Tuesday, 6 October 2009

Customer Connection Is Crucial – 6/10/09

Q: What could be holding luxury brands back from succeeding in Asia?
A: "Service is the weakest link in the luxury business model," according to Michel Phan, Assistant Professor of marketing at the Paris-based ESSEC Business School.

Talking in a Reuters article, Phan continues on to say, “It's not enough to say 'Our brand is expensive, or known'. You have to make customers connect with your brand, especially during this crisis, when they're more reluctant to buy on the spur of the moment. You have to give people a good reason to buy."

When wooing the Asian market, Phan also believes “luxury retailers need to educate potential customers about their wares.” In reference to the Chinese consumers, he said, “Tell them a story, tell them the history. A watch, a bag, a pair of shoes can become so much more if you educate people."

We believe Phan is a man after our own heart. Customer Relationship Management and adapting to each market is crucially important (for more of our thoughts, refer to the MO Down for August 21).

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Who's behind the MO DOWN

Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au