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What’s happening in Luxury – Edrington Week, May 2017
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What’s happening in Luxury – Edrington Week, May 2017
An international company 3000 employees (including JVs) with more than 60% based internationally
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Main office in Glasgow Regional offices: New York and Singapore Edrington companies Joint ventures in UK, Spain, and Russia
What’s happening in Luxury – Edrington Week, May 2017
Leading brands
5 What’s happening in Luxury – Edrington Week, May 2017
What’s happening in Luxury – Edrington Week, May 2017
THE FOUR SPEAKERS WILL DRAW OUT THESE KEY POINTS The luxury consumer The luxury consumer has evolved from high-net-worth shoppers with lavish penthouse condos and fat investment portfolios to consumers with a steady cash flow, but little accumulated wealth
Consumer insight
Successful luxury brands
There are 6 key consumer insights that define the changing consumer
There are 8 pillars of a successful luxury brand
Roca brothers
Luxury whisky
Key cities
Successful luxury collaborations must align with The Macallan positioning - The Roca Brothers are a perfect fit
The luxury whisky category is on fire and The Macallan defines “prestige whisky�
Key cities are the building blocks of Luxury Marketing
Cuisine and luxury Cuisine is fast growing part of the luxury category and at The Macallan we have an inspiring experiential collaboration with El Celler de Can Roca
London London is one of the worlds leading luxury cities and unless The Macallan has to win here to win globally
INTRODUCTION TO OUR SPEAKERS
Glen Gribbon
Jaume Ferras
Lydia MartĂnez
Marketing Director The Macallan
Global Marketing The Macallan
Founder & Managing Director of Master for You
Geoff Kirk
Gareth Brown
Director of Prestige The Macallan
UK Marketing Director Maxxium UK
LUXURY/ HISTORIC EVOLUTION In the last 3 decades the luxury world has evolved more than ever before LUXURY GOODS IN THE PAST (ancient-XVII)
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Aristocrats, European kings, Chinese emperors Best craftsmen
CAPITALISM & BOURGEOISIE (XVII-X.XIX)
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Industrial revolution Traders growth From tailor-made to innovative products
THE DEVELOPMENT OF LUXURY PRODUCT (XX)
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Higher mid-class Mass consumption Product diversification LVMH and Richemont More brand investment Use of celebrities
THE GLOBALIZATION – DEMOCRATISATION (XXI)
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Globalization Rise of China New technologies Demographic changes Experiential luxury
LUXURY/ MEANING • • • • • • • • • •
Superior goods Expensive Not exclusive to the “super-rich” Inessential Desirable Perception of scarcity Difficult to obtain. Flags “I have made it” It is “quality of life” Freedom to refuse to live by habit
LUXURY/ SEGMENTATION •
The global luxury market exceeded €1 trillion in 2016 (4% growth)
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Shift away from goods and toward experiences such as travel and gastronomy. •
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WORLDWIDE LUXURY MARKET, 2016* (€ BILLION)
“Food is the new fashion” is the mantra that increasingly guides development. Large and growing middle class in China with more disposable income for luxury purchases and luxury baskets diversification including experiences.
*Source: Luxury Goods Worldwide Market Study Fall-Winter 2016. Bain&Company, Inc. / MckKinsey.com
LUXURY/ DISTRIBUTION CHANNELS: ONLINE •
Online sales continued to grow rapidly (8% share of the global industry), representing the thirdlargest global market in the world for personal luxury goods, after the US and Japan
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In 2016 alone, the market for online luxury goods grew 13%, significantly outperforming the rest of the personal luxury goods market
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Over the next several years, digital will continue to take market share from physical stores
LUXURY/ PRICING MODEL •
Pricing can be a major important issue
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The rise of e-commerce and global tourism growth create greater transparency around international price differentials
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Price-conscious luxury shoppers are struggling to reconcile the price of luxury products with their real value
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Luxury brands must assess how to mitigate volatility and how best to deliver at local and global levels: managing inventory to accommodate fluctuations in tourist spending and coordinating pricing and markdowns across markets and channels
LUXURY CONSUMER/ TODAY •
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The younger the generation the more drivers
It’s only going to get larger and more heterogeneous, both geographically and demographically
LUXURY CONSUMER/ TODAY Why Millennial HENRY’s are important for luxury brands? Fastest growing consumer segment: • 31% increase in luxury spending over 1 year vs. 19% increase for boomers and 23% for gen X Increasing value: • They represent future ultra-affluent and wealthy consumers • X4 larger than the ultra-affluent market Fidelity: • A personal connection guarantees future purchases A very powerful and influential millenial segment: • They have a huge impact over the entire generation
LUXURY CONSUMER/ INSIGHTS
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They are using multiple tech devices
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Live events, instant sharing
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They seek out quality, authenticity and rapidity
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Thirst for culture extends beyond their value
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They review blogs before making a purchase
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They are smart consumers who know precisely what they want
LUXURY CONSUMER/ INSIGHTS
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They are brand loyal
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They expect brands to give back to society
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They want to engage with brands on social networks
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Transparency, they want to know every aspect of your brand
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They want to co-create products with companies
THE 8 PILLARS OF A SUCCESSFUL LUXURY BRAND
1. RARITY
2. EXCELLENCE
3.EXPENSIVENESS
4.ICONOGRAPHY
5. HONEST
6. TAILORED
7. PLEASURABLE
8. EXPERIENCE
5 years ago‌
We started a global collaboration with the 3 Michelin stars Restaurant in Girona, El Celler de Can Roca, and its three founders; Joan Roca, Josep Roca and Jordi Roca.
