The Luxury Industry. Inside LVMH, Sbobinature di Costume E Moda

Scarica The Luxury Industry. Inside LVMH e più Sbobinature in PDF di Costume E Moda solo su Docsity! Filippo Fròsini The Luxury Industry Inside LVMH Introduction to the Luxury: Industry and LVMH LVMH's unique and diverse ecosystem, values, and solid business model with a long-term vision have enabled the Group to position itself as the leader in the Luxury Industry. We are talking about a group created in 1987 that now counts over 75 Maisons, 6 business sectors, over 196,000 employees across 81 countries, and more than 5,600 stores: LVMH is an exceptional universe. People of more than 190 nationalities and from 4 generations work in the LVMH companies with an average of 37 years of age and a high presence of women (71%) of which 55% work in retail. True to tradition, each of our Maisons builds on a specialty legacy while focusing on the exquisite caliber of its products:  timelessness, heritage, strong brand codes, DNA, and unique savoir-faire. What sets our Maisons apart is their ability to  achieve the seemingly impossible balance between the past, present, and future. They continue to delight and amaze today with their contemporary relevance. In this chapter, you will deep dive into each of our 6 business sectors> Fashion and leather Goods, Wines and spirits, Perfumes and cosmetics, Watches and jewelry, Selective Retail, and Other Activities, as well as into some of our Maisons. Preserving an identity and roots, whilst at the same time constantly reinventing themselves to appeal to their contemporaries, has always been the “raison d’être” of the Maisons in LVMH’s Fashion & Leather Goods sector. Over the years, this division has been enriched with younger Maisons that also allow creative talents to express themselves. Working with the best designers, while respecting the spirit of each brand, is one of our strategic priorities. Our creative directors promote the Maisons’ identities and are the artisans of their creative excellence and their ability to reinvent themselves.  To guarantee a fitting environment for their exceptional products, Maisons in the Fashion and leather Goods sector strive to master their distribution: in this way, they offer their clientele unique customer experiences.  At LVMH, we are all driven by four key values to craft the future together:  • Being creative and innovative Creativity and innovation are part of LVMH’s DNA; throughout the years, they have been the keys to our Maisons’ success and the basis of their solid reputations. These fundamental values of creativity and innovation are pursued in tandem by our Group’s Maisons as they focus on achieving the ideal balance between continually renewing their offer while resolutely looking to the future and always respecting their unique heritage.  • Delivering excellence Within the Group, quality can never be compromised. Because the Maisons embody everything that is most noble and accomplished in the world of fine craftsmanship, they pay extremely close attention to detail and strive for perfection: from products to services, it is in this quest for excellence that the Group differentiates itself.  • Cultivating an entrepreneurial spirit LVMH’s dynamic momentum is inspired by an entrepreneurial spirit at every level of the organization. We have been entrusted with the heritage of the exceptional entrepreneurs and creative talents who founded our Maisons, and we have kept a decentralized organization to maintain the pragmatic agility that encourages efficiency and swift Filippo Fròsini The Luxury Industry Inside LVMH responsiveness. While LVMH may be the world leader, we have retained the spirit of a startup where entrepreneurial challenges are intimately tied to creativity and a never- ending quest for the highest quality. • Being committed to positive impact Every action taken by the Group and its employees reflects our commitment to ethics, corporate social responsibility, and respect for the environment. They drive our Maisons’ performance and ensure their longevity. Firmly convinced that truly desirable products can only come from sustainable businesses, we are committed to ensuring that our products and the way they are made have a positive impact on our entire ecosystem and the places we operate and that our Group is actively working to build a better future. Focus on Fendi: How the Maison is perpetuating its success through craftsmanship Founded by Adele and Edoardo Fendi in Rome in 1925, over the years Fendi has emerged as a Maison renowned for its craftsmanship and innovation deeply linked to its Roman roots. Today, more than 90 years later, Fendi is synonymous with tradition, experimentation, and daring creativity.  In this article, the Maison’s CEO and Chairman Serge Brunschwig explains some aspects of the company’s savoir-faire and his vision for its future.  What’s the key to good craftsmanship?  It’s know-how, it’s having great designers and artistic directors, and it’s storytelling.  - What makes good storytelling?  Authenticity. People want real stories, beautiful stories that show that something is real and not invented. The customer puts value on understanding these stories and their relative products.  - How do you keep clients interested in your products?  Product innovation. We have people in our teams who are always looking for new ideas. They are artists and craftsmen, and they are our two famous artistic directors - Kim Jones and Silvia Fendi - who are focused on what’s next and how they’re going to surprise again.   Filippo Fròsini The Luxury Industry Inside LVMH on the boldness of new creations. These brands cultivate what makes them unique and this guarantees they stand out to their devotees in a highly competitive global market. The success of the Perfumes & Cosmetics division depends on finding the right balance between major historic Maisons such as Parfums Christian Dior, Parfums Givenchy, and Guerlain, and younger brands with strong potential like Benefit Cosmetics, Fresh, and Make Up For Ever. Yet, these brands are driven by the same values: a quest for excellence, creativity, innovation, and perfect mastery of their image. All brands are accelerating the implementation of their online sales platforms and stepping up their digital content initiatives. Excellence in retailing is key, requiring expertise and attentiveness from beauty consultants, as well as innovation at points of sale. Our brands are actively incorporating digital tools to enhance the customer experience and attract new consumers.   In August 2022, a new Maison joined the LVMH portfolio: STELLA by Stella McCartney. Following a successful partnership with LVMH which began in 2019, Stella McCartney has collaborated with the LVMH Beauty division to develop her new skincare line, STELLA by Stella McCartney. After pioneering the conscious luxury fashion industry, Stella’s ambition is to offer an alternative to luxury skincare, an Alter-Care™.  A new approach that supports caring for ourselves and Mother Earth in perfect harmony. Rooted in nature, with Stella’s vegan and cruelty-free principles at its heart, this ‘conscious luxury’ skincare line is natural, effective, and responsible. Focus on Benefit Cosmetics In 1976, twin sisters Jean & Jane Ford opened their first beauty shop in San Francisco. Thanks to their playful vision of beauty, powered by laughter and fun, they pioneered a true cosmetic revolution. Today, Benefit is known worldwide for its feel-good products and services. Get an exclusive look into the inner workings of one of the world's most innovative and fun beauty brands. Christie Fleischer, CEO of Benefit Cosmetics will discuss the company's commitment to corporate social responsibility, and offer invaluable advice on teamwork, active listening, and empathy. Focus on Watches & Jewelry: Dynamic Houses with iconic collections Filippo Fròsini The Luxury Industry Inside LVMH Counted among the most dynamic brands on the market, the Maisons in the Watches and jewelry sector of LVMH operate in two segments: high-quality watchmaking on the one hand, and jewelry and high jewelry on the other. A quest for excellence, creativity, and innovation guides the Maisons in this area every day.  The watchmaking side capitalizes on the complementary positioning of its Maisons: TAG Heuer’s international stature, Hublot’s strong dynamic of innovation, and Zenith’s age-old savoir-faire. In jewelry and high jewelry, the Maisons of Bvlgari, Tiffany & Co., Chaumet, Fred, and Repossi employ their bold creativity and perfectly mastered savoir-faire to constantly surprise their customers and offer them the objects they desire. The division is focusing on the quality and productivity of its retail networks and on developing its online sales. Multi-brand retailers are selected very carefully to ensure their high standards are met. In an equally selective approach, the Maisons also continue to refurbish and open their stores in buoyant markets in key cities.  Focus on TAG Heuer's Watchmaking excellence Since 1860, watchmaking pioneer TAG Heuer has been blending technological innovations, high-precision timekeeping, and cutting-edge designs to create products whose performance continues to shape the passing of time.  In 1860, at the age of just 20, Edouard Heuer founded his brand and revolutionized the watchmaking industry by breaking away from the established rules. Ever since that time, TAG Heuer has been creating incredible watches and chronographs of extreme precision. The world of TAG Heuer is intimately linked to motor racing and the division of time into infinitely small units, but its aura extends well beyond this arena. TAG Heuer has spearheaded innovations that have left their mark on history and still define the foundations of the watchmaking industry today. In this video, discover how each Swiss-made watch exudes the Maison’s know-how and high precision standards. Focus on Selective Retailing: Our customer-focused strategy The Selective Retailing Maisons in the LVMH Group shares the same objective: to transform shopping into a unique experience. Specialist product selection, upgrading of stores and services, constant innovation, digitalization, and personalization of relationships, Filippo Fròsini The Luxury Industry Inside LVMH are the key drivers for their daily activities. Operating in Europe, the Americas, Asia, and the Middle East, our Maisons are active in two spheres: - retail designed for international traveler customers (travel retail), with DFS and Miami Cruiseline - and selective retailing concepts represented by Sephora, the most innovative name in the world of beauty, and Le Bon Marché Rive Gauche, the department store with a unique atmosphere located in Paris.  Focus on Le Bon Marché: The world’s first department store What a story! In 19th-century France, the advent of innovative technology and new ways of thinking revolutionized every part of life, from architecture and medicine to dining and retail. Founded in Paris in 1852, Le Bon Marché was at the heart of this transformation, progressing, under the masterful reins of owners Aristide and Marguerite Boucicaut, from a simple novelty shop on Rue du Bac into the world’s first  grand magasin (department store), “a new kind of store to thrill all the senses”. Along the way, not only would it generate commercial models  copied the world over, but also  supply chain and sales  norms still relevant in today’s hyper-digitalized society.  - Did you know Le Bon Marché was the first French retailer to offer fixed prices?   Until Le Bon Marché, the norm was to haggle. When Boucicaut came up with a fixed-price model, word spread that the sellers at Le Bon Marché could be trusted. In addition, entry into the store was free, with no obligation to try, and you could touch the products. A revolution!     - Did you know Aristide Boucicaut was the first French entrepreneur to constantly diversify the offer?  In 1882, the store had 35 departments; by 1887 it had 74. Merchandise came from all over France: silk from Lyon, lace from Calais, wool from Roubaix, and drapes from Sedan - cities whose emblems are still visible on the building’s façade today.     - Did you know Le Bon Marché was the first  to champion low-profit margins?   Filippo Fròsini The Luxury Industry Inside LVMH leads to made-to-measure works of art and design, transforming every Maison into a living gallery. This celebration of creativity and quest for constant reinvention extends from art and design to thoughtful service gestures aiming to make our guests' stays that much more exquisite. • Careful attention to exclusivity Careful attention to exclusivity is deeply rooted in the design and service standards of each of the 5 Maisons. With spacious surroundings, purposefully limited inventories, dedicated facilities such as private pools or treatment rooms, secret entrances, and acute organization of flows, Cheval Blanc prioritizes every guest’s desire for privacy, with a highly personalized approach to culinary arts, wellness, and entertainment. The 6 Pillars Operating Model It’s the business model that drives a company’s success and ensures its future. At LVMH, our 6-pillar model is anchored in our  long-term vision and family spirit - one that builds on each Maison’s heritage and stimulates creativity and excellence.  Did you know the Group’s vocation is to ensure the development of each of its Maisons while respecting their identity and their autonomy?  It does this by providing all the resources each Maison needs to design, produce, and market their products and services defined by excellence and the highest quality.   1. Decentralized Organisation   We are promoting risk-taking and perseverance. LVMH’s organization is agile and decentralized, which encourages efficiency and responsiveness. Our specific structure and operating principles ensure that each Maison can be autonomous  and responsive at all times – something that helps us to get close to our  customers, and ensures  that  rapid, effective, and  appropriate  decisions  can  be  made.  We entrust all our employees with significant responsibilities, which stimulates individual initiatives and motivates teams by encouraging them to show true entrepreneurial spirit. By promoting pragmatic thinking and the ability to motivate teams, we challenge ourselves and our talents to achieve, continuously push the boundaries, and never shy away from risk-taking and perseverance - and our decentralized organization approach promotes this.  2. Vertical Integration  We are fostering excellence both upstream and downstream. Vertical integration allows us to control every  link  in the value chain, from sourcing and production to selective retailing, which means that the image of our Maisons is carefully controlled. Our Business Model is anchored in this meticulous control, making LVMH the only global Luxury Group to offer such a vast and diversified array of professional opportunities around the world, all the way from when a product is created to when it is handed into clients’ hands.  3. Sustaining Savoir-faire  The past lives within us and inspires us, but what motivates us is the future. To pursue our long-term vision, we strive to preserve our Maisons’ distinctive identities and excellence. We do this by developing forward-thinking initiatives to transmit savoir-faire and ensure that craftsmanship and creative métiers are valued by future generations. We constantly endeavor to cultivate the expertise upon which our Maisons have built their legacies. This means we hire and train thousands of new employees each year. The past lives within us and inspires us, but what motivates us is the future: the next generations to whom we must Filippo Fròsini The Luxury Industry Inside LVMH pass on the torch of excellence. Our role is to equip them with the tools and skills they need to attain it.   4. Organic Growth   We are sustaining our success for the long term. Organic growth is a key priority for LVMH, and we commit significant resources to help develop our Maisons and encourage and protect creativity. We know that our employees are the key to this approach, which is why we support their career growth and encourage  them  to exceed their potential. Over time, and guided by our long-term vision, we have reaped the rewards of ambitious choices, investments, and patient developments, often years in the making. It’s this enduring commitment that sets us apart from the rest. It gives Maisons and employees the time they need to fully express their potential and talent. It drives our ability to adapt and respond to unexpected external challenges. It underpins the powerful resilience of our Group, which as always, has risen (and continues to rise) to the challenge.   5. Creating Synergies   We are sharing resources to be stronger. The sharing of resources on a Group scale is part of our DNA. It creates intelligent synergies while respecting the individual identities and autonomy of our Maisons.    It means that the combined strength of the LVMH Group is leveraged to benefit each of its Maisons. On the ground, this translates to sharing best practices. It helps us harness the expertise and optimize the Maisons’ processes to boost their potential. One way we facilitate this is by connecting our talents to one of the world’s most creative and innovative communities. We connect through themes, places, moments, and channels to come together, share, and grow.    We create collective moments and communities of interest to allow our talents to share ideas and best practices within or across different professions and geographic areas.  6. Balance across business segments and geographies It is withstanding the impact of shifting economic factors. Our Group has the resources to sustain regular growth thanks to the balance across its business activities and a well- distributed geographic footprint. This balance means that we are well-positioned to withstand the impact of shifting economic factors.    →Here are some figures:   81 countries and 5600+ stores . Revenue of 79.2 billion euros in 2022 (+23% compared to 2021), distributed across geographies: Asia (excl. Japan) 30%, Japan 7%, United States 27%  , Europe (excl. France) 16%  , France 8%  and Other Markets 12% .  The uniqueness of the Luxury industry - What are the main characteristics of the Luxury industry, and what makes this sector unique? Luxury goods are known for their exceptional quality, attention to detail, and craftsmanship. Skilled artisans often create these products using traditional and time- honored techniques. Luxury items are often produced in limited quantities, enhancing their exclusivity and desirability. Limited availability creates a sense of urgency among consumers, driving demand. Luxury brands invest heavily in building and maintaining a strong brand identity. Brand reputation, heritage, and story are essential components of the luxury industry. Customers often buy luxury goods for the brand name itself. Luxury products come with a premium price tag. The high prices reflect the quality, exclusivity, and craftsmanship associated with these goods. Customers are willing to pay a premium for the perceived value and status associated with luxury items. Despite the emphasis on Filippo Fròsini The Luxury Industry Inside LVMH tradition, luxury brands are innovative and creative. They constantly strive to create unique and trend-setting designs, pushing the boundaries of creativity while maintaining their brand identity. Luxury brands prioritize exceptional customer service to provide a personalized and exclusive experience to their clients. This high level of service extends from the shopping experience to after-sales support. Luxury goods often serve as status symbols, signifying wealth, success, and social standing. People buy luxury products to showcase their achievements and to differentiate themselves from others. Luxury brands have a strong international presence, with boutiques and stores located in major cities worldwide. They cater to a global customer base, capitalizing on the increasing demand for luxury goods in emerging markets. With growing awareness about environmental and social issues, many luxury brands are now focusing on sustainable practices. They are adopting eco-friendly materials, ethical sourcing, and responsible production methods to appeal to environmentally conscious consumers. - According to you, what are the three most important factors influencing the future of Luxury? The rise of digital technology and e-commerce is reshaping the way consumers interact with luxury brands. Online sales and digital marketing have become crucial for reaching a broader audience, especially younger consumers who are tech-savvy. Luxury brands need to adapt to the digital landscape, offering seamless online shopping experiences, virtual try-ons, and engaging social media content to stay relevant and competitive. Sustainability has become a significant concern for consumers, including those in the luxury market. Ethical sourcing, eco-friendly materials, and responsible production practices are becoming essential for luxury brands. Consumers are increasingly seeking products that align with their values, and luxury companies need to focus on sustainable initiatives to reduce their environmental impact and promote ethical practices throughout their supply chains. Consumer preferences within the luxury sector are evolving. Younger generations, in particular, are redefining what luxury means. They value experiences over material possessions, seek unique and personalized products, and are interested in the story behind the brand. Luxury brands need to understand and adapt to these shifting preferences. Customization, limited edition releases, and immersive brand experiences are becoming more important to cater to the changing demands of consumers. We remain with Emanuela Prandelli to understand the right balance between brand signatures and design, and product personalization. How can brands enhance authentic consumer pride, while preserving their signaling potential? Luxury brands today offer consumers the opportunity to customize their exclusive products. However, the more attributes can be personalized, the higher the risk of negatively impacting product recognisability and the brand's signaling potential. Emanuela Prandelli, Associate Professor for the Department of Management and Technology at Milan’s Bocconi University, helps you to understand the right balance between customization and product recognisability.  Innovation is a key asset for brands in the Luxury Industry What is your vision of innovation in the Luxury industry as a whole? Both at LSE and Louis Vuitton?   A: I believe innovation is deeply rooted in luxury and craftsmanship because every craftsman always thinks about ways to improve an object that's being produced. The key point of luxury and innovation is answering the question of how can we do things differently Filippo Fròsini The Luxury Industry Inside LVMH A: We embrace risk! Maximizing risk avoidance is inconsistent with our vision of luxury. Meanwhile, we iterate a lot within the company to make sure that what we launch is high- standard. We would not compromise quality towards innovation because innovation is just a means to achieve excellence. Sometimes, one project that hasn’t worked can lead to another.    LJ: One of the skills we encourage students to develop is an acceptance of failure. If you are not equipped with that understanding of failure, why it happened, and an insight into how to avoid repetitive patterns, chances are you will struggle with your entrepreneurial journey. So, we try to equip our students with the softer skills (that we don't view as nice-to-haves but essential needs) of resilience grit, and the willingness to accept failure. For most of our lives, we try to avoid taking risks but actually, that leap of faith involved in taking risky decisions can lead to much more creative ways of solving these problems and finding solutions that you would never have thought about before.     Can it be difficult to manage innovation and excellence? If so, what are the solutions to make them work together?    A: It is indeed because we’re going to want excellence in the first round and it’s not the case when we innovate. We need to be able to train and make it better and better. But the most important thing is taking all the research for excellence as an add-on to the experience rather than a barrier to your project. Taking the feedback is a great opportunity to work towards excellence.    