-based Luxury Marketing Council, where their membership enables them to

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Buyer for Hartmarx, Luxury market woes, Fashion graduates outlook, Luxury challenges, Tommy gains

Barack Obama wearing a Hartmarx suit

British firm offers stitch in time to save Barack Obama’s tailor (Guardian) “About 3,000 midwestern factory workers at Hartmarx are lobbying creditors to accept a $128m (£79m) buyout by a London-based private equity firm, Emerisque Brands.” Fire Sale: Once Towering, the Luxury Market Teeters (Time) “The typical luxury consumer has traded in high-priced fashion for quality, durable goods at a lower price,

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Friday Column | Japanese Luxury Fatigue

Prada flagship store in Omotesando, Tokyo

LONDON, United Kingdom — The scariest news I have recently read about luxury was in Tuesday’s Financial Times. The Japanese, it seems, have stopped buying luxury goods. Luxury imports in Japan were down 10 percent and sales of LVMH in the country were down 18 percent in the first quarter. And no, it’s not just the recession. “This is not a blip. This is a long-term shift in the market,” Brian Salsberg, the

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Aquascutum teetering, Lower profits for Zegna, Bergdorf and Neiman share talent, Luxury here to stay, Bastian buzz

Aquascutum S/S 09 ad campaign, courtesy of Aquascutum

Aquascutum puts entire workforce into consultation (Drapers) “Aquascutum has put its entire workforce into consultation, fueling speculation about the future of the luxury heritage brand.” Italy’s Zegna sees lower profits in 2009 (Reuters) “Italian luxury men’s suits maker Gruppo Ermenegildo Zegna forecast lower profits this year after a 20 percent drop in net profit excluding an extraordinary item for

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The Barbie dream, Brands look East, Luxury demand in India, Insurers harm recovery, Deflation fears increase

Chinese kids sold 'Barbie dream' (BBC) "Mattel, the world's largest toymaker, opened the world's first Barbie store in Shanghai in March of this year, offering patrons a chance to live and embrace the Barbie lifestyle in its entirety." (See video here) Luxury brands look to China amid global crisis (Forbes) "China's 6 billion euro ($8 billion) luxury market accounts for just 3 percent of global sales, but China and Brazil are projected to be the two fastest-growing luxury markets for the five years through 2012, according to consulting firm Bain & Co." Recession: No let-up in demand for designer wear (The Economic Times) "Those who are rich in the true sense have enough reserves to maintain their lifestyle. They are…

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