2. 2010
Luxury
Trends
Indian
Jones-‐inspired,
five-‐figure
vaca;ons,
the
Chinese
to
find
their
iden;ty,
Chinese
too
will
undergo
a
cultural
economic
boom,
social
network-‐themed
mar;ni
lounges,
the
transforma;on
whereby
"Made
in
China"
will
be
less
perceived
value
of
discounted
pres;ge
brands.
The
2010
synonymous
with
;cky
tacky
and
more
with
rich
cultural
luxury
market
is
all
over
the
map
aFer
a
year
of
budget-‐ heritage,
entrepreneurial
spirit
and
quality.
;ghtening
and
nervous
nail-‐bi;ng
amid
the
Great
Recession.
Purveyors
of
all
things
pres;ge
are
learning
lessons
and
re-‐ Luxury's
Love
Affair
with
High-‐Tech
-‐-‐
Robot
housemaids,
strategizing
to
emerge
on-‐top.
electric
cars,
personal
commuter
airplanes
and
all
the
insanely
impossible
kitchen
gadgetry
imaginable.
For
nearly
a
To
sort
through
and
make
sense
of
luxury's
re-‐emergence
in
century,
the
World's
Fair
has
illustrated
American's
strong
2010,
we
iden;fied
key
trends
to
navigate
not
only
today's
associa;on
between
luxury
and
technology.
Tech
enhances
market,
but
prepare
for
tomorrow:
our
ability
to
connect
with
the
world
and
how
the
world
connects
with
us.
It
maximizes
our
;me
and
extends
our
The
State
of
Luxury
Today
-‐-‐
In
2009,
the
Great
Recession
pleasure.
It
helps
us
navigate
a
world
flooded
in
informa;on
brought
great
panic
to
the
luxury
industry.
Coach
and
while
libera;ng
us
from
its
complexi;es.
Nordstroms
bit
the
bullet
and
slashed
product
prices,
and
unlike
what
some
experts
predicted,
the
pres;ge
brands
have
The
Luxury
of
Once-‐In-‐A-‐LifeBme
Experiences
-‐-‐
You
are
retained
their
luster
and
thrived.
Other
high-‐end
brands
are
assigned
a
mission
in
which
you
will
train
with
former
M16
hedging
losses
in
America
and
Europe
by
entering
the
agents.
Your
journey
will
take
you
around
the
world
where
booming
Chinese
market.
Boomers
are
entering
re;rement
you
must
complete
challenging
tasks
that
require
both
brains
while
Gen
X
isn't
large
enough
to
support
their
historical
and
brawn.
Do
you
wish
to
accept?
Many
high
net
worth
spending.
From
a
global
lens,
the
luxury
market
is
individuals
are
asking,
where
do
I
sign
up?
The
seven-‐figure
experiencing
tectonic
shiFs
that
show
extraordinary
short-‐ Indiana-‐Jones-‐inspired
vaca;on
is
one
of
many
thrill-‐seeking
term
gains,
but
are
profits
sustainable?
experiences
coordinated
by
the
members-‐only
luxury
concierge
service,
Quintessen;ally.
Quintessen;ally
is
leading
The
Golden
Wall
of
China
-‐-‐
The
Chinese
market
is
trying
to
a
trend
that
curates
not
just
extravagant
vaca;ons,
but
find
its
pres;gious
iden;ty
among
established
luxury
brands
extraordinary
experiences
that
yield
incredible
stories.
in
Europe
and
America.
In
fact,
many
affluent
Chinese
reject
"Made
in
China"
products
in
lieu
of
superior
imported
quality.
Recession-‐Proof
Luxury:
Timelessness
&
Enduring
Quality
-‐-‐
If
"China
is
not
an
easy
market.
Chinese
consumers
are
very
you
had
a
choice
between
buying
one
uber
trendy
dress
this
demanding;
they
don't
like
'made
in
China'
products,"
said
season
and
another
trendy
dress
next
or
buying
a
;meless
Florent
Perrichon,
CEO,
Cerru;.
Much
like
Amish
youth
trying
dress
this
season
and
a
;meless
cardigan
next,
which
would
you
choose?
At
year
two,
you
could
either
have
one
dress
or
2010
Luxury
Trend
Report
2
3. 2010
Luxury
Trends
one
dress
and
one
cardigan.
Inves;ng
in
;meless
luxury
items
for
it.
There
is
a
rising
trend
in
luxury
that
stretches
beyond
is
a
way
to
maximize
spending
dollars
in
recessionary
;mes
superficial,
Louis
Vuiion
and
D&G
status
symbols,
and
speaks
while
maintaining
an
affluent
lifestyle.
More
and
more,
Gen
X
to
rejuvena;on,
personal
energy
and
sustainability.
No,
men
and
Gen
Yers
consider
luxury
an
investment
and
some
millionaires
are
not
holding
hands
around
a
camp
fire,
singing
pres;ge
brands,
such
as
Hermes,
are
benefi;ng
-‐-‐
even
when
Koombaya.
This
emerging
class
of
high
net
worth
individuals
;mes
are
lean.
seek
to
preserve
themselves
and
the
world
around
them.
Two
similar,
yet
different,
brands
capturing
this
rising
trend
are
Luxury:
For
What
It's
Worth
-‐-‐
What
makes
a
pair
of
Jimmy
Terrain
and
Lululemon
Athle;ca.
Choo
heel
sandals
worth
$1,150?
Or
a
$17,500
price
tag
for
a
night
at
the
Dunton
Hot
Springs?
In
essence,
what
is
luxury
Passion
Immersion
Drives
Niche
Luxury
-‐-‐
A
recent
study
of
worth?
Everyone
perceives
products
and
service
value
luxury
handbags,
featured
in
Psychology
Today,
suggests
once
differently.
You've
likely
been
in
Gucci
or
Hermes
and
said,
the
price
exceeds
$300,
the
logo
decreases
in
size.
But
why
really?
A
shoe-‐shaped
Gucci
key
ring
is
$170.
Really?
For
pay
more
for
a
brand
without
the
recogni;on?
Sterling
Lanier,
some,
it's
worth
it.
As
everyone
derives
value
differently,
President
of
the
market
research
consultancy
Chaier,
there
are
three
main
criteria
that
help
us
decide
whether
a
performed
in-‐home
case
studies
of
affluent
Gen
Yers
to
luxury
product
or
service
is
worth
it.
provide
insight.
In
one
of
Sterling’s
audience
tes;monials,
a
Gen
Yer
said
he
purchases
shirts
from
a
Sconsh
designer
with
Personal
Renewal
with
Purpose
-‐-‐
All
luxury
fulfills
an
around
three
small
stores
in
Europe.
With
only
a
small
colored
emo;onal
need.
OFen
;mes,
that
need
is
social
relevancy
tag
to
iden;fy
the
designer,
he
gets
gra;fica;on
seeing
others
and
status
among
peers.
Think
about
what
a
Louis
Vuiion
bag
wear
the
Sconsh
brand.
says
about
a
person:
affluence
and
they
should
be
recognized
2010
Luxury
Trend
Report
3
4. The
State
of
Luxury
Today
In
2009,
the
Great
Recession
restaurants
saw
May
sales
rise
13.7
manage
costs
well."
Indeed,
Chinese
luxury
spending.
As
Baby
Boomers
brought
great
panic
to
the
luxury
percent,
9.7
percent,
6.4
percent
consumers
account
for
nearly
25
conserve
spending
in
re;rement,
industry.
Lower-‐rung
affluents
and
2.8
percent,
respec;vely,
percent
of
global
luxury
sales,
Gen
X
will
be
the
primary
target
for
;ghtened
their
budgets,
slowed
reports
Reuters.
Bricks
and
mortar
followed
by
Americans,
Europeans
pres;ge
brands.
Some
experts
luxury
spending,
causing
many
retailers
are
also
up.
Saks
countered
and
Japanese,
each
taking
around
predict
Gen
X
cannot
support
Baby
pres;ge
brands
to
consider
the
last
year's
loss
with
record
profits
in
20
percent
of
pie.
Many
large-‐sized
Boomer's
historical
spending.
Gen
X
sinful
thought
of:
discoun;ng.
Coach
the
past
quarter,
with
sales
up
6.1
luxury
brands
see
the
wri;ng
on
the
is
simply
not
a
big
enough
group
to
and
Nordstroms
bit
the
bullet
and
percent
-‐-‐
and
an
astounding
395
wall.
pick
up
the
slack,
writes
Rob
Lever
slashed
product
prices,
and
unlike
percent
stock
increase.
Nordstrom
of
AFP.
Lever
suggests
Gen
Y
will
fill-‐
what
some
experts
predicted,
the
shares
skyrocketed
246
percent
over
Taking
Pedraza's
advice,
historical
in
the
gaps
leF
by
Gen
X.
"The
luxury
pres;ge
brands
have
retained
their
last
year's
boiom.
Tiffany
&
Co's
luxury
brands,
such
as
Hermes
and
market
is
unlikely
to
regain
its
luster
luster
and
thrived.
Other
high-‐end
global
strategy
benefited
them
with
LVMH,
have
bumped
up
profits
by
un;l
around
2018
to
2020,
when
the
brands
are
hedging
losses
in
interna;onal
sales
up
17
percent
in
entering
the
Asia
market,
writes
Rob
Millennials
born
aFer
1997
start
America
and
Europe
by
entering
the
the
most
recent
quarter
and
profit
Lever
of
AFP.
"Shiseido,
Japan's
their
spending
sprees,"
he
writes.
booming
Chinese
market.
Boomers
up
nearly
fourfold.
How
have
largest
cosme;cs
firm,
expects
sales
are
entering
re;rement
while
Gen
X
pres;ge
brands
made
such
a
of
its
high-‐end
cosme;cs
to
grow
up
If
this
genera;onal
shiF
occurs
as
isn't
large
enough
to
support
their
comeback?
to
20
per
cent
a
year
in
China
over
Lever
predicts,
the
short-‐term
historical
spending.
From
a
global
the
near
term,
making
it
a
key
pillar
profits
in
2010
will
serve
as
only
a
lens,
the
luxury
market
is
If
the
recession
provided
any
key
of
its
global
expansion
plans,"
slight
up;ck
in
struggling
American
experiencing
tectonic
shiFs
that
lessons,
it's
the
value
of
reports
the
Economic
Times.
For
market.
Luxury
brands
will
have
to
show
extraordinary
short-‐term
diversifica;on.
Those
pres;ge
pres;ge
brands,
all
signs
are
shiF
focus
slightly
away
from
the
gains,
but
are
profits
sustainable?
brands
with
all
of
their
eggs
in
one,
poin;ng
to
Asia
right
now,
but
what
American
market
over
the
next
American
basket,
suffered
when
the
should
we
expect
for
the
future?
decade
to
sustain
growth.
