At the second panel of the inaugural Forbes Business Bridges event in New York, experts and leaders from the luxury retail industry gathered to explore how iconic brands are navigating the delicate balance between tradition and innovation. Titled “Elevating Luxury Retail: Blending Tradition with Innovation,” the discussion delved into the evolving relationship between brands and consumers, emphasizing how emotional connections and customer experiences are reshaping the future of luxury.
Speakers such as Anca Vlad, President of Fildas-Catena Group, questioned how to communicate authentically in an age where emotions drive purchase decisions. Meanwhile, Octavia Marginean-Tahiroglu, General Manager of The St. Regis New York, shared insights on transitioning from invisible service to highly personalized, interactive experiences. With topics ranging from the impact of AI on luxury hospitality to the enduring importance of human craftsmanship in watchmaking, this panel provided a forward-looking discussion on how legacy brands can remain relevant in a rapidly evolving marketplace.
Pioneers such as Silvio Pietro Angori, CEO of the Pininfarina Group, reminded the audience of the irreplaceable role of human creativity and design in shaping emotional experiences, while Zach Erdem, entrepreneur and CEO of the 75 Main Group, revealed how technology is driving efficiency without sacrificing the personal touch. Finally, leaders from Bovet and Roger Dubuis emphasized that, despite technological advances, human interaction and exclusivity remain at the heart of luxury retail.
This panel brought together a variety of voices, each highlighting the power of heritage, emotion, and innovation in forging a lasting connection with today’s luxury consumers.
Here are the main statements of the speakers:
Anca Vlad, President Fildas – Catena Group
I would like to express some ideas after the extremely intresting AI panel… The world is made up of both male brains and female brains – and this creates a harmonious result. I wonder why AI appears to exhibit such a male bias. Are we entering a new era of masculinity? I’m also curious about the human charecteristics of the programmers behind these famous algorithms – do they understand the feminine part of the world well enough? Are we encouraging girls to trust their mathematical skills and to be prepared for a future with AI? These are just some of the thoughts I had while listening to the Distinguished Panel. Women tend to value precision, and at a recent conference on AI held by Deloitte in Bucharest, it was noted that AI is about 15% of the times wrong, and it doesn’t even know it. That really made me question who can supervise it. And in order for us to effectively supervise it, we need to learn and build confidence, and attract more women into the business.
I’m not going to mention the advertisements I receive because I read Forbes magazine, but since I also read Bloomberg and various financial publications, I get a lot of ads for prostate medication. This made me think that there is a bit of bias in the programming and algorithms, and bias is definitely not good. I mean, we’ve come a long way as women, so let’s not allow AI take that away from us.
I watched our company’s short presentation , which, by the way, was written by my son – he’s in charge now – and it was such a pleasure to realize that he said, “Fildas Catena, the name of health in Romania.” I thought about this 30 years ago, and that’s what I wanted Fildas to be one day: the name of health in Romania. And today, I realized that it is. So, we did it. How did we achieve this? Well, we are a team of strong personalities, and it’s a 50/50 balance, ladies and gentlemen. However, when it comes to direct interaction with the public, about 90% of our team members are women. We are important, and we are here for you. It’s all about trust. Our core value is trust.
And since you mentioned the pandemic, I’d like to share something that happened during that time, which really showed me what a strong team we are.
A law was passed in Romania that allowed women with children to stay at home, because their kids couldn’t go to school. The law stated that these women would receive their full salary. As you know, with 90% of our team in direct customer interaction being women, more than half of them had children at home. They were supposed to stay with them, so we thought we wouldn’t be able to face the challenge as a company. That’s life,’ we said. ‘This is the pandemic, and these are its consequences.’ There was nothing we could do, so I just waited to see how many women would stay home and whether we could manage the situation.
It was only natural for them to stay home to take care of their families. But do you know how many women took advantage of this law? Do you have any idea? I thought it would be 25%, maybe even 30%. But none – not one! Whenever I think back on this, I still feel the same incredible emotion. They cared about their community and their colleagues. They didn’t want to show fear. There is a network of support within extended families in Romania, so maybe some grandmothers stepped in to help. But I was told that the main reason was that they didn’t want to leave their teammates behind during such difficult times.
