For years we’ve talked about the 72-million strong millennial generation (born between 1981 and 1996) as the next-gen customers for luxury brands. But now there is an even younger generation on the horizon, Gen Z (born from 1997 to 2012), 67 million and counting. Note to self: immigration continues to add to their numbers. Similar But Different Like siblings born in the same family, millennials and Gen Z share similarities, but the greater the age difference, the greater the differences in the worlds they grew up in. Sixteen years …
Strategy
Makers Dominate the Entry Level Luxury Market
The luxury market has been built on exclusivity. The U.S. is still the largest global luxury market and luxury sector sales continue to soar – even through the pandemic. But how we define luxury is changing. First of all, the very tenets that the legacy fashion houses hung their hats on –– exclusivity, high price points, etc. –– are proving less relevant to younger customers. Luxury has always been about status. The concepts of craftsmanship, style, innovation and the desire to be “the person in the know” still resonate with today’s young …
One Step Closer to Circularity
As an industry, we have long averted our eyes from the nasty environmental side effects of the manufacturing processes and the distribution of the things we sell. We continue with business as usual, giving a nod to sustainability as the overwhelming scale of the problem has stunned us into inertia. Our immediate business survival overrules the difficult systemic change that climate change and environmental pollution demand. But honestly, how can any of us sidestep the issue (while munching on avocado toast) as we operate in a period of …
A Perspective on Luxury from a Global Citizen
Let’s talk context. The origins of luxury goods go back to the 18th century when the retail model was developed for an aristocracy – the landed gentry with money to spend. In France, Italy, Spain, and England, aristocratic wealth spawned a category of high-quality expensive goods. Jewelry and clothing were just the entry points. Look at the history of Gucci, Rolex, LVMH, Rolls Royce and you will see the clear link between money and privilege. In their brand origin stories, money had a peaches and crème complexion. First Generation …
Will 2022 be the Year of the Dark Horse in Retail?
My father grew up on a farm in central Iowa in the 1930s and 40s, and although life in the post-Depression heartland was pretty harsh, among his fondest memories from his childhood are those of his many horses, each one of them different shades of black. As a youngster, he had a black Shetland Pony named “Spanky.” Then in middle school came “Spot,” a black Murgese. And in his final years of high school, his father – my grandpa, who by this time was feeling a bit less worried with the worst of the Great Depression more than two decades in the …
Get Tough, or Get Out
As I have often said to many of my friendly colleagues, many of whom are C-suite leaders in the retail industry, I’m fortunate that I only must observe, strategize, and write about the industry for The Robin Report. And indeed, some former CEO’s who are in retirement yet want to remain relevant are saying the same thing. They are obviously more attuned to the toughness required of the current C-leaders. Like aging Woodstock attendees can say, “I was there” (and my generation knows what they are referring to), so too will current C-suite leaders …
The Future of the Retail Gas Station
Next time you find yourself on a road trip through Pennsylvania, consider a short detour to the corner of Baum Boulevard and St. Clair Street in downtown Pittsburgh. Admittedly, today there is not much to see – nothing more than a nondescript office building abutted by Walter’s Automotive Repair Shop. But back in 1913 this small parcel of land was the site of arguably the biggest revolution in American retail – the advent of the modern gas station; if you know where to look, there is even a historic marker that commemorates America’s “First …
What Do Circuit City and Best Buy Have in Common?
How ironic it would be if the same decisions that drove Circuit City into extinction ultimately will do the same to Best Buy? Circuit City was a poster child for customer service, until it wasn’t. They cut costs by minimalizing full-time, well-trained associates and mixed in more part-time workers (of course there were other reasons as well). When Hubert Joly took the helm of a very shaky Best Buy in 2012, he did just the opposite to turn BB around. Flanked by three fierce competitors, Walmart, Target, and Amazon, all offering convenience and …