Some international brands are providing ‘frills’ to the well-travelled Indian consumer—an incentive to buy the brand at home. For example, Espirit India intends to have in-store salons and spas in select stores, a service that is not provided in its international stores. “The service expectation are exceptionally high (in India),” says Espirit (India) COO Manjula Tiwari.

Others like Estee Lauder will provide ‘frills’ because of their different (luxury) brand positioning in India. Wellness and beauty services seem to have become the complimentary norm for high-end women apparel retail. Spa facility, bridal makeup or photo shoot is offered to high spenders at Satya Paul and Samsaara stores while select shoppers at Ritu Kumar get complimentary ‘glow treatments’ at high-end beauty salons.

In-store cafes and lounges are also a new trend with both international and high-end Indian brands. Most brands right from Tommy Hilfiger, Esprit, Satya Paul to lifestyle retailer Shoppers Stop and table-ware brand Magpie have either introduced or are experimenting with this concept. “Women like to chat and hangout while shopping. Hence, we will have a lounge area in our new outlet of Samsaara at Bandra (Mumbai),” says Genesis Colors CEO Nalini Gupta.

Esprit India is checking out the feasibility of in-store cafes and play areas for children. While wellness, beauty, child-care and fashion advisors are mostly on the house; food and beverages could be paid facilities, depending on the shopping patterns. “The store is going to be spread over 5,000 sqft, out of which about 1,000 sqft would be devoted (one floor) to either a wine club or a sushi club or a cafe. It will be a paid service,” says Ms Gupta.

“Indian shoppers still aspire for the bling of a big brand, but it’s extended courtesies on the side that keep them coming back for more,” says CEO of an international label retailing in India.

Brands have also started offering complimentary product maintenance and styling help to select customers. United Colours of Benetton offers free dry cleaning for suits bought at its men formal wear brand Uomo. Wills Lifestyle and Estee Lauder plan to offer personal stylist and makeover help to the high-end regular customers.

Luxury watch boutique chain Ethos offers free home delivery of watches. Connected services like strap size adjustment is on the house “regardless of whether the watch is bought from us or not”, says Ethos GM Rakesh Mohunta.

Huang Yi, a Chinese movie star, and two Chinese top models Shi Liang and Ji Huanbo attended the opening reception of the new store. They displayed many of Gucci’s watch products, including Chiodo, Pantheon, Twirl, and I-Gucci.

With a shopping area of over 40 square meters, Gucci says that the store follows the design concepts of fashion and grace and customers can appreciate and select from a complete series of Swiss made Gucci watches.

Vertu phones

It also became apparent as time went on that they would blend with personal computers, stereos and other electronics, to the point where consumers could carry the world around in a purse or shirt pocket.

At first, this explosion of small portable electronics made watch and jewelry retailers a little nervous: After all, if the phone serves as a pocket watch, why would you wear an additional timepiece on your wrist?

But as cell phones got fancier and more complicated, so did watches—to the point where now, some 20 years after cell phones emerged, the role of both items in the luxury market has changed.

Cell phones were once a status symbol, and it was considered the height of cool to take a phone call mid-meal at a hip restaurant. Today, it takes a little more than that to impress a client or a potential girlfriend.

At the same time, it has become a mark of taste and discernment to collect high-end mechanical watches. It seems that phones haven’t squeezed watches out of the luxury market so much as they’ve forced watchmakers to take their product to the next level. The result? Phones, other electronics and watches are all getting along just fine: often placed side-by-side in the same store, one category helping to sell the other.

“Our watch business is not at all threatened by cell phones,” says Andrew Block, the executive vice president of Tourneau, where Vertu phones have been available for the past five years. “We’re the biggest Vertu retailer in the country, and Vertu has a good chance to edge into our top 10 brands. The phones sell at an average price point of $5,000. They have some amazing features—global reach, an unbelievably strong signal, concierge services—but mainly, Vertu is an image thing. You don’t wear a Vertu on your belt. You walk into a room and put it on the table and say, ‘Here’s my Vertu.’”

Block expects more and more jewelers will carry high-end phones, and certainly watch companies will become more involved in electronics.

In fact, popular watch brand TAG Heuer plans to introduce a cell phone later this year (brand representatives would not provide further details until later this summer).

When the phone does hit showcases, Tourneau intends to carry it.

“Phones are great incremental business,” Block says. “They don’t take a lot of space, and a customer who will pay $5,000 for a phone won’t hesitate to buy a high-end, high-tech watch. I don’t expect people to collect phones the way they collect watches.”

From electronics to watches Meanwhile, at least one high-end electronics retailer is crossing over into watches. Abt Electronics in Glenview, Ill., the country’s largest single independent consumer electronics and appliance store—and arguably the fanciest—has opened the Abt Time Boutique, a store within a store that carries watches ranging from a $100 Skagen to a $12,000 Chronoswiss. Abt also carries one set of Omega’s “Moon Mission” collection—for $150,000.

