Warc, 6 August 2013
PARIS: In a further sign that luxury brands are expanding
beyond fashion and accessories, LVMH Moët Hennessy Louis Vuitton has bought a
five-star hotel in the Caribbean and has developed plans for other top
hospitality locations.
The world's largest luxury goods producer last week bought
the Hotel Saint-Barth Isle de France on the French Caribbean island of Saint
Barthélemy and has also recently acquired the Cova café in Milan, which is
located next to Prada's store on the grand Montenapoleone.
The group's Cheval Blanc hotel division is also converting
the historic Parisian department store La Samaritaine into an 80-suite,
five-star, hotel that will come with a spa and hanging gardens.
It is also expanding in the Middle East with plans for
luxury hotels at Amoun in Egypt and al-Sodah in Oman. And its new complex in
the Maldives, just north of the capital Malé, will contain 45 private villas,
which guests will reach by a seaplane designed for Cheval Blanc.
LVMH's strategy is about adding experiences for its wealthy
customers, according to analyst Jane Kellock. She said it means luxury groups
could "offer something truly unique and memorable".
Laura Ford, of London-based consultancy Futurebrand, said
LVMH chairman Bernard Arnault is aiming "to own the whole spectrum, to
have a 360-degree view on what the customer is doing, what they are buying,
what they are eating, where they are staying."
"It's a move to keep relevant with consumers whose
appetite for luxury and definition of luxury are constantly changing," she
added.
Ermenegildo Zegna, CEO of the eponymous Italian luxury
fashion house, observed that "being innovative along the desires and the
interests of these well-off, whom we don't want to get bored, is the name of
the game".
Armando Branchini, founder of the Italian consultancy
Intercorporate, also noted that Bernard Arnault is mindful of the mistakes made
by the Pierre Cardin brand, which was damaged in the 1980s by overextending its
exposure on a huge range of products.
He will mitigate that risk by only adding brands that excel
in specific businesses, he explained.
Data sourced from Bloomberg, Malay Mail; additional content
by Warc staff
No comments:
Post a Comment