Serving luxury consumers globally requires resources with skills to work in this industry. Luxury consumers are at least 330 million individuals, globally according to Bain & Company. Yearly, there are a net total of 10 million additional consumers. This growth is being driven by various factors such more women playing a stronger role in economies.
We now have more and more women with a stronger spending power due to their roles in society as entrepreneurs, CEOs, Managing Directors, etc. these are women in senior or middle income professionals from Nigeria, China, India, South Africa and other countries. Globally, there is a shortage for human resources in the luxury industry. Men still have very strong purchasing capabilities. New millionaires and billionaires are purchasing more and more luxury goods and services. Luxury boutiques remain an important channel for luxury products and luxury consumers. Hence the importance of having skills with excellent customer service capabilities.
How do you manage these clients? How do you service clients from Nigeria, Russia, India, China, and ensure that they get an unforgettable experience? How do you teach your staff to advise a client on purchasing a $25, 000 crocodile bag yet your staff earns 10% of the cost of this bag and has never seen a crocodile bag till they joined your retail business? If your staff is intimidated by clients purchasing items that are costly such as a Bottega Veneta bag for 60 000 euros, then you have the wrong staff in your business. How do you transfer skills from your artisans to new staff that has potential to be great artisans?
Does your staff understand the difference between a luxury good (e.g. Chanel) a premium good (e.g. an Audi) and a fashion product (e.g. Dior). Do they understand the needs of the selected customers, and deliver the sore solution, the packaging of the goods and services. A large number of individuals from the hospitality industry are highly sought out to work in the luxury industry, especially from luxury hotels. Also, professionals from the airline industry that have worked on first class and business class have opportunities in the luxury industry. This is due to their profound understanding of customer service at a very refined level. Having staff that speak globally spoken languages is important as these are the languages spoken by the main luxury consumers: English, French, Mandarin, Yoruba, Hausa, Arabic Russian and Spanish. Luxury is global. It is not based in one country. Its clients travel the world to purchase that item or that service.
It is important to understand a client, and give them the luxury experience that they desire in a retail boutique. In luxury retail, customers seek advice from the sales consultant and create deep relationships with them. Customers seek experiences that make them feel that their purchased commodity or service was the best decision ever made for that high price.
When you look at the luxury business, there are other skills that are pertinent to its success. The staff needs understand the brand, what it stands for, its origin, its creation, home and history. The Gabardine coat by Burberry by Thomas Burberry, it was water proof, strong and light. A make of national pride worn by the army. Then it was worn by royalty. Another make of national pride. The Gabardine coat speaks history. That is its story. The famous Chanel bag by Coco Chanel, which is black and is known as 2.55, was created on the 2nd month, February of 1955. That is its story. Boucheron, known for its fine jewelry, was created at Place Vendome, in Paris. That is where the idea was born, created, developed and lived. Histories, origins, inspirations, of the creator, the designer and the owner of that luxury brand must be understood by the staff. It is the heart of the business.
The industry needs skills that understand and create windows that present luxury in that store to that passerby and make that passerby stop and want to be in shat shop enjoying the environment. Many prospective shoppers look at windows to know what is new in a store, assess a brand’s style and make their purchasing decisions. Consumers view windows as a key influencer and communication tool to their purchasing decision.
The vision of the luxury owner is crucial in the luxury industry like in any other industry, in luxury it should determine the staff you hire.
Maryanne Maina
MBA in Luxury Brand Management
HEC Paris, School of Management
@njerimaina
laluxe@gmail.com
