France Australie Webzine - Retail & Luxury Issue - Nov 14 by French-Australian Chamber

Australie FRANCE

A p ub lic a t ion b y t he French- A u s tr alian Chambe r of Commer ce & In d u st r y

N ov embe r 2 0 1 4

RETAIL & LUXURY

Editorial

Dear readers, The French-Australian Chamber of Commerce & Industry is proud to present this new issue of France Australie webzine highlighting “Retail & Luxury in Australia”, an industry among the most dynamic in the country. The luxury industry has gone from strength to strength over the past five years. Australia’s taste for fashion and luxuries has prompted industry players to scour all corners of the world for the right fusion of fashion and luxury to cater for the ever-changing needs of consumers. As a result of this, the industry in Australia has grown at a double-digit annualised rate of 11.1% over the last five years to total $1.4 billion. Heritage luxury powerhouses like Louis Vuitton, Hermes and Chanel have taken this opportunity to expand over the past five years, while experimental and emerging labels have grown through the assistance of luxury boutique stores. Luxury & retail in Australia are also benefiting from international tourism and Asian tourists soaring expenditure. Around 30% of industry revenue is attributed to inbound tourists, especially from the increasingly sophisticated middle market in Asia. In 2013-14 alone, industry revenue is anticipated to grow 15.9% as burgeoning tourists from China and the rest of Asia provide ample growth for retailers. With one of the wealthiest populations among the western countries (average income 65,000 USD per capita) and a positive and dynamic economic environment (annual growth this year should be around 3.1%); Luxury Retailing in Australia is set to grow again in the next 5 years at an average annual rate of 9.2% until 2019. This France Australie will try to enhance our knowledge on the Australian luxury & retail trends and opportunities. The concrete insight of our contributors, experts in their domain, gives added-value information on the industry. Our special thanks to Melinda O’Rourke, who will introduce the Chamber’s webzine with a foreword over viewing the sector today, and to the Members and the Companies who contributed to this issue. This issue addresses the attractiveness of the Australian market for international brands, how French brands approach Australia and the new luxury and retail trends in Australia, highlighting the future opportunities and perspectives of this particular industry. Bonne lecture,

Olivier Deschang VIC Chapter Manager & National Coordinator The French-Australian Chamber of Commerce and Industry

RETAIL & LUXURY

rance-Australie is a publication of the FrenchAustralian Chamber of Commerce & Industry. It is distributed to all member organisations Australiawide, French and Australia Government officials, EU representatives in Australian the French Chambers of Commerce in the Asia Pacific region and the CCI network in France. The French-Australian Chamber of Commerce & Industry was founded in 1899. At the time, Australia's trade relations with France were almost solely dependent on the export of wool. More than a century later, this relationship now includes a host of many other industries. The French-Australian Chamber is an important not-for-profit organisation governed by 15 Board of Directors and comprising more than 750 members. Our head office is based in Sydney and we also have four other Chapters and offices in Melbourne, Brisbane, Perth and Adelaide. The Chamber is affiliated to the CCI France International, a worldwide network of 112 French Chanbers operating in 82 countries. The Chamber's main mission is to promote our members and support French companies succeed in Australia through information, networking and business support services.

Our team Olivier DESCHANG VIC Chapter Manager & National Coordinator

Claire KASSES NSW Chapter Manager

Gemma KARAOUI NSW Chapter - Membership & Communication Manager

Claire DUPRE QLD Chapter Coordinator

Bertrand CAUVIN Business Development & Trade Coordinator

Lucille SALVY Business Development & Trade Assistant

Antoine GOBLOT Membership & Business Development Assistant

Guillaume MAUBOUSSIN My Australian Job Coordinator

Charlotte DUBRANA Events & Partnership Coordinator

Kevin QUEMARREC Graphic Designer

DISCOVER OUR PREVIOUS FRANCE-AUSTRALIE PUBLICATIONS

Alexis dress by the Award Winning Australian Fashion Design NicolangĂŤla SoirĂŠe de Gala 2014 by The French-Australian Chamber of Commerce & Industry

Australie FRANCE

A p u b lic a tio n b y th e Fre n c h - Australian Chamber of Commerce & I ndust r y

November 2014

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Patron Members

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Contents

p.08

Editorial

Patron Members

Foreword - Melinda O’Rourke - MO Luxury

Thank you to our Contributors

Overview of the Luxury & Retail Industry in Australia

p.14

Attractiveness of the Australian Market for International Brands

p.16

• Longchamp • The world largest beauty retailer to open its first store in Sydney • Australian designed, swiss made watch

How French Brands Approach Australia

• Australia’s potential as a luxury market for a French luxury brand

• Wine & Food Focus

New Retail & Luxury Trends

• Perspectives & Insight

• New trends in luxury

References

Newsroom & Events

Calendar of Events

Membership

Business Services

p.26

p.34

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Foreword Luxury at its core is about storytelling, a desire and unwavering need to imbue an otherwise inanimate and unremarkable item with a heart and soul. While this quality of building desire around products is universally sought after in other marketplaces, it is only harnessed and achieved to the highest degree by the luxury sector. It is this storytelling of sorts, which is most interesting when the protagonist itself moves away from a carefully crafted shoe, designer or brand and turns to the notion of luxury itself. As a distinctly subjective concept, the definition of luxury remains a widely debated notion. However, whether it is the element of uniqueness, heritage, provenance or the development of iconic pieces, the luxury market and its products remain highly coveted, incredibly successful and ever growing. With globalisationthe allure and ease of travel beckoned and exposure to new cultures, brands and traditions enriched the education of these travellers in unimaginable ways. Luxury Maisons and products that were previously unattainable and which potential consumers were unaware of were nowavailable and coveted. In Australia the 1980s heralded the arrival of the first luxury temple as Louis Vuitton made its way from France to Sydney’s CBD. This was the catalyst for other luxury brands (mainly French and Italian) to follow suit. Since then the Australian Luxury Market has proven resilient and in the past few years has continued to stay relatively on par with global luxury growth, as was seen in the results presented in the recent MO Report release. The purpose of this report is to estimate the value of the Australian personal luxury goods sector in the categories of fashion apparel, fashion accessories, watches and fine jewellery (hard luxury). Now in its fourth year of release the report includes 45 brands. Now readily available through knowledge and awareness, yet paradoxically unattainable for the masses, the demand for luxury in Australia has remained steadyover the last year. According to Bain & Company, global sales of personal luxury goods increased 6.5% in 2013 (estimate) compared with 2012 and Australia’s estimate growth in 2013 was 7.8%, the only country with stronger growth year on year is Japan with 12% growth on the prior year. The results for the year 2013 indicate there has been an increase in revenues across all categories with the exception of apparel. The fashion accessories segment continues dominate in revenue and is consistent with emerging or relatively young markets to luxury. This is due to the fact that accessories provide a range of purchasing and price options for the ‘aspiring’ through to ‘rising middle class’ as well as ‘old money’ purchasers. Furthermore, there is an increase in the number of younger customers purchasing in this sector; the greatest growth is in the under 29 year to 39 years of age representing around 44% of the total consumer age demographic. As brands continue to extend their range of products and prices offered, it is clear that consumption of luxury goods is no longer only reserved for the wealthy elite especially since the middle class continues to enjoy a growing disposable income and has now become an important sector for providers of luxury goods. The male segment is becoming increasingly important for brands, with focused design, enhanced product offerings and more campaigns being targeted to this group. This has been evident across both international and domestic shopping experiences. The result is cause and effect in nature given that the major tourist market for Australia is China which also has a relatively higher male to female population ratio. Despite many assumptions that the luxury market exists purely on tourist dollars, the mix is actually 70-80% of Australian domestic consumers and 20-30% from tourists. Australians are more knowledgeable and therefore, becoming purveyors of luxury goods. However, it is important to also note that local spending includes Asian residents who reside both in their home country and in Australia. These residents are still considered ‘local’ as they have residence in Australia. As the global marketplace becomes more interconnected the key drivers of growth in the Australian luxury market have become apparent. Factors such as increased disposable income, a more educated population, increased exposure to multiculturalism and a global cultural shift are key drivers, as isheightened access to luxury products through additional points of sale and enhanced ranges. Adding to this is tourism and the shopping experience, a vital component of customer satisfaction and enhanced usage of Strategic Client Relationship Management processes are contributing factors to Australian luxury market growth. With an estimated revenue growth of 7.8% for all categories in Australia’s luxury sector and 11.1% excluding the beauty category, it is certainly a positive story in Australia when compared to international markets for personal luxury goods sales. Through its findings this year’s MO Report concluded that personal luxury goods sales in Australia amounted to

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approximately AUD$2.7B in 2013. Sales in the sector are forecast to continue in the range of high single or low double digit for 2014 due to the number of new points of distribution in 2014, enhanced footprints for a selection of existing brands, increased consumer confidence and augmented tourism figures. Whilst growth in the Australian Luxury Market continues, the channels of distribution are clustered in key locations catering to the hubs of potential luxury consumers. Unsurprisingly Sydney and Melbourne are leading the way and Brisbane is emerging as a new luxury city, especially in 2014 with its monobrand offering pending to include Cartier and Bulgari among other iconic names. Perth also continues to show more contained growth with a number of brands yet to enter this market, weighing up the costs of doing business in this isolated yet ‘disposable income rich’ capital city. Twenty eight years after Australia’s first taste of luxury, the nation now hosts a multitude of luxury and premium freestanding boutiques on either notable CBD streets or within stylised malls that have dedicated luxury precincts. Several luxury brands entered the Australian market (at different locations) in 2013. These brands either entered as first timers to the Australian market or were existing brands expanding their presence. In the past year Melbourne has also witnessed positive change, with the relocation of the Chanel boutique to a space three times the size of its former Collins Street home (where it was based since November 2001), now the old Scientology Building on the corner of Flinders Lane and Russell Street. Similarly Sydney saw the opening of Dior’s incredible flagship salon on the corner of King and Castlereagh Streets. This year Hermès relocated to a 420sqm space across two levels on the corner of Collins and Exhibition Street providing more shelves for Birkin handbags, apparel and the stunning porcelain collection. In another move, he intertwined Cs have made way for the capital D. Dior will be opening its Melbourne flagship in the former home of Chanel, with an expanded footprint and completely new look. All this in time to make this year’s Christmas wish list a reality! Another luxury arrival which has been speculated for many years and now sees the rumour giving way to reality is the opening of Sephora (the largest global beauty retailer, owned by the LVMH Group) who will fling open its colourful doors in Pitt Street in November. This ensures that Sydney fans will have their share of lip glosses and eye shadows in time for the party season! However, all that glistens is not gold and Luxury Brand Managers need to consider varying their offerings to cater for diverse clients (the increase in younger, male and a range of consumers from North and South East Asia) who have differing expectations. In addition, distribution channel strategies must be adapted (retail and management concession, versus wholesale) for the Australian luxury market to continue to grow sustainably. As the personal luxury goods sector continues to grow both organically and through new points of distribution, Australia is being looked at more favourably by international brands as an opportunity to realise additional positive growth within the Asia Pacific and Oceania regions. Although Australia is still a relatively new luxury player within the ‘Asia Pacific’ (South Asia and Oceania) region, the strong growth of luxury in emerging markets of both north and south east Asia has been rapid and positive. This gives Australia a strong position to really leverage its luxury brand presence within this geography. The past, present and future of luxury in Australia sees the market maturing nicely, just like a robust glass of red from the Barossa Valley, with more oxygen the Australian luxury market is opening up beautifully and indeed, tends to prompt conversations in the halls of luxury headquarters in the Northern Hemisphere for the right reasons, rather than an incredulous?? ‘qu’est ce que c’est?’! While the spectacle of these illustrious brands draws the gaze and desire of many, at the core of their identity and development is the ability to communicate their true provenance to the Australian Luxury Client, in the Australian Marketplace. This challenge to date has been met with great success by French brands and as a society Australia and its luxury client have resonated with the brands. This has opened the door for the future growth and opportunity in an ever captivating and nonpareil sector of retail.

