Luxury in a Recovering Society©

LUXURY IN A

RECOVERING© SOCIETY

LONDON 03

The Panel

Njide Ugboma Pippa Isbell Patrick Jephson Editor-in-Chief Worldwide Director of PR Writer, Broadcaster Let Them Eat Cake Magazine Orient-Express

Fran Page Alan Treadgold Georgie Coleridge-Cole Head of Marketing Head of Retail Strategy Founder & Editor Liberty Leo Burnett Sheerluxe

Liz Hambelton Fiona Sandserson Peter Howarth Contributing Beauty Editor Managing Director Managing Director Grazia The Luxury Channel Show Media

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SUMMARY OF MARKET TREND REPORT Part 1 What’s going on in the luxury market

• Recession created resentment of wealth • Consumers are shying away from overt displays of status • There is willingness to spend on luxury if it is toned down and genuinely deserves its luxury status • Bling was already on its way out before the recession • The market crash accelerated the association of overt luxury with the fast-buck culture • People are making more discriminating luxury purchases and will often compensate by budgeting elsewhere • There is a new emphasis on the personal relevance of brands • Status is still important - but it is only to be recognised by those in the know • There is a new consumer mindset: more discriminatory, making integrity an important factor

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SUMMARY OF MARKET TREND REPORT Part 2 How to address the new trends

• Brands must truly fulfil luxury criteria to justify purchase • A marketing ‘message’ is no longer enough; brands now require stories that imbue a purchase with greater meaning • Stories set a brand apart, but they need to resonate with values and experiences • It is no longer enough for a brand to tell one story which it projects to consumers • Brands need to involve consumers who relate on a more level playing field than ever before • Brands can use online as a tool, not a hindrance, to connect with their consumers • Luxury brands need to provide multiple stories for their consumers to blend and colour with their own

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SUMMARY OF MARKET TREND REPORT Part 3 What are the brand stories to tell?

• The story of superior performance: substantiated by how and why it is the best, reassures the consumer • The story of sophistication: a subtle language that assures the consumer of a shared taste and aesthetic • The story of craftsmanship: upheld by expertise, time spent, tradition and beautiful design • The story of collaboration: gives a brand an exciting hybrid story, co-opting the creative partner’s brand attributes, for a collective experience • The story of exclusivity: imbuing an item with a sense of rarity and exception, which justifies the expense • The story of involvement: the rising demand for bespoke items builds the status and exclusivity of both brand and consumer • The story of innovation: keeps brands relevant, particularly those with a heritage story; and a really significant innovation can create a luxury brand • The story of heritage: not just a name and a date of inception; but a proper history, whether a story of longevity or a cultural immersion • The story of provenance: if a brand comes from a location famous for that product, that place’s story becomes its own • The story of ethics: a green or fair trade badge isn’t enough - there must also be an authentic, inspirational or heartwarming tale

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hat’s going on in the luxury market

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hether splashing out on bling with a bonus, or flaunting the fact you can buy the latest top-of- the-range in ‘What’s the difference between a banker and a pigeon? any consumer A pigeon can still leave a deposit on a new BMW.’ category, it’s no longer - Worldwide email joke in 2009 fashionable to be seen to ‘Barclays bankers £500,000 banquet. Fatcat bankers have a lot of disposable flew to Italy yesterday on an all-expenses-paid bash - income in these days as the rest of the country was left in financial meltdown.’ of recession… - The Sun

‘Top 10 worst WAG moments - footballers wives criticised for excessive spending on fashion, kitchens with six ovens, and £1 million weddings: - The Mirror

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s this bad news for luxury brands?

‘The new spend-averse consumer is now wanting much more reassurance on value’ - Alan Treadgold, Head of Retail Strategy, Leo Burnett

‘It is no longer acceptable to be obviously broadcasting status.’ - Patrick Jephson, Writer, Broadcaster

‘People don’t want to walk down the street wearing something that makes you look filthy rich’ - Peter Howarth, Managing Director, Show Media

‘The days of belt notching and showing wealth and status that way are well and truly fading, a trend that was only accelerated by the recession.’ - Pippa Isbell, Worldwide Director of PR, Orient Express

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ut it’s not the whole story…

The market for luxury goods and services is not diminishing dramatically, so much as going undercover. In a recovery economy, people are looking to treat themselves - but they need stronger reasons than ever to buy. The flavour of the month just won’t do: they need to be sure that one or more qualities ‘People are willing to spend on luxury again; it’s just that the sense of shame attached to overt displays of wealth has stuck.’ will justify that - Pippa Isbell, Worldwide Director of PR, Orient Express purchase for some time to come. ‘Super-premium brands are somewhat more resilient than less expensive discretionary spend products as they’ll continue to be valued.’ - Alan Treadgold Head of Retail Strategy, Leo Burnett

‘It is how you don’t flaunt it that has become the new status symbol.’ - Patrick Jephson, Writer, Broadcaster

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new consumer mindset: the importance of integrity

For consumers, the age of bling and other outward-directed symbols is over. Such overt displays of spending have become associated by many Britons, Western Europeans and metropolitan Americans as synonymous with less sophisticated people from nouveau riche ‘The luxury peacocks will keep away for a long time to /developing parts of the world. come thanks to consumer reticence when it comes to overtly showing what they can afford.’ - Alan Treadgold, Head of Retail Strategy, Leo Burnett

The global financial crisis accelerated the latent public resentment of those regarded as only having eyes for the fast buck. Identifiably expensive clothing, cars and accessories marked people out, fairly or unfairly as ‘those responsible’ for the crisis. ‘There is definitely a sense of “luxury shame” now. But in many ways there is Big, bold logos turned into badges of shame. a relief attached to having to live in this And so there has been a genuine wish new balanced way - it was a pressure to disassociate from perceived financial to fit in and keep up with that level of consumption.’ - Pippa Isbell, Worldwide irresponsibility. Director of PR, Orient Express

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Note, however, that we are talking about attitudes, not ability to purchase. There is still disposable income and a taste for luxury. Now, the attitude is one of introspection and discretion - spending money not to show that you’ve spent it, but on goods and services that have a real meaning to the purchaser. This often means that it ‘There is a polarisation of spend as consumers happily spend at a premium but cross-subsidise in other parts of their spend. is one special purchase Clothing is a good example - mixing a Calvin Klein jacket, for mixed and matched example, with a pair of Top Shop jeans.’ - Alan Treadgold , with cheaper goods. Head of Retail Strategy, Leo Burnett

‘The importance of having a point of view, of mixing experiences for savvier combinations very much applies to travel. People will fly cheap on Ryanair and stay in a five-star hotel. The consumer feels good about making more mindful, balanced choices.’ - Pippa Isbell, Worldwide Director of PR, Orient Express

Personal connections with a brand or an appreciation of its qualities not only create a deeper source of pleasure in the purchase than mere status symbols, but also serve to Now people are far more discerning and re-evaluating justify making a luxury purchase, what constitutes a luxury experience.’ - Peter Howarth, if there is any lingering spend-guilt. Managing Director, Show Media

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Status is still important. It’s just that the communication of that has changed. The idea is no longer to rub status in the faces of those without it, but to be noticed by those with the same superior tastes - a Berluti shoe or logoless Oliver Peoples sunglasses are recognisable to those in the know, but pass unnoticed by those out of the loop. Status has now become bound up with integrity. True luxury is not flashy fast-fashion or this month’s ‘Status now is about showing personality, knowledge, and investment - luxury purchases often represent investment rather than expenditure. hot bar/restaurant/holiday destination, There is a much greater desire to know the true value of what we’re but a brand that resounds with a story. buying - that rational underpinning will completely influence consumer behaviour.’ - Fiona Sanderson, Managing Director, The Luxury Channel

