Luxe Pack Monaco 2017: tradition and innovation

EDHEC BBA students visited Luxe Pack Monaco today, the occasion to discover and comment packaging innovations in different sectors, like Fragrances and Cosmetics or Wine and Spirits (read the comments they make to this post). This year, two new spaces provide a source of inspiration.

First, a “Living Heritage Hub” is dedicated to the best craftsmen in France (Entreprises du Patrimoine Vivant) with Ephtée, Maison Fey, Crézé, Fonderie d’Art Macheret, Atelier Philippe Martial and Cristallerie Saint-Paul, all compagnies having in common excellence and traditional manufacturing.

Second, a multisensorial space proposes an immersive experience “Test your senses” in partnership with Mat&Sens. The space is organized around four major trends in luxury (source S.Truchi, IFOP) and their translation into emotions, sensations and packaging materials that we can touch:

  • Engagement with brands that truly commit, which leads to revisit The Nature through vegetal moss, mushrooms, sand, and wood composite
  • The reign of Singularity and self-expression with materials such as 3D textile or mix of acrylic and metal
  • Non-conformity and opposition to social codes and social expectations, translated through unusal materials such as cow stomach or ray skin
  • A New Vision of Time, a slow-time which allows consumers to enjoy the moment, through bamboo silk and translucent alabaster

Among the many conferences which were organized this year,  the conference “Creative Packaging for a drinking experience beyond the ordinary” explained the process leading to the launch of DIAGEO’s Tanqueray Gin Cage, an amazing bottle much discussed by students (read comments below).

Roundtable: The Future of Luxury Retail in a Digital World


Great roundtable on June 29th on the Future of Luxury Retail in a digital world organized by Bettina Fröhlich (Luxe Partenaires) at Digital Luxury Meeting 2017: Avak Der Boghossian (Deloitte partner) introduced the market trends of digital experiential and personalization (Deloitte report Global Powers of Luxury Goods 2017,https://www2.deloitte.com/content/dam/Deloitte/global/Documents/consumer-industrial-products/gx-cip-global-powers-luxury-2017.pdf); Béatrice Querette (Merchanfeeling) provided insights from the field; Hortense Sauvard shared her perspective as a co-founder of OuiAreMakers.com.

Marie-Cécile Cervellon (EDHEC Business School) shared her research outlook on luxury etail and retail: The boundaries between retail and etail are blurred. The customer is the focal point of the omnichannel strategy. On one hand, online brands make their online presentations concrete, tangible and humanized through pictures of human models, zoom on details, 360 spin rotations, videos and the possibility to interact with human advisors. This strategy decreases the perceived risks associated to the online purchase. The chances to purchase online are multiplied by 1.5. The consumer is encouraged to pick up his purchase in the physical store (click&collect), creating traffic to the store and cross-selling opportunities. On the other hand, the digitalization (or phygitalization) of the point of sales is a major stake. From connected windows that allow purchases 24/7 to order and payment through mobile apps, the store becomes a replica of the e-boutique as much as the e-boutique becomes a replica of the physical store. Yet, in this digital world, let us NOT forget the BASICS… the reasons why clients go to the store: living an amazing in-store experience. Particularly the Millennials who will represent 40% of the personal luxury goods market by 2025, look for experiences that they can share. Unfortunately, 1/3 finds monotonous the experience in the store. Even more worrying, the service is bad, to extremely bad, in half of the visits. Our research shows that a young client activates a stereotype which makes him/her an unprofitable potential client and might lead to discriminatory treatments (Cervellon, Poujol and Tanner, 2017). Training to avoid stereotype-based behaviors is key.

What should the Luxury Store of the Future look like? Marie-Cécile said “A DESTINATION in the customer journey, a place for experimentation and a source of inspiration”.

 

 

 

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EDHEC at Luxe Pack Monaco 2016 in green

In Monaco from September 21st to September 23rd, Luxe Pack showcased all new trends in the sector of luxury packaging. Luxe Pack trend observers identified three major trends shaping the sector this year:

  • Frugality, illustrated by sober packagings in neutral colors, creating a sense of serenity (eg. Carven, L’eau intense)
  • Compulsive, illustrated by vibrant packagings in bright colours, creating a sense of happyness (eg. Nina Ricci Pop)
  • Imprint, illustrated by sophisticated packagings that play on contrasts and reliefs, appealing to nostalgia and culture. (eg. Mumm bottle and its red cord embedded in the glass)

Eco-consciousness is still present, as a macro-trend that cross frontiers, generations and sectors. This year, Luxe Pack Monaco awarded Bormioli Luigi Glass Maker for its eco-jars, lighter by 50%, and that cut CO2 emissions by 60% (by comparison to jars of equal capacity). What other initiatives did attract your attention and why? For those who could not attend, you might find interesting examples at http://www.luxepack.com/ or shade light on a green initiative you find relevant.

 

EDHEC rewards the French Savoir-Faire at Luxe Partenaires Awards 2016

The Luxe Partenaires Awards ceremony took place on July 12th night in the Aero-Club de France salons.  Comité Joséphine received an award for its contribution in protecting the French Savoir-Faire through rare and exceptional perfumes. HIKITAG received the ABC-Luxe award for digital innovation in the luxury sector. Among many luxury brands deserving an award this year, Maison Jaeger-Lecoultre received a special prize for its iconism and ability to reinvent itself.

On the picture below (from left to right), Marie Huet (Parfums d’Orsay, Comité Joséphine), Marie-Cécile Cervellon (Edhec) and the Master of Ceremony Bettina Frohlich (Luxe Partenaires).

Luxe Partenaires Awards 2016 with Marie Huet

 

 

 

 

 

 

 

If you want to know more about Luxe Partenaires, first Business Network of Professionals in the Luxury Sector:

http://www.luxe-partenaires.com

If you want to know more on Comité Joséphine actions, read on ABC-Luxe the article:

http://www.abc-luxe.com/actus/culture-events/article/le-comite-josephine-dedie-aux-maisons-francaises-de-parfums-rares

I recommand you would discover Maison Jaeger-Lecoultre savoir-faire through this video on YouTube:

EDHEC represents France at L’Oreal Brandstorm International Finals 2016

On June 30th, Edhec was representing France in the International Finals of L’Oreal Brandstorm. This year 15000 students from 57 countries were competing in this prestigious business game. Maurane Vallée, Marie Mazurkiewicz and Jérémy Barouin (Msc Marketing Management) had been selected by L’Oreal to represent France during the French finals organized in April. “The jury commended the strategic outlook of their project and the relevant use of existing social media platforms to recruit Millenials to La Roche-Posay brand ” says their professor of marketing Marie-Cécile Cervellon. We congratulate team Poland which finally won the international finals!

EDHEC at LVMH Journées Particulières

EDHEC students in Msc Marketing and Apprentissage were invited to LVMH Journées Particulières on May 20th. A privileged journey in the Ateliers Louis Vuitton in Asnières and The House of Dior avenue Montaigne.

Discover the Best Of video posted by LVMH on YouTube:

EDHEC winning French finals of L’Oreal Brandstorm

On April 29th, Edhec Business School won the French finals of L’Oréal Brandstorm, over the major French Business Schools partners to L’Oréal. Maurane Vallée, Marie Mazurkiewicz and Jérémy Barouin (Edhec Msc Marketing 2016), coached by their professor of marketing Marie-Cécile Cervellon, will be representing France in the International Finals on June 30th. They will join teams from 57 other countries with one objective: helping La Roche-Posay attract and recruit millennials to the brand.

L’Oréal Brandstorm is a major International Business Competition organized by L’Oréal since 1992. This year, were competing against Edhec: Hec, Essec, Escp, EM Lyon, Audencia, Neoma, Science Po, Dauphine, Centrale Lyon, Agro ParisTech and the Wild card (Skema).

 

 

EDHEC Research: Should luxury be described in concrete language?

