issue 132 November 2009

Jason Pomeranc of Thompson Hotels

An hotelier particulier

All Bokks-ed up with somewhere to go

Luxury, schmuxury an alternative view

The luxury briefing Christmas survey

brand index
issue 132 November 2009
3i 9 3.1 PHILLIP LIM 9 A CHILD OF THE JAGO 9 AGENT PROVOCATEUR 9 AMANDA HAMILTON 16 AMI E TOI 8 ARTEK 16 AUDEMARS PIGUET 17 AUFFRANCE 17 AZZARO 9 BOUCHERON 21 BRIONI 16 BRITISH AIRWAYS 14 BUSINESS WEEK 11 CHANEL 20 CHRISTIAN LACROIX 8 CHURCH & CO 9 COACH 15, 20 COLOURS 11 COMME DES GARCONS 16 CONDE NAST 11 CREED 17 DIPTYQUE 17 DOVER STREET MARKET 16 ESTEE LAUDER 15 FOUR SEASONS 14 FULTON UMBRELLAS 10 GARRARD 17 GOURMET 11 GUCCI 15 HEIRLOOM COUTURE 8 HERVE LEGER 9 HOCKLEY 8 HOSPES 14 IN & OUT 17 INGLOT 17 ISABEL MARANT 9, 17 ISSEY MIYAKE 9 JEAN-GEORGES VONGERICHTEN 15 JEROME DREYFUSS 17 JIMMY CHOO 16 KAI D 17 LANVIN 8 LAMI JEAN 21 LECLAIREUR 8 LE TOUESSROK 21 LONDON UNDERCOVER 10 LORO PIANA 17 LOUIS VUITTON 10, 15, 21 LULU GUINNESS 10 MAC 16 MAISON FRANCIS KURKDIJAN 16 MAHARAJAHS EXPRESS 15 MATCHES 8 MICHAELJOHN 16 MORGANE LE FAY 17 ODIN 17 OSCAR BLANDI 17 OSCAR DE LA RENTA 15 OUTRE 11 PAUL SMITH 8 PORT GHALIB 14 RAISON DETRE 16 ROAST 14 ROLLS-ROYCE 15 SEARCYS OF LONDON CLUB 15 SEIZE SUR VINGT 17 SELFRIDGES 21 SHOO WOO 17 SIX SCENTS 16 SMART 11 STELLA McCARTNEY 8 ST JOHN HOTEL 14 ST REGIS PRINCEVILLE 15 SUSTAINYOURSTYLE.COM 11 SWING 9 TATLER 11 THE EAST INDIA COMPANY 10 THE UPPER HOUSE 20 THE YAS HOTEL 14 THE ZEITZ FOUNDATION 15 TODS 15 TRULYMADLYDATING.COM 11 VERSACE 10 VISIONNAIRE 11 WOLFE & BADGER 10 ZAC POSEN 15 ZILLI 17

features
2 12 18 An hotelier particulier Jason Pomeranc, Founder, Thompson Hotel Group The Luxury Briefing Christmas Survey Whats making the luxury world move this Christmas Present and correct Bokks a new way to give

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15 17 17 20 20 21 21 22 23 24 Luxury Indicator Luxury price rebalancing Retail property in London and New York Auto Luxe China bulletin Wealth report The alternative view Rob Calcraft, Founder of REN Q&A Frank Sawkins, Czech & Speake Financial report The TAG luxury stock index The outside edge Chris Sanderson & Martin Raymond, Future Laboratory Luxurious Allsorts Stephen Bayley

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luxury briefing 132 11:2009

An hotelier particulier
Now celebrating its 10th anniversary, Thompson Hotel Group is one of the independent hotel brands that has helped to change the face of the industry. Founded by Jason Pomeranc, a former lawyer working with his two brothers, the brand now has nine properties in New York, Los Angeles and Washington DC and there are plans for international expansion, starting with Toronto in 2010. He tells us about the artistic influences and sense of individuality that makes each Thompson hotel unique and has led to the success of the group...
What is the history of the group? I started the company in 1999, working with my two older brothers, Michael and Larry. They had been working in real estate development in a variety of capacities originally with my father, who has been in the property development business since the 1950s. They joined the business in the 1980s, then when I joined in the 1990s we decided that we would move the primary focus of our business to luxury brand development particularly onto small luxury hotel development. The first property was Sixty Thompson. The way we found the property was quite funny as we were bidding on another hotel in New York and we were beaten to it by Ian Schrager. To quell the disappointment we ended up having lunch in SoHo and decided to take the rest of the day off. As we were parking we saw a For Sale sign on the lot that ultimately became Sixty Thompson. From there on a series of events was set in motion and we acquired that plot and the adjacent land and that became our first project. Once we had completed that, Stephen Brandman joined us as COO. He had a traditional hotel background, having been with Intercontinental for 16 years, and with him we started our operating management division. Since then we have opened nine different hotels in New York, Los Angeles and Washington. The Toronto property, opening next year, is the first one outside the US. How do you keep the properties so different? The trademark of our brand is not to be a brand its very contradictory thinking to most of our competitors! I think that this is ultimately the key to our longevity and to keeping properties individual and timeless. Each property has its own personality that was born out of the character of the neighbourhood, the local population around it and what we broadly perceive our client base for that location to be. We effectively create it around a fictitious personality who fits with that property and location. And although each property looks very different, we do try to keep a common DNA running through them. This mostly relates to service and certain amenities, and attention to detail. It works like a collection, rather than a defined brand. How do you choose the architects and designers for each individual property? We do use individual designers and architects and I think that this is important in order to keep a company like ours fresh. One of the major steps in implementing these individual properties is that once you have the fictional character at whom you are aiming the hotel set in your mind, you need to seek out an architect and designer who will reflect that. Its not about finding the architect or designer who then conceives the project. The idea has to be there in the first place, and they make it materialise. Who is the customer? The interesting thing is that the customer for each property is different, but an individual will often stay at all of the properties at different times and for different reasons it depends on the part of their personality they are using at any particular time. I look on our customer as a global nomad very tribal in nature, moving from place to place and seeking out different experiences in each. Their character and their age demographic or psychographic changes slightly, but in the large sense our client tends to be in the entertainment industry or art and fashion, and western European. That profile probably fits 80% of our client base. It varies a little bit from hotel to hotel our Washington hotel draws more domestic travellers, our New York ones draw more from Los Angeles and the UK, while our Los Angeles one draws a different demographic too. We draw from the UK particularly, and also France to a certain degree.

Do they choose different hotels for business and leisure? The business traveller has changed or at least our business traveller has changed. The IBTs Individual Business Travellers dont necessarily have such a structured work life as they once did, and this applies whether they are entrepreneurs or working for an investment bank. They are much more flexible and dont necessarily have to be in an office, so are less likely to choose a certain type of hotel just because they are working. I do think that they choose certain locations for geographical reasons though, so for example Sixty Thompson guests might stay at Six Columbus if they need to be in Midtown, even if they see themselves as a downtown person, or at the Gild Hall Hotel if they need to be in the financial district. The same goes in LA: if people are there for the weekend they might stay at the Hollywood Roosevelt as it is an urban resort with large grounds, but if they are there for work and need to be close to the agencies then they will stay at Thompson Beverly Hills. Interestingly, in New York and Los Angeles, even a few blocks changes the perception of the location. We have four hotels below Houston Street in New York, which in terms of the geographical spread of most cities is tiny, but in New York there are four very distinct neighbourhoods within this small space and each hotel relates to one of these.

became part of the architecture. Lee Friedlander, who is an iconic American photographer with a permanent collection at the MOMA, created a lightbox image that is used on the back of the headboards in all guestrooms. Hed never done his work for commercial purposes in this way before and it really is a very significant element of the hotel. Peter Halley did a lobby installation for us. He has been a figure of inspiration for young American painters for the past 15 to 20 years and is Professor of Fine Art at Yale. Then Gerard Malanga, who was Andy Warhols muse, created a lithograph on the bottom of the swimming pool for us which is an image of Andy Warhol. Its very interesting and is the only pool I know of that has a photographic image in the bottom of it certainly the only one in New York. Using Warhol as part of the architecture in an area known for its emerging artists was very deliberate. It is meant to reach out to that community and makes a definitive statement that Warhol is now part of the establishment and that they should reach out and aspire, which a lot do seem to understand. Then, in some of our penthouses there are works by Ryan McGinness who will be the next great American painter and sculptor. In some of our other projects weve worked a lot with photography: we used Guy Bourdin, the French fashion photographer who inspired a lot of the greats of today; fashion photographer Steven Klein features in the guestrooms and public

We aim to come up with a unique restaurant concept and lounge bars to provide a social experience that people are going to find enjoyable and memorable without being overwhelming... We are a social brand and part of our success is being able to balance having these elements. Ultimately we create hotels with bars and restaurants not bars and restaurants with rooms on top. That balance gets lost with some hotels

What is the importance of the restaurants and clubs? We look at each of our hotels as an all-encompassing experience and we want to give our guests the option of enjoying the social elements of the hotels. We aim to come up with a unique restaurant concept whether our own or a partnership with chefs and restaurateurs and lounge bars to provide a social experience that people are going to find enjoyable and memorable without being overwhelming. This is intrinsic to our brand, and we choose the concepts depending on what is going to work at each of the individual properties. We are a social brand and part of our success is being able to balance having these elements, but without them being too dominant. Ultimately we create hotels with bars and restaurants not bars and restaurants with rooms on top. Sometimes that balance gets lost. We like guests to feel part of the New York scene if they are staying in one of our New York hotels and not feel isolated from this if they decide not to go outside the hotel. Thats why its so important to reach out to residents and the local community and get them to come in. What about the art element of the hotels? Art is an extremely important element in all of our hotels. It helps to reflect the personality of the hotel and also the user. And its not always about finding the biggest-name artists its about finding the visual that reflects the persona that you are creating. Thompson Lower East Side was a collaboration between several artists and very customised to the design of the hotel so much so that it almost

spaces at Thompson Beverly Hills his giant light boxes for the hallway suits the Beverly Hills aesthetic very well. So each one is chosen to suit the design aesthetic of the location and there is a long thought process that goes into it. Its not just about hanging things on the wall because they look ok. There is a psychological connection to everything. Do you use unknown artists and do they approach you or do you seek them out? We have used relatively unknown artists as well as the better known guys. The phrase unknown in the art world spans a very broad range, and a lot of people are tagged unknown or emerging, but we have tended to use a lot of genuinely unknown artists, and also a lot of pieces of iconic fashion photography. Its a jump we try to make. I try to see a lot of work all the time, as even if its not appropriate for a project Im working on that day it could be used for something down the road. People do approach me but usually I find inspiration on my own. I enjoy people showing me their work and going around galleries as you never know what youre going to find, and its always your own personal discoveries that are the interesting ones. How easy is it to find staff who will suit the properties? Weve been fortunate in that we have been able to find very loyal, committed staff who fit in with what we are trying to do. Some of our core staff from Sixty Thompson have been with us since we launched it. We have a young woman who started out as a front

