A pedestrian uses a smartphone beside women's clothing and handbag in the window display of a Louis Vuitton luxury goods store in Paris, France, on April 14, 2021. Bloomberg
A pedestrian uses a smartphone beside women's clothing and handbag in the window display of a Louis Vuitton luxury goods store in Paris, France, on April 14, 2021. Bloomberg
A pedestrian uses a smartphone beside women's clothing and handbag in the window display of a Louis Vuitton luxury goods store in Paris, France, on April 14, 2021. Bloomberg
A pedestrian uses a smartphone beside women's clothing and handbag in the window display of a Louis Vuitton luxury goods store in Paris, France, on April 14, 2021. Bloomberg

Buying diamonds in lockdown? WhatsApp can be your best friend


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As Italy entered a new coronavirus lockdown and shut shops in March, Genoa-based jeweller Gismondi 1754 turned to messaging service WhatsApp to sell a 300,000-euro diamond ring to a wealthy Swiss client.

At the same time, sales assistants at luxury puffer jacket brand Moncler were arranging gourmet dinner deliveries to customers homes so they could dine in style while watching a video streaming of the brand's latest collection.

The pandemic has forced luxury goods companies to use social media, video and virtual showrooms to woo their wealthy customers in Europe and keep them shopping at a time when tourists, especially from China, have been absent for more than a year.

Retailers reopened in Britain and most of Italy on Monday, but they remain shut in France and access is restricted in Germany, where in Berlin, for example, a negative Covid test is required to go into most shops.

Senior executives in the industry said this trend of selling outside the traditional store network, while not replacing the need for physical shops, is here to stay.

"We are learning that we can also have a high level of service with a low level of physical contact," Moncler's boss Remo Ruffini told Reuters. "Distant sales are a new frontier, something in the middle between e-commerce and a traditional store."

Analysts say that lockdowns and "staycationing" mean that wealthy Europeans have money to spend that they are not using to splurge on fancy hotels or Michelin-starred restaurants.

Designer brands are keen to capture some of that cash.

High-end labels such as Hermes, which used to be more reticent to sell online, have had to fully embrace e-commerce. Online revenue for the industry has doubled to about 20 per cent of sales in the past year alone, based on analyst estimates. Boston Consulting Group expects that percentage to rise to 25 per cent by 2023.

Luxury labels have also invested in transforming store assistants into personal shoppers who pamper their VICs – very important clients – by sending them products at home and keeping in touch regularly. Most brands now stream products on social media and show customers specific product videos.

Before the pandemic, Gismondi would not have sold a 300,000-euro, 10-carat diamond ring without showing it to the client in person.

"I was on the phone chatting with the lady who is buying it, and it came up that this was the dream of a lifetime for her," Massimo Gismondi, chief executive of the jewellery group, said.

"If there is something I like they send it home. They know my size and if in doubt they send more than one size. I buy what I like and I send back the rest."

From that moment, an exchange started with the woman via WhatsApp and video-calls to find the perfect design for the ring that would be delivered to her home.

"People are craving for leisure, for returning to savour life and spending," Mr Gismondi told Reuters.

French luxury group LVMH's star label Louis Vuitton in addition to online sales has started taking its shops to wealthy clients' doorsteps in the US.

The "LV by Appointment" campaign essentially brings a tailor-made shop on wheels to the customer, curated with a personalised selection of pieces – from leather goods to watches and perfumes – for those who opt for the service.

LVMH, the first to report results for the first quarter, set a very bullish tone for the industry. Revenue bounced back strongly, with its fashion and leather goods division surging 52 per cent – double analysts' forecasts. Sales in Europe remained in negative territory, but the 9 per cent decline was a major improvement from the minus 24 per cent seen in the fourth quarter.

Luxury brands have had a strong recovery in China since shops began to reopen there last spring. But in Europe and the US finding new ways to connect with customers has helped them to mitigate last year's sales declines.

