Can art boost sales for luxury brands?

For several months, FENDI‘s Palazzo della Civilita Italiana has been hosting an exhibition of works by the Italian artist Giuseppe Penone. But the Palazzo is not a gallery. Since 2015, it has been the headquarters of Fendi, the fashion brand. Fendi chief executive Pietro Beccari says artists must be free to work “without interference. Once you make the choice to choose one artist rather than the other, you have to go for it, otherwise you lose authenticity.”It is therefore vital, he adds, for companies to choose carefully artists who are [...]

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The challenges facing France’s luxury market

France was the world’s sixth largest economy in US$ terms in 2016 and its luxury goods market currently stands at number four in the world reaching just over US$22 billion behind the US, China and Japan. Although it avoided recession in the 2011-2016 period, its economic performance was anaemic and its luxury market is facing a number of headwinds. From November 2015 France was plagued by terrorist attacks, with incidents in Paris, Nice and other parts of the country shaking consumer confidence and deterring international visitor. The social context was also [...]

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U.S. department stores restructure business model

According to commercial real estate experts Cushman & Wakefield, across all sectors, 9,000 to 10,000 shops are expected to close down in 2017 in the USA, with another 13,000 closures forecast for 2018. The hardest-hit segment is that of department stores. They are struggling to adapt to changing consumer habits, and many of them are forced to streamline their organisations to stay afloat, further compounding their woes. Macy’s too has engaged in an aggressive store-closure policy, with a view to save up to $600 million in costs. The department store, [...]

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Luxury fashion brands are facing the challenge of adapting to a more casual style

The luxury market is beginning to slow down, forcing the big luxury brands to face up to new structural challenges. The digital revolution, which luxury houses are starting to take seriously, is certainly one of these challenges, but changes in consumer behavior are also causing a major transformation of the sector. These changes include the meteoric rise of experiential luxury…and the increasing fashionability of the “casual.” Between classic style and leisurewear, the “casual” look is informal without being neglected. This latest trend is one development revealed in the annual study by The Boston [...]

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Europe, the fastest growing luxury market in 2017

Global sales of personal luxury goods will grow by a stronger- than-expected 2-4 percent at constant exchange rates in 2017, as higher spending in Europe and China outpace weakness in the United States and southeast Asia, a report showed on Monday. In 2017, total revenue in the sector that includes watches, jewellery, clothes, shoes and leather goods will rise to 254 billion-259 billion euros (221.16 billion-225.51 billion pounds) from 249 billion euros in 2016, the study by consultancy group Bain & Co and Italian luxury industry association Altagamma showed. The [...]

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