Man waiting for Tesla store to open in Toronto
As reservations open for Tesla’s Model 3 on March 31, prospective car owners lined up outside of the automaker’s stores to be the first to own the anticipated vehicle.
The Model 3 will not go into production for almost two years, but that did not stop fans from camping out in line to guarantee their spot in the queue. With much speculation about Tesla’s entry-level electric vehicle, the automaker has created a rush to its stores typically only seen during Apple product launches.
Lining up
At the time the lines opened, details of Tesla’s Model 3 had not been unveiled. The automaker has scheduled an official reveal for 8:30 p.m. PT on March 31.
Consumers who wanted to make their reservation before the unveiling needed to head to their Tesla store. Each local store, from Australia to Montreal, began taking reservations when it opened.
Tesla shared photos of the loyalists lined up outside its stores waiting for the moment they could add their name to the list. The brand encouraged consumers to share their own user-generated content from the line in the comments section of its Facebook page.
Woooow! Model 3 line at Bellevue, WA
Posted by Tesla on Thursday, March 31, 2016
Consumers could also make a reservation online, but they need to wait until the live unveil to do so.
To make a reservation, consumers needed to deposit $1,000, or similar amounts in other currencies. Tesla has set up separate queues for each region, and is giving current owners priority in line.
Production of the Model 3 will begin in late 2017, with deliveries beginning on North America’s west coast and moving east. From there, it will begin delivering to Europe and Asia Pacific.
The Model 3 is expected to be Tesla’s most accessibly priced vehicle yet, with a number of sources saying it will cost around $35,000.
Electric vehicles will not make up the majority of the market for at least two more decades, according to a new report by Lux Research.
Currently, electric powertrains are limited in the class of vehicles they serve and are primarily limited to the luxury market and high price points. Luxury electric vehicles will eventually have a trickle-down effect, but there are still untapped markets to take advantage of in the electric vehicle segment (see story).
Adding an entry-level vehicle to its array may help Tesla reach a portion of the population that it was unable to serve before.
Ponti Design Studio calls their newest design the world’s first super suitcase. Named Floatti, the intuitive smart case was inspired by the movement and transformation inherent in the traveling lifestyle.
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Chinese affluence
Chinese consumers are becoming more selective in their purchases, trading up from mass to premium labels as their confidence grows.
A new McKinsey report, “The Modernization of the Chinese Consumer,” found that a significant portion of the population would raise their spending on apparel, travel, personal care and other services if their incomes grew. Representing positive news for international companies, the preferred premium brands in categories such as cars, skincare and fashion remain foreign brands.
“The premiumization trend is even more relevant for the premium segment rather than the luxury spend (driven by the middle-class rather than the ultra-rich),” said Daniel Zipser, partner at McKinsey & Co. and co-author of the report. “So, the question for the luxury players is how to offer a premium product, which is accessible and allows trade-up for the middle-class.”
McKinsey’s 2016 China Consumer Report conducted 10,000 in-person interviews with individuals aged 18 to 65. Respondents came from 44 cities, representing China’s various regions and tier cities.
Confidence boost
As salaries rise and unemployment remains low, consumers confidence in China has improved. As a result of their positivity, volume growth in mass segments, such as food and beverages, has flatlined while premium products race ahead.
When presented with a hypothetical boost in income, the top three product categories that consumers would be likely to grow their spending on were food, apparel and health care items. For services, leisure and entertainment, travel and personal care, such as spa visits, were at the top of the list.
Chinese consumers have become more brand loyal, with many unwilling to look outside their consideration set. For apparel purchases, the 61 percent of consumers who stuck to a set list of brands in 2011 rose to 70 percent in 2015.
Value Retail in China
For brands looking to enter consumers’ list of possible choices, the task is becoming more difficult. It is now harder to sway new potential customers with promotions.
Chinese consumers are still concerned with accruing wealth, but having a happy family is a growing interest. Since 2009, approximately half of respondents have agreed that being successful is hinged on being rich. In the meantime, the relation of a happy family to success has grown from 62 percent to 75 percent in 2015.
While this has an impact on how consumers live their lives, it also extends to the manner in which they shop. Sixty-four percent of consumers consider shopping to be one of the best ways to spend quality time with family.
The biggest winners are shopping malls, which attract shoppers away from big box stores with their blend of retail, food and entertainment in one place.
Elements Hong Kong Kouklitas dolls
A desire to spend time with family is also impacting travel plans. Forty-five percent of international trips were taken with relatives in 2015, a growth from 39 percent in 2012.
While away on their average of 1.5 trips a year, Chinese consumers are typically looking to shop. During the holidays, 79 percent went shopping and 29 percent go so far as to select their destinations based on the shopping possibilities at the locale.
The 70 million Chinese consumers who travel internationally make about a quarter of their total annual purchases surrounding their vacations. Of this, half is allocated to travel expenses, with the other half going to shopping.
While travelers most often purchase clothing and beauty products, half of all watch and handbag purchases are made while on holiday.
Trend setting
Chinese consumers are faster at adopting new products, services and retail possibilities than those in more developed nations. For one, 25 percent had embraced mobile payments by 2015, up from none in 2011.
Despite its status as an emerging market, China’s ecommerce business is almost as strong as that of the United States and Europe, around $618 billion in 2015.
Burberry flagship in Shanghai’s Kerry Centre
The physical store is still an important part of the purchase process, and consumers in general tend to be more satisfied with bricks-and-mortar retail than ecommerce. Still, online stores are catching up, as its customer approval grows while in-store gratification slows or falls.
Positive outlook
While Chinese consumers are largely optimistic, it is important to identify the various geographical pockets that show the most promise. McKinsey identified clusters of anywhere from two to 84 neighboring cities that share similar governments, economies and consumer behavior.
