Tag Archives: luxury

TWG Tea leads the way in tea luxury

TWG is a luxury tea brand like no other.  It is a luxury concept that incorporates an international distribution network to professionals, unique and original retail outlets, exquisite tea rooms and tealeaves of every name for you to take home and enjoy too. The TWG stands for The Wellness Group and anyone who has been to one of their amazing outlets certainly feels good afterwards.

They have recently opened up several new premium and expensive tea rooms at the luxury Shoppes at Marina Bay Sands (Singapore’s premium version of a Las Vegas integrated resort and much more successful). There is no stopping their march to place tea at the heart of all that wealthy Asian residents aspire to. Visitors and wealthy residents alike queue for hours just to experience afternoon tea at TWG.

TWG offers over 800 single estate fine harvest teas and exclusive blends, as well as tea patisseries and other tea infused delicacies. Ironically England, the home of tea, has a long way to go to match the TWG experience. Fortnam and Mason don’t even come close. They have one boutique at Harrods but it’s really a Singaporean experience.

You name it, TWG have a tea called it!

TWG Tea combines the best of Asian and European traditions of elegance and beauty on which it is based and have some of the most amazing names that could possibly be imagined for their products. Drinking tea called Weekend in Casablanca tea or Silver Moon Tea, Christmas Lights tea or  Immortal Moment tea, Geisha Blossom tea or Valentine Breafast tea, Miracluous Mandarin tea or Happy Birthday tea is just so much more refined and exotic than PG Tips or Lipton!

via TWG Tea leads the way in tea luxury | Chris Reed on Partnership Marketing | Brand Republic blogs.

LVMH Group to fund India’s Ready-to-Wear Fashion Retail

The world’s largest luxury goods conglomerate, LVMH Group, will launch its private equity fund in India, in an attempt to tap the burgeoning disposable income and rising aspirations of the country’s urban population, especially women.

L Capital, present in New York, Madrid, Milan, Shanghai and Singapore, will invest in India from its fourth fund, which is dedicated to Asia and has a corpus of $650 million. It also will focus on economies such as China, Malaysia, Indonesia and Thailand.

“We are looking at investing in companies in the lifestyle arena in Asia, primarily from the aspirational segment, meaning people who are moving from mass-produced goods to the next layer up,” said Ravi Thakran, managing partner of L Capital. “We are not keen on top-end luxury in India. We may look at that, but that is not our main focus.”

Mr. Thakran said Indian high-end designers are missing out on the real growth story in fashion by focusing on couture, which caters to the richest 500 families, and the wedding apparel business. The opportunity, he said, is in the ready-to-wear segment.

Mr. Thakran–who previously worked at the Swatch Group and helped launch Indian jewellery brand Tanishq in the U.K.–also, is betting on discretionary spending gaining pace in India.

“Today the world is moving towards a new center stage, which is certainly Asia, but China and India are two pillars of that,” he said. “This was the case pre-crisis but post-crisis it is even more so.”

However, India lags behind China when it comes to scalable brands and businesses. “In China, there are already at least 10 businesses we might be interested in which are worth $200 million to $250 million, whereas in India none of the (best known) designers have even reached the $100 million scale,” Mr. Thakran said.

L Capital is looking to bring in expertise on operational improvements in areas such as product design, logistics, store design, visual merchandising, talent search and training and development. Assistance in these areas for an early stage growth company is more important than capital, Thakran said.

He will be looking for deals in shoe, apparel and wine businesses, makers of lifestyle furniture, beauty brands, apart from skincare centers and spas.

“This is where the new consumption is rising in India,” Mr. Thakran said. “When aspirations and disposable incomes rise, consequently consumption in new arenas, our targeted sectors, also rises.”

Fashion designer J.J. Valaya, in an e-mail response, defended the prevalent focus on couture and wedding dresses, citing “lack of infrastructure, distribution and adequate capital.” He added that ready-to-wear is profitable only if it achieves volume.

“At present the top names in the country are not prepared to reach those numbers single-handedly,” Mr. Valaya said. “In the West too, a Louis Vuitton or a Jimmy Choo achieved reach through strategic corporate associations.” According to Mr. Thakran, Indian fashion businesses suffer because the creative force, the designer, is forced to look after operations due to lack of resources.

This shortage of resources has prevented recognized Indian businesses from transforming themselves into brands with greater economic value, he said. “If the creative guy is busy sorting out the accounts and logistics, and looking after the retail store, he cannot focus on the creative part,” Mr. Thakran said. “If you can bring to them knowhow in these areas and to build that front end, these brands can really unleash their potential.” (Source: Online WSJ.com)

QATAR FOUNDATION to develop local luxury brands

Qatar Luxury Group (QLG), the first venture of Qatar Foundation in the luxury segment, will unveil a series of all-new Qatari brands this year in the fashion, hospitality and lifestyle sectors. Gregory Couillard, Chief Executive Officer of Qatar Luxury Group, said that two years after the Group started it is creating a structured portfolio of culturally informed high-end brands that offer exclusive experiences and timeless products.

