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[object Object],[object Object],[object Object]
Profitability of small brands is an issue in large but low profit sectors like Fashion Apparel and Perfume & Cosmetics ,[object Object],[object Object],Growth Rate  (2001-2008) [%] Average Operating Margin [%] Market size 2008[USD bn]  Wine& Champagne Fashion Apparel Leather Goods  & Shoes Jewelry& Watches  Home Acc. Perfume& Cosmetics Luxury goods segment performance  GROWTH IS TO SLOW DOWN IN THE NEXT YEARS
We propose to use a four factors methodology to assess small brands strategy ASSESS SMALL BRANDS STRATEGY 1. Positioning ,[object Object],2. Regional branding ,[object Object],[object Object],4. Cost structure ,[object Object],[object Object],3. Key success factors of the industry ,[object Object],[object Object]
Four distinctive categories defined by relevance of brand image and  product sophistication a re driving the market Global luxury market categories OUT- STANDING OUTSTANDING Relevance of brand image HIGH Relevance of product sophistication HIGH Custom made designer products with finest materials and lavish manufacturing Customized designer products with finest materials and lavish manufacturing  Industrial designer products with finest materials and efficient manufacturing Industrial designer products with basic materials and efficient manufacturing AUTHENTIC LUXURY ENTHUSIASM LUXURY SHOWPLACE   LUXURY BRIDGE LUXURY
Leverage existing competence - address luxury rather than innovation Positioning luxury/premium fragrances AUTHENTIC LUXURY ENTHUSIASM LUXURY SHOWPLACE   LUXURY “ I tried it before, I know about it” “ It’s for people like me” “ It’s good” “ It’s better” “ It’s my brand” Authentic branding Using a true luxury tonality and a matching product OUT- STANDING OUTSTANDING Relevance of brand image HIGH Relevance of product sophistication HIGH
Example with Biotherm – community building Intensity of dialog Time months REMARKS ,[object Object],[object Object],“ I tried it before, I know about it” “ It’s for people like me” “ It’s good” “ It’s better” “ It’s my brand”
CH& Cie strongly believe into reversing the mega brands market maker approach in order to foster smaller brands of the portfolio MARKET MAKER APPROACH Strategy, volume and manufacturer  distribution structure Retailer distribution structure Store delivery frequency In-store processes Availability Sales and Customer Satisfaction Sales and Customer Satisfaction Availability In-store processes Store delivery frequency Retailer distribution structure drives determines requires requires requires requires aligns determines impacts drives Strategy, volume and manufacturer  distribution structure CUSTOMER CENTRIC APPROACH

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B-Case 4

  • 1.
  • 2.
  • 3.
  • 4. Four distinctive categories defined by relevance of brand image and product sophistication a re driving the market Global luxury market categories OUT- STANDING OUTSTANDING Relevance of brand image HIGH Relevance of product sophistication HIGH Custom made designer products with finest materials and lavish manufacturing Customized designer products with finest materials and lavish manufacturing Industrial designer products with finest materials and efficient manufacturing Industrial designer products with basic materials and efficient manufacturing AUTHENTIC LUXURY ENTHUSIASM LUXURY SHOWPLACE LUXURY BRIDGE LUXURY
  • 5. Leverage existing competence - address luxury rather than innovation Positioning luxury/premium fragrances AUTHENTIC LUXURY ENTHUSIASM LUXURY SHOWPLACE LUXURY “ I tried it before, I know about it” “ It’s for people like me” “ It’s good” “ It’s better” “ It’s my brand” Authentic branding Using a true luxury tonality and a matching product OUT- STANDING OUTSTANDING Relevance of brand image HIGH Relevance of product sophistication HIGH
  • 6.
  • 7. CH& Cie strongly believe into reversing the mega brands market maker approach in order to foster smaller brands of the portfolio MARKET MAKER APPROACH Strategy, volume and manufacturer distribution structure Retailer distribution structure Store delivery frequency In-store processes Availability Sales and Customer Satisfaction Sales and Customer Satisfaction Availability In-store processes Store delivery frequency Retailer distribution structure drives determines requires requires requires requires aligns determines impacts drives Strategy, volume and manufacturer distribution structure CUSTOMER CENTRIC APPROACH

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