A look into the competitive landscape of the Departmental store Printemps Paris with respect to Galeries Lafayette.

1. Paris’ Printemps Department Store
A Fight for Survival
IFA Paris
MBA Luxury Brand Management
Vivek Sharma
Strategic Marketing
Dr. Pierre X. Camps
1

2. C
O
N
T
E
N
T
S
• The Company
• Grand Magasins
• Department stores in Paris
• Marketing Mix
• Competitive Landscape
• The Situation now
• Challenges & Answer
• SWOT analysis
• Market analysis
• Target Market and Trends
• Competitor analysis
• Recommendations
• Conclusion
• References
2
Paris’
Printemps
Department
store :
A fight for
survival
3-4
5
6
7-11
12-13
14-15
16-17
18-19
20-21
22-25
26-27
28-29
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31-32

3. The Company
• Founded in November 3rd 1865 by Jules
Jaluzot and Jean-Alfred Duclos, the French
department store Le Printemps.
• The Flagship store is located on Boulevard
Haussmann at the 9th arrondissment of
Paris along with well-known departmental
stores like Le Bon Marche and Galeries
Lafayette.
• To clear out the outdated stock, they
pioneered in the idea of discount sales and
boosted their sales with window models to
display the latest Fashions.
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Paris’
Printemps
Department
store :
A fight for
survival

4. • Economies of scale, to provide high quality goods at prices that were affordable to the rising
Middle class. Highly beneficial move by the business.
• They used the strategy of marking the items with set prices to avoid the haggling based on
the customer appearance that was standard in retail shopping.
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Paris’
Printemps
Department
store :
A fight for
survival

5. Grand Magasins
• A Department store or Grand Magasin are typically words used to describe a retail
establishment in that offers a large range of consumer goods in different product categories.
• With their introduction in the 19th century, these departmental stores changed the shopping
habits of the people and had a huge impact on how they perceived luxury and its service.
• The rising economic expansion and the increasing number of affluent middle-class in size and
wealth was led by the Industrial revolution. This period garnered the growth of the society and
led to the introduction of new market and with a high Disposable income to people now, they
were more inclined to the practice of window shopping.
• Emerging entrepreneurs decided to make use of the marketing techniques and introduced the
concept of department stores to match the growing needs from the people for a more
convenient way of shopping. This urbanized the social environment all round the globe and led
to a culture of consumption and changing fashion, and thus, a new Retail revolution.
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Paris’
Printemps
Department
store :
A fight for
survival

6. Department stores in
Paris
• For travellers from near and far, the three legendary monuments
to shopping – Le Bon Marche, Au Printemps and Galeries
Lafayette have provided them with the promise of an untold and
accessible treasure. These elegant grande dames are of utmost
importance to the history of Paris with so much to display about
the evolution of Paris itself.
• The Industrial revolution, 1864 paved the way for new channels
for sales in the capital. The mid 19th century saw the demolition of
medieval shops to give way to advanced architectural commercial
premises.
• A new commercial space to target the new emerging clientele
during the revolution namely ‘the Middle class’. The women being
the primary target and there was a equal concentration on
clientele of men and children as well.
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Paris’
Printemps
Department
store :
A fight for
survival

7. Product Marketing Mix
Key seasonal
pieces from the
most exciting and
sought- after
Designers of the
moment.
Urban collection for
men for every
occasion, the
everything a man
needs for everyday
wear under one Roof.
‘Selection of eye- catching
creations to mix and match
for a modern look, provided
by French and international
brands.’
The luxury watch
department, a genuine
paradise for watch
enthusiasts. Little gems of
design, expertise and
technology.
Classic, Cool
and Urban
collection of
Shoes and
Trainers.
The opportunity of paying
in your own currency
when using a VISA,
MasterCard or Maestro
credit card.
CUREENCY Conversion
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Paris’
Printemps
Department
store :
A fight for
survival

8. Price
Use of different pricing concepts to:
• Grasp focus of customers
• Alter purchase behaviour through
different discount strategies.
Business model includes procurement of products
from across the globe.
No manufacturing only selling Procurement in large quantities to benefit the
Economies of scale.
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Paris’
Printemps
Department
store :
A fight for
survival

9. Place
• Sale through Brick and Mortar stores
22 Stores including places like Andorra.
Ginza, Tokyo Saudi Arabia and Shanghai
apart from different cities in France.
• Printemps stores in Paris
• Printemps Style (9 floors)
• Printemps Home and Beauty (11
floors)
• Printemps for Men
(7 floors)
9
• Printemps Haussmann Store
• Printemps du Louvre
• Printemps – Italie Deux
• Divisions
(Haussmann Store)
Paris’
Printemps
Department
store :
A fight for
survival

