Keynote presentation on March 31 at the French American Luxury Symposium.

1. FASHION AND LUXURY RETAIL:
THE NEXT 10 YEARS

2. RESONANCE
We partner with talented brand creators who deeply
connect to passionate customers with an incredible
and relevant product. Together, we will build the great
fashion brands of the future by celebrating their cre-
ative design talent and supporting it with successful
venture capital company-building experience, deep
fashion industry insight, unique manufacturing ex-
pertise and an opinionated vision of technology.
Our vision for technology is simple: it will transform
the fashion industry and, with our unique insight
gained through our member companies, we will
build the systems and platforms to power our cre-
ators and then hone these systems to drive these
changes to the entire fashion ecosystem.
LAWRENCE LENIHAN
Co-Founder and Co-CEO,
Resonance
Founder of FirstMark Capital
Chairman, Norisol Ferrari
Board Member:
Tommy John
Tucker
JCRT
Runthrough
Body Labs
Virgin Mega
@LAWRENCELENIHAN@CREATORDRIVEN

3. Note: Includes
Resonance, personal and
FirstMark Investments.
RESONANCE IS
A LOT OF EXPERIENCE
BRANDS >
Flow
Commerce
MEDIA > SERVICE >
INFRA-
STRUCTURE >
RESELLERS >

4. WHAT FOLLOWS IS OPINION.
But we are betting our
money and reputations
on these opinions.

5. LUXURY
AND
FASHION
WILL
CHANGE
[Oxymoronic] Luxury
Brand Loyalty
Business
Marketing
Mass Consumerization
Economies of Scale
Ecommerce & Omnichannel
Retailer as Gatekeeper
Sustainability Marketing
True Luxury
Value
Creators
Connection
Specificity and Intimacy
Economies of Small
Commerce Convergence
Retailer as service provider/partner
Sustainability Accountability & Verifiability
THE NEXT 10 YEARSTHE PAST 10 YEARS

6. LUXURY
An inessential, desirable
item that is expensive
or difficult to obtain.
I have it,
you don’t!Or better...
Pronunciation: /’l kSH( )rē/e e

7. [OXYMORONIC]
LUXURY
Mass luxury.
Affordable luxury.
Accessible luxury.
IS THIS BAD?
No, if you are honest
with yourself that
it’s marketing and
positioning.
Yes, if you really think
you’re in the luxury
business.

8. THE FUTURE IS
ABOUT VALUE
Luxury is a value purchase.
Brand loyalty contingent on
brand product value.
“High/low” is proof!
Every brand must be a value brand.
Scarcity
Uniqueness
Inability to duplicate or create again.
Convenience
Easier, Simpler, Timelier
Less hassle.
Avoidance of unpleasantness.
Quality
Quality of Materials.
Quality of Construction.
Price
Economics
Value based on price/performance.
Cheaper, better, faster.
Experience
The Emotion.
The Feeling.
The Bond.
The Belonging.
The Service.
DETERMINANTS
OF VALUE

9. BUSINESS,
CREATORS
& HERITAGE
Luxury is about creation.
Creation is discontinuity.
Business is trend.
There is a difference.
Business exists for Creators.
Not the reverse.
Heritage is about the spirit and embodied
value of a brand’s original creator.
Craftsmen create heritage.
Age does not create heritage.
CREATORS CREATE HERITAGE.
Heritage of tomorrow is from the creator
driven brands of today.
5
4
3
2
0
1
0 54321
g(x)
x

10. CREATOR
DRIVEN
Marketing driven
Data driven
Margin driven
Accountant driven
Lawyer driven
Growth driven
IN THE FUTURE,
THE CREATOR
IS NOT A
WIDGET
IN BUSINESS,
BUSINESS
IS A WIDGET
IN CREATION.
Talent driven
Vision driven
Excitement driven
Energy driven
Experiential driven
BUSINESS
DRIVEN
vs

11. It’s not an ad campaign.
It’s not Rihanna, Kim, or anyone else.
It’s not a $50MM flagship.
It is your direct relationship with your customer.
It’s bi-directional.
It’s product.
It’s experience and engagement.
It respects a customer’s intelligence.
It celebrates a customer’s loyalty.
A LUXURY BRAND IS A CONNECTION

12. IN THE FUTURE, THE WORLD
WILL BE ABOUT SMALLER
AND MORE SPECIFIC.

13. THE END OF
THE BILLION
DOLLAR BRAND
By definition, market sub-segments
are smaller than market segments!
As a brand tries to broaden its reach away
from its core customer, it is attacked by
more-focused, even “nichier” competitors
By trying to mean something
to more people, the luxury brand
means less to anyone.
Divergence Of Customer Profile Away From Core
Core Customer Profile
Out-niched by
better-focused
new entrant!

