He said that was a “nuance, but an important nuance in fashion.” “We believe the pandemic is an overlay to this fundamental trend in consumer behavior.” “Before the pandemic, we entered into a next phase where savoir faire and material fabrication became more important than trend and marketing,” the CEO said. Now the tide has changed and heels and dresses are back.īut the company is also attuned to the underlying pulse of style. Kliger said the occasion business dried up for a time when lockdowns prevented gatherings, fueling sales of comfort at home categories including knitwear and cashmere. The challenge - but also the opportunity - in luxury is you start with a fresh sheet of paper, you go into the showroom and then you discover.”įinding just what will be right next is always the trick in fashion - and all the trickier in the age of COVID-19. “We know our customer, we know what is selling well, but the brands know what they have developed…the new direction. “Writing an order is a collaborative process,” Kliger said. Having a tight-knit group of suppliers also allows the merchant to develop each relationship more fully. Working with only a limited number of brands helps the company focus across the board - from its buying operations to the photo studio where product is shot. “The customer that repeatedly comes back has maybe a higher customer acquisition cost, but a higher lifetime value.” “This focus carries advantages in the business model,” he said. They update their wardrobe as they have new occasions and we extended that from women’s wear to men’s to kids. This is a customer that is driven by occasion. Customers that buy a lot of ready-to-wear. “But we decided we want to have the wardrobe-building customers. “There are customers that buy a bag and won’t buy any luxury piece again for one-and-a-half years,” Kliger said. That has the e-commerce site, which grew out of a boutique in Munich and was previously part of Neiman Marcus Group, orientated toward shoppers who are often out on the hunt. “This is a decision and I think any retailer has to make the decision: Which customer do you want to serve?” “We want to serve the multibrand, wardrobe-building customer,” he said. He described that as something of a sweet spot and, “the right amount of brands to show that we are really focused on luxury.”

Inside Ralph Lauren’s New Flagship and First Hospitality Experience in Milan

Third age divide and conquer