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).