‘Sophisticated luxury users tend to direct their status messages at increasingly focussed groups of people; building small and intense knowledge groups.’ - Georgie Coleridge-Cole, Founder and Editor, Sheerluxe

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ow to address the new trends

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new way of communicating status: the strength of stories With the consumer of luxury goods requiring greater meaning and value from their purchases, as well as justification for making them, a marketing ‘Brands are having to learn how to talk to their consumers more than ever. They will need to message is no learn how to deliver their message in an engaging longer enough. and entertaining way, so that it becomes more editorial than marketing.’ - Fiona Sanderson, Managing Director, The Luxury Channel

Brand messages are deemed superficial, whereas stories hold the values and substantiation the consumer is now looking for. When fleshed out in editorial, images and ‘Movies and documentaries have an extremely important part to play - by telling the story. you’re not only video in magazines, inspiring consumers but you’re also providing the rational adverts and online explanation they’re looking for.’ - Fiona Sanderson, they give the consumer Managing Director, The Luxury Channel licence to desire. ‘Products need an amazing story behind them, as it gets harder and harder for brands to get into magazines.’ - Liz Hambleton, Contributing Beauty Editor, Grazia

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Consumers are picking and choosing these stories to create their own anthology. By personally assimilating a range of stories, the consumer highlights their own values and interests. A bespoke suit indicates a love of detail, an Omega Speedmaster creates memories of watching the moon landing, but counter-pointed with own-brand Specsaver ‘We have seen the rise of the smarter know-it-all consumer and that is a glasses and a Mötorhead trend that is set to continue beyond T-shirt under the suit. the recession.’ - Liz Hambleton, Contributing Beauty Editor, Grazia

The DIYster woman might save money on nail salons and manicure herself; but she keeps money aside for her six- weekly hair colour and cut, ‘But we’ll see the return of a more magpie-like after reading about Cate consumer who is willing to explore again - but Blanchett’s hair regimen. with a new emphasis on the personal relevance of brands and products.’ - Liz Hambleton, Contributing Beauty Editor, Grazia

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new marketing imperative: offer brand stories for your consumer to own It is no longer enough for brands to tell one story and project it onto the consumer ‘The joy is in the subtlety, the stories behind everything we do. And it’s the stories and conversation which create a shared experience.’ - Fran Page, Head of Marketing, Liberty

Brands must recognise and respect the fact that consumers understand and love messages delivered via stories. For different purchases they have different priorities - craftsmanship, superior performance, innovation etc. Luxury brands need to provide multiple stories for their consumers to blend and colour ‘We need to think about the purpose of luxury. Now, it’s less about pure consumption and more about the multiple with their own. messages you are sending out.’ - Patrick Jephson, Writer, Broadcaster

‘The luxury experience means very different things to different people. A brand needs a clear point of view on what it stands for but also flexibility on how to communicate their equity to different audiences. Having a personal point of view is the most enduring form of luxury.’ - Alan Treadgold, Head of Retail Strategy, Leo Burnett

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Brands must now recognise the consumer as a powerful storyteller in their own right. They operate on a more level playing field than ever. This impacts on celebrity fashion and beauty endorsement. Celebrities are still important, but there is less slavish apeing of their look, and people are just as likely to be influenced by their peers as by the stars. And when a brand allows a (controlled) forum for relating to the product, that equality is ‘We’re seeing the end of the ‘whole look’ celebrity influencer. reinforced, to Celebrities will continue to be important, but not as clothes horses everyone’s - it’ll be the smaller creative details we’ll look to and want to adopt benefit. as our own. The biggest influencer is now increasingly our fellow consumer - the sisterhood knowledge and the style tips shared between ordinary girls and women.’ - Liz Hambleton, Contributing Beauty Editor, Grazia

