Early in 2013, Mercedes announced a re-focus of its marketing and sales operations to improve customer experience by monitoring the entire customer journey across departments. This included the launch of new 'Mercedes me' stores across the world to welcome customers and host events to showcase the brand in a more experiential way.

According to Ola Källenius, board member of the prominent car manufacturer, another example of the company's newly enhanced brand experience is the addition of a "product concierge" to its retail network, a non-sales role to help customers understand the product before and after the sale, without any pressure of transaction. In 2014, deliveries of Mercedes cars rose by 11.4 per cent.

Shifting from personal luxury goods to experiential luxury
The shift of focus away from the luxury product towards the creation of a more customer-centric experience has been identified in recent research by Boston Consulting Group. According to BCG, consumer preferences are turning from owning a luxury product towards experiencing luxury as a whole, with exotic holidays, gourmet meals and art auctions already accounting for a large portion of global luxury spending.

While this evolution in consumer behaviour is most striking in developed markets such as Europe, Japan and the US, newly affluent buyers in emerging economies such as China and India still tend to amass tangible goods to emphasize their wealth. Once their hunger for luxury products is sated, they too will tend to move on to one-of-a-kind experiences that they can share with others.

With these predictions, it comes as no surprise that manufacturers of personal luxury goods are exploring new ways for customers to experience their brand and products, complete with personalized service and exclusive events.

Defining categories of the global luxury sector
Worldwide sales of personal luxury goods have tripled over the last 20 years and were mostly unaffected by economic trends. However, future growth is forecast at a slower four to six per cent and bound to face new challenges in terms of consumer behaviour and demands, shifting demographics and new distribution channels.

Personal luxury goods, comprising accessories, fashion items, watches and beauty products, still make up 25 per cent of global luxury sales, but growth has been slowing in 2013, partly due to currency effects, according to the latest Luxury Goods Worldwide Market Study by Bain & Company, a consulting firm specialized in luxury markets.

By the same token, experiential luxury such as five-star hospitality, fine dining and foods together made up over 30 per cent of the impressive one trillion USD global luxury market, reaching growth rates of up to ten per cent. The industry further includes categories such as luxury cars and other vehicles, art and designer furniture and luxury technology items.

Coveted skill-set of hospitality graduates
In their efforts to strengthen customer experience, luxury goods brands are turning towards the hospitality industry, where five-star hotels are setting the standards for creating luxurious travel experiences through high-level customer relations and personalized service.

Similar to five-star hotels, luxury brands aim to turn their stores and boutiques into lavish luxury temples where consumers come to get pampered and experience the latest brand creations with all their senses, tended to by qualified hospitality staff.

Therefore, luxury brands are increasingly hiring hospitality graduates to tap into their skill-set of dealing with a demanding high-end clientele across different cultural and linguistic backgrounds, with an acute attention to detail and sense of aesthetics.

Launch of Glion's Luxury Brand Management Specialization
Glion Institute of Higher Education, a world-leading hospitality management institution based in Switzerland with a branch campus in London, has for many years hosted hotel companies on campus to directly recruit interns and graduates for their businesses.

Due to the recently heightened interest of luxury companies in hospitality students, Glion has created a new specialization in Luxury Brand Management for its Bachelor degree in Hospitality Management, delivered in partnership with Domus Academy, a Milan-based fashion and design school.

This exclusive program combines the strong work ethic, attention to detail and sense of impeccable customer service required to enter the hospitality industry with luxury brand management expertise, equipping graduates to deliver a unique customer experience and take part in shaping the future of the global luxury goods industry.

Alexia Robinet
Laureate
+41 79 310 81 93
Glion