Managing Mytheresa: Michael Kliger's Approach to Branding and Creating Emotional Connections

Mytheresa CEO, Michael Kliger, has an optimistic perspective on the company's grasp on the luxury e-commerce market despite current challenges within the fashion and luxury sectors. 

Kliger - the man at the helm of Mytheresa - believes that, in spite of online businesses experiencing a rough patch in the stock market, Mytheresa is on track to achieve double-digit growth for the year. This positive outlook is underpinned by a series of significant strategies including stellar German efficiency, partnerships with popular brands, and a keen focus on its high-value customers. 

The brand also aims to create an emotional connection with its customers through hosting exclusive events - such as an upcoming soirée in Vienna in collaboration with the brand Miu Miu - which one of many strategies designed to maintain its status as a luxury brand during uncertain times. Kliger discusses future plans for the brand, including two special events in Paris with Givenchy and in Vienna with Miu Miu which will occur at the opulent Belvedere Palace. Both events are designed to blend clients, influencers, and press to create a meaningful, brand-representative experience. 

Such exclusive experiences are paired with careful marketing strategies - each blend is essential to its target audience, customer loyalty, and branding, explains Kliger. In an initiative to maintain its position as a luxury brand, Mytheresa foots the bill for all client expenses upon landing in the event city. 

This was the case with the Dolce & Gabbana for Mytheresa 80-piece capsule collection that was presented on May 24, featuring 50 runway models in Portofino, and then sold online the following day. Kliger stresses the brand's commitment to creating an emotional connection with its customers, as was demonstrated through their five-week pop-up in East Hampton during the summer and a four-week pop-up due to open in LA next month. 

The brand's focus on collaborating on and selling joint products was underlined by an October capsule launch with Brunello Cucinelli. Kliger seems optimistic about the brand's growth – evident by the new 55,000 square-meter distribution center they have opened in Leipzig airport. However, despite a substantial 15% increase in annual turnover, Mytheresa's stock was hit hard on the New York market, having fallen from its first IPO price of $26 in January 2021 to €3.20 in the past week. 

Despite these challenges, Kliger maintains an optimistic stance and attributes future success to excellent customer service and creating unique moments that respect customers' time. Admitting that 2023 has been a challenging year, he sees brands that focus on top customers (like Brunello Cucinelli) succeeding. However, despite Burberry's struggles, Kliger sees the potential magic from its new director, Daniel Lee. Kliger doesn't fear major brands increasing their percentage of digital sales – viewing Mytheresa's focus on 'high-spenders' as an advantage. The company's top 3.8% of customers account for nearly 39% of the business. 

Moreover, new areas like skiwear are emerging as successful categories, with Balenciaga, Gucci, and Pucci added to the brand's offering.