China China China. And I don't mean the home-goods term describing generic pottery used for eating, either. I mean that massive country with the world's biggest population. To understand why retailers and businesses, especially those of the luxury segment, can't get their Manolo's moving fast enough toward the great Asian nation, you have to understand a little background history.
Right now, China is gobbling up luxury products - wine, cars, leather goods, and all things fashion and glamour. The economic growth rate from China over the last 10 years has been the fastest in history, estimated to account for nearly 25% of luxury purchases worldwide. This ravenous demand has left many companies scrambling how to, not only provide enough supply to meet demand, but to really understand their new clients' culture, tastes, and buying trends. Everything is so new. Everything is so exciting. Potential beyond imagination. The Chinese market is so enthusiastic that prices are driving through the roof, even pricing out some traditional customer demographics. For example, the wine craze has absolutely erupted in China, driving up the prices of Bordeaux wine to record highs. The current prices are so high, many Europeans can no longer afford the wines they know and love.
Mao Tse Tong's culture revolution literally persecuted external culture and influences. In the late 1970s, sanctions on private ownership and personal wealth were slowly eased, but this pent up energy of the lively people was quickly replaced with a more capitalistic spirit, and it spread like wildfire.
Now, you no longer have to travel to massive metropolises like Beijing, Shanghai, or Hong Kong to find luxury brands. Many small to medium sized cities are also home to those same luxury brands.
I absolutely love watching how brands respond to their new marketplace. Chateau Lafite capitalized massively on their marketing campaign and prioritizing their relationships. Focusing on the societal influencers, Lafite included a simple number "8" on their 2008 vintage directly above the label. Seems simple. Until you understand how important the number "8" is in Chinese culture - it represents luck, fortune, and prosperity. So you can imagine how this culture update paid off massively. Same wine. Different bottle.
It's not uncommon for businesses to tweak their assortments. Global restaurant chains offer regional menus, while designers may offer modified size ranges more in shape with their clients' dimensions. At Dior, for example, sunglasses come in an "as designed" fit and also "modified for the Asian market", fitting the bridge of the nose and head more comfortably and precisely. KFC is currently the leader of the quick serve market in Africa, and offers traditional Jollof rice dishes throughout their Nigerian outlets. Literal catering to local tastes makes for more acceptance and popularity amongst customers.
French powerhouse Hermes didn't tweak their collections for the Chinese market; they created an entirely new brand, exclusive to their new Asian customers: Shang Xia.
Shang Xia is a brand for art of living that promises a unique encounter with the heritage of Chinese design and craftsmanship. The
renowned designer Jiang Qiong Er established Shang Xia with a mission
to create a 21st century lifestyle founded on the finest of Chinese
design traditions. The brand's name is simple yet profound. It
embodies the concept of "up" and "down" in the continuous flow of energy
from past, present and future, transmitting the essence of Chinese
culture and its sublime aesthetics. Building on 5,000 years of
unique inheritance, and in the spirit of dialogue between tradition and
modernity, Shang Xia integrates the warmth, balance and harmony of
Chinese grace into all its products.
Shang Xia's collections are
comprised of striking furniture, fine decorative objects, exquisite
accessories and luxurious garments. Uniquely, it also creates an
annual series of limited edition "cultural objects". These collectibles
convey messages of tradition, guardianship and remembrance. With
flair and exacting attention to detail, Shang Xia preserves the
historical beauty and craftsmanship born of Chinese ingenuity, to
provide a simple, elegant 21st century aesthetic.
What's still even more fascinating to me is that, with all of the money and investment of brands in China, the ultra-high-net-worth and luxury Chinese clients still prefer to buy their luxury goods abroad, not primarily in the mainland. You see, exclusivity is everything. Buying the latest Lady Dior bag is one thing. Buying the latest Lady Dior bag in Paris is another level. Considering import duties, value added taxes, and consumption taxes, prices of luxury goods in China are nearly 50% more expensive than they are in the United States, and can reach as much as 75% more than their European counterparts. It sounds a little funny, but shopping for luxury abroad can prove a bargain!
