The secret codes of luxury by dfgh4bnmu


									                                                Survey for the
                                                Milan Fashion Global Summit

                                                Milan, 27 November 2007


Over 40 interviews
with open
questions to luxury
opinion leaders, on
their personal and

                      What do you think luxury will be in the future?

                      How will it be communicated?

                      How and where will it be produced?

                      How will it be distributed, how will retail be structured in the future?

  Luxury is, and will increasingly be, having time for
  ourselves, time to spend in doing things that we like
  and make us feel good

• Research and appreciation of          • Tendency and availability to
  products and services, mainly           products and services with high
  high-tech, that allow time saving       emotional contents, that create
                                          well-being experiences and
                                          fulfil dreams

                                         New symbols of luxury are time,
To have at disposal facilities,          space, personal well-being, living
advantages or tools that allow a         and using a certain asset of
quicker achievement of tasks             relations
Free time as a goal to express our       A luxury consumer is more
other self                               attracted to feelings than to
                                         products. Needs give way to


                                                         • Scouting of unique products
                                                           and exclusive services that
   • Possession of goods and                               are only appreciated by
     enjoyment of services that                            people of same cultural level
     express a status by price                             or lifestyle
     and brand

                                                     …to the come back of exclusive/èlite
     From shown off/democratic luxury…
     • “Aspirational” for many people                • “Absolute” for few people only
     • Easy to identify and recognise                • Known only to whom is already familiar
     • “Loud/paraded”                                  with it
                                                     • “Plain, whispered, discrete”
     More and more rich consumers treat               Luxury doesn’t mean expensive; luxury is
      themselves to luxuries                          all what is rare, or better less renowned
      Lots of brands have democratized the price      Luxury is a bottle of first-press olive oil with
      of many loss leaders                            your name on the label, given by a friend
                                                      who produces it after hand-picking the
                                                      olives one by one

     The next luxury will be enjoyed and searched for through
     the filter of culture that will lead a research for something
     unique, exclusive, shared by few people

     Real luxury is to go back to study to appreciate beauty,
     to understand what goes on, to have deep and smart                      Luxury has to
                                                                               Surprise, intrigue,
     A luxury experience is to read a poem by William Blake                    reward
     with someone who understands it                                           Make life easier, also by
     Luxury is to choose a responsible, environment-                           providing a “more
     friendly lifestyle                                                        achievable” balance
                                                                               between working hours
     A luxury consumer knows exactly what he wants, he                         and self-time
     knows he can afford it and has very high expectations.
     He’s a frightful judge!

     The culture of luxury has evolved: we now have “cross
     consumers” who can access high quality in all sectors,
     but look for plainness, familiarity and accessibility to
     services and technologies

!                                                        "                                                  5

                                                                                   Artists and craftsmen,
    The leaders                                                                    contemporary or from
                                                          A few fashion            the past
                                                          and design
                        Many fashion                      brands
                        and design

                                                                                …to unique items (or
    The forms            From “masstige”…             …to limited edition…

                                                                                   Worshippers of
    Target                   Global market                   Niche market           custom-made,
    consumers                                                                      exclusive luxury

    Brand logo            Obvious                      Visible                  (Nearly) invisible
     #      $                                            #

                                                                   “Secret codes” communication:
    Contents       Recurring and homologated                       A few words suggest complex
                   communication:                                  experiences, to recall a dream,
                   Images and formats are very                     keeping an aura of mistery and
                   similar to one another; they give               exclusivity around the
                   shape to luxury with no highlight               product/service
                   on the brand distinctive features

    Forms          Indirect                                        Direct
    Media          •   Press, including sectorial                  • Word of mouth, “analogic and digital”
                   •   Bill-board                                  • Focused PR, preferably one-to-one
                   •   Flagship store                              • Events upon invitation, where every
                   •   Internet                                      detail recalls the brand related
                                                                   • Exclusive clubs, even via web

                                                                    All messages are delivered in a direct,
                                                                    yet discreet way; they want to push
                                                                    the addressees towards discovering
                                                                    something that they don’t know yet
                                                                    Luxury tribes are well identified,
                                                                    though direct communication is still a
                                                                    bit awkward and claims are not

