Current Issues in Luxury

Not so cool: Once the ultimate luxury and sign of true success, the private jet is becoming a taboo of waste. Private jets, also called "general aviation" instead of commercial, contribute 2% of greenhouse gases and are seen as environmentally unsound, especially when they carry only one or two passengers. A recent article describes declining sales since 2008 and asks if small jets may be dying.

Top concerns in the luxury industry:

1. Counterfeits & Copyright Infringement

2. Globalization & BRICK

3. Humanity & worker respect

4. Environment & sustainability

5. Technology, internet & digital capabilities

6. Creative directions, editions & collaborations

7. Economic viability, leadership

1. Counterfeits & Copyright Infringement

We are starting with counterfeits because we covered this last week. We concentrated on the black market sales of counterfeit goods and the government control of the illegal activity.

There is an additional aspect of inspired and copied designs which are not illegal counterfeits but are copyright infringement. Below a legal battle between Burberry and US retailer T.J. Maxx simply concerned the sale of "similar" plaids. Imitations effect the overall uniqueness of a luxury good.

2. Globalization & BRICK

The force of globalization is a coming together of economic, cultural, political and technological systems around the world. Luxury always aims for the global consumer, to be the best among all nations.

There are 3 main aspects:

-globalization of production: parts developed in many locations to produce one product

-globalization of markets: products from many places available in one marketplace

-globalization of the economy: transnational alliances such as the G-20 & IMF control the world economy

Brazil, Russia, India and China have aligned forces as BRIC which in some analyses also includes South Korea as the strongest emerging markets for the 21st century.

Brazilian luxury department store Daslu is a prime example of BRICK strength. The store includes not only the best luxury products from around the world but offers luxury services such as children's day care and psychiatrists.

Globalization means selling to more informed global consumers. McKinsey reports show that consumers now look at following:

-The hunt for value

-The desire for the exceptional

-The search for meaning (added value)

-The online migration

-Openness to emerging markets

3. Humanity & worker respect

Humanity and worker respect declined with the disappearance of artisan guilds and unions. Now most workers must defend their own rights. Globalization has encouraged companies to be more considerate of their outsourced labour but luxury brands are still problematic as the report on Ralph Lauren, below right indicates.

4. Environment & sustainability

The green trend has been especially influential in luxury tourism where environment is especially important. Below left the Taj Exotica Maldives and right the Club Med Almadies Senegal both use sustainable materials and have low impact daily operations.

5. Technology, internet & digital capabilities

Technology is the prime site for strategic luxury growth. Social media is still a grey area for commodification but mobile devices are the top target for expansion. Below Luxury Society's Digital Agenda provides luxury technology stats for 2010.

Below luxury brands' website availability in other nations. Hermes and Jimmy Choo have the greatest global presence while YSL and Marc Jacobs the least.

6. Creative directions, editions & collaborations

Like any era, luxury companies must maintain creative vitality. The creation of limited editions has increased entry level luxury along with lower priced labels and collaborations like H&M. While the variety expands the luxury market, some argue it weakens label exclusivity and strength. In the next decade, luxury directors must think of ways for creative growth without compromising integrity and value.

7. Economic viability, leadership

The economic downturn in 2007 challenged the luxury industry. In order to stay alive, some small companies sold to larger corporations for security and direction. By contrast, Taittinger, returned to family ownership and small scale integrity and authenticity in production. See a profile here.

Addtional examples of small scale production are Lesage embroidery for Chanel above, and Christian Louboutin below, who limits his red bottomed shoe production and the store size.

Finally, part of economic leadership is noblesse oblige. Luxury companies with huge profit margins can benefit by giving back. Below Louis Vuitton hosts the Espace Culturel for global artists and it also economically funds educational art programs.

Copyright Infringement

Here are some images of an article on knockoffs in Australia. Read the full story here.

How Luxury Lost It's Luster: New Luxury

by Diana Christe

Nowadays, luxury seems to be everywhere we go. In every big, small and far off city, luxury is overwhelming our daily lives- whether its being advertised on the walls or being sold in your nearest mall- even hotels and cars are bearing designer labels. Buying and selling luxury has become less of a unique experience and more of a business competition around the world with less and less attention to detail.

Where has the real luxury gone? Does it still exist? without including the word "mass".

In most large brands such as Louis Vuitton, the experience of buying a product is identical no matter which city you're in. It has lost uniquness and if a customer spends more than fifteen minutes selecting a shoe, the sales assistants get frustrated. There are very few luxury brands who have maintained the special treatment that is associated with luxury. However, Loubutin is one of them.

The difference between Louboutin and LV is that Louboutin is still owned by its founder, who has very little interest in the business aspect of the company. All his attention is focused on designing a beautiful pair of shoes. In fact when asked about the sales of a year, he has no idea and he refuses to put up advertisements or sell his company.

Another brand who have maintained the meaning of luxury is Daslu in Sao Paolo Brazil. Every customer is treated like royalty, but more importantly, like a friend. They have helpers guide you through the store and help you choose the best outfit for you. In Daslu there is everything from a chapel to get married, from the best fashion brands, to even car retailers. Its the experience of a lifetime, and thats what luxury should be.

“LUXE REDUX” Jeanie Casison

by // DA

The financial crisis has impacted the world leaving us with “do more for less.” For many people luxury is about authenticity, practicality and sustainability not about having the latest status symbol. There’s a new sensibility to value. Value became the “in” thing. Shifts in priorities and lifestyle preferences have occurred.

