MBS Inspiration
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The MBS Group
is one of the world’s leading executive search firms operating exclusively in Retail, Consumer and relevant technologies, and the most successful sector-specialist firm in the UK
Thriving Through Change - The Rise of Alexander McQueen
In the last two years, the McQueen brand has been in the headlines of the world’s media for hugely contrasting reasons: from untimely death of Lee Alexander McQueen in February 2010 and doubts as to whether the brand would be able to continue, to April this year, when the world was left in no doubt of the creative potential of McQueen when it was revealed that Kate Middleton had chosen the label to create her wedding dress for her marriage to Prince William.
With those events in mind, it was fascinating to hear Jonathan Akeroyd, CEO of the company in a private breakfast organised by The MBS Group, to hear about his experience of taking on a relatively small brand within the Gucci empire and developing its potential.
Jonathan began by describing how he started his career at Harrods, where he rose from store manager to merchandise director and really got to understand how brands work “I enjoyed being there very much but, after 15 years, I knew the rhythm of the place and it was time to move on.”
Gucci invited him to be CEO at Alexander McQueen, a British brand with big potential and a huge challenge: to become profitable. “On my first day there I thought I’d made a terrible mistake. The office was a typically creative space, a bit shambolic, and needed serious structure. I also discovered the depth of the problems we had to deal with. The first goal was to break even.”
The brand did indeed break even in 2007, helped by the McQ licensing deal. The team was working well and Lee was delighted to have Sarah Burton, a designer that had joined straight from college, working closely with him. At that time the McQueen market was 70% wholesale and 30% retail and the brand did suffer in the recession of 2008-9 progress dropped back. However, by the end of 2009 the momentum was restored and the business was growing well.
In the morning of 11th February 2010, the dreadful news broke that Lee had died. “We had to manage the situation,” says Akeroyd. “On the one hand we were dealing with the terrible loss of a friend and colleague and had to work through the personal grief. On the other we had to start making decisions as the team needed leadership. There were questions about whether the brand should even go on but I knew instinctively that it should. We were clear in our direction. We could see what Lee had left for us and what we could build on. It also seemed entirely natural that Sarah should take over as creative director – she knew the brand and she had worked so closely with Lee.”
Just as the company was coming to terms with its new direction, the team was contacted by Anna Wintour. She suggested an opportunity to celebrate Alexander McQueen’s work and felt strongly that his work should be archived, culminating in a show at the Met in New York. It was an investment for the company but a unique opportunity to showcase the brand and mark the anniversary of Lee’s death, so it was agreed that the show should go ahead in May 2011.
The second extraordinary piece of luck was for the brand to be chosen by the then Kate Middleton to design her wedding dress. Kate was very drawn to working with Sarah Burton. Of course, the wedding dress was designed under the most intense secrecy with only 15 people in the company knew that it was being made. In the spring of 2011, these two pieces of good luck came together, with intense global interest in both the royal wedding and the opening of the show at the Met in May. The museum has never before experienced such crowds of people so eager see a collection, and it is the second most visited exhibition after the Van Gogh show. The opening hours have been extended to meet demand.
This success has given the brand renewed confidence when looking at the future. As well as a ‘blue-sky’ 2020 planning exercise, McQueen plans to expand the number of stores continue to develop the ready-to-wear collections as well as the couture business, and capitalise on the popularity of the accessories. The McQueen silk scarves, with their distinctive skull designs, are driving growth and have become as sought after as the Hermes scarves.
There are also big growth plans for McQ now that the label has returned in-house and under the guidance of Sarah Burton.
When asked about Sarah Burton’s role in the company, Akeroyd explained that, although she might have become the most sought after creative director in the world, her loyalty is to the brand.
“At Alexander McQueen, we have freedom within a framework,” says Akeroyd of his relationship with Gucci. “We have buy-in from the group but it’s also important to be driven by the very high standards which Lee instigated, and which Sarah and the team insist on maintaining. There is no question of compromising the level of craftsmanship which this brand stands for, and that is a strength.”
Interestingly, their turnover has doubled since 2009 and retail sales are up by 70% since the royal wedding. With an impressive team in place, and in Akeroyd’s safe hands, there is no reason why the brand should not continue to go from strength to strength.
Category:
Event: Panel debate
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