Portia Antonia Alexis is a leading consumer business analyst, neuroeconomist and mathematician

Portia Antonia Alexis is a consumer goods analyst and researcher specialising in the realm of neuroeconomics, where she uses advanced analytics to determine the thought processes of consumers and how best to appeal to them. Here, the McKinsey alumnus speaks to LUX about the impact of the pandemic on consumer habits and the future of hard luxury

LUX: How do you define hard luxury?
Portia Antonia Alexis: Hard luxury is simply a term that refers to timeless products such as watches and jewellery, while soft luxury refers to products such as leather accessories, bags, and designer clothing. While this may sound a little basic, an easy way to remember the difference is that hard luxury refers to pieces that are physically harder to break, while soft luxury refers to pieces that are soft to the touch.

LUX: What was the relationship between hard luxury and e-commerce pre-pandemic?
Portia Antonia Alexis: Pre-pandemic, hard luxury goods were very rarely sold online. After all, while major hard luxury retailers such as Tiffany & Co., Longines, and Rolex consistently advertised through online channels, the idea behind these advertisements would be to drive people to their in-person stores rather than try to drive online purchases.

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The reasons behind this can mostly be attributed to the price of hard luxury brands. Generally speaking, a high-quality piece of jewellery or a luxury watch will cost over $1,000, and in an online setting, many people were uncomfortable with spending such a large sum of money. Online shopping was also much less conducive to driving sales, as while an in-person salesperson could use sales tactics to condition the brain into making a purchase, the nature of an online shop made it much harder to do so. As a final note, many people enjoyed the experience of shopping for hard luxury in-person, as they get a psychological ‘high’ of sorts due to the increase in perceived status that they felt when shopping for an expensive item in person; however, when online, this reaction was greatly muted.

LUX: How has the hard luxury sector been affected by COVID-19?
Portia Antonia Alexis: As with many industries, hard luxury sales plummeted during the first few months of the pandemic, but by the third quarter of 2020, there was a large resurgence in sales. For example, in the third quarter of 2020, the luxury conglomerate Richemont had a 5% increase in sales that was largely bolstered by its jewellery assets and during that same time period, Maisons had a 13.3% increase in sales, which was largely thanks to a strong performance by its hard luxury brands Cartier and Van Cleef & Arpels. I expect to see this positive momentum continue in 2022, and I would not be surprised if hard luxury revenues meet 2019 levels this year.

LUX: From a neuroeconomic standpoint, why do you believe this rise in sales occurred?
Portia Antonia Alexis: Given that most hard luxury brands were reliant on in-person traffic to drive sales, the pandemic necessitated a complete revamping of the online experience so that these brands could replicate the same psychological triggers that shoppers felt when they were in-store.

One of the biggest innovations in this field was the advent of personalised online appointments. These appointments involve a salesperson booking a time with a client and then having a video conference where they have their entire collection on offer, and these were great substitutes for in-person appointments for two main reasons. The first was that the salespeople were able to use many of the same sales tactics that they used in store, and from a neuroeconomic standpoint, this generated a more positive response in the brain of the client that then led to a higher conversion rate than a simple online store would have. The second major difference was that the salesperson could physically try on a piece of jewellery, and this was important because it not only allowed the client to analyse the fit of a piece using a real person as a point of reference, but made the client more comfortable with shelling out large sums of cash for an item.

Read more: Prince Robert de Luxembourg on Art & Fine Wine

Another major innovation was the increased emphasis on customer service. On a basic level, this was done by having more people on hand to answer questions and do sales calls and by making the waiting time for answers either online or on the phone much shorter. This helped give clients peace of mind while shopping, alleviating a lot of the unknowns that come with purchasing while only having a picture as a frame of reference. This customer service also extended to details such as warranties and returns. In the past, many hard luxury companies had strict return policies, but in light of the pandemic, many made it so that you could try a piece on and then return it if necessary. This was crucial as it made people much more comfortable with making a large online purchase. However, since it is generally a bit of a hassle to return something, this barrier would cause many clients to mentally accept sub-par items, leading to items that would have been rejected in store still getting sold so long as they looked good online.