Melinda O’Rourke Managing Director

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Thank you to our Contributors

Melinda O’Rourke is the founder and director of MO Luxury, a dynamic management consulting firm specialising in luxury brands and services with offices in Sydney and Hong Kong. Prior to founding MO Luxury Melinda was Country Manager of Prada Australia and New Zealand, General Manager for Chanel Australia and Fashion Manager for Yves Saint Laurent Couture. Melinda’s breadth of experience gives her an intimate understanding of the luxury industry that goes largely unrivalled in Australia and the region.

For Jean Cassegrain, Longchamp is a way of life. Founded by his grandfather in 1948, he never considered doing anything other than becoming an active member of the family firm. Before doing so, however, he acquired a solid grounding in business. He is a graduate of the prestigious Ecole Supérieure de Commerce in Paris and spent a year at the French Trade Commission in New York and two-and-a-half-year career in management consultancy before joining Longchamp. As his responsibilities gradually increased, Jean Cassegrain became CEO of the house, taking over the day-today running of Longchamp from his father who, as President, continues to be actively involved in the company. Jean Cassegrain was made a Knight of the National Order de la Légion d’Honneur in January 2012.

Christophe Hoppé is the founder of Bausele, the first ever Swiss Made Australian watch company. He took his first job in the watch-making industry as Group CFO for TechnoMarine and Swatch Group based in Geneva – Switzerland. He then started his own company in Hong Kong and Switzerland, manufacturing watch components for customers in Switzerland. But soon after the entrepreneurial bug had bitten and, after moving to Sydney in January 2010, Christophe wanted to develop his own brand based on an original concept and BAUSELE was born!

Fiona Novak, Country Manager Sephora Australia LVMH.

Philip Corne began his career with Louis Vuitton in 1988 as Financial Controller for the Australian operation. In 1992, he was appointed Finance Director for Louis Vuitton Australia and New Zealand. In 1998, Philip was transferred to New York as Vice President Finance – Louis Vuitton Americas, responsible for the financial management of the Louis Vuitton business in North and South America. A year later in 1999 he was promoted to Senior Vice President – Louis Vuitton Americas, then in August 2000, assumed the role of Senior Vice President and CFO for the LVMH Fashion Group Americas. In 2003, Philip’s career path comes full circle as he assumes his new position as Chief Executive Officer of Louis Vuitton Oceania. In this role, he has responsibility for Louis Vuitton’s Australian and New Zealand operations which comprises a network of 13 stores and employing over 300 retail and administrative staff.

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Since 1996, when she founded Table Act Australia, Carline Bouilhet-Christofle has been the exclusive importer and distributor for luxury tabletop brands such as Christofle silver, Saint Louis crystal and Bernardaud porcelaine. Before developing her business activities in Australia, Carline was a Professor of Art History and Gallery Curator in Alaska. In addition to her distribution and retail activities, Carline is also a published author, with a third novel due out later this year.

Born in 1981, Jonathan Alphandery graduated with a degree in Management from ISG Paris in 2006. Then, Jonathan has worked in finance at UI Gestion and Financiere Centuria from 2006 and 2009 before moving to Sydney, NSW. In 2012, he opened the 1st Ladurée store at Westfield Sydney.

Arnaud Husser is the managing director and founder of Cosmétiques de France Australia. After completing his Master’s Degree in International Relations at La Sorbonne, he began his career within the pharmaceutical industry before moving onto the dermo-cosmetic business. In 2011, Arnaud Husser established Cosmétiques de France Australia, a company aiming to bring an assortment of French dermocosmétiques products to Australian women, which is also the proud and exclusive distributor of brands such as Bioderma, Nuxe and Uriage.

Elisabeth started Drysdale Communications in 2001 when she won the prestigious role as Director of the Champagne Bureau, Australia representing the Comité Champagne (CIVC) in Champagne. In 2011, Elisabeth was presented with the St Vincent’s Award presented by the Comité Champagne for her service to the Champagne region and in 2014 she was inducted as Dame Chevalier of the l’Ordre des Coteaux de Champagne.

Edwina McCann has been the editor-in-chief of Vogue Australia since 2012 and is responsible for the Vogue brand across print, digital and social media platforms. After starting her career as a fashion assistant at Vogue, Edwina moved onto fashion-related editorships at The Australian, WISH and Grazia before joining Harper’s Bazaar Australia as editor-inchief. Edwina joined the UTS Business School Advisory Board in 2014.

Brett Phillips is the Founder and CEO of 3 Deep, a luxury branding and communications agency with offices in Melbourne, Sydney and New York. Over the past 18 years Brett has demonstrated his skills as a creative and strategic leader to establish 3 Deep as one of the most innovative and creative businesses in the world.

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Overview THE LUXURY & RETAIL INDUSTRY IN AUSTRALIA

LUXURY INDUSTRY REVENUE

PROFIT

$1.4bn $101.0m

ANNUAL GROWTH 09-14

ANNUAL GROWTH 14-19

11.1%

9.2%

PRODUCT & SERVICE SEGMENTATION

LUXURY WATCHES & JEWELLERY

LUXURY CLOTHING & FOOTWEAR

LUXURY LEATHER GOODS & ACCESSORIES

17%

50%

33%

CONSUMER’S BREAK-DOWN LOCAL RESIDENT

60 70% 30 40% TOURIST

CURRENT MARKET CHARACTERISTIC

million

500

POINTS OF SALE TO PURCHASE

FOCUS CHINA

500,000

CHINESE VISITORS EVERY YEAR

SPEND

$4.0 Billion DURING THEIR STAY

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BILLIONAIRES

ONLINE SHOPPING REVENUE

PROFIT

ANNUAL GROWTH 09-14

ANNUAL GROWTH 14-19

24.1%

9.9%

$12.4bn $481.7m KEY STATISTIC

LARGEST ECONOMY

HIGHEST CONCENTRATION OF HNWI’S IN THE WORLD

LARGEST LUXURY MARKET

AUSTRALIAN CONSUMERS SPENDING IN LUXURY GOODS

YEAR OF CONTINUOUS GROWTH

$64.157 GDP PER CAPITA INTERNATIONAL RETAILER COUNTRY OF ORIGIN

BILLION PER ANNUM

US - 38%

8.6% increase in the number of points of sale for luxury brands

FINLAND - 3%

CANADA - 13% GERMANY - 3% ISRAEL - 3% JAPAN - 6% SPAIN - 3% SOUTH KOREA - 3% SWEDEN - 6% UK - 22% RETAIL & LUXURY 15

Attractiveness of the Australian market for International Brands Jean Cassegrain CEO

How long has Longchamp been operating in Australia? How would you consider the Australian market for Longchamp?

The Longchamp products have been distributed in Australia, at least since the seventies by our partner Hunt Leather. The Australian market has changed a lot since then, in particular under the influence of Asian residents and tourists. It has grown significantly in the past few years.

Longchamp is known for its best-selling folding nylon Le Pliagehandbags and its affordable price point, while its competitors overinflate their prices. Why do you adopt this brand position? Does it have good results in Australia?

Our policy is based on product and quality first. The price of our products simply reflects their manufacturing cost, the number of hours spent to manufacture them, the quality of the leathers that we use. It is not an artificially inflated marketing price. We are known for our competitiveness and are proud to offer the best value there is to our customers. Yes, this policy has good results in Australia, as elsewhere. Customers become more and more product knowledgeable and are sensible.

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Longchamp is one of the last-remaining independent family-owned leather goods brands in France with an international presence. As a result, it experienced difficulties to find good locations for its new stores over the world and especially in China where new malls are constantly being built. Is this the reason why, in Australia, Longchamp leather, accessories and luggage collection are only distributed through the retail spaces of Hunt Leather? In your opinion, does Longchampâ&#x20AC;&#x2122;s lack visibility by using this distribution network and how can it be improved? In addition to the Hunt Leather stores, our products are now distributed in Australia through three Longchamp boutiques (Sydney, Melbourne and Brisbane) operated by the Hunt family. Our products are also sold in select David Jones stores. There is always room for improvement, but I believe that we now have an adequate presence and visibility on the market,

How would you consider Longchamp’s international growth? What is the key strategy to continue the growth of your company in Asia Pacific?

Asia-Pacific has been the main engine of our growth in the past few years. In addition to China, our brand is very successful in Thailand, Singapore, Indonesia, Malaysia. We want to continue investing in these regions and continue working at increasing our visibility through communications and stores.

“Customers become more and more product knowledgeable and are sensible. ”

There has been a resurgence of personalisation. Your brand is revisiting the traditions of the craftsman in an effort to reconnect with its customers. In your opinion what defines ultimate luxury? How does Longchamp deal with this next level trend? Since 2003 we have been offering a service on our website allowing customers to order a personalized version of our iconic Pliage bag. Since last year we are also been offering this personalization service for the leather version of Le Pliage. The success of these offers keeps on growing. Personalization allows the customer to have a unique bag, but at the same time to benefit from the support and reliability of a brand that they trust. It is quite fascinating to have the customers interact directly with the artisans of our Segré atelier through the web. They design their bag, the order arrives directly on the workshop’s floor, the bag is made for them and is then shipped directly to their home. More and more customers want to know what is behind the products they are purchasing and I believe that they are happy to be engaged in the manufacturing process.

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Attractiveness of the Australian market for International Brands AUSTRALIAN DESIGNED SWISS MADE WATCH Christophe Hoppé Founder

Founded in 2011, Bausele is the only premium watch to be designed in Australia and made in Switzerland. Designed by a French founder, Christophe Hoppe, every watch contains a small sample of Australia, beach sand, red earth and opal in its crown. Could you tell us a bit more about how this idea came into your mind and how you made it happen?

Bausele (which stands for Beyond AUStralian ELEments) was founded with the aim to combine the fundamental energy and diversity of Australian elements, innovation and style into a unique Australian designed, Swiss Made watch. A Bausele watch allows the customer to always keep a piece of Australia with them, wherever life takes them. As you mentioned, the unique timepieces feature a hollow, oversized crown with a viewing window that reveals a tiny fragment of Australian elements. And how did I make my idea happen? You can’t do anything alone, so first you need to find good partners with different expertise that will help you implement those ideas. Then you need a lot of persuasion, passion, commitment and work again and again, then add in a bit of luck - every business needs some luck to grow. I am fortunate that Bausele has been quite lucky so far.

What challenges have you faced whilst starting your business in Australia? How would you define the market opportunity across Australia for Bausele?

Like for every start up, the challenge is to get revenue. Unfortunately watch and jewellery retail in Australia hasn’t been very open to selling a new brand in their stores, even an Australian brand. The alternative is to sell online, which we are doing successfully. So we reapproached the retailers to expand and informed them that our business was now online, which creates too much competition for the retailers… You can’t win! There are lots of ways that both worlds can work together and I wish to see our beautiful watches in stores for Christmas… 18 RETAIL & LUXURY

How would you describe the Australian consumer in luxury goods?