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hree key tactics

1. Involve consumers

Creating experiences is an effective way of blending your brand story with those of the consumer. Personalised tailoring to suit a customer’s individual requirements (and, at ‘The consumer is now far less passive and wants to be more involved in every part of the process. The boundary between production and retailer is blurring the upper end, uber as people demand more interaction with the brand.’ - Fran Page, Head of customisation - bespoke) Marketing, Liberty allows a relationship to build between ‘In terms of luxury resorts - it’s less the name that matters now, and more the experience. Furthermore, people want to personalise as well as tailor those consumer and brand. experiences.’ - Pippa Isbell, Worldwide Director of PR, Orient Express

Luxury has always been portrayed as a fantasy item, but having someone open up their world, express their personal thoughts and relationship with clothes, fashion and luxury is unparalleled. Look at the way the Burberry website - theartofthetrench.com - engages its customers around the world.’ - Njide Ugboma, Editor-in-Chief, Let Them Eat Cake Magazine

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2. Online is a tool, not a hindrance

Many luxury brands have been wary of the internet and its uncontrollability. Luxury watch brands, for example, will not sell online because of the internet’s association with fakes. However, if it is artfully operated (as in ‘Digital serves a purpose by keeping the brand image conceptual and abstract - free from the Burberry’s case), the digital sullying effect of the inferior “stories” of its customers.’ - Georgie Coleridge-Cole, Founder and world can engage consumers and Editor, Sheerluxe influencers with your story and close the deal successfully, while ‘The online environment can dilute brands if not done properly. But sophisticated websites have the huge advantage of being able to track interest and recreate the same sense of still preserving the brand image - exclusivity and ‘special access’ that you find in the real world.’- Patrick Jephson, and sometimes enhancing it. Writer, Broadcaster

‘The online environment is booming for beauty - bloggers have far more power to drive sales and trends than any assistant in-store. Going to beauty counters has never been a pleasurable experience, whereas people are enjoying the conversation and experience of searching, conversing and purchasing online.’ - Liz Hambleton, Contributing Beauty Editor, Grazia

‘Fashion bloggers were sitting front row at Burberry - literally two seats away from Anna Wintour! There’s something about blogs like Style Bubble and Jak and Jil that makes fashion more approachable, relatable and engaging.’ - Njide Ugboma, Editor-in-Chief, Let Them Eat Cake Magazine

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3. Have multiple stories to tell

We have identified 10 core stories for the luxury market to tell…

The story of… superior performance The story of… craftsmanship The story of… collaboration The story of… exclusivity The story of… sophistication The story of… involvement The story of… innovation The story of… heritage The story of… provenance The story of… ethics

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ONE BRAND WHICH DELIVERS ACROSS ALL THESE If a brand wishes to inspire and engage the right consumer at the right time CATEGORIES IS and in the right place, one story is not enough. A single story may lose its LOUIS VUITTON potency. Much more powerful is to create what might appear to be one story but which in fact has many different facets: a story of craftsmanship may also have a story of provenance and heritage too, as well as exclusivity. Different stories thrive in different media, so Many of the brand examples featured in the following pages have multiple stories to tell. The company ticks the boxes of channel choice will also be One particular brand which delivers across all each core story identified above, a key part of this process. these categories, for example, is Louis Vuitton. and is brought alive in different media. From undoubted superior performance and craftsmanship, through collaboration with say the artist Richard Prince, exclusivity with its bespoke luggage-making service, to ethics, with its special auction last November at Sotheby’s - where LV invited the likes of Marc Jacobs, Patrick Louis and Annie Leibovitz to contribute items, and profits went to the Red Cross.

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hat are the brand stories to tell?

