Quintessentially is leading a trend that curates not just extravagant vacations but extraordinary experiences that yield incredible stories.

1. 2010
Luxury
Trend
Report

2. 2010
Luxury
Trends
Indian
Jones-­‐inspired,
five-­‐figure
vaca;ons,
the
Chinese
economic
boom,
social
network-­‐themed
mar;ni
lounges,
the
perceived
value
of
discounted
pres;ge
brands.
The
2010
luxury
market
is
all
over
the
map
aFer
a
year
of
budget-­‐
;ghtening
and
nervous
nail-­‐bi;ng
amid
the
Great
Recession.
Purveyors
of
all
things
pres;ge
are
learning
lessons
and
re-­‐
strategizing
to
emerge
on-­‐top.
To
sort
through
and
make
sense
of
luxury's
re-­‐emergence
in
2010,
we
iden;fied
key
trends
to
navigate
not
only
today's
market,
but
prepare
for
tomorrow:
The
State
of
Luxury
Today
-­‐-­‐
In
2009,
the
Great
Recession
brought
great
panic
to
the
luxury
industry.
Coach
and
Nordstroms
bit
the
bullet
and
slashed
product
prices,
and
unlike
what
some
experts
predicted,
the
pres;ge
brands
have
retained
their
luster
and
thrived.
Other
high-­‐end
brands
are
hedging
losses
in
America
and
Europe
by
entering
the
booming
Chinese
market.
Boomers
are
entering
re;rement
while
Gen
X
isn't
large
enough
to
support
their
historical
spending.
From
a
global
lens,
the
luxury
market
is
experiencing
tectonic
shiFs
that
show
extraordinary
short-­‐
term
gains,
but
are
profits
sustainable?
The
Golden
Wall
of
China
-­‐-­‐
The
Chinese
market
is
trying
to
find
its
pres;gious
iden;ty
among
established
luxury
brands
in
Europe
and
America.
In
fact,
many
affluent
Chinese
reject
"Made
in
China"
products
in
lieu
of
superior
imported
quality.
"China
is
not
an
easy
market.
Chinese
consumers
are
very
demanding;
they
don't
like
'made
in
China'
products,"
said
Florent
Perrichon,
CEO,
Cerru;.
Much
like
Amish
youth
trying
to
find
their
iden;ty,
Chinese
too
will
undergo
a
cultural
transforma;on
whereby
"Made
in
China"
will
be
less
synonymous
with
;cky
tacky
and
more
with
rich
cultural
heritage,
entrepreneurial
spirit
and
quality.
Luxury's
Love
Affair
with
High-­‐Tech
-­‐-­‐
Robot
housemaids,
electric
cars,
personal
commuter
airplanes
and
all
the
insanely
impossible
kitchen
gadgetry
imaginable.
For
nearly
a
century,
the
World's
Fair
has
illustrated
American's
strong
associa;on
between
luxury
and
technology.
Tech
enhances
our
ability
to
connect
with
the
world
and
how
the
world
connects
with
us.
It
maximizes
our
;me
and
extends
our
pleasure.
It
helps
us
navigate
a
world
flooded
in
informa;on
while
libera;ng
us
from
its
complexi;es.
The
Luxury
of
Once-­‐In-­‐A-­‐LifeBme
Experiences
-­‐-­‐
You
are
assigned
a
mission
in
which
you
will
train
with
former
M16
agents.
Your
journey
will
take
you
around
the
world
where
you
must
complete
challenging
tasks
that
require
both
brains
and
brawn.
Do
you
wish
to
accept?
Many
high
net
worth
individuals
are
asking,
where
do
I
sign
up?
The
seven-­‐figure
Indiana-­‐Jones-­‐inspired
vaca;on
is
one
of
many
thrill-­‐seeking
experiences
coordinated
by
the
members-­‐only
luxury
concierge
service,
Quintessen;ally.
Quintessen;ally
is
leading
a
trend
that
curates
not
just
extravagant
vaca;ons,
but
extraordinary
experiences
that
yield
incredible
stories.
Recession-­‐Proof
Luxury:
Timelessness
&
Enduring
Quality
-­‐-­‐
If
you
had
a
choice
between
buying
one
uber
trendy
dress
this
season
and
another
trendy
dress
next
or
buying
a
;meless
dress
this
season
and
a
;meless
cardigan
next,
which
would
you
choose?
At
year
two,
you
could
either
have
one
dress
or
2
2010
Luxury
Trend
Report

3. 2010
Luxury
Trends
one
dress
and
one
cardigan.
Inves;ng
in
;meless
luxury
items
is
a
way
to
maximize
spending
dollars
in
recessionary
;mes
while
maintaining
an
affluent
lifestyle.
More
and
more,
Gen
X
men
and
Gen
Yers
consider
luxury
an
investment
and
some
pres;ge
brands,
such
as
Hermes,
are
benefi;ng
-­‐-­‐
even
when
;mes
are
lean.
Luxury:
For
What
It's
Worth
-­‐-­‐
What
makes
a
pair
of
Jimmy
Choo
heel
sandals
worth
$1,150?
Or
a
$17,500
price
tag
for
a
night
at
the
Dunton
Hot
Springs?
In
essence,
what
is
luxury
worth?
Everyone
perceives
products
and
service
value
differently.
You've
likely
been
in
Gucci
or
Hermes
and
said,
really?
A
shoe-­‐shaped
Gucci
key
ring
is
$170.
Really?
For
some,
it's
worth
it.