Consumer confidence in Mainland China is showing signs of growth, while Hong Kong consumers are expected to be more conservative in their luxury spending, according to a new report by Ruder Finn and the Consumer Search Group.
Forty-two percent of Mainland consumers expect to raise their luxury spending in 2016, but just 25 percent of Hong Kong residents say the same, whereas 30 percent said they would be spending more in 2015. However, while Hong Kong consumers may be curbing their spending, they are still interested in exploring new luxury brands and services, and the luxury industry should not discount the island (see story).
Even with a faltering economy, Chinese consumption is projected to rise $2.3 trillion by 2020, according to new research by Boston Consulting Group and AliResearch Institute.
Households with disposable incomes of $24,000 or more will drive 81 percent of consumption growth through 2020, creating demand for high-end goods and services. With rising incomes, a younger generation gaining spending power and growing ecommerce expenditures, brands will need to adjust their strategies (see story).
“[The strong consumer confidence] indeed came as a surprise to us,” Mr. Zipser said.
“The consumers do not feel the economic turbulence yet themselves as unemployment remains minimal and wages continued to increase substantially even in 2015—and continue to do so in 2016,” he said. “So, consumers do not feel it in their own pockets yet.
“Also, there are large and increasing regional differences. Economically weaker regions – particularly in North Eastern China – actually have seen a significant decrease in consumer confidence, while other parts of China have seen an increase, leaving the country average largely unchanged.”
Manolo Blahnik heels on its Web site
Footwear label Manolo Blahnik has selected online retailer Farfetch to operate its monoband ecommerce point of sale.
A new direction for the United Kingdom-based retailer, which recently extended its own category offerings to include beauty and children’s wear (see story), will operate manoloblahnik.com using its new Black & White service. For brands yet to adopt ecommerce, partnering with an established retailer lessens the behind-the-scenes infrastructure needed for in-house commerce, thus creating a retail outlet that avoids the trial and error of starting afresh.
Step in the right direction
Going forward the Black & White division will operate monobrand ecommerce sites for designer brands, counting Manolo Blahnik as its first client.
Through Black & White, Manolo Blahnik will sell its entire catalog of men’s and women’s shoes as well as books relevant to the brand. Recently, Manolo Blahnik extended categories to include handbags (see story), which will also be available through its Farfetch-powered ecommerce Web site.
For Farfetch its venture into ecommerce is a natural progression of the retailer’s business (see story).
“We do not look at this in terms of share of the overall business,” Jose Neves, founder and CEO of Farfetch told WWD. “We look at it as a holistic answer to the question, ‘How will people shop for luxury fashion in five years?’
“We think it’s going to be multibrand online — hence farfetch.com and brownsfashion.com,” he said. “But it will also be in-store and this is why we invested in Browns and we have created a retail business unit for continuous tech innovation.”
Manolo Blahnik’s ecommerce site, powered by Farfetch Black & White service
Mr. Neves added that three additional brands are slotted to use Farfetch Black & White for ecommerce in the future, but declined to reveal which labels.
To gauge interest in monobrand ecommerce, Farfetch first launched its White Label service in September. This allows brands, with Derek Lam, La Perla and Jason Wu trying it out, to create branded boutiques that live on the Farfetch Web site.
By doing so, partner brands could tap into Farfetch’s customer support, click and collect, return and other customizable features such as accepting local forms of payment and international shipping.
The difference with using Black & White is how brands can integrate a service they wish to provide to their consumers. A brand can opt to use Black & White “end-to-end” as Manolo Blahnik does, or use the service to offer delivery to China, as WWD suggested.
Additionally, a brand’s products do not need to originate from a warehouse, but can be sold from a label’s boutiques or an “inventory point” within Farfetch’s network to ship. The White & Black service, from local payments to customs, clearance and logistics support, is available in English, Japanese, Korean, Chinese, Russian, Brazilian Portuguese, Spanish, German and French.
The move toward monobrand ecommerce also puts Farfetch in direct competition with the Yoox Net-A-Porter Group.
Yoox, which started as a monobrand ecommerce platform, operates 40 dedicated sites including Armani, Moschino, Emilio Pucci, Valentino and Marni, with plans for Chloé to join later on this year.
For instance, French fashion label Karl Lagerfeld is the latest luxury brand to make a foray into ecommerce with the upcoming launch of its online store.
According to WWD, the venture in partnership with the newly formed Yoox Net-A-Porter Group is a head-first leap, establishing ecommerce sites for multiple countries and languages from the start rather than doing a slower roll-out internationally (see story).
Net-A-Porter has also dabbled in helping brands test out ecommerce, as it did with Chanel for its Coco Crush jewelry capsule sold on the site. The soft opening of ecommerce through Net-A-Porter likely offered Chanel some insight to its consumer’s willingness to buy online. (see story).
Sephora introduces its experience on Kik to users
LVMH-owned Sephora’s debut on messaging application Kik is a reflection of the push towards conversational commerce through chatbots and how to drive sales with one-to-one experiences on mobile that mimic in-store interactions.
Users will now be able to purchase directly within the Kik app while conversing with a Sephora chatbot about anything regarding beauty, including reviews, product recommendations and tips. The experience takes on the form of a conversation with a friend or store associate, starting with a small quiz so that the program can serve appropriate content and products to the individual.
“With Kik, our clients can engage with us in a new way to learn beauty tips, watch how to videos, and read ratings and reviews which link to our site within the app,” said Bindu Shah, vice president of digital marketing at Sephora. “That said, at Sephora, we always want to facilitate the consumer’s path from discovery to purchase via the latest platforms which is precisely what our partnership with Kik allows us to do.