The
Nearly
across
the
board,
the
luxury
market
boiomed
in
2009.
Milton
recession
could
have
been
a
wake-‐
market
has
rebounded
aFer
a
Pedraza,
CEO
of
the
Luxury
Ins;tute,
Global
luxury
goods
industry
sales
up
call
for
luxury
brands
focused
recessionary
slump.
Global
luxury
termed
the
strategy
as
a
“self-‐ are
expected
to
grow
4
percent
in
en;rely
on
Western
markets,
and
sales
rose
15
percent
in
the
first
imposed
limita;on.”
He
added
that
2010
to
$195
billion
dollars
aFer
8
considering
the
imposing
quarter
of
2010,
according
to
U.S.
"overseas
markets
like
China
could
percent
decline
in
2009,
according
genera;onal
shiF,
they
should
look
consultants
Bain
&
Co.
Nearly
all
be
key
growth
engines
for
luxury
to
the
consul;ng
firm
Bain
&
East
for
answers.
categories
are
in
the
black.
e-‐ players
and
also
sees
Japan
as
a
Company.
Five
to
ten
years
out,
Gen
Commerce,
luxury,
jewelry
and
'cash
cow'
for
those
brands
who
can
X
will
pick
up
the
torch
and
lead
2010
Luxury
Trend
Report
4
5. The
Golden
Wall
of
China
Devil's
Playground
is
a
documentary
that
captures
China's
Affluence
is
a
Brightspot
for
Global
Luxury
Rover's
sales
volume
in
China
will
surpass
Britain
the
transforma;ve
period
in
a
young
Amish
-‐-‐
Western
pres;ge
brands
are
not
unhappy
China
as
the
world's
second,"
said
Scoi
Dicken,
the
person's
life,
when
they
must
decide
whether
to
is
impor;ng
luxury.
Chinese
consumers
account
general
manager
of
Land
Rover
China.
stay
among
the
Amish
for
the
rest
of
their
lives,
or
for
nearly
25
percent
of
global
luxury
sales,
join
the
"English."
This
period
is
called
followed
by
Americans,
Europeans
and
Japanese,
There
is
SBll
Room
for
"Made
in
China"
Luxury
-‐-‐
Rumspringa
-‐-‐
the
Pennsylvania
Dutch
word
for
each
taking
around
20
percent
of
pie.
In
fact,
Alongside
Jaguar,
Land
Rover
and
Car;er
of
"running
around."
The
film
showcases
several
China
has
become
the
fulcrum
of
the
global
Western
pres;ge,
there
s;ll
resides
an
Amish
young
adults
going
through
Rumspringa,
luxury
industry.
"The
euro
zone
is
a
sizable
opportunity
for
"Made
in
China"
luxury.
"China's
who
drink,
smoke
and
even
get
hooked
on
meth
market,
but
today
the
growth
reserve
is
in
the
high-‐end
market
is
highly
fragmented,
with
no
because
they
think
it's
what
the
"English"
do.
emerging
countries,
and
par;cularly
in
China,
single
brand
domina;ng
individual
product
Their
"English"
reference
point
is
derived
from
whose
demand
is
pulling
the
en;re
sector,"
said
categories,"
writes
the
WSJ.
"This
is
star;ng
to
stories
and
likely
tall
tales,
therefore,
some
Amish
Isabelle
Ardon,
head
of
Paris-‐based
SG
Ges;on's
change:
In
each
luxury-‐goods
category,
five
brands
destroy
their
lives
to
experience
the
exaggerated
luxury
fund.
Even
while
the
Euro
market
is
account
for
around
50%
of
the
market,
indica;ng
"English"
perspec;ve.
suffering
amid
the
current
financial
crisis,
pres;ge
early
signs
of
concentra;on."
Shanghai
Tang
is
an
brands
are
finding
security
in
China's
growing
authen;c
emerging
pres;ge
fashion
house
that
China's
nouveau
riche
are
experiencing
a
affluence.
appeals
to
Chinese.
The
brand
blends
China's
Rumspringa
of
their
own,
but
careful
to
not
swing
subtle,
delicate
cultural
heritage
with
Western
too
far.
The
Chinese
market
is
trying
to
find
its
Western
PresBge
Brands
Flock
to
China
-‐-‐
"For
the
flare.
In
fact,
Fast
Company
dubbed
Shanghai
Tang
pres;gious
iden;ty
among
established
luxury
Chinese
consumer,
luxury
is
synonymous
with
"China's
first
global,
upscale
brand."
brands
in
Europe
and
America.
In
fact,
many
Western
heritage.
Today
there
are
no
big
Chinese
affluent
Chinese
reject
"Made
in
China"
products
luxury
brands,
so
there
are
no
compe;tors,"
As
China's
nouveau
riche
seile
into
their
new
in
lieu
of
superior
imported
quality.
"China
is
not
Ardon
said.
Western
brands,
Car;er,
Louis
status
as
purveyors
of
luxury,
expect
the
Shanghai
an
easy
market.
