Alain Li easily conforms to the luxury brand executive stereotype. For one thing, he’s French; for another, he looks the part in his immaculately-cut suit, Hermés tie and A Lange Söhne watch. He’s understated - but rarely, you sense, underestimated. The regional CEO of Richemont Asia-Pacific, however, is facing one of his trickiest tests since he took up the post nearly a year ago. Sitting in his office at the company’s regional headquarters in Hong Kong, he defends worldwide HQ’s decision to align the luxury goods manufacturer’s media account with Publicis Groupe globally.
It’s a move that has been questioned in the industry, not least because of Starcom’s lack of resources and experience with luxury goods brands in Asia. “We would not have moved the business to Starcom if we didn’t think they could handle it,” he says.
“We have every faith that Starcom will make sure it takes on the resources and people to manage an account like Richemont. You have to remember that when we first began working with OMD, it was also in a similar position.”
It’s unlikely that Li will have enjoyed carrying out HQ’s directive, but it’s hard to imagine a temperament better suited to surviving any vilification he may have faced breaking ties with regional partner OMD. Charming and charismatic, Li is one of those rare managers whose first instinct is to reason with a problem, rather than shout at it. He has an immense passion for motor racing and competes in the Porsche Carerra Cup Asia seven rounds a year to “get it out of his system”.
Half Chinese, Li has the classic CV of a Hong Kong-born businessman. He has a degree in chartered accountancy and, for a while, it looked as if he was pursing a well-trodden path, taking on senior roles at pharmaceutical and electronics companies.
But whether it was his Swiss education, or the fact he was already a customer of most of the group’s brands (for proof, look no further than his extensive collection of watches), Li found himself at the helm of several of the most prestigious names in the luxury goods industry, including Cartier, Van Cleef & Arpels, Piaget, IWC, Dunhill, Chloé and Montblanc.
“Each of the brands represents a proud tradition of style and quality which we are committed to preserving,” he says, taking great pains to explain the craftsmanship that goes into producing some of the group’s elegant watches and jewellery.
But despite sharing the same parent, the 16 brands Richemont houses are in many ways rivals. Li’s job is as much about getting them all on the same page when it comes to strategy as it is about leveraging their clout for group-wide benefits. Perhaps most challenging of all is his directive to love each equally. Indeed, even before we’ve sat down, Li is quick to stress that he can’t — under any circumstances — talk specifically about any of the individual brands.
What he is keen to talk about, however, is China. Here is a market, he says, that looks set to overshine Japan, and luxury brands — Richemont included — are anxious not to be left out.
“When I joined, it was just a couple of weeks after the Richemont Chinese entity was set up, which opened a lot of doors for us to do things under our own name, such as direct retail, building a regional platform to serve the brands and our local distributors and customers better,” notes Li, whose former company, under his leadership, was the first Hong Kong operation to obtain a retail licence under Cepa.
While several of the Richemont brands, such as Dunhill and Montblanc, have had a presence in China for many years, a local entity will, crucially, allow the group to internalise its customer service. “This is an important aspect of our brands and builds loyalty in Asia,” Li adds.
That loyalty seems to be strengthening. Alfred Dunhill reported double-digit sales growth in key Asian markets, aided by the integration of retail activities in China although sales growth in Japan was modest. Sales at Chloé, meanwhile, increased by 60 per cent, and all of the group’s specialist watchmakers also reported double-digit sales growth.
“I imagine much of those sales are coming from my wife and daughters,” he quips. “I have real petrol heads on my hands and our brands are the only things they love more than racing.”
Alain Li’s CV
2006 Regional chief executive, Richemont Asia-Pacific
2001 Group chief financial officer, IDT International
1992 Vice-president, Riso Europe
1991 Controller, European operations, AB Dick — Itek Group
1987 Director, business planning — Europe, Zimmer International
1981 Trainee accountant, Touche Ross, London
