💎Brilliant Cut No. 17:
Audi's EV Charging Lounge, Mondavi NFT, Influencer Marketing In The Metaverse, Hermés Pop-Up Gym, BCG Talks Luxury and Gen Z, Watch Brands Fixated on China, Gucci x The North Face, and More
Welcome to this edition of Brilliant Cut, a free monthly newsletter that helps you smartly navigate the most important luxury marketing stories and insights.
Issue #17 | January 3, 2022
Prada sees second-hand fashion as opportunity, weighs partnerships
(Reuters) Italian fashion group Prada sees opportunity in the booming second-hand fashion sector which it can develop both in-house and through partnerships, marketing chief and heir designate Lorenzo Bertelli. Read more
Top 100 luxury companies generated $252 billion in 2020
(Fashion Network) 2020 was a difficult year for a broad range of sectors and the luxury industry was no exception. Indeed, Deloitte’s recently published Global Powers of Luxury Goods 2021 report reveals that the revenue generated by the world’s top 100 luxury companies fell from $281 billion in 2019 to $252 billion last year. Read more
Chanel is aiming for Hermes status with handbag price hikes
(Bloomberg) Chanel has raised global prices on some of its classic handbags by almost two-thirds since the end of 2019. A spokeswoman said the hikes are in response to unspecified exchange-rate fluctuations, changes in production costs and to ensure its handbags cost roughly the same around the world. Read more
Audi unveils the world’s first luxury lounge for EV charging
(Robb Report) Audi wants to make the experience of charging your EV as enjoyable as possible. The luxury marque opened what it’s calling the world’s first charging hub in its home country of Germany. It’s not like a gas station for EVs, though. Instead, the reservation-only hub features a well-appointed lounge you can relax in while waiting for your battery to top up. Read more
Casa Fendi: ‘It says Fendi, with a whisper’
(Financial Times) Autumn in Rome, and there’s a buzz at Fendi HQ where the press has gathered for the unveiling of a new collection by Fendi Casa, the fashion maison’s furniture and home-accessories division. Read more
Clinique’s first NFT ties to loyalty and products as uses expand
(Vogue Business) Estée Lauder-owned Clinique joins a handful of other brands diversifying non-fungible tokens, from being collectors’ items to including loyalty rewards and physical product perks. Read more
NFTs are making their way into physical retail
(Glossy) NFTs have been embraced by fashion and beauty in 2021, and now they’re making their way into physical stores. Read more
When purchasing a real estate NFT, what are you really buying?
(Mansion Global) As cryptocurrency has exploded into the mainstream, luxury real estate has felt the effects, with developers looking to grab headlines by listing properties for Bitcoin and other digital currencies, and buyers looking to convert some of their valuable digital assets into real property. Read more
Live streams revive ‘shoppertainment’ for a luxury consumer
(Barron's Penta) From high-end cosmetics and cigars to Saks Fifth Avenue, online programming is allowing stores to interact with customers in an era of extreme home shopping. Read more
Robert Mondavi goes NFT with Bernardaud bottles
(Wine Spectator) California’s Robert Mondavi Winery has partnered with French porcelain producer Maison Bernardaud on three 2019 Cabernet reds from Napa Valley, and you’ll only be able to get a bottle via non-fungible token. Read more
Ralph Lauren debuting digital fashion line on Roblox
(Fortune) Ralph Lauren Corp. is debuting its first digital fashion line in Roblox Corp.’s virtual world, becoming the latest apparel maker to try building brand awareness in the metaverse. Read more
Balenciaga steps into the metaverse with new business unit
(Hypebeast) Balenciaga is expanding its digital fashion offerings with the announcement of its forthcoming business unit dedicated to the metaverse. Read more
What influencer marketing looks like in the metaverse
(Vogue Business) A broad range of fashion brands, including Prada, Puma and Yoox, are creating avatars to stand alongside the likes of Shudu and Lil Miquela. Their common goal? To be purpose-driven and community-led. Read more
Decentraland, luxury marketplace UNXD to host metaverse fashion week
(CoinDesk) Luxury marketplace UNXD, which is built on the Polygon network, and Decentraland, a virtual reality platform built on the Ethereum blockchain, plan to offer a metaverse fashion week with catwalk shows, pop up shops and afterparties in March. Read more