On April 8th, EDHEC researchers (Marie-Cécile Cervellon, Marie-Catherine Mars, Virginie de Barnier) presented their paper entitled “Should luxury be described in concrete language?” at the Monaco Symposium on Luxury. The paper tests experimentally how product display and verbal descriptions, such as presenting products using abstract or concrete language, affect online purchases. It explains the psychological mechanisms that are at play when browsing internet for a gift or booking a hotel or a restaurant. In addition to insightful research papers, The Monaco Symposium on Luxury was the stage for business presentations, among others Bentley, L’Oreal luxury division, Jean Patou, Wally Yacht, Air France or Accor.

See the website http://monaco-symposium-on-luxury.com/

Abstract. This research uses the Construal Level Theory framework (Trope & Liberman, 2010) to understand the influence of product description on purchasing luxury vs. accessible products online. In a field experiment, French participants (n = 368) were recruited online, three weeks or three days before Christmas 2014, as they were shopping for a gift. Results show that the nearer the goal (Christmas), the nearer the gift recipient (similar other), and the more distal the product category (luxury), the higher the intention to purchase the product based on detailed product description. In a second experiment, students (n= 353) had to make a choice between two hotels described similarly side-by-side in concrete or abstract language. The chances to choose the concrete description are enhanced the more distal the product category (luxury), the more likely the trip and the more experienced the respondent with booking online luxury hotels. Although luxury brands might enhance brand desirability using allusive or abstract description, our results indicate that detailed and concrete product descriptions might be a stronger factor of sales conversion online.

Christie’s on Vintage Handbags as an Investment

On February 23rd, the Compagnie Monégasque de Banque (CMB) proposed to its private banking clients an unusual conference entitled “Why go vintage?”. Matthew Rubbinger, Senior Vice-President at Christie’s, head of the handbags and accessories division, gave a talk on the value of vintage handbags. In four years, the market has tripled to reach 27,780,776 € in 2015 (sales of three major players Christie’s, Heritage and Artcurial).

The vintage handbag market benefits from a post-financial crisis syndrome: since 2008, many luxury clients look for value purchases. They wish to invest in classical models that will be transmitted from generations to generations and will not lose their financial value with time. The rarest pieces by Hermès can go up to 221,912 €, the world record in June 2015 for a fuchsia crocodile diamond Birkin.  Those rare pieces include discontinued models (A So Black Birkin 2010 sold 100,812 € at Christie’s Honk Kong, Dec. 2015), models sought-after because they are produced in very limited quantities (An Himalaya Birkin 35 sold for 157,500 € Christie’s Paris, March 2015) and limited editions (A Kelly Nuage dating back 20 years sold 32,475 € at Artcurial Monaco, July 2013). Several limited editions have multiplied their value by 10, such as the Quelle Idole handbag (aka Kelly Doll). Custom-made pieces can be a good investment for clients in need for uniqueness, when the color selection works…

Pieces which are technically difficult to produce are highly valued (A Picnic Kelly sold 49,500 € at Christie’s Paris, March 2015). Exceptional pieces include Sellier Birkin bags.  Indeed, unlike Kelly bags made in Sellier or Retourné constructions, Birkin’s have been produced historically in Retourné only. In 2015, Hermès announced a Sellier Birkin collection but it was never released. Thus, there are less than ten Sellier Birkin in the world.

Other elements which give value to the bag are based on the rarity of the materials (eg. a suede Kelly or an ostrich Birkin, a popular exotic skin increasingly rare), the color of the bag (eg. Porcelaine color or naturally gradient shades), and of course, its condition (more so than the vintage year). The owner is hardly important, except when her name adds meaning to collectors, such as Margaret Thatcher’s Chanel bag.

Due to the complexity involved in estimating those bags,  the expertise of auction houses such as Christie’s is called for. When buying at an auction, the piece is authentified, graded from brand new condition (grade 1) to fair (grade 6) and estimated along its rarity. It is a guarantee for a safer investment. Yet, do not purchase a handbag just because you bet on its future value. Matthew Rubbinger concluded that the best investments on handbags are based on passion.