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The Story Of Superior Performance

The superiority story explains to consumers why a brand is quite simply the best of its kind. It is the simplest criterion of luxury. But the message needs to be substantiated with the story of why and how that superiority comes about. Another intent here is reassurance: putting consumers’ minds at rest that Brand examples: they are making the right investment. Crème de la Mer In order to tell the story of superior After 12 years and 6,000 experiments, Dr. Huber perfected the art performance, a brand might borrow cues of bio-fermentation… Something extraordinary was discovered: Crème de la Mer and its nutrient-rich Miracle Broth™. And just as from other stories, such as ‘craftsmanship’ Dr. Huber hoped, skin appeared dramatically smoother and miraculously or ‘innovation’ - these are the means by improved. Even the driest complexions were soothed on contact. which that performance is reached - but it is the superior ends that are important here. Loro Piana Their ‘storm cashmere’ is their usual finest cashmere treated so that it is water resistant - and is now even used in their sailing gear. The natural fibres are made totally waterproof and wind resistant by combining them with the most advanced technology - ‘a perfect synthesis of style and function’

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The Story of Sophistication Sophistication is perhaps the hardest story to tell as it is based on intangible principles. But therein lies its advantage too. If you can communicate a sense of sophistication, that act of communication becomes a sign of sophistication itself. It’s a private language. The consumer ‘gets’ the brand and feels the brand understands them. To tell this story effectively, brand ideas must demonstrate Brand examples: a subtlety of reasoning. Patek Philippe Stories of sophistication should The tag line runs: ‘You never actually own a Patek Philippe; you merely look after it for the next generation, you are actively assure the consumer of their taste, encouraged to pass it on to your son or sons. It suggests a society of or give them a credo to aspire those in the know: ‘A Patek Philippe watch is a silent statement about to (which is different to simply your values. Each Patek Philippe is made to become a story, a tale of saying that this item is something emotions. Who gave you the watch. On what milestone of your life. to aspire to owning). With what words. To whom did you pass on your watch. A labour of love received and given with love.’

Soneva Fushi A ‘jungle reserve’, where the likes of Madonna stay. Tapping into guests’ desire not to be seen as flash, they have created a deliberately basic-looking environment with rusty bicycles and a ‘no shoes, no news’ policy. Personal assistants are on hand throughout your stay. Guests here are effectively saying, ‘I have more taste and integrity than the people staying at the gaudy hotel down the road’.

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The Story of Craftsmanship

A consumer can find meaning, significance and value in the detail and subtlety of a product. The bling-shy consumer will be aware that some ‘luxury’ products are priced high simply through fashionability and will reject them. Craftsmanship will always beat mass-production for the true luxury-seeker. Stories of craftsmanship will often be told in terms of time spent on a product, BRAND EXAMPLES and the lavishing of personal attention Canali suits - the ‘handmade’ aspect. Such is the level of quality control at Canali that a bank of women is employed to stare at vast bolts However, there are other ways of cloth whizzing past their eyes on rollers, looking craftsmanship can be described if that for infinitesimal flaws. Seven seamstresses are employed to sew handkerchief pockets. does not apply to a brand: quality of construction, beauty or intricacy of design Berluti shoes or a traditional method can tell the story Berluti leathers come from young calves raised on a 100 percent vegetable diet in the Alps. This too. Often they will be combined with other guarantees a pure, dense and elastic skin of which stories such as heritage or provenance. only two per cent are chosen to make Berluti shoes. Over the years, the house has developed a patina technique inspired by the burnishing virtues of moonlight, giving the leather the lustre of a well- preserved piece of antique furniture.