What did this mean for our company? It meant that we became the most trustworthy company. And after COVID, we experienced double-digit growth, which is not easy for a mature company. In fact, this is what it means to be the name of health in Romania.
In terms of challenges, one particularly interesting issue we’ve faced in recent years was figuring out how to take a brand recognized for its service and communication with patients and transfer it online. We spent considerable time reflecting and discussing, only to realize that we couldn’t fully replicate that level of service online. The personalized interaction and anamnesis – what we refer to as the initial patient discussion – require direct contact, and relying on robotics for explanations just wouldn’t work.
So, we created a new brand specifically for the online space, called Spring. The name Spring came from our desire to convey the agility of a spring, the fluidity of water, and the freshness of the spring season.
We loved the concept, worked hard on it, and now it’s doing very well, especially as a brand for young people. They love it, they recommend it to each other, which is fantastic, and it’s been a wonderful creation. But then we were faced with another challenge: reaching young mothers. How do we approach them? Should we encourage them to connect online, or invite them to come and talk to us in person? Ultimately, we decided that Catena would focus on maintaining the traditional pharmacy chain while prioritizing direct connections with young mothers.
Octavia Marginean -Tahiroglu – General Manager, The St. Regis New York
The St. Regis is a legacy. It has been around since 1904 as a hotel. During my MBA studies – which I recently completed – I learned that the average lifespan of a business is 15 years.
We’ve been in customer service for a very, very long time and have witnessed the evolving needs, wants, and desires of our customers throughout history. For example, one interesting fact about our hotel is our high employee tenure, averaging 27 years. We also have over 400 employees servicing guests in a relatively small hotel with 238 rooms. Retraining employees who were accustomed to the demands of 1991, when the hotel reopened after a complete renovation, has been a challenging task. Back then, both our experience and employee feedback indicated that customers preferred “invisible service.” For instance, in-room dining would be delivered with minimal conversation before moving on. Our butler service, which is a key differentiator in the market, is something that we continue to offer to every guest.
Back in 1991, the butlers, who were trained by the head butler from the House of England, operated invisibly, providing their service discreetly. Post-pandemic, however, we have witnessed a complete paradigm shift. Today’s customers seek interactive relationships and experiences. The values that newer generations – like younger Gen X-ers and even some millennials – bring to the table differ significantly from those of the Baby Boomers and older Gen X-ers. So, what we’ve noticed is that customer service has evolved from being invisible to being interactive.
It has shifted from fulfilling a need to fulfilling a desire, which now also includes delivering an experience. Leveraging the human aspect is crucial, especially in hospitality and retail, because we provide added value beyond the digital platforms and technologies that help us become more efficient. As mentioned by the earlier group discussing AI, I am personally in favor of AI integration. I believe we will witness a reskilling phenomenon, and while some people will adapt and use it, our current use of AI differs from how we will leverage it in the future. Currently, we use AI to enhance operational efficiencies. We haven’t laid off or terminated anyone, because we value our staff precisely for their ability to provide human interaction.
We want humans to interact with other humans – this is what sets luxury apart. Just think about it: if you live in the U.S. or have visited a big retail store like Bergdorf Goodman on Fifth Avenue – just a block away from where I work – you could be served by a machine. You can tell that machine what you want, it will tell you where to find it, but you would have no one to engage with. No matter how advanced we become, we are social beings who seek interaction. When we walk into a store like WorkDove, we want to speak with someone who knows what they’re talking about. Sure, they can use a tablet to look up information, but we still crave that human connection.
So, I hope I’ve answered your question about how we are transitioning and how we can leverage our human nature to better work with AI. We need to rethink and harness our knowledge because we are all capable individuals. I strongly believe that everyone is born smart, but circumstances can either expand or limit their potential.
The main challenges we’ve faced this year include a major renovation and the effort to strike a balance between preserving our heritage and embracing transformation and digitalization. Consumer behavior has been a challenge in itself. Looking ahead, we remain optimistic about the U.S. market from many perspectives, particularly regarding its positive impact on tourism, the hotel industry, and the luxury segment, despite its small size. One encouraging factor is the growth in the U.S., particularly the upward trend in GDP, which is great news for the economy.