When we launched Bausele in 2011, watches were pretty much only seen as an accessory to tell the time. Now, more and more it is being seen as a way to express yourself and your status. Australians are not afraid anymore of showing their taste in purchasing luxury good items. And speaking of Bausele, Australian consumers are very proud to show their support of a young Australian brand launching and trying to make it. The quality for value is very important and when they buy a Bausele they know they get the same quality as other Swiss Made brands at a fraction of the price.

“Australians are not afraid anymore of showing their taste in purchasing luxury good items. ” Could you please describe your business model to us? Bausele is a luxury timepiece for both men and women. Bausele’s defined target market is predominantly professional males, sports enthusiasts and watch aficionados. Bausele sells watches to the end user and to corporate for premium corporate gifts. We recently developed a very special watch for St Hugo wines. Red soils of the Coonawarra St Hugo Cabernet Sauvignon vineyards are contained within the crown of the exceptional timepieces. I believe they will be offering the watches to select VIP retailers and selling some in their new facility that they are opening soon in the Barossa valley. Also we are doing a watch for a WA mining

company (with some red earth in the crown) that wants to reward their best employees for Christmas. The concept of Bausele is endless…

You have signed several ambassadors to the brand, such as a professional surfer, world championship medals wining, what is the aim and interest of this particular communication strategy?

Bausele is an Australian brand. Australia is seen in the world as a very active and sporty country. Being an ex professional sport person myself, it made sense to associate Bausele to the value of elite athlete’s way of living, commitment, passion, and dedication,… We are very lucky to have Andrew Bogut, Australia’s highest paid athlete as our main brand ambassador. Andrew is an NBA All Star player for the Golden State Warriors and a proud Australian. But we also have Matt Abood, multi Gold medallist for the Australian swimming, Fraser Ross who just won the Porsche GT3 Cup challenge with his car branded Bausele and Jenna O’Hea, WNBA player for the Seattle Storm to name a few. Also, our connection with sailing in Australia is very strong. We are the official partner of Yachting Australia and just signed to be the official timekeepers of this year’s Flying Dutchman World Championships that will take place right here in the beautiful harbour of Sydney. Bausele is also a licensee of the 2015 Cricket World Cup that will be held in Australia and New Zealand. Australian Ambassadors support Bausele by proudly wearing their watches and testing the product to its limits. Bausele’s strategic alignments with key athletes, sporting organisations and corporate clients generate greater brand awareness through content sharing, social media and media exposure.

What are Bausele’s next objectives? Have you identified new business targets? What is your business strategy for the next 5 years?

Bausele is the first ever Swiss Made Australian watch company. Bausele’s overall objective is to be a globally recognised Australian luxury brand. We are working with Flinders University in Adelaide to find a way to produce components in Australia for our next model to be launched. It will be the first watch to have the main components made in Australia. We will bring this watch to Baselworld and proudly present it to the watch industry in Switzerland. Hopefully it will be a success and open some doors of international distribution to Bausele. We already have a distributor in South Africa and are in talks for distribution in the south of China. Overall, we’re hoping to increase Bausele manufacturing and improve distribution in Australia, be more present internationaly and open new categories always around the same concept of keeping a piece of Australia with you.

According to you what would be the best advice for an entrepreneur wanting to enter the Australian market? Adapt to the Aussie way of doing business, mate. Australians are not as formal as we can be in the “old” Europe. And like anywhere: relationships are key so build your network as fast as possible and help without expecting anything in return, it might come back your way one day…

“Bausele’s overall objective is to be a globally recognised Australian luxury brand. ” RETAIL & LUXURY 19

Attractiveness of the Australian market for International Brands THE WORLD’S LARGEST BEAUTY RETAILER TO OPEN ITS FIRST STORE IN SYDNEY Fiona Novak

Country Manager

Sephora is the world’s largest beauty retailer and plans to open its first store in Sydney before Christmas 2014. After the success of recently opened stores in Asia, how do you view Australian market opportunities for Sephora? SEPHORA is the fastest growing brand in the Louis Vuitton Moet Hennessy luxury goods group. The excitement for SEPHORA and its anticipated entry in to the Australian market will see these opportunities expand in what we believe will be at a phenomenal growth rate, the likes of what is already a precedent in Asia.

Could you describe Sephora’s business model to gain market share in Australia? SEPHORA is organised into “worlds” based on product categories: skin care, make-up, fragrances, body care and accessories. Within those worlds, brands use SEPHORA’s signature merchandising design which ensures products are easy to test and purchase. Additionally, SEPHORA’s “Hot Now” programme showcases the newest and most innovative beauty products from around the world so clients are always in-the-know when it comes to the latest trends. Also, SEPHORA’s Beauty Studios offer clients complementary

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one-on-one service with Beauty Advisors for makeup application or skincare discovery. As such, I believe that SEPHORA will become a destination heaven for the beauty conscious consumers because of its wide range of niche brands as well as is ever popular Private Label range.

How is Sephora going to compete with local historic Department Stores such as Myer and David Jones? What is your differentiation strategy?

SEPHORA truly aims to be the absolute beauty authority offering unrivalled service coupled with an amazing range of products to choose from. We will have on-hand a fantastic team who will offer all the latest beauty tips and trends. SEPHORA also aims to be experiential unlike any other offered in Australia in terms of energy, fun, experimentation and vibrancy!

What are the main threats to a new international brand wishing to enter the Australian market?

Geographically, Australia is quite far away from the rest of the world, so that can present a few challenges logistically. Another factor that needs to be considered is the cost of real estate in Australia. A brand needs to

be confident that it has a strong demand before entering the Australian retail space. We are truly aware of the high expectation and anticipation for SEPHORA. As such, we are excited as we are confident that the Australian market is ready for SEPHORA!

What is Sephora’s overall marketing strategy in Australia for the next 5 years? Are you planning to open others Flagship stores in the other main metropolitan areas?

The Sephora flagship in Sydney’s Pitt Street, represents the mall’s newest and the most-happening destination. Designed in-line with the brand’s key flagship stores in Paris, New York, Milan and Dubai, the store will celebrate its iconic black and white design, which expresses its boldness, whilst touches of red in the store connote its sense of luxury.

“A brand needs to be confident that it has a strong demand before entering the Australian retail space.”

SEPHORA will concentrate its initial operations in Sydney and create a more robust operation prior to expanding the concept to additional cities.

ABOUT SEPHORA Founded in France by Dominique Mandonnaud in 1969 with the vision of creating an inclusive environment for shoppers to access both luxury and niche brands, Sephora quickly developed a reputation as the beauty authority. Creating a model which embraced self-service, Mandonnaud developed a sophisticated offering showcasing the best of beauty, yet made it accessible for all. With a cutting-edge retail model that dramatically changed the way customers shopped, it was regarded as the beauty destination with its large open floor for customers to roam, touch and feel all products. Today, Sephora is owned by Louis Vuitton Moet Hennessy (LVMH), the world’ s leading luxury goods group. Highly regarded as a beauty trailblazer, Sephora’ s unparalleled assortment of prestige products, dedication to newness and trends, unbiased service and interactive shopping environment have created a cult following.

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How French Brands Approach Australia AUSTRALIA’S POTENTIAL AS A LUXURY MARKET FOR A FRENCH LUXURY BRAND

Philip Corne CEO

How would you consider Australia’s potential as a luxury market for a French luxury brand?

From the level of investment by French and other European Luxury brands in Australia today it is clear that the potential of the market is well recognised. Further evidence is the increasing investment by other international brands in various sectors of the retail market.

How and when did you enter the Australian market? What are the dynamics of Louis Vuitton in Australia? Is there a difference between the French and the Australian business model? Louis Vuitton has been present in Australia since 1986 with the opening of the first store in Melbourne and followed by Sydney opening in the same year. Initially, Louis Vuitton’s business was supported by the tourist market but today it is the local market that underpins and drives the business. As is the case throughout the Louis Vuitton world it is our client that is at the heart of everything we do. Every decision we make is motivated by the desire to ensure that the experience for the client is at the highest level. From the first time our clients enter a Louis Vuitton Boutique and through subsequent visits the objective is to provide an exceptional retail experience

Does Louis Vuitton as a French luxury brand enjoy a distinct advantage? Do people prefer French brands over Australian brands in your opinion? Do you still benefit from the first mover advantages?

Louis Vuitton stands apart in the market as a luxury house that owns all elements of production, the control of quality and creativity while at the same time maintaining absolute control over distribution.

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Our clients guarantee of quality is to that you can only purchase Louis Vuitton from our exclusive network of 460 Boutiques. Furthermore, our no discount policy ensures that Louis Vuitton will never allow a client’s purchase today to be worth less tomorrow.

How will LV adapt its offer to Australians? Is there room for customisation to Australian customers? How do you implement marketing in Australia?

Louis Vuitton’s global retail strategy has at its core quality and consistency of the presentation of the brand. Each store is a fascinating journey throughout the world of Louis Vuitton. As mentioned earlier the ownership and control of the creation and manufacturing process together with our exclusive distribution strategy ensures the highest level of quality and service to our clientele.

What are the next initiatives on your agenda? Will you be pushing the online and digitalization strategy further? Louis Vuitton is a brand that has always cherished the values of tradition, creativity, quality and innovation and we continue to transmit these values across all platforms. Every aspect of the business is committed to a continual process of innovation and improvement. Today we live in a digital world – it is important to Louis Vuitton as a brand that online you can explore the brand heritage and discover the product offer. Just three months ago we launched e-commerce in Australia; it is a way for clients to either revisit the brand at any time convenient for them, or for new clients to discover more about our product offering. We view the digital world as an extension and enhancement of our client service that is both a different point of contact for our current clients, but also a new way to experience the brand for new clients.

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How French Brands Approach Australia AUSTRALIA’S POTENTIAL AS A LUXURY MARKET FOR A FRENCH LUXURY BRAND

Carline Bouilhet

Director-Table ACT Australia Pty Ltd

From its beginnings, in 1880, to the present day, Christofle has been at the forefront of the decorative arts. What has your business strategy been to conquer this new market?

Christofle has been in Australia since the 1880s, having been introduced to the market through the International industrial fairs popular at the end of the 19th century. The brand won various prizes, thanks to its electroplating patents, both in Melbourne and Sydney. In fact, Christofle has been consistently distributed in Australia and New Zealand for the past 50 years. However, the cultural differences between the expectations of a French brand, and the specific needs of an Australian distributor meant a great deal of frustration for the brand. My appointment in 1996 hit two birds with one stone: not only was I completely bi-lingual but there was very little about the company I didn’t happen to know, since I was born with the proverbial silver spoon as I represent the eighth generation of the founding family. Moreover, at the time, Christofle judged the Australian market development potential too limited to open a fully owned subsidiary. The company opted for the less risky proposition of a fully independent importer and distributor instead and Table Act Australia was born. After a great deal of travelling, to observe on-the-ground business practices in regards to our brand, my first objective was to regild the brand’s laurels in this market. Indeed, I initially found Christofle sold in places where it did not belong. Besides allowing my predecessors to list an impressive number of retailers, this type of ad hoc distribution indicated only a faint understanding of the brand positioning worldwide. However, in order to show what was expected of a retailer, I had to lead by example and thus opened the first flagship store in the South Pacific. At the time, I made the unpopular decision to open that store, not along Castlereagh Street, where the majority of French fashion houses and high-end stores could be found, but in the shopping precinct closest to where our clientele was most likely to reside. It’s certainly a decision I haven’t come to regret. Our flagship store

24 RETAIL & LUXURY

has turned into destination shopping by excellence. In order to maintain exclusivity, Table Act closed most existing retail outlets, selecting the strategy of one retail outlet per state. Indeed we deemed the Australian population sensitive to our products too small to flood the market with outlets. Likewise, we made the decision to choose one department store partner only, giving it exclusivity. We were also one of the first amongst luxury brands to develop a website. We designed it as another nationwide outlet and as a direct source of information for our retailers and end customers. In this country, the evolution of the brand has been slow and steady. I’ve always looked at this business venture with views to the long term, looking at results at a 10, 20 and 30 years mark.