Abt Electronics

“Watches were the No. 1 request in our customer surveys,” says Michael Abt, president of Abt Electronics. “We added the watch boutique last Thanksgiving, and we’ve found that in a lot of ways, watches are easier to sell than appliances: no delivery, no installation, no dealing with wiring.”

The company also does sell a lot of phones, and the average consumer, male or female, uses the phone as a watch, he says.

“But watches are more of a jewelry item—especially for men, since they can’t collect shoes or handbags the way that a woman does,” Abt says. “Seventy percent of our watch customers are men.”

A near-term goal for the retailer is to attract the highest-end watch brands, including Patek Philippe and Rolex.

“We’re maybe five years away from that,” Abt says. “It took us a long time to get the highest-end audio lines, and it’ll be a similar process: courting the manufacturers, getting them into our store to show them that we’re a luxury store, not an appliance dealer. We’ll have a watchmaker on premises by next year, once we’ve sold about 5,000 watches. We already offer basic services such as sizing and battery replacement.”

Meanwhile, Breil Milano, the Italian watch and jewelry manufacturer, has started using electronic gadgets as promotional devices: most notably a limited-edition MP3 player in the shape of a USB key.

The item was created to celebrate the opening of the first Breil Milano store in the United States, which opened in New York City this past April. But Fabrizio Cattaneo, the company’s U.S. marketing director, cautions watch manufacturers against allying themselves too closely with electronic goods.

“This MP3 player is not something we’re going to sell,” he says. “It was the perfect promotional gift, but we don’t want Breil to be perceived as a high-tech brand because that’s not who we are. We don’t promote technology, but we do emphasize innovation and new materials in our watches and jewelry, as well as new chemical treatments.”

Luxury brands Gucci and Hermès yesterday posted sparkling profits as fears of recession in traditional markets were brushed aside by soaring demand from the well-off.

Gucci parent PPR said first-half operating earnings jumped 24% to €742m (£598m), with chief executive François-Henri Pinault pinpointing the group’s ability to “take advantage of periods of slower growth”.

Hermès, which is extending its holding in fashion house Jean-Paul Gaultier to 45%, said operating earnings rose to €204m from €179m and its profit margin jumped higher to 25.1%.

The two groups’ figures add lustre to the notion that luxury-goods firms are benefiting as much from the turmoil as low-cost food and clothing companies.

Gucci, home to designers Alexander McQueen and Stella McCartney and majority owner of sportswear firm Puma, which backs athletes such as Jamaican Olympic champion Usain Bolt, made an operating profit of €285m, a rise of 13% in real terms. Overall PPR net profit came in up 17% at €344m. The group said: “PPR is confident in its outlook for the second half of 2008 and stands by its objectives for growth and improved financial performance.”

The group also owns Yves Saint Laurent clothing, which reduced its losses to €12m and has sold off its cosmetics arm, YSWL Beauté.

Hermes, makers of luxury scarves and handbags and owners of Lobb, the British shoemaker, said it plans to open or renovate 15 of its stores in the second half of this year in response to increased demand.

French retailer Carrefour, which is engaged in a price war with budget food stores such as Aldi and Lidl, said, meanwhile, its operating profits rose 5.5% in the first six month to €1.4bn on the back of strong demand in Latin America. The world’s second-largest retailer had issued a profits warning at the end of June.

Eventually it would also create enormous opportunity for retail sector. It will entice big companies to do investments and become part of Dubai’s growth & development process through various formats like Leisure & Vacation World, Retail & Entertainment World, Restaurants, Shopping malls, Sports facilities, Health spas, Cinemas, EcoTourism, Luxury hotels, Water theme parks, as these are the main attraction of Modernization

The Palm, Jebel Ali & Jumeirah
The twin palmshaped islands off the coast of Dubai are the luxurious and unique seaside communities of The Palm, Jebel Ali and The Palm, Jumeirah. These manmade islands are considered the eighth wonder of the world and can be seen from space. Each development
will contain 50 luxury hotels, 2,500 exclusive residential beachside villas, 2,400 shoreline apartments, two marinas, water theme parks, restaurants, shopping malls, sports facilities, health spas and cinemas.

The Palm, Deira
This is the third and last development in The Palm series by Nakheel. The Palm, Deira will merge Dubai’s oldest district with the new iconic image of the palm. Located close to historic landmarks and trading ports of Deira Corniche, the Palm, Deira will be a revolutionary addition to the Dubai’s booming freehold property development market.