In tandem, these two factors made online shopping far more similar to in-person shopping than it was pre-pandemic, and as a result, sales were able to remain relatively high despite the fact that there were very few physical stores that were open.

LUX: Are there any other major factors that you feel were important?
Portia Antonia Alexis: I’d say that the influence of geographic variation cannot be overstated. While business in the United States was lacklustre, China and Japan, which are the second and third largest luxury markets by annual sales respectively, became especially influential after removing their COVID-19 restrictions earlier than most. That’s because there was a marked rise in ‘revenge buying’, which were shopping sprees driven by a feeling of having missed out during the lockdown, and ‘reunion dressing’, which were surges in demand driven by re-uniting with people after large periods of time in lockdown, and in tandem, this led to a massive growth in sales in these countries. In fact, mainland China was the only region on the planet to come out of the COVID-19 pandemic with higher local spending than it had in 2019, as it experienced a massive consumption growth rate of about 45%. When you further consider the increase in per capita wealth being generated in China, I’m confident that in the next few years, China may overtake the United States as the world’s leading hard luxury market.

LUX: What will hard luxury companies have to do to encourage growth post-pandemic?
Portia Antonia Alexis: I think that one of the single most important changes that hard luxury companies will have to undergo is the shifting of their focus from the American market to the Asia-Pacific one, with China being their primary long term target.

Research has shown that relative to American consumers, Chinese consumers tend to have very different responses to advertisements. More specifically, it seems that while American consumers respond well to brand awareness, which is created by, say, commercials at the Super Bowl, Chinese consumers tend to be far more concerned with intrinsic value, which derives from factors such as the quality of the materials used, how the goods are created, and what the brand’s story or ethos represents.

Chinese consumers also seem to respond poorly to discounted merchandise. Now, during the pandemic, many American brands dropped prices or released lower cost lines of products in order to make their goods more affordable to cash-strapped consumers. However, this often backfired in the Asia-Pacific, where consumers perceived this fall in prices to be a drop in intrinsic value, which therefore made the goods less desirable than they were before the prices were decreased!

In any case, I think that if American brands are to fully take advantage of the Chinese markets, they will have to focus more on building a long term story for their brand and less on simply creating a recognisable logo with flashy advertising. However, given that the Chinese and American markets are so large yet so different, the big challenge here will be to straddle the competing consumer mindsets in both regions. In my opinion, hard luxury brands can achieve this by applying different neuroeconomic principles to their marketing campaigns and brand building on a regional basis, and my hope is that in the coming years, more analysts with a neuroeconomic background will enter the consulting field so that this can be achieved!

Portia Antonia Alexis is a neuroeconomic consumer goods analyst and researcher who works with luxury brands such as L’Oreal, Estee Lauder, and Tiffany & Co. @portiaeconomics

The Bouquet Light designed by Tord Boontje for Habitat in 2014

For product designer Tord Boontje, material is all. Whether made from upcycled blankets or crystals, his designs for anything from chandeliers to self-assembly chairs marry function with his signature playfulness. Torri Mundell meets him (virtually) at his new studio in London to talk about his work while normal life has been on hold

Tord Boontje 

Few occasions compel you to tidy your surroundings like the prospect of a Zoom video call with a globally renowned product designer. What would Tord Boontje, the former Head of Design Products at the Royal College of Art and the originator of one of Habitat’s most successful home accessories of all time (the Garland light, first launched in 2002), make of a design civilian’s cluttered kitchen?

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Thankfully, Boontje’s aesthetic is not calibrated towards austere minimalism. In fact, he is renowned for injecting notes of whimsy or romance into contemporary design. On a virtual tour of his bright new London studio, you can spot a few of his artful pendant lights as well as shelves full of intriguing decorative pieces, prototypes and ephemera. He also points out the drawing and photographs tacked on the walls: “It helps me to look at something and slowly think about it over weeks. And I like having materials around that you can pick up.”

