Luxury Institute News

July 10, 2015

Tesla Hires Ex-Burberry Executive to Lead North American Sales

Bloomberg Business
By: Dana Hull
July 10th, 2015

Tesla Motors Inc. has hired former Burberry senior vice president Ganesh Srivats, adding a sales executive to help the electric-car maker extend its reputation for automotive luxury to an increasingly global audience.
Srivats, whose position as vice president for North American sales was confirmed Thursday by the company, will help Tesla deepen its already formidable brand into a premium lifestyle experience to go with its high-tech image, taking a cue from the kind of marketing BMW, Porsche and Ferrari have done.

“This makes all the sense in the world,” said Scott Galloway, a professor of marketing at New York University’s Stern School of Business, in a phone interview. “Tesla is not an automobile company, it’s a luxury company.”
Srivats joins the automaker from a British fashion house known for its heritage plaid cashmere scarf and trench coats as well as digital savvy. Apple Inc. hired former Burberry Group Plc Chief Executive Officer Angela Ahrendts as head of its retail operations in 2013.

The new Tesla executive held strategy and retail posts for Burberry starting in 2009 and most recently was senior vice president for retail in the Americas, according to his LinkedIn profile.

The North American sales job is a newly filled position for Tesla. The Palo Alto, California-based company said in March that it was reassigning Jerome Guillen, who was vice president of global sales and service, to a role focused on delivery and long-term customer care and would hire new executives to lead the sales operations by region.

Sales Target

Tesla plans to introduce its Model X SUV late in this quarter and says it will sell 55,000 vehicles worldwide this year. The automaker ended the first half with 21,552, about 40 percent of the target.
Tesla doesn’t have dealerships and sells its products directly to consumers via stores and galleries. It doesn’t pay for traditional advertising and relies heavily on free media and word-of-mouth among its customers, many of them tech-savvy early adopters.

“Srivats absolutely brings a client-centric approach to doing business,” said Milton Padraza, chief executive officer of the Luxury Institute, in a phone interview. “It’s about long-term relationships, not a transaction. Burberry is the master of client relationships.”

Digital Innovation

Burberry was one of the first luxury brands to embrace digital innovation, from live-streaming runway shows to launching on Periscope. The London-based company has had a makeover in the past five years, moving from conservative high-end fashion to haute couture, said Ken Harris, managing partner at Cadent Consulting Group in Chicago, which advises consumer and retail companies.

“If Tesla is thinking that they are selling a lifestyle and a way of thinking, then someone from Burberry could be the right choice,” Harris said in a phone interview. “Burberry gets lifestyle.”
The 159-year-old company with a “distinctly British attitude” has more than 4 million followers on Twitter and is led by Christopher Bailey, a 44-year-old designer who had been the company’s chief creative officer.

High-end automakers like to push expensive clothing and accessories to boost revenue and deepen their relationships with affluent customers. Besides T-shirts and messenger bags, Tesla has the Tesla Design Collection, which includes a $300 tote bag, $100 sheepskin leather driving gloves and a $40 iPhone sleeve.

Similarly, Porsche sells watches, luggage and other accessories under the Porsche Design brand. Ferrari also offers clothing, shoes and even a cigar box under its brand name. BMW and its Mini brand also sell pricey accouterments.

Source: http://www.bloomberg.com/news/articles/2015-07-10/tesla-hires-ex-burberry-executive-to-lead-north-american-sales

June 30, 2015

Online shopping? Wealthy still like going to store

Bloomberg News
June 29, 2015

Luxury Institute surveyed 1,600 wealthy people about shopping habits. They earn at least $150,000 a year with an average net worth of $2.9 million.

NEW YORK — Even as shoppers flock to the Internet to get the skinny on everything they want to buy, many wealthy patrons still prefer the traditional method. They want to go to shops, peruse the racks, and have a salesperson help them pick out the perfect item, according to a new survey.

Research and advisory firm the Luxury Institute surveyed 1,600 wealthy people about their shopping habits. The men and women earn at least $150,000 a year and boast an average net worth of $2.9 million. The study found that very few affluent shoppers research exactly what they want to buy, then go out and make the purchase. Instead, they’d rather walk around a store and see things up close. Plus, many insist on guidance from living, breathing humans.