InternationalCity
The International City encompasses businesses, residences and tourist attractions and is made up of six key areas, including The Central Districts, Dubai Gates, The Dragon Mart, The Residential District, Lake District and the Forbidden City. International City is a melting pot of the diverse cultures and lifestyles that lend Dubai its cosmopolitan air.

Dubailand
Dubailand has been designed to appeal to the widest tourist segments across genders, age groups, world regions and activity preferences. Dubailand has been planned and designed using leadingedge expertise across a spectrum of disciplines. A unique multifaceted development of pure family entertainment and education, with universal appeal, Dubailand will incorporate a critical mass of attractions, an endless mix of day and night activities and a variety of accommodations to encourage longer visits and overnight stays. Dubailand features six theme worlds: Attractions & Experience World, Sports & Outdoor World, EcoTourism World, Leisure & Vacation World, Retail & Entertainment World and Downtown.

Dubai International Financial Center (DIFC)
The Residences in DIFC are located on Park Boulevard and consist of two stunningly beautiful towers comprising of a unique combination of commercial, residential, leisure and retail space in an ultra modern environment. The aesthetically designed 1, 2 and 3 bedroom apartments offer panoramic views of the financial hub, its parks, cafes and entertainment facilities.

The Octelle name is derived from the symbol of “infinity” or “forever” being similar to a figure 8. The symbol is similar to a figure of 8 turned on its side and is reflected by the eight sided design of the Octelle diamond. This octagonal shape is very fashionable and is increasingly the choice of celebrities, having been made popular by the hit film Sex and the City.

The Octelle diamond has been specifically created for Ernest Jones by one of the world’s leading diamond cutters to enhance the infinite natural beauty of the stone and to represent everlasting love. This attention to craft and detail ensure that the Octelle jewellery diamond jewellery collection is of the very highest quality. The symbolic nature of the eight sided diamond, representing the eternal nature of love, makes this diamond jewellery collection ideal for romantic gifts.

The Octelle Collection consists of 12 pieces including diamond pendants, diamond earrings and diamond rings, all set in 18ct white gold across a range of diamond carat weights. With 65 facets the octagonal diamond captures and enhances the beauty and originality of the vintage inspired jewellery featured in this collection. Each piece of jewellery reflects the stunning octagonal shape of the diamond and carries the signature infinity symbol.

Each Octelle diamond is independently certified with a unique serial number, assuring quality. The Octelle Collection is far more than a collection of jewellery, it is a bringing together of high quality design, materials and jewellery expertise to offer an original, stylish and evocative range of jewellery at competitive prices.

To celebrate and promote the launch of the extended Octelle collection, Ernest Jones has redesigned and strengthened the Octelle brand colour to a modern and vibrant purple, incorporating the beautiful octagonal stone along with the Ernest Jones and Octelle brand logos and the legends; ‘The Shape Of Unique Radiance’ and ‘Only at Ernest Jones.’

DJs group general manager, financial services and marketing, Damian Eales, said a major benefit of the card was that customers would receive store gift cards for making their everyday purchases on their David Jones American Express Card.

“Our customers consider David Jones gift cards the ultimate reward for women in particular, the choice and flexibility of gift cards is superior to the inflexible nature of most frequent flyer programs,” Mr Eales said.

“For our customer, turning everyday spending on groceries, petrol, or bills into a pair of sass & bide jeans or an Alannah Hill dress or ModelCo cosmetics has enormous resonance.”

The David Jones American Express card is available for a membership fee of $99 and an annual interest rate of 20.49 per cent.

The retailer had last week decided to cease its rewards program for shareholders from February 1, 2009, after a 12 month review of the program found other major retailer were moving away from this trend.

DJs said in a statement today that in the largest ever direct mail campaign the company has conducted, it had already mailed all of its Storecard customers application forms and they have started to apply.

“An extensive television, press and magazine campaign will follow in coming days,” it said.

The company believes the launch is expected to spark a change to the industry structure of credit cards in Australia.

“The Australian market has nowhere near the penetration of co-branded credit cards we have seen in the US and the UK,” Mr Eales said.

“Internationally, almost every department store offers a card that can be used outside of their store.”

“Luxury products have to challenge you in order to buy them,” says Marianna Tsoureka, a veteran luxury retailer whose family has teamed with the Italian brand on the new store. “Greeks are consumers, but they didn’t have access” to a lot of top brands.

Up to now, that is.

Only in the last few years have international fashion brands slowly made their entrance. Louis Vuitton was one of the first to arrive, followed by Hermès, Salvatore Ferragamo, Tod’s and Burberry. Dior and Balenciaga arrived just last year.

But the pace is picking up this autumn, with several additions to the Greek capital’s luxury map – although many of the newcomers still are collaborating with Athens’s most-recognized fashion names.