As
everyone
derives
value
differently,
there
are
three
main
criteria
that
help
us
decide
whether
a
luxury
product
or
service
is
worth
it.
Personal
Renewal
with
Purpose
-­‐-­‐
All
luxury
fulfills
an
emo;onal
need.
OFen
;mes,
that
need
is
social
relevancy
and
status
among
peers.
Think
about
what
a
Louis
Vuiion
bag
says
about
a
person:
affluence
and
they
should
be
recognized
for
it.
There
is
a
rising
trend
in
luxury
that
stretches
beyond
superficial,
Louis
Vuiion
and
D&G
status
symbols,
and
speaks
to
rejuvena;on,
personal
energy
and
sustainability.
No,
millionaires
are
not
holding
hands
around
a
camp
fire,
singing
Koombaya.
This
emerging
class
of
high
net
worth
individuals
seek
to
preserve
themselves
and
the
world
around
them.
Two
similar,
yet
different,
brands
capturing
this
rising
trend
are
Terrain
and
Lululemon
Athle;ca.
Passion
Immersion
Drives
Niche
Luxury
-­‐-­‐
A
recent
study
of
luxury
handbags,
featured
in
Psychology
Today,
suggests
once
the
price
exceeds
$300,
the
logo
decreases
in
size.
But
why
pay
more
for
a
brand
without
the
recogni;on?
Sterling
Lanier,
President
of
the
market
research
consultancy
Chaier,
performed
in-­‐home
case
studies
of
affluent
Gen
Yers
to
provide
insight.
In
one
of
Sterling’s
audience
tes;monials,
a
Gen
Yer
said
he
purchases
shirts
from
a
Sconsh
designer
with
around
three
small
stores
in
Europe.
With
only
a
small
colored
tag
to
iden;fy
the
designer,
he
gets
gra;fica;on
seeing
others
wear
the
Sconsh
brand.
3
2010
Luxury
Trend
Report

4. In
2009,
the
Great
Recession
brought
great
panic
to
the
luxury
industry.
Lower-­‐rung
affluents
;ghtened
their
budgets,
slowed
luxury
spending,
causing
many
pres;ge
brands
to
consider
the
sinful
thought
of:
discoun;ng.
Coach
and
Nordstroms
bit
the
bullet
and
slashed
product
prices,
and
unlike
what
some
experts
predicted,
the
pres;ge
brands
have
retained
their
luster
and
thrived.
Other
high-­‐end
brands
are
hedging
losses
in
America
and
Europe
by
entering
the
booming
Chinese
market.
Boomers
are
entering
re;rement
while
Gen
X
isn't
large
enough
to
support
their
historical
spending.
From
a
global
lens,
the
luxury
market
is
experiencing
tectonic
shiFs
that
show
extraordinary
short-­‐term
gains,
but
are
profits
sustainable?
Nearly
across
the
board,
the
luxury
market
has
rebounded
aFer
a
recessionary
slump.
Global
luxury
sales
rose
15
percent
in
the
first
quarter
of
2010,
according
to
U.S.
consultants
Bain
&
Co.
Nearly
all
categories
are
in
the
black.
e-­‐
Commerce,
luxury,
jewelry
and
restaurants
saw
May
sales
rise
13.7
percent,
9.7
percent,
6.4
percent
and
2.8
percent,
respec;vely,
reports
Reuters.
Bricks
and
mortar
retailers
are
also
up.
Saks
countered
last
year's
loss
with
record
profits
in
the
past
quarter,
with
sales
up
6.1
percent
-­‐-­‐
and
an
astounding
395
percent
stock
increase.
Nordstrom
shares
skyrocketed
246
percent
over
last
year's
boiom.
Tiffany
&
Co's
global
strategy
benefited
them
with
interna;onal
sales
up
17
percent
in
the
most
recent
quarter
and
profit
up
nearly
fourfold.
How
have
pres;ge
brands
made
such
a
comeback?
If
the
recession
provided
any
key
lessons,
it's
the
value
of
diversifica;on.
Those
pres;ge
brands
with
all
of
their
eggs
in
one,
American
basket,
suffered
when
the
market
boiomed
in
2009.
Milton
Pedraza,
CEO
of
the
Luxury
Ins;tute,
termed
the
strategy
as
a
“self-­‐
imposed
limita;on.”
He
added
that
"overseas
markets
like
China
could
be
key
growth
engines
for
luxury
players
and
also
sees
Japan
as
a
'cash
cow'
for
those
brands
who
can
manage
costs
well."
Indeed,
Chinese
consumers
account
for
nearly
25
percent
of
global
luxury
sales,
followed
by
Americans,
Europeans
and
Japanese,
each
taking
around
20
percent
of
pie.
Many
large-­‐sized
luxury
brands
see
the
wri;ng
on
the
wall.
Taking
Pedraza's
advice,
historical
luxury
brands,
such
as
Hermes
and
LVMH,
have
bumped
up
profits
by
entering
the
Asia
market,
writes
Rob
Lever
of
AFP.
"Shiseido,
Japan's
largest
cosme;cs
firm,
expects
sales
of
its
high-­‐end
cosme;cs
to
grow
up
to
20
per
cent
a
year
in
China
over
the
near
term,
making
it
a
key
pillar
of
its
global
expansion
plans,"
reports
the
Economic
Times.
For
pres;ge
brands,
all
signs
are
poin;ng
to
Asia
right
now,
but
what
should
we
expect
for
the
future?
