Former global president of Old Navy Stefan Larsson (pictured left) has recently been appointed to succeed American designer Ralph Lauren (pictured right) as chief executive officer of the former’s titular fashion empire.
In comments to Marketing Magazine on Ralph Lauren’s Succession Plan, Lawrence Chong, CEO of Consulus sees the appointment as part of an emerging hiring trend.
Chong thinks the talent love between mass-market and luxury cuts both ways: “When Angela Ahrendts left Burberry to join Apple as retail head, it was a major nod to the trend that making luxury accessible is the way forward. This means reaching out early to the rising group of High Earners.”
But this is a tough balance to strike. How does a luxury brand prevent losing its premium feel and image while becoming widely accessible?
“It is more like introducing premium economy class on an airline and getting people to watch through the business class experience so as to induce one to upgrade. It is a tried and tested model and it works,” Chong explained.
Through such mass-market poaching, luxury brands can hope to achieve a more sustainable revenue pipeline in an increasingly complex market. It is all about hiring the right people with experience in serving the wealthy middle class who are moving towards the high net worth category and how to appeal to this group, Chong said.
Read the full article on Marketing Magazine here.