EDHEC Master Class: MMPJ on Brand Ambassadors

On March 23rd on Lille campus, Quentin Meurisse, ‎Global Market Activation Director at Martell Mumm Perrier-Jouët (Pernod Ricard) and Nicolas Benadon, ‎Asia Regional Manager – Martell Cognac gave a passionate talk on the role of Brand Ambassador in Wine and Spirits. This talk was illustrated in the field by Blandine Cochard, Martell Brand Ambassador in Singapore on April 21st. A cross-cultural comparison of Cognac consumption patterns in Heritage countries and in Asia.

Have a look at Martell Cognac channel and be responsible! Connaisseurs drink with moderation.

https://www.youtube.com/user/Martell/videos

 

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

Volez Voguez Voyagez with Louis Vuitton

During the Holiday Season in Paris, do not miss the Louis Vuitton exhibition in Grand Palais and learn about the French art of traveling. The journey starts in the first room with a trunk inventoried in the 1906 reference catalogue. The elements which have become iconic were already featured: ribbon tufting, canvas and locks. Louis Vuitton’s innovations follow the evolution of travel, the rise of yachting, the invention of automobile, the aviation odyssey, and the improved comfort of trains. In the last room, craftsmen demonstrate Louis Vuitton’s savoir-faire and attention to details. The experience is enhanced if you travel with the exhibition mobile app. If you want to learn what is luxury, a must-go.

What is a luxury retail experience?

In the stores, we wish to create a luxmosphere. Online, many brands find difficult replicating the luxury experience orchestrated in the store.

Yet, what do you consider a “luxury experience”? Comment and shade lights on an experience created by a luxury brand.

EDHEC Master Class: Travel Retail at Nice Côte d’Azur Airport with Arnaud Lescut

On November 12th, Arnaud Lescut, Travel Retail Manager at Nice Côte d’Azur Airport gave a master class on the future of Travel Retail. Nice Côte d’Azur Airport is the third airport in France for number of travelers, after Paris Charles de Gaulle and Orly.  In 2014, 11.7 million passengers traveled through Nice Airport, 63% being international travelers.

Travel Retail encompasses the commercial activities (duty free and duty paid) conducted in airports, train stations, ferries, and airlines, as well as sales to travelers in high street boutiques and factory outlets. L’Oreal names this business the 6th Continent. It is a business which increases steadily every year by a minimum of 5%. The perspectives for the next 20 years are positive: Forecasts indicate steady growth; also, although the travel retail business is dependent on international travel, it recovered fast from past financial crises and difficult travelling contexts (such as SARS epidemia, swine flu and ash cloud). Fashion, jewelry and watches represent 34% of the travel retail market (in USD), beauty products and fragrances 28%, Wine and Spirit 16%, the rest being Confectionary & Fine Food (8%) and Tobacco (13%).

The strongest Travel Retail channel is the airport channel. Spendings are influenced by improvement in retail space and navigability, offerings targeting key nationalities and point-of-sales marketing by professional retailers and key brands. By May 2016 for terminal 1 and May 2017 for terminal 2, Nice Côte d’Azur airport will have doubled its commercial space. The new positioning strategy promises an “amazing experience” to the traveler, with a Côte d’Azur “sea and sun” twist. Based on Arnaud’s presentation, we know travelers will have a wow effect. Looking forward…

Thank you to Arnaud Lescut, Travel Retail manager, Nice Côte d’Azur Airport for sharing with BBA 4th year students on Travel Retail pespectives.

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

 

De Rigueur: Adrien Deslous-Paoli (Edhec ’15) wins the Fashion Pitch Night

During the 3rd Fashion Tech Week, the entrepreneurial Adrien, Edhec 2015, founder of De Rigueur, a high-end leather accessories company, won the Fashion Pitch Night. The competitive advantages of De Rigueur products: beautifully designed connected objects such as smartphones pouches, hand-made in France in the best craftsmanship tradition (Goyard, Hermès). Aside to their aesthetics, De Rigueur products have a functionality which makes them a must for all men on the go: they serve as wireless external batteries and integrate Wifi connectivity. The first line of products targets men and will be available at La Garçonnière Concept Store (Paris 2e) from November 2015. We shall encourage Adrien and his team to consider the women market also…

Read the interview in Elle October 8th http://www.elle.fr/Mode/Les-news-mode/Autres-news/3-questions-a-Adrien-Deslous-Paoli-le-vainqueur-de-la-Fashion-Pitch-Night

and visit the website De Rigueur http://theconnectedsleeve.by.derigueur.fr/

Deslous-Paoli_Adrien_DeRigueur
Source: Adrien Deslous-Paoli, Edhec 2015

Daum Variations d’Artistes at Espace Dali (Paris XVIIIe)

When in Paris, visit Espace Dali in Montmartre, 11 rue Poulbot, Paris 18e. Until January 3rd 2016, it presents Daum collaborations with famous artists such as Dali, Ben or Arman. First, you will discover a soft watch hanger in pâte de cristal inspired from Dali’s painting Persistence of Memory; Second, Ben’s hand-writing “amour” in red made by Daum in 2012 out of gold and cristal; third… many other beautiful artworks from the Lorraine cristallerie.

Picture: MC Cervellon, Espace Dali
Picture: MC Cervellon, Espace Dali

Kokomo Ailand at Monaco Yacht Show, What else?

Every year since 1991, the Monaco Yacht Show is the occasion to visit around 100 of the most fabulous super yachts ever built in the world. The event is sponsored by Ulysse Nardin, Swiss watch manufacturers since 1846. Among the exhibitors this year, several brands of fine cristal such as Lalique and Baccarat. The ultimate luxury is portrayed on Baccarat’s advertisement below: a table dressed in cristal, on a yacht navigating safely on the sea…

Or else… Kokomo Ailand, the first mobile private island was released at MYS by MIGALOO PRIVATE SUBMERSIBLE YACHTS. Watch the Youtube video embedded below.

Source: MC Cervellon, Fabulous Yachts at MYS,
Source: MC Cervellon, Fabulous Yachts at MYS
Source: MC Cervellon, Ulysse Nardin at Monaco Yacht Show
Source: MC Cervellon, Ulysse Nardin at Monaco Yacht Show
Source: MC Cervellon, Baccarat at MYS
Source: MC Cervellon, Baccarat at MYS