LUXURY PRESS DIGEST 16TH APRIL
Luxury Fashion, Retail & Consumer Goods
BURBERRY MULLS CHINA PRICE CUTS WITH EYE ON HONG KONG
Jing Daily reports that after Chanel’s recent dramatic move to lower its China prices to combat China’s grey market, a Hong Kong sales decline for Burberry makes it the latest brand to consider a similar policy. The consideration highlights the fact that although high mainland luxury prices are often attributed to China’s luxury slowdown, Hong Kong also faces price competition from neighbouring countries and factors big into brands’ price cut policies.
THE LUXURY VISIONARIES 2015
In a new annual portfolio, Telegraph Luxury selects the masterminds and aesthetes resetting the luxury agenda.
LUXURY STORES IN AN EFFORT TO REDUCE ENERGY COSTS
Wall Street Journal reports that Bulgari’s brightly lit store on Rome’s Via Condotti cut its energy use by 50 per cent in 2014 after installing light-emitting diode, or LED, light bulbs. LEDs are turning out to be a big deal for these brands’ overseer, the luxury conglomerate LVMH, which says 70 per cent of its energy usage goes into its stores, not its factories, shipping or other activities. LVMH’s stores occupy nearly 11 million square feet of retail space around the globe, selling everything from Louis Vuitton handbags to Moët & Chandon champagnes.
IS MICHAEL KORS' POPULARITY GOING TO BE ITS DOWNFALL?
Express reports that Michael Kors bags are everywhere. It's almost impossible to walk through any British city without spotting at least one of the chic leather totes and the brand's surge in popularity hasn't been limited to the UK. Sales of the luxury brand across North America, Japan and Europe have tripled in the last three years. But in February the designer reported a slowdown in sales at the end of last year and shares in the company have recently dropped. Critics fear that its surge in popularity could be what sinks the company.
7 PRESSURES AND EFFECTS ON GLOBAL LUXURY MARKET
Think Advisor reports that the affluent are still spending on high-end products. But what they buy, how they buy and why they buy are all changing, affecting different sectors within the market, and for a range of reasons. The very factors driving consumption down in one area may also be fuelling growth elsewhere, and the old adage “follow the money” may never have been truer—or more apt. Consumption in the luxury market is changing. Here’s a look at some of the pressures on the luxury goods sector, and how some of them are playing out:
Luxury Travel, Culture & Leisure
NEW HONG KONG TRAVEL POLICIES SEEN HURTING LUXURY RETAILERS
CNBC reports that restrictions on mainland Chinese visitors to Hong Kong have caught Wall Street's attention, with worries growing that the rules could hurt luxury merchants. Announced over the weekend, the new policy limits visitors from the neighbouring city of Shenzhen to one visit per week to Hong Kong, rather than multiple trips. Goldman Sachs estimated an overall 2 per cent decline in Hong Kong retail sales as a result of the restrictions, with cosmetic firms hit the most.