Business of Fashion covers the Savigny Luxury Index (SLI) which rose for the fourth consecutive month in January, gaining almost 4%. This highlights that optimism has returned to the luxury sector, “with broker forecasts for growth being corrected upwards for the first time in years, backed by a string of strong results announcements and boosted by one of the largest corporate deals in the sector’s history”. 2017 is looking more positive due to a recovery in Chinese consumer activity, Trump’s promise of lower taxes on wealthy Americans, and higher oil prices boosting Middle East and Russian economies. Global tourist spending has continued to grow worldwide in December 2016, and Exane BNP Paribas estimates that sector sales could rise by as much as 5% in the first half of the year. The watch sector is also seeing a rebound, reflected in Richemont’s strong third quarter results last month.
MarketingWeek writes on what Brexit means for brands that “trade on their British heritage and use it as a key branding and marketing tool”. The piece focusses on a report published by The Partners, a marketing agency, claiming that “British brands are experiencing an identity crisis” following the EU referendum, which appeared to be a reaction against Britain’s “socially liberal, multicultural and confident” identity. Nevertheless, among 1000 UK adults surveyed for the report, 42% believed that brands should emphasise their British heritage following Brexit to appeal to more global consumers. According to Sam Evans, associate strategist at The Partners, brands can “take advantage of the contradictions at the heart of British identity in order to redefine Britishness on their own terms following Brexit”. Cath Kidston and Harrods, for example, have been particularly successful following the Brexit vote as international customers are increasingly attracted by Brand Britain.
The Independent writes that companies have “continued to exploit the…iconic cultural brand” of the Maasai people of Kenya and Tanzania, in order to “infuse a patina of exoticism to their products and increase sales”. They are not compensated for items sold by luxury brands despite helping to sell billions worth of goods worldwide, according to Light Years IP, a Washington DC non-profit organisation. For example, as part of its spring / summer men’s collection in 2012, Louis Vuitton showcased items inspired by the Maasai Shuka, a traditional blanket with colourful shades. Given that nearly 80% of the Maasai people in Kenya and Tanzania live below the poverty line, the Maasai Intellectual Property Initiative (MIPI) has been created to redistribute funds more fairly to the Maasai people by challenging companies imitating the Maasai style without a licensing arrangement, and encouraging them to obtain licenses.
Luxuria 