Luxury 2016: The Year of the Struggle

Categories:Other Brands

According to the Chinese calendar, 2016 is the year of the monkey. Well it also appears that for the luxury market, it’s the year of the struggle.

We wrote about Hermes’s updated financial projections, but now we have some more numbers from across the industry for comparison. While Hermes didn’t get a lot of credit for its sluggish growth projections, seeing these other numbers makes them look downright fantastic. In case you haven’t noticed yet…2016 is going to be another hugely challenging year for luxury.

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Burberry recently released updated financials, and they’re in serious trouble. Comparable sales, a measure excluding fluctuations from store openings and closings, was down over 2% over the past six months and the company projects 2017 wholesale revenue to tumble a whopping 10%! Their shares in turn took a beating. As we’ve continued to report here, the company is blaming the usual culprits: weakening demand from Hong Kong and China and currency fluctuations in Europe.

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We’ve also heard from LVMH and things are equally bad. First quarter revenue growth failed to meet analyst expectations and sales in the fashion and luggage verticals were totally flat.

Not to be outdone, Prada reported a whopping 26.6% decline in annual profit, and comparable sales at Gucci for the first quarter tumbled 8%.

Gucci is owned by luxury conglomerate Kering who seems to be taking a beating from all sides. First quarter sales for sister-label Bottega Veneta fell almost 8% as well. Obviously, share prices across the sector are down considerably through the first quarter.

Executive after executive pins the industry’s decline on either the challenges of operating in a global economy still largely stagnant since the financial crisis or on China. While these are surely unavoidable issues, we can’t but start to think the problem might be deeper than just external economic factors.

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It seems like the entire category is being redefined – luxury means something radically different to the consumer in today’s world than it did when Coco Chanel was galavanting through Europe. Social media has altered the very psychology of making a high-end retail purchase. Global travel destinations are over saturated with all the same retailers. The runway-production cycle has been turned upside down.

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The list goes on and on…join us on BopTalk where we continue to discuss the depth of the industry’s problems and how these developments might affect the consumer. Are new pricing schemes around the corner? Is the future for sales growth on the Internet?

Tags: the of Year Luxury 2016: Struggle

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Waiting For The Online Black Friday Deals On Replica Bags? So Am I! My Wish List For This Year

Categories:Other Brands

Online Black Friday deals are one of the best things ever for a serial shopper like me. You probably get me when I say that if I had enough money, I would buy a new replica bag every other day. But we’re all on a budget here and that’s why we need to think twice before investing in a new bag.

Online Black Friday Deals Replica Bags

So that’s why I’m so excited to see this year’s Black Friday sales! I really hope that my favorite replica sites have planned big surprises for Black Friday 2015 but in the meantime my handbags wish list is ready!

You probably remember that last year I dedicated a blog post to the online Black Friday deals and unfortunately most replica sites didn’t have any special discounts for the occasion. PurseValley.cn was the only replica bag site that had a special Black Friday promotion and I’m sure they’ll offer some major discounts this year as well. But I really hope that other websites will follow and that we’ll have more to choose from!

Don’t worry, I promise to do all the research I can and keep you girls posted as soon as I find about online Black Friday deals, both for authentic designer bags and replica bags! But until then, here are the bags that have drawn my attention the most recently.

These replica bags styles are all new and I’ve been eyeing them for some weeks now. I know that I can’t buy them all even with the online Black Friday deals but if I find at least one of them at a discounted price, I will declare myself satisfied! So here they are:

1. Gucci Lady Web Bag

When I first saw this bag on the runway I was blown away! I instantly fell in love with its vintage-inspired look and I realized this is the bag my wardrobe was missing! I felt particularly drawn to the Gucci Lady Web in brown smooth leather and I really hoped to find a great replica of this bag. And I did! The only reason why I didn’t order it yet is because I want to wait and find the best Black Friday sales first.

Gucci Lady Web Leather Shoulder Bag

Gucci Lady Web Leather Shoulder Bag

But OH MY GOD, this bag is just gorgeous! The color, the leather, the details and the retro charm – there’s nothing I don’t like about it! Well, maybe except for the textile lining but I’ll let that pass. I already found the best replica of this bag here and now I’m just waiting for the big day to arrive!

2. Chloe Hayley Hobo Bag

OK, I may have found a pattern here. The Chloe Hayley bag is also a brand new style and it has a bit of a vintage feel as well. But unlike the Lady Web bag, the Hayley is a hobo style. This new Chloe bag looks very Chloe-like. I know I sound like Captain Obvious but the fans of this brand will get what I mean. The design is very clean with minimal branding, the colors are discreet yet unique and overall the Chloe Hayley looks very feminine and classy.

Chloe Hayley Hobo Bag

Chloe Hayley Hobo Bag

As I always say, when a new model is released, you need to wait at least six months to find a good replica. Unfortunately I haven’t spotted that many replicas of the Chloe Hayley yet but I’ll definitely keep my eyes open for this one!

3. Louis Vuitton Mini Pochette Evasion

Louis Vuitton has a tradition of releasing new prints for its classic canvases. The Monogram Evasion collection was created especially for Christmas and that’s the reason why it’s so colorful and jolly! I don’t always like the seasonal LV prints but I think that a replica Louis Vuitton bag from the Evasion Collection is a must-have for a LV collector.

Louis Vuitton Mini Pochette Evasion

Louis Vuitton Mini Pochette Evasion

If you’re not that much of a LV fan yourself, you can buy the replica LV Mini Pochette Evasion as a gift for someone who is. And, of course, you should do that using the online Black Friday deals! Buying early Christmas gifts is great because this way you get rid of all the pre-holiday stress. You don’t need to go from store to store to find the perfect gift, just add it to your cart and that’s it! Online shopping sure has a lot of advantages!

