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We talked to Daniela Zamudio, Marketing and Communications Manager at TIFFANY & Co., about the most relevant strategies for luxury marketing. In this conversation, Zamudio shares strategies to migrate to digital, knowing when’s the right timing for joining social networks and the relevance of personal customer interactions for the brand.

The Right Way to Do Luxury Marketing

luxury marketing expert
Daniela Zamudio, Marketing and Communications Manager, TIFFANY & Co.

During your presentation in AdWeek Mexico, you highlighted many brands make the mistake of working their online and offline marketing strategies separately. How does Tiffany & Co. address this issue, and why do you think they should work together and not as separate divisions?

First thing you have to do is take a look at the media mix so you can define which percentage of the investment to assign each channel. We’re now looking at 60% online and 40% offline. However, our team calls that 40% “integrated partnership”. It would be difficult and wrong to conceive an offline mix that doesn’t impact your digital efforts. I really believe the key is looking at it as 100%, and then plan how to distribute it throughout the different channels.

It would be difficult and wrong to conceive an offline mix that doesn’t impact your digital efforts.

Tiffany & Co is a retail brand, and fashion brands tend to do more PR and ads in print and editorial, etc. These have a definite impact on digital. We see that a lot in my team. I try to communicate a lot with my agencies and have a million meetings so that both teams (offline and offline) understand what each other and doing, and determine how to connect both platforms.

 

 

Current Luxury Marketing Campaign

 What key brand message is your current strategy based on?

The goal today is selling diamonds. You’ll start seeing communication featuring diamonds everywhere, both offline and online. Digital gives us wider access to audiences, while offline helps us strengthen our branding.

Digital gives us wider access to audiences, while offline helps us strengthen our branding.

You also mentioned that many of the brand’s most loyal customers belong to the older generations. Since they’re less digitally connected, they often feel left out. How do you include the older consumer segment?

It’s honestly been a challenge. A niche of our target is still very traditional. So we have kept our ads in printed media such as Hola and Quién. Another part is offering a great in-store experience. In general, luxury brands are still oriented to clients and providing personal assistance. If a customer was here a month and a half, we call them for a follow-up because it’s the most traditional way to do it and it works with certain audiences.

 

Consumer Loyalty

Tiffany & Co marketingHow do you handle loyalty without offering a benefits program?

Our team calls it “personal touches”. This means that if you came into the store and liked something, we’ll call you on the phone. We know when’s your birthday or your anniversary. If you had an important milestone at work, we’ll send you flowers or chocolates. This personalized attention is why the sales person is the key player for luxury brands, even more than the marketing area. I may design a great strategy, but if the salesperson does not connect with the consumer, everything’s lost.

 

The salesperson is the key player for luxury brands, even more than the marketing area.

 

Social Media Selection

How does Tiffany & Co. choose which social media to work with?

You need the perfect timing to be in a platform. We haven’t been on Instagram in a while because its average users don’t have enough purchasing power. TikTok might work for us as a branding strategy, but I’d have to ask myself: What do I want from this strategy? Do I want a 16-year-old to know we exist? That will take a long time to yield results; it’ll take a long time for that kid to start working so he can give his girlfriend a Tiffany ring. So, even if it’s emerging as the strongest platform today with a very interesting audience, we need strategic timing.

Even if it’s emerging as the strongest platform today with a very interesting audience, we need strategic timing.

We may not use TikTok right now because it makes no sense. We’ll see how it evolves, same as we saw Instagram evolve, same as we went into Spotify, same as we saw the audience evolve and adapt to us.

We’ve used a very interesting mix of social media. We’ve been on Spotify, Waze, Instragram, and we recently tried out LinkedIn. It takes a lot of testing. But we did well because LinkedIn was the perfect match for advertising diamonds. I wouldn’t use the same platform for any other collection. I think this is key for strategy, seeing what you can communicate and where.

 

Do you have plans to do e-commerce in Mexico?

Would you buy a diamond online? We have no plans for e-commerce in Mexico. We’ve been doing it for a least 5 years in the U.S., but nothing in sight for Mexico yet.

 

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A summary of the most exciting recent research in brand marketing in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

US/US-HISPANIC MARKET

Kenshoo‘s recent study, “Amazon: The Big E-Commerce Marketing Opportunity for Brands,” spoke to 3,100 consumers in the United States, Germany, United Kingdom and France, and 85% said that Google is a top resource for product discovery and research, while 72% of shoppers said the same of Amazon. 56% of customers check Amazon first when researching merchandise.

According to Zenith’s Advertising Expenditure Forecasts, between 2016 and 2019, social media in-feed ads, online video, and other digital formats, such as paid content and native advertising will drive 14% annual growth in total display advertising. Total display expenditure will rise from USD$84bn to USD$126bn, and by 2019, total display will account for 50.4% of internet advertising expenditure, passing the 50% mark for the first time.

A new study by PlaceIQ, “State of Integrated Marketing 2017: Mapping the Journey to Success,” found that 47% of marketers say developing a unified cross-channel customer experience was one of their top three priorities this year. 37% of marketers cited the ability to accurately measure cross-channel results as the most pivotal factor for successful integrated marketing, and 81% ranked location data as the first or second most important element.

According to a study by On Device Research, 47% of consumers state that seeing fewer ads than they do watching linear TV is an incentive to subscribe to paid on-demand TV. 87% of the survey respondents are using mobile apps for more than two hours per day, and 75% of respondents claiming to shop online at least once a month.

According to a study by The Values Institute, Amazon is America’s most trustworthy brand, followed by Marriott, Microsoft, Hilton and Southwest Airlines.

64% of marketers surveyed by Bazaarvoice and Ad Age said that they are not fully clear on the origins of their data sources.

According to a recent study from Deloitte on Millennials and luxury, American millennials spent far less on luxury spending than other markets. Over 25% of the American Millennials report no luxury purchases of $500 or more in the last 12 months, while the survey average across global markets was only 16%.

A Goldsmiths University study found that 61% of respondents preferred a tailored approach when it came to marketing engagement by brands. 53% claimed that they appreciate when a brand is able to use their data to provide a personal experience, but 76% want to know how their data is being used.

A survey by Forrester Research has found that four in 10 teen users aged 12-17 say there are too many ads on YouTube.

LATAM MARKET

According to a study from the Internet Association of Mexico, online activity and interactions among Mexican internet users increased from 20.2% to 70% between 2006 and 2016.

Starting in January 2018, the Argentinean Trivento brand will become the first official wine of the MLS until 2020. Trivento will be allowed to use any of the 20 MLS clubs in its advertising campaigns and create new MLS-branded packaging for its products.

Join us at PORTADA Mexico!

What: Portada talked to Robert Van Ness, Executive Vice President of Americas Preferred Hotels & Resorts about the luxury brand’s marketing strategies.
Why it matters: Preferred Hotels & Resorts has over 650 hotels in 80 different countries, each one of them is marketed as an independent brand.

