Punit Vermma’s Post

In New York today, checking out the Lux and retail scene, and reading the excellent Financial Times Special Report on Watches and Jewellery. Interested in this article, especially as I choose independent jewellers often - and I’m doing much of 5th today and will check out the Diamond Quarter: “Independent jewellers realise potential of physical stores” by Kate Youde. https://on.ft.com/4fpfDvB New openings by jewellery makers increased 30% last year, according to property group Savills and their Global Luxury Retail 2024 Outlook, responding to two trends in luxury retail: a return to physical and personal experiences and a shift from wholesale to retail seen over the last two decades or so. https://lnkd.in/eBJN7Crt ___ #NewYorkRetail #Luxury #BagCharm #JaneBirkin #DingleDangler #FTSpecialReport #RetailTherapy #TheCPGGeek #IBMRetail #IBMConsumer #FMCG #ConsumerGoods #Retail 💙 Proud to be a #RethinkRetailTopExpert - RETHINK Retail #RethinkRetail 💙 Proud to be an #NRFRetailVoice - National Retail Federation #NRF

💰 Louis Vuitton and Hermès are pouring MILLIONS into Hong Kong luxury retail. Here's what you need to know. 🏙️ Iconic Hong Kong mall, Landmark Plaza, is undergoing a $1 billion transformation into "Tomorrow's CENTRAL," a luxurious retail hub. With a $600 million investment from premium brands like Louis Vuitton, Hermès, Chanel... and $400 million from Hong Kong Land, this investment will double the retail space to 220,000 sq ft. The GOAL? To help these luxury brands build more expansive flagship stores with high-end custom studios and additional services like private dining and VIC salons for high-net-worth customers. So, what fuels their confidence in this massive $1 billion renovation?  💰 Hong Kong boasts a high concentration of WEALTHY RESIDENTS. In 2023, 80% of Landmark Plaza's sales came from loyal high-net-worth customers who spend, on average, HK$1 million annually and visit the mall every other week.  💸There's also a growing influence of Generation X and baby boomers in the luxury market. As these demographics continue to accumulate wealth, their impact on luxury spending is expected to rise even higher, making them a potential top customer group. However, the following CHALLENGES remain:  🌏 As the yen-dollar exchange rate fell to a decades-low, neighboring JAPAN has taken over the luxury shopping boom that Chinese consumers previously experienced in Hong Kong and Europe. Additionally, Hong Kong is facing rising competition from Mainland China’s DUTY-FREE destinations like Hainan and Macau (see my recent LinkedIn post on this ;)). 💵 PwC also pointed out that the continued strength of the US and Hong Kong dollar may NARROW the luxury price gap, reducing Hong Kong’s price advantages. 🌟Despite these challenges, the strategic investment underscores the brands' belief in Hong Kong's potential. The city's unique position as a global wealth center with a significant number of high-net-worth individuals remains a compelling factor. Additionally, events like Chanel's upcoming fashion show in Hong Kong and Louis Vuitton's recent store reopening signal strong brand commitment to the region. 📊 With strategic marketing and retargeting efforts, brands can sustainably drive and re-engage Chinese consumers, whether they’re traveling to Hong Kong, shop in China, or other global markets. Do you think this massive investment by luxury brands in Hong Kong is a smart move? Thank you Drizzie Zuo for the insightful sharing on LadyMax. #HongKong #Luxury #CRM Image source: (1) LADYMAX 

Prada is poised to unveil an exquisite 8,000 square foot boutique within the opulent K11 Musea, the leading waterfront shopping destination developed by New World Development. The construction of this two-level retail haven is set to commence shortly, with an anticipated grand opening in early 2025. This marks a significant milestone for Prada, as it represents the brand's first substantial new store in Hong Kong in several years. The luxury fashion house previously closed its flagship location in Causeway Bay in 2020, concluding one of the city's most exorbitant retail leases, which commanded a staggering monthly rent of HK$9 million (approximately US$1.2 million). Once boasting nine outlets in the vibrant city, Prada now operates six. In a notable trend, global luxury brands are increasingly reestablishing their presence in Hong Kong's prime business districts, drawn by property prices that have significantly decreased from pre-pandemic levels. In Tsim Sha Tsui, the area where K11 Musea is situated, the average rent for retail spaces along major shopping thoroughfares remains 45% lower than it was in 2019. The affluent residents of Hong Kong have provided a measure of stability for international brands amidst a downturn in sales in their primary market of Mainland China. Additionally, this shopping mecca continues to be a favored destination for mainland tourists, further enhancing its allure for luxury retailers.

