A New Old-Fashioned Kind of Luxury Magic

It wouldn’t be a stretch to say that in recent years, many luxury businesses have become leaner, meaner operating machines with, for instance, strong retail processes, solid supply chain infrastructure, and elaborate CRM systems. All of these initiatives have brought a great deal of professionalism and structure to our industry, after years of functioning often as small, geographically-focused family-run businesses.

As we enter what appears to be a protracted economic downturn, these new processes will hold many of us in good stead. But as we are professionalising, we must also be sure not to relinquish the essence of what we do: surprising and delighting customers with distinctive products and services.

This month, with doom-and-gloom news on repeat in the background, I asked our correspondents to come back with some stories of what is working in key luxury markets. The good news is that even in this downturn, there are companies that are excelling, providing early examples of what, in today’s economic climate, excites consumers enough to make them spend.

We can glean some thought-provoking insights from the stories they tell. For one, it seems ‘small’ is the new ‘big’. Many of the cases cited by our writers are independent family-run businesses whose products and services are extremely special. Sound familiar?

From Tokyo, W. David Marx signals ICHO, an independent fashion business, of whom I have been a customer for some time now. Three years ago, they made me a wonderful boiled cashmere blazer that still fits like a glove. Today, even after late night flights, unexpected London drizzles, and, I’ll admit, not my best of treatment, it is still in impeccable condition.

This, in contrast with the elegant wool coat I bought a year and a half ago from a major luxury menswear label that shall remain nameless. The cut is excellent; yet over time, the fabric has started to pill around the sleeves and collar. I do still wear the coat because I love the way it fits, but I doubt it will be a year before it is falling apart and can no longer be worn in public.

In these economic times, customers will return to brands like ICHO because they remember the high-level of service they received and the enduring quality of their products. ICHO creates items that last, a refreshing change from the ephemeral fast-fashion products and indifferent service to which we have all become accustomed — even from so-called ‘luxury’ brands.

This account of small-and-focused is also played out in Guy Salter’s contribution from London, telling The Wonderful Story of Soane, a high-end British furniture manufacturer whose business continues to grow. Soane’s products, he says, “will last almost forever, never go out of fashion and are demonstrable evidence of good taste.”

Helene le Blanc reports that other niche UK businesses like Oliver Goldsmith and Globe-Trotter are benefitting from A Singular Focus, which enables them to build their businesses on the strength of their continued dedication to perfecting a single product category.

In America, Rebecca Ann Proctor hails a Luxe Americana, noting they are taking a slightly different approach State-side. With the new U.S. administration in place, businesses there, big and small, are celebrating a newfound pride in all things American. This has been led by Michelle Obama’s high-profile support of young American fashion businesses, as well as mass stalwarts like Gap and J. Crew.

And finally, our Editor-at-Large, Sameer Reddy, scoured the Internet for the most interesting new online business models across the luxury industry. In The Online Imperative, he concludes that, especially now, e-commerce is a most inviting opportunity for growth — and survival.

Reading through Sameer’s list of online innovators, it is clear we have seen rapid change in internet use among independent businesses, and yet, the major luxury brands have yet to fully embrace it. Sameer advises they should, or they shall proceed at their own risk.

The bad news, by the way, is that things are still extremely tough out there. CEOs I speak to are downbeat. At a London Fashion Week event last week, Robert Bensoussan, industry darling and former CEO (and still a shareholder) of Jimmy Choo, commented that he has never seen a market like this. As he walked down Madison Avenue in New York, he entered store after store that was “completely empty” in the middle of fashion week.

Just how long this crisis will endure, nobody can say for certain. But, taking these lessons in aggregate, it occurred to me that the combination of old-fashioned focus on what we do best and pride in who we are, together with a forward-looking adoption of new technologies is a good place to start.

It’s about time we took a look inside our businesses to make sure they haven’t lost their creative heart and soul. Add a bit of internet technology and an unwavering focus on the customer, and we have the recipe for a new old-fashioned kind of luxury magic.

Imran Amed
Editor-in-Chief