News & Insights

Luxury is evolving rapidly as the sector faces challenges but creating a strong brand vision is key to retaining brand equity, World Retail congress delegates heard today.

Christian Louboutin CEO Alexis Mourot said that the team had just presented its plan until 2030 to the board. Number one priority has been to push innovation while protecting the company’s brand equity, he said.

“Innovation is what we produce ourselves, plus radical innovation from the outside. So we need to welcome that and be more open,” he said. “Brand equity, focusing on brand awareness, also sensitivity and desirability, plus brand territory are also crucial The red zone, our fourth priority, is customers who say they don’t look anymore at that brand. So we have to consider the threats too.”

He also pointed to agility, and as a result the company cut any project that will take over six months, instead prioritising initiatives that can be delivered quickly. He also stressed that he did not see a business without stores or a presence in department stores, adding 10-15 stores annually.

Selfridges CEO André Maeder added that all the banners he oversees have their own life and decision making, in all 18 department stores, with each having its own CEO.

“We are not going to change that because we really believe department stores are local. We don’t belong to Central Group, [the Thai owner] but to the people in our cities,” he said.

He also said that he believes that within the next few years the company will be a media platform rather than a department store, pointing to the Selfridges cinema, F&B, events and the new members club, which has a restaurant, terrace, health areas and a VIP room.

Diriyah Company Chief of Retail Leasing Nermeen Nosseir discussed how the mega-scheme falls as part of Saudi Arabia’s 2030 Vision and said that the approach in development has been to link the legacy of the location with major anchor brands.

“We want retailers to bring experiences that will bring customers back, with unique designs,” she said. “The shopping experience is no longer a transactional activity. Shopping destinations bring people together and let people do things together.”

The session was moderated by Selvane Mohandas de Menil, Managing Director, IADS.