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类型波士顿咨询(BCG)& Comité Colbert:2022年奢侈品行业展望报告(英文版)(38页).pdf

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    1、BCG x Comit ColbertLUXURY OUTLOOK 2022 Advancing as a responsible pioneer Rarity, sustainability, exclusivity, new experiences, and new territoriesBy Jol Hazan, Sarah Willersdorf, Filippo Bianchi and Benjamin FassenotBoston Consulting Group partners with leaders in business and society to tackle the

    2、ir most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholdersempowering organizations to grow, build sustaina

    3、ble competitive advantage, and drive positive societal impact.Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, an

    4、d corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.Contents01 | Acknowledgments03 | Introduction04 | Reso

    5、urces and Production11 | Life Cycle17 | Customer Relationship23 | Responsibility29 | Globalization1 LUXURY OUTLOOK 2022We would like to thank all stakeholders who contributed to this report:Steering Committee of the report Etienne Bizot, Chairman and CEO of BollingerLaurent Boillot, President and CE

    6、O of HennessyChristophe Caillaud, CEO of LiaigreMarc Chaya, Cofounder and CEO of Maison Francis KurkdjianAnne Dellire, Group Marketing and Strategic Planning Director at RichemontAnne-Sarah Panhard, Managing Director at Herms Home collections, President of PuiforcatHlne Poulit-Duquesne, CEO of Bouch

    7、eronInterviewed members of Comit Colbert Yannick Allno, three-Michelin-star chef at Allno ParisPierre-Emmanuel Angeloglou, Strategic Missions Director for Fashion and Leather Goods at Louis VuittonPhilippe Bnacin, Cofounder, President, and CEO of Inter ParfumsAlexandre Boquel, Director of Mtiers dEx

    8、cellence at LVMHNicolas Bos, Chairman and CEO of Van Cleef & ArpelsAxelle de Buffvent, Style Director at Martell Mumm Perrier-JoutJean Cassegrain, CEO of LongchampFrancis Chauveau, Former Deputy Managing Director of Industrial Affairs at Herms Marie-Claire Daveu, Chief Sustainability Officer and Hea

    9、d of Institutional Affairs at KeringMichael David, Chief Omnichannel Officer at LVMHOlivier Fournier, President of the Fondation dentreprise HermsVincent Frey, General Manager at Pierre FreyThierry Lamouroux, International Sales Director at BoucheronJrme de Lavergnolle, President and CEO of Saint-Lo

    10、uisClment Lefevre, Sustainability Director at Saint LaurentAcknowledgmentsBOSTON CONSULTING GROUP 2Frank Madlener, Director of IRCAMEmilie Metge Viargues, CEO of ChristofleThierry Oriez, Executive President of Henri SelmerBruno Pavlovsky, President of Fashion at ChanelGautier Pigasse, Head of Innova

    11、tion and Blockchain at LVMHGuy Savoy, three-Michelin-star chef at the Monnaie de ParisGuillaume de Seynes, Executive Vice-President Manufacturing and Equity Investments at HermsYves de Talhout, Executive Chairman of the Faencerie de GienHlne Valade, Director of Environmental Development at LVMHAude

    12、Vergne, Chief Sustainability Officer at ChloLionel Vermeil, Director of Fashion and Luxury Intelligence at KeringCyrille Vigneron, President and CEO of CartierComit Colbert TeamLaurent Dhennequin, Chief of Staff at Comit ColbertBndicte pinay, President and CEO of Comit ColbertAlain Proust, Secretary

    13、 General of Comit ColbertExternal expertsSofia Bernardin, Cofounder and President of Re-SEEMaximilian Bittner, CEO and Chairman of Vestiaire CollectiveBertrand Lvy, Senior Vice President Global Partnerships at The SandboxPatrice Louvet, President and CEO of Ralph LaurenOlivier Moingeon, Cofounder of

    14、 ExclusibleFrdric Noyere, Managing Director at Jebsen BeverageBenot Pagotto, Cofounder of RTFKT Studios 3 LUXURY OUTLOOK 2022“Luxury is the richness of craftmanship, the expres-sion of creative genius, the illustration of ancestral expertise.” Guy Savoy, three-Michelin-star chef at the Monnaie de Pa

    15、risIn recent years, the luxury industry has demonstrated its ability to endure and overcome crises, lending weight to market estimates that predict a return in 2022 to pre-COVID-19 levels of value creation and growth of 6% be-tween 2022 and 2026and French luxury fashion houses are playing their card

    16、s right. Now more than ever, in coun-tries where it is most highly developed, luxury is a source of national pride for the general public. This is the opinion of 85% of French respondents and 80% of Italian respon-dents to a BCG and Potloc survey conducted in April 2022.Today, consumers view luxury

    17、as being defined by quality, craftmanship, and creativity. They also believe that it bears a certain social and environmental responsibility. Luxury is “to preserve, develop, and pass on to future generations,” according to Laurent Boillot, President and CEO of Hen-nessy and the newly elected Chairm

    18、an of Comit Colbert.But the industry is now facing paradigm shifts across its spectrum of activity. For example, six out of ten consumers say that they incorporate sustainable development into their purchasing decision, almost half are interested in the concept of a virtual store, and 80% believe th

    19、at luxury fashion houses should commit to product life-cycle man-agement beyond production and sales.These new demands and aspirations facing luxury fashion houses in France and abroad highlight emerging pressures to which players must respond individually or collectively. Naturally, given its flour

    20、ishing economic success and its excellence in certain areas (such as product quality and customer relationships), luxury has a responsibility to help drive a larger movement that extends beyond its industry sector. As an international leader in the luxury industry, France should be at the forefront

    21、of progress in this area.After conducting more than 40 interviews with Comit Colbert members, luxury fashion house directors, and industry experts, we identified five challenges and opportu-nities for the future of the luxury industry:1. Resources and Production. From excellence in coreexpertise to

    22、responsibility across the entire supply chain, the industry must perpetuate quality and accelerateinnovation in view of the scarcity of resources.2. Life Cycle. From symbolic products to responsibility forthe entire product life cycle, it must reconcile sustain-ability, use, rarity, and novelty.3. C

    23、ustomer Relationship. From physical experience todigital reconciliation, the luxury industry must translateexcellence into new experiences.4. Responsibility. From competitive advantage to collec-tive imperative, it must lead the environmental, social, and governance (ESG) transition in coalition.5.

    24、Globalization. From unreserved globalization to areevaluation of geostrategic dependencies, it must navi-gate new territories and anticipate risks.By analyzing each of these issues, we hope to demonstrate in this report that luxury, based on its core principles, can become and is becoming a bold pio

    25、neer of change.Bndicte pinay, President and CEO of Comit ColbertJol Hazan, Managing Director & Partner at Boston Consulting Group in ParisIntroductionDisclaimer: The results of this report stem from the survey and from analyses conducted by BCG on the basis of interviews with members of Comit Colber

    26、t and external experts.BOSTON CONSULTING GROUP 4Resources and Production: from excellence in core expertise to responsibility across the entire supply chain5 LUXURY OUTLOOK 2022Perpetuating quality and accelerating innova-tion in view of the scarcity of resources “Close collaboration between private

    27、 players and public authorities is essential. Without it, we risk permanently losing certain expertise.” Alexandre Boquel, Director of Mtiers dExcellence at LVMHIn the face of the climate emergency, there is existing pressure on physical resources. The imbalance be-tween the need for raw materials a

    28、nd their availability has grown despite efforts to increase demand planning and optimize production.Collaboration among industry players would help to initiate a profound transformation at every level and develop robust standards to deal with environmental challenges. On the one hand, there is a nee

    29、d to improve traceability in order to better control and trace the supply chain. On the other hand, there is a need to accel-erate innovation, which is not yet considered a real industry asset, and to support the search for materials for the future that are in line with environmental con-straints an

    30、d regulations.There is also pressure on human resources. Luxury fashion houses face difficulties in recruiting for produc-tion, sales, and, in particular, artistic crafts because they are relatively unknown and even undervalued. This situation poses a threat to the transmission of exper-tise that is

    31、 indispensable for luxury to continue to exist. Industry players could work with governments and each other to promote craft occupations among younger generations, and they could increase their attractive-ness to high-potential talent by investing more in voca-tional guidance.1.1 Going beyond optimi

    32、zing production know-how to establishing standards throughout the sector and the industry. Luxury fashion houses have been among the first to face the finite nature and scarcity of resources in their produc-tion chains. They are also increasingly forced to deal with regulatory constraints (such as t

    33、raceability) and consumer pressure, and are now aiming to improve their practices across the value chain. Historically, luxury fashion houses have devoted them-selves to optimizing their processes, notably by making greater use of data to anticipate demand and to align production levels. Some fashio

    34、n houses have also chosen to limit their production in order to guarantee their cus-tomers the highest quality; this is the case, for example, with the Saint-Louis crystal glassworks. It is now important that we go beyond the frontiers of expertise and explore each sector with an eye toward transfor

    35、ming the industry at a deeper level. For luxury fashion houses, this means tracing every element of the sometimes-complex supply chain (for example, the leather supply) in order to recon-nect the source of the raw materials with the finished product. The aim is to bring together all of the players i

    36、nvolved (farmers, breeders, and so on) and collaboratively define robust standards. “We work with all of the sectors, taking a scientific approach. This is what we have done for ostrich farming” (Olivier Fournier, President of the Fondation den-treprise Herms). Some luxury fashion housesfor exam-ple

    37、, MMPJ and Kering train and financially support farmers, and set up incentive systems to promote good practices. “There is a key challenge around supply chain traceability, which is essential to properly influence and re-ward the players in the earlier stages of these chains. It is constraining, but

    38、 it is how the industry can develop.” (Marie-Claire Daveu, Chief Sustainability Officer and Head of Institutional Affairs at Kering). To ensure this traceability, the fashion houses could work to develop a digital ID for each product that would record all of the information needed to trace the produ