LJ: By nature innovation is messy, there is rarely a straight line. If you adopt a perfectionist approach to innovating, you immediately restrict yourself. This is why we encourage students to dive into what appears to be an unstructured, massive mess to create something innovative and truly transformative. Filippo Fròsini The Luxury Industry Inside LVMH   Does being innovative require having a large budget?    A: Combining high ambition with budget constraints forces you to be creative.   LJ: Ideas are free and when you minimize that kind of limitation, creativity and innovation tend to flow better.     What is your vision for the future?    A: At LV, we like to say that today’s innovation is tomorrow’s tradition.    LJ: A positive one. When we are innovating, we need to think about what can be achieved rather than thinking we need to innovate because the future is bleak. Having a positive outlook allows the freedom to innovate and build effective and long-term solutions.   An example of a great innovation?    A: The Aura Blockchain Consortium with LVMH. The first time we started thinking about how we could use blockchain was in June 2019. We started from scratch and now it’s a major innovation for our industry. It is the world’s first global luxury blockchain and an unprecedented collaboration between key players in the Luxury Industry. It represents a single, innovative solution to share challenges such as communicating information on authenticity and responsible sourcing and sustainability in a secure, digital format.    What are the sources you go to for inspiration?  A: I like listening to lectures from Amy Webb, founder of the Future Today Institute. We attend events such as South by Southwest in Austin or the CIIE in Shanghai China, we read newsletters a lot too.   LJ: My advice would be to surround yourself with inspiration. Don’t just consider one subscription on one topic within a certain echo chamber, but look to an array of views and media; move away from the topic you’re innovating on and start to expand your mind with broader themes, and that will lead to an unleashing of a completely different kind of creative energy. My favorite sources of inspiration include the School of Life, the guided meditation series created by Peacebeam (on Insight Timer), and the Adam Buxton podcast! It’s also about creating an environment that is conducive to innovating and this can start with really simple tweaks from altering your backdrop, changing your office set-up, and organizing stand-up meetings, for example, to allow creative ideas to flow more easily.  Digital transformation Digital transformation and e-commerce are becoming increasingly important for luxury brands, bringing forward the focus on an omnichannel customer journey. Digitalization of the luxury industry is nothing new for LVMH. However, since the pandemic, the LVMH Group and its iconic Maisons have taken digitalization to the next level by reinventing experiences for all clients and taking up new commitments to providing the best possible service.   Filippo Fròsini The Luxury Industry Inside LVMH The customer has always stood on the center stage of the Luxury Industry, reflecting its very essence and its raison d’être. Today, luxury brands are focusing particularly on building long-term connections with their clients, fostering beautiful relationships that are based on trust and loyalty. In our new world, the customer places higher expectations on service and experience. They want to choose where, when, and how they discover the world of our different Maisons, try the rich variety of products, and also enjoy the ambiance and the experience. We have to ensure that all touchpoints of the customer journey are unforgettable, special, and unique, but also excellent, smooth, and natural.   The digital age has completely changed our rooted perception of the “true” luxury experience by broadening and enriching its meaning. The digital allows us to dematerialize and remove any existing physical constraints while facilitating and amplifying the notion of service that lies at the core of the luxury business. The beauty of digitalization is that it is a never-ending process of incorporating newer, faster, richer features. Among the many trends informing our brands’ strategies in recent years is the increasingly omnichannel behaviors of our clients. We now have to “show up”, be where our clients expect us to be, and sometimes go where luxury brands had never gone before. In truth, breaking new frontiers, exploring new horizons, and reinventing oneself is also part of the very essence of luxury.    Omnichannel is a client-centric approach aimed at providing a consistent, qualitative, and seamless customer experience across all channels and geographies. The key to obtaining this synchronicity is cross-functional collaboration and full integration of each Maison’s assets (including inventory, capabilities, tools & systems, data, processes,…). For effective integration, the omnichannel has to become an integral part of the brand’s operations. It is a holistic process, which requires the involvement of everyone and every part of the business, to make the experience truly seamless.  To understand this topic, let’s look together at some of the key factors that matter when talking about “omnichannel”.   1. The omnichannel as a vision in the organization Change starts with a common ambition. At LVMH, we seek to offer the best-in-class client experience, and further grow, master, and lead its enhancement. To achieve this ambitious goal, we need to create an organizational approach that is client-centric at heart. The notion of client-centricity has to be incorporated into the vision of the brand and occupy an important role across all the company’s strategies. This requires fundamental changes at the core of the company.   To push forward an omnichannel initiative, we need a relevant leadership role, a relevant transversal committee that will oversee program implementation across the organization, and, lastly, relevant ways to incentivize the people in the organization to adopt the mindset.   2. Enhancing the 360° omnichannel experience The consumer always stays at the core of our strategy, so we need to consider the smallest details of the consumer journey and experience and predict and outline them. The omnichannel approach allows for a smooth transition between all touchpoints where the client comes in contact with the brand. Re-enchanting product discovery - Filippo Fròsini The Luxury Industry Inside LVMH Companies' growing engagement towards sustainability uncovers how businesses not only focus on minimizing their negative impact but also seek to effect a positive one. LVMH: After 30 years of sustainable commitments, LVMH takes action. Every action taken by the Group and its employees reflects our commitment to ethics, corporate social responsibility, and respect for the environment.  Our commitments drive our Maisons’ performance and ensure their longevity. Firmly convinced that truly desirable products can only come from sustainable businesses, we are committed to ensuring that our products and the way they are made have a positive impact on our entire ecosystem and the places and communities where we operate and that our Group is actively working to build a better future for our planet.   “The LVMH Group embodies a unique culture, one that we express around the world through our products, as well as our ethical, social, environmental and cultural actions, with each aspect contributing to a truly living legacy.” - Bernard Arnault, Chairman and CEO of LVMH.   In light of the 30-year mark for LVMH in honoring these commitments, let's look back on the evolution and progression of this path and dedicated strategy over the years. • Eco-design is a design strategy that focuses on three broad environmental categories: materials, energy, and pollution/ waste. Its goal is to integrate sustainability and environmental protection standards throughout the service/product life cycle to minimize the impacts that arise from the manufacture, use, and disposal of the product/ service. • The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended. • Traceability is the understanding of where exactly your products came from including the raw materials used to create them. Filippo Fròsini The Luxury Industry Inside LVMH • Regenerative agriculture is an agriculture/viticulture capable of regenerating ecosystem functions (soils, biodiversity, water) by partnering with the living and ensuring qualitative livelihood for the stakeholders involved (farmers, communities), to produce high-quality raw materials. • LCA (life cycle assessment) is a methodology for assessing environmental impacts that are associated with the entire life cycle of a product, process, or service. It involves evaluating the impacts from all phases of a product life cycle including raw material extraction, production, distribution, usage, and end-of-life phases. • Sustainable Procurement is the integration of corporate sustainability principles into procurement processes and decisions. Having a responsible procurement process means being aware of impacts and taking them into account in decision-making. LVMH sees environmental protection as more than a responsibility: It is an imperative! LVMH's environmental policy has been a pillar of our growth strategy for more than 30 years. LVMH was the first Group among CAC 40 companies (Paris stock market index) to create and develop an environmental department in 1992.  Since becoming one of the first major corporations to implement an environmental strategy, we have persistently intensified our efforts to reduce the impact of our business.  The LVMH approach to environmental responsibility is structured by the LIFE 360 program. The program has structured the Group’s actions around a unified vision, a collective commitment, and priorities shared by the Maisons, with a long-term perspective. Pillar 1 - Creative Circularity 1/3, At Ruinart, sustainable development is a source of creative inspiration Since its foundation in 1729, Ruinart has been a symbol of French art de vivre. The Maison has crafted its exceptional wines by nurturing the roots of the terroir and ancestral savoir- faire. In the vineyards located in the Montagne de Reims, the cellar masters have witnessed the impact of climate change. In 1961, the first day of harvest was October 6. In 2020, the first day of harvest was August 17. Global warming is a reality and it is changing the way Ruinart chooses its grapes and creates its champagne. One of the major challenges in the coming decades will be to mitigate and adapt to climate change. To harvest perfect grapes, Ruinart has been deepening its commitment to preserving the soils that are a source of life. Because the preservation of biodiversity is a top priority, Ruinart has announced that the Maison is dedicating the entire 40 hectares of the historic Taissy vineyard to a biodiversity pilot project carried out with Reforest’Action. It attests to the drive to develop this approach in the years to come and to share it more widely on the scale of the Champagne region.  Faithful to its pioneering spirit, Ruinart also promotes sustainable energy, like choosing LED lighting in its cellars. And in terms of commercial transport, 85% of deliveries are made by sea and 15% by road – not by plane.  With the launch of its Second Skin packaging, Ruinart reinforces its commitment to promoting sustainable innovation.  