The latest Frisk (our British brethren's takes on today's trends) focuses on an oft-contested subject in life (and most certainly marketing): luxury. Inside Frisk, LB London gives its take on luxury's democratization, trends in wearables, and why the buzzword is more of a state of mind than a price on a tag.

1. Frisk Special: LUXURY
March 2014

3. Hi there. Welcome to the latest Frisk special.
If you missed the last one, these newsletters act as a showcase of the thinking that
goes on within the venerable red bricks of Leo Burnett London. Frisk has been running
for some time as a weekly internal newsletter, with the first edition of each month
centring around a particular theme. We recently decided to externalise these specials
because, well, we’re nice like that. So the first one was about WOMEN, and this one
has a LUXURY theme.
That’s right, luxury. As you may be aware, we’ve got a whole in-house wedge of
premium-oriented thinkers in the form of Atelier; this newsletter contains much from
them, but also otherwhere. You see, we’re not just talking about luxury in the sense of
Riva speedboats and penthouses full of Cristal, but what the notion of luxury actually
means in an everyday sense, across all levels of the social strata. You’ll see what I
mean.
We begin with a thinkpiece from Canvas8 entitled ‘Premium vs. Luxury: How Luxury
Is Fighting Back’, which is a nice gritty feature. We then move on to ‘Luxury: The
Human Story Behind Its Resilience’, from our very own Atelier experts. Then it’s over
to LSN who have a few global examples of modern luxury for us, a look at Digi-Luxe
from one of our LB LDN Planners, and then a few little Snapshots to round things off.
I sincerely hope that you enjoy what you read. If so – or indeed, if not – do be sure to
fire some feedback into the Twittersphere: the handle’s @LeoBurnettLDN.
See you next month for more of this bejewelled thinkery.
Daniel Bevis
Senior Knowledge Editor
Leo Burnett London

4. We work closely with Canvas8, a deep-dive insight network who ‘make the complex simple
by helping us make the simple significant’.
This ‘Premium vs.Luxury’ piece deals with one of the dichotomies of modern life – just what
does luxury actually mean today?
With premium threatening to steal its consumer base, luxury is forced to carve out a new space. But with
perceptions of value changing rapidly, just how is it going to define itself?
Luxury and premium may be highly subjective terms but there is no denying the recent emergence of
a new contender in the upper echelons of the market. Premium, unlike luxury, is the product of its time:
democratic, technically innovative and performance led. In such a context, luxury is forced to reconsider and
reassert its own relevance. From catering to individualism and speaking local languages, to the provision
of exclusive experiences and combining heritage and digital values, we survey some of the avenues open
to luxury.
PREMIUM VS LUXURY: HOW LUXURY IS FIGHTING BACK
A NEW BENCHMARK
In a 2009 blog post, bestselling author and entrepreneur Seth Godin provided a simple definition of
premium: “Premium goods... are expensive variations of commodity goods. Pay more, get more.” [1] The
rise of premium goods in recent years has been fast and formidable, as informed consumers – empowered
by new research devices and information sources – demand more and more from the everyday products
they consume. [2] In a global marketplace, the quality of output must rise accordingly. Brands polarise –
popularly known as ‘death of the middle’ – meaning that, for many consumers, premium has become a
new benchmark. [3] And once people become accustomed to asking for better and getting it, brands are
confronted with an attitude that can be hard to reverse.
image © Achim Hepp, Creative Commons (2009)

5. As author Kristina Wilson explained in New York Times article ‘Design Loves a Depression’, “American
designers took the Depression as a call to arms... It was a chance to make good on the Modernist promise
to make affordable, intelligent design for a broad audience.” [4] In many ways, the rise of premium goods
during the current recession provides an easy analogy. In the same article, Michael Cannell, founder of
thedesignvote.com, states his case: “Modernism’s great ambition was to democratise design. Ikea and
Target have shown that the battle for cheap design can be won. The emphasis will most likely shift to
greater quality at affordable prices. This time around it will be the designer’s job to discourage consumers
from regarding that $30 Ikea side table as a throwaway item.” [4] From high street / designer collaborations
to the democratisation of the smartphone, mid-range brands everywhere are stepping up their game – it
would certainly seem that Cannell’s prediction, made in 2009, has come true.
A PRODUCT OF RECESSION
image © Apple (2013)
A 2011 survey by Added Value found that premium brands are perceived to have seven defining qualities:
“less ostentatious, more accessible, more modern, more rational, best in class, sleeker in design, and
precision in fabrication.” [5] There is a very clear emphasis here on performance over appearance – a move
towards stylish substance (or substantial style). Consumers are willing to invest in premium goods during a
recession precisely because – in keeping with an increased interest in preparedness – they want something
that, above all, works well. [6] Responding to this new set of priorities, many higher-end smartphone
manufacturers like Apple and Samsung have adopted a new premium look that prizes function over
form – an austere, albeit stylish, aesthetic that almost ‘vanishes’ the medium altogether, characterised by
smooth lines and a monochrome palette. As emphasis on technology performance shifts increasingly from
hardware to services, this will be reflected in their design.
INVESTING IN PERFORMANCE

6. THE RISE OF AUTHENTICITY;
THE DECLINE OF SHOULDER
PADS
In stark contrast to the perceived practical benefits
of premium, luxury goods are widely considered
“needlessly expensive” – because, as Godin
explains, “price is not related to performance. The
price is related to scarcity, brand and storytelling.
Luxury goods are organised waste. They say, ‘I can
afford to spend money without regard for intrinsic
value.’” [1] Michael Cannell paints a vivid picture
of this kind of ostentatious superficiality when he
recounts a scene from a pre-recession furniture
fair: “Marcel Wanders, a Dutch designer known
for arty provocations, held a thumping party to
show off his 15-foot-high lamps and other furniture
of distorted Alice-in-Wonderland scale. Never
mind that his work was upstaged by his girlfriend,
Nanine Linning, who hung upside down half-naked
while mixing vodka drinks from bottles affixed to
a chandelier. Form followed frivolity. Function was
left off the guest list.” Cannell goes on to criticise
Wanders for a glamorous aesthetic that no longer
responds to the true needs of society. [4]
http://youtu.be/85XU7SizykE
LUXURY GOODS AND
HOLLOW CONSUMPTION
In the context of a recession, such decadence is
easily perceived as tasteless and divisive. In a 2010
article for Canvas8, anthropologist Krystal D’Costa
reported that “wealthy consumers are conscious
of the public’s disapproval of displays of wealth
during recession,” leading to the rise of “subtle
displays of wealth” on Wall Street. [7] Retailers
have embraced this new trend to maintain luxury
sales, with Gucci relegating its iconic GG bags to
the back of the shop in favour of the ‘New Jackie’,
a timeless wardrobe essential, and understated
fashion brands like Celine and Martin Margiela
(which eschews labels altogether in favour of a
small white cross-stitch) coming into their own.
Even emerging markets, like China and India, are
turning away from conspicuous consumption
quicker than many had anticipated – a sign of what
some are calling ‘logo fatigue’. [8]
In 2011, steps were taken to remove words like
‘regal’ and ‘luxury’ from Beijing billboards, in
what David Wolf of communications advisory
agency Wolf Group Asia called “a campaign
against ostentation.” China Daily described the
new legislation as protective of social harmony –
because the pernicious belief that ‘wealth is dignity’
was guaranteed to upset low-income residents. [9]
In a 2009 article for Canvas8, Marco Bevolo
claimed that “The luxury market is in complete
disruption. Because luxury is built on the aspiration
of people within cultural norms, and the current
massive crises has destabilised these norms.” [10]
A substantial report published by the UK arm of
the World Wildlife Fund in 2007 expands further
on this theme: “The definition of success – and
the way it is perceived by others – is changing.”
It anticipates – interestingly, from a pre-recession
perspective – a move towards “a new type of luxury
whose deeper values are fully embodied in the
sourcing, manufacture, marketing and distribution
of products and service,” driven by “an affluent,
global elite that is increasingly well educated and
concerned about social and environmental issues.”
[11] This is all part and parcel of a move towards a
deeper definition of luxury, inspired by premium
and its apparently better value.
CHANGING VALUES AND
REDEFINING SUCCESS
image © The Chalk Room at Hostem (2013)