If you want to learn more OR bid in the Spring 2016 Paris Fashion Week Handbags auction on March 5th, browse the 172 lots for sale on Christie’s e-catalogue at http://www.christies.com

EDHEC comments Luxe Pack Monaco 2015 innovations

BBA EDHEC at Luxe pack Monaco, 2015
BBA EDHEC at Luxe pack Monaco, 2015

 

On October 22nd, BBA Edhec 4th year students in Luxury track were welcomed at LUXE PACK Monaco. Students’ selection of the most impressive packaging innovations is attached to this post.

Luxe Pack Trends Observer. Visitors were introduced to the latest trends in luxury packaging, The Empire of Genres, Artisan Manifesto, XXL Branding,  thanks to showcases illustrating these trends (picture below). In the afternoon, students attended a conference by Simon Tye (Executive Research Director at Consumer Research Group) “Asian consumer in 2025: Anticipate dramatic consumer changes and rethink your strategy”.

Interaction between packaging and the point of sale. The creation of immersive experiences in the store, thanks to connected packaging, was among the most interesting topics discussed during Friday’s roundtable. Panelists discussed the possibilities offered by kinetic installations such as Hibiki whisky interactive glass and Mischer’Traxler’s interactive curiosity cloud for Perrier Jouët. Both brands propose a customer experience blending tradition and innovation.

Thank you to Marie-Catherine Mars, Professor of Marketing at Edhec for organizing the visit. And thank you BBA Edhec for your involvement!

Luxe Pack Trends Observer, Monaco, 2015
Luxe Pack Trends Observer, Monaco, 2015

Edhec at Global Citizen Forum, Monaco 2015

EDHEC students were invited on October 8th and 9th at the Global Citizen Forum in Monaco. Kofi Annan, 7th Secretary-General of the United Nations, was one of the prestigious speakers. Marguerite Hedde (EDHEC 2016, Msc Marketing) had a unique occasion to interact with him and asked the following question: “In 2012, you said about the Syrian crisis that Russia had a better analysis of the situation than the international coalition, as Russia wanted to interfere in order to protect the population rather than bringing the government down (RFI source). According to today’s situation in the Middle East, what role do you believe Russia can play within or outside the western coalition to fight Daesh?”.  Kofi Annan answered back that Russia or any country from the international coalition won’t be able to act efficiently in Syria if they don’t work hand in hand with the countries around Syria (Turkey, Iraq,…). Thus, all the countries should work together in the organization of their actions and understand that it is the only way to overcome Daesh.

Thank you to Long Bernard Hoang, adjunct professor at EDHEC Business School for organizing the trip and coaching the students!

Edhec at Global Citizen Forum in Monaco
Edhec at Global Citizen Forum in Monaco

 

Heritage Days with Maison Boucheron and Printemps Haussmann

To those students in Paris on September 19th and 20th, two interesting visits in the context of the French Journées du Patrimoine (among hundreds of historic places which open their doors during the week-end):

Maison Boucheron will present its heritage dating back 1858 and the Art of Haute Joaillerie in its boutique on Place Vendôme . Register at 01 42 44 40 30.

Printemps Haussmann proposes a guided tour of its rich architectural heritage, including places not opened to the public, a unique occasion to discover the history of French department stores . Register at 01 82 42 50 00.

http://journeesdupatrimoine.culturecommunication.gouv.fr/

 

The Phy-gital Revolution at FT Luxury Summit, Monte-Carlo

On June 5-7th, Monte-Carlo hosted the 11th FT Business of Luxury Summit, dealing with a hot topic in the industry : “Technology, Legacy and the New Consumer”. Issues discussed by top luxury managers encompassed: the changes in manufacturing processes due to new technologies, the orchestration of the luxury omnichannel experience, and the preservation of brand identity in a social media era. For those who could not attend the summit, the Financial Times shares videos on YouTube.

For further discussion, please have a look at this video “The Phy-gital Revolution: What is Luxury Doing Online to Woo its Consumers?” with Martin Bartle (Global Communications and Ecommerce Director, Agent Provocateur), Ulric Jerome (Partner & Chief Operating Officer, MATCHESFASHION.COM), Chris Morton (Founder & CEO, Lyst) and Nathalie Remy (Partner, McKinsey & Company) at: