One of the greatest opportunity that Bocconi can give you is certainly its broad network. For istance, thanks to Bocconi Alumni Association, I had the privilege to take part to the Energizer Breakfast with Luca Solca, Managing Director, Luxury Goods at Exane BNP Paribas.
The Energizer Breakfast is a great conference format. It is usually very early in the morning, starting with a good Italian breakfast with heterogeneous Bocconi Alumni, it focuses on a professional speaker’s experience and opinions on a specific business topic.
As soon as I heard that the next meeting was about Italian luxury companies, I forced myself to leave the bed at 7 AM and it was totally worth.
I started my day learning three different insights:
1. Luxury companies should stop investing so heavily in new store openings in China: although, the huge Asian country has the biggest growing luxury expenditure, Chinese people prefer to shop abroad.
2. Sales per sq ft is the most relevant KPI for luxury company. The right retailing strategy has become crucial for the brand profitabily. That is why shops location, merchindising and interiors must be accurately evaluated.
3. The e-commerce channel is crucial for growth. E-commerce sales bring superior margins and ROIC, because you don’t pay rent on e-commerce sales (on average, 12% of sales) and back office staff is less costly than in-store staff. Moreover, incumbent luxury brands can exploit formidable assets such as high consumer brand recognition and vast physical retail network which can serve as pick-up point.
I hope what I’ve learned during my experience at this amazing event can be helpful or at least interesting for you all, it definitively was for me!