According to a study published by global travel technology provider Amadeus in 2016, luxury travel saw a 4.5% compound annual growth rate (CAGR), versus 4.2% for overall travel, between 2011 and 2015. Luxury travel is defined as  outbound flights on business or first class. This trend is expected to keep growing towards 2025 at a CAGR of 6.2%, almost a third faster than overall travel at 4.8%. Preferred Hotels & Resorts  is an organization catering to the Luxury Travel segment. It  was founded by 12 North American hoteliers in 1968, originating as a referral organization for hotels, under the name Preferred Hotels Association. Today the organization has the world’s finest luxury hotels and resorts with an extensive global collection representing more than 85 countries. Preferred Hotels & Resorts does not own, operate, or manage any of the hotels within its portfolio. All of the hotels, resorts, and serviced residences within the Preferred Hotels & Resorts portfolio are independent entities. The organization’s quality standards are measured by yearly anonymous on-site inspections and real-time quality assessment scores pulled from social media sites. We talked to Robert Van Ness, Executive Vice President of Americas Preferred Hotels & Resorts (photo), a key decision maker for Preferred Hotels & Resorts Marketing.

Portada: What marketing challenges do luxury hotel brands, like yours, face today?
Robert Van Ness:
 “With the proliferation of brands globally, it is important to maintain your core identity. For any brand, a critical key to success is maintaining authenticity and originality.”

Digital marketing efforts such as display banner ads, PPC, social media, and email marketing campaigns work best for us.

Portada: Which marketing platforms work best for you to reach your customers? Why?
RVN: “
Digital marketing efforts such as display banner ads, PPC, social media, and email marketing campaigns. Because everything is trackable, therefore every media dollar is spent responsibly; the media can be targeted based on other traveler purchases (e.g. the ability to target a traveler who has booked an airline flight and not yet a hotel); A/B testing can be performed on creative. From a mass marketing perspective, we invest heavily in display and some PPC. From a direct marketing side, we develop and execute a lot of email campaigns throughout the year – these are particularly effective since our audience is very engaged with our brand.”

Because everything is trackable, every media dollar is spent responsibly.

Portada: Can you mention an example of a successful campaign you’ve done recently?
RVN:
 “An example would be our Florida / Caribbean regional campaign. By targeting high-intent consumers and capitalizing on peak booking times with a relevant message and strong offer, we saw a dramatic increase in revenue. Utilizing highly targeted tactics such as consumer search behavior on TripAdvisor and Sojern’s airline booking behavior allowed us to garner a large ROI.”

By targeting high-intent consumers and capitalizing on peak booking times with a relevant message and strong offer, we saw a dramatic increase in revenue.

Portada: What marketing trends are you seeing in the luxury hotel market?
RVN:
‘Book direct’ campaigns continue to be a major trend that many luxury hotel companies are pushing and/or adopting.”

Portada: Why do you believe they are (or will be) successful?
RVN: 
“Building a relationship with our guests and iPrefer members is important to their embracing the brand, and our hotels.  Some may think they cannot find independent, distinctive hotels AND a loyalty program.”

Portada: Which marketing agencies do you work with in the Americas?
RVN:
 “Hyperdisk, as well as notable industry leaders such as AdRoll for retargeting, TripAdvisor for regional targeting, Quantcast for demand generation, Sojern, DerbySoft for meta search management.”

Join us at PORTADA Mexico!

Check out our new round up for brand marketers, where you’ll find the week’s most relevant insight and research.  If you’re trying to keep up, consider this your one-stop shop

SaaS firm Snaplytics released its quarterly metrics report for Q4 2016: 54.8% of followers will open brand stories and 87.5% will complete the full story after opening. Thirteen stories are posted monthly on average per brand with 11 snaps per story, of which 61% are videos.

Satisfaction is the emotion consumers most associate with positive brand experiences, according to recent research from InMoment.

 Nielsen released report A Fresh Look at Multicultural Consumers to help retailers understand the influence multicultural consumers wield across the meat, produce, seafood, deli, and bakery categories. Results: Multicultural households spend a higher share on Fresh as a percentage of their total food spend compared to non-Hispanic White households.

According to a new Accenture study, new “languages of loyalty” are driving customer relationships in the digital age, especially among millennials. The firm argued that marketers should provide digital-driven incentives through tokens of affection, personalization, exciting experiences, the use of influencers and brand partnerships.

Market-research agency MBLM released its 2017 Brand Intimacy Report. The report reveals that the top brands must build deep relationships with consumers through strong and personal engagement. Apple, The Walt Disney Company, Amazon, Harley-Davidson, Inc. and Netflix came in at the top.

Technavio has announced the top six leading vendors in their recent global personal luxury goods market report. This market research report also lists 14 other prominent vendors that are expected to impact the market during the forecast period. Estée Lauder, L’Oréal, LVMH, Richemont and Swatch Group came in at the top of the list.

According to a new report published by Allied Market Research, titled, “Confectionery Market by Type: Global Opportunity Analysis and Industry Forecast, 20142022 the global confectionery market was valued at $184,056 million in 2015, and is projected to reach $232,085 million by 2022. The chocolate confectionery segment dominated the market in 2015 with more than one-third revenue share.

Market research firm TrendForce reports annual tablet shipments worldwide dropped by 6.6% to 157.4 million units in 2016. However, total shipments from branded tablet vendors surpassed expectations because of the robust year-end holiday sales.

According to research firm Gartner, global smartphone sales to end-users hit 432 million units in the fourth quarter of 2016 — a seven per cent increase over the like period in 2015, and  smartphone sales to end-users totalled nearly 1.5 billion units in 2016, an increase of five per cent from 2015.

NPD Group reported that sales of prestige products climbed 6% last year for a total of $17 billion spent in the third year of consecutive growth. Color cosmetics sales climbed 12% and represented 82% of all growth, sales of skincare products gained by 2%, and luxury fragrances grew by 1%.

Danish toy manufacturer Lego was named the Most Powerful Brand in the World by consulting firm Brand Finance. Ferrari came in second.

What consumer categories are seeing increased demand from Hispanics? We talked to Packaged Facts’s Daniel Grandson, Ana Crandell of OMD Multicultural and Isabella Sanchez of Zubi Advertising to find out.

1.Latinos Are Increasingly Adopting Financial Tools 

A recently published study by research firm Packaged Facts has revealed data that should serve as further incentive to allocate significant time and money to targeting Hispanic consumers. One of the biggest takeaways from the report is that Hispanic consumers are increasingly adopting financial tools like credit packageddcards. Packaged Facts analyst Daniel Granderson noted that “Hispanic consumers have recently registered an exceptionally high increase in credit card ownership, when historically they had a below-average tendency to own and use credit cards.”

US-Hispanics are also buying life, health and automobile insurance at a faster rate than non-Hispanic households. In fact, “Latino households were responsible for 65% of the growth in the number of households with automotive insurance, 52% of growth in the number of households with health insurance and 31% of growth in households with life insurance,” Granderson added.

2. Hispanics Buying More in ‘Nesting,’ Less in Household Products Categories

Ana.CrandellWhen it comes to allocating effort and budgets to reaching Hispanic consumers, Ana Crandell, Group Account Director at Optimum Media Direction (OMD) Multicultural (foto), asserts that she has seen increased interest in prioritizing Hispanic consumers across a wide range of sectors: “It really has been across the board, though I would say the retail and CPG categories seem to be the ones that are starting to allocate more of their marketing dollars toward this segment.”

Crandall’s observations go along with the Packaged Fact’s study findings, as Granderson highlighted that a “noteworthy pattern in recent spending shifts on the part of Hispanic households is an increase in spending on goods and services, such as furniture and in-home entertainment equipment, that fall in the category of ‘nesting.’”