Global
luxury
goods
industry
sales
are
expected
to
grow
4
percent
in
2010
to
$195
billion
dollars
aFer
8
percent
decline
in
2009,
according
to
the
consul;ng
firm
Bain
&
Company.
Five
to
ten
years
out,
Gen
X
will
pick
up
the
torch
and
lead
luxury
spending.
As
Baby
Boomers
conserve
spending
in
re;rement,
Gen
X
will
be
the
primary
target
for
pres;ge
brands.
Some
experts
predict
Gen
X
cannot
support
Baby
Boomer's
historical
spending.
Gen
X
is
simply
not
a
big
enough
group
to
pick
up
the
slack,
writes
Rob
Lever
of
AFP.
Lever
suggests
Gen
Y
will
fill-­‐
in
the
gaps
leF
by
Gen
X.
"The
luxury
market
is
unlikely
to
regain
its
luster
un;l
around
2018
to
2020,
when
the
Millennials
born
aFer
1997
start
their
spending
sprees,"
he
writes.
If
this
genera;onal
shiF
occurs
as
Lever
predicts,
the
short-­‐term
profits
in
2010
will
serve
as
only
a
slight
up;ck
in
struggling
American
market.
Luxury
brands
will
have
to
shiF
focus
slightly
away
from
the
American
market
over
the
next
decade
to
sustain
growth.
The
recession
could
have
been
a
wake-­‐
up
call
for
luxury
brands
focused
en;rely
on
Western
markets,
and
considering
the
imposing
genera;onal
shiF,
they
should
look
East
for
answers.
The
State
of
Luxury
Today
4
2010
Luxury
Trend
Report

5. Devil's
Playground
is
a
documentary
that
captures
the
transforma;ve
period
in
a
young
Amish
person's
life,
when
they
must
decide
whether
to
stay
among
the
Amish
for
the
rest
of
their
lives,
or
join
the
"English."
This
period
is
called
Rumspringa
-­‐-­‐
the
Pennsylvania
Dutch
word
for
"running
around."
The
film
showcases
several
Amish
young
adults
going
through
Rumspringa,
who
drink,
smoke
and
even
get
hooked
on
meth
because
they
think
it's
what
the
"English"
do.
Their
"English"
reference
point
is
derived
from
stories
and
likely
tall
tales,
therefore,
some
Amish
destroy
their
lives
to
experience
the
exaggerated
"English"
perspec;ve.
China's
nouveau
riche
are
experiencing
a
Rumspringa
of
their
own,
but
careful
to
not
swing
too
far.
The
Chinese
market
is
trying
to
find
its
pres;gious
iden;ty
among
established
luxury
brands
in
Europe
and
America.
In
fact,
many
affluent
Chinese
reject
"Made
in
China"
products
in
lieu
of
superior
imported
quality.
"China
is
not
an
easy
market.
Chinese
consumers
are
very
demanding;
they
don't
like
'made
in
China'
products,"
said
Florent
Perrichon,
CEO,
Cerru;.
Much
like
Amish
youth
trying
to
find
their
iden;ty,
Chinese
too
will
undergo
a
cultural
transforma;on
whereby
"Made
in
China"
will
be
less
synonymous
with
;cky
tacky
and
more
with
rich
cultural
heritage,
entrepreneurial
spirit
and
quality.
China's
Affluence
is
a
Brightspot
for
Global
Luxury
-­‐-­‐
Western
pres;ge
brands
are
not
unhappy
China
is
impor;ng
luxury.
Chinese
consumers
account
for
nearly
25
percent
of
global
luxury
sales,
followed
by
Americans,
Europeans
and
Japanese,
each
taking
around
20
percent
of
pie.
In
fact,
China
has
become
the
fulcrum
of
the
global
luxury
industry.
"The
euro
zone
is
a
sizable
market,
but
today
the
growth
reserve
is
in
the
emerging
countries,
and
par;cularly
in
China,
whose
demand
is
pulling
the
en;re
sector,"
said
Isabelle
Ardon,
head
of
Paris-­‐based
SG
Ges;on's
luxury
fund.
Even
while
the
Euro
market
is
suffering
amid
the
current
financial
crisis,
pres;ge
brands
are
finding
security
in
China's
growing
affluence.
Western
PresBge
Brands
Flock
to
China
-­‐-­‐
"For
the
Chinese
consumer,
luxury
is
synonymous
with
Western
heritage.
Today
there
are
no
big
Chinese
luxury
brands,
so
there
are
no
compe;tors,"
Ardon
said.
Western
brands,
Car;er,
Louis
Vuiion,
Hermès,
Tiffany
&
Co
or
Gucci,
have
established
a
foothold
in
China
through
years
of
brand
building
in
the
country,
reports
the
Wall
Street
Journal.
Indeed,
Tiffany
&
Co
reported
that
sales
at
its
Asian
stores
opened
last
year
(excluding
those
in
Japan)
had
risen
by
21
percent
during
last
quarter,
with
11
stores
in
China.
Jaguar
and
Land
Rover
are
opening
a
new
plant
in
Nanchang,
East
China
soon.
"Next
year,
Land
Rover's
sales
volume
in
China
will
surpass
Britain
as
the
world's
second,"
said
Scoi
Dicken,
the
general
manager
of
Land
Rover
China.
There
is
SBll
Room
for
"Made
in
China"
Luxury
-­‐-­‐
Alongside
Jaguar,
Land
Rover
and
Car;er
of
Western
pres;ge,
there
s;ll
resides
an
opportunity
for
"Made
in
China"
luxury.
