The Evolution of Luxury

The IndustryKEY TRENDS

TREND 1

United States:

Main contributor for future growth

450

300

22029 20 7 6

49 330

150

0

+$110B

2014 2021AMERICANS CHINESE EUROPEAN MIDDLE EASTERN OTHERS

P&E Luxury Market Growth by NationalityTOP

LUXURY

New Growth Drivers

US Consumers

137 MUNDER $75K

96 M$75K - $250K

2013 2014

$250K+9 M

141 MUNDER $75K

91 M$75K - $250K

$250K+8 M

TOTAL ADULTS: 239 M TOTAL ADULTS: 242 M

1500

1000

500

067 61

121 41 49 62

354

ACCESSORIES APPAREL WATCHES &JEWELRY

PERFUME&COSMETICS

FURNITURE HOTEL & EXCLUSIVE VACATION

FOOD & WINE

Personal Luxury$290B

Experiential Luxury$465B

Covered by True-Luxury Global Consumer Insight

Luxury Market ($B,2014 retail value)

P&E MARKET:$755B

350

CARS & YACHTS

Cars & Yachts$350B

The rise of online luxury

2007

2.53.6

5.6

15.0

9.0

2009 2011 2013 2015F

% on total luxury

1.2% 5%+

• +25% YoY

• Omnichannel

• Content

5 Macro Trendsin Travel1. Experience Collectors

2. Travel by passion

3. Value for time

4. Family & Group Travel

5. Sharing economy

TREND 2

From “having” to “being”

Having

For self only

Usually visible to others

For the mid-long term Instant pleasure

Not always visible

Often with others

Being

PERSONAL LUXURY GOOD EXPERIENTIAL LUXURYHYBRID

“Memories are all we get to keep from the

experience of living. We make our buying

decisions in terms of our memories”

-The Happiness Halo - Lippincott

TheSharing Economy

Experience

The

Experience

TheHotel

Experience

Competitive Advantage

Exceptional, Personalized Service

Authentic, Unique Experiences

Unmatched Knowledge and Expertise

Curated Portfolio of Luxury Properties

No Extra Fees

De-randomizeexperience

Guest Life cycle

How

DATA TECHNOLOGY PEOPLE CONTENT EXPERIENCE

TREND 3

Word of Mouth:

#1 influencer for luxury

SEEN WORN

CELEBRITIES

EVENTS

TAILORED OFFER

TV & MOVIES

BRAND WEBSITE

STORE WINDOWS

WoM

MAGAZINES

13%

20%

20%

22%

24%

34%

39%

43%

50%

SEEN WORN

CELEBRITIES

EVENTS

TAILORED OFFER

TV & MOVIES

BRAND WEBSITE

STORE WINDOWS

WoM

MAGAZINES

19%

23%

26%

30%

31%

32%

32%

39%

49%

2013 2014

% OF RESPONDENTS

32% 11%

29% 20%

Impact on purchase decision

SOCIAL MEDIA & BLOGS

PHYSICAL

2013 2014

32%

6%

5%

29%

12%

8%

+6pp

WoM Digitization Index

+3pp

(3pp)

+6pp

PHYSICAL

0.3 0.7

WoMDigitization

• Enlisted nine bloggers to help drive online and brick-and-mortar sales

• Hosted a series of in-store events across the U.S, resulting in 147,000

social interactions

• Blogger Christine Andrew of Hello Fashion fueled a 107% uptick in “likes”

and 465% increase in comments to Neiman Marcus’ Instagram page after

a fall Trend event

• Rach Parcell of Pink Peonies drove $1 million in sales to nordstrom.com

during the 2014 holiday season

Impact of blogger collaboration in luxury

Influencer Strategy

Know your audience

Find the right ambassadors

Test, learn & scale

Our audience

LOCATION INTERESTS DEMOGRAPHIC

Our Recipe

HELEN OWEN

LA model and socialmedia favorite

KAT TANITA

Ultra-stylish writer ofWith Love From Kat

THE BUCKET LIST FAMILY

Family of Adventure Travel Journalists

Type of influencers

Goals

Results

Ciara, Russell Wilson Enjoy a RomanticGetaway in Mexico: See the Pics!

ENGAGEMENTMentions

LikesShares

RepostsReviews

SEO OPTIMIZEDAligned content

Calendar for social &magazine & site

SEO OPTIMIZEDAligned keywordsstrategy with PPC

LRI PLATFORMSWebsite

Mobile siteMagazine

Social media app

ADVERTISINGPPCRetargetingDisplay adsPaid InfluencersPaid contentSocial media ads

OWNEDMEDIA

The Digital Catalyst

Questions?