The Luxury World Today

with Luxury Intelligence

Feb - March 2015

LUXURY TRAINING BY DESIGN

Contact us today: ExecutivePA@luxuryintelligence.co.uk

Awakening the E-Motion with Luxury Intelligence

Today Experience is one of the biggest buzzwords of luxury, with sophisticated luxury
customers craving experiences more than products; their interest in, and desire for, a product is
immeasurably enhanced when it is presented in concert with a compelling experience. Again and
again, we hear that a visit to a luxury boutique, and most especially a flagship luxury boutique,
must be a unique and memorable experience. In real estate, the clich is location, location,
location; in luxury, it is experience, experience, experience.
However, as so often happens when a term becomes widely popular, it is often used with little
attention to what it actually means. What is this compelling experience? How does it move the
customer? How can our store staff contribute to turning the customer experience into something
truly magical?
Luxury is evolving dramatically
The key to success in the luxury market over the next 10 years will be defined by a relentless focus
on three luxury-goods management principles:

Superior customer experience

Flawless hospitality management
People excellence

According to research published at the end of 2014 by one of the world's leading business
consulting firms, Bain &Company:
Over the next 10 years, we anticipate the common theme of these changes
will put consumers at the centre, not only of the customer experienceas a
critical part of the ideation, creation and sale of luxury goodsbut also at
the centre of all major business processes for luxury brands.

The overall luxury market exceeded 850 billion (649 billion) in 2014, showing healthy
growth of 7% overall, driven primarily by luxury cars (10%) and luxury hospitality (9%).

The luxury market is expected to reach an estimated 400 million luxury consumers
worldwide by 2020, and an estimated 500 million luxury consumers by 2030.

The global luxury market is shifting from its historically homogenous base of affluent
consumers worldwide to a broader and highly heterogeneous class of luxury shoppers.

The future will become increasingly heterogeneous and luxury brands need an immediate
upgrade to their consumer strategies to recognize and react to this growing diversity.

The study confirms that the luxury market is still in the hands of baby boomers (45% of
luxury consumption worldwide).

Younger generations continue to maintain positive attitudes to luxury and present the most
disparate profiles - from newbies to experts, from classic to edgy, from enthusiast to
detractors. The fragmentation in the luxury tastes of this group makes the consumer
picture ever more complex to handle.

LUXURY TRAINING BY DESIGN

Contact us today: ExecutivePA@luxuryintelligence.co.uk


A brand needs to create a very, very special experience customised to meet its customers unique
idiosyncrasies. Understanding its customers, and aligning its business accordingly, will become
the mantra of a luxury brand over the next decade.
According to Bain & Companys 2014 research, there are seven new faces of the global luxury
consumer:
The Omnivore - 25% of spending, at an average 2,350 per year
The Opinionated - 20% of spending, at an average 1,750 per year
The Investor - 13% of spending, at an average 1,450 per year
The Hedonist - 12% of spending, at an average 1,100 per year
The Conservative - 16% of spending, at an average 1,000 per year
The Disillusioned - 9% of spending, at an average 800 per year
The Wannabe - 5% of spending, at an average 500 per year
Increasingly, luxury brands are transforming their stores from standard selling spaces into
experiential hubs, which take the customer through a multidimensional journey primed for more
personalised customer engagement
The Science Behind Luxury Experience
When you are in the midst of an experience, all of your five senses are gathering vital information
from the environment into the neocortex brain (your thinking brain). As you begin to process all
this information, jungles of neurons begin to organise themselves into patterns. The moment those
neurons string into place, the brain releases a chemical and that chemical is called an emotion.
Experience enriches the circuitry in your brain neurologically, which then produces a chemical
that is released in the limbic brain (your emotional brain). The meanings you create generate the
emotions of your life, which drives your actions, thus producing the results you experience.
Luxury Mastery Leadership Programme
The only way to change a company is leadership. Leaders are what change companies and the
number one leadership skill is influence. Leadership is defined as the ability to influence the
thoughts, feelings, actions, behaviours and emotions of others. As a leader in luxury it really
comes down to influencing people emotionally - to connect with them on a deep emotional level.
At Luxury Intelligence, we believe that to really have an emotional connection and a behavioural
change in your leadership style and culture, you need to take a full and rich journey of personal
and professional enlightenment.
Leaders inspire themselves and others to do, be, give and become more than they ever thought
possible. This programme will immerse you in an environment of superior standards and set the
pace for you to empower yourself and those around you.

LUXURY TRAINING BY DESIGN

Contact us today: ExecutivePA@luxuryintelligence.co.uk


Our leadership techniques show line managers how to motivate people to do the impossible. Our
techniques also show them how to get people to believe in their own ability, so they can overcome
challenges, persist in adversity and create winning outcomes in the face of the stiffest competition!
The programme structure is based on three simple but distinct phases.
Phase 1: INFORM
This phase is designed to inform and create the complete Knowledge understanding of the
world of luxury, how luxury delivers an unforgettable experience and what part you are expected
to take in order to be that creator and catalyst of this experience.
Our Emotional Connectivity Analysis Tool (E-Cat) is based around six core emotional driver
categories and will allow us to ensure the leadership programme objectives are specific and
bespoke to your brand.

Development Culture
Business Culture
Sociological Environment
Employee Engagement
Customer Engagement
Leadership Engagement.

This analysis will take an holistic check of the emotional well being of your business and will
enable accurate attention and targeted intervention. In todays personal and professional world,
emotional connection is the unique identifiers between success and failure.
Phase 2: TRANSFORM
This phase is designed to create the complete Behavioural and Skills understanding as to the
competency and experiences that are required in the 21st century within the luxury market and,
therefore, the personal transformation that will need to be made.
Exceptional and world class leaders in the luxury market need to:

Learn how to create lasting change in yourself and others

Master the principles of Human Needs Psychology
Understand the nature of the luxury market
Go Beyond Expectations: curate the luxury experience
Leading change through story telling

At Luxury Intelligence we understand that luxury is different from mainstream retail the level of
design, the level of quality, the level of relationship-building are all much higher that any other
business segments.

LUXURY TRAINING BY DESIGN

Contact us today: ExecutivePA@luxuryintelligence.co.uk


Phase 3: PERFORM
If you create a significant experience that touches peoples emotions, it will not only be an
experience in the moment but will also last through time.
This phase is designed to embed your new knowledge and skills, providing a unique, intelligent
and engaging application reinforcing the skills learned during the programme. Repetition of
information when spaced out in time has shown to be more effective in creating deeper learning.

Clients
Shangri-la Hotel Designed a service improvement project; conducted a series of management
development programs
Air France Developed a Ground Service improvement project, a customer service training
program and a Train the Trainers program
Cartier Asia (Hong Kong, Taiwan, Korea, Singapore, China, and Australia): Developed regional
service signatures; designed and developed a service skills training program, and boutique
managers programs; trained local trainers.
Hermes Designed and delivered a series of customer service training programs to staff and
management
Cartier Japan: Worked with the Management Team to develop skills in managing innovation and
change.
Malaysian Airways: Designed a developed a series of training programs to support new service
innovations being undertaken by the company
Qatar Airways: Developed and delivered a management and staff training program in innovation
and change. Delivered a series of Train the Trainer programs
Savoy Hotel (Moscow): Developed and delivered a series of Interpersonal Skills and Train the
Trainer programs
Ethiopian Airlines: Developed and conducted programs in Leadership and Managing Change as
part of a core management development program
Etihad Airways (Abu Dhabi). Developed and delivered a range of Train the Trainer and
Presentation skills programs
Taj Hotel Group (India). Designed and delivered a customer service mindset program and its
accompanying Train the Trainer program
Savoy Hotel (London). Developed and delivered a new induction program for the re-launch of
the hotel

LUXURY TRAINING BY DESIGN

Contact us today: ExecutivePA@luxuryintelligence.co.uk