One of the first reasons to buy champagne is to give it as a gift, therefore packaging is truly important. Since 2015, gift boxes have been eco-conceived, but Ruinart has pushed its limits by challenging its design and development teams to create the second skin case. Two years of research and development were needed to create this sustainable packaging in every aspect, from bottle shape to wine protection. This 100% recyclable paper case reduces the bottle’s packaging carbon footprint by 60%. Its white color and texture are inspired by the Maison’s historical Crayères, the chalk quarries that store Ruinart Cuvées in optimal conditions. Filippo Fròsini The Luxury Industry Inside LVMH Maison Ruinart strives to create a more sustainable French art de vivre and conscious luxury at all levels. Creative Circularity 2/3, The partnership between Christian Dior and Parley for the Oceans Discover how creative circularity  is  transforming  the creative process of Maison Christian Dior Couture. Nature has always held a special place in the hearts of Christian Dior and his successors, who have in turn celebrated the beauty of gardens and flowers in their collections. Perpetuating this deep admiration, the House of Dior today works as a creative laboratory in motion to integrate Sustainable Development into all the Maison’s professional sectors and areas of expertise, organized around three pillars:   • the protection of natural resources • the contribution to the climate effort • the daily commitment on the part of all the House's collaborators The encounter between Dior and Parley for the Oceans is a continuation of these virtuous actions, placed under the signs of sharing, transmission, and determination to build a better future. For the second year in a row, Kim Jones, Artistic Director of Dior’s men's lines, has teamed up with this environmental organization that takes action  against major ocean threats, with the Parley AIR (Avoid, Intercept, Redesign) strategy. Together, they have conceived  a  Beach Capsule  made of 96% recycled fabrics, reflecting the Maison's objective to move towards a more sustainable fashion, thanks to the concept of circularity.  Driven by eco-innovation, in 2019 the two partners initiated joint research work, which gave life to novel materials made from Parley Ocean Plastic® – created with marine plastic debris and fishing nets recovered from the coastlines of several countries and islands around the world, then reworked in Dior’s Ateliers. A challenge for the artisans who, using this recycled fiber as an alternative to virgin polyester, created high-quality fabrics, such as seersucker, silky knit, and a technical fabric punctuated with the Dior Oblique motif.  Fusing durability and desirability, the wardrobe designed for this unique capsule is the fruit of a new alliance, inviting us to rethink the fashion of tomorrow by transforming the creative process.  Pillar 1 - Creative Circularity 3/3 Nona Source, a veritable innovation in sourcing Created by three experts from the LVMH Group – Marie Falguera, Romain Brabo, and Anne Prieur du Perray, Nona Source is a startup incubated by our DARE intrapreneurial program (Disrupt, Act, Risk to be an Entrepreneur) to accelerate innovative solutions. With their expertise in material sourcing and digital transformation, they designed a game-changing platform to re-use deadstocks, the “sleeping beauties” stored in the warehouses of exclusive LVMH Fashion & Leather Goods Houses.   Pillar 2 - Biodiversity 1/3 Fundamental importance of preserving the ecosystem LVMH has been committed to making the protection of biodiversity an absolute priority. The protection of nature’s ecosystems has always been of utmost importance to LVMH, whose activity is significantly reliant on natural raw materials (flowers, grapes, cotton, leather, stones, etc.). Therefore, LVMH is taking action and making the protection and regeneration of biodiversity a key pillar of its LIFE 360 environmental strategy. Alexandre Capelli is the Innovation & Bio-Diversity Director at LVMH and is leading the environmental creativity and innovation topics linked to products and raw materials within the Group. Let's discover with him how LVMH has structured its strategy around three main objectives to preserve and regenerate biodiversity. Filippo Fròsini The Luxury Industry Inside LVMH has been very committed since 1992, and Bee Respect marks an important step in opening up transparency on our supply chain and the whole life cycles of our products. For over 4 years, Guerlain has been committed to a long and rigorous process of mapping the life cycle of its products. In 2019, we launched "Bee Respect", our transparency and traceability platform designed in partnership with Product DNA (architects of traceability). Accessible to all via our website guerlain.com, it is also a valuable tool for internal teams, a valuable tool for continuous improvement (particularly in terms of environmental impact), from the flower field to our customers. Does Bee Respect demonstrate an evolution of the customer relationship and experience?  We started working on this platform in 2015. This platform Bee Respect, intuitively, is a new relationship with the consumer. It’s a revolution in itself. This requirement of transparency asked us to go up the value chain and recreate the link with the customer. In a way, this is a way of breaking away a little from the adage that luxury does not reveal its secrets, it's backstage. We felt this need for communication very early on. Regarding the products, we went to look for labels such as third-party certifiers as well as the programs of retailers like Sephora. Everyone was put on the same level in terms of “Clean beauty” or Naturalness. How does this tool guarantee this transparency?  We have a very strong ambition to be exemplary. Engaging in this process of mapping products was very long and required a lot of rigor to meet this expectation and this requirement of details on the information of all the products and all the creations. We mobilized 250 employees, partners, and suppliers. Today we are focusing on internationalization: we have recently launched the site for the United States and plan to put online new countries in Asia. It is a rather complex process, each country has its regulations. It has long been believed that sustainability is not always marketing's best friend. The Bee Respect experience proves the contrary and responds to this need for concrete and precise information to the deep questions on environmental footprint and climate change.  How does the naturalness strategy fit into the LVMH Group's zero carbon objective for 2028?  We are fortunate to have this powerful backbone of the unique connection to nature, this history linked to biodiversity and natural ingredients. We must not forget that Guerlain is also the inventor of synthesis in perfumery. The product must also respond to an essential alliance between its functionality and sensoriality. The equation must be subtle and respond to an ecosystem. This alliance will never be one hundred percent natural. Sustainable innovation is like a healthy mind in a healthy body. At Guerlain, the spirit is the formula and the healthy body is the packaging. Here too, we are completely transparent.   Ahead of each new product development, our Marketing, Development and Sustainable Development teams work together to set ambitious yet realistic goals according to the 3 following indicators: • The Environmental Performance Index (EPI) is a grade out of 20 which determines whether the rules of eco-design are being well implemented. This grade is calculated using software developed by LVMH for use by all Maisons. As a reporting tool, it measures what eco-design progress is being achieved by the Maison as well as throughout the Group more globally. For each new development, we broadly aim for a minimum grade and each re-launch of an already existing product will be re- launched with an improved grade better than its predecessor. • CO2: With each new development we commit to producing less CO2 than its predecessor. This indicator corresponds to the equivalent CO2 created by product packaging and transportation in the world. Filippo Fròsini The Luxury Industry Inside LVMH • Finally, we follow the 3 Rs: Reduce, Reuse, Recycle, in this precise order. We endeavor to develop products that integrate all three Rs. From an environmental standpoint, the highest performing products are therefore those with a grade higher than 12 and a significantly reduced CO2 impact compared to the product it replaces, while also meeting three R objectives (Reduced packaging, using Recycled materials, and designed to encourage Recycling.)   Does the lasting transparency of Bee Respect strengthen the brand's position in its market segment?  I am convinced that sustainability meets performance. I would even say that today it is beyond that, we are condemned if we do not meet these requirements for transparency and traceability and, in essence, the expectations of our consumers. Both certification and traceability are guarantees of a virtuous circle in our way of sourcing the wonders of nature at the heart of all our creations for nearly 200 years. It is to protect them and to be able to pass them on that we are committed to the quality of the cultivation and the traceability of our sustainable natural ingredients: whether it is orchid, honey but also neroli, ylang, rose, etc. We audit them on both the environmental and social aspects, aiming for continuous improvement. Luxury would not exist without biodiversity and this is a very upstream approach, at the sourcing stage, that improves the quality of our products.   From a more societal angle, we connected the dots between bees and society with our latest program developed with UNESCO: “Women for Bees”, designed to train women beekeepers in UNESCO Biosphere Reserves all over the world. Surely, we will rely on the Bee Respect platform to update and visualize all the places we install beekeepers and beehives! LVMH & Social Responsibility LVMH believes its heritage and Maisons’ success are anchored in their respect for society and communities. At LVMH, we are driven by a strong sense of responsibility towards society. As a leading group, at LVMH we have the responsibility to stay in touch with the world around us because we are driven by the belief that people, whether those employed by the Group or those with whom it works, make the difference.   Our social responsibility is rooted in the fundamental principle of respect for people and their individuality. We believe our heritage, as well as the success of our Maisons, is anchored in our respect for society and communities. Our long-term commitments yield tangible benefits for society. LVMH views social responsibility as not simply an obligation, but an imperative and a source of competitiveness. Together, we are committed to making excellence a lever for social and professional inclusion in solidarity with our host regions and communities as we strive to cascade the positive social impact of our activities.  The four pillars of social responsibility are as follows:   1. Respecting the uniqueness of our employees: we endeavor to build an inclusive organization that celebrates what makes each employee and each candidate special.   2. Passing on and developing savoir-faire: the preservation of artisan crafts and design is a fundamental concern, as it guarantees excellence for our Maisons and safeguards our reputation throughout the world.   3. Supporting our employees by improving their safety and well-being: employee well-being requires action in all areas directly and indirectly related to health and safety. Filippo Fròsini The Luxury Industry Inside LVMH   4. Empowering local communities: As a leading company in the global economy, at LVMH we feel a strong sense of responsibility towards the regions in which we operate. Diversity & Inclusion 1/4 Academic perspectives on the strategic importance of this subject What are the definitions of Equity, Diversity & Inclusion? Felicia Henderson, Lecturer at Sciences Po Paris, gives a brief overview of equity, diversity, and inclusion in organizations and offers some suggestions for how you can foster equity and inclusion in your workplace or future workplace.  