Transglass vessels for Artecnica, 1997. Image courtesy of Artecnica. © Jerry Garns Studio 20111

Materials – and sustainable materials in particular – have always been a preoccupation for the Dutch-born designer; his early 1998 Rough and Ready furniture collection combined simple wood with upcycled old blankets and discarded packaging. And though he is an advocate for accessible design, he also collaborates with luxury brands when they offer an opportunity to “use really good materials, make [designs that are] long lasting and manufactured in an ethical way”. Moroso, with whom he has collaborated on a range of seating, is a good example. “There’s an honesty with the materials they use. It’s not cheap, but it’s worth it. I feel uncomfortable about making things look expensive just for the sake of it.”

The Lustrous Aura chandelier for Swarovski, 2017. Image courtesy of Swarovski

Boontje graduated from the Royal College of Art with a master’s degree in 1994 and he established Studio Tord Boontje in London two years later. Since then, two decades of launching new products and collaborating with clients has honed his creative process. He knows, for instance, to treat a new idea tenderly. “It’s good to have lots of opinions, but ideas can only develop with people you trust,” he says. He often talks them over first with his wife, Emma, an artist. And only after sketching and creating models from paper, card or foam, will he work on screen. “My colleague Tommy usually does the 3D modelling. It’s better at that stage to be one step removed; I can be more objective about what’s in front of us.”

The Transglass chandelier, 2015 (top) and the Tangle Globe ceiling light, 2011. Both designed for Artecnica. Images courtesy of Artecnica

He finds himself endlessly inspired by light. “When I walk around in a city or a forest, I always look at the way light reflects on the buildings or filters through leaves on the trees and makes patterns and shadows… Lighting can also make a huge impact on space, not just decoratively but in the light it casts into the room.” This fascination has shaped some of his best-known designs, from the aforementioned Garland, to Icarus, the feathery paper shade he developed with Artecnica, to the crystal chandeliers he reimagined for Swarovski and Sun – Light of Love for Foscarini.

Read more: Superblue’s experiential art centres & innovative business model

For Boontje, lockdown has been a creatively productive time. “A lot of my projects with clients have been on hold, so I’ve had time to reflect and to look into products I can make independently.” Studio Tord Boontje’s latest collection from 2020 is called Do-It-Together, debuting with a pendant light of organic cotton that customers can customise and a handsome self-assembly wooden chair. The chair’s components – the birch plywood seat and back, the solid beech frame, and the bolts and wing nuts – arrive in a package ready to be assembled at home. “We also give suggestions about how you can colour your chair, using skins from beetroots, or how to paint it with natural beeswax or oils,” he adds.

The Radiant table light for Swarovski, 2019. Image courtesy of Swarovski

Offering customers the inspiration to make something from scratch taps into a spirit of resourcefulness that feels very current. “During lockdown, we saw sales of arts and crafts and sewing machines shoot up. We want the pleasure of new things, but we’re changing our relationship with how we consume them.” Will we hold on to things longer if we had a hand in making them? “Absolutely. People who make their own things also learn how to fix them if they break,” he says, before adding, “The more you put into it, the more you get out of it.”

Find out more: tordboontje.com

This article was originally published in the Summer 2021 issue.

The artist in his signature (dis)guise in Hong Kong

Street artist Alec Monopoly’s distinctive creations are a blend of subversive graffiti culture and post-pop colour. And he has now been tasked with rejuvenating the culture at watch brand TAG Heuer. Nathalie Breitschwerdt catches up with the elusive – and anonymous – LA-based graffiti genius.

The manufacture of luxury watch brand TAG Heuer consists of a series of modern buildings on the edge of La Chaux-de-Fonds, in western Switzerland. The town is built on a US-style grid system, seemingly at odds with the rolling forested hills of the Jura that surround it.

Inside, it’s as you would expect a high-end watch factory to be. A sanitized workshop floor contains rows of technicians piecing together different watch components; other rooms contain test laboratories and machines for finishing the timepieces.

Walk from the workshop through some connecting corridors to the corporate offices, however, and you are greeted with an extraordinary sight. It is a glass-walled room with paints, canvases and strikingly colourful artworks, finished and in progress.