“Luxury experts and luxury executives have bought into the myth that, whether its millennials or men or women, they’ve done so much research on the Internet that they can no longer be influenced in the store,” says Milton Pedraza, chief executive of the Luxury Institute. “This demonstrates the tremendous opportunity to create relationships based on expertise, trust, and generosity in the store.”

For instance, when buying jewelry, nearly half of women don’t do any research whatsoever before heading to the store, preferring to gaze at all the shiny baubles in glass cases and make their decisions on the spot. This number’s even higher when it comes to fashion accessories, with 60 per cent of women opting to forego online research before snagging a pricey handbag.

The only exceptions are men who want to buy a watch, with 28 per cent selecting the item beforehand, and women who are purchasing beauty products, at 26 per cent. That’s because buyers of pricey watches are often aficionados wholly familiar with the world of fancy timepieces, while makeup purchases usually occur to replenish items that were used up.

Though visiting stores without help is the most popular method of researching what to buy, many affluent shoppers prefer the guided path, with aid from a salesperson. Men especially want help picking out watches and jewelry, while women are most likely to want an associate’s expertise on beauty products. Perhaps those workers behind the counter may stay relevant after all.

As for salespeople, the perpetual quest to “sell” the customer is a model that no longer works, says Pedraza. Shoppers go to them for knowledge and guidance, not having products shoved in their faces. For this, luxury retailers must train workers to build real, human relationships over time.

“If you earn their trust, you earn the right to contact them again,” he says.

Source: http://www.thestar.com/business/2015/06/29/online-shopping-wealthy-still-like-going-to-store.html

 

Wealthy People Still Love Shopping the Old-School Way

Bloomberg Business
By: Kim Bhasin
June 29, 2015

Even as shoppers flock to the the Internet to get the skinny on everything they want to buy, many wealthy patrons still prefer the traditional method. They want to go to shops, peruse the racks, and have a salesperson help them pick out the perfect item, according to a new survey.

Research and advisory firm the Luxury Institute surveyed 1,600 wealthy people about their shopping habits. The men and women earn at least $150,000 a year and boast an average net worth of $2.9 million. The study found that very few affluent shoppers research exactly what they want to buy, then go out and make the purchase. Instead, they’d rather walk around a store and see things up close. Plus, many insist on guidance from living, breathing humans.

“Luxury experts and luxury executives have bought into the myth that, whether its millennials or men or women, they’ve done so much research on the Internet that they can no longer be influenced in the store,” says Milton Pedraza, chief executive of the Luxury Institute. “This demonstrates the tremendous opportunity to create relationships based on expertise, trust, and generosity in the store.”

For instance, when buying jewelry, nearly half of women don’t do any research whatsoever before heading to the store, preferring to gaze at all the shiny baubles in glass cases and make their decisions on the spot. This number’s even higher when it comes to fashion accessories, with 60 percent of women opting to forgo online research before snagging a pricey handbag.

The only exceptions are men who want to buy a watch, with 28 percent selecting the specific item beforehand, and women who are purchasing beauty products, at 26 percent. That’s because buyers of expensive watches are often aficionados wholly familiar with the world of fancy timepieces, while makeup purchases usually occur to replenish items that were used up.

Though visiting stores without help is the most popular method of researching what to buy, many affluent shoppers prefer the guided path, with aid from a salesperson. Men especially want help picking out watches and jewelry, while women are most likely to want an associate’s expertise on beauty products. Perhaps those workers behind the counter may stay relevant after all.

For salespeople, the perpetual quest to “sell” the customer is a model that no longer works, says Pedraza. Shoppers go to them for knowledge and guidance, not having products shoved in their faces. For this, luxury retailers must train workers to build real, human relationships over time.

“If you earn their trust, you earn the right to contact them again,” he says.

Source: goo.gl/nwbDcz

June 25, 2015

The unique way women shop luxury cosmetics

Cosmetics Design
By: Deanna Utroske
June 25, 2015

Luxury Institute, a New-York-based global luxury research provider, looked into buying practices of wealthy consumers and discovered that how affluent women shop beauty is exceptional.

Interestingly enough the institute saw fit to ask only women about their personal care shopping habits. All survey participants were questioned about buying apparel, shoes, and accessories in general as well as particularly about jewelry and watches.  While , only “wealthy women were…asked about beauty products and handbags”, according to a media release from the institute announcing the study findings.

The study compiles survey replies from respondents earning, on average, $289,000 annually and with an average net worth of $2,9m.

Personal

Women in this consumer group tend to depend on the in-store experience to make purchasing decisions, notes the Luxury Institute.

The survey findings show, however, that a fair number of such women would rather not have the advice of sales staff. Only about “one-fifth (19%) of wealthy women prefer to learn about products in-store with a sales associate’s help. “For cosmetics shoppers this number jumps to 29%.

Thus, “For wealthy women, visiting stores and looking at displays without help is the best method of finding out about new products in all luxury categories.”

Personnel

Nonetheless, sales associates and the in-store creative and management team have a real relevance for luxury brands.

With multiple points of information, wealthy consumers have become very say shoppers, but our findings show that decisions,” says Milton Pedraza, Luxury Institute CEO.

Building rapport and trust with luxury shoppers can make a difference. Pedraza notes that, “with proper training in relationship building, along with incentives to produce, store personnel can provide a significant boost to sales across luxury categories.”

Digital

Online and mobile resources figure quit prominently in product discovery for affluent women. And fortunately for luxury cosmetic brands and beauty retailers, these shoppers are reliably visiting their sites for product information.

Browsing a store website is the second-most preferred method of shopping, with 32% of wealthy women reporting this is how they discover new products, while 23% say they do the same at manufacturer’s websites,” finds the Luxury Institute.

 

Source : http://www.cosmeticsdesign.com/Business-Financial/The-unique-way-women-shop-luxury-cosmetics?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright

 

June 24, 2015

7 Insights Into Today’s Jewelry Shoppers

JCK Magazine
By: Rob Bates
June 23, 2015

Even shoppers used to shopping online can be turned into loyal brick-and-mortar customers with the right experience, according to a new survey of high-income shoppers from the Luxury Institute.

Milton Pedraza, CEO of the Luxury Institute, says that retailers today need to focus on building relationships—both on- and offline. His survey quizzed consumers with an average income of $289,000, and $2.9 million average net worth.

Among its findings:

—Women still prefer to browse for jewelry at stores.

Forty-nine percent of female respondents prefer to shop in store before deciding what jewelry to buy, and are more likely to enter stores without a sense of what they want or looking online.

“Woman are still very open to having an experience,” says Pedraza. “Jewelry isn’t a commodity product. Jewelry and watches are more experiential than other luxury goods. Consumers may research online but they still want to experience your store. They place great value in the discovery process.

—That’s less true for men.

By contrast, only 21 percent of men relied primarily on in-store shopping to make a decision. Twenty-eight percent of watch-buying men said they entered stores knowing precisely what to buy. Still, 37 percent of men wanted assistance from sales staff for jewelry purchases; 33 percent felt the same way about watches. But 38 percent preferred to get the information online.

“Most men don’t enjoy the experience of buying in a jewelry store,” says Pedraza. “They are more tightly focused and less willing to change. Though that is mostly older men; I’d say young men are more likely to change their mind. Of course those are stereotypes but they are still valid.”

—The in-store experience is more critical than ever.

“Customers enjoy the in-store experience, but we have so many retailers that are drone-like and similar,” he says. “Retailers have to be Disney. A long time ago there were just amusement parks and then Disney reinvented them. Luxury retailers have to reinvent themselves.”

That means stocking unique products and upgrading your associates, plus trying to make your store look and seem different. He points to Warby Parker’s innovative new eyeglass shops, whose sales per square foot now rival Tiffany’s, as an example.

—A key part of your store experience: Your store associates.

One quarter of women shoppers say they want a sales associate to help them purchase. But the quality of the associate makes the difference, Pedraza says.

“The industry is hiring people as opposed to selecting people,” he says. “We need to help associates to build skills, and compensate them for the long-term. I was talking to someone and he was complaining his people leave. I said of course they leave, they don’t feel respected, they don’t feel they are valued. If you pay a little extra you can have them really engage with customers and help build the brand.”

—Customers want great service, regardless of channel.

“You can’t stop people from going online,” he says. “It’s all about building relationships, no matter what the channel is. It’s making people feel special. You can create wonderful long distance relationships with online shoppers, the same way we do in our personal lives.”

—There are no “tricks” to servicing Millennails.

“We say millennials are so different,” Pedraza says. “But increasingly they are the same, especially as they get into their 30s, and they have kids and aging parents.

