Archive for June, 2009

Pet Also Can Get Luxuries

Monday, June 29th, 2009

Pet Also Can Get Luxuries

Whether we admit or not, we have to accept the fact that nowadays pet fashion is so deep into people’s life at a unbelievable rate and number that our way of thinking, feelings or minds are affected and changed. Adding the luxury to the dog’s life, for some people, is the love for the pets, for another, is just a way of showing off. So someone will say bring out a pet become a luxurious thing, for a bone or fish cannot enough to kick away the fashion dogs and cats. The people who love pets very much should think carefully about how much they still have because servicing them is not an easy thing any longer.

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Nowadays, more and more people are willing to believe their pets are the important parts of their life not just dogs or cat. With more and more people willing to spend much money on them, some professors of raising pets appear to supply the top and luxurious service for the dogs at high prices. The luxurious services are including sushi, Acupuncture and hotel room service of 24 hours with any rest in the whole year. Such luxurious entertainments are all for the loved pets. For example, although the cat sushi has been smaller than the real ones, they have all tastes and supply chopsticks for the owners to feed them. Many famous stars’ cats have been feed this way. There are always some pet cocktail parties in America Boston, in which the pets can enjoy the foods while enjoying the music. Different from the human being, they are not drinking the gin or volt, but the chicken broth—another kind of cocktail wine and the sweet vegetable soup.

The Biggest Luxury Consume Country: China

Wednesday, June 24th, 2009

The Biggest Luxury Consume Country: China

The answer is China, Russian, and the Indians who get better off earlier.
China has by far become the third largest market of luxury goods, only second to America and Japan. It is expected that by 2015 the growing middle class and the rich will make China the largest consumer. I have no doubt about this and even hold that China is likely to achieve this goal before that time. Lately, America’s Time Magazine has conducted a survey of the luxury brands best known among Chinese consumers. The result shows that the No. 1 goes to Rolex, followed by Lacoste, Valentino, Chanel and Dior. I wonder how come Louis Vuitton doesn’t show up in the list, how this survey is conducted.

Russian women’s love of beauty is familiar throughout the world, with their good name that they’d rather paint their lips than to appease their hunger. Ten years ago when I worked at a software company, I had a female colleague from Russia. Her salary wasn’t high, and her family wasn’t very well-off, however, her handbags are Chanel, shoes are Ferragamo, always wore gold necklace round her neck and at least three of her fingers wearing rings, which provided a sharp contrast with the American colleagues who wore Eddie Bauer. The last decade Russian people has made great money from selling oil and those money they all hand in to luxury brands. Russian people’s taste differs from that of the Chinese. Russian people don’t like to be low key, they especially like expensive jewelry that can show their status and wealth. In Russia, the five best known luxury brands are Versace, Dior, Chanel, Vyacheslav Zaitsev and Valentin Yudashkin in order. Interestingly, the last two are their native luxury brands.

There are old school aristocrats and rich people in India long ago, but the number is small, and they usually spend their money abroad, which is not amount to anything. In recent years, the call center service blossoming across this country has brought up a large group of young middle class, which is the main consumption force of India’s emerging luxury-goods market. India takes off later than China and Russia, but develops faster, thus called “the next China”. A few years ago when I was handling a consulting project, the other consultants are from our Indian office, all about 25, 26 years old. I happened to carry a Louis Vuitton handbag, and when they knew the piece, they eyes popped in surprise. I guess they must have bought their wives several LV bags over the past few years.

GUCCI & LOUIS VUITTON – FACE TO FACE

Wednesday, June 24th, 2009

GUCCI & LOUIS VUITTON – FACE TO FACE

“In fashion, one day you are in and the next you’re out”, the-model-turn-host Heidi Klum repeats this line in every episode of Project Runway, a hot reality show in America, sounding like reminding the candidates and viewers as well that competition is fierce and cruel in the seemingly amazing fashion world.
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Partrizio Di Marco is well aware of this. Di Marco is CEO of Gucci, the world’s second largest fashion group only second to LVMH. They are always looking for the best opportunity to expand their business in China, therefore, when Heng Wang, CEO of Shanghai’s Golden Eagle International proposed the offer of a storefront shop of 2000 square meters, Di Marco and his team made a decision in three months to open their 28th flag-ship boutique house in China, the scale of which only seconds to their New York flag-ship exclusive store.

Subtly, the China flag-ship store that Di Marco chose is next to Nanjing West Road in Shanghai, across the road on the other side is LV’s first exclusive store in China, and Gucci’s store is larger than LV’s.

Watches posters featuring beauty & beast

Tuesday, June 16th, 2009

Watches posters featuring beauty & beast
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Nowadays, electronic watches and quartz watches are widely available worldwide, also cell phones can tell the time. Therefore watches (luxury watches) in today’s sense are not a mere chronometric tool, they are more like decors, a luxury telling your wealth, social status and taste. Large diamonds on your rings and heavy necklaces maybe able to show off your strong financial strengths, but not your taste, and they are likely to bring you ridicule. Embarrassment never happens to expensive watches. Most top watch brands have long history in the business, and many patented technologies of watch making. By intensive study and you will notice that every brand has their relatively fixed style and product position, different series for varied status and events in order to meet different needs, so the watch you choose stands for your status, whether you are well bred, and your value orientation as well.

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No Tide Of Merging Yet In Luxury Goods Business

Tuesday, June 16th, 2009

No Tide Of Merging Yet In Luxury Goods Business
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Prada’s profit rate this year has dropped by 22%, but there is no clue of any merger and acquisition so far. The problem is the owner is not willing to sell. It is just like what Mr. Rupert of Richemont Group said early last month that any company they would like to acquire was not for sale. Headquartered in Switzerland, this fashion group’s report this month shows that by the end of March this year, their net profit is 1.08 billion Euros, dropped by 31%.

According to Karen Walker, Senior Managing Director of Michel Dyens & Co., an investment banking firm focused on mergers and acquisitions, luxury goods companies, especially those most coveted are mostly family business, who are usually not interested in selling their shares. Besides, as the stock prices are going down on a continuous base, it is not a good timing to sell now.

Private companies like Hermes, louis vuitton and Chanel also state clearly that they don’t want and need, from the point of finance, to sell their shares.

In Italy, about 40% of the companies engaging in luxury goods business are private owned, such as Giorgio Armani. Analysts in Milan hold that whether Prada or Armani, although their business cross multiple aspects, and thus not affected by any industry shakeout, they still have to cut their expenditure.

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Thursday, June 11th, 2009

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A Chinese Young Girls Luxury Consumption Structure

Monday, June 8th, 2009

A Chinese Young Girls Luxury Consumption Structure

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A 27-year old single white collar woman, with a monthly salary of ten thousand yuan, goes to the most expensive beauty salon to have her hair done, has no hesitation when spending thousands of yuan buying skin care products, and wears a handbag costing her one month’s income; while her apartment is narrow and small, the furnishing is simple and crude, and her refrigerator is empty without any food. For her, she believes that the pattern of her consumption is very reasonable. A chic and attractive appearance can give her confidence at work and in social intercourse, ensures her that she hasn’t ill-treated her precious youth. Beiseds, how can she net a rich husband if she doesn’t dress up despite hefty price tags? As for food and dwelling, they aren’t important in the present stage of her life. This is the central idea of the book I read last week, Treasure Hunt: Inside the Mind of New Consumer written by Michael Silverstein, copartner of Boston Consulting Group. It points out from another side that the market of luxury goods no longer centers on rich people only, but every one now.