Michael Wainwright is Managing Director and co-owner of Boodles, the British society jeweller, which has nine stores in London and its heartland of northwest England. Soon after the opening of the brand’s spectacular new flagship on London’s Old Bond Street, he spoke to LUX  as part of our on-going Luxury Leaders series, about Britishness, the retail experience, and possibly going to America.

Michael Wainwright

LUX: What is the state of play for the luxury industry?
Michael Wainwright: Our business is less tied to the economy than you might think. We are more dependent on wealthier people who don’t lose their wealth overnight. My thinking these days, after years of economic crises, is fairly optimistic. The prognosis is pretty good for the luxury goods and jewellery sector. The world is a richer place than it has ever been and people will continue buying.

LUX: Boodles is the only significant British jeweller and one of the only family-owned ones anywhere. How important is that?
Michael Wainwright: Britishness is important to our business. British people like to deal with a British brand and our overseas clients love to deal with “Britishness”. British clients account for 75% of our business. Telling the British story is important for us, and also the family story: we are a family business, and maybe we don’t tell that story enough.

Read next: LVMH and Hublot’s leading man, Jean-Claude Biver on personalising luxury 

The Boodles boutique on Bond Street

Inside the newly refurbished Boodles boutique

LUX: Are there disadvantages to being British?
Michael Wainwright: There are disadvantages to not being overseas. Lots of brands have presence in Hong Kong, Dubai and Paris. Clients see their brand everywhere; it’s a huge head start. But now there are quite a few Middle Easterners looking for more localized niche brands, which is an advantage for us. They don’t want a brand that is in every mall in the Middle East. Asians still are more about following the herd, but that will change.

Raindance Ring

LUX: What are your views on e-commerce?
Michael Wainwright: Only one percent of our sales are e-commerce at the moment, which is not high, but it is growing fast. I think it has potential to reach four to five percent. Most people will want to experience the story, to touch and see things. Online is a very cheap sale, which is very profitable. But in a shop, you have the chance of making an add-on sale, you build a relationship. If a customer buys online, you may never see them again. It doesn’t build the brand experience. Relationships are absolutely fundamental to business.

Read next: British businessman, Javad Marandi talks investment philosophy and strategy

LUX: What’s the greatest challenge you face?
Michael Wainwright: The Walpole Group (the British luxury association) recently noted there are two hurdles to growing a business: one at £20m (annual turnover) and one at £80-100m. We are now at the second hurdle, we are a £80m turnover business. We don’t feel we can build to the next stage just by being in the UK. We are very involved in our business as a family and we have not yet really learned the art of delegation, which is what is required if you are overseas. We would need to pick the right partners for, for example, opening in New York or the Middle East. We would need to acquire those skills of delegation. It’s an interesting stage. These are big hurdles.

boodles.com

With a billion people about to become luxury consumers over the next decade, real luxury will become more personal, more individual and more secretive. So predicts our columnist, Jean-Claude Biver, continuing our series on business philosophy and strategy 

Jean-Claude Biver

Luxury will always will be here. Growth will always be here. When people do better, they want to differentiate themselves, so the growth of luxury will always track economic growth.

But in the future we will have two different levels of luxury: accessible luxury, items that have an incredible image but an affordable price, and inaccessible luxury. This is the extreme luxury of people wishing to have something made for themselves or being completely different, being unique, saying, “What I have, you will never have”.

Accessible luxury will be huge: the middle class in China will develop to 500 million people, in India maybe 300 million, in Latin America around 200 million, so you will have a billion new customers in the next 20 years. This middle class will definitely go for the accessible luxury, but maybe 10 million out of this billion will want real luxury. That will comprise exclusivity, incredible quality, and uniqueness. And these two types of luxury will develop together. Luxury will be like a building with two floors – only a few people will go up to the second floor, while most people will remain on the first floor.