Analysts say that improving sales in those two regions should also help revenue this year. Sales in Europe and the US accounted for 60 per cent of the total in 2019 and should come in at just under 50 per cent by 2025, consultancy Bain said.

Francois-Henri Pinault, chief executive of Gucci owner Kering, said in February that the group's revenue from "distant sales" – or sales outside its global store network – had risen sharply last year. The group had trained 400 sales assistants in 16 countries for this purpose, he said.

One source at an Italian luxury fashion label said typically a brand's marketing department will provide a list of clients to contact based on what they have bought over the previous year.

The sales assistants then phone customers, show them the latest arrivals via video chat and send them clothes or shoes to try on.

"You create a strong relationship between the salespeople and the customer," Prada chief executive Patrizio Bertelli told Reuters.

"We have gone from the shop assistant that simply shows you a product to someone who also does a bit of marketing, knows customers, their taste and their habits, reaches out to them and sends them stuff home."

A leather handbag and sneakers in the window display of a Louis Vuitton luxury goods store. Bloomberg
A leather handbag and sneakers in the window display of a Louis Vuitton luxury goods store. Bloomberg

A Milan-based PR executive who spends on average 40,000 euros ($47,552) a year in Prada's stores said that since last year, Prada has regularly sent her videos about its clothes.

"If there is something I like, they send it home. They know my size and if in doubt, they send more than one size. I buy what I like and I send back the rest," she said.

Over the past year, cashmere sweater label Brunello Cucinelli has been organising video calls with 30 to 40 customers at once to keep them engaged.

"It allows us to have a dialogue with a number of people which, if we had to arrange a physical appointment, would take us perhaps three to four years," the brand's co-chief executive Luca Lisandroni told Reuters.

He also said that brands should not become too insistent in trying to sell their wares.

"Some people like being contacted and stimulated, others don't want to be solicited too much," he said.

UAE SQUAD

Ahmed Raza (Captain), Rohan Mustafa, Jonathan Figy, CP Rizwan, Junaid Siddique, Mohammad Usman, Basil Hameed, Zawar Farid, Vriitya Aravind (WK), Waheed Ahmed, Karthik Meiyappan, Zahoor Khan, Darius D'Silva, Chirag Suri

Should late investors consider cryptocurrencies?

Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.

They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.

“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.

He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.

UAE currency: the story behind the money in your pockets

21 Lessons for the 21st Century

Yuval Noah Harari, Jonathan Cape
 

Sweet%20Tooth
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SPECS
%3Cp%3EEngine%3A%20Supercharged%203.5-litre%20V6%0D%3Cbr%3EPower%3A%20400hp%0D%3Cbr%3ETorque%3A%20430Nm%0D%3Cbr%3EOn%20sale%3A%20Now%0D%3Cbr%3EPrice%3A%20From%20Dh450%2C000%0D%3Cbr%3E%3C%2Fp%3E%0A
Results
%3Cp%3E%3Cstrong%3EStage%202%3A%3C%2Fstrong%3E%3Cbr%3E1.%20Soudal%E2%80%93Quick-Step%20-%2018%E2%80%9911%E2%80%9D%3Cbr%3E2.%20EF%20Education%20%E2%80%93%20EasyPost%20-%201%22%3Cbr%3E3.%20Ineos%20Grenadiers%20-%203%22%3Cbr%3E%3Cstrong%3EGeneral%20classification%3A%3C%2Fstrong%3E%3Cbr%3E1.%20Lucas%20Plapp%20(AUS)%20Ineos%20Grenadiers%3Cbr%3E2.%20Remco%20Evenepoel%20(BEL)%20Soudal%E2%80%93Quick-Step%20-%20ST%3Cbr%3E3.%20Nikias%20Arndt%20(GER)%20Bahrain%20Victorious%20-%203%22%3C%2Fp%3E%0A
Cultural fiesta

What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421,  Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day. 

Coffee: black death or elixir of life?

It is among the greatest health debates of our time; splashed across newspapers with contradicting headlines - is coffee good for you or not?

