Interview with Juan Pablo Acevedo (MSc in Management & Leadership, 2023), Founder of Galeano Studio

After Economics and Business Intelligence studies in Medellín, Colombia, and an MSc at EDHEC, Juan Pablo Acevedo founded his own consulting and design business in Miami: Galeano Studio. The switch in the luxury industry across all fields, from retail and fashion to food services and wellness, makes his work even more diverse than before, as the globalised map of manufacturers and customers is constantly changing, and the definition of luxury itself has broadened. Here he shares his thoughts and reflects on the hopes that have come true with his studio, which covers every step in a luxury company’s path towards attracting customers.

Can you describe your current position and responsibilities?

As the founder of a startup, I’m the main investor, responsible for sales, finance and human resources. My role is to keep everyone motivated and innovating in our small team of 7. Every person counts! Galeano helps businesses position themselves in the premium and luxury industries so that their customers are willing to pay more for their services or products. We analyse and support these companies in their strategy and business model, the look and feel of the product – everything necessary for a client to really trust and believe that they are buying premium or luxury. We support this entire development. In addition to our business strategy team, we have a creative team, which means we can also offer interior design services, because we believe that a company must be consistent across between all of its component parts. Luxury implies a business model that values quality, craftsmanship and perfection in execution. It’s all about the details.

How important is it for companies to ensure that their interior spaces reflect their identity?

Consumers today are much better informed. They can find out where and how the product is made. In a physical space they can really feel the brand’s aura, so it’s not only a place where you can showcase your product or where they go to buy items, but also where they experience a concept. One does not buy luxury to meet a need; the customer expects superior quality. This means they need to touch and feel the product. Many people nowadays, after seeing a product online, then travel to buy it in a physical space where they can confirm that what you are saying is true and that it is worth the price. People want to feel valued, be part of the brand or concept, and that’s why it’s so important to keep a physical location, even if customers then go back home and eventually order online later. It works both ways.

What are your main challenges as an entrepreneur in luxury?

I think our main challenge is convincing some clients that we’ve come up with the right strategy for them. Sometimes business owners are hesitant about making changes to sales, pricing, communication, or investment strategies. In cities like Paris, Miami or New York, people understand that there is a lot of money behind the luxury industry so they are more comfortable investing. In countries like Colombia this is relatively new; a lot of people are used to spending abroad, and it can be harder to convince local hotels or restaurants that clients will pay for luxury, as they did not grow up in this culture, unlike Europeans. I wasn’t taught about luxury brand management in business schools in Colombia, for example! When I studied at EDHEC, I discovered the fundamentals of luxury as a real industry in Europe, and I wanted to bring this knowledge to the US and Latin America. 

Which rising countries are the most promising in the luxury industry?

China has driven enormous growth for European houses of luxury. I believe in India, which is creating a strong middle class. Indians love their culture and local designers, but they are also very open to travelling and discovering new things. Latin America is changing the way it projects itself to the world too. The difficult times of Colombia, marked by political instability and violence, are now behind us. More people are travelling to these countries, more wealth is being created there, more foreign investment is flowing in. I think Mexico, Colombia and Brazil are very interesting locations for luxury industries. The situation in Venezuela some decades ago was the best for luxury, because there was prosperity and enormous wealth, but today it is a completely different situation. We need to be careful and consider each country independently.

Luxury now includes art foundations and NFTs. How do you handle this broader definition in your strategy?

Luxury is a vast world. European houses of luxury have been around for decades, and rely a lot on heritage, craftsmanship, and the storytelling of the founders and initial creators, but they need to innovate and keep relevant as well, for example, when the metaverse started to gain in popularity, many of these companies invested in it. What defines luxury in India is completely different from what it is in France or in Colombia. You need to understand the market, the clients’ fundamentals and values and the product or service category in order to deliver the right solution. There are different ranges of luxury: top-notch and super-expensive brands, or even high-end and accessible luxury that is still considered luxury. You cannot be radical and say that a product must be produced or sold in a specific place to be considered luxury, as there is a huge range of customers and industries. For us to deliver solutions to our clients is more about identifying the unique proposition of each business and the market space they can fit into. The biggest challenge right now is trying to understand new consumers and how to talk to them, for example Gen Z or millennials, while also holding onto the old consumer. The generational gap is completely different in terms of values and shopping habits.

What makes Miami so peculiar within the luxury industry?

Miami is a very wealthy city. The conditions it offers attract many wealthy individuals to live there instead of other cities in the US or Latin America. The same city boasts a lot of different spaces where you can find the same luxury brands. Miami is also a major tourist destination, especially through the cruising industry and thanks to its climate and beaches. International tourists also go there to shop. Latin American countries don’t have a lot of luxury stores so they travel to Miami because it’s closer than Europe, and many East Coasters also spend the winter in Miami. The third point concerns the social nature of people in Miami, as a significant part of luxury lies in how it enhances one’s social image. In the US, people value luxury cars, stylish homes, and designer labels. It's a way of showing success, and that's another reasons they’re incentivised to buy those brands. Then there’s the fact that crypto assets have gained a lot of value in the last couple of years in Miami. Crypto investors are more risk-takers than the investors in traditional financial assets. That means they’re more motivated to invest in watches and luxury cars, rather than in the more traditional funds or shares.

What are the capitals of luxury in the world today?

Is a capital defined by where the consumer is, where the production is, or where the creativity is? Our globalised world is affecting the industry. Maybe the headquarters are in Europe, but they are taking ideas from India, Africa, Latin America, and maybe the consumer is in the US, Latin America, or China. Secondly, I think new generations value Eurocentric luxury less and are more open to buying locally. Then it's not only about where the product comes from, but also about the values and principles behind the product, and whether they align with the way you like to live. Luxury can even be an amazing spa experience for the weekend in their city, or sharing a date in a really nice restaurant, so for me it is complex to define the capitals of luxury when it’s such a broad concept.

Does your role on the Skål board – you’re the youngest member – give you an advantage in the luxury industry?

Skål is the largest travel community worldwide for business people with links to the hospitality industry. There are a lot of opportunities there, especially in the luxury industry. We share knowledge and establish connections between cities and countries. Many Skål members are managers of luxury hotels or part of the cruising industry, which has enjoyed strong growth recently. The major hotel chains like Mandarin Oriental, Aman, Ritz-Carlton, or Four Seasons are now offering cruises. Skål has very experienced people, and it’s a privilege to be surrounded by such entrepreneurs and business people. But at the same time, the communication between different generations can be challenging, especially when it comes to understanding what new travellers are looking for, how the industry should evolve, and how to communicate effectively today.  Sometimes youth is perceived as a lack of experience, which isn’t necessarily true!