10. Promotion
• In-Store promotional
activities – Upfront
placement of brands on
Discount
• Heavy Discount on select
products from previous
seasons
• Limited Discount periods to
capture the maximum
customers (Pushing the
customer to make
immediate purchases)
• Gift cards availability: In
person gift cards, Online gift
cards
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Paris’
Printemps
Department
store :
A fight for
survival

11. • Online placements of upcoming
news of the store through Twitter,
Instagram and Facebook.
• Promotional Window displays all round the
Department store
• Innovative attractions to communicate with
customers and increase brand retention
among them.
Sneaker renovation
Chocolate Jewel box
By well known Chocolatier.
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Paris’
Printemps
Department
store :
A fight for
survival

12. Competitive Landscape
Personal Shopping: Private Salon, Expert Stylists, Service
by appointment
Gift Cards: Facilities to enjoy the services of prepaid gift
cards for friends and family, usage of gift cards
during marriage arrangements provided by the
store
Customisation for: Engravings or Jewel additions on any
personal needs article bought from the store
Printemps Voyage: Personalised travel services at
dedicated Travel Agencies at
Haussmann and Nation Store
exclusively
Website: www.printempsvoyage.com
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Paris’
Printemps
Department
store :
A fight for
survival

13. Gourmet Services: Cafes like Pouchkine, Laduree,
Deli- Ciex and Le Brasserie Printemps
Beauty area: Hairdressers, Spa, Belle De Jour
(Tailormade makeup Sessions)
Printania: Card swipes Bonus to earn points (to be used
on next purchases
Categories: Silver, Rubine, Gold and Platinum
Mobile Application: Dedicated mobile application to find
Brands, services and restaurants at
Haussmann store.
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Paris’
Printemps
Department
store :
A fight for
survival

14. The Situation now
• The glance at the various factors that
distinguish Printemps from its competitors
shows the commitment of the store, but in
market there are always competitors who
are trying to do better.
• Possessing these competitive advantages
only introduces the need to identify the
Competitors in a broader perspective.
• Here the main competitor identified for Printemps
is Galeries Lafayette.
• Through its objectives of spreading the "French Art
of Living" and promotion of designers, they
welcome French and international clients in a
unique experience with fashion's creative energy
rooted with at par customer services.
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Paris’
Printemps
Department
store :
A fight for
survival

15. • Premium Clientele: Printemps has been a store that provides a premium experience to their
clients at every encounter. Due to this, it always attracts the premium customers and has a more
upmarket recognition amongst the customer base.
• With the ownership of Divine Investments SA, Printemps has been seeing a lot of developments
on the store level. New expansion strategies for the stores are underway. The new store opening
of Printemps de l'Homme in January 2017 at rue du Havre by the Haussmann store is of vital
importance. Indicating the market of Men’s fashion to be of utmost importance.
• With a 5 year strategy by the group, entitled as HERMES i.e. Homme, Expérience, Restauration,
Maison-beauté, Elégance-modernité, Service, they plan to renovate the whole brand.
This planning by the group is sure to benefit the group financially and will help to tackle the
challenges from the competitors.
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Paris’
Printemps
Department
store :
A fight for
survival

16. Challenges
• Less choices for the customers hence, stopping the
inflow of customers belonging to different budget lines.
• Provision of similar customer oriented services from
Galeries Lafayette, but considering the Value proposition
obtained from the customers, services here are more
diverse and more suited to customers from different
buying strata.
• Business expansions a core part of this group and a way
to connect with people and inculcate better their
commitments towards the society. For instance,
construction of innovative campus to support the Institut
d’Etudes politiques de Paris.
• Opening up Galeries Lafayette
Outlet store, providing discounted
products all round the year from
the collection of previous season
of a wide variety of brands. It was
one of the first such concept ever
taken place.
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Paris’
Printemps
Department
store :
A fight for
survival

17. • To sum up, there are some of the reason why Printemps has been doing well and there are always
some reason why a brand does not do good. It is always important to determine the key
determinants that influence the customers and make them value the offerings made by our
competitors.
• In regards to this, it is vital to note the competitor on their Operational excellency, their customer
involvement and the areas where they are better in terms of the product offering.
• Competitors always try to introduce something similar that us as a company are offering, so it is of
utmost importance to bring Distinctive advantages to your offerings while maintaining the high
quality that the brand stands for.
• It is important to be a Market- Centred company so that you have a strong hold on your
competitors steps and have a good grasp of the customer value proposition in your target market.
17
Paris’
Printemps
Department
store :
A fight for
survival