However, we anticipate facing new challenges in the near future. After undergoing a renovation, relaunching, and hosting a successful media event, we now have solid bookings on the calendar. Yet, as a traditional business, we must adapt to a changing customer base. Our customer demographic is aging, so now we are strategizing on how to appeal to new generations with a combination of product and service. Our goal is to capture this market, monetize it, and navigate the challenges of a multigenerational workforce. Like many businesses, we are also dealing with a shrinking talent pool. As leaders, I believe our role – referencing Anca’s comment about women being discouraged from fields like mathematics – is to identify and nurture passion in people. We must mentor, cultivate and inspire the new generations, particularly in areas where they may lack interest, such as work ethic.
Work ethic is a major challenge across all industries moving forward. Baby Boomers taught us the importance of hard work, emphasizing that it is the key to becoming champions of innovation, driving the economy, and participating on a global scale. That’s the task ahead: finding talent, developing it, and striking a balance between product and service while attracting younger generations. Additionally, we need to bring in new thought leaders using the tools they’re familiar with.
Take Gen X, for example. They are digital natives – they grew up with technology at their fingertips. Meanwhile, we may have been too busy or overly concerned about job security, or simply too caught up in our own existence to fully embrace this shift. Now we’re faced with a generation that expects instant gratification – everything available on demand through a tablet. But the real world doesn’t operate that way. Despite all the technological advancements and the potential of AI and the fifth wave of the industrial revolution, we can’t allow ourselves to lose sight of what’s happening in the real world.
The real world extends beyond the Western world we navigate. Right now, children and teenagers in Ukraine, who were once attending piano lessons and math competitions, are being drafted into war. These young people don’t know how to fight. While we’ve made incredible advances in technology, in 2024 we are still far behind when it comes to achieving peace. Perhaps, one day, robots will fight wars so that human lives aren’t lost. Ideally, there would be no wars at all. But whether we are talking about global conflicts or smaller disruptions – like the current issues at the docks on the U.S. East Coast – one small event can have a significant economic impact. I hope this doesn’t happen, although Raoul’s grim outlook on the future has me somewhat concerned.
Silvio Pietro Angori – Chief Executive Officer & Managing Director, Pininfarina Group
We were born between the two World Wars. We’ve lived through the economic boom of the 1960s and the turbulent 1990s, so we’ve experienced many different eras. Of course, COVID-19 has been a major event in our lives, with a significant impact. But if I had to compare, I would say that, in some ways, nothing has really changed. Why do I say that? Because, as mentioned earlier, humans are, first and foremost, social creatures. We crave being together and experiencing things. There was a time when we thought the digital world would be the future. Remember when we imagined trying on clothes virtually instead of visiting physical stores? A lot of money was invested in replicating that kind of experience.
But it’s failing. In fact, we are now designing spaces where people can truly experience things – where they can touch, feel, and smell. This is what our designers have always done: they create experiences. Through design, we improve people’s lives. You might think, ‘Well, if I need clothes, they just need to protect me, right?’ But it’s more than that. The reason is that we have another part of our brain that seeks art and emotion, not just rationality.
Don’t get me wrong – I’m a physicist by training, so I’m very well-grounded in reality. But creativity fosters our well-being. So, what is design? Design is the combination of art and technology. At Pininfarina, we say we ‘dress’ technology. Technology alone is beautiful, but it lacks soul. Art, on the other hand, evokes emotions but it doesn’t solve practical problems. If I need to get around in a car, I want to drive a nice one. Any car can get me from point A to point B, but it’s the experience that matters. Similarly, I wear a simple watch that tells the time, but my friend Beauvais has something far more special – something that not only works but also brings him joy. That’s a different kind of design.
This is why I believe there is a common thread throughout time where the physical aspect of things remains essential. Human interaction is crucial, and this is why we must always remember to balance functionality with aesthetics. This balance is what sustains us. That’s why I previously stated, quite emphatically, that designers have the responsibility to make this world a better place to live.
I believe that nowadays everyone is well-educated when it comes to design. Beauty and functionality go hand in hand, and that’s what it ultimately comes down to. For a company like ours that primarily serves third parties, we don’t just sell to them – we also reach the end customer through our business clients. This presents our biggest challenge: keeping those clients coming back, even though they have their own design studios. The key challenge lies in interpreting the world in a way that differs from how our clients envision it; otherwise, they wouldn’t come to us.
