1 a Love Affair With Luxe - Cult of the Luxury Brand_ Inside Asia’s Love Affair With Luxury

15/02/2015 1ALoveAffairwithLuxeCultoftheLuxuryBrand:InsideAsiasLoveAffairwithLuxury

https://www.safaribooksonline.com/library/view/cultofthe/9781904838050/xhtml/ch01.html 1/29

1A LOVE AFFAIR WITH LUXE

Howcomeyoudonthavethemufflerwithchecks,theonethatthePremierwears?ThepersonaskingthequestionisJiangZemin,untilrecentlyPresidentofChina,thePremierhereferstoisnoneotherthanthemancreditedwithreformingChinaseconomy,thedynamicZhuRongji,andthecheckedpieceofneckaccessoryinquestionistherathercontagiousBurberrymuffler,whichalsocountsthousandsofyoungJapanesewomenamongitswillingvictims.

ThesettingofthistruelifeshoppingdramaistheScitechdepartmentstoreinBeijing,notexactlyahotspotforluxurybrandsinthefirstplace,andcertainlynotusedtohavingpresidentsdroppingbyunannounced.Jiangreportedlymakesittothethirdfloormenssectionunrecognized,beforepanicensuesandpeoplerealizethatitsthePresidenthimselfsanssecurityentourage.ThemanagingdirectorofthestorerushesdowntomeetJiang,whoisincreasinglyimpatienttoseethecheckedmufflerhehasheardsomuchabout.Unfortunately,thestoredoesnotcarryBurberry.No,headsdontroll,butthenextdaythelocalBurberrymanagementissummonedfortalks.Pickanyspotyoulike,thedepartmentstoreoffers,justputupaBurberrystoreasfastaspossible.AvideoconferenceishurriedlyarrangedwithchiefexecutiveRosemaryBravoinLondon,who,tickledbythestory,givesthegoahead.Anaccessoriescornerissetupataprimelocationinthestore,andnowBurberrymufflersarereadilyavailable,justincasePresidentJiangdoesoneofhisspotchecksagain.

Frompresidentstoofficeladies,fromcaptainsofindustrytouniversitystudents,fromwellheeledsocialitestohousewivesbuyingfishinthelocalwetmarketsinJapan,eventhe

PREVPart One: How an

NEXT2 Finding Meaning

Cult of the Luxury Brand: Inside Asias Love Affair with Luxury Recent

Topics

Highlights

Settings

Feedback

Sign Out

Settings

10 days left in your trial. Subscribe.

Feedback

Sign Out

https://www.safaribooksonline.com/recent/mailto:feedback@safaribooksonline.comhttps://www.safaribooksonline.com/subscribe/https://plus.google.com/share?url=http://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/ch01.htmlhttps://twitter.com/share?url=http://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/ch01.html&text=Cult%20of%20the%20Luxury%20Brand%3A%20Inside%20Asia%E2%80%99s%20Love%20Affair%20with%20Luxury&via=safarihttps://www.safaribooksonline.com/accounts/logout/mailto:?subject=Safari:%201%20A%20Love%20Affair%20with%20Luxe&body=http://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/ch01.html%0D%0Afrom%20Cult%20of%20the%20Luxury%20Brand%3A%20Inside%20Asia%E2%80%99s%20Love%20Affair%20with%20Luxury%0D%0Ahttps://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/ch02.htmlhttps://www.safaribooksonline.com/u/001o000000PF0qZAAT/https://www.safaribooksonline.com/u/https://www.safaribooksonline.com/s/https://www.safaribooksonline.com/home/https://www.safaribooksonline.com/t/https://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/part01.htmlmailto:feedback@safaribooksonline.comhttps://www.safaribooksonline.com/u/https://www.safaribooksonline.com/r/https://www.facebook.com/sharer/sharer.php?u=http://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/ch01.htmlhttps://www.safaribooksonline.com/accounts/logout/



fishmongerstuckawaytheircashreceiptsinLouisVuittonbagseverysectionofsociety,everycountryinAsia,isfallingunderthespellofWesternluxurybrands.StrolldownthebusystreetsofTokyotoday,andabarrageofLouisVuittonhandbagscomeatyouonthearmsofmiddleclasswomen.SettledownforadrinkatoneofShanghaishipnightclubs,andpickouttheChanel,Dior,andPradabagsamongthedesignercladcrowd.RidethesubwayinSeoulandmostwomenarehangingfirmlyontotheirLouisVuittonsandGuccis.DropoffyourchildatanupscalekindergarteninHongKongandaquickglanceattheothermumsshouldbringyouuptodateonthisseasonsnewarrivals.MeetingagovernmentofficialinBeijing?ChancesarethesuitisZegna,andthatflashofgoldbeneaththesleeveisaCartierwatch.

ItshardtoimaginethatluxurybrandswereoncethepreserveoftheEuropeanaristocracy,thatamerehundredyearsagothesebeautifullycraftedpiecesofclothingandaccessoriesweresolelyforthepleasureandadornmentofawealthylite.NowfamedluxuryhouseslikeLouisVuitton,Herms,Chanel,Cartier,andinnumerableothersservetheconsumersofAsia,and,inastrangeturnofevents,itisthepopulousmarketsofthisregionthatarecentraltotheirsuccess.AsiahasgrownintotheworldslargestmarketforWesternluxurybrands,andbetweenthebrandobsessedJapaneseontheonehandandChinaandIndiasrisingnewmoneyontheother,thepresentandfutureofluxeliesquarelyinAsia.

HowdidtheluxurybrandculturespreadfromEuropeslitetoAsiashoipolloi?Fickleasfashionis,itsbusinesshistorycontainsenduringlessonsforallmarketers,explainingthestrategiesthatchangedsmallfamilybusinessesintohighlyprofitableglobalempires.Importantly,itshedslightonsomethingeverymarketerdreamsoftheseemingparadoxofcharginghighpricesbasedonexclusivitywhilesellingyourproducttoeveryTomoko,Sadako,andYoshiko.Theluxurybrandindustryhasmanagedtodojustthatinfact,thefineartofhavingyourcakewhileeatingittooisitscorebusinessphilosophytoday.

THE GENESISTheforcesthatcreatedAsiascultoftheluxurybrandweresetinmotionaround100yearsago.

Intheearly1900s,whiletheBelleEpoqueunfoldedinEurope

aheadyperiodofprogressandprosperity,whenwealth

wasshamelesslyflauntedandelaboratewomensdresseswereaprimemethodofshowingfamilystatusatrickleofimportedluxuryproductshadalreadybeguntoflowintoAsia,althoughtheytouchedonlyasmallwealthylite.JapanhademergedfromitslongEdoperiodisolation,andhadbeguntradingwithBritainandEurope,includingjewelryandotherluxurygoods.Afine

1

https://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/notes.html#ich01note1



crystalvasebyBaccaratwassaidtocostmorethantheaverageJapanesehomeofthetime.BurberrysetupshopinTokyointhe1920sthroughalocalimportingcompany.

InChina,ShanghaiwaslivingitsownversionoftheBelleEpoqueastheParisoftheEastinthegiddy,hedonistic1920sand1930s.Whilehighsocietywomenstucktothegracefulcheongsamforpublicoccasions,menworefineFrenchsuits,andSwisswatchessuchasthosemadebyOmegawhichenteredChinain1895wereprizeditems.

RoyalfamiliesinIndiahadanaturalaffinityforEuropeanluxurybrands,shoppingontripstoLondonandParis,orsimplycommissioningpiecesfromthelikesofVuittonandCartier.ThefamedPatialanecklacewasmadebyJacquesCartierfortheMaharajaofPatialain1928itsashowstopperwith2,930diamondstotaling1,000carats,includingthe234caratDeBeersdiamond,theseventhlargestintheworld.

ThencamethecrunchinonewayoranotherforalltheAsiannations.TheSecondWorldWarknockedthebreathoutofJapan.InnewlyindependentIndia,itbecamemorechictowearkhadiahandspuncottonclothsportedbyadherentsofthefreedommovementthanluxuriesimportedfromWesterncountries.InCommunistChina,youriskedyourneckifyoudeviatedfromclearlylaidoutstylecodes,andanyexpensiveitemsyourfamilymighthavepossessedwereconfiscated.IndependencestrugglesinSoutheastAsialedtotheAmericansleavingthePhilippinesin1946,theDutchdepartingIndonesiain1949,andtheBritishquittingMalaysiaandSingaporeinthelate1950s, buta

combinationofpatriotismandpovertymeanttherewasverylittleplaceforimportedluxe.InmanyAsiancountriesprotectionistpolicieslimitedtrade,andtheimportofluxuryitemswaspunishedwithheftytaxes,iftheywereallowedinatall.Harshpostliberationeconomicrealitiesmeantthatpeopletoiledtorebuildtheircountryandthemselvesmakingendsmeetandsavingfortheirchildrensfuturewerethepriorities.Forallpracticalpurposes,importedluxurybrandswentintohibernationinAsiaforseveraldecades,onlyslowlyreappearinginthe1970s.

AcenturyofworldfashionasseenthroughtheChinesecheongsam

Evenacenturyago,AsiawastakingitsfashioncuesfromtheWest.HerewetracetheimpactofEuropeandesignersandHollywooddivasonthecheongsamthegraceful,bodyskimmingChinesedresswithsideslitsthatevolvedintandemwithinternationalfashiontrends.Shanghai,Chinasstylecapitalinthefirsthalfofthetwentiethcentury,dictatedthelook,passingthemantleontoHongKongaftertheCommuniststookover.

1920sThecheongsamwasslimmer,thesilhouettewasslinkier,copyingthebiascutsofChanelthesleevesgotshorter,theslit

2




higher.Hairwasstraightandbobbed,skinwaspaleandlips,red.ThinkGaronne.

1930sThecheongsamwasanklelength,thefeelwaslighter,sleeveswerecuttorevealtheunderarm.Hairwaspermed,eyebrowsdrawnthinandarchedlikeGretaGarbos.

1940sThecheongsamwaswornwithjacketswithpaddedshouldersandplatformshoeslikeJoanCrawfords.

1950sThebodywasmorestructured,aChinesehourglass,laChristianDiorsNewLook.Hairwasbrushedintosleekrolls,strongeyebrows,smolderingeyeslikeAvaGardners.

1960sThecheongsamwasshorterandmoreboxy,patternsandprintsweremuchbolder.Hairwasteasedupbirdsneststyle.ThinkYvesSaintLaurentorPierreCardin.

1970sThecheongsamwaspairedasatunicwithbellbottoms.Psychedelicprintsreflectedtheswingingseventies.

1980sApowercheongsamwithamorepaddedshoulder.VeryGiorgioArmani.

TodayThecheongsamdisappearsfromdailylife,onlytobereincarnatedasfashionableeveningwearbyChinesedesignhousessuchasShanghaiTang.

AdaptedfromHongKongbornfashiondesignerVivienneTamsbookChinaChic(NewYork:ReganBooks,2000,pp27074).

Enjoy Safari? Subscribe Today

https://www.safaribooksonline.com/subscribe/



PhotoscourtesyofValeryGarrett,KareemJalal,ElizabethChung,andShanghaiTang.

Inthemeantime,therewasplentyofactiononthecouturefrontinEuropeinthefirsthalfofthecentury,creatingmanyofthefashionhousesthatAsialovestoday.TheelaboratedressesthathadwomentrussedupincorsetsgavewaytomorecomfortableclothingthanksasmuchtotheworldwarswhichforcedwomentoworkinpracticaloutfitsastotheimaginationofdesignerslikeCocoChanel,whopromotedtheGaronnelook.AftertheSecondWorldWarChristianDiorbroughtbackthestarsinwomenseyeswithhisextravagantNewLook,waistsnippedintocreateanhourglassfigure.ItwasatimeofdramaticupheavalsinEuropewar,occupation,liberation,economicscarcitybutdespiteupsanddowns,Parisretaineditssenseofstyleandremainedtheworldsfashioncapital,thankstodesignerslikeJeanneLanvinandPierreBalmain,whoincidentallycountedthe

QueenofThailandamonghisloyalcustomers.

TheUS,wheretheuppercrusthadreliedonParisforimportedcouture,slowlystartedcomingintoitsownwiththeemergenceof

3




localdesignerslikeClaireMcCardellandHattieCarnegie.PariswasstillthemothershipMcCardellstudiedfashionthere,CarnegieretailedFrenchlabelsbutbothweredesigningforAmericansensibilities.WallisSimpsonchoseAmericanborndesignerMainbocher,thenbasedinParis,todesignherweddingdress.(Incidentallyherhusband,theexkingofEngland,hadhistrouserstailoredinNewYork,preferringthemoreadvancedAmericanstylebeltsandzipstobracesandbuttonsSavileRow

atthattimeconsideredbeltsandzippedfliestobevulgar. )

USdesignerscontinuedtoriseinthe1970sCalvinKleinandRalphLaurenamongthemdefiningamoreleisureorientedcasualeleganceastheAmericanstyle.Theyaddedacompletelynewdimensiontothefashionequationsavvymarketing.ThelikesofBrookeShieldsadvertisingNothingcomesbetweenmeandmyCalvinsandtheuproarthataccompanieditshowedtheEuropeansthepowerofbrandingunleashedthroughthemassmedia.Itwasaturningpointinthehistoryoffashion:Suddenlyitwasntjustthedesignorproductthatwascritical,itwastheimageandlifestylethatthebrandprojected.RalphLaurencreatedanempirethroughmarketingalifestyleBritishlandedgentryreinterpretedformodernAmericastartingwithPolomenswearandextendingtowomen,children,home,formals,casuals,andjustabouteverythingelse.Theeraofmassmarketingofluxuryhadbegun,aforcethatwouldbeadoptedrelentlesslybytheFrenchinthe1990sastheysetabouttargetingawiderconsumerbase.

TheperiodaftertheSecondWorldWaralsosawItalyemergeasaserioussupplieroffineclothingandaccessoriesforEuropeanreadytowearlabelsabitlikeChinaspositiontodayanditwasonlyamatteroftimebeforethenationemergedasamajorstylesetter.Theingredientswerealwaysthere:atraditionoffinecraftsmanshipwithleatherproductsandtailoredmenssuits,anabundanceofexcellentqualitymaterials,modernproductiontechnology,and,mostimportantly,apassionforladolcevita.IfFrancewasaboutluxuriouscoutureandAmericawasaboutcasualelegance,Italiandesigncombinedbothitgavethefeelofpureluxuryinreadytowearclothes.ThinkArmanisuit,exquisitefabric,stylishlycut,immaculatelyexecuted,engineeredforcomfort,theworkofamasterdesigneratapricethatwasnttotallyoutofreachapowerfulpackageinfurtheringthespreadofluxe.

Atthesametime,theItaliansshowedthattheyhadwhatittooktodocoutureValentinowasamongtheearlydesigners,hissumptuouscreationsfindingfavorwithglamorouswomenofthetime,includingJackieKennedywhochoseaValentinodressforherweddingtoAristotleOnassis.WhiletheAmericansweremastermarketers,theItaliansexcelledatcreatingtherightkindofbuzz,anotherpowerfultoolinspreadingtheluxeculture.Itcamenaturallytothem,withflamboyantfigureslikeGianniVersace

4




creatingasmuchnewsashisclienteleofprincesses,stars,andhighsocietywomen.ItalyroserapidlyandtodayMilanisasmuchafashioncenterasParis.

ASIAS TORRID AFFAIR WITH LUXEBackinAsia,itwastimeforJapantoriseanditdidsoontwofronts.Itproducedadaringbunchofdesignerswhosprangontotheinternationalsceneinthe1970sandearly1980sKenzoTakada,KansaiYamamoto,IsseyMiyake,YohjiYamamoto,andReiKawakubo.Thelasttwoinparticularhadthefashionworldgaspingwithshockanddelight,theircreationsoftatteredragsacompletedeparturefromanythingParishadseenbefore.Onthesecondfront,Japanproducedanenthusiasticconsumerbasethathasgrowntobethebackboneofthegloballuxuryindustry.Japanseconomicriseinthe1970sandtheheadyyearsofthe1980sbroughthugebuyingpowertoitspeople,andtheytooktoEuropeanluxurylikeafishtowater.Luxebecamethenationalobsessionbythe1990severythirdwomaninJapanownedapieceofit.Withluxurygoodsbeingpurchasedonsuchascale,soonthetopbrandswerecountingtheJapaneseastheirsinglelargestconsumersegment.

Japanesetouristshoppersfirstbecameanoticeablephenomenoninthe1970sandtheirnumbersballoonedtogiganticproportionsinthe1980sand1990s.Europesluxuryhousessatupandtooknotice,andstartedsettingupshopinJapanGucciopeneditsfirststoreinTokyoin1972inresponsetounprecedenteddemandfromJapanesetouristsinEuropedittoforLouisVuitton,whichenteredJapanin1978.SoontheJapanesewerenotonlyturninginhugesalesathome,butalsoshoppingsomaniacallyinEuropethattheywerealmostsinglehandedlysupportingsalesofluxurygoods.(JPMorganestimatesthattouristsrepresentmorethan80percentofLouisVuittonsChampsElysesstoresales.

