Posts Tagged ‘designers’

Gucci’s Red And Green Racing Stripes Led It Straight To 1st Place

Friday, September 25th, 2009
Did your favorite designer make the top 5?
  • Nielsen surveyed consumers around the world about their favorite luxury brands. Gucci made first place, followed by Chanel, Calvin Klein, Louis Vuitton, and Christian Dior.
  • The study attributes much of Gucci’s success to CEO Mark Lee. Since he became president in 2004 and then CEO in 2005, sales have soared.
  • Designer goods were found to be most desirable in emerging markets where consumers also hold knock-offs in very low regard. North Americans were found to be more indifferent to authenticity of designer-labeled products.

Facts & Figures

  • 1/3 of consumers in the United Arab Emirates and Hong Kong buy designer brands, compared to only 7% of North Americans.
  • On North Americans’ lack of interest in luxury brands, 35% said they wouldn’t want to buy designer goods even if cost were not an issue.
  • More than ¼ of North Americans said they were fine with fakes while only 8% of Asians were comfortable with the idea.

Best Quote

“That red and green stripe is some of the most iconic luxury branding ever created, and people want a piece of it.” – Michael Macko, Fashion Director at Saks Fifth Avenue, on Gucci

Designers Refuse To Bargain

Monday, April 20th, 2009

How far are designers willing to go to make sure you pay full price?

  • Clothing designers and department stores are facing a growing conflict as the economy continues to suffer: Who controls pricing?
  • Luxury brands are unhappy that department stores have the power to slash prices on their products, undercutting their luxury images and raising questions about how much a $1200 Piazza Sempione dress is really worth.
  • Some designers are following the strategy adopted by major airlines when low-cost websites began buying tickets in bulk and slashing their prices – limiting inventory.

Facts & Figures

  • More than 40 designers requested that their products be left out of a recent Saks “Friends & Family” sale.
  • In a step away from department store control of her product, Eileen Fisher is building 6 new stand-alone stores this year.
  • LVMH, which maintains tight control of its brand and pricing by renting boutique space inside department stores, posted a 10% profit in the fourth quarter of 2008.

Best Quote

“Even wealthy people don’t want to be ripped off.”  – Eileen Fisher, Designer

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