Luxury Burger

Just read from another blog that Burger King has now launched a luxury burger that costs $170 dollars (1020 Swedish crowns)! This raises several questions - can a hamburger be classified as a luxury food item? Is it in the same category as caviar or champagne? Or is this hamburger just well over priced and its brand has taken on more than it can handle by entering the luxury food market? See also a related post where I comment on Burger King's plans to launch games on mobile phones - you have to really start to question what kind of brand strategy does BK have.

Luxury Brands in New Markets - India

Here is an interesting report from BBC news on how luxury brands are making head way in India and among brand savvy consumers.

Luxury Brands in New Markets - continued

Luxury brands in emerging markets has also been one of themes I have been following on this blog. Here is an interesting CNN interview with Uri Baruchin who comments on the sucess of luxury brands in new markets such as China. See also my previous post about luxury brands in China and Russia.

Future of Shopping and Luxury in Stockholm

The University College of Arts, Crafts and Design is co-operating with a centrally located shopping center called Gallerian in Stockholm to open a luxury butik which represents the Future of Shopping and Luxury in the next 20 years. Students of the college will provide their ideas and visions of what is luxury in the future. An exhibit is scheduled for Feb.5-14, 2008. I will report more on the exhibit in February.

Supreme Luxury: Moscow '07

I have just recently read about The International Herald Tribune's (www.ith.com/luxury) seventh annual luxury business conference in Moscow Nov. 28/29, 2007. Russia is the fourth largest luxury goods market in the world and boasts on having 53 billionaires. This exciting economy breads consumers hungry for luxury brands as I have previously blogged on. Here is short summary of an article by Liz Alderman.

In Russian luxury market, companies strategize to reach the rich consumer
Russia's rapidly developing market, where huge oil wealth has already helped spawn 53 billionaires, requires manufacturers to address cultural sensitivities.

MOSCOW: With the ranks of millionaires and billionaires skyrocketing across major emerging markets, luxury goods companies are pursuing aggressive strategies to capture consumers who are seeking to display their newly minted wealth like badges of honor.
But tapping into the staggering growth in high-net-worth individuals requires a nuanced approach from market to market, industry executives at a luxury conference organized by the International Herald Tribune said Thursday. The pitch should cater to cultural sensitivities while cutting through the red tape that might raise hurdles to expansion, they said.

Read more here: http://www.iht.com/indexes/special/moscow2007/index.php

Lecture tips: What is luxury?

An interesting lecture titled "What is Luxury?" will be held this Tuesday, Dec.4, 6:30 pm at the Nobel musuem in the Old Town in Stockholm. Three students from the Design program at Växjö University will present their research on luxury and that global environment, security and good health can be an alternative to luxury. This sounds very exciting! I will definitely be there.

PS. My copy of "Deluxe, How luxury lost its luster" by Dana Thomas has now arrived and interesting reading!

Luxury Brands in New Markets Part 2 - Russia

It is no surprise that Russians are very fashion and luxury conscious as their economy is on the rise. In the continuing series of surveys on Luxury Brands by Time magazine, the most well -known brands in Russia are:

Versace: 95%

Dior: 95%

Chanel: 93%

Giorgio Armani: 92%

And two Russian designers who are new to me but apparently known for their luxurious fashion:

Vyacheslav Zaitsev: 93%

Valentin Yudashkin: 92%

More to come on this subject of luxury brands!

Luxury Brands in New Markets - China

In a recent surve from Time.com, they have looked at the presence and consumption of luxury brands in new markets, such as China. We all know that China boasts a population of over 1 billion people. Behind these statistics grows a strong consumer group who are craving for the same luxury that we have enjoyed here in the "West". According to the survey, the most recognised luxury brands are:

Rolex: 76%

Lacoste: 72%

Valentino: 71%

Chanel: 66%

Dior: 55%

I wonder what these luxury hungry consumers would think when these exclusive brands are being manufactured in their own back yard in Chinese factories?

Mainstreaming of Luxury Brands - Part 2

Have just read a review about a very interesting book by Dana Thomas called, "Deluxe. How Luxury Lots Its Luster." This is a book I have on my Christmas wish list and seems to have alot of the same ideas I have about the mainstreaming of luxury brands. I love the book cover where the exclusive PRADA name is branded as a McDonald's meal! Here is a short description of the book:

-Dana Thomas, a journalist who has covered style and the luxury business for The Washington Post, Newsweek and The New York Times Magazine from Paris for the past fifteen years, digs deep into the dark side of the luxury industry to uncover all the secrets that Prada, Gucci and Burberry don't want us to know. Traveling from the laboratories in Grasse, where the ingredients for Christian Dior and Prada perfumes are produced, to the crowded factories in China, where workers glue together "Made in Italy" bags by the thousands, Thomas explores the whole of today's high-end shopping experience to answer some pressing questions: What is the new definition of luxury when advertising for this lifestyle is targeted mainly toward the mass market? What are we paying for when quality has given way to quantity? Can integrity survive in a corporate culture driven to meet regular growth and profit projections? Is luxury still the best that money can buy?

When does a luxury brand become mainstream?

Read an interesting article about how luxury brands are at risk of becoming mainstream because of their overexposure on the market. This is an interesting thought as we see more and more brands like Chanel, Gucci, Rolex, Armani, Lacoste (see my previous blog post about Lacoste: http://360view-molsson.blogspot.com/2007/07/lacoste-just-doesnt-get-internet.html) etc. opening stores all over the world. Has easy access internet devalued the luxuriousness of these brands' value? Where do these brands cross the line of exclusivity to mainstream? If a top proportion of Chinese consumers (with a population of 1 billion) want to by a Rolex, how many Rolex stores should be accessible in China to meet this demand? I plan investigate further this concept of the "devaluation of luxury brands". I would love to interview the brand managers of these top brands. Any thoughts from my readers are welcome!