Independent Luxury: The Four Innovation Strategies to Endure in the Consolidation Jungle

268 Pages·2015·7.196 MB·English

by  Jonas Hoffmann, Laurent Lecamp (auth.)

Praise for Independent Luxury
“In Independent Luxury, Jonas Hoffman and Laurent Lecamp tell luxury entrepreneurs
how to prosper on their own, without being absorbed by one of the big luxury groups.
No doubt, they will pay close attention to the authors’ message: ‘innovate or perish’.
But Independent Luxury deserves a wider readership than that. It is a fascinating explo-
ration of what innovation in luxury means, brimming with examples of producers of
luxury that are trying to make it on their own. Anyone interested in the strange world of
luxury goods will find enlightenment in this book.”
–Brooke Unger, The Economist
“This book on luxury is totally different from others... It is a guide for those who think
innovation is the key to understanding luxury. And it is... this book is full of examples
which take you on the road to discover... to understand how to manage innovation
through code breakers and game changers... examples are fascinating from Martin Mar-
giela to Tom Ford or Miuccia Prada... and you will discover the mysterious Encelade
1789... or the forest of Knysna. With this book, the reader will have access to many
strategies to promote innovation as an answer to the present crisis... and a precious tool
to penetrate all markets and surprise the customers of the world.”
–Christian Blanckaert, former executive VP of Hermes International,
Visiting Professor, ESCP-Europe
“We read many books in our lives – ones we like or dislike; ones we find interesting or
boring; even ones from which we benefit a lot or nothing. However, every book actually
plays the role of the Wing Chun wooden practice dummy for me: a loyal training mate
who teaches me the art and key point of each move. As a member of the world horol-
ogy, I also read a lot of books, concerning history, culture, craftsmanship and so on. But
this book opened my mind, gave me more knowledge, techniques, and perspectives, so
I am better equipped to deal with the world.”
–Lei (Louise) Lei, Deputy Feature Director – Watch & Jewelry,
Shanghai Morning Post
“The luxury industry is reaching the limits of its efforts to capture the attention and
purchasing power of a global audience. At the same time, niche and exclusive brands
are promising to be the true purveyors of luxury in the eyes of the consumer, allowing
them to sustain their business models in the long run. Independent Luxury captures the
zeitgeist at a moment when the global consumer is becoming more discerning with their
expectations on what constitutes luxury. Hoffmann and Lecamp examine a wide range
of independent luxury brands to offer a set of specific innovation strategies that is useful
to any industry professional. They highlight a range of approaches that a new player in
the industry can adopt to grow, sustain and succeed as an independent brand.”
–Burak Cakmak, Dean of Fashion, Parsons School of Design
“I bet here’s almost everything you would like to know about the independent luxury.
Complex facts and statistics are explained in simple words and conclusions are often
unexpected. This worldwide analysis is definitely worth reading. Independent luxury
brands, the endangered industry species, surely need to be studied and protected like
the Knysna elephant. What elephant, you ask? Open the book!”
–Alexander Vetrov, Chief Editor, Armband Uhren Russia; Mercury Group
“The authors of Independent Luxury underline for their readers the importance that
vision, authenticity, and people should have for luxury brands – not only on the com-
munication level but in the way to design their products and run their businesses. I agree
with them and salute their hard work to reach out to the industry and deliver a mes-
sage. Their work both rings the alarm by exposing the current situation, and proposes
innovation-oriented strategies to save part of what makes luxury such a special sector
and keeps it alive and pulsating: the independents, who are facing heavy challenges as
the consolidation movement continues.
What I find to be remarkable about this book is that it goes by what it advocates;
going through it, I found a true testimony, a well-argued manifesto, shedding light on a
problem of utmost importance for the luxury sector and proposing solutions supported
by relevant research and numbers. It is definitely not just a bright colorful cover. Indeed,
it proposes the reader with serious content with high added value. It takes on a rigorous
approach and gets to the bottom of each argument, and most definitely promotes in-
novation through innovation.
Having been involved in luxury for many years, I would undoubtedly recommend
this insightful book not only to luxury professionals, but to any individual with a certain
business affinity or interest in consumption behaviors or even societal behaviors.”
–Luc Pettavino, Founder and President, Only Watch
“Independence and luxury, two cult notions in the universe of successful entrepreneurs
and companies, which this book presents in a novel way. Its 1001 facets are explored
with great clarity and diversity, taking a global outlook.”
–Brice Lechevalier, Co-Owner and Director, worldtempus.com
“It’s a stroke of luck that Jonas Hoffmann understands about luxury while Laurent
Lecamp understands about watchmaking and independent brands. A juxtaposition of
skills that is far too rare, in particular when applied to such an unusual subject. As a
result, their perspective is stimulating and their thoughts productive. All the more if you
don’t agree with them…”
–Gregory Pons, independent journalist, Founder businessmontres.com
“While an army-general usually reads Sun Tzu’s The Art of War as recipe for success,
while a clever politician carefully reads Robert Reich’s The Work of Nations to manage
his country’s competitiveness, and while a human resources manager always keeps a
copy of Abraham Maslow’s theory in his drawer, an independent entrepreneur in the
