The man who redefined luxury

MANILA, Philippines - It wasn’t so long ago that true luxury retail brands were considered the exclusive domain of the extremely wealthy and idle rich. For us regular and average consumers, and even the moderately affluent, we could only view with envy, or treasure that one piece of travel luggage, handbag, or necktie/belt that we had saved for, and acquired from these luxury brands.

But back in the early 1990’s, when Yves Carcelle took over the reins of the luxury division of LVMH (Louis Vuitton Moet Hennessy), he set in motion a revolution of sorts, debunking the old notion of exclusivity, and proclaiming that one could be ‘exclusive, without excluding’. He ‘democratized’ luxury, without diluting its essence or brand equity.

Personally responsible for bringing US designer Marc Jacobs into the fold as creative director, he turned Louis Vuitton into a hip luxury brand, something unheard of at the time. He gave this luxury brand true global presence, consistently enjoying annual double-digit growth; and he relinquishes his ‘crown’ at the end of 2012, to take over the conglomerate’s foundation.

When the Louis Vuitton store opened at 6750, and then, when it moved to Greenbelt 4, Carcelle came to our shores. After the recent unveiling of the newly renovated Greenbelt 4 store, he dropped by last week for his third visit, in the midst of a most hectic schedule. He was here for all of six hours, arriving in the late morning, and flying off to Sydney by the evening. A true business visionary, I was fortunate enough to spend 30 ‘exclusive Philippine Star’ minutes with the man.

For Carcelle, one of the strengths of Louis Vuitton is that it creates an impact across genders (unlike say, Chanel, which carves its reputation in the female department). Whether one speaks of travel, of bags and shoes, of apparel and accessories, watches and jewellry, Louis Vuitton has helped redefine what luxury means for both men and women.

This redefining, reinventing, is a constant process, and one can never rest on one’s laurels. Excitedly, Carcelle relayed how they are in the process of acquiring their own timepiece movements, so that beyond the workshop in Switzerland that assembles the watches, they will be true watchmakers with their own movements.

The soon-to-be unveiled Place Vendome, Paris LV high-end jewellry shop will also herald another milestone for LV, placing it among the most storied jewellers who are established in this very prestigious location. Here in Asia, aware of, and sensitive to, the nuances of each particular market, they did the practically unheard of earlier this year, and launched a stand-alone Louis Vuitton store at the Incheon airport in Korea. The first of its’ kind in the world, Carcelle waxed rhapsodic about how it’s in the center of its area with no other duty free shops beside it, and how when one enters, the first section is devoted purely to establishing luxury and atmosphere, with nothing being sold.

A tannery in Singapore, skins and hides from Australia and Belgium; while maintaining an eye on their capex, the need to constantly upgrade, do something in a different manner, are all part of this extraordinary commitment to luxury!

Commenting on how there are three stores in Malaysia, and even two in Vietnam, I asked if there were plans for a second LV here in the Philippines. Smiling, Carcelle disclosed how such a development is being discussed. Aware that Filipinos are among the highest in Asia for purchasing abroad, and that so many of their Greenbelt customers indicate the northern part of Metro Manila as their domicile, they are seriously considering a second Manila store in the near future, one strategically located in the North. The new Greenbelt store has to first be savored and enjoyed, but definitely, there are plans afoot.

As for all the talk of Marc Jacobs moving to Dior to assume the post vacated by Galliano, Carcelle mentioned that he had just had a long talk with Marc, and as far as the two are concerned, Marc is happy at LV, and has no plans of moving. Carcelle likened Marc to an orchestra conductor, with a well-oiled team, that is producing its finest work, ‘beautiful music’, and he would have no reason to leave at this time.

With all the talk about his impending departure as head of the Luxury Division, I commented on the trend of luxury brands to turn to heads of mass retail giants, seeming to ‘eye’ the emerging markets that these giants have been established in for decades now.

A graduate of INSEAD, Carcelle has long been versed in taking this global perspective. However, he emphasizes that beyond one’s studies or experience, when it comes to luxury brands, one must ‘possess the passion – not just for the products, but also for the relationship with clients and suppliers’. How personality becomes as important an asset as experience in running a company in this niche market. He advises young business graduates to immerse themselves in retail, as it is the best experience/training ground for practically any form of future management.

Jokingly, I asked which country he would grudgingly have to admit, produces great imitation LV goods. He laughed at this but turned serious, saying he hated them all. A victim of their own success, it’s a known fact that Vuitton is one of the most imitated brands, that counterfeiters make hay with knock-off Vuitton monogrammed bags, wallets and briefcases.

To our credit, he then praised our local IP agency (Intellectual Property), saying that when it came to true political will, he was saluting our Mr. Blancaflor, and the efforts they are making in curbing the sale of these imitation merchandise here in the country.

Leading a high profile life, that by necessity, involves late-night partying, Carcelle remains a very disciplined individual. No matter what transpired the previous night, he gets up at 5 a.m. for an hour of yoga, and is at the office by six. He swims during the summer, and skis when it’s winter.

When January 2013 comes around, an essential chapter in the rise and growth of Louis Vuitton as a global retail force will come to an end. Thanks to Yves Carcelle, luxury has never meant so much to so many – and in that seeming contradiction lies the key to his singular contribution, and success.