Pink diamond fetches $26.6M at Sotheby's Geneva sale

GENEVA -- An extremely rare, purple-pink diamond mined in Russia, which Sotheby's described as "a true wonder of nature," sold for 24.4 million Swiss francs ($26.6 million) on Wednesday, the auction house said.

Sotheby's had estimated that the flawless oval gem, "The Spirit of the Rose," could fetch $23 million to $38 million at the Geneva sale.

Bidding opened at 16 million Swiss francs and climbed to the final hammer price of 21 million Swiss francs, plus commission. It was bought by a telephone bidder who chose to remain anonymous, Sotheby's said.

Jewelry expert Benoit Repellin, who led the sale, said it set a record for a diamond graded fancy vivid purple pink sold at auction. The stone weighing 14.83 carats was the largest pink diamond with that color grading to go on the block.

The diamond was named after a ballet performed by the Ballets Russes and its legendary dancer Vaslav Nijinsky in 1911.

Mined by Russian diamond producer Alrosa in July 2017, it was cut from the largest pink crystal ever found in the country, Sotheby's said.

The diamond was shown in Hong Kong, Singapore and Taipei.

Colored stones have been greatly valued as an asset class by the super rich in recent years with top-quality pink diamonds especially prized.

The Argyle mine in western Australia, which produced the world's largest supply of pink diamonds, halted production last week due to depletion.

"The lucky buyer could well profit from prices soaring for pink diamonds in the coming years thanks to increased rarity," Tobias Kormind, managing director of 77 Diamonds, Europe's largest online diamond jeweler, said in a statement.

Naturally colored diamonds occur because they possess a particular lattice structure that refracts light to produce colored, rather than white, stones.

-reuters-

Louis Vuitton group buys Tiffany in $16.2-billion deal

PARIS - LVMH and US jewelers Tiffany announced Monday a $16.2 billion tie-up that is the French luxury group's biggest-ever acquisition and will bolster its presence in the United States.

The companies said in a statement they "have entered into a definitive agreement whereby LVMH will acquire Tiffany for $135 per share in cash, in a transaction with an equity value of approximately 14.7 billion euros or $16.2 billion."

source: news.abs-cbn.com

French luxury giant LVMH nears deal to buy Tiffany

LVMH Moët Hennessy Louis Vuitton will be having a lot of breakfasts at Tiffany’s — as well as lunches, dinners and board meetings.

The world’s largest luxury goods company is close to completing a deal to buy Tiffany & Co., according to people briefed on the acquisition. The combination, worth $16.7 billion, would be the largest ever in the luxury sector.

The companies were putting the finishing touches on the transaction Sunday afternoon, with the boards of both companies meeting to approve the deal, these people said. They hope to announce it Monday morning.

LVMH is dominant in the fashion, leather goods and wines and spirits sectors with brands like Dior, Givenchy, Fendi, Château d’Yquem and Dom Pérignon. The acquisition of Tiffany would make it a major player in the so-called hard luxury sector (things like watches and jewelry), adding to its purchase of Bulgari in 2011. It also gives the French group its most significant beachhead in the American market. The Tiffany brand is recognizable around the world thanks to its signature blue boxes, but it also occupies a singular, romantic place in the American landscape: Its Fifth Avenue flagship is as much a landmark in the myth of aspiration and the gleaming promise of sparkling baubles as Rockefeller Center or the Plaza hotel.

At the same time, the deal would end Tiffany’s 182-year history as a stand-alone brand, and it reflects the difficulty of remaining independent in an age of increasing consolidation.

LVMH, controlled by Europe’s richest man, Bernard Arnault, will pay $135 per share in cash for the jeweler, these people said. The terms of the final bid, which were first reported by the Financial Times on Sunday, value Tiffany shares at $16.3 billion. The company has about $350 million in debt.

The agreement comes after weeks of tense discussions between the two companies. Last month, the Tiffany board rejected an all-cash offer of $120 a share. LVMH then increased its offer to $130 last week and was granted access to Tiffany’s books to conduct due diligence, prompting a jump in the jeweler’s share price amid increased speculation that a deal was forthcoming.

LVMH’s takeover of Tiffany signifies the company’s increasing interest in areas beyond traditional soft luxury goods like clothing and leather goods. It follows its acquisition of Belmond hospitality group last December for $2.6 billion and a majority stake in German luggage brand Rimowa in 2016 for $719 million. It also marks LVMH’s second major investment in an American brand this year, following its creation of a new luxury house, Fenty, with Rihanna. (The group also inaugurated a factory for Louis Vuitton in Texas last month with great fanfare, specifically to make handbags for the American market. President Donald Trump cut the symbolic ribbon during the official ceremony.)

The deal potentially doubles the size and profitability of its hard luxury portfolio, which beyond Bulgari also includes Chaumet, Fred, Hublot and Tag Heuer and accounts for 9 percent of total LVMH sales. A Tiffany takeover would probably make LVMH more competitive with Richemont, the Swiss luxury group that owns Cartier. Jewelry was among the top growth luxury categories last year, up 7 percent, according to a report by global consulting company Bain & Co.

