ANSWERS FOURTH MODULE INSIDE LVMH CERTIFICATE MAY 2024, Prove d'esame di Brand Management

Scarica ANSWERS FOURTH MODULE INSIDE LVMH CERTIFICATE MAY 2024 e più Prove d'esame in PDF di Brand Management solo su Docsity! 4th module INSIDE LVMH Certificate 11/6/24 Retail and Customer Experience You are entering the world of Retail & Customer Experience A cornerstone of Luxury Luxury Retail: Today and tomorrow Introduction to key changes and challenges impacting Retail at Sephora and in the Luxury Industry. Here, they come together to discuss Retail and the Customer Experiences of tomorrow. Over the past few years, we have seen extraordinary changes in Retail. Can you describe this evolution? Sandrine: The nature of business is to be in constant evolution, and this applies to Luxury Retail too. Over the last few years, we have moved from a traditional model — with few stores in a limited number of cities in the world, which promoted scarcity and exclusivity, and was reserved for the few privileged people who had physical access to those stores — to a new global and omnichannel model, which has to cater to the diAerent needs, expectations and attitudes of new segments of consumers (traditional vs non traditional Luxury shoppers, mature versus emerging markets, Millennials, Gen Z, etc). Luxury has to evolve and catch up with trends. Amazon, although not a direct competitor for Luxury, has had a major influence on retail because it has accustomed people to expect convenience and set new service standards. Today, people are increasingly educated, informed, and sophisticated. They want their consumption to be meaningful and consistent with their values and identity. They want to connect and build deeper, more trustful relationships with brands and their ecosystems. To stay relevant, brands have to adapt and become more authentic and transparent. Joan: That’s right. E-commerce has definitely become a more integral part of retail business overall. In fact, it has changed the retail trajectory in a lot of ways, by expediting the need for us to set up new ways of working in the retail space. Omnichannel is oAering new experiences and new services, like payment options, online pickup in store or shopping directly on social. The clients’ time is so valuable now that they are the ones choosing when and how they shop with us, so it’s more important now than ever for us to meet them where they are, where they go to find inspiration, and even where they socialize. Some years after the pandemic, what client behavior will remain? Joan: During the pandemic, we had to temporarily close all of our stores to ensure the health and safety of our entire community. But, thankfully for us, we had a strong engagement on our dotcom channel, which we strongly invested in long before the pandemic even started. And investing in dotcom, customer support centers and our supply chain really helped us to ensure that we have the right infrastructure in place to continue to be successful even in the most challenging times - the period when stores were closed reinforced this. During these times, Sephora flexed and accelerated new innovation and creativity to continue providing for our clients’ needs. We launched partnerships like Instagram Checkout and Instacart, beauty-retail firsts; oAered a new flexible payment option for our clients with Klarna; and accelerated the launch of Buy Online Pick-Up In-Store. We looked at beauty overall, and we listened and learned from our clients because they not only missed it, they craved the retail experience, and we knew we had to find ways to continue meaningfully engaging with them. Sandrine: Yes. Covid has been a huge trend accelerator for e-commerce. Overnight everything had to be online. Necessity is the mother of invention and some retailers, like Sephora, took this opportunity to innovate with services that would bring more convenience, choice, curation, and value to their clients. The pandemic also highlighted people's fundamental need for social relationships and human contact. In my opinion, Luxury brands are particularly well positioned to provide a retail experience with a human touch. Creating meaningful social experiences is a huge opportunity for retail, both in store and online: brands that master the art of building strong relationships with their increasingly diverse audience will enjoy more loyal clients, positive word of mouth, and increased sales. How do new customer expectations impact retail? Joan: Meeting customers where they want to be inspired has totally changed. Before they would look at things online, then maybe go into a store to find what they need. And, we know our clients like to shop with us in a variety of ways. But today, their connection points need to be more holistic - 360 even – which means we need to be where they socialize, where they run their errands and where they work. We need to listen and understand them to personalize their needs. Sandrine: That’s absolutely right. Consumers expect customization but this can be complex to deliver at scale. Many more demands are placed on brands today. Consumers choose brands on their values, on the way they treat their employees and on the environment. Tomorrow’s brands will have to be more inclusive because customers want brands that take care of them, include them in their brand community or ecosystem. This also benefits brands, because it means they can reach out to a broader variety of customers. What’s the impact of digitalization in Retail? Sandrine: Digitalization is probably one of the most significant transformations