Luxury’s other heritage challenge

“You never actually own a Patek Philippe. You merely take care of it for the next generation.”

This well-known Patek Philippe tag line tells its customers that the brand’s heritage could be part of their own as they bequeath their Patek timepieces to their future generations.

Patek Philippe Generation Ad campaign

One can, of course, buy pre-owned Patek Philippe time pieces from dealers, or at auctions where the brand commands huge prices, which Patek no doubt monitors. The presence of complete documentation, including owner history and service records, adds to the heritage angle, hence the price tag. Patek also supports collectors’ clubs and offers to service any Patek, no matter what its journey to the present owner has been.

Brands such as Vacheron Constantin engage actively with not just the customers, who already own their watches but also those, who aspire to own a Vacheron timepiece one day.

That said, there are brands, who do not really do much for, or with, collectors.

Hermès comes to mind.

While active in developing, protecting and promoting its own brand image, Hermès famously does not support collectors’ clubs. There is still a brisk trade in second-hand Hermès scarves, bags and other artifacts. It is often difficult to verify if these goods are authentic or counterfeit, or even stolen (although the latter may be rarer).

Most established luxury brands’ own stories focus on the brand heritage. It is fascinating — and puzzling — however to see how little luxury brands do to honour (track?) how their customers create a story about these brands, steeping the luxury goods in their own family’s heritage.

This is a missed opportunity.

To create a luxury brand with longevity beyond the next season has to go beyond the brand extolling its own heritage. The stories that live on have to make sense, and be meaningful to those, who own and wear the products created by that brand.

And while everyone can participate in the democratic medium of the web, oral traditions and stories of familial heritage can still help preserve exclusivity for luxury brands, most of whom are still struggling to make up their mind on the matter.

Indeed one has to ask whether the idea of a heritage driven European brand of luxury has economic viability now that most of their growth is coming from Asian countries, many of whom boast a rich heritage going further back than any European brands!

Can lazy — even arrogant — brand marketing as luxury marques, reliant on their European heritage legacy, do now continue?

Don’t mind me though!

I have a simple curiosity.

I am just keen to hear from someone, whose family bought Hermès equestrian gear and riding equipment 300 years ago, and who is still wearing Hermès couture or carrying Hermès bags today.

(Thanks to Barbara Houdayer for the Twitter conversation, that sparked this monograph.)

Respectful design, contemptuous design

Conversations with many friends, who are building communities for social businesses or are in other customer-facing roles, reveal a shared frustration. It appears that community builders and customer facing persons, and designers in a business are singing from different hymn sheets. Often, once the beta or whatever the business deems a shippable version of the product (web, mobile, app or a physical product) has shipped, some sit back thinking the job is done.

Customer feedback, that then comes in, is often sidelined to make good of the already existing technology infrastructure. Worse, it is sometimes disregarded altogether.

As the face of the business, community builders find themselves in a tough spot.

“It is as if we not only fail to care, but that we are actually contemptuous of the customer,” one said to me.

The contempt for the customer shows in the design of the customer experience with the business. From web design, to the product, to packaging and in all other ways the business and the customer interact.

Often the customer cannot find the information she wants, or she cannot find the product she intends to get to know a bit more, or the worst, she cannot really buy your product. And as seen in the case of frustrating clamshell packaging, sometimes she just cannot get to the product!

Why does this happen?

Because not enough attention is paid to understanding the customer’s journey or her desire behind engaging with the business. Insufficient work goes into testing how the customer might feel while trying to do business with the company. Efforts are made to defend the costs already incurred, not to acknowledge that that investment was not producing any returns.

In other words, not nearly enough respect is accorded to the thought that the business wouldn’t exist if it weren’t for the customer.

This is what I call contemptuous design.

Contemptuous design privileges technology and sunk cost over customer journey, experience and engagement. Respectful design, on the other hand, privileges the customer’s desires and experience over everything else, so the business can continue to exist and possibly thrive.

No checklists are required to distinguish contemptuous design from respectful design. As customers, we know how we are being treated when we make first contact with a business.

As business owners, we need to be honest about the conversations we are having or enabling or hearing about our customers. If the customer is seen as an encumbrance, we are squarely in the realm of contemptuous design.

