Luxury 2016: The Year of the Struggle

Categories:Other Brands

According to the Chinese calendar, 2016 is the year of the monkey. Well it also appears that for the luxury market, it’s the year of the struggle.

We wrote about Hermes’s updated financial projections, but now we have some more numbers from across the industry for comparison. While Hermes didn’t get a lot of credit for its sluggish growth projections, seeing these other numbers makes them look downright fantastic. In case you haven’t noticed yet…2016 is going to be another hugely challenging year for luxury.

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Burberry recently released updated financials, and they’re in serious trouble. Comparable sales, a measure excluding fluctuations from store openings and closings, was down over 2% over the past six months and the company projects 2017 wholesale revenue to tumble a whopping 10%! Their shares in turn took a beating. As we’ve continued to report here, the company is blaming the usual culprits: weakening demand from Hong Kong and China and currency fluctuations in Europe.

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We’ve also heard from LVMH and things are equally bad. First quarter revenue growth failed to meet analyst expectations and sales in the fashion and luggage verticals were totally flat.

Not to be outdone, Prada reported a whopping 26.6% decline in annual profit, and comparable sales at Gucci for the first quarter tumbled 8%.

Gucci is owned by luxury conglomerate Kering who seems to be taking a beating from all sides. First quarter sales for sister-label Bottega Veneta fell almost 8% as well. Obviously, share prices across the sector are down considerably through the first quarter.

Executive after executive pins the industry’s decline on either the challenges of operating in a global economy still largely stagnant since the financial crisis or on China. While these are surely unavoidable issues, we can’t but start to think the problem might be deeper than just external economic factors.

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It seems like the entire category is being redefined – luxury means something radically different to the consumer in today’s world than it did when Coco Chanel was galavanting through Europe. Social media has altered the very psychology of making a high-end retail purchase. Global travel destinations are over saturated with all the same retailers. The runway-production cycle has been turned upside down.

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The list goes on and on…join us on BopTalk where we continue to discuss the depth of the industry’s problems and how these developments might affect the consumer. Are new pricing schemes around the corner? Is the future for sales growth on the Internet?

Tags: the of Year Luxury 2016: Struggle

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Mother’s Day 2016: For The Mum Who Adores/Likes/Needs/Wants…

Categories:Other Brands

IMAGE: BAGAHOLICBOY

Yes, Mother’s Day is almost upon us, and for everyone’s who ready, #highfive.

For everyone else, good luck and start reading this post. It’s going to be a long one, but at least I can safely say you’ll have enough options to mull over before deciding which would be the best gift for Mummy Dearest.

And because it’s going to be a long post (ok, the truth is I’m still finalising all the gift options), here’s the first one, For the Mum Who Adores Anything Cute. Which I’ll then follow up in the coming days with For The Mum Who Wants A Tiny Number (Bag), For The Mum Who Needs A Workhorse Wallet, For The Mum Who Likes Her Bling and of course, For The Mum Who Already Has Everything Else.

Without further ado, here’s today’s post. Enjoy.
For the Mum Who Adores Anything Cute (look up)
Yes, Mummy might not be young anymore, but she’s young at heart and you know, has a good sense of humour too. And because which mother doesn’t love tea or remember the days when Wrigley’s chewing gum was freely available in Singapore, the first two picks are both clutches, the first from Kate Spade New York, their new Down The Rabbit Hole English Tea Clutch (SGD570, buy online via Kate Spade) that’s mostly metallic PVC with 14K gold-plated hardware. And then there’s Anya Hindmarch’sWrigley’s Spearmint Gum clutch that’s now 60% off over at THEOUTNET. Was USD1595, now USD638, which also makes it a good deal, no?

Yes, this is still gift ideas for the Mum who loves anything cute, and nothing can be cuter than Fendi’s bugged-eyed wallet. Measuring 19 cm by 12 cm, it’s basically a wallet-on-chain with enough card slots, zip compartment, patch pockets and a long metal chain that’s actually the sling (USD1102, buy online via Net-A-Porter). Then there’s the Powerpuff Girls iPhone cases by Moschino. Yes I know, too cute, right? Still, it’s guaranteed to bring a smile to most anyone’s face, and beside the one in Blue you see above, Moschino Paragon also has the ones in Green, in both iPhone6 andiPhone6Plus sizes. And at SGD90 each, you really can’t complain.

And for something really affordable, the cutest post-its I’ve ever seen, the EUR14 a box Paperways sticky notes that you can get from Colette. If you’re really getting the cheap post-its, make sure you get a nice card too, like this one from The Paper Bunny which costs just SGD5.90.

Tags: For the Day Mother’s 2016: Mum Who Adores/Likes/Needs/Wants…

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