)ThewiderJapanesetouriststraveled,themorebrandstores

wereopenedatalltheirfavoritedestinationsevenremoteislandslikeGuamhadwellstockedlardersofluxe.TheyjumpstartedluxuryretailalloverAsiaHongKongsalesskyrocketedinthe1980sthankstothem,dutyfreesalesinSeoulandTaiwantookoffwiththeirblessing,andevenjustemergingmarketslikeBangkokreportedheartysalestotheJapanese.Storestheworldovergeareduptocatertothem,pricetagsandlabelswererenderedinJapanese,andsalesstaffweretrainedtospeaktheirlanguage.(OneofourmoreendearingsightswasonRomesluxurystorestuddedViaCondotti,witnessingasvelteItaliansalesgirlservingademureJapanesewoman,thewholetransactionconductedinfluentJapanesewithplentyofbowingonboth

sides. )

ThedevelopmentofeverysuccessiveluxurybrandmarketinAsiahasfollowedasimilarpatternofgrowingeconomicprosperityandthegovernmentswillingnesstobekinderon

5

6

https://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/notes.html#ich01note6https://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/notes.html#ich01note5



policiestowardsuchgoods.AfterJapancameHongKong,whichexperienceditsownheadyriseinthe1980sand1990s,withmuchmoneybeingmadebyenterprisinglocalsonthestockmarketandpropertyspeculation.Sureenough,alongwithmoneycamearobustappetiteforluxe.Today,HongKonghasdevelopedintoaluxuryshoppingMecca,offeringthebestselectioninAsia(outsideofJapan),atthebestpricesinAsia,attractingalargenumberoftouristshoppers.Majorbrandshavesixorsevenlargestoresinthecity,farmorethantheyhavein

Paris,London,orNewYork. Armanihasitsglobalflagshipin

HongKong,afeastofeightoutletsspreadover34,000squarefeetonthreefloorsofChaterHouseinCentral:GiorgioArmani,EmporioArmani,GiorgioArmaniCosmetics,ArmaniCasa,ArmaniFiori,ArmaniLibri,ArmaniDolci,andahugeArmaniBarinconcept,scale,andstyle,thiscollectionofstoresiscuttingedgeretail.

SouthKoreaandTaiwansluxurymarketsbegangrowinginthe1990saftertheirgovernmentsdroppedimportdutiesandloosenedcontrols.SouthKoreaboastsitsownRodeoStreet,withswankflagshipsandextremelywellstockeddepartmentstores.Moreimportantly,theSouthKoreanconsumershavegonelabelcrazyasmanyas50percentofSeoulwomenreportedlyownaLouisVuittonbag,althoughnooneknowsforsurehowmanyofthosearefake.ForgetkeepingupwiththeJoneses,hereitisallaboutoutdoingtheKimsandChungs.ThestoryinTaiwanfollowsidenticallines.

ThatbringsustoChina.EveryonewaitswithbatedbreathandtoweringexpectationsasChinatakesitsfirstwobblystepsinManoloBlahniks,teeteringheadlongintotheworldofbrandedluxury.TheChinesepeoplehavetakenDengXiaopingsexhortationTogetrichisglorioustoheart,andindeedmanyaregettingseriouslywealthy.Whatpuzzlesmanypeople,however,ishowacountrywithpercapitaGDPoflessthanUS$2,000canbeasignificantluxurybrandmarket.Theanswerliesinunevendevelopment:Selectedcitiesandregionsareemergingaspocketsofwealth,andtheoneswithmoneyareinahurrytospendit.Itsasifadamhasburstand,withnochecksinplace,Chinasgrowingranksofnouveauxrichesaregorgingthemselvesonnewfoundgoodies.ConspicuousconsumptionisthenameofthegameintodaysChinaandeverymajorluxurybrandisalreadytheretoplayalong.

ReminiscentoftheJapaneseinthe1980s,theChinesetouristshopperismakingheadsturnandjawsdropinthe2000s.ThemainlandtouristhasrapidlybecomethemainstayofHongKongsluxuryretailsector,somestoresreportingasmuchas70percentoftheirsalestothissegment.WithvisarestrictionsbeingrelaxedandmanyWesterncountriesgivinggrouptouristvisas,thenumberofChinesetouriststoEurope,theUS,Australia,andindeedtherestofAsiaisrisingsteadily.Thisnewclassoftourist

7




isacquiringareputationforspendinggenerously,routinelypickingupluxurybrandsasgiftsforfriendsandfamilybackhome.MembersofasmalllitesegmenthavestartedflyingtoParisandMilantorefreshtheirwardrobeseveryseason.

Andnowtheslumberinggiant,India,isfinallyawakeningitseconomysizzlingatamorethan7percentgrowthrateandisshowingallthesignsoffallingunderthespellofluxurybrands.IndiaalwayshadathinuppercrustofoldmoneythatdiscreetlyshoppedinLondonandNewYorkforluxuryessentials.Nowclankingnewmoneyisjoiningthespendingspree.Theseareearlydays,withonlyahandfulofluxurybrandsdroppinganchor,andadmittedlytheresalotofspadeworktobedoneintermsofdevelopingaretailinfrastructureandbuildingbrandawareness.Buttheseareexcitingtimeswhenfundamentalsocialchangesaresweepingaonceconservativecountry.ThespurtinITandoutsourcingbusinessesisputtingsubstantialmoneyinyounghands.Themediaexplosionisbringinginglobalvalues.SplurgingoncreditisreplacingGandhianfrugality.Bollywood,whichhasastrangleholdonthenationscollectivepsyche,isdepictingextremelyliberalfashionsinitsfilms.Midnightschildrenaregivingwaytoliberalizationsoffspringfertilegroundindeedforluxurybrandstotakerootandprosper.

DEMOCRATIZATION OF LUXURY IN THE 1990SWhatcausedtheexplosionofluxurybrandsinAsia?Afortuitousalignmentofthestars,youmightcallit.Inthe1990stheEuropeanluxuryindustrywasgoingthroughamajorchange,sheddingitstraditionalfamilybusinessmindsetandreinventingitselfasalean,meancorporatemachinewithglobalretailingambitions.Forseniormanagement,changinghemlinesbecamealesserprioritythangrowingtoplinesandfatteningbottomlines.Spunkynewcreativebloodwasinstalledtoenergizeagingluxuryhouses,andmoreaffordablereadytowearandaccessorieswereusedtowooyoungerandmoremainstreamconsumers.Democratizationwasthebuzzword,throwingthedoorsofexclusivityopentoordinarypeople.AtthesametimetheeconomiesofAsiawereboomingandafreshlyprosperousgenerationwasraringtoacquirethenewfangledsymbolsofwealth.Thefrugallivingethicoftheirhardworkingparentsslowlyevaporatedmoneymadeeasilywasspentjustaseasily,andthecultofluxurywentfrommildinfatuationtomanicobsessioninthespaceofafewquickyears.

Hautecouturefinallyranoutofcommercialsteaminthe1970s,

withthenumberofclientssaidtohavedwindledto3,000, not

enoughtokeepanindustrygoing.Theroleofhautecoutureshiftedfrommaincoursetoappetizerbigrunwayshowsusedtospinoutmarketingpropaganda,onthebackofwhichrantherealmoneymakingbusinessofreadytowearandaccessories,apracticethatcontinuestoday.Thenewclientswereyoungerand

8




theyneitherhadthebigbucksneededforserioushautecouture,norwasittheirstyletobetieddownbyelaborateoutfitsinthefreespirited1970s.Readytowearandaccessorieswerealsotheidealvehicleforexpandingintonewmarkets,whichbecameanecessityasluxuryhousessearchedforfreshavenuesforgrowth.DesignerslikeYvesSaintLaurentopenedboutiquesworldwide.Licensingbecameacommonmethodforenteringnewmarkets,anditsmasterpractitioner,PierreCardin,builtanempirelendinghisnametoagrowingandattimesbizarrelistofproducts,includingchocolatebarsandfryingpanstodayPierreCardinhas

900licenseholdersin140countries,27inChinaalone.

FranchisingwasalsoapopulardistributionmethodforEuropeanbrandstoextendtheirreach.

