Final Project for the Design Management summer intensive course 2014 at the Parsons the New School for Design by Vicky Cheng and Eda Tankal.

1. THE FUTURE OF
LUXURYFASHION
‘True luxury is time, silence
and space’
“I believe in a world which is losing
the meaning of quality values, often
preferring excessive visibility
instead of quality, it is very
important to keep high quality
standards and focus on good taste
and exclusivity.”
Diego Della Valle

2. DIGITALISATION
DEMOCRATIZATION
FORCES
&
FAST FASHION
EMERGING MARKET
DYNAMICS

3. Approximately 100,000
NYFW-related photos
were posted, with more
than 33,000 unique
users actively sharing
those images on the
DIGITALIZATION
“Consumers at every
label have become
obsessed with
discovering and
sharing things they
like.”
“In some
instances, consumers
are becoming virtual
shopkeepers
themselves.”
“There’s a cult for
taste sharing, wanting
to show yourself to be
a tastemaker or style
leader.”
Lucie Greene of The Future Laboratory
Instagrams has 150
million monthly
users, whose ages
are between 18 and
29 and about 17%
of them with
incomes of $ 75000
and above. By
Deloitte
social network.
Top hash tags for the event
included: #nyfw (38,223
photos); #mbfw (20,089
photos); #fashionweek
U
(19,635 photos); and
#newyorkfashionweek
(7,562 photos).

4. DEMOCRATIZATION
&
FAST FASHION
“Luxury is now
for the masses
and the
classes”
PPR Chairman François-
Henri Pinault
“Luxury as a term
has become
bloated, overused
and meaningless.”
Rebecca Robins and Manfredi Ricca
Zara has opened 44
stores in China since
Even during the
recession Zara owner
Fast Retailing booked
revenues up 29% from
2008-09, followed by
Primark (up 24%) and
H&M (up 19%).
2006. By just-style.
com, an online
textile news website.
Currency-adjusted luxury
goods sales growth for the
wold's 75 luxury goods
companies was 12.6% in
2012. By Deloitte's 7th
annual Global Powers of
Consumer Products report.

5. EMERGING
MARKET
DYNAMICS
Wealth centres are shifting
from the west to the east
(and also to the south) and
middle class affluence is
exploding around the globe.
This is set to
continue, the
key being the
Middle East and
African regions.
Looking at the first
9 months of 2013,
“Rest of World”
sales grew 22%
year-on-year,
compared to only
4% in Asia.
2014 prediction for the fastest
growing luxury hotspot is therefore
Qatar. The number of millionaires in
the country is set to grow by 7% to
reach 63,000 in 2014, and
meanwhile, their spending power in
Dubai has already made them the
biggest luxury buyers in the region.

6. 2013 was all about ‘stealth wealth’
which has moved to re-emergence of
self-expression and individualism after
the recession
HYPOTHESIS

7. CURRENT
TRENDS
EXPERIENTIAL
CRAFTSMANSHIP
&
RE-ISSUE
TECHNIQUE
& CONTROL
PARTNERSHIP
WITH ART
ULTRA-LUXURY/
EXCEPTION

8. EXPERIENTIAL
Businesses have decided
that now is the time to
act upon this trend:
niche label-heavy
retailers 10 Corso Como,
Lane Crawford, and
Galeries Lafayette all
recently opened
mainland locations.
At Burberry we
witnessed the debut
of their first digitally
integrated retail
offering, where the
architecture of the
store was based on
the site map of their
online flagship.
RFID tags fitted into
garments enabled
mirrors to switch into
digital screens, which
then displayed product
details and craftsmanship
stories.
“As products move towards
the exceptional, physical
retail moves further
towards the experience ”

9. TECHNIQUE
& CONTROL
“Hermès has no desire to
become “masstige” – a mass
producer of prestige
goods,” says CEO, Patrick
Thomas.
In the past 20 years the
number of artisans Hermès
employs to make its leather
goods by hand has grown from
300 to 2,000 but, as Thomas
points out, each artisan takes
three years to train, slowing
the potential production time.
A clutch of brands has
already started using direct
control of the supply chain.
Accessories designer Nancy
Gonzalez owns her own
reptile farms; Louis Vuitton
has entered a joint venture
with Singapore-based Heng
Long for its exotic leather;
Loro Piana has bought silk
farms in Myanmar.

10. CRAFTSMANSHIP
&
RE-ISSUE
Many Panerai
Panerai, which was
founded in 1860 and
spent a bulk of its early
years supplying watches
to the Italian Royal Navy,
appeals to customers
looking to buy a piece of
enthusiasts prefer their
watches scuffed,
imperfect and showing
signs of wear.
the past.
“Panerai watches were silent
witnesses to stories of great
human courage and this laid the
foundation for the brand’s
extraordinary uniqueness,” says
Officine Panerai CEO Angelo
Bonati. “We’ve made a
commitment not to modify the
product or the message that the
brand expresses,” he says.
2014 promises to be
the year of “métiers
d’art” for haute
horlogerie reveals
Michel Jeannot,
Publisher,
WtheJournal
All the watchmaking brands older
than a century called upon the
métiers d’art in the past, as they
were initially inseparable from the
realm of fine watchmaking, and
today we are seeing a trend to
revive and showcase this
expertise.

11. PARTNERSHIP
WITH ART
ULTRA-LUXURY/
EXCEPTION In 2013, Hermes released
four Birkin Bags made of
gold and diamonds,
designed by Pierre Hardy,
which took over two years
from concept to realisation.
Each was audaciously priced
at $1.9 million.
Lancôme has partnered with
Baccarat and musical
machinery crafters Reuge, to
create La Vie Est Belle
L’Edition Féérique, which will
sell at Selfridges for €50,000.
The bottle of perfume is
housed inside a handcrafted
crystal music box, which plays
from 144 Baccarat crystal
notes, underneath a
chandelier with 133 drops and
48 tubes of crystal. Only 15
will be released.

12. CODES
CONTROL
&
PERFECTION
EXPERIENCE/
PERSONALNESS
EXCLUSIVITY ARTISTIC
STORY
TELLING/
VINTAGE/
HERITAGE

13. OUR CLIENT
LVMH
LVMH has more than 30 luxury brands and more than 60 prestigious
brands in its portfolio (including wines and spirits, retailing and media)

14. RECENT
STRATEGIC
LAUNCHES
TOWARDS
EXPERIENCE
Louis Vuitton have long since
offered clients the
opportunity to have their
initials imprinted on their
leather goods and luggage,
yet Vuitton took this idea one
step further with the rollout
of Haute Maroquinerie to
several key Maison concept
stores.
During the process, clients work
with in-house experts to decide
on the handbag style, colour,
leather and finish – up to 80,000
combinations – which is then sent
to the label’s workshops in
Asnières, Paris, taking between six
months and a year to be made.
Prices range between €5,000 and
€15,000.

15. Turn shopping
and usage of
the product to
an experience
Tell the
story,
out and up
front
Mind the
‘exclusivity’
Always pay
attention to
the details,
quality.

16. Luxury needs to rediscover itself in the 21st
century. New luxury ethos will reject the current
notion of democratic or accessible luxury. Luxury
that embraces the spirit of craftsmanship as its
operating model. Luxury that doesn’t hold profits
as its primary objective, but rather the pursuit of
excellence to create the most rare and beautiful
objects.
Future of Luxury Fashion

17. THANK YOU FOR LISTENING!
Eda & Vicky