June 11th, 2009
Luxury groups are turning to films, the Internet and private dinners to attract customers as they search for more cost-effective ways to advertise to fight falling sales, executives told the Reuters Global Luxury Summit.
Hermes is increasing its overall marketing budget by just under 10 percent this year to a touch above 100 million euros but only a third will be on advertising, Chief Executive Patrick Thomas said.
“The rest of the budget goes on shop windows, exhibitions, private public relations operations,” he said, including invitations to 10-15 customers to themed store openings.
June 9th, 2009
Global sales of luxury goods will likely fall again in 2010 but return to growth in 2011, an industry expert said on Monday.
“The worst thing that can happen is that we have another year of negative growth in 2010 … But I see it picking up definitely by 2011,” said Scilla Huang Sun, who runs a $30 million luxury fund for Julius Baer.
Speaking at the Reuters Global Luxury Summit, she forecast global sales of luxury goods would fall 5 percent to 10 percent this year but said suggestions the economic crisis meant the death of the luxury market were way off the mark.
June 9th, 2009
French luxury goods group Hermes has resorted to breeding its own crocodiles on farms in Australia to try to meet demand for its leather bags, its chief executive told Reuters on Monday.
Customers sometimes have to wait several years for certain exotic-skin bags, which can fetch over 35,000 euros ($48,410).
“It can take three to four crocodiles to make one of our bags so we are now breeding our own crocodiles on our own farms, mainly in Australia,” Patrick Thomas told the Reuters Global Luxury Summit in Paris.
June 8th, 2009
Hermes believes turbulence could hit the global luxury goods industry for the next two years and has put some expansion plans on hold, the French fashion and leather goods group said on Monday.
Watches and jewelry will take at least two years to recover from the current luxury spending downturn but fashion sales could pick up faster, Hermes Chief Executive Patrick Thomas told the Reuters Global Luxury Summit in Paris.
“In my opinion, turbulence will last rather long, maybe two years,” Thomas said.
The world’s second-largest luxury goods group in terms of market value behind LVMH said it had postponed the opening of two shops in China and two leather goods plants in France.