    39、cts source and manufacturing stages.Some luxury fashion houses, especially those that tend to renew their collections more often, are under increasing pressure from stakeholders to address environmental challenges. In recent years, the sector has seen an increas-ing number of initiatives on innovati

    40、on and research into materials for the future that can respond to these new challenges. These product innovations were first used in luxury items by foreign fashion houses such as Ralph Lauren, which recently partnered with the startup Natural Fiber Welding to develop the RLX CLARUS which transforms

    41、 virgin and recycled cotton in new ways to create high performance fabric. Reflecting on this initiative, Patrice Louvet, President and CEO of Ralph Lauren is convinced that “the luxury industry has an incredible responsibility to play a role in sustainability.7thranking of the luxury industry in te

    42、rms of innovativeness2/3proportion of luxury consumers who are convinced of luxury product sustainabilityBOSTON CONSULTING GROUP 6French luxury fashion houses are now in step; Kering, for instance, created its Material Innovation Lab in 2021, piloting projects based on innovative raw materials and b

    43、iotechnology research. Such scientific research currently faces some technical limitations that it must overcome in order to scale up. “Today, it has become essential to innovate and make environ-mentally responsible products, but the process is still con-straining, and we face difficulties to produ

    44、ce on an industrial scale” (Philippe Bnacin, Cofounder, President, and CEO of Inter Parfums). This suggests that fashion houses should not pursue these efforts separately, but rather that all players in the sector should come together to develop and create sustainable materials for the future. For e

    45、xample, replacing plastic requires the collaboration of all players in the sector. With this in mind, Kering wishes to use its Mate-rial Innovation Lab to develop pilot projects involving inno-vative raw materials that incorporate insights from biotech-nology research projects, going beyond the luxu

    46、ry sector. Exhibit 1 - Production and Resources The luxury industry is perceived as lagging behind others on innovation, with only a few brands and collections thoroughly engaged#7#9#2 LuxurySource: BCG x Potloc survey conducted in April 2022 in France, the US, and Europe.1 Percentage of respondents

    47、 ranking the industry in the top five most innovative industries out of a total of 16 industries.Industry ranking:NonexhaustiveThe luxury industry appears in seventh place among the most innovative sectors, although luxury clients rank it higher Luxury customersTotal Nonluxury customersExamples of p

    48、roduct innovations in the luxury industryIndustries perceived as the most innovative12001201920212021Vegan clothing and accessories (e.g., biodegradable jeans, yeast-based silk)All CollectionsSTELLA McCARTNEY Clothing and leather goods made of nylon created by recycling plastic waste from the ocean

    49、(econyl technology)Collection Re-NylonPRADABracelet made of apple residue with a dial powered by solar energy Watch TankMust Solar BeatCARTIERPilot projects using innovative raw materials and integrating biotech-nology researchMaterial Innovation LabKERING33% 36% 40%#5#5#6 Aerospaceand denfence45% 4

    50、4% 46%#4#4#3 Automotive#3#2#548%40%46% Telecommunicationsand Internet47% 44% 48%#2#3#4 Chemicals andpharmaceuticals63% 59% 65%#1#1#1Technology34% 48% 26%7 LUXURY OUTLOOK 20221.2 From preservation of craftspeople to a wide-spread talent warThe pressure on physical resources extends to human resources

    51、, since the transmission of expertise and of man-ufacturing processes is critical to guaranteeing the quality of luxury products, which in turn is key to the viability of the industry. Quality and expertise are the two attributes that best define luxury, according to the European and American consum

    52、ers we surveyed. Today, some artistic and crafts trades have lost their promi-nence, putting the availability of expertise at risk. People of all ages left more than 20,000 positions vacant in 2021, almost twice as many unfilled openings as there were in 2019. Various factors have contributed to thi

    53、s situation: jobs are undervalued in career guidance processes, there is a lack of knowledge of them, sometimes they are remotely located, and career prospects may be limited. As a result, in France, 65% of all positions for leather and textile crafts workers are unfilled, according to the 2021 Labo

    54、r Require-ments survey conducted by the French government em-ployment agency Ple employalmost three times as many vacancies as for certain positions in the services sector. “Our business is limited by our workforce, and the balance remains fragile. The transmission of expertise is there-fore an abso

    55、lute necessity to ensure a sustainable future for our company” (Vincent Frey, General Manager at Pierre Frey).It is therefore essential that we preserve and promote these professions. The luxury fashion houses have under-stood this well and have created their own schools, such as the LVMHs Institute

    56、 of Mtiers dExcellence, the cole Herms des savoir-faire, and Van Cleef & Arpels Lcole, School of Jewelry Arts. These schools aim to create training courses that optimize skills development and state recog-nition. Van Cleef & Arpels has also developed De mains en mains (“from Hand to Hand”), a career

    57、 path discovery program for students in middle schools within French priority education zones, to offer access to skilled trades and provide long-term guidance to interested young peo-ple. For its part, Chanel opened 19M, bringing together 11 maisons dart and 600 artisans with the goal of turning it

    58、 into a hub for creation and innovation, but also for trans-mitting expertise by welcoming professionals, students, and young apprentices. In collaboration with the Institut Franais de la Mode, Chanel has also created an academic department to develop a center for research and instruc-tion in fashio

    59、n expertise, for the purpose of preserving artistic crafts. In the field of gastronomy, the Ritz Paris works to pass on expertise through the cole Ritz Escoffier, which offers professional cooking and pastry courses, as well as courses and workshops open to everyone.To ensure that the work carried o

    60、ut by the luxury fashion houses has a lasting impact, “it is now vital that we see close collaboration between private players and public authorities. Without this, we risk permanently losing some expertise” (Alexandre Boquel, Director of Mtiers dExcellence at LVMH). To this end, local authorities,

    61、incubators, compa-nies, and training centers in Paris created the Campus dexcellence des mtiers dArt et du Design. Its aim is to make these mtiers dexcellence (areas of expertise) more visible and the training more accessible. For a long time, luxury fashion houses have quite rightly focused on pres

    62、erving areas of expertise. However, the need to recruit now extends beyond this effort. For the first time, fashion houses face difficulties in attracting and retaining high-potential talents across all sectors. For this reason, companies must now work toward changing the image of their employer bra

    63、nd. The war for talent is mainly a result of younger generations desire for very flexible and meaningful work. It is felt particularly strongly in such areas of the company as sales-related roles (for example, retail outlet management and sales advice) and digital design roles. As a result, luxury c

    64、ompanies must differenti-ate themselves through tailored offerings that take into account the needs of new generations (for example, flexi-bility in their career path, strong internal mobility, and customized training).BOSTON CONSULTING GROUP 8What are the different regulations in the luxury in-dust

    65、ry, and how have they evolved?From the start of the millennium, the first decrees and directives on environmental, social, and health matters began to multiply. They came from a wide variety of players (the EU, local authorities, and others) and notably included nonfinancial reporting, measuring env

    66、ironmental foot-prints, and banning certain chemical components. The luxury fashion houses also face increasing numbers of international regulatory constraints (such as specific taxes, unrecognized appellations, a diverse range of conformity tests, and country-specific requirements). Given that the

    67、sector has a strong focus on exports, this further compli-cates the country-specific responses.How do the luxury fashion houses need adapt to these regulatory constraints?Generally, regulations have a positive purpose and ensure that environmental issues are taken into account. However, they do not

    68、sufficiently account for the particularities of the sector. The fashion houses have not waited for these regulations to come into force to ensure the sustainability of their products. For several years, some of them have been redesigning their various chains to ensure the quality of raw materials.Wh

    69、at are the limits of these regulations?Although the regulations are well-intentioned, there is still a significant gap between how public authorities see the sector and how it works in practice. As a result, certain laws use benchmarks that are ill-suited or wholly unsuit-able for the industry. For

    70、example, displaying the environ-mental footprint of products does not sufficiently convey the sustainability of luxury products, as there are times when some fast fashion products achieve the top environ-mental scores. In addition, some regulations are too re-strictive because they are too heavily b

    71、ased on the precau-tionary principle. For example, the presence of certain substances is now measured in parts per billion (ppb), whereas it was previously measured in parts per million (ppm) and before that as a percentage. This leads to over-measuring substances that can already be found every-whe

    72、re in small quantities. Furthermore, some laws, such as the Digital Services Act (DSA), cover many subjects simul-taneously in a very horizontal way, which has a negative impact in specific situations. As a result, issues surround-ing intellectual property protection in the fight against counterfeit

    73、ing have not been dealt with in this context with the efficiency needed to protect consumers. Another example is the implementation of restrictive regulations, particularly those linked to certain materials whose alternative is not necessarily better in terms of health (for example, silver versus st

    74、ainless steel). This may unfairly impact certain areas of expertise and even lead to the end of an industry (such as ironwork). To address these pitfalls, Comit Colbert is in active discussions with legisla-tors to remind them of the particularities of the industry. It is also working with similar e

    75、ntities from other countries to enforce its message within the European Union. Nonethe-less, it is now essential for luxury fashion houses to form coalitions around these collective issues, among them-selves but also with other sectors impacted by industry regulations (plastic, silver, leather, and

    76、the like) so that progress can be made on these issues. Comit Colbert OutlookInfluencing regulations on the luxury fashion houses production methods, for better and for worseLaurent Dhennequin, Chief of Staff of the Comit Colbert9 LUXURY OUTLOOK 2022FocusKering, a role model for ecosystem preservati

    77、on through sustainable redesign of its supply chainsKering is now committed to proactively redesigning its supply chains and is sustainably investing throughout its value chain so that it can perfectly trace most of its raw materials. The luxury fashion house has also set itself the goal of achievin

    78、g full traceability of its key raw materials by 2025. The group has already launched several technologies to sup-port progress toward this objective, such as developing organic cotton that is 100% traceable through analyzing the natural chemical properties of individual fibers that can link them to

    79、the field in which they grew. Kering is also expressly commit-ted to preserving the climate, nature, and ways of life through a fund that “supports the transition to more regenerative practices through scholarships awarded to groups of farmers, project lead-ers, NGOs, and other players willing to te

    80、st, corroborate, and develop agricultural practices in harmony with ecosystems.” Launched in January 2021, the Regenerative Fund for Nature emphasizes the urgent need to act for the future of the planet. Through these efforts, Kering has positioned itself as a leader in best practices. Using the exa

    81、mple of leather, in 2021, the fund notably invested in the Solidaridad project in Argentina, which “aims to promote sustainable management of pastures in the Gran Chaco region. It also aims to restore native forests and the vegetation within them. By the end of this pilot project, Soli-daridad hopes

    82、 to triple the income of local farmers.”BOSTON CONSULTING GROUP 10FocusThe Institut des Mtiers dExcel-lence works to preserve expertiseFounded in 2014 by LVMH, the Institut des Mtiers dExcel-lence (IME) is committed to training and passing on expertise in 27 trades ranging from crafts and design to

    83、excellent customer service. For example, it is possible to train in sewing, culinary arts, or even sales advice. This work/study training is offered to career-changing professionals and to young people, including those with no qualifications, and yet it applies extremely rigorous selection criteria.

