Interviews

Market Report: 2014 Market Trends researched By Dr. Frank Muller - The Bridge to Luxury Group.

For this years first quarter LVMH announces a plus in revenues of 4%.The Kering group increased sales by a rate of over 6%. More announcements of other market players will be published in the next days. The Federation of the Swiss Watch Industry as another market indicator informed about a plus of watch exportations in value of 4,0% (pieces +1,5%) for Q1 2014. While mechanical watches increased by 7, 4% electronic watches experienced a decline of 7, 3%.
 
Recently, Baselworld delivered mixed signals as another benchmark of the luxury market¹s outlook. This year again an impressive number of some 1.500 brands presented over 10.000 novelties. Yet, the show lacked true collection or product highlights. The times of substantial price increases seem to be over for now. Basel showed also less visitors then last year - this especially with regard to Asian retailers and media representatives and here in particular those from China.
 
Various brand stated their year end sales estimates for 2014 before and during Baselworld (Reuters): Patek Philippe and Ulysse Nardin expect a growth of ca. 2%, while Tiffany as well as the Swatch Group expect a high one-digit percentage increase, LVMH Horlogère (5-7%) and Hermès position their prognoses in between. Small brands will most likely achieve ¬ on average - numbers below those estimates. This will put pressure on margins and budgets and ought to effect negatively the business of service providers such as advertising, merchandising, event agencies or product designer.
 
In this situation the market remains sensitive to external influences for instance the continuous efforts of the Chinese government to curb down corruption or the developments in Ukraine. Other factors need to be observed, too: In these days the European parliament voted for a new definition of the certificate of origin (³Made in ...²). In case the council confirms that decision then many manufacturers of high-end products could face problems. In the future the country of origin shall be linked to the place where the last substantial, commercially important manufacturing has occurred ¬ following the EU¹s codex of customs. This could have consequences for those countries in which products are developed and marketed but not produced (e.g. shoes, fashion, watches, technical appliances).
 
Market Intelligence:
 
A highly interesting study published by the Sinus Institute analyses global luxury spending in comparing various countries. More information is available here. The Sinus Institute in conjunction with the Responsio Institute publishes also the German Watch Monitor. It is the very first representative study that focuses on one particular market in questioning more than 5.000 consumers with regard to their attitudes, purchase intentions etc. concerning 220 watch brands.
 
TBTL:

Tempus fugit ¬ in Mai 2014 The Bridge To Luxury will celebrate its fifth anniversary. Being founded as one of the world¹s first consultancy firms to focus exclusively on high-end brands, TBTL has been able to carry out a multitude number of exciting and successful projects to assist international brands. TBTL is thankful for wonderful partnerships. The luxury industry is in a dynamic process of change. To assist clients in their quest for professionalism and success in developing and managing their brands remains the ambition of TBTL. Publishing articles on the topic of luxury, prestige, premium & Co. is part of that effort. Early April, for instance, the CP-Monitor printed a TBTL contribution on glossy consumer magazines edited by luxury brands. The article can be downloaded here.

Market Report

Chanel presents its latest cruise collection fashion show in Dubai

On 13th May 2014 at sunset, on an artificial island off the coast of Dubai, Chanel gathered 1,000 of the world’s most fashionable people, including 300 local and international media and a handful of celebrities, for its latest cruise collection fashion show. Each May, the cruise presentation travels to the world’s most glamorous cities, and for the first time, Chanel is bringing it to Dubai. The cruise collection is a shoulder range of clothing that goes onto shop floors in October-November, before the full spring-summer collection. His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and ruler of Dubai, received Maureen Chiquet, Chief Executive Officer of Chanel and her delegation. 

Market News

Richemont Group profit was up 3%, from $2.76 billion to $2.84 billion

Richemont watch sales increased 9 percent from $3.77 billion to $4.10 billion, while total sales for the company grew 5 percent, rising from $13.92 billion to $14.60 billion. Profit was up 3 percent, from $2.76 billion to $2.84 billion. Last Thursday’s release of the fiscal year results ended March 31st was presented as “satisfactory”. Cartier and Van Cleef & Arpels, the two jewelry brands Richemont owns, reported 4 percent year-on-year growth in global sales, from $7.14 billion to $7.46 billion. Wholesale orders of Cartier watches were down but jewelry demand was particularly strong in what Richemont described as a “subdued environment.” The company’s retail sales, comprised of its directly operated boutiques and e-tailer Net-a-Porter, performed better than its wholesale division, with retail sales climbing 14 percent at constant exchange rates, compared with just a 6 percent sales gain for wholesale accounts.

UAE optimism bounces back at 4th highest globally

UAE consumer sentiment rose further to be the fourth highest in the world, as overall optimism improved on the back of strengthening local economy, according to the latest Nielsen global report. The 1st edition of the 2014 Consumer Confidence series showed that optimism among consumers in the country jumped significantly from its lowest score of 89 in the first six months of 2009 to 114 in the first quarter of the year. The UAE’s economic recovery, coupled with Dubai’s successful bid to host the World Expo, is a major factor behind the rise in consumer sentiment; the Expo 2020 has a positive impact on consumer sentiments.

