Ged Carroll

Category: luxury | 奢華 | 사치 | 贅沢

Over the space of 20 years, luxury changed enormously. The Japanese had been a set of new consumers for luxury, but in terms of numbers they hadn’t eclipsed the US as the biggest market for luxury.

China’s ascent into the WTO (World Trade Organisation) made a lot of business people and politicians a lot richer. China challenged the US in terms of luxury market size. On their rise, Chinese consumers changed a lot in their sophistication as they educated themselves on luxury consumption.

These new consumers picked up new traits such as wine drinking. This also meant that luxury goods became new asset classes as Chinese money looked to acquire only the best. Chinese culture in turn impacted luxury design. Chinese new year became more important than Christmas.

Then there was the second generation money. Young rather than old consumers. Consumers who were looking for something less formal, either because they didn’t wear anything but streetwear or they worked in the creative classes rather than the traditional professions and high finance.

The industry had traditionally avoided rap artists and R&B singers, now Jay Z and Beyonce are the face of Tiffanys and Fendi had collaborated with Rihanna.

They no longer wanted to have to wear a jacket and tie to have afternoon tea at the Mandarin. They took an eclectic look more attuned to the Buffalo Collective than Vogue Italia.

You had hybridisation with the street to create a new category of luxe streetwear in a way that also owes a debt to football casual terrace wear and the pain.

Now you have Zegna badge engineering approach shoes from alpine brand La Sportiva and Prada has done a similar thing with adidas’ iconic Stan Smith tennis shoes. Balenciaga with their Speed Sock looks like a mix between Nike’s flyknit football boots and the Nike Footscape sole.

As I have written elsewhere on this blog:

Luxury has traditionally reflected status. Goods of a superior nature that the ‘wrong sort’ of people would never be able to afford. Luxury then became a symbol that you’d made it. In Asian markets, particularly China, luxury became a tool. People gifted luxury products to make relationships work better. It also signified that you are the kind of successful business person that partners could trust. You started to see factory managers with Gucci man bags and premium golfwear to signal their success. Then when the scions of these business people and figures in authority were adults, luxury has become about premium self expression.

  • Marketing crisis

    Marketing crisis in competence and capability: Creative Business has a great leading article based on research conducted by The Marketing Society and McKinsey called Marketing in Crisis.

    When you think about the marketing crisis, you also need to think about the people providing the feedback. Other board colleagues might have a stilted or inaccurate view of what marketing does. But at the very least there seems to be a marketing crisis in miscommunication.

    A second aspect of this marketing crisis report is to ask what’s in it for The Marketing Society and McKinsey. The Marketing Society would be looking to professionalise marketing and differentiate from the Chartered Institute of Marketing. McKinsey would look to deposition marketing teams so that it can sell additional services.

    Key takeaways from the report include:

    • Marketers are seen as creative but undisciplined
    • Marketers don’t understand their own businesses
    • In marketing led businesses such as FMCG (fast moving consumer goods), marketing is too important to be left to the marketers
    • Marketing attracts the wrong kind of people
    • Marketers are undisciplined
    • Marketers are not interested in the P&L

    So this also might explain many of the client horror stories that I hear from agency veterans in PR, advertising, design and branding.

    The Buy Buy Generation

    Young Japanese women are consumers with a high disposable income, publishers target them with ‘product porn’ style magazines focusing on luxury handbags, shoes and clothing. UK publishers are now looking to copy this format. What surprised me about this article is that it did not draw comparisions with the product porn gadget magazines targeted at young men in the UK like Stuff and T3.

    Anybody walking the streets of London will have realised young Japanese are the most stylish people on the planet and avid collectors of the latest thing. On a related note the British boutique with a Japanese name Oki Ni have teamed up with the Adidas vintage connection to do two cool exclusive versions of Adidas’ ‘Torsion Special lo’ trainers here and here. These were the ultimate ravers trainer when they originally came out in the early 1990’s, they fit like a glove, are light, good cushioning, came in a multitude of colours (my originals were predominantly purple) and have a sole that will grip to any warehouse floor.

