Thursday, November 8, 2012

A Luxury Marketing Partnership: Rolls-Royce, Vacheron Constantin Host A Thomas Keller Dinner

Chef Thomas Keller explains the meal he prepared for the well-heeled guests of Rolls-Royce and Vacheron Constantin. Photo credit: Derek Gardner Photography

Luxury automobiles and high-end timepieces seem to go hand-in-hand among collectors. Those who appreciate the high-powered engines and vivid design of the most expensive automobiles, also admire the miniature components of mechanical watch movements and the more subtle finishes of well-crafted haute horlogerie. Many of these car and watch brands develop long-standing partnerships that include joint product introductions and long-term marketing agreements. This is especially true when it comes to sports cars.

However, it was a different kind of partnership that recently occurred between Rolls-Royce and Vacheron Constantin. The British luxury automobile company and Swiss luxury watch brand invited about 50 of their clients to dinner, but it wasn’t just any meal. 

Guests talk in front of a Vacheron Constantin watch display.  Photo credit: Derek Gardner Photography

The event was held in a villa on the Monterey Peninsula in a development at least partially owned by Clint Eastwood. The food was prepared by a staff led by Thomas Keller, arguably the best chef in the United States. The event was held on the night before the Pebble Beach Concours d’Elegance, the internationally renowned annual antique car competition held on August 19.

While the event was formal, the partnership between the two brands was informal and temporary, which is how they both want it. They have worked together a few times for small events in the past—including annual private events in Europe and when Vacheron Constantin opened its Madison Avenue boutique in late 2011. But this is the first time they’ve teamed up to put together an outing of this magnitude.

“There is a natural attraction between both maisons. We share a lot of customers. And there is a mutual appreciation from their customers for both nice cars and nice watches,” said Hugues de Pins, Vacheron Constantin, CEO of North America. “As far as I know this is the only one (company that Vercheron has partnered with). This is very punctual. There is no agreement between both companies.”

A Vacheron Constantin watchmaker explains the finer points of a luxury timepiece.  Photo credit: Derek Gardner Photography

De Pins defines this type of event as providing an experience for what who he describes as “friends” of the two brands. The event he says is not about sales.

“What we organize today is a dinner among friends and what we want to bring is an exceptional moment and an exceptional experience,” he said prior to the event. “What best can we get for our friends then having this world-class dinner by Chef Thomas Keller, surrounded by extraordinary cars and extraordinary watches in this beautiful scenery? I think this is going to be magic. This kind of takeaway is at the end of the day what our customers are looking for and expect. Not just the single fact of purchasing a watch but what comes beyond the purchase of a watch. The nice experience we want to live together.”

David Archibald, president of Rolls-Royce North America, Chef Thomas Keller and Hugues de Pins, Vacheron Constantin, CEO North America. Photo credit: Derek Gardner Photography

This is a sentiment echoed by David Archibald, president of Rolls-Royce Motor Cars North America.

“Luxury should not be defined by a single item, but viewed as a lifestyle. Rolls-Royce and Vacheron Constantin share a discerning clientele who seek superior craftsmanship and innovative design, as well as unique and memorable experiences.”  Archibald said. “An event such as this, with its stunning setting and Chef Keller’s unparalleled cuisine, is the epitome of the luxury lifestyle that both Rolls-Royce and Vacheron Constantin represent and offer to their clientele.”


But there is product placement. Dinner was served outside and in plain view was a two-tone Rolls-Royce Ghost strategically fronting both the view of the valley below and in front the setting sun. Inside the villa Vacheron had its collection of timepieces available for viewing. De Pins stresses that they are not for sale. Some of the items were one-of-kind pieces. The brand also brought a watchmaker who gave demonstrations for the guests. 
 
Thomas Keller created an open kitchen where guests can enter while the staff works. Keller us standing in the background.  Photo credit: Derek Gardner Photography

There was a bit of sticker shock for the Rolls Royce customers who I shared a table with when they learned that a few of the watches on display were nearly double the cost of a Rolls Royce.

In a kitchen open for guests to enter while the staff worked, Keller designed a dinner themed with the two luxury brands in mind. 

