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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Neiman Marcus launches new merchandising initiative ‘The Luxe Lab’

Last week, Neiman Marcus announced the arrival of Luxe Lab, a boutique-like collection of merchandise picked from a group of “forward-thinking” designers, including Simone Rocha, Nour Hammour and Francesco Scognamiglio. According to a Neiman Marcus spokeswoman, the goal of the Luxe Lab is to offer a selection of pieces from designers outside of the typical lineup, establishing the retailer as an authority for up-and-coming fashion. In the first assortment, which is online and available in 14 Neiman Marcus stores, a handful of the items are exclusive to the retailer. Across the board, [...]

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The growing potential of luxury travel retail

As Deloitte’s latest Global Powers of Luxury report found, the world’s 100 largest luxury goods companies generated only $212 billion in 2015, down 4.5 percent year-over-year. Half of these luxury purchases, however, are made by travelers, a number that rises to 60 percent for those coming from emerging markets. On the other hand, travel retail overall accounts for $63.5 billion in total global revenue and is expected to grow to $85 billion by 2020. Consumers from Asia are the driving force behind this trend, accounting for $24 billion of that number. According to [...]

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Chinese luxury consumers: an in-depth analysis of their changing profile

With luxury consumption dropping in 2016 to its lowest level since 2009, much attention has been focused on one of the biggest forces in global luxury spending: Chinese consumers. As the Chinese economy slows, and growth in luxury consumption cools in China and abroad, there’s a growing concern among industry observers that Chinese consumers are losing their passion for luxury goods. For more than eight years,  McKinsey hasbeen monitoring the evolution of Chinese luxury consumers and their increasing influence on the global luxury-goods market. Recently the company has issued a new report Chinese luxury consumers: [...]

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