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The Story of Collaboration A collaboration, if well done, can have an exponential effect on your brand and peoples perception of it. The very act of collaborating with another brand or creative source says something positive. You are a creative, dynamic brand who is Brand examples always on the look out for new ideas. You recognise excellence - and not only in your own specific field of expertise. Having an impressive Lacoste & Zaha Hadid name agree to collaborate with you shows that you are credible in The award-winning London-based architect has been working in a sporting context the greater community of sophisticated brands and are respected by in recent years - designing railway stations for a ski those worthy of respect themselves. train in Innsbruck as well as the London Aquatics Centre for the 2012 Olympics. She has also worked as The collaboration gains you an entirely new story to tell. It is a much in product design as architecture. In a similar way hybrid story, whereby you co-opt your creative partner’s most to the way she begins a building project, she took a digital prominent brand attributes, weaving their story into your own. rendering of the Lacoste crocodile logo and worked it into a fluid, undulating landscape on the shoe that adapts and moves The hybrid story has to make some kind of sense; a point where the two with the foot. brands meet. Consumers will be quick to spot a marriage of convenience, in which it is obvious that there is a purely financial motive. Kashimax & Paul Smith Japanese saddle specialist Kashimax worked with Paul Smith to Musical collaboration works best when the two artists share create a leather saddle decorated with the British designer’s a passion (Alison Krauss and Robert Plant’s exploration of blues signature stripes. If it had been another designer such as Alexander and folk, Raising Sand, as opposed to Tom Jones and Robbie McQueen, this could have been a gimmick, but Smith is known as a keen cyclist (he was born in Nottingham, home of Raleigh) and has Williams singing Are You Going To Go My Way?). In the same way, a bike decorating his Floral Street shop. the story of a luxury goods collaboration needs to start with the tale of what brought the collaborators together.

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The Story of Exclusivity

Traditionally, exclusivity simply due to the expense of an item was enough to satisfy the demands of the luxury consumer. Rarity was an additional attractive quality, which created demand. However this is increasingly not enough. The story of rarity and exclusivity now needs to be explained. Exclusivity because of the difficulty in obtaining a component of the product, because a designer has Brand examples: only created a limited edition, or because an item Lodger shoes is a prototype, taps into the consumer’s need to The British luxury footwear firm produces a Shoe of discover something new and get the early-bird buzz. the Month - a style which is available for only four weeks Limited Locations: In opposition to online availability and never again. The likelihood of encountering anyone with the same shoe as you is extremely minimal. Your handmade pair and samey shopping streets (not only ‘high street’ has your name printed inside and delivered to you personally. brand homogenisation, but samey luxury boutiques and outlets worldwide), there is a trend towards limiting Harry Winston the geographical availability of luxury goods. There are Created a New York collection, comprising exquisite designs inspired several advantages: the PR yield is higher for the brand, by Manhattan landmarks, like the art deco Chrysler building: one-offs that will speak volumes to lovers of the big Apple. while the thrill is higher for the informed consumer. Le Labo This fragrance brand has boutiques in NY, LA and Tokyo (as well as mini-stores in department stores in London and Berlin) produces an individual scent exclusive to each location, creating a sense of exclusivity for their consumers.

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The Story of Involvement

The involvement of the consumer in creating their own luxury goods is not new: couture dresses, bespoke suits and personal perfumiers have been the epitome of luxury for centuries. Increasingly a consumer’s proximity to the creative process, and their perception of being on a level playing field with a Brand examples brand, has become a positive indicator of brand exclusivity. Creed Brands needn’t fear consumer involvement. If the The fragrance has offered a bespoke service consumer is regarded as an equal in taste, the brand for 240 years. It made Fleurissimo for Grace Kelly’s can weave the consumer’s story into that of the brand. wedding to Prince Rainier of Monaco, as well as scents for Errol Flynn and Cary Grant. Today a customer can have a consultation As long as it is done in a controlled way, brands needn’t fear with sixth generation perfumier Olivier Creed, who will go away and make consumer involvement. If the consumer is regarded as an up a sample in Paris, before fine-tuning it after a second meeting. equal in taste, the brand can weave the consumer’s story into Burberry that of the brand in the same way as with a collaborator. The Art Of The Trench website has created a photo-led community of Burberry trenchcoat wearers and enthusiasts. It is edited, to control the As the consumer interacts more with the brand, the image of the brand, but essentially it puts the consumer on the same footing experience goes beyond a mere purchase, it is the as celebrities and style icons photographed by The Sartorialist’s Scott building of a relationship. Schumann and others. Orient Express The luxury holiday no longer involves sheer indulgence and being waited on hand and foot. On Orient Express holidays, increasingly the client helps create the experience of travel and, particularly in poorer countries, gets involved in the local community’s activities - eg, in Colca Canyon, Peru, feeding alpacas, cooking food with farmers.