How would you describe your main customer in Australia? What is Christofle’s marketing strategy to woo new Australian customers? Christofle’s customer profile in Australia is well educated, well travelled and well informed and invested in both the stock market and property. These qualities often reflect a certain age bracket but not necessarily. In any case, it points to the top 5% of the population. Indeed, purchasing Christofle, Bernardaud or Saint Louis for one’s own home implies you’ve a home designed to entertain and we all know the cost of real estate in Australia. It also implies you care about aesthetics and understand that form is as important as function. A good meal is made all the more spectacular by the way

in which it is presented. Our products belong inside a client’s private arena rather than part of a public display. We all know that wooing new customers is always the most difficult challenge. In our case, it’s done by word of mouth, and thanks to an impeccable track of customer service. Advertising, whatever the medium, has never carried as much impact as a personal recommendation.

What are the key strengths that you have maintained from the beginning on the Australian market? What is your major challenge for the next 5 years?

The fact that Christofle has virtually no competitor in its class on the market is an invaluable tool. Besides that unique fact, our key strengths, from the very beginning, have been excellence in customer service first and foremost, accompanying the client before, during and after a sale. I consider that impeccable product knowledge, from manufacturing to the latest artistic trends, is an essential component. The ability to never say no as a matter of principle is another. Our major challenge as a brand is to remain relevant to evolving lifestyles. In my observation, the new generation of wealthy entrepreneurs value life experiences over private ownership. The difficulty is figuring out how the brand can offer a unique experience, something that money “can’t buy”.

Christofle promotes the French ‘art de vivre’ and ‘art de la table”. Is it difficult to impose this in Australia where cultural differences may be an issue? Do you have to develop a stylistic renewal of the brand’s fine silver collection for the Australian market? Working along with Australian designers for example?

local customs and develop chopsticks. In doing so, it was necessary for us to understand the difference between Japanese and Chinese implements. Today, our designers are Dutch, Chinese, French, Italian and Swedish. I don’t believe Australian designers to be insular. They take their inspiration from everything at their disposal and that often means reaching far beyond Australia’s borders. We don’t need to develop specific things for the “Australian” market, only for specific individuals, who happen to call Australia home. As far as the “Art de la Table” is concerned, in my experience, everyone is keen to pick up the right fork and drink out of the right glass. It’s a part of the information we naturally convey to our clientele, in order to make everyone feel at ease with their purchasing decisions.

Between heritage and modernity, Christofle offers the best products for the most demanding customers. This is why Christofle offers customised silversmithing. Is it necessary today to offer this kind of service in the luxury industry? Have you considered offering this service to your Australian customers in the near future?

Most brands I know are increasingly manufactured in countries where labour is cheap and, as a result, have become mass-market, often losing some of their cachet in the process. Our discerning clientele wants to know it has purchased not only a beautiful and perfectly crafted item, which will last for generations, but that the item market value will not fall tomorrow thanks to mass production. Companies capable of offering one of a kind or limited edition pieces are becoming rarer by the minute. Those capable of designing pieces exclusive to a client’s needs, or able to map out their dreams are even

Of course, Christofle’s roots are in France, and, as such, its products represent age-old traditions and French savoir vivre. Personally, I’ve never tried to “impose’ anything on Australian consumers. I’ve, however, spent time explaining the reasons for certain differences, such as why our settings of china, for example, didn’t initially include a bread plate or what pushed us to come up with an implement called a “gourmet spoon”. In fact, generally, I’ve found most Australians receptive to a deeper understanding of French culture. Today, though, Christofle is a global brand. When we entered the Asian market, our first reaction as a brand was to adapt to

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more difficult to find. I believe that in most developed countries, as the socio-economic divide widens, combined with the phenomenon of a rapidly expanding Chinese upper middle class, the demand for unique, one-of-a-kind, bespoke items will increase exponentially. It’s not a question of whether we would consider offering such bespoke service in the future: we always have and from the very beginning, often changing client’s perception about the brand in the process. There is nothing more exciting than the knowledge that a worldwide luxury brand has just manufactured something that no one else will ever have. In the last 15 years, I count a number of clients who have had entire services in both china and silver custom-design to fit their needs. On a few occasions besides, I’ve requested Christofle develop specific pieces for a client, adding to existing ranges. Sometimes it has even turned out that the pieces in question were deemed so successful in their own right as to be introduced as part of the commercial range later. It’s not a question of whether we would consider offering such bespoke service in the future: we always have and from the very beginning, often changing client’s perception about the brand in the process. There is nothing more exciting than the knowledge that a worldwide luxury brand has just manufactured something that no one else will ever have. In the last 15 years, I count a number of clients who have had entire servI can count a number of clients who have had entire services in both china and silver custom designed to fit their needs. On a few occasions besides, I’ve requested Christofle develop specific pieces for a client, adding to existing ranges. Sometimes it has even turned out that the pieces in question were deemed so successful in their own right as to be introduced as part of the commercial range later.

As a conclusion could you tell us your insight on the ultimate luxury trend?

Most people might answer this last question by evoking globalisation, consolidation and diversification as the ultimate luxury trends, since these are obviously responsible for the growth of such groups as LVMH, Richemont or PPR. I’d probably be labelled a contrarian though, as I regard the above as a given, but not as the ultimate trend. Indeed, each of these segments carries its unique drawbacks. I believe that the ultimate trend is to offer a personal shopper experience every time a client encounters the brand. I’m talking about a guided, curated experience with a trusted expert. I’m referring to an empowered and inspired salesperson who will engage the customer on a deeper level, developing a relationship for the long-term, a relationship based on expertise, trustworthiness and generosity. Only a skilled professional will gain the client’s confidence and be able to guide him/her through the numerous pitfalls of online influences, multiple device usage and often contradictory information given on various digital touch points. In my opinion and direct observation over the last decade, this is the only way to achieve higher customer conversion and retention, and those are the ultimate luxury trends.

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Discover our magnifique addresses in Australia. Sofitel creates unique, contemporary luxury hotels in some of the worldâ&#x20AC;&#x2122;s most attractive destinations by artfully blending its French origins with the very best of local cultures. Paris, Vienna, Bangkok, Singapore, Sydney. Discover all our magnifique addresses in over 40 countries on www.sofitel.com RETAIL & LUXURY 27

How French Brands Approach Australia A FRENCH SUCCESS STORY IN AUSTRALIA

Arnaud Husser CEO - Cosmétiques de France

“With 84% of internet connections, social media are key in Australia.” How long has Nuxe been operating in Australia? How do you view the Australian market for Nuxe?

NUXE AUSTRALIA PTY LTD was created 2 years ago to introduce Nuxe brand and the “Huile Prodigieuse” to Australian consumers. The response has been very good because Nuxe matches Australian women’s interest in natural ingredient based skincare products. Being manufactured in France also helped a lot.

The appearance of a new and unique generation of luxury consumers has changed entirely. How is your retail concept adapting to these new consumers? Australian women are more eager to spend on themselves, especially the age group. They now look for more sophisticated brands, scientifically proven to be efficient and with a pleasant texture. Nuxe is obviously a good option.

How would you describe the main differences between French and Australian distribution channels for Nuxe?

The French distribution channels are much more exclusive as compared to Australia where the “one stop shop” concept prevails. Given the size of the country, the geography is also a strong constraint.

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Social media plays a key role in new retail trends. How do you use it and what is the impact for Nuxe? With 84% of internet connections, social media is key in Australia. The bloggers are very active in testing and commenting the products characteristics to their followers. The consumers are also very engaged.

According to you what is the retail strategy Nuxe plans to pursue to conquer the Australian market?

At this stage of the brand lifecycle in Australia, we are still on the basics. Huile Prodigieuse, Huile Prodigieuse, Huile Prodigieuse.

“Being manufactured in France also helped a lot.”

‘‘

All the wonders of nature on your skin

N°1 *

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* IN PHARMACIES Huile Prodigieuse® n°1 des huiles - source : IMS Health - Pharmatrend - Marché Soins Corps femme Huiles en France - Cumul fixe à fin Juin 2013 - en valeur, en pharmacie.

NUXE, NATURE IS PRODIGIOUS

How French Brands Approach Australia FINE WINE & FOOD FOCUS

Jonathan Alphandery Director

Ladurée, French luxury pastry shop has been a huge commercial success since it opened its first shop two years ago. Your brand new Sydney shop constantly has people lining up to get in. Indeed Ladurée opened its first shop 2 years ago. What is the key element of your marketing strategy in Australia? Our main strategy in Australia is to provide an experience and a product that goes way beyond food. We emphasise our points of difference, whether it is our beautiful packaging or the delicious classic macaron flavours we have in store, and make sure the customer service is on par with the one you can find at the French flagship stores.

Ladurée has a unique visual identity, releasing seasonal collections and limited editions for its macarons, and collaborates with fashion designers to create unexpected products and experiences.In this regard, do you consider Ladurée a brand that the fashion retail strategy?

Ladurée has always worked hand in hand with fashion. The collaborations have been very successful and have defined the brand image we are proud to have today. The seasonality of boxes or macaron flavours, with new collections coming out monthly or so, also shows a very similar way of doing things.

Would you define your macarons as the French concept working the best worldwide? Is there in your opinion another domain where French excellence in marketing is as powerful and as inspiring as yours? I think French know-how in hospitality in general is inspiring for many other countries. Going to a 3-Michelin Star restaurant in France is such an amazing experience and the staff there is usually so well trained and devoted to the restaurant, the chef and the team, it’s a great thing to observe and to try and replicate here.

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Why do you import all your products from Switzerland where they are frozen and not produce them directly in Australia? Is the French touch a sustainable strategic advantage in a market and essential for success abroad? Is it the core of your value proposition? Would you consider locally producing your products in the near future?

Quality control is essential to us, and the only way to make sure the macaron you buy in Sydney is the same as in New-York, Hong Kong or Geneva is by centralizing production. It’s the same for all countries, whether they are a few hours drive from France or, like us, 16,000km away. Would you want the Hermes bag you buy in Sydney to be made in Australia? I don’t think so... In the future, we will most likely build a kitchen and have some pastries and viennoiseries made in Australia, as these have to be baked daily, but macarons will always be made at our site in Enney.

You tend to develop and extend your line with new luxury products such as make-up with ‘Les Merveilleuses’, candles and perfumes with ‘Ladurée Beauté’, a gift collection with ‘Ladurée Secrets’ and finally chocolate with ‘Les Marquis de Ladurée’. Will this be the next step for Australia as well? Do you plan to open more shops in the next few years?

We already store a selection of all the collections you mention, except the make-up, which is a totally different operation. We are planning many more openings indeed, including one later this year in Sydney’s Eastern Suburbs. The goal is also to go to Melbourne, Brisbane, maybe the Gold Coast and even Perth within the next 8 years or so.

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How French Brands Approach Australia FINE WINE & FOOD FOCUS

Elisabeth Drysdale

Director Champagne Bureau Australia

What are the main objectives of the Champagne Bureau in Australia? Could you describe your mission and activities? In Australia, the Champagne Bureau represents the Comité Champagne.