%              &                          '         "                                                           7

                   • The production of luxury goods is trying      • …though exclusive luxury searches for
                     and compromise with relocation…                 “custom made”, favouring products
                                                                     with a high content of design/style
                   • …whereas conceiving and projecting              and “handmade”.
                     will still take place in Western
                     Countries, as long as the industry            • Exclusive luxury praises creations
                     invests in research/training and keeps          with a “tailored made” taste
                     the manufacture of prototypes closeby

                       A good example for this are Prada           I treat myself to the luxury of having
                       America’s Cup sneakers – they are made         everything made in Italy, by one single
                       in Viet Nam, though that is not an issue       factory where all is handmade. My
                       Only a creative can turn a defect into an      customers are fascinated by the
                       effect                                         handicraft and are happy to pay more

                                   Fashion luxury will                         Elite luxury will be
                                   be made in Gucci,                           made in Italy or in
                                   Prada, Armani, …                                 Tom Ford
(                               )


                                                                       India                   • Made in Italy/in France will mantain
                                                                                                 its high positioning, also in the
                             China                                                               future because it is based on
                                                                                                 values and culture that are deep-
                                               • It seems like India has a great
                                                                                                 rooted in history
                                                 potential, it has some kind of
                                                 “natural gift” for luxury                       The fascinating and unbeaten
     Even though China leads just                                                                element of european production
      about the whole production                                                                 is its image as history, picture,
                                                 India is very favoured: it is                   private scene
      chain of some luxury sectors, it
                                                 spiritual yet colorful,                         There is a shop in Paris that has
      still has to achieve a stronger
                                                 democratic, technological but                   been making hats since 1700.
      perception of the Country
                                                 also naive and makes you                        Who can compete with that?
       The perception of China is still          dream                                           Italy, with its variety and
       blurry. People think: maybe this          With its colours and traditions,                tradition, will keep being an
       product is not what it claims to          India is the cradle where the                   unchallenged factory of symbols
       be                                        next luxury will have the                       and experiences
                                                 chance to grow


    Protected areas                          Shopping areas                                    New urban areas



                                                                   st o



                                                                                                                   ea m


                                                                                                                 ar nte











                                 Getting off the walls                    Breaking of architectural barriers

    Increasing exclusion of architectural barriers…
      - To spread the access points to distribution
      - To support and go along the evolution of the luxury experience, from mono to
        multy sensory, instructive and even therapeutic

    • …till the creation of “new cities” in the cities
      - Result of innovative urban projecting (redevelopement in the West, developement of
        entire areas in the East)
      - Interpretation of a contemporary lifestyle, that includes luxury (ex.: Milano Santa
        Giulia, Roma Eur, The Bund in Shangai, ...)
!         +                             ,

    • Guides of luxury and its travellers follow travelling and purchasing paths that are determined by the same
      standards of style and taste, looking for customized and exclusive luxury, even concealed one

    • The next retail welcomes luxury connoisseurs:

     - In spaces that suit sociability and conviviality, not always visible to the majority
       of people

     - With qualified staff, “expert” in the matter, that guides, rewards and assists
       in all steps of purchase and post-selling

     The global village of luxury is a territorial over-map where the focal points are hotels, airports, restaurants,
     art galleries, department stores, brand shops,…
     Customers must feel cuddled, environment and staff help them relax
     During lunchbreak, my clients have lunch with me in the showroom, where we have a kitchenette
     A piece of jewlery is to be recounted, touched, worn even before being bought. I sell dreams and feelings,
     joys rather than jewels


      Perceived benefits                                                                        Procedures

       Paths of cultural                    Expert clients are web users that
       (in)formation, aimed to value        increasingly want to know what is
       the intangible elements and          exclusivity, what techniques, materials           • Showcase-website
       nurture the dream                    and ideas… justify the price gap                  • E-luxury portals

      • Availability of information and     Saving of physical, mental and
        products in real-time; they         emotional power                                   • On-line selling on
        cross territorial and time                                                                      •
                                                                                                mono brand sites
        bonds to access shopping                                                                and/or on market

      • Union points for a “global          The use of limited-access websites
        élite” that shares tastes and       nurtures the dream. Once in,                      • "Club" accessible
        language                            everything must be consistent with the              upon invitation
                                            brand lifestyle

