September 18, 2020
Social distancing is the new sine qua non for doing business, impacting every sector from media-led events to retail and hospitality. Image credit: Condé Nast
On the latest Luxury Item podcast, host Scott Kerr is joined by Luxury Daily editor in chief Mickey Alam Khan to share his thoughts on how luxury brands can successfully respond to industry changes, and recalibrate their business in a post-COVID-19 world.
The last time Mr. Alam Khan appeared on the show, the pandemic had just hit the economy and the luxury sector like a wrecking ball (see story). In this episode, he predicts what brands will remain intact after the dust settles.
“Those who have deep pockets will be able to survive,” Mr. Alam Khan said. "But those who have deeper brands, will outlast their competition."
Produced and hosted by Mr. Kerr, The Luxury Item is now in its second season and features interviews with luxury leaders and disruptors. By day, Mr. Kerr runs the brand strategy firm Silvertone Consulting and is an adjunct professor at Fashion Institute of Technology.
In this latest interview, Mr. Alam Khan believes customers are not shifting their spending away from experiences toward luxury products, as some retail executives recently declared.
"The experience is the product – they go hand in hand," said Mr. Alam Khan. "It's how you deliver that product that makes it an experience."
Evolution and revolution
In the podcast, Mr. Alam Khan believes coming out of the crisis, brands will have to have a sharper definition of their customers to better target their new expectations and attitudes. He thinks smart luxury brands will continue to do collaborations to stay relevant and sustain longevity.
Also, the editor weighs in on Amazon's new luxury platform. He says Amazon will succeed only if it gets cooperation from LVMH, Kering, Richemont, and other leading luxury brands.
Their conversation turns to luxury brands' becoming even more reliant on Chinese spending.
Mr. Alam Khan and Mr. Kerr discuss how China's fragile political relationships with other global regions could lead to either a boom or "avenge spending" against Western brands.
Plus, Mr. Alam Khan speaks optimistically about the future of Fashion Week and that it is "going through a phase." He feels it is very important to have a physical presence and create an event to showcase young, undiscovered designers.
"At the end of the day, you need to make eye contact,” Mr. Alam Khan said. “You need to shake hands. And that's how you create relationships.
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