http://www.europeanbusinessreview.com 67points to the luxury sector requiring people with
skill sets that enable them to display a mix of apti-
tudes: able to fit in with the changes in the industry
environment, connect and work within the luxury
sector areas
related to the right-brain, fit with the brand and
company culture, and demonstrate competencies
related to the left-brain. In this context, it is worth
taking a look at how each of the four populations
mentioned previously operates.
Craftsmen are an inherent, historical and
irreplaceable component of luxury. In former
times, catering for local or regional customers,
the luxury product required skills mainly focused
on their craftsmen’s passion for excellent work
and creative design that possessed their signature
differentiation. The same is true today in several,
specific brands but perhaps best encapsulated by
the Swiss watch industry. And this craftsmanship,
although subject to outsourcing among others in
the industry, is seen as a major attribute for the
future. To quote Fulvia Visconti Ferragamo:
“Craftsmanship is the key to luxury, because I think the
time has come back to restore the value of the expertise of
craftsman and to look to the solid foundation of the past
to create the new.”
Entrepreneurial designers: Van Cleef, Hans
Wilsdorf, Arpels, Guerlain, Krug, Rothschild,
Chaumet brothers, Coco Chanel, Gucci and
Breguet are all examples of designers with an
entrepreneurial flair. In the days where designers
started their businesses with their passion and a
belief in what they created, the objective of busi-
ness was not to maximise shareholder value. As
such, they did not feel the need to hire talents
in retail, finance, marketing or branding and titles
such as CFO, COO or HRD were unknown and
rather distasteful badges secondary to their art.
Times have changed. Gucci, Hermès, Chanel and
Vuitton all need these professional skill sets to
ensure that the beauty created by their designers
remains sustainable and profitable.
Unlike those in other industries, the sales
team in the luxury sector has to juggle constantly
between left- and right- brain patterns and indeed
mix them on a daily operational basis. The sales
person has to be a practical artist, blending stra-
tegic thinking with a dash of creativity. Such
diversity is not easy to find in a single employee
“Craftsmanship is the key to luxury, because I
think the time has come back to restore the value
of the expertise of craftsman and to look to the
solid foundation of the past to create the new.”
Fulvia Visconti Ferragamoand even if it is, the particular blend is often
difficult to manage. The major challenges facing
sales are how to make profit without compro-
mising the brand’s DNA, grow market share
without diluting the brand offer, and retain the
low product accessibility inherent to the luxury
aura while still selling as much. To give an
example of the dilemma, 94% of young Japa-
nese women now own a Louis Vuitton product
with the risk of making the brand less exclusive:
how do sales maintain that selling rate while
guarding brand exclusivity? Hermès and Bottega
Veneta provide different examples and another
extreme: while Hermès innovates and customises
to woo Chinese and Japanese clients, they stick
firmly to their cultural roots and heritage; and
while Bottega Veneta sells, there is relatively low
brand awareness compared to competitors such
as Armani. How to manage the sale of a brand
that displays no logo and promotes itself through
discreet subtlety?
With the shift from family-run, entrepreneurial
luxury businesses to global players, professional
managers have become important factors for brand
survival and growth. Multi-brand conglomerates
whose business model incorporates globalisation,
professionalisation, commercialisation, centralisation,
and profit maximisation for their shareholders need
them. So do the handful of small, family-run brands.
Gone is the “Chef de Maison” (Head of the House).
Managers working in luxury today require diversi-
fied skill sets that include strong leadership, effective
communication, and efficient strategy-making and
financial skills. Most will have come from reputed
business schools and possess experience across
sectors with a proven record of well-rounded
management and open communication skills. They
also have to know how to recruit, motivate and retain
talent within the brand and should be characterised
by having a keen insight for change and development
within the market regarding market entry, expansion,