Read next: Leading auctioneer, Simon de Pury on the eternity of art 

The upper tier of luxury will be defined through exclusivity and also through the fact that it will adapt to the facets of made-to-measure luxury. These people want individuality, something made just for themselves. They want something that other people’s money cannot buy, because that’s the ultimate. You get access to something that normally money cannot buy, but you can buy it because you have the relationship and the contacts. That will be the extreme level of luxury, only for you, and to enable you to stand out from the masses and their accessible luxury. The way this extreme luxury is communicated will also change. It will be word of mouth, very discreet and only for the few who know. Like a secret: “Ah, you know this brand, wow, you belong, because you wear this shirt or this special tie or these special socks made in Rome.” The ultimate individualization of your person.

Jean-Claude Biver with Cara Delevingne at the TAG Heuer Yacht party during the 2015 Monaco Grand Prix

People will still collect, will always collect, but the problem with today’s goods becoming collectible is linked to the concept of eternity. If I collect a Ferrari that is from the 1980s or 1970s, that is a car that will enter eternity because whatever the new industrial revolution brings us, this car will comfortably be repairable. But modern cars, because they are not mechanical any longer, will not be repairable in 100 years because the microchips that control everything from the gearbox to the windows will be useless. That is why a Ferrari Testarossa (from the 1980s ) or a 275 GTB (from the 1960s) will still be collectible. Why should people collect what is due to die when they can collect what is due to become eternal? That’s why you can have an old Lockheed Constellation plane (from the 1950s) and it still works – you can fly with it! An Airbus A380 will not still be capable of flying in 50 or 100 years.

(From left) Lapo Elkann, Jean-Claude Biver, Bar Refaeli, Esteban Gutiérrex, Pelé and Ricardo Gudalupe celebrate the opening of Hublot’s second manufacture in Switzerland

Luxury should be marked by eternity. Great art is eternal and there is nothing else made by humans that doesn’t die, just art. So that means luxury is eternity and luxury is art; and if you can create the eternal, you have the business of the future in luxury.

Read next: Chopard’s Caroline Scheufele on the young luxury consumer 

But accessible luxury is very different, a more competitive field where you have more marketing and illusions. But everywhere there is going to be a reaction to mass luxury. People will want more and more to be considered individuals. We all need to be treated like kings, to be treated differently, because we are surrounded by mass. Look at travel – that’s why people have a special area to check in when they fly first class, a special line for security, a special seat, special food and so on. People need to be treated differently because now everything is going mass.

In the area of accessible luxury, the same brands are adapting, they are comfortably innovating and comfortably renewing their offering and positioning so they stay current. They will adapt and survive. In accessible luxury, it will be more difficult for newcomers to enter the market. But in the area of higher quality luxury, we may have new artists and creators coming. Because it will be very personal.

Jean-Claude Biver is president of LVMH Watch Brands and chairman of Hublot. lvmh.com, hublot.com

The investment potential of the best art will just keep on increasing, says Simon de Pury, one of the world’s most renowned auctioneers, as art becomes ever more aligned with high luxury.

Simon de Pury

Art is the ultimate luxury. You don’t need it to live, which is a definition of a luxury. And in the past few years other similarities between the art market and the luxury market have emerged.

Ten years ago you would go to different – not luxurious – parts of town to see art. In New York you would go downtown; in London you would go east for certain exhibitions and galleries, for example. Now, though, in the art business you need to be very central for the same reasons as you do in the luxury market: it’s all about location, location, location. Thus the concentration of top galleries that are installing themselves in Mayfair in London, while in New York there is a return to the Upper East Side. There’s a lot of artistic activity focusing on these areas because when the international traveller comes to town, he stays in the heart of the city, goes to the top hotel and wants to have everything in an immediate circle, and wants to not have to waste too much time pursuing these passions. So all of that has had an impact, changing the market quite fundamentally. Galleries are now seeking real estate in the same locations as the top luxury brands.

