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The Entrepreneurs
Who is the new luxury consumer? Richard Mille’s Peter Harrison on adaptability and knowing your customer
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Hello and welcome to the Entrepreneurs on Monocle Radio. The show all about inspiring people, innovative companies and fresh ideas in global business. Today's program is all about knowing your customer, whether you're operating at the cutting edge of timekeeping technology or at the heart of a hospitality empire. First up, we'll meet the CEO of a Swiss watchmaker to find out about the changing needs of luxury consumers.
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In the last 25 years, wealth has changed. I think what's happening in the last two or three years is more about how perhaps big groups have struggled to reach a changing consumer.
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And later we'll head north to meet the co owner of the largest hospitality group in the Nordics.
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The best hotels in the future are going to be the ones who take an active part in shaping the customer demands. Not reactively just sitting waiting for it.
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This is the Entrepreneurs with me. Tom Edwards, You're listening to the Entrepreneurs. Peter Harrison is the CEO of Richard Mille Europe, Middle east and Africa. The Swiss luxury watchmaker is dedicated to creating pieces that are excellent, expertly engineered, lightweight, shaped by a fascination for technology and a passion for racing and made to be worn every day. Founded in 2001, the company's growth has been truly remarkable, especially when you consider those founding principles endure with the painstaking production of limited quantities of truly exceptional timepieces. Also at the heart of Richard Mille, a focus on direct relationships with clients and always a product first attitude. Our Laura Kramer caught up with Peter at one of the world's most exclusive winter gatherings, the International Concourse of Elegance Samurais, sponsored by Richard Mille. Laura began by asking Peter what made the brand so radical from its very beginnings.
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I think the way we set about making watches was different to anything else that had been before. And the type of watches we were making were made to be worn rather than that type of watch before was more something that was either historically important or the top of the tree in terms of what a brand made. And you put it on once a year and you showed your children, you put it back in the safe again. And ours were more made to be worn every day. They were very distinctive, the way they looked, they were very light in the most part, and that was a new thing.
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And how did you originally get involved at the start of the company then?
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So Richard and I have been friends 35 years. We both worked for separate companies. I worked in London for a small PLC that I think we distributed around 15 luxury brands. And Richard worked for a company in Paris called Mauboussin and we collaborated on a few things didn't work out. And then we stayed friends and we'd see each other two or three times a year. I went off to do my own thing and then he went off to start the company. Maybe after one year we had a. There was a funny. I was doing some things. We were doing some things together, and he wanted to make it quite correctly, more formal. So we started a JV company and set it up together.
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And when you look at, you know, I keep going back to the beginning, but it's so interesting because for Swiss watchmaking, it never wanted to conform. There was this attitude of rebellion. Like you said, it was so different coming in. Do you think that attitude is still prevalent today? And how hard was it to keep that going throughout? Maybe now those values have changed.
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No, I don't think so. I mean, we work with really good people. Obviously, as a company, we're significantly larger than we were before. You know, in the beginning, we were making 10 or 15 watches a year. Now we're making 6,000 watches a year. You know, the way the company's grown, we've managed to keep the core DNA of how we started, which I would sum up in quite easy ways that, you know, we have an idea to make a watch. We go out, we figure out how we're going to do it. Sometimes it can take two years, sometimes it can take seven or eight years. And then finally the watch comes and we look at everything and the watch is going to sell for X amount. That's how we've operated from the beginning. We haven't ever set out and said, we need to make a watch that sells for Y, because we've got the one that sells for X and we've got the one that sells for Z. And we need something. We've never set out to do that. We have an idea what we want to make, how we want to make it. We go look at how we're going to manufacture the movement, what sort of cases we're going to use, what the ideal scenario is going to be, how it's going to be worn. That applies for men's and women's watches. And then at the end, that's the product. And it's. I'd say, in the luxury industry, that's pretty unique because most people set off and say, right, we need to make something for X, because we've got all these other areas done. And so all our work is in the research and development, the marketing, perhaps, and the product. The price of the product is kind of at the end.