luxury briefing 132 11:2009

desk attendant and is now a general manager, having built up her entire career with us, and several other people with similar stories. We try to nurture young talent and if we are hiring people who have worked in other hotels we like to refocus their energy during their training. We do the training in-house with senior management, and while we train in a conventional way in traditional hotel service, we do encourage people to let their personalities come out and be individuals. It is difficult but rewarding when you are able to find the right people, and it is important that we have managed to maintain this loyalty: it means that they stay with us for a long time. Why have you chosen to mostly focus on small hotels? There are technical reasons and there is also a spiritual reason. Spiritually if it gets bigger than 100 to 150 rooms its just not the same kind of hotel. Its a different feel, its a different energy and you lose the sense of intimacy. The technical reason is that there is a level of staffing and management and implementation of the operations that changes over a certain number. The Hollywood Roosevelt is our biggest with 300 rooms but weve tried to make it feel smaller. The Roosevelt also has massive amounts of entertainment space two nightclubs, a restaurant and pool area which make the hotel part of a much larger experience overall. All of our hotels are urban resorts in a sense and the Roosevelt just happens to be the biggest. How will you expand in the future, and would you consider doing a large-scale property? I would, although I dont know if Id approach it in the same way as we have approached our current hotels. We definitely have plans to do a resort possibly in the Caribbean or Mexico or Central America. We have looked for the right spot for a while and it would be fun and exciting to be able to translate our urban experience and the psychology of our brand into a resort experience. And as we expand, the international market becomes exciting for us. Were looking at the UK and possibly Asia, and are currently working on a project in Seoul in Korea. In the US, New York, LA and Washington are important cities for us and we are looking to expand further within the cities where we already have a presence, but we are also looking at the potential of Miami, Chicago and maybe northern California. Miami is currently going through a transition period not necessarily overdeveloped, as some people in the industry think, but the development has become slightly misguided. It needs to refocus its energy and define itself again. The projects have become overblown, while the joy of Miami used to be the intimacy, the size of the hotels and being able to walk from place to place around South Beach. Now it has become one large sprawling resort town. It needs to settle and this will take a little time. Whats the game plan on an international level? London is a gateway city for us. Weve begun to form a base in London and that would be the primary city for us to expand to in Europe. Beyond that, there are Asian cities that hold promise. Paris, Milan and Moscow also have potential, but right now, with the economic climate, I think everybody is in wait-and-see mode. Not just about the hotel industry, but also to see which cities are going to emerge as leading locations. But there will always be key places and I think that London and New York are logistically strong. We chose Seoul as its an interesting gateway and a connector between Beijing and Tokyo both psychologically and physically and it has emerged as a wealth market hub for both individual and commercial activity. The project there has been designed as a hotel with a private members club as that is part of the culture. It is also an experiment for us, expanding into the membership concept

People now believe that independent hotels can flourish... this has changed the nature of the industry and forced chains to re-evaluate the way they do things... to form their own independent spin-offs

like the SoHo House idea, but doing it in Asia, which has a whole different mindset. It will be very much an Asian version of a private members club, rather than a British or American take on it a very challenging, exciting project for us. Seoul is still wealthy as that community didnt leverage itself in the same way that Tokyo, Beijing and Shanghai did, so the economy is in better condition. In terms of expansion I feel that Seoul is one of the more stable spots in the world at the moment. Have you been impacted by the economic climate? I think we have more protection because we have smaller properties and because our client base wasnt really that corporate to begin with. Basically everybody is affected in some way, but there are always cycles in our industry. They tend to come more frequently in the hotel business than for other sectors, but we psychologically prepare for that and we are in this business for the long term so we understand that this goes with the territory. What is the current state of the hotel industry? There is some interesting creativity going on. The fact that people now believe that independent hotels can flourish and often have a greater capacity to succeed than chain hotels even luxury chain hotels has changed the nature of the industry and has forced the large chains to re-evaluate the way they do things. In turn this has caused them to try to form their own independent spin-offs. Its interesting how much hotels like Sixty Thompson and some of our competitors when we started out in New York have inspired concepts for entire chains theres the Aloft chain, theres a new Hilton concept, Hyatt is trying to do it. Around five different chains have approached us with a view to working with us and using our model. Thats not our business though, as we want to be a small luxury brand, and they would want to open in certain cities where we just dont belong.

Would you partner with a fashion designer to do a hotel? Weve always incorporated fashion into our hotels, so every hotel has had the uniform worked on by a different, interesting designer. In New York weve worked with Rag & Bone, Rogan, Steven Alan and Helmut Lang. Fashion and our business are inherently intertwined, but just as the character of a fashion brand is specific, any collaboration would have to be specific to a particular hotel. There are some designers who have the ability to transcend trends and it would be interesting to collaborate with somebody who falls into this category. Where would you like to be in five to 10 years time? Thats a good question talk about saving the best for last! I would like to see us as a larger company that manages to maintain its original character as a small, individual company. I would like to see us in Europe, Asia and more cities in the US, and I would like to see the Thompson Hotel concept evolve. We would like more restaurant and bar concepts. I dont want to lose what we have at the moment but I want to be able to do more properties, do them better, appeal to a larger audience and in more places. I would also really like to see these individual properties ingratiating themselves with local businesses and the surrounding communities and industries in the way same way as the ones that we have done so far. For example, Sixty Thompson has become ingrained with certain sub-cultural elements of New York city the lead song on the latest Razorlight album is called Sixty Thompson, based on their experience staying there. Often when you watch interviews or television programmes from Los Angeles you can see the Hollywood Roosevelt sign in the background. The more this happens, the more successful I feel we have become not just financially but also psychologically. Jason Pomeranc, Co-Founder, Thompson Hotels

luxury briefing 132 11:2009

has received a formal offer that will pull it out of administration. The bidder is Al Hassan Bin Ali Al Nuaimi, a sheikh from the UAE said to be involved in a number of other business sectors including yachting, finance and real estate development. Lawyers stated that he intends to inject considerable capital to develop Lacroix and strengthen its position as a luxury brand.
PAUL SMITH

Seoul, the 5,850 sq ft boutique will sell the 3.1 Phillip Lim range, including mens, womens and childrens wear, accessories, the Go Green Go organic collection and a number of one-off collaborative projects. These include ongoing work with Korean artist Wook Kim, who has created the wallpaper for the interior.
AZZARO

Paul Smith has opened a dedicated shoe and accessories store on Londons Marylebone High Street, tapping into the ongoing strength of this sector of the luxury market. The boutique will be the first of its kind to be opened by the British designer and is divided into two contrasting sections: a mens room and womens room, each with a very different ambience. The mens room sells shoes, wallets, cufflinks and jewellery and has been created in a simple, modernist design inspired by Le Corbusier and Donald Judd. By contrast the womens section is theatrically styled with English floral patterned wallpaper, a 19th-century shot silk conversation piece seat and Chinese lacquered cabinets displaying shoes, bags and jewellery. Talking about the store, Paul Smith said: For many years I have been visiting Marylebone High Street I have always liked the atmosphere and it has become better and better. So we are pleased to be opening our mens and womens shoe and accessory shop there.

I love the almost village atmosphere which is hard to find in the heart of London.
LANVIN

STELLA MCCARTNEY

Lanvin is to target Asia as a focus for expansion. This month the Alber Elbaz-led couture house is to open a 2,900 sq ft boutique in Shanghais Plaza 66 shopping mall, and a Singapore boutique will follow in January. Executive Vice President Thierry Andretta has said that the brand is also looking to open a Beijing store in the second half of 2010, and is currently seeking a suitable property in Hong Kong. In Japan the brand has been reinforcing its presence with the expansion and relaunch of its Tokyo Ginza flagship. Other planned Lanvin store launches will include a 2,100 sq ft Bal Harbour boutique which will open its doors in December 2009 to coincide with Miami Art Basel, and a Las Vegas store launch which is scheduled to take place in early 2010.
CHRISTIAN LACROIX

Stella McCartney has announced that profits rose 78% during 2008, to 1.79m. The Gucci Group-owned company has attributed the success to strong ready-towear collections and wholesale sales. The figures are for the UK-registered arm of the company and do not take into account the global wholesale revenues for the brand or sales from its stores in Los Angeles, New York and Paris which are consolidated with Gucci Groups accounts. Stella McCartney has also announced that there are plans to launch a number of new stand-alone stores in the near future. November will see the launch of Stella McCartneys collaboration with Gap, a line for the Gapkids range.
L ECLAIREUR

Following the launch of a pop-up store on Mount Street earlier this year, Azzaro is to open a permanent flagship on the same street in February 2010. The 1,100 sq ft store will be at the Davies Street end, close to Lanvin and Goyard, and the launch will be celebrated with an event during London Fashion Week.
ISABEL MARANT

The idea of luxury and exclusivity now comes in another form. Luxury isnt necessarily about exclusivity; its about the quality of the design and the quality of the make. One thing that is so different about Vuitton from any of the other retailers, and any of the other luxury brands - Vuitton never goes on sale. Thats a huge risk - and I guess an expense - in these challenging economic times, but apparently its really worked to their advantage, because its maintained a certain exclusivity
Marc Jacobs, Creative Director, Louis Vuitton, quoted in WWD
HERVE LEGER

Troubled couture house Christian Lacroix

Make do and mend

In the current climate of frugality, new services are emerging for those who wish to repair and rework classic couture pieces. Fur company Hockley has just launched a capsule collection called ReMode in association with Matches Editions, with pieces created by recycling classic furs into contemporary, trendled, one-off items. Bridget Cosgrove, Buying Director for Matches, explained: This is a really exciting project which is totally in tune with the current trend for non-disposable fashion, taking something which is beautiful and creating a modern new piece from it. Giving couture items a new lease of life, Heirloom Couture is a Londonbased service which transforms vintage pieces into wedding and occasion dresses, using the embroidery and trims from antique dresses and combining them with new fabrics using traditional techniques. Heirloom Couture also offers new pieces inspired by vintage styles. The service is run by couture embroidery specialist Rachel Spencer who in the past has worked with Matthew Williamson, Betty Jackson and Clements Ribeiro.

French multi-brand high fashion retailer LEclaireur has just opened a new store. Located in the Marais district of Paris, the 4,300 sq ft place des Vosges boutique has been designed by conceptual artist Arne Quinze and maintains LEclaireurs reputation for mixing fashion with innovative art and architecture. Visitors enter the building through a giant sculpted wooden canopy inside the door, moving into an interior which includes an installation of 147 encased monitors projecting videos of close-ups of eyes. The walls are covered in recycled materials painted in metallic grey. Selected items of stock are displayed in illuminated recesses in the walls, while some of the clothing is concealed behind hydraulically operated panels that open and close by using concealed switches. LEclaireur was founded 30 years ago by husband-and-wife team Armand and Martine Hadida.
3.1 PHILLIP LIM

Designer Isabel Marant has signed a lease on a new store in New Yorks SoHo. Due to launch in February 2010, the 2,557 sq ft boutique is located on the corner of Greene Street and Broome Street in the Gunther Building and will carry the Isabel Marant, the Etoile secondary collection and accessories and jewellery collections. The building has high ceilings and period decorations. This will be the first freestanding Isabel Marant store in the US, and the designer has said that she chose the property due to its authentic New York style. Isabel Marant has three boutiques in Paris and one in Hong Kong.