"China's
high-­‐end
market
is
highly
fragmented,
with
no
single
brand
domina;ng
individual
product
categories,"
writes
the
WSJ.
"This
is
star;ng
to
change:
In
each
luxury-­‐goods
category,
five
brands
account
for
around
50%
of
the
market,
indica;ng
early
signs
of
concentra;on."
Shanghai
Tang
is
an
authen;c
emerging
pres;ge
fashion
house
that
appeals
to
Chinese.
The
brand
blends
China's
subtle,
delicate
cultural
heritage
with
Western
flare.
In
fact,
Fast
Company
dubbed
Shanghai
Tang
"China's
first
global,
upscale
brand."
As
China's
nouveau
riche
seile
into
their
new
status
as
purveyors
of
luxury,
expect
the
Shanghai
Tang's
-­‐-­‐
a
confluence
of
China's
rich
cultural
heritage,
entrepreneurial
spirit
and
vision
-­‐-­‐
to
make
in-­‐roads
into
the
country's
blossoming
luxury
market.
Authen;c
Chinese
heritage,
as
Tang
illustrates,
cannot
be
imported
and
presents
and
opportunity
for
"Made
in
China"
luxury
to
flourish.
AFer
all,
heritage
is
a
cornerstone
of
luxury
and
China
is
rich
with
it.
The
Golden
Wall
of
China
5
2010
Luxury
Trend
Report

6. Robot
housemaids,
electric
cars,
personal
commuter
airplanes
and
all
the
insanely
impossible
kitchen
gadgetry
imaginable.
For
nearly
a
century,
the
World's
Fair
has
illustrated
American's
strong
associa;on
between
luxury
and
technology.
Tech
enhances
our
ability
to
connect
with
the
world
and
how
the
world
connects
with
us.
It
maximizes
our
;me
and
extends
our
pleasure.
It
helps
us
navigate
a
world
flooded
in
informa;on
while
libera;ng
us
from
its
complexi;es.
The
intersec;on
of
technology
and
luxury
is
more
apparent
and
pervasive
in
the
luxury
market
today
than
ever
before.
From
social
networking
restaurants,
to
vehicle
office
management
soFware,
to
accessorizing
luxury
products,
technology
is
the
height
of
luxury.
Today's
tech
speaks
to
several
pillars
of
luxury:
exclusivity,
badge
of
importance
and
an
immersive
experience.
In-­‐the-­‐Know
Luxury
Tech
-­‐-­‐
MiWorld
leverages
a
main
tenant
of
luxury:
exclusivity.
The
tech-­‐savvy
Jahannesburg
restaurant
taps
into
affluent
Gen
Yers
and
Gen
Xers
lust
for
exclusivity
and
techno-­‐
gadgetry.
To
par;cipate
in
MiWorld,
patrons
must
receive
an
invita;on
and
secret
code
to
register
online.
The
in-­‐the-­‐know
customers
can
visit
MiWorld's
modern
cocktail
bar,
MiBar
Mar;ni
or
the
sophis;cated
cocktail,
champagne
and
wine
bar,
MiLounge
Mar;ni.
When
patrons
enter
the
door,
they
must
log
in
-­‐-­‐
much
like
Facebook
or
FourSquare.
Once
inside,
users
can
play
with
interac;ve,
touchscreen
MiTables,
where
they
can
chat
with
other
tables,
sign
into
Facebook,
view
the
menu
and
access
exclusive
content
and
offers.
Complete
Tech
Immersion
-­‐-­‐
Car
phones
were
the
height
of
luxury
at
the
dawn
of
the
mobile
phone
era.
High-­‐power
CEO's
tooling
around
in
company
limos
epitomized
luxury
nearly
a
two
decades
ago.
Hartman's
System-­‐On-­‐a-­‐Chip
(SOC)
is
ushering
auto
tech
into
a
new
age
of
connec;vity.
Hartman
is
developing
a
premium
automo;ve
infotainment
system
for
entry-­‐level
luxury
vehicles.
SOC
enables
customers
to
integrate
smartphone
devices
(iPhone,
Blackberry,
Android)
to
deliver
mobile
office
features
within
their
vehicle.
That
means
e-­‐mail,
SMS,
tex;ng
and
calendar
func;ons
all
within
arms
reach.
That's
just
the
beginning...
SOC
delivers
3-­‐D
route
graphics,
real-­‐
;me
traffic
updates,
latest
map
info,
construc;on
zone
no;fica;ons,
speed
limits,
etc.
Though
there
are
arguably
many
hazards
with
such
a
system,
SOC
epitomizes
auto
luxury.
Tech
Badge
of
Luxury
-­‐-­‐
“Although
Apple
did
not
set
out
to
be
a
luxury
brand,
it
exhibits
most
of
the
quali;es
that
luxury
brands
should
strive
for
in
the
21st
century,”
says
Milton
Pedraza,
Luxury
Ins;tute
CEO.
In
its
quest
for
the
most
beau;ful,
awe-­‐inspiring,
user-­‐friendly
device,
Apple
created
a
leading
luxury
device.
The
tech
company
“delivers
fabulous
product
design,
unbeatable
func;onality,
and
a
powerful
in-­‐store
experience
to
consumers
of
all
ages
that
many
luxury
brands
lack."
As
with
many
pres;ge
brands,
accessories
makes
the
product
pop
and
serves
as
a
badge
of
your
personality.
iSobre
knows
this
more
than
anyone.
iSobre's
offers
an
iPad
made
of
100
per
cent
leather,
with
double
s;tching
all
around
with
a
turned-­‐edge
finish
and
two
blue
leather
central
buions.