    84、 The IME aims to be part of a comprehensive learning pathway that combines theory and practice, and ulti-mately offers qualifications ranging from CAP (Certificate dAptitude Professionelle, a vocational French qualification) to Masters. Apprentices enroll in technical and theoreti-cal courses in any

    85、 of 24 partner schools and can gain practical experience in one of the 39 luxury fashion hous-es linked to the program. The IME works with reference schools that are certified and recognized by the French State, such as the Compagnons du Devoir or the Haute Ecole de Joaillerie. The group has already

    86、 trained nearly 1,400 apprentices in six different countries (France, Switzerland, Italy, Spain, Japan, and most recently Germany). In September 2021, the institute had a record 339 students at the start of the academic year. This sector of excellence, which focuses on human side of the sector, guar

    87、antees a 99% success rate for the various qualifications, and 75% of young people secure a job with LVMH or its external partners.11 LUXURY OUTLOOK 2022Life Cycle: from symbolic products to responsibility for the entire product life cycleBOSTON CONSULTING GROUP 12Bringing together sustainability, us

    88、age, rarity, and innovation “The first way to help the environment is to have products that last a long time.” Jean Cassegrain, CEO of Longchamp “Buying second hand shows respect for our creativ-ity. Its how fashion and luxury can come together.” Lionel Vermeil, Director of Fashion and Luxury Intell

    89、igence at Kering.Together, the quality of the raw materials used and the expertise of the industry mean that luxury products tend to be inherently sustainable. But this idea of sustainability raises the issue of how prod-ucts are actually used and what their stylistic life span is. How they are used

    90、 is more important than how they are produced.In the face of the climate emergency, luxury fashion houses must commit to extending or even multiplying how long the product is supposed to last over its entire life cycle. To this end, fashion houses must invest in new usage-optimization models that ta

    91、ke multiple scenari-os into account: repairing, to ensure the durability of products; second hand, to increase the number of uses; recycling or upcycling, to give existing products a sec-ond life; and renting, to limit consumption and maxi-mize usage.The second-hand market is currently experiencing

    92、strong growth. As a result, it now represents an opportu-nity for luxury fashion houses to align themselves with the needs and preferences of younger generations, as well as to encourage sustainable consumption. In this context, product traceability and authentication are key issues in this market.5

    93、0 billionpredicted value of the second-hand market by 2025 (+13% per year vs. +5% per year for the first-hand market)80%luxury consumers who think luxury fashion houses must be involved in the product life cycle2.1 From putting sustainability at the heart of luxury DNA, to considering how products a

    94、re actually used The concept of sustainability lies at the heart of luxury fashion houses DNA. This is due in the first place to the fact that their products combine high-quality raw materials and extensive expertise, meaning that they effectively last longer. “The first way to help the environment

    95、is to have products that last a long time” (Jean Cassegrain, CEO of Longchamp). Second, the relative rarity of luxury products, particularly in connection with their exceptional quality, reflects their limited production. “Our products are produced in a limited number to ensure their quality and cra

    96、ftsmanship” (Guillaume de Seynes, Executive Vice-President Manufacturing and Equity Investments at Herms). Quality and rarity thus provide luxury fashion houses with a theoretical competitive advantage in dealing with new environmental challenges. Beyond their inherent sustainability, luxury product

    97、s also have a stylistic lifespan and a pattern of usage. From a stylistic point of view, it is necessary to distinguish between timeless luxury and fashion. On the one hand, timeless luxury has a seemingly nev-er-ending stylistic lifespan thanks to iconic products that remain just as desirable in la

    98、ter years as when they were first made. The Louis Vuitton Keepall bag has never left the catalog since its debut almost a century ago in 1930. Other luxury fashion houses that continue to offer their original product ranges today include Herms, an artisan saddler since 1837, and Saint-Louis, a forme

    99、r royal glassworks found-ed in 1586. “With the end of overconsumption, our strategy is to make our products iconic without racing for innovation” (Cyrille Vigneron, President and CEO of Cartier). On the other hand, fashion represents new trends and the constant search for creativity. “Luxury survive

    100、s the seasons; fashion marks a season” (Lionel Vermeil, Director of Fashion and Luxury Intelligence at Kering). Many companies in the ready-to-wear industry released two collections in the past year (Fall-Winter and Spring-Summer), but the so-called fashion houses now offer as many as four collectio

    101、ns, as relatively season-specific models have become increasingly popular and recognizable. The same is true in the fragranc-es and cosmetics sector, which continues to release more and more new products every year. In the early 1990s, about 100 launches would be expected per year, compared to more

    102、than 3,700 in 2019.Creating iconic products is a potential solution to the sustainability issue. But even iconic products today are often accompanied by new ones: variations on the original model in different colors, shapes, materials, sizes, uses, and so on. Consequently, the entire luxury industry

    103、 must consider how its products are actually used. Today, 70% of luxury customers view commitment to the environmental impact of products as a basic criterion to consider when choosing a product to buy.13 LUXURY OUTLOOK 2022Exhibit 2 - Life Cycle Intrinsic value and frequency of use need to be taken

    104、 into account when assessing the environmental impact of luxury goodsThe scenarios above are theoretical and for illustrative purposes only.French silk versus Chinese polyester sweater: We estimated the number of potential uses on the basis of product quality and the garments ability to survive sea-

    105、sons and trends.French versus Bangladesh leather shoes: The French leather shoes are owned by someone who has several pairs of shoes and who wears that pair only on special occasions. The leather shoes from Bangladesh are worn every day for a few years.2.2 A duty to join forces and excel at optimizi

    106、ng usage Based on this observation, the luxury fashion houses must consider how consumers use their products throughout the products life cycle. Considered in this light, four major optimization models emerge. Offering repair services to ensure product longevityRepair services are the first lever th

    107、at fashion houses can use to ensure the longevity of their products. At Herms, as Rob-ert Dumas once said, “luxury is that which can be repaired.” Every year, customers bring more than 12,000 Herms items back to stores to give them a second wind. Similarly, Chanel offers repair and restoration servi

    108、ces for its iconic bags as part of a dedicated program called Chanel & moi.Developing the second-hand market to multiply life cyclesThe second-hand market offers another way to multiply the uses of luxury goods over time. Beyond its positive impact on products ecological footprint, the second-hand m

    109、arket can give some fashion pieces a second life decades after their first appearance. “The second-hand market demonstrates respect for our creativity. This is where fashion can be closer to luxury” (Lionel Vermeil, Director of Fashion and Luxury Intelligence at Kering). The second-hand market also

    110、presents a unique opportunity to move a portion of the population toward better-quality and therefore more sustainable products; some people would prefer a single second-hand luxury product to a num-ber of new products designed by mass-market brands with a lower intrinsic lifetime. The second-hand m

    111、arket can there-by limit overconsumption, reduce the ecological footprint, and help drive the transition toward sustainability. Indeed, the second-hand market grew twice as fast as the first-hand market, driven by the younger generations (83% of Gen Z survey respondents said that they would be willi

    112、ng to own clothes temporarily). The second-hand luxury market was estimated to be worth around 33 billion in 2021 and is expect-ed to exceed 50 billion by 2025. Given this enthusiasm, luxury fashion houses are adopting different positions, depending on their size, their value-generating potential, t

    113、he preexistence of Polyester from ChinaMade in China12kg CO2 equivalent300 Leather from BangladeshMade in China105kg CO2 equivalent600French leatherMade in France49kg CO2 equivalent200Higher carbon footprint for better-quality but less frequently used products (especially true for fashion products)L

    114、ower carbon footprint for high-quality products, even though they are sometimes more costly to manufactureTotal carbon impactPotential number of usesNumber of usesSource: BCG analysis245g CO2e/use175g CO2e/useFrench silkMade in France15kg CO2 equivalent1,000 15g CO2e/use40g CO2e/useVSVSBOSTON CONSUL

    115、TING GROUP 14relevant platforms, and their operating philosophy. Those that favor participating in second-hand markets can do so in several ways: they can establish partnerships with existing platforms; they can acquire a pure-play company in the market; or they can develop their own in-house model

    116、like Christofle and Selmer, which plan to offer their customers old restored mod-els, thus strongly affirming their commitment to a circular and responsible economy. “We chose to start an internal second-hand business. For customers, there is extra value in buying iconic vintage pieces that are guar

    117、anteed by us, and for us, the economic value is positive” (Thierry Oriez, Executive President of Henri Selmer).Although investments made by luxury fashion houses in the second-hand market demonstrate their commitment to meeting emerging customer expectations and enable them to control their image, l

