luxury articles

Institute to Train Luxury Business Experts

By Cathy Rose A. Garcia Staff Reporter When one talks about luxury, world-famous brand names, Louis Vuitton, Hermes, Gucci and Chanel come to mind. Luxury also conjures up images of posh suites at five-star hotels, diamond-studded watches, rare French wines, and expensive sports cars. Luxury is not about the flashy logos or hefty price tags. Luxury's true meaning is still and will always be about high quality. ``Luxury is the quality of the product. It is based on the quality of design and quality of service. If you are not delivering good service in the retail store, the customer will not come back. If people start to take care of the customer, ask them what they want, offer you a glass of water, you can see the quality of the details. The philosophy of luxury is how to take care of the customer,'' Daniel Mayran, president of the Seoul Luxury Business Institute (SLBI) told The Korea Times, at his office in Sinsa-dong, southern Seoul. Mayran, a native of France, is definitely someone who knows the luxury business. A former Air France executive with more than 30 years experience, he has been at the helm of Bluebell Korea Ltd., which handles luxury brands, since 2001. As president of the Comite Colbert in Korea, Mayran was tasked to promote French luxury goods and combat counterfeiting from 2003 to 2005. With his extensive background in the industry, it comes as no surprise that Mayran spearheaded the establishment of SLBI, which is touted as the first authentic ``global luxury business school'' in the world. Living and working in Korea since 2001, Mayran realized there were no specialized studies dealing with the luxury business in universities in Korea. ``In Korea, I made a professional market study showing that there are 26, 27 schools already but all of them are developing studies for design, fashion, merchandising, marketing, communication, but nothing about the luxury business. That's why we wanted a school to be an institution for luxury, where people can come to learn about the world of luxury,'' he said. SLBI, which will hold its first class in July, hopes to instill the true meaning of luxury and quality of service to its students. It provides world-class programs to enhance professional management skills for those who are already involved in the luxury business or newcomers who want to enter the industry. To make sure the curriculum and training offered are up to par with world-class standards, SLBI has partnered with top business school HEC Paris. The Financial Times selected HEC Paris as the number one business school in Europe for the last three years. SLBI also teamed up with Luxury Attitude, a top training institute that has worked with some of the top hotels and retail companies such as Louis Vuitton, Van Cleef & Arpels, Mercedes Benz, Hotel de Crillon, and the Hyatt and Hilton hotels. Korean Luxury Market Mayran believes Seoul is the ideal place to open the Institute because of the mature and sophisticated market. ``I am convinced the market is mature. The market is here. … When you talk with a lot of the (Korean) customers, and ask them what is luxury, they are well informed about what is real luxury,'' he said. Discerning Korean customers expect high standards of service and more products, not just from well known brands such as Vuitton and Gucci, but also the likes of Hermes and Goyard. On the other hand, luxury companies are struggling to compete with each other, find skilled professionals and maintaining the quality of service. This is apparent when anyone walks in a posh boutique and is suddenly hounded by overeager sales associates, or worse, being ignored when one needs their assistance. This kind of gap in the quality of service in the luxury business in Korea is one of the things Mayran hopes to address through SLBI. ``Luxury introduces a quality of life. You have to take care of people. … Everyone is always busy and stressed. So you look for people to take care of you. If you see that they are welcoming (in the store) and try to help you, take care of you, you will come back,'' he said. Studying Luxury The economic downturn has affected companies all over the world, including those involved in the luxury business. Mayran says this is a good chance for people to study at the SLBI, get specialized training and be prepared for opportunities when business picks up. ``I think this can be helpful for the school. A lot of the people prefer to spend more time to study than to be in the market," he said. The target market for the school's programs are newcomers, who want to be involved in the luxury business; middle management, who are preparing for promotion; and top executives, directors and brand managers. Registration starts in June. ``We will select the students, have interviews and decide if we accept them or not,'' Mayran said. For newcomers, SLBI offers a Luxury Integration Program that provides academic and operational knowledge to start a career in the luxury business. It involves two months of classes on the history of the business, understanding customers' needs and expectations and quality of service, and a two-months internship with a luxury goods or services company. The classes will be taught in Korean. Also offered are luxury specialization programs for students who want to concentrate on one particular industry. Students can choose to specialize in fashion; leather goods and accessories; high-end hotels; watches and jewelry; or cosmetics and fragrance. The Luxury Middle Management Program caters to middle-management professionals who want to acquire more knowledge and skills in luxury management. The program includes classes on luxury marketing and communication, business planning and management of quality of service, which will be taught half in Korean and English. Top executives, brand managers and division directors can take the Luxury Executive Management Program, which was developed by HEC Paris. Classes will tackle building and maintaining brands, luxury marketing, globalization, and consumer behavior. Participants who finish the executive management course will be awarded a certificate from the HEC Paris Executive Education and will receive credit toward the HEC Executive MBA Program in France. All classes will be taught in English. Leading branding authority and HEC professor for marketing Jean-Noel Kapferer has been named the director of the luxury executive management program at SLBI. He is the author of ten books on communications and luxury brands, including ``Luxury Strategy,'' and ``Reinventing the Brand.'' Classes will also involve lectures and question-and-answer sessions with top executives from luxury companies. Students will also visit flagship stores, luxury hotels, and also experience art and culture through museums visits. The Seoul Luxury Business Institute (www.slbi.co.kr) may not have opened yet, but there is already definite interest from investors in opening similar institutes in other countries. Mayran said a luxury business institute will open in Paris in March, 2010, and there are plans to open one in Hong Kong either at the end of 2010 or early 2011. There are also plans for institutes in Shanghai, Tokyo, and the Middle East. cathy@koreatimes.co.kr