Read next: Interview with Guillaume Davin, CEO of Moynat

Art is also the ultimate luxury because you get emotionally involved, and if you go about it smartly it can be a very rewarding passion. Rewarding in every sense.

Erik Bulatov, Rouge a Levres, 1994, pencil on paper

In concurrence with these developments, the art market is changing also. The market has become global, so for the first time you now have people from all parts of the world buying art from all parts of the world. Compare this to the Cold War, when some artists in the east had no idea what was happening in the west: you had artists working in total isolation. Today there is much easier access to knowledge and information about what is happening in different places through the digital revolution. And this has fuelled further internationalisation. You have biennials in Havana, Sydney, Shanghai, Venice and Istanbul. There is a now a great exchange of information and knowledge, and with knowledge comes a greater interest in acquiring.

Read next: How one of Azerbaijan’s richest men does business 

The information that used to be accessible to a small group of insiders is now much more easily and much more widely accessible. As a result, if you look at a list of the most affluent people in each country, 20 years ago there would have been a relatively small percentage of those who were collectors, whereas now if you look at the same lists, there’s a much bigger percentage collecting. And it’s also that which gives art the ultimate status. You can be a very successful businessman, yet it will never give you the same kind of kudos as you get when you are building a great collection. It’s your cultural achievements that leave your biggest mark and your imprint, and that is one reason why individual collectors in different parts of the world have become the main cultural movers and shakers – much more so than the main institutions.

Erik Bulatov, Perestroika, 1989

Read next: Manufacturing millionaire: Javad Marandi reveals his Swiss investment secrets 

Nonetheless, there are factors any collector should be aware of. Your collection is your self-portrait. Collecting is an artistic, creative pursuit in itself. By collecting you show who you are and give yourself an identity. For that reason your collection cannot be put together by a committee: it has to be one person who takes the decision of what to buy and (just as important!) what not to buy. Equally, having a professional adviser who is very familiar with the market can help you avoid making mistakes and can help you to navigate the market, so it makes sense for people who have built substantial collections to have either in-house or external specialists that they consult. But even so, it is important that the person who is building the collection follows their own instincts. I often see people who start collecting becoming as knowledgeable as anyone else in the market.

There are questions of a market readjustment. Whenever the market becomes stronger and stronger there are always moments of readjustment. No market just goes vertically up without any fluctuations. And, of course, tastes evolve as well, so what is regarded today as the most desirable things may not be regarded as so in 50 years. Having said that, if you buy only the best quality you can only do well, because you can analyse it statistically from the 1850s onwards and see sufficient documentary evidence that the prices of major art transactions just keep going up. Still, there are some masters of the past – not just artists of our times – that we value much more highly today than 50 years ago. But be aware: there will always be artists who are like a fashion phenomenon – once the initial excitement dies down, so do the prices.

Simon de Pury is an art auctioneer and collector and the founder of de Pury de Pury. depurydepury.com

Guillaume Davin is CEO of Moynat, the uber-luxe leather goods brand established privately by Bernard Arnault as a rival to Hermes. Moynat is not part of Arnault’s LVMH group, and the brand is run as a boutique global atelier. In the second part of our series on luxury leaders, Davin, previously a Louis Vuitton veteran, speaks to LUX about conquering the East, and how to keep a brand’s mystique

CEO of Moynat, Guillaume Davin

LUX: Is Moynat a new luxury brand or an old one reimagined?
Guillaume Davin: Moynat is a House that is more than 160 years old, in which we have infused a new soul. We have been giving new life to a great name, staying focused and true to the essence and heritage of the Maison. This is not merely a renovation of what existed. The result is something that is true to our heritage but relevant to the present.

LUX: What is your consumer craving, that you provide?
Guillaume Davin: We create objects that contribute to fine living, objects which will become known for their craftsmanship, endurance, discretion, elegance and their innovative design rather than bowing to the trends of the day. A Moynat bag is of today and also timeless: always beautiful, always relevant. Moynat appeals to people who are independent in their tastes and choices and not influenced by fads, but looking for beautifully made objects.