Chinese
consumers
are
very
Vuiion,
Hermès,
Tiffany
&
Co
or
Gucci,
have
Tang's
-‐-‐
a
confluence
of
China's
rich
cultural
demanding;
they
don't
like
'made
in
China'
established
a
foothold
in
China
through
years
of
heritage,
entrepreneurial
spirit
and
vision
-‐-‐
to
products,"
said
Florent
Perrichon,
CEO,
Cerru;.
brand
building
in
the
country,
reports
the
Wall
make
in-‐roads
into
the
country's
blossoming
Much
like
Amish
youth
trying
to
find
their
Street
Journal.
Indeed,
Tiffany
&
Co
reported
that
luxury
market.
Authen;c
Chinese
heritage,
as
iden;ty,
Chinese
too
will
undergo
a
cultural
sales
at
its
Asian
stores
opened
last
year
Tang
illustrates,
cannot
be
imported
and
presents
transforma;on
whereby
"Made
in
China"
will
be
(excluding
those
in
Japan)
had
risen
by
21
percent
and
opportunity
for
"Made
in
China"
luxury
to
less
synonymous
with
;cky
tacky
and
more
with
during
last
quarter,
with
11
stores
in
China.
Jaguar
flourish.
AFer
all,
heritage
is
a
cornerstone
of
rich
cultural
heritage,
entrepreneurial
spirit
and
and
Land
Rover
are
opening
a
new
plant
in
luxury
and
China
is
rich
with
it.
quality.
Nanchang,
East
China
soon.
"Next
year,
Land
2010
Luxury
Trend
Report
5
6. Luxury's
Love
Affair
with
High-‐Tech
Robot
housemaids,
electric
cars,
personal
the
sophis;cated
cocktail,
champagne
and
wine
Tech
Badge
of
Luxury
-‐-‐
“Although
Apple
did
not
commuter
airplanes
and
all
the
insanely
bar,
MiLounge
Mar;ni.
set
out
to
be
a
luxury
brand,
it
exhibits
most
of
impossible
kitchen
gadgetry
imaginable.
For
the
quali;es
that
luxury
brands
should
strive
for
nearly
a
century,
the
World's
Fair
has
illustrated
When
patrons
enter
the
door,
they
must
log
in
-‐-‐
in
the
21st
century,”
says
Milton
Pedraza,
Luxury
American's
strong
associa;on
between
luxury
and
much
like
Facebook
or
FourSquare.
Once
inside,
Ins;tute
CEO.
In
its
quest
for
the
most
beau;ful,
technology.
Tech
enhances
our
ability
to
connect
users
can
play
with
interac;ve,
touchscreen
awe-‐inspiring,
user-‐friendly
device,
Apple
created
with
the
world
and
how
the
world
connects
with
MiTables,
where
they
can
chat
with
other
tables,
a
leading
luxury
device.
The
tech
company
us.
It
maximizes
our
;me
and
extends
our
sign
into
Facebook,
view
the
menu
and
access
“delivers
fabulous
product
design,
unbeatable
pleasure.
It
helps
us
navigate
a
world
flooded
in
exclusive
content
and
offers.
func;onality,
and
a
powerful
in-‐store
experience
informa;on
while
libera;ng
us
from
its
to
consumers
of
all
ages
that
many
luxury
brands
complexi;es.
Complete
Tech
Immersion
-‐-‐
Car
phones
were
the
lack."
height
of
luxury
at
the
dawn
of
the
mobile
phone
era.
High-‐power
CEO's
tooling
around
in
company
As
with
many
pres;ge
brands,
accessories
makes
The
intersec;on
of
technology
and
luxury
is
more
limos
epitomized
luxury
nearly
a
two
decades
the
product
pop
and
serves
as
a
badge
of
your
apparent
and
pervasive
in
the
luxury
market
ago.
Hartman's
System-‐On-‐a-‐Chip
(SOC)
is
personality.
iSobre
knows
this
more
than
anyone.
today
than
ever
before.
From
social
networking
ushering
auto
tech
into
a
new
age
of
connec;vity.
iSobre's
offers
an
iPad
made
of
100
per
cent
restaurants,
to
vehicle
office
management
Hartman
is
developing
a
premium
automo;ve
leather,
with
double
s;tching
all
around
with
a
soFware,
to
accessorizing
luxury
products,
infotainment
system
for
entry-‐level
luxury
turned-‐edge
finish
and
two
blue
leather
central
technology
is
the
height
of
luxury.
Today's
tech
vehicles.
buions.
The
iSobre's
Bumble
Bee
iPad
case
tells
speaks
to
several
pillars
of
luxury:
exclusivity,
the
world
not
only
do
you
love
sexy
tech,
but
you
badge
of
importance
and
an
immersive
SOC
enables
customers
to
integrate
smartphone
know
how
to
dress
it
up.
experience.
devices
(iPhone,
Blackberry,
Android)
to
deliver
mobile
office
features
within
their
vehicle.
That
American's
associa;on
between
all
things
tech
In-‐the-‐Know
Luxury
Tech
-‐-‐
MiWorld
leverages
a
means
e-‐mail,
SMS,
tex;ng
and
calendar
and
luxury
has
accelerated
at
an
astonishing
rate
main
tenant
of
luxury:
exclusivity.
The
tech-‐savvy
func;ons
all
within
arms
reach.
That's
just
the
since
the
1950s
World's
Fair.
In
fact,
even
many
Jahannesburg
restaurant
taps
into
affluent
Gen
beginning...
