NYU Stern is the first and only full-time accelerated MBA Program dedicated to luxury and retail in the US and is leading the convening of brands around the world on emerging trends and opportunities in the sector. During the Program’s inaugural industry conference at Villa La Pietra, near Florence, Italy, Professor Thomaї Serdari engaged with luxury brands and learned what’s top of mind for them. She shares a deep expertise as academic director of Stern’s MBA program in luxury and retail, and is a media go-to for industry insights and trends. We chatted with Professor Serdari about a number of topics and why MBAs are now a coveted asset in the evolving luxury and retail industry.

Conference participants enjoying a tour of Villa La Pietra, in Italy, where the inaugural conference “Unlocking New Value in the Luxury Sector” was held in January 2025

Q&A with Professor Thomaï Serdari

What makes a brand an authentic luxury brand?

Most basically, a brand needs a great quality product. After that, you need to create a vision and an aspiration. Ralph Lauren was originally a necktie company, then someone figured out the nuances that create luxury. Today, the brand has truly solidified its presence with quality products, made at the best factories with the best materials, plus the creative vision that communicates a dream and great service. With the product, the brand, and the service, a luxury brand makes a coherent presentation in the marketplace.

Where are the most significant opportunities for growth in the luxury/retail sector? 

The next opportunity is definitely around customer service. Post-pandemic, as people are returning to brick-and-mortar stores from online shopping, that relationship is a little rusty. Luxury brands need to have customer service in place, but also brand experiences that create a very aspirational proposition so that the customer wants to be wherever the brand is. The recent focus has been on efficiency, especially with American companies, but now luxury brands must focus on the experience at every point in the customer journey. For example, sending an online order in a plain box without anything to enhance the brand experience is a lost opportunity. Few brands have successfully bridged the physical and digital shopping experiences. 

What’s on the minds of the industry leaders at the conference that you spearheaded in Italy?

The word of the moment is uncertainty. They’re concerned about the geopolitical landscape over the next few years and beyond, as well as the fact that the big markets—in China and the US—haven’t been spending so much, leading to a downturn in the luxury sector. Retail is picking up in the US since the year-end holidays, but international spending remains down. For manufacturers, this uncertainty means they don’t know if there is an order coming in, and it’s challenging to operate in such an environment.

Are luxury brands starting to pay attention to the virtual reality market, and does it matter?

It does matter, because the most important saying in luxury is “advertise to those to whom you’re not already selling.” So if you think of an 8- or 10-year-old playing in the Metaverse and they have the opportunity to buy a $10 “skin” with a Gucci logo for their avatar, they will because they recognize it from their family and their environment. Another trend is that younger people are returning to tactile experiences, which they find novel, like vinyl records, so that’s good for luxury brands. Those who have invested in artists and craftsmen and in creating an exceptional product will find ways to create something exceptional in the Metaverse as well. Creativity trumps everything.

Now more than ever, consumers demand transparency and authenticity from brands. Can brands resolve the tension between fast fashion and sustainability?

Fast fashion was an interesting business model in the last 20 years, when everyone was pursuing volume. Now companies understand that volume is not good for the environment, but they want to pursue value somewhere. Their option is to innovate their business models. Instead of only having new merchandise on your digital platform, you could add a platform for resale merchandise in-house under your own brand. Eileen Fisher does this well with its Renew brand, which offers “gently worn” pieces at more affordable prices.

Over the past decade, luxury companies have evolved beyond a “creative first” sector and have embraced MBA talent. What skills do MBAs bring to the luxury table?

MBAs, compared to tradespeople, have a more holistic view of what is happening in the industry and how developments in an adjacent industry may impact what's happening in their own job or brand. If you come from a fashion management program, you're mainly interested in design and in making that design commercial. That's a very different proposition from what we offer at Stern. We educate our students to be thinkers and leaders at the table who can see the big picture.

Can you speak to the ways alumni are involved with the luxury and retail MBA program?

We have an Alumni-in-Residence program, for one thing, plus positions on that program’s board. As our graduates advance in their own careers, they find it’s helpful for them to be mentors to others because that makes them better managers at their own company, and our program gives them those opportunities. In a very real sense, we’re still helping them develop, but in a much more hands-off way.

Several retailers are shutting down stores. What do brands need to do to bring back customers?

The in-person shopping experience post-pandemic requires a strong, focused effort. I admire how Nordstrom does it. They are about relationships and creating community, and in NYC, they activate their store in the off hours for networking events, concerts, and more. They also pay attention to who their regional customers are and merchandise accordingly, fitting in with local culture. As a whole, they have truly mastered customer service.

Are American brands lagging behind in the luxury space?

American brands do great retailing and commerce, while the Europeans are the guardians of luxury as a concept–exclusivity, glamour, and quality–paying attention to how products are made. The two markets must work together. In America we like to consume, love novelty, and come up with new technology. But we don’t understand how to create excellent-quality products. That’s why American luxury brands manufacture in Europe. There are pockets of excellence in the US, but there are far more in Europe.