LVMH digital chief: online is good for luxury
Ian Rogers, LVMH’s digital chief, has some strong opinions. Here are just a few: China is the “new” Silicon Valley, and will lead Big Tech in tomorrow’s world. The luxury sector was right to not become “early adopters” when it comes to the digital revolution. And we’re now living in a post-digital age. No doubt, the former Apple Music exec, Beastie Boys roadie, and skateboarding enthusiast is an interesting guy – is he also a prophetic one?
LVMH’s share price has risen by 19% year to date
SOURCE: Yahoo Finance
Discussing the migration of luxury into the digital sphere, he explained to reporters from the South China Morning Post that most people have misunderstood the situation: online accessibility doesn’t, automatically, over-commoditise products:
“Anybody can walk into a Louis Vuitton store; it’s not like a club. The products are exclusive for other reasons – maybe because they’re genuinely scarce or very pricey. What you really want to get right online is your experience; it’s not about online versus offline. Let’s face it – our customers use Uber and Amazon and have been to the Apple Store so they know what a great customer experience feels like. Look at 24 Sevres. It’s not like Amazon, not just a transaction.”
He also thinks that the shift online is automatically beneficial to the luxury sector. He said: “Fundamentally, the internet is changing humans to a market of tribes, where marketing is not hyper efficient but quality is,” he says. “Take Netflix: their shows are popular not because they’re good at investing in marketing but because the shows are actually good. Now look at LVMH: a mass of niches where you have an obsession with quality, creativity and craftsmanship. That just works. Luxury has a business model that’s perfectly suited for digital but you need to add a little bit of structure because LVMH exists to add operational efficiency to creative people.”
Dominion holds LVMH in its Global Trends Luxury Fund.
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