Luxury business digest with expert analysis by Alessandro Maria Ferreri (November 2017)

Luxury fashion consultant Alessandro Maria Ferreri provides CPP-LUXURY.COM with his expert insights on the selection of the most important news of the month. Russia’s luxury market boosted by the alignment of prices and Chinese shoppers I totally agree with the Mercury strategy and, what described, is exactly what we did put in place with our clients over the last months. It was time also for Russia to do what many brands did in China last year. As for new Chinese customers in Russia, this is a great possibility above all [...]

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The secrets behind the continued success of Hermès

Hermès International, sometimes also referred to as Hermès of Paris or Hermes, is a French luxury goods manufacturer. It has been consistently ranked as the world’s most valuable luxury brand in different valuation and ranking studies published by leading consultancies. Hermès as a brand enjoys an iconic status in the world of luxury. A combination of rich heritage, exquisite craftsmanship, eye for detail and high levels of quality and professionalism through the entire manufacturing process gives Hermès a position of superiority in the very competitive and ruthless world of luxury. [...]

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Coach’s restructuring strategy shows results

Coach was helped by getting an earlier start than competitor brands including Ralph Lauren and Michael Kors, which have launched restructuring plans in the last year. Coach kicked things off in 2014 with a plan drawn up by the company’s then new CEO, Victor Luis, to reverse sales declines and transform the brand’s reputation from one of affordable luxury to that of a more exclusive tier. Coacj reported a significant 21 percent decline in North American comparable sales during the first quarter of 2014, after four straight quarters of similar sales declines. While that’s concerning by [...]

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Ralph Lauren’s Way Forward plan shows results

Facing threats and setbacks from fast-fashion brands, Amazon, an increasingly digital customer and its own unwieldy supply chain and management network, Ralph Lauren hit the reset button in 2016. Now, the American brand is midway through its Way Forward plan, a $400 million restructuring project laid out under the leadership of then-CEO Stefan Larsson and CFO Jane Nielsen in June of last year. It’s projected to be completed by the end of the brand’s financial 2018. At the time of the 2016 announcement, the brand was facing annual revenue growth that [...]

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Prada, Ferragamo lagging behind luxury’s rebound

As sales of Gucci’s snake-covered handbags and heels lead the luxury industry’s upswell, many of the brand’s Italian rivals are struggling to catch the wave. Shares of Prada SpA, Salvatore Ferragamo SpA and Tod’s SpA have all posted double-digit declines in the past six months as profits fall, while privately held Giorgio Armani SpA is pruning its lineup after a 5 percent drop in sales last year. Their weakness contrasts with newfound strength at French rivals LVMH and Kering, whose Italian brands Fendi and Gucci are racing ahead after a multiyear slowdown in China. Italy’s listed fashion companies “are losing market share [...]

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