Elle saab


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Elle saab

  2. 2. ABOUT SAAB  Born in Beirut  Developed an interest of dress making in early age  At age nine, he made clothes of his sisters with the use of curtains and table clothes  Opened his first atelier in Beirut in 1982  Began designing luxurious evening gowns and wedding dresses
  3. 3. AS A DESIGNER  Focused on Haute Couture  In the 1990s, moved to a larger atelier in Beirut and organized exclusive fashion shows in Europe  Opened a salon and showroom in Paris in 2000 and a flagship store in Paris opened in March 2007  ES opened its first U.K. boutique at Harrods in July 2008  In June 2010, he opened its first flagship store in Dubai’s prestigious Dubai Mall
  4. 4. GOAL OF THE COMPANY "Attract, select and maintain customers who place significance on high-end, one-of-a-kind designs made from the finest fabrics and materials”
  5. 5. EXHIBITS  Exhibit 2 highlights the quantity of millionaires by country  World’s high-net-worth individuals (HNWI) grew 17% to 10 million in 2009 despite a contraction in world gross domestic product (GDP).  The highest change is shown in Australia while other important figure to be mentioned is 23.8% in United Kingdom  Exhibit 3 shows the public relation and marketing expense as percentage of sale of year 2008. The highest amount is 87.4% of Fashion Shows, which means that highest number of advertisement is done through fashion shows
  6. 6.  Exhibit 4 shows that in 2006 Haute Couture; the highly personalized and customized product of the brand made the major chunk of the sales revenue making 60 percent of the sales as compared to 40 percent made by ready to wear (RTW) and accessories.  After 2006 there was a change in the break-up of the sales revenue as RTW brought in higher sales as compared to Haute Couture  In 2007 RTW accounted for 54 percent of the total sales whereas Haute Couture made 46 percent and the following year that is 2008, RTW made 59 percent and Haute Couture 41 percent
  7. 7. Strengths  Well established brand.  Direct ownership of stores (except for Dubai)  One of the few certified couture house Weaknesses  Weak presence in multi brand shops  Specifically restricted to luxury clothing line  Poor Current Ratio  Still low sales in Asia and Russia
  8. 8. Opportunities  Rise in high-net-worth-individuals (HNWI)  Immense potential in Asia (Increasing number of millionaires)  Online sale of RTW Threats  Decline in Haute Couture  Tapping the affluent middle class  Changing clothing trends  To mix luxury and affordability  Casual dressing on the rise  Upcoming competitors in RTW line
  9. 9. PROBLEMS  Change in trends  In US, ladies endorsed the brand by wearing couture day wear to luncheons, parties and events while women in the Middle east and Russia did not showcase these dresses thus defeating the purpose of advertisement through word of mouth  Change in preferences and trends which were changing from class unique handmade clothing to clothing line which was more casual  Competitors were shifting into the ready to wear field and giving tough time to the company
  10. 10. SOLUTIONS  The industry is facing a downward trend and this is an external factor to ES, thus combating this fall requires an extra effort.  Opening a slightly less extravagant line, within the existing haute couture line, can provide a cushion with the new line  On the ready to wear part, the company can beat other new competitors by increasing its volume as it is offering its ready to wear line at selected places only
  11. 11.  There was an upsurge in HNWI from year 2008 to 2009, especially in China, where millionaires grew by 31% from 2008 to 2009. Thus, China is a lucrative market for ES to tap  ES should also adopt an online business model for the RTW line. Prospective customers should be able to buy select RTW things online  There is a shift in trend from luxury clothing to more casual clothing where Customers nowadays are well informed and seek value for money in every purchase; hence ES should seek to expand his RTW line
  12. 12. CONCLUSION AND RECOMMENDATIONS  Since Elie Saab is planning for further expansion both globally and their product portfolio they need to be extra cautious about it because the brand name is at stake  Asian market serves as a potential interest but there are number of other factors that have to be considered including the distribution channel  As far as the product portfolio is concerned the management should keep adding products but they need to keep Haute Couture as their core product since the brand is known from this highly customized premium offering  From an advertising perspective the company should make more use of celebrity endorsements to further enhance its image as a premium product
  13. 13. THANK YOU