Diversity & Inclusion 2/4 Focus now on Diversity and Inclusion at LVMH  “At LVMH, Diversity and Inclusion is everyone’s business”. Deep dive with Vanessa Moungar, Diversity and Inclusion Director for LVMH, into the Group's vision and discover how Diversity and Inclusion are cross-cutting all our business to ensure long-term performance. She shares our three action pillars: people, partners, and image. Diversity & Inclusion 3/4 LVMH supports initiatives and communities related to Diversity and Inclusion At LVMH, people make a difference and we support employee networks around the world such as the EllesVMH Networks supporting gender equity or the All LVMH Pride Networks, which focus on LGBTI+ inclusion, based all around the world. We all have a role to play in crafting a more inclusive future! Discover some of the initiatives and communities that exist across the Group in support of diversity and inclusion matters, through this conversation between HEC's Anne Michaut and: Natacha Lamour, Retail Director North America at Hublot, newly promoted President of North America & Caribbean and presenting EllesVMH, Nicolas Streff, Global Brand & Corporate Communications Director at Belmond, presenting All LVMH Pride, and Léa Baudin, Head of Digital France at Guerlain and now Head of Marketing at Benefit Cosmetics France, presenting SHERO. Focus on Disability Inclusion 4/4 Supporting employment of people with disabilities Steadfast in the commitment to integrating people with disabilities into the workplace, LVMH has launched an inclusive program to enhance accessibility, recruit people with disabilities, and provide them with the support that enables them to perform their best at work. The Group values the unique contributions of people with disabilities to the legacy of excellence championed by its Maisons. In 2021, LVMH signed the International Labour Organization (ILO) Global Business & Disability Network Charter and fixed a target of increasing the percentage of people with disabilities in its global workforce to 2% by 2025. We were at 1% in 2020. The target is to double the number of employees with disability globally by 2025. In the following article, you will deep dive into the importance of the Disability Inclusion topic with Jean-Rémy Touze, from LVMH’s Disability Inclusion Office. What are the key roles of Disability Inclusion? Jean-Rémy: Some of the key roles of Disability Inclusion at LVMH are • Ensuring that disability issues are addressed by teams at all levels and in all countries • Improving understanding of the situation in each geography • Identifying local challenges for people with disabilities and facilitating communication among our HR teams worldwide Filippo Fròsini The Luxury Industry Inside LVMH A thrilling name for collectors and watchmaking connoisseurs alike, Hublot wields the art of the unconventional. Founded in 1980, the Maison bridges audacity, tradition, and innovation, all in a day’s work. Emmanuel Missillier, Industrialisation Manager, and Patrick Cibien, Technical Director of Movements, lift the veil on what it takes to birth desirable yet wearable timepieces that continue to defy convention. A Glimpse into a Day of a Watchmaker at Hublot Watchmaking enthusiasts will agree that a timepiece contains a universe of miniaturization and precision. Hublot’s “manufacture movement” channels the many know-hows within the Maison. It is entirely designed, produced, and assembled in- house and most of the components and cases are produced on-site. Far from the age-old image of the lonely watchmaker tinkering away in his workshop, a regular day at Hublot involves interacting with many different colleagues. Patrick Cibien describes daily interactions this way:   “We are in constant interaction with the manufacturing and product departments... Every day is full of exchanges with the whole company. A typical work day does not exist at Hublot.” The design and laboratory units reflect the watchmaking process: from ideation and prototyping to function optimization, product approval, and manufacturing. The two teams are responsible for every single Hublot watch that comes to life.     “A movement is born from the close collaboration between these two teams, from their permanent dialogue, in the desire to constantly perfect the product.” How do we tackle the challenges of modern watchmaking? Quality and continuous improvement are at the forefront of Hublot's mission. A large part of fine watchmaking revolves around efficiency and optimization. The laboratory evaluates each design for functionality and longevity. However, the real test happens once the watch reaches its owner’s wrist, this phase of live observation is an integral part of product development.  There are many parameters to balance in the product development process, and each stakeholder holds a different perspective. Hublot is a verticalized Maison where all the essential trades of watchmaking are brought together under one roof. This means that collaboration is key and that each team member typically juggles several projects at once. Hublot is always working on multiple different designs while striving to improve on the existing models. This is reflected in the responsibilities for each role, which Patrick Cibien describes as a trifecta of skills:   “Designer, draftsman, and project manager, a single person holds these three functions at Hublot. Six to thirteen years of seniority are common, experience is important in our sector.” About forty movement studies have been finalized so far, and the Hublot teams are already working on projects that will come out in two or three years, perhaps later. At only 42 years old, Hublot holds an unfettered dynamism and seeks to reinterpret technical watchmaking in a modern way, always looking towards the future. Hublot’s range of watches combines technical feats, efficient production processes, and desirability. The Maison constantly strives to develop a coherent yet innovative product line. So, it is a case of striking an ideal balance between a feasible product and an attractive one.    “The vitality of the factory and its ability to constantly offer modern products is pulling us in that direction.”  One or two years of preparation are necessary to create a mechanical movement, from the draft to the production process. This relatively quick turn-around time in the art of Filippo Fròsini The Luxury Industry Inside LVMH watchmaking is due to the Maison’s youth. “It is an art, a craft that has existed for 350 years and is constantly changing,” summarizes Emmanuel Missillier.   Why pursue a career in watchmaking? “I love the creative and technical side of design, doing different things, pushing innovation, and the fact that we are different,” explains Patrick Cibien who was born in a family of watchmakers. He considers being a watchmaker a big part of his life’s balance. Watchmaking is a career that is not often considered but is intensely in demand. Working with hand-made products carries a romantic aspect in comparison to a typical desk job and the necessary skills to become successful in this trade are some that many possess. Soft skills such as problem-solving, patience, and discipline paired with being creative and curious are beneficial for aspiring watchmakers. It is essential to think outside of the box and envision the future of a centuries-old profession. As a seasoned watchmaker, Emmanuel Missillier showcases these skills through his passion for mechanical techniques. He considers the Maison’s mission of taking watchmaking into the future as a unique asset:    “Offering innovations is a watchmaker’s daily role in the laboratory. A watch movement is a marvel of mechanics, some parts measuring a few tenths of a millimeter; at the end of the chain, they must interact with each other. This tiny world is a source of wonder. At Hublot, we work with state-of-the-art devices and tools to reinvent it.”  Leather Goods Design at Louis Vuitton From designing Louis Vuitton’s trunk collection to working on fashion pieces for the catwalk, Louis Vuitton's Senior Leather Goods Designer, Sigrid, gives the lowdown on her day-to-day activities, and on how every project starts with research and sketches. Creation of windows, events, and runway shows at Louis Vuitton, Discover the Visual Image Studio Faye and Ansel, could you please explain your role as the head of Louis Vuitton’s Visual Image Studio? The Visual Image Studio is responsible for all of Louis Vuitton’s store windows worldwide; there are currently 460 Louis Vuitton network windows all over the world and 14 Maisons or flagship stores. The Studio also ideates, creates, and produces other three-dimensional projects, including brand elements such as exhibitions, runway shows, temporary spaces, digital projects, and facades. How could you describe your creative process? Our process starts with collaboration and creative freedom: we are fortunate not to have rules regarding the creative process, so we approach all of our projects in different ways. For example, an idea may originate from something we find in a flea market or bookstore. We travel a lot [when we can], and we work closely with our communications, product, marketing, and digital as well as the local store teams along the design process, as this can enable projects to develop in a wider variety of directions. Ultimately, we aim to deliver work that is consistent and extremely sharp in its outcome so that, no matter where a client travels in the world, they have a qualitative and exciting experience with the brand. We work in a variety of ways that stimulate the creative and development process. Whether that is through the use of mood boards, which is a great way to move away from a blank page, through to modeling, illustration, and rapid prototyping, sometimes we will work three- dimensionally and occasionally move straight to a digital means of development, although ultimately, concepts are developed through discussions with our team. Filippo Fròsini The Luxury Industry Inside LVMH Which has been the most memorable of all your schemes for Louis Vuitton? We always tend to think of the most recent [or whatever we are currently working on] as the most exciting! However, thinking of past schemes, one of them has to be a scheme we produced in conjunction with Frank Gehry a few years ago. Gehry is someone whom we had always admired and was incredibly collaborative and very generous with his time, enthusiastic about the project, and welcomed us with open arms.  We spent a lot of time in his studio in Santa Monica in Los Angeles, which was the most inspiring and amazing place to be. How long does a scheme take to develop? We usually work about a year in advance of installation. Some schemes take a bit more time to develop, and others happen quite quickly. We find some projects take a little more time to develop, and other projects will go on hold until it is the right time for the brand. Timing is everything for a brand such as Louis Vuitton, although we are quite intuitive when it comes to knowing when a project feels right for us. Being a fashion company rather than purely Leather goods, we have to be a little more reactionary, therefore Fashion shows, which happen in October, will lead to a scheme for the following February, so the turnaround is only three months. Hence, we have to react to the themes of the shows twice a year. Why do you work collaboratively with various artists and designers in your projects? Not every brand or design studio has the opportunity to work with such incredible Artists and Designers. We have, of course, worked with famous Artists such as Yayoi Kusama, Jeff Koons, and Sol Lewitt who have incredible background stories. We do also work with much younger Artists and Designers too. It is so important for us to engage with external partners across the Arts, as it helps to inject a different kind of ‘feel’ to the brand. Do you think of the windows as the most important element of the store? I think we have been trying to design our way in and out of the windows. We know that they are important as windows are wonderful places to showcase emotions, engage clients, and make the city a bit more of an interesting place to be. We do play with them, we push the boundaries, and we love to dare! How do you manage to deliver such consistency across all your stores internationally? Every store is drawn digitally, and all of our designers work three-dimensionally with computer-aided design drawings so that all of our stores are modeled as digital space.  Every project we work on, whether a window or a façade, for example, has been produced digitally in advance, as not all stores are architecturally the same size and shape. Furthermore, we aim at working closely with local markets and we do our best to source the producers with the right know-how to produce our schemes locally. This network is growing constantly, yet we do have very high standards and, as we produce everything digitally in 3-D, there is no margin of error. We also split the stores into what we call Network stores and Maisons.  