Luxury E-Tailer Mytheresa Expands In China
German luxury e-tailer Mytheresa is planning to grow its business in China. While the competition in luxury e-commerce is pronounced with Alibaba and Douyin being prominent players, Mytheresa plans to attract new customers through personal shoppers and by holding in-person events. The company has grown more than 20% in recent years and it is expecting to see double that growth from the Chinese luxury market. Other global luxury e-commerce players such as Farfetch and Yoox Net-a-Porter are currently partnering with market leader Alibaba.
Cucinelli Posts Strong First Quarter Results
Brunello Cucinelli reported a 33% rise in sales for the first quarter of 2023, due to strong structural growth in the Americas (up 43%), and a pronounced rebound in Asia (up 56%), where China’s performance stood out. While performing at a steady pace, Europe grew by 16% in the first business quarter. Based on these promising results, the company is raising its guidance from 12% to a 15% sales growth for the 2023 full year. Cucinelli recently opened a new production facility in the Abruzzo region in Italy, which is renowned for its tradition of handcrafted manufacturing.
Zegna Releases AI-Powered Luxury Clienteling
Zegna is introducing a new AI-powered recommendations outreach app called Zegna X to generate product and outfit suggestions for its luxury customers as part of its strategy to embrace technological innovation. Developed in partnership with Microsoft, the AI recommendations are currently only available in the Milan flagship store but will be expanded to select stores worldwide. Using a 3D configurator, the technology creates 49 billion customizable potential outfit combinations, thus supporting sales associates in personalizing customers’ choices. According to the company, customers using Zegna X spend 75% more than regular customers.
Louis Vuitton Invests in Supporting South Korean Tourism
Louis Vuitton has signed a partnership with the Korea Tourism Organization and Seoul Metropolitan Government to support tourism in South Korea by capitalizing on luxury’s strong connections with K-pop. As part of a wider tourism initiative, the company will create content and events to promote Seoul throughout 2023, starting with a pre-fall runway show at the end of April. South Korea has become a hotspot for luxury brands following the rise in popularity of K-pop, with LV appointing rapper J-Hope, as its new brand ambassador. According to multinational investment bank and financial services company, Morgan Stanley, due to its population’s increased purchasing power, South Korea now accounts for roughly 10% of total luxury retail sales.
Tiffany & Co. Unveils New Design For 5th Avenue Flagship Store
After years of renovation, Tiffany, owned by LVMH, has transformed its New York flagship store on 5th Avenue into a cultural landmark replete with architecture, art and design. The 110,000 square foot store spans 10 floors and includes a restaurant. The venerable store used to rank in the top five NYC attractions and is expected to once again welcome millions of visitors. Art is present in all forms. From paintings to NFTs, interactive elements and installations acquired by Tiffany over the last two years. This revamp is said to be the most expensive single brand real estate investment made by LVMH to date.
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