Investing To Win In A Cut-Back Economy

I just want to take a little bit of a bigger picture now as we move into our next panel. We have got a cost of living crisis that is challenging consumers. And meanwhile, businesses are facing resource constraints and rationalization. However, this is still an age of opportunity, and investment plays a big role in the sustainability of businesses. So for my next panel, I'm going to be inviting Kirsten Wing, the head of editorial content at Vogue Germany. And Benjamin Messer, the director of ecommerce at Boggner, to share with us how they are investing to win in a cut back economy. Welcome Kirsten and Benjamin. Hi. Hello. Thank you so much for joining. You wanna jump up here in the middle. Thanks so much. Thank you. So hi, Benjamin. And Kirsten, thank you so much for joining us. Hello. Can you just for the benefit of the room, just give us a one liner on your role and your journey to boat boat boat festival and then I'll come to you Benjamin for Boggner. Alright. So I'm Kirsten. I'm a head of editorial content in book Germany. That means I'm responsible for the content on the website, in the magazine. And yeah, I've been a fashion journalist in in this scene around for nearly twenty years, so I've had the identity of insulin, of cosmopolitan, and of style light where we build an e commerce magazine from scratch. So yeah. Thanks, Kristen. And Benjamin. Hi. Welcome. Can you just give us a one liner on you and your role at Boggner? Hi and thank you so much for having me. Hope this works. Yeah. My name is Ben. Benjamin Messner. I like technology. I like selling things. I also like sports, so Bauchner probably is a good fit for me. I'm the director e commerce at Bauchner joined the company in two thousand nineteen and It's been a it's been a ride since then, but we're we're still, yeah, have many things to to accomplish still. Thank Benjamin. I mentioned at the beginning that this has been a really challenging time for brands, but the luxury segment has remained quite resilient. And I saw in recent results that Bogner's revenue for the last financial year is actually ahead of prependemic times now, which is a great result. Can you just tell us a little bit about how boggers manage to maintain momentum during such a challenging time? Well, the general is always challenging and you have new challenges when you think you solve one. Where we focus on growth in wholesale and and digital mainly, and we really want to want to provide a high quality product. I think that's well, it sounds so simple, but I think that's the challenge to to resolve first. And then we we also need to make sure that, well, we we provide entertainment. Right? So marketing and maybe you could say Billy Boogner invented content marketing back in the days. So we still have a lot of content that we can use today lot of heritage content, Boggner is a is a ninety year old brand. We celebrated ninety years of, yeah, Boggner last year. And so we we we can use that but we also need to look forward and need to, yeah, provide something that well, gets the attention in all this tension economy. So we do many different things, so we invest heavily in performance marketing, we invest in CRM, but we also do things like a fashion show which we did in in Hoffwirehouse in January, actually which was seventy five years after Maria Bogle had done that in the first for the first time in the exact same venue. Alright. So well you mentioned two things there then. The entertainment elements like fashion shows and then content as well. Kirkson, this is your world. You you attending fashion shows but also as a head of editorial content at Germany, how have you seen brands evolving their content strategies to keep consumers engaged? I think there's something you already mentioned that it's about having an angle to tell stories to keep people involved. So what we see is a really strong interest and brands in cultural moments. So for example, Gucci became the main sponsor of gallery weekend this year. Chanel is very involved into the Bellinale. Max Mara is supporting a foundation and Hollywood woman in film. And so different brands supporting different cultural companies, events happenings, and they keep creating content from this and they have several of them. So each brand is looking into supporting or being present at different cultural moments, and I think this is something that every brand keeps, yeah, what tries to be kept in the conversation. Thank you so I think that actually mentioning that that cult from America is really important because it's something that big business is investigating as well. We we tend to cover sustainability and technology exhaustively we see culture as the next front line for brands to to tap into. And, Benjamin, I noticed on Baugner's ecommerce site, the Baugner World Pages, which I think is quite an important asset for the brand where you're developing more and more entertaining content. Even in in areas like film, can you just tell us a little bit about how you're diversifying that content strategy as well? Yeah. Well, the the Bongan world is an important part of like the whole ecosystem that we're creating and if you take a look, it's not where we want it to be yet of course. But it it's I think it shows that we need one place where we can curate content in the way we would like to do it, but it's only part of it. Right? So up the up my way up the funnel we have social media where we need to yeah, play content in a different way, make it make it fit the channels. But then we we combine everything in that one place and then people can go there and and and see what they would need and create it in a way that, yeah you can filter for different interest different things. So even our actually our our press releases will go there, so and so. So this is this is like one space, but It's just one part of the whole the whole system. I'm I'm when I was speaking with Daniel earlier, we spoke a little bit about how quickly banff had to pivot during the pandemic. Was that the same for Boggner? Because ecommerce is such a vital way of reaching consumers and can be quite difficult in those sorts of times. How did Boggner have to respond to that sudden drastic change in the way that we do things? Well, we we didn't really need to pivot in that sense. We already had an existing e com business that was quite stable, but of course, was challenging and was like we were the only channel that was able to to generate revenue during that time kind of survival of the company kind of depended on it but the team did a