“So it’s not as much about treating millenials differently,” he adds. “It’s about treating them as individuals. It’s about digging deep. I always ask millennials if they want sales associates to help them and they do. But they mostly see them as unprepared and not trustworthy.”

—Price is not the most important factor.

“There is still a tremendous opportunity not to sell on discount,” Pedraza says, “but to sell on value, craftsmanship, design, a story, and the engagement with another human being. All of those elements are not about price. There is still a tremendous opportunity for stores to really forge relationships with consumers.”

Source: http://www.jckonline.com/2015/06/23/7-insights-todays-jewelry-shoppers

June 19, 2015

Will nearly 3M Apple Watches sold hurt Swiss watch industry? Meet some non-worriers

New York Business Journal
By: Teresa Novellino
June 18, 2015

It was meant to be a “debate “over whether the Apple Watch would impact the Swiss watch industry, but even the futurist on a Watch Collectors’ Roundtable panel assembled at the Aaron Faber Gallery in New York confessed to being a Rolex man.

Jason Alan Snyder, chief technology officer at global branding agency Momentum Worldwide, says he has tested out many versions of wearable tech, but tells time with a Swiss-made Rolex Datejust his father gave him which, combined with his smartphone screen, he considers to be “ample” for his day-to-day activities.

“The sort of capital you derive from wearing a timepiece is different from the sort of capital you derive from wearing a smartwatch.” Snyder said Tuesday night during a roundtable at the midtown Manhattan jewelry and vintage watch gallery. “Right now it’s the difference between luxury and utility and they’re very different ideas.”

According to a report just out today from Slice Intelligence, utility is selling to the tune of 2.8 million Apple Watches sold so far, with multiple bands being a popular add-on. Apple itself has never shared sales results on the watches, but yesterday it began allowing customers to actually buy the watches in store through a “reserve and pickup” service versus ordering them online.

The roundtable for watch enthusiasts, moderated by Randy Brandoff, founder and CEO of luxury watch subscription site Eleven James, was assembled to hash out concerns among collectors, retailers and others in the watch industry about the disruptive new entrant in a watch industry dominated by traditional players. Before the AppleWatch was released, the company’s design chief Jony Ive reportedly predicted the Apple Watch would mean trouble for the Swiss watch industry. Indeed, Apple stole a marketing page from the industry when stars like Beyoncé were shown wearing them. She posted a selfie of the gold version on Instagram.

Snyder pointed out that the functionality of the Apple Watch, particularly its ability to let people pay for items without out a credit card via Apple Pay would appeal to consumers seeking convenience. The health-related functionality is another lure. Wearables, in general, will evolve to become more incorporated in our lives, he said.

“I think the things we wear will become a part of ourselves in ways we can’t imagine,” he said. “The form it is taking now is a wristwatch, but it could also be something else, like a [miniaturized computer screen that you wear as a] contact in your eye.”

Some brands exhibiting in Switzerland at this year’s Baselworld, the world’s largest watch and jewelry show, met the Apple Watch challenge by saying they would be rolling out their own smartwatches. TAG Heuer, for instance, is partnering with Google and Intel on its version.

“I think it’s a huge over reaction, I don’t think there’s a place for it,” said Jeffrey Hess, CEO of Ball Watch USA. “There are a lot of watch brands that are afraid to not be on the boat.”

Hess, who ran an ad for his watches in Wired magazine, said he got a great response, which he interprets as proof positive that tech geeks like luxury watches too.

Others on the panel seemed similarly skeptical that the Apple Watch would actually eat into their sales. Among them was the roundtable’s host Edward Faber, co-owner of Aaron Faber Gallery, who said Millennial customers seek out the unique and collectible vintage mechanical watches that he sells.

“People want to distinguish themselves whether they’re in a business environment or social setting,” said Faber, author of American Wristwatches: Five Decades of Style and Design. “Soon, the Apple Watch will be everywhere but the luxury watch will continue to stand out.”

Milton Pedraza, chief executive officer and founder of the Luxury Institute, said he wouldn’t “discount the possibility of a surge,” in sales for the Apple Watch, but the first version didn’t seem like something that could compete with a Swiss timepiece. He sees it more a subcategory within the industry.

“The Apple Watch will evolve into something compelling. Today, it is not,” Pedraza said. He also predicted that Millennials, as they age, would become watch collectors, just like their Baby Boomer parents, even if they also own a smartwatch.