There was no artist at work on the day we visited – he was back in his home city of New York – but Alec Monopoly is no ordinary artist in-residence. Not long ago, his art was illegal. A graffiti artist, his trade involved tagging (painting) buildings – other people’s buildings – with his distinctive design. Monopoly developed a cult following on Instagram, and was then discovered by pioneering, maverick watch CEO Jean-Claude Biver. A key player in the revival of the luxury watch industry and now head of the LVMH watch division (which includes TAG Heuer), Biver made Monopoly a brand ambassador, launching the partnership at Art Basel Miami. Explaining why the artist would be given his own studio up in the Swiss mountains, Biver explained that Monopoly would play a key role in updating the brand for the new generation. “The most important thing is that Alec will be our art provocateur,” Biver said. “He will bring his influence inside the company. He will infuse the culture of TAG Heuer. That is the real job.”

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Monopoly’s real identity is still a secret: he hides his face behind a red bandana. But his post-Roy Lichtenstein takes on pop culture characters (and specifically the banker from the Monopoly board game) give him a universal and instantly recognisable appeal – as does his nuanced take on the world’s economic system.

Monopoly’s artworks are now appearing in TAG Heuer stores around the world, and he is more likely to be courted than taken to court by the property world now.

Alec Monopoly’s depiction of TAG Heuer ’s CEO Jean-Claude Biver at Art Basel Miami

LUX: When did you start making street art?
Alec Monopoly: I have been painting on the streets of New York since I was 12 years old. Growing up in the city, I loved skateboarding and the graffiti culture in the city. In 2008, I moved to Los Angeles and that’s when I started integrating my artwork into street art. I was a graffiti artist before and that’s when I became a street artist.

LUX: How has the perception of street art changed since you first started?
Alec Monopoly: It’s changed big time. It’s become more accepted into pop culture recently, whereas before it was much more frowned upon. In the early days especially, graffiti was looked on as pollution and destruction, but now it’s transforming the grey walls of cities into things of beauty. If you look at the Miami Design District and Wynwood, it’s changed a dangerous neighbourhood with abandoned buildings and actually turned it into something beautiful. Take a look at the Wynwood Walls where some of the best artists in the world come to paint; it’s a great example of how street art has been accepted into society.

Read more: Megan Balch & Jaime Barker, Founders of Flagpole on their inspirations and creative process

LUX: Tell us about your fascination with the Monopoly Man.
Alec Monopoly: I started painting the Monopoly Man in 2008 when the economy started to dip. I was playing the game Monopoly, which I love, and was watching the news where I saw Bernie Madoff being arrested. I remember thinking how ironic that situation was, as he sort of looked like the Monopoly Man. There was so much meaning to it. People really connect with the Monopoly Man, so that’s when I started painting him for fun in the street. Originally it was for fun, but it also became more real due to the situation. That’s when I started spreading more intricate characters into my paintings, like Robert De Niro, Twiggy and Jack Nicholson.

An Alec Monopoly creation in Miami’s Design District

LUX: Why do you think your artwork is in such high demand?
Alec Monopoly: People can really connect with my work. I create a lot of work that has a positive message; it’s fun and brings happiness to people. A lot of people have found that my work is inspirational. Having the Monopoly Man with bags of money and seeing him run with them, it’s kind of like a good luck charm, which you see in the offices of CEOs. Now, I draw a lot of inspiration from life: travelling, meeting new people, experiencing new things. I truly live through my artwork and express who I am as a character, as a person, through my paintings. I think it’s important for an artist to express themselves through their work in a way where people can see life through their eyes – my eyes.

LUX: Are there certain places in the world that are “street art hubs”?
Alec Monopoly: I would say there are different cities where street art is more popular. Berlin would be one of the top cities for emerging street artists and for street art in general because it’s more accepted into the culture there. I would say LA is great due to the massive walls throughout the city and then, of course, Miami Wynwood is the Mecca of street art, for now.