Smart businesses will have one eye looking east and one eye looking west. they must strike a balance between retaining their identity and heritage, while extending their reach and market share. The next time you're shopping in a luxury boutique, chances are at least one of the staff will be fluent in Mandarin, and quite possibly Shanghainese, Cantonese, or Taiwanese.
财源滚滚
Showing posts with label language in luxury. Show all posts
Showing posts with label language in luxury. Show all posts
Thursday, January 21, 2016
Monday, October 12, 2015
no one cares what you're selling
Do you value shock? A single event that stops you in your tracks, paralyzing your ability to comprehend, to breathe, to process. Nothing else matters.
I think it's safe to understand that no business values shock, save electricians and power providers. However, some businesses' response to shock seems to promote the ensuing behavior. This can be easily avoided with consistent training, coaching-in-the-moment, and not only establishing expectations, but holding those expectations accountable.
For example, Starbucks has a very simple policy: if the customer doesn't like their beverage, with no questions asked, the Barista will remake the drink or offer a refund. Plain and simple. I can't tell you how many times I've witnessed customers react so angrily, so hastily. Over coffee! We're not talking about an event so detrimental to your health, let alone your existence, to merit such a heinous response. Regardless, customers still go overboard, reacting unnecessarily. What's so incredible is that Starbucks trains their employees on how to react; relationships are a priority.
Just yesterday, I witnessed a customer berating the Barista because she received the "wrong sandwich". Now you must understand, I heard the Barista myself seek clarity and repeat the customer's order. Which is exactly what she received, but not what she was hoping for. After spewing anger and hate, demanding to speak to the manager (which the Barista involved was actually the shift manager to start with), the Barista apologized, remade the not-requested-but-hoped-for panino, and even thanked the customer for their business. I was so impressed with her ability to hold control of the situation and demonstrate kindness, in addition to the very ethos of the brand, when the customer displayed the exact opposite.
This type of professional behavior can be replicated in any business. Treat everyone like a "guest", and you won't get lost.
G: Greet. You must greet your customers. A quick "hello" or "welcome to ____" sets the tone. Make sure your tone is sprite and springlike, as a disingenuous welcome instantly detracts from the business. If the client is on the telephone or in conversation, a simple smile and wave will announce your attention and signal you're availabilty.
U: Understand. Why are your clients there? Are they taking a stroll through your boutique, gathering ideas and enjoying the day? Are they comparison shopping, looking to gather education and data? Maybe they'll just "know it when they see it". Whatever their intentions - as the salesperson, it's your job to find out what exactly the client is hoping to accomplish, and make that happen. And then some.
E: Explain. What can you do for them? Once you've identified what exactly they're hoping to accomplish, explain what you can do for them, both immediately and longterm. This can be as simple as helping the client find the perfect dress to wear to for a special occasion, or as complex as executing customer business enterprise solutions.
S: Suggest and sell. You've identified the clients' needs and explained what you can do for them. Now it's time to hit the ball out of the park and set the wheels in motion. Suggest solutions to meet their needs and ask for the sale. All too often, employees will identify the needs of the customer, present a solution, but never ask for the close. To me, that's like creating a menu, shopping for the groceries, spending all day preparing a beautiful meal, but then never serving the dishes. You must ask for the sale!
I recognize selling a car usually brings a much lengthier process and requires infinite more resources, but you get the gist. Ask for the sale.
T: Thank. What was the original goal of the customer? To purchase goods or services? To gain education and insight? To try something new? Whatever the reason, thank your customer. Invite them to return. Tell them you want to stay in touch, ask for their contact information, and do something with it. Within a week, send a quick thank you note. It must be hand written. Short, sweet, and to the point.
