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 May 19th, 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.
In the second part published on June 3rd, we analyzed two very different categories, at both ends of the Luxury Industry spectrum, yet a source of mutual inspiration – Category matters: from Watches & Jewelry to Beauty. Two industries whose Business Model is still strongly based on Wholesale, and where the strategies of “Direct-To-Consumer” are crucial.
Part 3 – Category matters: Fashion & Accessories, Travel Retail, Wine & Spirits
In this 3rd chapter, we continue to explore the Luxury Industry, focusing on three sectors facing specific challenges.
Let’s begin our journey by analyzing the outlook for the Fashion and Accessories industry, attempting to conciliate a necessary reduction of collections frequency and its inner quest for novelty. Fashion players will need to address new challenges regarding networks optimization and pricing to overcome the crisis. The (re)conquest of the local customer will rely on inspiring experiences, a coherent and authentic “Brand Purpose” as well as a digitalized “customer-centric” approach.
Stopover in Travel Retail – proclaimed 6th continent for a long time and now the big loser of the current crisis. To survive, the sector will have to adapt to new travel behavioral trends. The regional flows polarization, the potential upheaval of power balance, and the customers’ eagerness for experiential treatment will be the new growth levers.
Let’s end our walk in the “Land of Luxury” with the Wines and Spirits sector. We will share the specificities of an industry, uniquely positioned within the Luxury ecosystem, and of the Maisons’ strategies to resist the Covid-19 crisis: strengthening the Brand Equity, catching up with digital transformation and facing the challenge of “premiumization”, while getting closer to end customers.
Within these industries, the period ahead will inevitably bring profound and irreversible changes.