The
iSobre's
Bumble
Bee
iPad
case
tells
the
world
not
only
do
you
love
sexy
tech,
but
you
know
how
to
dress
it
up.
American's
associa;on
between
all
things
tech
and
luxury
has
accelerated
at
an
astonishing
rate
since
the
1950s
World's
Fair.
In
fact,
even
many
non-­‐affluent
individuals
splurge
on
a
$300
smartphone
with
a
$100
monthly
plan.
A
smartphone,
tablet,
high-­‐tech
soFware
system
for
your
car
or
an
invite
into
a
members-­‐only
cocktail
lounge
are
ways
individuals
-­‐-­‐
non-­‐affluent
and
high
net
worth
individuals
alike
-­‐-­‐
display
status.
Much
like
a
robot
housemaid
in
the
1950s
World's
Fair.
Luxury's
Love
Affair
with
High-­‐Tech
6
2010
Luxury
Trend
Report

7. You
are
assigned
a
mission
in
which
you
will
train
with
former
M16
agents.
Your
journey
will
take
you
around
the
world
where
you
must
complete
challenging
tasks
that
require
both
brains
and
brawn.
Do
you
wish
to
accept?
Many
high
net
worth
individuals
are
asking,
where
do
I
sign
up?
The
seven-­‐figure
Indiana-­‐Jones-­‐inspired
vaca;on
is
one
of
many
thrill-­‐seeking
experiences
coordinated
by
the
members-­‐only
luxury
concierge
service,
Quintessen;ally.
Quintessen;ally
is
leading
a
trend
that
curates
not
just
extravagant
vaca;ons,
but
extraordinary
experiences
that
yield
incredible
stories.
"These
days
people
are
looking
for
those
once-­‐in-­‐
a-­‐life;me
moments,"
says
Quintessen;ally's
founder,
Aaron
Simpson
to
the
WSJ.
"Genng
a
peek
into
a
closed-­‐off
sector
of
the
pyramids
or
cruising
through
Europe
in
a
Bentley
can
be
a
very
different
experience
than
your
average
vaca;on."
Indeed,
extreme
luxurious
vaca;ons
are
less
about
pampering
and
island
getaways
and
more
about
access
to
exclusive
experiences.
“Our
luxury
travelers
are
fascinated
by
the
history
in
Israel
and
nearby
Turkey
and
really
want
to
have
in-­‐depth
cultural
experiences,”
says
Ashley
Isaacs
Ganz,
founder
of
Ar;sans
of
Leisure
Travel
to
the
Luxury
Ins;tute.
Ganz
explains,
his
high
net-­‐worth
clients
seek
thrilling,
unexploited
experiences,
such
as
ren;ng
a
rehabbed
ghost
town
in
the
Colorado
wilderness
or
pay
$17,500
a
night
for
the
Dunton
Hot
Springs.
Ar;sans
of
Leisure
Travel
and
Quintessen;ally
understand
the
power
of
once-­‐in-­‐a-­‐life;me
experiences
and
re-­‐experiencing
them
through
stories.
More
unique
stories
you
have,
the
more
interes;ng
you
become.
For
instance,
who
would
have
beier
life-­‐stories:
dare-­‐devil
billionaire
Richard
Branson
or
tech
tycoon
Bill
Gates?
Sure,
Gates
could
wax
poe;c
about
soFware
systems,
but
Branson
could
regale
you
with
stories
of
hot
air
balloon
races
and
sky
diving.
More
affluent
individuals
are
searching
for
Branson-­‐esque
adventure
that
pair
risk
(exo;c
cultural
explora;ons)
with
reward
(fascina;ng
stories)
to
yield
incredible
experiences.
It's
about
finding
your
passion
-­‐-­‐
whether
it's
an
Indiana
Jones
adventure
or
archeologist
-­‐-­‐
and
realizing
the
life
you
could
have
had
through
exclusive
experiences.
It's
not
enough
to
put
your
mind
on
auto
pilot,
if
you
dreamed
of
flying
in
an
F-­‐47,
you
are
the
pilot.
And
concierge
services,
such
as
Quintessen;ally
and
Leisure
Travel,
are
making
that
possible.
The
Luxury
of
Once-­‐In-­‐A-­‐Life;me
Experiences
Image by Rob Owen-Wahl from Stock.Xchng
7
2010
Luxury
Trend
Report

8. If
you
had
a
choice
between
buying
one
uber
trendy
dress
this
season
and
another
trendy
dress
next
or
buying
a
;meless
dress
this
season
and
a
;meless
cardigan
next,
which
would
you
choose?
At
year
two,
you
could
either
have
one
dress
or
one
dress
and
one
cardigan.
Inves;ng
in
;meless
luxury
items
is
a
way
to
maximize
spending
dollars
in
recessionary
;mes
while
maintaining
an
affluent
lifestyle.
More
and
more,
Gen
X
men
and
Gen
Yers
consider
luxury
an
investment
and
some
pres;ge
brands,
such
as
Hermes,
are
benefi;ng
-­‐-­‐
even
when
;mes
are
lean.
The
overall
luxury
market
fell
during
this
recessionary
dip.
It
dropped
10
percent
in
the
U.S.
and
8
percent
worldwide
in
2009.