However,manylicenseestookagreatdealoflicensewiththebrandsundertheircare,theproductoftenbeingcheapanddamagingtothebrandname,completelydisastrousintheluxurycontext.ManyAsianfranchisees,ontheotherhand,mayhavestucktothebriefintermsofhowthebrandoperationwasrun,buttheyhadatendencytomilkitdry,alwaysreluctanttoinvestinthemarketingexpendituresonecessarytobuildandsustainaname.Asaconsequence,manybrandsunderperformed.Luxurycompaniesawoketotheneedforcontrolandsteppedintotheretailingarenathemselves.Theyboughtbacklicensesenmasseforexample,YSLhadboughtback152licensesby2001. Theycentralizedproductionandintegratedvertically,backwardsandforwardstheluxurycompaniessimplytookchargeofthewholeshowfromdesign,production,andmarketingtoretailing.Costcontrolbecameamajorpriority.Profitswereinfashionagain,andrapidgrowthwasthenewmuse.Frombeingprivatelyowned,manycompaniesalsonowansweredtothestockmarket,amoredemandingmistressthananyfashionistatheyhadeverserved.

Overthe1990s,luxurycompaniesadoptedaseriesofstrategiestospreadtheirgospel.

First,thestrategyofdistributioncontrolevolvedintomoreandmoreelaboratefreestandingstores,themostdizzyingexamplesinTokyowherebrandcathedralshavesprungup,risingseveralfloors.Forexample,thePradaEpicenterinAoyama,Tokyoisafuturisticsixstoryglassconfectionwithcaveliketubesthatserveasanintimateretailsetting.ThequalityofexecutionatthesenewstoresisoutstandingalloverAsia,andinTokyosomearesobeautifulyoufeeltheurgetokneelandworshipandofcourse,walkoutblessedwithapieceofluxe.Theirroleinbringingthebrandaliveandofferingtheconsumeranintimate3Dexperiencehasmadetheseflagshipsyetanothermarketingtoolintheluxuryarsenal.

Secondly,brandslikeChristianDiorreincarnatedthemselves,virtuallyabandoningtheiroldavatarforayounger,sexierone,

9

10




whichstruckhomewithAsiasrelativelyyoungerconsumers.InmostAsianmarketsthebiggestspendersonluxurybrandsareyoungwomenbetweentheagesof20and30.Appealingtotheseyoungwomenmeantrecalibratingabrandscoolquotient,thatslipperyintangiblethatdefineshowinthebrandisamongtheirpeergroup,howwelltheyrelatetoit,howrelevantitistotheirlifestyle.Itentailedsheddingthebrandsstaidoldimageforayouthfulone,orwideningitsappealbyaddingtrendierproductslikeadenimhandbagtotheclassicrepertoire,asLouisVuittondid.

Thirdly,theluxuryindustryplayeditsmastermove,thelogoficationofthehandbag,plasteringinstantlyrecognizablesymbolsinacontinuouspatternalloverthebag.ForAsianconsumersthiswasagodsend:Itdidthejoboflettingpeopleknowyouwereofacertainclassandstandinginsociety.Weexaminethestatusdefiningroleofluxurybrandsingreaterdepthinthenextchapter,buthereweemphasizethatthelogoficationofbagswasthesinglemostimportantfactorinspreadingtheluxurybrandmaniainAsia.LuxurycompaniescottonedontothesimpletruththattheLVmonogramandtheGucciGswerewhatAsianconsumerswereafter,andsooneveryotherbrandfromCoachtoDior,FenditoFerragamowasdoingitstakeonthemonogram.Itisalessonthatmarketersofotherconsumergoodscanlearnlogolineshavegrownsofastthattheyaccountforupto80percentofsalesforsomebrands. Asiawasinthebag,sotospeak.

Fourthly,luxurybrandsstretchedtheyslicedanddicedapersonslifeandofferedaproducttofiteveryaspectofit,insideout,24/7,whereverheis,whateveractivitysheisengagedin.Abrandmighthavestartedlifeincouture,itsstrengthmightlieinhandcraftedleathergoods,oritmighthavebuiltareputationforfinejewelrybutnowitisextendingitsequityoveraspectrumofproducts.Everybrandseemstobefirmlyheadeddownthepathofprovidingafullsuiteofproductsandthatsuiteitselfgetsredefinedandenlargedeachday.Goingforaholidayonthebeach?TryaPradabikiniandD&Gflipflops.Skiing?Chanelhasarangeofglamourskiwear.Riding?HowaboutasaddlefromHerms?Goingtotheoffice?MaywesuggestaDunhillbriefcasedesignedtocradlealaptop?Wantthetime?CheckoutLouisVuittonslatestlineofwatches.Somethingforbaby?Hermshasarangefornewborns.Adiaperbagformommy?BabyDiorhasthelook.AniPodcase?TryGucci.Loungingathome?Versacesofa.Goingtosleep?RalphLaurenbedsheets.DecoratingtheChristmastree?ArmaniCasahasmodernbaubles.Thisinvasionofdesignerbrandsintoeverydetailhastakentheculttoanotherlevel,andbyincreasingthecatchmentarea,luxingupeveryaspectoflife,companiesarerakinginevenlargerrevenues.

Luxuryhasntjustbeendemocratized,itsbecomeinescapable.

11




THE MALLING OF ASIAHandinhandwiththeeconomicboomandurbanizationinAsiacameanexplosioninretaildevelopment,therebyprovidingthenecessaryinfrastructureforluxurybrandstores.ItstartedwithdepartmentstorechainsinJapan,suchasMitsukoshi,Sogo,Isetan,Seibu,andDaimaru.SoontheJapanesebecamesogoodatsettingupdepartmentstoresthattheyweredoingitinotherAsianmarketslikeHongKong,Taiwan,andSouthKorea.ElsewhereinAsiasmegacitiesshoppingmallsstartedspringingupinthe1980s,atrendthatacceleratedinthe1990s.Theyofferedamerrymixofretail,food,andentertainment,aonestopleisuredestinationthatpulledinthecrowds.IncitieslikeManilaandBangkok,mallsalsoplayedaverybasicroleinprovidingachilledatmosphereratherthanfryinginthehotsunoutside,loungearoundinthecoolerclimesofanairconditionedmall,evenifyouonlywindowshop.

ThemallingofAsiaandhereweusetheterminabroadsensetoincludethevarietyofretailcenterformatsthatdottheurbanlandscapehasplayedmidwifetothebirthofthecult,makingavailableupscaleretailspace,theambienceandatmosphericsconsistentwiththehighendimagethatluxurybrandsneed.Infact,inmanyupandcomingAsiancitiesthelackofsuitableretailspacehassloweddownthemarchofluxury,forcingfriendsLouisVuitton,Gucci,Prada,etal.tospendthefirstfewyearsinimprovisedstoresinthelobbiesoffivestarhotelsuntiltheretailinfrastructurecatchesup.

Moreimportantly,themallingofAsiahasprovidedareallifesettingforconsumerstolearnaboutluxurybrandsandthelifestyletheydenote.ThisisthethemethatsociologistKenYoungamplifieswhenhecallsshoppingmallsopenaccessacademiesofsocialdistinction. Aspeoplewanderthroughamall,lookingatshopwindows,tryingoutproducts,observingothershoppers,theyaretakinginimportantlessonsinconsumptionbehavior.Whatismore,theyarelearningtoslotbrandsintostatushierarchies,pickingupcuesfromthestoresettingsandlocation.Oftenthecheapandcheerfulbrandsareonthelowerfloors,andasyourisehighersodoesthecaliberofthebrandand,needlesstosay,theprice.Howdoyouwanttopackageandpresentyourself?Overtime,andaprocessofhitandmiss,youlearntherightbrandsandproductstohelpyoucreatetheidentityyoudesire.

THE WORLDS BIGGEST MARKET TODAY: ASIATheAsianluxurygoodsmarketconstitutes37percentoftheglobalmarketofUS$80billion(Figure1.1).TheactualsizeofAsianspendingishigherbecauseoftheAsianpenchantforshoppingabroad,ablyledbytheJapaneseandChinese,easilyaddinganother1520percenttothecontinentsshare.Byconservativeestimates,itwouldbefairtosaythatAsians

12




consumehalftheworldsluxurybrands(Figure1.2).

Figure1.1Asiaistheworlds#1luxurymarket:GeographicbreakdownSource:Authorsanalysis.

Figure1.2MajorbrandsearnmorethanhalftheirrevenuefromAsianconsumers.Source:JPMorgan,EuropeanLuxuryGoodsSector,2November2005.