SOC
delivers
3-‐D
route
graphics,
real-‐ non-‐affluent
individuals
splurge
on
a
$300
Yers
and
Gen
Xers
lust
for
exclusivity
and
techno-‐ ;me
traffic
updates,
latest
map
info,
construc;on
smartphone
with
a
$100
monthly
plan.
A
gadgetry.
To
par;cipate
in
MiWorld,
patrons
must
zone
no;fica;ons,
speed
limits,
etc.
Though
there
smartphone,
tablet,
high-‐tech
soFware
system
for
receive
an
invita;on
and
secret
code
to
register
are
arguably
many
hazards
with
such
a
system,
your
car
or
an
invite
into
a
members-‐only
cocktail
online.
The
in-‐the-‐know
customers
can
visit
SOC
epitomizes
auto
luxury.
lounge
are
ways
individuals
-‐-‐
non-‐affluent
and
MiWorld's
modern
cocktail
bar,
MiBar
Mar;ni
or
high
net
worth
individuals
alike
-‐-‐
display
status.
Much
like
a
robot
housemaid
in
the
1950s
World's
Fair.
2010
Luxury
Trend
Report
6
7. The
Luxury
of
Once-‐In-‐A-‐Life;me
Experiences
You
are
assigned
a
mission
in
which
you
will
train
town
in
the
Colorado
wilderness
or
pay
$17,500
a
with
former
M16
agents.
Your
journey
will
take
night
for
the
Dunton
Hot
Springs.
you
around
the
world
where
you
must
complete
challenging
tasks
that
require
both
brains
and
Ar;sans
of
Leisure
Travel
and
Quintessen;ally
brawn.
Do
you
wish
to
accept?
Many
high
net
understand
the
power
of
once-‐in-‐a-‐life;me
worth
individuals
are
asking,
where
do
I
sign
up?
experiences
and
re-‐experiencing
them
through
The
seven-‐figure
Indiana-‐Jones-‐inspired
vaca;on
stories.
More
unique
stories
you
have,
the
more
is
one
of
many
thrill-‐seeking
experiences
interes;ng
you
become.
For
instance,
who
would
coordinated
by
the
members-‐only
luxury
have
beier
life-‐stories:
dare-‐devil
billionaire
concierge
service,
Quintessen;ally.
Richard
Branson
or
tech
tycoon
Bill
Gates?
Sure,
Quintessen;ally
is
leading
a
trend
that
curates
not
Gates
could
wax
poe;c
about
soFware
systems,
just
extravagant
vaca;ons,
but
extraordinary
but
Branson
could
regale
you
with
stories
of
hot
experiences
that
yield
incredible
stories.
air
balloon
races
and
sky
diving.
"These
days
people
are
looking
for
those
once-‐in-‐ More
affluent
individuals
are
searching
for
a-‐life;me
moments,"
says
Quintessen;ally's
Branson-‐esque
adventure
that
pair
risk
(exo;c
founder,
Aaron
Simpson
to
the
WSJ.
"Genng
a
cultural
explora;ons)
with
reward
(fascina;ng
peek
into
a
closed-‐off
sector
of
the
pyramids
or
stories)
to
yield
incredible
experiences.
It's
about
cruising
through
Europe
in
a
Bentley
can
be
a
very
finding
your
passion
-‐-‐
whether
it's
an
Indiana
different
experience
than
your
average
vaca;on."
Jones
adventure
or
archeologist
-‐-‐
and
realizing
Indeed,
extreme
luxurious
vaca;ons
are
less
the
life
you
could
have
had
through
exclusive
about
pampering
and
island
getaways
and
more
experiences.
It's
not
enough
to
put
your
mind
on
about
access
to
exclusive
experiences.
auto
pilot,
if
you
dreamed
of
flying
in
an
F-‐47,
you
are
the
pilot.
And
concierge
services,
such
as
“Our
luxury
travelers
are
fascinated
by
the
history
Quintessen;ally
and
Leisure
Travel,
are
making
in
Israel
and
nearby
Turkey
and
really
want
to
that
possible.
have
in-‐depth
cultural
experiences,”
says
Ashley
Isaacs
Ganz,
founder
of
Ar;sans
of
Leisure
Travel
to
the
Luxury
Ins;tute.
Ganz
explains,
his
high
net-‐worth
clients
seek
thrilling,
unexploited
experiences,
such
as
ren;ng
a
rehabbed
ghost
2010
Luxury
Trend
Report
Image by Rob Owen-Wahl from Stock.Xchng
7
8. Recession-‐Proof
Luxury:
Timelessness
&
Enduring
Quality
If
you
had
a
choice
between
buying
one
uber
"I
believe
the
American
male
is
largely
brands
need
to
dial-‐up
the
longevity,
both
in
trendy
dress
this
season
and
another
trendy
dress
uneducable.
We
need
to
focus
on
the
segment
of
quality
and
style,
of
its
products
to
make
their
next
or
buying
a
;meless
dress
this
season
and
a
males
that
have
real
discerning
taste,
but
I
can
brand
a
long-‐term
investment.
;meless
cardigan
next,
which
would
you
choose?
also
say
that
even
the
undiscerning
American
At
year
two,
you
could
either
have
one
dress
or
male
is
a
smart
consumer.
That
person
is
looking
Many
high
net
worth
individuals
are
savvy
one
dress
and
one
cardigan.