Trendy
fashion
houses
such
as
Chris;an
Lacroix
went
belly-­‐up,
meanwhile
Hermès
managed
to
increase
sales
by
8.5
percent,
including
an
11
percent
bump
in
the
final
quarter
and
an
astonishing
20
percent
gain
in
the
Americas.
“Hermès
isn’t
about
trendy,”
said
Bob
Chavez,
the
CEO
of
Hermès’s
American
opera;on
to
the
Luxury
Ins;tute.
“It
isn’t
even
a
fashion
house.
We
are
a
house
of
craFsmanship.
We
are
commiied
to
making
products
that
have
an
enduring
quality
and
are
very
versa;le.”
Heritage,
classics
and
enduring
quality,
as
found
in
Hermes
and
Louis
Vuiion
products,
are
powerful
selling
points
to
during
recessionary
slumps
-­‐-­‐
par;cularly
to
Gen
X
men
and
Gen
Yers.
"I
believe
the
American
male
is
largely
uneducable.
We
need
to
focus
on
the
segment
of
males
that
have
real
discerning
taste,
but
I
can
also
say
that
even
the
undiscerning
American
male
is
a
smart
consumer.
That
person
is
looking
for
a
product
that
is
durable,
that
is
classic,
that
can
stand
the
test
of
;me,"
says
Lew
Frankfort,
Chairman
and
CEO
of
Coach.
In
general,
classic
and
;meless
value
makes
sense
when
considering
men's
fashion
versus
women's
fashion.
Women's
fashion
dras;cally
ebbs
and
flows
with
the
seasons
whereas
men's
fashion
receives
subtle
adjustments
on
exis;ng
designs.
For
instance,
slightly
v-­‐necked
shirts
or
a
small
whale
paiern
or
a
royal
blue
instead
of
a
faded
blue
or
a
European
cut
versus
relaxed
might
be
en
vogue
for
several
seasons.
For
the
most
part,
men's
fashion
remains
constant
and
therefore
inves;ng
in
one
product
could
last
many
more
seasons
than
women's
uber-­‐trendy
drop-­‐crotch
trousers
-­‐-­‐
reminiscent
of
Hammer-­‐;me.
Gucci
drop-­‐trousers
might
pique
the
interests
of
some
young
fashionistas,
but
for
the
most
part,
Gen
Yers
view
luxury
as
an
investment
-­‐-­‐
and
as
such,
have
a
discerning
eye
for
the
quality.
Unlike
its
genera;onal
counterparts,
Gen
Y
is
less
concerned
with
heritage
than
excep;onal
quality.
Heritage
brands
might
find
it
difficult
to
market
its
spot
in
history
to
turn
on
Gen
Y.
Instead,
luxury
brands
need
to
dial-­‐up
the
longevity,
both
in
quality
and
style,
of
its
products
to
make
their
brand
a
long-­‐term
investment.
Many
high
net
worth
individuals
are
savvy
shoppers
that
buy
less
on
impulse
and
think
about
purchases
in
a
calculated,
well-­‐thought-­‐out
manner.
As
we've
seen
in
2009,
trendy
fashion
houses
are
the
first
out
the
door
due
to
their
ephemeral
designs
while
enduring
quality
pres;ge
brands,
such
as
Hermes
and
Louis
Vuiion,
thrive.
Although
the
recovery
is
in
the
purview,
high
net
worth
individuals
are
s;ll
wary
of
spending
superfluously
but
interested
in
inves;ng
in
luxury.
Recession-­‐Proof
Luxury:
Timelessness
&
Enduring
Quality
Image by homero chapa from Stock.Xchng
8
2010
Luxury
Trend
Report

9. What
makes
a
pair
of
Jimmy
Choo
heel
sandals
worth
$1,150?
Or
a
$17,500
price
tag
for
a
night
at
the
Dunton
Hot
Springs?
In
essence,
what
is
luxury
worth?
Everyone
perceives
products
and
service
value
differently.
You've
likely
been
in
Gucci
or
Hermes
and
said,
really?
A
shoe-­‐shaped
Gucci
key
ring
is
$170.
Really?
For
some,
it's
worth
it.
"We
see
consumers
as
the
ul;mate
experts
on
brand
pres;ge
and
this
year
they
are
vo;ng
on
the
en;re
perceived
price/value
equa;on
of
the
brand
as
well
as
pres;ge,”
said
Milton
Pedraza,
CEO
of
the
Luxury
Ins;tute.
Brand,
quality,
rarity
all
play
a
role
in
how
we
valuate
pres;ge
products
and
experiences.
As
everyone
derives
value
differently,
there
are
three
main
criteria
that
help
us
decide
whether
a
luxury
product
or
service
is
worth
it:
Exclusive
Value
-­‐
Uniqueness
By
economic
standards,
value
is
derived
from
supply,
demand
and
barrier
to
entry.
Short
supply,
high
demand
and
high
barrier
to
entry
drives
the
luxury
market.
Accordingly,
only
a
select
few
high
net
worth
individuals
can
afford
to
buy
a
$1.42
million
Lamborghini
Reventon
or
even
a
$170
Gucci
key
ring.
In
fact,
only
20
individuals
own
the
Reventon,
as
they
are
so
rare.
Uniqueness
not
only
applies
to
products,
but
experiences
as
well.
Quintessen;ally
and
Ar;sans
of
Leisure
Travel
design
custom
vaca;on
packages
ranging
from
Indiana
Jones-­‐inspired
adventure
or
an
immersion
in
Turkey
and
Israeli
cultures.
For
those
high
net
worth
individuals
seeking
exclusive
value,
very
short
supply
weighs
heavier
than
quality.