The network stores are the smaller stores and the Maisons are the sites such as the ones on the Champs Elysées Paris, 5th Avenue, New York, Plaza 66, Shanghai, New Bond Street, London, and Rodeo Drive, Beverly Hills, and then we have our store in Paris at Place Vendome which we treat slightly differently. This one is where we test ideas, where we might add a scheme to be tried out. How is sustainability at the heart of your design and production process? Louis Vuitton products are designed to last. At every stage of the creative process, we analyze the environmental impact of our creations throughout their entire life cycle, Filippo Fròsini The Luxury Industry Inside LVMH remember is that luxury brands no longer sell just their brand. In a new era of consumer expectations for shared values, brands are curating platforms to function as tastemakers to extend their brand halo into the wider cultural world. Consumers are interested in discovering new brands, unique storytelling, and cultivating tastes. So what you find is that brands are taking a step forward in how they are engaging their customers by offering not just their brand curation but a wider curation that fits within their brand universe.  For example, Stella McCartney reopened its London flagship store in April 2021, with a space that they called StellaCommunity Friends, to host a different local business each week, featuring beauty, art, music, food, live-streamed talks with special guests, and skincare treatments from Dr. Barbara Sturm and Face Gym, among others. The initiative was the start of a new global rollout, to turn its stores around the world into a hub for local businesses and consumers. Brands like Gentle Monster recently opened a new flagship store in Seoul, featuring products from other brands alongside its eyewear. This has resulted in their quickly becoming a local influencer hotspot.  Extending your brand to include new products only works if there is synergy and it adds value. Unlike Alibaba or Amazon, which sell everything, a luxury brand will have to be careful about the brands that they bring on.  A curated assortment is crucial! Experiences as a key lever to engage customers Consumers used to let brands do the driving. They would get into the back seat, and let the brands lead the way. Each brand had a story to tell, and by choosing one over another, consumers were effectively buying into one brand’s narrative and letting it speak on their behalf. A purchase was a form of self-expression. One might say you were what you bought. Today’s consumers, however, want to take the wheel. With a wealth of knowledge at their fingertips and the world at their feet, they are telling brands where they want to go and how they want to get there. Of course, luxury consumers are still looking for craftsmanship, functionality, and design. But, more than ever before, they are also looking for a shared experience with their favorite brands. This shift, as consumers spend less money on tangible things and more on experiences, represents a critical challenge for luxury brands. Their consumers are expecting more than just the best quality, so luxury brands will need to give them the experience they are looking for, whether online or in stores. In other words, what we call ‘experiential marketing’ has become a must. So here are the three keys to engaging today’s luxury consumers through experiential marketing. Speak to their hearts: delight them! People used to experience the world in superficial ways. Travel was about seeing many countries for short stays and getting snapshots of the top attractions. Luxury travelers tended to stay in five-star hotels that offered rather uniform, European-style service, regardless of the location. Shopping abroad often meant going into the same European boutiques found in most major metropolises around the globe. Today, millennials are driving major changes in the travel and retail arenas. They are searching for authenticity: a local, in- depth experience outside the beaten path. What we were seeing in pre-Covid travel is that millennials were more likely to stay at an Airbnb to experience the city like a local and search out foods, wines, and unique products made by local artisans. They want to be immersed in an experience that they will carry in their hearts for a lifetime… and the pandemic has contributed to accelerating this trend even further.  How does this translate to luxury retail? Filippo Fròsini The Luxury Industry Inside LVMH The DFS Department Store in Venice, Italy, offers us a striking example of experiential marketing that helps brands speak to consumers' hearts. In the restored and revitalized T Fondaco dei Tedeschi, one of the largest buildings in Venice, architects Rem Koolhaas and Jamie Fobert have meticulously respected Venice’s unique heritage while integrating touches of modernity. With an entire floor dedicated to exhibitions and events open to the public, they have created a new cultural hub for Venetians and tourists alike. You do not just go there to shop, you go to be immersed in an experience. In 2021, with the paradigm shift due to the pandemic, Fondaco has also reinvented itself via online channels that complement and, if necessary, replace the physical retail experience: in this way, customers can be delighted through new technologies that allow consultation and shopping experiences close to the physical ones. Art speaks to observers on an emotional level. Studies have found that exposure to art can even reduce stress! Art piques curiosity too: today’s consumer wants to learn and understand the artistic process. Art offers a powerful axis through which to speak to the hearts of consumers. Some brands have launched dedicated museums, like the Louis Vuitton Foundation in Paris, for example, which makes art an integral part of Louis Vuitton's brand storytelling. The Christian Dior Exhibit at the Musée des Arts Décoratifs offers another striking example of art taking a central place in a brand’s ecosystem and helps legitimize the founder as an artist in his own right.  Chaumet launched an exhibition within their own beautifully restored salons at 12 Place Vendome in Paris. The exhibition was titled ‘Joséphine et Napoléon, une histoire (extra)ordinaire’, and was set to celebrate their life together and to mark the bicentenary of the Emperor's death in 1821. The exhibition featured 150 pieces of jewelry, paintings, works of art, correspondence, and illustrated documents between the two lovers, who were known to write exquisite love letters to one another, yet again immersing us in the story of the Maison. But the luxury art union also unravels through other forms of collaboration and creation that go beyond museum exhibitions. Dior has repeatedly brought its creations to ballet, such as those for Philip Glass-composed ballet in Rome. Guerlain, on the other hand, inaugurated a few years ago a women's solidarity project that speaks through images, those of photography. ‘Femmes en regard’, in the series in May 2021, was a dialogue between conferences and photography exhibitions staged at their boutique on Avenue des Champs-Élysées in Paris, meant to give voice to the exhibited artists. All examples that reinforce the idea that art and luxury go hand-in-hand.  Speak to their minds – Entertain them! Storytelling is one of the best ways to engage consumers. Today’s consumers are hungry to learn about the history of each brand, their creative processes, and their artistic inspirations. They want to be engaged on an intellectual level but also entertained, both in- store and online. This growing desire translates to a burgeoning “content craze”. Content is indeed key; however, it also needs to be credible, authentic, unique, and fun to fully involve customers. Visual storytelling is particularly powerful. Images, for example, offer a shortcut to the brain: images are processed by the human brain 60,000 times faster than words and are more readily memorized. Videos are even more effective: people tend to spend five times more time looking at videos than static images. Plus, when you show a video, studies show that there is a much better recall of the brand. Even very short video content can be incredibly effective. Storytelling takes consumers on a journey of discovery, even if that journey is only a few seconds long. This immersive experience can be created through numerous tools. Christian Dior, for example, has experimented with the presentation of Haute Couture by creating short films that can engage the viewer and take them into another dimension. With ‘Le Mythe Dior’ (2020) or ‘Le Château du Tarot’ (2021), the Filippo Fròsini The Luxury Industry Inside LVMH clothes from the catwalks blend into a different universe, where the scenery absorbs and immerses the viewer completely, who is taken into the world of the Maison. Tied even more closely to the theme of entertainment, the Maison launched Dior Talks, a series of podcasts that explore the creative imaginations behind the brand's success and that give a voice to female artists, athletes, and actresses who have inspired Maria Grazia Chiuri with their courage, passion and talent, their embodiment of the bold empowerment Dior admires and who are linked to the Maison through collaborations and projects. In the wake of infotainment, the public is involved, entertained, and captured by a new dimension that opens the door to the brain behind the myth.  The same can be said for the phenomenon of gamification in a market that is growing by 20% annually, a phenomenon to which LVMH has responded promptly with the alliance between Louis Vuitton and Riot Games, where they partnered in the League of Legends game with branded collections for the characters. A branded entertainment for luxury consumers - a segment of consumers constantly looking for a new and fresh kind of experience. Speak to their senses- Immerse them! Finally, engaging today’s luxury consumers means stimulating all five senses. During a shopping experience, consumers should be invited to see the intricate detailing and feel the textures of fabrics. Smells and sounds are equally, if not more important. In fact, with all of the senses like sight, taste, hearing, and touch, people tend to think before they feel the relevant emotion. With scent, on the other hand, our brain tends to respond automatically, on a subconscious level. A hint of Dior J’adore perfume can bring the entire Dior brand identity to mind, and the effect is even more powerful when combined with a visual cue like a logo or signature product like an iconic handbag. A real innovation in this area comes from Guerlain, who developed  Mindscent, a fragrance finder powered by emotion sensors. With the help of technology including neuronal headsets and visual interfaces, customers are invited to a three-minute interactive experience guided by a beauty consultant. They get to find out which of the Maison’s 110 fragrances is their favorite, the perfume that brings them the most positive emotional reaction and best matches their personality. Several senses can also be combined at the same time for 360° stimulation, to create references and associations with sensory spheres that are not directly linked to the type of product, but that are meant to amplify the consumer's experience. Some of the brands like Fendi have been experimenting with permanent cafes or pop-up spaces serving cappuccinos and cocktails in brand-inspired interiors. In a world where everything becomes more experiential, a dinner or a coffee becomes an expression of the self. Places can satisfy high- end consumers' senses, making luxury brands true lifestyle brands. Beneath all of this is science: research published in the scientific journal shows that people remember about 35% of what they smell or taste, compared to 5% of what they see, 2% of what they hear, and 1% of what they touch. This type of sensory marketing should take its place within a seamless, omni-channeI experience: in physical stores, within online ecosystems, using a mobile app, or browsing through a catalog or on social media, clients should feel engaged with the brand identity on multiple levels. An excellent example of this is Sephora, which for years has been integrating technologies that are typically online with offline and vice versa. Just one recent example is Color IQ, which uses scientifically accurate scanning of skin colors to suggest suitable products for specific skin tones; or the app implemented in 2018, which uses augmented reality to digitally recreate your face and try out products. Sephora is also experimenting with shops that are smaller in size and physical offering, but with staff equipped with smartphones so customers can choose among a bigger range of products and pay directly.  