luxury sector now has a similar flagship publication: Independent Luxury by Hoffmann
and Lecamp will in my view become the cornerstone of value creation in the luxury
business in the future.
This book offers holistic content, from theory and toolboxes to success stories and a
practical approach with the key example of Encelade 1789. The well-described BA2RE®
approach is likely to become the equivalent of the BCG matrix for all entrepreneurs wish-
ing to achieve success in luxury.
Readers will enjoy strong sector knowledge, an insiders’ view of the world of l uxury,
passionate writing and anecdotal evidence that courage, vision, and execution are
achievable for all bold entrepreneurs, providing they have the right toolbox.
I am convinced as investment professional that this book is a ‘must-read’ for CEOs
wishing to keep growing and bring their companies to the next level. It is also a message
of hope for those who might find themselves lost amidst prevailing major corporations:
with the right approach and methodology, you can do it! Read this book and fasten your
seat belt, success is round the corner!”
–Hervé Prettre, Senior Investment Advisor, Geneva, Switzerland
“This book and its demonstration is inspiring in many dimensions; first because it an
ode to the roots of capitalism, when economy was about entrepreneurship, innovation,
and sense of inherited know how. It is also interesting in the way it makes globalization
issues match with very localized thinking, where small and medium companies can com-
pete with bigger, while not losing or even founding back their original and specific as-
sets. Finally, it is inspiring in the sense that it also encompasses the new digital economic
model in luxury as a point of leverage, too often put in confrontation with a traditional
vision on luxury world.”
–Christophe Pradere, CEO BETC Design
“This book takes us back to the future. Independent companies could rediscover their
core values adapting to the main factors of a fierce competition. It debates to what ex-
tent this special quality is an advantage to the roots of luxury.”
–Alberto Milani, CEO Americas, Buccelati Inc.
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Independent Luxury
By
Jonas Hoff mann
Professor of Luxury Strategy, SKEMA Business School, France
and
Laurent Lecamp
Executive Vice President Sales, Carl F. Bucherer, Switzerland
© Jonas Hoffmann and Laurent Lecamp 2015
Softcover reprint of the hardcover 1st edition 2015 978-1-137-48144-3
All rights reserved. No reproduction, copy or transmission of this
publication may be made without written permission.
No portion of this publication may be reproduced, copied or transmitted
save with written permission or in accordance with the provisions of the
Copyright, Designs and Patents Act 1988, or under the terms of any licence
permitting limited copying issued by the Copyright Licensing Agency,
Saffron House, 6–10 Kirby Street, London EC1N 8TS.
Any person who does any unauthorized act in relation to this publication
may be liable to criminal prosecution and civil claims for damages.
The authors have asserted their rights to be identified as the authors of this
work in accordance with the Copyright, Designs and Patents Act 1988.
First published 2015 by
PALGRAVE MACMILLAN
Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited,
registered in England, company number 785998, of Houndmills, Basingstoke,
Hampshire RG21 6XS.
Palgrave Macmillan in the US is a division of St Martin’s Press LLC,
175 Fifth Avenue, New York, NY 10010.
Palgrave is the global academic imprint of the above companies and has
companies and representatives throughout the world.
Palgrave® and Macmillan® are registered trademarks in the United States,
the United Kingdom, Europe and other countries.
ISBN 978-1-349-56336-4 ISBN 978-1-137-48146-7 (eBook)
DOI 10.1057/9781137481467
This book is printed on paper suitable for recycling and made from fully
managed and sustained forest sources. Logging, pulping and manufacturing
processes are expected to conform to the environmental regulations of the
country of origin.
A catalogue record for this book is available from the British Library.
A catalog record for this book is available from the Library of Congress.
Typeset by MPS Limited, Chennai, India.
Contents
List of Tables viii
List of Figures ix
Prologue xiv
Introduction 1
1 Luxury Landscape: Challenges and Opportunities for
Independents 6
2 Last Chance for Knysna: Innovation 38
3 Back to the Roots 73
4 Code Breakers 113
5 Eagle in the Aquarium 143
6 Game Changers 172
7 Applying the BA2RE® Luxury Strategy Approach
to the Creation and Development
of Encelade 1789 202
Epilogue 221
Notes 223
Index 246
vii
Tables
1.1 Currency variation between euro, US dollar, yen
and yuan (2011–14) 8
1.2 Brand dependence on external sources of mechanical
movement supplies 15
1.3 Major luxury groups’ revenues 18
1.4 Luxury consumer groups 27
1.5 “Experiential Luxury” importance 29
1.6 Top 20 hubs for long-haul fl ights by 2025 33
2.1 Specialized competitive system of the luxury sector 58
2.2 Most sought-aft er destinations and luxury hotels
by Chinese tourists 63
5.1 Old power versus new power values 148
6.1 Floor guide of Dover Street Market, London
(as of December 2014) 175
viii
Figures
0.1 Innovation strategies for luxury independents 2
0.2 The BA2RE® luxury strategy approach 3
1.1 Evolution of worldwide personal luxury goods market 7
1.2 Bucherer store at l’Opéra in Paris, France 11
1.3 Interior of Bucherer store at l’Opéra in Paris, France 12
1.4 Evolution of mainland Chinese luxury consumption 21
1.5 Asian countries’ stages in luxury consumption 23
1.6 Evolution of high-net-worth individuals (2008–13) 26
1.7 Normal distribution vs power law distribution 27
1.8 Shanghai, China (end of November 2013) 28
1.9 Evolution of China’s outbound tourism 32
1.10 Steps to develop scenarios according to the World
Economic Forum 36
2.1 Nature of the innovation 41
2.2 Business model innovation 51
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