WithinAsia,Japandominateswithasumosized62percentshare.HongKonghasalwaysbeenthesecondbiggestcurrentlya12percentsharebutthatsapositionitwillsoonhavetocedetoChina,whichisgrowingbyleapsandbounds.SouthKoreaisthenextsubstantialmarketwithan8percentshare.TaiwanandSingaporecontribute23percenteach.OtherSoutheastAsiancountriesThailand,thePhilippines,Indonesia,andMalaysiaarestillrelativelysmallluxemarkets,butthereisaselectgroupofextremelywealthybusinessfamilies,mostlyofChineseorigin,whoregularlyshopabroad,eitherinHongKong,Singapore,orEurope.

Letslookatthingsfromabrandsperspective.Ifyoursisamajorbrand,expecttogetathirdtohalfofyoursalesfromAsia



(pluslotsmorefromAsiantouristsflockingtoyourstoresinEuropeandtheUS).Ofcourse,theJapaneseconsumerwouldbeyourdarling,aluxeglutton,gorgingheartilyathomeandthenfeastingabundantlyabroad.IfyouremovedtheJapaneseconsumermomentarilyfromtheequationafeatthatcouldonlybeaccomplishedbydraggingherscreamingandshoutinginamostunJapanesemannerthenyoursaleswouldsimplytakeanosedive.ThatisthedegreeofluxebrandsdependenceonJapan.

HowdeeplyentrenchedistheluxehabitinAsia?InJapan,anestimated25percentoftheadultpopulationownsaluxuryproduct.ForotherAsiancountriesthepenetrationofluxeisabouthalfofJapans.AsurveybymarketresearchfirmSynovate,coveringHongKong,SouthKorea,andSingapore,foundthatbetween12and15percentofAsianshadpurchasedaluxurybrandinthelastsixmonths. ThesamesurveyvalidatedwhatisabundantlyclearonthestreetsAsiasloveforthedesignerbag.InHongKong,awhopping64percentofluxeshopperssurveyedhadboughtleathergoodsinthepastsixmonths.

WhatareAsiasfavoritebrands?AsiansmakenobonesaboutthefactthattheyareafterfamousbrandsthetermforluxurybrandsinseveralAsiancountriestranslatesintojustthat.SowhileAsiaisahighlycompetitivemarketwithover100companiessluggingitout,consumersaremoreinterestedinthewinners.Basedonsalesfiguresandbrandimageindicators,wehavecompiledAsiasTopTen(Table1.1).ItconfirmswhateveryluxelovingAsianalreadyknows:ThereisnothingtobeatthecharmsofLouisVuittonandRolex.

Wherewillfuturegrowthcomefrom?Theansweristhesameasforeveryproductcategoryintheworld:ChinaandIndia,thetwinenginesofgrowthinthetwentyfirstcentury,Chinaofferingthemoreimmediateopportunity,Indiathelongertermplay.BernardArnault,chairmanandCEO,LVMHGroup,remarkedinthecompanysannualreportthatgeographicalgrowthopportunitiesaremainlytobefoundinAsia,mostnotablyChina,amarketthatisawakeningtoluxuryproducts. Heshouldknow:LouisVuittonhasseenitsbusinessgrowbycloseto50percenteveryyearsinceitenteredChinain1992,anditwasprofitablefromyearone.Needlesstosay,ArnaultseesIndiaasanotherpromisingterritoryforthefuture.

Table1.1LouisVuittonisAsias#1favorite

13

14

15

https://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/notes.html#ich01note15https://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/notes.html#ich01note13https://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/notes.html#ich01note14



GivenChinasgunghogrowthtrajectory,thequestioniswhenitsluxurymarketwillsurpassJapans.Thegeneralexpectationisaround2014,aboutthesametimethatChinaseconomyisexpectedtoovertakeJapans,butitmaywellhappensoonerforseveralqualitativereasons.ThedelicateJapanesecultureallowsforonlysubtledisplaysofwealth,butinChinaitisallaboutblatancyyouwinrespectandadmirationforachievingsuccess.TheJapanesearediligentemployeeswhotoilhardinbigcorporationsforfixedsalariestheChineseareanationofaggressiveentrepreneursintentonmakingitrich.JapanesemenallowtheirwivestoshopfortheirclothesChinesemenhaveledthefashionmovementinChina,andthemensmarketisbiggerthanthewomenseventoday.Japanesewomentendtobefollowers:Theyallrushintothesameshops,buyingupthesameproducts.Ofcourse,fashionbydefinitionhastohaveapopularfollowing,butthefactthatChinesewomenaremotivatedbytheneedtostandoutasagainstmergeintoaLouisVuittoncarryingcrowdmeansthatthereismoreroomforavibrantfashionscenetoemerge.AndthentherestheChinesetrumpcard,theShanghainesewoman,bornwithinbuiltfashionantennaeandatankfulofsassandspunk.ShellmakesurethattheParisoftheEastregainsitsrightfulplace.

IsChinathenewJapanforluxurybrands?Onlyinsofarasitpresentsanuntappedpotentialformassivelongtermgrowth.Forthemostpart,ChinaissimplythenewChina.Itoffersitsownsetofopportunitiesandchallenges.Thereisplentyoflegworkstilltodoandrobustprofitabilityisdowntheline.IanHawksworth,executivedirectorofHongKongLand,whichholdsthemostprestigiousretailpropertyportfolioinHongKong,comments:

Itsnotaprofitablemarketdomesticallyinthenextthreetofiveyearsbecauseofthecostofdoingbusinesstherethe



establishmentofnewstores,theestablishmentofdistributionchannels,thetaxationpositiononluxurygoods.AsWTObites,themarginswillbecomeeasiertoachieveinChina.

THE RISE OF SHOWBUZZTwomajorforcesfueledthespreadofluxury:theconglomerationoftheluxebusiness,andtheemergenceofanewkindofmarketing,partshowbiz,partprofessionalbuzzwecallitshowbuzzmarketing.

Conglomeration of Luxury

Inthegoodolddaysthedesignerwasthebrand.JeanneLanvinstartedthehouseofLanvin,GabrielleChanelwastheforcebehindtheHouseofChanel,ChristianDior,HubertdeGivenchy,YvesSaintLaurenttheyallbroughttheirowntalent,personality,andmystiquetobearincreatingacouturehouseintheirname.Theymayhavebeenapprenticedunderanestablishednamebeforeventuringoutontheirown,asYvesSaintLaurentwasunderDior,ortheymayhavetakenthehelpinghandofasavvybusinesspartnertobankrollthem.Oritmayhavebeenafamilyaffair:AldoGuccicarryingonwhatdadGucciohadstarted,orGeorgesVuittonbuildingonthefinetraditionofparentLouis.Thenameonthebusinesswasthenameofthedesignertheirvisionledthefutureoftheirdesignhouse.Theymayhavefloggedthename,asPierreCardinandYvesSaintLaurentdidusinglicensingarrangementstospreadtheirwingstofarflungplaces,squeezingasmuchprofitaspossibleinonelifetimebutatleastitwastheirownnametheysold.Thedesignerwasintegraltothebrand,andthebusinessmodelwassimple:thedesigner,theirname,theirbusiness.

Allthatchangedwithoneman,BernardArnault.SofartheFrenchhadexcelledatdesigningfashion,butthisFrenchmantookagiantleapoutsidetheboxandsetaboutdesigningthebusinessoffashion.Arnaultdidntseethepointoflimitingthescopeofacompanybyrunningitlikeamomandpopstore,albeitahighfashionone,whentherewasthepossibilityofconqueringtheworldandrakinginhighersalesandhigherprofits.Andhedidntseethepointoffollowingrules.Inhisvisioneverythingwasinterchangeable,designerscouldbehiredandfired,brandscouldbeboughtandsold,managementchanged,andcompaniesrestructured.Big,thatswhatArnaultwasafter,abigconglomerateofbrandswithbigrevenuesandbigprofits.Likeagameofluxemonopoly,hesetaboutbuyingprestigiousbrandsandbuildingthemintolargerprofitgeneratingmachines.Withonebrandyouhadonlysomuchreach,financialmuscle,andnegotiatingpowerwithastableofbrandsyoucalledtheshots.