We achieve this by having the best talent available. While there’s a lot of talk about artificial intelligence, for us, it is merely a tool – nothing more. Nothing can replace the creativity of the human mind, and that’s where our biggest challenge lies: attracting that talent, giving them compelling reasons to join us, and seeking them out in non-traditional places. There are some of the best design schools in the world, but consider this: China has a population of 1.4 to 1.5 billion, and India also has around 1.4 billion people. Believe me, not all of them are satisfied with their current opportunities.
They want a better life for themselves, and we need to provide the opportunities to make that possible. You’ll find countless young people eager to surpass what we can imagine today. That’s why our challenge is to build connections beyond the usual ones, particularly in countries where talent remains largely untapped. Let me emphasize that we are an automotive company with 94 years of experience in car design, which is where our legitimacy stems from. Just look at the cars coming out of China – many are like smartphones on wheels. While we might not personally prefer them because they’re heavily digital, for many consumers this is their first car ever. They view it as a true commodity, and we have to interpret how they will use it.
That is the experience we’re working to understand. It’s a different kind of experience from – say – going to The St. Regis, but it’s still an experience we have to interpret. This is the challenge for my business.
Zach Erdem – Entrepreneur, CEO of 75 Main Group, Reality TV Star
My name is Zach Erdem, and I’m a Turkish-American citizen. I’ve been in the U.S. since 2002, and I’ve experienced the best life here. I didn’t attend Harvard or any prestigious schools, but today, I find myself surrounded by wonderful people. I’m savvy enough to leverage available tools, like social media and various resources. I own several establishments in the Hamptons – a resort located in the beautiful area of Long Island.
The place where I started as a dishwasher is the same place I returned to 10 years later to buy the business. Another 10 years after that, on my 10-year anniversary, I purchased the building. That building is now worth $15 million and is situated in one of the best locations in Southampton. I’d like to share a few thoughts: I’m a huge believer in technology, and I recognize that the new generations are smarter and adapt quickly to platforms like Facebook, Snapchat, and other major tech platforms, all of which were founded by young people.
These new generations will continue growing, surrounded by intelligent people from all over the world. America is a place where individuals can grow without limits. I truly believe the sky is the limit here. I’m not sure I could have achieved the same level of success had I still been in Turkey. My life has been an interesting journey – if you’re curious, I encourage you to look into it, it’s very inspiring. During COVID, while most people were sitting at home, the Hamptons were incredibly busy. New York City essentially relocated to the Hamptons, and everyone wanted to be there. My business, which operates in the service industry, with several restaurants, hotels, and nightlife venues, experienced incredible growth. I took full advantage of the opportunities that emerged, such as street dining, and maximized profit.
The AI world is advancing rapidly, and we all know it will take over many industries. However, I hope that even 50 years from now, we won’t be working for AI, but it will still work for us. As a Turkish citizen who didn’t speak much English and didn’t attend school, discovering ChatGPT changed everything for me. I used to rely on two secretaries or personal assistants to handle my reports, deals, and event bookings. I would spend hours working on contracts, but that is no longer the case. Now, with ChatGPT-4, I simply type in what I need, and it delivers the result in minutes.
It has made my life so much easier. Now, I come across as more professional, especially when preparing major contracts for events like $100,000 weddings. You want to appear competent, and tools like ChatGPT help with that. I’m sure many of you are using it the same way. I heard the earlier discussion, and it was incredible – I agree with most of what was said. In the restaurant business, the challenge lies in figuring out how much I can incorporate AI. I will never replace my chefs with robots, though.
I know some restaurant groups in California have already started using robots in their kitchens. So, the burger you order might be prepared by an AI-controlled machine that grills it. This is beneficial – you’ll never have to pay overtime, extra hours, or worry whether the cook is tired or quitting. The robot will be in the kitchen, working as long as it’s plugged in. I would definitely consider having a few of these robots in my kitchen. Raluca probably understands how busy the restaurant industry can be, and mine is one of the busiest restaurants in the Hamptons. We serve around 1,500 meals during the summer months. That’s a lot of people, a lot of fat, pasta, and eggs!
I’m okay with that. In the service industry, AI can be a helpful tool, and I plan to use it as much as possible. Other than that, maintaining personal relationships with customers is the most important aspect of the restaurant business.
Finding staff for the service industry is no easy task. Most people want to come to restaurants, sit down, eat, and enjoy the lovely atmosphere. When it comes to attracting employees, though, things can be quite challenging. We primarily use a program called J-1 Students. Some of you are probably familiar with it. This platform, provided by the U.S. government, allows individuals from around the world to come and work with us.
The government issues them visas and Social Security numbers. Essentially, they come here for three to four months, and we sponsor them. We provide housing and other necessities. You submit all the required documents to the U.S. government, and they put your name on a list. Then, you go to Romania (for example), where schools inform students: “Hey, there’s a restaurant in the Hamptons that provides housing and offers this much pay,” so people know what they’re getting into. This is how we find most of our staff during the summer. As many of you have probably heard or experienced, vacation destinations are bustling in the summer, but almost deserted in the winter.
Long Island, unfortunately, is mainly home to the 1% – the billionaires who spend their summers in the Hamptons. These are the people who have homes in places like Central Park, Miami Beach, Palm Beach, Aspen, or even Europe during the winter. But in the summer, they usually head to the Hamptons for two or three months to enjoy their time there. It’s one of the best places in the world, in my opinion. Romania is great too, but the Hamptons is something special.
Finding staff is one of our biggest challenges in the Hamptons. We typically employ around 250 people during the summer across large venues, including wedding and catering locations. Getting all these people together isn’t easy. Housing is the biggest issue because it’s very expensive.
For example, we spend $150,000 just to rent a house for our staff for three months. These are the logistical challenges you have to solve if you want to survive in the Hamptons during the summer. Good service is critical in this business. You may serve the best food, but if the service isn’t great, people won’t return. That’s why I believe it’s crucial to focus on providing excellent service. Food trends also play a big part – many people today favor vegan or gluten-free diets, so it’s essential to keep up with these trends and make sure everyone can enjoy the menu. Constantly updating the menu is essential, and for us, seasonal menus work best. We prioritize using local products from the Hamptons, including items from local farms and wineries.
We strive to create menus that rely on local ingredients as much as possible, rather than importing items from places like China or Mexico. Keeping up with trends is always challenging, but we ensure that customer service remains the key focus in the service industry. We all love visiting places where a friendly, smiling hostess greets you as soon as you walk in, followed by attentive staff who check on you and ensure everything is perfect. This is the kind of service I emphasize –ensuring that every single customer, not just celebrities, receives excellent care.
One of my restaurants, 75 Main, was recently ranked by CNBC as the second-best restaurant in the U.S. for attracting celebrities. This recognition wasn’t something we paid for through PR – it happened organically, which makes me prouder than anything else. I mean – we are a small restaurant group in the Hamptons, yet we’ve become one of the top spots for celebrities! You’ve probably seen many of them in my restaurant. And I’ve built personal relationships with many of my customers – whether they’re celebrities, billionaires, or just regular people.
What makes me happiest is meeting everyone who comes into my restaurant, learning their stories, and understanding why they choose my place over others. There are so many restaurants they could go to, yet they choose mine. That personal connection is incredibly important to me.
Of course, I’ve opened multiple restaurants on the island, and they’re not all close to each other. I try my best to visit each one, show my face, and connect with both my staff and customers. I strive to keep everyone happy and stay on top of the latest trends in order to ensure our continued success.
Laurent Toinet – U.S. Brand Manager, Roger Dubuis
Before COVID, we viewed brick-and-mortar stores primarily as transactional spaces for luxury timepieces – including our own. Clients would come in, discover the brand, and purchase a timepiece. During COVID, we had to adapt and stay connected with our clients, so we developed various digital tools. We even digitalized our manufacturing process, allowing our collectors to visit the facility in Geneva from locations like Singapore, New York, and Bucharest. This has helped us build a stronger relationship with our clients. However, I feel that after COVID, while we’ve retained some of these digital tools – allowing customers to explore the brand digitally before visiting the store – the importance of the physical store remains. It has evolved from a purely transactional space to one focused on experience and connection with the client. In some ways, it’s similar to the service or hospitality industry. We like to say that we are “ladies and gentlemen serving ladies and gentlemen” in the store. Ultimately, it’s about forging an emotional connection with the client that visits us. We aim to understand what the customer enjoys and likes.