Bergdorf Goodman’s holiday campaign is inspired by Wes Anderson
(Vanity Fair) Wes Anderson is the inspiration behind Bergdorf Goodman’s new holiday campaign, The Present Moment. Created in partnership with The French Dispatch, Anderson’s latest movie starring Timothée Chalamet, Benicio Del Toro, Frances McDormand, Bill Murray, and Tilda Swinton, the director’s signature aesthetic is reimagined in the eyes of the luxury retailer. Read more
Adventures in whisky: immersive experience at reimagined Glenmorangie House
(Wallpaper) One of the world’s great drinks, single malt whisky, and the places where it is made, are particularly well endowed with heritage, culture, and beautiful surroundings. Glenmorangie Distillery, deep in the rugged Highlands of Scotland, has channelled these attributes towards creating an immersive whisky experience that offers the chance to appreciate every part of the whisky story at its source. Read more
You can vogue with hats and do yoga with scarves at the Hermés pop-up gym
(Print) Have you ever wanted your gym-going experience to be more luxurious? No, of course not, but that hasn’t stopped the lovers of all things lavish at Hermés from designing a traveling branded gym through their HermèsFit activation. Read more
Veuve Clicquot creative makers spread hope and optimism for 2022
(Wallpaper) Veuve Clicquot rounds off 2021 as it began, with a gathering of six creative talents writing the second chapter of the champagne Maison’s ‘Inspiration in Bloom Series.’ Read more
High-net-worth families projected to transfer $18.3T of collective wealth by 2030
(Barron's Penta) High-net-worth individuals and their families, those with US$5 million or more in net worth, are expected to transfer a combined US$18.2 trillion by 2030, according to a Wealth-X report. Read more
McKinsey State of Fashion 2022: An uneven recovery and new frontiers
(McKinsey) According to McKinsey's "The State of Fashion 2022" report, the fashion industry can return to growth as changing category landscapes, new digital frontiers, and advances in sustainability continue to present opportunities. Read more
Boston Consulting Group discusses luxury and the young consumer
(WWD via Yahoo) Data clearly shows that Generation Z and Millennials differ from other generational cohorts on a variety of consumer behavior barometers — from expecting luxury brands and merchants to offer flexible payment options and to have sustainable practices in place to brands leading on e-commerce digitalization and with personalization. Read more
Chanel and Prada are Gen-Z's most searched brands in 2021
(Hypebae) Fashionphile releases its 2021 Ultra-Luxury Resale Report today and in spite of the ups and downs of 2021, the luxury market is thriving. With creative directors’ untimely departures or the economic strain caused by COVID-19, the demand for designer remains strong. Read more
Global art auction sales hit a record $6.5 billion in 2021
(Barron's Penta) Auction sales of fine art have totaled US$6.5 billion in 2021, surpassing the previous peak in 2018, according to a report from ArtTactic, a London-based art market research firm. Read more
How luxury Chinese perfumes are riding the ‘China cool’ and C-beauty
(South China Morning Post) Brands such as To Summer, Scentooze, and Scent Library appeal to discerning Chinese customers increasingly looking for high-end, China-made lifestyle products. Read more
How luxury’s top CEOs tackled China in 2021
(Jing Daily) Pandemic woes bled into 2021 as new COVID-19 variants cropped up and wreaked havoc on business. However, luxury brands were more prepared to weather the storm this time; with seasoned CEOs at the helm, they trudged their way through travel restrictions, supply chain disruptions, and ever-changing consumer trends. Read more
Despite risks, watch brands are fixated on China
(New York Times) For Swiss watchmakers preoccupied with growth — and let’s be honest, that is virtually all of them — China is the relationship they cannot live without. Read more
Jing Daily’s weekly roundup of notable luxury social media campaigns in China:
📲 December 2, 2021 // December 10, 2021 // December 17, 2021 // December 24, 2021
Gucci and The North Face team up for a punchy new collaboration
(Robb Report) Gucci and The North Face are back together once again for an unexpected second drop of their hype-worthy collaboration. The extensive 130-piece, cross-category collection for men and women comprises of ready-to-wear, soft accessories, luggage, and shoes, including many pieces like hiking boots, multi-pocketed backpacks, and insulated jackets that reinforce its outdoor purpose. Read more