of retail today. It aAects all aspects of the business: forms of commerce, purchasing processes, reach and accessibility, new communications channels, new forms of pricing and distribution, etc. In this framework, the C stands for Customized, the R for Relevant, the I for Involving, the M for Memorable, and the E is for Elevating. Five letters for five characteristics which are, I believe, key success factors for experiences. Now let me explain each of them. First, let’s look at the feature “Customized” What is meant here is that experience creation requires acknowledging the value of each customer. In other words, experiences require a segmentation based on clients’ value to the brand. Clients’ value, of course, has to do with the customer's average spending. Sephora, for instance would invite their “gold” clients to their “gold” parties, and Krug, invites exclusive clients to memorable expeditions. But increasingly, it is not only about spending. It is also about the influence of the customers as well. Finally, experience customization is about fitting the experience to the identified client segment: whether by adapting a same experience concept to various segments or by creating diverse experiences. What about “Relevant”? Experiences require proprietary inspiration, brand specificity. Luxury brands must leverage meaningful iconic elements in the experience and find opportunities to express brand uniqueness within the experience. For instance, Parfums Christian Dior uses the love chain to express the essence of the Maison in the perfume category and Land Rover will use an adventure novel in a story called “The Vanishing Game” to revamp the spirit of adventure of the brand in the customers’ imagination. Then, there is “Involving” Experiences also have to be “Involving”: they should engage customers. It is a H2H (human-to-human interaction), with staA members, and increasingly with bots as Artificial Intelligence develops. Experiences should involve the brand in customers’ behaviour. For instance, Louis Vuitton uses its journey heritage to enrich the customer experience with traveling, encouraging customers to travel in the “Louis Vuitton way” through travel guide books. Experiences are of course also shared by clients on social networks, increasingly organized by the brands themselves in multiple categories from personal goods to cars to hospitality. What about “Memorable”? Behavioral economics research delineates our Experiencing self from our Remembering self. Where “experiencing” is about each moment, whereas “remembering” is about the whole. Of course, our remembering self is the decision- maker, not the experiencing self. As a result, brands should focus on designing memories, not on designing experiences. For this, it is essential to consider psychological biases of our memory, namely the memory bias for more emotional events (peaks are memorable) and the recency bias (the end is memorable). Considering the recency bias, the purchase experience should never stop at the payment of the purchased items. Instead, there should be an enjoyable experience following this necessary step to leave the client with an elevating feeling. This leads me to the last factor I identified, experiences should be “Elevating” Experience should take customers out of their ordinary, they should sublimate the product or the Maison, immerse the client within the brand universe, feature products in an exceptional context. For instance, Veuve Clicquot at Hotel du Marc in Reims. Experience should also “educate” the customers, bring them interesting content so that they get out more knowledgeable about the Maison and its heritage. Dior explains the origin of the rose de Granville in an experiential manner. In conclusion, this “CRIME” framework should help brands keep their customers delighted and addicted. As the experiential dimension is increasingly valued by customers, experience designers will become critical to building success beyond product artistry. Your immersion into Retail and Customer Experience at LVMH Deep dive into this strategic topic. Introduction to Retail at LVMH Main areas of focus OAering our customers the best service and building a long-lasting relationship, showcasing our products and our savoir-faire, Retail is definitely key at LVMH. Let's discover with Valerie von Ferstel, Retail Talent Development Director at LVMH how Retail is paramount to the Group’s business evolution, and why talents play a key role in Retail transformation. Retail at LVMH: a talent focused strategy People make the dicerence! We saw with Valerie von Ferstel, Retail Talent Development Director at LVMH, that a key focus for Retail is to rethink the Retail employee experience thanks to committed and passionate teams, and invest in targeted training at all levels of Retail. The THINK Retail program is a selective internal development program, curated for each individual talent, and geared towards those leading the most complex-sized stores across all of the Group’s product categories. Comprised of a mixture of in-person and digital sessions, combining individual coaching sessions, small group and large plenary sessions with keynote speakers from the Group and Maisons, this program aims to inspire them by providing exposure to diverse Retail perspectives, challenge their leadership skills, connect them with peers beyond their Maisons, and support their present and future ambitions. Since the launch of THINK Retail in 2021, 150+ store leaders across Europe, Middle East, China, and Americas are proudly engaged in this development