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Well, you brought up growth there. And I did want to touch on expansion. How do you decide that a market is ready for you? What are those factors that you look for? And is there an area that you're really excited about going, going into that maybe you're not there yet?
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Well, yeah, I mean, the company changed a lot. I would say around seven years ago when we decided to only sell through our own retail outlets. That was great because that was a real game changer. We already had, I think maybe around 20 stores. Now we have around 45, 46 stores. And the fact that you as a client could come into a Richard Mille store and see everything, rather than perhaps going to a retailer who would pick, you know, a certain type of watches that he felt would represent what his customers would want from Richard Mille. And that was a big change because, for example, our ladies watches were important. And we had this one particular watch called the Diamond Cruncher. And it was a great watch, great women's watch. But a lot of retailers thought, actually, I don't want to really sell that. I can't sell that. I've got this brand which is perfect for women. I've got that brand. I don't really want the Richard Mille women's collection. So it was kind of difficult in the beginning to get a comprehensive collection into a store. So having our own stores, that changed everything and clients would come along. It made a big difference the way we were able to grow the brand. And then going on to your other bit of your question that then restricts, you know, having a store, you've got to build the store, you've got to make sure you're in the right place. You've got to find the right location. And that all takes time. And the sales from that store, you know, the demand from that store is so high to then go out and say, oh, well, let's go open another store over there or over here where we know there's demand. It's very difficult when you've got a wait list as long as you're on in your existing store. So that's been quite restrictive. However, as we've been able to grow the brand, we're now in a position where we can open new stores. And the one I'm very excited about this year is in Madrid. I mean, our best ambassador, our most well known ambassador is Rafa Nadal. And to have a store in his, not necessarily his hometown, but his home country is a really big thing for us. We always sold in Spain. When we started the company, we had I think three or four retailers on the Spanish mainland and I saw the old king of Spain in Abu Dhabi a month ago and he's still wearing his Richard Mille. And I mean, that's an important market for us and we haven't been able to really do it justice. And the fact that we're going there to open a store, that's really exciting for me.
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One of the things that we're really, really focused on, and I know it's a big bugbear for Tyler especially, is discovery and how you still bring a sense of discovery to a customer who has everything. They're exposed to wonderful experiences all the time. What responsibility do you have and how do you kind of bring that discovery to your clients?
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We try and do quite a bit in the stores. The interaction with the watchmakers is still very important. We do some really nice collaborations with Ferrari, which, you know, you can find elements of the DNA of our brand in them and their brand in us. So that's really quite interesting. The connection we have with our customers has always been really important. It's my background and it's where I come from. I like to know the customer, I like to understand what brings them to us. Why do they want a Richard Mille, what do they think? If it's their first purchase, why is it their first purchase and why have they come to us and what's the appeal? And I try and put that across to all the staff in the stores and say, you know, try and understand, try and see what they like, what's the appeal, how they're going to wear their watch, what they're going to do with it over the years has been really important to us and I think we've kept it. And by doing that you have a strong understanding of the customer, what they want, what they'd like to see from us. And it's working particularly well in the women's collection.
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You touched on two points I wanted to ask you about, actually, which is, first of all, who is your customer now? Who is buying the latest models? And also big conversations around talent. How do you know when somebody gets it? You're so reliant on these forward facing people dealing with your customers. What does that take?