“Through our partnership with Kik, we saw an opportunity to engage with new and existing clients, particularly with the highly mobile/connected audience of Gen-Z and younger millennials, through a fun, new social platform,” she said. “At Sephora, innovation and agility are core to our brand DNA.
“As part of this, our social marketing team continually tests emerging platforms that are a brand fit and that offer our clients new ways to engage with Sephora. Our Gen-Z clients are spending increasing amounts of time on messaging apps; with Kik we can be part of her messaging app experience.”
Mobile messaging for retail
Kik users can start a conversation with Sephora to find and purchase the right products and receive helpful tips for them through mobile messaging. Users can start a conversation through a request or a simple hello.
To start off the experience, the chatbot gives an introduction by explaining how users can get makeup tips and reviews by chatting with Sephora. Users are then prompted to take a personal quiz if interested, so Sephora “can get to know you.”
Participants must enter their age group, favorite makeup brand categories and products they cannot live without. A video at the end walks users through a tip that coincides with their interests, based on the responses given.
Automatic chat
To engage, users do not need to type the answers themselves. Sephora prompts specific responses via select buttons that pop up in the Kik keyboard.
For instance, when asked “most of your makeup fits within this brand groups,” users can choose between select pop-up responses such as “A. drugstore brands, B. Sephora Collection, Benefit Cosmetics, Urban Decay, Christian Dior, Armani, Givenchy, D. bareMinerals, Josie Maran, Tarte.”
These pop-up responses are not restricted to the personality quiz in the beginning, but for any question Sephora has for the user. For instance, users can often choose between responses such as see reviews, search for a product, tips and top-rated to let Sephora know what they would like to see.
Users can search for product categories and specific items to read reviews, and will be brought to a native page within the app to read and purchase.
Sephora serves a wide range of high-quality imagery that fits in well with the native experience for tips and product previews. Users can see step-by-step images paired with directions for tips, as well as photographs of potential products of interest.
“A chatbot can dramatically increase sales for a brand like Sephora that has a wide variety of SKUs,” said Beerud Sheth CEO of Gupshup. “Chatbots act like the in-store sales assistant, always available, instant, highly knowledgeable.
“Chatbots enable the customer to make an informed choice, save time, no waiting, and possibly money too, personalized deals,” he said. “Chatbots reduce customer friction, improve customer loyalty and drive cross-sell and up-sell.
“Chat is clearly the future of commerce. It is going to transform not just online ecommerce, but also offline commerce. Every customer touch point, whether it is before, during or after the sale, will be through chat.”
Tour de Yorkshire – Maserati and David Millar – Scarborough, Yorkshire, England. Picture by Simon Wilkinson/SWpix.com
Italian automaker Maserati is offering cyclists the chance to be king for a day.
Maserati Cycling will return as the title sponsor of the Tour de Yorkshire Ride and offer all participants a “King of the Mountains” climb photograph. As Maserati fights for recognition in the growing cycling market, events that help generate ties between consumer and brand will foster sentiment among cycling influencers and other especially desirable consumers.
“In everything we do, we try to bring something new and exciting to the table for cyclists,” said Anna Angelini, press and public relations manager at Maserati UK. “The ‘King of the Mountains’ stage is another opportunity for those taking part to experience what it is like to compete in a pro race.
“The pro riders will tackle the very same picturesque CĂ´te de Harwood Dale climb later that day,” she said. “As such the complimentary ‘King of the Mountains’ photograph that every rider will receive serves as a memento of the whole experience of the day. It will remind them of the exhilaration of taking part in the event and hopefully an appreciation of the unique experience of the day.”
King of the mountains
The Tour de Yorkshire Ride, for which Maserati serves as the title sponsor for the second year, consists of routes of about 25, 53 and 74 miles, each of which takes place on the same day as and along many of the same roads as the final stage of the Tour de Yorkshire Pro race. Participants, limited to 6,000, will begin on Cleveland Way, Scarborough, UK and finish along the seafront on Royal Albert Drive.
“The Tour de Yorkshire Ride represents the perfect sportive for Maserati to partner with as it is one of the leading sportive events in the UK,” Ms. Angelini said. “There is no other sportive ride that compares to the Tour de Yorkshire Ride in the UK – it truly captures the imagination of the UK cycling population.
“Everything is meticulously planned as if it were a professional race,” she said. “The organizers, ASO in conjunction with Human Race, utilize their experience in putting on the Tour de France brilliantly to ensure a seamless and unforgettable day for all involved.”
David Millar for Maserati
To add a competitive edge to the event, Maserati cycling ambassador David Millar has challenged of the riders beat his time on the CĂ´te de Harwood Dale climb, where the professional competitors will also be timed.
CĂ´te de Harwood Dale in the North Yorkshire Moors has an average gradient of 7.4 percent and a maximum of 16 percent. Mr. Millar completed the climb of about 0.81 miles in three minutes and 57 seconds.
To memorialize the moment, Maserati will offer complimentary “King of the Mountains” photography to all participants. Each will be photographed as they cross the line and have their image edited alongside Mr. Millar’s.
David Millar on CĂ´te de Harwood Dale
Providing riders with a memento of the experience is a subtle way for Maserati to promote its brand. A positive memory will become indistinguishable from Maserati’s contribution to it.
To help promote the event and prime riders for the climb, Mr. Millar and Maserati have produced a preview video. It begins with Mr. Millar describing the prime, which he describes as “particularly British” in that it is in ramps.
He continues to take viewers through the climb step-by-step, describing the steep section at the beginning, where he advises riders to take it easy. After that, when the trail begins to level off, riders should continue to pace themselves in preparation of another steep section and the upcoming difficult section, which will challenge even experienced riders.
