the luxury word today

LUXURY TRAINING BY DESIGN

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The Luxury World Today with Luxury Intelligence

Feb - March 2015



Awakening the E-Motion with Luxury Intelligence Today Experience is one of the biggest buzzwords of luxury, with sophisticated luxury customers craving experiences more than products; their interest in, and desire for, a product is immeasurably enhanced when it is presented in concert with a compelling experience. Again and again, we hear that a visit to a luxury boutique, and most especially a flagship luxury boutique, must be a unique and memorable experience. In real estate, the clich is location, location, location; in luxury, it is experience, experience, experience. However, as so often happens when a term becomes widely popular, it is often used with little attention to what it actually means. What is this compelling experience? How does it move the customer? How can our store staff contribute to turning the customer experience into something truly magical?

Luxury is evolving dramatically

The key to success in the luxury market over the next 10 years will be defined by a relentless focus on three luxury-goods management principles:

Superior customer experience Flawless hospitality management People excellence

According to research published at the end of 2014 by one of the world's leading business consulting firms, Bain &Company:

Over the next 10 years, we anticipate the common theme of these changes will put consumers at the centre, not only of the customer experienceas a critical part of the ideation, creation and sale of luxury goodsbut also at the centre of all major business processes for luxury brands.

The overall luxury market exceeded 850 billion (649 billion) in 2014, showing healthy

growth of 7% overall, driven primarily by luxury cars (10%) and luxury hospitality (9%).

The luxury market is expected to reach an estimated 400 million luxury consumers worldwide by 2020, and an estimated 500 million luxury consumers by 2030.

The global luxury market is shifting from its historically homogenous base of affluent consumers worldwide to a broader and highly heterogeneous class of luxury shoppers.

The future will become increasingly heterogeneous and luxury brands need an immediate upgrade to their consumer strategies to recognize and react to this growing diversity.

The study confirms that the luxury market is still in the hands of baby boomers (45% of luxury consumption worldwide).

Younger generations continue to maintain positive attitudes to luxury and present the most disparate profiles - from newbies to experts, from classic to edgy, from enthusiast to detractors. The fragmentation in the luxury tastes of this group makes the consumer picture ever more complex to handle.



A brand needs to create a very, very special experience customised to meet its customers unique idiosyncrasies. Understanding its customers, and aligning its business accordingly, will become the mantra of a luxury brand over the next decade. According to Bain & Companys 2014 research, there are seven new faces of the global luxury consumer:

The Omnivore - 25% of spending, at an average 2,350 per year The Opinionated - 20% of spending, at an average 1,750 per year The Investor - 13% of spending, at an average 1,450 per year The Hedonist - 12% of spending, at an average 1,100 per year The Conservative - 16% of spending, at an average 1,000 per year The Disillusioned - 9% of spending, at an average 800 per year The Wannabe - 5% of spending, at an average 500 per year

Increasingly, luxury brands are transforming their stores from standard selling spaces into experiential hubs, which take the customer through a multidimensional journey primed for more personalised customer engagement The Science Behind Luxury Experience When you are in the midst of an experience, all of your five senses are gathering vital information from the environment into the neocortex brain (your thinking brain). As you begin to process all this information, jungles of neurons begin to organise themselves into patterns. The moment those neurons string into place, the brain releases a chemical and that chemical is called an emotion. Experience enriches the circuitry in your brain neurologically, which then produces a chemical that is released in the limbic brain (your emotional brain). The meanings you create generate the emotions of your life, which drives your actions, thus producing the results you experience. Luxury Mastery Leadership Programme The only way to change a company is leadership. Leaders are what change companies and the number one leadership skill is influence. Leadership is defined as the ability to influence the thoughts, feelings, actions, behaviours and emotions of others. As a leader in luxury it really comes down to influencing people emotionally - to connect with them on a deep emotional level. At Luxury Intelligence, we believe that to really have an emotional connection and a behavioural change in your leadership style and culture, you need to take a full and rich journey of personal and professional enlightenment. Leaders inspire themselves and others to do, be, give and become more than they ever thought possible. This programme will immerse you in an environment of superior standards and set the pace for you to empower yourself and those around you.



Our leadership techniques show line managers how to motivate people to do the impossible. Our techniques also show them how to get people to believe in their own ability, so they can overcome challenges, persist in adversity and create winning outcomes in the face of the stiffest competition! The programme structure is based on three simple but distinct phases. Phase 1: INFORM This phase is designed to inform and create the complete Knowledge understanding of the world of luxury, how luxury delivers an unforgettable experience and what part you are expected to take in order to be that creator and catalyst of this experience. Our Emotional Connectivity Analysis Tool (E-Cat) is based around six core emotional driver categories and will allow us to ensure the leadership programme objectives are specific and bespoke to your brand.

Development Culture Business Culture Sociological Environment Employee Engagement Customer Engagement Leadership Engagement.

This analysis will take an holistic check of the emotional well being of your business and will enable accurate attention and targeted intervention. In todays personal and professional world, emotional connection is the unique identifiers between success and failure. Phase 2: TRANSFORM This phase is designed to create the complete Behavioural and Skills understanding as to the competency and experiences that are required in the 21st century within the luxury market and, therefore, the personal transformation that will need to be made. Exceptional and world class leaders in the luxury market need to:

Learn how to create lasting change in yourself and others Master the principles of Human Needs Psychology Understand the nature of the luxury market Go Beyond Expectations: curate the luxury experience Leading change through story telling

At Luxury Intelligence we understand that luxury is different from mainstream retail the level of design, the level of quality, the level of relationship-building are all much higher that any other business segments.



Phase 3: PERFORM If you create a significant experience that touches peoples emotions, it will not only be an experience in the moment but will also last through time. This phase is designed to embed your new knowledge and skills, providing a unique, intelligent and engaging application reinforcing the skills learned during the programme. Repetition of information when spaced out in time has shown to be more effective in creating deeper learning.

Clients

Shangri-la Hotel Designed a service improvement project; conducted a series of management development programs Air France Developed a Ground Service improvement project, a customer service training program and a Train the Trainers program Cartier Asia (Hong Kong, Taiwan, Korea, Singapore, China, and Australia): Developed regional service signatures; designed and developed a service skills training program, and boutique managers programs; trained local trainers. Hermes Designed and delivered a series of customer service training programs to staff and management Cartier Japan: Worked with the Management Team to develop skills in managing innovation and change. Malaysian Airways: Designed a developed a series of training programs to support new service innovations being undertaken by the company Qatar Airways: Developed and delivered a management and staff training program in innovation and change. Delivered a series of Train the Trainer programs Savoy Hotel (Moscow): Developed and delivered a series of Interpersonal Skills and Train the Trainer programs Ethiopian Airlines: Developed and conducted programs in Leadership and Managing Change as part of a core management development program Etihad Airways (Abu Dhabi). Developed and delivered a range of Train the Trainer and Presentation skills programs Taj Hotel Group (India). Designed and delivered a customer service mindset program and its accompanying Train the Trainer program Savoy Hotel (London). Developed and delivered a new induction program for the re-launch of the hotel

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