And it solidifies the reputation of Arnault, 70, as the most aggressive, and acquisitive deal-maker in luxury.

Tiffany, after a rocky period in which it appeared to lose sight of its core consumers, prompting stagnant sales and the departure of its chief executive, has staged a comeback in recent years under a new chief executive, Alessandro Bogliolo. He cut back on lower-priced gifting options, revamped marketing to target younger shoppers and pursued greater expansion in China.

Reed Krakoff, the designer who transformed Coach from a dusty handbag brand into a driver of the contemporary market, joined as artistic director in 2017, and has also been instrumental in recasting the brand’s offerings to appeal to the social media set, with such collections as “everyday objects” like tin cans, balls of yarn, and protractors in sterling silver, a new “paper flowers”collection in rare gems and an ad campaign with Lady Gaga (who wore the 128.54-carat Tiffany Diamond on the Oscars red carpet in February).

Bogliolo also happened to be the chief executive of Bulgari during the LVMH takeover of that brand, so he has some expertise in managing the transition into the group. Though LVMH has struggled with its American brands in the past, buying Donna Karan in 2001 only to ultimately close the designer’s main line and sell the brand name to G-III Apparel in 2016, and never going through with a planned public offering for Marc Jacobs, Tiffany may prove a more comfortable fit.

For both companies, the tie-up also represents an important opportunity to grow in China, the world’s second-largest economy and an engine of global spending on high-end shoes, bags, fashion, jewelry and watches despite recent concerns over a trade war and the standoff in Hong Kong.

Tiffany began targeting the emerging Chinese bridal and engagement ring market more than a decade ago, and today has a strong following and brand awareness among the country’s upper and middle class consumers. It operates around 35 stores in mainland China and a further 10 in Hong Kong. The yuan depreciation, the U.S.-China trade war and the Hong Kong protests have hit Chinese tourist spending hard, however, prompting Tiffany to increase its mainland investments and bring high-value items to Chinese shoppers closer to home, a strategy that will probably be fueled further by LVMH after the deal is completed.

“Tiffany finds a very comfortable new home and LVMH finds one of the most promising brands available,” said Luca Solca, luxury analyst at Bernstein.

Not to mention an early end to their holiday shopping.


2019 The New York Times Company

source: news.abs-cbn.com

Louis Vuitton group raises Tiffany bid to $16 billion: sources

NEW YORK -- French luxury group LVMH has raised its bid to acquire US jewelers Tiffany by over $1 billion, two sources close to the matter told AFP Wednesday.

LVMH, the owner of Louis Vuitton, Dior and Moet & Chandon increased its bid for the storied New York-based company to around $130 per share from $120 per share, the sources said.

The move lifts the overall value for Tiffany to around $16 billion from $14.5 billion.

Neither LVMH nor Tiffany immediately responded to a request for comment.

LVMH, which is led by billionaire Bernard Arnault, has sought to acquire Tiffany as a means to boost its presence in the US market.

The transaction has also been seen as way forward for Tiffany, which has not matched some rivals in terms of sales growth in recent years.

Some analysts have predicted a price hike would seal the transaction.

source: news.abs-cbn.com

Luxury watchmakers plan for Brexit, cope with French protests

BASEL, Switzerland--Luxury watchmakers have joined the list of businesses implementing Brexit contingency plans by stockpiling inventory in Britain before it leaves the EU, industry leaders said. 

Brands are seeking to guard against "practical problems" that may emerge, including new customs procedures or import backlogs following Brexit, the head of the Federation of the Swiss Watch Industry, Jean-Daniel Pasche, told AFP at the Baselworld watch fair, which wrapped up this week. 

Statistics released by the federation this month showed that imports to Britain were up 58 percent in February, on top of a 24 percent increase in January. 

Oris, a luxury watchmaker that opened a store in London's Mayfair area last year, said it does not normally keep inventory in Britain, preferring to ship pieces to retailers to fill specific orders. 

But Oris chief executive Rolf Studer said the company had boosted its British stocks. 

"Nobody really knows what will happen, so we took precautions," he told AFP.

Non-EU member Switzerland and Britain have already signed a pact to preserve future trade relations, including provisions to ensure trade continuity if the UK leaves the bloc without a divorce deal. 

That bilateral agreement should ensure that watches imported directly to Britain by plane face no new restrictions, Pasche noted. 

But any goods travelling by road will have to pass through the EU and could therefore be held up by long queues at the British border, he said. 

Aside from possible import delays, Pasche highlighted another reason why watchmakers want to ensure that London retailers are well-stocked. 

If the British pound loses value, that could trigger a post-Brexit buying spree, with high-end shoppers notably in London seeking to benefit from favorable exchange rates, he said. 

When the pound's value fell after Britons voted to leave the European Union in 2016, luxury watch retailers saw a surge in sales among tourists, especially from Asia. 

The chief executive of iconic watchmaker Hublot, Ricardo Guadalupe, told AFP that his company has also increased its British-based inventory, describing London as "the locomotive" for the watch business. 

YELLOW VEST EFFECT 

Watch firms said the importance of limiting disruptions in London has become all the more vital because of setbacks in Paris caused by the "yellow vest" protesters who have staged weekly demonstrations around France since mid-November.