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I think the important thing, excuse the pun, is time. As long as you give people time and you sit down and have a coffee with them and see what they're going to, how they're going to wear their watch, where they're going to wear it, what they're going to do, that's always important. I'm really proud that I think I've got. Excuse the pun in St. Moritz, but I've got a glacial staff turnover. They don't really leave the brand, which we're really proud about. I think I can count on one hand the people that have left us over the last 25 years. I think that's because they have. They're given time, they're given good coaching, they're given good training, and they're able to have form nice relationships with their customers. You know, when we do an event like this in St. Moritz where we bring people to the ice, they're always accompanied by the person that they work with in the store. So they get to know a little bit more about them. I mean, their children's names, their children's birthdays, where they're going on vacation, how long they've been married. It's a really nice personal relationship. It's not a traditional kind of retail cash and wrap. And I think in this day and age, some of our customers certainly know before they come into the store what they want, but some don't. Some have seen a Richard Mille on a friend want to know more about the brand, what might suit them, what might, you know, the size of the watch, the weight of the watch, what they're going to do with it. So to have that relationship is great.
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I want to touch on luxury because, of course, big conversations that have been had about the industry, and I wondered, do you think the energy is back? Are we confident again? What are we missing about the luxury conversation that we've been having?
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I've been quite vocal about this in the past. Luxury is something you feel, something you touch, the way you're dealt with in a restaurant, the relationship you have with the end client. And I think some of the big groups don't get that. I think that they have a kind of recipe. That's what they're going to do. They're going to open a store, do their marketing, fill it with staff, and the people come in and, you know, and there's a real lack of empathy in that kind of relationship. And I think I can really only speak from my side of luxury in horology. I think so many brands have great historical backgrounds, you know, been making watches for more than 100 years. We don't have that. And I think in some ways that's restrictive. Because you come with handcuffs. Well, we can't make that because our early watches, you know, 50, 60, 70 years ago, look like this. We come with this, then people aren't going to accept it. So we're going to have to stay more in our field. And I think that's very restrictive for talent, for making people excited about stuff. And I think as well, in the last 25 years, I've digressed from what you're talking about, but I'll come back. In the last 25 years, wealth has changed. Who has wealth, how they're spending it, where they're going, what they're doing. And that has been difficult for some luxury brands to get on the back of. And we actually, it was perfect for us because we're 25 years old, we came from nowhere. We're not making watches to be necessarily handed down or whatever. We're making watches for the people that maybe only made their wealth last week. And those people are relatively new.
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And it's going to keep happening too. We know the greater transfer is happening.
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It'S going to happen more and more. You know, when I started in this industry, most of the people buying those kind of watches were from inherited wealth and they would kind of maybe told by their parents, well, when you're 21, we're going to buy this watch and you're going to have it the rest of your life and you'll remember because blah, blah, blah, blah, blah. But actually it's not that. It's not like that, you know, and life has changed and everyone has changed. And I think some areas of luxury, not talking about the last two years, in the last 25 years, they've struggled with that, but we've ridden that wave and that's great for us. What's happening in the last two or three years is more about how perhaps big groups have struggled to reach a changing consumer.
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Happy 25th birthday then. What are you most excited about for the year ahead?
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I think my store in Spain will be really exciting. We're going to open another one in Zurich, which will also be exciting. That's our second store in Switzerland. We've got some great launches of some new models. I feel, you know, I get up in the morning still raring to go and loving it like it was 25 years ago. And I'm very lucky for that.
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That was Peter Harrison, the CEO of Richard Mille. In Europe, Middle east and Africa. You can find out more about the brand by heading to richardmill.com Funny how many people get these things wrong. I go into a lot of jazz clubs and I go, what made you build it like this? Everyone's got an opin about design these days. Join us on a journey to cut through the noise as we sit down with some of the design greats.
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It's possible to really improve how we live and how we work through design.
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We also have you covered on everything from architecture to product design to fonts and fashion too.
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She has her own signature and creates beautiful and also comfortable clothes that women can really spend their days in.
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Make sure you tune in Every Tuesday at 12:20 o' clock London time for Monocle's weekly design show Monocle on Design or find it wherever you get your podcasts.
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Join me Natalie Theodosi, Monocle's Fashion Director, and take a front row seat to the world of style and design with Monocol on Fashion. Expect sharp insights. It really is a way to tell.
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People what you do.
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I'm in the fashion industry but beyond.