The Herv Leger by Max Azria label has launched its first London store in Knightsbridge: the brands largest to date, spreading over two floors. The interior has been designed by Franois Tielve. In a statement, Max Azria, now Creative Director of the Herv Leger brand, said, Herv Leger by Max Azria has become a worldwide phenomenon. I most definitely wanted a boutique in London, the capital of visionary fashion and creativity. The Herv Leger brand was first founded in 1985, then acquired by BCBG

Max Azria Group in 1998, marking the first time that a French couture house had been bought by an American designer. The label relaunched under Max Azria in 2007.
ISSEY MIYAKE

Slipping off
Agent Provocateur co-founder Joe Corr has announced that he is to leave the lingerie company that he founded with ex-wife Serena Rees. Corr sold a majority holding in Agent Provocateur to investment company 3i in 2007 but retained a significant stakeholding in the underwear brand. He has said that he intends to pursue new projects, including focusing on his fashion line A Child of the Jago which has recently shown at London Fashion Week.

Church screens
Traditional British footwear brand Church & Co is taking to the internet with the launch of an e-commerce website. Operating at www.church-footwear.com, the new site will sell mens and womens footwear in 17 countries worldwide, and serve as an add-on to Churchs 30 standalone retail stores in eight countries. Churchs is also said to have over 800 wholesale stockists worldwide.

Japanese designer Issey Miyake is the latest fashion name to receive a white knight bailout. The designer had recently filed for bankruptcy protection with the Tokyo District Court, but days later was said to have received an offer of help from private equity fund Integral Corp. Explaining the reasons for the brands difficulties at a press conference, Issey Miyake said, Ive had my company for over 30 years, and I consider myself to be a designer first. I left many of the everyday business activities to others, but I think one reason that the company has come to this is that I left too much to others. I was told about the positive things, but many of the bad things didnt reach my ears. Integral Corp has said that it will fund the restructuring of the Issey Miyake business as well as investing in the company with a view to the longterm success of the brand.
PATRICK COX

A friend in need...
A new fashion brand is setting out to help women who have been more than just style victims in their lives. Ami-e-toi sells high-fashion womens clothing, and has now set up a stylish store in Arnhem in Holland, created by respected Dutch designer Maurice Mentjens. The clothing is created by young designers such as the award-winning Claes Iversen and produced by women who have suffered from domestic abuse, homelessness, addiction or mental health issues providing the women with both skills and self-respect. Ami-e-toi has been set up by a Dutch organisation called Mode Met een Missie (Fashion With a Mission). 10

3.1 Phillip Lim has opened a new store in Seoul. The designer has added the South Korean store to his existing freestanding outlets in New York, Los Angeles and Tokyo, working in partnership with Shinsegaei International Co. The futuristic exterior has been designed by New Yorkbased Leong Leong Architects, who also designed the Los Angeles 3.1 Phillip Lim store, and has a four-storey, 40-foot faade with concrete tiles creating a sloping, textured effect. Located in the Cheongdam Dong shopping and gallery district of

Harlem Swing and shuffle

New Yorks Harlem may not be known as one of the luxury shopping districts of the world, but may soon come to attract new visitors with the opening of new designer boutique Swing. Located on Adam Clayton Jr Boulevard, the store stocks Balenciaga, Rick Owens, Lanvin, Ann Demeulemeester, Cristina Bomba and Vronique Leroy mixed with ethnic African bead necklaces, Asian and Tibetan furniture, baby clothing and craft pieces by US artisans. The store was founded by designer Deborah Greene, who has formerly worked at Tommy Hilfiger, Bergdorf Goodman, Alberta Ferretti and with Reed Krakoff, who will also sell her signature collection through Swing. Greene has said that the store has so far attracted tourists visiting Harlem and started to establish itself as a player on the Harlem fashion scene and as a destination store.

Footwear brand Patrick Cox is to relaunch in spring 2010. The move follows the acquisition of the brand by Lord Eddie Davenport in 2008, who has now awarded a license to produce Patrick Cox footwear to French manufacturer Groupe Royer. The new collections include classic formal mens styles, and a wide variety of heels, wedges and sandals for women, all carrying the Patrick Cox Fleur de Lys logo. There are also plans for a Patrick Cox diffusion line, due to launch in 2010. Patrick Cox has also recently opened a new Tokyo boutique, located in the Aoyama district and designed by Chikara Ohno.

11

luxury briefing 132 11:2009

We do not talk about economic recovery at all, forget about it. We are focused on recognising and understanding that there has been a change of the total landscape in luxury retailing
Joseph Wan, CEO, Harvey Nichols, quoted in Drapers

Caribbean, India, Africa, Australia and Canada. The project to resurrect the 400year-old name is being undertaken by entrepreneur Sanjiv Mehta who has said that he intends to extend the brand to be a globally recognised name once again, with product categories including home accessories, art and jewellery to be introduced in the future. The Conduit Street store has been designed by Four IV and includes a Tea Library with 100 different single estate varieties. WOLFE & BADGER Wolfe & Badger is a new retail concept due to launch in Londons Notting Hill in December. The store has been designed to provide emerging designers across a variety of disciplines fashion, accessories, jewellery, lighting and product design an opportunity to present and sell their products while retaining control over their pricing and profits. The store has been laid out in a modular fashion using black and white ash veneer boxes to segment the different elements of the boutique. Wolfe & Badger has been started by Samir Ceric, Founder of Salon Gallery, and former Chlo and Anya Hindmarch accessories designer Zoe Knight. Ceric and Knight told Luxury Briefing, We felt there was a need to give promising, talented designers a platform to grow and expand their businesses through our concept, particularly in these tough times when retail buyers are risk-averse to buying into new brands. Designers are able to act as their own retailers by having their own miniboutique within our store.

OUTRE

LOUIS VUITTON Louis Vuitton is to open new stores in Lebanon and Mongolia before the end of 2009 as part of its ongoing programme of global expansion. Talking about the new regions at the recent launch of a new Dubai store, Yves Carcelle, CEO, said that despite the global downturn the brand had not curtailed expansion plans and would not be closing any existing stores. Sometimes in our industry there is a tendency to follow your ego and open stores where you dont have the market, or stores too big for your potential we never do that. When we open a big store, we know that there is a market, we know the financials. So we have never had to close a store for economic reasons. According to Carcelle, Louis Vuitton invests around E250m in store openings and relaunches each year. Reporting its results for the first three quarters of the year, parent company LVMH said that Louis Vuitton had boosted the groups performance, with the fashion and leathergoods division reporting revenue growth of 1% during the period. Overall LVMH sales fell 3% in the first three months of the year. Louis Vuitton has also now unveiled the Spirit of Travel jewellery collection a line of fine jewellery with a number of spectacular one-off pieces priced at up to $2.5m. The collection has been created by jeweller Lorenz Bumer who previously worked for Chanel and Baccarat and also has his own line. In designing the line Bumer has referred to the brands heritage through the use of gold and brown colours, motifs inspired by hardware on Louis Vuitton trunks and using two cuts of diamond unique to the French luxury house and inspired by the brands monogram. HERMES It has been confirmed that Herms has bought the 20,000 sq ft building currently occupied by Asprey on New Bond Street.

Herms has stated that it does not intend to buy the Asprey brand and that it has acquired the building as a property investment. Currently Herms does not have a central London flagship, but to use this property would necessitate buying Asprey out of its 35-year lease and Asprey has said that it intends to carry on trading from the site. THE EAST INDIA COMPANY The East India Company the trading company associated with the days of British empire is to be relaunched. A store is to open on Londons Conduit Street in Mayfair before Christmas selling the companys first new commercial venture: fine foods. Produce will be sourced from locations around the world, including Japan, the

Claiming to be the first upmarket mens magazine online, Outre has been launched by Windsor-based BBS Publishing. Contributors include print regulars Helen Chislett from the FTs How to Spend It, Bill Borrows from Esquire and Nick Foulkes. Issue one of the quarterly magazine includes interviews with Marco Pierre White, Savile Row tailor Patrick Grant and burlesque singer Paloma Faith, as well as features on vintage watches, cigar paraphernalia, the art of taxidermy and the worlds most dangerous cocktail. Clever elements of the publication include video content in the flick-style magazine pages and pop-up boxes giving information on products featured when a cursor is rolled over them. Outre is said to have an email circulation of 50,000 and is sent to customers of Bamfords watch department and to members of the Quadriga supercar club. The next issue will be online in time for Christmas, at outremagazine.com.
TRULYMADLYDATING.COM

media &
Week collections, beauty launches, brand profiles and images from respected photographers and photojournalists including Sarah Maurer, Ben Cope, Cameron Krone and Emilio Tini.
BUSINESS WEEK

publishing
portfolio of leading news and information services. Business Week is one of the business worlds most recognised and trusted sources of news and insight and we believe that it will be highly valued by our customers worldwide.
GOURMET

Following in the footsteps of a number of broadsheet newspapers, Cond Nast has launched its first internet dating site. The site is supported by the websites Glamour.com and GQ.com and aims to unite fashionable men and women. The site allows users to create profiles for free and then sign up to a two-way compatibility matching system.
SUSTAIN YOUR STYLE

Sino the times

While luxury brands may be suffering in Japan with Versace recently announcing that it is to close its headquarters the region the Chinese have been hailed as the new Kings of Bling in an article in the Wall Street Journal. A recent Goldman Sachs Group report has identified China as being the worlds secondlargest luxury goods market, positioned only after Japan. It replaces the US, which formerly held this rank. The report also predicted that Chinese luxury consumption could overtake that of Japan in the coming year, as a 16.7% decline has been recorded in the net wealth of Japans affluent classes.

Brolly dollies
Just in the nick of time to counteract the winter weather, accessories designer Lulu Guinness has teamed up with British brand Fulton Umbrellas to launch a collection of witty designs to mark the 20th anniversary of the Lulu Guinness brand. Another original take on the wet weather staple is being provided by London Undercover, a new company launched in 2008 by designer Jamie Milestone to allow the umbrella to reach its true potential as a fashion accessory. Designs include English Breakfast with a gingham exterior and breakfast print inside and Fish and Chips newspaper print-style exterior with fish and chips inside as well as more conventional gingham and plaid designs. The umbrellas are made with recycled canvas, shafts, frames, handles and packaging the kind you wouldnt want to leave in the back of a taxi.

Sustainyourstyle.com is a new website offering a guide to sustainable and eco fashion labels from across the globe. As well as providing a guide to ethical brands, the comprehensive website allows users to search for items by product category or through other search options for those seeking specifically organic, fairtrade, upcycled and handmade pieces, providing details on the background of the brand and international stockists. A section devoted to luxury includes established eco-luxe choices such as Edun, Linda Loudermilk, Noir, Deploy and Deborah Lindquist, as well as well as Julia Smith who has recently worked on a Made in Africa line with Topshop innovative young British designer Christopher Raeburn and Eva Grant, an interesting new label based in the Scottish Highlands combining Harris Tweed and working with development groups in Lao, Thailand and India. The site also features editorial style advice.
160G

US publication Business Week has been bought by Bloomberg. Formerly owned by McGraw-Hill, the title had been put on the market in July to negate ongoing losses, and had been subject to bidding negotiations from a number of parties including ZelnickMedia, Opengate Capital, Bruce Wasserstein, the recently-deceased owner of New York magazine, and Mort Zuckerman. The publication will now be renamed Bloomberg BusinessWeek. Financial details of the transaction have not been revealed but a report on businessweek.com stated that a cash offer of between $2m and $5m was received from Bloomberg, as well as the assumption of liabilities and severance, which is said to push the price for the publication into tens of millions. In a statement Peter Grauer, Chairman of Bloomberg, said: Business Week will be a powerful addition to our

Gourmet magazine is the latest casualty of the difficult times faced by the publishing industry. Part of the Cond Nast stable, Gourmet was founded in 1940 and covered the food and restaurant industries. While it may seem puzzling that the magazine should close at a time when there would appear to be greater interest than ever in eating fine food at home, its closure has been attributed to the US media industrys advertising slump, with ad pages down 50% in the second quarter of the year compared to 2008.
FT HOW TO SPEND IT

The FTs How To Spend It Magazine has launched its own dedicated website. As well as content from the magazine, the site will also feature exclusive columns, daily bulletins and online video content.

