Even in the depths of a dark recession, luxury louis vuitton outlet isn't such a bad place to be.
While not entirely immune, the industry's biggest names--including Louis Vuitton, Hermès and Chanel--continue to succeed. This is according to the annual Millward Brown BrandZ ranking of the Top 100 Most Powerful Brands, a list that covers 50,000 brands worldwide, released April 29.
In the luxury category, Louis Vuitton came out on top, with a brand value of $19.4 billion, followed by Hermès at $7.86 billion, Gucci ( PPRUF - news - people ) at $7.47 billion, Chanel at $6.22 billion and Rolex at $5.53 billion.
Behind the Numbers
To rank the brands, market research company Millward Brown used the BrandZ database of its parent company, WPP (WPPGY - news - people), which owns several marketing, advertising and public relations firms, among others. Some brands on the list are clients of WPP's companies, but the database is the world's largest repository of brand equity data, according to WPP, and includes interviews with more than 1 million consumers globally.
Consumers were asked about their loyalty to each brand and also about their attitudes toward the future of the brand (for example, whether or not its stock will increase in value or its sales will increase). The BrandZ ranking also considers the dollar values of the company. In 2009, Google (GOOG - news - people) topped the complete list with a brand value of $100 billion.
While the top three brands held their 2008 positions, high-fashion Chanel crept up one spot, while fine jeweler Cartier dropped from fourth place to seventh with a 2009 value of $4.91 billion.
Cartier's somewhat dramatic fall has a lot to do with the fact that, while luxury handbags and shoes still seem to be selling, ultra-expensive investment items--such as $1 million, diamond-encrusted Cartier watches--aren't faring so well.
"Brands that offer luxury treats--glasses, belts, handbags, etc.--are less vulnerable," says Nikhil Gharekhan, senior vice president at Millward Brown.
Although the dollar value of most of these brands has decreased--Louis Vuitton's, for instance, dropped by $6.34 billion from $25.74 billion in 2008--their standing on the overall list remains solid because luxury brands have weathered the financial storm better than their mid-market counterparts. It has a lot to do with branding positioning. In other words, right now, consumers want to shop, but not as much--even if they can afford to do so. That means that they're buying one luxury handbag for $1,500 rather than five less-expensive handbags at $300 each.
Leather retailer Coach ( COH - news - people ), for example, is suffering as a result. The mid-market retailer, positioned between Liz Claiborne ( LIZ - news - people ) and Kate Spade on the price spectrum, did not wield the brand power to make the list. In its most recent quarter, the company's year-over-year sales decreased by 6.7% to $740 million. Earnings were down 24% to $123 million.
Unprecedented Resilience
The top two luxury brands--Louis Vuitton and Hermès--show resilience, says Milton Pedraza, chief executive of the Luxury Institute, a New York-based market research company focusing on the ultra-affluent, not just because of brand positioning, but careful business considerations. "[The executives behind] Louis Vuitton and Hermes absolutely control every single component of their business model, from retail distribution to discounting," he says.
Indeed, even when Saks Fifth Avenue ( SKS - news - people ) went on a markdown rampage last fall, offering 70% reductions on several high-end brands, including shoemaker Manolo Blahnik and Prada, items at the Louis Vuitton shop within the luxury department store remained at full price. The only place shoppers can find discounted Hermès or Louis Vuitton is in outlet stores, which carry stock from seasons past. Current-season goods are not marked down--no exceptions.
The policy is reflected in both companies' sales results. At luxury conglomerate Moët Hennessy Louis Vuitton ( LVMHF - news - people ), year-over-year sales in the fashion and leather goods sector--of which Louis Vuitton is a part--increased by 11% to 1.6 billion euros ($2.1 billion) in the first quarter of 2009. LVMH said that both Louis Vuitton's new Damier Graphite and Stephen Sprouse collections sold particularly well. And while reports of LVMH selling off its wine and spirits brands to British drink maker Diageo ( DEO - news - people ) for 12 billion euros ($15.5 billion) may have been vehemently denied, even the whispers prove the company is willing to shed extra weight.
Not So Precious
While luxury fashion and accessory brands seem to be irrepressible right now, jewelry has taken a major hit. Cartier is still the most valued jewelry brand in the world, though its luster dulled a bit in 2009. Not only did its status slip in this particular ranking, but the brand's parent company, Richemont ( CIVBF - news - people ), said year-over-year jewelry sales decreased by 12% to 800 million euros ($1.1 billion) in the fourth quarter of 2008.
Other high-end jewelers have suffered worse, though: Fortunoff, Doris Panos Designs and Fred Leighton have all filed for bankruptcy protection in recent months.