4. Prada Inside Bag

I had some mixed feelings about the Prada Inside Bag when I first saw it. It didn’t look that spectacular to me so I tried to understand what was with all that big fuss. And then I realized that Prada hadn’t released something some different from the Prada Saffiano Double Zip tote in a really long while and people wanted a new Prada design badly.

Prada Inside Bag Cinnamon and Turquoise

Prada Inside Bag Cinnamon and Turquoise

The Prada Inside bag has a sturdy leather and a boxy shape on the exterior but there’s a second bag inside, a much softer and slouchy one. I have to admit I was impressed by the ingenious design of this bag and its high versatility and the more I looked at it, the more I started to like it! I’m sure I’m not the only one who wants to find a great Prada replica Inside Bag but again, maybe we should give it more time. My favorite color combination is cinnamon + turquoise. What’s yours?

Of course, there are many other new beautiful bags that are not in this list, these are the ones that have caught my attention the most. But I’d love to see your Black Friday handbag list as well!

What replica bags are you planning to buy this Black Friday? If you hear about any Black Friday handbag deals on replica sites, do not hesitate to share them here!

Tags: replica So Black For the ON MY this Year Deals Waiting Online Friday Bags? Am I! Wish List

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Luxury Market Expected to Bottom Out This Year

Categories:Other Brands

Later this month, Bain will release its 2016 luxury industry outlook but early predictions have the market bottoming out later this year and rising again in 2017. As usual, China is at the center of all the action. Last year, dramatic stock declines and a crackdown on corruption in China resulted in some of the biggest declines in luxury earnings since the financial crisis, but in-country demand is expected to rise by the end of this year and into 2017.

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Luxury Stores in Hong Kong

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Luxury brands are increasingly dependent on the Chinese consumer. The number of Chinese Travelers from Hong Kong is predicted to decrease this year, which would contribute to decreased luxury spending abroad.

They expect new regulations and tax protocols will result in a significant decline in grey-market imports, thus boosting Chinese domestic demand. Given that luxury retailers have moved toharmonize prices between Europe and China over the past year, there’s also now less incentive to make purchases outside the country. According to the upcoming report, the price discrepancy between Europe and China has been halved in the past year, from 70% to 35%, and is expected to decline to 25% “in the near future.”

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Luxury Sales Growth broken down by Geographic Region

Chinese Shoppers lining up in front of a Hermes Paris store last September.

European sales have obviously taken a serious dip after the most recent terrorist attacks in Paris and Brussels, but this isn’t expected to put any long-term pressure on earnings. In general, there don’t seem to be any identifiable drivers for international demand growth in the forecast, which could prove hugely problematic for already-struggling retailers in the event of some sort of macroeconomic shock.

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If you live in China or Hong Kong, we’d love to hear about your experience of acquiring luxury goods and how it’s changing on the ground, if it actually is?

Tags: Market To Out BOTTOM this Year Luxury Expected

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Fenty Beauty by Rihanna Coming Next Year

Categories:Fashion

Barbadian pop singer Rihanna has been signed on by LVMH Moët Hennessy Louis Vuitton’s Kendo to complete a makeup collection: Fenty Beauty by Rihanna. The final product will likely hit big on the market, due to the singer’s astronomical success and already-established connections in the fashion industry – think brands like Puma and Dior, most notably.

Fenty Beauty by Rihanna Makeup Line Launch with LVHM

There are no specific numbers as far as how much Rihanna was paid to enter this contract, but estimates have been made, showing that it may have been upwards of $10 million. Perhaps a small price to pay for a celebrity with such a remarkable reputation; “Everything with her is off the charts,” remarked a well-established executive in the cosmetics field.

Kendo is a beauty brand that often produces makeup and beauty products to be sold in locations like Sephora, which is also owned by the LVMH conglomerate. Rihanna’s collection for the brand will follow suit; Fenty Beauty by Rihanna will be put on the market for fall 2017, and will be available in Sephora and other beauty outlets.

As of yet, the brand has not released many details, but Kendo CEO David Suliteanu’s outlook on the whole situation is totally positive, and he seems to believe everything to come of the partnership will be out of this world: “Fenty Beauty by Rihanna is a beauty rocket ship that will appeal to a huge and diverse global audience. We are aiming for the stars.”

This is a realm Rihanna is totally accustomed to. The multi-talented star always seems to be popping up in the news with a new venture, as she further ventures into the fashion industry while still maintaining her career as a pop artist. It’s not hard to imagine that her successful singing career has a lot of stats to back it up (14 number-one hit singles, eight Grammys, nine American Music Awards, 12 Billboard Music Awards, among other notable feats), and now her track record is stretching into this secondary industry, as in 2014 she was awarded the CFDA Fashion Icon Award back in 2014. Anywhere the star lands is bound for success. As such, Suliteanu concluded his statement by mentioning, “Kendo is honored to work with Rihanna.”

And as it well should be, her ventures into the beauty industry have turned a great profit for those involved. In 2013 she entered a four-part contract with MAC, which resulted in the limited-edition line of RiRi Hearts, and she also worked with Viva Glam lip products back in 2014, which fundraised for AIDS research. She has even created a fragrance through Parlux Ltd. – RiRi – which launched in 2015, made $46,000 in its first afternoon, and to date her fragrances as a group are said to have racked up a whopping $75 million in wholesale shipments.

Kendo has definitely made a smart choice tapping Rihanna for this, and this marks the label’s third major contract, with the others being with Marc Jacobs Beauty and Kat Von D Beauty. Rihanna will be given a key roll in creative control, as Kendo wishes to maintain a long-term relationship with the singer; it is likely this partnership will prove to be mutually beneficial.

Tags: Rihanna Beauty BY Fenty Coming Next Year

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