14. ECONOMIES
OF SMALL
The shift from large mega-brands to small, specific
brands will disrupt every facet of the fashion industry.
Value will be created in small, not big. Being big will
shift from advantage to disadvantage.
Economies of Small are driven by speed, technology,
data, deep knowledge and precise execution from the
beginning of a brand’s existence.
In Economies of Scale, the race to big masks broken
processes that can be fixed and optimized at scale.
Economies of Small optimizes business processes
from the beginning. The age of “Mini Zaras”.
In Economies of Scale, the key unit of measure is “%”.
In Economies of Small, the key unit of measure is “x”.
DEFINITION:
The capture of the economic
advantages of being big by
companies who are small.

15. COMMERCE CONVERGENCE
OMNICHANNEL
Seamless integration across different channels.
Stores as fulfillment centers.
Schizophrenic customer and brand identity.
COMMERCE CONVERGENCE
Seamless customer relationship.
Stores as energy points.
Singular customer and brand identities.
BRAND
CUSTOMER
BRAND STORE
WHOLESALE
ECOMM
SOCIAL
MOBILE
AGGREGATOR
BRAND
CUSTOMER
CONNECTION

16. RETAILERS
IN THE
FUTURE
The abuse will end.
Perhaps after big retail ends.
A re-examination of purpose:
gatekeeper or service provider?
Address disconnect between
value added and value taken.
Biggest opportunity: move from
an income statement business
to a balance sheet business.

17. The era of “Plausible Deniability” ends.
Talking the Talk will end. The Walking starts. (The Pushing too!)
Technology will drive accountability and verifiability.
Not a feature, not a strategy – sustainability must be inherent
in every aspect and action of every brand.
Government mandates AND social mandates.
Sustainability requires real commitment and real infrastructure.
REAL SUSTAINABILITY ARRIVES

18. The future will be increasingly complex.
The future will be increasingly fast.
The mix of talent needed to succeed will be different.
The technology to enable these changes does not really exist.
SO, SMALL BRANDS
ARE THE FUTURE, BUT…
VC backers don’t understand retail.
Retail backers don’t understand technology and how the industry will fundamentally change.

19. FUTURE
CORPORATE
GIANTS
Will embrace the shift from Economies
of Scale to Economies of Small.
Realize that success will not be driven by shared
overhead/back office. Success driven by shared data,
insight, capability, technology combined with capital
and the ability to leverage a vast electronic and
physical infrastructure.
Can manage hundreds of brands.
Will not be afraid to harvest brands because they
are always planting new ones and all infrastructure
and people can be repurposed easily and quickly.
Key metrics in the future:
• Cost of Failure and Time to Failure.
• Multiple of invested dollars.

20. 10 PREDICTIONS
“Flash” brands. Here today, gone tomorrow.
The words “Ecommerce” and
“Omnichannel” leave our vocabulary.
“Mass customization” does too because
it becomes ubiquitous (finally).
Mass limited editions and dynamic
collaborations means scarcity is no longer
the purview of luxury.
Golden age of supply chain driven
by technology innovation leads to
production adjacent to consumption.
Demise of big retailers.
Rebirth of big retailers as service
providers and brand platforms.
Highest Luxury dominated by
niche brands.
Today’s luxury giants struggle,
contract, re-focus then succeed
(but at the loss of billions in sales).
Economies of small: new corporate
giants that manage and drive
hundreds of brands.
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21. THANK YOU LAWRENCE@RESONANCE.NYC
@LAWRENCELENIHAN
@CREATORDRIVEN