Claudia D'Arpizio
Partner
Bain & Company
Excellence in Retail
In this economy, it's hard to imagine a more challenging consulting job than Bain & Company's Claudia D'Arpizio: helping luxury goods manufactures/retailers market their products. "It's not just that consumers are buying less. But there's now a shame in showing off. Consumers are being criticized for spending too much money," she says.
As a result of these pressures, she estimates that the luxury goods market will contract by about 10 percent in 2009. "In my opinion, this market reacts more sharply to the economic shifts," she says. "When the economy improves again, we will have a dramatic improvement in consumer confidence," which will lead to a pickup in luxury purchases.
For now, D'Arpizio has to dip into her 15 years of experience focusing on the luxury goods industry to find ways to get her clients through this downturn. While advice varies by client, generally, she is pushing her retail clients toward more online purchases, which has a lower barrier to impulse shopping. She has also found success in encouraging luxury retailers—especially men's stores—to open earlier and stay open later for "special events." This approach not only makes the customer feel important, but it is especially effective for buyers that do not want to be recognized shopping for luxury items. She's also helping clients change their product mix, helping to make items less ostentatious and push more value for the money.
D'Arpizio has well positioned Bain's own brand by working with the trade group Altagamma on an annually-updated database and study of more than 220 luxury goods companies worldwide. The annual findings, now in its ninth year, is one of the most sought after Bain & Company intellectual property assets—frequently requested by luxury goods company executives, top-tier academics and both the international and local market media.
Brand-conscious clients also are keenly aware of Bain's own brand in this space. "For sure, they are professional in understanding the value of a brand. And they realize that our brand stands for related experience and the ability to put together a great team," she says.
—Jess Scheer
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