7. INDIVIDUALISM AND BESPOKE
ArecentarticleinTheGuardiancoveredthegrowing
popularity of bespoke fashion consumption
amongst everyone from business women to the
Duchess of Cambridge. “In a homogenised world,
where we can order Burberry’s and Topshop’s
latest collections as we watch a live stream
of their runway shows, and every capital city
features the same glass-fronted, glossy temples
to expensive designer brands, this is the antithesis
of the marketing and hype surrounding what we
traditionally know as luxury labels,” writes Karen
Kay. [13] Bespoke aside (and it’s worth noting
that couture is also undergoing a significant
revival), luxury labels – through scarcity, false or
otherwise – are able to meet a growing demand
for individualism. The Chalk Room in London’s
East End, for example, provides customers with a
unique experience by customising any item from
suiting to S&M gear, whilst customisation tools like
Bespoke Burberry take luxury brands back to their
roots by letting customers design their own coats
using over 2 million different features.
The successful launch of Hermès Chinese luxury
brand Shang Xia, alongside an intimate exhibition
celebrating the history of China’s culture, certainly
testifies to this. [14] Notably, in 2011, Hermès also
launched an exclusive range of saris to the Indian
market, whilst way back in 2003, Louis Vuitton
commissioned artist Takashi Murakami to create
a colourful monogrammed bag as a tribute to its
formidable Japanese market. [15][16] In this way,
luxury brands, unlike their premium rivals, are able
to cater to local values and tastes through their
emphasis on performance and functionality that
appeals to an international audience. Exclusive
‘unhotel’ service onefinestay proves just how
attractive local luxury, whether at home or abroad,
can be. [17] http://vimeo.com/5198631
So where does this leave luxury as it seeks to
redefine itself against premium? Forbes outlines the
‘luxury advantage’ and the reasons for its enduring
success: “Luxury brands know how to create and
foster emotional value. It’s this distinction that
enables them to continue to live so large, even in
a time of constricted budgets. What luxury brands
do well is exhibit clear brand values that lead to
a meaningful emotion.” [12] But with premium
promising something more tangible, will emotional
values suffice? And what are they, anyway?
INSIGHTS AND
OPPORTUNITIES
LOCAL LUXURY LANGUAGES
Talking about China, David Wolf describes “a
pushback against things Western... There is the
desire to see those Western things take a lesser
role in the development of Chinese culture.” [9]
INSIDE TRACK AND LUXURY
EXPERIENCES
Increasing democratisation means that luxury
has struggled to maintain the exclusivity that
distinguishes it from premium offerings. To quote
Luxury Society’s manifesto: “The definition of
luxury has changed considerably in recent years.
No longer the privileged domain of the happy few,
it is an eclectic, competitive and highly developed
marketplace.” [18] Yet whilst democratisation
expands consumer bases, it significantly impacts
mystique. As Walpole’s deputy chairman Guy Salter
put it, “our products have become more accessible
and by definition less exclusive... it is this, our very
success, that imperils us.” [11]

8. TAPPING INTO HERITAGE
The challenge for luxury brands is to simultaneously
maintain a high profile and a sense of exclusivity.
Though this may sound paradoxical, it’s not
impossible thanks to consumer streaming – take,
for example, the very different experience afforded
by watching a backstage Fashion Week tweet
walk versus attending an actual show. The London
Louis Vuitton store may often find itself overladen
by tourists, but the invite-only apartment above it
ensures that valued buyers still feel special. This,
in turn, ties into luxury experiences – a genuinely
exclusive commodity that premium brands can
only emulate on a large scale. The All New Range
Rover experience sees customers picked up at
home and chauffeur-driven to Solihull, immersed
in the brand’s heritage and history, and treated
to “augmented reality, projection mapping, 3D
stuff.... all the bells and whistles,” in order to justify
the car’s six figure price tag. To quote Tim Hill in
The Guardian: “A true luxury brand has license to
add another zero to the price tag because price
just isn’t important. It’s the experience of the brand
that you buy into.” [19]
Threatened by premium, luxury brands have
traditionally fallen back on heritage discourses as
proof of value and expertise. After all, longevity – or
‘timelessness’ – is a major part of their appeal. For
fashion houses, this may mean a high profile foray
into their own archives or an overt demonstration
of expertise, such as an exhibition showcasing
10 different Hermès crafts recently staged at
the Saatchi Gallery. Champagne brand Dom
Perignon celebrates its own experience through
its Oenotheque vintage, which is released from
the cellars only when the ‘chef de cave’ deems it
ready to consume. As an article from luxury phone
maker Aesir’s magazine Taenker explains: “In a
world where so much is available so quickly and so
cheaply, expertise matters... In fact, the expertise is
the luxury.” [20]
Yet as the WWF-UK perceptively states, heritage
is not a long-term strategy. “Luxury brands need to
see heritage as an evolving phenomenon, and work
at contemporary heritage creation, by shaping the
future proactively.” [11] This is most particularly
the case when seen in the light of one of luxury’s
greatest perceived flaws – a lack of innovation
when it comes to adapting to the digital world.
Whilst consumers may balk at the impermanence of
electronic objects, the supremacy of performance
over all other considerations means an emphasis
on longevity will no longer suffice. The challenge
for luxury, then, is to integrate technology into
its offering whilst maintaining its core values –
difficult, but not impossible. A Canvas8 article on
luxury mobile phones applauds the Ulysse Nardin’s
Chairman model, which marries a traditionally
luxurious exterior – replete with precious materials
and heritage references – with a special programme
that allows subscribers to their phones in twice
yearly for software and hardware upgrades. In
this way, it marries the ‘solidity of luxury’ with a
constantly evolving offering. [21]
In the same way, luxury brands are beginning to
overcome perceived barriers to digital marketing
and even e-tail. The Inside Chanel website uses
video, text and imagery to tell the story of the
prestigious fashion house, marrying a focus
on heritage with a distinctly digital aesthetic.
[22] Burberry, which is widely celebrated for its
use of new mediums, recently launched a new
flagship store replete with digital elements –
including a 22-foot screen and augmented reality
changing rooms – designed to create a new luxury
experience that straddles the virtual and physical
worlds. [23] By employing such measures, brands
are not abandoning the tangible physical values
that luxury has so long relied on, but using hybrid
forms to create an emotional world that is infinitely
more valuable and enduring.
EMBRACING INNOVATION AND
INTEGRATING TECHNOLOGY