One brand that fell out of the top 10 in 2009 is Giorgio Armani, which ranked eighth last year, with a value of $5.12 billion. Today, that value has dropped by $2.02 billion to $3.1 billion. While Armani the man is still a billionaire--with a net worth valued at $2.8 billion, Pedrazza says the company's multiple brand extensions, including Armani Casa, Armani Hotels and AX Armani Exchange, have stretched it a bit too thin.
Says Pedrazza, louis vuitton sale is unique and exclusive anyway." Which seems to be the key to prospering--in good times and bad alike?
Source from: http://www.louisvuittonoutletoe.com/new.php?id=125
It hasn't been an easy year for Saks for louis vuitton outlet. Along with many other luxury retailers, the 111-year-old department store has seen sales fall dramatically since the start of the recession. Last holiday season, it was criticized for discounting items up to 70%, long before the traditionally sale-heavy post-Thanksgiving week.
Today, New York-headquartered Saks (SKS - news - people) reported its earnings for the second quarter of 2009. The retailer lost $54.5 million, or 39 cents per share, in the three months that ended Aug. 1. That compares with a loss of $32.7 million, or 24 cents per share, a year earlier. Sales were down by 15% to $561.7 million when compared with the same quarter last year. Its competition was similarly hard-hit: Dallas-based Neiman Marcus saw a 23% decline in year-over-year Q2 sales for stores open at least one year; Nordstrom ( JWN - news - people ) saw a 9.8% decrease in the same period.
Despite the dismal numbers, however, Saks did manage to beat analyst estimates on the quarter, mostly due to cost-cutting and a reduction in inventory. For the fall and holiday seasons, Saks' strategy is to keep inventory levels low and to introduce new products at a lower price point, such as its new Saks Fifth Avenue Men's Collection, an in-house brand featuring $1,000 Italian wool suits, $300 cashmere sweaters and $135 dress shirts--moderate prices compared with luxury brands like Brioni, Kiton and Louis Vuitton, which sell off-the-rack suits for $5,000 to $15,000.
Analysts believe introducing lower-priced merchandise is a good move, but when it comes to shrinking costs, a retailer can only do so much. Luxury consultant Pam Danziger, president of Unity Marketing, a Stevens, Pa., research firm focused on wealthy consumers, says Saks' results are representative of the troubles luxury department stores are facing as a whole. Here, she discusses the root of the problem, and what these retailers can do to woo consumers in time for the holidays.
Forbes: What do you think Saks' losses say about the state of luxury department stores?
Danziger: Our research suggests that while the affluent consumer still isn't spending on personal luxuries--like fashion--spending on the home is beginning to pick up. Retailers like Saks that rely on sales of clothing and accessories are still having trouble clearing out inventory.
What do you think the holiday-season strategy of luxury department stores will entail?
I think that there will still be a quite a lot of markdowns. What we're seeing is that luxury consumers have become smarter about their purchases. [Luxury department store executives] have got to step back and realize that nobody needs anything that these stores sell. So many retailers haven't come to terms with the fact that consumers were on an extended buying spree for the last 10 years. Our closets are full, our attics are full and our basements are full. We have more than enough stuff.
What do consumers want, then?
What's empowering today's consumer is not money, it is smarts. She's too smart to pay the prices that these retailers are charging. The average price of designer shoes has doubled in just a couple of years. Today, there is wide selection of alternative brands that sell high-quality shoes under $500. Why would a shopper buy a pair of $800 shoes when you can get a pair of Cole Haans for $300?
What can retailers like Barneys New York, Neiman Marcus and Saks do to draw people back into the stores?
I think that the most important thing any luxury retailer can do today is take time to understand their consumer. These brands aren't doing their due diligence. They're listening to hopes, dreams and wishes--not the reality. Retailer executives need to ask themselves, "How can I add more value? How can I find brands that have an edge that makes them different and special?"
Whether it's through reasonable pricing or uniqueness, retailers need to give consumers a reason to buy. One great reason to buy is a sale, but products with a difference--that are marketed properly and that fill a need--will also attract customers. Michelle Obama has showed consumers that you can dress fashionably with J.Crew and White House, Black Market. You don't need to wear designer clothes anymore to look good. So luxury louis vuitton sale retailers need to bring something extra to the table for us.
Source from: http://www.louisvuittonoutletoe.com/blog_show.php?id=7
Survey Methodology
Between May and November 2010 surveyed on luxury brands Louis vuitton outlet, Hurun Report surveyed 345 Mainland Chinese US Dollar millionaires, of which 131 have personal wealth of over US$10 million. For the fifth year running, surveys were carried out on a one on one basis, making this the largest and most authorities survey of its kind in China. The survey asked respondents for their ‘Preferred Brand’ from an alphabetical list of brands in each category together with an ‘Other’ option at the end for brands not covered in the list. For the Best Overall Luxury Brand, the question was open-ended. There were no options. The winner for each category was the brand with the most votes. Results compiled by Sinomonitor International, leading market researchers for China.