Looking Smart
The latest edition of Visionnaire magazine has been created as part of a collaboration with Smart, the mini-vehicle manufacturer which is launching its new electric two-seater vehicle. Visionnaire 2010 takes the form of a digital calendar with selections from 52 curators, including Mario Testino, Zaha Hadid, Marc Jacobs, Natalie Portman and other famous names from the worlds of art, design and drama. Each curator chose seven artists, creating 365 contributors in total. And instead of being sold in a magazine format, the new edition will take the form of a digital picture frame that provides a different image for each day.

Screen print
Technology is now allowing publishers to broaden the bounds of possibility, as proved by the most recent issue of Colors magazine. The augmented reality magazine contains clever technology which allows readers/viewers to access internet-connected 3D interviews and video footage on screen when printed codes in the magazine are placed in front of a webcam. Colors is an innovative Italian magazine, now in its 18th year, available in Italian, English, Spanish and French.

Tatler triple century

British magazine Tatler has just celebrated its 300th anniversary and is collaborating with 35 luxury brands across London, creating Tatler-inspired window displays in stores including Moschino, Dior, Gucci, Versace, Louis Vuitton and Aquascutum. 13

The latest digital arts and style magazine launch is 160grams.com, a new Paris-based online publication covering fashion, music and art. Content on the stylishly-conceived website includes picks from recent Fashion

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Art &retail Christmas Survey

We asked some key figures in the luxury industry what would be making their Christmas a merry one. Many of the answers dont involve objects at all there are several mentions of space, time and sleep. Some food for thought as our minds turn to present buying... and present selling

The Luxury Briefing

Linda Pilkington
Owner, Ormonde Jayne
If you had to choose only one shop to do your Christmas shopping, where would it be? Harrods. I would start at the top floor in the Urban Retreat & work my way down, floor by floor, having all my perfect acquisitions sent off to be gift wrapped. Then I would celebrate at the Champagne Bar, munching on a lobster tail and sipping Champagne. What makes you accept a drinks party invitation? The stiffer the card the better and I am partial to a bit of embossing! What would you like to see in the shops in Spring 2010? A more gorgeous version of my G-Wiz electric car (which I call Lucie) where I can seat two children comfortably and add my two dogs without it looking like a Guinness Book of Records Attempt! What do you wish you could get online that is not available? I have always dreamed of having an impartial jury of 12 people from around the world to give me an instant answer to everyday dilemmas. What will be going straight from your stocking to a charity shop? I always receive an abundance of Christmas Puddings as I once said I liked them very much but I only want to eat one, not six!

Tom Marchant
Founder, Black Tomato
If you had to choose only one shop to do your Christmas shopping, where would it be? Dover Street Market. What makes you accept a drinks party invitation? Those that speak to me as a normal human being. Pretentious, flowery language is a turn-off and usually indicates image over substance. What would you like to see in the shops in Spring 2010? More of the little guys! I come across so many great independent designers, products and brands on my travels which people would adore over here but they often cannot get the distribution. We could all do with a little more independence in our lives and this would help. What do you wish you could get online? Tough one to answer as I have a couple of ideas that address this but they are actually in development so not too keen to share right now! Saying that a site that is a one-stop shop for all the great local food and drink products you find on your travels and struggle to buy/find when you get back home would be nice. You can do it, but one place would make it a lot easier and quicker. Hmm What will be going straight from your stocking to a charity shop? Anything by Dan Brown.

Ted Teng, President & CEO

Leading Hotels of the World
If you had to choose only one shop to do your Christmas shopping, where would it be? Even if I could, I would not choose just one. The fun of shopping for me is the journey going from shop to shop to find that absolutely perfect gift for each loved one. What makes you accept a drinks party invitation? Its all about the people for me who invited me and who will be there. The occasion or venue has no influence. What would you like to see in the shops in Spring 2010? More handcrafted mechanical items. What do you wish you could get online that is not available? I wish I could book my favourite room when I make a hotel reservation, in the same way that I can reserve a specific seat on a flight. What will be going straight from your stocking to a charity shop? Any reality TV series compilation DVD set.

Mary-Adair Macaire
CEO, Pringle
If you had to choose only one shop to do your Christmas shopping, where would it be? On a budget? A favourite museum shop, such as the V&A, because in tough times museum endowments suffer too. A years membership or a great book focused on the receivers interest would represent a thoughtful gift that also lends support to a great institution. Limitless budget? Herms. Who doesnt get excited by those orange boxes? What makes you accept a drinks party invitation? The host. What would you like to see in the shops in Spring 2010? Great quality combined with lots of style that says, Life will be better if you take me home. What do you wish you could get online that is not available? Tall, dark, handsome, well-read, currently unattached man who has a great sense of humour and doesnt need me to support him! What will be going straight from your stocking to a charity shop? Gifts driven more by obligation than sentiment. Such things are rarely what you want or need.

Rupert Sanderson
Owner, Rupert Sanderson Shoes
If you had to choose only one shop to do your Christmas shopping, where would it be? Im torn between a funny little shop in Bologna I always seem to end up in, and Liberty. What makes you accept a drinks party invitation? How well I know the hosts. What would you like to see in the shops in Spring 2010? People spending confidently again. What do you wish you could get online that is not available? Santas grotto. What will be going straight from your stocking to a charity shop? Probably something from Santas grotto!

Simon Burstein
CEO, Browns
If you had to choose only one shop to do your Christmas shopping, where would it be? Fortnum & Mason. I love all the biscuit tins, hampers etc What makes you accept a drinks party invitation? The hostess, and if I can bring Tintin my beagle with me. What would you like to see in the shops in Spring 2010? Colour, lightness and clean lines. What do you wish you could get online that is not available? Series 3 of Mad Men. What will be going straight from your stocking to a charity shop? My aunts handknitted sweater that never fits. She thinks I am still 16... but so do I!

Anya Hindmarch
Owner, Anya Hindmarch
If you had to choose only one shop to do your Christmas shopping, where would it be? Quite genuinely I created the new Anya Hindmarch Bespoke collection to solve all of my gift giving dilemmas. I enjoy giving presents that are truly personal pieces linked to family or sealing in a special memory. And of course Amazon at the last minute, whilst drinking a nice bottle of wine! What makes you accept a drinks party invitation? For me, the people make the party. What would you like to see in the shops in Spring 2010? Colour! I think we all need a bit of extra cheer in our lives at the moment. What do you wish you could get online that is not available? The ultimate luxury more time. What will be going straight from your stocking to a charity shop? I couldnt possibly say!

James & Tamara Lohan

Mr & Mrs Smith
If you had to choose only one shop to do your Christmas shopping, where would it be? Tamara: Liberty. James: Selfridges. What makes you accept a drinks party invitation? Tamara: If its a new venue or one I havent been to, or an invitation from a close friend, Ill drop everything. James: My wifes coercion! What would you like to see in the shops in Spring 2010? Tamara: Fabulous baby clothes for the new addition to the family. James: Our Mr & Mrs Smith Do Not Disturb linen collection (with apologies for the shameless plug). What do you wish you could get online that is not available? Tamara: More sleep. James: Free downloads of time, by the hour. What will be going straight from your stocking to a charity shop? Tamara: Anything yellow. James: Golfing accessories please tell Santa I only played once and that doesnt mean Im now burning to go professional.

Adam Tihany
Designer
If you had to choose only one shop to do your Christmas shopping, where would it be? Connolly on Conduit Street in London. What makes you accept a drinks party invitation? The hope of meeting Gabriel Garcia Mrquez. What would you like to see in the shops in Spring 2010? More Muji, less Gucci. What do you wish you could get online that is not available? Vintage Herms ties. What will be going straight from your stocking to a charity shop? Everything except good cigars and whisky.

The Luxury Briefing team

If you had to choose only one shop to do your Christmas shopping, where would it be? The Internet: its getting better and better at the top end and all from the comfort of home. What makes you accept a drinks party invitation? One that looks fun and arrives in good time (not the day before PRs take note!). What would you like to see in the shops in Spring 2010? Less safe stuff and more innovation things to fall in love with. What do you wish you could get online that is not available? Fresh air and warm sunshine. What will be going straight from your stocking to a charity shop? Jordans autobiography.

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Luxury Indicator
St John vernacular but the rooms will be designed differently and were having a bit of fun with it. We never planned to launch another St John but when we heard that Manzis, which is such a historic site, had closed we were intrigued and wanted to pick up the baton. This year the original St John restaurant in Smithfield which launched in 1994 picked up its first Michelin star.
MAHARAJAHS EXPRESS

FOUR SEASONS

In December Four Seasons is to open a new hotel in the Corniche development in Beirut. The distinctive glass and steel building has over 230 terraces with views across the city and the Mediterranean, allowing each room its own furnished outdoor space, and a relaxation terrace outside the spa. There is also a glassenclosed rooftop pool area, alongside a cocktail and tapas bar on the 26th floor of the building. The interior has been designed by French creative Pierre Yves Rochon a nod to Beiruts reputation as the Paris of the Middle East who has formed a contrast to the buildings modern exterior by using traditional materials such as polished maple and selected local antique pieces. Stefan Simkovics, General Manager, commented: As soon as guests are welcomed to Four Seasons Hotel Beirut, theyll be encouraged to step out and enjoy the sea air, the sunset Mediterranean views and the sights and sounds of this cosmopolitan city. And as warmer weather arrives next May, Four Seasons will unveil a rooftop scene destined to be the talk of Beiruts summer season.
THE YAS HOTEL

Prince Court covers half a floor of one building and has 12 bedrooms, while the Rulers Court extends over two floors and has 28 bedrooms and a private lift. Both have been created in all-white, with contemporary artwork, MOMA-inspired furnishings, and private lap pools. The Yas Hotel has been created by Abu Dhabi-based property development and investment company Aldar Properties. In addition to the Yas Hotel, Yas Island also houses Ferrari World Abu Dhabi, the worlds largest indoor theme park and an 18-hole links golf course.
ST JOHN HOTEL

Fergus Henderson and Trevor Gulliver the team behind ground-breaking London restaurant St John have announced plans to launch their first hotel. The duo have bought the property formerly occupied by Manzis restaurant and hotel off Londons Leicester Square and have said they plan to refurbish the site and relaunch it as the St John Hotel. On completion the basement, ground and first floors of the property will house a St John restaurant and a bar space, while the upper floors will have 16 bedrooms, including a two-storey suite. In an interview with Caterersearch Trevor Gulliver explained: The hotel will be in the