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That there really are no rules.
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Global perspectives In Europe, where we would.
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Probably be considered a little more sleepy.
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Over in Asia, it's really dynamic and strong opinions.
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In times where people think twice before they spend, nice is not enough.
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Tune in on Monocle Radio or listen wherever you get your podcasts.
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You're listening to the entrepreneurs. Emilia Stordalen is a co owner of Strawberry Group, the largest privately owned hospitality company in the Nordics, a business her family founded. Today the group runs more than 250 hotels across Norway, Sweden, Denmark, Finland, the Faroes and the Baltics and is also involved in restaurants, cruises and package travel. With a background in consulting, a bachelor's from Cornell University School of Hospitality and a master's in strategy from Imperial College, Emilia brings both hands on experience and a global business perspective. Deeply involved in politics and passionate about promoting the Nordics to the world, she's also focused on the next generation of hospitality leaders. Here's our Laura Kramer again, who spoke to Emila about the trends she's seeing amongst Gen Z customers.
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It's such a broad subject so and I think it's a little too early to see what they care about, but what you see from the things that are published, the studies about them, is that they are the first generation that actually wants more from the business they what they choose to consume from or work for. They want them to stand for something bigger, take responsibility outside their organization. We did a huge rebranding a couple of years ago going from Nordic Choice hotels to Strawberry, where we actually had the opportunity to look into the drivers of why people choose a certain hotel. And it was interesting because from the older generation the first drivers were like okay, you choose a hotel based on budget or the location or if they have a conference Room very like pragmatic stuff. And for instance, if they care about climate green sustainability, like equality issues, that was very far down on the drivers of why consumers choose a hotel. But that changed if you filtered and saw that the younger the person who replied to this study, that came higher and higher and that reflects the general trend. I think Gen cs, they want to work for a company that care about something. It doesn't have to be Patagonia, but you have to choose something you care about and you have to be vocal about it. I think that's going to really separate the companies that do well in the future with this generation and the ones who don't.
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You mentioned a few points there. Obviously your big expansion you're getting into. How is Strawberry positioning itself? What's exciting and new at the company, positioning wise?
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Like our company, like you said, we are a big player in the Scandinavian. We are the biggest hospitality player in the Scandinavian market. So we obviously have 250 hotels ranging from business to luxury travel. So our positioning and we chose a multi branding strategy to meet the customers and their changing demands because we believe this is the right way to do it. Sometimes you can be in need of a budget hotel, sometimes you need a luxury travel like you're just you as a person, like your needs changes. So we want to be able to have that product portfolio that meets this, you know, so just in our nature, like our size and the range we offer, I think that's like a little bit reflecting in our positioning. But the Scandinavian tourism industry is like booming right now. It's, we're going to see like a 40%, 45% growth until, until 2030. But at the same time like one out of two beds in Norway are empty on a yearly basis. So I think the leading hotels in 2026 are going to be the one hotels that like are a part of changing the business narrative. Like who actively takes a stand in like okay, how can we help change a little bit customer preferences and I mean like how can we influence travelers to not go to Norway in January to see the northern lights when everyone is there or Lofoten in December when it's peak season. And I think it's for us like the best hotel companies are going to be the one who works closely with politic with the travel destination companies to actually help change the narrative. How can we make it attractive for someone to visit Norway on a conference in March? The best hotels in the future are going to be the ones who take an active part in shaping the customer demands, not reactively just sitting, waiting for it.
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I wanted to chat a little bit about the expansion you had, the acquisition of the Sweden National Arena. And I just wondered, where do you look and when you look, what are you looking for? Where do you see the next opportunities for. For creating these great experiences?
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We are very lucky in Norway because we are like kind of a small ecosystem, so we can test out different partnerships in a whole different way than you can stay in the US because it's just a huge market. But so acquiring Sweden's national arena was actually a small piece in a bigger picture because we want, like I said, to like, most people only visit hotels one or two times a year. So we want to find out, like, how can we be more relevant for people in their everyday lives? And I think for us, we want to try. We are creating not a new loyalty club, but a new loyalty currency where we link up with Norway's biggest airline industry company, which is Norwegian. And we put into this, and now also write down retail, which is a huge retail group to do so people can earn money, like doing like shopping, groceries or flying to Stockholm arena, like a Strawberry arena, to see Taylor Swift and Spring. You, like earn the money or coins that we. The currency that we have created to spend on like a hotel. So I think that is a really exciting bet that we have taken and it's hard, it's not complicated, but I think that's the future to try to create like a universe around our hotels.
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From an outside point of view, it sounds like you have so much on. You're balancing a lot from everything that Strawberry has going on. And I guess how do you balance with the heritage is with looking forward, with doing new things. What does that day look like for you?
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I mean, I feel like I'm pretty lucky. I feel I grew up in a family. My dad started a company and I'm very lucky to learn from him and see he prioritizes his stuff. My brother's working a different side of it. I'm lucky to work on the hospitality side. And we have a wonderful team around us who do most of this stuff. So I think for me, I'm just very lucky to be able to learn from great opportunities. And I try to like balance my day as much as possible. And I feel like this is also a lifestyle, you know, that like when you work with this, you. It's weekends, afternoons, it all blends together. But when you do something you really love, you feel very lucky.
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Looking outside of Strawberry because obviously level of excellence unlike any other in the Nordics what other maybe hotels outside of the Nordic region, Scandinavia. Do you kind of, when you travel is there best examples that you see in other, in other locations that you think oh I. This is really inspiring. I think we could integrate some of these ideas.
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No, I think when you work in this industry you're so. I call it damaged because I can't go to another. I can't go to a property. I feel like it's the same for you. Like you can't go anywhere and be like oh wow, that lamp is really cool. Wow. They put the laundry room there. That's very smart. Like you see like ah, that means the business flows much better. So I think like when people ask me this question, I feel like you're so, so because you're so turned on. So you see everything like every little thing. So I think you take little things from all over the world and like Scandinavia, we're good at stuff and we are so far behind on other stuff. Like the US in terms of customer centric ideas. England I think is superior in service. Like the US too. Like Four Season Group, Amman. Like if you look at the luxury properties, insane. Look at their training programs, how they recruit, how they take care of their employees. You have Accor, I think do great stuff in terms of their mergers and how they balance their brand portfolio. Like it's so broad. So I think you can learn if you look for it. I think you can find little things here and there that people do really well.
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What's next then for the group? For you? What are you most excited for?
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It's so much that I'm excited for. We have 18 big projects coming up, so obviously it's a lot of everything ranging from budget hotels to like new cool luxury properties. For me personally I'm trying to work a little bit closer with Morely the politicians and the travel destination companies to see how we can manage the travel industry in Norway a little. I'm not saying we're doing a bad job now, but you see so many examples in the world like Prague, Barcelona, where cities that have been like built up on tourism but also are kind of ruined by it. And I really, really don't want Norway or Sweden or Finland to come there. So for me 2026 is going to be like a balance between our new cool projects but also involve myself a little bit more and learn how we can help manage the tourism in Norway better. Because I really think like we are dependent on our nature, the collaboration with local communities to actually have a product to sell in the future.
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That was Emila Stordalen, co owner of Strawberry Group. You can find out more. Head on over to strawberryhotels.com. And that's all for this episode of the Entrepreneurs. We'll be back at the same time next week. The program's produced by Laura Kramer with audio editing by Jack Dewars. You can listen again and find out more about the show at the website. That's where you can, and indeed should, subscribe to Monocle magazine and ensure you're reading more about better businesses every month. You can always follow us and catch up with the archive wherever you get your podcasts. If you'd like to reach out, get in touch with email Laura. She's on LRK@monocle.com. i'm Tom Edwards. Goodbye, and thanks for listening to the Entrepreneurs.