Arnaultsetthetrend,andotherluxemonopolyplayersfollowed.Thispursuitofgreatersizeandgreaterprofitshelpedtheluxury

16

17




culturespreadlikewildfire.Theformulaofthe1990sconsistedoffindingnewbrands(eveniftheywereacenturyold)tobuy,findingahotnewdesignertobreathelifeintothemandahotnewmanagementtomatch,findingnewproductstostampthosebrandson,findinglargenewconsumersegmentstobuythem,andfindingnewmarketsallovertheworldtoselltheminallthetimeexercisingcontroloncosts,controlonproduction,controlondistribution,controlonbrandexpression.Controlfreakswithexpansionisttendencies,youmightcalltheseluxuryconglomerates,justthesortofcompaniesthatstockmarketslove,soofcoursegoingpublicbecamethemode,listingonbothsidesoftheAtlantic,bringingincashtofinancealltheexpansionactivity.

TheconglomerationoftheluxurybusinessbeganinearnestwhenArnaulttookoverChristianDiorinthemid1980s,buyingitsholdingcompany,abankrupttextilefirmcalledBoussac.HefollowedthatwitharatheracrimonioustakeoverofLouisVuittonMotHennessyin1989,andhesbeenshoppingaggressivelyeversince. Theresult:anempireofover50brandswhichbroughtin13.9billioninrevenuesin2005 thatwillkeepyoucoveredinluxuryfromheadtotoeandinfinespiritstoo.ArnaulthasfashionandleathergoodsbrandssuchasGivenchy,Loewe,Celine,Kenzo,MarcJacobs,Fendi,DonnaKaran,andmore.Hehaspickedupanequallyimpressiveportfolioofcosmeticandperfumebrands,ParfumsChristianDiorandGuerlainamongthem.HehasboughtwatchbrandslikeTAGHeuer,Ebel,Zenith,andChaumet,andhasnowextendedtheLouisVuittonnameintowatches.Hesgottopqualitywinesandspirits:Mot&Chandon,DomPerignon,andVeuveCliquot,whichisapparentlythebeverageofchoiceatthefamedLouisVuittonstoreopeningparties.HesalsointoretailingwithdesignercosmeticsatSephoraandsellingluxurytotravelersatDFS.Thejewelinthecrown,however,remainsLouisVuitton,itsmonogrammedwaresspreadinglikeanunstoppableepidemic.

IfLouisVuittonisthebread,butter,andjamfortheworldsbiggestluxurygroup,theFrenchbrandCartierplaysthesameroleforthesecondlargestgroup,SwitzerlandsRichemont,startedbySouthAfricanbillionaireAntonRupertin1988andlaterrunbysonJohann.Richemontisanotherwellspreadconglomeratewithamajorinterestinwatchesandjewelry,whichaccountsfortwothirdsofitsbusiness. Ithasadrawerfulloftopdrawerwatches:Piaget,Baume&Mercier,VacheronConstantin,IWC,JaegerLeCoultre,andLange&Shneamongthem.TheresVanCleef&Arpels.TheresMontBlanc.TheresAlfredDunhill.Inotherwords,theresacollectionofbrandsthatAsialoves,especiallyChina,wherepeoplebuyCartierwatchesbythedozenasgifts,aswellasenoughblazersandbriefcasestokeepDunhillsretailnetworkof50pluspointsofsaletickingaway.Intermsofsales,theRichemontGrouphasaboutathirdofLVMHs.

18

19

20

https://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/notes.html#ich01note20https://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/notes.html#ich01note19https://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/notes.html#ich01note18



ThethirdsignificantluxeconglomerateistheGucciGroup.ItsbusinesshistoryreadslikeaHollywoodthriller:Anearinsolventfeudingfamilybusinessbecomesthemosttalkedaboutturnaround,thenthesubjectofafiercetakeoverbattlebytwoofthemostheadstrongFrenchmenintheluxurybusinessLVMHsArnault,andFranoisPinault,whoheadstheFrenchretailconglomeratePPR(previouslyPinaultPrintempsRedoute)thentransformsitselfintoamajorluxurygroupandgoesshoppingforbrandsitself.Inthelate1980sGucciwasgaspingforbreathandDomenicodeSoleasCEOandTomFordascreativedirectorwerebroughtintoresurrectit,whichtheydidsosuccessfullythateverybrandsincedreamsofdoingaGucci.FordssexydesignsandsavvyadvertisingcampaignsnottomentionhisownmoviestarlooksandirresistiblecharmhadwomendroolinginthenewlyrevampedchainofGucciboutiquesaroundtheworld.GuccishookAsia,itbecamethebrandtodiefor,andeventoday,althoughLouisVuittonoutstripsitinsales,formanyAsiansGucciisthefirstbrandthatcomestomind,andtheonetheywouldlovetobuy.

Table1.2TheconglomeratesbehindsomeofAsiasfavoritebrands

In1999ArnaultmountedatakeoverattemptonGucci,buthisbidwasfoiledbyPinault,whopurchaseda42percentstake.Itwascorporatewarfare,glovesoff,withplentyoflawsuitsandcontroversialpress.Theboardroomactionbecameasinterestingastheshowonthecatwalks.Pinaultwontheday.HealsosubsequentlyboughtanothercompanythatArnaultwasafter,SanofiBeaut,whichownsYSL.

GucciGrouphassinceacquiredSergioRossi,BottegaVeneta,Boucheron,andBalenciaga,besidesluxurywatches,cosmetics,



andperfumes.InyetanothertwisttotheGuccisaga,FordanddeSolelefttheempiretheyhelpedcreatewhentheircontractsexpiredin2004reportedly,theycouldntseeeyetoeyewithPinaultontheirdegreeofautonomyinrunningthebusiness tobereplacedbyRobertPolet,formerheadofUnileversicecreamunit.PinaultfinallyownsthewholeshowPPRboughtbackminoritysharesandtheGucciGroupwasdelistedfromtheAmsterdamandNewYorkstockexchanges.

Theforcesofconglomerationinfluencedsmallerluxuryhousesaswell.Pradawentonashoppingspree,buyingJilSander,HelmutLang,andChurch&Co.Hermsacquireda35percentstakeinJeanPaulGaultier.

PartoftheconglomerationstrategyistoinfusefreshlifeintoacquiredbrandstodoaGucci,sotospeak.TodoaGucciyouneedaTomFord,andwhilethereisjustoneofhim,theresafairsupplyofexcitingnewdesignerswithplentyofartistictalent.Thesearchforgutsydesignerstogiveamoderntwisttoagingbrandshasresultedinaninterestinggameofmusicalchairs.Ironically,vintageFrenchandItalianbrandsarebeingentrustedtoyoungAmericanandBritishdesigners.

Arnaultistheacknowledgedmasteratconductingtwentyfirstcenturysurgeryonnineteenthcenturybrands,findingtherightbalancebetweenlifegivinginnovationandthebrandstraditionalcore.AmericanMarcJacobsisthedesignerbehindtheupdatedimageofLouisVuitton,wittilyaddingatouchofpopandkitsch.FellowAmericanMichaelKors,knownforhisminimalistapproach,wasthemanArnaultchosetoreviveCeline.ForChristianDior,ArnaultfirsthiredGianfrancoFerrein1989,thenreplacedhimwithSpanish(butraisedintheUK)JohnGallianofromhousebrandGivenchy.BritishdesignerAlexanderMcQueenfilledGallianosspotatGivenchy,beforedefectingtorivalGucciGroupandsettinguphisownlabel.Inthemeantime,Gallianocontinuestoshockanddelightwithayoung,brash,urbansexinessthatisthenewnewlook,milesawayfromtheladylikeglamorousNewLookthatChristianDiorcreatedin1947.

AtRichemontsfashionhouseChlo,StellaMcCartney(daughterofexBeatlePaulMcCartney)succeededthelegendaryKarlLagerfeldin1997,makingwaveswithherfirstcollection,whichcombinedvintagetoucheswithmoderntailoring.McCartneydidaMcQueen,formingherownlabelundertheGucciGroup.HerassistantandgoodfriendPhoebePhilo,alsofromBritain,tookoveratChlo(untilshealsoleftin2006),withsuchsuccessrumorsswirledthatPhilowasdoingthedesigningallalong.

ItsnotjustAmericandesignerswhoarelendingahandintherejuvenationofEuropeanbrands:Americanmanagersarepitchingintoo,bringingamuchneededprofessionaltouch.RosemaryBravosturnaroundoftheveryBritishlabelBurberry

21




isashiningexample.Shearrivedin1997and,withthehelpofItaliandesignerRobertoManichettiandanadvertisingcampaignbymasterphotographerMarioTestino,teleportedBurberryintomoderntimes,showingsupermodelKateMossinaskimpybikinimadeoftheancientBurberrytartan.MichaelBurke,anotherAmerican,hasbeenwithArnaultrightfromthestartofhisLVMHempirebuildingforay(itshowsinBurkesfaultlessFrenchaccentandeffortlessshouldershrugging),playedasignificantroleinthegroupssuccessandtheturnaroundofChristianDior,andisapplyinghistouchtogroupbrandFendi.

