The importance of human component
Parts of production/distribution process that affects luxury perception
1. Origin, Manufacturing
The origin of a luxury product and the conditions of its manufacturing can significantly influence its perceived value. Consumers often associate luxury with products crafted in prestigious locations known for their tradition of craftsmanship, such as Italy or France.
Knowledge about the specific factories or workshops where luxury goods are produced can enhance the product's allure. Brands often highlight the heritage and expertise of these facilities to convey a sense of exclusivity and quality.
2. Training and Protection of Artisans
Luxury brands invest in the training and development of skilled artisans, ensuring the continuity of traditional craftsmanship. Consumers appreciate the dedication to preserving these artisanal skills, viewing products crafted by trained artisans as more valuable and authentic.
3. Rareness of Materials, Production
Luxury products often utilize rare and high-quality materials with limited availability. Knowledge about the sourcing of these materials and their scarcity adds to the perception of exclusivity and luxury.
Limited production runs further contribute to the sense of rarity and desirability. Consumers value products with low production quantities, as they are perceived as more unique and prestigious.
4. Retail Control
Luxury brands carefully control their retail channels to maintain brand image and exclusivity. Limited distribution through select boutiques or flagship stores reinforces the perception of luxury.
Direct-to-consumer approaches, such as exclusive pop-up events or invitation-only sales, enhance the sense of exclusivity and prestige associated with luxury goods.
5. Craftsmanship Time
The time and effort invested in handcrafting luxury products contribute to their perceived value. Consumers appreciate the meticulous attention to detail and craftsmanship that can only be achieved through time-intensive processes.
Knowledge of the amount of time spent on each product's creation underscores its uniqueness and quality, reinforcing the perception of luxury.
Successful Case
Brunello Cucinelli
At Brunello Cucinelli, the integration of skilled artisans into the company's fabric is paramount, evident in its workforce of approximately 2,000 employees and an additional 7,000 artisans laboring across 400 laboratories, with 70 percent exclusively dedicated to the brand's production. CEO Brunello Cucinelli articulates this emphasis on artisanal craftsmanship, remarking, "Luxury is about feeling the beauty of life. It's not just about the finest materials or the craftsmanship; it's about the soul we put into our work."
This commitment to artisanal craftsmanship is exemplified by the intricate process behind each garment. Skilled artisans, steeped in generations of expertise, meticulously craft every piece, infusing it with a level of detail and precision rarely found in mass-produced fashion. As Brunello Cucinelli recognizes, the human touch adds a layer of soul and authenticity, transforming each creation into a unique work of art.
The brand's adherence to these principles is encapsulated in the "Made in Italy" label, which serves as more than just a geographical marker. It symbolizes a commitment to exceptional quality, time-honored craftsmanship, and a reverence for local heritage. This prestigious designation speaks volumes to customers seeking genuine luxury, embodying a promise of excellence that resonates deeply with Brunello Cucinelli's discerning clientele.
Bottega venetta
Italian luxury brand Bottega Veneta's "Accademia Labor et Ingenium" initiative, launched in October, 2023, emphasizes its commitment to preserving traditional craftsmanship and nurturing future artisans. Through training programs and workshops at locations in Montebello Vicentino and Povolaro Dueville, guided by five master craftsmen, the academy aims to annually train 50 students, ensuring the continuation of Bottega Veneta's legacy. Moreover, by collaborating with regional partners, the academy seeks to promote Veneto's creative heritage and the tradition of "Made in Italy," contributing to both cultural and economic growth. This initiative solidifies Bottega Veneta's dedication to craftsmanship while serving as a guardian of Italian heritage and innovation in the luxury industry.
Unsuccessful Case
Adidas
One example of a brand that struggled after introducing the human component in the value chain is Adidas with its "Speedfactory" initiative. The company aimed to bring production closer to consumers by using automated, robotic processes to manufacture sneakers in Germany and the United States. However, despite the incorporation of human workers in the process, including skilled technicians and engineers, the initiative failed to meet expectations due to various challenges, including technical issues, high production costs, and difficulties in scaling the operation efficiently. Ultimately, Adidas announced the closure of its Speedfactories, indicating the complexities of integrating the human element into automated manufacturing processes.
Amazon
Another example is Amazon's attempt to introduce human elements in its grocery delivery service, Amazon Fresh. While initially relying heavily on automation and technology for order fulfillment and delivery, Amazon later introduced the concept of Amazon Flex, where independent contractors, or "Flex drivers," were hired to deliver groceries to customers' doorsteps. However, despite the addition of human labor, the service faced criticism and challenges related to issues such as driver compensation, working conditions, and reliability. These challenges highlighted the complexities of integrating the human component into a highly automated and technologically driven service, impacting the overall customer experience and perception of the brand.
2024.4.4