Hispanics have also increased spending on personal services like childcare, and are buying new instead of used cars at an increasing rate, reversing a long-standing trend.

3. Hispanic Americans’ Households Are Growing – Quickly 

If we look at the math, Granderson says, it’s easy to understand why the Hispanic consumer has become a priority for any marketing strategist.

I would consider 2010 to represent the tipping point, when marketers finally started to proactively acknowledge the business opportunity this segment represents to their respective brands.  This latest set of data just further validates this.

“Hispanic households have had and are likely to continue to have an outsize impact on growth in consumer spending in a wide variety of areas,” Granderson says, because Hispanic households are growing at a faster rate than non-Hispanic households, at 8.1% vs. 3.0%.

This is also true of the rates of spending when we look at Hispanics vs. non-Hispanics: while Hispanics still spend less than non-Hispanics, on average, between 2012 and 2015 average annual consumer expenditures by Hispanic households grew at a higher rate (9.7% vs. 8.6%). So this translates into a higher rate of growth in aggregate spending among Hispanics vs. non-Hispanics.

Crandell adds, “We started seeing a substantial increased interest in this particular segment immediately following the release of the last census, 6 years ago.  In fact, I would consider 2010 to represent the tipping point, when marketers finally started to proactively acknowledge the business opportunity this segment represents to their respective brands.  This latest set of data just further validates this.”

Check Out: First half 2016 recap: 11 marketing and media developments you need to know about

4.Luxury Brands Want in on the Action

Isabella Sanchez_Zubi_BWIsabella Sanchez, VP of media integration at Zubi Advertising (photo), affirmed that there is usually “renewed or refreshed interest” in Hispanic consumers whenever a census comes out. This particular report, Sanchez says, and its focus on Hispanics’ increasing income, “is great affirmation to the diversity of the Hispanic market.”

But that increasing income also means that luxury brands, which had operated under the assumption that Hispanics could not afford their products, have started singing a different tune.

The Hispanic market is not such a minority market anymore. Hispanics are the dominant market for the population segment in certain cities, and as companies look to grow their business, they’ve reached a point of saturation in the general market and may be as penetrated as they’re going to be. So the Hispanic market is the most logical…that’s where the growth is in every industry.

Sanchez highlights the case of Lincoln Motors, who turned to Zubi for support in a Hispanic marketing strategy to support their general campaign to compete with popular German brands like Mercedes-Benz and BMW.

Zubi’s work for Lincoln has been “very successful,” and serves as proof of the fact that Hispanic consumers are now a crucial demographic in the luxury market. Before, “luxury was under the impression that Hispanics could not afford these types of things, and that if they could, they could be reached with the general market advertising,” Sanchez remembers. Not anymore.

Are Marketers Really Paying Attention?

4880265002_5bf1a62db3_zWhile marketing professionals, agencies and brands have generally recognized that the Hispanic consumer represents a key demographic, it has been difficult to keep up with the evolution of Latinos in America today.

Marketing professionals that target Hispanics still seem to have an incomplete understanding of who those in this demographic really are and how they make their purchasing decisions, which is why marketers that specialize in multicultural or Hispanic targeting find significant demand for their services.

Zubi Advertising’s Sanchez points out that the interest in the Hispanic consumer is nothing new, but that the key is that “the Hispanic market is not such a minority market anymore.” Today, Hispanics comprise “the dominant market for the population segment in certain cities, and as companies look to grow their business, they’ve reached a point of saturation in the general market and may be as penetrated as they’re going to be. So the Hispanic market is the most logical…that’s where the growth is in every industry.”

Crandell echoes that sentiment: “This is a very dynamic segment that is unlike any other and marketers are therefore continuously looking for a way to get a full grasp of what exactly it is that makes them so – and, more importantly, how to best engage with them.”

But she adds: “That said, I have definitely witnessed increased willingness among marketers to spend the necessary resources to gain a better understanding of them.”

Join us at PORTADA Mexico!

 

Expenditure on luxury advertising will rise by 3.0% in 2016, up from 1.9% in 2015, according to Zenith’s Luxury Advertising Expenditure Forecasts second annual edition. Luxury advertisers will spend a total of US$10.9bn across the top 18 markets(including The United Stated) in 2016, up from US$10.6bn in 2015. The USA is the largest luxury ad markets, accounting for 45% of luxury adspend in 2015, according to the report.

0001This is the second annual edition of the Luxury Advertising Expenditure Forecasts, which examines expenditure on luxury advertising in 18 key luxury markets.* This report focuses specifically on luxury advertising, together with the sub‐categories of luxury automotive, fragrances & beauty, fashion & accessories, and watches & jewellery.

Adspend global total was buoyed by strong growth in North America (3.6%) and Western Europe (4.7%).

North America will stay strong, with 3.9% growth. Overall, the report forecast 3.0% growth in luxury adspend across our top 18 markets in 2016. Luxury advertising is growing less rapidly than advertising as a whole.

The USA is the largest luxury ad market, accounting for 45% of luxury adspend in 2015.

Across the 18 markets, luxury advertising grew by 2.9% in 2014, compared to 5.6% for advertising as a whole, and 1.9% in 2015 (compared to 4.1%). The report forecast this underperformance to continue, with luxury advertising growing 3.0% in 2016 compared to 4.5% growth across all categories.

The USA, along with China, is driving growth in luxury advertising Between 2015 and 2017. In total, luxury advertising is expected to grow by US$705m. 82% of this growth will come from the USA (US$347m).

The USA is the largest luxury ad markets, accounting for 45% of luxury adspend in 2015.

 

US LUXURY MARKET

The USA continues to expand, with GDP growth rates of 2.5% and 2.6% in 2015 and 2016 according to the IMF and an unemployment rate at 4.9%. Yet consumer confidence is declining compared to last year.

The rise of the dollar enabled the US to emerge as the strongest global region for the purchase of personal luxury goods in 2015. However, the strengthened dollar also poses a problem for many foreign tourists, who are now travelling elsewhere.So although local consumption of luxury goods increased during 2015, this growth barely managed to offset the drop in tourism revenue on the US luxury goods market.

That said, luxury adspend will continue to grow in the coming years – by 3.9% in 2016 and 3.3% in 2017, the report forecast. TV will remain the main medium for luxury advertising (42% market share in 2015) but digital should overtake print to become the second luxury medium in 2016 (with 29.5% market share compared to 28.9% for print).

1

Luxury experiential travel remains robust

Experiential travel was relatively unaffected by the recession and has done well during the recovery, thanks in part to millennials, who still purchase luxury goods but value customized experiences over items.

2

Influence of new media

Despite being latecomers to the digital world, an increasing number of luxury brands are embracing digital technology, aiming to understand the changing behaviours and desires of luxury consumers and enhance brand awareness by adopting a fresh approach instead of continuing to invest in spaces where their consumers know and expect to see them. The luxury market is turning towards a holistic consumer experience, both in stores and across online platforms. Brands are using mobile devices, digital out of home and even 3D technologies to create a coherent and engaging luxury experience.

M-commerce should continue to rise in 2016, with launches of “shoppable” apps by luxury retailers-turned-publishers, such as Net-a-porter with Porter magazine or Barneys with The Window, an online retail blog that has become a branded print magazine.

