Where is the Rest of 2008 Going? - Marketing Luxury Products and Services in Challenging Times

Date:
Tuesday, April 29, 2008

Time:
6.00pm - 8.15pm

Location:
Debevoise & Plimpton
919 Third Avenue
(between 55th and 56th Streets)
**Please use the 55th Street Entrance**

RSVP by writing to rsvp@luxurycouncil.com by no later than Tuesday April 22nd.

Please remember to bring ID with you for building security.

In the event that your plans change, we would be most appreciative of the courtesy of a cancellation.

The opening line of David Moin's front page article in Women's Wear Daily on March 6th was unequivocal: "Luxury is hitting some speed bumps."

WWD goes on to quote Burt Tansky of Neiman Marcus saying, "Our sense is that the the aspirational customer has pulled back somewhat,... Nevertheless, we feel confident that the pure luxury customer, the affluent to very affluent, will continue to demand only the finest."

This week’s New York Times article “Despite Tough Times, Ultrarich Keep Spending” (April 14, 2008) tells a similar story to Tansky’s, opening with “who said anything about a recession?”. David Monn, an event planner in New York is quoted saying “When times get tough, the smart spend money.”

Where does the truth lie and how do top marketers see it?

After years of media and consumer enthusiasm and unabated growth of the luxury market and luxury spending, the pendulum seems to be swinging the other way: FROM the fascination, even obsession with the explosion of the luxury market and top consumers' (the 3.2 million in the U.S, with liquid portfolios of $1,000,000 or more AND the considerable community of aspiration/ symbolic buyers - those with household incomes in the $250 - $500k range) seemingly limitless spending and growth TO rampant predictions of recession and gloom.

As the divide between the merely wealthy and the ultra wealthy widens how will this effect the current luxury market and what role does the talk of recession play?

We will open with an overview of the economy and retail sector by Mr. Robert McCooey followed by insights from each of our panelists.

Robert H. McCooey, Jr. joined The Nasdaq Stock Market, Inc. (NASDAQ) in December 2006. As Senior Vice President of New Listings and Capital Markets, Mr. McCooey has a dual role managing NASDAQ’s efforts in attracting new issuers, including IPOs and exchange switches as well as leading the Capital Markets Group efforts to engage private equity firms, investment banks and institutional investors on key NASDAQ issues, initiatives and services.

Formed in 2006, the Capital Markets Group is the first centralized group at NASDAQ that examines customer needs across all business units and works to further NASDAQ’s mission among private equity, investment banks and institutional investors, aiming to enhance their experience with NASDAQ and supporting their business goals and growth plans.

Prior to joining NASDAQ, Mr. McCooey served as the Chief Executive Officer of The Griswold Company, an agency he founded in 1988 which served prominent and developing buy-side institutions. He also served on the New York Stock Exchange Board of Executives from 2003 – 2006 and was a New York Stock Exchange Floor Official for eight terms. Mr. McCooey served on the NYSE’s Group Market Performance Committee and was chairman of the NYSE’s Technology and Planning Oversight Committee. In addition, he served on the Board of the NYSE Foundation, which he joined in 2003; the board of the Securities Industry Automation Corporation (SIAC), the technology subsidiary of the New York Stock Exchange and the American Stock Exchange; and on the Committee for Review, part of NYSE Regulation.

Mr. McCooey has been a regular guest on CNBC and has often been quoted in national news publications regarding stock market activity. He is a director of Iona Preparatory School, as well as St. Vincent’s Hospital in Westchester, NY. Mr. McCooey attended the College of Holy Cross and resides in Rye, NY.

www.nasdaq.com

Sharon R. Buntain is no stranger to the luxury goods industry. Her career has progressed with a common thread of leading the American subsidiaries of European brands and her bi-lingual and bi-cultural qualities have served her well in those settings. Her experience includes having establishing her own consulting business for French companies entering the US market early in her career. She then took the French company Augros, world leader in the design and manufacturing of packaging materials for the cosmetic and fragrance industries, from startup to presenting the company in the world markets when they went public on the French stock exchange. Before joining Links of London Buntain served as President and CEO for Lalique North America, the prestigious French crystal company.

