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Showing posts with label Business Insights. Show all posts
Showing posts with label Business Insights. Show all posts

Luxury 360 - The fun of Beauty Part 2

January 25, 2013


In my last post: LUXURY 360 - THE FUN OF BEAUTY PART 1, I showcased the "fun-ness" of Chanel's Color Creativity video and the reasons luxury brands are instilling more creativity into beauty from a branding and sales perspective.  

Today I want to share a really interesting except from the L2 Think Tank Digital IQ Index supplement, "Beauty in China" to further illustrate the reason beauty is a key focus and growth area for luxury brands:
  • Young women in China currently spend 10-15% of annual income on beauty products
  • Trading up; the prestige beauty segment is outpacing the mass category in terms of growth
  • China is the largest online beauty market in the world with 17% of beauty bought online (compared to 4-6% in 'mature' markets) 
What trends are you seeing in the luxury beauty market?

Luxury 360 - The fun of Beauty Part 1

January 23, 2013




I swear the beauty industry keeps getting more interesting.  Take these still shots above from the Color Creativity video featured on Chanel's beauty webpage here.  The reinterpretation of the iconic design of Chanel beauty products is...well, fun!  

It makes sense that Chanel and other luxury brands are similarly increasing their point-of-view (and often investment) in beauty to entice consumers in new and innovative ways:
  • Beauty can be a huge revenue generator to brands (as it is for Chanel and Dior) and has higher margins than fashion. 
  • Beauty as entry-level priced products allows everyone to become part of a luxury brand's often aspirational world.
  • Once a consumer has been introduced to a luxury brand through beauty, a brand can then cross and up-sell to higher price point items.  
  • Apart from fragrance, which is a highly fragmented market with low brand loyalty, make up and skincare are high on brand loyalty.  Think about it.  Once you find a concealer, blush or even a mascara that works for you, you repeat buy.       
So much more to say on this topic but I thought I would split it into two posts.  More beauty insights to come in the next post, LUXURY 360 - THE FUN OF BEAUTY PART 2.

Digital Marketing 101

January 5, 2013



I took a great class on Digital Marketing a few months back and took the below quiz as an introduction.   Don’t peek at the answers below too quickly!

Questions:
1.     Who spends more time online on average? Men or women?
2.     What are the top three product categories that people buy via smart phone apps?
3.     What percentage of companies are now using Twitter?
4.     By late 2011, how many tweets were there per day on Twitter?
5.     What simple addition to a web page can help double conversion rates?

Answers:
1.     Women. Spending an average 8% more time at 25 hours per week.
2.     Groceries (76 GBP a month), travel tickets (56 GBP a month) and clothing (47 GBP a month).
3.     83% of companies are using Twitter as part of their social media strategy.
4.     250 million tweets per day or 3,000 per second.
5.     Adding photos of people to a web page can often improve conversion rates.  


PPhoto credit: Burberry

Barneys New York Electric Holiday

December 24, 2012



I went to Barneys New York yesterday in San Francisco to do some last minute shopping and came out with a nicely sized Electric Holiday shopping bag (the current holiday campaign between Barneys and Disney).  However, it wasn't apparent to me the relevance of Barneys Electric Holiday campaign with Disney until later on in the day when I watched this video.  Barneys is a luxury department store and Disney is the creator of our childhood stories and fantasies.  What is to gain by these two companies efforts in the key gifting period of the year except maybe to support Barneys childrenswear division?

How wrong was I!  The partnership is clearly aimed at adults.  It is a playful representation of the fashion industry and an innovative change from the more serious and exclusive image usually portrayed by the fashion industry.  Watching Minnie Mouse take the catwalk in Paris modeling Lanvin with Suzy Menkes, Sarah Jessica Parkera and Glenda Bailey to name a few in the audience is so much fun!  So many more surprises so push play above and enjoy the current fashions with the magic of Disney.    