Dubai economy to grow by 5 per cent this year

Dubai’s economy is expected to grow around 5 per cent this year, a similar pace to 2013, the head of its statistics office said. Growth in the Gulf emirate, the region’s trade and business hub, picked up strongly last year, buoyed by the prospect of government real estate projects worth tens of billions of dollars following a property market crash in 2008-2010. Dubai accounts for a quarter of output of the UAE economy, with oil-powered Abu Dhabi responsible for around 65 per cent. The UAE, one of the world’s top oil exporters, has yet to release 2013 GDP data. Analysts polled by Reuters in January expected 4.3 per cent growth in both 2013 and 2014.

Boucheron presents Serpent Bohème 2014 Collection

The Boucheron Serpent has been embodying the spirit of bohemian femininity since the creation of the collection in 1968: its head, represented by a diamond-filled drop and crowned with gold beads, multiplies the reflections from the snow-set diamonds. And its body chiseled by the Hands of Light and enhanced by the most beautiful of polishes giving rise to tremendous brilliance, coils around the wearer’s finger, the nape of her neck and ears. The pattern of the twisted chain marks the line of the most contemporary of styles, while remaining faithful to its precious spirit.

Company News

Vacheron Constantin sponsors New York City Ballet’s 2014

Vacheron Constantin sponsored New York City Ballet’s 2014 Spring Gala for a second year in last week. The Gala commemorated the 50th Anniversary of the opening of the David H. Koch Theater (formerly the New York State Theater), and the Company’s residence at Lincoln Center. Juan-Carlos Torres, Chief Executive Officer of Vacheron Constantin. Honorary Chairmen Julia and David H. Koch, along with Gala Chairmen Liz and Jeff Peek, Carol and Earle Mack, and Ide and David Dangoor were in attendance. The evening’s guests included actress Kristin Bell, singer Alicia Keys, and movie director Baz Luhrmann.

de GRISOGONO partners with the cast of The Expendables 3

To mark the fifteenth anniversary of its iconic Instrumento N° Uno watch, de GRISOGONO partners with the impressive cast of The Expendables 3. Each actor in the cast will don this new anniversary edition of the watch.  The Instrumento N° Uno features an elegant case, and is made from steel with a black PVD finish. The black guilloched dial contrasts dramatically with the bright red hands and Arabic numerals. The hand-stitched black alligator skin strap is lined with red leather. This anniversary edition, autographed "Fawaz'" on the sapphire crystal case back.

Bell & Ross reveals their latest collaboration with Shaw Harley-Davidson

Bell & Ross opens their latest collaboration, the B-Rocket concept, with Shaw Harley-Davidson at this year’s Basel World. Complementing the launch of the speed bike inspired from the experimental aviation of the 1960s, Bell & Ross developed two ultimate watches for motorists. The adventure started off at the Biker’s Café by product presentations of the latest collections. Guests were in for a ride and things kicked into gear as soon as the roaring bikes of the Harley Owners Group of Dubai pulled up to the restaurant. 15 motorcycles took over the streets of Dubai for two hours taking the group tour that showed the clashing terrains of the city. The BR01-94 and BR03-90 are as impressive as the high-speed motorcycle it is designed to go with. Created for the dare-devil in you, time your speed or measure short periods of time with large data window and a power-reserve indicator. The sophisticated mechanisms are fitted with anti-glare sapphire crystal and the finished with black and red padded leather to contrast the steel reminiscent of the motorcycle tachometer.

Fiera di Vicenza is to premier a new international jewelry tradeshow in Dubai

Fiera di Vicenza S.p.A, the company that operates VicenzaOro, and the Dubai World Trade Centre (DWTC) will premiere a new international jewelry tradeshow in Dubai next year. The first Vicenzaoro Dubai, operated by the joint venture DV Global Link, is scheduled for April 23-26, 2015. Matteo Marzotto, president of Fiera di Vicenza, and His Excellency Helal Saeed Al Marri, the director general of Dubai’s Department of Tourism and Commerce Marketing and CEO of the Dubai World Trade Centre.

IceLink Launches Charity Campaign with Special Needs Network

Swiss based watch and jewelry maker IceLink held a private celebrity-charity event, #thelinkparty at their Flagship Boutique and Rooftop Lounge in West Hollywood, California to raise awareness for the Special Needs Network and support kids with autism.  Celebrity supporters included Lisa Vanderpump, Ronda Rousey (UFC), Bo Roberts (300: Rise of an Empire), Edyta Sliwinska (Dancing with the Stars), Max Ryan (Sex and the City) Sofia Milos (CSI) and more, who attended to support IceLink owners Andy and Suzy Sogoyan in their 3 month charity links campaign where they will donate 5% of proceeds from each yellow, green, red and turquoise bracelets to the Special Needs Network, which are the charity colors.