💼 Louis Vuitton, Hermès, and other luxury brands are investing $600 million into transforming Hong Kong's Landmark Plaza into "Tomorrow's CENTRAL." This $1 billion project will double retail space to 220,000 sq ft, featuring high-end studios, private dining, and VIP salons, targeting the city's affluent residents and growing high-net-worth demographics. 💎 Despite challenges like competition from Japan and Mainland China, plus narrowing price advantages, brands are confident in Hong Kong’s potential. Strategic marketing and events like Chanel’s fashion show and Louis Vuitton’s store reopening aim to re-engage wealthy consumers. Is this massive investment a smart move?

The transformation of luxury retail experiences, exemplified by Dior's innovative approach in Paris and other brands like Gucci and YSL expanding their flagship stores, signifies a notable shift towards immersive and inclusive shopping environments. These spaces are no longer just about selling products but about creating memorable experiences and fostering a sense of community. Innovative initiatives such as permanent museums, restaurants, and even apartments within flagship stores demonstrate a commitment to offering customers more than just a shopping destination. These experiences, combined with curated events, pop-up shops, and special collections launches, aim to engage customers on a deeper level, encouraging longer stays and enhancing brand loyalty. #LuxuryBrands #Fashion #Retail #BrandLoyalty

🥁 Luxury Retail It refers to the sale of high-end, often exclusive and prestigious goods or services. These goods typically exhibit superior quality, craftsmanship, and exclusivity, which often command premium prices. Luxury retailers focus on providing an exceptional shopping experience, personalized customer service, and often operate in upscale locations. Examples of luxury retail sectors include fashion, jewelry, watches, automobiles, accessories, cosmetics, and high-end electronics. Key characteristics of luxury retail include: 1. Exclusivity : Luxury brands often limit the availability of their products to maintain an aura of exclusivity, which enhances their appeal to affluent consumers. 2. Quality and Craftsmanship : Luxury goods are typically made from the finest materials and undergo meticulous craftsmanship to ensure superior quality and durability. 3. Brand Image and Prestige : Luxury brands invest heavily in cultivating a strong brand image associated with prestige, sophistication, and status. 4. Price Premium : Luxury items command higher prices compared to their mass-market counterparts, reflecting their superior quality, craftsmanship, and exclusivity. 5. Exceptional Customer Experience : Luxury retailers prioritize providing exceptional customer service, personalized shopping experiences, and often offer additional services such as customization and concierge services. 6. Iconic Design and Innovation : Luxury brands often set trends and push boundaries in design and innovation, creating iconic products that become status symbols. 7. Selective Distribution Channels : Luxury brands carefully control their distribution channels, often opting for exclusive partnerships with high-end department stores or operating their standalone boutiques in prime locations. 8. Heritage and Tradition : Many luxury brands boast a rich heritage and legacy, which adds to their allure and contributes to their timeless appeal. Overall, luxury retail is driven by the desire for status, exclusivity, and superior quality among affluent consumers, and it plays a significant role in shaping trends and consumer preferences in various industries.

Accessible Luxury: Let's talk about a trending retail term, thanks to Tapestry Capri Holdings Limited merger and rising luxury prices. 🛍️Accessible Luxury: The Tantalizing Yet Risky Middle Ground 👀 I've been closely watching the rise of "accessible luxury" - that lucrative sweet spot price range of $200-$800 where brands can offer quality and style without astronomical luxury price tags. With recent acquisitions like Tapestry's pursuit of Capri putting this category under scrutiny, it's clear accessible luxury is where brands want to play. However, there are valid concerns about getting stuck in this middle ground. ⚠️ The tricky positioning: While accessible luxury fills the gap between fast fashion and true luxury, it's also a precarious place to be. In tough economic times, consumers on a budget may trade down to fast fashion, while the highest luxury spenders rarely change habits. Those stretching to buy accessible luxury risk being the ones most impacted by financial constraints. 👛 Feeling the Pricing Pinch: Brands operating in this middle tier also have less flexibility on pricing often because the quality is still very high. 💡 Curation is Key: Brands can't just haphazardly release pricier items and expect them to work. Curating an intentional collection with a true luxury aesthetic is essential. Brands like STAUD have found success through dedicated bridal lines capturing the upscale audience. There are also a number of handbag lines doing really well in the accessible luxury space: Mansur Gavriel LITTLE LIFFNER and Cuyana are a few examples. 🚀 The middle ground is always risky, but the rewards of hitting that accessible luxury sweet spot could be massive for brands that navigate it successfully. While economic conditions will continually pressure this segment, its growth potential remains stellar for those making the right investments and tradeoffs. ❓What's your perspective on the accessible luxury opportunity and challenges? I'm always eager to discuss this fascinating space. Let me know your thoughts! This article by Madeleine Schulz for Vogue Business is a great read on the Accessible Luxury space.