You've now officially started clienteleing - or leveraging your professional relationships to drive the business. With consistency and practice, you'll grow your network of customers and clients beyond measure. And once you're at the next level, it will never matter again what good or service you're selling - you'll always have a strong customer base loyal to you.
Treating your clients like GUESTs every time is only enhanced by your attitude. Find your voice. In the car example above, if I worked for the very storied Mercedes-Benz, I'd learn about German culture. Maybe offer clients' children a small bag of Haribo gummy bears or sign every thank you note with a simple and easily translated danke. The simple gestures can exceed your clients' expectations, setting you above and beyond the competition, and ultimately benefit the sales probability and outcome.
A friend asked if this method is applicable to more than just traditional retail situations. The answer: absolutely.
Imagine for a moment that you're an insurance salesman. Of course, you'll follow an established sales tactic: become well versed in your products and services, identify potential clients, pitch your solutions, ask for the sale, and close the transaction. But it doesn't stop there. Clients want to know that you're going to grow with them, not just sell them one product and move along. Regardless of what you're selling, you must include the promise of future growth and commitment between you (or your company) and the client. If you're selling software, will you offer regular check-ins to train new employees? Will you reassess the clients' business needs on a consistent schedule, ensuring the right solutions for the right needs? Do you offer a discount or incentive to purchase additional products/services/solutions in the future?
It's not always what product or service you're selling, but the access to your expertise and assistance in the future. In the world of computers and telecommunications, Apple not only sells wonderful products, they also push solutions and prioritizes the customer relationship. Senior Vice President of Retail Angela Ahrendts doesn't just bring the style and class of Burberry to the table, but a commitment to building trust and longevity with their very valuable customers.
Sometimes, unconventional leaders are the way to drive the business to unexpected heights. Many might have questioned why the fruitful technology giant would have lured a luxury fashion executive, but for those who know Ms. Ahrendts' critical thinking abilities, quest for excellence in customer experience, and remarkable methods to not only capture clients' attention but their loyalty and lifelong business, it was no surprise. Subsequently, her realigning of the eCommerce department with the traditional brick-and-mortar retail department has already increased profits, minimized expenditures, and maximized customers' opinions.
In short, treat your customers like you want to be treated. Maximize each opportunity to strengthen the relationship, further your brand's awareness, and be honest. After all, the answer is no...until you ask.
I think it's safe to understand that no business values shock, save electricians and power providers. However, some businesses' response to shock seems to promote the ensuing behavior. This can be easily avoided with consistent training, coaching-in-the-moment, and not only establishing expectations, but holding those expectations accountable.
For example, Starbucks has a very simple policy: if the customer doesn't like their beverage, with no questions asked, the Barista will remake the drink or offer a refund. Plain and simple. I can't tell you how many times I've witnessed customers react so angrily, so hastily. Over coffee! We're not talking about an event so detrimental to your health, let alone your existence, to merit such a heinous response. Regardless, customers still go overboard, reacting unnecessarily. What's so incredible is that Starbucks trains their employees on how to react; relationships are a priority.
Just yesterday, I witnessed a customer berating the Barista because she received the "wrong sandwich". Now you must understand, I heard the Barista myself seek clarity and repeat the customer's order. Which is exactly what she received, but not what she was hoping for. After spewing anger and hate, demanding to speak to the manager (which the Barista involved was actually the shift manager to start with), the Barista apologized, remade the not-requested-but-hoped-for panino, and even thanked the customer for their business. I was so impressed with her ability to hold control of the situation and demonstrate kindness, in addition to the very ethos of the brand, when the customer displayed the exact opposite.
This type of professional behavior can be replicated in any business. Treat everyone like a "guest", and you won't get lost.
G: Greet. You must greet your customers. A quick "hello" or "welcome to ____" sets the tone. Make sure your tone is sprite and springlike, as a disingenuous welcome instantly detracts from the business. If the client is on the telephone or in conversation, a simple smile and wave will announce your attention and signal you're availabilty.
