Aart Basel Switzerland 2024

Welcome to the 42nd edition of Maximalist! Dive into the ultimate guide, filled with insider insights into the world of fashion, art, real estate, travel, jewelry, and horology.

The world of luxury is never boring, and this week is no exception. Let’s dive in!

Markets

On this week’s agenda:

1. Art Basel Switzerland 2024

2. Net-A-Porter to Leave China

3. The RealReal Canal Street Storefront

4. Bentley’s New Global Campaign “How do you Bentley?”

5. Luxury Brands to Cut Prices 50% in China

Art Basel Switzerland 2024

Art Basel in Basel 2024 presented an extraordinary array of artworks that spanned various styles, media, and cultural narratives, reflecting the global and diverse nature of contemporary art. The show featured several standout pieces and exhibitions that captivated the attention of the art world and collectors.

Refik Anadol’s "Inner Portrait" was a centerpiece in this year's fair, demonstrating a powerful integration of art and technology. Anadol's installation utilized AI and neuroscience to visualize the emotional states of travelers, creating dynamic "data paintings" that provided a unique insight into human emotions triggered by travel experiences. This collaboration with Turkish Airlines exemplified how technology could extend the boundaries of traditional art forms to include digital and interactive elements.

Ai Weiwei’s "Therese Dreaming, 2024" employed LEGO bricks to construct a complex visual narrative that explored themes of digitalization and personal history. Weiwei's work stood out for its creative use of common materials to address profound themes of identity, memory, and cultural expression. This piece continued Weiwei's tradition of challenging the norms of art and its interaction with society.

Torkwase Dyson’s "Errantry (2024)" was another notable installation. Presented by Pace Gallery and Gray, this large-scale, black abstract geometric sculpture invited viewers to physically engage through its spaces. Dyson's work explored themes of spatial justice and the history of displacement, making a strong statement on historical and contemporary issues of race and architecture.

Emily Kam Kngwarray’s "Yam Story (1995)," showcased by the National Gallery of Australia and acquired by the George Economou Collection, highlighted the rich cultural narratives of Aboriginal Australia. Kngwarray’s paintings are known for their vibrant depiction of natural themes and spiritual storytelling, rooted in her deep connection to the land.

Salvo's "Alba 2000 (2002)" captured a nostalgic and atmospheric scene using traditional oil painting techniques. This piece, depicting a snowy night illuminated by a lone street lamp, juxtaposes natural and industrial elements, reflecting the serene yet complex relationship between nature and human-made environments.

Nour Jaouda’s installation "The shadow of every tree (2024)" represented an emerging voice in the art scene. Her use of mixed materials to address themes of migration and historical narrative resonated deeply in the context of global discussions about identity and displacement. Her entire presentation being sold to a private collection highlighted the increasing recognition and demand for works that challenge and expand the discourse around these urgent global issues.

The year’s fair was marked by significant sales that underscored the vitality of the art market. Joan Mitchell’s “Sunflowers” fetched a notable USD 20 million, nearly matching her auction record. Other significant sales included a major work by Torkwase Dyson and pieces by younger artists like Dominique Fung, whose ambitious visual odyssey was highly sought after. These sales, ranging from historical masterpieces to contemporary explorations, highlight the dynamic and thriving nature of the global art market, cementing Art Basel’s role as a pivotal platform for the exchange of artistic ideas and cultural wealth. Each of these works contributed to the rich tapestry of Art Basel 2024, showcasing a broad spectrum of artistic expression from around the world and engaging with critical contemporary issues through innovative forms and materials.

Net-A-Porter to Leave China

Richemont-owned Yoox Net-A-Porter Group (YNAP) has decided to withdraw from the Chinese market to shift its focus towards more lucrative regions. This strategic pivot marks a significant shift from their initial foray into China in 2013 when Net-A-Porter launched, followed by the introduction and subsequent 2015 exit of its sister discount platform, The Outnet, due to intense competition.

The exit comes after the dissolution of a 2018 strategic partnership with Alibaba Group, aimed at enhancing YNAP's retail presence in China through the Fengmao platform. Yating Wu, CEO of Fengmao, and Richemont have both confirmed the termination of this partnership, with Richemont citing a reorientation towards more profitable markets as the primary reason for the departure.

This withdrawal is indicative of broader challenges within the luxury market in China, exacerbated by weakening consumer demand—a trend that has not only affected YNAP but also other luxury giants like Kering and Burberry. Kering has forecasted a potential profit decline of up to 45% for the first half of 2024 due to dwindling sales in China. Similarly, Burberry has experienced a significant drop in its stock value over the past year, affected by weak demand in both China and the United States.

In the backdrop of these market dynamics, Richemont is actively seeking to divest a majority stake in YNAP, following a failed deal with Farfetch. A spokesperson from YNAP reiterated the group's strategic decision, emphasizing the intention to concentrate investments and resources on its core, more profitable geographic areas.

The RealReal Canal Street Storefront

On June 13, The RealReal stirred the waters of New York City's notorious Canal Street—known colloquially as fake-bag-row—with an audacious installation that had attendees both bewildered and intrigued. Outside the venue, a sign with the days of the week marked "CLOSED" piqued curiosity even before guests stepped inside. What awaited them was a meticulously arranged display of designer handbags, not out of the ordinary for the world's largest online marketplace for authenticated luxury goods. However, the twist was revealed soon after entering: the showcased bags were all fakes, challenging the guests' perceptions of authenticity right from the start.