The Maharajahs Express is a new super-luxe train service that will transport clients across India. Hailed as a landmark event for the Indian tourism industry, the train is to launch in 2010, and will allow travellers to undertake return journeys from Delhi to Mumbai and Delhi to Calcutta. The journeys are designed to include some of the bestknown sights in India as well more unusual elements, including lunches at private hunting lodges, boat trips and an exhibition elephant polo match. The highly-specified trains will include 43 suites with panoramic windows, two fine-dining restaurants, games tables, bar carriage, observation carriage and presidential suite. The Maharajahs Express concept has been set up by Royale Indian Rail Tours, a new joint venture between Cox & Kings and the Indian Railway Catering and Tourism Corporation, an offshoot of the Indian Ministry of Railways.
HOSPES HOTELS

to launch in 2012. The group has said that it is working towards finding locations in UAE, Qatar, Jordan, Saudi Arabia, Oman, Egypt and other parts of North Africa. In Spain, Hospes is also continuing the development and evolution of its properties. Hospes Madrid has recently relaunched its Senzone restaurant, now headed by award-winning chef Ivan Saez Vicente. Moving away from its previous incarnation as a space for experimental and fusion cookery, the menu is now themed around seasonal Spanish cuisine and exciting new takes on traditional tapas. Reacting to the current economic situation, the menu at the restaurant now allows diners to choose several small dishes. In an unusual move for a Spanish hotel, Hospes Madrid has also recently started to serve a formal English afternoon tea, said to be popular with neighbouring Madrilenos.
PORT GHALIB

Luxury price rebalancing

Spanish hotel group Hospes is extending its reach to the Middle East and North Africa and has signed agreements to oversee the development of properties in Syria (Damascus) and Lebanon (Beirut), due

Port Ghalib is a new high-end resort due to launch this month on the south-west coast of the Red Sea. Close to Marsa Alam airport, the resort will consist of three five-star hotels run by Intercontinental and Crowne Plaza, a marina with over 200 moorings, restaurants, bars, a 1,500-seat convention centre and a Six Senses spa. It is located in the secondlargest man-made swimming lagoon in the world. The resort has been created by Kuwait-based Al-Kharafi Group, owner of the Port Ghalib Resort Company, as part of a $2bn development.
ST REGIS PRINCEVILLE

In light of declining global luxury goods sales, which fell at a high single-digit, constantcurrency rate during 1H09, companies have started to introduce new products at prices up to 30% lower (on average) than their typical merchandise in order to drive conversion from increasingly value-conscious consumers. Faced with the conundrum of reducing prices to drive sales while protecting their brand cachet, luxury players have found more discreet ways to enhance their competitive positioning by unveiling new goods at more accessible prices and/or by re-launching more affordable extensions of existing lines (justified by less costly fabrications or smaller sizes). Although the more wallet-friendly products may draw increased traffic and conversion, topline performance could be compromised as the rise in unit sales may not be enough to compensate for the lower ticket. As one of the first luxury brands to introduce lower-priced products during the current downturn, Louis Vuitton unveiled its Neverfull handbag line, initially priced at around $575, in mid-2007, to tremendous success. Gucci launched its entry-level Joy handbag in Japan around March 2008. Coach, aiming to lower the average price of its handbags by 10%-15% to below $300, introduced the Poppy collection in July 2009 (average $260), which helped draw increased traffic at full-price retail locations. Coach plans to maintain 50% of its assortment below $300 vs 30% in FY09. At Tods, the new affordable G-Bag (from $825) has quickly become one of the companys best-selling handbags in various markets. Within ready-to-wear, Oscar de la Renta plans to introduce a lower-priced $1,500 dress in its spring line (vs around $1,990 in the fall collection), while Zac Posen is slated to unveil more daywear (including dresses priced at $990 in addition to its $10,000 couture gowns). In cosmetics, Este Lauder successfully rolled out smallersized fragrance units, which should drive sales without diluting the brand. These examples illustrate a subtle attempt to entice consumers with more attractive pricing without resorting to discounts and markdowns. Given a more value-conscious appetite for luxury goods, companies have managed to find more creative ways to lower prices, while maintaining brand integrity. With the pricing initiatives generating customer traction, we may see luxury players beginning to explore new strategies to attract customers, such as introducing bundled products and smaller, lower-ticket accessories.
Supplied by Telsey Advisory Group
now undergone a multi-million dollar regeneration. The interiors, using native Hawaiian materials, have been created by residential designer David Easton, hotel design company WATG and local architects Group 70. One of the key features of the St Regis Princeville will be the Kauai Grill restaurant created in collaboration with Jean-Georges Vongerichten and due to open this month. The restaurant space will offer panoramic views of Hanaleu Bay through floor-to-ceiling windows. The resort also has a 10,000 sq ft spa and two 18-hole golf courses. St Regis is also currently working on hotels and resorts in a number of new locations, including properties in Puerto Rico, Deer Crest in the US, Bermuda, Buenos Aires, Kanai Riviera, Bangkok, Chengdu, Kuala Lumpur, Lhasa, Nanjing, Osaka, Sanya Yalong Bay, Tianjin, Abu Dhabi, Cairo, Doha and Mauritius.
THE ROYAL MANSOUR

The Yas Hotel is a striking new property just opened on Yas Island in Abu Dhabi. The hotel is positioned on the Yas Marina Circuit which forms the route for Abu Dhabis Formula 1 Grand Prix, used for the first time in 2009 and uses 5,000 panes of glass to offer panoramic views of the islands F1 race track, 143-berth marina and across the 7.5km by 6.5km natural island. The structure of the hotel consists of two separate buildings, illuminated from the outside by ever-changing coloured LED lights, and connected by a bridge that traverses the Marina Circuit. The bridge also houses a bar and the VIP level of the hotel. The destination bar has been created by George V Restauration, famous for creating the interior of the original Buddha Bar in Paris, and will invite international DJs to entertain during the summer. The two main buildings will house a further eight restaurants, 499 rooms and suites, a spa and two rooftop swimming pools. Aiming to attract business from the Middle East region, the presidential suites have been designed to take the concept of group accommodation to a new level: the Crown

Zeitz-geist
The Zeitz Foundation for Intercultural Ecosphere Safety has recently been set up by Jochen Zeitz, CEO of Puma, with the aim of promoting community, conservation, culture and commerce. One of its first initiatives is Global Ecosphere Retreats a collection of privately-owned sustainable travel enterprises. The flagship property for the GER scheme is the Segera retreat in Kenya. The Zeitz Foundation is supported by an impressive collection of brand ambassadors including Franois Pinault of Pumas parent company PPR who will support the foundation and spread the word about its initiatives.

The latest St Regis property to launch is the St Regis Princeville Resort on the island of Kauai. The 252-room resort is the first St Regis property in Hawaii, and is located on the islands Napali coast overlooking the Hanalei Valley. It has been created in a property that was formerly part of the Starwood Luxury Collection, and which has

Business as usual
British Airways has launched a new, exclusively business-class service from London City Airport to New Yorks JFK. The twice-daily service will use Airbus A318 aircraft and is the first British Airways route to allow customers to send emails and texts and use the internet, via an inflight communications system. Willie Walsh, CEO, explained, Our long tradition of delivering innovative service continues with the launch of this unique route. For the first time, the City has a tailor-made premium service to New York on its doorstep offering the most productive use of time for business people travelling between two great financial districts. New York is the most demanded destination that is not currently served from London City. The new route is a key growth opportunity for us and demonstrates the premium nature of London City Airport. Other benefits include the option of checking in just 15 minutes before the flight takes off, and passing through US customs in the same way as a domestic arrival, having cleared immigration during a brief stop at Shannon Airport in Ireland. Food on the flight has been developed with critically-acclaimed Roast restaurant located at Borough Market in London.

Club classics
Hospitality company Searcys has launched The Searcys of London Club, providing a variety of dinners and events across London tailored to members interests. These include wine tastings, educational dinners, balls and events featuring celebrities and designers including Sophie Dahl, Clarissa Dickson Wright and Bill Amberg. Venues include the Royal Opera House, the Mansion House, the Hurlingham Club and a variety of other interesting museum, gallery and restaurant spaces. Searcys has also launched a Black Card concept that is available to selected members giving further invitation opportunities. A smart way to attract customers to venues at a time when many may feel they need a good reason to be spending.

The Royal Mansour is a new hotel due to launch in Marrakech in December. The property consists of a collection of 53 riads that have been connected to create a series of suites, ranging in size from one to four bedrooms. There are also several restaurants overseen by Parisian chef Yannick Alleno lounges, a library and a bar arranged around the main reception building. Suites have private courtyards with fountains and plunge pools and the property is set in 3.5 hectares of garden.

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retail property
stores Body & Soul department and fragrance room. The store has said that the space will be used to house a seasonallychanging line-up of brands.
MICHAELJOHN

Right now, its innovation and creativity that are going to give [people] a compelling reason to shop. You need to give customers a reason to buy
Ed Burstell, Buying Director, Liberty, quoted in WWD
JIMMY CHOO

British hairdresser Michaeljohn is currently undergoing a process of rebranding, with the redesign of its Mayfair salon, website relaunch and packaging redesign. The implementation of the new concepts has been overseen by design company Caulder Moore.
MAISON FRANCIS KURKDIJAN

Jimmy Choo has signed a new fragrance deal with Inter Parfums. The 12-year partnership will officially begin at the start of 2010 and will see the creation, development and distribution of Jimmy Choo fragrances by the Paris-based perfumer. Jimmy Choo has previously been involved in a fragrance agreement with Selective Beauty, but no Jimmy Choo perfume was ever produced. Tamara Mellon, Founder and President, said, It has always been my vision to accessorise the woman, and fragrance is an integral part of that modern wardrobe. Through the association with Inter Parfums I look forward to bringing this important aspect of my vision to life. Inter Parfums works with other luxury brands including Burberry, Lanvin, Paul Smith and ST Dupont.
RAISON DETRE

prove as successful as the brand predicts, it could form the model for future Mac outlets small, dramatic boutiques in highly visible locations.
ARTEK

Finnish contemporary furniture company Artek has teamed up with Comme des Garons to launch its first fragrance. Titled Standard, the perfume will initially be sold through Dover Street Market in London and Artek stores. The launch coincides with Arteks 75th anniversary, and the fragrance takes its name from Artek founder Alvar Aaltos concept of standard thinking the idea of systems and standards in furniture design. At the launch Ville Kokonnen, Arteks Head of Design, said that the fragrance would add an extra, sensory, dimension to the design brand.
LIBERTY

Bespoke perfumeur Francis Kurkdijan has just launched his first off-the-shelf fragrances. Injecting quirky elements, products include a childrens perfume that comes in the form of a bubble pot and wand, a perfume-infused leather bracelet, a fabric conditioner and incense sticks, in addition to a selection of more conventionally presented fragrances.
SIX SCENTS

Spa development and management consultancy Raison dEtre is to launch its first branded spa this month. Located at the Grand Hotel Stockholm, the 1,400 sq ft spa spreads over two floors and will have eight treatment rooms and a state-ofthe-art fitness training centre. At the spa Raison dEtre will offer treatments, juices and teas that have been made with indigenous, organic Swedish produced, including birch, blueberry, buckthorn and lingonberry. Founding Director Rosamond Freeman-Attwood told Luxury Briefing, The launch of our first flagship spa will mark the beginning of an exciting new chapter, as the company continues to push the boundaries in the world of innovative spa design and development.
MAC

In an attempt to increase customer flow between two key departments, Liberty of London has announced plans to expand its beauty floor. From spring 2010 space previously used for storage will be turned into a new retail area connecting the

Six Scents is an interesting fragrance concept that has now launched its second series of perfumes. In keeping with the original concept, Six Scents: Series Two is a collection of limited-edition perfumes that have been curated by cutting-edge fashion designers and artists who do not already have their own branded fragrance lines, and formulated by Givaudan. Six Scents: Series Two includes fragrances created in partnership with Phillip Lim, Damir Doma, Richard Nicholl, Henry Holland, Henrik Vibskov and Toga. Each fragrance is limited to 2,000 bottles, with each of the six bottle designs created by the personality who has worked on the perfume. A portion of all proceeds will be donated to Pro-Natura in aid of its environmental sustainability programmes.