Es Devlin collaborates with Chanel on monumental exhibition
(Wallpaper) Chanel No5 celebrated its 100th anniversary in 2021, and the brand has celebrated throughout the year with a variety of campaigns, events, and launches. The most recent, and certainly one of the most exciting, happenings it has staged is a new monumental labyrinth designed by artist and designer Es Devlin. Read more
Patek Philippe’s Nautilus watch returns in Tiffany blue
(New York Times) Most watch lovers would agree that owning a timepiece by Patek Philippe means you have arrived in the horological big leagues. But, for extra cachet, what if the face of the watch featured the retailer’s name — say, Tiffany & Company — and was the color of its signature robin’s egg blue? Read more
Audemars Piguet and Whitepod Hotel teamed up to create a luxury suite ‘pod’ in the Swiss Alps
(Robb Report) Given Audemars Piguet’s fastidious eye for design, it’s likely to create a very impressive hotel suite. So concluded Whitepod, an idyllic eco-resort in the Swiss Alps, which recently enlisted the Swiss watchmaker to help develop a new nature-focused oasis for its guests. Read more
Nordstrom and Watchfinder partner for new take on secondhand luxury
(InsideHook) Move over, StockX … there’s a new reseller in town, and her name is Nordstrom. The long-standing retail giant is diving into the pre-owned watch pool — in collaboration with Watcherfinder & Co., one of the preeminent pre-owned timepiece marketplaces — with a splash, announcing both digital and physical selling presences, the later hosted by their flagship Seattle location. Read more
Elle magazine says it will ban fur from its publications worldwide
(NPR) Lifestyle and fashion magazine ELLE announced it is banning fur from all pages of its publications in a move to support animal welfare and reflect changing tastes. Read more
Loro Piana can trace every step of its journey from Mongolia to Madison Avenue
(New York Times) Loro Piana, the luxury brand known for its plush, understated knits that look as if they have been woven from liquidized bank notes, has embarked on a program that will allow customers to trace every step of production of one of its baby cashmere sweaters from goat to store. Read more
Burberry launches rental and resale with My Wardrobe HQ
(Vogue Business) Burberry has added to its circular fashion drive, with plans to launch rental and resale via a new partnership with My Wardrobe HQ. Rentals including trench coats, handbags and scarves will be available from £41 a week. Read more
The Luxury Item is my podcast on the business of luxury. Listen to the last four episodes where I interview some of today’s leaders in luxury:
👜 Ulrik Garde Due, president and CEO of American luxury leather goods brand Mark Cross, discusses taking the 176-year-old ‘sleeping beauty’ heritage brand into the future. Listen: Apple / Spotify / YouTube
🏎️ Gareth Dunsmore, chief marketing officer of British luxury supercar manufacturer McLaren Automotive, talks about how the brand uniquely positions itself to a wide range of wealthy customers. Listen: Apple / Spotify / YouTube
🌺 Didier and Sophie Guillon, the husband & wife team leading the Swiss luxury beauty brand Valmont, discuss how its “art meets beauty” positioning drives the business. Listen: Apple / Spotify / YouTube
🧥 Chloe Mendel, co-founder and creative director at sustainable luxury faux-fur brand Maison Atia discusses reinventing the market before the fashion giants and growing a luxury brand. Listen: Apple / Spotify / YouTube
✨Mixed Gems: Featured writers on luxury, fashion, and culture
Meet the Rolex superheroes who are saving the planet
Rituparna Som from Vogue India writes that Rolex has been supporting projects to improve the planet via the Rolex Awards for 45 years, reminding the world that a successful luxury watchmaker is one that does much more than make great watches. Read it here
There has never been a more competitive time for luxury than now
Mario Ortelli, Luxury Society columnist and managing partner at Ortelli & Co says the growing demands from luxury’s ever-evolving consumers means there has never been a more competitive time for brands to remain relevant. Read it here
Why luxury brands will keep their pandemic playbook
Bloomberg’s Jeannette Neumann writes from e-commerce expansion to a focus on neighborhood store, the way luxury bands evolved to cope with Covid look increasingly permanent. Read it here
Thank you for reading this issue. - Scott
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