Hublot's shop at Place Vendome in central Paris has remained closed on Saturdays as demonstrators have taken to the streets over the falling spending-power of the working poor.

Guadalupe noted that traffic in Paris shops has "fallen drastically" amid the demonstrations.

Earlier this month, 91 shops including luxury outlets Bulgari were damaged, burned or looted on the famed Champs-Elysees avenue.

Bulgari's managing director Jean-Christophe Babin said in Basel that the company's employees on the Champs-Elysees had faced "permanent insecurity."

"For our teams, it is extremely stressful," he said.

There are concerns that tourism numbers to France could fall because of the protests, which began over fuel taxes but then snowballed into a revolt against the governing style and policies of President Emmanuel Macron.

Because luxury watch sales are heavily dependent on tourist traffic, most analysts expect watch imports to France to fall sharply over the course of the year. 

source: news.abs-cbn.com

France's Ritz hotel smashes record with furniture sell-off

PARIS - Luxury furniture auctioned off by the legendary Ritz hotel in Paris sold for 7.3 million euros ($9 million), a world record in the industry, auction house Artcurial said Saturday.

The Paris hotel, home for a while to Ernest Hemingway, Marcel Proust and Coco Chanel, sold off all 10,000 pieces of furniture and decor.


They included stools from the Hemingway Bar, a 19th-century bathtub, and sofas and a harp from the Proust Lounge.

The Ritz sale outperformed other hotels around the world, the auction house said.

In 2013 in Paris, Hotel de Crillon made 5.9 million euros from a furniture sale while Plaza Athenee made 1.4 million euros.

The 3,400 lots that were up for grabs were on sale between April 17 and 21.

Buyers bid on objects ranging from velvet security cordons and curtain ties, to rugs, bedframes and sets of bathrobes and slippers embroidered with the Ritz insignia.

Price estimates ran from 100 euros for a pair of tablecloths to 10,000 euros for a pair of nymph sculptures carrying bronze candelabras that used to decorate the lobby.

"The Ritz has excited a sudden passion, attracting buyers from all over the world," auctioneer Francois Tajan told AFP.

The Ritz decided to sell the pieces from its famous Place Vendome address when it reopened in June 2016 after four years of extensive renovations.

Owned by Egyptian billionaire Mohamed Al-Fayed since 1979, the hotel had accumulated impressive quantities of objects since it was opened in 1898 by Cesar Ritz.

It has served as the backdrop to several key moments in French history.

The Nazis requisitioned it during World War II but had cleared out by the time Ernest Hemingway burst in with a group of Resistance fighters on August 25, 1944, gun in hand, to "personally liberate" it.

Realising he was too late Hemingway took to the bar where he is said to have run up a tab for 51 dry Martinis.

In 1997, tragedy befell the hotel when Britain's Princess Diana, who had been staying there, was killed in a car accident in a Paris tunnel while being pursued by paparazzi.

The hotel made global headlines again in January, when robbers armed with guns and hatchets ransacked jewellery shops on the ground floor, making off with over four million euros ($4.9 million) in gems and watches.

source: news.abs-cbn.com

World's largest pink diamond fails to sell at Sotheby's auction

GENEVA - "The Raj Pink," the largest known diamond graded "fancy intense pink" for its rare color, was among several major jewels stranded on the auction block on Wednesday at Sotheby's sale in Geneva.

The cushion-shaped stone, weighing 37.30 carats and mounted on a ring, was billed as the star lot at Sotheby's semi-annual jewellery sale in the Swiss city. The pre-sale estimate for the diamond, found in South Africa in 2015, was $20 million to $30 million.

Bidding opened on "The Raj Pink" at 9.9 million Swiss francs ($10.02 million) and climbed to 14 million Swiss francs before stalling.

"It was not sold," David Bennett, worldwide chairman of Sotheby's international jewellery division who conducted the auction, told the crowded sale room.

Other major lots were left on the block, failing to meet the secret reserve price set by their sellers.

They included a blue diamond ring by Moussaieff, where the last bid was 12.4 million Swiss francs, and a pair of yellow diamonds that formerly belonged to the German princely family of Von Donnersmarck, which reached 7.8 million Swiss francs but failed to find a new owner.

Only 303 of the 349 lots found new owners, according to Sotheby's figures. In all, the sale netted 77.9 million francs.

A Harry Winston light pink diamond ring, described as an "absolutely sensationally beautiful stone" by Bennett, brought the strongest price of the night.

It sold for 12.6 million Swiss francs to a telephone bidder who purchased it from a European noble family which owned it since the piece was made by the New York jeweller around 1970, Sotheby's said.

"Pieces must be exceptional to sell today at the same level as two years ago," Eric Valdieu, a Geneva-based jewelery dealer formerly of Christie's, told Reuters after the auction.

The Raj Pink was not an easy stone to sell, he said, adding: "It was a modern, recent stone and not a 10 out of 10 in terms of its colour and form. It had no history," Valdieu said.

Another prominent dealer told Reuters: "It's a big disappointment. The timing was not good."