9. 1. ‘Luxury vs. premium’, Seth’s Blog (May 2009)
2. ‘Informed Consumerism’, Canvas8 (July 2011)
3. ‘Death of the Middle’, Canvas8 (July 2012)
4. ‘Design Loves a Depression’, The New York Times (January 2009)
5. ‘Luxury versus Premium – Luxury Detectives’, Added Value (October 2011)
6. ‘Preparedness’, Canvas8 (January 2012)
7. ‘Subtle hints of luxury on Wall Street’, Canvas8 (May 2010)
8. ‘Has Logo Fatigue Reached a Tipping Point?’, The Business of Fashion (March 2013)
9. ‘In Beijing, Even Luxury Billboards Are Censored’, NPR (April 2011)
10. ‘Art collecting and tomorrow’s luxury’, Canvas8 (December 2009)
11. ‘Deeper Luxury – Quality and Style When the World Matters’, WWF-UK (November 2007)
12. ‘Style And Substance: What Luxury Fashion Can Teach Us About Branding’, Forbes (March 2012)
13. ‘Bespoke clothes take over as the real fashion luxury’, The Observer (March 2013)
14. ‘Shang Xia: Pass It On’, Canvas8 (February 2011)
15. ‘Hermès saris’, Canvas8 (December 2011)
16. ‘Alt couture: shaking up luxury marketing’, Canvas8 (June 2009)
17. ‘Local luxury with onefinestay’, Canvas8 (September 2012)
18. ‘Manifesto’, Luxury Society (2013)
19. ‘How experiences are redefining luxury’, The Guardian (April 2013)
20. ‘Aesir: luxury in simplicity’, Canvas8 (January 2012)
21. ‘Luxury mobile phones: all in the best possible taste?’, Canvas8 (May 2012)
22. ‘Inside CHANEL: luxury storytelling’, Canvas8 (November 2012)
23. ‘Will digital save luxury?’, Canvas8 (September 2012)
SOURCES

10. Atelier specialises in luxury and lifestyle communications. Experts in understanding the style
and luxury consumer, we create distinctive and effective brand strategies and multi-platform,
beautifully crafted ideas. We work with brands like Max Factor, Glaceau vitaminwater, Aussie, The
OUTNET.COM (part of Net a Porter Group), Dorchester Collection and Lindt on a UK, European
or global basis. London is our flagship office, and we have Ateliers in Hong Kong, Tokyko, Beirut
and Berlin.
Luxury maintains its stubborn appeal – everywhere, and not just in the BRIC markets, the TIMPs or even the
MINTs. It’s a truly global phenomenon, currently worth $258 billion and expected to grow 9% each year for
the next decade.
You could be forgiven for thinking that those who are lucky enough to have the means to enjoy their luxury
tastes should do so quietly, given the plight of the majority. However at Atelier we recognise that modern
day luxury is a far more complex and diverse phenomenon. Rather than luxury being a wholly unnecessary
& frivolous expression of wealth, it is an expression of a deeper human story: one of identity, individuality
and belonging.
While there is no doubt that the modern luxury consumer is among the more privileged in society,
engagement with luxury brands is expanding to the mass consumer. Driven mainly through the digitisation
of luxury, anyone can now engage with the luxury brands they desire, even if they can’t necessarily own
them.
LUXURY: THE HUMAN STORY BEHIND ITS RESILIENCE
By Eleni Chalmers, Director of Strategy at ATELIER