Product Launch

Glashutte presents Senator Manual Winding Skeletonized Edition

Glashütte introduces Senator Manual Winding Skeletonized Edition. The two-hand model is presented in a polished red gold case, which frames the painstakingly skeletonized manual winding movement. The galvanized silver, skeletonized dial is decoratively enhanced by a black railroad minute ring. The features of Glashütte such as the winding wheels with double-sunburst decoration, screw-mounted gold chatons with blued screws, finished with swan-neck fine adjustment. The Senator Manual Winding Skeletonized Edition is fitted with a matt black Louisiana alligator leather strap with foldover clasp in red gold, and is polished in dark brown wooden case.

OMEGA launches smartphone app

OMEGA announced the creation of a mobile application designed to complement their partnership. The new IAAF Diamond League application offers a wide range of useful information about the whole series and the 14 meetings that make up each competitive season, including live results during each of the competitions. Users of the new app will be able to enjoy live results transmitted during each of the events. The new application is available for iPhones and Android smartphones through the App Store and Google Play respectively.

Versace introduces the V-RAY Chronograph

Versace presents V-RAY chronograph, The oversize IP rose gold steel case, water resistant to 5 ATM, is dominated by strongly contrasting colours, with silver counters and a fuchsia central seconds hand acting as counterpoint to the all blue look. The rehaut, chronograph indexes, crown seal and button tops are also fuchsia and black stitching stands out on the leather strap. The other steel versions, in IP grey or IP rose gold, also feature detailing in strong yellow, blue or red, all colours with a clear sporting pedigree. The strap is with blue leather with contrast stitching butterfly buckle.

Salvatore Ferragamo introduces Gancino Deco timepiece

Salvatore Ferragamo 2014 timepiece collection - Gancino Deco, The slim, highly polished bezel conceals the crown almost entirely, leaving ample room for the precision finish dial. The outermost section, featuring large applied Arabic numerals and indexes, presents a super fine guilloché pattern made up of undulating waves. The centre section, containing the short, slender hands, is decorated with mother of pearl marquetry used to create a mosaic pattern. The glossy patent leather strap - available in Ferragamo red, or alternatively in blue, pink and black, as well as in steel and IP gold steel versions - supported by suspended lugs, is embellished by two decorations shaped like the iconic Gancino.

Exhibitions & Events

Graff Diamonds to celebrate its 10th Monaco Rare Jewels Exhibition

The 10th anniversary of Graff Diamonds’ Monaco Rare Jewels Exhibition is to be held at Hotel de Paris from Tuesday 29th July until Sunday 17th August. Over the last 10 years, the Monaco Rare Jewels Exhibition has played host to a number of the most important and unique stones in the world. The event provides Graff with the perfect opportunity to present a selection of its very finest jewels and watches to its clients who spend time in the French Riviera over the summer months.

Winston Blue diamond sets WORLD AUCTION RECORD at Christie's Geneva sale

The Winston Blue, which set a world auction record price per carat for a blue diamond in Geneva recently sale - Christie’s Geneva Magnificent Jewels sale realised a total of SFr.138,963,250/US$154,193,622/€112,490,751 selling 85% by lot and 94% by value, achieving the Highest total ever for a Jewellery sale in auction history. During the sale, 4 world record prices were achieved. THE WINSTON BLUE offered on May 14th at Christie’s Magnificent Jewels sale achieved a stunning,  The largest flawless Fancy Vivid blue diamond in the world, weighing 13.22 carats, was named THE WINSTON BLUE by Nayla Hayek, CEO of Harry Winston.

Sotheby's Geneva auction sells An Automaton Snuff box for $842,408

Sotheby’s Geneva, nearly 550 watch connoisseurs from across the globe registered their intention to bid on rare timepieces. The sale was led by an exceptionally rare 19th century gold and enamel snuff box with a concealed timepiece and musical automaton. Two passionate bidders competed for this masterpiece of Swiss horology, driving the final price to CHF 749,000 ($842,408). The auction totalled CHF 10,123,625 ($11,386,142) star lot - a three compartments gold and enamel snuff box – was produced in the workshop of Piguet & Capt in Geneva, circa 1801-1804.

Celebrity News

Catherine Deneuve wore Boucheron jewellery during 4th Chinese Film Festival in Paris

On the occasion of the 4th Chinese Film Festival in Paris last week, French actress Catherine Deneuve wears a Serpent Bohême Toi & Moi paved ring and the Cinna Pampilles earrings by Boucheron.

Emmy Rossum wore Van Cleef & Arpels jewellery

Emmy Rossum wears “Maelstrom” earrings from the “Voyages Extraordinaires” collection featuring sapphires, emeralds and diamond in white gold and “A Cheval” bracelets from the “Diamond Lines” collection featuring diamonds set in platinum by Van Cleef & Arpels

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