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  • Acharya feature image 190x142
    On May 6, 2010, Viral Acharya, Professor of Finance, testified before the US House Financial Services Committee at a hearing on "The End of Excess (Part One): Reversing Our Addiction to Debt and Leverage."
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    A Crystal Ball into the Future of the $250 billion Prestige Sector

    May 03, 2010 01:46 PM Eastern Daylight Time

    NEW YORK--(EON: Enhanced Online News)--Chanel and BMW top the first annual L2 Gen Y Prestige Brand Rankings, the largest study-of-its-kind measuring the affinity for 105 iconic brands among the next generation of prestige consumers. Scott Galloway, NYU Stern Clinical Associate Professor of Marketing, surveyed 450 Gen Y high-earners from 45 countries (83 percent are expected to make more than $100k+/year in the short term) and measured brands in six industry categories. The study also looked at Gen Y brand engagement across popular channels.

    The rankings and observations can be found at http://l2thinktank.com/Gen_Y_Report.pdf

    Describing the Rankings’ potential value to prestige brand marketers, Galloway stated, “Gen Y goodwill is arguably the closest thing to a crystal ball for predicting a brand's long-term prospects. Just as Boomers drove the luxury sector for the last 20 years, brands that resonate with Gen Y, whose purchasing power will surpass that of Boomers by 2017, will be the new icons of prestige.”

    Luxury is Timeless

    The Top 10 brands for male and female Gen Y are dominated by traditional luxury brands such as Chanel, Cartier, The Four Seasons, and Ralph Lauren. However recent prestige entrants, Marc Jacobs and W Hotels, demonstrate the effectiveness of direct appeals to Gen Y.

    Not surprisingly, cars dominated among men capturing eight of the top 10 slots. German brands BMW, Mercedes-Benz and Audi also appealed to females, who rated the category second only to Fashion and above Beauty & Skin Care.

    The list of brands scoring in the Gen Y Prestige Brand Rankings top 10 (by gender):

    Gen Y Females:Gen Y Males:
    1. Chanel1. BMW
    2. Ritz-Carlton2. Ferrari
    3. Four Seasons3. Porsche
    4. Marc Jacobs4. Lamborghini
    5. Cartier5. Audi
    6. BMW6. Aston Martin
    7. Mercedes-Benz7. Four Seasons
    8. W Hotels8. Mercedes-Benz
    9. Prada9. Ralph Lauren
    10. Audi10. Ritz-Carlton
    Other key survey findings include:
    • Gen Y loves brands. Sixty-five percent of females and 61 percent of males consider themselves “brand conscious.” Only 1 percent of females and 3 percent of males do NOT consider themselves brand conscious.
    • Gen Y considers Apple a prestige brand. Unprompted, Apple is considered the #1 brand among men and #9 for females. Apple is #1 when asked by both males and females as to their most likely next prestige brand purchase.
    • Among the lowest rated categories for both men and women, the future looks dim for watches and jewelry. While legendary brands Cartier, Tiffany and Rolex still rank high, there is a significant lack of Gen Y brand awareness in the category.
    • For Gen Y, Europe remains the home for luxury fashion. For females eight of the top 10 fashion brands are headquartered in Europe, including legendary fashion houses Chanel, Prada, Hermes and Gucci.
    • Brands aren’t capitalizing on the e-commerce opportunity. While the store is still the dominant channel, more than half of Gen Y females purchased luxury goods on discount websites such as Gilt.com (54 percent) and retail websites such as Net-A-Porter.com (53 percent), while less than a third (31 percent) purchased directly from a brand site.
    • Print is not dead. Print continues to be a primary source for information on prestige brands. It is the #1 source for women and #2 for men. Recommendations from family and friends via word of mouth are also crucial, ranking #1 for men and #2 for women.
    • Gen Y has embraced social media and blogs. One in five Gen Y respondents like a prestige brand on Facebook, and one in 10 follow a prestige brand on Twitter. Almost half have signed up to receive email from a prestige brand and almost one in 5 Gen Ys consider blogs one of their top three sources for information on prestige brands.
    • Trump received the most “hated” scores of any prestige brand in the survey. Forty percent of men and 34 percent of women Gen Y reported they hated the brand.