U: Understand. Why are your clients there? Are they taking a stroll through your boutique, gathering ideas and enjoying the day? Are they comparison shopping, looking to gather education and data? Maybe they'll just "know it when they see it". Whatever their intentions - as the salesperson, it's your job to find out what exactly the client is hoping to accomplish, and make that happen. And then some.
E: Explain. What can you do for them? Once you've identified what exactly they're hoping to accomplish, explain what you can do for them, both immediately and longterm. This can be as simple as helping the client find the perfect dress to wear to for a special occasion, or as complex as executing customer business enterprise solutions.
S: Suggest and sell. You've identified the clients' needs and explained what you can do for them. Now it's time to hit the ball out of the park and set the wheels in motion. Suggest solutions to meet their needs and ask for the sale. All too often, employees will identify the needs of the customer, present a solution, but never ask for the close. To me, that's like creating a menu, shopping for the groceries, spending all day preparing a beautiful meal, but then never serving the dishes. You must ask for the sale!
I understand you're looking for a new vehicle. You want something classy, with great power, loaded with every amenity and safety feature available, that will last you the better part of a decade and grow with both you and your lifestyle to come. I suggest the 2016 Mercedes-Benz AMG GLE Coupe. Shall we place the order for your new car?
I recognize selling a car usually brings a much lengthier process and requires infinite more resources, but you get the gist. Ask for the sale.
T: Thank. What was the original goal of the customer? To purchase goods or services? To gain education and insight? To try something new? Whatever the reason, thank your customer. Invite them to return. Tell them you want to stay in touch, ask for their contact information, and do something with it. Within a week, send a quick thank you note. It must be hand written. Short, sweet, and to the point.
Hello Mrs. Thompson,
I hope this message finds you well. I want to thank you for stopping in to the boutique today. I know you're going to love your new Lady Dior bag. Remember, the bag is made of luxurious lambskin, so be sure to keep it away from your dark denims. I hope to see you soon! à bientôt, Joseph
Within two weeks of sending the note, follow up with a phone call. Your reason for calling: securing future business. Your approach, making sure you had the right address on file, that they received the note, and that they're loving their purchase. This will massively decrease product returns and ensure happiness with the customer. It also allows for even more understanding about your client. In the example above, where did Mrs. Thompson first take her new Lady Dior bag? Was she celebrating a special occasion (that you should be notating in her client file for future acknowledgement), or was it "just because..." Learning why clients buy, understanding their motivation and spending abilities, will help you with future business engagements.
Within two weeks of sending the note, follow up with a phone call. Your reason for calling: securing future business. Your approach, making sure you had the right address on file, that they received the note, and that they're loving their purchase. This will massively decrease product returns and ensure happiness with the customer. It also allows for even more understanding about your client. In the example above, where did Mrs. Thompson first take her new Lady Dior bag? Was she celebrating a special occasion (that you should be notating in her client file for future acknowledgement), or was it "just because..." Learning why clients buy, understanding their motivation and spending abilities, will help you with future business engagements.
You've now officially started clienteleing - or leveraging your professional relationships to drive the business. With consistency and practice, you'll grow your network of customers and clients beyond measure. And once you're at the next level, it will never matter again what good or service you're selling - you'll always have a strong customer base loyal to you.
Treating your clients like GUESTs every time is only enhanced by your attitude. Find your voice. In the car example above, if I worked for the very storied Mercedes-Benz, I'd learn about German culture. Maybe offer clients' children a small bag of Haribo gummy bears or sign every thank you note with a simple and easily translated danke. The simple gestures can exceed your clients' expectations, setting you above and beyond the competition, and ultimately benefit the sales probability and outcome.
A friend asked if this method is applicable to more than just traditional retail situations. The answer: absolutely.