Tobias Kormind, managing director of 77Diamonds.com, Europe's largest online diamond jeweller, said in a statement: "I'm worried for the top end of the diamond market."

At rival Christie's on Tuesday night, an emerald and diamond necklace set with the largest flawless white diamond ever to come to auction sold for a world record 33.5 million Swiss francs ($34 million), the star lot at its Geneva sale.

source: news.abs-cbn.com

Michael Kors to buy luxury shoemaker Jimmy Choo for $1.2 billion

LONDON- US retailer Michael Kors has agreed to buy luxury shoemaker Jimmy Choo for $1.2 billion, snapping up a British brand launched in the east end of London and made famous by celebrity fans including Princess Diana.

Founded in the 1990s by bespoke shoemaker Jimmy Choo, the brand is known for its stiletto heels and accessories and sells in cities from London to Paris, New York and Tokyo.

It put itself up for sale in April after its majority owner JAB signalled its intention to focus on consumer goods. At 230 pence in cash per share, the group is receiving a premium of 36.5 percent to its share price before the sale process was announced.

Michael Kors, once the hottest name in affordable luxury with a hugely popular handbag range, has been struggling in recent quarters with declining same-store sales as fewer people visit its shops.

In response, it has expanded into dresses and menswear, and invested in its online business. It said Jimmy Choo would continue to operate as it does today, under its existing management team.

"Jimmy Choo is an iconic premier luxury brand that offers distinctive footwear, handbags and other accessories," said Michael Kors, honorary chairman and chief creative officer.

"We admire the glamorous style and trend-setting nature of Jimmy Choo designs."

Jimmy Choo floated on the London Stock Exchange at 140 pence in 2014. It closed on Monday at 195 pence.

source: news.abs-cbn.com

Coach to buy rival handbag maker Kate Spade for $2.4-B

Handbag and accessory maker Coach reached a deal to acquire rival Kate Spade for $2.4 billion, the companies announced.

The agreement will boost the marketing opportunities for both luxury New York-based designers of handbags, shoes and various accessories, the companies said, at a time when sales are declining at department stores where they have sold their goods.

By combining, they expect to save about $50 million a year in inventory management and other operational efficiencies, the companies said a joint press release announcing the deal.

Coach chief executive Victor Luis said the acquisition would boost the firm's prospects with millennials. In December, Coach, which dates to 1941, announced a marketing partnership with actress and singer Selena Gomez, in an effort to woo this key demographic group.

"In addition, we believe Coach's extensive experience in opening and operating specialty retail stores globally, and brand building in international markets, can unlock Kate Spade's largely untapped global growth potential," Luis said.

Kate Spade chief Craig Leavitt said the company, which was launched in the 1990s, now will be positioned "for long-term success as we continue our evolution into a powerful, global, multi-channel lifestyle brand."

Under the transaction, Kate Spade shareholders will receive $18.50 in cash, a 27.5 percent premium on the price prior to media speculation about a takeover of the company.

Shares of Kate Spade rose 8.1 percent to $18.34 in morning trading, while Coach gained 6.4 percent to $45.39.

source: news.abs-cbn.com

Tech billionaire buys Sydney mansion for record USD56-M

SYDNEY, Australia - Tech billionaire Scott Farquhar has bought a Sydney waterfront mansion for an Australian record Aus$75 million (US$56 million), a report said Monday, after the owners resisted selling the 1863-built home to developers.

Tech billionaire Scott Farquhar buys Sydney waterfront mansion built in 1863 for record US$56 million, report says https://t.co/bOdBrV9CyI pic.twitter.com/bNwIMnBJpN 

— AFP news agency (@AFP) May 1, 2017

 The co-founder of Australian software giant Atlassian, which floated in the United States in late 2015, snapped up the iconic "Elaine" from John Brehmer Fairfax, whose family formerly owned the Sydney Morning Herald.

The estate, which stretches down to a harbor beach in Sydney's prestigious Point Piper, had been in the Fairfax family since 1891 when it was bought for 2,100 pounds. It features horse stables, a tennis court and a ballroom.

Fairfax reportedly resisted larger offers from developers to subdivide the land.

"We're thrilled with the purchase and honoured to take over the Elaine estate in its entirety from the Fairfax family," Farquhar, 37, told Fairfax Media.

"It would have been a great loss to see this rare property sold to developers and carved up.

"When we heard of the plans, we just couldn't let this beautiful piece of Australian history be turned into a development site."

The price tag set a record for residential property in Australia, the Australian Financial Review said.

It topped the previous Aus$70 million in 2015 when mogul James Packer, who runs worldwide gambling empire Crown, sold his Sydney home to Australian-Chinese billionaire businessman Chau Chak Wing.

ddc/mp/mtp

source: news.abs-cbn.com

Luxury in focus as Geneva car show opens

PARIS - Europe's biggest annual car show kicks off in Geneva on Tuesday with luxury and crossover vehicles in the limelight, but with the emissions scandal still hanging over the industry.

Automakers are celebrating the end of the sector's crisis as European sales have returned to levels last seen in 2008 before a global financial meltdown inflicted deep dents on their business.

