{ "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": 41, "pageCount": 53, "prevPage": 40, "nextPage": 42, "slideType": "testimonial", "function": "illustrate_case", "density": "overcrowded", "nDataPoints": 1, "notes": "The slide is formatted as a Q&A interview transcript.", "elementsJson": [ "photo", "paragraph" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-5de0-76bd-a16a-5035606772fa/41", "deckHref": "/decks/019dd923-5de0-76bd-a16a-5035606772fa", "deckJsonHref": "/decks/019dd923-5de0-76bd-a16a-5035606772fa.json", "deckAnchorHref": "/decks/019dd923-5de0-76bd-a16a-5035606772fa#slide-41", "components": [ { "bbox": null, "kind": "callout", "text": "The status symbol is, 'I'm living a healthy lifestyle, which gives me a lot of energy, that gives me a lot of permission to explore all aspects of life.'", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-2e34-7719-b4c1-8d63e587ab66", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.45, "x": 0.05, "y": 0.05 }, "kind": "image", "text": "Equinox club at Hudson Yards, Equinox", "attrs": null, "subkind": "photo", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d0df762a-863c-453c-bc7a-3c0452e59909", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.22, "x": 0.05, "y": 0.75 }, "kind": "paragraph", "text": "Are luxury consumers shifting more spending from physical luxury goods towards health and wellness?", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "16b73c31-560c-468a-9555-7b3e04ac531a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.22, "x": 0.74, "y": 0.05 }, "kind": "paragraph", "text": "The status symbol, in my mind, is not comparing to luxury per se. The status symbol is, 'I'm living a healthy lifestyle, which gives me a lot of energy, that gives me a lot of permission to explore all aspects of life.' What's amazing to me is the convergence of fashion, luxury, music, entertainment, sport, hospitality, wellness — it's all of that coming together. Celine doing stuff in Pilates or Hermès doing stuff around yoga. That is all converging, and it's because the consumer wants the high-performance lifestyle.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1d383887-19fe-4bd5-a63f-538bfd1c98e7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.22, "x": 0.05, "y": 0.25 }, "kind": "paragraph", "text": "Equinox has expanded into an array of wellness and hospitality services. What consumer mindset shifts have prompted this evolution?", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "21553ff0-2370-434c-8e30-315a517a7302", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.22, "x": 0.28, "y": 0.75 }, "kind": "paragraph", "text": "Thinking about post-pandemic consumer psychology, do consumers want indulgence now, or do they want self-discipline? Our hotel brand positioning has been from the day we opened for those who want it all. The consumer today, certainly our consumer, wants to travel, wants to have a good time. I can't talk about the hedonism part, but psychedelics and mental wellbeing is a huge part of what's happening.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "66fc081f-0439-4d55-81cb-d4119f645cbc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.22, "x": 0.74, "y": 0.45 }, "kind": "paragraph", "text": "Did the pandemic cause any long-term changes to customer behaviour in terms of spending on wellness as a luxury? Higher spend — in a lot of cases, no limit on what they will spend, as long as you give them a high-quality product and a high-quality experience. What our members have proven to us, time and time again — and Equinox Optimize is a good example — is if we put in front of them a high-quality, differentiated offering with our authority, our authenticity and our expertise, they get excited about it and they'll pay for it. Equinox Optimize is a $40,000 membership. We have hundreds of people on a waitlist eager to become Equinox Optimize members. The consumer has more discretionary income for health and wellness than ever before.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7b671acb-c535-4e41-8015-e8751872bc8b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.22, "x": 0.28, "y": 0.25 }, "kind": "paragraph", "text": "There's no doubt that the consumer is more focused on experience and not just products. We've been at the cross section of that — experience, luxury, wellness and community — for many years, if not the pioneer in a lot of that. Many years ago, the younger population would — if you were single in a major city, like where we operate — go out and party 'til 3:00, 4:00 in the morning [on weekends], hope you don't get in trouble, and then you would sleep it off the next day to whatever time you woke up. And you would do it again the next night. Now, people at all ages might have dinner out, but it's important that they get home at a decent time, because they want to get a good night's sleep so they can go and experience their favourite class at Equinox.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "aa5e56a3-194b-48b0-8b34-687f73bd13fa", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.22, "x": 0.51, "y": 0.25 }, "kind": "paragraph", "text": "Do you have a vision of the future where wellness sits in with the wider luxury space? The consumer that we target very much wants a lifestyle experience, a unique experience, but an elevated experience. They want something that's high-touch, service-oriented, thoughtful around design, has the right amenities. That's what the consumer expects more of, and they expect you to deliver more uniqueness. We have an Equinox in West Hollywood on Sunset Boulevard. We wanted to do something unique, more forward-thinking, so we've been working with the sculpturist Daniel Arsham. Daniel helped us reimagine what that club should be. That's going to be a good representation of what we think the future will be like from an experience perspective.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f457a187-540c-4656-ac47-bd7edb4fa5a3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.22, "x": 0.51, "y": 0.75 }, "kind": "paragraph", "text": "Do you think that health and fitness is becoming more of a status symbol compared to luxury goods these days?", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f65ce0ca-d5dd-407e-9a2b-3d66318b0860", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.22, "x": 0.05, "y": 0.35 }, "kind": "paragraph", "text": "Over the years, we've done a great job of leading and anticipating where the consumer is going. The most recent example of that is the hotel. When we first started thinking about doing an Equinox hotel, people were like, 'Help me understand that. Is this just going to be like a gym with rooms on top? What are you exactly doing?' And we said, 'No, consistent with what we do, it's going to be a holistic and unique experience and offering.' If you think about how we think about the consumer, just as a brand, we're always looking for unique ways to engage our members, and we think about it holistically, from a science perspective — what we call high-performance living and catering to those who want to live a high-performance lifestyle.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fffbe63c-337e-4413-9e76-511da7aa48ee", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "The status symbol is, 'I'm living a healthy lifestyle, which gives me a lot of energy, that gives me a lot of permission to explore all aspects of life.'", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-2e34-7719-b4c1-91dc214b26b6", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 50, "from": 41, "beatId": "6b1e07b7-782a-4e3b-92fd-fe0535215e5e", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Impact & Next Steps", "beatSlug": "consultants-gambit-impact-next-steps", "evidence": "The report provides examples of companies that have successfully adapted to changing market conditions and offers guidance on next steps.", "position": 4, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [ { "to": 50, "from": 41, "name": "Jobs To Be Done", "slug": "53-jobs-to-be-done", "bestFor": "Product innovation, market entry, competitive positioning", "matchId": "be017af6-9410-4f0a-9f07-3073d22b2398", "evidence": "The report provides examples of companies that have successfully adapted to changing market conditions and offers guidance on next steps.", "position": 1, "objective": "Show how luxury companies can evolve their strategies to meet changing customer needs", "structure": "The Customer's Job -> Current Solutions (Hired/Fired) -> Unmet Needs -> Our Solution Fit", "confidence": 0.7, "description": "Reframe the problem around what the customer is trying to accomplish, not what they're buying" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }