IN VINO VERITAS: Luxury’s slowdown, the rise of contemporary labels and the challenges of brand-building in an overstuffed market dominated the conversation at a roundtable in London where guests included female executives from companies including Richemont, Chanel and the Estée Lauder Cos.
Cohosted in London by Heidrick & Struggles’ Caroline Pill, global sector leader for luxury, and Charlotte Reeve, principal and member of the global luxury practice, the event was the first in a series called The Front Row, and the aim was to discuss some of the industry’s most pressing topics.
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With all that talent in one place, the sparks were flying as guests gathered for dinner downstairs at Maison François, a hot spot for deal-making in central London, to discuss the challenges of volume (too much), growth (a struggle) and brand authenticity (more needed).
They lamented the over-distribution of clothing and accessories, arguing that brands need to make less product and stop chasing growth just for the sake of it. “Was luxury even meant to be macro?” wondered one, while another opined that the market was so overcrowded that “growth is no longer guaranteed.”
Brands also need to offer a clear point of view, tout their points of difference, and find new ways of telling their origin stories and reinforcing their purpose and values. As Leonard Lauder always said, “Just when you have had enough of hearing about something, someone is hearing it for the first time.”
Brands and retailers also need to pay more attention to the customer, who remains king. That means walking onto the shop floor, engaging with the customer and looking at what they are buying, said one guest, adding that shopkeepers also need to take risks, trust their instincts and not rely on data to give them all the answers.
There’s also the issue of the next generation, which one woman said may not be as turned on by luxury as her elders. “What is aspirational for the next generation, especially in a time of economic restraint?” she said.
Guests also talked about the blurring lines between contemporary and luxury brands, in the mind of consumers and company owners.
HR executives in the room said it’s becoming more common to search for luxury managers outside the industry, and pluck the CEOs of contemporary brands from the luxury sphere.
Pill said she had long wanted to convene “female leaders from across geographies and the fashion, luxury, beauty and lifestyle sectors” and listen to them share their perspectives “on the changing realities of our industry.”
There is more to come. Pill and Reeve are planning to host a similar event in Paris later this year, before moving on to New York and Milan.