Secteur Luxury Products Eurogroup Consulting
French luxury-goods companies, often known as ‘Maisons’, have an outstanding reputation for artisanship that is linked to France’s global prestige: history, culture, art of living, cuisine, style, etc. Combined with creativity, design and perceived product quality, this capital makes French brands highly successful in both developed and emergent nations (25% of world market share). Indeed, the luxury-goods clientele is more concerned with brand image and creativity than prices.
Trendsetting and productive, luxury-goods companies constantly adjudicate between artisanship and industrialisation. They aim to achieve outstanding levels of quality and originality while managing increased production as industrially as possible to meet the rise in world demand.
These high standards and creativity are also reflected in the distribution and sale of luxury products: selective distribution (networks of boutiques, corner stores) and innovative distribution (pop-up stores, micro-stores, digital systems, temporary displays related to collections or specific events, etc.), the boom in e-commerce (boutiques devoted to the brand’s skills and creativity with varying levels of maturity of online commerce). Luxury brands continually adapt their models to meet their clients’ expectations. Private salons, personal shoppers, private circles, etc. are methods used to make the client feel ‘unique’.
In this sector more than any other, creatives, designers, artisans and sales assistants, along with various departments (HR, IS, Purchasing, etc.), all mobilize to deliver a level of quality and appeal that matches the brand promise: a general promise that induces a wish to purchase a luxury product or service.
This quest for excellence is reflected within the companies. As in many sectors, there is a need to address the question of symmetry of attention (look after your staff and they will look after your customers). Adjudicating between artisan and industrial processes is an everyday task: conflict between industrialisation and the made-to-measure, high-quality spirit; conflict between industrial processes and individual expectations; conflict between internal and client deadlines.
Lastly, the luxury-goods sector faces other development issues.
First of all, the question of skills transfers: the perpetuation of occupations and training, and consequently the qualification of the sector’s professionals and artisans (embroiderers, lace makers, goldsmiths, etc.), raise questions about the future of luxury trades.
Moreover, the choice of production sites – in France or abroad – must take into account occupational, financial and commercial considerations (for instance, what impact does the ‘Made in France’ label have on sales?).
Increasingly strong Asian competition (the growing maturity and demands of the clientele and its expectations, local luxury brands, etc.) in an evolving market (impact of the anti-corruption campaign on results in China, for example) require continual adaptation.
Associated margins and profitability are also a constant concern.
Confronted by the vast extent of counterfeiting worldwide, the sector’s players must meet the challenge of legally protecting products and brands.
The assimilation of sustainable-development considerations remains an issue.
Finally, luxury-goods companies are permanently striving for excellence in their customer relations, whatever the channel.
L'offre Eurogroup Consulting - Luxury Products Eurogroup Consulting
Strategy and corporate developments
- Executing the corporate strategy plan and rendering its deployment secure
- Anticipating changes in occupations and skills by means of predictive jobs and skills management, company-wide or with regard to a particular trade
- Implementing a Lean Manufacturing approach
- Optimising organisations and operational methods in every area of the company to support growth in the sector: Information Systems, Management Control, Human Resources, Communication, etc.
- Providing each client with an unrivalled relational experience, both online and in stores
- Planning channel complementarity to develop overall sales performance and optimising channel combinations to ensure a consistent, appealing client environment
- Acquiring greater knowledge of clients client behaviour (sales records, use of social networks, etc.)
- Reorganizing both headquarters and points of sale to adapt to increasing transversality
- Creating a brand’s 3.0 strategy based on customer experience, brand reputation and excellence
- Developing a brand-consistent service offer for online purchases
- Working on customisation for individual clients: new tools to create personalised products (3D printers, connected tools, new experiences)
New in-store experiences
- Capitalising on digital technologies
- Developing new services to enhance the customer experience
- Reviewing store theatricalisation
Team mobilization and management
- Incorporating commerce 3.0 culture in the behaviour of sales assistants
- Providing the sales teams with support to ensure that they are the brand’s best ambassadors to clients (potential and values of the brand, specific natures of collections, assets, etc.)