It is a far cry from last year's show where the industry was under a cloud after Volkswagen admitted in 2015 to having installed software in 11 million diesel engines worldwide to circumvent emissions tests, a scandal that will cost it billions in fines and compensation to car owners.

While Volkswagen has survived the crisis, the scandal has focused attention on emissions and the challenges automakers will have in building cars that can meet ever tougher pollution rules.

Carmakers are now having to steer toward engines that emit no more than 95 grams of CO2 per kilometre by 2021 to meet European requirements, compared to 130 grams in 2015.

But as diesel cars have been getting a bad rap because of emissions scandals, that target looks harder to meet.

"Diesel cars emit 15 percent less CO2 per kilometer" than gasoline-fueled models, said Christophe Aufrere, a technology strategist at car parts maker Faurecia.

With electric vehicles still only accounting for a sliver of European car sales, that means gasoline-powered cars have to take up the slack, requiring the industry to squeeze more efficiency out of engines and to reduce vehicles' weight.

Research and development costs "have practically doubled in the past decade" said Remi Cornubert at AT Kearney, a consulting firm, and if carmakers fail to succeed, the bill will be high.

Automakers failing to meet the CO2 targets -- capping petrol consumption to 4.1 liters per 100 kilometres and diesel to 3.6 litres -- will have to pay 95 euros ($100) for every extra CO2 gram emitted by each car -- potentially adding up to tens of millions of euros of fines.

NEW MODELS

Jostling among carmakers for market position is also likely to dominate discussions after French carmaker PSA announced Monday the acquisition of General Motors' European subsidiary, which includes the Opel and Vauxhall brands, for 1.3 billion euros ($1.38 billion), catapulting it into second place in Europe.

And there was more good news for PSA in Geneva on Monday after its Peugeot brand won European car of the year for its 3008 urban 4x4, as the show opened to the press.

Volkswagen, meanwhile, unveiled its first prototype autonomous car Monday evening, the electric Sedric.

The German giant, whose brands include Audi and Porsche, said it planned to join a string of other automakers in investing billions of dollars in developing the vehicle over the coming years.

Despite the greater emphasis on fuel economy, the Geneva car show is unlikely to disappoint in terms of its usual glitz and glamour.

The legendary Ferrari, Lamborghini, Pagani, McLaren and Bentley have all picked Lake Geneva's shores to present new models. Renault will showcase the final version of its Alpine A110 sports car.

"Geneva has always been the show of beautiful automobiles and prestigious racing cars," said Ferdinand Dudenhoeffer at the CAR institute.

But the greatest buzz may come from so-called "crossover" vehicles (CUVs), which combine features taken from sports utility vehicles (SUVs) with those of passenger cars.

The segment, including fashionable urban four-wheel drive vehicles, now makes up nearly 30 percent of the European car market and features the Volvo XC60, the Citroen C-Aircross, the DS7 Crossback and the Land Rover Velar.

Some 180 companies will be present at the 10-day show which opens to the public on March 9 after two press days during which most major corporate announcements are expected. Last year's show attracted 687,000 visitors.

source: news.abs-cbn.com

TAG Heuer to launch $15,000 smartwatch next week

Luxury Swiss watchmaker TAG Heuer will next week launch a smartwatch aimed at taking on the Apple Watch, but with an asking price of $15,000, the company chief said in an interview published Sunday.

Jean-Claude Biver told the Le Matin Dimanche weekly that the titanium Carrera Connected watch would hit stores in New York at noon (1700 GMT) on Monday.

Three days later, the new watch will come to Europe.

"Our watch will have almost the same functions as an Apple Watch, but I don't want to divulge too much," he said.

TAG Heuer has joined forces with technology behemoths Google and Intel to develop a connected watch able to claw back some market share from Apple, which has shipped millions of its smartwatches since launching six months ago.

TAG Heuer's new watch will meanwhile target a more high-end clientele than the average Apple Watch buyer.

It had been rumoured to go for $18,000, but Biver said in Sunday's interview it would carry a price tag of $15,000 (14,000 euros).

"The Carrera Connected is an exclusive, luxury watch," he said.

In comparison, it is possible to acquire an Apple Watch for under $400, although more exclusive models can cost around $17,500, he pointed out.

Biver, an industry legend who also leads the watch division of TAG Heuer's owners LVMH, insisted that he does not consider Apple a direct competitor.

"We are not Apple. We are a watch brand. I forbid my colleagues to say Apple is our competitor," he told the paper.

He acknowledged that the two companies were engaging in "similar work", but stressed TAG Heuer had no interest in selling millions of connected watches.

For its New York launch on Monday, the brand will make nearly 1,000 of the connected timepieces available, he said.

The new TAG Heuer watch is based on the brand's Carrera classic model, Biver said, insisting that at a distance the two could not be told apart.

But like the Apple Watch, the Carrera Connected is able to connect wirelessly to a user's mobile phone to provide a range of functions, Biver said.

"It does not just count your steps or take your pulse," he added.

Buyers will be able to choose between six brightly coloured wristbands, and the appearance of the face of the watch can be modified just like the screen on a mobile phone, he said.

source: www.abs-cbnnews.com

LOOK: Korina visits luxurious home of Shamcey, husband

MANILA – Broadcaster Korina Sanchez paid a visit to the home of Miss Universe 2011 third runner-up Shamcey Supsup and her husband, businessman Lloyd Lee.

