On Thursday evening, “The Fabulous World of Dior” debuts at Harrods, marking the retailer’s biggest brand takeover to date and setting the LVMH brand up for its most significant in-store partnership ahead of the holiday season.
The takeover includes an in-store Dior cafe; an immersive exhibition recreating Dior locations in hand-piped gingerbread villages; two new pop-up shops; and window displays dedicated to men’s, women’s, fragrance, baby and home, featuring iconic pieces, from the Bar Jacket to the Book Tote. It took 19 months of planning and over six months of construction to arrange, and is the latest tie-up for Harrods and Dior, whose relationship dates back to 1957 when the brand opened its first concession.
“During Christmas, people want to spend a good moment, to feel some emotion,” says Dior CEO Pietro Beccari. “Events like this help Dior to be more visible and ultimately to be more successful.”
Physical retail is expected to be the top destination for holiday shopping this year, for the first time since the pandemic, with 63 per cent of consumers planning to do at least some of their shopping in store, according to a US survey from real estate firm JLL. In the same survey, affluent shoppers (those with salaries from $100,000-$200,000) cited experience and holiday ambiance as drivers for shopping in bricks-and-mortar stores. However, holiday retail sales in the US are expected to increase by 4-6 per cent for 2022, down from 15.1 per cent last year, according to Deloitte, with a similar outlook for the UK, due to inflation and the rising cost of living. This means brands globally are competing for holiday spend and while high-budget experiential moments might translate to clicks and likes, they need to also drive sales to offset headwinds and be considered a success.
While the UK’s store vacancy rate rises across mass market retail, luxury stores and multi-brands are more resilient, says Tim Vallance, head of investor services and retail chairman at JLL. “The shopping journey and theatre of physical multi-brand retail during the holidays can be essential,” he adds. “Today’s consumer is thoroughly promiscuous, so you’ve got to enliven the experience within your store and provide exceptional service to compete with online.”
“The Fabulous World of Dior” wasn’t planned as a strategic response to the macroeconomic climate, Beccari says, but he is conscious of the moment. “We want to give dreams back to people in difficult times as well as good times. The juncture we are at now is rather a difficult one, because of the war, because of the recession, because of what’s going on in England. But, our job isn’t solving these issues, it’s to give pleasure to people and allow them to dream.” This positive brand association and visibility can win Dior market share, he believes. “Of course, even if the market will be down, we still want to take market share from our competitors.”
“Experience has always been the differentiator in luxury retail, whether it be through authority in product, your expertise in craft, or providing pure theatre,” says Harrods CEO Michael Ward. “While the macro-economic climate is undoubtedly troubling, we know that the demand for luxury remains strong — whether it be a special gift or an escapist experience. We want to celebrate the festive season in a way that only Harrods can, through providing pure escapism.”
Creating visibility and worldwide appeal
Back in 2013, Dior did a takeover of the Harrods exterior, then its biggest retail partnership. At the time, then-chief executive Sidney Toledano told The New York Times that retail partnerships were necessary to “compete with the chains and the high street”. The market has changed dramatically since then, Beccari agrees. Today’s focus is celebrating the heritage of Dior and its long standing relationship with Harrods, creating a worldwide ripple effect of brand awareness and fidelity.
“Harrods is one of the most iconic locations that we have, not only in England, but in retail worldwide. I believe this exhibition will have a worldwide impact, which is always what we aim for.” Dior will measure the success of the takeover based visibility and image, focusing on social media impression and press reaction first and foremost, Beccari says, “I believe that people will speak loudly about this and this is what we care most about, but of course, there will be sales, I hope, to compensate the investment we made.”
“The holiday season at Harrods is always so exciting and sensory; it provides the perfect backdrop for brands to indulge in fantastical and imaginative ideas,” says Ward. “And Dior have really taken this to a new level — it is without doubt the most exquisite store takeover we have ever done, with every aspect designed to stimulate the senses.”
The cafe space, spread over a ground floor and mezzanine and completely constructed from (resin replica) gingerbread and outfitted with a spun-sugar chandelier is another key moment for social reach. Dior cookies and a menu inspired by Mr Dior’s cookbook are also social-first moments.
The exhibition, accessed via an escalator from Dior’s new ground floor retail space, tells the origin story of Dior in an immersive audiovisual experience, featuring miniature versions of Monsieur Dior’s Granville home, La Colle Noire (the birthplace of Dior perfumes), and the brand’s 30 Montaigne atelier, constructed from what looks like gingerbread and icing. Beccari is fascinated by the synergies between exhibitions and retail. Dior has a permanent museum, La Galerie Dior, within its Avenue Montaigne flagship store, which tells the story of the iconic atelier.
“I believe the retail and exhibitions go very well together,” Beccari says. “I recently remarked that when our museum is closed on Tuesdays, we have less sales and less traffic in the store, which is not what we expected. We thought that the public for the museum and the one for the store would be different.” Beccari will repeat this type of pop-up in the future to harness the “big synergy” between a brand exhibition and what you sell on the on floor.
Investing in physical retail to create exclusive moments
Dior is investing in physical retail in order to continue to inspire its customers with the Dior dream, Beccari says. It recently renovated three of its permanent retail spaces within Harrods, in shoes, mens and on the ground floor for accessories, bringing in design elements such as the colorama wall, typically reserved for its own-brand retail locations.
Dior will add two pop-up stores for the holidays. The first will include iconic products like the Lady Dior bag, which moves up and down a conveyor belt. The second is dedicated to gift shopping, featuring a series of printed T-shirts, Dior homeware and knitted sweaters. In line with the takeover the brand will also release Harrods-exclusive products, from Dior pumps and Book Totes in new colourways to a new capsule from Dior menswear designer Kim Jones, and the Miss Dior chairs, imagined by artists Philippe Starck for Salone del Mobile, will be shown in preview and available for pre-order.
Beccari and Dior brand ambassador, tennis star Emma Raducanu, will officially open the Dior x Harrods experience in a ribbon cutting ceremony on Thursday evening, followed by what promises to be a star-studded launch with cocktails and dinner. “Everything we do in terms of increasing visibility, because it’s the engine of the sales of tomorrow,” Beccari said. “We are nurturing our visibility by doing these types of events.”