n.01 Contents Articles 2 Luxury Data 6 Luxury Mass Customisation 10 No.1 Savile Row 20 Vuitton Lives On 23 Art & Luxury
Survival Kits 12 14 26 28
Weekday Survival Kit 1 Weekend Survival Kit 1 Weeday Survival Kit 2 Weekend Survival Kit 2
Mission Statements 8 Mission Statement 1 18 Mission Statement 2
Misc 1 Introduction 4 Luxury Defined 5 Client Classification 16 Shoe Spread 30 Index 33 Conclusion
Introduction Low Luxury does not write for the luxury consumer, writing advice, directing taste. Rather the zine aims to show the distinct types of luxury on offer, and the differences the brands provide in terms of the lifestyle they are offering, identity, aesthetic and ethics. This zine is for those wanting to know some of the choices on offer. The two chief brands that will be analyzed in this issue are Louis Vuitton and Gieves & Hawkes. Both are motivated by very different traditions, and capture different clients as youâ€™ll see. One suggests the height of success and appeals to the aspirant and young. The other is highly traditional, based on firm convictions yet forced to adapt to a changing world of emerging markets. Hopefully this will provide you with a clear understanding of who wants what and why.
Luxury Data Having endured several years of economic difficulty, North Americans and Europeans who could afford luxury indulged that appetite. More people of average means engaged with luxury brands, purchasing an affordable item, if possible. And luxury brands continued to enjoy healthy sales in China and other fast growing markets with expanding middle classes. Increased urbanization also contrbuted to the demand for luxury. And in both developed and developing markets, luxury increasingly was less about ‘bling’ and more about appreciating craftsmanship and sharing the pleasure.
Consumers focused less on collecting luxury labels and more on creating a unique personal look that often mixed luxury brands with more affordable options. Meanwhile, luxury brands continued to struggle to reach the right balance between proteting the exclusivity that to an extent defines luxury, and making the brand experience accessible to a wider audience. In its determination to reject a takeover by LVMH, Hermes reflected all the major characteristics that are traditionally associated with luxury: heritage, craftmanship, elite access and strong emotional appeal. Hermes’ operating income increased 32.5% to €885.2 million ($1.2 billion) on sales growth of 18.3% to €2.8 billion ($3.8 billion). The result strong performances in most regions, led by Asia (excluding Japan), which was up by 29% and the US, up 26%. Even in economically stressed Europe, Hermes sales grew by 16%. In contrast, Japan’s sales were flat, suggesting that economic problems compounded by the tsunami and nuclear disaster impacted the appetite for luxury. In a similar way, Rolex and Prada emphasized the exclusivity of their brands.
Key 1 Vuitton 2 Hermes 3 Rolex 4 Chanel 5 Gucci 6 Prada 7 Cartier 8 Hennesy 9 Moet 10 Burberry
Brand Value $M
4-5,000 5-7,000 7-25,000
-14- -2 7-21 36-61
7 8 9 10 Brand Momentum
Brand Value Change %
Prada owns the Prada, Miu Miu, Churchâ€™s Shoes and Car Shoe luxury brands. Sales of their brands increased by over 21% through the first half of 2011, driven by a 35% spike in Asia with strong growth in North America and Europe. 3
Luxury From the Latin, luxuria meaning abundance.
1611 Luxuriance 1633 Habitual use of what is choice or costly, whether food, dress, furniture or appliances
1704 Sumptuous and exquisite food or surroundings 1715 Refined and intense enjoyment 1780 Something which conduces to enjoyment over and above the necessaries of
life. Hence, now, something which is desirable but not indispensable
1812 Lasciviousness, lust 2013 The state of great comfort and extravagent living
Luxury Goods Luxury goods are products and services that are not considered essential and are associated with affluence. In economics, a luxury good is a good for which demand increases more than proportionally as income rises, and is a contrast to a â€œnecessity goodâ€? for which demand increases proportionally less than income.
Luxury Brands A luxury brand is a brand for which a majority of its products are luxury goods. It may also include certain brands whose names are associated with luxury, high price, or high quality, though few, if any, of their goods are currently considered luxury goods. Luxury brands are regarded as images in the minds of consumers that comprise associations about a high level of price, quality, aesthetics, rarity, extraordinariness and a high degree of non-functional associations.
The Aspirationalist This customer is new to the game and would probably only own a few items but would aim to buy more in the future perhaps when their salary increases or as they become more familiar with the brand.
The Elitist This customer is extrermely quality orientated. If they are paying high prices, then they exect their purchases to last. Detail is a must, handmade even better.
