Mytheresa CEO, Michael Kliger, discusses driving a resilient business infrastructure in the luxury e-commerce industry.
Mytheresa is growing YOY when some other e-commerce retailers have found the market more challenging. What has been the secret to success and motivates you daily?
Mytheresa’s continued success in the luxury e- commerce landscape can be mainly attributed to our customer-centric approach. We have a clear focus on the wardrobe-building high spenders in luxury. Our ultimate goal is therefore to offer the best service for this high-end clientele. We do not just sell luxury products online, but build a community for luxury enthusiasts and we are trying to create desirability with digital and physical experiences. Understanding and responding to customer’s needs while staying relevant is crucial for us. The often very positive and emotional feedback we get from customers is truly motivating.
“You need to understand the change of consumer behaviour in order to respond to their needs”
What have been the greatest challenges to date and how do you approach challenges as a company and individual – is the approach the same?
The challenge is to always stay relevant. You need to understand the change of consumer behaviour in order to respond to their needs. We’re constantly speaking to our top clients, which is why we saw also an opportunity to launch our home and lifestyle category in 2023, as well as now developing the fine jewellery category more and more. At the same time, we launched our re-sale service in collaboration with Vestiaire Collective, simply because there was a need by our clients. For me personally it is important to never lose sight of the actual objectives and vision for our company, while at the same time being very agile and open to how we get there.
Success can be measured in sales but also retention of clients. How do you build upon and deepen these relationships in an ever-competitive retail landscape and do you see a different approach being needed globally in varying markets?
We focus on delivering more than just products, curating experiences that speak to the lifestyle and aspirations of our clientele. From organising exclusive “money-can’t-buy” experiences with luxury brands – like the recent two-day intimate gathering with Tod’s in Milan, to VIC tailored experiences and style suites worldwide. On the one hand, there are differences in preferences and cultural customs by regions, but on the other hand, we are serving fundamental human needs like a sense of beauty and belonging that all humans share alike.
What do you think has been pivotal to the continued success of Mytheresa – what are the key differentiators that have refined and defined the brand in the way it approaches luxury e-commerce?
In addition to our focus on customer experience, the unique curation of products from just around 200 of the best luxury brands for womenswear and 120 for menswear is a key differentiator. We believe that inspiration comes only from a tight curation and not just aggregation of products. Furthermore, we invest a lot to also offer exclusive collections from top brands such as Loro Piana, Moncler, Brunello Cucinelli and Valentino, among others.
What are some of the key pillars of Mytheresa as a brand, and how do you translate that vision into something consumers can continuously experience?
As stated before, it is inspiration through curation, exceptional personal service and community-building. This vision translates into a tightly curated offer with often exclusive collections and products. A team of personal shoppers that are available to support and help clients in any way they wish. “Money-can’t-buy” experiences that connect clients with designers in intimate settings, along with access to places and events not generally open to the public. All of this creates a true sense of belonging and appreciation hopefully. Our focus is truly the top clients, who account for 3.7 per cent of our customer base and make around 39.2 per cent of our total sales.
“…it is also very important to understand the growing impatience of clients and to be extremely respectful of their time. You should not waste their time with cumbersome processes or uninspiring content”
While the luxury industry has remained the same in many ways, the language around it has evolved as the consumer mindset changes. How do you tackle these narratives as a leader in this space?
In today’s luxury landscape we see a fundamental shift in how consumers perceive luxury, they are looking for meaningful experiences rather than just transactions. We also recognise the growing importance on sustainability and are committed to partnering with brands that share these values. Finally, it is also very important to understand the growing impatience of clients and to be extremely respectful of their time. You should not waste their time with cumbersome processes or uninspiring content.
What’s been key for the brand in building an authentic community around these VIC events and brand partnerships you’ve worked on?
The authenticity of our community stems from the close bonds we cultivate with our top clients. Our VIC events, whether an exclusive dinner or a personalised shopping experience, offer our clients the opportunity to engage with designers on a personal level. For instance, introducing clients directly to Brunello Cucinelli during an intimate gathering builds a sense of exclusivity that resonates deeply with them. But the community aspects are also driven by the fact that our clients meet a very selected and distinctive group of other clients. This is also a regular feedback we receive. Our clients love the connections they establish with other successful and fashion-minded people around the world.
Mytheresa has become a popular destination for both luxury and emerging brands. Which brands continue to drive sales and how do you support new brands beyond marketing?
We are clearly in a moment where there is an appreciation for everything iconic, therefore brands such as Dolce&Gabbana, Valentino and Alaïa are consistently performing very well. At the same time quiet luxury brands like The Row, Loro Piana or Brunello Cucinelli are amongst our most successful brands at the moment. By including also emerging brands in our curated offerings, we provide them with invaluable visibility, and we partner with them to support their growth.
Mytheresa’s fine jewellery category performs exceptionally well in the region. Do you see any cultural differences in what clients want from jewellery, or how they approach buying pieces for themselves or a loved one?
Within the fine jewellery category, the Middle East is one of the strongest growth markets after South Korea and has experienced incredible growth compared to last year. We have seen a general demand for mixed metal pieces, reflecting a growing trend among clients who enjoy layering their jewellery. While overall preferences remain very personal, some regions prefer pieces from local brands like Yeprem and Kamyen, while others lean towards minimalist, statement designs from designers such as Suzanne Kalan, or iconic pieces from Bvlgari, which we recently added to our assortment.
What would you say are some of the things that you’ve learned about yourself as it relates to leadership? And how have they each informed your career?
Leadership does not exist without followership. I believe that leading means to lead the way and set the direction. But you need to create excitement, passion and enthusiasm for that direction, otherwise you fail as a leader.
How do you time block your day to be most effective?
For me, getting up early in the morning is crucial to have an effective day. It provides me with the time to structure and prepare the day for myself. Once the day starts, you are often more reactive to events than really driving the agenda.
How important is it to have ‘thinking time’ in any role and what do you think this brings of value?
I believe that to be creative, you have to seek inspiration. See things, talk to people, look at reports. You need to constantly digest as much as information as possible, often without even knowing that it might be good for you. But then, at a certain point, different pieces come together. This often happens intuitively and not by sitting down and declaring “creative time”.
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