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When referring to this work, full bibliographic details including the author, title, awarding institution and date of the thesis must be given e.g. AUTHOR (year of submission) "Full thesis title", University of Southampton, name of the University School or Department, PhD Thesis, pagination http://eprints.soton.ac.uk UNIVERSITY OF SOUTHAMPTON FACULTY OF BUSINESS AND LAW Winchester School of Art Brazil and the New Luxury An analysis of the consumption and creation of luxury apparel and accessories in Brazil by Antony Galsworthy BA Thesis for the degree of Master of Philosophy March 2014 UNIVERSITY OF SOUTHAMPTON ABSTRACT FACULTY OF BUSINESS AND LAW Winchester School of Art Thesis for the degree of Master of Philosophy BRAZIL AND THE NEW LUXURY An analysis of the consumption and creation of luxury apparel and accessories in Brazil Antony Galsworthy This research investigates how a rising nation’s consumers and producers are defining their relationship with luxury apparel and accessories. In the context of these products it seeks to identify the core attributes required to merit the luxury soubriquet, in order to arrive at a contemporary definition that also encompasses the impact of branding both of product and place of origin. Luxury consumption accompanies rapid economic growth and the BRICs (Brazil, Russia, India, China) have become significant markets for luxury apparel and accessories. The subject of the study is Brazil, which after China is the second largest market among the emerging economies for luxury goods at £4.3 billion. A purpose of this study is to consider the background to the consumption of luxury apparel and accessories in Brazil, how this is influenced by the youthful and dynamic nature of this nascent market and how it is served by foreign luxury brands. It addresses the distinct cultural values of the Brazilian market in seeking to identify the main factors and trends that dictate these brands’ behaviour; it goes on to advocate measures they might take to sustain and develop their presence in response to the changes wrought by a maturing market and the expectations of a more discerning consumer. 2 By contrast this study will also focus on the potential for growth in the creation of luxury apparel and accessories originating from Brazil, to identify, through the use of exemplars from home and abroad, how it might offer a new luxury that is distinctive and guilt-free and will have resonance with luxury consumers beyond its shores. This offers a signpost towards redressing the dominance of foreign luxury brands as the domestic luxury market matures. Cultural identity and the perception of luxury are constantly evolving and in this context Brazil has a further opportunity to mediate and ameliorate its competitive identity by embracing the new luxury. 3 CONTENTS Abstract 2 List of figures and images 6 Declaration of Authorship 8 Acknowledgements 9 INTRODUCTION 10 PURPOSE OF THIS RESEARCH 11 RESEARCH METHODS 13 PART I - The concept of Luxury, its association with brands and a contemporary definition 16 1.1 The luxury concept – fact or enigma? 16 1.2 Democratisation and brand supremacy 19 1.3 The luxury fundamentals 21 1.3.1 Narrative 22 1.3.2 Performance 26 1.3.3 Innovation 28 1.3.4 Communication 30 1.4 Summary 36 PART II - Luxury and Brazil – the market and attitudes 39 2.1 The global luxury fashion market today 39 2.2 Brazil – its origins and socio-economic development 43 2.3 Brazil joins the luxury world 47 2.4 Brazil and luxury apparel and accessories 49 2.4.1 The Brazilian luxury consumer 52 2.4.2 The Brazilian market for luxury goods 56 2.5 Summary 61 4 PART III - Brazil’s aspiring luxury fashion brands- sources of inspiration and impact on perception 62 3.1 Introduction 62 3.2 ‘Made in Brazil’ 62 3.3 Brand mediation through national cultural wealth 68 3.4 Brazil’s national brand image 72 3.5 Exemplar – The sustainability and lifestyle approach 79 3.6 Exemplar – The innovation and artisanal approach 81 3.7 Summary 88 PART IV - Luxury fashion strategies in Brazil and beyond 89 4.1 Introduction 89 4.2 Enablers for foreign luxury fashion brands in Brazil 89 4.3 Enablers for developing Brazilian luxury fashion brands 97 4.3.1 Reflect Brazil’s heritage, culture and nature in your designs and marketing 98 4.3.2 Capitalise on events that bring the world to Brazil 104 4.3.3 Going international to build a luxury identity 107 4.3.4 Nurture a renaissance of artisanal textile skills and craftsmanship 