program, with ambitious plans to expand in the coming years. Part 1: Voices of Retail Embark on a journey featuring LVMH leaders in Retail. Managing a flagship store at Sephora "Running a small company" Have you ever wondered what an iconic store's Director job looks like in the Beauty Retail Industry? Let's hear from Sandrine Platel, Director of the Sephora flagship store on the Champs-Elysées in Paris, what it is like to manage one of the main stores of the Maison, and understand her exceptional work environment where teams are at the heart of Sephora's success. Store management at Christian Dior Couture The day-to-day of a retail talent in Fashion. What it is like to work in the Fashion Retail? Wayne Zhang, today Boutique Manager at Christian Dior Couture in China, shares his thoughts on what makes Fashion Retail such a challenging and fascinating domain. Leading Retail teams at LOEWE Team at the heart of Retail Let's discover now the job and the main responsibilities of a Retail Director with Nicholas Baty, who is leading Retail at Loewe in North America. Watch this video and learn about the dicerent teams that contribute to the success of Loewe as well as a specific focus on Storytelling at the heart of memorable customer experiences. Voices of Retail Kickstart your career in Retail Last but not least, listen to a panel of LVMH Retail Talents to learn about the skills required to suceed in Retail positions. The Human Factor in Retail The importance of Retail Teams in such a hyper-connected world. Before closing this part about Retail talents, Valérie von Ferstel, Global Retail Talent Development at LVMH, talks about the growing importance of the Human Factor within the sphere of Luxury Retail, as well as the key competencies to succeed in this function. Part 2 Retail at LVMH: Best-in-class customer experiences The floor is yours: experiment with your own customer experience 1. What are your key insights from your experience regarding the importance of an Omnichannel Client Journey (website + physical store). What did you like? 2. What would you like to have experienced? What was missing? 3. How might sales staA diAerentiate their approach to customers to provide an exceptional client experience? Part 2.1 Customer Engagement Global/Local customer experiences “Retail is a magic world crafted by people for people.” Florent, please introduce yourself. My name is Florent Zhang, I was born and raised in China, where I had my first professional experience in medical industry for 7 years before joining the LVMH Group in 2009. Since then, I have been fortunate enough to work for 3 beautiful Maisons – Louis Vuitton, Bulgari, and Moët Hennessy, in 3 diAerent countries - China, France, as well as Italy. Throughout the years I have had 9 diAerent positions, from Store Manager, Private Client Relations, to Retail Marketing, Business and Client Development. Today, I work as General Manager in retail for Moët Hennessy Diageo China. What is your role as General Manager in Retail and what are your current challenges? My role is to establish retail as a new direct-to-consumer channel in China, and to build a retail store network across the country to amplify our brand image and recruit more customers. Furthermore, more strategically, my role is to contribute to shaping the mindset of the whole company to be even more client-centric. As my position is a newly created one, there is a lot of infrastructure which has to be set up, a team must be developed, and lastly, synergies among diAerent channels must be created. Even though there are challenges, there are just as many opportunities too. It is very exciting to build a whole retail journey from the ground up at Moët Hennessy Diageo. In your opinion, what is the key pillar of retail? Retail is about people. It is mostly about the human connections between clients and Maisons ambassadors. While the principle is the same among the Maisons, the approach dicers from one Maison to another based on: · product specificities · business models · in-store experiences The diversity and richness of our Maisons make LVMH so appealing. What are the essential elements to create a global customer experience and a local one in China? First, as a Maison we have to consider: What do we want to oKer to our clients? Second, from the clients’ perspective, we have to consider: What are our clients expecting from the Maison? Then, talking from my experience, the brand identity, heritage, savoir-faire, and innovation are all fundamental elements to create “dreams” for our clients. These elements should be amplified in each Maison throughout the 360° communication, and through all the clients' touchpoints. Furthermore, to better engage local clients, Maisons definitely need to include local elements, interpreted in an elegant and luxurious way, always respecting the local culture. This part becomes more and more relevant and important to further engage local clients. No need to say, in China consumers evolve quickly and their way of consumption changes fast as well. For these reasons, we definitely need to pay more attention to Chinese specificities to ensure we oAer an appealing experience to consumers. Why is a career in retail so enriching? I’m passionate about people. I believe retail is the best place to take care both of your team and your clients. Fulfilling your client’s wants and expectations is just as exciting as conquering with your fellow colleagues one milestone after another. To conclude, what advice do you have for early talents? Stay curious! There is so much to learn within such a great platform as INSIDE LVMH: from Fashion to Watches and Jewelry, Wines & Spirits and so much more. As long as you keep an open mind and stay curious, there are always opportunities for you to grow. Stay persistent, physically, and mentally! Remember that Retail is detail, and Retail is a magic world crafted by people for people. Client-centric strategies at Guerlain for a best-in-class Customer Experience 3 core pillars Camille Hayouni, Global Retail Experience Director at Guerlain, shares with you what bringing to life an exceptional Customer Experience implies for her Maison, as well as the three key pillars these strategies are built upon: Retail design, Sales teams' excellence and Customer programs. Clienteling & Client Development to forge loyalty and drive revenue Learn from Trent Power, Director of Client Development and Client Relations at LVMH, the three elements of Client Development: contactability, expectations and clienteling. Client Development involves building and nurturing relationships that elevate loyalty, engagement, and satisfaction. LVMH Client Services: a Maison dedicated to customer satisfaction Client centricity as a commitment and an investment How would you best describe Client experience at LVMH? We are all aware that service excellence has a direct impact on client satisfaction, brand desirability, loyalty - and of course, revenue. By extension, client experience is like a diamond: every single interaction provides us with the opportunity to deliver an elevated level of service to reflect the Maison’s reputation. This ambition extends across all communication channels: telephone, email, chat, WhatsApp, Facebook messenger, Instagram or other social media. In your opinion, what sets LVMH Client Services apart? Our quest for excellence. Without it, we cannot heighten desirability and create customer loyalty, which are the two main objectives of our collaboration with the Maisons. We provide a human touch to digital performance, and aim to live up to clients’ increased expectations. Often very passionate about the product, clients want to be listened to, recognized and valued as a client of the Maison. They expect a personalized service, anywhere and at any time, through whatever communication channel they choose. Could you describe the relationship between LVMH Client Services and the Maisons? LVMH Client Services was created to elevate the remote client experience across all the dicerent Maisons. With the acceleration of e-commerce and digital transformation within the Group, we experienced tremendous growth in just 4 years. Today, we work with over 16 Maisons and cover the European, US, Canadian and Asian markets. We are incredibly proud of our relationship with the diAerent Maisons of the Group, who have entrusted us with an essential part of their omnichannel experience. Talking about “omnichannel” and “client centricity” is easy, but putting it in practice day-in and day-out is hard work: it’s a commitment and an investment that we take very seriously. Let’s talk a little bit about execution and operations. How do you roll out a customized and ecective clientele strategy? The LVMH Client Services’ goal is to act as a seamless extension of the Maison’s team. Every interaction seeks to delight and surprise the clients in a way that is unique to each Maison. To achieve that, all members of the LVMH Client Services team are trained in collaboration with the Maisons so they can immerse themselves in the brand’s DNA and product portfolio. Each advisor works with a maximum of two Maisons in order to maintain comprehensive and up-to-date knowledge of the Maison’s processes, operating modes and tools. Our advisors all speak French and English, and a third language depending on the Maison’s specific market: German, Italian, Spanish, Portuguese, Mandarin, Dutch and Russian. To ensure consistent optimal quality, every team member Information travels faster when communication channels are optimized. The Maison understood this very acutely. Fendi equipped client advisors with a clienteling application to keep stac up to speed with the latest news and product launches. Its many useful functionalities included a homepage personalized by market, product training, customization options, and of course the possibility to access client history. This provided an innovative way to maintain a Luxury-oriented client-centric experience. Going one step further, the Maison established its own database based on Salesforce, which helped design ocline and online clienteling campaigns based on data analysis and predictive algorithms. This serves client conversion, upgrade and retention goals and drives traAic to the stores and e-commerce site. The Virtual Showroom heralded a new era for buying The Maison took a cue from the pandemic to strengthen remote client experience to roll out a fitting room designed for remote experience thanks to high-quality cameras which are able to zoom into specific details of the products. Attention to lighting was key to recreate the true color of the materials. The system is available for one-to-many presentations moderated by client advisors and stylists and one-to-one client services, during which clients can ask to go into fine detail for pieces of interest. Of course, this meant innovation both in terms of technology and client engagement. Other features such as remote payments by link, the possibility to invite friends to online appointments and advanced styling features for client advisors were added. The virtual showroom and clienteling app