The enhancement and protection of the Champagne appellation ranks high among the Comité’s priorities which include to: • Defend of the “Appellation Champagne” ; • Increase market awareness of Champagne Wines ; • Strengthen the image and market position of Champagne Wines ; • Provide the trade and consumers with information on Champagne Wines ; • Liaise with importers, administrations, French embassy, official wine bodies etc; • The Vin de Champagne Award (please see more information below); Promote the Vin de Champagne Award aims not only to celebrate and encourage the enjoyment of Champagne, but also aims to develop a network of Champagne specialists throughout Australia, who will act as supporters for the promotion of Champagne appellation.

How do you view the Australian market for Champagne?

Historically, Australia has had a great affiliation with Champagne. Since the gold rush days, we have always remained in the top ten markets for importing. In 2013, Australia imported 6,023,165 bottles making us the 6th largest market in the world. This was an increase of +11.40% on 2012. In terms of volume, the market is roughly comprised of: 97.2% maisons, 1.8%, vignerons and 0.8% co-ops. 92.7% of the market by volume is brut non-millesime. Australians still enjoy Vintage Champagne, however in the last decade or so we have had greater access to excellent non-vintage styles in our market. Through 32 RETAIL & LUXURY

the increase of a better educated on-trade and price competitiveness in the off-trade (with the strong $AUD) we are seeing a greater variety of non-vintage Champagnes in the market than ever before. With the increase in the dollar over the last few years, Champagne has become more available, attracting new consumers as well as existing consumers seeking out non vintage wines, which reflect the styles of the specific Houses.

What are the currents trends and marketing strategies adopted by champagne houses to gain market share in new prosperous countries such as Australia?

Our increase in sales must also reflect our economic prosperity. Champagne is no longer just seen for celebration. We are also seeing a younger demographic drink Champagne and understand where it comes from, which is really important. Australians understand it is a fantastic wine that can be matched throughout a meal and not only enjoyed as an aperitif. We must also take into account that a great amount of marketing and education investment has gone into the Australian market by the houses and growers alike over the last thirty years. It has been a slow build up over time. Australia is a very important market for the Champenois. The Champagne Bureau itself has been active in the market since the early 1970’s and has worked with both houses and growers alike to educate the market about Champagne- that only Champagne comes from Champagne.

Another CIVC’s key mission is protection and defence of the Champagne AOC appellation. As with other unique retail luxury products, Champagne appellation is the victim of copies and fakes which undermine the guarantee of quality or usurp the reputation of its origin. What are the difficulties you face in Australian and around the world? The Comité Champagne operates via a global network of bureaus in 16 of the biggest export markets for

Champagne. Their job is to protect the image of Champagne within their respective markets and report misuse of its name. Champagne is a unique product born of the shared heritage of Winegrowers and Champagne Houses whose livelihoods depend on protecting that heritage. They also have a duty to protect consumers against misleading claims made for any wines, beverages or products that trade off Champagne’s reputation as an appellation of guaranteed origin and quality. It is therefore the policy of the Comité Champagne and the INAO to prosecute anyone who misappropriates the reputation or identity of the Champagne appellation.

Every year, the Champagne Bureau organises a well-known competition: «The Vin de Champagne Awards”. 2014 marks the 40th Anniversary of the awards, one of Australia’s most coveted wine awards. Could you tell us a bit more about this much anticipated event? The 2014 Vin de Champagne Awards Winners Announced.

2014 Vin de Champagne Awards 40th Anniversary - WINNERS ANNOUNCED Tuesday 23rd September 2014: The Champagne Bureau Australia has just announced two winners in the Vin de Champagne Award at Hotel Centennial in Sydney. For anyone passionate about Champagne, the Vin de Champagne Award is one of the most coveted wine Awards in Australia. Winners were selected in the following categories:Professional (for people who gain income from the food & wine industry) Annette Lacey, NSW (Sydney Wine Academy)

Amateur

(for those who have a passion about Champagne)

Over 1,500 glasses of Champagne were served to guests including high profile members of the food and wine industries, Champagne aficionados and VIP’s. Presented every two years by the Champagne Bureau Australia, past winners of this prestigious award include some of the country’s most knowledgeable wine industry personnel, winemakers, journalists, restaurateurs, commentators and educators. Winners receive a two-week educational tour to the Champagne region in France, where they are awarded their medal from Le Comité Champagne and enjoy the legendary Champenois hospitality. In the past, winners have been overwhelmed by their visit and for many it is the start of an exciting and passionate relationship with Champagne. As one of the top ten countries in the world for Champagne exports, the soiree confirms that Australians are enjoying Champagne more than ever. In fact, in 2013 Australia imported 6,023,165 bottles placing it in number sixth position for Champagne importing. Air France is very proud to be the major sponsor of the 2014 Vin de Champagne Awards. The link between Air France and Champagne has always been synonymous. Every year Air France serves more than one million bottles of champagne to passengers during flights. Flight crews receive training in choosing wines, how to present the bottle, the names of wines and how to serve them, which perfectly complements the excellent wines chosen. “The award celebrates its 40th anniversary this year and has produced some of the finest Champagne palates in the world. Past winners actively promote Champagne across all aspects of life ensuring that Australia remains an important market for Champagne,” says Elisabeth Drysdale, Director of the Champagne Bureau. September, 2014

Could you also give us an insight regarding the future of Champagne in Australia for the next 5 years?

Compared to ten years ago, the market for Champagne has definitely grown and opened up. We are seeing a lot of different brands and styles coming into the market and I see that as only growing over the next five years. I also believe that our level of education about Champagne is widening and will only improve over the next few years.

Tom Warrell, NSW (Operations Manager, Uber)

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New Retail & Luxury Trends PERSPECTIVES & INSIGHT

Edwina McCann

Editor-in-Chief, Vogue Australia

According to you, what are the main differences between Australian and European cities in terms of fashion and luxury retail? The Luxury & Retail industry has grown quite significantly in Australia, how would you describe Australian’s consumer purchasing behaviour?

We are more similar to American cities in terms of shopping malls, we have seen about luxury brands here going to very big malls, in the suburban areas, and I think that is one of the major of the differences. Also both in Melbourne and Sydney and increasingly in Perth and Brisbane, we do have some very strong single stores, shopping centres in the centre of cities as well, which are growing rapidly. But I would like our strongest growth to be with our malls network. In terms of purchasing behaviour, clearly seasons are an issue, although if you are talking about luxury consumer in Australia, the luxury brands here have to offer everything on the same «drop» or delivery schedule now as they do internationally. I think this is done because the Australian luxury consumer is very sophisticated and if they can’t get the full range or the full offer in Australia they will choose to shop overseas rather than here. So the heads of various luxury stores have been smart in terms of their delivery. I think in terms of the purchasing, we would buy for the Australian luxury market, I would imagine they buy very deeply when it comes to ‘bridging collections’ if you like. Pre-cruise or pre fall. One because I think most of them do it anyway, because they are more commercial, but secondly because they tend to have a longer shelf life if you like in our climate and really address being in the southern hemisphere in a way by delivering clothes that are appropriate to our seasons during the season.

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How would you describe Australian’s consumer’s purchasing behaviour in terms of fashion & luxury retail?

I think the Australian consumers who tend to like shopping because they’ve had an increasingly diverse range of product available within the luxury market and therefore they have become much more discerning in terms of their purchasing. Also I think that Australia is very multicultural and the make-up of Australia is constantly changing and I do think there is a Chinese expat consumer who is increasingly relevant and has enormous buying power per capita, who is very important to the Australian luxury market of the future. I think aside from that there probably aren’t that many differences. I wouldn’t call Australia a mature luxury market nowhere near France or New York for example. But it has accelerated very quickly. And I think it will continue to do so, especially say Perth for example where a lot of luxury industries are expanding as there’s just been a big crude oil discovery which will fuel a lot more development in that state and obviously the other states come off the back of it with any resource boom. So it’s a very wealthy population. And I think that is very interesting to luxury consumers and Australia is probably and interesting mix of semi-mature, mature and growth markets.

How would you explain the late entry of international high profile brands into the Australian market?

I think for a long time the buying power simply wasn’t here and I don’t think there was truly, obviously some brands have been here for a very long time ie: Cartier, Chanel since the 1980s, Louis Vuitton I would say since the early 90s so some brands have had a long presence. Some brands have come and gone, Yves Saint Laurent is a good example. It’s been very varied and I think initially Australia is a very small population and fashion consumption hasn’t played as major of a role in consumers spending power as housing has for example.

I think when you look at Australians we seem to be quite obsessed with housing and obsessed with renovations and so I think Australians have traditionally poured a lot of disposable income into that. I think also it would be prudent to note that Australia is a long way away from anywhere, even Asia, and so therefore they spend a lot of money on travel which all Australians aspire to and I think most Australians do. Compared to America we have a much larger percentage of the population with passports for example. And I think travel has probably taken up a large proportion of our disposable income as well leaving less available for luxury consumption. However at the top end of Australian socio-economic society, the wealthiest have become extremely wealthy and we have a lot more millionaires and billionaires in the last 15 years than we ever did before and clearly we got through the GFC, relatively speaking, reasonably unscathed and I think that it has probably accelerated the luxury goods sector’s entry into Australia, seeing that Australia came out of the GFC in reasonable shape and perhaps our resource boo got more and more talked about internationally because of that. I think that perhaps has attracted a lot more attention to Australia. I then as I mentioned before the influx of the Chinese expat consumer has provided a very new attractive growing client base in Australia as well. Plus obviously there is a significant tourist market in Sydney and Melbourne in particular. And I think Australia is a trusted country. We have very little counterfeiting for example. And consumers know they if they buy in Australia they can be sure of buying the real thing.

How would you define the market opportunities across Australia for the upcoming French brands?

I think it’s growing exponentially. Not specific to French brands but I’ve heard double-digit growth figures year on year from some companies and again I would attribute a lot of that to a growing Chinese expat market but I think on top of that you’re getting an Australia consumer who’s living habits are changing as well. The number of us living in high density big cities is increasing, living in apartments for example and perhaps more income is

being spent on the nicer things in life. We’re eating out more; we’re out in environments where it’s worth showing off the beautiful handbag or the designer watch. So I think that’s shifting and will continue to shift. While the resource boom has definitely slowed it still does have a long way to go and I do think that the wealth in Australia will not shrink. It may become more concentrated but it will continue to grow. It’s an interesting market. There is still the per capita issue – you know it can only be so big. Young Australians now leaving school have grown up using the internet and so they would be more aware of French luxury brands than ever before. And I know when I was growing up as a 19 year old you rarely saw a designer handbag in the suburbs of Sydney. You might have seen luxury cars and that’s not the case anymore, it’s almost the norm to have one. And I think you look at the other end where you have Chanels expansion into the beauty market with stand alone stores which I think has been incredibly impressive and clearly there’s a lot of opportunity there that Australians will choose to buy that Chanel lipstick over other brands for example.

Vogue is Australia’s number one fashion website offering the Vogue view on fashion, beauty and lifestyle daily. With the rise of E-commerce and the boom in social media, do you think there is still a place for traditional media and retail in fashion?