109 4.3.5 Influence opinion to make politicians more favourably disposed to luxury110 4.4 Visual promotion of Brazil – redefining traditional images 111 4.5 Summary 114 PART V - Conclusion 116 APPENDICES 120 Appendix 1: The Mulberry Approach 120 Appendix 2: Past and current promotional images of Brazil 121 Appendix 3: Luxury fashion shoot locations in Brazil 124 Appendix 4: A visual concept for New Luxury and Brazilian fashion 126 LIST OF REFERENCES 132 5 List of Figures and Images Figures Figure 1 A focus on customer experience 33 Figure 2 The luxury fashion brand building process 37 Figure 3 Luxury, fashion and premium positioning triangle 39 Figure 4 Brazil’s population by Income Class 49 Figure 5 The Brazilian luxury market by product segment 56 Figure 6 The Brazilian luxury market breakdown of online fashion searches by category 57 Figure 7 New foreign luxury brand entrants to the Brazilian market in 2012 58 Figure 8 Havaianas brand associations 77 Images Image 1 Sitio Roberto Burle Marx, Barra de Guaratiba, Rio de Janeiro 66 Image 2 H. Stern’s ‘Burle Marx’ collection 2013 67 Image 3 Mulberry Advertising poster depicting its country pursuits style and modelled by Saul and his wife 69 Image 4 The signature black and white wave pattern of the pavement at Copacabana, Rio de Janeiro designed by Brazilian polymath Roberto Burle Marx 73 Image 5 The beachside pavement design by Roberto Burle Marx at Ipanema, Rio de Janeiro 74 Image 6 Oscar Niemeyer Museum, Curitiba, Brazil, 2002 75 Image 7 The Oscar Niemeyer foundation, a building designed by Brazilian architect Oscar Niemeyer, is seen on the day of its opening in Niteroi 75 Image 8 Niterói Contemporary Art Museum, Niterói, Brazil, 1996 76 Image 9 Army Headquarters, Brasilia 76 Image 10 Marcia Ganem in her own creation at her Fashion Rio runway show 81 Image 11 Rendeiras de birros at work 83 Image 12 A statement piece, combining the genius of Marcia Ganem’s design with the work of the Rendeiras de birros. 83 Image 13 Example of the Trama de No technique of working semi precious stones with polyamide fibre used by Marcia Ganem. 85 Image 14 Martha Medeiros at work in her atelier 86 Image 15 Ivete Sangalo, a famous Brazilian singer & actress, performing at the FIFA Confederations Cup, July 2013, in a Martha Medeiros creation 87 Image 16 The American pop singer Beyonce dressed by Martha Medeiros in September 2013 87 Image 17 Menswear from the Givenchy favelas inspired 2014 collection 96 Image 18 Helio Oticica inspired dress by Barbara Cassola 103 Image 19 The 2016 Rio de Janeiro Olympic Games logo 105 Image 20 The 2014 FIFA World Cup in Brazil logo 106 6 Image 21 The current & popular imaginarium about Brazilian printed textiles 112 Image 22 Images of printed textiles in the Brazilian Press (1940s-60s) 113 7 Declaration of Authorship I, Antony John Galsworthy, declare that the thesis and the work presented in this thesis are both my own, and have been generated by me as a result of my own original research. Brazil and the New Luxury An analysis of the consumption and creation of luxury apparel and accessories in Brazil I confirm that: 1. This work was done wholly or mainly in candidature for a research degree at this University; 2. Where any part of this thesis has been previously submitted for a degree or any other qualification of this University or any other institution, this has been clearly stated; 3. Where I have consulted the published works of others, this is always clearly attributed; 4. Where I have quoted from the work of others, the source is always given. With the exception of such quotations, this thesis is entirely my own work: 5. I have acknowledged all main sources of help; 6. Where the thesis is based on work done by myself jointly with others, I have made clear exactly what was done by others and what I have contributed myself; 7. None of this work has been published before submission. Signed ……………………………………………………… Date: 31st March 2014 8 Acknowledgements I wish to thank my supervisors Professor Bashir Makhoul, Dr. Annie Makhoul and Mr. John Hopkins for their support, guidance and encouragement without which this project would still be inside my head instead of down on paper. The warmth and generosity of the many new Brazilian contacts that I have made in the course of this research has both surprised and gladdened me. Though only some of them are directly quoted in this study, all of their views have been valuable and informed the final outcome, so I do not hesitate to include them all here.