Key Lessons from the Financial Times Business of Luxury Summit in Monaco: Sustainability, Supplies, Succession, Leadership, and Innovation

Dolce e Gabbana Expands into New Lifestyle Categories: Key Lessons from the Financial Times Business of Luxury Summit

At the 19th Financial Times Business of Luxury Summit in Monaco, Dolce e Gabbana’s expansion into at least four new lifestyle categories was a hot topic of discussion among the 450 high-quality delegates in attendance. The summit, set against the backdrop of a city resembling Singapore or Dubai with its new high risers, highlighted five key lessons that stood out from the event.

1. Sustainability is Key:
Kering’s Marie-Claire Daveu emphasized the urgent need for luxury brands to address sustainability imperatives. With Kering pledging to reach net zero emissions by 2030, the focus on reducing greenhouse gas emissions and investing in sustainable practices was a central theme. Brands will need to adapt to a future where luxury goods may become scarcer and costlier, requiring a shift in business models and a commitment to sustainability.

2. Secure Your Supplies:
The importance of securing supplies in a sustainable way was underscored, with CHANEL’s acquisition of over 40 key suppliers showcasing the shift towards vertical integration in the luxury industry. Private equity leaders also challenged the idea of brands following this strategy, suggesting a focus on partnerships with suppliers for sustainable growth.

3. Generational Transition:
As many top luxury players approach a generational transition, the importance of selecting the right successors to lead the business was highlighted. Heirs of first-generation founders like Lorenzo Bertelli and Frédéric Arnault shared insights on their responsibilities and the need for a smooth transition to ensure the brand’s success.

4. Agile and Resilient Leadership:
Leadership in the luxury industry requires adaptability and resilience, as demonstrated by industry veterans like Sidney Toledano. The ability to balance stability and change, build diverse teams, and foster trust with artistic directors were key attributes highlighted during the summit.

5. Accelerate Innovation:
Innovation was a recurring theme, with established brands like Mulberry and Estée Lauder leveraging big data and AI to personalize customer relationships. The expansion into new categories and innovative product offerings, such as Dolce e Gabbana’s foray into beauty and Piaget’s iconic watch collaborations, showcased the industry’s commitment to staying ahead of the curve.

Overall, the summit provided valuable insights into the evolving landscape of the luxury industry, emphasizing the need for sustainability, supply chain security, generational transitions, agile leadership, and continuous innovation to remain competitive in the ever-changing market.