Each piece of the consumer’s experience should be consistent, Filippo Fròsini The Luxury Industry Inside LVMH What do you think are the key stakes and challenges in a fast-changing context for your Maison? All along this unprecedented crisis, we have kept questioning ourselves: Are we meeting the new consumer expectations that emerged during quarantine?  Are we conveying the right messages, in the short-term and the  longer-term “new normal”? Are we doing our part to contribute to a better tomorrow? I don’t know if we have all the answers but here are some key priorities we have put on our roadmap: - Reinforce our fundamentals. The stronger the brand, the better we’ll withstand  our category’s  economic fluctuations. We have done less but better, crafted even more desirable products, and brought more exclusivity to products and experiences. In such an uncertain context, you have to loudly claim who you are and what you stand for. Simply, but loudly. This means having a positioned brand platform but also being very clear with what you believe in and what you’re committed to. We have therefore accelerated our commitment to “sustainability” through a complete program called Ecoyellow embracing production, merchandising, and packaging. - Find how to better engage with our consumers As previously mentioned, we don’t have our retail, so the permanent question is: how to directly engage with our consumers? How to know them better? How to talk to them directly? How to address them with bespoke messages and, simply said: how to build a relationship with them? - Accelerate our digital transformation The pandemic has marked the indisputable rise of e-business all over the world. Digital shopping habits built during the outbreak will remain. Knowing them better with a clear acceleration of our CRM plans, from data capture to bespoke & engaging consumer journeys, put our audience on a path to purchase that has become a top priority for us: Direct to Consumer will become key. - Find the right balance between legacy and innovation. When you take care of a brand with a 250-year-old history, you have a true responsibility: respect the legacy, transform it without damaging or being offensive, make it relevant in the time being, and make it last for the future without betraying its soul. Sneak peek of Brand Management at Sephora. Four key foundations: Innovation, Curation, Customer Obsession, Celebration Steve, could you please introduce yourself and your career path at LVMH, and particularly your role today at Sephora? I grew up in France and moved to Boston in the United States to get an MBA never coming back. After working in New York for a year, I got recruited by Nike where I held several different positions over 21 years in product and brand management before becoming the general manager for their biggest performance category, the running division. I then moved to the North Face to lead their global product creation and brand marketing team. 18 months ago I had the incredible opportunity to join Sephora. Although I spent most of my career in sports and lifestyle, I was no stranger to Sephora as I spent years studying the Sephora model and it consistently came up as one of the best-in-class retail destinations during all my global market research. The LVMH group and its unique ability to authentically Filippo Fròsini The Luxury Industry Inside LVMH grow brands, staying true to their DNA while expanding its reach and business has always been a big source of inspiration to me and when the right opportunity presented itself, I did not hesitate to move back to France, after over 25 years spent between the US and the Netherlands (Nike European’s headquarters). At Sephora, I am the global Chief Brand Officer, a newly created role 18 months ago with the ambition to keep elevating our brand, accelerate our membership program, fuel our omnichannel experiences, and leverage the incredible work that our teams do around the world to accelerate innovation and efficiencies. I also get the opportunity to lead our Sephora collection team, Sephora’s private label which has been core to the brand’s DNA since its very beginning. What is your vision of brand management in the Luxury Industry, and then particularly at Sephora? Brand management for me always starts by understanding who you are, and what makes you unique and relevant for consumers to keep creating distinction and fuel your growth. At Sephora, our brand has been founded on 4 key pillars. - Innovation Sephora brought a boundary-pushing mindset to disrupt the status quo, and we have continued to break conventions ever since. Mr Mandonnaud (our founder), designed a new model for beauty retail by creating a fresh shopping concept that transcended brands. He went to court to defend his revolutionary approach of organizing the store by “what’s important”. Today innovation means pushing our omnichannel capabilities, making it easy for consumers to shop with us both online and in-store, whenever, however they want it. It is about delivering unique services online and in-store to help our clients find the best products or routine that works for their needs and make it easy for them to select and buy the products of their liking. It is about leveraging technology to accelerate personalization at scale. It is also about continuing to reinvent the future of our store concept, design, and experiences. - Curation We constantly strive to raise the bar.  Our selection of the best in beauty and beyond remains unparalleled. We are a destination for discovery, from iconic classics to niche favorites, Sephora is best known for cutting-edge curation. We’ve been seen as a tastemaker and trusted leader in beauty for more than 50 years. Curation continues to be a unique competitive advantage of ours, constantly incubating and launching new brands across the world, setting new sustainability standards & driving more diverse brands to reach consumers around the world. Sephora is the only global prestige beauty retailer in the world which gives us a unique opportunity to introduce and scale brands across the world. In addition, we have our brand, Sephora collection which helps us welcome consumers into the world of beauty, and try and test new products and categories with the product quality and performance expected at Sephora. - Customer Obsession Dominique Mandonnaud was passionate about the shopping experience, making every client feel like a star with a meticulously designed layout to increase visibility and space. We have the largest beauty community in the world and have the incredible opportunity to keep serving and delighting them in the most welcoming and personal way. Through our network of stores, sites, apps, and loyalty memberships, we have access to an incredible amount of information not only to serve our consumers in the most personal way but also to support and guide our brand partners to be the most effective possible with their communication objectives. We always like to say that one of our secret weapons is the Filippo Fròsini The Luxury Industry Inside LVMH power of our community and particularly of our Beauty Advisors who are serving consumers every day when they step into our stores or contact us online. Their passion, commitment, and expertise are a unique competitive advantage in our industry. - Celebration Sephora surprises and delights through our entertaining, unforgettable, and sensorial beauty environment where customers enjoy exploring and expressing themselves in a supportive community. This revolutionary concept invited clients to touch, try, and browse freely in an immersive environment. The intention was to create a store people would want to visit simply if they had spare time in their day. Today more than ever, we are working to make sure that everyone feels welcome and celebrated at Sephora. We know that the luxury and beauty industry can be intimidating and we make it a priority to always make everyone feel welcome, appreciated, and seen. It is an ambitious objective, but one that is core to our DNA and our brand values. Our Sephora events are another great example of the unique experiences that we craft for our communities, bring unique brand & product experiences, master classes of the best in the industry, and product trials for media, influencers and consumers alike to discover, explore, and play with the latest and greatest in the world of beauty. In 2021, we have entered for the first time Interbrand’s Best Global Brands, the ranking of the 100 most powerful brands worldwide. We were the only new entrant, and the only multi-brand retailer in the ranking. This is a very strong recognition of the power of our Brand. This was a recognition of the hard work of our 46,000 colleagues, the amazing experience you get all along the omnichannel journey, but also our powerful commitments to society, in particular for a more diverse and inclusive world. And I believe it is just the beginning. What are the key stakes and challenges for Sephora?  The world is flat, consumer expectations keep on rising around inclusion, diversity, and sustainability. The influencer model is shifting on its head, with micro influencers’ impact rising more than ever and Gen Z is setting new rules for an industry that they are about to lead. To become even more attractive and successful, we have to: - continue to innovate and lead on the 4 pillars that we outlined - leverage the power of our community - elevate our brand voice and values while accelerating our services and personalisation, are key priorities to keep delivering on what we are known for - be the most fun destination for our customers to explore, discover, and try the latest and best in beauty to empower the extraordinary in every one of us. MODULO 4 Luxury Retail: Today and tomorrow. Introduction to key changes and challenges impacting retail at Sephora and in the Luxury Industry 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 different needs, expectations and attitudes of new segments of consumers (traditional vs nontraditional luxury shoppers, Filippo Fròsini The Luxury Industry Inside LVMH Retail is seen as a new purpose in the brand ecosystem What is the purpose of Retail today? In a context that evolved from omnichannel, where brands were to be present in different channels such as Retail, Wholesale, Website, Social media, Mobile, etc…, towards convergence where all these channels are aiming for the same ultimate goal of connecting with customers and being available to them, the retail environment has to redefine itself and its purpose in constant and complementary interaction with the digital era. This context has shown the critical role retail plays when it comes to creating and fostering connections with customers. Consequently, the purpose of retail is to provide a unique opportunity to: 1. Magnify the product and convey its unique performance. In Luxury, the product is precious and is to be treated as such. Its performance is celebrated. 2. Second, celebrating the brand with a scenario at a global level, which is then reinterpreted in each store with a unique and specific version of this scenario. It leads to creating the entertaining variety that customers are seeking. Why is this essential?  Because brands need to create overall coherence for their customers who increasingly visit their stores in multiple countries and cities. Second, because of variety, which is essential in providing customers with the opportunity to have a differentiated experience within the brand. 3. Third, retail also needs to nurture the client’s emotions and for this, it requires identifying characteristics such as senses that will particularly ignite relevant emotions for the brand.  