Everlane: New concept of luxury e-tailing

December 11, 2012


I am obsessed with San Francisco-based Everlane.  By cutting out the middleman, the budding luxury clothing design and manufacturing company offers high-quality products at unconventional prices.  The company started by producing a luxurious version of the classic t-shirt for just $15.  It has now evolved its product offerings to silk blouses, wool scarves and backpacks to name a few.  How does Everlane achieve such prices?  See the value chain below:


By cutting out the middlemen and overhead prices incurred by brick-and-mortar stores, Everlane is able to offer the lowest prices to consumers.  Why not not-splurge and try out Everlane for yourself.  My guess is you will be very pleasantly surprised.    


Photo credit: Everlane.com

Luxury 360

December 9, 2012


Luxury 360 is a new and recurring post where I will examine the current luxury goods market trends and recap the main highlights.  I personally like to know the big picture of the industry and sometimes find it difficult to get this information in one place.  In this post I will share my most recent luxury business learnings with you as your one-stop post for a luxury market overview.

  • 2012 has proven a good year with sales for a third year in row showing double-digit growth. Globally, luxury goods sales are estimated to reach 212 billion euros in 2012, a 10% increase from 2011.  Sales for 2011 were 192 billion euros up 11% from 2010.
  • Accessories (leather goods and shoes combined) are the champion category of 2012 with sales up 14%.  For the first time accessories are the largest piece of the market overtaking apparel.  
  • At 27 billion euros Greater China (Mainland, Hong Kong, Macau) is now the second largest luxury goods market behind the United States, bypassing Japan.  However Greater China, which accounts for half of luxury spending in all Asian markets, is slowing with projected growth of 20% in 2012 versus 30% in 2011.
  • Men are gaining share in luxury spending accounting for 41% of all sales.  In 1995, men accounted for 35% of luxury purchases.  

Hope you found this interesting!  If you want a more in depth look into these highlights, see the Bain & Co. luxury goods market report here.


Photo credit: Runway Passport

Talk the Talk Thursdays

November 29, 2012


Talk from me
Which celebrities do you find stylish?
I really like the styles of Nicole Richie, Victoria Beckham, Leighton Meester (not Blair Waldorf), Olivia Palermo, Rachel Bilson and obviously SJP.  I am constantly googleing (is that an official verb yet?) them to see new outfits.  

What did you learn today?
I actually just came across a US-based study revealing "80% of smartphone owners shop on their device."  Think about that impact on this past Cyber Monday sales.  See full article here.


Talk from you
"I thought this super subtle sheer hem was so chic." - The Sartorialist

"As you can probably guess I am an avid reader of MANY food blogs. I love them! And right now most of my favorite food bloggers are posting about healthy recipes ... But me, well, I just want to bake cinnamon rolls." - A Beautiful Mess

You know the drill by now!  If you would like to be a blog I feature or ask me a question, please see here for more information and email mouthfulofstyle@gmail.com with the subject line "Talk the Talk."


Nails by Alex at Neville Hair & Beauty, London

The Curator, Tastemaker, Style Influencer ...

November 27, 2012


The curator, tastemaker, style influencer, fashion ambassador and celebrity.  Call them as you like as they are changing the scene of online shopping.  There are so many new ways to shop nowadays with new online fashion shopping sites emerging left and right. Exciting as it is, I see one consistent trend: the use of curators (or insert any of the above titles) in recommending products. Marketing research has shown that we as consumers like recommendations from people we know and/or admire and are more inclined to shop these suggestions.  So is the curator the new online marketing strategy of today as was the flash-sale of previous years?  I'll let you be the judge by presenting below four unique online websites that have adopted the curator-based business model.

AHAlife is an online discovery and shopping platform that offers unique handpicked products by the likes of Donna Karan, Daniel Boulud, Tina Brown and Tim Gunn.  Definitely some heavy hitters here!