11. ‘Luxury’ cannot be categorised simply by income
or expenditure, but by the choice to opt for the
more desirable option within any given category.
This desire is routed in the more elevated emotional
experience - or badge - one brand can offer over
another, and the lengths you go to, or price you’re
willing to pay, to get it (or experience a bit of it).
LUXURY IS NOT A CATEGORY
BUT A STATE OF MIND
Almost 90 percent of luxury
consumers agree with the statement
“Luxury doesn’t
have to be the
most expensive
thing or be the
most exclusive
brand”
Our chosen desire tells a story about who we want
to be. Traditionally, it can be very status-driven.
Or, as we are increasingly seeing, our desires are
far more nuanced, diverse and unexpected. So
behind the price tag is a deeply human story.
Luxury consumers are, directly or indirectly, telling
a story about who they are through their brand
choices. They are weaving the brand story into the
narrative of their own identity.
We call these ‘individual identity stories’.
We have found 8 emerging global identity stories;
unlike classic typologies, a person can express
different identity stories in different situations or
environments. Each identity story communicates
something about who they are and importantly,
who they want to be…
Characteristics:
- The shrewd ones
- Do their research
- Often have tastes beyond their budget
- Looking for good value, e.g. tax-free shopping,
sample sales, outlet stores
- Happy to combine cheap Primark T-shirt with
superfluxes Prada jacket
- Seek innovative ways to save without
compromising on the end experience
1. I AM A SMART CONSUMER.
Characteristics:
- Passion for craftsmanship & artisanal values
- Seek the brand’s back story
- Only desire the authentic
- While often drawn to brands with long
distinguished histories, they also seek modern
innovations
- Embrace technology to extend the experiencing
of their passions & network with kindred spirits
- Emerging markets are also responding to the
yearning for connoisseurship. The ultimate
stamp of luxury is goods brought from their
original provenance
2. I AM A MODERN CONNOISSEUR.

12. Characteristics:
- Started out as passionate connoisseurs but
became obsessives
- Almost like having another job
- In traditional categories like books or watches
they only buy antique or vintage
- …but not confined to traditional categories
- It can extend to any category considered worthy
of collecting, e.g. classic American denims
3. I AM AN EXPERT.
Characteristics:
- More than just the classic status seeker, this is
about using luxury to assert that you’re one of
life’s success stories
- Luxury goods that reinforce self-esteem are
particularly key. Can range from luxury beauty to
watches, cars, accessories, etc.
- Not as simple as ostentation; rather more about
confidence-building during hard times
4. I AM SUCCESSFUL.
Characteristics:
- Growing international elite who may use their
(often developing) home country as a base but
will spend much of their lives in the malls, shops
& playgrounds of the international jet set
- Very drawn to old world luxury as they may not
be as weary as their counterparts in developed
economies
- Happy to enjoy, savour & show off their
purchases
5. I AM AN INTERNATIONAL.
Characteristics:
- Seek perfection in their appearance – especially
when uncomfortable with traditional ostentation
- Sense of pride and self-love in taking care of
yourself to be the best ‘me’
- Not just confined to women. Male grooming/
cosmetic surgery has skyrocketed. There’s a
L’Oreal Hydra-Electric Men Expert sold every
minute
6. I AM ONE OF THE BEAUTIFUL
PEOPLE.

13. Characteristics:
- This identity story is about acknowledging the
personal & reinforcing the uniqueness of the
individual
- Often it’s about seeking great service
- Desire things that make them feel special and
deserving
- As much about experiences as material
possessions
- But if possessions are sought they must have a
personal angle, e.g. a Rolex from their birth year
7. I AM SPECIAL.
Characteristics:
- This is the luxury of being able to feel morally
or spiritually revived. Particularly rising in mature
economies where wealth alone is no longer
enough to express your unique identity
- This identity story is about having the means to
give back to society
- Can operate on many levels such as paying back
to others less privileged through charitable giving
- …or being able to strip the stresses of modern
life away, retreat & return spiritually boosted.
The luxury of space, time, silence
- Or it can be simply expressing your sense of
citizenship through sustainable choices, like
driving a(n expensive) Prius
8. I AM A POST-MATERIALIST.
As these emerging identity stories have
demonstrated, luxury is not simply a category
of aspirational goods & services, but an entirely
human act of individual self-assertion. Buying
luxury brands is (especially if, like us, you define
it broadly) an act of expressing our desires, and
the people we desire to be. This very human
story bolsters who we are and goes some way to
explain why, in the toughest of economic times,
our yearning to reinforce our identities continues,
perhaps even strengthens.
As the digital revolution continues, more and more
people can experience a bit of their desired luxury.
But rather than it losing its cachet, the increasing
desire among mass consumers for luxury brands
and experiences, merely serves to reinforce its
appeal and continue to grow the luxury footprint.
We predict that luxury will continue to enthral us
and inspire more ways for us to express who we
are.
CONCLUSION:

14. We work in partnership with LS:N, the Lifestyle News Network, to offer planners and client
teams access to a trends and insight base that plugs us into what’s new, next and innovative
in consumer thinking. Here are some highlights from their latest luxury-themed round-up…
In the luxury travel market the trend of drawing on local nuances and materials is widespread, not just in
design but also in the experience offered to travellers. It’s part of a reaction against cookie-cutter resorts
that are divorced from the local environment and culture.
LOCAL BUILD
HERITAGE+
Some hotel groups are working the local ethos into their architecture and design. ‘With all of our properties,
we want to make sure that they fit in the local environment, and that we use local materials and artisans,’
Chris Orlikowski, PR and marketing manager (Europe) for COMO Hotels, told journalists at the International
Luxury Travel Market (ILTM) event in Cannes this month. ‘We don’t build castles on hills. We are rooted in
local culture,’ said Six Senses CEO Neil Jacobs.
Ritz-Carlton is taking the approach practised successfully by Six Senses, launching Ritz-Carlton Reserve, a
series of boutique resorts that each ‘has a distinctive personality that blends together the culture, history
and heritage of its setting’. At ILTM, Ritz-Carlton announced it would open a new Reserve property in Ubud,
Bali, Indonesia, which will take architectural cues from the ‘unique environment of Ubud’, and features
‘exquisite indigenous design’ and ‘respect for the surrounding environment’.
Brands are also applying the luxe locale principle to the classic hotels in their portfolios. Dallas-based luxury
hotel and resort group Rosewood was relaunched in 2013 incorporating its A Sense of Place philosophy.
To achieve this, it has recruited a series of well-known individuals – Rosewood Curators – to introduce
guests to the local area. These include former US Secretary of State Condoleezza Rice for Silicon Valley, art
auctioneer Simon de Pury in London and fashion journalist Nina Garcia in New York.
Rosewood is due to open a hotel in Beijing in spring 2014 that features local Mongolian blue stone in its
architecture. It is also re-opening the Hôtel de Crillon in Paris in spring 2015 after a total restoration. It’s the
‘perfect embodiment of A Sense of Place’, says Perkins. ‘You don’t get more Parisian than a hotel where
Marie Antoinette used to practise her piano on the first floor.’
Starwood Hotels & Resorts, which owns luxury brands St Regis and The Luxury Collection, has also put
those values at the heart of its offer. ‘When we approach luxury through the Luxury Collection, it’s about
this authentic, indigenous, experiential vision of luxury,’ says Paul James, Starwood Hotels’ global brand
leader for luxury brands.
INSIDER KNOWLEDGE
Other hotels have focused on their local experiential offers. This year, The Peninsula Hotels relaunched
The Peninsula Academy, its suite of local activities that showcase the local destination’s history, cuisine,
shopping and culture. Activities include lessons with a surf instructor in Malibu and a private tour of a
firehouse in New York. It’s ‘to give our guests a little bit of something new’, says Robert Cheng, vice-
president of marketing at The Peninsula Hotels.
Anantara Hotels, Resorts & Spas also offers hyper-local experiences, from a Chiang Mai dining tour of night
vendors and regional specialities with a local guide to an insider’s view of Vietnamese heritage town Hoi
An that includes traditional painting classes.
LUXE.LOCALE

15. Luxury consumers are hungry for hotels and resorts that give them a taste of the place they are visiting,
while delivering high levels of service and comfort. Gone are the days when travellers found comfort in the
same filet mignon and marble lobby all over the globe. Today, a true sense of locale is key.
WHAT THIS MEANS TO YOUR BRAND
The innovation: Luxury Revivalism
The instigator: Louis Vuitton
In its race to climb to the top of the luxury tree, Louis Vuitton has taken inspiration from a second-placed
finish.
In 1934, iconic modernist designer Charlotte Perriand created a holiday home for a design competition. She
finished second and her house, La Maison au Bord de l’Eau, was never built.
For Design Miami/ 2013 Louis Vuitton used Perriand’s original designs to construct La Maison au Bord de
l’Eau on the Miami beachfront. Some 14 years after her death, the French designer’s Utopia has finally come
to life – as a luxury temple to the Louis Vuitton brand.
LA MAISON AU BORD DE L’EAU
Atelier started to explore the trend for local authenticity in the campaign it created for the iconic hotels
within the Dorchester Collection in 2011. The hotels weren’t just landmark, famous hotels - they were the
entry point and the extension of the experience of staying in a specific city, rather than the retreat offered
by other luxury hotel groups. For example, Le Meurice and La Plaza Athenee provide two very different
gateways to Paris. The work Atelier created was crafted to reflect the character of each individual hotel
and to build the ethos of the whole hotel group. Photographers Guy Aroch and Alistair Taylor-Young
brought this to life in a series of stunning images, including an exhibition of iPhone images capturing the
more intimate moments of the hotel experience.