The experience in stores can generate a unique direct emotional relationship by moving from a product (often functional) focus in the store to an experience (often emotional) focus. In conclusion, the purpose of retail today has to be considered in a very holistic manner in relationship with customer journeys. From creating awareness to interest and desire, the retail environment may have multiple functions for the brand, beyond the act of purchase, including in the post-purchase phase of the customer journey. If we consider luxury cars, for instance, increasingly brands develop retail concepts within cities, highly relying on digital tools for space constraints. Beyond sales, these new spaces aim at generating interest in the brand and its products, or even awareness. Key success factors of a customer experience Anne Michaud, Associate Dean for Education Track and Pedagogy and the Director of the LVMH Academic Chair at HEC Paris, shares her research on the features of successful immersive experiences. In my research, I asked customers to describe their great experiences with luxury brands. Analyzing their feedback led me to identify five key success factors. To remember them, I am going to walk you through what I call the “CRIME” framework. In this framework, the C stands for Customised, 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. First, let’s look at the feature “Customised” 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 Filippo Fròsini The Luxury Industry Inside LVMH well. Finally, experience customisation is about fitting the experience to the identified client segment: whether by adapting the same experience concept to various segments or by creating diverse experiences. What about “Relevant”? Experiences require proprietary inspiration and 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 staff members, and increasingly with bots as Artificial Intelligence develops. Experiences should involve the brand in customers’ behavior. 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 guidebooks. Experiences are of course also shared by clients on social networks, increasingly organised 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, and feature products in an exceptional context. For instance, Veuve Clicquot at Hotel du Marc in Reims. Experience should also “educate” the customers, and bring them interesting content so that they get more knowledgeable about the Maison and its heritage. Dior explains the origin of the rose de Granville experientially. 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. The floor is yours: experiment with your own customer experience Before proceeding with your immersion into the world of retail and to key topics such as our Maisons' customer experiences, omnichannel strategies, the role of data, and digital innovations, let's first deep dive into a real customer experience: Yours! Filippo Fròsini The Luxury Industry Inside LVMH What is the Client Experience? The Client Experience refers to a fundamental element in a luxury environment: the interaction between the client and the brand across multiple points of contact. The Maison/Brand DNA should be reflected in all phases and touchpoints of the Client Journey to succeed in engaging a long-term relationship with each client. Mystery shopping exercise → In this exercise, often referred to as “Mystery Shopping”, we encourage you to pick an LVMH Maison of your choice, and experience at least two touchpoints of the Client Journey, whether via the online store or a brick-and-mortar boutique. We encourage you to experience these multiple points of contact as if you were a potential customer.  It is a very personal experience, which no one will experience in the same way because we, as individuals, seek and are sensitive to different things.  First step: The online presence Trust your instinct and navigate on the Maison's website and social media pages, discover the storytelling, the product offering, the ease of navigation, create a wishlist of potential products, and check whether there are stores located nearby that you might be able to visit.   Here is a set of questions you may reflect upon:  1. Is the navigation smooth? 2. What have I learned about the brand? 3. Have I discovered something unexpected, or surprising? 4. Was it easy to find the product selection that I was looking for? Was the information about the product's availability, price, description, and styling clear to me?  5. How simple was it to find a store location? What are the services proposed? 6. Overall, do I feel engaged and want to further connect to the brand? Second step: The brick-and-mortar boutique Depending on where you are located, it is a worthwhile exercise to visit several stores of the same brand, immerse yourself within different store environments, and notice whether you recognize common features or not. Imagine a scenario before you visit the store: are you looking for a gift? Or a product for yourself? Have you already decided what type of product you are looking for? Do you have a budget in mind? Try to imagine the personae and scenario you want to play. 1. Play with the customer, engage with the sales staff, and show interest in the products 2. Make sure you observe the interactions generated with the sales staff and, overall, the atmosphere in the store 3. Spend at least 20 minutes in each boutique 4. Repeat this exercise in the other stores   During your visits to the stores, we invite you to focus on the following key elements:             THE STORE ENVIRONMENT This refers to the feeling of being welcome and comfortable while in the store. Consider the environment – the sales team demeanor, the sensory and visual journey: branding, product, merchandising…. How did you feel in the context of the store atmosphere? In particular, you may think about the following points of reflection:  - Filippo Fròsini The Luxury Industry Inside 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, and 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 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 different 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 different 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 effective 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 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 undergoes a monthly evaluation by our internal Quality team at LVMH Client Services and with the Maison. Last but not least, our training also focuses on a luxury-oriented approach to remote customer service. How do you measure the success of your client service operations? High responsiveness is one of our highest priorities: - 95% of the calls for Parfums Christian Dior are handled in under 30 seconds, - 95% of emails are answered within 24 hours, - 100% of Livechat queries find an answer within 4 hours, - The Livechat team has a 30-second response rate for first messages and a 10-second response rate for follow-up messages. Most Maisons closely follow the Net Promoter Score, which indicates the probability of customers recommending a product, brand, or service. Data also plays an important role in Filippo Fròsini The Luxury Industry Inside LVMH measuring success. All our customer contacts are filtered through our Salesforce Service Cloud tool. We know how many times and why the customers are communicating with us. Over 400,000 inbound interactions inform our process optimizations, aiming for a better ROI. This data is shared with the Maisons to enrich their customer knowledge as well as our Marketing Operations teams. Lastly, this emphasis on analytics enables us to play a critical role in sales: LVMH Client Services generated around 3 million euros worth of sales for the Maisons in 2021 with an average basket higher than that of the website. So, what does customer success look like? Do you have a story to share with us? I vividly remember a beautiful sale that started in late December 2021. A customer had spotted a stunning dress during Fashion Week and wanted to wear it at her daughter’s wedding. She was looking for a one-of-a-kind piece with bright colors. Vincent, one of our advisors, found the outfit for her on Vogue Runway and supported her remotely throughout the whole process, spending time on the telephone with her ironing out various details, from the dress fabric to finding a fitting appointment in a boutique at her convenience. Finally, on March 26th she was able to try the dress on at the Maison’s boutique in Paris so that the necessary alterations could be made in time for the big day. This was a beautifully executed sale of 14,000 euros for the Maison GIVENCHY. Do you have any advice for someone who would like to work in Client Services? Working in Client services means communicating in different languages and through different channels, finding a solution to any customer’s question, and all of that while ensuring alignment with the luxury and Maisons’ DNA and tone of voice. So, the key qualities to nurture are adaptability and reactivity. We are currently recruiting multilingual staff for our Maisons with previous experience in the luxury sector, either as a sales advisor in a boutique or within a client service team, so come craft the future with us Fendi's Omnichannel Strategy, providing clients with an unequaled remote shopping experience During a webinar with ESSEC Business School students, Lisa Calatroni, Worldwide Digital, Omnichannel & Go to Market Director at Fendi described the various digital tools and strategies employed to provide clients with an unequaled remote shopping experience before, during, and after the pandemic, after which groups of students made suggestions to optimize the omnichannel performance. This article is based on this insightful encounter between the fresh minds of tomorrow and an experienced executive in digital operations. The pillars of Fendi’s omnichannel strategy. As Fendi experienced a strong shift towards remote client interactions, even before COVID-19 but enhanced over the past two years, the Maison invested in developments that would last in the long term and enabled sales operations in a client-centric frame of mind.  “With the pandemic, we had to switch from a tourism-based clientele and repatriate customers to stores in their home countries, both from a client services and storytelling perspective,” recounts Lisa Calatroni.  Very early on in the fashion industry, Fendi decided to launch online sales manage the digital operations, as well as create an Omnichannel department before Covid-19, and launch a new client database merging online and brick-and-mortar customers and prospects. These investments gave the Maison full visibility and access to their stocks, whether online or offline and flexibility in upgrading retail operations. This meant that the client, the Filippo Fròsini The Luxury Industry Inside LVMH product, and the client advisor could be located in the same room or three different places, and yet be able to generate a purchase, making sure no sales opportunity would be missed.  “The aim is to serve our clients where they want, how they want, and when they want.” summarizes Lisa Calatroni. Augmented and smart in-store service. Information travels faster when communication channels are optimized. The Maison understood this very acutely. Fendi equipped client advisors with a clienteling application to keep staff 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 database based on Salesforce, which helped design offline and online clienteling campaigns based on data analysis and predictive algorithms. This serves client conversion, upgrade, and retention goals and drives traffic to the stores and e-commerce sites. The Maison took a cue from the pandemic to strengthen remote client experience by rolling out a fitting room designed for remote experience thanks to high-quality cameras that can zoom into specific details of the products. Attention to lighting was key to recreating 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 allowing the client 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 different 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. 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 has yet to do. More than one student presentation broached the idea of developing a signature mobile app. While it may offer 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, to fast-track conversion rates. As social media stands as 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.