Exclusive merchandise brands and travel experiences still have a place in corporate incentive programs though luxury has a new luster. People want meaningful luxury, products that make experiences different in their lives.

Corporate social responsibility is part of this new sensibility. Anything that wraps a humanitarian or philanthropic element is quite appealing now. It became about finding the core values and contributing to society, the emotional elements of doing good work.

As a response to the recession people who would indulged in designer goods and brands at a price that was their luxury all of a sudden decided it was irresponsible to want diamond when the world markets were collapsing. Companies in designer luxury goods started to offer new items at a more reasonable price – mini collections.

Due to the attitude change, Cartier, still doing well today though that’s because its not about a diamond-encrusted watch but a performance watch. With people staying home relaxing with friends and family, electronics has become a high redeeming category in merchandise.

“Luxury is constantly being redefined. Now people are very much hungry to know why great things or services cost what they cost – a sense of connoisseurship. People want value, the unique.” Luxury is more about creating an emotional connection today.

I came across this a month or so ago, it an american company called "thursday bag" so you may have already seen them, i only just thought to post them. they are canvas tote bags, with what i belive is a digital print of the iconic birkin bag

they are being sued by hermes, but i thought it was just interesting, and actually quite funny.


posted by Hari Greenough

Lux Inside: French Artisans

Click here to see the full article about X-ray photos of luxury goods, revealing the integrity of construction.

Counterfeits

Counterfeiting is estimated to be 7-10% of global business. In 2010, online counterfeit businesses alone generated almost 120 million in profit. France, a center for luxury and fashion, has aggressive anti-counterfeiting laws. Above in Paris, The Musée de la Contrafaçon displays counterfeits that have been confiscated. Below the anti-counterfeiting campaign is aimed at consumers who run the risk of being fined.

While counterfeiting seems like a contemporary concern it actually goes back to Roman culture when emperor Cicero's extravagant citron wood table was copied by regular citizens. The wood, also called Thyine, can be copied by appearance only because the original has a scent that stays with the wood after it is cut.

What's real? Below left the artisan aspect of luxury handmade goods used to be the trait of authenticity. Now in a world of mass production, authenticity is understood as a guarantee provided by the brand and packaging that mark the good.

What's not real? There are 3 general guidelines used on a global level.

1-Unauthorized use of a trademark, partial or complete imitation of a trademark owned by others

2-Product substitution - Unauthorized reproduction of a trademark on a product not manufactured by the brand owning that particular trademark

3-Illegal reproduction, as in digital copies that are sold as original

Any of these products can be bought by both knowing and unknowing consumers and they are not they same as products simply "inspired" by originals, which remain a legal grey area.

Above a fake Chanel briefcase displaying real Chanel goods

Counterfeit goods include not only luxury and fashion but pharmaceuticals, electronics, cosmetics and more, some of which put consumers lives at risk.

The counterfeit problem is the global network of organized crime. Below Louis Vuitton averages 20 raids each day with anti-counterfeit offices in major trade ports.

On the map above and in the images below Guangzhou, known as "factory of the world." The city is a major problem area for both counterfeiting and pollution. Below right the city confiscates motorbikes as contributing to pollution but continues to build factories.

China was at first resistant to counterfeit laws on the communist premise that individuals could not own ideas but over time laws have increased. Below a major Chinese sting on counterfeit cigarettes.

The counterfeit goods are shipped to black markets around the world. Below Canal Street NYC, Santee Alley LA, Istanbul and Marrakech.

Global customs are the major site of confiscation. Many counterfeiters send goods through "cleansing ports," other less suspect cities before arriving in US or Europe. Below counterfeit Burberry. See more at The Guardian.

Online counterfeiting is also policed. Below a website that offered replica Louis Vuitton items was shut down. It posted the court proceedings on its website but along with a link to its new website offering the same replica bags.

Below are the official marks used by the US Homeland Security when it intervenes with an online counterfeit business.

Studies have revealed that despite the global problems, consumers do not mind buying or wearing fakes and fakes may simply lead them to buy the real thing later on. In observing others, consumers consider something real if the person looks like they could afford it. Below the Martin Parr image shows the conspicuous consumption of luxury which emphasizes the display of goods and encourages the desire for luxury brands.

The presentation of luxury goods in fashion media associates them with use and on human forms, rather than the object alone. This aspect of seeing the good in use seems to give consumers a higher overall value to the product. Below an editorial on luxury goods by Inez & Vinoodh for W.

By contrast counterfeit goods are displayed behind closed doors, on the ground or sold from trash bags with no presentation. Below a miss-spelled counterfeit vendor from the Facebook page "Darling I can tell by the rest of your outfit your Louis Vuitton is fake."

A larger question about counterfeits are the values they represent. In the odd ad above the false bag is rejected though fake conversation is accepted. Mark Ritson explained in a study women wearing fake Chloe sunglasses were more likely to lie on a test while those wearing the real thing were more likely to be honest. There is an idea of holistic authenticity, that true self expression is from inner values through honesty in every aspect of life.

Superficial values are promoted by the fashion industry and counterfeit goods with false values are accepted by consumers but authenticity can still be communicated in luxury and fashion through natural simplicity. Above the Before & After photo series for V Magazine by Inez & Vinoodh shows models sans makeup and after styling, communicating the value of raw authenticity. Below the Spring 2010 ad campaign for Missoni featured the actual Missoni family in a gesture of genuine authenticity.

There is also a possibility to make good use of the illegal counterfeits. In some cases safe counterfeits have been donated to those in need. Above and below artist Sarah Kissell re-cycles counterfeit scraps for art work.