The Coveteur offers a look into the closets of tastemakers, celebrities and fashion elite with the ability to actually shop pieces from their closets.  Right now Sophia Bush and Hugh Hefner are amongst the closets you can peruse and purchase.


Vaunte recently launched and is also offering up fashionable closets by redesigning the world of online luxury consignment shopping. It is currently by-invitation only with some of its members including fashion designer Lela Rose and fashion stylist Ann Caruso.


The Cools is a social network and an e-commerce site.  In addition to hosting brands, boutiques, bloggers (hint!) and individuals, its tastemakers include Erin Fetherston, Vladimir Restoin Roitfeld, Agyness Deyn and the granddaughters of skin-care legend Jacques Courtin-Clarins.

Content is Key - Part 2 of 2

November 13, 2012


In Content is Key - Part 1 of 2, I discussed the importance of content marketing strategies to attract, acquire and engage consumers by producing good content continuously.  I gave Net-A-Porter as an example of an online fashion retailer doing it really well with a frequently updated and beautifully presented online magazine highlighting product offerings, seasonal trends and exclusive insider interviews.

But good content marketing strategies are not only reserved for online-based businesses.  We are now frequently seeing brick-and-mortar companies conquering this space by using social media platforms or blogs to reach out to consumers.  The blog DKNY PR Girl run by Aliza Licht, Senior VP of Global Communications for Donna Karan, has captivated readers with her smart and witty take on highlighting the brand.  Mixing insights on style and life in NYC with current product offerings, you almost forget she is a Senior VP for Donna Karan!  And it works with over 400,000 followers on Twitter.  

I hope more fashion companies (both on and offline) adopt Ms. Licht's approach to content marketing. It is always amusing for consumers such as myself to read fun and insightful content by people-in-the-know in addition to DKNY PR GIRL proving to be a more than successful communications strategy.


Photo credit: DKNY PR Girl

DVF and Evian Team Up

November 7, 2012


Another fashion industry collaboration with a beverage!  I previously posted on Diet Coke and Jean Paul Gaultier and Starbucks and Rodarte.  This time it's Evian and Diane von Furstenberg (DVF).  Evian's brand image is luxury bottled water; It is a French company after all!  The pairing with DVF definitely increases the brand's "cool" factor and youthfulness.  DVF is best known for the use of colorful graphic prints and the creation of the iconic wrap dress.

DVF has designed Evian's 2013 limited-edition bottle with the words "water is life is love is life is love is life is water” and with the designer's signature heart logo in red.  This is Evian's first time to link up with an American designer however the company has partnered previously with Paul Smith, Issey Miyake, Jean Paul Gaultier and Christian Lacroix.  The DVF limited-edition bottles willl be available in stores this month.

So, is this a growing trend I am discovering?  Well, it definitely works for me who enjoys that extra fashion "flava" in my beverages. Who would you like to see team up next?  I'm thinking Vitamin Water and British designer Jonathan Saunders.  A little out there but both oh so colorful.



Photo credit: WWD

What's next for Tamara Mellon?

November 1, 2012


The woman behind the Jimmy Choo label and now multinational company recently told The New York Times “As soon as my resignation came out from Jimmy Choo, I had lots of people e-mail me saying, ‘I would love to invest in your new project.’ ”  One year ago Tamara Mellon left Jimmy Choo.  So what exactly is she up to now?  Apart from moving to NYC from London, Ms. Mellon is writing a book.  “It’s not strictly a business book and it’s not strictly a memoir,” she said. “It’s a hybrid.”  Even more interesting, there is talk in creating her own lifestyle brand.  “I’d rather take the risk and have a new challenge,” she said.  Well, we are all excited to see what's next from this ultra-successful businesswoman and personal favorite I look up to.   

See full New York Times article here

Content is Key - Part 1 of 2

October 25, 2012


(Disclaimer: I realize this post is a bit heavy but I find really interesting so do read on.  I promise the next one will be more fun!)

