KIKO MILANO’s Post

Less than a year after its relaunch, beginning in mainland China, Atelier Cologne Paris has ambitious expansion plans. The niche fragrance brand, which was reintroduced in mid-March starting in Shanghai’s IFC mall, Beijing’s SKP mall and on Tmall, has subsequently accelerated its rollout. In early November, Atelier Cologne debuted a freestanding flagship in Taiwan. It is the only one in existence today. “It’s important to put the [emphasis] on the physical space,” explained Sandrine Groslier, global president, luxe fragrance brands at L'Oréal, which acquired Atelier Cologne in 2016, seven years after its launch. Read more : https://lnkd.in/gNrnuHew

Recently the brand H&M collaborated with lux designer, Anamika Khanna. The collab was the talk of the town even before their grand launch. Yesterday, the merchandise was launched in H&M stores all over the country & guess what??? As of this morning EVERYTHING is SOLD OUT!!!! Interesting consumer behaviour here: 1. **Perceived Value and Exclusivity** Luxury brands are often associated with exclusivity, high quality, and status. When these items are made accessible, consumers may perceive an opportunity to own something aspirational at a more accessible price and as a result they get to be a part of that exclusivity. 2. **Fear of Missing Out (FOMO)** Deals on luxury products can trigger a scarcity mindset, leading to heightened consumer urgency and FOMO. Luxury buyers often believe deals are rare, so they may act quickly to purchase an item before it’s gone. And the proof is in the pudding, everything is “SOLD OUT”. And finally 3. **Rationalization of Purchase** Deals on luxury brands can help consumers justify what might otherwise be considered an “extravagant purchase”. The perceived discount on the brand item price provides a psychological cushion, making the purchase feel more justifiable. This collab has truly tapped into the psychological & emotional need of consumers. As of now, there’s only a black t-shirt retailing for 2.5 grand that’s left, so any takers??? #branding #brandcollab #consumerbehaviour

Malls are leveraging the appeal of high-end brands at outlet prices to attract consumers. Joe Hudson, CBRE's Senior Managing Director of Retail, highlights a key trend: "Luxury brands like Gucci are thriving in outlet centers, drawing in bargain-seekers who still crave premium products." Read more from the The Wall Street Journal: https://lnkd.in/gpRzuX8t

A new fragrance brand has quietly opened in Manhattan’s Nolita neighborhood. Avestan, created by the founder of Deciem and The Ordinary, keeps things simple with its modest storefront and word-of-mouth approach. With the opening, the brand has unveiled its second fragrance, Svalbard, inspired by the global seed vault. Since opening its first store in London in 2019, Avestan has operated quietly, avoiding traditional marketing altogether. For five years, the London location remained the brand’s sole outlet, offering just one fragrance. A second scent, Petrichor, was introduced as a limited in-store experience but was never sold. At first glance, Avestan might appear to be a small, independent project, but it was conceived by Brandon Truaxe, the cofounder of skincare powerhouses Deciem and The Ordinary. Still part of the Deciem family, the brand carries Truaxe’s legacy. Before his untimely passing in 2019, he had already worked on the design of the first store and developed several fragrances, though these plans were put on hold after his death. #Avestan #HiddenFragrance #TheOrdinary #Deciem #NYC #Luxury #Exclusivity #CandleMag #CandleMagazine #LuxuryNews #LuxuryIndia #LuxuryMagazine

Luxury labels in China are currently offering unprecedented discounts due to a slowdown in consumer spending. BALENCIAGA's iconic Hourglass handbag is now 35% off on Alibaba Group’s Tmall. The average discount on BALENCIAGA's sale items in 2024 has increased to 40% from 30% last year. Similarly, Capri Holdings Limited’s Versace sees an average discount surge from 40% to over 50% this year on Alibaba Group's Tmall. This trend has raised concerns, with Jacques Roizen from DLG (Digital Luxury Group) comparing it to hosting public sales on Fifth Avenue or the Champs-Élysées. Contrary to this, luxury giants Louis Vuitton, CHANEL, and Hermès have maintained exclusivity by refraining from discounts, limiting e-commerce exposure, and focusing on high net worth clients. This strategy, as indicated by sources, has shielded them from economic downturns. Angelito Perez Tan, Jr., from RTG Group Asia, warns that excessive discounts could erode brand exclusivity and repel VIP clients. In a challenging market environment, luxury brands are treading carefully to strike a balance between attracting consumers and upholding their elite status. #Growth #Luxury #Fashion #Lifestyle #Business #Brands I Bloomberg News I Shirley Zhao I Jinshan Hong I Deirdre Hipwell I Jane Zhang, CFA

"The luxury industry has been so eager to woo ultrawealthy shoppers that it forgot who really pays the bills: the middle classes." "If luxury brands continue to sideline middle-class shoppers, more reasonably priced labels will step in. This is already happening in China. Western labels. “Brands cannot afford to alienate these customers,” Luxury Brands Need to Win Back Middle-Class Shoppers https://lnkd.in/eqkzQUa6 #Luxury #brandstrategy #fashion #pricestrategy #consumerbehaviour #ecommerce #marketplace

