OLD meets BOLD: How did this luxury house bridge tradition and innovation, and stay ahead of the curve?
| From the desk of Miles Everson: Hi, everyone. Welcome to today’s edition of “Return Driven Strategy (RDS)!” For those of you who don’t know yet, RDS is a pyramid-shaped framework with 11 tenets and 3 foundations. These principles help businesses and professionals achieve their organizational, professional, and personal objectives. In today’s article, let’s delve deeper into the 5th tenet of RDS ( Innovate Offerings). Read on to know how this luxury brand is able to maintain its success and legacy in the contemporary world through the lens of RDS. |
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OLD meets BOLD: How did this luxury house bridge tradition and innovation, and stay ahead of the curve? Imagine a tapestry woven with threads of time, each strand representing the past, the present, and the future. The past provides the foundation, rich with lessons and experiences that shape our understanding… The present is the dynamic center, where lessons converge with current innovations and ideas, crafting the immediate reality… The future, though unwritten, is the canvas upon which the combined wisdom of the past and the creativity of the present paint their masterpiece… This philosophy of weaving time’s threads rings true for many, but few exemplify it as seamlessly as this brand. Blending Traditions and Trends
Loewe, a Spanish luxury brand specializing in leather goods and fashion accessories, was founded in 1846 in Madrid. As the oldest luxury fashion house under the LVMH umbrella since 1996, Loewe has a storied history. … but did you know that despite its prestigious name, the brand once struggled to find its footing in the modern world? Even under the creative direction of prominent designers like Stuart Vevers and Narciso Rodriguez, Loewe found it challenging to make its brand feel fresh and exciting, often appearing stuck in its traditional leatherworks and suede heritage. So, what did the brand do to triumph over the trials of time? First and foremost, Loewe started with the visionary leadership of Irish fashion designer Jonathan Anderson, who took the helm as creative director in 2013. Under Anderson’s direction, Loewe transformed its revered traditional leatherworks by blending them with contemporary, quirky elements. Sure, the brand remained true to its Spanish roots and craftsmanship, but it began articulating these traditions in a fresh, modern way. For instance : While Loewe continued to use mostly leather, its new designs incorporated cotton and other natural fabrics, adding a contemporary touch to the brand’s offerings.
Loewe also embraced the present by collaborating with other brands like Studio Ghibli, Minecraft, and even auction houses like Sotheby’s. These partnerships infused the brand with modern elements and expanded its reach to a broader, more diverse audience.
Moreover, Loewe repositioned itself as a “cultural brand,” appealing not only to fashion enthusiasts but also to those interested in artifacts, arts, and vernacular crafts. Clearly, old skills met new ideas, breathing new life into the brand! Now here’s the good news… This blend of tradition and modernity proved to be a recipe for success and a bright future! Loewe’s revenue growth is a testament to this transformation:
See? This seamless fusion of traditional craftsmanship with modern innovation revitalized Loewe’s identity, proving that honoring the past while embracing the present is key to a dynamic and successful future. Old Ways + New Innovations = A Triumphant Tomorrow Professor Joel Litman and Dr. Mark L. Frigo , in their book, “Driven,” emphasize the importance of innovation for success. Return Driven Strategy’s (RDS) Tenet 5 (Innovate Offerings) highlights that innovation is crucial for both short-term success and long-term sustainability. According to Professor Litman and Dr. Frigo: “[Businesses must] be vigilant to forces of change that continually impact the types of offerings that should be innovated, as well as the means for innovating them.” Loewe executed this tenet with precision, infusing its unique and experimental leatherworks with modern, artistic elements. Instead of remaining stagnant by focusing solely on traditional leather and suede, Loewe ventured into an eccentric and artistic approach, making the brand both successful and unforgettable to its customers. What’s more? By embracing the inevitable changes in the fashion world and innovating its offerings to align with contemporary trends and customer needs, Loewe maintained its success in the ever-evolving fashion industry. — Loewe’s journey offers valuable lessons for business owners and marketers… Like Loewe, you and your brand can succeed in both the present and future by diversifying your product offerings and adapting to customer needs . Besides, innovation doesn’t have to be out-of-this-world or expensive! What matters is that it excites your audience while catering to their desires. Another key to Loewe’s success was its ability to innovate in response to changing trends and customer preferences . Staying attuned to these shifts is crucial for long-term success. You can achieve this by researching and studying trends, using resources like social media to understand what’s “hot” or missing in the market. By identifying these gaps, you can successfully cater to your audience and achieve higher returns. Overall, Loewe’s story is one of blending the old with the new, honoring tradition while embracing innovation. It’s a testament to the power of adaptability and the importance of keeping one eye on the past and one eye on the future. Always remember : The most successful brands are those that weave the threads of time into a tapestry that is both timeless and timely. By mastering the art of blending traditions and trends, you and your brand can also maintain success and legacy in the contemporary world. If you’re looking to gain a better understanding of Return Driven Strategy and Career Driven Strategy, we highly recommend checking out “Driven” by Professor Litman and Dr. Frigo. Click here to get your copy and learn how this framework can help you in your business strategies and ultimately, in ethically maximizing wealth for your firm. Hope you found this week’s insights interesting and helpful.
Stay tuned for next Tuesday’s Return Driven Strategy! The streaming industry has faced headwinds due to inflation and murky economic conditions. More importantly, it’s a highly saturated market where every player is competing over a finite pool of customers and money. Yet, despite this, Netflix continues to dominate. Learn more about the importance of fulfilling unmet customer needs and how it relates to company performance and pricing power in next week’s article! |
Miles Everson
CEO of MBO Partners and former Global Advisory and Consulting CEO at PwC, Everson has worked with many of the world's largest and most prominent organizations, specializing in executive management. He helps companies balance growth, reduce risk, maximize return, and excel in strategic business priorities.
He is a sought-after public speaker and contributor and has been a case study for success from Harvard Business School.
Everson is a Certified Public Accountant, a member of the American Institute of Certified Public Accountants and Minnesota Society of Certified Public Accountants. He graduated from St. Cloud State University with a B.S. in Accounting.