The Exhibitionist This customers is all about the lifestyle promoted by the brand. They are enticed by the luxury persona as well as the visuals of the products. They love luxury and they want to share that with the world.
The Loyalist This customer knows their brand inside out and from the timeless garments to the forgettable rebrands will continue to buy their products due to sentimental reasons, rapport, quality, etc.
Luxury Mass Customisation & A Digital Future
London, United Kingdom: Once upon a time, luxury goods makers delivered individualised products to customers based on the buyer’s personal preferences, tastes and budget. It was a process that often involved a series of face-to-face interactions between individual clients and the skilled artisans who would craft the goods. But as mass production began to replace craft production as the dominant form of economic activity, the voice of the individual customer was mostly removed from the equation at all but the highest levels of the product pyramid. Indeed, Henry Ford, who is credited with inventing assembly line production, once said:
But today, the rise of a new mode of production called “mass customisation” promises to restore individuality to the product design process. In a recent report entitled “Mass Customisation is (Finally) the Future of Products’, bifurcates the product experience of customers into two stages. First, the customer participates in design by making choices around particular features. Second, the manufacturer produces a unique built-to-order product to deliver to the customer.” For the luxury fashion industry, this represents a significant opportunity. “People are tired of putting up with the same thing being made en masse for the masses- this is particularly important for fashion where everybody is unique.” Joseph Pine told BoF. Indeed, when considered in the context of widespread sizing unreliability- nicely documented in a New York Times piece entitled “One Size Fits Nobody” - mass customisation extends the promise of clothing that’s perfectly designed to fit the individual, at price points that are accessible to consumers who could never afford bespoke clothing. In recent seasons, luxury fashion brands have launched customisation platforms like Louis Vuitton’s Mon Monogram, which lets consumers add personal initials and colours to the brand’s bags, and Prada Customize, which lets people add personal lettering to bags.
ny customer can have a car painted any colour that he wants so long as it is black.
According to a new survey of more then 100 marketers at major global luxury brands, marketers plan to increase digital media spend significantly in 2013. The survey, which was put together and distributed by Luxury Interactive and Shoplgniter, shows 85% of luxury brand marketers will increase their digital spend an 72% will increase their social media marketing spend. With more affluent consumers flocking to social media, smartphones, and tablets, luxury marketers are commiting more funds to digital marketing then ever before. The increases represent growth over 2011, with 80% of respondents reporting that 2012 digital marketing spend exceeded 2011, and 77% reporing more budget was spent on social media marketing in 2012 then 2011.
All over the world, Savile Row stands for the very best in menâ€™s tailoring and so it is fitting that Gieves & Hawkes should be â€˜No.1 Savile Rowâ€™, a remarkable address. In a Georgian building at the head of Savile Row stands the majestic construction that is No.1, home to Gieves & Hawkes. Sartorial artisans have occupied this building for nearly a century and it is just that which makes Gieves & Hawkes internationally recognised as purveyors of quintessential English style. Well established as the ultimate emporium for English sartorial dressing, the Gieves & Hawkes flagship continues to stand at No 1 Savile Row housing bespoke workrooms and military archives. No 1 heads a strong UK retail network of 14 stores and concessions and an e-commerce site. The distribution of Gieves & Hawkes also continues to expand with nearly 100 fine stores concessions in Hong Kong, China and Taiwan. Gieves and Hawkes exhibit all the characteristics of perfect craftsmanship and quality, providing luxury that lasts a lifetime. Immortalising the craft of classic tailoring through bespoke services for a worldwide audience, Gieves & Hawkes provide a unique and unparalleled service.
Gieves & Hawkes
No.1 Savile Row Trinity is paying £32.5m up front and will pay upto a further £60m over the following 18 years depending on how the Chinese branches perform. It promised, however, to “enhance” and expand its British business, which consists of 14 outlets and a workshop in the basement of Savile Row. “This is the Mecca of menswear”, says Sunny Wong, managing director of Trinity, which already owns more then 100 Gieves & Hawkes branded stores in South-East Asia. “ The bespoke reputation is second to none.” Speaking in Gieves’ luxurious bespoke fitting room on Savile Row, Mr Wong says the primary focus will be on restoring the British side to profitability and looking at promoting the brand in British Commonwealth countries and Japan, which “all have a lot of followers of British fashion and royalty.” Gieves & Hawkes holds three royal warrants as suppliers to the Queen, Duke of Edinburgh and the Prince of Wales. However, he stresses that a turnaround will not alter the identity of a brand whose appeal rests on its heritage with the many uniforms displayed around its Savile Row store as a reminder of its origins as a military tailor. Change is the one stable fact.