I think in the luxury end of it, it’s an opportunity. As with Vogue, the magazine remains the jewel in our crown. It doesn’t have the same reach of our online audience but it is an essential part of what we do. It’s still an entry point luxury good and something that readers are very proud to have on their coffee table and gives meaning in their lives. And the online space and social media in particular has allowed us to continue this conversation with them on a daily basis which is something we could never have even imagined 10-12 years ago. So we’re part of their breakfast as they check Instagram or Twitter. Or at lunch they can look through our galleries

“There is a Chinese expat consumer who is increasingly relevant and has enormous buying power per capita.” RETAIL & LUXURY 35

at the dresses at the Oscars for example. Or on the bus on the way home from work they are engaging with us online. So this has created an opportunity to increase the dialogue with the audience that cross of print and digital as well as expand our audience to a much broader audience than traditionally bought the magazine. And I think that e-commerce and the online space really presents the same opportunity. Whilst you may not sell a $30,000 necklace online for example, you will sell the entry point ring that’s quite simple priced much lower. For example, if you’re a beautiful brand like Hermes, people will still want to come in store to try on the ready-to-wear range, but they will also be very happy to go online and buy one of Hermes’ beautiful enamelled bangles for example because they shop for ease. And I think a lot of women shop for entertainment in the evening after the stores are closed. I think more and more the lure of luxury fashion will actually sit more comfortable in the recreation or entertainment category than a necessity category. And the French brands are the best placed in terms of being able to change consumer habits.

Could you give us some insight on the next luxury trend in Australia? And could you tell us about your role as the President of the Australian Fashion Chamber (AFC)?

The Australian Fashion Chamber has been formed to be a similar organization to the Council of Fashion Designers of America or the British Fashion Council. It’s not as such as governing body as the Chambre Syndicale de la Haute Couture I guess has to act but more designed to help Australian designers to grow their brand both locally and internationally with the view that originality is the key to success in terms of the future. It’s also set up as a lobbyist group to connect with state and federal government to address issues with seminars and education and international placements etc. So it ‘s a multi-tiered organization with the view to increase Australia’s fashion design community in the future on an international scale. So in terms of trends that I’m seeing, I couldn’t identify any specific fashion trends that I’m seeing that is unique to Australian designers but I guess where we’re headed in terms of general trends of our fashion design community is we’re seeing some of our designers doing very well and achieving international success and then needing that additional assistance to really go to the next level. Most of our creative designers who have success or about to achieve success are to show during Paris Fashion Week. At the moment they do it in a very disparate way, they do it independently and in small show rooms for a short period of time. And the vision of

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the AFC is to have a single show room such as the British Fashion Council where we can show our best talent under one roof making it easier for international buyers to visit that space. And ensuring that with the experts we can draw on that the designers are showing their very best wares and presenting it in a way that is going to appeal to the international buying community.

According to the growing number of Asian people living in Australia and their strong interest for international luxury, how do these brands adapt to the Asian’s soaring consumption in Australian retail stores?

I think the Australian retailers are already adapting. And as with Vogue we are publishing 3 editions per year that have specific content in to appeal to the Asian consumers in Simplified Mandarin. And we make some copies available in the high-end hotels to attract the tourist market. I have heard stories of buyers in Australia now sitting and doing as buy as they would normally and then will actually go and sit with the Chinese buyers to understand the buy that will appeal specifically to the Chinese consumer from the tourism market. So I think this is where the main growth in the market comes from. But also we see changes in the habits of students. Whereby a reasonable proportion of spending is also coming from the student community which is something that we’ve never seen before. On the weekends they are going out, spending and shopping rather than simply going to the beach. That’s making the community more diverse and opening up opportunities within our market which I think the French companies in particular are keenly aware of and doing their best to really tap into and doing their best to ensure they are offering world-class offerings to attract that audience.

“I wouldn’t call Australia a mature luxury market…. But it has accelerated very quickly.”

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New Retail & Luxury Trends NEW TRENDS IN LUXURY

Brett Phillips

Founder & CEO

As the CEO and co-founder of 3 Deep, a luxury branding and communications agency with significant experience in the luxury space over the past 18 years, could you tell us what the conditions for success are for a new luxury brand entering today’s Australian retail market? What are the necessary steps for a luxury brand’s success?

Since the beginning of this century luxury brands have redefined how they communicate and engage with their audiences. Having long grappled with the changing beliefs of their traditional customers, the emergence of a new and unique generation of luxury consumers has changed the playing field entirely. Prior to 2007 and the GFC, luxury brands sought expansion and increased market share through product diversification, proliferation and the nomenclature of sub brands. We witnessed many brands broaden their consumer base via accessible luxuries such as sunglasses, beauty and fragrance offerings. Rather than follow the existing luxury precursors of scarcity, exclusivity, craftsmanship and cost, the proposition shifted toward a focus on the value and virtues of the brands themselves. The artefact itself was no longer enough. Since the GFC luxury brands have been forced to recalibrate, with the most successful refocusing product lines, consolidating costly and unmanageable licensing agreements, while reassessing their traditional brand values and beliefs. Burberry and Tom Ford are both notable examples of brands that have engineered a clear and compelling position within market through a tightly controlled approach. When it comes to any brand looking to enter the Australian market, I would start by subvert a piece of writing from the Greek philosopher Epictus and say ‘Know, first, who you and your customer are; and then adorn yourself accordingly’. To be successful in the Australian retail market, brands should understand; 38 RETAIL & LUXURY

1. What makes them unique. 2. Demonstrate what they stand for in everything they do. 3. Lead don’t follow.

Who is in your opinion the ‘Neue Luxury’ consumer? As a consequence, are there significant changing retails trends and opportunities?

Neue Luxury consumers are focused on the furthest edges of luxury, seeking the niche, the iconoclastic, the new and the next. With the maturing of emerging markets, we have observed the formation of four distinct sub-segments of Neue Luxury consumers. The majority of these consumers change their attitudes and behaviours based on their age, self-awareness and social status. The following four archetypes also tend to cross over demographics that include age, geographic location and income. 01. The Conspicuous Acquirer – This consumer is often new to wealth or within a culture where conspicuous consumption is a dominant practice. Luxury items are purchased to demonstrate wealth, define social position and visibly separate the consumer from the mass market. 02. The Discerning Connoisseur – This group describes a wealthy consumer who seeks to engage with brands, products and services that reflect their personal tastes, discernment and wealth. Less conspicuous, their engagement with luxury is far more curated, intelligent and considered. However, they still seek opportunities to demonstrate their taste and style for peer validation. 03. The Luxury Insider - The Luxury Insider seeks to engage with brands that expand their horizons, satisfy their cultural and intellectual desires and deliver on their expectations of creativity, service, quality and privilege. 04. The True Believer - The True Believer no longer engages with luxury goods and services for external validation. As elemental as their very DNA, these consumers understand the role and purpose of luxury in

their lives and they curate and engage with a very select, and very intelligent roster of luxury brands, experiences and ideas. They consume quietly and deliberately and many are at the vanguard of ideas and culture. From our perspective, it is vital that brands understand, engage and communicate with each of these segments sensitively. Each are interconnected and each ultimately place differing demands upon retailers. Neue Luxury consumers are seeking an emotional connection with luxury brands and within this context the customer journey must be engineered to create, evolve and enhance an enduring relationship at every point in the customer-brand journey.

What are the latest advancements in luxury digital retailing and communication in Australia? Could you identify the most advanced trials, best practices and tools to predict the future of luxury online especially in Australia? Is digital experimentation influenced by a country’s geographical characteristics? As the Millennials (born between 1980 and 2000) start to make their digital presence felt, many luxury brands are considering what they will need to be in the 21st century and how best to reach the current and next generation of luxury consumers.

Retailers like Sneakerboy (www.sneakerboy.com) are targeting these consumers and have developed a innovative digital retail model that fuses the traditional services pillars with the real time immediacy of the web. In understanding the purchasing and product expectations of their customers, Sneakerboy has crafted a unique theatre of experience that offers no fixed points of sale, instead empowering consumers to use their Sneakerboy App to check size availability, facilitate self purchase while delivering up to the minute access to new product information and releases. All sales are processed from a unified web platform and shipped from Hong Kong to anywhere in the world. Retailers like Sneakerboy not only allow their customers to celebrate and develop their own identity through the products they buy and experiences they consume, but actively help amplify those experiences through a focus

on social sharing as part of the purchasing experience. A public display and confirmation of the status their customers enjoy within their own social circles.

What are the main ingredients of a successful and integrated branding and communications programme for a luxury brand in Australia? Could you give us campaign examples?

While every brand must define, communicate and demonstrate their unique values, personality and characteristics, we believe there are six key dimensions that all luxury brands need to consider in order to connect and engage with the Neue Luxury consumers; 1. ARTISANSHIP In this commoditised world, luxury consumers seek out brands, products and experiences that are linked to the artisans that have designed and crafted them. Whether it be the hand-stitched seam on a Brioni Made-to-Measure suit or the beautiful imperfection of a Rick Owens chair, we all respond to the human connection behind the products and services we desire. 2. AUTHENTICITY Luxury brands have roots just like human beings have ancestors. All successful luxury brands celebrate a unique lineage and provenance. To be authentic in this context, luxury has to be true, unquestioning and innate. 3. TIME Time is the ultimate luxury. It is the only truly limited resource we have. As the pillars of service, quality and experience continue to have an impact on a customer’s advocacy for a brand, so too will a brand’s acknowledgment and management of time. By understanding the value of time and its relationship to luxury, brands will better serve the needs of their customers by successfully managing each moment of truth in the customer-brand relationship. This will ultimately give them greater control over the real and perceived value of the luxury goods and services they provide. 4. INDIVIDUALISM A vital ingredient in the projection of a brand’s beliefs, vision and values are associations with the iconoclasts of our age. Celebrated for their commitment to creation and innovation, they also perform

“Know, first, who you and your customer are; and then adorn yourself accordingly.” RETAIL & LUXURY 39

“Australia is strategically placed to become a significant global luxury player within the Asia-Pacific region.” a vital function in cultivating fertile ground for their patron’s development of self-image and self-expression.

as cultural barometers and custodians of knowledge, integrity and quality.

5. CREATIVITY In order to be creative leaders, luxury brands must explore and occupy the nexus of design, fashion, art and culture. It is the ability to constantly inquire, differentiate, surprise, create and stimulate desire that distinguishes a luxury brand.

Australia has the 9th largest High-Net-Worth Individual (HNWI) population in the world, how could this influence the luxury industry? Will historic, Western style luxury still work? Or does a brand need to express local culture? Will the Asian market strongly impact company behaviour, products, style, capital requirements or even ownership?