Alec Monopoly tags for TAG at a pop-up store in California

LUX: You’re a brand ambassador for TAG Heuer. How did that come about?
Alec Monopoly: It came about through an organic relationship with Mr Biver. We met in the south of France in my studio and created a relationship. I was really taken aback by him – he’s a genius. He’s like the Steve Jobs of the watch industry. Hearing him talk and his passion, we really connected as I have a great passion for watches myself. My dream has always been to create a watch with my artwork in the dial. We really saw eye to eye with the collaboration and it’s been an amazing journey for both of us. All the watches sold out immediately!

LUX: Is it strange for a street artist to be associated with a luxury brand or do you see it as a step in the right direction?
Alec Monopoly: I definitely think it’s a step in a positive direction. I’m very picky who I do brand collaborations with, but I think TAG is the perfect fit. It’s the perfect vehicle to pursue one of my dreams, which was to put my art inside a watch. I was very happy to do it.

Read more: Luxury in the treetops at Chewton Glen

LUX: Anonymity and graffiti seem to go hand-in-hand for street artists such as Banksy and yourself. Why is that important to you?
Alec Monopoly: For me, it represents the freedom to keep painting in the streets where I would like to paint. I paint in some places where it’s kind of a grey area with regards to the law, so it’s important to remain anonymous. It’s kind of fun too; I can take my hat, my mask and my jewellery off and no one really knows who I am – it’s kind of nice to have that double life. It’s very interesting that when I cover my face people recognise me and when I don’t, people have no idea who I am. It’s the weirdest thing!

LUX: How do you define art and its purpose?
Alec Monopoly: I see art as very important for culture. It’s a way of seeing what’s going on in that part of history and what’s going on in the world. For me, it’s a form of therapy and expression, but it also brings happiness to other people’s lives. When I’m painting one of these graffiti walls, I’m transforming that neighbourhood through bright colours. People driving by, kids growing up there – I try to bring them as much happiness as possible. I’ve met kids who started painting their own versions of the wall and creating their own art, which is really inspirational to me.

LUX: What do you do when not making art?
Alec Monopoly: Honestly, I’m always creating art. Yesterday I was at the beach and started making these drawings in the sand – I can’t even relax when I’m at the beach! I love art, it’s who I am.

View Alec Monopoly’s portfolio of work at alecmonopoly.com and Tag Heuer’s collections at tagheuer.com

LVMH’s Delphine Arnault with Karl Lagerfeld at the LVMH Prize 2018 cocktail reception ©François GOIZE

The LVMH prize is the most prestigious and desirable award for any emerging designer. Lauren Cochrane reports from Paris on the mix of established and new and the ideas bubbling around a competition aimed at discovering the next John Galliano or Alexander McQueen

This spring, as Paris Fashion Week swirled around them, some of the industry’s highest profile names – JW Anderson, Nicolas Ghesquière, Maria Grazia Chiuri, Bella Hadid, Suzy Menkes and Karl Lagerfeld included – found a moment in their busy diaries. The reason? The shortlisting of the LVMH Prize. Over two days, with LVMH’s Delphine Arnault, fashion’s brightest and best whittled a shortlist of 20 semi-finalists down to just nine. After an additional round of judging, the final winner is announced in June.

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In the four short years since its launch, the LVMH Prize has become the most prestigious in fashion. Each winner is given a grant of 300,000 euros and access to mentoring from LVMH experts to develop their business. Winners so far have included minimalist Thomas Tait and Grace Wales Bonner, the visionary of London’s menswear scene. Simon Porte Jacquemus, a designer mooted for the top job at Lanvin, was a special prize winner in 2015. Marine Serre, 2017’s winner, has already caused a stir. After her debut show in March, the New York Times said she had come “far, fast”, while Vogue called her collection “terrific”.

