Philip Corne, now executive chairman of L Catterton, was working for Louis Vuitton in New York in the early 2000s when September 11 happened. Like most people, he was shocked, scared and saddened. But he also learned something that, from that day on, changed the way he does business.
"At Louis Vuitton, when we think we've got a problem, I say, 'Where are we on the scale? Are we at a 1 or are we at a 10?'
"And at the end of the day ... you just get back down and focus on what you can control," he says.
Corne spent 28 years at the helm of Louis Vuitton Australia, growing the brand in Australia. In doing so, he nurtured the local luxury retail sector which, according to IBISWorld, is set to become a $2.4 billion industry by 2019-20.
His honed perspective was put to use in 2009 when the global financial crisis hit local shores and Australia's retail sector suffered dramatically. "The GFC focused the consumer spend quite a lot," he says.
Loyalties change
Corne says customer loyalty underwent significant change in 2009 and has never quite recovered. He believes it's now much harder for new brands to establish themselves. "You've got to be really present and relevant with your client to ensure you can generate that loyalty over time. Because there are so many choices," he says.
So just how do you establish a go-to brand in an ultra competitive retail market? Fiona Myer, the founder and creative director of local start-up White Story, says retailers need a key point of difference. Myer realised that establishing a luxury brand online was not going to work as luxury is about craftsmanship and seeing the product up close.
"You need to have developed a brand before you go online. How can anyone possibly find you? I know there are exceptions to the rule – but they're not luxury brands."
Myer launched White Story last November and says what she offers consumers is personalised service. "In the good old days, going back to my Georges [Department Store] days, you'd be handed a cup of tea and you were asked to sit down. 'How can I help you? This is such and such.' Then they'd roll out all the clothes. That whole personalised shopping service was just second to none, it was exemplary."
Myer says that today, good customer service in Australia is almost non-existent and she'd like to change that. "When you're selling luxury merchandise, people do expect service," she says.