WHY?
1.Haute cuisine is an experience that involves the enjoyment of the finest spirits and wines among others
WHY?
2.Gastronomy is one of the biggest global platforms to engage Michael
WHY?
3.The humble personality and life of the Roca brothers. Always committed to excellence, family values and philanthropy
WHY?
4.Jerez wines are a passion for the Roca brothers and define what our spirit is all about
KEY ACHIEVEMENTS OF THE ROCA BROTHERS OVER THE LAST 5 YEARS
1.Maintain 3 Michelin Stars
KEY ACHIEVEMENTS OF THE ROCA BROTHERS OVER THE LAST 5 YEARS
2.Be the most awarded Restaurant in the world •
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Best restaurant in the world in 2013 and 2015 Second best in 2014 and 2016 Third best in 2017
SOURCE: The World’s 50 Best Restaurants
KEY ACHIEVEMENT OF THE ROCA BROTHERS DURING THE LAST 5 YEARS
3.United Nations Ambassadors
KEY ACHIEVEMENT OF THE ROCA BROTHERS DURING THE LAST 5 YEARS
4.Animated Land
KEY ACHIEVEMENTS OF THE ROCA BROTHERS OVER THE LAST 5 YEARS
5.Designing a Menu for NASA
KEY ACHIEVEMENTS OF THE ROCA BROTHERS OVER THE LAST 5 YEARS
6.The fair trade Chocolate Factory
KEY ACHIEVEMENTS OF THE ROCA BROTHERS OVER THE LAST 5 YEARS
7.Humanitarian Tour with BBVA
THE MACALLAN AND THE ROCAS THE PERFECT PARTNERSHIP
Values
Knowledge & Continual Learning
Long-term vision
Skills
Highly successful partnership
WHAT WE HAVE DONE OVER THE LAST 5 YEARS
1.Charity dinners
WHAT WE HAVE DONE OVER THE LAST 5 YEARS
2.Masters of Taste
WHAT WE HAVE DONE DURING THE LAST 5 YEARS
3.Launch of Rare Cask
WHAT WE HAVE DONE DURING THE LAST 5 YEARS
4.Collaborate in Masters of Photography 6
WHAT WE HAVE DONE OVER THE LAST 5 YEARS
5.Co-creation of Edition 2
WHAT WE HAVE DONE OVER THE LAST 5 YEARS
6.Time Captured
WHAT HAVE WE DONE OVER THE LAST 5 YEARS
7.Global Tour: US, Mexico, Singapore, Russia and Spain
AWARDS
THE MACALLAN PRESTIGE/ THE EVOLUTION
EXCELLENCE
ICONOGRAPHY
EXPENSIVENESS
TAILORED
HONENSTY
PLEASURABLE
RARITY
EXPERIENCE
HERITAGE •
Strong legacy dating back to 1824
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Continued ethos of product excellence through generations
MODERNISATION •
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Evolution of the brand identity to match the perceptions of the whisky
SCARCITY •
Consumer driven
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Inherent challenges within the single malt category
Marketing the brand globally •
The ‘nice problem to have’
FUTURE •
Responding to the evolving & varying nature consumer demand
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Differentiation of product, experience and approach
THE MACALLAN PRESTIGE/ FULL CIRCLE MODERN CLASSIC
LEGACY
LUXURY
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Anniversary Malt Releases
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Fine & Rare Collection
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The Macallan in Lalique
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Gran Reserva Editions
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Classic Aged Macallan
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Masters of Photography
THE MACALLAN PRESTIGE/ THE FUTURE
COMPETITION •
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Direct Indirect
CONSUMER
SCARCITY
Engagement
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Activation
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Product
Experience
A BAD DAY IN LONDON IS STILL BETTER THAN A GOOD DAY ANYWHERE ELSE
THE MACALLAN/ IN LONDON
London is UNIQUE
Tourism & business attracts over 131M
13M people every day
The world’s NO.1 city for billionaires
THE MACALLAN/ IN LONDON Number 1 destination for high net worth and ultra high net worth individuals 1 NEW YORK
LONDON
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2 HONG KONG
SINGAPORE
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5
TOKYO
THE MACALLAN/ IN LONDON
To become the ultimate luxury spirit in the world’s leading cities
THE MACALLAN/ IN LONDON
Luxury Customer
Show case events for Ltd.
Engagement
Editions
Customer Salience
THE MACALLAN/ IN LONDON
The Lanesborough
The Connaught
The Ritz
FIVE MACALLAN SPIRITUAL HOMES IN LONDON
Claridges
The Savoy
QUESTIONS?