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The Story of Innovation THE STORY OF While heritage has long existed in the DNA of almost all luxury INNOVATION brands, stories of innovation will keep brands relevant. JUSTIFIES LUXURY PURCHASES AS A Where a story of heritage is reassuring because of past GOOD INVESTMENT performance, innovation suggests that a brand is set to create a Brand examples IN THE FUTURE strong heritage in years to come. This is of course important for Alexander McQueen a new brand, but is almost more crucial for established brands. Not only did McQueen use innovative designs and The story of innovation says that it is not stuck in the past. materials - intensely detailed digital prints and the fused materials of his shoes - but he innovated in There are very clear examples of luxury brands earning fashion show presentation too, streaming his last show live on youtube. their success by starting off as innovative thinkers: Prada, for example, moves forward each season with new Swarovski technological advances in fabrics, cut and techniques The ‘crystal’ manufacturers have come a long way from making cutesy glass animals. Nadja Swarovski says, (like last season’s introduction of laser-cut leather). ‘Technology is going to keep us at the forefront, with innovations like integrated crystal, new interpretations, And some brands develop and use innovative technology as new projects. We’ve made crystal into a fabric with the genesis of their business: Nespresso’s neat, mess-free coffee crystal mesh. It turns into a fluid material and opens pods and machines not only make great coffee, but lead the the door to new applications.’ field in cutting-edge design and application.

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The Story of Heritage

Heritage is a traditional luxury message. The challenge now is to tell the story of heritage in a fresh way. This is the most literal ‘story’. The history of a brand, its cultural associations, its famous and respectable customers, can be woven into an interesting tale which will capture the imagination of the consumer and tap into their own interests and stories. Editorialising this story - researching the details, telling it in a compelling way - is essential to avoid Brand examples it sounding like a superficial, old fashioned cliché. Hermès The story of heritage works particularly effectively as From its Paris atelier on Rue Faubourg St Honoré, the Hermès a springboard for other stories, eg craftsmanship and family has created iconic pieces of fashion (including its famous provenance, and even innovation (if a brand’s heritage scarves and the legendary Kelly and Birkin bags) for nearly includes a track record of pioneering advancements). 125 years. The heritage story will most often describe Chanel a brand’s longevity, but if your brand is not Of course, all fashion ateliers with a history can look back fortunate enough to have 300 years of archives, through the archives - at Chanel, Karl Lagerfeld does there may be a cultural heritage to talk about an astonishing job reinterpreting Coco’s classics for the - an association with the creative arts, contemporary woman, channelling Chanel like no-one else can. with a sport, an admirable profession. Breguet Watchmaker ‘depuis 1775’ - plays on its historically significant clients of old… Napoleon Bonaparte, Winston Churchill (whose Breguet fob watch, given to him by his grandfather, was on display in the Cabinet War Rooms recently).