The press release posted in the CPP website does not mention whether the Qatar Luxury Group will embrace sustainability and responsibility- a big must now in the Middle East countries, as shown by the Masdarcity  and the many project requests ECOFFEE receive everyday. We will investigate about and keep you updated.

CPP-Luxury, an online business magazine, adds that the Group is currently active in two main sectors — fashion and hospitality. Fashion represents the core activity of the Group, which has invested heavily in world-class design and engineering equipment for in-house development of product lines. Prototyping units on jewellery, luxury ready-to-wear apparel, shoes, leather goods and accessories are all located at the QLG’s headquarters and soon a manufacturing facility will be opened for mass production of the unique product lines which is not only meant for the local market but for the international sphere as well.

The first initiative of the Group will be the launch of a restaurant later this year in collaboration with an internationally recognised 3-star Michelin French chef, two more restaurants in 2012 and one luxury fashion brand alongside the Group’s development of projects in the lifestyle sector. Couillard is optimistic QLG will contribute considerably in the country’s thrust toward diversifying its economy. The Group has a strong team with members from 14 nationalities including designers from Belgium, Chile, Qatar and US.

The press release posted in the CPP website does not mention whether this huge project will embrace sustainability and responsibility- a big must now in the Middle East countries.

Business Retail: a global view

Retail is big, but how big it is and is it equally distributed worldwide or are there countries where retail is at its best?  

The last CB Richard Ellis Survey  about the business of Retail, reveals how fluctuating this market is, measuring how the most important 323 retailers changed their strategies in 73 countries during the last year.

The survey findings are very interesting, showing us that Dubai is the most favorite city for both American (61%) and European (63%) retailers, while only 23% of retailers from the Asia-Pacific area are present in that city – not because of lack of interest, but just because the Asia-Pacific consumer market is the fastest growing, therefore retailers from those countries do not need to branch out abroad.

Retail expansion rate saw a decrease during 2010, only a 2%, compared with 4% in 2009 and 12% in 2008, with new target countries being India (8 new retailers) and Turkey (7). United Arab Emirates (UAE), Kuwait, Ireland, Romania, and Belgium all attracted six new retailers.

Online retail is becoming more and more important for retailers: 82% of the brands in the survey do have an online catalogue, even though only a smaller percentage (46%) offers to consumers the chance to purchase goods online, with Value&Denim being the most active (43%) followed by mid-range fashion  (26%) and Luxury & Business Fashion (32%). To have an online retail shop is the favored choice by those brands who already have a physical store (46%), while in more advanced market such as the U.S.A., there is a slight percentage of online seller (24%) who do not have a physical store, and that are using online sales platform to test the market before opening a physical point of sale.

Fashionable sustainability or sustainable fashion?

Starting from Edun fashion brand, by Ali Hewson and Bono, whose mission is to encourage trade with Africa, to H&M’s Conscious Collection and Zara’s eco-friendly stores, it seems that “sustainability and responsibility” are now a must in the fashion industry.
The latest news regarding fashion and sustainability is the PPR Group’s (home of Gucci, Puma,Yves Saint Laurent and Stella McCartney) Sustainability Initiative PPR HOME to Set New Standard in Luxury, Sport & Lifestyle and Retail Sectors.

By moving beyond the traditional Corporate Social Responsibility model, the group launched PPR HOME and is setting a new standard in sustainability and business practice in the Luxury, Sport & Lifestyle and Retail sectors.

“My deep conviction that Sustainability creates value is part of my strategic vision for PPR. Sustainability can – and must – give rise to new, highly ambitious business models and become a lever of competitiveness for our brands. PPR HOME will provide us with novel, more sustainable approaches to contribute to a better world for the long run”, said Francois- Henri Pinault, CEO of PPR.

PPR HOME’s first announcements are setting the pace for the Group’s sustainability mission in order to reduce the social and environmental footprint for its Luxury, Sport and Lifestyle brands. These pioneering initiatives include:
-PPR HOME launches the Creative Sustainability Lab to help lead the industry and foster creativity, innovation and sustainability. Its inaugural partnership with Cradle-to-Cradle® will drive PPR HOME to challenge traditional approaches and proactively re-think and re-consider product and business development. The Cradle-to-Cradle® concept believes that ‘good design’ of products and services should move beyond typical measures of quality – cost, performance and aesthetics – to integrate and apply additional objectives addressing environmental and social concerns.
– PPR has offset its 2010 global CO2 emissions from PPR’s Luxury group, PUMA and PPR’s headquarters of 98,729 tons to achieve carbon neutrality in Scopes 1 & 2 of the Greenhouse Gas Protocol and purchased carbon credits from Wildlife Works’ leading REDD (Reduced Emissions from Deforestation and Degradation) offsetting project in Kenya that takes the needs of the local communities and the conservation of biodiversity into account. As the first step in making REDD a reality, Wildlife Works recently provided proof that REDD conforms to the accounting rigor that other carbon credit classes provide, resulting in Wildlife Works project becoming the first-ever Voluntary Carbon Standard (VCS) validated and verified REDD program.
-PPR’s premiere Sportlifestyle brand, PUMA, has applied a groundbreaking methodological approach to measuring and costing their use of ecosystems and their ecological footprint. This is the initial step to measuring the full economic impact on ecosystem services by PUMA and its supply chain and the delivery of the first-ever Environmental Profit and Loss (EP&L) account statement. PPR HOME will take a leadership role in building understanding and support for this corporate shift, encouraging others within the industry to share PUMA’s pioneering efforts towards fully-integrated reporting.