“It won’t be this or that, it will be this and that,” Pedraza said. “I see an opportunity to make this luxury [category] larger and I’m not worried about the watch industry at all.

But if the fears of Apple Watch competition have the Swiss watch brands concerned and reacting defensively, he sees it as good thing.

“If TAG Heuer fails, so be it,” he said. “They’ll be better off for it because they tried.”

Source: http://www.bizjournals.com/newyork/news/2015/06/18/will-3m-apple-watches-sold-hurt-swiss-watches.html?ana=twt

June 18, 2015

Smartwatch debate has strapped timepieces back on wearers’ wrists

Luxury Daily
By: Jen King
June 18, 2015

NEW YORK – Panelists during the Watch Collectors’ Roundtable discussion agreed that the introduction of the smartwatch, though originally daunting, may be the best thing to happen to the traditional Swiss watch industry since the quartz.

Held on June 16 at the Aaron Faber Gallery, the “Will smartwatches disrupt the Swiss watch industry” panel debated whether or not the smartwatch will have lasting impact with different perspectives from timepiece sellers, collectors and manufacturers to proponents of wearable technology. Although not agreeing on all fronts, the panelists expressed a sense of gratitude toward Apple, and others in the tech space, for putting traditional watches back into the conversation.

“I cannot even count how many hours of debate [smartwatches have] sparked in our offices, with our members and prospects,” said Randy Brandoff, CEO and founder of Eleven James, New York.

“No matter what one thinks about the technology of today, and where one thinks it’s going in the future, if you’re a lover of wristwatches, mechanical or otherwise, I think the aggregate takeaway is that this is a good thing,” he said. “More than anytime I can remember everyone I know has sparked up a conversation about watches, what this means, where are they going and how useful are they.”

Mr. Brandoff acted as the moderator for the panel discussion.

Ticking talk

The panel discussion delved into the fundamental issues and questions surrounding the wearable category and how, if at all, the technology will affect traditional Swiss watch brands.

Each panelist said that mechanical timepieces have been worn as a way to distinguish someone from a crowd, but Apple Watch, and others like it, will become commonplace with only the high-end model, the Edition, being seen as unique.

But, the wearable model is not as practical or as sound of an investment as a mechanical watch because the technology within will become outdated. In comparison, the technology in a timepiece has gone relatively unchanged for hundreds of years, resulting in a time-tested science that has yet to become obsolete.

The general consensus among the participants was that watches, smart or otherwise, have placed wearables on the wrists of consumers who otherwise would not have considered a timepiece. This consumer sector is made mostly of millennial consumers who have grown up in a virtual era where timekeeping is predominantly done by mobile and smartphones.

Comparably, the introduction of quartz timepieces in the 1970s had a similar outcome with consumers gravitating toward the new technology and away from traditional mechanical watches. As with in the past, consumer sentiment changed as the first wave of interested wearers matured and returned focus to tradition, but not without testing the technologically advanced waters first.

Also, the panelists felt that the disposable nature of the smartwatch also plays into the quartz comparisons. The quartz watch went from cutting edge technology to available as a free prize at the bottom of a cereal box, thus making the innovation diluted.

Just as with a smartphone, the smartwatch will be void of emotional ties while traditional timepieces can have profound meaning for wearers because they can mark a personal milestone or be passed down along generations.

“I think the whole thing is a bit of an evolution right now,” said Jason Alan Snyder , chief technology officer of Momentum Worldwide, New York. “Horology as the science of measuring time really has nothing to do with wearables.

“Wearables are fundamentally an extension of a smartphone at this time,” he said. “But, really beyond that it’s a small visual signatures of what’s happening on your smartphone right now.

“I think that the social capital derived from wearing a fine Swiss timepiece is very different than social capital derived from wearing a smartwatch. I think those two things may converge at some point in the future, but for right now it’s the difference between luxury and utility, and they’re very different ideas.”

Tech as craftsmanship
For the luxury industry, whether it is timepieces or leather goods, the panelists noted that longevity propels the industry through style, and it is that combination that results in consumer desire.

Additionally, luxury goods are described as made by the hands of skilled artisans, but Sir Jonathan Ive of Apple argued at the Condé Nast International Luxury Conference April 22 that all devices, even those in the technology space, have handcrafted elements.

