August 3, 2020
LUXURY AND RESILIENCE
Luxury and Resilience
“If you're going through hell, keep going” (Winston Churchill)
In troubled times, we all have doubts, and so do luxury brands. However, they do have great assets, both tangible (products, employees, shops) and intangible (savoir-faire, reputation, experience).
Instead of complaining about suffering from poor sales figures, luxury brands should rather use this time to innovate and elaborate the classics of tomorrow: throughout history, luxury has always boomed after major crises and now is the time, more than ever, for brands to be patient and resilient.
#luxury #resilience #strategy
July 31, 2020
THE ART OF TEACHING
I have been teaching luxury marketing and strategy at business schools worldwide for about 6 years.
What I could not have anticipated, was that in imparting my knowledge I would actually learn more from my students, and in working with them have become a better luxury professional.
These are the lessons I have learned as a professor:
-I have met with millennials from all around the world and got to know their needs and expectations
-I had to organize my thoughts in classes and use both theory and practice to explain luxury concepts, which expanded my perception of the luxury sector
-And, it might surprise you to know, it also improved my confidence in public speaking
I am a firm believer that teaching will help you become a better manager. Education is not restricted to schools: in challenging times, more than ever, luxury brands need to educate their clients and their employees in the codes of luxury.
#luxury #education #strategy
July 29, 2020
LUXURY, FASHION AND PRESTIGE
What might be the differences between luxury, fashion and prestige brands?
It is about time and purpose:
-Luxury is timeless, has a long-term vision and builds the classics of tomorrow. We buy luxury for the experience and/or the conspicuousness
-Fashion is seasonal and follows trends. We buy fashion to be stylish and to show others that we know what is new
-Prestige is about value-for-money and being acknowledged. It is less sensitive to time than fashion, but will last less than luxury
#luxury #strategy #brandmanagement
July 28, 2020
Let me share with you a recent interview I gave to Angela Tunner about luxury and HNWI.
It was such an honor to share my experience of luxury with
And thank you Carla Martin for the nice introduction!
#luxury #strategy #expert
July 28, 2020
LUXURY AND GREENWASHING
Nowadays, most brands want to show their customers that they care for the environment.
But the line between greenwashing and sustainability is very thin: responsible sourcing must be demonstrated throughout the brand’s value chain, and not only in their communications. Clean practices should be adopted upstream and integrated into brand strategy, as brands must believe in the importance of planet-friendly materials and a well-treated workforce, and this has to become part of their identity.
Luxury products are purchased for their longevity, but also (and mostly) for the values they are associated with, and if brands are not sincere or – even worse – when they exaggerate or lie about their engagement, it might harm their image and, ultimately, impact their sales negatively.
#luxury #strategy #sustainability
July 28, 2020
IMPACT OF COVID-19 ON THE LUXURY INDUSTRY
Over the past few weeks, many people have asked my opinion about the impact of the Covid-19 on the luxury industry. Here are my thoughts:
Impact on Sales
Absolute luxury (high jewelry, supercars, private jets…) should fully recover in a few months as their clients, HNWIs and other affluent people, have not been financially impacted too much and will want to enjoy life again, and will therefore consume luxury products and services.
On the other hand, accessible luxury (logo products, accessories, mainstream luxury brands) may have more difficulty recovering from the crisis as their clients, belonging primarily to the middle class, have experienced much more strain in terms of job loss and/or reduced purchasing power.
Impact on Companies
Big groups and brands should be able to survive the crisis, but smaller companies are facing insurmountable challenges, such as financial issues, shortage of raw materials and logistical issues. It might lead to bankruptcies and/or acquisitions within the next year. Let’s see how government bailouts will help smaller companies in some countries, like in France…
Most companies have also frozen hiring (full-time, part-time, internships) and this situation should continue at least until the end of Summer.
Impact on Consumer Behavior and on Distribution
Travel retail has suffered heavily from the pandemic, as most flights (domestic and international) have been canceled. Luxury clients are not able to travel and therefore do not (and in most countries cannot) buy luxury in shops or department stores. This situation will likely not improve much before at least year’s end.
Is it an opportunity for e-commerce then? Well, it is not that simple: it might be tempting to purchase luxury online, but people might lack the in-store experience and they might want to “feel and touch” the products. Moreover, shipping products has been a challenge for most companies, due to the shortage of staff, of transportation means (air, sea, rail, road) and of lockdown policies.
So, will luxury survive the crisis? Yes, most certainly, but we will observe many transformations in the months and years to come as brands rethink their strategies for both the short and long-term impacts.
#luxury #strategy #covid19
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