“David Millar – 2016 Maserati Tour de Yorkshire Ride – ‘King of the Mountains’ preview”
Significant segments of the environmentally conscious millennial generation have taken to cycling as both a hobby and primary means of transportation, while car sales among the group have correspondingly decreased. Maserati Cycling gives the established automaker an opportunity to reach that group of consumers, and a highly experiential promotion likely aligns with the interests and tactics they respond to most.
“The rapid growth of road cycling in the UK has been particularly evident amongst Maserati customers and employees, whose passion for performance, sporting excellence and design provides a natural conduit to the sport,” Ms. Angelini said. “Through Maserati Cycling, the company will aim to embrace this passion and is committed to supporting its continued growth.”
Peter Denton, region manager for Maserati North Europe, added, “The sport is highly contagious. We have seen an ever-increasing number of our dealership network and their customers get bitten by the cycling bug over recent years. For Maserati and its customers at least, it would appear that cycling is the new golf.”
The ride will take place on May 1. Interested parties can register to partake here.
Cycling frenzy
Other Maserati Cycling initiatives have also honed in on causes and events that will speak to youth markets.
In November, Maserati leveraged its exclusivity for a cause with help from a two-wheeled friend.
The automaker will work with Italian bicycle brand Cipollini to create a road bike to auction off for Action Medical Research Funds. The charitable engagement will help Maserati convey admirable values and maintain a desirable brand (see story).
Other automakers have taken other routes to appeal to cyclists.
Toyota Corp.’s Lexus is exploring a different kind of life on the road with an immersive video experience featuring cyclist Christian Vande Velde.
“Lexus Elevate” uses 360-degree video technology to follow Mr. Vande Velde on a cycling excursion, presenting the viewer with a virtual reality experience enhanced by visual and audio effects. By focusing on the journey itself and life on the road, Lexus is reminding consumers of its expertise and encouraging them to set off on travels of their own (see story).
Although cycling may seem at first glance to be at odds with Maserati, the brand is making a conscious adjustment to its image, ensuring that connotations of exclusivity, heritage and name recognition are not opposed to attainability or divorced from today’s trends and attitudes.
“There is currently a misconception of Maserati as an elitist brand, which has served to alienate it from a large proportion of the car purchasing population,” Ms. Angelini said. “Of course Maserati is a heritage brand with performance, premium quality and beautiful design at its heart, but that doesn’t serve to rule anyone out.”
“The Maserati Cycling initiative offers Maserati the opportunity to portray to relevant and receptive consumers that the Maserati brand is an open one and that its cars are attainable,” she said. “The incredibly popular Maserati Ghibli Diesel model starts at a price point of £49,160 – which comes as a surprise to many.”
Guerlain x Arita Porcelain Labs Mitsouko bottle
French perfumery Guerlain is celebrating nearly 100 years of the Mitsouko fragrance with a limited-edition porcelain bottle created by Japan’s Arita Porcelain Lab.
The Mitsouko scent was developed by Jacques Guerlain in 1919, and was named after the heroine of Claude Farrere’s “La Bataille,” a novel where a British naval officer has a love affair with the wife of a Japanese admiral during the Russo-Japanese War. Furthering Mitsouko’s Japanese connection, Guerlain aligned the limited-edition bottle design with Arita Porcelain Lab’s 400th anniversary.
Ties to Japan
Guerlain’s limited-edition Mitsouko bottle combines Japan’s Rising Sun flag with the culture’s symbols of good fortune. The use of the Rising Sun also links the fragrance’s backstory to the Japanese navy and the flag’s use in the early 20th century.
The Guerlain bottle was fired in Arita Porcelain Lab’s Yazaemon oven, used by the brand for the last 200 years. Decorated on all four sides, the design places Mitsouko and Guerlain Paris at the center of the Rising Sun Flag with codes of good luck serving as the sunbeams radiating out from the center.
Mitsouko’s Arita Porcelain Lab bottle comes empty and is accompanied by a vile of eau de toilette juice on the side. The limited-edition bottle will first be available in Tokyo on May 1, with following debuts over the summer in Hong Kong and Paris. The bottle will retail for about $430 at current exchange rates.
Front and back of Guerlain x Arita Porcelain Lab’s Mitsouko bottle
Satoru Matsumoto, a seventh generation porcelain maker using the Yazaemon oven, stressed during a press conference last month that expertise is needed to create such a bottle, but Arita Porcelain Labs is facing difficulties in securing talent for the next generation, a struggle many luxury brands currently face.
Education solutions have been embraced by nearly all sectors of the luxury industry to cultivate young talent.
For example, the Condé Nast College of Fashion & Design expanded its offerings with a new BA (Hons) Fashion Communication degree validated by the University of Buckingham.
Starting this October, students can attend a two-year intensive that covers fashion history, media, PR and marketing, journalism, styling and branding. This is designed to give students a broad understanding of careers besides fashion design that exist within the industry, preparing them for roles after graduation (see story).
Jaeger-LeCoultre Reverso timepieces
Thirteen of the world’s premiere watch retailers and brands will gather on New York’s Madison Avenue for the sixth annual Madison Avenue Watch Week April 13-20.
Madison Avenue is considered the epicenter of haute horlogerie for the United States, giving watchmakers who participate a platform to display their latest and greatest timepieces. With SIHH and Baselworld recently wrapping, watch enthusiasts will still have newly released timepieces top of mind, especially if they were unable to attend the fairs in person.
