Why do some luxury companies remain resilient through times of change, while others do not? The reason is that these companies have unique skills to diversify their revenue generation by being ambidextrous. Luxury companies today cannot depend on their reputation or their creativity alone to remain resilient, rather they require the ability to be ambidextrous - to explore new trajectories for future growth and exploiting their iconic values. In past decades, the industry has shifted from product to customer centric and forced companies to adopt new strategies and approaches to succeed. This includes the adoption of digital platforms such as ecommerce, social media and mobile enabled tools to continually elevate customer experience. In addition, new business models have emerged to address growing pains, particularly in inventory issues, over manufacturing and sustainability. Brands today are forced to adopt evolution through innovation that is anchored by new values without compromising their DNA. Based on in-depth research and interviews with CEOs from leading luxury companies, Lojacono and Pan show how companies can hedge their risks and remain resilient in times of change.
About the Author: Gabriella Lojacono is Associate Professor at the Department of Management and Technology and Director of the Made in Italy Vertical, B4I, Bocconi University.
She is a senior researcher of the Gucci Lab, Bocconi University. From January 2017 to December 2020, she was Faculty Deputy of the Strategy and Entrepreneurship Knowledge Group.
She has been the Director of the Executive Master EMiLux, SDA Bocconi since 2016. She has run several executive education open programs and custom initiatives with some of the leading companies in apparel and leather goods, design, jewelry, hospitality, F&B, automotive, eyewear, and cosmetics. Her research projects have focused on the international growth of the Made in Italy industries and companies as well as on luxury strategy and business models.
She is the author of numerous books and articles on her topics of interest. Her works have been published in Economia & Management, Sloan Management Review, Long Range Planning, and International Business Review, among others. She has authored numerous case studies, filed in international databases, about multinational companies such as Farfetch, Starbucks, Davines, Inditex, Ferrari, Illy, Gucci, and Valentino.