But if we feel the customer’s pain and want to deliver a good experience to her, we are making strides towards respectful design.

It really is that simple.

Men in women’s fashion — the gender imbalance we don’t talk about

A few weeks ago, rumours abounded about Tom Ford possibly returning to Gucci, after Frida Giannini’s departure. While there is no doubting Mr Ford’s all-round creative nous, from couture to perfume and makeup, and film making, it would have been disappointing if he did return to the role. In the event, Ms Giannini was replaced by Alessandro Michele.

The technology industry isn’t the only gender-imbalanced industry in this world. Women’s fashion world redefines the imbalance between the customer base of women, who spend but where value appropriation is disproportionately made by men.

It is men, who overwhelmingly own stakes in, invest in, and lead companies that serve the women’s fashion market. For instance, Richemont, that owns Net-a-Porter, Chloé , Azzedine Alaïa, Van Cleef & Arpels and Cartier amongst others, fields, at the time of writing on March the 8th, 2015, a board consisting of 18 men and one woman! Doing better is Kering (formerly PPR) led by Francois-Henri Pinault with a board of 11 of which 4 are women. Kering owns, to varying degrees fashion brands such as Gucci, Saint Laurent Paris, Stella McCartney, Alexander McQueen, Bottega Veneta amongst others.

Men are also overwhelmingly the creative leads in many of women’s fashion brands. Here is a roll call for the uninitiated — Nicolas Ghesquière at LVMH, Karl Lagerfeld at Chanel and Fendi, Christopher Bailey at Burberry, Alexander Wang at Balenciaga, Hedi Slimane at St Laurent Paris, Jean-Paul Gaultier at the eponymous brand which is fair enough but he was at Hermès 2003-10, Rodolfo Paglialunga at Jil Sander, Alber Elbaz at Lanvin, John Anderson at Loewe, Olivier Rousteing at Balmain, and John Galliano having recently returned with Maison Margiela (he was earlier at Dior).

Which makes it worth celebrating Miuccia Prada at Prada, Donatella Versace at Versace (with Anthony Vaccarello at Versus), the incomparable Vivienne Westwood, Jenna Lyons at J Crew, and Hermès’s 2014 appointee Nadège Vanhee-Cybulski.

The magazines that serve women’s fashion market, Vogue and Harper’s Bazaar to name but two, are owned by corporations – Condé Nast and Hearst respectively – where almost all board directors and senior executives are male. Hearst has one female board director, Condé Nast‘s imbalance is tipped by the presence of Anna Wintour, the well-known industry heavyweight.

In fact only a minuscule 3% of creative directors in advertising, that drives women’s spend, are women. A staggering minority no matter how one looks at it!

I should however point out that mainly British women are in charge of some of the most influential fashion magazines including Glenda Bailey and Justine Picardie at the Harper’s Bazaar respectively in the USA and the UK, and Anna Wintour and Alexandra Shulman at the Vogue respectively in the USA and the UK. Thank goodness also for Vanessa Friedman, Suzy Menkes, Jo Ellison, Christina Binkley who witness, document and report on the fashion industry from the front row and beyond!

So why is it that when we talk of gender imbalance, we get stuck at the technology industry and Silicon Valley?

Why not start at the obvious — where women are spending money but where the value appropriation is overwhelmingly not made by women?

It’s not the pipeline for sure. A good 71% or more of the graduates of Central St Martins, the alma mater of late Alexander McQueen, and a reported 74% of the graduates of London College of Fashion are women. The number is 77% for women students at Parsons The New School for Design.

The industry is also traditionally not seen as no place for women.

But the industry does keep up with the tradition of notable wage gap between men and women, so much that there are no women in the top-20 highest paid executives.

So while we sit in the middle of Paris Fashion Week and mark another International Women’s Day, we ask yet again — what gives?

And more importantly, as we seek that elusive goal of gender equality — can we make it happen?

The theme for #IWD2015
The theme for #IWD2015

 

Craftsmanship in luxury

Craftsmanship is the cornerstone of the luxury goods industry. The obsessive focus on the art, the cultural roots, the societal context and the history not only preserves and enhances the heritage, but also helps tell a unique story and find markets for luxury goods, increasingly in countries far from home.

However as emerging markets not only demand goods as consumers but also slowly develop their own brands in luxury, how does the slow and steady pace of craftsmanship reconcile with the speed of globalisation?

The answer is deceptively simple: the historically well-established brands become evangelists for craftsmanship.

The craftsmanship and long heritage distinguish some of the most coveted luxury marques from the luxury upstarts. Such evangelism manifests variously: from Tod’s commitment to La Scala for the special project titled The Italian Dream, to Bottega Veneta’s opening of Scuola della Pelletteria to train the future generation of master leather craftsmen.

Is this bad news for emerging markets and emerging market brands?

Well, not really.

It does, of course, benefit immensely and strengthen the European luxury brands with a long heritage to showcase. But it also potentially levels the field, somewhat, for emerging markets — notably those with a rich history and creative treasures that are underexplored as sources of inspiration.

Think about what a Chinese brand could do drawing upon the history of the Tang dynasty to create beautiful products!

As some of you know, I am also a co-founder of the British jewellery brand, Livyora.  At Livyora, we created our Overture Collection by drawing upon Mughal Art and Architecture, that can be seen in India’s capital city and surrounding regions. We abstracted a visually stunning artifact of Indian heritage, to create stunning, handcrafted pieces in gold and precious stones. A wonderful story could once again be retold.

Craftsmanship still rules. All that is required is a new lens to look beyond the luxury marques of yore.

Brands and the coattails of success

TAG Heuer congratulates its beautiful rebel – MC Mary Kom into the Semi Finals of the 2012 London Olympics.

The glamorous TAG Heuer Woman shares Mary’s restless and rebellious nature. Like her, she excels at her game, knows how to win, and how to celebrate. Creative, confident, always plugged in, she never stops building on her achievements and pushing herself to be better, but she also knows how to relax and have fun.”

Says the TAG Heuer brand page on Facebook.

This is Mary Kom, who now needs no introduction. Do click on the link to see Ms Kom looking beautiful and resplendent indeed.

Did you do a double take on seeing that photo? If so, join the very large club. To feature as a TAG Heuer ambassador, Mary Kom has to be airbrushed to look like someone she is not. Yes, being adorned and looking gorgeous is a woman’s right and privilege. But when that adornment makes Ms Kom’s appearance and not her performance or character the centre piece, one has to wonder about the O word in brand marketing. Objectification.

Objectification is central to “celebrity endorsement” in brand marketing. Picking a person to represent a brand’s abstract, often fuzzy, promise is the purest form of objectification. It also happens to be, in my view, the epitome of laziness and paucity of creativity in brand marketing. That is how TAG Heuer, that uses film actor Shahrukh Khan as a brand ambassador in India, now thinks Mary Kom is a fit for their brand. Yes, it is ok to take a few moments to get one’s head around what Shahrukh Khan has in common with Mary Kom.

Nor is the post-Olympics upsurge in luxury brands rushing to sign up medal winners – particularly in emerging markets – a compliment to brand managers.

In a mature market, brands sponsor and support promising athletes. When a sponsored athlete succeeds, the brand can stake a legitimate claim to associating with that success. In the UK for instance, RBS has sponsored Andy Murray since he was 13, when he was a relative unknown playing junior level. Like athletes, brand building isn’t an overnight success of TAGging along to someone else’s, but actually investing in it. But is that what is happening in the emerging markets (emphasis on markets)?

Mary Kom wasn’t entirely an unknown before the Olympics. Even if women’s boxing isn’t your thing, heck, the Intelligent Magazine did a superb piece on her stardom before the Olympics. Did the five-times World Champion Mery Kom not strike TAG as a woman who “excels at her game, knows how to win“? Or was her life story not an example of her “pushing herself to be better“? Her close shave with poverty can’t have been much about how to “have fun” but TAG could have eased all that by promising her support before she became famous. Instead of sponsoring her when she needed help, the brand now wants to ride on the coattails of her success.

Of course, emerging markets are less about brand building and all about reaping the rewards from the “markets” overnight. Aren’t they? Investment? What investment?