 

“We tried to bring inspiration from both of these companies and bring them to life on a plate,” he said. “I think we were to at least able bring some recognition to some of the key words and key phrases that are so ingrained in the philosophy and culture of these companies.”

Among the courses was a caviar dish titled “Silver and Platinum,” the metals for Rolls Royce cars (silver) and for luxury watches (platinum). The staff cut the vegetables for a hearts of palm salad in a way that resembles the watchmaking technique of beveling. A braised short rib was titled, “Best Made Better,” after the Rolls-Royce slogan. A final desert was titled “Bespoke,” of course named after what many define as the most ultimate luxury experience. It was a chocolate tart with a selection of condiments. 

A bespoke Rolls-Royce Ghost was in perfect view of the dinner guests as the sun was setting'. Photo credit: Derek Gardner Photography

The meal from appetizers to desert was not favorable, artfully prepared and flawlessly served. To pull this off Keller brought in 19 employees from his restaurants around the country, describing it as a major undertaking that included hotel accommodations during one of the busiest times of the year in Monterey and daily transportation to and from the villa.

“It’s a major commitment,” he said. “Vacheron has the same standards. Rolls-Royce has the same standards. I don’t do many of these events.”

It also was a major expense. It was rumored that the cost of hosting this event was about $1,700 per person. 

These two Patrimony Traditionnelle timepieces were among the watches the Swiss luxury watch brand had on display. Photo credit: Derek Gardner Photography

It’s the price of what de Pins describes as creating “magic,” for friends of the brand. Magic is certainly a way to describe the evening. Few details were left unattended from the greeting at the entrance of the villa to the gifts at the end of the night. As the sun set behind the Rolls-Royce and the evening became cool as it often does in this part of the country, women were given bright orange silk shawls—with the Rolls-Royce logo.

At the end of the night the two car collectors at my table, obviously moved by the experienced, declared that were going to buy another Rolls Royce.

Now that’s what I call magic. 

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‘The Shaq’ Designs Men’s Jewelry Collection for Zale Corp. Stores


Shaquille O’Neal has found himself a new job as a jewelry designer for Zale Corp. The former NBA star has partnered with the specialty retail jeweler to create and market a branded collection of men’s jewelry.

The Shaquille O’Neal Collection consists of a variety of men’s pendants, rings and bracelets. The collection will be offered exclusively in select Zale Corp. stores in the U.S., Canada, Puerto Rico and online. Zale Corp. operates approximately 1,780 retail locations under the following brands: Zales Jewelers, Zales Outlet, Gordon’s Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda

The partnership builds on the strengths of both brands as Shaquille O’Neal (known as “The Shaq”) is widely regarded as one of the most gregarious personalities in sports, and Zales, is one of the most recognized North American specialty jewelry brands.

“Since I was in college I have shopped at Zales because I knew I could buy a quality product at an affordable price,” O’Neal said.

“The product is an expression of Mr. O’Neal’s fun-loving personality and his unique sense of style,” said Theo Killion, Zale CEO.

The company made a promotional video of O’Neal working behind the counter at a Zale store in the Shops at Willow Bend, a mall in Plano, Texas. The video is below.



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Wednesday, November 7, 2012

Megayacht Luxury Jewelry Fair Unveils Exhibitors

The SeaFair megayach, home of the upcoming International Contemporary Jewelry Fair.

The International Contemporary Jewelry Fair unveiled some of the jewelry brands who will be exhibiting on SeaFair, a 228-foot megayacht that will be docked in Miami. The inaugural event will be held December 4-9, during Art Basel Miami Beach.

