Full Description
Why do some luxury companies remain resilient through times of change, while others do not? The reason is that these companies have unique skills to diversify their revenue generation by being ambidextrous. Luxury companies today cannot depend on their reputation or their creativity alone to remain resilient, rather they require the ability to be ambidextrous - to explore new trajectories for future growth and exploiting their iconic values. In past decades, the industry has shifted from product to customer centric and forced companies to adopt new strategies and approaches to succeed. This includes the adoption of digital platforms such as ecommerce, social media and mobile enabled tools to continually elevate customer experience. In addition, new business models have emerged to address growing pains, particularly in inventory issues, over manufacturing and sustainability. Brands today are forced to adopt evolution through innovation that is anchored by new values without compromising their DNA. Based on in-depth research and interviews with CEOs from leading luxury companies, Lojacono and Pan show how companies can hedge their risks and remain resilient in times of change.
Contents
Introduction
Part One - Was the luxury industry built on resilience?
1) Fundamentals of the Luxury industries
1.1) Traditional Business Model Structures in their respective industries
1.2) From Family Businesses to Major Conglomerate
1.3) Power structure in luxury companies (creative directors vs. CEOs, Entrepreneurs vs. Shareholders, CEOs vs. Chairman, role of private equity)
2) Dilemmas in the luxury Industry
2.1) The age-old debate: Heritage vs. Modernity
2.2) Innovation vs. Tradition
2.3) Craftmanship and Industrialization
2.4) Growth in the business of rarity vs. accessibility (e.g. Ferrari Case)
2.5) Timelessness and Contemporary
2.6) An inclusive approach with an exclusive experience (e.g. Gucci Case)
3) The old world vs. new world (Matured vs. emerging)
3.1) Europe - the epicenter of luxury
3.2) United States - The big bang of luxury consumption
3.3) The Middle East - A different kind of consumer
3.4) Japan - How companies can learn from the maturing consumers
3.5) China becoming more local
3.6) The up and coming emerging markets
4) Country of Origin
4.1) The value of where it is made
4.2) Chasing quality and prestige
4.3) Sourcing the best materials and savior-fare (e.g. sourced from Mongolia, Made in Italy or sourced from Italy, made in Morocco)
4.4) Evolution of Country of Origin - Can brand equity be more important? (e.g: Louis Vuitton's Made in the USA)
Part Two - The inevitable evolution to remain resilient
1) Luxury is a crisis proof industry - or is it?
1.1) Nimbleness to short term strategy in a state of emergency
1.2) Flexible long-term strategies that adapt to change
1.3) The v-curve / revenge buying
1.4) New types of human capital
2) New business models of the 21st century
2.1) Omni-channel
2.2) Pre-order
2.3) Merchandising
2.4) Digitalization
2.5) Personalized experiences
2.6) Gamification
2.7) Capturing the moment (a new form of travel experience retailing)
3) Ambidexterity
3.1) Essential consideration in the fast-changing world
3.2) Differences across country and adaptation strategy
3.3) Embracing new codes
3.4) New organizational structures (splitting the roles and responsibilities)
3.5) Ambidexterity: How to excel in all aspects
4) Values that guide the change
4.1) Culture
4.2) Patriotism
4.3) Brand meaning
4.4) Sustainability / Ethics
4.5) Inclusivity
4.6) Empowerment (women and creativity)
5) Trading up and trading down
5.1) Premiumization in the luxury industry
5.2) Shifting your product offering
5.3) A focus on accessories and other services
Part Three - Creating a path towards resilience
1) Innovation that drives preparedness
1.1) Forecasting the market
1.2) The need to be proactive rather than reactive
1.3) Dominating the market through innovation (how brands who innovate can dominate the market)
2) Multi-channel and Omni-channel: CRM touchpoints at every level
2.1) The importance of customer engagement
2.2) Moving past data, and going back to the basics
2.3) Making the customer the focal point
2.4) Capturing value at every point
3) Cost saving to market seeking: Re-organizing the supply chain
3.1) Off-shoring, back-shoring &...
3.2) A supply chain that complements your business model
4) Transparency & Sustainability
4.1) Starting from the beginning - the start of your production process is the key to driver in creating a sustainable business
4.2) Sustainability is no longer a buzzword, it is essential
4.3) Why sustainability is not enough
4.4) Incorporating sustainability into the financial results
4.5) Blockchain as a new frontier
5) How it all comes together: Resilience in a time of crisis