Social networks that propose new formats such as Facebook’s Canvas should enable advertisers to create immersive, entirely branded app-like experiences.

Digital will be the largest luxury advertising medium in 2017.

Digital advertising is by far the biggest contributor to the growth in luxury advertising, growing consistently at double‐digit rates.

Digital media adspend by luxury advertisers is expected to increase by US$837m between 2015 and 2017. Over this period, television, radio and cinema will increase by a total of US$26m between them; outdoor will shrink by US$10m; and print will shrink by U$150m.

By 2017, print will account for 28.6% of total luxury adspend, down from 31.9% in 2015. TV’s market‐share will also decline over the same period, from 32.7% in 2015 to 30.7% in 2017.

Digital’s market‐share will increase from 26.3% in 2015 to 32.1% in 2017, when it will overtake TV and print to become the single largest medium for luxury advertising.

Print remains the most important medium for ‘high luxury’ advertisers Despite its decline in market‐share, print remains particularly important to luxury advertisers, specifically those in the fashion & accessories and watches & jewellery sub‐categories.

In 2015, fashion & accessories advertisers spent 83% of their budgets in print, and watches & jewellery advertisers spent 60%. Print titles – especially glossy magazines – provide high‐quality, immersive yet relaxed reading experiences, a particularly suitable environment for luxury advertisers wishing to showcase their brand values.

Digital media adspend by luxury advertisers is expected to increase by US$837m between 2015 and 2017

3

Data informed platforms

Luxury advertisers were slow to adopt programmatic buying compared to other advertisers, instead favouring content alignments, because programmatic initially valued efficiency and eyeballs over immersive experiences in premium environments. Luxury advertisers are just beginning to use data to target affluent individuals – using purchase behaviours, credit card info and travel data. For example, Pomellato has begun using its own web data to retarget current customers who are likely to be strong brand advocates. They also use look-a-like modelling to reach new, potential customers based on current customers’ online behaviours like credit card usage, travel and the day of the week they are most likely to make a purchase.

In-house native advertising

Native advertising is becoming a dominant advertising format and should continue to grow, driven by mobile devices and social networks. A lot of publishers and advertisers have developed in-house native advertising studios to keep control of content creation. Condé Nast launched its much buzzed-about in-house native advertising studio 23 Stories, which allows advertisers to work directly with its own editors on branded content. Marriott also launched its owned creation studio, “M Live”.

*The 18 markets are China, Colombia, France, Germany, Hong Kong, Italy, Malaysia, Mexico, the Netherlands, Peru, Russia, Singapore, South Africa, South Korea, Spain, Taiwan, the United Kingdom and the United States of America.

Join us at PORTADA Mexico!

 

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the Hispanic market and/or targeting Hispanic consumers right now.

Check out Portada’s Interactive Directory of Corporate Marketers and Agency Executives. 12 NEW LEADS HAVE JUST BEEN UPLOADED. To acquire the database, please call Jennifer Chan at 347-961-9516 or e-mail her at jennifer@portada-online.com SEE A DEMO OF THE DIRECTORY!
For prior Sales Leads editions, click here.

  • L’Oréal Paris

because-you’re-worth-it-25-HRL’Oréal Paris is leveraging its red carpet authority and broadcast sponsorship of the 2016 Golden Globes with the launch of the #WorthSaying campaign. #WorthSaying, launching yesterday January 10, the night of the Golden Globes, encourages women on the carpet – and off – to share words they believe are truly worth saying.The night of the Golden Globes, the brand’s powerhouse roster of celebrity spokeswomen, which includes Julianne Moore, Karlie Kloss, Eva Longoria, Frieda Pinto and Liya Kebede, along with brand experts and social influencers, will band together as catalysts for change and spark dialogue by putting forward their own words #WorthSaying on Twitter. Women everywhere can take part in the conversation on Twitter during the broadcast on Sunday, January 10, 2016 from 5:00pm EST – 11:00pm EST by tagging @LorealParisUSA and using #WorthSaying. The campaign also will debut customized television billboards, banner ads and online videos, all in an effort to inspire women to join the #WorthSaying conversation and further elevate women’s voices to an unprecedented level.

  • Lexus RX luxury crossover

descargaLexus has released a national integrated marketing campaign for the entirely redesigned Lexus RX luxury crossover. Two national TV spots highlight the RX’s design and performance. “Beautiful Contrast” and “Modern Luxury”. The commercial highlights the chiseled exterior and interior craftsmanship. Both spots end with a voiceover saying: “Never has luxury been this expressive.”  The integrated national campaign will appear on broadcast, digital, print and out-of-home media. The TV spots will air during prime time, late night, cable and sports programming.Digital presence for RX includes unique brand integrations with AOL, Google/YouTube and “The Mindy Project” on Hulu. An immersive campaign with Facebook/Instagram will provide consumers with contextual RX content after relevant “life moments.”Print media features the headline “Sophistication. Sharpened.” The spots and behind-the-scenes video are available for viewing at youtube.com/LexusVehicles.

  • Hass Avocado Board (HAB)
Mini Carnitas Sliders with Golden Avocado Salsa

The Hass Avocado Board (HAB) is projecting that more than a record 270 million fresh avocados will be eaten during Big Game Week. In celebration of how eating avocados can unite people, football fans are invited to help establish a new world record for the largest online photo gallery of guacamole dipping and other avocado bites. Avocado-lovers are challenged to submit photos on Twitter, Instagram, Facebook, Google+, Vine or Flickr using #GuacGoal from January 22-February 7. In addition to the thrill of being part of this history-making attempt, participants will be entered for a chance to win a grand prize of US$500, two runner-up prizes of US$250, and one of seven footballs signed by football legend Joe Montana. To see how fellow avocado lovers enjoy the fruit during the Big Game festivities, visit the online photo gallery at www.SaboreaUnoHoy.com/guacgoal.In addition, HAB unveils a new Mini Carnitas Sliders recipe just in time for the Big Game.

 

  • SunTrust

iUfo3JFk_400x400SunTrust Banks will debut its first national Super Bowl ad this year, Adage reports. The Atlanta-based lender plans to broadcast a 30-second spot with a high-minded goal: inspire Americans to feel more confident about their finances and less stressed.The spot, which was filmed in several locations around the U.S., will air as the last ad during the two-minute warning break in the game’s fourth quarter. SunTrust worked with Strawberry Frog on the commercial; Dante Ariola directed.The TV spot will be part of an integrated campaign that will continue through February and include a 60-second version that will air online, and then on TV after the Super Bowl. Ms. Johnson declined to disclose the budget spent on the effort.In the third quarter, SunTrust reported revenue of US$2.1 billion, a 1.3% rise over the year-earlier period, and profit of US$537 million.

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the Latin American market and/or targeting Latin American consumers right now.

CHECK OUT PORTADA’S INTERACTIVE DIRECTORY OF CORPORATE MARKETERS AND AGENCY EXECUTIVES TARGETING LATIN AMERICANS! If you want additional information or to acquire the database, please call Jennifer Chan  347-961-9516 or e-mail him at jennifer@portada-online.comSEE A DEMO OF THE DIRECTORY!

::: Procter & Gamble – Starcom MediaVest Group ::: Hilton Worldwide/ Paraguay ::: HotelREZ/ Argentina ::: “Despegue”/ Argentina :::

    • Major Luxury Brands Going Back to Argentina? (Burberry, Dolce & Gabbana, Armani, Louis Vuitton).

Burberry, Dolce & Gabbana, Armani y Louis Vuitton are some of the companies cited by Buenos Aires real estate brokers that are interested in expanding in the Argentinean market as a result of Mauricio Macri’s victory in the recent presidential elections. Macri’s government is expected to lift restrictions to import (luxury) goods as well as to liberalize the exchange rate. Other companies cited include Dunkin’ Donuts, Pizza Hut and Carl’s. Retail chain Forever 21 recently opened a store in a Buenos Aires shopping.

  • Procter & Gamble/ Global

kYrPoJnL_400x400The packaged-goods giant Procter & Gamble has completed the North American media agency review, shifting most of its business from Publicis Groupe’s Starcom MediaVest Group to two other agencies — Dentsu Aegis Network’s Carat (a planning incumbent) and Omnicom Media Group. Of the two, Omnicom Media received the bigger share of business. Starcom will continue to work on Duracell, cosmetics, fragrances, and some hair products in the US and Canada. It will continue to handle media for P&G outside of the US. Starcom continues to manage P&G’s local digital business for Mexico as well as P&G’s brand planning and buying for the whole region.

  • Hilton Worldwide/ Paraguay

VKJR5OUy_400x400Hilton Worldwide has signed a Letter of Intent with Grupo Cartes to bring the flagship Hilton Hotels & Resorts brand to Paraguay. The management agreement is anticipated to be signed in Q1 2016.Designed by Uruguayan architect Carlos Ott and expected to open by the end of 2018, plans call for a full-service Hilton hotel featuring 180 guest rooms and 50 Hilton branded residences located at the intersection of Aviadores del Chaco and Campos Cervera.

  • HotelREZ/ Argentina

6vvNv1h1_400x400Following its recent partnership with Barcelona-based Qualis Hospitality GroupHotelREZ Hotels & Resorts adds hotels in both Spain and Latin America (LATAM), to its growing portfolio of independents. The latest property signing with the representation company is the 5 star Sant Pere del Bosc Hotel & Spa in Spain.Other properties which have recently come on board the HO chain code, include Hotel Ambit Barcelona, in city-centre Barcelona; Vega De Cazalla, in Andalucia, Spain; and Estancia Monte Viejo in Argentina.

  •  “Despegue”/ Argentina

descarga (1)With the overall creative direction of Walter Onorato and Diego Duprat, agency Almacen has released its new spot for Minicuotas Ribeiro. With a humorous tone, the piece shows people receiving the wrong gifts for Christmas and why nobody understands what is going on. The mystery is revealed at the end of the piece. The spot was directed by Nico Parodi. The piece features Argentinian mediatic Victoria Xipolitakis, one of the most controversial figures of recent times in that country. Google contributed to the campaign, which in addition is Youtube’s first unskippable Labs conducted in Argentina. In this online platform, users will find up to 8 different versions of the spot, strategically created and fixed to maximize views and convertions to the ribeiro.com.ar e-commerce site.

jpg_CTA-Latam_RegisterNowLuxury Goods and Services Marketing is going to be very well represented at our upcoming 7th Annual edition of the Portada LatAm Summit in Miami June 3 and 4. We just got the confirmation from 4 major players in the Latin American Luxury Goods and Services Sector:

Pedro Tabera, President and General Manager, Mercedes Benz Mexico

 

 
Alexis Thanasoulas, Managing Director Latin America, ZenithOptimedia Group

 


Stephanie Peña,
Regional Sales Director Americas, Longchamp and Javier Martinez Staines, Director General Editorial, Televisa have also confirmed their presence. More brand marketers will be confirmed in the next few days!

Tickets are going very fast, register here at the online promotion rate! 

The above brand marketers, agency executives and media companies will  dissect the main trends in Latin American luxury goods marketing and address questions including the below:
– What moves Latin Americans to acquire Luxury Goods and Services?
-Panregional vs. local Marketing, when is there tension, when do they complement each other?
– Paid Media and Content Marketing in the Luxury Sector

Other key brand marketers participating in #Portadalat include:
Denisse Guerra, Regional Marketing Director Latin America, The Estee Lauder Companies
Manuel Medina Riveroll, Marketing Director, Bayer Mexico
Jon Suarez Davis, VP Global Media Strategy, Kellogg Company
Ivan Ahedo, Marketing Director, Comex
Carlos Espíndola, Gerente eHub Latinoamérica, 3M
Maya Kosovalic, Digital and Media Communications Manager, L’Oreal
and many more!

We just published the agendas for #Portadalat the Latin Online Video Forum (June 3 in the morning) and the 7th Annual LatAm Advertising and Media Summit (June 3 afternoon and June 4).

Early Bird Tickets expire this Friday April 17! Register at Early Bird Price!

#Portadalat

The preliminary Agenda highlights include presentations by key brand marketers such as Jon Suarez Davis, VP Global Media Strategy, Kellogg Company and Denisse Guerra, Regional Marketing Director Latin America, The Estee Lauder Companies on the theme of “Building Brand Leadership in a disruptive World”; a sports marketing panel which will include Jorge Inda-Meza, Marketing Director at Corona Bud Light, Anheuser-Busch Inbev as well as several sessions with key global and Latin American players (e.g. Charlie Hunter Schyff, Head of Planning & Insights, Mobile Advertising, at Telefonica, and MediaMath Founder Erich Wasserman) who will analyze the opportunities that Ad-Technologies face in Latin America.

Early Bird Tickets expire this Friday April 17! Register at Early Bird Price!

New panels and presentations will be added soon, including:
Luxury Goods and Services in Latin America with major Brand Marketers who will provide an-depth analysis and actionable insights about this all-important sector
TV Everywhere’s  evolution in  Latin America
Latin Youtube Stars
and more…

Other major speakers that have confirmed their participation include:
Tomas Salvagni, Managing Director Sales and Marketing, GRUPO CLARIN
Fernando Monedero, Head of Digital for Latin America, MEDIAEDGE
Maya Kosovalic, Digital and Media Communications Manager, L’Oreal
Carlos Espíndola Gerente eHub Latinoamérica, 3M
Manuel Medina Riverroll , Marketing Director, Bayer Mexico
Ruben Leo Sarmiento, Marketing Director, Genomma Lab

Early Bird Tickets expire this Friday April 17! Register at Early Bird Price!

We just published the agendas for #Portadalat the Latin Online Video Forum (June 3 in the morning) and the 7th Annual LatAm Advertising and Media Summit (June 3 afternoon and June 4).

We have extended the Early Bird period until tomorrow Tuesday April 21 COB.  Make sure to register at Early Bird Price!

#Portadalat

The preliminary Agenda highlights include presentations by key brand marketers such as Jon Suarez Davis, VP Global Media Strategy, Kellogg Company and Denisse Guerra, Regional Marketing Director Latin America, The Estee Lauder Companies on the theme of “Building Brand Leadership in a disruptive World”; a sports marketing panel which will include Jorge Inda-Meza, Marketing Director at Corona Bud Light, Anheuser-Busch Inbev as well as several sessions with key global and Latin American players (e.g. Charlie Hunter Schyff, Head of Planning & Insights, Mobile Advertising, at Telefonica, and MediaMath Founder Erich Wasserman) who will analyze the opportunities that Ad-Technologies face in Latin America.