Enduring
Value
-­‐
ArBsan
CraVsmanship
The
economic
recession
has
the
luxury
industry
returning
to
its
core:
enduring
quality
[LINK
TO
TIMELESSNESS
POST].
Hermes
and
Louis
Vuiion
have
flourished
amid
harsh
economic
storms,
while
other,
trendier
fashion
houses
such
as
Chris;an
Lacroix
have
gone
belly-­‐up.
Hermès
managed
to
increase
sales
by
8.5
percent,
including
an
11
percent
bump
in
the
final
quarter
and
an
astonishing
20
percent
gain
in
the
Americas.
In
fact,
Louis
Vuiion
held
an
event
called
“The
Art
of
CraFsmanship,”
to
educate
young
designers
on
the
importance
of
old-­‐
fashioned
values
such
as
ar;sanship
and
the
mastery
of
tradi;onal
skills
at
New
York
City's
Fashion
Week.
Price
Value
-­‐
Deal-­‐seekers
There
is
always
a
risk
to
integrity
whenever
a
pres;ge
brand
discounts,
says
Milton
Pedraza,
CEO
of
the
Luxury
Ins;tute.
A
discount
suggests
the
original
perceived
value
was
too
high
and
essen;ally,
you
were
genng
ripped
off.
Despite
Pedraza's
foreboding,
Guilt
Groupe
has
grown
by
leaps
and
bounds
by
offering
daily
flash
sales
to
its
"exclusive"
2
million
invite-­‐only
members.
Gilt
expects
to
pull
in
$500
million
in
revenue
in
2010
and
in
2009,
just
two
years
aFer
its
launch,
it
posted
revenues
of
$170
million.
To
counter
Pedraza's
point,
even
a
10
percent
discount
on
$1,150
Jimmy
Choo
shoes
($1,035)
is
s;ll
not
accessible
for
most.
To
make
your
luxury
product
or
service
valuable,
you
must
first
start
with
those
consumers
passionate
about
your
category.
For
instance,
targe;ng
the
famous,
stylis;cally
challenged
Warren
Buffet
to
don
a
new
Gucci
suit
is
worthless,
as
Buffet
finds
liile
value
in
fashion.
But
marke;ng
an
Indiana
Jones-­‐inspired
vaca;on
to
thrill-­‐seeking
high
net
worth
individuals
like
Richard
Branson
is
smart.
To
obtain
a
high
perceived
value
in
your
customers
eye,
it's
about
finding
the
right
customers
and
accentua;ng
your
products
to
appeal
to
their
passion
points.
Luxury:
For
What
It's
Worth
Image by Svilen Milev from Stock.Xchng
9
2010
Luxury
Trend
Report

10. All
luxury
fulfills
an
emo;onal
need.
OFen
;mes,
that
need
is
social
relevancy
and
status
among
peers.
Think
about
what
a
Louis
Vuiion
bag
says
about
a
person:
affluence
and
they
should
be
recognized
for
it.
There
is
a
rising
trend
in
luxury
that
stretches
beyond
superficial,
Louis
Vuiion
and
D&G
status
symbols,
and
speaks
to
rejuvena;on,
personal
energy
and
sustainability.
No,
millionaires
are
not
holding
hands
around
a
camp
fire,
singing
Koombaya.
This
emerging
class
of
high
net
worth
individuals
seek
to
preserve
themselves
and
the
world
around
them.
Two
similar,
yet
different,
brands
capturing
this
rising
trend
are
Terrain
and
Lululemon
Athle;ca.
Terrain,
an
outdoor
home
and
garden
store
owned
by
Urban
Ou|iiers,
is
a
calming
retreat
into
nature.
Chairs,
tables,
and
pots
look
as
if
it
grew
naturally
in
the
store.
Every
piece
of
furniture
seems
ar|ully
hand-­‐selected
from
yard
sales
and
foreign
ruins.
That's
not
to
say
you
feel
like
you're
in
a
junk
yard.
Terrain
taps
into
a
central
element
of
luxury:
rarity.
The
outdoor
home
and
garden
store
is
about
30
percent
re-­‐used
products,
but
the
company
carefully
selects
objects
that
embody
sophis;cated,
organic
style.
Each
object
feels
natural,
sustainable
and
hand-­‐selected
just
for
your
home.
Lululemon
Athle;ca
takes
a
different
approach
to
revitalizing
personal
energy.
Where
Terrain
seeks
to
rejuvenate
through
a
natural
environment,
Lululemon
takes
a
more
ac;ve
approach.
The
luxury
healthy
living
retail
site
promotes
physical
renewal
through
yoga,
Pilates
and
other
forms
of
exercise.
Its
exclusive
community
is
populated
by
former
Olympians
and
athletes
that
inspire
others
to
live
strong.
These
brand
ambassadors
promote
their
unique
healthy
lifestyle
through
images,
free
demonstra;ons
and
each
month
members
are
given
a
challenge.
Terrain
and
Lululemon
represent
an
emerging
segment
in
the
luxury
category.
Renewing
personal
energy
through
premium
products,
such
as
a
palace
door
ruin
from
Terrain
or
high-­‐end
exercise
gear
at
Lululemon,
is
only
half
the
picture.
Both
emerging
luxury
brands
offer
an
holis;c
branded
experience
either
through
a
relaxing
in-­‐
store
environment
or
empowered
online
community.