Depending on what you read, it is either a cancer-causing, sleep-depriving, stomach ulcer-inducing black death or the secret to long life, cutting the chance of stroke, diabetes and cancer.

The latest research - a study of 8,412 people across the UK who each underwent an MRI heart scan - is intended to put to bed (caffeine allowing) conflicting reports of the pros and cons of consumption.

The study, funded by the British Heart Foundation, contradicted previous findings that it stiffens arteries, putting pressure on the heart and increasing the likelihood of a heart attack or stroke, leading to warnings to cut down.

Numerous studies have recognised the benefits of coffee in cutting oral and esophageal cancer, the risk of a stroke and cirrhosis of the liver. 

The benefits are often linked to biologically active compounds including caffeine, flavonoids, lignans, and other polyphenols, which benefit the body. These and othetr coffee compounds regulate genes involved in DNA repair, have anti-inflammatory properties and are associated with lower risk of insulin resistance, which is linked to type-2 diabetes.

But as doctors warn, too much of anything is inadvisable. The British Heart Foundation found the heaviest coffee drinkers in the study were most likely to be men who smoked and drank alcohol regularly.

Excessive amounts of coffee also unsettle the stomach causing or contributing to stomach ulcers. It also stains the teeth over time, hampers absorption of minerals and vitamins like zinc and iron.

It also raises blood pressure, which is largely problematic for people with existing conditions.

So the heaviest drinkers of the black stuff - some in the study had up to 25 cups per day - may want to rein it in.

Rory Reynolds

How The Debt Panel's advice helped readers in 2019

December 11: 'My husband died, so what happens to the Dh240,000 he owes in the UAE?'

JL, a housewife from India, wrote to us about her husband, who died earlier this month. He left behind an outstanding loan of Dh240,000 and she was hoping to pay it off with an insurance policy he had taken out. She also wanted to recover some of her husband’s end-of-service liabilities to help support her and her son.

“I have no words to thank you for helping me out,” she wrote to The Debt Panel after receiving the panellists' comments. “The advice has given me an idea of the present status of the loan and how to take it up further. I will draft a letter and send it to the email ID on the bank’s website along with the death certificate. I hope and pray to find a way out of this.”

November 26:  ‘I owe Dh100,000 because my employer has not paid me for a year’

SL, a financial services employee from India, left the UAE in June after quitting his job because his employer had not paid him since November 2018. He owes Dh103,800 on four debts and was told by the panellists he may be able to use the insolvency law to solve his issue. 

SL thanked the panellists for their efforts. "Indeed, I have some clarity on the consequence of the case and the next steps to take regarding my situation," he says. "Hopefully, I will be able to provide a positive testimony soon."

October 15: 'I lost my job and left the UAE owing Dh71,000. Can I return?'

MS, an energy sector employee from South Africa, left the UAE in August after losing his Dh12,000 job. He was struggling to meet the repayments while securing a new position in the UAE and feared he would be detained if he returned. He has now secured a new job and will return to the Emirates this month.

“The insolvency law is indeed a relief to hear,” he says. "I will not apply for insolvency at this stage. I have been able to pay something towards my loan and credit card. As it stands, I only have a one-month deficit, which I will be able to recover by the end of December." 

Results:

Men's wheelchair 800m T34: 1. Walid Ktila (TUN) 1.44.79; 2. Mohammed Al Hammadi (UAE) 1.45.88; 3. Isaac Towers (GBR) 1.46.46.

ON%20TRACK
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How does ToTok work?

The calling app is available to download on Google Play and Apple App Store

To successfully install ToTok, users are asked to enter their phone number and then create a nickname.

The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.

Users can also invite other contacts to download ToTok to allow them to make contact through the app.

 

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
The%20Beekeeper
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Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

Innotech Profile

Date started: 2013

Founder/CEO: Othman Al Mandhari

Based: Muscat, Oman

Sector: Additive manufacturing, 3D printing technologies

Size: 15 full-time employees

Stage: Seed stage and seeking Series A round of financing 

Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now.