We have extended the Early Bird period until tomorrow Tuesday April 21 COB.  Make sure to register at Early Bird Price!

New panels and presentations will be added soon, including:
Luxury Goods and Services in Latin America with major Brand Marketers who will provide an-depth analysis and actionable insights about this all-important sector
TV Everywhere’s  evolution in  Latin America
Latin Youtube Stars
and more…

Other major speakers that have confirmed their participation include:
Tomas Salvagni, Managing Director Sales and Marketing, GRUPO CLARIN
Fernando Monedero, Head of Digital for Latin America, MEDIAEDGE
Maya Kosovalic, Digital and Media Communications Manager, L’Oreal
Carlos Espíndola Gerente eHub Latinoamérica, 3M
Manuel Medina Riverroll , Marketing Director, Bayer Mexico
Ruben Leo Sarmiento, Marketing Director, Genomma Lab

We have extended the Early Bird period until tomorrow Tuesday April 21 COB.  Make sure to register at Early Bird Price!

Programmatic buying for Time print; Adidas explains how to really align IT and marketing; and SMBs turn to social media marketing while luxury brands are wary.

Time screen shotTime’s print goes programmatic

Time Inc. has jumped on the programmatic bandwagon, allowing advertisers to buy print audience segments in an automated marketplace. The offering comes with post-campaign measurement powered by AdMeasure, and Target, via media agency Haworth, is executing a multi-title print ad campaign.

According to Folio, when advertisers browse Time’s private ad exchange, they now see a “print” tab that leads to the selection of audience segments. Available segments include Women, Men, Lifestyle, Luxury, Business/Finance and Rapid Scale, with audience sizes ranging in size from 5 million to 89 million readers.

Andy Blau, senior vice president and group general manager of ad sales at Time Inc., told Folio that ad sales reps are trained to sell programmatic, too, and they don’t mind if a deal is closed in front of a monitor instead of face-to-face.

Adidas CIO aligns with digital marketing

At Adidas Group, an alliance between tech and marketing let the sports gear manufacturer create a social-media powerhouse for the 2014 World Cup. In an interview with IDG News service, Adidas CIO Jan Brecht outlined the social media strategy, which included a newsroom shared with Google. “We played on every relevant social media platform, certainly not just Facebook and Twitter, but anything we can do to connect, and we didn’t just send messages, but we listened,” he said.

According to Brecht, his IT team acknowledged that it didn’t have the creativity to drive marketing, so the decision was made to fully integrate IT and marketing as the “digital experience team.” IT is even involved in agency selection, as a way to make sure that creative can be successfully and quickly implemented.

photo: Caroline Gagne
photo: Caroline Gagne

Miami digital companies could teach tech about creating a hub

With Miami already a media center, The “Hispanic Hollywood” already knows how to create a healthy ecosystem, media and entertainment executives said at a Miami Finance Forum event. The Miami Herald reports that folks from Cisneros Group, Telemundo, SapientNitro and Imagina USA explained how their community had gathered a critical mass of large and small players to build a thriving local industry.

Now, the city wants to create another hub for technology startups. Maybe – but it will take time. According to the Herald, “Building a tech hub is a long-term play that could take 10 or 20 years, said Bradley Harrison, founder of New York venture capital firm Scout Ventures. He’s bullish though; Scout recently located its first office outside New York in Miami and has made two investments, including one to Rokk3r Labs, a Miami Beach-based co-building company, that was announced at the event.

Social SMBs

Hispanic entrepreneurs are turning to social media to promote their small businesses, according to ABC/Bakersfield. They may start out small, handling their social media presences on their own. But they could turn into a new business source for local and/or regional agencies after that first growth spurt. Meanwhile, Pew Research found that Instagram is more popular with Latino and African American consumers, while Pinterest is more used by whites. However, Facebook still rocks it – seven out of 10 internet users Facebook.

The Guardian: Luxury brands should rethink ROI calculations

There’s a clear trend away from print media for luxury brands, but many top-tier marketers don’t get how to measure ROI. At a panel discussion hosted by The Guardian, marketers were advised to look at return on interaction.

Chris Moody, creative director at brand consultant Wolff Olins, said, “You are building a relationship with people who may continue to use your product for the next 25 years. Those interactions that you have, particularly through social streams that you can get through digital, are super valuable. It would be a shame not to invest in that.”

Click through to the story for many interesting campaign examples, plus more insights.

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WSJ. Magazine, The Wall Street Journal’s luxury lifestyle publication, recently announced the launch of WSJ. Magazine Brasil and WSJ Magazine América Latina. The two new editions, which will be published in Portuguese and Spanish respectively, will be published four times a year: October 2014, December 2014, April 2015 and July/August 2015. Portada interviewed Anthony Cenname, publisher of WSJ Magazine, about the recent launch.

descargaWSJ. Magazine, The Wall Street Journal’s luxury lifestyle publication, is launching WSJ. Magazine Brasil and WSJ. Magazine América Latina, printed in Portuguese and Spanish, respectively. These new editions will be published four times a year: October 2014, December 2014, April 2015 and July/August 2015 and will reach over 95,000 affluent readers in Argentina, Brazil, Chile, Colombia, Mexico and Panama. With the new Latin American magazine, Dow Jones, the publisher of The Wall Street Journal is chasing the growing Latin American luxury ad-category.

The editions will be inserted in eight of the most influential local newspapers, including El Mercurio, El Norte, El Tiempo, La Nación, La Prensa, Mural, Reforma and Valor Econômico. The content will also be available on WSJAmericas.com, WSJ.com/Brasil and WSJ.com. Led by WSJ. Magazine’s Editor-in-Chief Kristina O’Neill, both magazines will contain select content that will be translated by The Wall Street Journal Americas team led by Managing Editor Cristina Aby Azar in New York City. This is the first time in WSJ. Magazine’s history that local language editions will be available and distributed in newspapers other than The Wall Street Journal.

The Wall Street Journa Americas will only work on the translation of the content and not on editorial content. The Wall Street Journal Americas content is published within the business sections of 16 leading newspapers, 8 of which will distribute a Latin American edition of WSJ. Magazine.

As to what the new magazine circulation will be, an exact figure is not available yet, sources from WSJ. Magazine told Portada. However, The Latin American editions will be distributed to 95,000+ readers in the most affluent zip codes across 6 countries within the 8 most influential newspaper hosts such as Brazil’s Valor Econômico and Argentina’s La Nación.  In the U.S., according to figures from TWSJ with source of AAM (for the six months ending March 31, 2014), the editions are leading regarding net paid circulation, for both weekday and weekend.  The paid weekend circulation is 2,300,510.

CennameAnthony (preferred)Anthony Cenname, publisher of WSJ Magazine,talked to Portada about the recent launch:

Portada: What makes this particular moment the right one to launch The WSJ Magazine in Latam?

Anthony Cenname : “The luxury market in Latin America is booming, and businesses in both the luxury and travel space are expanding there. By launching these two new editions, we open up a whole new world of advertising opportunities for our clients who want to reach this ever-growing, elite demographic.”

 The luxury market in Latin America is booming, and businesses in both the luxury and travel space are expanding there.
 