Read more in this series: Interview with Javad Marandi, global investor

LUX: The luxury conversation has turned towards ‘experiences’. How does a purveyor of goods provide luxury experiences?
Guillaume Davin: When you enter a Moynat boutique, you discover a new world, you learn about natural leather and traditional techniques such as leather marquetry, angle stitching, wood sculpting, painting… We also feel that the purchase of a beautiful bag should be linked to a moment of your life, such as a memorable visit to Paris for example. Luxury is not just about the object you purchase but your personal connection to the brand and to the story that it tells. That is why we tell the story of our brand and of each product so that is becomes intimate and real for each of our clients.

LUX: Are stores still essential to the luxury experience?
Guillaume Davin: Our clients are looking for the human touch and are very attached to the service they receive. Our team is kind, friendly and passionate; they know our heritage, the leather, the craftsmen, our creative Director… they focus on building relationships and communicating our values. Our visitors can understand who we really are. You need to see our vintage trunks, touch the leather. The Moynat experience is very sensorial and cannot be fully transmitted in a virtual environment. Our products are quite sophisticated and one of our strengths is personalisation and customisation.

LUX: Your personal journey involves a deep understanding of Japan. How does Japan fit in the luxury world now that China is so dominant?
Guillaume Davin: Japan is a place where tradition meets innovation. The Japanese people respect tradition but love innovation: they actually hate change but love newness, a paradox! They protect their ancient crafts, ceramics, lacquer, textiles, woodwork, but expect the artisans to fuse modernity with ancient skills. It is a culture that has an eye for quality and a refined sensibility, which is a perfect fit for Moynat. China is often considered a newcomer to the luxury market, however our customers are just as discerning and sophisticated. We just opened our first boutique in Tokyo in March; it is as exciting to introduce Moynat to the Japanese as it is to bring Moynat to China.

LUX: What does it take to be CEO of a brand owned by your proprietor?
Guillaume Davin: Mr Arnault is a passionate explorer and a competitive entrepreneur. He decided to revive Moynat out of a “coup de coeur”. Moynat is a personal project for Mr Arnault, not a part of LVMH, so we are very different from the group in every sense, from size to way of functioning. Mr Arnault gives Ramesh the creative freedom to express his vision and Ramesh in turn challenges the craftsmen to express their talents.

LUX: Media and advertising has been so central to LVMH brands. Moynat stands apart – how do you do it and is it a challenge?
Guillaume Davin: We have been lucky to have clients who are have been our ambassadors. Their word of mouth has been the best and most authentic marketing tool that we could imagine. We use the best of social media (such as Instagram and Twitter ) to share our stories and life as a way of direct contact with our clients and friends.

The recently opened Moynat boutique on Madison Avenue in Manhattan

LUX: How do you see the climate for your products developing?
Guillaume Davin: We are seeing a return to the true meaning of luxury, where the product is invested with meaning and true rarity. Our clients are happy not to be just a cog in a machine, but to own something truly precious, authentic, timeless, historical, a product that requires time and patience.

LUX: What excites you most about opportunities going forward?
Guillaume Davin: We are growing in an organic way with total control on our manufacturing and quality. This is a challenge but also a great opportunity, to find new trends in social media to connect with people who share our vision of luxury and are looking for new, authentic experiences. We have to tailor the experience we offer to each market, and at the same time keep a common core that is constant and true to the spirit of Moynat.

LUX: What does your travel schedule involve? Why do you love doing what you do?
Guillaume Davin: Along with growth comes non-stop travel, which is exciting as well as exacting, because you can see the results of every decision on different markets. Each day brings its challenges, which is what keeps us passionate about our work. Being a marathon runner, I am in it for the long haul.

moynat.com