Terrain
and
Lululemon
are
making
luxury
less
superficial
and
more
sustainable
to
both
the
environment
(recycled
products
at
Terrain)
and
individual
energy
(yoga
and
pilates
at
Lululemon).
Personal
Renewal
with
Purpose
10
2010
Luxury
Trend
Report
Image vide Terrain
Image vide Terrain

11. A
recent
study
of
luxury
handbags,
featured
in
Psychology
Today,
suggests
once
the
price
exceeds
$300,
the
logo
decreases
in
size.
But
why
pay
more
for
a
brand
without
the
recogni;on?
Sterling
Lanier,
President
of
the
market
research
consultancy
Chaier,
performed
in-­‐home
case
studies
of
affluent
Gen
Yers
to
provide
insight.
In
one
of
Sterling’s
audience
tes;monials,
a
Gen
Yer
said
he
purchases
shirts
from
a
Sconsh
designer
with
around
three
small
stores
in
Europe.
With
only
a
small
colored
tag
to
iden;fy
the
designer,
he
gets
gra;fica;on
seeing
others
wear
the
Sconsh
brand.
As
consumers,
we
iden;fy
personali;es
by
the
brands
and
products
we
purchase.
And
as
Sterling's
tes;monial
illustrates,
we
strive
to
emerge
ourselves
in
brands
that
help
build
our
iden;;es.
Passion
Immersion
in
Products
For
many
high
net
worth
individuals,
luxury
is
about
finding
your
passion,
immersing
yourself
in
its
niche
culture
and
being
in-­‐the-­‐know.
Brands
are
picking
up
on
this
trend,
says
said
Luxury
Ins;tute
Chief
Execu;ve
Milton
Pedraza:
"Brands
that
are
seen
as
experts
in
a
few
categories
tend
to
manage
those
por|olios
very
well.
Sort
of
punng
one
egg
in
a
basket
and
then
taking
good
care
of
it."
Indeed,
Sterling's
research
suggests
two
pleasure
points
with
niche
brands.
Using
Sterling's
example,
the
affluent
Gen
Yers
is:
1)
passionate
about
Sconsh
fashion
and
2)
he
no;ced
people
like
him,
that
were
in-­‐the-­‐know,
wearing
the
same
designer.
Passion
Immersion
in
Services
Luxury
concierge
services
also
help
high
net
worth
individuals.
Instead
of
providing
rare
fashions,
they
cater
quite
the
opposite
service
by
offering
personalized,
once-­‐in-­‐a-­‐life;me
experiences.
These
experiences
are
typically
derived
from
individual
passion
points,
such
as
quest
for
adventure,
or
"if
I
wasn't
a
____
I
would
have
been
a
______."
For
instance,
if
you
wanted
to
be
an
archaeologist,
Ar;sans
of
Leisure
Travel
offers
a
Turkey
and
Israel
cultural
vaca;on.
Or,
if
you
would
have
been
a
dare-­‐devil,
Quintessen;ally
offers
an
Indiana-­‐Jone-­‐inspired
adventure.
Passion
Immersion
in
CommuniBes
Passionate
niche
communi;es
rally
around
purchasing
decisions,
as
in
Sterling's
illustra;ve
example,
but
also
connect
like-­‐minded
individuals
in
a
meaningful
way.
Lululemon
Athle;ca
excels
at
the
laier.
Lululemon
is
a
high-­‐end
athle;c
apparel
company
that
empowers
its
community
to
interact
and
engage
with
others
-­‐-­‐
using
the
brand
as
a
conduit.
The
athle;c
apparel
company
enlists
elite
ambassadors
-­‐-­‐
comprised
of
award-­‐winning
athletes,
such
as
Olympians
-­‐-­‐
who
wear
the
brand.
The
second
;er
of
the
community
is
made
up
of
Lululemon-­‐veied
athletes
that
embody
the
brand's
healthful
living
philosophy.
When
we
look
at
where
people
allow
themselves
to
splurge,
it's
in
a
space
high
net
worth
individuals
are
passionate
about.
Whether
they
are
passionate
about
niche
designer
brands
or
once-­‐in-­‐a-­‐life;me
adventures
or
being
a
part
of
an
exclusive
athle;c
club,
they
spend
money
with
the
heart.
Products
and
services
help
consumers
feel
comfort
in
actualizing
their
dreams
of
being
in-­‐the-­‐know,
exploring
the
world
and
being
the
best
of
the
best.
Niche
luxury
offers
a
chance
for
high
net
worth
individuals
to
be
themselves,
in
the
most
fantas;c
way.
Passion
Immersion
Drives
Niche
Luxury
11
2010
Luxury
Trend
Report
Image via Lululemon.com

12. About the Authors

13. Sparxoo builds sustainable relationships while delivering meaningful impact on projects with a purpose.
We are expanding our network of socially minded leaders and hope to become a leader in this category.
We create purposeful impact for the long-run
Sparxoo is pioneering the next generation of business that is founded in the principles of:
• Social entrepreneurship
• Real responsibility
• Creative community
• Courageous leadership
Branding
Business
Development
Digital
Development
We fuse left-and-right brain thinking
in:
We build meaningful relationships
13
2010
Luxury
Trend
Report

14. 4400 West Spruce Street, #333
Tampa, FL 33607
646-345-1800
www.Sparxoo.com
David Capece
CEO
David@Sparxoo.com
Katherine Parsons
Senior Strategist
Katherine@Sparxoo.com
Ethan Lyon
Senior Writer
Ethan@Sparxoo.com
14
2010
Luxury
Trend
Report