As global luxury cools, brands are carefully shifting their retail footprint and investments in the crucial China market. First-tier cities may offer a concentrated, wealthier and fashion-savvy demographic, but lower tier locales offer less luxury saturation and thus more opportunities for creating hype and education. Balenciaga for one has begun renovations for its new store at Urumqi Mei Mei Shopping Center, marking its first boutique in Xinjiang. While the likes of Balenciaga ramp up their China expansion, other luxury players have turned more cautious. Who's found the right balance? https://lnkd.in/eYUGnSAP

List of the Top 5 Sites to Buy Luxury Handbags Online in India When it comes to luxury handbags, nothing quite matches the allure of a finely crafted piece that not only elevates your style but also signifies sophistication and elegance. For those of us in India, the hunt for the perfect luxury handbag can be a delightful journey, especially with the convenience of online shopping. https://lnkd.in/gFsYF-ix

𝗛𝗼𝗻𝗴 𝗞𝗼𝗻𝗴'𝘀 𝗟𝘂𝘅𝘂𝗿𝘆 𝗥𝗲𝘁𝗮𝗶𝗹 𝗥𝗲𝗻𝗮𝗶𝘀𝘀𝗮𝗻𝗰𝗲   “I teach and talk about Luxury in Asia” is part of my profile headline and earlier this week I posted about luxury retail at its best with the opening of the new Sotheby’s Maison in Hong Kong’s prime retail location. Combining art and exploration, retail and inspiration. I am honoured to be recognised in Inside Retail Asia's latest article, "The art of luxury retail: How Hong Kong is reclaiming its name as a VIP hotspot," where I shared my perspectives on the evolving luxury market in Hong Kong. 𝗥𝗶𝘀𝗶𝗻𝗴 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 Despite economic headwinds, luxury brands like Cartier, Chanel, Hermes, Prada, and Van Cleef & Arpels are expanding their presence in Hong Kong. Improved leasing conditions and an anticipated recovery in luxury spending are driving this renewed confidence. Brands are strategically positioning themselves to benefit from future economic improvements. 𝗥𝗲𝘁𝗮𝗶𝗹𝗲𝗿 𝗔𝗱𝗮𝗽𝘁𝗮𝘁𝗶𝗼𝗻𝘀 & 𝗙𝘂𝘁𝘂𝗿𝗲 𝗧𝗿𝗲𝗻𝗱𝘀 Luxury retailers in Hong Kong are enhancing in-store experiences and integrating digital innovations to attract UHNWIs. Personalised shopping experiences, VIP services, exclusive events, and seamless omnichannel retail are becoming standard practices. To stay attractive to both loyal and new visitors, brands will continue to offer more immersive shopping experiences, leveraging digital innovations such as AI and virtual reality, with a focus on experiential and sustainable luxury. 𝗠𝗮𝗿𝗸𝗲𝘁 𝗥𝗲𝘀𝘂𝗿𝗴𝗲𝗻𝗰𝗲 The easing of COVID-19 restrictions and the strategic positioning of Hong Kong as a global luxury hub are contributing to the sector’s resurgence. High-profile events like Art Basel and unique offerings from luxury houses are drawing attention back to the city. 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗔𝗵𝗲𝗮𝗱 While the outlook is promising, challenges remain. Geopolitical tensions, economic fluctuations, and changing consumer behaviours pose significant hurdles. Additionally, competition from other attractive luxury retail locations have increased, and the scrutiny of ostentatious spending by Mainland China can impact luxury sales. It is crucial for Hong Kong to attract younger, wealthy demographics and recover tourism momentum. Hong Kong’s luxury landscape is evolving, and these strategic developments are paving the way for a promising future. I am excited to see how these changes will shape the market and continue to solidify Hong Kong's status as a global luxury hub. Hong Kong, Tokyo, Singapore, or another place — which is your favourite hub for luxury retail in Asia? #luxuryinasia #hongkong #luxuryretail Hi, I am Matthias Weiskopf. I teach and talk about luxury in Asia and customer-centric strategies. I combine market insights and real-world experience to achieve sustainable sales and marketing excellence for my clients. ➡️ DM me for a discovery conversation