    118、uxury brands must be attentive to the need to maintain customers dreams and emotionsthe differentiators in the industryin both the first- and second-hand markets, while clearly distinguishing between the two markets. Exhibit 3 - Life Cycle Three main engagement models for luxury players to adopt in

    119、developing the sec-ond-hand marketRecycling or upcycling products to give them a sec-ond lifeTo preserve or increase the emotional value of used or outdated products, some luxury fashion houses rely on recycling or upcycling. These techniques, which involve transforming existing pieces or materials,

    120、 give products a second life. For example, the fashion houses of the LVMH group, such as Louis Vuitton and Ruinart, are increasingly engaged in recycling or upcycling efforts. During his Spring/Summer 2021 fashion show, designer Virgil Abloh, Louis Vuitton Artistic Director, created LV Trainer Upcyc

    121、ling from the first LV Trainer models, in partnership with the compa-nys shoe factory in Fiesso dArtico. The original models were deconstructed and transformed to bring a new genera-tion of LV Trainers to life. On a broader scale, in 2021, LVMH teamed up with Weturn, a textile recycling startup, to

    122、give unsold clothes a second life. Twelve of the groups fashion houses will begin selling their unused fabrics on the Nona Source platform by the end of 2022.Maximizing use through rentalYet another way to limit environmental impact while maxi-mizing the use of luxury pieces is through rental. This

    123、mar-ket is relatively small (projected to reach 2 billion by 2025) and is still struggling to achieve the expected success. Al-though consumer expectations are high, rental remains focused on certain product categories, such as leather goods (29% of rentals are handbags). Several projects, such as T

    124、he Lauren Look (Ralph Lauren), Tulerie launched by Violet Gross and Merri Smith, Vivrelle for jewelry, Daytime or Yourse for designer furniture, are exploring different rental models. So far, however, none have stood out, and retailers who have attempted them have failed to achieve their goals. Thes

    125、e still-nascent initiatives underscore the economic necessity of finding the right model. An innovative environ-mental approach is sustainable in the long run only if it is financially viable. To achieve this, sharing ideas and initia-tives between luxury fashion houses within the same group (as in

    126、thr case of Kerings investment in Vestiaire Collective) as well as between fashion houses of different groups (for example, product authentication via the Aura Blockchain) may be sound strategies, enabling participants to accelerate change and make the necessary investments. Commitment levelPartneri

    127、ng with platformsfor example, to encourage targeted buyback programs (e.g., Burberry x TheRealReal) or to launch such programs (e.g., Alexander McQueen x Vestiaire Collective)Investing in or buying out second-hand platforms (e.g., Watchfinder bought by Richemont, Vestiaire Collective, and Kering) Cu

    128、rating vintage products on the brands platform (e.g., Selmer Rewind) or in person (e.g., Valentino Vintage, Weston) PARTNERSHIPINVESTMENT“IN-HOUSE”BURBERRYALEXANDER McQUEENRICHEMONTKERINGGUCCICHRISTOFLEHENRI SELMER PARISVALENTINOOSCAR DE LA RENTA15 LUXURY OUTLOOK 2022In theory, the second-hand marke

    129、t allows a product to be used multiple times, thus limiting its environ-mental impactbut is it not sometimes a catalyst for increased consumption? Vestiaire Collective is an online marketplace for buying and selling second-hand luxury fashion products, and therefore aims at finding new life cycles f

    130、or products, to better amor-tize their environmental costs. The durability, the quality, and the iconicity of our inventorys pieces make them attractive for a large audience. Pieces find a second or even a third life, regardless of seasons, sometimes even from one generation to another. We are tryin

    131、g to educate con-sumers against overproduction and overconsumption, by incentivizing them to “buy better,” preferring quality over quantity, reconciling these values with a certain financial affordability. Namely, consumers can afford products of higher quality through the second-hand market, than t

    132、hey could have afforded buying new. As recently published in our impact report, we are convinced at Vestiaire Collective that second-hand creates a virtuous circle fighting against overconsumption and having a real positive impact on the environment. By purchasing on Vestiaire Collective, a given cu

    133、stomer reduces by 90% the environmental cost linked to buying a new one. What relationship do you have with the luxury fash-ion houses? We are positioning ourselves as a real partner of luxury brands by offering a tailored resale solution. The circularity process of Vestiaire Collective also natural

    134、ly supports the iconization of luxury products. Having some items avail-able for sale several years after their release prevents them from falling into oblivion and guarantees them a perpetual presence in the wardrobes of current and future luxury customers.Why are some luxury fashion houses still o

    135、pposed to the second-hand market?Luxury products are intended to live forever and to pass through new generations. The second-hand market must be at the heart of luxury brands strategy to reduce their environmental impact. Engaging in the second-hand mar-ket would allow luxury brands to have power o

    136、ver their resale pricing and to control the products traceability and authenticity more effectively. On the other hand, second hand should also be perceived as a catalyst for creativity. In fact, once the second-hand circuit is well controlled, it should allow brands to innovate more and launch more

    137、 exclusive collections to differentiate their new products from their historical ones.Expert InterviewVestiaire Collective and the relationship with luxury fashion houses in the sec-ond-hand market Maximilian Bittner, CEO & Chairman of Vestiaire CollectiveBOSTON CONSULTING GROUP 16Can you tell us a

    138、little more about what Re-SEE is and how it is positioned in the second-hand market?Founded in 2012, Re-SEE is an ultra-luxury second-hand platform for women. Our model is a mix of C2C and C2B2C, but in all cases the products pass through and are stored in our workshops before being resold to collec

    139、tors or enthusiasts looking for exclusive pieces. On the platform, the brands live through the enhancement of products and, behind each piece, the heritage of the brand and the col-lection is told. The pieces displayed are therefore the retell-ing of a unique moment in the history of a luxury fashio

    140、n house. Today, only around 5,000 pieces are offered on the site per year, because each piece is rigorously chosen by our ex-perts. Of course, we aim to increase this figure in the com-ing years, with an ambitious goal of increasing it tenfold in five years, but we want to maintain a very high stand

    141、ard of curation in all casesthe average basket being around 12,000. In addition, we strive to capture the luxury experi-ence. For example, on the seller side, we have a concierge system in place to collect pieces directly from their homes, and sometimes we use stylists to help sellers sort through t

    142、heir closets and choose the pieces they want to sell. For buyers, we systematically repair damaged pieces and offer maintenance accessories.How is the ultra-luxury second-hand market doing?The second-hand market is booming. Our growth is dou-bling every year, driven mainly by handbags and clothing,

    143、though the proportion of high jewelry in our income is growing. We are also soon entering the watch segment. Second-hand models are becoming increasingly integrated into the consumption patterns of ultra-luxury customers, whether they are sellers or buyers. All customers are taking the plunge, and w

    144、e are working hard to address the un-tapped potential of womens closets. How is your platform perceived by the luxury fashion houses?We hope to position ourselves as a partner of the luxury industry. In fact, brands are very interested in our platform because we apply the same discipline in terms of

    145、 stan-dards and DNA, whether it be in the curation of our prod-ucts, in the online experience, or in the selling or buying experience. We are therefore a partner of choice for fashion houses that have not yet integrated the second-hand mar-ket into their internal growth model and that would like to

    146、start selling old pieces or historic collections.Expert InterviewRe-SEE: the ultra-luxury second-hand platform Sofia Bernardin, Cofounder and President of ReSEE17 LUXURY OUTLOOK 2022Customer Relationship: from physical experience to digital reconciliation BOSTON CONSULTING GROUP 18Translating excell

    147、ence into new experiences “Digital is a great opportunity to deliver an im-proved experience to our in-store customers.” Jrme de Lavergnolle, President and CEO of Saint-LouisHampered by certain limitations of Web2, notably leading to a certain level of content standard-ization, luxury brands are not

    148、 yet able to translate the excellence of the physical experience of their prod-ucts to the digital world. In addition, mass-market brands, having invested in digital ahead of time, have dimin-ished the historical differentiation that existed with luxury brands. Luxury brands must therefore continue

    149、along the road to omnichannel service and use data to translate the excellence of the physical experience to the digital world.The luxury segment must also continue to reinvent the physical customer experience (particularly through services) to defend its values of excellence, exclusivity, and commu

    150、nity among its customers. Some luxury fash-ion houses have already invested in technological innova-tion to make themselves more experiential and unique.Web3 (NFTs and the metaverse) represents a new field of opportunities to differentiate and strengthen the sense of community, notably by reintroduc

    151、ing the con-cepts of rarity and ownership and by revolutionizing digital creation. The luxury sector must engage in a test-and-learn pro-cess on Web3 to express its creativity and reinvent on-line customer engagement. This effort will include devel-oping digital expertise and providing tools for co-

    152、creation with the communities engaged in this new space.“Luxury and NFTs rely on several common con-cepts that make them compatible: rarity, innova-tion, a sense of belonging, and, more generally, a link with culture.” Pierre-Emmanuel Angeloglou, Strategic Missions Director Fashion and Leather Goods

    153、 at Louis Vuitton60%18- to 34-year-olds whosee the metaverse asan alternative to socialnetworks2/3luxury consumers who think that luxury lags behind when it comes to digital3.1 The luxury fashion houses are widening their lead in terms of physical customer experienceThe luxury segment is maintaining

    154、 its leadership position in the excellence of the physical experience, which reflects the standards and values of the luxury fashion houses and is one of the best assets for creating and strengthening a sense of community. The fashion houses have always man-aged to surprise their customers and reinv

    155、ent experiences to continually differentiate themselves and guarantee the feeling of exclusivity to their communities. On the experien-tial luxury side, the Ritz Paris has opened a new Ritz Bar offering guests a light show and the projection of constella-tions onto the ceiling, accompanied by a menu

    156、 of 12 cock-tails, one for each sign of the zodiac, in reference to the Belle Epoque when astrology was very fashionable. Other luxury fashion houses are developing stores that offer unique experiences: Herms is testing a multiform immersion around silk, offering visitors different activities relate

    157、d to the creation and design of its iconic fabrics. Parfums Christian Dior is developing olfactory and multi-sensory experiences (makeup sessions, DJ sets, perfume consultations, and more) combined with temporary stores like the Miss Dior Millefiori Garden pop-up in the heart of Los Angeles.Luxury b

    158、rands go beyond excellent products and services in inventive ways. They combine discoveries and emotions, fostering links with and between their customers, who in turn become more like a community. In this context, LVMH is diversifying its offering with the Cheval Blanc hotel in the heart of Paris.

    159、Some products from the groups brands are on display there, conveying a sense of total immersion in the diversity of its luxury fashion houses. 3.2 but are still looking for the perfect omnichannel strategyDespite a preference for in-store buying, which remains at the heart of the luxury fashion hous

    160、es strategy, customers have begun to adopt an omnichannel process: although 80% of customers make their purchase in store, 50% start their product search online. Having, for the most part, turned toward digitization later than mainstream manufacturers did, the luxury fashion houses have had to catch

    161、 up in order to provide a seamless experience between physical and digital points of sale.19 LUXURY OUTLOOK 2022Carrying this standard of excellence over into digital chan-nels remains a challenge, however. A perfect omnichannel system has not yet been achieved, most notably as a result of technolog

    162、ical limitations (IT system interconnectivity) and skill level (vendor training). For example, 64% of consumers believe that luxury brands are falling behind when it comes to the digital market, and 67% believe that the digital experi-ence of luxury brands does not meet the standard of the in-store

    163、experience. With this in mind, some luxury fashion houses are trying make up for the lack of a suitable sensory experience over digital channels by implementing new initiatives. Frank Madlener, the Director of IRCAM, which developed online “perfume sound” experiences, believes that “sound is a power

    164、ful way to engage the senses during the digital experience.” Other innovative approaches attempt to connect the physi-cal and digital worlds while maintaining the concept of a unique experience. For example, in its Paris store, Saint-Lou-is offers the opportunity to visit its crystalware factories,

    165、via a 360-degree virtual reality experience. Jrme de Lavergnolle, President and CEO of Saint-Louis, argues that “digitization isa great opportunity to offer an enhanced experience to ourin-store customers.”Exhibit 4 - Customer Relations Moving toward greater importance of social and e-commerce platf

    166、orms3.3 Customer engagement in the face of content stan-dardization across digital platformsHistorically, in-store customer engagement is highly differen-tiated. But in the digital age, luxury fashion houses face two major challenges: how to stand out in an online environ-ment where ultra-personaliz

    167、ation is commoditized, and how to break away from the rigid constraints placed on content creation on major engagement platforms.In the past, luxury fashion houses have consistently sur-passed their customers expectations, partially thanks to their sales consultants, who built a strong, personalized

    168、 connection with each customer and subtly gathered a large A growing share of the decision-making process is moving onlinein particular, at the beginning of the client journeyPhysical retail accounts for 60% to 75% of transactions; online, growth is faster for multibrand platforms and social commerc

    169、eYearly growth rate in digital ad spending vs. no increase in time spent on social mediaNumber of touchpoints per customer journey from 2014 to 2025Customer acquisition costsThe shift toward 3P will jump from 20% to 50% of online multibrand market from 2019 to 2025Share of online beauty sales that A

    170、mazon and Alibaba will capture by 20255%15%5%BSource: BCG analysismore than+20%From 9to 20+x2Until65%Luxury fashionLuxury beauty18%30%12%20%10%10%60%40% 2019 2025 1P and 3P B Social1P - Multi-brand online wholesalers 3P - Third party plateforms 90% 2019 75% 10% 2025 B 1P, 3P, and Social2025 70-85% 1

    171、P, 3P, and Social 2019 INSPIRATIONTRANSACTIONS50-705-10%20-35%10-15%10-20%BOSTON CONSULTING GROUP 20amount of personal data (such as daily habits, tastes, and family situation). In the digital age, such differentiation is on the decline, which benefits mass-market players that cap-ture and use more

    172、digital customer data for ultra-personal-ization: Nike and H&M are great examples of this. Because they sometimes lag on these issues, luxury fashion houses must seize opportunities for customer engagement and sales that result from collecting and analyzing online con-sumer behavior and purchasing d

    173、ata, if they are to succeed in maintaining their competitive advantage. Michael David, LVMHs Chief Omnichannel Officer, affirms this point: “Digi-tization allows brands to collect implicit customer data, which was once one of the competitive advantages of luxury brands.”Todays major digital platform

    174、s (particularly Instagram and Facebook) heavily restrict creativity and the way in which brands can reach and engage customers (through communi-cation format, use of influencers, and so on). As a result, both luxury brands and mass-market brands run the risk that their content will become standardiz

    175、ed. Such standard-ization would endanger luxury brands fundamentally unique characteristic of standing out through the expression of creative genius and specific sensitivities.3.4 Web3 and NFTs: differentiation opportunities and enhancement of the luxury experienceWeb3, driven by blockchain, NFTs, a

    176、nd the metaverse, has taken center stage for the past year. The metaverse appears to be a new opportunity to move away from brand promo-tion to online brand building. The emergence of new immer-sive and completely personalizable brand ecosystems will undoubtedly lead to the invention of new digital

    177、experiences and the creation of homogeneous ecosystems that reflect the real world, although they are struggling to exist on the internet today (as the equivalent of a virtual Avenue Mon-taigne). Bertrand Lvy, Senior Vice President Global Partner-ships at The Sandbox, says: “All luxury brands are in

    178、terested in the metaverse, and while 90% of the companies we meet simply want to make a nice advert in Web3, luxury brands go beyond this and want to create new experiences. Today, luxury brands make up 10% of the brand experiences that will be available in The Sandbox at the opening in six months t

    179、ime.” Moreover, investing in the metaverse is a way for luxury brands to ensure that they communicate with their current and future customers. In our survey, 62% of the 25- to 34-year-old respondents said they believe that the concepts of Web3 and the metaverse could eventually replace todays social

    180、 networks. This is particularly the case with members of Generation Z and Generation Alpha, who represent the future customers for luxury fashion houses and who spend more and more time online. Web3 could therefore be the cornerstone of the new global strategy for the luxury fashion houses and one o

    181、f the key consumer contact channels. Gautier Pigasse, Head of Innovation and Blockchain for LVMH, concurs: “We are only at the beginning with Web3. We have to let the matter evolve, but it has real potential. We see this as an opportunity to create new intersections and new experiences with customer

    182、s.”Beyond the metaverse, nonfungible tokens (NFTs), although initially rather far removed from traditional approaches in the luxury industry, represent a fantastic opportunity for luxury brands to reset their digital interactions with their communities. On the one hand, NFTs can help consolidate the

    183、 trust built between brands and their customers by reintroducing stan-dards for protecting confidential datain particular, through identification and authentication certificates based on NFT portfolios or through creation of new business models that do not rely on using data.On the other hand, the d

    184、evelopment of NFTs offers new opportunities to enhance the feeling of luxury within the digital sphere. Rinvigorating the concepts of ownership, exclusivity, and rarity, NFTs could boost a sense of communi-ty (as with Dolce & Gabbanas #DGFamily collection, for example) or recast the customer relatio

    185、nship and loyalty model (as with Louis Vuitton giving access to exclusive assets that tell the groups story via Louis the Game). Pierre-Emmanuel Angeloglou, Strategic Missions Director for Fashion and Leather Goods at Louis Vuitton, says, “Luxu-ry brands and NFTs are based on various common concepts

    186、 that make them compatible: rarity, innovation, a sense of be-longing and, more generally, a link with culture.”Finally, some NFT projects could also allow brands to create new business models in which the creator or brand and the community would share the value. To achieve this, Benot Pagotto, Cofo

    187、under of RTFKT Studios, one of the most famous Web3 studios recently acquired by Nike, explains that luxury brands must embrace Web3 codes and move from the customer to the community once and for all: “To successfully create new worlds and experiences in Web3, brands will have to form strong communi

    188、ties. There-fore, they should no longer think of their audience simply as customers, but as a community that they will have to provide tools for in order to create a brand universe together.” Luxury brands have a definite advantage in this field, thanks to their unparalleled experience and expertise

    189、. Today, luxury brands still face the question of how best to encourage engagement. Most will go through a preliminary test-and-learn phase, which, depending on their ambition and strategy, will lead them either to create new, integrated, end-to-end ecosystems or to integrate with existing ecosys-te

    190、ms through strategic partnerships. Either way, it seems necessary to start investing in these new universes now, because, as Patrice Louvet, President and CEO of Ralph Lauren, reminds us, “Creating new different and different universes has always been a core element of luxury brands. Web3 is simply

    191、a natural digital enhancement.” 21 LUXURY OUTLOOK 2022Exhibit 5 - Customer Relations Moving from Web2 to Web3 provides an opportunity for differentiation and a way to extend the luxury feelingReinvention of differentiated digital experiences and improved control over data and data privacyEnhancement

    192、 of the sense of exclusivity and communityCreation of homogeneous ecosystems that reflect the real worldReinvention of customer relationship and loyalty modelsBalenciaga revealed its Fall 2021 collection via a game called Afterworld: The Age of TomorrowDolce & Gabbana launched #DGFamily, a exclusive

    193、 NFT community, in collaboration with UNXDGucci acquired a land on The Sandbox, with plans to build its own virtual world inspired by Gucci VaultLouis Vuitton launched a video game called Louis The Game; players had access to NFTs telling the history of the brandNote: Key features of Web3 are blockc

    194、hain, NFTs, and the metaverse.Creation of new business models: Value sharing between creators and the communityluxury examplesNIKETHE SANDBOXBALENCIAGAGUCCIDOLCE & GABBANAYUGALABSADIDASRTFKTSTEPNLOUIS VUITTONBOSTON CONSULTING GROUP 22Why do you think luxury brands and digitization have had such a lo

    195、ve/hate relationship throughout the years? What are the limits for luxury brands on Web2? Luxury brands share of online sales, which stood at 10% to 15% until 2019, is expected to reach 30% by 2025. The pandemic acted as a catalyst for this and accelerated the partial digital shift that the sector e

    196、xperienced. However, it cannot be denied that luxury fashion houses have never managed to properly adapt to the digital world as it exists todayknown as Web2which is characterized by usabili-ty and interactions between Internet users on controlled platforms (such as social networks). Web2, which is

    197、inher-ently opposed to what luxury brands have always stood for, brings to mind vast sets of information, a lack of differenti-ation, and the usage of personal data. These are all limita-tions for luxury brands, which above all are synonymous with rarity and exceptional customer relations. While cer

    198、-tain brands (for example, Herms, Christian Dior, Francis Kurkdjian, Bollinger, and Boucheron) have taken the plunge by selling their products, offering different experi-ences, and adapting communication via online means, others (such as Brguet and Chanel) have opted to stick with a single communica

    199、tion channel. But it is clear that none of them have really succeeded in transferring the excellence of the physical customer experience to the online customer experience. First, because the features of Web2 (short, coded formats with sensory barriers) have always made it difficult for luxury brands

    200、 to offer a unique opportunity to touch and feel the product, as they would in store. Second, because no fashion house has truly differen-tiated itself in terms of the user experience (UX) and the omnichannel experience, where midrange players such as Zara, H&M, and Alibaba have long since been inve

    201、sting.In addition to luxury brands, doesnt Web2 have its own limitations? Growth patterns over the past decade, based on Web2, show several signs of weakness. First, as they fight a relent-less battle for attention, brands create more content than their customers have available attention, which is g

    202、enerat-ing an unprecedented rise in customer acquisition costs (+20% per year from 2015 to 2020). At the same time, the mega-platforms such as Google, Facebook, and Instagram are increasingly controlling the content that consumers are exposed to, and as a result the brand experience is dwin-dling an

    203、d becoming more standardized, because it is driv-en by algorithm-based recommendations. Finally, although purchasing and using data used to be essential for growth, the era of intrusive marketing is coming to an end, as evidenced by the emergence of data protection regulations and measures that Appl

    204、e and other players in the industry have taken. Given these limitations, how can the luxury and digital worlds coexist? The luxury fashion houses, even more than other compa-nies, need a new digital business model. For starters, they need to make trust a valuable asset at a time when cus-tomers are

    205、increasingly demanding transparency about how companies are using their personal data. Moreover, as is the case with their physical sales points, luxury fashion houses must be able to stand out from the crowd by con-veying their unique identity during the customers online journey. In this context, W

    206、eb3 appears to be a real opportu-nity to go beyond the limits of Web2 and to bring luxury brands and the digital experience together. Based on three key distinctive concepts (blockchain, NFTs, and the metaverse), Web3 is a fantastic playing field for the luxury fashion houses to finally showcase the

    207、ir unique character and demonstrate their creative genius online. Promoting the introduction into the digital sphere of the concepts of possession and rarity and the creation of communities through access to exclusive experiences, NFTs offer new forms of customer engagement. In turn, metaverse plat-

    208、forms give luxury fashion houses the opportunity to create ecosystems customized to their own imageand not tied down by the codes of Web2in order to offer their custom-ers a unique and fun experience. For example, it is possible to imagine a loyalty program that rewards a brands best customers with

    209、NFTs that give them exclusive access to virtual or physical spaces, showcases of certain flagship events (such as parades), or a distinctive digital or nondigi-tal product offering.BCG PerspectiveLuxury and digital: What are the limits? What are the opportunities? Jol Hazan, Managing Director and Pa

    210、rtner, BCG Paris23 LUXURY OUTLOOK 2022Responsibility: from competitive advantage to collective imperative BOSTON CONSULTING GROUP 24Driving environmental, social, and governance change together “Luxury brands are harnessing their prestige to support the green movement.” Hlne Valade, Director of Envi

    211、ronmental Development at LVMH More often trendsetters than trend followers, luxu-ry fashion houses have not been equally quick to make a deep and lasting commitment to stron-ger corporate involvement in the ESG transition. This is in part because working with rare resources as an integral part of cr

    212、eating their products already forced a kind of frugal mindset upon them, but also because they have historically protected the secrecy of their manufac-turing processes, so they are not used to communicating anything beyond the product and the brand.Thanks to their aura and influence, luxury brands

    213、can make sustainability attractive, especially if brands come to be expected to highlight their exemplary prac-tices in order to preserve this aura. Luxury fashion houses have been widely involved in these issues in recent times, but public awareness re-mains limited. It is therefore now the fashion

    214、 houses responsibility to adopt responsible communication in order to influence stakeholders and uphold their title as trailblazers.To fulfill this role as leaders of transformation, we need to work together to find solutions that foster a large-scale movement, rather than working adversarially to c

    215、reate small competitive advantages.“Collaborating with other industries is key to large-scale transformation. This applies to leather, for example.” Marie-Claire Daveu, Chief Sustainability Officer and Head of Institutional Affairs, Kering65%luxury consumers who take into account fashion houses comm

    216、itment to sustainable development when deciding on their purchases60%luxury consumers who think that responsibility for kick-starting the environmental, social, and societal transition lies with luxury brands4.1 Luxury fashion houses are taking action in favor of an environmental, social, and govern

    217、ance transi-tion As described above, luxury brands seem to naturally be a step ahead on societal and, especially, environmental issues such as sustainable products and low volumes). Neverthe-less, luxury fashion houses are facing increased pressure from customers. In 2021, roughly 60% of luxury cust

    218、omers said that they look into the corporate responsibility of the brands they purchase from, compared to just 45% in 2013. Moreover, brands need to engage with a growing number and range of issues. This milieu of heightened transparency, exists in hospitali-ty”Nowadays, the walls of our restaurants

    219、 are transparent” (Yannick Allno, three-Michelin-star chef and founder of the Allno Paris restaurant)and in other sectors. In response to it, luxury brands must strengthen their exemplary practic-esin part to uphold their reputation for excellence in all dimensions, and in part because some customer

    220、s perceive luxury goods as nonessential. When asked why luxury brands should get involved in the environmental transition, consumers emphasize the sectors ability to influence, its international reach, and its financial resources. They believe that luxury brands have the respon-sibility to make the

    221、sustainable desirable, just as they make their products desirable: “Luxury brands are harnessing their prestige to support the green movement” (Hlne Valade, Director of Environmental Development at LVMH). With this in mind, Herms has launched “Petit h,” a unique creative process that involves using

    222、manufacturing materials left over from the fashion houses collections to fashion new pieces. Similarly, Christofle wants to repurpose the dies used to mold different items of cutlery, once they are retired from service, and turn them into unique decorative pieces.Beyond environmental issues, luxury

    223、fashion houses are addressing societal topics and are now taking on a key role in society: “as stakeholders at a local level, it is a natural step for us to take action for society as a whole” (Yves de Talhout, Executive Chairman of the Faencerie de Gien). Particularly in France, luxury fashion hous

    224、es are committed to tackling crises affecting the country, where such efforts align with 25 LUXURY OUTLOOK 2022their DNA. This was the case in the aftermath of the Notre Dame Cathedral fire, prompted by the idea that Frances cultural influence underpinned the influence enjoyed by the countrys luxury

    225、 products. Similarly, during the COVID-19 health crisis, many luxury fashion houses have deployed their production facilities to benefit society (for example, the Guerlain and Parfums Christian Dior produc-tion units manufactured hand sanitizer) or have volun-teered their services (for example, Pote

    226、l et Chabot support-ed frontline health care workers by providing them with over 50,000 meals). Exhibit 6 - Responsibility Some ESG themes are particularly popular in the mediaIn addition to these strong regional commitments, luxury fashion houses are involved in key societal causes over the long ru

    227、n. For example, LVMH has been active in the fight against AIDS, and Kering appointed Emma Watson as a group directorin particular, for her work in behalf of wom-ens rightsto improve the treatment of models. Number of posts (over 10k) on media and social networks about 36 ESG topics identified as mos

    228、t popular when associated with luxury, fashion, over the past two years and their average growth per semester Human rights and working conditionsOptimization of the products life cycleBiodiversityAnimal welfareSome ESG themes are emerging : Source : BCG Analysis based on occurrence quantification of

    229、 116 ESG themes in information international media (e.g. Bloomberg, Reuters, The New York Times) and social media.-20%-10%0%10%20%30%40%70%80% Semi-annual compound growth rateImpact of deforestationGHG emissionsOughour*Single-use plasticPhilanthropyCruelty free*Anti-corruptionScandalesDecent wage*Ch

    230、arityUse of renewable enrgyHealth and safety standardsAvailable rentalForced Labor*Human RightsChemical productsProduct recyclabilityApprovisionnementSupply of raw materialsPossible resaleUpcyclingCircularityImpact on biodiversityRepair services Waste of waterNo fur*Sexual harassmentOverproductionSu

    231、pply ChaintraceabilityTextile wasteControversyManagement of unsold productsCSR StrategyGender equalityMeetoo*Leather free*1000001000000TRENDING TOPICSDYNAMIC MAINSTREAM TOPICSEnvironmentalGovernanceSocial / SocietalBOSTON CONSULTING GROUP 264.2 but they must unite and move from a competi-tive approa

    232、ch to a collaborative approach to have a significant effect In recent years, some luxury brands may have viewed being green as a source of competitive advantage. However, the luxury fashion houses that were trailblazers on these issues must now encourage the rest of the industry to place sus-tainabl

    233、e development at the heart of all practices. Based on their DNA of leading by example and having robust and environmentally friendly processes, they must now transi-tion from a duty toward quality to a duty toward legacy. Such efforts are evident in the work of certain groups (such as Kering and Per

    234、nod Ricard via Martell Mumm Perrier-Jout) to publish online standards on topics like regenerative agri-culture, which they define in collaboration with their suppli-ers to help drive the whole industry forward. “We are taking ownership of our entire value chain and striving to externally promote the

    235、 regenerative farming techniques that are already being used on our farms” (Axelle de Buffvent, Style Director at Martell Mumm Perrier-Jout). In order to transform the entire value chain, luxury brands have begun to invest in the necessary technological building blocks (traceability, recycling, raw

    236、materials processing, and so on) and to work collaboratively to set standards. As Anne Dellire, Group Marketing and Strategic Planning Director at Richemont, points out, “Global sustainable development goals and the hopes of creating a responsible industry can only be achieved through collaborative

    237、initiatives at the sector level.” In this vein, the Kering group and the Richemont group joined forces and have been working for many years on issues related to traceability in jewelry supply chains. Simi-larly, the Aura Blockchain Consortium initiative, spearhead-ed by LVMH, Prada, and Cartier, aim

    238、s to develop the first international luxury blockchain to communicate information about authenticity (to combat counterfeiting), responsible sourcing, traceability, and sustainability. This technological innovation, based on a secure digital platform, will pair a product ID with a customer ID to mak

    239、e a products history accessible and to provide proof of authenticity at every stage of the value chain, from raw material to point of sale. Now, however, there is a pressing need for funding to transition this endeavor from a pilot project to an innovative, commer-cially viable, and practical soluti

    240、on. Luxury fashion houses could play a key role in providing the needed financial sup-port, which is estimated at between $20 billion and $30 billion per year for the fashion industry. The stakes involved in successfully transforming the luxury industry are very high, and each stakeholder alone does

    241、 not have sufficient influence to accomplish it. This is particularly true with regard to transforming sectors in which several industries participate. Take the example of leather, which encompasses agri-food, tanneries, livestock, luxury, and other sectors. Unless stakeholders form coalitions, they

    242、 will find it extremely difficult to achieve a far-reaching and effec-tive transformation of practices. “Collaborating with other industries is key to large-scale transformation. This applies to leather, for example” (Marie-Claire Daveu, Chief Sustainability Officer and Head of Institutional Affairs

    243、 at Kering). Some luxury fashion houses are taking action through Kerings Fashion Pact initiative, which brings together international brands like Ralph Lauren, or by joining other coalitions of stakeholders, such as OP2B (One Planet Business for Biodi-versity). Nonetheless, significant obstacles re

    244、main, especially in developing common definitions and standards. This is an-other key issue on which the industry must show a united front: in the absence of a strong coalition, the standards of tomorrow will be set without fully taking into account the sectors specific needs. That is what is happen

    245、ing today with the Product Environmental Footprint regulation, which will assign an environmental rating to clothes without fully integrating the concept of product durabilitya factor that luxury brands prize. As a result, high-quality products will undoubtedly have a lower rating than low-quality p

    246、roducts, just because the latter are made from recycled polyester fabrics. Manufacturing standards aside, by joining forces, luxury fashion houses can design a new sustainable economic model, in which protecting nature takes center stage and is fully integrated into companies profit and loss stateme

    247、nts. The idea is to evaluate projects not only from a financial point of view, but also in terms of the “price of nature.” This is partly what Kering has undertaken with its Environmental Profit and Loss (EP&L) Account. 4.3 laying the foundations for responsible commu-nication to uphold their role a

    248、s trailblazers before regulators enforce constraints on themThe luxury sectors new role and new responsibilities pave the way for responsible communication, in which brands strike a balance between the potential for competitive advantage and the risk of falling behind. Moreover, luxury fashion house

    249、s must resolve a slight disconnect between their historical penchant for secrecy and the need to draw back the curtains. “We are now forced to communicate. We can no longer do certain things discreetly” (Jean Cassegrain, CEO of Longchamp). The risk of falling behind is exemplified by luxury fashion

    250、houses positioning in the ESG rankings compared with more mainstream brands. On the other hand, opting for communication that bolsters environmen-tal and societal issues could influence other industry stake-holders and thus promote the industrys collective interest. “We are an industry built on expe

    251、rtise, truth, and honesty. If we lose our honesty, then we have lost the battle” Marc Chaya, Cofounder and CEO of Maison Francis Kurkdjian.27 LUXURY OUTLOOK 2022Exhibit 7 - Responsibility Luxury fashion houses ranked in the bottom 40% of most ESG rankingsTop four reasons why the luxury industry shou

    252、ld commit to the environmental transition (%)Relative ranking of french luxury houses on various esg benchmarksBESTWORSTWater andchemicalsEmissionsMaterialsWorkersrightsTransparencyWasteBenchmarkKTC2021 Gender BenchmarkCorporate Human Rights BenchmarkAverage of luxury brandsAverage of mass brandsSou

    253、rces: Corporate Human Rights Benchmark; Gender Benchmark; KTC Benchmark; BoF Sustainability Index, BCG analysis ; BCG survey conducted in April 2022 in France, the US, and Europe.Note: The selection of companies by BoF was based on the 15 largest fashion and luxury companies by revenue.International

    254、 outreachAbility to influenceFinancial resourcesExemplary nature40%36%33%24% 80706050403020100BoF Sustainability IndexLuxury brands are poorly positioned in ESG rankings compared to mass-market players yet they have the means to move up, mainly thanks to their influence and their international auraB

    255、OSTON CONSULTING GROUP 28Why did Chlo seek B Corp certification? Many years ago, Chlo committed to an ESG transforma-tion and has launched numerous projects around social, societal, and governance issues. In 2019, the companys leaders expressed their strong resolve to ramp up efforts in these areas

    256、and to do so in an objective way that transpar-ently showcases the changes made. To this end, B Corp certification not only allowed the entire organization to be aligned with a clear vision and objectives, but also made it possible to objectively evaluate the changes undertaken by Chlo.How exactly h

    257、as B Corp certification changed things at Chlo? The B Corp certification applies to all of the companys activities. It is difficult to summarize all of these changes, which, again, have been taking place at Chlo for many years. If we were to give a few examples, I would say that B Corp certification

    258、 has enabled us to implement strong governance on ESG issues. We now have a committee of external experts who analyze and advise us on our trans-formation. In addition, all Chlo employees now have ESG objectives. Some already did, but B Corp certification accel-erated this practice and led us to rol

    259、l it out across all em-ployees. Similarly, on the manufacturing side of things, many proj-ects had been started, but the B Corp efforts forced us to take everything a step further, especially regarding our many suppliers. Finally, B Corp certification has undoubt-edly changed Chlos image in the job

    260、market, as it has really boosted our attractiveness in recruiting and retaining our talent.What are the next ESG challenges for Chlo?Of course, B Corp certification is not the be-all and end-all, and the company continues to strive to improve on all aspects of ESG. For example, we are currently work

    261、ing on setting up a digital passport for our products to improve traceability and authentication. In terms of managing our upstream resources and downstream inventory, we are also working to improve our planning and forecasting technologies to ensure that we are always manufacturing volumes that are

    262、 as close to demand levels as possible, thus minimizing our environmental impact. Committee member interviewChlo: First French luxury brand with B Corp certification Aude Vergne, Chief Sustainability Officer at Chlo29 LUXURY OUTLOOK 2022Globalization: from unreserved globalization to the reevaluatio

    263、n of geostrategic dependencies BOSTON CONSULTING GROUP 30Exploring new regions and preempting risks “As consumer habits in china are changing very rapidlywhat was true three years ago is now out of datefashion houses must constantly respond to new trends.” Frdric Noyere, Managing Director at Jebsen

    264、BeverageSome currently underrepresented markets offer significant growth opportunities for luxury fashion houses. This is the case in India and in certain regions of China, where local players have begun to emerge. Entering overseas markets requires an in-depth under-standing of regional consumers t

    265、astes and preferences, which sometimes differ significantly from the brands traditional focus. Luxury fashion houses must find the right balance between adapting to local market needs and maintaining their own values and identities.International expansion and the pursuit of new markets are heighteni

    266、ng the dependence of luxury fashion houses on overseas markets and exposing the companies to new risks. They must therefore be agile, especially since their commitment to society, the environment, and the high expectations of their stakeholders may sometimes re-quire them to take a stand.“There are

    267、two main challenges that were faced with. The first is to strike a balance between the growth of our fashion house in a buoyant and lu-crative market, and a dependency on that very market.” Christophe Caillaud, CEO of Liaigre65%amount of total growth in the luxury sector between 2021 and 2025 that w

    268、ill occur outside Europe and the US5.1 There are new markets still to be explored There are new markets to be explored by luxury fashion houses, as cultures evolve and societies grow wealthier, underscoring the continued international appeal of the luxury sector. In China, for example, certain verti

    269、cals remain underrepresented. Market penetration for perfume there is estimated at about 5%, compared to about 42% in Europe and 50% in the US. The perfume vertical has recently experi-enced strong growth in China, driven by younger consumers who see perfume as a way to express their personality. Al

    270、though the Chinese market ranked tenth in the world in 2021, it is on track to become the second largest by 2025. Other markets remain untapped or underserved by the industry. For example, we expect the Indian luxury market to grow vigorously, reaching $3.7 billion by 2026, driven by population grow

    271、th (70% more households with an annual income of more than 200,000 by 2025) and increasing urbanization (from 35% today to 42% by 2025). The Middle East represents another important reservoir for growth.5.2 where luxury fashion houses strike a balance between preserving their own identities and adap

    272、ting to local needs Luxury fashion houses must respond to different expecta-tions in these new markets, which means that they must strike a balance between preserving their brand identity and adapting to local aspirations. For example, entering the Chinese market requires an in-depth understanding o