Luxury jewelry designers, many with one-of-a-kind pieces, will be participating from more than eight countries including Italy, Spain, Philippines, Lebanon, Australia, Brazil, Germany and the U.S. The show is expected to attract the same type of collectors who attend Art Basel and are interested in rare pieces of wearable art. Exhibitors for the event are as follows:

Bagues Masriera (Barcelona)
Chantecler (Capri)
Dario & Peter (Vicenza)
Opera Omnia (Milan)
Scavia (Milan)
Vendorafa (Valenza)
Zydo (Milan).
Autore (Australia)
Jewelmer (Philippines)
Arunashi (Los Angeles)

Ana Kopejka Greene Fine Jewelry Design (Jensen Beach, Fla.)
Daniel K (New York)

Denny Wong Designs, presented by Blue Marlin Jewelry (Islamorada, Fla.)
Heloisa Fitzgerald Jewelry (Boston)
Emsaru (New York)

La Reina/ART (Palm Beach, Fla.)
La Reina Collection (Los Angeles)
Oliver & Espig (Santa Barbara)
Ray Griffiths (New York)

Pandora & Pendragon  (Longwood, Fla.)
Nada G. (Beirut)
Reinstein/Ross Goldsmiths (New York)
Willow Co. (Lawrenceville, N.J.)
Yael Sonia (Brazil)
Lauren Harper Collection (Chicago)
llyn strong (Greenville, S.C.)
Rachel Dugger (Miami)

For the exhibition, the $40 million yacht, built specifically for the purpose of hosting mobile art and jewelry exhibitions, will be docked at its winter season location at Chopin Plaza, Noguchi Bayfront Park in downtown Miami.

On December 4, ICJF will open with a preview party hosted by diplomatic representatives of Italy, Brazil, Spain, Australia, Philippines and Lebanon. Regular fair hours will be from 1 p.m. till 10 p.m., December 5-9.

For more information, tickets and programming; visit www.icjfmiami.com.


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Taiwan to Host International Jewelry Fair in 2013

Taipei World Trade Center, home of the new Taiwan Jewellery & Gem Fair.

UBM Asia, the Taiwan Jewelry Industry Association and the Taipei Jeweler’s Association will join together to launch the first Taiwan Jewellery & Gem Fair, which will be held Nov. 15-18, 2013, at the Taipei World Trade Center.

Described as “a high-end, professional jewelry event that aims to provide an opportunity for international jewelry suppliers to meet with local buyers,” the November timing of the exhibition was chosen because it is the time of year when jewelry retailers in Taiwan purchase inventory ahead of the busy Christmas, New Year, Chinese New Year and Valentine’s Day jewelry buying seasons.

The event will be held in Exhibition Hall 3 of the Taipei World Trade Center, located adjacent to the Taipei 101 Tower, the Grand Hyatt Taipei Hotel and situated in the Xinyi commercial district of central Taipei.

Taiwan has a strong jewelry manufacturing and processing industry that exports products around the world. Recently, there’s been a surge in tourists from Mainland China fueling an expansion of the domestic market. Chinese tourists are avid buyers of coral and jadeite jewelry. This has created strong demand from Taiwan’s jewelry manufacturers for loose stones, mountings and materials; and from retailers for finished jewelry, according to the organizers. This led to people calling for an international, professional jewelry exhibition in Taiwan.


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Consumers Online Spending Up 15% in Q3


Online retail spending for the third quarter increased 15 percent year-over-year to $41.9 billion, representing the 12th consecutive quarter of positive year-over-year growth and eighth consecutive quarter of double-digit growth, according to comScore, Inc.

Gian Fulgoni, chairman of the Reston, Va.-based company that specializes in measuring digital data, said the numbers are consistent with the prior quarter and confirm “the strength in the e-commerce sector, despite a few negative headwinds in the macroeconomic environment during the quarter. Such performance offers some optimism as we approach the holiday season, especially given recent improvements in consumer sentiment.”

He added, “With the housing market beginning to show signs of recovery in addition to increasing–if still underwhelming–job growth, there appears to be strong enough footing to support a very healthy online holiday shopping season.”

Other highlights from comScore’s Q3 2012 U.S. retail e-commerce sales estimates include:

* The top-performing online product categories, according to the survey were: Digital Content & Subscriptions, Consumer Electronics, Event Tickets, Apparel & Accessories, and Computer Software. Each category grew at least 16 percent year-over-year.

* About 37 percent of U.S. consumers say they have engaged in “showrooming” behavior where they use a smartphone while in a retail store to check prices or to purchase a product online, representing a 5-percent increase in the past two quarters.