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The Story of Provenance

This is a sister to the story of heritage. The difference is that the measure here is of space rather than time. They can work in tandem: if a brand has been operating from a locale for many the provenential years, that can be an advantage. However you can have a new stories that brand born out of an established cradle of a craft or product. work best reveal As a reaction to overpriced goods from parts of the a geographical world deemed to lack the soul of the craft place Brand examples history that is both names such as Geneva (watch brands), Provence flawless and valid Santa Maria Novella (perfume), Florence (leather, original home of Gucci) even Northampton (Church’s shoes) become A Florentine apothecary since 17th century, originally run by monks and named after Florence’s first basilica. Favoured product of the spa at the Four Seasons, Florence. a credential, as they are synonymous with skill and knowledge in a specific field. Vilebrequin The provenential stories that work best reveal The men’s swimwear company was founded in St Tropez at the height of its fashionability in the early 1970s; with the first pair of shorts cut from a tablecloth a geographical history that is both flawless and on the terrace of the fashionable Café Sénéquier. valid. This is a story that will have to withstand scrutiny, as it has to be substantiated. So, no Dr Hauschka flags of convenience here. But the location Has had its own gardens in Germany since the 1920s; it has also set up gardens to justifies the highest quality of goods. grow specific ingredients in places famous for that plant, eg Bulgaria (the valley of roses) and Burkina Faso (biggest producer of shea butter). Dunhill Alfred Dunhill’s early motoring business at the end of the nineteenth century offered ‘everything but the motor’ and grew to become known, as it is today, for its quintessential Englishness, quirks and all, offering traditionally inspired menswear and accessories of the highest quality.

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The Story of Ethics In a world where oil companies are advertising their research into alternative fuels and changing their logos to flowers, messages of ‘green’ and fair trade’ are now expected and so slip below the radar. Labels declaring ethical credentials (a fair trade or organic certification badge, for example) can get lost among the bar codes. Stories that can actually prove ethical responsibility, however, are part of a luxury status. Brand examples: A brand pressing its ethical credentials needs to Edun go above and beyond the expected providing the Ali Hewson (Mrs Bono) formed the ethical clothing company after charity-related visits to consumer with a story when they make a purchase. Africa. Edun uses organic cotton products from Uganda - from seed to finished product.

There are many examples of high-end fashion Six Senses brands working with charities as part of a With their long-standing commitment to sustainability, the company is working to make the philanthropic and ethical motivation. The elegant Soneva Fushi resort in the Maldives the first island in the world that is carbon neutral. results are often stylish and imaginative, Merci rather than hair-shirts. This Paris shop, opened by founders of upmarket children’s retailer, sells fashion and interiors Complementary stories of provenance, with a flower and coffee shop, and all profits go to a foundation to help deprived children in Madagascar. Designers such as Stella McCartney, YSL and Azarro are happy to reduce their usual tracing the origins of the product, margins by 30 per cent, and others engage in unique collaborations or produce limited editions. can be important in some categories. Pippa Small The jeweller (who also has an MA in medical anthropology) has often collaborated with Nicole Farhi, Gucci and Chloe, and used ethical rough diamonds in many of her pieces. She’s merged her two interests working on craft initiatives with indigenous communities like the San Bushmen of the Kalahari and the Batwa Pygmies of Rwanda, helping them to research their traditional designs to generate self-sufficiency and income.

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ummary

• For consumers, the age of ‘bling’ and outer-directed symbols is over. • The mood is more introspective, more about meaning and discretion. • Consumers need justification when making luxury purchases. • They still want to communicate status, but through the lens of integrity. • Brand messages are deemed superficial, whereas stories hold the values and substantiation the consumer is now looking for. • Consumers are picking, choosing and personally assimilating these stories in order to create their own. • Brands need to inspire the right audience at the right time in the right place. Different stories will thrive in different media.

The atelier-lb contributors

Janet Carpenter Robin Harvey Blaise Douglas Manager Director Creative Director Copywriter

Lilli English Tom Sussman Jo Tauscher Planner Planner Board Account Director

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Contact atelier new york atelier london atelier tokyo t: +1 212 759 5959 t: +44(0)207 071 1166 t: +81 3 5437 7200 e: [email protected] e: [email protected] e: [email protected] contact: Aude Gandon contact: Janet Carpenter contact: Jim Franzen

atelier buenos aires atelier beirut atelier hong kong t: +54 11 4819 5959 t: +961 1 201 090 t: +852 2567 4333 e: [email protected] e: [email protected] e: [email protected] contact: Diego Beltran contact: Youssef Naaman contact: Margaret Chan

Luxury Trend Report 2010