Whether the Apple Watch will prove disruptive to the traditional watch industry has yet to be fully determined, but the degree of quality behind Apple’s first wearable technology is clear (see story). Apple extensively researched the materials for the watch, especially its gold components, and feels that it is a false assumption to assume those in the technology space do not dedicate the same sense of quality to products as traditional luxury houses (see story).

Regardless, mechanical watchmakers have melded traditional horology with technological innovations ranging from synced mobile applications, strapped adaptations and fully connected timepieces.

For example, Swiss watchmaker Breitling is taking the smartwatch concept to new heights with its flight-ready B55 Connected timepiece.

Smartwatches are often synced to a smartphone application that tracks the wearer’s physical activity and sends push notifications (see story). Breitling has taken the opposite approach by having the smartphone service the B55 Connected chronograph to enhance functionality and conviviality.

Also, LVMH-owned Tag Heuer announced its creative partnership between its manufacturer, Google and Intel at Baselworld 2015.

The partnership signifies a new era of collaboration between Swiss watchmakers and Silicon Valley to escalate the expertise of each brand whether it be watchmaking, software or hardware. From the first utterance of wearables, many horologists agreed that collaborative efforts between tradition and technology would yield competitive results (see story).

Since watches are statement pieces of movements and mechanisms, sparking innovation aligns with the heritage of horology and is worth exploring. But, as it stands today the Swiss watch industry will prevail, even becoming more collectable due to wearables.

“I think the category will grow because of Apple’s new entry into the category,” said Milton Pedraza, CEO and founder of The Luxury Institute, New York.

“The Apple Watch will evolve into something more compelling, today it’s not,” he said. “I don’t think we have anything to worry about, however I terms of the luxury Swiss watch industry not only prevailing but thriving as a result.”

Source: http://www.luxurydaily.com/smartwatch-conversation-has-strapped-timepieces-back-on-the-wrist-panel/

June 16, 2015

Meticulous Attention to Detail Elevates Craftsmanship of next Lincoln MKX

Business Wire
June 16, 2015

Overall quality is the top purchase reason for the Lincoln MKX, matching a study that shows 74 percent of wealthy consumers believe superior quality is a luxury product’s most important attribute

The new Lincoln MKX medium crossover, on sale this summer, reflects increased focus on attention to detail and improved craftsmanship in subtle executions.

Advanced models along with a state-of-the-art virtual reality lab are complemented by Lincoln craftsmanship engineers who meticulously pore over vehicles.

Craftsmanship helps define the overall quality of any luxury product. Customers of the Lincoln MKX, for example, cite overall quality as their No. 1 purchase reason for the medium crossover.

“Part of the role of the craftsmanship team is to address the intangible elements of quality – how the space makes you feel, your reaction when you get in and experience the vehicle.”

This desire is seen beyond automotive as well. A study by the Luxury Institute and Epsilon finds that 74 percent of wealthy consumers believe that superior quality is the most important attribute of a luxury product, followed by superior craftsmanship.

The new Lincoln MKX, on sale this summer, elevates craftsmanship by subtly fusing form and function, sometimes in areas not immediately seen or felt by the customer.

“Craftsmanship sits between the worlds of engineering and design,” said Stacy Swank, Lincoln craftsmanship supervisor. “Our role is to bring those worlds together to enhance the experience for the customer. We like to think that if you don’t notice what’s been done, then we’ve done our job.”

Some “hidden” improvements to the 2016 Lincoln MKX include:

  • Foam was added to the wrapped console side panels, providing a softer area for the leg to rest, and also added to the door armrests and steering wheel
  • Extra strength was added to the dead-pedal area – where a driver rests his/her left foot – to make the area more firm
  • Scuff materials in the door and tailgate were upgraded to stainless steel, which is more resistant to scratches and helps maintain a beautiful appearance

The 2016 Lincoln MKX offers available Bridge of Weir® Deepsoft leather, created specifically for Lincoln seating surfaces. Bridge of Weir Deepsoft leather goes through a 16-hour softening process, which is a considerably longer process than most automotive leathers. A hand-sewn and -stitched Wollsdorf® leather-wrapped steering wheel is available on higher-series vehicles.

The center console was redesigned to improve functionality while elevating craftsmanship.

