American Luxury Brand Case Studies

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AMERICAN LUXURY BRAND CASE STUDIES | |
|  | | | | | | | | | | | |Arrowood Times are not promising for boutique American wineries, with many closing, plowing under their fields, or selling | | | |out to larger interests who have the resources to survive the down market. The worldwide glut of wine grapes from a | | | |succession of bumper harvests, increased competition from bottom tier and lower cost imports (among them Chile, Australia and| | | |South Africa) has California in a tailspin. There is also a Californian producer nicknamed “Two Buck Chuck” selling wines at | | | |US-3/bottle, 10 million bottles sold in the USA so far this year alone. Another indicator is the fall in demand for organic | | | |produce. During the boom years, consumers were prepared to pay premium prices for certified organic fruits and vegetables. | | | |Only the most efficient and well-managed farms will survive the collapse of that segment of market, which also supplies | | | |grapes to the organic winemakers. | | | | | | | |Arrowood typifies the small boutique Sonoma winery: in business 15 years, their name made on well-regarded wines in low | | | |production from a beautiful state-of-the-art facility. The brand is always fully subscribed for its yearly limited edition | | | |bottlings. The company cannot surrender its premium cachet by backing off on pricing, which begins at /bottle from the | | | |winery, higher at retail. Two years ago Arrowood unsuccessfully attempted to position high-end Syrah as a new trend, charging| | | |prices comparable to high-end Cabernets. The public was not so easily convinced. Demand is down for their commercial | | | |production, and today they have inventory of Syrahs, which can’t be offered at less than originally asked, without devaluing | | | |the brand. | | | | | | | |Best & Co. | | | | | | | |Best & Co., originally a multi-storied department store on Lower Fifth Avenue, New York City, stayed in business for nearly a| | | |century before closing its doors in the 1960s. Oriented exclusively for children, Best relaunched two years ago under the new| | | |stewardship of Susie Hilfiger. The legacy brand was renowned for its fine quality merchandise and exceptional customer | | | |service, founded upon the idea that children are important. Hilfiger opened a Connecticut store, resurrecting the original | | | |logos and interior design, and subsequently added a high-end boutique in Bergdorf Goodman’s Manhattan location. In addition, | | | |the company has both online and catalog channels for offering their fine line of house brands and imports. | | | | | | | |Blackglama This Seattle-based fur...
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