18. Internal Factors Strengths Weakness
• Managerial staff • Competitive and
experienced employees
with prompt involvement
• Still improvement to be
made to sales staff
• Market Offerings • High quality merchandise
from High – end fashion
brands all over the globe
• Only high end products
available thus restricting
buying from Middle class
buyers
• Investments • Heavy investments from
the parent company thus
opening ways for better
innovation in renovating
the stores
• More investments in the
outlook and placing of
the business but less on
Expansion projects
• Suppliers • Economies of scale
prevalent in the store
adding to the positive
Financial Landscape
• Competition from
Individual Brand’s Stand
alone boutiques
SWOT analysis for Printemps
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Paris’
Printemps
Department
store :
A fight for
survival

19. External Factors Opportunities Threats
• Consumer behaviour • Better positioning in the
market now, hence more
exposure to the
International clientele
• Competitive strategies from
similar businesses may attract
customers for better value
propositions
• Competitive Scenario • Historical resonance
• Connection to elite status
• Innovative strategies from
competitors like Galeries
Lafayette and Le bon Marche
• Market Situation • Department stores sector
premium positioned:
Hence more Stable market
• Terrorism hampering the
retail market
• Sunday trading restrictions
• Brexit-Less demand from UK
consumers
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Paris’
Printemps
Department
store :
A fight for
survival

20. The Market
• Premium names  French departmental store sector
 Heavy reliance on overseas tourists
• International dominance  Tour guides paid to bring
travellers to stores  More sales
• Discount to Non-EU customers  Tax refunds  more
Offerings
• Terror attacks in Paris  Heavy decline in visitor  10%
Printemps and 25% Galeries Lafayette
• French customer base  Less demand Recorded (0.4%
growth rate in 2015)  Stronger economy for
affordable fast-fashion brands
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Paris’
Printemps
Department
store :
A fight for
survival

21. • Boom in online shopping
• Emerging online game ( aiming young generation)  Amazon prime (one-day delivery),
Zalando (huge categories in apparels)  Direct effect on departmental stores
Future uncertain for Paris departmental stores due to terror attacks all over Europe.
Brexit introduction will affect the market:
• Tourist involvements
• Exchange programs with UK taking a hit.
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Paris’
Printemps
Department
store :
A fight for
survival

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Target Market
• 30 – 50
• 20 – 29
• 19 and below
Primary Target
Affluent customers:
• Patricians
• Parvenu
Secondary Target
New rich/ Millennials:
• Heirs of established families
• New business owners
• Celebrities and models
• Young members of influential families
High end fashion
Beauty
Leather GoodsChildren Dept.
Paris’
Printemps
Department
store :
A fight for
survival

23. 23
• Looking at the current market situation, Departmental store gather more than 60% of their
annual revenues from international customer.
• This lays down the foundation of them being known for more than just a ‘French
departmental store’.
As said by Luxury daily ‘A significant portion of France’s shoppers is made up of Chinese
consumers who often spend throughout Europe, where it is cheaper for them. Printemps is
hoping to corner that market by offering a mobile pay service already popularized in China.’
Department stores here are targeting the overseas customers and are putting all the efforts to
make them stay. For example the introduction of mobile pay service ‘Alipay’ which is very much
prevalent in the Chinese market.
Paris’
Printemps
Department
store :
A fight for
survival

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Paris’
Printemps
Department
store :
A fight for
survival
• Other facilities for its international customers include: Bilingual staff to accompanying
customers during shopping, product deliveries to the hotels in Paris, purchase delivery
worldwide, tax refund and reception of foreign currencies at cash desks.
• The perception of it being a French department store is fading away with time and the
customer base is now gradually shifting to not just the French market but the whole world.
This is reflected in the product campaigns and various displays that are aimed to attract
people from around the globe.
• With France being the mort-visited country in the world, it provides the inflow of demand
for the retailers on a huge level.
• More than 50 million visitors annually to these French departmental store ensures a good
rate of sale throughout the year. But the competition at hand for Printemps will always
challenge the group to renew their strategies and their market positioning.