Our own nominations for the Luxury Briefing medal for Bravery in the Face of Adversity fall into four categories:1 The Building Owner. Not long ago Irish investors outbid sovereign wealth funds and seasoned property speculators to acquire investments in Londons prime retail thoroughfares. Now the landlords from across the Irish Sea plan exit strategies to take advantage of the current downward shift in yields. Adversity may not yet be the order of the day, as most assets have almost doubled in value. 2 The Tenants. Despite the global economy, rents within the luxury and high-end locations continue to increase. Bond Street is destined for another substantial increase, the availability of 5 Sloane Street (Samsonite) is likely to result in best bids, Mount Street is fully let and on Regent Street, to which high-end brands have turned their attention, rents are now almost equivalent to New Bond Street near Fenwick. 3 Retail Leasing Agents. The acquisitive retail leasing agent has to manage client expectations very carefully. Grosvenors 100 acres of prime retail real estate in Mayfair is fully let or under offer, the Cadogan Estates Sloane Street is almost fully leased, Lancer Estate (Berkeley Square and environs) has only one store available within its high-end thoroughfare (29 Bruton Street) and Pollens Savile Row is let or under offer, with Gagosian Gallery securing the retail space in former Fortress House. Crown Estate owns 1.4 million sq ft in the West End; within this there is only a single 1,000 sq ft unit available. Conversely, leasing agents dealing with non-prime locations must be frustrated vacancies here are high and business failures frequent. 4 The Investment Advisors. Recent purchasers of investments read like a roll call of the United Nations: a Chinese investor acquired the Ferrari building on Regent Street and a Korean pension fund scours London for retail investments in excess of 100m. In the first half of 2009 35% of all European investment deals took place in the retail sector.
Keith Wilson, Wilson McHardy, London (tel: 020 7439 1666)

On Madison Avenue, Italian luxury knitwear company Loro Piana is expanding into a new four-storey development taking over the No. 746 space, former home of La Goulue restaurant, the former Herv Lger store at no 744, and the former M0851 at no 748. All have since relocated: Morgane Le Fay to 980 Madison, Herv Lger to 804, Oscar Blandi to the building with Alfred Dunhill at 545 and M0851 adjacent to the new Camper at 635. Creed is setting up a corner shop at 794, and Editions de Parfums Frdric Malle will open at 898. Diptyque is to open its second Manhattan store at 971. The Gagosian Gallery Shop comes to no 980 with two levels of limited edition books, furniture and fine art. Swiss beauty company In & Out has the first US freestanding boutique at no 1007, next to Missoni. On Fifth Avenue, British jeweller Garrard debuts a highprofile shop-in-shop in Saks. The East 57th Street corridor has rolled out the red carpet for French menswear brand Zilli at the Four Seasons Hotel, steps away from the new Audemars Piguet boutique at 65 East 57th. In Times Square, Polish-based cosmetics company Inglot opened its North American flagship at 1592 Broadway. In Soho, French designer Isabel Marant will launch at the corner of Broome and Greene, and her husband Jrme Dreyfuss brings his custom-designed leather handbags, currently found at Barneys and Fred Segal, next door to 475 Broome Street. Fifth on Main, at 421 West Broadway, offers a myriad of designers. Menswear retailer Seize sur Vingt moves to 78 Greene Street. Still pop-up paradise: Kai D opened at 75 Orchard Street between Broome and Grand, featuring utilitarian menswear. In the West Village, Odins third location at Greenwich and West 11th Streets is now open for business.
Faith Hope Consolo, Chairman, Retail Leasing & Sales, Prudential Douglas Elliman 00 1 212 418 2000; fconsolo@elliman.com

Half scent-ury
Italian tailoring brand Brioni has just launched a new fragrance its first for 50 years. It will produce just 7,000 bottles of the limited-edition fragrance, with the bottles inspired by the shape of a whisky glass created by glassblowers in Empoli in Italy. Each bottle is housed in a leather case. The fragrance has been produced by Firmenich. The launch serves as the start of Brionis 65th anniversary celebrations which will go on throughout 2010.

auto luxe

Double-icious
Fortunately these straitened times have not stopped gorgeous things emerging from the gates of the Ferrari factory in Modena. Latest arrival No 1 the 458 Italia (see left). Inside the eye-wateringly gorgeous body is a 562bhp, 4.5-litre V8 that will rev to 9000 rpm on its way to 60mph in 3.4 seconds, with a top speed of 203mph. And if that isnt enough to whet your tastebuds, arrival No 2 is the California, which Ferrari has just started delivering. A reincarnation of a fabulous car from the 1960s, it is slightly less powerful than its sister above and only comes as a soft-top. His and hers for the Christmas list? www.ferrari.com

Baby boot
Baby Too! Bootcamp has been launched by celebrity fitness and detox expert Amanda Hamilton. While babies and toddlers are pampered by childcare experts usually they get left behind mums will be put through their paces by fat-burning trainers and detox therapists over a five-day residential course. Some of the classes also in the programme include pramercise, baby massage and yoga and spa treatments. The first Baby Too! Bootcamp will take place at Cameron House Hotel by Loch Lomond in Scotland in January and will then be extended to other locations across the UK and Europe.

Cosmetics company MAC has opened a store in Grand Central Station. The small boutique is aimed at travellers passing through and new customers, and looks larger than its 430 sq ft due to the mirrored walls, ceiling and floor. The unit is MACs smallest in the US, but should it

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Bokks

luxury briefing 132 11:2009

Present
and

A privately financed business launching this month aims to change the face of luxury gifting. Bokks will package up and deliver collections of beautifully chosen, cool and classic luxury products, in an experience that promises as much for the giver as for the receiver. Karl Lagerfeld loved the concept so much he insisted on being part of it. KATE PATRICK got on to the rollercoaster with Chief Executive WALTER BUGNO

correct

HATS a CEO to do? He decides to reward his productive employees with individual hampers of luxurious products drawn from across several luxury sectors (watches, humidors, cigars, wallets, belts, wine etc), to make it a more original and personal offering and finds that achieving this is about as easy as persuading the Pope to go out in Dolce & Gabbana. You schlep from one counter to the next, one store to the one beyond and then you have to have it all packaged together somewhere else. Money, it seems, cant buy a great luxury gifting service. It can, on the other hand, be used to set one up. Enter Bokks (sounds like: box), a brand new business which believes theres a glaringly obvious gap in the market. Google luxury gifting, says CEO Walter Bugno, and youll come up with thousands of entries which can broadly be categorised into personal shopping (something you generally do for yourself); concierge businesses (focusing principally on tickets, travel, reservations, flowers, champagne); and small online businesses

run by ex-executives, some from home, which are successful in their own way but unlikely to threaten Net-a-Porter any time soon. There isnt anyone creating collections of beautiful gifts by aggregating different brands, mixing products, and doing it in a personal way that suits both the giver and the recipient. Three years ago, Bugno, a can-do Australian, chief executive of a casino group and very familiar with the ways of HNWIs, had been sent the draft business plan drawn up by two private investors (both successful entrepreneurs). Before he knew it, he was relocating to London to set the business up out of the corporate frying pan and into the fire of being a shareholder in a start-up venture. So we started by defining the gap: who are we targeting, what is the service were offering, and how are we going to differentiate it. Central to this is the recognition that giving should be as rich an experience as receiving the gift itself. So its a goal to make the giver look good and also to feel good about what he or she is giving. One of our catchphrases is the fine art of luxury giving. Key to the mechanism, of course, was to persuade luxury brands famously controlled, not to say unadventurous to enter into distribution agreements, and to persuade them that Bokks is, essentially, a new retail distribution channel with a strong proposition that will not threaten or dilute brand integrity. In this, the start-up has been remarkably successful. Harry Winston, for example, has never sold outside of its own stores until now. We currently have agreements with just over 100 brands. Some love it and others are waiting to see. Net-a-Porter has really been an inspiration to everyone it showed the way when everybody thought it was impossible to sell high fashion on the internet. Online is a reality today and much more developed in the US, of course. We had two key components to give us credibility as a start-up: an advisory board of people which allowed us to network into the luxury world and access different markets; and some very high profile spokespeople. Karl Lagerfeld liked the packaging so much he insisted on choreographing his own shoot, standing in front of

150 pieces of Bokks gift luggage. He said he thought it was a genius idea and helped us to shape our overall thinking. Dustin Hoffman, meanwhile, surprised us by coming up with a 10 commandments of gifting for us, which has become a bible for our people. We have 22 in our team some have worked in the corporate world, some in luxury, in fashion, or for a variety of brands and they present a really good case which recognises a clear customer need: our argument is that people dont know whats in the marketplace to buy, they dont have time to buy, or even to remember, they dont know how to be creative, theyre not confident in their own knowledge but they do have money and they want to make sure that the gift will make an impact. We need to be accessible around the clock, so there is an online service; but we are not just an online business, and this has appealed to the brands. Were delighted that we have just secured our first boutique at 29 Davies Street in Mayfair, and we will of course do home or office appointments. From the brands point of view, its hard not to be amused and seduced by the ab fab proposition of being part of the Bokks experience. OMG, Ive been Bokksd! is how Bugno envisions the response, when a glamorously attired Bokks-hop arrives at your door, dinner table or office, with a Bokks chest of miniature drawers bearing a rollercoaster of surprises, starting with Harry Winston or Bulgari and this only in the top drawer. But, as per the mission statement, this represents only half of the experience: the other half is putting the giver in touch with a gift imagineer the creative person at Bokks who will pull together an outstanding, personalised collection that will make parting with large sums of money seem like a hugely rewarding experience (the boxes start at around 250 and could go stratospheric). The service is launching in London this month, with the goal of rolling out globally from the end of the first quarter of 2010. Is it an ambitious proposition for the current economic climate? We felt that if we could structure a business that had the mindset to survive the tough times, wed be well positioned later. Interestingly, gifting is one area that takes less of a hit in fact its quite a vibrant part of the market in which to be operating, says Bugno. They chose London, rather than the more developed US, because of the notion that London is the link between heritage, luxury and quality; because of its

proximity to the major brands based there and in France and Italy; and because London itself is a microcosm of some key markets (Russian, Middle Eastern) and has exposure to significant levels of music, film and celebrity culture from which customers are likely to be drawn. The company has worked hard at creating customer bases, drawn from three main channels: organisations with their own databases or members that fit the target profile (such as Amex Centurion holders or PA associations); individual consumers, targeted through an expensive and aggressive PR and marketing programme, including an eight-page gatefold in Vanity Fair, landing the front cover of How to Spend It and hosting dinners with opinion-formers; and thirdly the corporate market. We never expected this, but its unfolding nicely, says Bugno. Were not talking 5,000 keyrings, but 10 or 20 Bokkses given at board level. At the Forbes CEO conference in Kuala Lumpur recently all the participants received a Bokks (worth about 300 each) and there will be spin-offs from that. Although the sky could theoretically be the limit at Bokks (one of our epic experiences could set you back upwards of 1m) the creative teams have devised collections based on themes, occasions, brands, categories, seasons and so on cool, beautiful products, some classics, to provide direction. A socalled VPA (very personal assistant) will be the attentive interface with the giver. Whether expensive packaging albeit gorgeously tasteful, biodegradable and recyclable in your house or office as almost anything is entirely in tune with the zeitgeist remains to be seen. But with luxury in need of a trustworthy helping hand, Bokks could find that its launch is ideally timed a burst of creative energy in a bit of a wilderness. As confirmation of that a major deal is in the pipeline that Bugno could only discuss offthe-record. Our CEO looks set to have the answer to his prayers. Time to start counting the hours until you get Bokksd.

www.bokks.com

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China bulletin

wealth report

the alternative view

Chanel-ing China

Money on the move

Luxury: who needs it?