The Emergence of Showbuzz Marketing

Withtheluxurybusinessitselfchangingmassivescale,globalcoverage,professionalmanagementthemarketingandpromotionofthatbusinesstookonsimilarcharacteristics.WhereasthelikesofCocoChanelandChristianDiorpresentedtheircollectionsinasmallsalon,todaysfashionshowsarenothingshortofshowbiz.Whereasearlierafewinfluentialmagazineeditorsdictatedthedisseminationoffashioninformation,nowhugemediaempireswithglobalcoveragecarpetbombtheplanetwithuptotheminutefashionintelligence.Thecreationofbuzzgettingyourbrandtalkedabout,makingsureitstaysinthenewshasgoneprofessionaltoo,deployingarangeofPRtechniquestomakeasplash,includinghiredcelebritiesandoverthetopevents.Itsthenewshowbuzzmarketing,combiningtheprinciplesofshowbizandbelowthelinebuzzgeneration.

Theneedforthisnewkindofmarketingwasclear.Theearlierconceptofluxurygoodsbasedonskilledcraftsmanship,exclusivity,andlongevitybecameincreasinglyirrelevantwithinamachinemade,technologyenabledproductionprocess,withbatchesfarmedouttofactoriessometimescontinentsawayfromthehomeofthebrand.Today,itstheauraandimagethatyoubuildaroundthelogo,theintangiblecomehitherappealthatyouembedinitsleather,orthecoolquotientthatyouimbueintotheluxeconsumingpublicsmindthatswhatconsumersbuyasmuchastheybuythebag.Fromtheproductanditsinherentquality,thefocushasshiftedtothebrandanditsimage.GrantMcCrackeninCultureandConsumptioncallsthistheprocessofmeaningmanufacture,wherethankstoadvertisingandthefashionsystem,culturallysignificantmeaningismovedintoconsumergoods.

Asfarasluxelandisconcernedshowbuzzmarketingboilsdowntocreatingtherightkindofbuzz,packagingitneatly,andsellingitatthestore.Wellbeforetheconsumerreachesthatstore,theresawholearmyofimagesandwordsassaultingher,createdbyamediaandmarketingjuggernautworkingatfullblastonbehalfofthebrand.Bythetimeshetriesonadressfromthelatestcollection,orconsidersthepurchaseofanewbaginthestorewindow,shealreadyhasdefiniteperceptionsaboutthebrandand

22




theparticularpieceinquestion.AndifsheisJapanese,shecouldeffortlesslywritea2,000wordpaperonit,fullofexquisitedetailsaboutthedesigner,thethemeofhislatestcollection,howitlinksbacktohisearlierwork,themodelwhowalkeddownthecatwalkwearingit,thebignamesintheaudience,theinternationalcelebritieswhoaresportingitcurrently,andthelocalonestoboot.Todaysluxeconsumerconsumesthebuzzasmuchasshedoestheproduct,andshespendstimediscussingitwithherpals.Latestbrandarrivalsarealegitimatetopicofconversation,andwhatyouhaveonandwhatyouplantopurchaseareinterestingfacilitatorsofsocialinteractioninAsia.

Themassmesmerizationwithfashiononaseasonbyseasonbasisisadirectresultoftheindustrytakingoncharacteristicsofshowbiz.ThesamehumanfascinationwithglamourandcelebritiesthatdrawsadoringcrowdstoHollywoodmoviesandalltheperipheralactionandgossipalsodrawsthemtothefashionworld.CatwalkshowsinParisandMilanhavebecomeextravagantproductionsstagedwiththeatricalexpertise.Theme,venue,music,lights,sets,choreography,stylingeverythingismanagedtocreateabigbang,visualimpact.Itspureentertainment,audaciousclothes,glamorousmodels,andplentyofleg,breast,andmoreondisplay.AndtheshowsarestagedasmuchfortheliveaudienceofAlistheadturnerssittingaroundthecatwalkastheyarefortheglobalpressthatbeamstheminstantaneouslytotheworld.

Therearetelevisionchannelsdevotedtofashion,leavealonenumerouswebsites.Imagesfromtheshowsarecarriedbyfashionandlifestyleglossies,internationaltitleslikeElle,Vogue,andCosmopolitan,aswellasaslewoflocalmagazinesthatdishoutfashionadvice.InChinaalone,some200newfashionandlifestylemagazineshavesprungupinthelastfiveyears.JapanesefashionglossieshavebecomesogoodthattheyaresoughtafterinmarketslikeTaiwan,wherethecurrentgenerationcantevenreadJapanese.Butthatsthepoint:Thisvisualcultureisuniversallyunderstood,itdoesnotneedtobetranslatedintoanywrittenlanguage.



Fromthecosycalmoftheearlysalonshowingstotherazzledazzleoftodaysrunwayacts,fashionshowshavetransformedintoshowbiz.Left,amodelposesinanearlyChristianDiordressinarathersedatesettingbelow,amodelstrutsdowntherampinadazzlerfromJohn



GallianoscollectionforDior.PhotoleftbyHenriCartierBresson,courtesyofMagnum.PhotobelowcourtesyofDior.

WomeninAsiaareknowntotearoutpicturesfrommagazines,shotsstraightfromtheramps,andwalkintostoresseekingtheentirelook,headtotoe.TherichandfamousgoastepfurtherandtaketheleadfromthericherandmorefamousforexampleHalleBerrysElieSaabdesignedOscardress,asheersheathwithstrategicallyplacedflowers,wassportedbyHongKongsocialiteOliviaDavies,whohastoppedlocalbestdressedlists.Lessermortalshaveavirtualrelationshipwithdesigners,muchlikeafanofJenniferLopezwouldwiththesinger.IfyouheartheintimacywithwhichaJapanesewomantalksaboutMarcJacobs,youareconvincedthatheisindeeddesigningthoseexquisiteoutfitsandaccessoriesjustforher,oneonone.

Sowhatistheroleofadvertisinginthisshowbuzzmarketingera?Itsaliveandwell,butitsrolehasevolved.Advertisingcreatesawareness,itdefinesthebrandsimage,buttodaysskepticalconsumerpaysmoreheedtowhatmagazineeditorialsaresaying.ManyAsianconsumersdontevenbotherwiththeinherentimageofabrand.TryexplainingthefactthatthefavoritebrandofJapaneseteenagersisthedecidedlymaturewomansHermstheyareonlyinterestedinhowinthebrandisamongtheirpeers.Forthatkindofinformation,itisfarmoreusefultocheckoutwhoiswearingwhatinthecompanyofwhomatwhicheventbacktogoodoldbuzzconsumption.Thatswhereadvertisementscomeinextremelyhandyafterall,whicheditorisgoingtotreatabigadvertiserunkindlyintheireditorialcontent?Ifyoureaconglomerateyourstableofbrandsputsyouinanenviablepositionbesidesexcellentadvertisingrates,youarelikelytogetexcellenteditorialcoverage.

Brandpartiesaretheragethesedays,withthelocalwhoswhoinattendancethesecanrangefromcozylittleaffairstomammothextravaganzas,especiallyinChina.Theyensurethatbrandnamesfillthesocietypagesandgossipcolumnsinlocalnewspapersandmagazines.Inanecontroversiesarecreated.Forexample,aHongKongactresswasaccusedofhijackingtheFendishowingofitsautumnwinterfurcollectionbyarrivinginaLouisVuittondresswithanecklinethatdidntjustplunge,itbungeed.Asaresult,theactressandherassetsgotmorepresscoveragethantheFendimodels. Celebritiesareincreasinglybeinghiredasbrandambassadors,withthespecificpurposeofappearingateventswearingaparticularbrand,resultinginreamsofnewscoverage.

Sometimesthebrandsdontevenhavetotrytobeinthenews.TheluxuryculturehasnotonlyspreadtoAsia,ithasseepedinsodeepthatitwellsuponitsown,withoutanyeffortbythebrandatall.Showbuzzonautopilot.Inthe2003SuddenAcuteRespiratorySyndrome(SARS)epidemicthatsweptthrough

23




HongKong,residentsrushedtobuyvirusprotectivemasks.RumorsspreadthatGucciandLouisVuittonhadputdesignermasksonthemarket,theLouisVuittononeapparentlymadeofsupersoftleatherwithamonogrammedsterlingsilverclasp.Thisledtoadelugeofcallsatthecompanysstoresandoffices.Itturnedouttobeahoax,butmanywishedithadbeentrue.Afterall,agirlneedsagoodlookingmasktogowithherGucciandChaneloutfits.

FASHION

1837LouisVuittonstartsmakingtrunksatthecourtofEmpressEugenieandgoesontoopenhisfirststoreinParisin1854.Acenturyandahalflater,hisbrandconquerstheheartsoftheJapaneseanditsbrownmonogrambagsbecomederigueurforAsiasnouveauxriches.

1837ThierryHermsstartsasaddlerycompany,whichismodernizedacenturylaterbyhisgrandsonEmile.ItsfamedBirkinbagsatjawdroppingpriceshavemadeitthemostdesiredstatussymbolinAsia.

1895ThomasBurberrycreatesthetrenchcoat.FirstwornbyBritishofficersduringtheBoerWar,itisnowsowellentrenchedinAsiathatBurberryistheKoreanwordforraincoat.

1913CocoChanelopensherfirststoreinParis,andgoesontoshakethecitywithherbreakingthemoldfashionstatements,aswellasherunconventionallifestyle.Today,hersignaturestylehasfoundawidefollowinginAsia,fromJapaneseteenagerstoKoreanbarhostesses.

1915ThebeginningofBurberryslongandcheckeredhistoryinJapan,includingBurberryfeverinthe1980sandaJapanonlyBlueLabel,immenselypopularwithyoungwomen.GettingthereearlycertainlyhelpedBurberryenjoysoneofthelargestretailsalesamongimportedluxurybrands.

1932GuccioGuccidesignstheclassicGucciloafers,asymbolforthewealthy.Ayearlaterhisson,Aldo,createstheinterlockingdoubleGlogo(afterhisfathersinitials),whichhalfacenturylaterbecomestheragealloverAsia.

1935SalvatoreFerragamosetsuphisworkshopinFlorence.HewasdubbedshoemakertothestarsandhisshoesareamusthaveitemforeverySouthKoreanwomantoday.

1947ChristianDiorsNewLookcollectioncreatesastirinParis,reshapingthefemaleformintoaneleganthourglass.Halfacenturylater,JohnGallianosoutrageousdesignscauseasimilarstiramongAsiasAlist.

1956HermsnamesGraceKellysmuchlovedbagafterheronhermarriagetoPrinceRainierofMonaco.Waitinglistsforthis

24




todieforbag,costingUS$510,000,areindefinitelyclosedinAsia.

TIMELINE

1978MiucciaPradainheritshergrandfathersbusiness.HeruseofinnovativefabricsandherminimalistdesignsmakethetriangularPradasymboloneofthehottestinAsia.

1983KarlLagerfeld,newdesigndirectoratChanel,reinventstheoriginalspiritofCocoinamodernmtier.Thisisthefirstofwhatsoonbecomesabrandrejuvenationtrendamongluxurybrands.

1986ImeldaMarcossfamed3,000strongshoecollectioncomestolightafterthePeoplePowermovementoverthrowstheMarcosgovernment.

25




1990TomFordjoinsGucciascreativedirectorand,togetherwithDominicdeSole,revivesthecompanytoamazingheightsofsuccess.

1999BurberryssignaturechecksonabikiniwornbyKateMosstransformthe100yearoldlabelintoamoderndaybrand.AsiaissoonawashinBurberrychecks,somewithalittlehelpfromthefertilecounterfeitmarket.

2001Hermss11storyglassbrickretailextravaganzaopensinGinza,Tokyo,creatinghysteriaamongwomenwhoqueueupseveraldaysinadvancetobuythelimitededitionbagspromisedonopeningday.TheRenzoPianodesignedflagshipstoresetsahighnoteforthemegasizedflagshipstoretrendthatcatchesoninJapan.

2001Plaza66,astateoftheartluxurymall,opensonShanghaisfamedshoppingstreetNanjingLu,pushingthecitysretailtoworldclasslevelsinonestroke.

2002QueuesbuildupthreedaysinadvancefortheopeningofLouisVuittonssixfloorflagshipstoreinOmotesando,Tokyo,anappropriateretailtemplefortheluxurybrandmostreveredbytheJapanese.

2006ThelikesofArmaniandChanelstagehautecoutureshowsinHongKong,signalingtheopeningupofalucrativeultrahighendsegmentinAsia.

2007IndiaentersanewphaseofluxuryretailingwiththelaunchofDLFEmporioinNewDelhi,thecountrysfirstluxurymallwithawhoswhorosteroftopbrands.



Thelogoficationofbagsacceleratedthespreadofluxe



maniaacrossthecontinent.PhotoscourtesyofCoachandFendiAsiaPacific.



People who finished this also enjoyed:

Recommended / Queue / Recent / Topics / Settings / Blog(http://blog.safaribooksonline.com) / Support(http://msupport.safaribooksonline.com/?prod=flow) / Feedback / Sign Out 2015 Safari(http://www.safaribooksonline.com/). Terms of Service / Privacy Policy

Everheardofathreeyearwaitinglistwhichyoucannolongergetontoforabag?!Theculprits:BirkinandKellybagsbyHerms.PhotoscourtesyofHerms.

Targeted malefrom: Fashion Brands, 3rd Edition by MarkTungateReleased: October 201217 MINS

Business / Business Communication

BOOK SECTION

PREVPart One: How an

NEXT2 Finding Meaning

https://www.safaribooksonline.com/t/business-communication/https://www.safaribooksonline.com/privacy/https://www.safaribooksonline.com/recent/https://www.safaribooksonline.com/accounts/logout/http://blog.safaribooksonline.com/https://www.safaribooksonline.com/t/business/https://www.safaribooksonline.com/s/http://msupport.safaribooksonline.com/?prod=flowhttps://www.safaribooksonline.com/library/view/fashion-brands-3rd/9780749464462/https://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/ch02.htmlhttps://www.safaribooksonline.com/library/view/fashion-brands-3rd/9780749464462/C15.xhtmlmailto:feedback@safaribooksonline.comhttps://www.safaribooksonline.com/library/view/fashion-brands-3rd/9780749464462/C15.xhtmlhttps://www.safaribooksonline.com/terms/https://www.safaribooksonline.com/r/http://www.safaribooksonline.com/https://www.safaribooksonline.com/t/https://www.safaribooksonline.com/u/https://www.safaribooksonline.com/library/view/cult-of-the/9781904838050/xhtml/part01.html

1 a Love Affair With Luxe - Cult of the Luxury Brand_ Inside Asia’s Love Affair With Luxury

Documents

Event Love&Luxury, Social Media

The Buenos Aires Affair - Análisis

Douce Tendresse Musique: Ernesto Cortazar Eternel-love-affair

true love. EMILY · 2019. 3. 28. · 82 83 WEDLUXE ˚˛˝˙ˆˇ˘ ˝ ˛˝˛ ˛ ˆ˝ EMILY &WAYNE Photography by DENISE LIN PHOTOGRAPHY true love. true luxury. Hair styling and makeup

Wedding Affair 2011

true luxury. HENRY N - WedLuxe Magazine · 2019-03-28 · 156 ˜ 157 WEDLUXE ˚˛˝˛˙ˆ˛ˇ˘ ˆ ˛˙ true love. true luxury. photography by ikonica KELLY HENRY and A SPECTACULAR

Public Affair Division 1

A Minor Affair Big Band

LATINAlatina.co.jp/sale/2014summersale/1407BRASILALL.pdfVA A LOVE AFFAIR THE MUSIC OF IVAN LINS CD VA／ショリーニョス・イ・ショロンイス ATR 12030 ￥2484 ￥324 VA

Employee Affair System

ICF and geriatric rehabilitation – a love affair?

Arnon Grunberg - A Foreign Affair

International Trade Affair Consulting Service 국제통상자문서비스 · 2020-03-06 · International Trade Affair Consulting Service 국제통상자문서비스 Subject: 삼일은

A Ux love affair

COMMERCESuisse Nouve affair ommerce

CARE affair Hunger

Borboleta affair

Gemeinde - Pflanzer - Treffen Großalmerode 3.4. November 2006 1 Church planting is a love affair between church and mission Das Betriebssystem einer Kirche

A love affair with paris vu1

07th Edition - Love Affairtheloveaffair.it/wp-content/uploads/2020/02/TLA_2020_bando_05.pdf · 2. una moodboard stilistica da rispettare. Partecipare a The Love Affair significa avere