{ "docId": "019dd923-5de0-76bd-a16a-5035606772fa", "docSlug": "499423190bd2a1a5", "documentTitle": "The State of Fashion Luxury", "authorId": "McKinsey", "authorName": "McKinsey", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.333, "pageNumber": 32, "pageCount": 53, "prevPage": 31, "nextPage": 33, "slideType": "problem_statement", "function": "frame_problem", "density": "overcrowded", "nDataPoints": 3, "notes": "The slide uses a background photo of a luxury store window to set the context for the customer insights presented.", "elementsJson": [ "headline_text", "bullet_list", "big_number", "photo" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5de0-76bd-a16a-5035606772fa/32", "deckHref": "/decks/019dd923-5de0-76bd-a16a-5035606772fa", "deckJsonHref": "/decks/019dd923-5de0-76bd-a16a-5035606772fa.json", "deckAnchorHref": "/decks/019dd923-5de0-76bd-a16a-5035606772fa#slide-32", "components": [ { "bbox": null, "kind": "callout", "text": "On top of challenging macroeconomic factors, luxury players have struggled to keep their promises to customers, primarily when it comes to quality and price.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-2e34-7719-b4c3-7191f0ebca9d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.4, "w": 0.45, "x": 0.05, "y": 0.47 }, "kind": "list", "text": "On top of challenging macroeconomic factors, luxury players have struggled to keep their promises to customers, primarily when it comes to quality and price. This is undermining the perception of exclusivity that is so critical to the luxury model. Luxury brands must uncover what matters to their clients to reinstate their worth.\n\nCustomers are increasingly opting to trade-off luxury goods purchases for experiences, such as travel and health and wellness. Time is the greatest luxury of all, and customers perceive these experiences to enrich their time more than expensive items. While a threat to personal luxury goods growth, it is also an opportunity for brands to evolve their engagement strategies and portfolio.\n\nCustomers express high expectations for luxury brands in terms of both product innovation and in-store experience. Brands must build capabilities and evolve their operating models to meet growing expectations.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "dbfdb0a3-029c-4221-997c-172583844a7f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.1, "x": 0.55, "y": 0.62 }, "kind": "metric", "text": "~80%", "attrs": null, "subkind": "big-number", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "12f73909-a506-445e-82b2-a4bee276d29c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.1, "x": 0.55, "y": 0.76 }, "kind": "metric", "text": "36%", "attrs": null, "subkind": "big-number", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "68bfcd5b-20d5-49da-99a3-0d1d77914dfa", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.1, "x": 0.55, "y": 0.48 }, "kind": "metric", "text": "80%", "attrs": null, "subkind": "big-number", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e6eaf28a-81d3-4773-8407-ed7e175e452a", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "customer sentiment: 80%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-2e34-7719-b4c3-75e01bde36c1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.25, "x": 0.68, "y": 0.48 }, "kind": "paragraph", "text": "of UHNWIs say they want to discover new, niche brands", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1d105426-52a1-4cae-a8e1-17bd8ec4e0ab", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.25, "x": 0.68, "y": 0.76 }, "kind": "paragraph", "text": "of luxury customers believe that luxury in-store experience has worsened", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "41809b55-a314-459e-ad74-4f18af06101c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.25, "x": 0.68, "y": 0.62 }, "kind": "paragraph", "text": "of HNWIs expect to shift part of their spend to experiential luxury and wellness", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9ad90372-ed52-4e6e-bb82-56d75dde37dc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.25, "x": 0.68, "y": 0.91 }, "kind": "source-note", "text": "Shoppers walk by a luxury store. Henry Nicholls/Getty Images.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2544ab23-745d-41b4-9763-20a802beaa21", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "title", "text": "Luxury's promise has fallen short of expectations", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9e4fd5fe-9818-4cbf-84b1-68d1b8a2e0f1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.2, "x": 0.05, "y": 0.06 }, "kind": "title", "text": "CUSTOMER INSIGHTS", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ab54ba1a-d9d5-4751-8415-52b0104b896d", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 40, "from": 32, "beatId": "0e5b37bc-9753-4ced-a6dc-a12a8d4b66e5", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Solution & Approach", "beatSlug": "consultants-gambit-solution-approach", "evidence": "The report offers recommendations for luxury companies, including rethinking their target customer base and evolving their strategies.", "position": 3, "confidence": 0.8, "parentBeatName": "Turn", "parentBeatSlug": "turn" } ], "loops": [ { "to": 40, "from": 32, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "4fb02fc7-e14d-4da1-8ed0-ed5e5ac5877d", "evidence": "The report emphasizes the need for luxury companies to take bold risks and invest in critical areas to avoid falling behind.", "position": 0, "objective": "Highlight the consequences of not adapting to changing market conditions", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }