International Marketer’s Blog

The historic East India Company is to be revived as an international consumer brand, beginning with a luxury food store launch in London.

The brand, established in 1600 and one of the best recognised international trading names, begins its twenty-first century revival with the opening of Fine Foods in Mayfair. It will then expand to Asia, the Middle East and the United States via retail, e-commerce and selected wholesale operations. A deal has already been struck to supply a Japanese retail chain with its food products, a move which suggests implications for the company’s international retail marketing strategy.

At the helm is Indian-born entrepreneur Sanjiv Mehta, 48, who acquired the company in 2005 and has since invested some £12m in it. ”The essence of the brand is in the stories it has to tell and in connecting people across the world,” Mehta told the Financial Times.

Further investment of $US100m is planned for expansion over the next five years. The company’s product portfolio will build on the brand’s heritage, including drinks, furnishings, publishing and real estate. (more…)

Polo Ralph Lauren has regained direct control of its operations in South Korea amid Asian expansion plans.

In a move that will enable the homewear and clothing company to operate more efficiently and consistently across Asia, it has agreed to buy back wholesale and retail distribution from its South Korean licensee, Doosan Corp. The deal, worth $47 million, will be effective from December 31, 2010,

Chief Operating Officer Roger Farah said that assuming control of South Korea would make the company’s Asian operations “more closely aligned with our global brand positioning and objectives�. He also explained that the company’s fully integrated Asian strategy will “optimise the unique opportunities of each country�.

CEO Ralph Lauren added that international expansion was of highest strategic priority for the brand, and that South Korea is one of its largest markets. The move suggests implications for the company’s international retail marketing strategy. (more…)

French high fashion house Hermès is rolling out a new luxury brand in China in September, with the aim of increasing market share in the world’s second largest luxury goods market.

The new brand, Shang Xia which means “up and down� in English, has been developed in China with the Hermès Chinese team, in an effort to appeal to more Chinese consumers with localized products. A new Shang Xia shop is due to open in Shanghai selling tableware and furniture.

However there has been concern amongst commentators that Shang Xia will dilute the Hermès brand and discussion about whether designing products specifically for the Chinese market will be a success.

Quoted in an article in the Financial Times this week, Shaun Rein of China Market Researchgroup in Shanghai, said “Foreign brands want to say: ‘We are foreign’â€�. He said “most Chinese consumers did not want made-for-China products.â€� Sun Yimin, an expert on luxury consumption at Shanghai’s Fudan University commented, “shoes, handbags and jewellery that are obviously of foreign design sell much better than such products designed for the local marketâ€� (more…)

Swedish marque Saab has begun rolling out a global marketing campaign; its first global campaign implementation since being rescued in a buyout by luxury carmaker Spyker.

The multimillion-pound campaign aims to communicate the message to consumers that Saab is continuing as a brand using the strapline ‘Anything but ordinary’.

According to David Pugh, marketing and PR director for Saab, implementation of marketing strategy has been developed around three main objectives: Created by advertising agency Lowe Brindfors, Lowe’s Swedish office, the first objective is to highlight Saab’s Swedish heritage, which, Pugh claims, will associate the marque in consumers’ minds with style and good design.

A second strapline ‘So Swedish, so Saab’ will be used in the campaign, while an elk, the emblem of Sweden will form part of the advertising creative. The third objective highlights the power and efficiency of the Saab 9-5 using the company’s background in aircraft design.

According to Marketing Magazine, international marketing activities will run across TV, outdoor, print, digital and direct with idents on Sky due to go live this week. (more…)

Louis Vuitton Moët Hennessy (LVMH), one of the world’s largest luxury goods conglomerates is overhauling its agency arrangements and global digital strategy for its Moët & Chandon range, in a bid to reinforce its online marketing operation in Asia and boost sales in the region.

The review comes in response to declining sales in established markets following the recession. In the UK, currently the biggest export market for champagne, the premium brands’ sales have fallen by 9.6 percent in 2009 according to Mintel.

As part of the re-evaluation, the report from Brand Republic says Moët has called for a review of its global digital agency arrangements and has approached agencies with a brief. The review’s remit specifies creative and CRM duties. The incumbent global agency is Mother based in London.

Angela Lam, regional marketing and research manager at Moët Hennessy Asia-Pacific, confirmed that the review, implemented by LVMH’s central marketing operation in Paris, includes Asia where the brand does not currently have an established online presence. (more…)