New Business Models in the Luxury sector

Next session, we will be discussing those new business models flourishing in the luxury sector, in particular second-hand luxury and luxury for rent.

Read Vestiaire Collective and Armarium cases. Describe the business models: how is value created through these platforms? Conduct a SWOT analysis of both brands. Describe the client profile. What are the competitive advantages of VC and Armarium (ie. study briefly the competitive landscape). What future do you foresee to both models?

You might find interesting reading chapters of the book Vintage Luxury Fashion: Exploring the rise of the Second-Hand Clothing Trade (2018), Palgrave: London, UK. I co-autored two chapters:  Chapter 6 “Emotional and narrative accounts of second-hand Luxury Fashion purchases” and Chapter 12 “Vintage Fashion: A cross-cultural perspective”. Also interesting regarding second-hand luxury, two posts on my blog: 2017 Trends, Second Hand Luxury and Christie’s on Luxury handbags as an Investment (Feb 24, 2016 based on a conference by Christie’s, really interesting on the value of Hermes vintage bags). In addition please watch Sebastien Favre CEO of Vestiaire Collective on Youtube.

 

 

Onefinestay: Luxury in the sharing economy

Next session, we will be discussing Onefinestay concept. Onefinestay is a concept of luxury home rentals founded in 2009 in London. When it was acquired in April 2016 by Accorhotels, it was managing around 2600 private homes in London, New York, Paris, Los Angeles and Rome. Visit the webpage https://www.onefinestay.com/, watch Greg Marsh inspiring story on Youtube (below) and read all relevant information you will find on internet. Conduct a SWOT analysis and identify Onefinestay customer segments. Do you think Onefinestay has a product and service strategy adapted to luxury clients? Is it a serious competitor to luxury hotels?

YOOX and Net-a-Porter: The Place to Be?

During this session, we will be discussing the online distribution strategy of Luxury brands. To prepare for discussion, read the case “Is YOOX strategy a little Farfetched?” and the article based on an interview I gave to Trends Tendances April 2017 at

https://trends.levif.be/economie/entreprises/net-a-porter-the-place-to-be-pour-les-marques-de-luxe/article-normal-644781.html

What are the advantages and disadvantages for Luxury brands to be present on these platforms? is there a difference between YOOX and Net-a-Porter? YNAP and Farfetch? Does the YNAP merger makes sense? Should online platforms open brick-and-mortar stores? What is the interest for NAP to develop a media platform?

You might find interesting to watch the following video published by FT on YouTube.

Omni-channel strategy at Tiffany&Co

During the next session, we will be discussing the benefits and pitfalls of luxury brands embracing an omni-channel strategy. Read the case Tiffany; based on the case and your experience with brands successful in omni-channel marketing, identify the brand touch-points against different stages in the Customer journey. What could be the different actions that Tiffany can undertake to propose a luxury experience to its customers? What are the challenges regarding store operations and customer service?

You might find useful to go to Tiffany&Co channel on YouTube:

https://www.youtube.com/channel/UCfKBHHIxsR-MrgytQOS9tbw

 

Luxepack 2018 focus on GenZ

Great conference and workshop with Stéphane Truchi (Ifop President), Béatrice Marriotti (Carré Noir Vice-President) and Régine Charvet-Pello (Certesens, President and co-founder).

Read the summary of the conference below and try to identify packaging ideas that are emblematic of GenZ generation. If you go to Certesens corner, you will discover 4 interesting textures that match GenZ: Light (of smartphone, computer etc.), shine, flexibility and skin.

The new generation (born from the mid-1990s to the early 2000s) represents a larger cohort than the millenials or baby-boomers (around 1/4 of the US population). It is the first generation truly digital native. IFOP study identifies 4 characteristics to this generation:

  1. The importance of tradition: GenZ revives the fundamentals of Luxury, which are product and service excellence and ultimate creativity. They praise expensive brands that they would purchase as self-reward  and as a signal of social success. It is the revival of prominent logos and money display, with no inhibition. It is a generation that is transgenerational (72% prefer working with people of all ages) and very anchored to local roots (eg. the revival of iconic brands Champion US, Lacoste, Fila, Fusalp, Kway). It is a generation that is into “authenticity revisited” with fun (Hermesmatic  https://www.hermes.com/us/en/story/107636-hermesmatic/ ).
  2. Showing off success: GenZ is a generation that does not feel ashamed showing off money. In non-Calvinist countries such as France, the oldest generations had less problems talking about sex than about money… (the perfect illustration: comments in French tabloïds on DSK driving a Porsche car). GenZ is very comfortable with both. GenZ wants to make money but also wants a balance with personal life. In contrast to other generations, they aspire making money on their own, being entrepreneurs (45% see themselves being entrepreneurs). They have plenty of examples of Young people success on YouTube, Instagram or heading start-ups with great ideas. They want to make money fast and display their success. In relation to luxury, they aspire owning brands that signal very strongly financial success (Rolex number 1 aspirational brand in France, Britain and China).
  3. A new form of experiential Materialism: Materialism is reinvented, and becomes experiential that way. 83% want to live a unique experience. They want a blend of physical and digital. Phygital in the stores is key. In addition, although they are connected to virtual friends on social media, they want to do things physically with others. The motto is being able to share. 58% enjoy doing things they can share with others  (Gucci Hub is a good illustration  https://clubtoclub.it/en/venue/gucci-hub/). They also praise products that are parodies and collaborations based on fun (Supreme x LV).
  4. Engagement with concrete, day-to-day actions and personal involvement.  They would fight for gender and ethnicity equality. It is the generation who talks loud (Génération sans bâillon), #metoo. 68% try to stick to a more ecological lifestyle. 59% try to live in great harmony with nature.
  5. Protecting Mental Health: GenZ is in a quest for better personal relief. The motto is feeling good with myself. 80% of GenZ women believe  that real beauty is to be truly oneself. It is the first generation of women confortable with their bodies (59% feel good with their body). They really appreciate diversity on the catwalk, including showing handicap and skin diseases like vitiligo (beautiful Winnie Harlow). They are also aware that overexposure to social media is a danger to their mental health. Particularly in China where AI is a political engagement, 40% of GenZ are concerned about self-protection. Detox, Me me me, and hyper-personalisation are trends born on these grounds.