Appointed President and CEO of Links of London in April 2004, Buntain oversees Links of London’s four channels of distribution in the Americas; wholesale, corporate sales, internet sales and the fast growing retail division. The business has more than tripled since her arrival four years ago, going from two stores to sixteen as of this writing.

Links of London is a lifestyle brand known for its innovative fresh designs for jewelry for women and men in silver and 18 kt. gold as well as a gift offerings in leather and silver. “I am confidant that Links of London’s fashion forward concepts presented in our unique packaging have enormous potential in this market” states Buntain. “The brand’s relatively gentle price points combined with the luxury shopping experience constitute an engaging offer in today’s market. I look forward to a period of continued growth and expansion.”

With a penchant for thinking out of the box, Ms. Buntain has a flair for marketing and has been a featured speaker at the PMA conferences, and is a frequent guest speaker at for the International Business programs at Lehigh University and Penn State. Throughout her career she has been an active member of Cosmetic Executive Women, Comite Colbert, and BABI.

Ms. Buntain attended Pennsylvania State University, is a veteran of non paid volunteer work with the Haitian community, and is the proud mother of two sons.

www.linksoflondon.com

Faith Hope Consolo, the “Queen of Retail”, is the most renowned retail broker and consultant in the country, not only for her knowledge, reputation, and taste, but also for her key role in revitalizing and sculpting retail corridors across the nation and beyond. The volume, size, and distinction of her transactions, combined with her extraordinary experience in the luxury retail and real estate markets, have set a high standard among real estate specialists. She has advised and encouraged many retailers as they emerged as major players nationwide and has helped transform lackluster neighborhoods into sought-after shopping districts. Ms. Consolo’s extensive luxury expertise is based in Manhattan but her reach is worldwide. She has mastered the art of securing leases in locations where companies will maximize their profits while enhancing the neighboring stores and retail landscape. To Find the Best Retail Space – You Need Faith©.

As Chairman of Prudential Douglas Elliman’s Retail Leasing and Sales Division, a position created especially for her, she is responsible for providing comprehensive retail counsel to an array of tenants and landlords, both nationally and internationally. Since joining the firm in January 2005, she has completed numerous deals totaling multi-millions of dollars for some of the most recognized names in retail. Her team identifies and secures the best locations for prominent international retailers’ United States operations, and represents some of the country’s top landlords in finding high profile retailers for their properties.

The director of retail operations for the 50 Prudential CRES Commercial Real Estate offices (retail services divisions) located nationwide, Ms. Consolo has completed deals in every key market across the United States. Her understanding of the market and coast-to-coast experience enables her to strategize with retailers all over the country, from unveiling a national expansion to the debut of a flagship store. Ms. Consolo has demonstrated her prowess in completing deals along main streets and in shopping malls, and continues to develop and expand her reach.

Ms. Consolo stresses that successful retail brokerage is more than just site selection and negotiation; it is also an involvement in transforming communities and “telling America where to shop.” She possesses the ability to envision a smaller stretch of retail space and its potential relationship to the larger surrounding area. As the sole retail consultant to the Economic Development Corporation, she helped revitalize areas such as Times Square and Penn Station. She is recognized as a key player in Fifth Avenue's return as the "Luxury Walk" and Madison Avenue's achieving its glitter as the "Golden Mile." Ms. Consolo has brought many prominent retailers to Manhattan, including: Cartier, Versace, Jimmy Choo, Manolo Blahnik, Giorgio Armani, Fendi, Yves Saint Laurent, Bruno Magli, Louis Vuitton, Christian Louboutin, Baccarat, Fogal, Salvatore Ferragamo, Kwiat, Harry Winston, Leiber, Bond No. 9, Calypso, Fresh, Niwaka, Paul Smith, Sermoneta, Tous, Wempe, Wolford, and Zara.