                                                                                               Building of an e-
                                                                                                luxury “global
-                                                                                                         "

                                                         • The virtuous path of “absolute” luxury companies

                                                           - Inexhaustible tension to an excellence of creativity, also
                                                             through a cross-cultural research
        • Many companies crowd the                         - Care for the product Heritage, supporting handicraft and
          “aspirational” luxury market,                      “tailored-made” features of “hand made”, “custom made”
          whereas a few players seem to
          be also investing in the                         - The management of media aims to the excellence in
          “absolute” luxury of “small                        service, also based on a deep knowledge of consumers
                                                           - Creation of new procedures and contents for an “analogic
        • Is it really necessary to “invest                  and virtual” communication, whose codes and
          as for a thousand pieces                           language are suitable for the transmission of messages
          production, to launch a limited                    that are attractive and consistent with wishes and culture
          edition only”?                                     of the next luxury

                                                           - Developement of a multi-sensorial offer that generates
                                                             cross experiences and may include various luxury brands

        $          .
                   ..                                                                                                           13

Adelaide Acerbi Astori   Driade                                         Tullio Marani         Henry Beguelin
Pina Amarelli            Amarelli                                       Antonio Marras        Circolo Marras
Paolo Apice              Università degli Studi di Milano-Bicocca       Antonella Minetto     Edizioni Abitare Segesta
                                                                        Massimo Neri          Aoristò - Ristorante sopra il Globo
Antonio Baucina          Lanza&Baucina
Susanna Bellandi         Future Brand Italia                            Davide Paolini        Gastronauta
Rossella Bisazza         Bisazza                                        Sandro Pecorelli      Townhouse Hotel Milano
Michele Bonan            Studio Arch. Michele Bonan                     Amelia Perna          Malo
                                                                        Paola Piacenza        Turin Hotels International
Gianmaria Buccellati     Gianmaria Buccellati                           Marcello Piccardo     Hall-41
Claudio Ceccherelli      Milan Park Hyatt Hotel                         Giovanna Poloni       Estée Lauder
Bruno Ceccuzzi           Dino Ceccuzzi                                  Marco Ravasi          Dom Pérignon Italia
Paolo Colonna            Permira                                        Marco Regni           Studio Notarile Regni
Paola Durante            Merril Lynch Inv. Bank.                        Ferruccio Rossi       Riva Spa – Ferretti Group Company
Giusi Ferré
Fabio Finassi            Grazia Neri                                    Marco Roveda          Lifegate
Ron Frash                Saks Fifth Avenue                              Simona Salvini        Studio 75
Fabio Fusco              Confezioni Moda Italiana                       Giorgio Sogari        SG Design
Michela Gattermayer      Velvet                                         Elisabetta Tangorra   McCann - Luxury Box
Paolo Gerani             Gilmar                                         Eliana Trentalancia   Art & Co
Ralph Kern               Vertu                                          Marco Valente         Valente Gioielli
Fabio Leonicini          Loro Piana                                     Patricia Viel         Antonio Citterio & Partners
Michael Levie            CitizenM Hotel
                                                                        Bruno Zaros           Actea Marketing
                                                                        Luigi Zunino          Risanamento
!   /         &                                                                                               14

    • Value Partners operates through two companies, Value Partners Management Consulting and
      Value Team IT Consulting & Solutions, with nearly 50 partners and 3.000 professionals of 25
      nationalities, of which 750 operate in foreign Countries. Value Partners Management Consulting,
      established in 1993, has built its sound international reputation by carrying out projects in over 40
      Countries. Its mission is to support multinational companies top management in change and
      globalisation. Clients are served on the main issues for a company: portfolio and business
      strategy, change management, product portfolio, operational improvement programmes. Value
      Partners’ offices are in Italy, in Rome and Milan, and in London, Helsinki, Sao Paolo, Buenos
      Aires, Mumbai, Shanghai, Beijing, Singapore, Hong Kong and Sydney.

    • The “Next Luxury” survey for the Milano Fashion Global Summit 2007 was carried out by Cristina
      Lonati, in cooperation with Tina Guiducci.


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