We then present our collection, and, as a maison with heritage and history, we strive to maintain that connection with our customers. This is where digital tools continue to play an important role. However, I believe this shift from transactional to experiential gives brick-and-mortar stores a very promising future, at least in the watch industry.
When customers visit a store today, they expect exclusivity – something they can’t find anywhere else. This could be a unique timepiece or even a special cognac made in collaboration with a specific producer, available only in-store. That exclusivity deepens the emotional connection fostered by the maison.
Q: For our audience: what is the average price of a Roger Dubuis watch?
A: The average price is $80,000.
Q: Has anyone ever purchased a Roger Dubuis watch just from seeing it online or on the website?
A: Yes, it does happen, though not frequently. E-commerce is an interesting channel for us, but I’d say it serves more as a platform to showcase the brand. We also collaborate a lot with influencers, and we’ve received requests after one of them has worn one of our timepieces. Therefore, influencer marketing is definitely a valuable tool for building brand awareness.
However, most transactions still happen through direct human interaction, whether in-store, during visits from our brand representatives to customers, or when we create personalized experiences in collaboration with our partners.
I find this particularly interesting in the context of discussions about hospitality. Referring back to our earlier point about the shift from transactional spaces to more experiential ones, this shift also requires that our teams evolve accordingly. In the past, client-facing teams primarily needed in-depth knowledge about watches – they had to understand what a tourbillon is, how we create our timepieces, and all the intricate details. At some point, they would inevitably need to connect with a watchmaker. However, with the shift toward a more experiential approach, we are now seeking different candidate profiles. Of course, we still want people who can discuss timepieces, but more importantly, we want individuals who can connect with clients on a personal level.
If we hire someone who knows nothing about watches, that’s okay – we can train them on that. However, it’s much more difficult to find someone who can naturally connect with a client and build a relationship. What we’ve implemented in some countries, and what I strive to do with my team, is to partner with hospitality schools. We send our employees for training at these schools for a few days, and they may even train at a hotel to observe how the hospitality industry treats and serves clients. Afterward, we bring them back to our boutiques to focus on building that emotional connection with clients. So yes, the transformation of the skill set required – particularly in client-facing roles rather than in manufacturing – is indeed a challenge.
Keith Strandberg – Head of Content, BOVET
Our brand was founded 202 years ago. What we are trying to do now is blend that heritage with modernity, and it’s interesting what you mentioned earlier, about experiences. That’s something we really need to develop – reaching out and building relationships with our customers. Celebration plays a significant role in the watch industry because people typically don’t buy a timepiece when they’re in a bad mood; they usually purchase a watch to celebrate something.
Traditionally, there has always been a retailer between us and the end customer, and that’s something we’re navigating now. We don’t want to cut out the middleman, as retailers are important representatives for us. But at the same time, we need to build direct relationships with the end customer.
That’s the challenge we’re facing – how to manage this balance without upsetting our retailers. As for the human touch versus AI in a brand like ours, I believe, as someone mentioned earlier during the panel, that AI can’t create a beautiful piece of jewelry or a timepiece. Therefore, we need to harness these tools to help us connect with our customers.
We’re now using a hybrid model, engaging extensively with the end consumer through social media. I believe AI will be a useful tool for us. I don’t share the doom-and-gloom perspective of one of the panelists who said that in three years we should just stop and die.
We have to keep moving forward, and fortunately, AI won’t be making timepieces – those will still be crafted by human hands.
I think one of the biggest challenges for Bovet is getting our message out. We are well known within the collector community but not as well known among the general public. Distilling our message into something that resonates with today’s consumer – who may not have much time and often has a short attention span – is difficult. Communicating 202 years of history and tradition in just 10 seconds, or in the brief moment before they swipe, is a real challenge for us. I believe it is fundamentally a communication challenge. As the head of content and training at Bovet, I share the perspective that we need to train people to communicate effectively, but they also need to understand watchmaking. Therefore, our biggest challenge is raising awareness and helping people truly understand what we stand for.