Luxury convalescence: fast-forwarding
In this particular context, MAD undertook a detailed report on the strategic challenges of Luxury Maisons post-Covid-19. The study “Luxury convalescence: fast-forwarding” will be released in several stages, every two weeks, from the end of May to mid-July 2020.
The first part of our report “2020 – Managing the unmanageable, from economic shakedown to reinvented clients”, released on 19 May, shared the impacts of the current crisis and the financial profile of 2020 for the Luxury Maisons. It also identified the acceleration of 4 existing trends shaping the new rules of the game for the whole Industry: the growth of the Chinese domestic Luxury market, the need to reclaim the local customers, the rise of the “No-Channel” and the urge for an impactful Brand Purpose.
Part 2 – Category matters: from Watches & Jewelry to Beauty
The second part of the study focuses on two very different categories, at both ends of the spectrum of the Luxury Industry, yet a source of mutual inspiration: Watches & Jewelry and Beauty. Two industries whose Business Model is still strongly based on Wholesale, and where the strategies of “Direct-To-Consumer” are crucial.
We will first analyze the opportunity for Watches & Jewelry to rethink customer engagement through a clarified role of the distribution channels, a new balance in the product offer, a re-invented treatment of the VICs and sharpened online touchpoints.
We will then look at the Beauty ecosystem and its challenges for skincare, make-up and fragrances. Distribution channels, consumer trends, rising stars and the critical role of digital will be at the heart of the future of Beauty.
For both categories the period ahead will create a strong questioning, pushing to adjust and sometimes rethink the strategies. For Beauty, it will most probably lead to a consolidation around largest players.