Digital marketing. Consumer engagement. Content marketing strategy.  These terms are fast becoming viewed as Marketing as a whole and not just a subset.  Almost all major brands nowadays have a social media presence in order to attract, acquire and engage consumers.  But the key for brands is not only how many people "like" them on Facebook or "follow" them on Twitter, it is producing good content continuously.

Content marketing strategies can range from social media, to online (and offline) magazines to blogs, etc.  Editorial departments once reserved for magazines and newspapers are increasingly becoming in-house divisions.  Take Net-A-Porter for example.  One major component of its business is editorial which takes current product offerings and creates continuous content in the form of an online magazine identifying trends, most wanted pieces and interviews with trendsetters where people can then click and buy directly from the site.  This is an example of content marketing at its best (to remember attract, acquire and engage) and ultimately drives sales.


Photo credit: Net-A-Porter

Rodarte collection for Starbucks

October 20, 2012


"Medieval and fantasy role-playing games": the inspiration for Rodarte's Spring/Summer 2013 collection

I am not an big coffee drinker (gave it up after too many double espressos in college).  So when I first heard that Rodarte is collaborating with Starbucks on a holiday collection, I instantly rethought my lack of coffee drinking habits and need to get to Starbucks ASAP.  The limited edition products will include Rodarte gift cards, mugs, tote bags and cup sleeves that will debut online and in select Starbucks stores November 13.

The collaboration between fashion forward Rodarte (known for creating the striking ballerina costumes for Natalie Portman in Black Swan) and the mass-market coffee chain is definitely a surprise.  This is Starbucks first foray into the fashion industry. I personally love the idea as I am the target customer for this partnership.  But I wonder if the majority of Starbucks customers will respond to products by an exclusive high fashion company.  It is the holiday collection after all where sales in this period can heavily impact annual revenues.  A collaboration with a fashion company with a more widespread brand image may result in more sales for Starbucks.  

On the flip side Rodarte will gain great exposure to a new customer segment and Starbucks will continue to push the boundaries of traditional coffee company turned hang-out spot turned gift store offering CDs, books, board games and now high fashion branded accessories.  Ok, I sold myself.  It's a win-win situation.  Thoughts??? 


Photo credit: style.com

Brad and Chanel

October 16, 2012




The most important branding takeaway I learned from working in the luxury goods industry is the importance of showcasing one's heritage but innovating to stay current with the times.  Chanel is a company that I think has always done this to perfection.

Recently naming Brad Pitt as the first ever male face to the iconic Chanel No. 5 perfume is not only innovative, it is genius.  Why can't a man be the face of a female perfume in this day and age?  And it works seamlessly for Chanel!  The ad campaign not only appeals to women by having the stamp of approval from Brad, but also appeals to men as a gift for their significant others. See full ad campaign on Chanel's website

Chanel No. 5 is the iconic perfume of the fashion house and embodies it's rich history being the first perfume released in 1921.  I for one can't think of another fragrance brand that has used a male ambassador to promote a female fragrance.  And let's be honest here, if Brad likes it I like it! 

Photo credit: guardian.co.uk

Diet Coke & Jean Paul Gaultier Collaboration

October 12, 2012



Last night while reading fashion magazines on my iPad, I came across Diet Coke's newest print ad: "Styles evolve, but good taste never changes."  What a great statement I thought.  I had to incorporate it into my blog.

The collaboration between Jean Paul Gaultier and Diet Coke is a great example of two different industries collaborating in order to gain new audiences, increase brand awareness and/or enhance brand image.  Good taste is the key takeaway to Diet Coke's ad campaign.  What a great way to bridge the beverage products and fashion industries by merging good taste with style, a well-known match.

It is no wonder Coca-Cola retained its #1 spot on Interbrand's 100 Best Brands report which came out last week, winning over Apple and IBM.  See article here.  They have my vote and my taste never changes.  :)

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