Watchmaker takeover
Each year since 2010, the watchmakers and jewelers that line Madison Avenue open their doors to visitors. During Madison Avenue Watch Week, consumers and collectors alike can become immersed in the artistry and craftsmanship involved in the creation of fine timepieces, many on view for the first time in the U.S. (see story).
During the weeklong immersion into the art of watchmaking, brands such as A. Lange & Söhne, Asprey, Chopard, de Grisogono, Diesel, F.P. Journe, FreyWille, Panerai and Vacheron Constantin will participate.
Since the event is open to the public, consumers unfamiliar with fine watchmaking will have the opportunity to learn as passersby. For collectors and brand enthusiasts, Madison Avenue Watch Week presents further opportunities for face time with favored watchmakers.
The event takes place during business hours in watch and jewelry stores located between 57th Street and 86th Street on Madison Avenue.
Promotional image for Madison Avenue Watch Week 2016
For this year’s event many of the pieces on view will be making their debut in North America. For example, FabergĂ© has taken two timepieces straight from Baselworld to Madison Avenue Watch Week. These include the Grand Prix Winning Lady CompliquĂ©e Peacock and the men’s Visionnaire Flying Tourbillon.
Likewise Chopard will display a special collection of high-end watches sent over from Geneva. Similarly, Asprey, de Grisogono and Montblanc will launch new pieces during Madison Avenue Watch Week.
During the event, Hublot will host a cocktail reception with author and editor Aaron Sigmond. The event will be a celebration of his latest book, “Drive Time: Watches Inspired by Automobiles, Motorcycles and Racing.”
Additional branded events include a series of watchmaking classes with Jaeger-LeCoultre and a Collector’s Dinner hosted by A. Lange & Söhne. There will also be a 2016 Novelty Exhibition with beer and pretzels.
The yearly event is presented by the Madison Avenue Business Improvement District (BID), sponsored by The Wall Street Journal and supported by the Horological Society of New York.
For event details, a map and additional information regarding Madison Avenue Watch Week, please click here.
Barneys window display featuring Hood By Air
Department store chain Barneys New York is transporting consumers to Hood By Air’s spring/summer 2016 runway show at the Philharmonie de Paris through a lifelike display in its Madison Avenue windows.
Taking the concept of mannequin to a new level, the retailer worked with Studio UG’s Yuji Yoshimoto to build custom figures based on six of the brand’s muses, most of whom walked in the show. The realistic nature of the statues in the window will likely catch the attention of passersby, who may stop to examine whether or not they are truly inanimate.
Fabricated faces
It took two months to fabricate the mannequins. The models first sat for a 3D body scan. From there, Mr. Yoshimoto created negative molds by using plaster over silicon, hand sculpting the plaster to get details.
Then the master molds were filled with silicon in the model’s skin tone.
The studio embellished the figures with glass eyeballs, real eyebrow hairs that were affixed individually and custom dentures. The finishing touches were wigs, hand painted tattoos and custom mouthpieces by Dolly Cohen like those that walked the runway.
Barneys says these mannequins challenge conventional senses of beauty, which may cause pedestrians to stop and consider the figures in the window.
Golo, Roman, Brandon, Sunny, Chucky and Hirakish are not professional models, but men who were chosen to be a part of the Hood By Air creative community. They all live the brand’s lifestyle, making them fitting ambassadors.
Barneys window display
In the windows, the mannequins are shown in a white box, each with one foot forward as if walking a runway towards the window pane.
“From coordinating logistics with the models to the physical execution of molding and casting the forms, the whole thing took six months,” said Matt Mazzucca, vice president of windows and exteriors for Barneys, in a brand statement. “Truly, the process was just as inspiring as the final results.”
Barneys shared a behind-the-scenes look at the process on its content site The Window. In an interview, Hood By Air designer Shayne Oliver talks about everything from the origins of the pacifier-meets-S&M mouthpieces to the importance of diversity in casting.
Stepping away from the typical mannequin can help a store’s window display gain attention from onlookers.
Italian apparel and accessories label Bottega Veneta looked to a Hasbro doll to model its spring/summer 2014 collection in its window displays to stand out from other storefronts.
The life-size mannequin versions of Blythe, a doll with a large head and wide eyes, was revealed in the windows of select Bottega Veneta boutiques over the course of a few weeks. Since Blythe has been around for multiple generations, Bottega Veneta was able to connect with consumers of varying ages who recognized the doll and were reminded of their childhood (see story).
Image courtesy of Neiman Marcus
WiFi availability is nearing ubiquity across all retail sectors, representing a significant opportunity for brands, with merchants such as Whole Foods, Kohl’s and Walmart leading the way in terms of time spent connected, according to a Popwifi report coming out on March 31.
The report, Making Connections: WiFi in the U.S. Retail Sector, found that 11 of the top 20 brands offering quality free WiFi are restaurants or fast food outlets, with BJ’s and Olive Garden topping the list. Additionally, smartphone users in the United States consume more data per minute at Starbucks than at any other brand surveyed.
“Historically in-store WiFi has been a passive amenity deployed by merchants as a customer experience value-add,” said Dave Fraser, CEO of Popwifi’s parent company Devicescape. “Now the focus is shifting towards the benefits merchants themselves can derive from their WiFi networks.
“WiFi is becoming an active enabling platform, providing a direct, branded communication channel between merchant and customer,” he said. “A simple use case sees the WiFi network used to deliver a welcome notification to the customer’s device when they enter the store.
“But WiFi can also be used to drive far more sophisticated, contextual engagement, including real-time, location-aware and two-way communication. This shift is still in its early stages, but it is rapidly gaining momentum.”
The Popwifi report is based on anonymized data from more than 350,000 U.S. smartphones.
A key amenity
An important takeaway from the report is that free WiFi is rapidly becoming a key amenity offered by bricks-and-mortar merchants.
In terms of quality of WiFi service, BJ’s and Olive Garden lead, followed by Lowe’s, Michael’s and Macy’s.
By sector, Publix offers the best WiFi among grocery stores, Macy’s has the best out of department stores, Lowe’s leads retailers, BJ’s among restaurant brands and Taco Bell among fast food brands.
“Smartphone users are connecting at grocery stores, pharmacies, restaurants, big-box retailers, department stores, bars; everywhere they go,” Mr. Fraser said. “Meanwhile, the quality of connectivity on offer is very high.”
Connection crossover
Popwifi also took a look at how often the same devices connect to the WiFi offered in different locations. McDonald’s and Walmart are the leaders in terms of number of unique devices connected and also see the most interconnection, with more devices connected at their locations also connecting at other locations.
McDonald’s and Walmart also see the highest crossover of unique device connections. Other brands experiencing significant crossover rates including McDonald’s and Target, McDonald’s and Home Depot and Walmart and Target.
Starbucks is the leader when measuring the volume of data consumed by unique device, followed by Whole Foods Market, Walmart, Kohl’s and JCPenney.
In terms of time spent connected, Whole Foods Market comes out on top, followed by JCPenney, Kohl’s, Walmart and Starbucks.
Starbucks also leads when it comes to the rate at which data is consumed, followed by Sheetz, Apple, McDonald’s and Whole Foods Market.
A network of networks
The top 40 brands by number of unique devices connected in November 2015 delivered a total of 13.5 Terabytes to the Popwifi sample base.
“The fact that customers are connecting to shared WiFi in such large numbers, and at so many venues, represents a huge opportunity for brands in all of the sectors we surveyed,” Mr. Fraser said. “A connected customer has already taken the first step towards a level of engagement that offers genuine value to customer and merchant alike.
“So merchants need to make it easy for their customers to get connected in-store, and they need to find a way to use those connections to engage with their customers,” he said. “Merchants also need to understand that their customers are routinely connecting to WiFi at many different venues, each one part of a vast ‘network of networks’ which collectively represent a huge engagement channel.”
Concours of Elegance at Windsor Castle
Britain’s Concours of Elegance is making changes and highlighting national heritage as it prepares to celebrate more than a homecoming.
The event will take place in Windsor Castle for the first since the event’s inauguration in 2012 and will also celebrate Her Majesty The Queen’s 90th birthday. A homecoming, a national tie-in and of course a large and diverse selection of automobiles will ensure the event maintains its status as one of the world’s premiere classic car events.
“We will have vehicles from across the history of the motor car – all extremely rare or significant – and from the world’s most legendary brands and coach builders including Ferrari, Bugatti, Rolls-Royce, Touring Superleggera and Pininfarina,” said Luke Madden, account manager, influence associates at Concours of Elegance. “Cars will be coming from all corners of the globe and many will be on display in the UK for the very first time.
“Outside of the 60 main Concours cars we will have special features, including a showcase of a significant car from each decade of Her Majesty The Queen’s 90 years,” he said. “We will also have an exhibit of all the latest supercars and hypercars, and we’re planning a special exhibit of cars from 1926 – the year of the very first British GP and the year of Her Majesty’s birth.”
Homecoming
Initiated to mark 60 years of Queen Elizabeth II’s reign, Concours of Elegance was originally held in Windsor Castle. It quickly became a renowned classic car event and has grown each year while maintaining its distinction via careful selection, but its venue has changed repeatedly.
Concours of Elegance at Windsor Castle
Over the course of the homecoming weekend, almost 1,000 cars will be on display, the largest crop yet. A selection of cars from 1926, the year of Her Majesty The Queen’s birth, will be on display, and a new lawn feature will highlight the latest supercars by brands including Ferrari, Bugatti, Lamborghini and Aston Martin.
Furthering the celebration of Her Majesty The Queen, some of the top car clubs in the UK will make an appearance, each bringing 90 of their finest vehicles, and a spotlight an important car from each decade of the past 90 years.
Other vehicles will have direct ties to the Royal Family. A six-horsepower 1900 Daimler, originally purchased by King Edward VII, the first member of the family to ride in an automobile, will be on display.
A national tie-in such as the diamond jubilee celebration will help Concours of Elegance stand out from other car shows and will also reflect positively on many of the brands showing.
Ferrari 250 GTO
In addition to the royal celebration, highlights include the 1962 Ferrari 250 GTO that Graham Hill raced at the Goodwood Tourist Trophy and a Touring Superleggera Disco Volante Spyder, a hand-crafted Alfa Romeo 8C. In addition to the Ferrari, Spyder and 1900 Daimler, 57 vehicles will have the spotlight shone on them.
The event will also host the RAC Club Trophy, Jaguar Trophy and Bentley Trophy, with those brands joining the other luxury automakers on display at the show.
This year’s event will take place Sept. 2-4 and offer a Friday “Members” ticket Sept. 2, including VIP parking, a souvenir catalogue, Champagne, refreshments and access to the Member’s Marquee. In the past, the first day of the event has been closed to the public.
Touring Superleggera Disco Volante Spyder
Tickets begin at only £25, or $36, meaning that car enthusiasts of all ages will be able to attend.
New cars in town
It is common for British brands to celebrate Her Majesty’s The Queen’s anniversaries or other landmark events.
British heritage brands joined in the festivities as Queen Elizabeth II becomes the longest reigning monarch in the United Kingdom’s history in 2015.
Queen Elizabeth accessed the British throne on Feb. 6, 1952 after the death of her father, became the longest-lived British monarch in 2007 and today has surpassed her great-great-grandmother Queen Victoria as the longest-reigning British monarch. Due to longstanding cultural ties as well as business connections through the appointment of royal warrants, British heritage brands often celebrate the royal family’s personal milestones such as weddings and births (see story).
Concours of Elegance is only one of the car shows to crop up in London in recent years.
In January 2015, London Classic Car Show inaugurated its first classic car event ever as a kick-off to the New Year and London automotive events in 2015.
The London show hoped to add dimension to the static car show by showcasing a Grand Prix race car indoors during the event. Along with other activities, showcases and celebrities, the first London Classic Car Show drew a lot of attention from automotive enthusiasts (see story).
“Concours of Elegance is the only event in the world with such incredible access to Her Majesty’s Royal Palaces,” Mr. Madden said. “We consistently attract world-class cars and we place them within the glorious, exclusive surroundings of Britain’s finest Royal households.
“We are the only event of our kind, for example, to use the Quadrangle at Windsor Castle, and have held our event at St James’s Palace, Hampton Court Palace and the Palace of Holyroodhouse,” he said. “This year, our Steering Committee have seen record numbers of applications to display cars at the event.
“Despite a focus on classic cars, we are supported by a number of leading manufacturers, including Bentley, Rolls-Royce and Ferrari, who will all be showcasing their latest models. We try to represent all aspects of the automotive sector, and there is undoubtedly a trend towards hybrid and electric vehicles, and Concours of Elegance intends to showcase the latest and greatest of these at Windsor Castle.”
BMW i8
Even as digital mounts a speedy takeover of the marketplace at various points of the purchase journey, brochures still have a place in the automotive world, according to a Foresight Research Study.
A brochure influenced the same proportion of buyers in 2015 as in 2008, and the same percentage preferred to pick one up in person as opposed to finding it online. Understanding the significance of what may seem to be an outdated marketing tool can help brands reach consumers.
“New auto buyers are older and tend to be upscale,” said Nancy Walter, vice president business development at Foresight Research. “Both of those groups are significantly more likely to have looked at a brochure in the year before purchasing their vehicle.
“In addition, the boomers are influenced by fewer marketing channels then are younger buyers, so brochures are a more important part of the mix for a majority of buyers,” she said.
Not dead yet
Picking up a catalog at a dealership used to be a staple of shopping for a new car, but that is no longer the case. Today, consumers are free to look at features, specs, colors and accessories for a brand’s entire line online without having to visit the dealership of each brand.
Nonetheless, brochures influence one third of new auto buyers to purchase, a number that matches Foresight’s finding in 2008. Moreover, print copies of brochures picked up at the dealership are still preferred to those found online and even at audio shows, whether or not the consumer says to brochure influenced them in person.
Aston Martin brochure app
This is partially due to the average age of new car buyers. Economic woes and the migration of youths to urban areas and metropolises has left purchasers of new auto buyers skewing old, with 45 percent being at least 55 years old.
Most important for automakers, however, is that brochures are most popular among influential consumers, defined by Foresight as those who give advice to at least six people about car shopping. They are most likely to recommend their brand to a friend, and they also skew toward luxury purchases, with BMW purchasers being the biggest brochure users.
Dealerships will need to ensure they always have brochures on-hand to reach this desirable consumer subset, and updating the materials in print should be a top priority, not something pushed to the side due to the belief that consumers could find what they need online.
Aston Martin brochure app
Beyond information, Foresight also found that brochures communicate messages about style and brand reputation, not just technical information. Overall, they rank in the top three marketing channels for 15 or 27 messaging themes the researcher studied.
“We actually would have expected them to move over the past eight years, but brochures have held stable in exposure and influence,” Ms. Walter said. “Millennials are generally more open to digital channels, so as that group eventually becomes the majority of new auto buyers, we may see the shift to digital brochure, but auto marketers would benefit from keeping physical catalogs available for the near future.”
Growing up digital
While brochures will remain important for an influential market segment in the near-term, the longer-term outlook across all segments looks quite different.
Multichannel retailing is the future of the automotive industry, with 50 to 60 percent of sales leads expected to come through digital means by 2016, compared to 15 percent in 2014, according to a new report by Frost & Sullivan.
New store formats, such as digital showrooms and pop-ups, offer original equipment manufacturers (OEMs) a cost-effective way to reach consumers and generate sales, but this change in retail strategy requires investment from brands. As automakers alter the way in which consumers interact with their brand during the purchase path and post-purchase, the challenge will be to retain a sense of consistency and loyalty (see story).
Some brands are already positioning themselves for younger, more digitally attuned audiences.
For example, British automaker Rolls-Royce Motor Cars is repositioning itself for consumers with a new Web site.
The new site is designed with mobile in mind, with a smooth flow of images and bold links adorning the homepage. The redesign is a part of Rolls-Royce’s ongoing effort to become more visible in the digital space and to efficiently reach its target market (see story).
“Dealers and automakers will be best served by making brochures available and using messaging in the brochures that expands beyond the technical specs information,” Ms. Walter said.
“This is particularly important when the audience is luxury buyers, as they are the most likely to have read a brochure in the year before purchase, and to have been influenced by brochures,” she said.
Image from Neiman Marcus’ The Art of Fashion campaign
Fashion retailer Neiman Marcus Group’s chief marketing officer Wanda Gierhart is stepping down from her position.
According to Women’s Wear Daily, the executive is leaving “to focus on other interests,” with her exit planned for the near future. While Neiman Marcus has not named her replacement, Ms. Gierhart is intending to work with the retailer as it makes the transition.
Moving on
Ms. Gierhart was hired in 2009 to oversee all aspects of marketing and customer insights for Neiman Marcus stores, Neiman Marcus Direct and Bergdorf Goodman. This included consumer research, advertising and sales promotion.
Prior to Neiman Marcus, Ms. Gierhart worked at TravelSmith, Design Within Reach and Limited Stores.
At the time of her hire, president and CEO of Neiman Marcus stores and executive vice president of Neiman Marcus Group Karen Katz said, “It is Wanda’s extensive experience in the retail industry in both marketing and leadership roles that makes her a perfect match for our needs. In addition to exploring new opportunities, we look forward to her contributions in further developing our brands and reinforcing our commitment to presenting our customers with exquisite merchandise and outstanding service.”
She was instrumental in the retailer’s omnichannel activities, which have included everything from the addition of a content-centric mobile application to personalized ecommerce shopping experiences.
Neiman Marcus’ Snap. Find. Shop. app
During Ms. Gierhart’s time at Neiman Marcus, the retailer began offering free standard shipping and returns for ecommerce purchases.
In addition to customer service platforms, Ms. Gierhart oversaw creative campaigns, such as Neiman Marcus’ placement at South by Southwest.
At this year’s festival, Neiman Marcus schooled fashion-forward females in the art of self expression.
Neiman Marcus and Refinery29 will host the School of Self Expression during South by Southwest in Austin, TX, with workshops and presentations going on throughout the festival. By having a presence at one of America’s premiere destination events, Neiman Marcus hopes to endear itself to a younger group cultured and stylish women (see story).
Fashion retailer Neiman Marcus Group’s total revenues decreased 2.3 percent in the second fiscal quarter of 2016 ending on Jan. 30.
The company’s total revenues’ decrease equates to a reported $1.49 billion, down from $1.52 billion from the year-ago period. Despite a drop in revenues, Neiman Marcus has been steadily increasing the retail footprint for its flagship brand, especially in the New York market, showing its growth potential (see story).
Just a few years ago, travelers on vacation went to see the capitals of the world, eat at famous restaurants and bought mementoes of their trips. Now, with the emergence of millennial travelers accounting for about 76 million of these tourists, those p...
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Lamborghini Centario
Italian automaker Lamborghini is gearing up to provide a handful of aspiring racers the ride of their life.
The Pilota Lamborghini will take place April 7-9 in Las Vegas for eight select participants, who will hone their racing skills in preparation for the real thing. As consumer interest turn toward the experiential, track experiences will prove to be an important component in fostering consumer loyalty.
“Luxury marketers create dreams and desire,” said Chris Ramey, president of Affluent Insights, Miami, FL “Pilota Lamborghini exists to sell the experience of the automobile, that’s enough for enthusiasts and aspirational prospects.”
Mr. Ramey is not affiliated with Lamborghini, but agreed to comment as an industry expert.
Lamborghini could not be reached for comment.
Running down a dream
The Pilota Lamborghini program at Las Vegas Motor Speedway is being touted by the brand as “its most advanced track program to date” and aims to hone participants’ skills in preparation for real racing.
Lamborghini Huracan at NY Auto Show
Participants will learn the track first-hand in a competitive Lamborghini production vehicle and then undergo training, including recovery techniques and overtaking exercises. After training, the fledgling racers will move to the brand’s Gallardo Super Trofeo, a vehicle otherwise reserved for licensed racecar drivers.
Over the weekend, participants will practice and undergo a qualifying session with tire change, just as they would in a real race, and then participate in a 30-lap race with a pit-stop and driver change.
The experience will also include helicopter transfers to and from different locations, a welcome cocktail party, meals, hospitality and even an awards ceremony.
The Pilota Lamborghini program costs $19,995 for an all-inclusive package. A $1,995 partner price package that does not include the driving course but includes all other features plus a spa and wellness package is also available.
Lamborghini Centario
Completion of the course qualifies drivers for the application to the IMSA-FIA racing license, bringing them one step closer to their dream. With Lamborghini’s brand being defined so heavily by exclusivity, experiences—particularly those with tangible benefits—help to justify high price-points in the minds of value-oriented consumers.
The Pilota Lamborghini program will appeal generally to aspiring competitive racers rather than exclusively to Lamborghini loyalists. The experience will likely make them fans for life.
“Loyalists will ensure Pilota Lamborghini succeeds,” Mr. Ramey said. “Participating in Pilota Lamborghini is a privilege and personal responsibility for a loyalist; it’s pure passion. It’s also a loyalist’s responsibility to bring a friend to feel their enthusiasm.”
In the spotlight
Other automakers grant fans the opportunity to drive their vehicles in heavily produced events, giving them a moment in the spotlight.
Italian automaker Maserati is drove into the new year with the addition of two new courses for its Master Maserati 2016 program.
The new additions to the driving course program include the SnowMaster Experience Lapland edition and Master Premium. While Maserati offers a number of driving courses for its enthusiasts to enjoy, adding new options will help prevent repeat visitors from tiring of the program (see story).
Racing is integral to the Lamborghini brand, and it often finds ways to help its fans partake in that lifestyle.
In June, Italian automaker Lamborghini appealed to its target consumers’ love for racing with a mobile application that allows owners to track, save and record their driving performances.
The “Track and Play” app is designed for Lamborghini owners to be able to challenge themselves on the racetrack. Creating an application that is solely for current consumers allows Lamborghini to continue the exclusive nature of the brand and reach audiences on a new platform (see story).
“Experience drives revenue regardless of the category,” Mr. Ramey said. “The challenge for luxury brands is to continually innovate and elevate their brand experience.
“The recurring cycle is luxury leaks and mass reinterprets,” he said. “The result is, at least for this Italian manufacturer, Pilota Lamborghini.”
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