Expert Advises on Creating Korean Luxury Brand

Jean-Noel Kapferer speaks at the French-Korean Chamber of Commerce and Industry
(FKCCI) luncheon at Shilla Hotel, last week. / Courtesy of FKCCIBy Cathy Rose A. Garcia
Staff Reporter

Luxury brands, from Louis Vuitton to Gucci to Chanel have entranced the whole world, including Korea. But many are wondering why Asia, in particular Korea, has not yet produced its own globally known luxury brand.

What will it take for an Asian company, especially Korean, to come up with a luxury brand that will rival the likes of Louis Vuitton, Gucci and Chanel in the future?

Jean-Noel Kapferer, luxury business expert and co-author of ``The Luxury Strategy,'' offers advice for Asian and Korean companies on how to successfully build their own luxury brand.

The first and perhaps most difficult step, Kapferer says, is the creation of a product or service that people desire.

``The assumption is you already have the money, so you must create. It can be a product like a car or refrigerator. It can be a spa or a service. But you have to create something that does not exist and would be the dream of some people,'' he said during a lecture for the French-Korean Chamber of Commerce and Industry (FKCCI) at the Shilla Hotel last week.

To create this product or service, the company needs a designer. Look at any of the top luxury brands, and you'll find star designers like Marc Jacobs, Karl Lagerfeld, Giorgio Armani, and Miuccia Prada who are perhaps the most valuable assets.

``The companies who create an exclusive brand, here the star system comes in. Stars are not the celebrities but the designers who are the rare ingredient in the whole system,'' Kapferer said.

Luxury brands are all about creating classic items.

``It starts with creation and remains a problem of creation. Luxury brands sell the classics and communicate the newness. It's about building the classics of tomorrow,'' he added.

History and heritage are also important elements for a luxury brand. Many of the European luxury brands have a long history, adding depth and timelessness to their products and services.

``Accept your heritage. What is heritage? `I am Korean.' We were talking about (Japanese fashion house) Kenzo. Kenzo is not a luxury brand; it's a fashion brand. Kenzo relates Japanese culture to people who live in New York. He doesn't ask you to wear kimono, but there is some relation to Japan. He accepted his heritage. This is very important for luxury,'' Kapferer said.

Kapferer, who is academic director for the luxury executive management program at the Seoul Luxury Business Institute (www.slbi.co.kr), pointed out that accepting Korea's heritage is crucial in creating a worldwide luxury brand.

``Korea's image is what you will make it. It is what you do that will create your future. The image of Korea will be dependent on how many directors from Korea will show that there is an interesting Korean culture in movies. People can keep changing their minds about Korea. If they see a luxury brand, it may reveal Korean culture and accelerate the change. I think people have to accept their heritage because heritage is what gives you confidence. If you hate your past, don't go into luxury, go into fashion,'' he said.

cathy@koreatimes.co.kr