Despite its amazing Black Friday results, Amazon has not quite become the player rumour says it would like to be in high-end fashion; luxury brands still see it as overly mass. So news of a new upmarket approach at Zappos, the accessible (and highly successful) shoe site, made all my luxury strategy sensors start vibrating in anticipation. And no, I am not confusing my apples with my oranges. See, Amazon owns Zappos, but “Zappos” doesn’t come with all the strings and global supermarket associations that the name “Amazon” does. Which makes it a great testing ground for any new strategy directed at luring luxury brands and HNWIs into the consumer fold. So what is this brave new strategy? Read more
So the other day I was talking to Josh Abram, who was showing me around his new luxury co-working venture Neuehouse and whom I have decided is potentially the most-quotable person I have yet met, when he mentioned that the guiding principle of Neuehouse (or one of them, anyway), was the opportunity to combine the best of the hospitality industry with the drive for co-working spaces for entrepreneurs. It gave me a weird sense of déjà vue. Because lately, I feel like almost every luxury strategist I run into keeps bringing up hospitality as the secret sauce of their success.
The question of how to balance virtual stores with bricks and mortar stores is a thorny one, with various theories fighting for dominance. Some say it’s all going virtual and point to the search for value (see the FT today, and the report on shoppers deserting the High Street for home pages), while others say things need to be felt to be appreciated, and point to the recent Zappos debacle as something that will also drive people back into stores (see many luxury executives). The only thing that’s clear is the lack of consensus on best strategy going forward, something that was brought home to me pretty tangibly thanks to two recent bits of information I stumbled onto.
For once, the trademark violation shoe is on the other foot when it comes to luxury. The Hells Angels are mad at Alexander McQueen (the brand, not the man) and they aren’t going to take it anymore. Or, to be more specific, they are taking it to court. Read more