The armrest includes a two-button clamshell execution. This arrangement allows for one button to open only the flocked storage with the tray and the other to open the main bin, creating a versatile storage option.

To increase the crafted appearance, the gooseneck hinge arms that connect the armrest and clamshell tray to the hinge are hidden.

Throughout the interior, the smallest areas were upgraded to higher levels of craftsmanship. To create a cleaner appearance where the A-pillar meets the headliner, for example, a 2.5-mm indent (the thickness of a couple of dimes) was created on the inside of the joint. This allowed the materials to align better.

Lincoln craftsmanship engineers review data at computer-aided-design stations, experience the vehicle in a virtual lab and pore over prototypes to help ensure quality. In the interior of the new Lincoln MKX, for example, there are more than 1,200 interfaces.

Reducing margins and eliminating sharp edges, cut lines, parting lines and visible fasteners – while using genuine wood and metal – drives fit and finish.

“The data, the science and the math help ensure everything fits together correctly and address the tangible elements of quality,” said Swank. “Part of the role of the craftsmanship team is to address the intangible elements of quality – how the space makes you feel, your reaction when you get in and experience the vehicle.”

Source: http://www.businesswire.com/news/home/20150615006393/en/Meticulous-Attention-Detail-Elevates-Craftsmanship-Lincoln-MKX#.VYAfxc7uWXo

June 11, 2015

Hotels Offer Luxury Shopping Inside Your Rooms

The New York Times
By: Shivani Vora
June 10, 2015

Luxury hotels are increasingly partnering with high-end retailers to give guests insider shopping experiences and perks. Many of these collaborations are at properties in New York.

The Mark Hotel on Manhattan’s Upper East Side has teamed with Bergdorf Goodman: Guests are ferried to and from the Fifth Avenue store in pedicabs and have access to shop before and after hours with Bergdorf’s director of shopping. Those staying in a suite receive a $500 gift card and a facial in the store’s beauty department. Rooms from $725, suites from $1,200.

The Quin in Midtown is also working with Bergdorf’s. The phones in each of the hotel’s 208 rooms have a direct-dial button to the store’s personal shopping team, which can set up appointments for a store visit and can order items to be delivered to guests. Terrace suite guests also receive a $300 gift card. Rooms from $499, suites from $2,000.

Travelers who stay three or more nights in a suite at the WestHouse in Midtown receive a $500 gift card to the online fashion retailer Net-a-Porter and can talk with the company’s personal shoppers by pushing a button on in-room phones. Suites from $999.

The St. Regis Washington, D.C. offers guests an opportunity to stock their room closets ahead of time with items from Neiman Marcus. Those interested answer a questionnaire about their style preferences and arrive to a find a customized wardrobe. The service is free, and guests can try on the clothes. There is no obligation to buy them unless the clothes are worn. Rooms from $395.

International hotels are also participating: Travelers staying a minimum of five nights in a suite at the Madinat Jumeirah in Dubai until the end of July receive a free pair of shoes from Harvey Nichols as well as a pedicure. Suites from $800.

These relationships are a way for stores to generate traffic and also appeal to travelers, according to Milton Pedraza, the founder of the New York-based luxury research and consulting firm the Luxury Institute. “Retailers and hotels assume that if you’re staying at a pricey property, you have the means and inclination to shop, and these partnerships give you an incentive to do that with a specific name,” he said.

Source: http://www.nytimes.com/2015/06/10/travel/hotels-offer-luxury-shopping-inside-your-rooms.html?_r=0

June 10, 2015

Pedraza Defines Seven Peak Performance Rules for the Luxury Retailer

The Industry is Rife With Self-Inflicted Wounds

By: Jeff Miller
June 9, 2015

RAPAPORT. Jewelers have tremendous opportunity to grow their operations as long as they do not fail to execute rules of peak performance for customer relationships, according to Milton Pedraza, the CEO of the Luxury Institute. Pedraza defined operating results at luxury retailers so far this year as “dismal”  in large part because the  industry is “rife with self-inflicted wounds” including, clinging to outdated management practices. 

Retailers that do stand to capitalize on future growth are approaching the business from the customers’ perspective and creating systems — and empowered associates — that  together cultivate relationships rather than a rallying cry for a simple sales transaction. Pedraza created seven “Rules For Peak Performance” based upon more than a decade of consulting luxury brands and leading them through  internal transformations. 