Demographics of respondents
The average age of respondents was 40.9 years. The geographical distribution of respondents was 59 per cent from East China (44 per cent last year), 23 per cent from North China (33 per cent last year) and 18 per cent from South China Guangdong (23 per cent last year).
Source from: http://www.louisvuittonoutletoe.com/blog_show.php?id=6
Louis vuitton outlet is among a raft of luxury retailers that will miss the opening of Westfield London, the new shopping centre in White City, on Thursday.
The Westfield London shopping centre on the four acre site in West London has lined up a raft of luxury retailers for its 270,000 sq ft Luxury Village area, including Prada, Gucci and Dior.
However, it is understood that as many as half of the shops in the Village, including the anchor Louis Vuitton store, will not have finished their shopfits in time for the launch of the centre later this week.
A spokeswoman for Westfield confirmed that Louis Vuitton, the village's flagship retailer, would not be ready for the launch, and could not give a date for when the store would open. She declined to confirm an exact figure of how many luxury retailers would open in the Village.
She said: "Many of the retailers have complicated store fits that take time to put in place."
Louis Vuitton told Drapers that they had no date for the opening yet but confirmed that the store would still open.
The failure to open is a blow for the scheme - the signing of Louis Vuitton was a coup for developers Westfield, who usually insist that schemes open with all stores trading.
Westfield London is also extending its opening hours to 11pm in the run up to Christmas. It will open to 10pm from launch and to 11pm from the middle of December to capitalise on the Christmas shopping rush.
Westfield London louis vuitton sale will be anchored by House of Fraser, Marks & Spencer, Next and Debenhams and will house 265 stores in total.
Source from: http://www.louisvuittonoutletoe.com/blog_show.php?id=5
LVMH Moët Hennessy louis vuitton outlet, the world's biggest luxury goods company, has scrapped a plan to open a Louis Vuitton flagship store in the Ginza, the Tokyo shopping district, as a spreading recession takes the luster off designer brands.
LVMH has broken off talks over opening a store in a building that was scheduled to be completed in 2010, an executive for the developer, Hulic, said Tuesday.
An LVMH spokesman said the company had withdrawn from the project but declined to explain the decision or comment on its plans.
"We have not been able to reach an agreement with Hulic on a store development project in Ginza," said Yuri Matsueda of Burson-Marsteller, a public relations agent for Louis Vuitton Japan.
Awash with cash from a global luxury boom, fashion and jewelry brands poured money into lavish retail spaces in districts like the Ginza and Omotesando over the past two years.
News reports this year referred to a 10-floor Louis Vuitton emporium and restaurant to rival opulent new Armani and Bulgari towers in the Ginza.
A weak yen also encouraged such investments, tempting wealthy Japanese consumers to shop at home rather than Europe, luring buyers from all over Asia to Tokyo and offering foreign brands bargains on real estate.
While luxury goods companies gave optimistic sales forecasts as recently as May, banking on the wealthy to keep spending despite the economic slowdown, the mood has turned sour as the impact from the global financial crisis has grown.
Japan, the United States and much of Western Europe is in recession, and growth is slowing in emerging markets like China.
Several luxury companies have cut their outlooks and expect a grim Christmas season followed by an even gloomier 2009.
LVMH had appeared to be weathering the downturn louis vuitton sale better than others. It said in October that sales had risen sharply in the first week of that month, and sales in emerging markets were holding up.
Source from: http://www.louisvuittonoutletoe.com/blog_show.php?id=4
French fashion brand louis vuitton outlet, which will open its flagship Middle East store in Dubai next month, is in the 'final stages' of a planned expansion into Lebanon, a company official has said.
Damien Vernet, general manager for the fashion house's Middle East and India operations, said the company was also looking into Egypt, Jordan and in Syria as possible markets.
'The next market where there are opportunities is clearly Lebanon, which has been resilient to the crisis and has already shown to be a strong market for luxury,' he told reporters.
'We are working on the final stages ... if we could not miss another summer that would be wonderful.'
Louis Vuitton, whose wares are designed by Marc Jacobs and advertised by singer Madonna in glossy magazines, is part of luxury giant LVMH.
The parent company derived about 30 per cent of its sales from emerging markets in the second quarter, with China contributing the most.
The fashion house will officially open its first so-called 'global store' at the Dubai Mall -- which bills itself as the world's biggest mall -- in October after a soft launch in August.
The louis vuitton sale store, spread across 645 sq m, will include the brand's global products as well as other items designed specifically for the region.
Source from: http://www.louisvuittonoutletoe.com/blog_show.php?id=3