Here is a glimpse of the luxurious home of the celebrity couple, which includes a backlit onyx wall, a home theater and even its very own elevator, as seen in the photos posted by Sanchez on Instagram.

Mobile users can view the desktop version of this slideshow here.

This part of the home features a backlit onyx wall that extends to the second floor. Photo from Korina Sanchez’ Instagram page (@thisiskorinasanchezroxas)

source: www.abs-cbnnews.com

How websites are feeding frenzy for second-hand luxury bags

PARIS - Would you fork out $8,000 for an old handbag? For fashionistas who simply must get their hands on a rare model from an iconic brand, the answer is an emphatic yes.

Thanks in part to the economic downturn, some of the stigma of buying second-hand accessories has eased in recent years -- although many buyers still prefer to use euphemisms like "pre-owned".

The market for used luxury bags, watches and jewellery hit 16 billion euros ($17.5 billion) last year, according to a study by the consultancy Bain and Altagamma, an Italian body representing luxury goods manufacturers.

And while 80 percent of the sales are still in bricks-and-mortar shops, online sales are rocketing, their study found.

"If you add up the sales of all the big luxury groups for the past 20 years, you're talking about two to three trillion euros of merchandise sitting in people's closets," said Loic Bocher, co-founder of Collector Square, a website that touts itself as giving "another life" to luxury items.

The website, which launched just two years ago, did that for 5,000 luxury cast-offs last year.

A quilted blue Chanel, a Gucci made from python-skin, or a brown pony-hair Fendi Baguette: Collector Square has more than 1,600 bags on its site, including over a dozen Birkins, the legendary Hermes model that is by far its most sought-after.

"The Birkin is most difficult to get hold of and often sparks overbidding, but you need to be aware that it is not at all representative of the second-hand market," said Bocher.

The most highly prized second-hand Hermes models can command prices up to 20 percent higher than their brand-new equivalents, while other pre-owned brands sell at a discount of between 30 and 90 percent, according to a study by Exane-BNP Paribas published in March in colloboration with the website InstantLuxe.

For a Birkin, "the market goes crazy: a bag can be sold within a few hours and hit 10,000 or even 14,000 euros. It's the Rolls-Royce of handbags," said Yann Le Floc'h, the founder of InstantLuxe, which saw its business double between 2013 and 2014.

Carefully cultivating desire

Designed for actress and singer Jane Birkin in 1984, the bags are hand-made in France and come in a variety of sizes, colours and leathers. The bags are instantly recognisable by their flap fastener and padlock, with the classic 35-centimetre (10-inch) model in calfskin selling new for 7,400 euros.

It is not hard to see why Birkin fans are taking to the Internet: you can have one hanging off your arm in just a couple of days.

It could take months to find a new one in a Hermes store -- the brand carefully controls supply -- especially if you are set on a particular colour or leather.

"That's the key to luxury: carefully maintain a gap between supply and demand," said Bocher. "And the brands work so hard to cultivate desire."

For Le Floc'h, one explanation for the online second-hand rush is that people's views on luxury products have changed. Today, it is "the state of mind of using a luxury product" that is important, whereas "before it was owning and handing down".

Asian customers in particular are driving the Birkin buying spree, Le Floc'h added.

"It's the Chinese who have dictated the Birkin market," he said. "Two years ago the 35-centimetre model was the norm, but today it's the 30-centimetre model because there are more Asians on the market," and they prefer smaller bags.

Clamour for one particular Birkin led to it setting a record recently for the most expensive handbag ever sold at a Christie's auction.

The fuchsia-coloured crocodile-skin number, with a white gold clasp and padlock encrusted with diamonds, was snapped up by an Asian phone bidder for US$222,912 in an auction that saw "fast-paced bidding from start to finish", Christie's said in a statement.

Luca Solca, an analyst at Exane-BNP Paribas, said much of the European demand for second-hand luxury bags is suspected to be from 'daigou' -- Chinese middlemen who buy second-hand products in excellent condition in order to sell them in China as new.

In order to ensure the authenticity of the items sold on their websites, both Collector Square and InstantLuxe call upon experts, who also evaluate the condition of the bags.

But it remains unclear what impact the thriving online second-hand market will have on luxury brands that go to great lengths to control their sales.

"We give value to these products and prove that they're timeless," says Bocher in defence of websites like Collector Square.

"And for the brands, it's better to have a structured second-hand market with checks on authenticity."

source: www.abs-cbnnews.com

Luxury watchmaker Rolex wants apology from Italy's PM

ROME - Luxury watchmaker Rolex demanded an apology on Wednesday from Italy's prime minister and interior minister for saying that violent demonstrators who devastated parts of Milan last week were "rich, spoiled brats with Rolexes".

The company took out full-page advertisements in major national newspapers to contest comments both politicians made after police fired tear gas at protesters who threw stones and petrol bombs and broke shop windows.

In his address to parliament on the riots - protests against Milan's Expo global fair - Interior Minister Angelino Alfano said police photos showed that one demonstrator who defaced a bank window appeared to be wearing a Rolex.

"Yesterday, on the streets I saw bastards wearing hoods and rich, spoiled brats with Rolexes," Alfano told parliament.

Later, Prime Minister Matteo Renzi thanked the citizens of Milan for cleaning up the damage caused by "those with Rolexes who went around destroying shop windows".

The watchmaker, which sponsors major sporting events and has supported Milan's famous La Scala opera house, was not pleased.

Rolex's CEO for Italy, Gianpaolo Marini, wrote in the open letter in the newspapers that the low quality of the pictures of the violent demonstrators left considerable doubt as to whether they were wearing Rolexes and whether they were real or the cheap knock-offs sold on Italian streets.

He denounced "the unacceptable linking of the image of Rolex with the devastation in Milan and the world of subversive violence".

Both the prime minister and the interior minister had no immediate response to the advertisement.

source: www.abs-cbnnews.com

China shoppers snap up Chanel bags as euro drops

SHANGHAI - Chinese shoppers are mobbing Chanel stores and counting their savings after the French fashion house slashed handbag prices in the world's biggest luxury market due to the slumping euro.

Long lines formed at Chanel stores in commercial hub Shanghai and shopping mecca Hong Kong, a special administrative region of China, this week as word spread of deep discounts, according to media reports.

China is widely considered the world's biggest luxury market as a rising middle class and corrupt officials drive a shopping frenzy, but domestic prices are high due to hefty import taxes and huge retail mark-ups.

At one branch of Chanel in Shanghai, dozens waited anxiously in line for their turn, fearing the shelves might be stripped bare before a shop assistant could escort each person one-by-one into the tightly guarded store.

Miao Sijia, a well-dressed woman in her 20s who said she does not work, rushed 50 kilometres from a nearby city to buy a limited-edition, gold-coloured 2.55 bag for a discounted 19,700 yuan ($3,200).

"I rushed from Kunshan to buy a Chanel bag after a store clerk told me they were making a special price adjustment," Miao, a VIP customer of the store, told AFP.





Chanel said it was harmonising the prices of its products around the world, including the 2.55, 11.12 and Boy bag collections, but did not specify the size of the discounts in China, or price rises in the eurozone.

According to China-based luxury publisher the Hurun Report, Chanel is considered the second best brand for gifting to women, behind Apple but ahead of French fashion compatriot Louis Vuitton.

White collar worker Wang Lei, also in her 20s, gave up 5,500 yuan ($894) of her salary to buy a Cambon purse but marvelled at the 21 percent discount. "It was almost 7,000 yuan ($1,138) before," she told AFP.

source: www.abs-cbnnews.com

Tag Heuer, Intel to launch Android smartwatch

BASEL, Switzerland - Tag Heuer, French luxury group LVMH's biggest watch maker, said it will launch a smartwatch later this year using Google Inc's Android operating system in a venture with Intel Corp to compete head-on with the Apple Watch.

Tag Heuer Chief Executive Jean-Claude Biver declined to give any details about pricing, functionality or design, but said on Thursday that it aimed to launch what would be the first Android luxury smartwatch in the fourth quarter.

The Apple Watch is due to go on sale on April 24 and will range in price from $350 to $17,000 for an 18-karat gold model. It is the company's first major new product in five years and consumer demand for the device is being closely watched by competitors and investors.

The device needs an Apple iPhone to work fully, and analysts say the most likely pool of initial buyers will already have an Apple smartphone in their pockets.

"We believe wearable technology will take off," Michael Bell, vice president of Intel's New Devices unit, said at a news conference with Tag Heuer at the Baselworld watch and jewellery fair.

Intel struck partnerships with several consumer goods companies last year to develop smart wearable products, including eyewear brand Oakley, owned by Luxottica, watchmaker Fossil, and U.S. fashion brand Opening Ceremony.

"Tag Heuer’s decision to partner with technology companies to deliver a smartwatch ... will likely be the first of many similar deals," Ben Wood, chief of research at CCS Insight, said.

"With Apple Watch hitting the market it's no longer viable for Swiss watchmakers to bury their heads in the sand. Now Tag Heuer has signalled its intention to enter the smartwatch market we are certain others will follow."

Gucci said on Thursday that it would develop a smartband with i.am+ whose functions would include phone calls, text messages, emails and music. The unit of French luxury group Kering PRTP.PA gave no details of pricing or launch timing.

Some luxury executives remained sceptical about smartwatches, however.

Marc Hayek, who heads Swatch Group watch brands Breguet, Jaquet Droz and Blancpain, joined the chorus of luxury executives alongside Hermes and Patek Philippe who said they had no plans to launch a smartwatch.

"The Apple Watch is not a real watch but a consumer electronic," he told Reuters in Basel on Thursday.

Hayek forecast his three brands would enjoy a similar year in terms of sales growth to 2014, although trading in Hong Kong, one of his biggest markets, remained difficult.

source: www.abs-cbnnews.com

Rolls-Royce to bring 'Serenity' to Geneva

MANILA, Philippines - Rolls-Royce Motor Cars is bringing "Serenity" to Switzerland.

