Directly from Paris: The Secret of Project Management for Luxury Goods

Directly from Paris, France, Ricardo talks in this podcast about the most important characteristics of project management for the development of luxury goods, where criteria like speed and cost reduction are revisited and re-contextualized to reach a market that is driven by other assumptions. He focus on the image construction and exclusivity as essential peculiarity of the functional scope (requirement) of this kind of product. A brand new dimension of the very popular triple restriction (PCT - Performance - Cost - Time).

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Episode transcript

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Hello everybody welcome to the five minutes PM. Podcast Today Directly from Paris. France talking about the secret of the Luxury products regarding project management, for sure. Europe and inside Europe. France is the landmark and it's the cathedral of luxury goods from handbags. The watch us to reselling products like caviar, like white truffles, like very high speed cars, planes.

So the luxury market is here. And I'd like to share with you some comments, because when we think about traditional project management for the livery, a traditional product, one thing that that's always our target is cheap, fast, and good. Every single Project must be cheap, fast and good. But when we think we got about luxury products, it's completely different. It's completely this market, the cost of the time to market, its not something so critical there not looking for high speed beer, not looking to build the best and reliable supply chain for Time know the span muffs ear to prepare the right letter, to prepare the right foods or the right product it's different.

And if we remember one time, a book that I liked very much from called pictures on this book, Robert talks about scarcity and what drivers drive this kind of product, its not the best price. It's not the fastest way to reach the customer. Let's think about a car. When we produce a car, we want to make sure that every single client has the right to buy the car.

We don't want to lose any customer, but if we go to the other side Luxury you need, of course it's a completely different, you have some times one or $2 million to buy a car and then they will tell you, okay, please wait two years. Can we use to pay a million dollars? So something is different in this product development, in the project management perspective, they, for sure when we think about quality quality, something that we are not thinking about quality, nobody that goes to a very high standard, a handbag manufactured.

We are not worried about the quality of the ladder, the quality of the straps. It's obvious that they will be the best that the market can provide the best far. But the people pay this amount of money, four, an exclusive handbag, or because of the word disclusive because of brand. So when you think about functional scope or food, and I know requirement in this kind of product, you need to take care to produce the best product.

But in your other hand, you need to spend a huge amount of a Fort, an image to Butte, the LIMU to boot image, to put in this product in the mind of the clients, in their heart. Because if they do that price, we will be pointless. Maybe if you reduce the price, you will lose the sale. This customer, this customer once to be used. So it's a completely different dynamics.

When we think about PMBOK guide. When we think about scope Time Cost we see a completely different landscape, okay? How much this crocodile letter will cost. It doesn't matter. It doesn't matter because the client will pay 10, 20, 50 times more than the Valley to have this handbag it's different. So when we think about this kind of products, we can not think only in the product itself, we need to address all this glue, all this image.

So sometimes we need to do something like that, the products ready, but we let the market know that we are preparing the new fratty or the new Maserati or the new Bugatti, the new cars to start the desire process, a moan potential client's in the order hand, Apple did that last week and did that very well. The Neal tablet from Apple, the iPad is not available.

If you want one right now, you will go to the store and you will, they will put you in the waiting list. Then they will not defy you maybe in two or three months. So why Steve jobs did that last week? Let's think he did that only to set up, we start the desire process. This was a part of the project management process of the iPad. One project Management was okay. Supply chain resellers, and then the, your other hand image image.

So it's so important when we walk on the streets here in Paris and we see this is starting from the handbag, crass, the restaurant, wine, food, everything they pride. We built this image of exclusivity, high quality, standard, and desire. This kind of people will by using their heart and not their mind. And this doesn't mean that they will not use project management, but they will use in a completely different way.

I'm sure that last week Watts Steve jobs did was for sure one work package have the iPad Project but most of the people think that to be a good Project must be cheap. I must be quick, fast. Now this is not the case maybe to start. And this desire in the market will approach in the much better way for the future and also to raise the customer's awareness and interest for their products.

I hope you enjoy this podcast is a different podcast and to see you next week with another five minutes PM. Podcast bye.

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