𝐂𝐡𝐚𝐧𝐞𝐥 𝐫𝐞𝐦𝐚𝐢𝐧𝐬 𝐟𝐚𝐯𝐨𝐮𝐫𝐞𝐝 𝐚𝐬 𝐭𝐡𝐞 ‘𝐦𝐨𝐬𝐭 𝐫𝐞𝐥𝐞𝐯𝐚𝐧𝐭’ 𝐥𝐮𝐱𝐮𝐫𝐲 𝐟𝐚𝐬𝐡𝐢𝐨𝐧 𝐛𝐫𝐚𝐧𝐝 𝐚𝐜𝐫𝐨𝐬𝐬 𝐀𝐬𝐢𝐚. This article in Retail in Asia looks at the some of the key findings of our 2024 Brand Relevance Report, which sees CHANEL ranking top in brand relevance across Asian cities and among different age generations, reinforcing its iconic status. What sets Chanel apart? Beyond its very high score in spontaneous awareness and desirability, the brand leads “trendsetting” “exclusivity” and “heritage” – key attributes that show Chanel's mastery in balancing heritage with innovation, timelessness and contemporary desirability in consumer’s mind. 🌏 Moreover, the report also explores trends in luxury spending intentions, spotlighting the dynamic region of Southeast Asia. An average of 60% of luxury shoppers are gearing up to make a luxury purchase in the coming months, with this number even higher in cities such as Bangkok, Jakarta, and Kuala Lumpur. The upper-affluent group also exhibits a stronger propensity to spend more. Yet, it's intriguing to see the nuanced shift in China, where a significant portion of luxury consumers are reconsidering their spending habits. 2 out of 5 luxury buyers in Shanghai are planning to reduce their spending in 2024, with significantly fewer consumers planning to spend more. 🎯 China has traditionally dominated the luxury market, but now Southeast Asia is quickly becoming a major player due to rising incomes and changing lifestyles. This shift emphasizes Southeast Asia's increasing role in the luxury sector alongside China's established presence. What strategies should luxury brands adopt to navigate the shifting dynamics in Asia?

VIC Strategies in Luxury Fashion: Added Value for Male Customers In the publication about the failure of LVMH owned 24S to implement a concierge service for top spenders, I mentioned three core service points in the #VIC experience: 1) Supply 2) Professionalism 3) Emotional engagement | Extra value In another publication on men's #QuietLuxury brands (#BrunelloCucinelli, #LoroPiana, and #Zegma) and how to sell them, I noted there are differences in strategy for male customers. So if we move past supply and professionalism, we can then focus on extra value, which is more important for men rather than emotional engagement. What can be extra value? The opportunity to establish contacts among those who can afford to buy such brands on a regular basis and to expand their social circle. Examples: Brunello Cucinelli frequently hosts cocktail events. For instance they had a joint event with Net-a-Porter in Aspen in January this year to where I was invited, but unfortunately couldn’t attend. Zegna although not participating in Milan Design Week 2024 with a display, hosted an intimate dinner for the brand's friends. #ClientRelations #VICstrategies #communication #LuxuryFashion #Luxury

SEPHORA is seeing double-digit revenue growth, and #luxury conglomerates are experiencing comparatively greater boosts in Japan. But, “brands shouldn’t be scared” and chase sales in such thriving channels and markets, according to experts. This week’s executive conversations and luxury earnings prove that the brands best known for quality service and exclusivity are staying the course, reporting positive results and setting themselves up for further success. In this piece by Jill Manoff, we speak to Margot Humbert of BIOLOGIQUE RECHERCHE.

New Year marks a new important acquisition in Luxury Beauty: L’OCCITANE Group buying the Italian Dr. Vranjes Firenze from Bluegem Capital Partners. What makes this deal interesting, despite the financials of course: - first move of L'Occitane Group in high end #fragrance, entering thus a new big territory complementary to its portfolio, with still a steady growth potential - Dr. Vranjes is a leader in Luxury #homefragrance, a relatively small category which has grown a lot in the last years, driven by consumers post-Covid desire of making their homes more and more enjoyable. Under L'Occitane umbrella, Dr. Vranjes can further expand in white spaces and become an undisputed driver of this category, also leveraging the trend of fragrances for #wellbeing and mood enhancement. - in the mid-long term, the big opportunity to make it a power brand is in #personalfragrance and #bodycare, where Dr. Vranjes has recently launched its collections and still has to demonstrate its right to win in these categories, which have the biggest dimensions and consequently a big competition to captivate a very sophisticated consumer. Surely the potential is there with a #madeinitaly brand created in Firenze, a city which is synonymous for art of creating fragrances and artisanal excellence. #drvranjes #italianexcellence #mergersandacquisitions