Located at No.1 Savile Row, Gieves & Hawkes is considered a part of the more niche side of the luxury goods market. So during the recession it was no surprise that the company fell short and failed to make an annual profit. This has been the case since 2005. This downfall wasn’t helped by their attempt at winning over a younger, more fashionable shopper. However, the success of the brand in China is thriving and led to the sale of the comapny to Hong Kong group, Trinity. Consequently, there was a marked shift from an aesthetic at once traditional and ‘niche’ (still catering as it always has for the welldressed naval admiral) to the aspirant young shopper. Now it just happens that a ‘quintessentially’ English company happens to be based in Hong Kong. Trinity, listed on the Hong Kong Stock Exchange, already operates more then 100 Gieves & Hawkes stores across China under license. The Hong Kong group plans to expand the quintessential British label further in China where there is an increasing appetite for European luxury brands. It is understood that Gieves & Hawkes bespoke suits, which began at £2,500 and are currently only available in the UK, will be introduced into China.
The Weekday Survival Kit Morning medication in the form of an espresso, followed by extra doses after midday. Leather balm to keep his bag intact. Three moleskine notebooks, for business, pleasure and other general thoughts. Beauty products for further refinement. A top quality ink pen with plenty of extra cartridges. A red biro to contrast. Emergency string for emergency parcels.
The Weekend Survival Kit Shakespeare for Sunday. With a magnifying glass at hand incase of eye strain. Both tea bags and loose leaf tea throughout the two days, for variation. The trusty teaspoon to stir the tea with. Rich tea biscuits for those proloned periods of e-mail responding. Fig jam to accompany weekend breakfast. A pipe and lighter for long walks and an ornate scarf to keep warm in the process.
The mission of the LVMH group is to represent the most refined qualities of Western “Art de Vivre” around the world. LVMH must continue to be synonymous with body elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy. In view of this mission, five priorities reflect the fundamental values shared by all Group stakeholders: Be creative and innovative Aim for product excellence Bolster the image of our brands with passionate determination Act as entrepreneurs Strive to be the best in all we do A dream. An icon. A masterpiece. Each Louis Vuitton product is the embodiment of uncomprimising quality and exceptional craftmanship. From the famous Monogram pattern to the astonishing Louis Vuitton diamond cut, the Maison enchants the world with its unique creations since 1854. Today, we invite you to take a journey through a world of luxury, inventiveness and excellence: the world of Louis Vuitton’s savoir-faire.
Vuitton Lives On Louis Vuitton, one of the world’s largest fashion brands, has been in business for 155 years. With over 426 stores in 60 countries, including four stores in New Zealand, it is alive and very well. For Louis Vuitton’s chairman and CEO Yves Carcelle says respecting the history of the brand is integral: “Mr Louis Vuitton himself invented the first modern trunks (bags) in the middle of the 19th century... We still manufacture and travel in class”, he says. Even the monogrammed canvas has its past. Still used and coveted it was designed by Louis Vuitton’s son in 1896. But, a brand cannot rely on tradition alone. Carcelle has been tasked with modernising the brand, turning it into the most profitable of its kind globally. “You have to bring creativity and modernity, which we try to do all the time”, he says. A key part of the process was the arrival of American designer Marc Jacobs 1997 who became Louis Vuitton’s artistic director. Carcelle says Jacobs kept with the values of the brand, successfully mixing old and new.
While Carcelle acknowledges that the global economic climate is in crisis, he says elite brands such as Louis Vuitton are more about desire and emotion than money. “During this period of crisis, people cannot stop treating themselves, we are one day before Valentine’s day, we have to celebrate this sort of thing”, he says. He also believes that during a recession period like the one the world is currently experiencing, people discover the real value of luxury brands. Quality materials and craft stand out.
Art & Luxury Have there ever actually been better bedfellows than art and luxury? Both of them are based on the sale of objects that have little inherent use or value, but which retail at high prices. For both, branding is vital. They both rely on the wealth of the worldâ€™s richest to propel profits at the top end, and on the middle classes for their bread-and-butter business. Louis Vuitton set up shop inside public institutions including the Los Angeles Museum of Contemporary Art and the Brooklyn Museum as part of an exhibition dedicated to the artist Takashi Murakami, whose previous collaboration with the brand resulted in a successful range of very expensive handbags. Money making became a form of art.