6. THE EXTRAORDINARY Luxury brands must continuously strive to create and deliver the extraordinary. This takes courage, attention to detail and an unwavering commitment to excellence. Within the context of luxury, being extraordinary means overcoming the constraints and limitations of every day life, moving beyond the pragmatics of function and rationality and into the realms of emotion, aesthetics, hedonism and the sacred. Our ongoing work for Harrolds Luxury Department Store is perhaps the best example of how 3 Deep have harnessed and amplified The Six Dimensions across and integrated program of branding and communications. 25 years after launching Harrolds as a classic mens suiting store, our client approached 3 Deep to reposition the brand for future growth and to solidify the brands position as a leader in the luxury menswear market. With market demand driven by a booming upper middle class and a younger, more affluent, fashion educated luxury consumer, it was imperative that we clearly defined the strategic vision and values of the brand before developing a creative response. Underpinned by The Six Dimensions, the program inspired confidence in consumers, reinforced Harrolds knowledge of the luxury menswear space while defending leadership as a quality and virtue of the Harrolds customer. Seasonal campaigns allows Harrolds to shine on an international stage and attract the worlds most discerning brands, staff and customers. The brands that have the capacity to tailor their marketing and communications strategies, measure and grade their brand performance against these dimensions while accommodating a greater engagement with culture, design and art will not only benefit from an increased strata of luxury consumers, but will inevitably discover new and relevant ways to innovate, connect and influence the next generation of luxury consumers. They will discover what it means to be authentic, and will, in turn, be viewed by their customers and patrons

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In recent times much has been written about the strategic opportunity that Australia’s geographic location and proximity to Asia offers for purveyors of luxury products and services. Long considered by Europe as an exotic antipodean outpost, Australia has always sought to embrace its European heritage while advocating the virtues of American style commercialisation. In 2011, Asia-Pacific became home to more HNWI’s then any other region with 3.37m, only to be surpassed again by North America in 2012. Japan accounted for 54.1% of the regions HNWI population, China for 16.7% and Australia for 5.3%. These three nations account for three quarters of the regions population. Australia is strategically placed to become a significant global luxury player within the Asia-Pacific region and as you observe, is currently ranked as the world’s 9th largest HNWI population. In 2011, Australia had 179,500 HNWI’s and in 2012 this rose 15.1% to 207,000. This number is larger than that of Italy, Brazil, South Korea and Russia. This indicates that not only does Australia have its own significant HNWI population, but it continues to be in the ideal position to create and export luxury brands into the Asia-Pacific region, while fostering an environment to attract and retain international investment from abroad. Heritage and country of origin will always be a key pillar for any luxury brand, no matter where it is sold. When entering Asian markets however, traditional luxury brands must be conscious and sensitive to how they create unique local experiences in order to develop enduring relationships consumers. One of the most significant considerations is perhaps the unique consumer profiles within these regions. With the average age of AsianPacific HNWI’s being under 40 – 15 years younger than the global equivalent – brands looking to enter or reposition themselves within the Australian landscape will need to consider and understand how their messages, products and experiences will be tailored specifically to engage with this unique demographic.

References

• Bain & Company, Fondazione Altagamma, 2013. 2013 Luxury Goods Worldwide Market Study. [Online] • Cultures In Between, 2014. A future of Australian Luxury. [Online] • Doran, S., 2013. Australia: The New Land of Opportunity for Luxury? - Luxury Society - Postcard from... [Online] • Euromonitor International, 2014. Luxury goods in Australia. [Online] • Jones Lang Lasalle, 2011. The emergence of luxury and fast fashion. [Online] • O’Rourke, M., 2011. Australian Luxury Market Nearing 1 Billion Dollars. [Online] • O’Rourke, M., 2013. The evolution of luxury, Financial Review. [Online] • pwc, 2012. Challenges and opportunities in the new luxury world: winners and strategic drivers. [Online] • Redrup, Y., 2014. The future of luxury and premium retail: it’s a sparkly outlook. [Online] • Terzon, E., 2013. Selling Luxury, Inside Retail. [Online] • The Australian, 2013. Brands rush in to meet the need for luxury. [Online]

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Caviar, Foie Gras, Truffles, Mushrooms, Pâtés, Butter...

Delightful French delicacies at your doorstep

www.frenchfinefood.com.au 42 RETAIL & LUXURY

Newsroom & Events 4 SEPTEMBER

SEPTEMBER

WA – Africa Down Under – Business Seminar

QLD – Creation of FIT “French Infrastructure Investment & Innovation Team”

The French-Australian Chamber of Commerce & Industry (FACCI) was proud to present the “Opportunities of doing business in francophone Africa: challenges and keys to success” alongside the Federation of Business of Congo (FEC) and Chamber of Mines. The event was held in Perth with three panels of expert speakers detailing: The opportunities and changes in francophone Africa, the Australian Government and think tank strategies in francophone Africa, and the opportunities to partner with European institutions and companies.

10 SEPTEMBER

FACCI Queensland proudly introduced the implementation of a “French Infrastructure Team” (FIT) with the objective of making connections by including major parties with an interest in strengthening French business investment in Queensland. With the support of the French Embassy to Australia, the team includes; Honorary Consul (Lady Jane Edwards), Trade and Investment Queensland (Michelle Wade, also covering relations with Brisbane Marketing), FACCI (French Australian Chamber of Commerce and Industry: Queensland President Brian Lorigan), UFE (Federation of French Overseas: Queensland President Pierre Elias) and UbiFrance (tbd).

QLD – Upstream Oil and Gas Workshop Queensland’s gas industry has been a powerhouse of infrastructure and construction investment since 2010, and now as a number of gas producers prepare to supply gas to LNG trains, collaboration between industry players is acknowledged as essential to delivering reliable gas supplies. The half-day workshop in Brisbane brought gas operators, field services suppliers and other industry participants together to set out their views on the challenges ahead, and priority actions as the industry transitions to large scale operations.

ONE BRANDING FOR ONE NETWORK A historic change is occurring as the re-branding of CCI France International, and the network of French Bilateral Chambers, commences with the adoption of our new visual identity. The French-Australian Chamber is adopting a single collective image in order to reinforce our commercial

capacity, and to illustrate our common values and objectives. Uniting us all to create a stronger visibility for a truly global network which serves both French and local companies in the countries that host us. Whilst still recognizing local identities, the new logo emphasizes one collective global network with one brand.

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Soirée de Gala SYDNEY FACCI 2014

Business Awards

On Thursday the 16th October, the French-Australian Chamber of Commerce and Industry held its 21st edition of the annual Soirée de Gala, sponsored by Peugeot. For the third year running, the Chamber also held the Business Awards, kindly sponsored by Etihad Airways. The long-anticipated announcement of the winners was held during the night of the Soirée. We had the privilege of welcoming over 330 guests to the beautifully presented Grand Ballroom of the Shangri-La Sydney, starting the evening with a surprise welcome address from the Australian Prime Minister Mr Tony Abbott. The hall was artfully decorated with flowers from Wildblossom, and tables garnished with culinary delights in the form of Macarons and Chocolates from GJ Food, Champagne, courtesy of Pernod Ricard, as well as gift bags filled with delightful presents from Clarins, Peugeot, Etihad Airways, French Provincial Magazine, Bausele, DPPP and Vittoria Coffee.

This year in particular, the Soiree de Gala was an occasion for us to celebrate the friendship between Australia and France, as it marks the Centennial of WWI and part of the historical link between both of our countries, from an amicable and cultural bond to our relations in trade and industry. This relationship has been reinforced over the years, starting with our foundation in 1899 when the French Chamber of Commerce and Industry initially functioned as an intermediary for the Wool Trade. Following on 115 years later, the Chamber has come a relatively long way, accommodating for over 800 members nation-wide from nearly every sector of services and industry. The evening also revealed the beautiful new Peugeot 308, Pernod Ricard’s brand new Chivas Regal Extra blended scotch whisky with a tasting bar, some incredible Raffle Prizes and an exciting line-up for our Live Auction. We would like to wish congratulations to all of the lucky winners and successful bidders. Part of the funds raised will be donated to our selected charity the St Vincent de Paul Society through Givematcher.

- 2014 Business Awards The theme for this year’s Business Awards was innovation, today’s crucial source of business growth. This was an opportunity for all members to showcase their business achievements of 2013 to the FrenchAustralian business community. Within this theme we presented five separate categories: Patron Member, Corporate Member, Small Business, New Member and Community Contributor Award.

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The objectives of the Business Awards are:

• To recognise the most exceptionnal achievements of our members • To reinforce the link between French Australian Chamber of Commerce and its members • To foster friendly competition between members • To inform, connect and promote members to local Gala guests

The great success of this evening would not have been possible without all of our sponsors, and we would like to express a heartfelt thank you to all our sponsors, without whom the event would not have been such a success. In particular, our thanks goes to:

Naming Rights Sponsors

Major Sponsors

Corporate Sponsors

Supporting Sponsors

Products Sponsors

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Soirée de Gala

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Winner of the 2014 Business Award for Most Innovative New Member

Winner of the 2014 Business Award for Most Innovative Patron Member

Winner of the 2014 Business Award for Most Innovative Corporate Member

Winner of the 2014 Business Award for Most Innovative Small Business Member

Winner of the 2014 Business Award for Most Innovative Community Contributor

Special Contribution Award

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Soirée de Gala

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Soirée de Gala MELBOURNE

On Saturday 25th of October 2014, the French-Australian Chamber hosted a lavish Provençal-inspired evening during its annual Soirée de Gala at the Plaza Ballroom. The event is the highlight of FACCI – Victoria Chapter’s calendar; the night intertwined both French flair and traditional Provençal charm and brought together our dynamic and diverse French-Australian business community. The evening began with an apéro-champagne and oysters where guests were free to discover the Nuxe cosmetic products and participate in the silent auction featuring a multitude of prizes including Mumm Champagne, Rosé de Provence from Château la Gordonne... As our 350 guests sat down at the picturesque Provençal designed tables they were greeted with gift boxes by Colorpak including Nuxe, La Petite Provence, and Confiserie du Ray Rene and then warmly welcomed by François Diethelm, FACCI Victoria President and Olivier Deschang VIC Chapter Manager and National Coordinator. Distinguished guests were whisked away to a feast for the senses with a flavoursome Provençal four-course dinner, featuring an array of matching French wines and Rosé, and a plateau of ‘fromages’ from the South of France provided by the Calendar Cheese Company. All whilst observing the catwalk models, styled by Franck Provost, in the award winning Australian fashion designer Nicolangëla’s runway show, accompanied by a spectacular classical performance from the Flinders Quartet chamber music ensemble. Visual senses were even further delighted with an exhibition of original vintage posters from The Galerie Fitzroy. And for the lucky guests, a myriad of prizes were

won during the Grand Raffle proudly funded by Etihad Airways including the grand prize; flights to Provence sponsored by Etihad Airways to stay in the five star Renaissance Aix-en-Provence Hotel, and other fantastic prizes such as a breathtaking bag by Longchamp Paris, a luxurious designer jacket from Thomas Hulston, Magnums of Champagne and Rosé... Later in the evening François Diethelm, also took the stage to introduce a special message from Prime Minister Tony Abbott himself in which he reminded us of the importance of the French Head of State’s approaching visit to Australia and of the growing French-Australian relationship, followed by a speech from honoured guest H.E. Mr. Christophe Lecourtier, Ambassador of France to Australia. And as the night drew to a close, guests enjoyed coffee from Nespresso, treats from Cacao Fine Chocolates and Patisserie as well as a selection of cocktails by Pernod Ricard. Delight continued as certain lucky guests were blessed with prizes from Huile Cauvin in the lucky draw. Finally many took to the dance floor to the sounds of Belle Roscoe, the folk-pop Melbourne based band, embracing the relaxed and elegant Mediterranean vibe. This evening couldn’t have been possible without our incredible, supportive and generous major sponsors; Air Liquide and Etihad Airways, corporate sponsors; Colorpak and Nuxe, as well as our many supporting sponsors. We would also like to thank our patron and corporate members, and especially our honoured guests for their presence: H.E. Mr. Christophe Lecourtier, Ambassador of France to Australia, The Hon. Louise Asher MP, Minister for Innovation, Tourism and Major Events, Employment and Trade, as well as Kathryn Fagg, Reserve Bank of Australia Board Member, and Myriam Boisbouvier-Wylie, Honorary Consul General of France in Victoria. We cannot thank you enough. Merci beaucoup!

