MAM
Havas Media Group launches LuxHub
MUMBAI: Havas Media Group has launched LuxHub, a global consulting specialist label that will deliver media communications and marketing support for both luxury brands and luxury audiences.
Headquartered in Milan, the network also launches with established centers of excellence in London, Paris, New York and Dubai, with further expansion plans in key markets such as Shanghai, Frankfurt, Hong Kong, Tokyo and Moscow in 2015.
The global lead for the project, fashion and luxury expert Isabelle Harvie-Watt, will oversee the strategic expansion and consulting offer for LuxHub using knowledge gained from her 14 years at Giorgio Armani, five years at Versace and lastly at Tods Group, running global marketing and communications. Working with the senior management team at Havas Group, Watt has led plans for investment in a specialist luxury division since her arrival as Havas Media Group Italy CEO in 2011.
Havas Media Group global managing director Dominique Delport said, “Offering our clients the ability to connect to the luxury sector in a meaningful way has always been part of our strategy and I am delighted that we are now able to deliver this specialist consulting service to our clients on a global basis. The credibility we already have in this area, coupled with strong leadership from Isabelle to drive specialist teams in all the key markets, means we can provide new insights and innovative strategies both for luxury brands and brands who want to interact with the luxury audience.”
Watt added, “Luxury brands realise that they need to change the way they communicate and start building stronger relationships with their consumers. Digital transformation is no longer an option. Growing online distribution and strong content strategies are the new norm. LuxHub is a great step forward to further closing the gap in language between agencies and luxury clients and the way luxury audiences are evolving. In our recent global survey, in-store shopping is still the favoured purchasing method for half of luxury shoppers, while 24 per cent shop mainly online. However, statistics show that this move by a quarter of the respondents to shop online is not being matched by the brands with over half (54 per cent) stating that luxury brands should engage more with their consumers in the online experience.”
Watt and the LuxHub UK team, headed by Tammy Smulders, who will also join the team as global executive director, will deliver their first study on luxury and brands later this month. The project uses data from 1,000 people representing the top 10 per cent of income earners in China, France, Germany, Italy, Russia, Spain, US, UAE and UK. The findings look at luxury trends across retail, travel, home furnishings, auto, jewellery and art.
During 2015 the LuxHub consulting unit will also work alongside luxury expert teams from the Havas Creative division to incorporate creative and experiential talents with projects in association with BETC Luxe (Paris) and Havas Luxe (New York).
Brands
Flipkart completes reverse flip to India ahead of IPO
Walmart-owned e-commerce giant shifts domicile from Singapore to Bengaluru
MUMBAI: Flipkart has completed its restructuring to move its parent company from Singapore back to India, marking a key milestone as the Walmart-owned marketplace prepares for a potential initial public offering on Indian stock exchanges, ET reported, citing people aware of the matter.
The move, often referred to as a “reverse flip”, relocates the company’s legal home to India and aligns its corporate structure more closely with its largest market. It also clears an important regulatory step for Flipkart as it explores listing plans.
As part of the restructuring, several Singapore-based entities have been merged into Flipkart Internet Private Limited, which will now serve as the main holding company for the entire group.
The consolidation brings a number of major businesses directly under the Indian parent company. These include fashion platform Myntra, logistics arm Ekart, travel booking platform Cleartrip, healthcare marketplace Flipkart Health, and fintech venture Super.money.
Under the new structure, global investors including Walmart, Microsoft, SoftBank, and the Canada Pension Plan Investment Board will hold their stakes directly in the Indian entity rather than through an overseas holding company.
The redomiciliation required approval from the Indian government because Chinese technology company Tencent owns around a 5 to 6 per cent stake in Flipkart. Under Press Note 3, investments from countries sharing a land border with India require prior government clearance.
Flipkart had already secured approval from the National Company Law Tribunal in December. With the latest clearance from the central government, the company has now obtained all the regulatory approvals needed to complete the relocation, ET reported earlier.
Flipkart had originally shifted its holding structure to Singapore in 2011 to tap global capital more easily. However, as India’s capital markets have matured, several start-ups have begun returning their domiciles to the country ahead of public listings. Companies such as Razorpay, Groww, and Meesho have taken similar steps.
The company is now expected to move ahead with its IPO preparations and has begun early discussions with merchant bankers. According to people familiar with the matter, Flipkart could file its draft prospectus later this year, setting the stage for what may become one of the most closely watched listings in India’s e-commerce sector.
Flipkart has been majority-owned by Walmart since 2018, when the US retail giant acquired a 77 per cent stake in the company for $16 billion in one of the largest e-commerce deals globally.