The excess had not abated with the recession because there are more super-rich than ever, and they have more money. The distribution of wealth has shifted upwards since 2008 the number of high-net-worth individuals (defined as those who have at least $1m in divestible assets) reached its highest level last year of 11 million people, holding an estimated $42 trillion, according to a report by Capgemini/RBC Wealth Management. It was a smart move collaborating with Takashi Murakami. He is an internationaly prolific
contemporary Japanese artist working in fine arts media as well as what is conventionally considered commercial media. Known for blurring the line between high and low arts he coined the term superflat, which describes both the aesthetic characteristics of the Japanese artistic tradition and the nature of post- war Japanese culture and society. Superflat is also used as a moniker to describe Murakamiâ€™s own artistic style and that of other Japanese artists he has influenced.
Murakami transfromed Louis Vuitton’s classic (though dowdy) brown-and-gold bags into a multihued riot of LV logos and saucer-shape, cartoon-eye designs on a field of shocking bright white. He viewed this fashion foray as a perfect godhead of the nation’s real estate religon; the worship of luxury brands. Indeed, Japan accounts for one third of the company’s international sales.
The Weekday Survival Kit Espresso to begin each day and extra coffee for those particularly busy days. Keys for the office, car and home. Healthy snack food in the form of raisins and satsumas, especially handy for the days when lucnh is skipped. Plain earrings and watch to match every outfit. Eight hour cream for the days that never end. Chewing gum to follow each meal. A list of mundane tasks.
The Weekend Survival Kit Passport for travel. Classic red nail varnish and file for the journey. Statement silver hoops and eyeliner for a statement weekend. A key for the hotel suite. Sunglasses for the bright days abroard. Tattinger for the brightness to continue throughout the evening. Paracetamol for the less bright morning after. Spare change and spare perfume kept in the handbag throughout.
Index All of the disposable photos and scanned images featured in this issue of low luxury were created by Luella Del Basso, along with the layout and text. Any figures, facts and quotes used from existing articles are listed opposite. Along with any additional imagery used.
Moet & Chandon Bottle - http://cmgtcontent.ahold.com Hennessy Bottle - http://www.ampmdirect.co.uk Burberry Handbag - http://www.massaboutique.com Silver Cartier Watch - http://luxuryspot.watchesonnet.com Rolex Watch - http://www.crownandcaliber.com Chanel Handbag - http://i2.farfetch.com Gucci Handbag - http://www.aabagsok.com Hermes Handbag - http://vanrads.com Louis Vuitton Luggage Bag - http://img.diytrade.com Prada Handbag - http://www.laprendo.com
Blue Silk Label - http://www.styleforum.net Inside Label - http://www.malfordoflondon.com Cream and Navy Gieves Label - http://forums.ebay.com Green Gieves Label - http://arlissrenwick.com/?p=1245 Black Label on Brown Silk Tweed - http://www.styleforum.net Black Label with Red Font - http://www.styleforum.net Modern Black Labels - http://studiosmall.com 43 Inch Label - http://wholesale-help.com
Gieves & Hawkes
Gieves & Hawkes Ship and Crown Logo - http://studiosmall.com Traditional Gieves & Hawkes Logo - http://studiosmall.com
Louis Vuitton Driping Logos - http://www.mindsdesigns.net Portrait of Takashi Murakami - http://qmaevents.files.wordpress.com Takasi Murakami Flower Print - http://www.artspace.com
Articles Gieves & Hawkes Mission Statement - http://discover.gievesandhawkes.com Louis Vuitton Mission Statement - http://www.louisvuitton.co.uk Luxury Data - http://www.millwardbrown.com http://www.businessoffashion.com Luxury Mass Customisation - http://www.businessoffashion.com www.shopigniter.com No.1 Savile Row - http://www.ft.com Vuitton Lives On - http://tvnz.co.nz Art & Luxury - http://www.theartnewspaper.com http://www.time.com
In this issue, luxury was broken down into its component parts. We gave you the information on what is happening within this sector at present; where are these luxury brands heading? What’s their future? We went for contrast in our choice of brands. Louis Vuitton is ever-evolving, currently paying particular attention to contemporary art and the environmet, wheresas the sturdy and traditional Gieves & Hawkes emphasises the importance of craftmanship over the easy consumption of mass production. So, where’s luxury bound? We don’t really know to be honest. The one thing that’s certain is that particular things just work whether it be a monogram print, or craftsmenship and discreet branding. However, here were two examples distinct and unique but both in pursuit of a new luxury, a new idea. As long as there are people there’ll always be luxury, and we’ll be there to take the snapshot of its latest form.
Low Luxury no.1