“While obviously China and India are very important to everyone in the luxury market, especially in these economic times, the Oscar de la Renta customer has a certain taste level, and lifestyle, that will only be found in certain developed countries,” says Alex Bolen, chief executive at Oscar de la Renta.    

De la Renta is opening a 300-square-meter, or 3,230-square-foot, store on Oct. 15 in the affluent suburb of Kifissia, a project that is being done in collaboration with Harris Tsimoyiannis, its longtime local partner. A store also is opening a few days earlier in Madrid, but the fashion house is calling the Athens’s site its first official monobrand store in Europe.

Its partner, the Tsoureka family, also owns the 30-year-old retailer Rossi and runs the Luisa multibrand outlets, which showcase Alexander McQueen, Etro, Missoni, Stella McCartney and Yves Saint Laurent, among others.

Thanks to Anastasia Tsoureka, the daughter of Marianna and her husband Zafiris, Rossi also is introducing Lanvin and Manolo Blahnik franchises. Lanvin opened in the Kolonaki neighborhood Oct. 4 and Blahnik is set to pen in the same area later in the month.

“The arrival of the luxury sector in Greece is long overdue and, though slow-paced, it comes with a high chance of success when it occurs in prime spots and attracts consumers in selected areas,” says John Arapoglou, an equity research analyst at Piraeus Securities.

High-end retail also is getting a mall. The Golden Hall, the result of a €75 million renovation of the former International Broadcasting Center for the 2004 Olympics, is expected to open at the end of November. The building’s original skeleton has been retained, but its 40,000-square-meter interior is being rebuilt to house fashion labels like Furla, Salvatore Ferragamo, Tod’s, Tommy Hilfiger, Loewe, Marithé et François Girbaud and Longchamp.

While much of the planning for these projects was done long before the current financial turmoil, the retailers all voice confidence in their eventual success.

“The timing of our investment in the brands is not affected by possible opportunities that arise sometimes in period of crisis,” notes Aris Rakas. “It rather has a longer term outlook compared to the current crisis, which we hope is a cyclical phenomenon.”

His Rakas company is putting the finishing touches on two Marc by Marc Jacobs stores – the first, a 160-square-meter shop, opened in Kolonaki on Oct. 3; the second is to be at the Golden Hall. It also teamed with Diane Von Furstenberg to open a 130-square-meter store on Sept. 26 in Kolonaki.

The Bahrain Saks Fifth Avenue store is congruent with the Saks Fifth Avenue stores in the United States in both product and service, while catering to local tastes and preferences. The unique store includes distinctive offerings from established and emerging American and international designers and presents a sought-after collection of fine designer apparel for Men and Women as well as jewelry, accessories, handbags, fragrances, cosmetics, intimate apparel, bridal, children’s apparel, and select gift items.

The store will also feature Saks Fifth Avenue’s world-famous 10022-SHOE salon. Saks Fifth Avenue is known for its extraordinary personalized customer service, and the Bahrain location includes numerous in-store amenities such as skin care treatment rooms, luxury fitting rooms, and the Fifth Avenue Club, its complimentary personal shopping service. The store will also offer an ongoing calendar of special events such as fashion shows and personal appearances by designers.

In 2003, the Company entered into a license agreement with Style Avenue Middle East (“SAME”) to open licensed Saks Fifth Avenue stores in the United Arab Emirates, Qatar, Kuwait, and Bahrain. The Bahrain location will be the third store opened under this agreement. The first location was opened in Dubai, U.A.E. in September 2004, and a separate Saks Fifth Avenue men’s store was opened in Dubai in June of this year. The Bahrain store will be operated by Style Avenue Bahrain, the sublicense of SAME and a joint venture between Kapico Group, Damas Jewellery, and The Chalhoub Group, along with esteemed Bahraini business leader Abdullah Buhindi.

Stephen I. Sadove, Chairman and Chief Executive Officer of Saks Incorporated, commented, “We are very pleased to bring Saks Fifth Avenue to Manama, Bahrain, which is a great shopping and tourist destination. We have worked closely with Style Avenue Middle East to deliver an extraordinary assortment of luxury brands and experiences to the residents of and visitors to Bahrain.”

Sadove concluded, “While our principal focus remains on improving the operations of our domestic stores, the opening of select international licensed locations can broaden the reach of our brand and produce a supplemental income stream for the Company.”

“We don’t have enough boutiques across the globe to retail these exclusive products. And we don’t want to sell them through the watch and jewellery stores as they are more mass channels,” added Babin.

The company has already designed memory sticks, external hardware and other techno-accessories for men. “These accessories are made with advanced technology from the TAG Heuer stables and we are currently testing these products,” he added.

In India, TAG Heuer retails in 24 cities, through 74 outlets. The company sold around 11,000 watches last year.