    About L2

    L2 is a think tank focused on marketing innovation for prestige brands. Founded by NYU Stern Professor Scott Galloway, L2 helps brands navigate the changing marketing landscape through events, research and advisory services. www.l2thinktank.com

    About New York University Leonard N. Stern School of Business

    New York University Stern School of Business, located in the heart of Greenwich Village, is one of the nation’s premier management education schools and research centers. NYU Stern offers a broad portfolio of academic programs at the graduate and undergraduate levels, all of them informed and enriched by the dynamism, energy and deep resources of the world’s business capital.

    Contacts

    New York University Stern School of Business
    Rika Nazem, 212-998-0678
    rnazem@stern.nyu.edu
    or
    Scott Galloway, 917-567-2841
    scott@stern.nyu.edu

    May 3, 2010:
    http://eon.businesswire.com/portal/site/eon/permalink/?ndmViewId=news_view&newsId=20100503006616&newsLang=en
  • entrepreneur challenge 2010 berkley feature
    On April 30, the winners of NYU Stern’s 11th Annual New Venture Competition and 6th Annual Social Venture Competition received more than $175,000 in seed money and in-kind support. After pitching their venture ideas, the three winning teams, each led by NYU students and alumni, were chosen by a panel of investors and business owners in the social enterprise and for-profit sectors.
  • – Press Releases

    NYU Stern Launches NYU Stern Systemic Risk Rankings

    April 21, 2010
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    New York University Stern School of Business is launching the NYU Stern Systemic Risk Rankings, a weekly rating and ordering by level of risk that the largest U.S. financial institutions bring to the financial system. The new rankings use stock quotations and other market data, from 1990 to the present, and provide an early warning that will help regulators identify threats to the overall health of the financial system.
  • Water filling station ecochallenge photo
    New York University’s Stern School of Business’ Stern Campus Greening Initiative (SCGI) received a $10,000.00 grant from The Brita Products Company for their proposal to install 25+ water bottle filing stations in NYU campus buildings. The grant is provided by the College FilterForGood Eco-Challenge www.filterforgood.com/ecochallenge/, which challenges college students to make their campuses more sustainable. The Eco-Challenge is an extension of Brita’s FilterForGood program aimed at reducing bottled water waste.
  • Sheila Wellington 190x266 photo
    Earlier this month, Sheila Wellington, NYU Stern Professor of Management and Organizations and advocate on behalf of women in business, joined a group of 50 CEOs and government leaders invited by President Obama to discuss the importance of flexible arrangements in today’s workplace.
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    Z-Score creator and the world’s leading bankruptcy and distressed debt expert NYU Stern Professor Edward I. Altman has co-developed the Z-MetricsTM credit analysis tool to enable investors and lenders to more accurately estimate company credit ratings and default risk probabilities.
  • – Press Releases