Our opinion as sustainability advocates and retail consultants is that all these strategies, well planned and communicated, must follow the companies products from production to sale. The risk is that fashion consumers do not perceive the real added value of sustainability when in-store communication lacks and when the store itself it is not sustainable. An example? Keep following us: ECOFFEE case studies to come in the next weeks!

China retail luxury: a long-term insight

China: a market that is continuously growing, a very rich but still unknown to the many. What is clear is that China is set to become the most powerful economy in the world, and this will happen in a very short time. Many are the companies that have already sucessfully entered the Chinese market, luxury good brands being the pioneers.

A McKinsey survey over 1.500 Chinese luxury consumers during spring 2010, shows interesting trends which are basically telling to the world that the “consumer culture” is changing at a very high speed, following the changes in the society and urban landscape. For those who are interested, the whole report can be downloaded here, but three are main facts:

  • “Rapid increases in wealth, and shifting social mores that sanction the display of that wealth, are driving a growing infatuation for luxury goods among Chinese consumers.”
  • “Access to an explosion of information on the Internet, an increasing penchant for overseas travel, and first-hand experience purchasing and consuming luxury goods are contributing to a substantial rise in sophistication among luxury consumers in China. Contrary to popular belief, a growing number of Chinese luxury consumers are exhibiting a noticeable trend away from overt displays of wealth, and towards more understated forms of luxury consumption.”
  • “Rapid urbanization and growing wealth outside of China’s largest cities is driving the emergence of several new geographic markets with sizable pools of luxury goods consumers. Over the next 5 years, [McKinsey] expects that the number of such cities will double from 30 to 60.”

Other key findings are social-demographics related. Not only traditional luxury brands consumers, but also 13 million upper-middle-class households (earning $15,000 to $30,000), which are stretching their budgets to buy luxury watches, jewelry, handbags, shoes and clothing. This segment represented 12% of Chinese luxury consumption in 2010, but is expected to reach 22% by 2015.

The survey also shows that approximately 73% of luxury consumers in China are under age 45, significantly younger than their counterparts in western nations or even nearby Japan. 

All these findings essentially reinforce the widespread idea that if this trend is going to be followed in 2011 too, China will become the biggest retal luxury market in the close future. (Source: McKinsey, Picture credits: TheChinaObserver)

Luxury and sustainability… a trend we will see more of in China

URBN Hotels & Resorts announced plans for URBN Hotel Pudong, a new green hotel that will become the first positive-impact hotel in China. The hotel is slated to open Spring 2012.

In collaboration with Vanke, China’s largest residential real estate developer, URBN’s 20,000 square metre boutique hotel is part of a larger commercial, retail and residential development in the Sanlin district of Pudong in Shanghai. They have tapped Fumihiko Maki, the world-acclaimed Japanese architect whose current works include the United Nations building and World Trade Center Tower 4 in New York City, to design the project.

The development, which is estimated to cost RMB 312 million (US$47 million), will include 55 hotel rooms, 50 URBN serviced residences, and 4,500 square metres of dining, wellness and art spaces.

URBN created China’s first carbon-neutral hotel, the chic and hip URBN Shanghai in the Jingan district. URBN Shanghai is passionately committed to the environment and is at the forefront of the growing consumer eco-movement in China. URBN tracks the hotel’s entire carbon footprint and offsets it by purchasing carbon credits or investing in local “green” energy development and emission reduction projects. The hotel provides guests the option to find out their footprint during their stay and by donating trees to Jane Goodall’s Roots and Shoots foundation to offset.

For the new URBN Hotel Pudong, Jules Kwan, Managing Director of URBN Hotels indicated that “the aim is to make this hotel go beyond sustainability … the hotel will increase the biodiversity of the site, and will discharge water that is cleaner than the water from the city’s water supply.” The hotel hopes to get LEED and China Green Star certifications. Also, URBN Hotel Pudong aims to surpass the 35% energy savings target hit by URBN Shanghai. (Source: Red-Luxury)