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UN IMMENSE MERCI à tous nos SPONSORS et PARTENAIRES

Major Sponsors

Corporate Sponsors

Supporting Sponsors

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Soirée de Gala

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Fashion Show

Classical Performance FLINDERS QUARTET

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Soirée de Gala

Live Music

BELLE ROSCOE

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Soirée de Gala

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EXPERIENCE AWARD-WINNING COMFORT BE OUR GUEST

Etihad Airways, the Worldâ&#x20AC;&#x2122;s Leading Airline*, offers 32 flights per week from Australia with seamless connections to Europe, the Middle East and the Americas, all via our home Abu Dhabi. In Business Class, you can stretch out on a fully-flat bed with aisle access, and choose from our Ă&#x20AC; La Carte or Dine Anytime menus. You can also unwind with over 750 hours of the latest blockbusters, timeless classics and interactive games. To discuss your corporate travel requirements, please contact your Etihad Airways Account Manager, call 02 8024 7279, or email auscorporatesales@etihad.ae We look forward to welcoming you onboard. *2013 World Travel Awards

RETAIL & LUXURY 57

Calendar of Events NOVEMBER

QLD

Economic Outlook Briefing with Paul Bloxham (HSBC)

NSW

Business Talk on Cross-Cultural Management

Managing Director of Berlitz Australia, Rohan Baker, will be sharing his rich experience of working in multi-cultural environments during his presentation to our Members on the topic of Cross Cultural Management. In his presentation, Rohan will be discussing the following topics and many more.

21 27

QLD

Red & White Christmas Soirée, with the Ambassador of France

VIC

Le Concours des Vins de Victoria

The French-Australian Chamber of Commerce and Industry proudly presents the Air Liquide 2014 Concours des Vins de Victoria, a celebration and recognition of the diversity and quality of Victorian wines and “Terroirs”.

NSW

A Taste of French Terroirs

VIC

NSW

A Taste of French Terroirs

FACCI and Sopexa take great pleasure in inviting you to the Wine Trade Tasting: A Taste of French Terroirs. This trade-only event will give you the opportunity to sample a fine selection of wines from various French regions and terroirs, and meet with the representatives of the participating wineries.

le Concours des de victoria Vins Where Victorian taste meets the French palate...

DECEMBER

VIC

Briefing Cross-Cultural Management

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NSW

Christmas Cocktail

By way of showing our great appreciation for your ongoing support and to celebrate the festive season, The French-Australian Chamber of Commerce and Industry cordially invites you for Christmas drinks and canapés on Thursday 4th December

22nd French Australia Golf Cup

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TRAPS AND TIPS WHEN VENTURING OVERSEAS TO DO BUSINESS The world is now a global marketplace, and technology has accelerated this. The barriers that used to apply to accessing skilled labour and selling into a country have been broken by outsourcing and selling online. Cloud technology has pushed the envelope on what can be done remotely and businesses are being forced to adapt to this change. Many businesses have seen this as an opportunity to venture beyond their shores and take the step to do business overseas. In this 2 part article, we will cover some of the mistakes we have seen from our experience as global business advisors, and some specific tips for businesses looking to come to Australia. TRAP 1 – WHAT ARE THE PRACTICALITIES OF WINNING WORK IN THE OTHER COUNTRY? Every economy is different and it is important for businesses to understand the culture of doing business in the other country, as well as social norms and “how” business is done. Well developed economies generally have a process established for setting up business structures and payment of tax. But the accepted business practice can vary from country to country. You cannot necessarily take your experience from home and apply them to the new market. In some countries, there will be a prescribed percentage of local ownership that is required to win business. You may even need to consider sacrificing majority ownership in order to win large contracts from government bodies in some countries. Then there’s “know how” vs “know who”; partnering with a wellconnected business partner in the new country can sometimes be the difference between failure and success (this can particularly be the case in some Asian countries). How long will it take to setup your business structure? Is some countries, no local business structure means no contract. If there is a long lead time to setup, the business opportunity may have disappeared by the time you are ready to go. TRAP 2 – HOW WILL I GET PEOPLE INTO THE COUNTRY TO DO THE WORK? In my introduction I wrote about lower barriers to accessing skilled labour through the use of technology. However, we are in a world filled with people, and what technology has shown is relationships still matter (just look at social networking). You will need to contemplate having people on the ground doing the work and building the relationship with existing and potential customers.

T: +61 (08) 9444 3400 jtng@uhyhn.com.au

This is one area we regularly see businesses fall into a trap. To obtain entry to a country you need a visa, and to work the hurdles can be even greater. Many countries have very strict regulations on working, and there are grave risks in sending someone into a country on a tourist visa if they are found to be working. We know of cases where employees have been “stopped at the border” and sent home. Imagine the situation where you have a contract to fulfil and the key staff member to perform that work has been sent home before even getting through the gate! Before you set foot in the country get advice on what the correct visa for your staff is, and what the conditions are. For example, some business visas into Australia are valid for investigating leads and new business only, and the employee must depart after a short period of time. We have seen this visa misused and the employee refused re-entry (for a number of years), when immigration notice a pattern of this. TRAP 3 – WHAT ARE THE TAXES IN THE COUNTRY? This is such a broad topic, because taxes can be income taxes, employment taxes, social security and taxes on business in general. Understand the tax situation and obtain expert advice. When businesses fail to do this they commit to a country and are sometimes shocked at the end of a contract if they make no money (or even lose money). Looking from afar some businesses might look at a country and see they have a massive cost advantage if they can enter it, but afterwards realise the reason for the large cost gap is cost of living and taxes in the other country. TRAP 4 – WHO DO I KNOW IN THE OTHER COUNTRY? Business is about relationships. When you go to a new country your contacts base often starts at the ground floor again. Business relationships aren’t just those you have with customers, these are relationships with bankers, accountants, lawyers, relocation experts, marketing consultants, etc. The key advisors you rely upon to help you drive and grow your business, and provide that expert advice when you need it are no longer around you. Faced with this dilemma most businesses resort to a “well known name” to help them. However, in a new country operations are fledgling and whilst the “well known name” might have been appropriate in the home country where business is well established, in the new country their cost structure may not be appropriate for the fledgling business. In the next issue we will cover our tips and some Frequently Asked Questions (FAQ’s). For more information please contact James Tng on jtng@uhyhn.com.au / (08) 9444 3400

www.uhyhnperth.com

Membership WE ARE PROUD TO WELCOME OUR NEW MEMBERS: MWH Global, Inc. Is a premier international infrastructure engine company specialising in global wet infrastructure. Providing technical engineering, construction services and consulting solutions to protect, enhance, store and distribute water.

Saint-Gobain PAM is the worldleader in the production and exportation of ductile iron pipe systems.

Groupe SEB is a multispecialist group, and is today the world leader in Small Household Equipment.

Aussie Orientation Services provide relocation services that help you relocate workers to Australia. The company is family owned and operated and is based in Perth, Western Australia.

Hydrodec Group plc is a re-refinery providing advanced oil and chemical access technology, products and services to industry.

Portal Financial Services is a holistic business offering a wide range of services in Financial Planning, Risk Insurance, Superannuation, Tax Strategies and Finance Broking under one roof.

Oâ&#x20AC;&#x2122;Sullivan&Ruffilli is a law firm providing comprehensive services in the areas of Immigration, Criminal, Commercial & Residential Property, Convenyancing & leases, Family, Wills etc.

Randstad Pty Ltd is a job search and recruitment agency, specialising in solutions for flexible work and HR services.

Petromod specialises in technical services for the oil and gas industry including; hazardous area inspection, commissioning of electrical, instrumentation and mechanical services both onshore and offshore. They are located in Perth, WA and work all locations in Australia and around the world.

The Point in Albert Park is an upmarket waterside steak restaurant located in South Melbourne, Victoria that features a modern European menu.

The Francaaustralia agency, based in both France and Australia, represents over 100 Australian universities and language centres and gives access to professional and university language training and courses.

Safe Mate is an innovative community program for surfers and beach-goers who care about their own safety.

Redman Labs specialise in the development, manufacturing and supply of an array of quality suncare and skin care products located in Western Australia.

DĹŤcere is an Australian-based online education provider offering courses in business and management.

RETAIL & LUXURY 61

Business Services As a member of CCI France International, The French-Australian Chamber of Commerce and Industry (FACCI) offers a comprehensive range of business services and communication tools to provide you with the necessary infrastructural support should you be looking to expand, find new commercial partners, or establish your business in Australia and France. To find out more about FACCI Business & Trade Services, click here or contact trade@facci.com.au

BUSINESS DEVELOPMENT

Evaluating your potential and finding the best possible partners for your company.

SETTING UP A BUSINESS

Membre de

FACCI benefits from an extensive network of professional members and service providers specialised in the procedures in setting-up a business in Australia or in France (chartered accountants, immigration agents, business lawyers).

BUSINESS

SERVICES Adelaide l Brisbane l Melbourne l Perth l Sydney

DOMICILIATION

The Chamber provides domiciliation services to any company wishing to establish themselves in Australia.

HOSTING / OFFICE RENTALS

FACCI offers hosting solutions in our business development missions. Available in our Sydney, Melbourne, Brisbane Perth and Adelaide Chapters.

COMMUNICATION AND MARKETING

The French-Australian Chamber of Commerce and Industry offers customised solutions and services to ensure the success of your communication campaigns.

PUBLICATIONS

FACCI publishes regular market reviews, sectoral sheets, and France-Australie webzine.

AOG 2015 The Frenchâ&#x20AC;?Australian Chamber of Commerce & Industry (FACCI), UBIFRANCE and GEP AFTP â&#x20AC;? GEP APAC (Association of French Companies and Professionals in the Oil, Gas and related Industries) are jointly hosting a stand during the Australasian Oil & Gas Exhibition & Conference (AOG) to be held in Perth from 11 to 13 March 2015. The FACCI-GEP stand offers a unique opportunity to introduce and showcase products and services to the most influential local decision makers. The stand will provide companies with great visibility and a networking platform to turn contacts into contracts. http://www.facci.com.au/business-services/australasian-oil-gas-expo/

62 RETAIL & LUXURY

Keeping energy simple since 2005 ELECTRICITY

GAS

Since 2005, Simply Energy has been providing gas and electricity to residential homes and businesses across Australia.

Today, we are one of Australiaâ&#x20AC;&#x2122;s fastest growing energy retailers and we are proud to be powering the lives and businesses of customers with almost 500,000 gas and electricity accounts across Victoria, South Australia, New South Wales and Queensland.

Simply Energy is jointly owned by GDF SUEZ Australian Energy (72 per cent) and Mitsui & Co Ltd (28 per cent).

To find out how we can help keep your energy needs simple

visit simplyenergy.com.au

Adelaide (SA Chapter)

229 St Vincent Street PO Box 212 Port Adelaide Business Center SA 5015 T. (+61 8) 8240 8309 F. (+61 8) 8447 8644 sa@facci.com.au

Brisbane (QLD Chapter) Level 3, 370 Queen Street Brisbane QLD 4000 T. (+61 7) 3339 7016 F. (+61 7) 3003 0499 qld@facci.com.au

Melbourne (VIC Chapter) Level 10, 155 Queen Street Melbourne VIC 3000 T. (+61 3) 9600 0000 F. (+61 3) 9600 0005 vic@facci.com.au

Perth (WA Chapter)

Level 24, Allendale Square 77 St Georges Terrace Perth WA 6000 PO Box 7506 Cloisters Square PO WA 6850 T. (+61 8) 6141 3384 F. (+61 8) 6141 3384 wa@facci.com.au

Sydney (NSW Chapter)

Level 26, 31 Market Street, Sydney NSW 2000 PO Box Q1553, QVB NSW 1230 T. (+61 2) 9099 1320 F. (+61 2) 8283 8876 nsw@facci.com.au