  • Five star living

    Trendwatching is back with a pattern that they call five star living, where property developers and high-end resort or hotels sell a home away from home to the super dumb but loaded.

    They put a whole pile of luxury living brand experience about it, but what they are seeing is the window dressing not the trends in five star living. Five star hotels are capital intensive and unless you have high occupancy all the time, expensive.

    Apartment complexes can draw on the service aspects of five star hotels; but farm off a lot of the capital risk to apartment purchasers and still charge them for premium rate services. Five star living is about hotels hedging their bets in a post-September 11 world. I realise that this is a less romantic and stylish explanation of this trend, but its all about the money.

    Mandarin Oriental have built suites in their Hyde Park hotel which would be a great example of five star living. Luxury brands like Giorgio Armani have extended into interior design to try and capitalise on this trend in combination with luxury property developers. 

    You also have people like the Trump Organisation extending themselves from real estate into hotel services and tourism in the opposite direction with its golfing themed resorts. More five star living related content here.

    Apple spoof product lifecycle article which can be found here. Its funny because there are a lot of underlying themes which are close to the truth as consumers see it.

    Finally, the New York Times have got a great interactive presidential election guide that they are going to keep updated. So go to this link, have a play and bookmark it until November. Interactive data like live dashboards in business allow you better understand the data. It makes for shareable content and is sticky in nature. 

  • Rolex service centre

    Rolex service centre

    Friday, and my Palm PDA bleeped in that nagging sort of way that it does. I looked down and saw that it was time to get my watch serviced again at the Rolex service centre. I have the good fortune to have got a Rolex Submariner at a knockdown price off my old man some years ago before their prices went stupid. The watch is as old as I am and has weathered the adventures we have shared (including scuba diving, flyposting in sink hole estates, dj’ing in abandoned mills and dot.com client meetings) considerably better. Every three years it goes in for a service.

    The Rolex service centre in London had changed their location since last time, so after getting off at the wrong tube and then heading halfway across W1, I arrived at their new offices in St James’ Sq in a bit of a fluster. Talk about brand experience, their foyer is all sea green wavy patterned glass, dark green marble (all in the same colours as much of their packaging and website) and high quality woodwork, with a couple of lovely looking blonde receptionists; it looks every inch like the sitting room of a Bond villain’s hideaway.

    A reassuringly old man in a spotless white coat took my watch away. I will be interested to see how much work it needs in the next week or so. Seriously tempted to get it a companion with a 50th anniversary edition Submariner or a Seadweller, but that would be a bit materialistic… More related content here.

    Firefox up

    For some reason Safari, the zippy default browser on my Mac does not like the format buttons in Blogger, the online tool I use to write these musings. I have loaded up the latest iteration of Mozilla called Firefox as a back up. I am very impressed with its speed and relative lack of bugs. It beats seven bells out of Microsoft Explorer and Microsoft was withdrawn from the Mac marketplace for Internet browsers so a fast reliable alternative was required.

    Cufflinks & ‘The Game of Death’

    Cufflinks are men’s equivalents to alice bands (except for David Beckham) frivolous items of attire, there is no rhyme or reason for them but shirt makers insist that you use them so that they can skimp on buttons. I can find using them to be a right pain in backside. My one set of cufflinks were bought at a shop in the West End and feature a black and white hand and shoulders portrait of Bruce Lee (from The Game of Death publicity stills apparently). This struck me as a bit of an oddity unless that practicing kung fu is as time consuming and trying as doing up a set of cufflinks in a hurry. They are bit of a conversation piece and my friend Ian and I were talking about them. I complained that using cufflinks were a ‘challenge’ and he pointed out that cufflinks in his view were a way of preparing for the day. You cant do them efficiently unless you are at ease, rather than having your mind going in 20 directions at once. There you go, one man’s frivolous clothing item, another man’s zen pillar – you decide….