16. EXPERIENCE ECONOMY
SPACE EXPLORATION
For luxury brands in the 21st century, it is not enough simply to produce luxury goods. ‘It’s not just the
product any more, it’s the experience,’ explains Milton Pedraza, CEO of the Luxury Institute, a luxury brands
consultancy.
La Maison au Bord de l’Eau’s airy wooden rooms display pieces from Louis Vuitton’s spring/summer 2014
Icons fashion collection – also inspired by Perriand’s better-living-via-design ethos – as if they belong to an
absent householder. A checkered dress hangs on the outside of a cupboard, and a leather jacket is draped
across the bed. The effect is to give the Louis Vuitton brand a tangible persona.
The combination of Revivalism and physical presence is a potent symbol of the modern-yet-timeless
aesthetic that luxury brands strive for. French luxury conglomerate Kering recently announced that its new
headquarters would be in a former hospital and church in the centre of Paris. Tod’s and Fendi, itself an
LVMH company, have sponsored the restoration of Rome’s historical monuments.
“Funding the realisation of a project that was conceived but never built feels fresh”, says Ilaria Alber-
Glanstaetten, founder of luxury brand agency Provenance. “Perriand is not alive, so it is a fairly risk-free
association. She worked with Le Corbusier, a legend, but she is not nearly as famous. It’s interesting without
being trite”.
LUXURY LEVEL
Louis Vuitton’s sales growth in the past two decades has been spectacular, yet its popularity has diminished
its cachet.
The association with Perriand is also a canny way of subtly boosting the brand’s feminist credentials.
‘Perriand was one of the first women to work as an architect and designer,’ says The Future Laboratory
creative director Kirsty Minns, who visited La Maison au Bord de l’Eau during Design Miami/. ‘She was a
true pioneer. Her life story is an incredible mix of exploration and adventure. In that sense she was a true
Athena Woman.’
The Athena Woman, the educated, affluent and confident modern woman, represents a big growth
opportunity for luxury brands. ‘Women’s economic power is growing astronomically,’ says Pedraza. ‘It
cannot be ignored.’

17. 2014 is seeing an explosion of devices in the wearable tech category, with an effort to make existing
products more desirable from a fashion point of view.
Fitness monitors currently dominate the wearable technology market, and with many duplicating each
other’s basic features, companies are under more pressure to make products that stand out from an
aesthetic point of view. To this end, Fitbit announced a partnership with Tory Burch, who will design a
line of necklaces and accessories that will ‘transform your tracker into a super-chic accessory for work or
weekend, day or evening’, according to the brand’s website.
A greater fashion influence was also visible in the emerging category of smart wristwear. The Pebble
smartwatch, a Kickstarter-funded darling of CES 2013, returned this year as the Pebble Steel, featuring a
sleeker premium metal look and leather straps. Another smart wristwear company, MetaWatch, launched
a new brand of devices called Meta that reflects a design philosophy more in tune with traditional watch
design, again featuring premium metals and leather. It seems wearable tech companies are taking seriously
the idea that, as Bill Wasik puts it in the January 2014 issue of Wired magazine, ‘wearable devices will need
to convey a message to the world that the wearer is happy to send – even if the batteries are dead’.
Other devices reimagined the wrist as real estate with more limited applications. The Kapture wristband,
another product funded via Kickstarter, is an audio recorder for the Twitter generation. It continually creates
a 60-second buffered loop of audio that is overwritten until the user presses a button, which sends the
past minute of sound to the user’s smartphone to be logged and shared, or simply quoted later. The device
avoids the overkill of some always-on ‘lifelogging’ devices, while allowing users to remember the quips and
ephemeral snatches of conversation that are otherwise often lost.
Another standout device was June by Netatmo, a sensor that measures exposure to the sun and offers
recommendations for protection. More devices like this are sure to have an impact on the beauty industry
going forward. ‘The future of cosmetics is going into personalisation,’ explained Guive Balooch, global
director of the Connected Beauty Incubator at L’Oréal Research & Innovation. ‘It’s all about the data of your
body or environmental condition and giving you a perfect product for your regimen,’ he told the audience
at a wearable technology panel.
WEARABLE TECH BRAND

18. NICHE, NOT LUXE
Luxury: traditionally it implies exclusivity, rarity, an inessential item or service that is difficult to obtain. But
it’s 2014 and times are changing, consumers are becoming increasingly demanding and luxury is shape-
shifting.
Trying to get cool?
Older, wealthy patrons of luxury brands do not attract aspirational younger consumers looking for
personalisation and unique experiences. Millennials are highly tech-savvy, shop hi-low (skipping between
expensive purchases and discount vouchers), and are seeking something different, but with the assurance
of quality. So as the Cool Brands list in 2013 was dominated by luxury - Bang and Olufsen, Aston Martin,
Alexander McQueen - is this evidence of luxury brands becoming more accessible? As they battle to lead
the fore in innovation, luxury brands are increasingly allowing consumers to access, engage with and even
co-create – becoming fundamentally more appealing to younger but more discerning consumers. They’re
using social platforms in really inventive ways, for example Colombian clothing brand GEF created a live
Pinterest board allowing consumers to showcase their own styles, then used the images to populate a
digital catwalk. Users posted an image via Facebook, Twitter or email and it was pinned, then displayed
at the Colombiamoda fashion event and at malls across the country. The most liked images were awarded
prizes, inviting further incentive to interact.
Luxury brands are also telling their stories through digital; Gareth Pugh’s ‘Monolith’ immersive experience
offered shoppers at Selfridges the chance to learn about the brand by wearing a helmet with a virtual
reality embedded display. Saddleback leather goods released a fantastic film with their founder on
YouTube demonstrating how their bags are engineered to persuade consumers not to buy fakes. By using
the platforms Millennials engage with, luxury brands demonstrate an understanding of their needs… needs
that their products can meet.
Leo Burnett Planner Rebecca Fleming takes a look at whether digital is democratising luxury.

