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LuxuryDays
Opportunities 26 February 2009
LuxuryDays is the annual business event dedicated to the luxury industry which is organized by CPP Management Consultants Ltd, sole Central and Eastern European management consultancy specialized in luxury.
The seventh edition of LuxuryDays took place on 12,13 March 2009 in Bucharest. Participants have expressed their opinion on the current financial situation and came up with solutions for getting over this period. They have also presented their own experiences in relation to the crisis. The leading speaker of the event was Mr David Pilnick, Senior Vice President International of SAKS FIFTH AVENUE Inc
IRINA SCHROTTER
„Without direct implication from authorities and real support from consumers, local fashion industry (including Lohn producers) will close down in the near future”
„The authorities are ignoring the business community, making random choices that are most of the time unsuitable for the business environment. I do not agree that the state should subsidize any company or sector; the ones that are not performing should close down!”
„Irina Schrotter will close down in the next months most of the retail shops located in Bucharest and in the rest of the country, keeping only the ones that are performing well. Discounts are not a solution. In December 2008 we have reduced all prices up to 70 percent but sales continued to drop.”
ANDREEA IONESCU, AD PHARMA (LOccitane, Sensiblu)
„One of the possibilities for spending investment money from the government is to create a private fund, dedicated to healthcare... The more than one million clients of Sensiblu that also have a membership card are constantly changing habits... We will intensify all marketing activities that include maintaining communication with our customers... For example we have an online communication strategy, targeting young customers...”
„During current economic situation a greater customer care is necessary... all players active in the luxury industry should be flexible and prove that they can adapt easily to regulatory changes made by the authorities.”
LILIANA PARAIPAN (Eden SPA)
„We decided to close down our location in Monte Carlo Palace, at two months from the start...Owners do not know how to attract the customers and the hotel is almost permanently empty. We have decided to close down rather than suffer another six months worth of losses...”
„With our new project Eden Spa at Hilton Sibiu (Palace Resort) we will be dependable of the Hotel’s performances and their capacity to adapt to current conditions.”
KURT STROHMAYER (JW Marriott, Bucharest)
„The location chosen by Hilton in Sibiu is not one suited for the hotel chain. Marriott wouldn’t have chosen such a location.”
„Local investors interested in the hospitality industry should be dedicated and should also understand the dynamics of this business. In the first place, they should know that a hotel requires constant investments…”
„ The fact that some five star hotels are still behind with the renovations only means that this is better for us. JW Marriott has an annual budget dedicated to renovations... For example, right now we have the most comfortable bed in the entire luxury market in Bucharest... we are constantly changing technology... we have the best performing wireless network. Recently our partners Worldclass have renovated the entrance in the SPA area, thus increasing the quality of service.”
„These days we are accepting reservations from any system... thus being much more open. Our greatest challenge is to bring back the business customer who lately prefers other four or five star hotels... the Marriott is always adapting to the needs of the customer; it doesn’t matter what their nationality is”
„We have received many offers in Bucharest, but no property has managed to rise to the level required by the Marriott. Some of them lacked sprinklers; other had small rooms or insufficient rooms, and so on...”
„I believe in the potential of the Romanian market, in spite of current conditions...”
OLIVER PETCU (CPP)
„The most important segments of the luxury industry that will grow during this period are SPA, well being/gourmet and fine beverages.”
„If in Bulgaria the most affected are the franchised brands, while in Bucharest the most affected are the multibrand stores...”
„The closing down of Escada, Vivienne Westwood, M Missoni and Hugo Boss has been caused by the crisis only in a small percentage, 10% at the most. Choosing the brand, the lack of interest from the owners, bad management and choosing the right location were mostly the key facts that caused the closing down of these brands.
„We will also see more shops closing down in 2009 but starting with 2010/2011 we have a possible direct investment from Prada and a franchise/concession of Hermes and Gucci.”
