The definition of luxury has never been limited to a glamorous appearance or expensive goods, but also a profound interpretation of aesthetics, culture and self-expression. As a flagship brand of Canadian luxury retail, Holt Renfrew has been serving customers for more than 187 years. Throughout this long history, how has it continued to keep pace with the times and still retain its unique charm? One of the answers comes from the brand’s CEO Sebastian Picardo.
Sebastian Picardo was born in Buenos Aires, Argentina. He did not grow up in a luxurious environment, but an internship experience in his youth gave him a deep insight into luxury and brand values. With his passion for learning and global vision, he has brought new possibilities to the luxury industry from Hong Kong to Canada. Now, let us uncover the warmth and wisdom behind luxury through his story.
Was there a moment in your childhood or teenage years when you first felt the allure of luxury? How did this influence your subsequent view of brands?
I grew up in Buenos Aires, Argentina, in a relatively modest family. The first time I truly felt the charm of luxury was during an internship in my late teens. One day, I was asked to deliver a document to the office of the company chairman. It was an exclusive private floor with direct elevator access, and when I stepped into the space, I was immediately drawn to the exquisite furniture and artwork. He happened to be passing by, wearing a high-quality suit, his leather shoes were shiny as new, and he had an exquisite watch on his wrist. Everything about him showed his perfect taste and style.
While I’m not sure if this directly influences my perception of the brand, when I think of “luxury” I think of beauty, high quality, and personal taste. Whether it is a brand, product or experience, it must be able to connect with the customer's values, aesthetics and preferences. This is the true luxury.
If you could go back to the beginning of your career, what advice would you give to yourself? Is there a mistake that became the best lesson you learned in your career?
Overall, I don't have any major regrets. They say hindsight is 20/20, and if I could talk to my younger self, I’m sure I could provide some insights that would have helped me better handle the situation. However, knowledge is different from wisdom, and I believe that one must experience things in life before one can truly learn how to deal with them. I am very lucky and have a passion for learning. I often read, talk to people, and reflect on what I do well and what I need to improve. I learn something new every day and often wonder if there will ever be a day when this learning will stop. Even if I achieve personal mastery one day, I still believe that I will continue to learn, grow, and develop.
As a business leader, what daily habits do you have that help you stay creative? What will you be like after get off work? Do you visit your own stores to observe secretly?
I am a curious person and I like to observe the things around me, both online and offline. I travel a lot for work or pleasure, and these experiences give me countless inspirations. I pay special attention to the service on airplanes, the details in hotels, the experience in restaurants, and the atmosphere in stores. Whenever I come across something that inspires me, I share it with the team so that they can take it into consideration as well.
After get off work, if I’m in Toronto, I go to the gym almost every day to work out. In the summer, I like to run outdoors in the morning to energize the day. On weekends, I try to spend time with my family and friends. I believe that unplugging from work and slowing down is an important way to restore energy and refocus. As for whether I would secretly visit my own stores? The answer is yes! I often visit our stores unannounced and keep an eye on our website and social media. I think it's very important to stay connected to reality to ensure our services and products are consistent with our customers' expectations.
In this era where luxury brands need to understand consumers better, what adjustments do you think luxury brands need to make to be consistent with the values of contemporary customers?
Customers now have many choices and they prefer to connect with brands whose values resonate with them. They want to trust the brand and be assured that the products and services provided align with their values. We put a lot of effort into this. One example of something I’m proud of is that we were the first company in Canada’s retail sector to receive Science Based Target certification and commit to achieving net zero emissions by 2040, 10 years ahead of the Paris Agreement. As part of this commitment, we’ve also made difficult decisions, such as stopping the sale of fur from 2022.
At the same time, customers also want to have a unique and special experience, which is part of self-expression. For example, we recently launched the beloved SKIMS brand, and we are the only retailer in Canada where the brand can be purchased in-store. This makes our customers feel special. We also collaborated with Stone Island in our Montreal store to showcase a fascinating archival exhibition that looks back at the brand’s 40-plus years of material innovation.
Chinese consumers’ tastes in luxury goods are becoming increasingly diverse. How do you think we can respect tradition while catering to the younger generation? Is there any moment from the Chinese market that particularly touched you?
We have a very large Chinese customer base in Vancouver and Toronto. I especially enjoyed the celebrations we had during the Chinese New Year, such as the dragon and lion dance performances. I usually bring my children along to participate, as these traditional activities remind me of my time in Hong Kong and are very meaningful. In addition, the behavior of Chinese consumers changes very quickly and they are extremely proficient in the use of digital technology, which prompts us to constantly improve ourselves and strive to anticipate their needs and expectations.
As technology and digitisation are changing the luxury retail model, how do you keep Holt Renfrew ‘human’? Do you have a special story to share?
It’s all about building relationships. Building real and sincere relationships with customers and employees is a topic that our team discusses often. Without strong emotional connections, we have nothing. We use technology to engage with customers and provide the team with tools to communicate with them. But as a retailer, maintaining a human connection with all stakeholders is critical to our success.
Interestingly, I recently visited our store team. We have had “Ask Me Anything” sessions where employees can ask our senior leaders any question, and it’s been very effective. At one of the stores, an employee shared a story about an effective strategy he used to build new relationships: handing out personal business cards. This story resonated deeply with me because one, it’s so simple and two, in this day and age of technology and change happening so quickly, it’s a way to connect with people and give them something physical that they can touch and hold onto.
There’s also a heartwarming story about family and the important role we play in our customers’ lives. For example, we knew that a customer had a birthday coming up, and she was very lonely and having a difficult time during the pandemic. We planned a surprise birthday party for her in the store with her favorite cake, flowers and several staff members involved, and ultimately managed to have a beautiful celebration that made this customer very happy. She was so excited that she shed tears, and she recorded the whole scene and sent it to her family far away. Fortunately, her mother was able to return to Canada the following year and made a point of coming to our store with her on her birthday. Her mother burst into tears on the spot and thanked us for taking care of her daughter. This customer loved these special moments, as did many others. We believe this approach is a true differentiator that allows us to build deep relationships with customers in the communities in which we operate, keeping them coming back to us time and time again.