19. Look at the trend for personalisation.
This is evidenced across numerous categories as varied as retail (Louis Vuitton Maisons invitation-only
apartments), beverages (Share a Coke) and automotive (Vauxhall Adam). Consumers have variety at their
fingertips and access to millions of brands worldwide that they can select to showcase their own individual
style. In China, a huge focus for luxury brands, trends analysts predict that we’ll see an emphasis on self-
expression and individualism as these consumers become more selective, choosing their purchases to
enhance their personal style and taste – rather than merging into the label-toting crowd. Brands offering
personalised sales for luxury consumers are bypassing a potential danger of homogenisation: designer
retail outlet Gilt Groupe have used data they hold on customers to offer custom-designed product
recommendations.
Let’s look at the faces.
Impossibly glossy, beautiful people will likely feature
in luxury forever, but we’re starting to see brand
ambassadors that consumers can relate to. Brands
have realised that hip-hop stars with emblazoned
logos are tarnishing their shine and have opted for
more positive representation – evidenced by real-life
Brit couple Sienna Miller and Tom Sturridge in the
interactive Burberry kisses campaign.
Digital innovation is helping luxury brands become
more relevant to Millennial consumers, offering varied,
tailored and creative ways to reach and share brand
values with them. Niche is the cool new take on luxury
and the category is using digital to drive new brand
perceptions.

20. FOLDING FLOWERS
Everybody likes to receive flowers, don’t they? It’s not just the cheery, colourful aesthetic that they beam
into your home, or that pleasant aroma, or the fact that you’re doing your bit to bolster the dwindling bee
population by giving the fuzzy little fellas a playpark, but it’s the thinking behind it. Someone likes you.
They think you’ll enjoy flowers, so they spent some of their money on giving your day a lift. Awww.
Receiving flowers can be tricky though. If they’re handed over in person, it’s great – you can do that self-
effacing ‘oh, I don’t know if I have a vase…’ thing whilst blushing with happiness. But what if they get
delivered to your office? There’ll be all kinds of embarrassing nudging and pointing. Worse still, what if the
delivery goes to your home and you’re not there? Then the loveliness of receiving flowers gets lost in the
frustration of trying to rearrange delivery. Tchuh, first world problems, eh?
But worry not. There’s now a system for delivering flowers in the post without them getting all squished.
This is very clever. Bloom & Wild’s method basically involves laying out the flowers in something resembling
a Graze box, ensuring that they have sufficient water to survive the journey. It fits through a standard
letterbox. All the recipient needs to do is liberate them and plonk ’em in a vase. Best ideas are often the
simplest, eh? http://youtu.be/XXRqZ-DEGRw
TELLY ART
There are two reasons for having copies or prints of famous artworks in your home. Number one: you like
them. Number two: you want people to think you’re cultured. Thankfully, as long as you’re canny with your
selection, the two are largely indistinguishable.

21. And if you’re in the latter camp and want to take your pseudoartism a step further, there’s an app for that.
Artkick works by connecting your telly to the interwebs and trawling through all manner of publically
available art, which you can then favourite and add to playlists. It’s a way of turning that chunky rectangle
in the corner of the room into a huge version of one of those random slideshow digital photo frames -
you’re basically saying ‘yah, I have a television, but I only use it to display art.’ Quite a statement.
http://artkick.com/
Yes, that’s right. This zeitgeisty, futurey newsletter
is talking about a fax machine. Whatever next, the
Amstrad Em@iler...?
OK, this isn’t actually a fax machine per se. It’s a 3D
printer that’s connected to a phone line. You can
see where this is going, can’t you? The concept was
always inevitable really, it was just a matter of who
developed it first – all you need is two connected 3D
printers and bingo, you’re away.
In simple terms, user A wangs their SD card into
their device, selects the file they want to send, and
hits ‘fax’. User B then receives a 3D-printed copy of
whatever it is, straight into their home with nobody
having to go to the Post Office. Handy.
Oh, and the Zeus machine is also a pioneering one-
touch 3D-printing photocopier thingy too. Look:
http://youtu.be/apj1IVUkZC0
3D FAXING