Inves;ng
in
;meless
for
a
product
that
is
durable,
that
is
classic,
that
shoppers
that
buy
less
on
impulse
and
think
luxury
items
is
a
way
to
maximize
spending
dollars
can
stand
the
test
of
;me,"
says
Lew
Frankfort,
about
purchases
in
a
calculated,
well-‐thought-‐out
in
recessionary
;mes
while
maintaining
an
Chairman
and
CEO
of
Coach.
In
general,
classic
manner.
As
we've
seen
in
2009,
trendy
fashion
affluent
lifestyle.
More
and
more,
Gen
X
men
and
and
;meless
value
makes
sense
when
considering
houses
are
the
first
out
the
door
due
to
their
Gen
Yers
consider
luxury
an
investment
and
some
men's
fashion
versus
women's
fashion.
ephemeral
designs
while
enduring
quality
pres;ge
brands,
such
as
Hermes,
are
benefi;ng
-‐-‐
pres;ge
brands,
such
as
Hermes
and
Louis
even
when
;mes
are
lean.
Women's
fashion
dras;cally
ebbs
and
flows
with
Vuiion,
thrive.
Although
the
recovery
is
in
the
the
seasons
whereas
men's
fashion
receives
purview,
high
net
worth
individuals
are
s;ll
wary
The
overall
luxury
market
fell
during
this
subtle
adjustments
on
exis;ng
designs.
For
of
spending
superfluously
but
interested
in
recessionary
dip.
It
dropped
10
percent
in
the
U.S.
instance,
slightly
v-‐necked
shirts
or
a
small
whale
inves;ng
in
luxury.
and
8
percent
worldwide
in
2009.
Trendy
fashion
paiern
or
a
royal
blue
instead
of
a
faded
blue
or
a
houses
such
as
Chris;an
Lacroix
went
belly-‐up,
European
cut
versus
relaxed
might
be
en
vogue
meanwhile
Hermès
managed
to
increase
sales
by
for
several
seasons.
For
the
most
part,
men's
8.5
percent,
including
an
11
percent
bump
in
the
fashion
remains
constant
and
therefore
inves;ng
final
quarter
and
an
astonishing
20
percent
gain
in
in
one
product
could
last
many
more
seasons
the
Americas.
“Hermès
isn’t
about
trendy,”
said
than
women's
uber-‐trendy
drop-‐crotch
trousers
-‐-‐
Bob
Chavez,
the
CEO
of
Hermès’s
American
reminiscent
of
Hammer-‐;me.
opera;on
to
the
Luxury
Ins;tute.
“It
isn’t
even
a
fashion
house.
We
are
a
house
of
craFsmanship.
Gucci
drop-‐trousers
might
pique
the
interests
of
We
are
commiied
to
making
products
that
have
some
young
fashionistas,
but
for
the
most
part,
an
enduring
quality
and
are
very
versa;le.”
Gen
Yers
view
luxury
as
an
investment
-‐-‐
and
as
such,
have
a
discerning
eye
for
the
quality.
Unlike
Heritage,
classics
and
enduring
quality,
as
found
its
genera;onal
counterparts,
Gen
Y
is
less
in
Hermes
and
Louis
Vuiion
products,
are
concerned
with
heritage
than
excep;onal
quality.
powerful
selling
points
to
during
recessionary
Heritage
brands
might
find
it
difficult
to
market
its
slumps
-‐-‐
par;cularly
to
Gen
X
men
and
Gen
Yers.
spot
in
history
to
turn
on
Gen
Y.
Instead,
luxury
Image by homero chapa from Stock.Xchng
2010
Luxury
Trend
Report
8
9. Luxury:
For
What
It's
Worth
What
makes
a
pair
of
Jimmy
Choo
heel
sandals
Indiana
Jones-‐inspired
adventure
or
an
immersion
leaps
and
bounds
by
offering
daily
flash
sales
to
worth
$1,150?
Or
a
$17,500
price
tag
for
a
night
in
Turkey
and
Israeli
cultures.
For
those
high
net
its
"exclusive"
2
million
invite-‐only
members.
Gilt
at
the
Dunton
Hot
Springs?
In
essence,
what
is
worth
individuals
seeking
exclusive
value,
very
expects
to
pull
in
$500
million
in
revenue
in
2010
luxury
worth?
Everyone
perceives
products
and
short
supply
weighs
heavier
than
quality.
and
in
2009,
just
two
years
aFer
its
launch,
it
service
value
differently.
You've
likely
been
in
posted
revenues
of
$170
million.
To
counter
Gucci
or
Hermes
and
said,
really?
A
shoe-‐shaped
Enduring
Value
-‐
ArBsan
CraVsmanship
Pedraza's
point,
even
a
10
percent
discount
on
Gucci
key
ring
is
$170.
Really?
For
some,
it's
worth
$1,150
Jimmy
Choo
shoes
($1,035)
is
s;ll
not
it.
"We
see
consumers
as
the
ul;mate
experts
on
The
economic
recession
has
the
luxury
industry
accessible
for
most.
brand
pres;ge
and
this
year
they
are
vo;ng
on
returning
to
its
core:
enduring
quality
[LINK
TO
the
en;re
perceived
price/value
equa;on
of
the
TIMELESSNESS
POST].
Hermes
and
Louis
Vuiion
To
make
your
luxury
product
or
service
valuable,
brand
as
well
as
pres;ge,”
said
Milton
Pedraza,
have
flourished
amid
harsh
economic
storms,
you
must
first
start
with
those
consumers
CEO
of
the
Luxury
Ins;tute.
