Signals

Japan – Louis Vuitton is delving further into the hospitality business with the opening of a café and restaurant at its new flagship boutique in Osaka.

With consumers increasingly spending on experiential luxury, LVMH is expanding its luxury offer by branching out into hospitality. The open-plan Le Café V is on the top floor of Louis Vuitton’s new four-level flagship store in the city, and features a menu by Japanese chef Yosuke Suga, as well as an adjoining bar and terrace. The opening comes as spending on gourmet food and fine dining rose by 6% in 2019, according to the recent Altagamma Worldwide Luxury Market Monitor by Bain & Co. Jean-Jacques Guiony, chief financial officer of LVMH, said: ‘We think that so-called experiential luxury is something that will be important in the future.’

For more on high-end dining and experiential retail, explore our luxury sector where we reveal the nascent trends and insights shaping the industry.

US – Ikea has launched a purpose-driven campaign, Why We Make, to draw attention to many of the company’s lesser-known initiatives.

Working with Ogilvy, the brand is targeting US audiences with the ad, which aims to showcase the purposeful practices it has been undertaking since its launch in 1943. Among them are its ethical and eco-initiatives; for example, the brand releases a sustainability report each year to raise awareness of its values and the steps it is taking to become a more conscious company.

Directed by Olivier Gondry, the new campaign explains how the brand plants trees to replace ones it uses for its products, has been developing cupboards made from recycled plastic water bottles, and always ensures an inclusive working environment. Della Mathew, Ogilvy group creative director, said: ‘They’re [consumers] much more interested in ethical decisions, how brands treat their employees and the planet.’

For more on the future of purpose, sign up to our Trend Briefing 2020 event, where we’ll examine how brands will evolve both internally and externally through to 2030.

According to a study by Google India and Boston Consulting Group (BCG), India’s online food technology industry is forecast to double in value over the next two years.

Its fast-paced growth will mean it will rise in value from £3bn ($4bn, €3.6bn) in 2019 to £6.1bn ($8bn, €7.2bn) in 2022, at a compound annual growth rate of 25–30%. The growth is set to be driven by Indian consumers’ growing confidence in online ordering, while smartphone market penetration continues. The survey questioned about 1,500 consumers across 12 cities in India and responses show that peer or network advocacy (52%) is the single most important driver of first-time usage of online orders across all demographics, while marketing (19%) is a particularly strong driver among higher income groups (30%).

Roma Datta Chobey, a director at Google India, said: ‘Food tech has now made its presence in more than 500 cities in India and with consumer confidence growing there are new opportunities for the players to ‘win with the consumer’ in an evolving market.’

As we explore in our Home Eatertainment macrotrend, changing dining dynamics have created a new convenience culture focused on elevating the experience and enjoyment of eating and drinking at home – something fuelled by the rise of food tech and food delivery services.