Club Corner - Presidents of Luxury Retail Club
Stern Opportunity
Issue date: 3/10/09 Section: Voices
Name: Catherine Beal & Sean Kelley
Club Affiliation: Luxury & Retail Club
Position Held: Co-Presidents
Club Mission: To educate club members about the luxury & retail field and help them make meaningful connections within the industry.
Major: Marketing & Strategy
Favorite Classes/Electives: Managing Growing Companies
Summer Experience
What company did you work in this summer?
We both worked at Coach. We were both in Corporate Merchandising, Catherine worked on a new brand extension and Sean worked on the men's Japan business.
Opinion
What is your view on the current economy and how do you think the retail industry is affected by it?
There is no doubt the retail industry has been significantly impacted by the current economic situation. Companies like Circuit City, Fortunoff, and Linens & Things are just a few of the major chains that have fallen victim to the economy. In most cases these stores had poor merchandising and invntory management which contributed to their downfall. February retail sales for the industry were flat to last year except for Walmart which had a positive increase over last year. Higher end stores suffered a significant decrease in sales, some on the order of -30%. Clearly this indicates that consumers are seeking value and shunning discretionary spending. The positive side is that February was slightly better than January, hopefully this trend will continue.
The luxury industry is known for having huge margins which are now being cut… Do you think this is simply a temporary change or will have a lasting effect on the way the industry works?
The luxury industry has been growing at such a rapid rate that it’s not surprising that this growth rate can’t be sustained. One of the reasons for this growth is the desire people have for high quality items that are truly special. The industry is recognizing that customers will still purchase luxury goods that are highly differentiated. Industry wide, the importance of customer service and customization are going to become increasingly important. With so many options available to the consumers, luxury companies need to stay true to their brand identity and deliver the highest quality product they can to their target market. I believe that the brands that do that successfully can survive this recession and can maintain their margins.
Your take on the New York Fashion week?
Fashion Week was definitely more subdued than in years past. Designers wanted to stay true to who they were but be sensitive about the times and the uncertainty that we are facing. In times like this people crave familiarity and most designers put clothes down the runway that highlighted their signature styles.
Anna Wintour said the Fist Lady is going to change the way people think about/enjoy clothes and fashion. Comment? (http://online.wsj.com/article/SB123457778831886993.html)
Michelle Obama is exciting for two reasons. First of all, Americans find her very approachable and relatable. She wears a variety of clothing with such ease and poise. It’s not uncommon to see Michelle wearing JCrew as well as luxury labels like Jason Wu and Narciso Rodriguez. It’s exciting for the fashion industry to have someone in such a visible role that embraces American designers especially younger emerging talent.
What’s your club’s signature event for the coming school year?
The second annual Think Social Drink Local SEA event, which we help organize, is our primary event in the spring with the Eco Friendly Fashion Show. The event was a tremendous success which was expanded to the West Side Lofts this year so we could accommodate more people, though we still sold out both years! Congratulations and thanks to everyone who worked so hard to plan the event!
What type of functions do b-school students typically go to in the Luxury Retail sector?
Our club is an industry club, so there are a large variety of functions that our members are involved in. These include but aren’t limited to finance, operations, merchandising, marketing, sales, consulting, and strategy.
What do you think about the notion that Stern is considered to be a “Finance” school?
While Stern does have a tremendous reputation for Finance there are many different facets to our school. We have media and entertainment, marketing, entrepreneurship, and soon we will be the first business school in the top 10 to have a Luxury & Retail specialization.
What advice would you give to the class of ’10 ahead of the upcoming recruiting season?
Be persistent and don’t hesitate to reach out to smaller companies. Traditionally, the industry hasn’t looked to MBAs, but this perception is changing. It is important to know exactly what your value-add is to the organization and have a clear way of articulating that to the company.
Also, it’s an industry based on connections. Networking, even in casual setting is extremely important.
What other thoughts would you like to share with our readers?
Sean – Forest Gump said it best “Life is like a box of chocolates, you never know what you are going to get”.
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