great job and we were really, yeah, created all the, like, you know, processes and systems that we needed. But of course we could have done more. I think if if our technology stack and the whole platform would have been where we wanted to be we probably could have turned our stores into fulfillment centers but but back then we weren't able to do that. One of the changes that I read about was Bogle divesting its headquarters and that changed the dynamic of some of the teams because I'm sure it would have had a big impact in ways of working, but also opened up new ways of working as well. How did that impact e com teams and marketing teams from your perspective? And are you now deploying those resources in different ways? Well like the divestment of the the headquarters was part of a whole, we call it performance program, but it definitely helped to put the company on a more solid foundation. And so this was was part of of different changes we made and it certainly helped us to continue investing where we had planned to invest which was well a lot in technology and during the well even before the pandemic we had started a big project to change our whole e com landscape and basically replace the whole thing, migrating from Magenta one to Salesforce Commerce Cloud and this was a big project and we we still needed to finish that and continue that while we had to make sure that we generate as much revenue as we could and and save as much money as we could during the pandemic. But maybe to answer your question on on the change the new building that we now now rented is really helping us to work in a different way and, yeah, we have like really entirely new building. The teams connect way better from my perspective. Also they enjoy the rooftop for yoga and stuff. So think it's really it's really a different way of working now so we could use that, yeah, that resource in a different way. I just want to think a little bit about the future. Because it can feel like such an uncertain time. What are you prioritizing at Bogle Benjamin when it comes to investing in e as marketing tools? Well, I would say we still need to focus on fixing the basics in some some ways. So still, basic technology things. But then now having this new platform in place since we launched last week last year in October, It's all about growth like adding new countries, adding new marketplaces. So we we also have a quite quite strong marketplace business. So I think this on the one hand, but then we also need to, yeah, get our technology stack to a new level. And that's actually where we are currently in in the phase of of defining the architecture and making sure we we get the project on the way. And I'm not a technical person. So in layman's terms, can you just share a little bit about how you I guess test and learn quickly when you're implementing new tools and making sure that they work. It's not always easy, but I think testing is is crucial. It's very important for us So, but on the website for example, we just started a project with a specialized agency who will help us to continuously do multivariate testing and improve our online store. This is really focusing on conversion rate optimization a lot. But then on the other hand I think it's also very important that while you have a team that is that's excited about trying new things and you you let them do that. You so much. Kirsten, one of the reasons that I think Boggner has thrived is because it has a focus on a specific niche and you mentioned culture and obviously it's got this cultural persona of outdoor pursuits and a sense of adventure. And I think that that's something that has really helped Boggner to gain a cult following around some of those activities. Are there any other niches that you can identify in the fashion segment that are starting to attract a new audience and a growing audience. Absolutely. So what we see is very really like Yeah. On the rise is, for example, shape wear that comes with a fashion sense. So if it's Giti by Lizzo or if it's Kim by Kim Kardashian, so these brand really, they fill a niche and they fill they fulfill a need and a gap. So I think it's really about these quite niche, as you mentioned, things that are so outstanding still are. For example, there are some brands coming from Australia where obviously there is more need than for us in Germany. But, for example, very luxurious rash guards that are designed very fashionable for going to swim. Are like recently I saw something that I was quite a surprise by like a fashion brand for moms going to the playground. So, okay, like so super super neat. But well, yeah, for sure, I think this is something that is really quite quite interesting to to discover and and to to think about for brands, what niche they can maybe fine for them. And also tapping into, I guess, lifestyle moments as well or life stage moments that you might not necessarily think about. Obviously, both Germany has a huge audience as well. Can you share any pro tips from your background as head of editorial content about how you identify new audience segments and new opportunities and you're shaping up the content they. Sure. So I think for us it's all about we have woke as a brand that is absolutely well known. And for us, it's about we come from a background that for sure is the print magazine, but now it's so much more. There is Really, video is a very, very important pillar, but for sure there is some events on the book business side So it's really developing and what we try to do is reaching a target group that is not aware about printed magazines. So we all know there is this infamous target group culture and set and everyone is so keen to his cover. So what we really did or started in the in the past and is one of the First in Germany was going to TikTok. And now, it seems that we really did the right decision, so we have about one million followers on TikTok, what is kind of huge. In comparison to to other German competitors, and so I think it's all about and for sure, these follow on TikTok, they are aware of both and the brand of folk, but maybe just some of them would buy a printed magazine. And so I think it's all about transforming and I think to keep the target group very vivid auto gain new customers, it's about to discover new fields and I think this is something you really always have to be aware that you think, yeah, maybe a few steps ahead It sounds like TikTok is a success story for you, and maybe you and Daniel need to have a conversation later about how how they can pick up some of those I'll join. I'll join. Everyone