    A. Michael Spence, Nobel Economist, to Join NYU Stern

    February 22, 2010
    Michael Spence 190x233 photo
    New York University Stern School of Business today announced that Nobel Laureate A. Michael Spence will join the faculty of NYU Stern as Professor of Economics, effective September 1, 2010. Spence is a Senior Fellow at the Hoover Institution and the Philip H. Knight Professor Emeritus of Management in the Graduate School of Business at Stanford University.
  • AVP_0867 190x142 image
    “When push comes to shove, both men and women are guilty of using their gender to be successful,” says NYU Stern Professor of Marketing Priya Raghubir.
  • Deutsche Bank Logo photo
    Deutsche Bank and New York University Stern School of Business today announced a multi-year academic partnership designed to support and expand education and research related to risk management and financial regulation. The Volatility Institute at NYU Stern, directed by Nobel Laureate Robert Engle, will coordinate the program.
  • AVP_0867 190x142 image
    “What you ask of someone and how you ask it can have a big impact on performance,” says NYU Stern Marketing Professor Adam Alter. “What you ask of someone and how you ask it can have a big impact on performance”
  • robert engle 172x253 photo
    On February 12, 2010, Stern Nobel Laureate Robert Engle testified before the US Senate Committee on Banking, Housing and Urban Affairs during a hearing on “Equipping Financial Regulators with the Tools Necessary to Monitor Systemic Risk.” Professor Engle shared several key findings from a report that he co-authored for the National Research Council on the regulation of systemic risk.
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    NYU Stern Professor Vasant Dhar, an expert in the strategic implications of information technology, warns that the publishing industry will be the next “carcass” if it doesn’t embrace a new business model, and he proposes what this new model should look like.
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    Analyzing 10 different types of credit behavior, NYU Stern Professor Xavier Gabaix, with colleagues Sumit Agarwal at the Federal Reserve Bank of Chicago, John Driscoll at the Federal Reserve Board and David Laibson at Harvard University, conclude that the least costly financial decisions occur around age 53.
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    German auto brands dominate the top echelon of the new Auto Digital IQ Ranking, a first-of-its kind measurement of the digital competence of 44 auto brands.
  • AVP_0867 190x142 image
    NYU Stern faculty are available to provide commentary on key issues central to the regulatory reform bills now working their way through Congress.
  • AVP_0867 190x142 image
    Viral Acharya, NYU Stern Professor of Finance, with colleagues Paolo Volpin at London Business School and Marco Pagano at Università di Napoli Federico II, received a 10,000 Euro grant from the BNP Paribas Hedge Fund Centre at HEC Paris for their paper, “Seeking Alpha: Excess Risk Taking and Competition for Managerial Talent."
  • AVP_0867 190x142 image
    The presence of organic listings on a search engine positively impacts the click-through rates of paid search advertisements, and vice-versa, according to a new study by NYU Stern Professors Anindya Ghose and Sha Yang. This is the first empirical study to assess the impact of search engine advertising on all three entities involved in the process – consumers, advertisers and search engines – in the presence of both organic listings and paid advertisements.
  • AVP_0867 190x142 image
    NYU Stern announced today that alumnus John Paulson (BS ’78), founder and chairman of hedge fund Paulson & Co., Inc., has given a gift of $20 million to NYU Stern. John Paulson’s gift will endow two faculty chairs – the Alan Greenspan Chair in Economics and the John A. Paulson Professor of Finance and Alternative Investments – as well as provide significant support for the School’s Concourse Project, a major facilities renovation currently underway, and scholarship aid for undergraduate students.
  • AVP_0867 190x142 image
    Considering market-based approaches to tackle the world’s most intractable social problems is exactly the type of study NYU Stern’s Citi Leadership and Ethics Program was created to explore. Marking its 7th year, the Program appointed Mary Ellen Iskenderian, President and CEO of Women’s World Banking (WWB), the world’s largest network of microfinance institutions and banks, as this year’s Distinguished Citi Fellow in Leadership and Ethics.
  • AVP_0867 190x142 image
    As of the end of 2008, $9.6 trillion was invested with investment professionals in the US. How can investors know their money is well managed? Three NYU Stern professors recommend picking money managers who shift their investment strategies over the course of the business cycle.
  • AVP_0867 190x142 image
    New York University Stern School of Business Luxury and Retail club, in partnership with LuxuryLab, will co-host the Innovation Forum 2009, a half-day event that includes 15, nine- and 18-minute high velocity presentations from some of the biggest names in luxury goods, media and academia.
  • AVP_0867 190x142 image
    In their paper, “The Price of Sin: The Effects of Social Norms on Markets,” NYU Stern Assistant Professor of Finance Marcin Kacperczyk and his co-author, Harrison Hong from Princeton University, examine the performance of stocks from 1926-2006.
  • AVP_0867 190x142 image
    On October 20, NYU Stern alumnus John Poindexter (MBA ’71 & PhD ’76), along with 86 veterans of the troop he commanded, was honored with the Presidential Unit Citation by President Obama in recognition for their actions four decades ago in the Republic of Vietnam.
  • AVP_0867 190x142 image
    NYU Stern Finance Professor Stephen Brown, with co-authors William Goetzmann from the Yale School of Management, Bing Liang from the University of Massachusetts at Amherst and Christopher Schwarz from the University of California at Irvine, examined 444 hedge fund due diligence reports supplied by a major hedge fund due diligence firm hired on behalf of investors.

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Contact NYU Stern Public Affairs

If you're a member of the press, please contact Stern’s Office of Public Affairs at:

Phone: 212-998-0670
Fax: 212-995-4950
Email: paffairs@stern.nyu.edu

Or contact us directly:

Rika Nazem, Executive Director
(212) 998-0678; rnazem@stern.nyu.edu

Janine Savarese, Executive Director
(212) 998-0202; jsavarese@stern.nyu.edu

Carolyn Ritter, Director
(212) 998-0624; critter@stern.nyu.edu


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