    273、f the tastes, customs, values, and traditions of the Chinese people. Armed with this under-standing, luxury fashion houses can adapt their products. For example, Christofle has enriched its iconic MOOD collec-tion with MOOD Asia, replacing specific Western utensils with silver-plated chopsticks and

    274、broth spoons. But will the likes of Guerlain, Francis Kurkdjian, or Herms have to change their signature scent if they want to tap into the potential for growth that the Chinese fragrance market offers? This very real clash involving brand identity, history, and local culture, which confronts Europe

    275、an and American brands, potentially offers a competitive advantage to new local entrants that can capitalize on a sense of national pride, especially in light of Xi Jinpings recent efforts to promote Chinese artisan goods.Meanwhile, the health crisis and environmental issues have significantly alter

    276、ed consumption patterns throughout the world, with a fundamental trend toward “relocalization.” If the power of certain markets were to increase, new pres-sures could arise between European companies need to preserve local and traditional expertise and their need to reduce the environmental impact o

    277、f transporting products from production areas to consumption sites. 31 LUXURY OUTLOOK 2022Exhibit 8 - Globalization The COVID-19 crisis has greatly accelerated consumer adoption of perfume in China5.3 and must be increasingly agile in light of geopo-litical risksAlthough French luxury goodsa symbol

    278、of the French way of lifeenjoy international renown, they must contend with increased dependence on foreign markets such as China, the US, and the Middle East, which requires them to take new geopolitical risks into account. In the past, luxury goods might be considered a simple matter of producing

    279、high-quality products; but today, the sector, because of its size, is accountable not just for specific economic issues but also for societal issues. The recent example of the war between Russia and Ukraine illustrates the need for luxury brands to take a stand, whether by closing stores (as LVMH, K

    280、ering, Chanel, and Herms have done) or by making specific references during fashion shows (as in the case of Louis Vuitton, Balenciaga, and others). These actions were quick and decisive for a market that represents only a small part of the luxury goods mar-ket revenue (estimated at less than 10%).

    281、But what would happen if a choice between ethical conduct and financial interest were to arise in a conflict that had adverse implica-tions for broader geographic markets?“Although the US and China will continue to dis-proportionately drive luxury spending, opportuni-ties in the Middle East, Southea

    282、st Asia, and India will grow as a result of underpenetration. To suc-ceed, luxury brands must manage geopolitical risks and balance local market adaptation and client engagement with preservation of their own values and identities.” Sarah Willersdorf, Managing Director and Partner, BCG in New YorkBe

    283、fore COVID-19, wearing perfume was strongly related to social activitiesThe Chinese also use perfume to express themselves and their personalitySources: Givaudan; expert interviews; BCG analysis.1 Penetration is defined as ”wear perfume in China, ”wear perfume daily in France, and ”buy at least one

    284、perfume per year in the US. 2 Givaudan consumer survey (China, 2021).Evolution of the chinese perfume market, 20152025 ($billions)WHY DO YOU WEAR PERFUME?2To feel trendy36%To feel beautiful33% 0.70.70.91.11.41.62.22.73.44.15.0x2.3China should finally become the worlds second-largest market for perfu

    285、me”Philippe Bnacin 15 17 20 19 16 18 21 22 23 2425China is an underpenetrated market representing a strong opportunityCOVID-19 revealed a shift in attitude toward perfume .ChinaFranceUS-Perfume penetration by country (2021)142%50%5%1.4 billion population70 million population330 million population an

    286、nouncing the potential of the Chinese perfume market BOSTON CONSULTING GROUP 32Youre currently working on opening a design office in China. Could you tell us more about the reasons behind this expansion? Historically speaking, Maison Liaigre was operating in Asia exclusively in two cities: Bangkok a

    287、nd Singapore. But since 2015, weve had the goal of expanding further in the region. Since 2019, weve successively opened four other show-rooms: in Shanghai, Seoul, Hong Kong, and Beijing. Wed like to open two or three more in China over the next five years. China is currently the largest territory f

    288、or luxury goods. Its a market that is growing rapidly. Currently, more than 10% of our projects are in China, and this has been increasing steadily over the past three yearswith a dou-bling of our turnover every year. Having said that, weve found over time that the interactions with our Chinese cust

    289、omers and their perspectives on time are changing. While its not appropriate to make generalizations, the experience weve had so far with Chinese customers indi-cates a somewhat different way of thinking about architec-ture and design projects compared to what we are used to, where time is much shor

    290、ter than with our existing Europe-an or US customers, and where the focus of interest is different. In order to adapt to this way of working, we decid-ed to open a design office in China with a mixed team comprising both employees from Paris and Chinese col-leagues trained by us, in order to be able

    291、 to communicate and understand the expectations of our customers on site. What issues have you faced or are you facing in light of this expansion? There are two main challenges that were faced with. The first is to strike a balance between the growth of our fash-ion house in a buoyant and lucrative

    292、market, and a depen-dency on that very market. Recent events between Ukraine and Russia mean that we need to be cautious and not stake everything we have in the region. At the same time, we need to ensure that we preserve the soul of our fashion house when our clients have very specific expectations

    293、. We create according to requirements, but we always make sure to retain a consistency with our identity, our previous proj-ects, and our current offerings. Committee member interviewMaison Liaigre opens its first design office in China, a review of local market adaptation Christophe Caillaud, CEO o

    294、f Liaigre 33 LUXURY OUTLOOK 2022What are the characteristics of and changes in luxury purchasing behavior in China?Its crucial to recognize that China is characterized by its geographical, cultural, demographic and social diversity. Luxury fashion houses must therefore address a multitude of subsegm

    295、ents to meet the very varied expectations of Chinese consumers. In reality, its very difficult for a fash-ion house to be a leader across all segments, because positioning can be so varied. As consumer habits in China are changing very rapidlywhat was true three years ago is now out of datefashion h

    296、ouses must constantly re-spond to new trends. Today, discerning Chinese customers are looking for real identity distinctions rather than buying a specific brand. They rely less and less on logos and are more aware of time and place, as evidenced by the explo-sion of second-hand and craft brands. At

    297、the same time, the emerging middle classes who need clear reference points are still responding to brands and logos. Moreover, environmental issues are taking center stage with mem-bers of the young, urban, and affluent generation, who are more focused on core values (such as quality of life and hea

    298、lth) than on economic growth and personal enrichment at any cost. One question is whether the sacrifices (for example, long working hours, coal plants, and smog in winter) are too unreasonable. In a country that is learning to modernize (not Westernize) at a rapid pace, the emer-gence of these issue

    299、s could have a real impact on the role and positioning of brands. How are luxury fashion houses adapting to the Chi-nese market from a marketing and communications perspective?It has now been more than 20 years since the Chinese market was identified as a real growth driver, but the cost of entering

    300、 the market has continued to rise, and second-ti-er brands have been adversely affected. Digitization has greatly accelerated the concentration of brands. If youre not on the homepage of consumers smartphones, you have a hard time “existing” and standing out. Additionally, in order to thrive, brands

    301、 must embrace an increasing degree of China-specific adaptation, which requires large local teams that can fully understand the market and adapt products, marketing, and communication according-ly. Cognac, for example, is not purchased via the same distribution channels, consumed at the same social

    302、occa-sions, or viewed in the same way in China as it is in the US or Europe. Luxury fashion houses cannot afford to maintain a monolithic vision of their brand in China. And while they tend to capitalize on their heritage, their expertise, and the origin of their products to communicate with consume

    303、rs, Chinese customers expect to be told about their future, to be projected into the future.In your opinion, what are the other challenges in this market?In the future, Western luxury fashion houses will surely have to work more closely with Chinese-origin fashion houses. This is already the case fo

    304、r wines and spirits and for cosmetics: local companies in these segments have existed for decades or even centuries for spirits, and hold more important positions than Western companies in the Chinese market. For example, baijuChinese rice alco-holaccounts for more than 95% of the market. At the sam

    305、e time, certain Chinese brands in various categories (such as Chow Tai Fook Jewellery Group in jewelry and Guo Pei in fashion) are beginning to emerge internationally, boosted by a policy that aims to promote local expertise. It is therefore not unlikely that some of them will eventually capture sig

    306、nificant market share. Expert InterviewExternal perspective at Jebsen Beverage, a brand owner, importer, and distributor for a range of beverages, including wines and spirits, for over 100 years in China Frdric Noyere, Managing Director at Jebsen BeverageBoston Consulting Group partners with leaders

    307、 in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we help clients with total transformationinspiring complex change, enabling organizations to grow, building compet

    308、itive advantage, and driving bottom-line impact.To succeed, organizations must blend digital and human capabilities. Our diverse, global teams bring deep industry and functional expertise and a range of perspectives to spark change. BCG delivers solutions through leading-edge management consulting a

    309、long with technology and design, corporate and digital venturesand business purpose. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, generating results that allow our clients to thrive.Uciam volora ditatur? Axim voloreribus moluptati au

    310、tet hario qui a nust faciis reperro vitatia dipsandelia sit laborum, quassitio. Itas volutem es nulles ut faccus perchiliati doluptatur. Estiunt. Et eium inum et dolum et et eos ex eum harchic teceserrum natem in ra nis quia disimi, omnia veror molorer ionsed quia ese veliquiatius sundae poreium et

    311、et illesci atibeatur aut que consequia autas sum fugit qui aut excepudit, omnia voloratur? Explige ndeliaectur magnam, que expedignist ex et voluptaquam, offici bernam atqui dem vel ius nus.Nem faccaborest hillamendia doluptae conseruptate inim volesequid molum quam, conseque consedipit hillabo. Ima

    312、io evelenditium haribus, con reictur autemost, vendam am ellania estrundem corepuda derrore mporrumquat.Add Co-Sponsor logo hereFor information or permission to reprint, please contact BCG at . To find the latest BCG content and register to receive e-alerts on this topic or others, please visit . Follow Boston Consulting Group on Facebook and Twitter. Boston Consulting Group 2022. All rights reserved.06/22

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