Brand,
quality,
rarity
while
other,
trendier
fashion
houses
such
as
passionate
about
your
category.
For
instance,
all
play
a
role
in
how
we
valuate
pres;ge
products
Chris;an
Lacroix
have
gone
belly-‐up.
Hermès
targe;ng
the
famous,
stylis;cally
challenged
and
experiences.
As
everyone
derives
value
managed
to
increase
sales
by
8.5
percent,
Warren
Buffet
to
don
a
new
Gucci
suit
is
differently,
there
are
three
main
criteria
that
help
including
an
11
percent
bump
in
the
final
quarter
worthless,
as
Buffet
finds
liile
value
in
fashion.
us
decide
whether
a
luxury
product
or
service
is
and
an
astonishing
20
percent
gain
in
the
But
marke;ng
an
Indiana
Jones-‐inspired
vaca;on
worth
it:
Americas.
In
fact,
Louis
Vuiion
held
an
event
to
thrill-‐seeking
high
net
worth
individuals
like
called
“ The
Art
of
CraFsmanship,”
to
educate
Richard
Branson
is
smart.
To
obtain
a
high
Exclusive
Value
-‐
Uniqueness
young
designers
on
the
importance
of
old-‐ perceived
value
in
your
customers
eye,
it's
about
fashioned
values
such
as
ar;sanship
and
the
finding
the
right
customers
and
accentua;ng
your
By
economic
standards,
value
is
derived
from
mastery
of
tradi;onal
skills
at
New
York
City's
products
to
appeal
to
their
passion
points.
supply,
demand
and
barrier
to
entry.
Short
supply,
Fashion
Week.
high
demand
and
high
barrier
to
entry
drives
the
luxury
market.
Accordingly,
only
a
select
few
high
Price
Value
-‐
Deal-‐seekers
net
worth
individuals
can
afford
to
buy
a
$1.42
million
Lamborghini
Reventon
or
even
a
$170
There
is
always
a
risk
to
integrity
whenever
a
Gucci
key
ring.
In
fact,
only
20
individuals
own
the
pres;ge
brand
discounts,
says
Milton
Pedraza,
Reventon,
as
they
are
so
rare.
Uniqueness
not
CEO
of
the
Luxury
Ins;tute.
A
discount
suggests
only
applies
to
products,
but
experiences
as
well.
the
original
perceived
value
was
too
high
and
Quintessen;ally
and
Ar;sans
of
Leisure
Travel
essen;ally,
you
were
genng
ripped
off.
Despite
design
custom
vaca;on
packages
ranging
from
Pedraza's
foreboding,
Guilt
Groupe
has
grown
by
2010
Luxury
Trend
Report
9
Image by Svilen Milev from Stock.Xchng
10. Personal
Renewal
with
Purpose
All
luxury
fulfills
an
emo;onal
need.
OFen
;mes,
Lululemon
Athle;ca
takes
a
different
approach
to
that
need
is
social
relevancy
and
status
among
revitalizing
personal
energy.
Where
Terrain
seeks
peers.
Think
about
what
a
Louis
Vuiion
bag
says
to
rejuvenate
through
a
natural
environment,
about
a
person:
affluence
and
they
should
be
Lululemon
takes
a
more
ac;ve
approach.
recognized
for
it.
There
is
a
rising
trend
in
luxury
that
stretches
beyond
superficial,
Louis
Vuiion
The
luxury
healthy
living
retail
site
promotes
and
D&G
status
symbols,
and
speaks
to
physical
renewal
through
yoga,
Pilates
and
other
rejuvena;on,
personal
energy
and
sustainability.
forms
of
exercise.
Its
exclusive
community
is
populated
by
former
Olympians
and
athletes
that
No,
millionaires
are
not
holding
hands
around
a
inspire
others
to
live
strong.
These
brand
camp
fire,
singing
Koombaya.
This
emerging
class
ambassadors
promote
their
unique
healthy
of
high
net
worth
individuals
seek
to
preserve
lifestyle
through
images,
free
demonstra;ons
and
themselves
and
the
world
around
them.
Two
each
month
members
are
given
a
challenge.
similar,
yet
different,
brands
capturing
this
rising
trend
are
Terrain
and
Lululemon
Athle;ca.
Terrain
and
Lululemon
represent
an
emerging
segment
in
the
luxury
category.
Renewing
Terrain,
an
outdoor
home
and
garden
store
personal
energy
through
premium
products,
such
Image vide Terrain
owned
by
Urban
Ou|iiers,
is
a
calming
retreat
as
a
palace
door
ruin
from
Terrain
or
high-‐end
into
nature.
Chairs,
tables,
and
pots
look
as
if
it
exercise
gear
at
Lululemon,
is
only
half
the
grew
naturally
in
the
store.
Every
piece
of
picture.
furniture
seems
ar|ully
hand-‐selected
from
yard
sales
and
foreign
ruins.
That's
not
to
say
you
feel
Both
emerging
luxury
brands
offer
an
holis;c
like
you're
in
a
junk
yard.
branded
experience
either
through
a
relaxing
in-‐
store
environment
or
empowered
online
Terrain
taps
into
a
central
element
of
luxury:
community.
Terrain
and
Lululemon
are
making
rarity.
The
outdoor
home
and
garden
store
is
luxury
less
superficial
and
more
sustainable
to
about
30
percent
re-‐used
products,
but
the
both
the
environment
(recycled
products
at
company
carefully
selects
objects
that
embody
Terrain)
and
individual
energy
(yoga
and
pilates
at
sophis;cated,
organic
style.