Faith Hope Consolo authors an online publication bearing her name, "The Faith Report." In addition, she is a regular contributor to The New York Times, Wall Street Journal, International Herald Tribune, Financial Times, Bloomberg, New York Post, Reuters, Associated Press, Crain’s New York Business, Luxury Briefing, Network News programs as well as CNN and NY1, Real Estate Weekly, New York Real Estate Journal, Real Estate New York, Real Estate Forum, Retail Traffic and Shopping Center Business, among others.

Ms. Consolo has an impressive academic background, serving as an instructor at New York University, Wharton Business School, Parsons School of Design, and the Steven L. Newman Real Estate Institute at Baruch College. She has lectured before numerous prestigious organizations including: The Association of Women on Economic Development, National Association of Business Owners, Women Incorporated, Institute for International Research, American Institute of Architects, Society of Industry Leaders, International Council of Shopping Centers, and the National Association of Business Owners. She has also spoken before the National Association of Appraisers & Planners, The Women’s Economic Roundtable, the New York Association of Realty Managers, The Real Estate Lenders Association, Institute of Real Estate Management and The Real Estate Academy.

Many honors and awards have been bestowed on Ms. Consolo throughout her career. Prudential Douglas Elliman awarded her the Top Retail and Commercial GCI in 2005, 2006 and 2007, ever since she joined the firm. Crain’s New York named her one of New York's 100 Most Influential Women in Business in 1999 and 2007. In 1996, the revered publication called her one of New York's 75 Most Influential Women in Business and a Rising Star in 1992. In 2007, the New York Post named her one of the top Movers and Shakers in real estate. In 1999, she was Woman of the Year by the Associated Builders and Owners of Greater New York, a first-ever for the trade association. In 2000, she received the AREW Founder's Award, the honor which she originated. Ms. Consolo received another AREW award, that of Outstanding Woman of Achievement, and is a Woman of Valor by the Capuchin Order of St. John the Baptist Friary. The non-profit organization Dress for Success honored Ms. Consolo with a Success at Its Best Award in 2005. The Greater New York Councils Exploring Program named her a Woman of Achievement in 2007.

Prior to joining Prudential Douglas Elliman, Ms. Consolo served as Vice Chairman of Garrick-Aug Worldwide, Ltd. for nearly 20 years. She founded the firm’s international division in 1987 and opened the European office, based in Paris.

www.faith-consolo.com/faithreport.htm

Douglas D. Gollan is President of Elite Traveler, the private jet lifestyle magazine, elitetraveler.com, the private jet lifestyle online, Luxus Networks, the world’s largest provider of a dvertising in private jet terminals, and EOS Class, the inflight magazine for guests of EOS .

Launched in 2001, the publication has successfully developed a worldwide circulation in over 100 countries to the wealthiest consumers (CEOs, Super Wealthy Business Owners, Celebrities, Sports Stars, Politicians and Royalty and their families) through distribution on private je ts, mega-yachts, in first class lounges, pro sports team training facilities, VIP limousines and five-star hotel suites. This unique circulation – audited by BPA - enables the magazine and its advertisers to reach these frequent global travelers when they have time to read as opposed to piling up in mail stacks at their offices and multiple homes. The readers of Elite Traveler are not only huge spenders on luxury goods, but importantly are the opinion leaders and influencers whose purchasing decisions and style choices influence the masses.

In January 2008, Universal Media acquired 100 percent ownership of Luxus Networks, cementing its position as the dominant media company opening the door to the global Super Rich. In March 2008, Elite Traveler soft launched its consumer web site at www.elitetraveler.com and in the same month also debuted EOS Class.

Prior to starting Elite Traveler, Mr Gollan served for 13 years at Travel Agent Magazine Group in a variety of editorial, sales and management positions rising to Managing Director/Group Publisher.

For more information, please visit www.elitetraveler.com.

Steve Nobel is the co-founder and Chairman of The Luxury Home Alliance, established in New York as a ‘green-house’ for innovative marketing collaborations.

He is also founder and principal of NOBELINKS, a consulting practice specializing in the markets for home furnishings, decorative fabrics and interior design, worldwide.

Steve’s wide-ranging network of professionals enables him to quickly recognize trends in design and impart valuable guidance to designers, marketers and others in the home design arena.

A respected leader in the home furnishings market for over 25 years, Steve has held executive positions in marketing, planning strategic growth, manufacturing and licensing. He was an owner and president of The John Widdicomb Company, maker and marketer of fine furniture worldwide including such significant licensed collections as Mario Buatta and Jacques Grange. He also served as Managing Director of Baker, Knapp and Tubbs, Ltd. in London.

Steve is the author of "Aiming at Affluence; Marketing Interior Design to Luxury Clients," in which he presents key insights into the opportunity interior designers can seize in the luxury market. In the book, he sketches the primary attributes of the luxury client, and reveals effective strategies for winning their business and long-term loyalty. Appointed by ASID as a “Distinguished Speaker”, Steve often appears before large audiences of interior designers in showrooms and design centers throughout North America.

For more information, visit www.nobelinks.com.

Lincoln Palsgrove IV, a New York City native, has worked in the marketing field for 15 years. Senior Marketing Manager for South Street Seaport (GGP) since early 2007, he oversees a team responsible for establishing the neighborhood’s Historic District and Pier 17 as one of the top five most visited destinations in the City.

South Street Seaport is a an open air retail center that encompasses historic buildings dating back over 200 years and the modern Pier 17 which is home to the Seaport Music Festival, Children’s Day, Spiegeltent and numerous signature NYC events. Lincoln has set out to distinguish the area as General Growth Properties’ premier urban Marketplace. By introducing a diversity of branding and outreach to the community the Seaport is well on its way to become a major hub for Lower Manhattan’s burgeoning new populace.

Lincoln brings 10 years of employment experience in Lower Manhattan from his tenure at the Alliance for Downtown New York, where he was Marketing Director from 1997. While at the Downtown Alliance his marketing, branding and urban renewal expertise encompassed the orchestration of municipal projects to devise public/private partnerships promoting Downtown’s business core. He produced 8 annual concerts in Battery Park in conjunction with the River to River Festival of which both the Downtown Alliance and Seaport are core presenting partners. The River to River free arts festivals net a $40 million positive impact to Lower Manhattan businesses since inception. His programs helped to distinguish Lower Manhattan as an iconic destination, driving new business development to the area and creating the 24/7 live/work environment for visitors, residents and workers.

Previous to Lincoln’s experience in ‘destination based’ marketing for the second largest business district in the United States he consulted on projects ranging from hospitality, to retail and entertainment. These include work on campaigns that launched Maritime Hotel (2003), Barneys New York Madison Avenue flagship (1994) and Studio 54 (1994). His planning on the Studio 54 project led to that properties transformation from a previously defunct nightclub into a revitalized new venue that eventually became the home for Roundabout Theatre Company and Broadway productions.

After Graduating from New York University in 1994 with a Communications Degree and two Dean’s Honors Awards he joined the Marketing and Communications department at Children’s Television Workshop. As Event Manager, he co-produced programs that supported the ‘Sesame Street’ brand through live tours and special television broadcasts. Lincoln was a four year resident of Lower Manhattan and now resides in West Chelsea, New York City.

General Growth Properties, Inc. is the second largest U.S.-based publicly traded real estate investment trust (REIT) based upon market capitalization. General Growth has ownership interest or management responsibility for a portfolio of more than 200 regional shopping malls in 45 states, as well as ownership interest in master-planned community developments and commercial office centers. General Growth’s international portfolio includes ownership and management interest in shopping centers in Brazil and Turkey. The Company’s portfolio totals approximately 200 million square feet and includes more than 24,000 retail stores nationwide. General Growth Properties, Inc. is listed on the New York Stock Exchange under the symbol GGP.

For more information, please visit http://www.ggp.com.