Portada: Why is luxury the main ad category the magazine offers?

Anthony Cenname :”Luxury means different things to readers who are as affluent and powerful as those of WSJ. They have an affinity for fine quality across all aspects of their lives, be it real estate, fashion, jewelry, hotels or airlines. Having all their interests in one magazine engages and inspires them like no other publication can. This is equally appealing to luxury advertisers who are attracted to WSJ.’s multi-dimensionality.”

Portada: Over the years , How have you seen the Latam luxury ad category evolving?

Anthony Cenname :”Leading brands understand that it’s essential to be global, especially in Latin America’s luxury goods market which has grown an average of 15 percent a year over the past decade ( Sources: Boston Consulting Group; World Wealth Report, Capgemini/RBC Wealth Management 2013). In fact, Latin America’s high net worth individuals account for $8 trillion of the global total wealth. It’s extremely important for marketers reach these consumers.”

Leading brands understand that it’s essential to be global, especially in Latin America’s luxury goods market which has grown an average of 15 percent a year over the past decade.
 

Related Article: How U.S. Media brands cater to global Latin Audiences

 

What: Magazine publishers are addressing the U.S.-based upscale Latinas audience through English-language, luxury and lifestyle publications.
Why is it important: Marketers, advertisers and media companies are growing aware of the second-generation, young, educated bicultural and bilingual U.S.-based Latinas, because they’re a fast-growing population segment and they have more earning potential than their less acculturated counterparts, and so there is a clear need for contents that address their expectations and lifestyle in a more focused, multiplatform way.

While women’s luxury magazines targeting Latin American readers are quite profitable businesses, the jury is still out on whether this can be replicated for U.S.-based Latinas. Condé Nast, for instance, had a full-fledged unit based in Miami until seven years ago. It produced Spanish-language magazines such as Vogue and Glamour, intended for the U.S. Hispanic and Latin American markets. However, Condé Nast took the decision to move its headquarters to Mexico and so the U.S. Hispanic Spanish-language editions of these magazines are now imported from Mexico.

Hearst Magazines, on the other hand, announced that Cosmo for Latinas will increase its frequency to five times a year and as of this month (October) will be joined by a new Latina-focused supplement, Woman’s Day for Latinas.

According to Adweek, “ad spending in Hispanic-interest magazines grew 18 percent in 2011, per Media Economics Group, versus a 3 percent decline in consumer magazines in general. But other than the 500,000-circulation Cosmo Latina, most of those magazines are Spanish-language, creating a wide opening for outlets like Cosmo Latina that give advertisers a way to reach an important audience while staying in the comfort zone of English.”

An English-language product needs to be compelling enough to pull in acculturated Hispanics who already consume mainstream media, not to mention the advertisers who are already reaching them through those means.

–Emma Bazilian, media reporter, Adweek

Also, journalist Alisa Valdes has announced the upcoming launch of a new lifestyle, English-language magazine focusing on upscale Hispanic women’s interests. Rica (“Rich”) is being funded through Valdes’ own production company and will be published once a month, online only (for now). She has already enlisted several freelance contributors, including comedian Rick Najera and author Reyna Grande.

Says Adweek’s Emma Bazilian that “a recent report from Nielsen called wealthy Hispanics ‘the most influential segment since the baby boomers’, controlling $4 out of every $10 spent by the demographic, while the U.S. Census Bureau reported that the percentage of Latinas earning over $50,000 has grown more than 200 percent over the past 10 years.” Thus, Valdes hopes that focusing on upscale Hispanics will also help attract luxury advertisers to the site.

 

 

What: Time Inc. will soon be inking a deal to purchase American Express’ luxury publications.
Why is it important: Banking regulations discourage licensed banks from participating in non-financial businesses, which is the reason behind AmEx’s magazines forthcoming sale.

According to sources such as AdWeek and The Wall Street Journal, and although neither side has yet publicly acknowledged the impending sale, Time Inc. may be close to a deal to buy American Express’ luxury publishing division.

Negotiations reportedly began to take place after banking regulations –that limit American Express ability to get involved in non-banking activities– required that, being AmEx a bank holding company, exited noncore businesses, even if the publishing division was a small business given the company’s size. Rumors have escalated after the arrival, last week, of Time Inc.’s new CEO, Joe Ripp.

The five high-end magazines Time Inc. would be acquiring are Food & Wine, Travel + Leisure, Departures, Executive Travel and Black Ink. It is still not clear how much would Time pay for the titles. Adding AmEx chic magazines to Time’s current 130 titles (Time, Fortune, Life, Golf Magazine, InStyle, People, Sports Illustrated, etc.) would further allow a more targeted communication towards upscale consumers.

It is expected, however, that Time Warner Inc., Time Inc.’s parent company, relaunches the publishing unit as a stand-alone company in the near future.

WSJ’s William Launder highlights the fact that Time and American Express have a long-standing relationship, because due to an arrangement dating to the early 1990s, Time handles functions like subscription fulfillment and other back-office services on behalf of American Express.

Join us at PORTADA Mexico!

It stands to reason that the production and consumption of luxury goods are the first to be affected when an economic crisis arises, and are also those poised to benefit the most during periods of economic growth.

However, various analysts and industry executives claim that people tend to keep spending on luxury goods regardless, and in the case of Latin America, the region’s economic growth is not the only factor responsible for the growth of this luxury market.

For many specialists, one of the more important reasons behind the growth of luxury goods has to do with the growing presence of brands and their concern for establishing themselves in the region.

For Gabriela Guerschanik, founder of the Association of Luxury Brands in Chile, Louis Vuitton is an example of brands’ concern for establishing their presence in Latin America. The French brand is already available in the region, with namesake stores in Brazil, Mexico, Chile, Colombia, Argentina, Dominican Republic and Panama. Another example is Nissan’s bet on Mexico, whose Infinity brand is currently present in the market. “We decided to bring the brand there based on Nissan’s strong position in the Mexican market,” said Omar Zúñiga, Nissan’s country Marketing Manager.

“More brands are coming to Mexico. Before, people would go to other countries to buy them. Now they can easily find them here,” said Ruth García, Director of the Communications and Marketing Department of the Tecnológico de Monterrey’s Puebla campus, in an interview with CNN Expansión.

Another reason behind the sustained growth of the luxury goods market in Latin America has been access to credit for most of the middle class, as well as an increase in the use of credit cards and advances in banking. According to the Altagama Foundation, the market for luxury goods will grow between 6 and 7% worldwide in 2012, driven by China’s growth.

In the Americas, the percentage of growth will be between 5 and 7%, a relatively high figure compared to forecasted growth of 2 to 4% for Europe and 0 to 2% for Japan. Focusing specifically on Latin America, recent studies conducted by the Boston Consulting Group on the luxury goods market found that in the past 10 years, the market for luxury goods in Latin America grew at average rate of 15 % a year.

Javier Montanaro, Sales Director for the Southern Cone at US Media Consulting, says that “sales of luxury goods in Brazil are estimated to reach $12 billion in 2011, an increase of 33 percent compared with 2010. Argentina is not far behind, having moved 230 million euros worth of luxury goods in 2011. Given these figures, it is no surprise that Sephora plans to open 12 to 13 stores in Latin America and that Salvatore Ferragamo has also announced expansion plans in the region.”

