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[Column] Look into your own Competitive Edge
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2015-11-19
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Look into your own Competitive Edge

(SELIM Webzine, Nov. 2015 No. 52)


Chang-Jin Kim

Representative Director/CTA
SELIM TAX-ACCOUNTING FIRM

Marco Bizzarri was settling into a new role as head of the Luxury fashion brand, Gucci in December 2014.  He has been called as a wizard of ‘double-digit man' as he proved his capability in driving business growth to the high profitability in the Companies he has managed so far.     

 

And his story will be introduced here with reference to the article in the Weekly BIZ.

(reference: article in Weekly BIZ Nov. 7 ~ Nov. 8, 2015 written by HW Lee)

 

These days, many companies in luxury fashion brands industry are suffering the stagnation in growth and experiencing the crisis.  Marco Bizzarri, CEO of Gucci, is leading these luxury fashion  industry at the forefront.  He has joined several luxury brand companies and made distinguished accomplishments to turn the business to one of the profitable growth.  But actually, he has his career background in business consultant for banking, sales and marketing, etc., not in professional designer.   

   

What is the purpose of my being here?

Starting in new Company, he checks thoroughly what he should do for the Company and why he is positioned in this place. 

“I never have used the same method for the success what I used in other company.  First thing I do in new company is to get the points why I am positioned here.  As nothing is same in each company, different in brand value, different in character of team members and different corporate culture.  

 

“I try to see why I'm positioned here, and what I should do.  And try to understand what is the own competitive edge of the Company, and try to find the way to improve it.  It is risky to just follow others in this rapidly changing world. 

 

“I have never been involved in fashion industry and has no related backgrounds, and I am not designer.  I just set up plans, strategies and business models.  It is more important to inspire people to create values than manufacturing goods by myself.  My job is to understand people and position them to the right place with an intuitive knowledge.  The consumers, of course, prefer the beautiful and luxurious goods from their point of view.  I'm not able to make those products by myself, but am able to recruit people who make those products.  I'm not able to create products, but am able to be a creative business man.       

 

He is not a designer or fashion professional, but he made the Company stronger by acting in principle of management by himself as a consultant. 

 

He fully understand the roles what he should play in the Company, and looked into the competitive edge of the Company and chose the best management method to get the fame of the Company recovered.  He selected a new creative director within the Company, and positioned the talents at the right places.

 

Be there Where your Consumers are!

He adopted the diverse sales method and adapted to the changes, not keep himself stuck to the past.  He is actually leading the changes, not only responding flexibly to the changes.  Gucci is well known as Gucci is trying to change in distribution channel in new shop concept in retail and internet sales.

Realizing that the best luxury goods are being made by artisans, i.e. by people, he mentioned that the investment to the products is same as the investment the people, “to produce the best luxury goods, the best people we need”.


What are the requirements for the luxury goods?

“First, it is Time.  For the value of being “luxury”, the absolute hours and the historical artisanal technologies are devoted to the products.  This is why the new brands have difficulties to enter the luxury brand market.  The second is the Investment on the products.  To be successful, the goods should be differentiated from the goods of competitors.  It is totally different from the R&D investment in manufacturing companies, as just replacing the equipment with new one could not be a precondition to produce better one.  It is the artisan who produce the luxury goods.  So the investment to the products is the investment to the people.  The best people produce the best products”. 

We arrive at a consistent conclusion that it is the people who produce the luxury goods, and it is the people who manage the Company and all depends on how we promote people.            

 

[The translation is made based on the article in Korean.  The contents in English are subject to be different from the original expression in the interview]

 

(Reference: 나만의 경쟁력을 파악하라, 세림칼럼(웹진) Nov. 10, 2015 커뮤너티)

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