will join on that conversation. When nearly out of town, I just wanna ask a couple more questions and then give you audience an opportunity to ask some questions as well. Change obviously doesn't happen overnight. Normally when we talk about sustainability, we talk about it in to environmental or social sustainability, but we also have to focus on the sustainability of the business as well. As you've been implementing change at Boggner, but how have you done that in a in a way that has enabled the sustainable operation of the business? As well. Well, it's a tough question, but I think, yeah, we have invested in in like getting the a basics right, getting the architecture right from a technology perspective, making sure we have the right team in place. And then we just go and and I think we try new things and we Well, sometimes we fail but then we learn and Well, I enjoy that a lot and so I think that's how we can keep it like sustainable and stable. And and Kirsten, what would you advise brands in the room to prioritize as they're considering what to invest in next? So and yeah, I come back to take to our social media because what I really see when we talk with different brands is they are they are also interested in social media, and a TikTok and but they just don't get how important it is. So when I when I ask who is running your social media channels, it's like an intern or a very underpaid person. And I'm like, okay, so you are quite aware that this is so important, this a future that this is your maybe first contact to a new customer or even to the old customer, and then you an intern running this channel, so this doesn't make sense. And I think there should be some really rethinking about you would never ever run your biggest store, your biggest court, a half quarter by an intern. And so you have to really rethink about the value of your social media channels. And so this is something I could yeah, I can just recommend to really take this very very serious. So it sounds like the the technology and the channels are there but actually have to empower people to have that agility and have the right role to make those work for you. Great. That brings me to the end of my questions. Does anyone in the audience have any for Kirsten or Ben. I think we've got some we may have some roaming likes. But do you mind just spell your your name and where you're from, ma'am. My name is Maria Vaskornish. I work with my family. I have a question for the question regarding this last topic that you talked about about not having entrance running is very, very important in India. How do you do that? Because TikTok and all these trending social media are very new and it's it's always something new creating. How do you manage that to put someone with experience even though it can be I don't know how to put the question, but you need to be someone young and on the trends. To run this general. But on the same side, twenty somethings, they don't have much experience, but at the same time, this channels are very new. And everything is coming, like, tomorrow is gonna gossiping you. So how can you So I think it's not a question about age. It's a question about appreciation. So I think that as you said, this channel is or these channels are supposed to be run by a person who is really into it and this mostly are young people. But to give this person really the responsibility not just by taking the the work but just really appreciating the work by a really good payment and by really enable these people. I think this is something and to have a team they maybe can work with and everybody is involved. So for us, we do not have a huge social immediate team, but everyone is kind of supporting wherever the team can. And I think this is something that, yeah, said, it's not about just to have a senior person but to give a young a young person the appreciation of a senior person. To run this important channel. K. So I have more empowerment, yeah, and tools. Yeah. Yeah. Exactly. Hi, guys. Hi. My name is Glazione. I'm from Nakeda Saction. A question for for with you. Mhmm. With changes now in terms of investment like a lot of companies cutting back investment. How does how did impact your teams, in your content teams? This this lack of investments in times or they collect more content, maybe even more in the e com part. There we have a struggle in terms of hiring, or having to let people go. Do you that's something that happened during this time with you? We are lucky not to have this restriction I think would it will take concerning the content production. But well, to be honest, Bauchner is a small company and we had to work with low budgets all the time so maybe we're used to it. But I think it's it's it's always about creativity and and maybe starting with the customer and working backwards and see what do I actually need instead of what do all the competitors do and I think you have to find your own way and yeah sometimes you can be successful with with low budgets. Yeah. Oftentimes you're not. Like, reassessing priorities, right, like, somehow? Exactly. Yeah. Yeah. I would agree. So it's all about setting priorities. First, then it's about what you said creativity, and even a small team can be very creative. And for this, I think it's just important to have the team very feel valued and seen and empowered all the time. So because I think pretty is nothing that happens when you are completely stressed out. If that if I may be permitted to add to that well. We do something called the Vogue business index, which is an evaluation of the top sixty global luxury brands. And what I've noticed really interesting is when we evaluate brands for levels of innovation, particularly in tech innovation, but we look at areas like transformation of business models and the metaverse, etcetera. The businesses that have the biggest buggers and biggest revenue not the ones that are ranking highest for innovation. It's the ones that are in the between five hundred and a billion mark or between two hundred and five hundred million. Where they've got smaller teams and more agile, there's less red tape and process for them to get ideas running and that's helped them to innovate and actually fail fast as well and figure out what they need to fix. So that brings us to the end of our panel. Thank you so much to Kirsten and Ben, it's been it's been really interesting hearing from two such different backgrounds and different perspectives across ecommerce and content. I think we did bring the art and science of marketing alive in that conversation. So thank you so much.