Guest reactions varied as they pondered the craftsmanship and appearance of the counterfeit items. Remarks such as, “I would have never known that Park Tote from The Row wasn’t real leather!” and “The green on that Balenciaga is a little too green to be real…” filled the air, illustrating the fine line between genuine and imitation products. The event turned into a larger conversation about the nature of reality and value in the luxury goods market.

To maintain the pristine condition of the space, celebrities like Laverne Cox, Jeremy O’Harris, Meadow Walker, Selah Marley, and Katerina Tannenbaum wore blue shoe covers while they toured the exhibition of superfakes. Hunter Thompson, The RealReal's director of authentication, provided white-glove presentations of the counterfeit handbags, emphasizing the critical and often complex process of authentication. He explained how they sometimes require the assistance of the FBI and specialized technology to investigate the intricate details of each piece on a cellular level, demonstrating the lengths to which they go to ensure authenticity.

Kristen Naiman, The RealReal's chief creative officer, expressed a strong stance on the company’s mission toward genuine products. She detailed the dangers and broader implications of the counterfeit bag industry, which she described as not just unregulated but also toxic and increasingly controlled by criminal organizations. Naiman provocatively questioned the societal chase for status through branded items, suggesting that personal style and authenticity might be the true luxuries.

The installation, set to be open through September, aims to educate and provoke thought among passersby about the complexities of counterfeit goods. It also hosts special classes and events on the upper floor, encouraging a deeper engagement with the themes of authenticity and the ethics of consumption in modern fashion. This initiative by The RealReal not only highlights the problem of fakes in the luxury market but also fosters a broader dialogue about what is genuinely valuable in our culture.

Bentley’s New Global Campaign “How do you Bentley?”

On June 10, 2024, Bentley Motors unveiled its innovative global brand campaign titled "How do you Bentley?" Aimed at engaging a diverse audience dubbed "Gen B," the campaign seeks to redefine luxury and broaden the traditional perceptions associated with the brand. This initiative is not only targeting new customers but also strengthening the bond with existing enthusiasts and colleagues by emphasizing a shared mindset focused on challenging norms and exploring futuristic luxuries.

The campaign, crafted by IPG-X, a division of the Interpublic Group, features a cinematic piece directed by Anders Hallberg. The film offers various glimpses into the lifestyle and values of Bentley's audience, showcasing how the brand integrates into different aspects of life such as travel, music, and home design. These narratives highlight Bentley's commitment to blending luxury with performance, tradition with modernity, and wellbeing with power in both expected and elevated ways.

Bentley, established in 1919, has continually evolved to position itself as a leader not just in the automotive sector but as a broader luxury lifestyle brand. This evolution is supported by collaborations with skilled craftspeople, engineers, and designers aiming to extend Bentley’s renowned craftsmanship and innovative designs beyond cars.

The "How do you Bentley?" campaign will be visible across various platforms including paid media, Out Of Home advertising, Connected TV, and Bentley’s organic social channels, ensuring that it reaches a wide audience and encourages interaction with the brand’s luxurious world.

Steven de Ploey, Bentley’s Global Marketing Director, remarked that the campaign is pivotal for reinforcing Bentley's status as a top-tier name in luxury and performance, expanding the brand’s appeal well beyond its automotive roots. Meanwhile, Nick Cooper, Global Executive Creative Director at IPG-X, emphasized that the campaign not only redefines luxury lifestyle but also invites both loyal and new customers to engage with Bentley’s rich narrative in a personal and dynamic manner.

Luxury Brands to Cut Prices 50% in China

In a dramatic shift from their long-standing approach of maintaining exclusivity and high value, luxury brands are now offering unprecedented discounts in China. This pivot, which would have been unthinkable a few years ago, reflects a growing concern over unsold inventory as consumer spending in the region declines.

Starting in June 2024, deep discounts have been evident, such as a Balenciaga handbag available for 35% off on Alibaba Group Holding’s Tmall. This trend is not limited to Balenciaga; other prestigious labels like Versace, Givenchy, and Burberry have followed suit, with some discounts exceeding 50%. Such aggressive pricing strategies are a response to a noticeable slowdown in luxury spending in China, which has traditionally been a robust market for these high-end brands.

Experts find the visibility of these discounts on major platforms like Tmall surprising and potentially damaging to the brands’ image of luxury. Jacques Roizen of Digital Luxury Group likened it to hosting a public sale on New York's Fifth Avenue or Paris's Champs-Elysees, which could degrade the brands' perceived exclusivity.

The economic downturn in China is exacerbating the situation, eroding household wealth and prompting even the middle class to become more price-conscious and hesitant about luxury purchases. Additionally, promotional strategies on platforms like Tmall have led to high return rates, with some consumers exploiting these for additional discounts.

While most luxury brands are struggling with these market conditions, top-tier labels such as Hermes, Chanel, and Louis Vuitton have managed to maintain their strategy of limited e-commerce exposure and no public discounts, thus preserving their high-net-worth clientele base.

The impact of these discounts on luxury brands is twofold. In the short term, they may help clear inventory, but they also risk making the brands seem too accessible, potentially alienating their most loyal and affluent customers. The ongoing economic challenges in China, coupled with factors like Japan's weak yen affecting regional pricing dynamics, continue to pressure the luxury market, signaling a possibly prolonged period of recalibration for these iconic brands

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