Monday, 11 May 2009

Location Location Location

The end of 2008 saw the opening of Tokyo and Paris stores which lead to the brands portfolio of 12 flagship stores and products sold in 600 places across the globe. 2007, Stella McCartney signed an exclusive distribution deal with the Lane Crawford Joyce Group to open 10 freestanding stores in China, Taiwan, Hong Kong, Macao, Singapore, Thailand, Malaysia and Indonesia by 2012. Other future openings include a New Delhi boutique and units in Kuwait, Dubai, Jeddah, Qator and Riyadh.’

Distribution channels- present

Luxury retailers are clustered in certain streets in capital cities across the globe. Store Locations- Shopping decisions based on ease of access to the target consumer.

Fig Example of area surrounding Bond Street- Luxury brand grouping.


Market sizes and potential growth - key countries to enter

Luxury brands are distributed and sold throughout the world both to domestic consumers and to tourists buying in European and American markets.Thomas (2007) stated that luxury market is expected to grow still further in this decade as a result of the fast developing Asian markets.
Last year in China real urban disposable income per head rose faster than GDP for the first time in five years. This should help to keep consumption growing rapidly in 2008.
(The Economist, February 14 2008)


Huge expansion of luxury markets, the aggressive marketing of brands and products and the emergence of powerful multi brand groups have created a quandary.

‘This is the decade of emerging markets’
Thomas 2007: 300

Due to the sucess of the Middle eastern market- idea to expand in the Villa Moda stores located in Damascus, Kuwait, Quatar, Bahrain and Dubai opening spring 2009
http://www.villa-moda.com/
Department stores have the Idea luxury Retail
Sleek multi brand stores designed by cutting edge architects and designers. This nexus of culture and luxury is becoming increasingly important for the new generation of luxury consumers especially in this region.

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