The first rule of performance, Pedraza said, is to abandon the corporate silo mentality and create a company culture and mindset that brings all parts together to achieve strong client relationships.

“Luxury brands are broken, literally. Despite all the omnichannel chatter you hear today, brands are broken up into departments and functions more fit for the factories and universities of the industrial era than fashion and luxury retailers of the digital age,” he wrote.

Even if departments or divisions compete for internal interests, Pedraza advised retailers to  place all those silos that touch the client “under one client relationship executive and base compensation — at all levels – on achievement of relationship targets such as client data collection, conversion, recovery, retention and referral rates.”

While competitive benchmarks (and performance metrics) do play a role in business, Pedraza’s second rule is to use that data effectively to create “competitive breakthroughs.” Any situation that involves creativity and human behavior requires differentiation and efficiency, he said.

“One reason that the luxury industry is stalling is a lack of breakthrough innovation. If you want your luxury brand to be highly valuable and profitable you need to move beyond benchmarking. Luxury brands need to go from continuous improvement to discontinuous improvement, which demands breaking the rules through innovation,” he said.

The successful retailer of today has adopted Pedraza’s third rule of performance  and dispensed with  “top-down” management in favor of “front-line empowerment.”   Today’s retail leaders actively engage and empower people in the organization to apply their own talent and passion toward the company’s goal and they recognize that “strong human relationships harness collective wisdom and innate genius to adapt and shape the future,” he noted. Pedraza said that  leaders must “relax into success” and trust people “profusely, to adapt continuously. 

It is an imperfect process, but it works,” Pedraza said, citing three luxury brand executives who trust front-line colleagues to achieve success, while providing the resources needed to deliver:  Angela Ahrendts of Apple Inc., Natalie Massenet of Net-a-Porter and Marco Bizzarri of Gucci.

Pedraza’s fourth rule advised luxury retailers to turn “big data” collection into “actionable wisdom.”  Data itself is not information — without human thought.

Wisdom remains the domain of humans. Injecting human wisdom and empowering your store and call center associates to use their judgment, along with data, to create appropriate one-to-one client communications might not be as sexy as developing an algorithm, or pushing a mass campaign button, but it can be far more effective in building client relationships,” he said. Leverage staff knowledge and know-how to use data in a way that benefits the client and “finally go from doing the wrong thing right, to finally doing the right thing right.”

Pedraza said that selling is not human because, in practice, it reduces “associates to being clerks ringing up transactions instead of brand ambassadors building long-term relationships.” In the fifth rule of performance, he advised retailers to toss the robotic “sales ceremony” concept and focus on three major over-arching qualities: expertise, trustworthiness and generosity.

Let the mass brands do what they will, but luxury brands should immediately discard the aggressive selling playbook and embrace the art and science of high-performance client relationship building, where value is created not from transactions, but from consistently and continuously outperforming and out-behaving the competition,” Pedraza said. “Creating clearly measurable functional and emotional mutual value through a relationship is inherently imperfect, but alternative forms of selling are surely dead.”

Has your store incorporated elaborate, old-school training programs? Rule number six  urges retailers to create master associates.

“It is often said that in a college classroom, the only one learning is the teacher, so part of the secret lies in transforming everyone from a trainee into a learner and a teacher. It is also true that online education, when used in a humanistic and empowering way, such as is done by the Khan Academy, combined with daily one-to-one, metrics-based coaching, peer-to-peer learning techniques and inspirational reinforcement, can make learners, teachers and relationship masters out of all your front-line associates,” he said.

In the seventh rule, Pedraza calls for changing the front-line manager job description to a coach rather than someone who is just  “bossing and selling.” Hire an operations manager to handle the back-office chores; the store manager should be on the floor 90 percent of his time observing and coaching associates and engaging top clients.

Coaching is an art and a science backed by research. Coaching relationship building is a craft that requires expertise.”

“Innovative, empirically-based coaching programs need to be developed to educate our armies of store managers in the art and science of coaching for client relationship building. Until that happens, expect your costs to go up while results falter because more of the same harder won’t work this time around,” Pedraza concluded.

Source : http://www.diamonds.net/News/NewsItem.aspx?ArticleID=52533&ArticleTitle=Pedraza+Defines+Seven+Peak+Performance+Rules+for+the+Luxury+Retailer

Older Posts »