* According to the survey, 48 percent of U.S. consumers now rate the economy as “poor” an 8-percentage point improvement vs. the prior quarter and the most pronounced improvement since early 2009.



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Tuesday, November 6, 2012

Tiffany & Co. to Open Flagship Paris Store on Champs Elysées

Rendering of Tiffany's planned store in Paris.

Tiffany & Co. said Tuesday that it plans to open a new European flagship store in Paris. The 10,000-square-foot, multi-level store will be located at 62, Avenue des Champs Elysées and is expected to open in 2014.

"This is a significant development and sales opportunity for Tiffany & Co. While we have been successful in operating three smaller stores in Paris, establishing this store on the Champs Elysées will be the ultimate symbol of Tiffany as a truly global luxury brand," said Frederic Cumenal, executive vice president, Tiffany & Co. "This is a preeminent location that firmly places Tiffany & Co. on an international stage, in the heart of a city where people from all over the world come to visit and shop."

The opening on the Champs Elysées will mark a new milestone in Tiffany's connection to Paris, which began in 1850 when the company established its first store. In 1999, Tiffany returned to Paris with a store on rue de la Paix.

In March, the owner of the rue de la Paix building that housed Tiffany’s Paris store, placed the property for sale


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Pandora Produces Charming Q3 Sales and Profit Gains


Danish jewelry company Pandora said Tuesday that third quarter revenue increased 14.3 percent, year-over-year, to DKK 1.79 billion ($308 million) with double-digit gains across all geographical markets. Net profit for the period increased by 11.4 percent to DKK 380 million ($65.2 million).

This is a strong turnaround when compared with second quarter results in which the company—best known for the manufacture, distribution and marketing of silver charm jewelry—said its sales fell by 9.5 percent to 1.26 billion DKK ($210.2 million) with profit during the same period down 89.9 percent to 63 million DKK ($10.5 million).

Pandora also said Tuesday that its stock balancing plan (replacing discontinued stock) is continuing as planned. In the third quarter, the company received returns of discontinued products with a wholesale value of DKK 86 million ($14.7 million), and replaced it with merchandising costing DKK 127 million ($21.8 million). In 2012 Pandora received returns of discontinued products valued at DKK 609 million ($104.6 million), and replaced DKK 599 million ($102.8 million).

Revenue by geographic region is as follows:

• Americas increased by 21.9 percent (9.5 percent in local currency), with U.S. sales up 15.8 percent (2.6 percent in local currency).
• Europe increased by 13.1 percent (11 percent in local currency).
• Asia Pacific decreased by 10.7 percent (17.3 percent in local currency).

Branded revenue as percentage of total revenue increased to 81.3 percent, compared with 73.6 percent in third quarter of 2011. Gross margin was 64.1 percent, compared with 73.6 percent in the third quarter of 2011.

EBITDA margin was 28 percent, compared with 34.2 percent in Q3 2011, a decrease of 6.2 percent to DKK 503 million ($86.3 million). EBIT margin was 25.8 percent compared with 32.2 percent in Q3 2011, an 8.5 percent drop to DKK 463 million ($79.5 million).

The company, which sells its jewelry through retail jewelers and its own branded retail stores, updated its outlook, saying it expects revenue for 2012 to be above DKK 6.3 billion ($1.08 billion), from its previous guidance above DKK 6 billion.

“I am happy to report that we continue to perform in line with our ‘18 months turn-around plan,’” said Björn Gulden, Pandora CEO. “Third quarter developed even a little better than we expected and we have, based on the tailwind from the currency development, decided to slightly upgrade our revenue guidance. One of our major initiatives ‘The stock balancing campaign’ was continued, mainly impacting the U.S. and third-party distribution, during Q3 2012. We have now largely concluded the campaign and it will, as communicated earlier, be finished by end of 2012.”

Gulden added its spring merchandise sold well and its fall merchandise had a strong start for the third quarter.

“The year is not yet finished,” he said. “We have our most important quarter to come, but we feel confident that our improved product, our lower prices and our other operational improvements will put us in the position of achieving our updated financial goals for the full year.”


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