required investments in not just digital transformation, but also in human resources. Product demonstrations were especially crucial in converting highly emotional in-store shopping experiences onto the screen. Lisa Calatroni puts this shift into context for the students: “The ultimate omnichannel definition is giving the client the opportunity to interact with the brand and shop the collections, anywhere and at any time. This is why all systems must be interconnected and people trained on these diKerent tools so they are at ease while serving the clients.” The Maison’s prime focus has always been to maintain an emotional shopping experience and a high-quality experience in keeping with the company’s modus operandi. Student propositions were challenged by a realistic approach When asked about NFTs and cryptocurrency, a new playground for brands in which Luxury houses have been testing the waters, Lisa Calatroni explained that the Maison adopted an approach in tune with their strong positioning in Luxury accessories: branded metallic cases in collaboration with Ledger, a secure hardware wallet maker for cryptocurrencies. The Maison’s conservative approach reflects the high risks (fraud, money laundering, etc.) involved in accepting payments via virtual wallets, which Fendi is yet to do. More than one student presentation broached the idea of developing a signature mobile app. While it may oAer a more seamless client experience, Lisa Calatroni detailed the important investment it would involve, like larger scale operations and a much bigger in-house team. This shows that operational reality and hidden costs are important to keep in mind when brainstorming improvements. This is especially true in the digital realm: a qualified team is key in rolling out similar tech features, a challenge the Maison experienced with the launch of the Virtual Showroom. Many comments and recommendations were made around social media curation and optimizations. Students suggested adding more direct shoppable links on social platforms like Instagram and TikTok, in order to fast-track conversion rates. As social media stands as a Maison’s brand statement, any changes would first be subject to discussion with the Artistic Direction. Overall, in the spirit of Fendi’s company culture, students were welcome to make suggestions as passion and enthusiasm are highly valued by the Maison. “We are in search of that particular spark in the student’s eye. Being a Maison on a human scale, every contribution counts as 150%,” explained Laura Orsolini. Fendi is currently oAering several internship opportunities, both in Paris and Rome. Omnichannel strategies: Focus on e-Commerce and digital ecosystem in Asia A key challenge for Luxury Brands today. As we saw earlier in this module, LVMH is known for its exceptional flagship stores around the world. At the same time, undoubtedly, e-Commerce is gaining year after year a larger portion of the business. Digital transformation and omnicanality are key topics for brands today ; let’s deep dive into those topics with Wendy Chan, currently the Managing Director Greater China Rimowa, who talks about her previous role of SVP Digital of LVMH Asia Pacific. Managing the Asia digital transformation, Data and Omnichannel strategy, Wendy gives an overview of the Chinese digital ecosystem and the key trends of today and tomorrow, and explains why it is so important to implement a 360 channel integration strategy. Innovation and Emerging Experiences at LVMH Learn more about these new technologies applied to the Luxury Industry Nelly Mensah, VP of Digital Innovation & Emerging Solutions at LVMH, talks about how she helps the diAerent Maisons to understand this new technologies and how they can be applied to each brand. Watch this video and learn more about emerging technologies as well as the three criteria to choose the right technology. Blockchain and NFTs: Creating a seamless Luxury experience for clients Discover how LVMH and its Maisons are using technology to elevate the customer experience. Both oAline and online, an elevated customer experience is a cornerstone of the Luxury Industry. New technological innovations are facilitating our Maisons to be able to continually oAer reinvented and superior omni channel customer experiences. Gautier Pigasse, Head of Innovation and Blockhain at LVMH, shares his role in supporting the Maisons in their innovative projects, and how LVMH and its Maisons are using technologies such as blockchain and NFTs to create a seamless Luxury experience for clients. Since the recording of this video, Gautier has been promoted to Head of Innovation & CSR Business Transformation in the Beauty division. The crucial role of data in Retail A key asset for LVMH Retail transformation Anca Marola, Clienteling and Data Director at LVMH, shares with you the importance of data in Retail transformation at LVMH, and how it helps oAer exceptional experiences to clients. Since the recording of the video, Anca Marola has been promoted to Global Chief Digital OKicer at Sephora. Get insights about Retail & Customer Experience at Sephora and Loro Piana In conversation with LVMH experts We are pleased to share an immersive conversation between Clare Vella, UK Country Manager at Loro Piana, and Archer Li, then Vice President Digital & eBusiness (now promoted Vice President Digital Ventures) at Sephora in China. In this recorded conversation, they talk about omnichannel strategies, digitalised customer experiences and they share their tips for people wanting to join the fields of retail and e-retail.