Imagine for a moment that you're an insurance salesman. Of course, you'll follow an established sales tactic: become well versed in your products and services, identify potential clients, pitch your solutions, ask for the sale, and close the transaction. But it doesn't stop there. Clients want to know that you're going to grow with them, not just sell them one product and move along. Regardless of what you're selling, you must include the promise of future growth and commitment between you (or your company) and the client. If you're selling software, will you offer regular check-ins to train new employees? Will you reassess the clients' business needs on a consistent schedule, ensuring the right solutions for the right needs? Do you offer a discount or incentive to purchase additional products/services/solutions in the future?
It's not always what product or service you're selling, but the access to your expertise and assistance in the future. In the world of computers and telecommunications, Apple not only sells wonderful products, they also push solutions and prioritizes the customer relationship. Senior Vice President of Retail Angela Ahrendts doesn't just bring the style and class of Burberry to the table, but a commitment to building trust and longevity with their very valuable customers.
Sometimes, unconventional leaders are the way to drive the business to unexpected heights. Many might have questioned why the fruitful technology giant would have lured a luxury fashion executive, but for those who know Ms. Ahrendts' critical thinking abilities, quest for excellence in customer experience, and remarkable methods to not only capture clients' attention but their loyalty and lifelong business, it was no surprise. Subsequently, her realigning of the eCommerce department with the traditional brick-and-mortar retail department has already increased profits, minimized expenditures, and maximized customers' opinions.
In short, treat your customers like you want to be treated. Maximize each opportunity to strengthen the relationship, further your brand's awareness, and be honest. After all, the answer is no...until you ask.
Friday, March 12, 2010
A Linguistic Lesson
Language is a powerful tool. Speaking the right language at the right time can be the difference between life and death, or success and failure, or most often - a misunderstanding.
In the world of all things luxe, knowing how to say "hello", "goodbye", "thank you", "welcome", and "have a good day" in a handful of languages can definitely position an associate above other less culturally aware employees.
I'm not saying that every employee should speak a handful of languages. But in today's market, especially considering the current economic realities, a staff that collectively speaks a few languages is incredibly valuable.
I remember back fondly of my times working at Dior when I would greet potential clients in their native language, or thank them and bid them a fabulous day. Instantly, when a client hears their language, especially when they don't speak much English - they trust you more, have more affinity and fondness towards working with you, and are in a much better mood. Going out of your way to learn a few phrases literally translated to thousands of dollars in revenue.
Thinking about language in luxury, I got to thinking about language in general. I wonder - why is it that in our own language, we create new names for countries and cities? Don't you think we should call a place the same name that the people who are from or live in that place call it? Italians refer to their capital as "Roma, Italia", not "Rome, Italy". Or the people from the Republic of Korea call their country Dae Han Min Guk (大韩民国）.
Maybe it would be a sign of cultural respect. Imagine a global globe - one with the proper names of each country listed. Maybe I like thing streamlined and efficient. What do you think?
In the world of all things luxe, knowing how to say "hello", "goodbye", "thank you", "welcome", and "have a good day" in a handful of languages can definitely position an associate above other less culturally aware employees.
I'm not saying that every employee should speak a handful of languages. But in today's market, especially considering the current economic realities, a staff that collectively speaks a few languages is incredibly valuable.
I remember back fondly of my times working at Dior when I would greet potential clients in their native language, or thank them and bid them a fabulous day. Instantly, when a client hears their language, especially when they don't speak much English - they trust you more, have more affinity and fondness towards working with you, and are in a much better mood. Going out of your way to learn a few phrases literally translated to thousands of dollars in revenue.
Thinking about language in luxury, I got to thinking about language in general. I wonder - why is it that in our own language, we create new names for countries and cities? Don't you think we should call a place the same name that the people who are from or live in that place call it? Italians refer to their capital as "Roma, Italia", not "Rome, Italy". Or the people from the Republic of Korea call their country Dae Han Min Guk (大韩民国）.
Maybe it would be a sign of cultural respect. Imagine a global globe - one with the proper names of each country listed. Maybe I like thing streamlined and efficient. What do you think?
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