The one-off Phantom Serenity car will be showcased at this year's Geneva International Motor Show.

"Celebrating the historical role played by silk as a symbol of regal and imperial power, the Rolls-Royce Motor Cars Bespoke Design team has created a magnificent one-off motor car which will set a new benchmark for luxury individualisation in the motor industry," the company said.

Serenity will feature luxurious textiles in the Phantom's interior, and demonstrate the high craftsmanship and attention to detail that Rolls-Royce is known for.

Rolls-Royce's Bespoke Design team took inspiration from the opulent interiors of Rolls-Royces that have carried kings, queens and world leaders, as well as European furniture and Japanese royal kimono designs.

The Phantom Serenity will be unveiled at the Geneva International Motor Show on March 3.

source: www.abs-cbnnews.com

How Apple beat Hermes in China

SHANGHAI - Apple Inc has taken the number one luxury gifting spot in China from designer goods maker Hermes International SCA, according to a Hurun luxury report on Thursday, reflecting the iPhone maker's recent hot streak in the country.

The U.S. tech firm's focus on glitzy stores and high prices helped it post a 70 percent rise in sales in China in the last three months of 2014 and powered the company to the largest profit in corporate history.

Spending on gift-giving overall dropped 5 percent in 2014, after a 25 percent drop the year before, according to the Hurun Chinese Luxury Consumer Survey. Beijing has been cracking down on corruption and luxury spending among public officials, weighing down sales of premium liquor to handbags.

Domestic luxury spending in China dipped for the first time last year, according to consultancy Bain & Co, with increasing numbers of shoppers looking to spend money overseas.

"Travel retail continues to change the dynamics of luxury in China, with 7 out of 10 luxury goods bought by Chinese now being bought overseas," said Hurun Report Chairman Rupert Hoogewerf.

Hermes dropped to seventh from the top spot last year, while Chinese premium liquor maker Kweichow Moutai Co Ltd 600519.SS re-entered the top 10 after a two year hiatus, a potentially positive sign after sales were hit by the anti-luxury campaign.

Apple in first place was followed by LVMH Moet Hennessey Louis Vuitton SE, Kering SA's Gucci and Chanel.

The report, which has been carried out for over a decade, was based upon a survey of close to 400 millionaires with a personal wealth of 10 million yuan ($1.6 million).

source: www.abs-cbnnews.com

Detroit auto show roars to life

DETROIT -- Luxury and performance vehicles look set to steal the headlines at the first major international auto show of the year in Detroit, further proof the industry is back to its boisterous best after near-collapse.

The world's top vehicle manufacturers were Sunday putting their finishing touches to their extravagant display stands and there was no mistaking the prevailing sense of optimism and anticipation.

The US auto industry last year clocked up its best year in sales in nearly a decade and, with the low cost of gas and low interest rates, has created what analysts are calling a near-perfect storm.

With host Detroit now on the long road to recovery after the largest municipal bankruptcy in US history, experts are expecting the North American International Auto Show to let its hair down.

More than 40 new car and truck models are forecast to go on display from Monday, when the show opens its doors to the media.

All the talk points to the luxury sector as being the one to watch this year.

"I’m convinced the US economy and auto market are on the same upward trajectory as the city of Detroit," Mercedes-Benz chief Dieter Zetsche said Sunday, presenting the new GLE Coupe -- a hefty combination of power and luxe -- at an upscale downtown hotel.

Much of the pre-show buzz has surrounded a new incarnation of Honda's legendary Acura NSX supercar and Ford was expected to roll out one of its own in the shape of an eagerly awaited new GT.

"The NSX is going to be beautiful. This is what you go into journalism for," said Scott Burgess, Detroit editor at Motor Trend. "You could almost have a motor show just for the NSX."

Ford's refusal to give any information away has served only to whet appetites and increase speculation.

"Ford has been the quietest in not telling us what they have," he said.

Not to be outdone, Cadillac will show off its most powerful product in the brand's 112-year history, the new 640 horsepower CTS-V. And then there will be Lexus with it GS F performance sedan.

'Good and bad'

"It's a very exciting time to be a luxury brand in the US. Luxury cars are making inroads into the mass market," said Ravi Shanker, executive director and lead auto analyst at Morgan Stanley.

Brian Bolain, corporate marketing manager, Lexus division, told the same Society of Automotive Analysts conference Sunday: "Luxury is about the brand, always has been, and will continue to be so."

But while the overall mood in Detroit is overwhelmingly more positive than in recent memory, it is not all good news.

The European market "continues to bomb," said Shanker, while emerging markets in Brazil and Russia "are struggling a bit."

And while the low price of gasoline is drawing buyers back to gas-guzzling performance vehicles, there is a downside to that too, said Shanker.

"It's good because there are more dollars in consumers' pockets," he said. "But then it's bad because lots of the US economy depends on the gas and oil industry."

And then there is the sensitive issue of recalls -- a record 60 million vehicles in the US last year, with GM in particular in the spotlight over an ignition problem linked to dozens of deaths.

But amid all the gleam and muscle on display, no one was talking about recalls as the show poised to open.

source: www.abs-cbnnews.com