Rob Calcraft, REN
MBLING through Selfridges the other day I was struck by the sight of the Louis Vuitton concession. There, behind a purple velvet rope, was a queue of customers meekly waiting to be allowed to enter and buy something from its hallowed interior. Opposite in Gucci were shelves upon shelves of bags with buckles, chains, jewels, rivets; all the new season must-haves, all being pored over by avid eyes. As I left I was troubled by this religion of consuming and luxury that so many of us are locked into worshipping. We work long hours, get stressed, absent ourselves from our families, take on huge debt, all so that we can buy bigger, better, more socially admired possessions, places to live and things to divert us. Sure, we all like to buy something of quality because of its intrinsic beauty, style or longevity, but this desire to have has moved far beyond this. Which is fine; except consuming and having what we have is never enough. We always want and are taught to want more. There is always a new bag, watch, car, shoes, fashion, house, gizmo that is the next must-have, must-buy. At every step our reach exceeds our grasp. We are left hungry despite constant, endless consumption. It is like a circle of Dantes Inferno. Or, to put it another way, we are donkeys walking with the carrot of luxury goods dangling in front of our faces to make us work so hard every day. Not content with doing this for and to ourselves, we brainwash our children into the cult. Competitive schooling, home tutors from an early age, endless cramming, pressure to succeed, all so that they can get great GCSEs and magnificent A levels. On to a top university, more graft and finally a great degree. And then? They want to become bankers, or hedgies, something in the city. Why? So they can be rich and buy as much as possible, become donkeys themselves and hopefully have more and better carrots to chase than their peers. Education has become vocational training for Goldman Sachs from the age of 5. I exaggerate, but you get the point. It is a trap. But a trap that most of the world is delighted to be able to fall into. India, China, Russia, Brazil are all standing behind the velvet rope desperate to enter. This wont change, these societies are too fluid, too new with their wealth not to want to display it at every turn. The world of luxury has a shimmering future in the new world and it is only just beginning. And here? Despite a recession, endless well-meaning, organic, downshifting articles later, nothing seems to have really changed. The dream is still relentlessly sold on TV though Dragons Den, X-Factor, The Apprentice, property shows etc. Luxury and having are a religion that still thrills the faithful with its calendar of Saints from St Prada to St Vuitton. So no change here either in desire or hunger; only in affordability and loading your credit card to pay for it. I am tempted to say that this is the end of history, there is no closing Pandoras box, that it will ever be thus, that when global warming melts the ice cap and the world is flooded, the last boat will be loaded with indispensable Louboutin shoes and Gucci bags. But a voice crieth in the wilderness... Luxury, Schmuxury. We dont want to play. We want silence, free time. Its just so hideously demeaning, soulless, socially transparent, manipulative and naff. Burn your trophy bags, kick off your shoes, shout that the emperor really does have no clothes, that nothing is the new everything and that the real luxury would be an end to wanting.

1 Chanel is to launch a new Shanghai boutique in December 2009. The 5,160 sq ft store is to be located in the recentlyopened Peninsula Hotel on the Bund waterfront. As with other Chanel boutiques the design has been overseen by Peter Marino, and the store features a series of salon-style rooms designed to replicate the feel of Coco Chanels rue Cambon apartment. Decorative features include French antique pieces as well as chic mid-20th century furnishings and modern commissions, including an artwork by Jean-Michel Othoniel designed to invoke the idea of a giant, swirling strand of pearls suspended from the ceiling. The different rooms are devoted to ready-to-wear, eveningwear, shoes, accessories fine jewellery, watches and an ultraluxe gallery with designs created by Chanels couture atelier in China. There is also a VIP suite. Chanel currently has five boutiques on mainland China and eight in Hong Kong. Chanel has said that it also plans to open a new store in Hanzhou before the end of 2009. 2 US accessories brand Coach has announced plans for its first flagship on Chinese mainland. The Shanghai store is due to open in spring 2010, with the launch accompanied by the opening of a Chinese distribution centre to support the brands planned expansion in China. 3 The Upper House has now launched on Pacific Place in the Admiralty area of Hong Kong. The 117-room hotel is the sister property to The Opposite House in Beijing which launched in 2008, both opened by Swire Hotels. Features of the hotel include a roof garden, sky lounge and restaurant with 14-metre bar one of the longest in Asia on the 49th floor. The interiors have been designed in an Oriental style by Chinese architect Andre Fu and use a wide variety of original artworks in both the bedrooms and public areas. Swire Hotels will also open a 345-room lifestyle business hotel called East in Taikoo Shing, Hong Kong, in January 2010. 4 A new study by Intelliconsulting Corp predicts that Chinas online market will exceed CNY268 ($39.2bn) in 2009. It estimates that this will grow to CNY464bn in 2010, accounting for more than 3% of Chinas total retail sales. 5 The number of Chinese travelling is growing. The Chinese Ministry of Commerce reported that 228 million Chinese left home during the first week of October a national holiday marking the 60th anniversary of the Peoples Republic marking a 28.5% increase year-on-year. During this time $14.75bn was spent on travel, up 26.5%. Beijing was reported as being the top destination, with 15 million visitors, a 59% year-on-year increase followed by Shanghai, Hanzhou and Chengdu. During the period nearly 600,000 visited Hong Kong and 420,000 went to Macau. 6 A recent Goldman Sachs study has predicted that Chinese luxury consumption will reach $5bn for 2009. This marks a notable rise on the $3bn recorded for 2008.

1 As a sign of changing consumer sentiment, for the first time in a decade Neiman Marcus has failed to include its Fantasy Gift an item with a seven or eight figure price tag in its yearly Christmas Book catalogue (Wall Street Journal). Whilst in the past the publication has included a $20m submarine and a $10m Zeppelin, the most expensive item this year a two-seater Icon aircraft is worth only $250,000. Though these ber-luxury items are not always intended to sell (only one $1m item has been sold in the past) they are a symbol of aspiration and a reflection of the climate in which they are offered. The overall value of the catalogue has also dropped this year, almost 50% of the items cost less than $250 compared to between 30-40% in the past five years. 2 Luxury continues to prosper in China 90% of wealthy Chinese have purchased a designer handbag in the last 12 months (Pao Principle). Nearly two thirds of men and a third of women have bought luxury watches in that time period with a further 30% having bought from Tiffany which was also the most popular fine jeweller. 3 Serious disruption has been predicted in the Wealth Management industry as Baby Boomers who control $10 trillion in assets approach retirement and prepare to change their investment policies (Reuters). The main focus will be on maintaining the wealth that they have built as opposed to creating more. Blackrock believe that decumulation will be a priority for this group as they become more aware of the need to ensure their futures in light of the recent instability. 4 The promise of low tax, financial privacy, good education and good health are being cited as the reasons many high net worth individuals are moving to Switzerland (Wealth-Bulletin). Half of the richest 300 in Switzerland are foreign nationals, despite the prime property market rising 5% each year for the last five years compared to London and New York where prices have fallen 40% and 30% respectively. 5 Europes largest contemporary art fair, Frieze, opens this month. Though the total number of galleries exhibiting will be up 9% from last year to 165, 28 galleries have pulled out (Bloomberg). Elsewhere, research has shown that prices for contemporary art have fallen as much as 40% in the past 12 months, with Damien Hirsts butterfly paintings down 41% (ArtTactic). 6 The sales of celebrity-licensed products have suffered a significant drop since their 2005 peak of $3.5bn (Licensing Letter). The trade publication predicts the trend will continue to fall as sales in 2008 reached a mere $2.9bn. Despite the help these brands have received from constant magazine and blog exposure their reliance on celebrity association and not on trend alignment has been their downfall.
Taken from Ledbury Researchs High Net Worth, a monthly digest of news, analysis, trends and forecasts about the worlds wealthy. Please contact highnetworth@ledburyresearch.com

Frank Sawkins

&A

Founder, Czech & Speake

WHAT IS YOUR FAVOURITE... RESTAURANT? I do my best, single handed, to keep Mr Carings empire going and LAmi Jean in Paris, a small extremely busy bistro in the 7th arrondissement, serving fantastic nose to tail Basque food, always a great atmosphere with interesting food. ...HOTEL? Le Touessrok in Mauritius. My wife and I go every year in February for some sun. BEST CUSTOMER SERVICE? Louis Vuitton in Lyon: the young man serving us knew his products so well, good storytelling and service. Hoares Bank in Fleet Street has the best service I have ever experienced from a bank. WHERE WOULD YOUR IDEAL HOLIDAY BE? With my wife, children and friends at our beach house on the ocean near Bordeaux, where I like to sketch, cook outside and shop for the best ingredients. If only I could get the building work finished! FAVOURITE ITEM OF CLOTHING? A very old and highly polished pair of Trickers brogues, and an early Margaret Howell donkey jacket. YOUR IDEAL WATCH? A 1930 Boucheron watch my wife bought me for my 40th birthday and a Rolex GMT I bought in 1972. YOUR IDEAL CAR? My 1970 Bristol 411 which is being rebuilt at the moment. DO YOU COLLECT ANYTHING? Ukiyo-e, Japanese wood block prints, and architecture and design books from the first half of the 20th century. WHAT ARE YOU DREAMING OF BUYING? Subject to Lord Marchs indulgence, a days racing round Goodwood circuit guided by Rob Wilson, a senior racing driver who teaches F1 drivers. He can get a diesel Vauxhall Astra lapping almost as quick as Jim Clark saloon car circuit record, while talking and smoking out the window! Otherwise, a Neutra house in Palm Springs.

Rob Calcraft is Founder and CEO of REN Skincare and formerly worked in the advertising industry

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financial reports

the outside edge

the TAG luxury stock index

Year-to-date (as of 16/10/09), the TAG Luxury Stock Index is up 50.1%, outperforming the major market indices (year-to-date, the S&P 500, France CAC 40, FTSE 100 and Japan Nikkei 225 were up 20.4%, 18.9%, 17.1% and 15.8%, respectively). Over the last month (since 16/9/09), luxury stocks have continued to outpace the broader market: the TAG Luxury Index increased 4.5%, higher than the major global stock indices, which rose, on average, 1.2%. The biggest gains were registered at Burberry (+16.5%), Swatch Group (+11.3%), and Tiffany (+8.5%), while Escada (-17.9%) and Herms (-2.2%) witnessed the only declines during the month. So far in 3Q09, we have started to see confirmation of an improvement in topline trends vs 2Q09 from a wide sample of our luxury names. Burberry reported a 2Q10 (CY3Q09) constant-currency sales decline of (5%) vs 8% last year, reflecting a sequential improvement at both its retail and wholesale divisions. Meanwhile, LVMH's Fendi brand reported an uptick in US sales in early September and noted that August was better than July. Additionally, Tod's indicated that September sales grew in the singledigits vs (1.5%) in 2Q09, while Bulgari noted that 2H09-to-date sales have improved significantly from (28.9%) in 1H09 at both retail and wholesale. These data points give us increased confidence in our outlook for a sequential uptick in sales as most of our luxury names lap significantly easier comparisons in the back half of the year (especially in 4Q09).

global macro-economic overview

United States: Compiled at the end of September, the Conference Boards Consumer Confidence Index declined 1.4 points to 53.1 from 54.5 in August. In addition, the Present Situation Index also decreased to 22.7 in September from 25.4 in the prior month, while the Expectations Index dipped to 73.3 from 73.8 in August. The downward movement was driven by a less favorable outlook on both economic and employment conditions. Shortterm consumer expectations in September were slightly more pessimistic: those expecting business conditions to improve over the next six months dropped to 21.3% from 22.2% in the prior month, outweighing a slight improvement in those expecting business conditions to worsen, which declined to 15.0% from 15.2% in August. Eurozone: In September, the Euro-areas economic sentiment index (ESI) increased for the sixth consecutive month by 2.0 points to 82.8 vs the prior month, reaching a one-year high, reflecting improved confidence in all sectors except retail trade. Confidence amongst retailers declined by 1 point. Amongst large member states, retail confidence was mixed: the UK (+ 9 points), Germany (+2 points), and Spain (+1 point) improved, while Belgium (-7 points), Italy (-6 points) and France (-2) deteriorated. The biggest year-over-year gains in retail sales were registered in Austria (up 1.3%), the UK (up 0.9%) and Sweden (up 0.2%), while the weakest markets included Spain (down 4.1%), Germany (down 2.7%), Denmark (down 2.4%) and Portugal (down 2.1%). Japan: In September, the Consumer Confidence Index of Tokyo ticked down to 42.0 from 42.2 in August. The monthly measure concerning the consumer assessment of income growth also retreated to 39.4 from 40.0 in the prior month, while the consumer assessment of the employment situation rose by 0.5 points to 38.0 in September. Emerging Markets: Chinas September exports declined for the 11th consecutive month, down 15.2% vs (23.4%) in August, marking the lowest drop in nine months. September imports fell to its slowest pace in 11 months, down 3.5% after a 17.0% decrease in the prior month. Indias August exports decreased 19.4% to $14.3bn, following a 28.4% drop in July, while imports fell 32.4% to $22.7bn vs a 37.1% decline in July. The dynamics resulted in a widening trade deficit to $8.4bn in August from $6.0bn in July. Spurred by government stimulus efforts and low interest rates, India's August industrial production jumped 10.4%, the highest gain in 22 months, up from 7.2% in July. Russias September industrial production contracted for the eleventh consecutive month, down 9.5% vs a 12.6% drop in August, marking the slowest decline in 10 months. The modest improvement was driven by a pick-up in demand for raw materials and metals. Meanwhile, the annual inflation rate fell to 10.7% in September from 11.6% in August, below the Economy Ministry's official forecast for a 2009 increase of 11.6%-12.0%. The inflation rate marks the countrys slowest pace in two years and could encourage further rate cuts in an attempt to stimulate the economy Dana Telsey, CEO & Chief Research Officer Telsey Advisory Group, tel: +212 973 9700

Chris Sanderson Martin Raymond

&
served at some of Londons most luxurious restaurants? The fact that denials were swiftly issued by all restaurants concerned is testament to the growing sensitivity brands especially luxury brands have about being cast in a bad citizen light, or worse still, as an organisation out of step with the increasingly complex values of todays luxury consumers. Values, we suggest, that are set to become even more judgmental and challenging as wealthy consumers themselves are nudged into place by a growing social pressure globally that demands us to take a stance that

Year-to-date the TAG luxury stock index is up 50.1%

UST back from a quick, well-earned break at Tresanton, Olga Polizzis little sprinkle of luxury on the rump of St Mawes, Cornwall. We were down west talking at University College Falmouth and decided to take advantage of a weekend sunburst that saw the Fal estuary lit up like a polished stretch of the Amalfi coast. In this light, the maritime charms of Tresanton are irresistible; its terraces tinkle with the convivial rattle of glassware while its dining room, white-boarded with expansive views to the sea, hums with the honeyed words of discreet wealth wondering when the current recession will pass, and business as usual can be declared once more. For Federica, the GM at Tresanton, as far as the future is concerned, wealth, and the display of it, will be a less showy, far more culturally engaging affair. Doubtless this is the reason why the hotel holds regular music festivals in the nearby Methodist chapel, ditto writers evenings, even voice coaching and musical workshops, for guests and visitors keen to push themselves emotionally, intellectually and culturally. And push them they should for if luxury is going to be about anything for the approaching decade, it is going to be this an experience that embraces self-fulfilment, encourages debate, promotes curiosity and eschews excess, especially if the latter smacks of waste, moral torpor and intellectual or emotional flatulence. Strong stuff, but its our belief that we are about to enter a period weve dubbed The Turbulent Teens, a decade of considerable change fraught with the kind of challenges we can no longer ignore about sustainability and climate change, yes, but also about where we as brands, people and CEOs stand on the key issues of the day. Matters that are increasingly problematic as consumers become more demanding and informed on one hand, and more conservative and judgemental about issues once regarded as personal or traditional lifestyle choices on the other. Smoking, drugs and alcohol we know about, but what about our ability (or otherwise) to live up to the growing pressures of being a good carbon citizen? Or to spend frugally when we are out and about, or to buy with a sense of purpose and stealth, despite the fact that our own personal wealth may not have declined that drastically over the past two years? And what about the growing need among our New Mass Affluents to demonstrate their good citizen credentials by avoiding fish contained on the red list of endangered species allegedly

If luxury is going to be about anything for the approaching decade, it is going to be this an experience that embraces self-fulfilment, encourages debate, promotes curiosity and eschews excess

is clear, unequivocal, and more austere in its sensitivities and executions. In this landscape, luxury brands will find it harder to sidestep issues that are morally challenging, or socially complex merely because it was once expedient to do so (the use of fur, child labour, conflict diamonds, the pelts of endangered species) but rather, as with their customers, they will have to choose: either a path that embraces a new sense of luxury that is sustainable, culturally empowering, globally responsible and socially aware, or one that believes it will be business as usual as soon as the present spot of bother is past. We know which one we are choosing. www.thefuturelaboratory.com

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luxurious allsorts

Location, location, location

Stephen Bayley
Those Sloane Street rents? Is this madness I see before me? Like most tropes, location, location, location is only a half truth. But at least thats 50 per cent better than the cheque is in the post. Always a dubious assertion, nowadays it has turned into a frank insult. You might as well say of money owed, Whistle for it, sunshine. Maybe tropes have had their day....
Greenwich Peninsula was as stuffed with toxins as William Burroughs at Jack Kerouacs birthday party. An orange plastic boundary layer had to be laid beneath the Tent to prevent noxious vapours arising as if from Hades. Trucks had to go through wheel-washers before going off-site, the better to prevent the spread of poisonous toluene and organo-phosphates throughout south London. And, although here we dabble in metaphysics, it is irresistible to suggest that the miasma arising from the bog had some sort of melancholy effect on Tent management, if that is the right word. The Richard Rogers Partnership had designed a most elegant and impressive structure whose quality may be sussed from the speed with which its silhouette was appropriated into visual code for London. Yet the Millennium Experience, a redundant amplification which Mandy insisted on, was dire kitsch and properly ridiculed. Many people blamed the site in this forbidding part of London. Others cited its poor communications: there was a new tube, but road was impossible and the rivers potential is difficult to realise. Yet 10 years on The 02 Arena on the very same forbidding site has become Europes most popular concert venue. Transport arrangements are largely unchanged and the peninsula has not moved, so location, location, location seem to have small relevance to customer enthusiasm. True, the magnificent, but absurdly cavernous Tent, has in fact been filled with a new more practical building, but the reasons for 02s success are independent of site and structure. It is managed with conviction and has an absolutely clear sense of identity, whereas the Millennium Experience was organised like a Japanese fire drill and there was not a single person able to explain what it was meant to be. They had to ask focus groups. So heres the site-non-specific version of The Better Mouse Trap Argument. Do something with clarity and conviction and the world will beat a path to your door... even if it is on a toxic bog.

And when it comes to location, I am not even certain which half of the half-truth is correct. Although it is an unexamined nostrum of the cufflinked property trade, the argument that site is one of the most important attributes in determining the viability of any business is very far from conclusively proved. There can be no better example of this than Greenwich Peninsula. This was the site of the original Millennium Dome of which exercise in brainless, flatulent, profane narcissism I was very briefly and hilariously Creative Director in the roseate days of The Blair Dawn... which now seems as historically distant an era as Kipling and his hearty yarns of Imperium. Of course, it wasnt a dome at all, a dome being a selfsupporting hemi-spherical masonry or brick structure. It was a tent. But fully congruent with the glazed megalomania of the day, Millennium Tent did not have the requisite WF (wow factor) on the PMS (Peter Mandelson Scale). So Dome it was. And this site was actually, and later metaphorically, a toxic bog. Actually, to tell the truth it was also an inaccessible toxic bog. After years of abuse by the predecessor of British Gas, the subsoil of

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This month we see evidence of positive action being taken across the luxury industry as smart brands battle the downturn. In the Luxury Indicator, Dana Telsey of Telsey Advisory Group observes how Louis Vuitton, Gucci, Coach, Oscar de la Renta, Zac Posen and Este Lauder are amongst the brands rebalancing their prices to reflect what is affordable and acceptable to shoppers now a move that could be viewed as a fight-back against those who have accused luxury brands of over-inflating prices in recent years. In this issue we also show concrete reasons for the luxury industry to be positive. Despite early predictions of store closures in retail honeypots across the world, London property experts Wilson McHardy report that there are currently just two properties available for rent on Londons prime luxury shopping streets. Bad news for those looking for a store space but good for those who are hanging on in there. On the financial side, it is notable that the TAG Luxury Stock Index is up no less than 50% year-to-date, outperforming other major market indices by a significant margin. Last year the theme of the Luxury Briefing Conference was Emerging Luxury, examining new destinations that brands should be investigating. Some doubts have been expressed about China but it is interesting to

There are currently just two properties available to rent on Londons prime luxury shopping streets
note that Louis Vuitton has just launched its first store in Mongolia, Chanel has announced plans for its first Shanghai flagship, Coach has cited the region as its key focus for medium-term expansion and, as reported last month, Cartier is pouring considerable resources into exhibitions, events and retail launches in the region. Finally, this is the last issue before the 2009 Conference. This years event is titled The new luxury environment: Smart ideas for challenging times and will take place on 19th November at the RIBA Building in London. Only a few places remain so please do book as soon as possible for what will be a thought-provoking and invigorating day. James Ogilvy Publisher

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