Designer Snow Xue Gao with model ©François GOIZE

Of course, fashion insiders will take note of anything that comes with the LVMH name attached. With Bernard Arnault at the head, it is the biggest luxury group in the world, taking in a record 42.6 billion euros in 2017 across brands including Louis Vuitton, Christian Dior and Givenchy. The impact of LVMH’s endorsement and mentoring (not to mention that cash injection) on a young designer’s career cannot be underestimated. Serre, speaking to Vogue, said what the win meant: “It was possible for us to really take things to a whole new level”, allowing her to hire new staff and expand into a new studio space. Marta Marques and Paulo Almeida echo this. “We suddenly had the exposure, the support and the funding to put into existence a lot of the things we always wanted to do, and grow the company,” they said in an email. “This is what the foundations of our label is built on and what the company is today.” Winning the LVMH Prize can turn a fledgling operation into a bona fide brand.

Read more: We ask artist Mouna Rebeiz about trash and beauty

Jean-Paul Claverie, advisor to Bernard Arnault, was instrumental in setting up the Prize in 2014 and he sits on the jury. The Director of Corporate Sponsorship at LVMH, he describes the prize as a way for “young designers to value creativity first”. LVMH are committed to that pledge. Designers are only eligible if they have shown two collections or fewer, and there is an in-house team that works specifically on the prize, selecting the final 20 designers who go before the jury. Relationships continue beyond the competition process, too. “We stay in touch with many of the winners and we are ready to help if they have a problem,” says Claverie. “The door is always open.”

Menswear designer Charles Jeffrey ©François GOIZE

Each year the number of applications has grown, with 1,300 in 2018, including designers from South Korea, China and countries in Africa. Among the 20 semi-finalists there was A Cold Wall, the London-based label by Samuel Ross, New York’s Eckhaus Latta, who put a pregnant woman on their catwalk in September, Charles Jeffrey’s artistic take on menswear and five gender-neutral labels including Faustine Steinmetz, GMBH and The Sirius. Of these, Ross, Jeffrey and Eckhaus Latta made it into the final nine, alongside Rushemy Botter and Lisi Herrebrugh of Botter, Masayuki Ino of Doublet, Lea Dickely and Hung La of Kwaidan Editions, Rok Hwang of Rokh, Matthew Adams Dolan, and Ludovic de Saint Sernin.

Model Emily Ratajkowski at the LVMH Prize 2018 cocktail reception ©Virgile_Guinard

Delphine Arnault (right)
with Carine Roitfeld ©François GOIZE

Established figures in fashion always enjoy meeting the next generation. Jury member Sidney Toledano, chairman and CEO of the Fashion Group at LVMH, says that he was excited after listening to the designers’ presentations. “I was so amazed by the energy,” he says. “I felt it myself, and it was after a long day of shows. I saw how excited Karl [Lagerfeld] was. His antenna tells him they’re talented. I think he had fun.”

Of course, the Prize is not without its advantages for LVMH. It means they effectively have first dibs on the next generation of talent. Toledano believes this has been at the heart of the LVMH culture since Arnault became the majority share holder in 1989. “It’s something he repeats daily – he wants creativity and quality, with an evolution.”

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It’s clear the winner is chosen carefully, and with much debate. “At the start of the process, we think that one applicant will be the winner and then, later, it turns out to be someone else entirely,” says Claverie. “I love discussion,” adds Toledano. “I hope we have two or three potential winners and we don’t know what to do.”

Claverie says that business acumen is a plus, along with determination – he praises Jacquemus for applying again after his first unsuccessful attempt. Ultimately, it is vision that characterises a winner: “The creativity is first… they are expressing something new.” Toledano says this is a quest for the next names to know. “It is not a philanthropic project,” he explains. “All the brands we have are based on the success of a designer. It was Monsieur Dior as a designer who created the magic of the Dior name.” Toledano compares designers to pilots. “An engine is needed to sustain a big name,” he says. “OK, from time to time, if you stop the engine, the plane is so high you can continue flying, but if you are a top brand you need [someone] in the cockpit, providing the momentum.” The LVMH Prize? The most stylish take on aviation college there is. Time to watch the latest graduates take flight.

To meet this year’s finalists, and for further announcements visit lvmhprize.com

This article appears in the Summer 2018 issue of LUX, on sale now worldwide.