SONIA NASTASE, Trend Hospitality (master franchisee Wyndham)
„Many of those who approach us do not understand the important difference between franchise and management. We offer in franchise Ramada, Howard Johnson and so on and we do not provide management... I agree with Oliver Petcu that Hilton’s decision to open in Sibiu only proves that some hotel chains desperately need any new location... at any price”
The seventh edition of LuxuryDays took place on 12,13 March 2009 in Bucharest. Participants have expressed their opinion on the current financial situation and came up with solutions for getting over this period. They have also presented their own experiences in relation to the crisis. The leading speaker of the event was Mr David Pilnick, Senior Vice President International of SAKS FIFTH AVENUE Inc
IRINA SCHROTTER
„Without direct implication from authorities and real support from consumers, local fashion industry (including Lohn producers) will close down in the near future”
„The authorities are ignoring the business community, making random choices that are most of the time unsuitable for the business environment. I do not agree that the state should subsidize any company or sector; the ones that are not performing should close down!”
„Irina Schrotter will close down in the next months most of the retail shops located in Bucharest and in the rest of the country, keeping only the ones that are performing well. Discounts are not a solution. In December 2008 we have reduced all prices up to 70 percent but sales continued to drop.”
ANDREEA IONESCU, AD PHARMA (LOccitane, Sensiblu)
„One of the possibilities for spending investment money from the government is to create a private fund, dedicated to healthcare... The more than one million clients of Sensiblu that also have a membership card are constantly changing habits... We will intensify all marketing activities that include maintaining communication with our customers... For example we have an online communication strategy, targeting young customers...”
„During current economic situation a greater customer care is necessary... all players active in the luxury industry should be flexible and prove that they can adapt easily to regulatory changes made by the authorities.”
LILIANA PARAIPAN (Eden SPA)
„We decided to close down our location in Monte Carlo Palace, at two months from the start...Owners do not know how to attract the customers and the hotel is almost permanently empty. We have decided to close down rather than suffer another six months worth of losses...”
„With our new project Eden Spa at Hilton Sibiu (Palace Resort) we will be dependable of the Hotel’s performances and their capacity to adapt to current conditions.”
KURT STROHMAYER (JW Marriott, Bucharest)
„The location chosen by Hilton in Sibiu is not one suited for the hotel chain. Marriott wouldn’t have chosen such a location.”
„Local investors interested in the hospitality industry should be dedicated and should also understand the dynamics of this business. In the first place, they should know that a hotel requires constant investments…”
„ The fact that some five star hotels are still behind with the renovations only means that this is better for us. JW Marriott has an annual budget dedicated to renovations... For example, right now we have the most comfortable bed in the entire luxury market in Bucharest... we are constantly changing technology... we have the best performing wireless network. Recently our partners Worldclass have renovated the entrance in the SPA area, thus increasing the quality of service.”
„These days we are accepting reservations from any system... thus being much more open. Our greatest challenge is to bring back the business customer who lately prefers other four or five star hotels... the Marriott is always adapting to the needs of the customer; it doesn’t matter what their nationality is”
„We have received many offers in Bucharest, but no property has managed to rise to the level required by the Marriott. Some of them lacked sprinklers; other had small rooms or insufficient rooms, and so on...”
„I believe in the potential of the Romanian market, in spite of current conditions...”
OLIVER PETCU (CPP)
„The most important segments of the luxury industry that will grow during this period are SPA, well being/gourmet and fine beverages.”
„If in Bulgaria the most affected are the franchised brands, while in Bucharest the most affected are the multibrand stores...”
„The closing down of Escada, Vivienne Westwood, M Missoni and Hugo Boss has been caused by the crisis only in a small percentage, 10% at the most. Choosing the brand, the lack of interest from the owners, bad management and choosing the right location were mostly the key facts that caused the closing down of these brands.
„We will also see more shops closing down in 2009 but starting with 2010/2011 we have a possible direct investment from Prada and a franchise/concession of Hermes and Gucci.”
SONIA NASTASE, Trend Hospitality (master franchisee Wyndham)
„Many of those who approach us do not understand the important difference between franchise and management. We offer in franchise Ramada, Howard Johnson and so on and we do not provide management... I agree with Oliver Petcu that Hilton’s decision to open in Sibiu only proves that some hotel chains desperately need any new location... at any price”