Each
object
feels
Lululemon).
natural,
sustainable
and
hand-‐selected
just
for
your
home.
Image vide Terrain
2010
Luxury
Trend
Report
10
11. Passion
Immersion
Drives
Niche
Luxury
A
recent
study
of
luxury
handbags,
featured
in
passionate
about
Sconsh
fashion
and
2)
he
brand.
The
second
;er
of
the
community
is
made
Psychology
Today,
suggests
once
the
price
no;ced
people
like
him,
that
were
in-‐the-‐know,
up
of
Lululemon-‐veied
athletes
that
embody
the
exceeds
$300,
the
logo
decreases
in
size.
But
why
wearing
the
same
designer.
brand's
healthful
living
philosophy.
pay
more
for
a
brand
without
the
recogni;on?
Sterling
Lanier,
President
of
the
market
research
Passion
Immersion
in
Services
When
we
look
at
where
people
allow
themselves
consultancy
Chaier,
performed
in-‐home
case
to
splurge,
it's
in
a
space
high
net
worth
studies
of
affluent
Gen
Yers
to
provide
insight.
In
Luxury
concierge
services
also
help
high
net
worth
individuals
are
passionate
about.
Whether
they
one
of
Sterling’s
audience
tes;monials,
a
Gen
Yer
individuals.
Instead
of
providing
rare
fashions,
are
passionate
about
niche
designer
brands
or
said
he
purchases
shirts
from
a
Sconsh
designer
they
cater
quite
the
opposite
service
by
offering
once-‐in-‐a-‐life;me
adventures
or
being
a
part
of
with
around
three
small
stores
in
Europe.
With
personalized,
once-‐in-‐a-‐life;me
experiences.
an
exclusive
athle;c
club,
they
spend
money
with
only
a
small
colored
tag
to
iden;fy
the
designer,
These
experiences
are
typically
derived
from
the
heart.
Products
and
services
help
consumers
he
gets
gra;fica;on
seeing
others
wear
the
individual
passion
points,
such
as
quest
for
feel
comfort
in
actualizing
their
dreams
of
being
Sconsh
brand.
As
consumers,
we
iden;fy
adventure,
or
"if
I
wasn't
a
____
I
would
have
in-‐the-‐know,
exploring
the
world
and
being
the
personali;es
by
the
brands
and
products
we
been
a
______."
For
instance,
if
you
wanted
to
be
best
of
the
best.
Niche
luxury
offers
a
chance
for
purchase.
And
as
Sterling's
tes;monial
illustrates,
an
archaeologist,
Ar;sans
of
Leisure
Travel
offers
high
net
worth
individuals
to
be
themselves,
in
we
strive
to
emerge
ourselves
in
brands
that
help
a
Turkey
and
Israel
cultural
vaca;on.
Or,
if
you
the
most
fantas;c
way.
build
our
iden;;es.
would
have
been
a
dare-‐devil,
Quintessen;ally
offers
an
Indiana-‐Jone-‐inspired
adventure.
Passion
Immersion
in
Products
Passion
Immersion
in
CommuniBes
For
many
high
net
worth
individuals,
luxury
is
about
finding
your
passion,
immersing
yourself
in
Passionate
niche
communi;es
rally
around
its
niche
culture
and
being
in-‐the-‐know.
Brands
purchasing
decisions,
as
in
Sterling's
illustra;ve
are
picking
up
on
this
trend,
says
said
Luxury
example,
but
also
connect
like-‐minded
individuals
Ins;tute
Chief
Execu;ve
Milton
Pedraza:
"Brands
in
a
meaningful
way.
Lululemon
Athle;ca
excels
at
that
are
seen
as
experts
in
a
few
categories
tend
the
laier.
Lululemon
is
a
high-‐end
athle;c
apparel
to
manage
those
por|olios
very
well.
Sort
of
company
that
empowers
its
community
to
punng
one
egg
in
a
basket
and
then
taking
good
interact
and
engage
with
others
-‐-‐
using
the
brand
care
of
it."
Indeed,
Sterling's
research
suggests
as
a
conduit.
The
athle;c
apparel
company
enlists
two
pleasure
points
with
niche
brands.
Using
elite
ambassadors
-‐-‐
comprised
of
award-‐winning
Sterling's
example,
the
affluent
Gen
Yers
is:
1)
athletes,
such
as
Olympians
-‐-‐
who
wear
the
Image via Lululemon.com
2010
Luxury
Trend
Report
11
13. We create purposeful impact for the long-run
Sparxoo is pioneering the next generation of business that is founded in the principles of:
• Social entrepreneurship
• Real responsibility
• Creative community
• Courageous leadership
We fuse left-and-right brain thinking Branding
in:
Digital Business
Development Development
We build meaningful relationships
Sparxoo builds sustainable relationships while delivering meaningful impact on projects with a purpose.
We are expanding our network of socially minded leaders and hope to become a leader in this category.
2010
Luxury
Trend
Report
13
14. 4400 West Spruce Street, #333
Tampa, FL 33607
646-345-1800
www.Sparxoo.com
David Capece Katherine Parsons Ethan Lyon
CEO Senior Strategist Senior Writer
David@Sparxoo.com Katherine@Sparxoo.com Ethan@Sparxoo.com
2010
Luxury
Trend
Report
14