Margareth Henríquez, President of Maison Krug, a producer of high-end wines and Champagnes, says that “we must be optimistic about Latin America.” She adds that the most important markets in the region for her brand are Brazil and Mexico, and the company believes it should place a larger bet on them.

According to data provided by Carlos Ferreirinha, Brazilian creator of the MBA in Luxury Management at the Armando Alvares Penteado Foundation (FAAP) in Sao Paulo, Mexico and Brazil represent 50% of the market for luxury goods in Latin America. They are followed by Argentina and Venezuela, which are also high-spending markets, but have not grown as much as Brazil and Mexico.

Chile’s luxury market has shown sustained growth in recent years, and Colombia and Peru have been a “surprise,” according to the analyst, in terms of the percentage of growth posted in those countries’ luxury markets. But in order to address the luxury market in Latin America, it’s not enough to be up on European country trends and then adapt them to the Latin American situation and context. Rather, it involves creating new categories of analysis to understand the functioning of the luxury market in this region.

According to Argentinian consultant Trendsity, the company’s Trends Observatory found that the region’s current luxury market is leading to reconfigurations where the “lines are less blurred and univocal… [and are] traversed by the common factor of ambiguity”.

Mariela Mociulsky, Director of Trendsity, tells Portada that “luxury [goods] themselves have come a long way since the seventies, when only a closed circle had access to the Premium world. The 80’s brought more accessible luxuries, which for some meant the end of quality and the beginning of the reign and showing off of brands. Today we can say that there has been a return to the idea of the product, and brands are trying to recover their roots that had been “forgotten” in recent decades. There is a deep understanding that products need to tell a story, to connect with people’s emotions and aspirations.”

It is within this context that new trends in the Latin American luxury market are being conceptualized as “new democratized luxury” or “aspirational luxury,” as opposed to the definition of “traditional” luxury that continues to work in Europe and is characteristic of earlier decades.

According to Trendsity’s Trend Observatory, under the concept of traditional luxury, “brands that build a desire for luxury are based on an iconic identity, supported by consistent communication in all its facets: superior materials, sophisticated aesthetic, exclusive points of sales, and an almost personalized level of customer service. This is how Premium consumption is able to pit mass consumer goods against exclusive goods: a sumptuary purchase is one that exceeds basic or immediate needs. The brand is chosen on the basis of what it reflects, as a projection of its individuality, uniqueness and originality.”

Today, there is the concept of “affordable premium” goods. “Before, luxury conveyed an image of quality, whereas now the emphasis is more on communicating a sense of looking for expression, individuality and inner well-being,” states Mociulsky.

Presently in Latin America, “sought after products are those that are in the higher end of the market yet also have an accessible price tag, such as Absolute Vodka or the iPad. Renowned designers like Elber Elbaz, Roberto Cavalli, Sonia Rykiel, Viktor & Rolf, Comme des Garçons, Matthew Williamson and Jimmy Choo have launched “low cost” collections for H&M with explosive success, similar to that achieved by Stella McCartney when she launched a line with Adidas, or by prominent artist Damien Hirst when he launched a limited edition of Levi’s jeans,” adds Mociulsky.

Guerschanik, of Chile’s Luxury Brands Foundation, also thinks luxury is expanding toward the middle markets. According to her, there are three types of luxuries: absolute luxury, accessible to 5% of the population that consumes luxury products on a daily basis; intermediate luxury, where spending on luxury goods is frequent; and accessible luxury, where luxury purchases are made about five times a year and are tied to a strong aspirational factor.

“This is the fastest growing [luxury segment] in Latin America,” said Guerschanik. “Much of the growth is generated by this aspirational segment that is accessing luxury”.

At the 2nd Mexico Luxury Forum organized by Grupo Expansión and Life & Style magazine, executives from Ermenegildo Zegna, Montblanc, El Palacio de Hierro, and gourmet restaurant Pujol, said that Mexican consumers of luxury goods are not only looking for exclusive products, but also “a style that sets them apart from the other brands.”

Carlos Salcido, Marketing Director at El Palacio de Hierro, said at the Forum: “We do not see ourselves as a distributor of designer pieces, but as a standalone brand. A brand that sells style, that doesn’t put a label on their consumers, and that speaks to the “me” in people.”

Jorge Puentes, Director of Montblanc Mexico, said that consumers are always looking for different styles and collections with a strong aspirational value.

Read the second part of the article next week in Portada!

Translation: Candice Carmel

Latin America has become one of the main growth engines for major Luxury Goods and Services companies. That is why we have put together a panel of star luxury goods and services marketers at our upcoming Latam Advertising and Media Summit in Miami’s Perry South Beach Hotel on June 6th and 7th. Olga Martinez, Marketing and Innovation Director, Latin America and Caribbean, at Diageo, Rudolf Lang, Managing Director at Chopard Marketing Services, Inc. and Luis Ortuzar, Panregional Marketing Director at Christian Dior will explain how and why luxury companies are placing major bets on Latam growth. Carlos Otero, Business Development Director at Euromonitor International will provide the research perspective. The panel will be moderated by Sergio Carrera, General Manager USA & Puerto Rico, at Televisa Publishing.

Tickets for the Latam Summit are going fast. Get your ticket here!

Latin America has become one of the main growth engines for major Luxury Goods and Services companies. That is why we have put together a panel of star luxury goods and services marketers at our upcoming Latam Advertising and Media Summit in Miami’s Perry South Beach Hotel on June 6th and 7th. Olga Martinez, Marketing and Innovation Director, Latin America and Caribbean, at Diageo, Rudolf Lang, Managing Director at Chopard Marketing Services, Inc. and Luis Ortuzar, Panregional Marketing Director at Christian Dior will explain how and why luxury companies are placing major bets on Latam growth. Carlos Otero, Business Development Director at Euromonitor International will provide the research perspective. The panel will be moderated by Sergio Carrera, General Manager USA & Puerto Rico, at Televisa Publishing.

Tickets for the Latam Summit are going fast. Get your ticket here!

Fueradeserie.com is the new site aimed at a high purchasing power and consumption audience, related to luxury goods.

Fueradeserie.com, an extension of expansion.com is presented as a reference site for the luxury sector for executives. It offers the latest in the world of fashion, accessories, entertainment, culture, technology, travel and destinations. These subjects are completed with interviews of renowned personalities in their respective professional field. The site is a digital version of the weekly supplement Fuera de Serie to the business and financial daily Expansion, which has been 12 years and 300 editions on the market.

Fueradeserie.com was launched with a great event, led by its president Carmen Castilla and deputy director of El Mundo and editorial director of the magazines of the group Miguel Ángel Mellado

Fueradeserie.com is the new site aimed at a high purchasing power and consumption audience, related to luxury goods.

Fueradeserie.com, an extension of expansion.com is presented as a reference site for the luxury sector for executives. It offers the latest in the world of fashion, accessories, entertainment, culture, technology, travel and destinations. These subjects are completed with interviews of renowned personalities in their respective professional field. The site is a digital version of the weekly supplement Fuera de Serie to the business and financial daily Expansion, which has been 12 years and 300 editions on the market.

Fueradeserie.com was launched with a great event, led by its president Carmen Castilla and deputy director of El Mundo and editorial director of the magazines of the group Miguel Ángel Mellado

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