25. 25
Uma Thurman
Opening of Printemps Haussmann Paris
Cara Delevigne
Inauguration Printemps Haussmann Paris
Kate Winslet
Christmas Event Printemps
Haussmann Paris
• To Attract a global audience, using global celebrities for
launch events.
• This strategy is to remove the image of the store being just for
the French market.
Paris’
Printemps
Department
store :
A fight for
survival
Paris’
Printemps
Department
store :
A fight for
survival

26. 26
Paris’
Printemps
Department
store :
A fight for
survival
SWOT analysis for Galeries Lafayette
• Diverse product offerings (Entry level
premium products as well)
• Option of online purchase
• Galeries Group: Long experience
• More foreign customer involvements
• Discount outlet: Galeries Lafayette Outlet
S W
TO
• Heavy dependence on tourism
• Growing fast-fashion (As their main
targets include Millennials)
• Competition from like minded businesses
like Printemps and Le Bon Marche
• Involvement in Customer relationship
management
• Social responsibilities: Construction of
Campus for Art students, more
implications for better penetration in
consumer’s recognition
• Growing French market
• BREXIT implications: Economic instability
• Terrorism
• Chances of FREXIT implications in the
future
Competitor analysis

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Paris’
Printemps
Department
store :
A fight for
survival
• With more product diversity, Galeries Lafayette has a better hold on the customer segment:
More dominance on the younger customer base due to low priced-high quality goods. Having a
better hold on this market results in more brand recognition and word of mouth publicity.
With the growing market in France for avid travellers, the huge advantage they have results in
the decreased sales of its competitors.
• The active participation by Galeries Group in social responsibilities and in involvement in
other businesses portrays a better positioning of the brand.
Also it helps to regulate positive image in the mind of customer and create easy recognition to
relate the brand name in every field.

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Paris’
Printemps
Department
store :
A fight for
survival
Points noticed on personal visits to the store:
• Brand placement: Printemps has an image of Upmarket departmental store, but the
cluttered placements of brands in the Men’s section of the store makes its outlook as more
of a supermarket.
This results in a mixed up scenario of brands and they are hard to distinguish from each
other. For a upmarket store, the placing of brands should be well thought and precise.
• Architecture: For a business model trying to display its rich heritage, there should be a
concentration on the architectural aspects of the stores. For instance, coherence in the
design of the building will lead to a more clearer message to the target customer base.
A clash between Modern architecture and Traditional styling will send a confused message in
terms of their brand identity.
• Customer Base: As discussed before in previous section, more concentration on foreign
customer is a proved way of increasing the sales, but more tourists in the store hampers the
image of the store.
Recommendations

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Printemps along with other premium department store was erected to meet the needs of the
Establishing middle class, but now these customers are losing interest in such stores and their
primary reason being the presence of more than 70% customers from foreign land.
• Changing image among the French customers for these stores
• More foreign customers increasing the sales but reducing the home customers
• French customers prefer stand alone stores as compared to big departmental stores.
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Paris’
Printemps
Department
store :
A fight for
survival

30. 30
• The sales for the fiscal year 2015-16 was recorded to be close to 4.3 Billion Euros. This definitely represents a
positive growth in the market but to have better result, it is suggested that the group should follow a Market
centred approach:
The approach where the store will concentrate on aspect relating to both the competitors and the customers.
Paying more attention on the competitors can help recognize the business to grow better by innovating on the aspect
that they are better. To develop a strategy which fights with the competitors is of utmost importance to survive in the
market.
But by having a better insight into the consumer behaviour and their buying patterns will lead to more strengthening
sales strategies thus attracting more customers to the floor.
CONCLUSION
30

31. 3131
Paris’
Printemps
Department
store :
A fight for
survival
References
• Printemps, 2017. [online] Available at: https://www.printemps.com/magasins/actualites/paris-haussmann .
[Accessed 15/02/2017].
• Wikipedia, [online] Available at: https://en.wikipedia.org/wiki/Printemps. [Accessed 15/02/2017].
• Group Galeries Lafayette, [online] Available at: http://www.groupegalerieslafayette.com/our-brands/galeries-
lafayette . [Accessed 15/02/2017].
• Printemps, [online] Available at: http://departmentstoreparis.printemps.com/store/haussmann/. [Accessed
15/02/2017].
• Printemps, [online] Available at: https://www.printemps.com/magasins/galerie-photos/paris-haussmann .
[Accessed 15/02/2017].
• Claire Bouleau, 2017. [online] Available at: https://www.challenges.fr/entreprise/grande-conso/printemps-vs-
galeries-lafayette-le-match-du-boulevard-haussmann-reprend_451455 . [Accessed 15/02/2017].
• 2016. France Retail Overview: Characteristics, Developments and Prospects. [online] Available at:
https://fungglobalretailtech.com/research/france-retail-overview-characteristics-developments-prospects/.
[Accessed 16/02/2017].
• 2016. Essentials. [e-book] Galeries Lafayette Haussmann.
file:///C:/Users/Vivek/Downloads/dp_essentiel_haussman_2016_ang_mail.pdf [Accessed 18/02/2017].
• BRIELLE JAEKEL, 2016. Printemps adopts Chinese mobile pay to attract France’s major shopping audience.
[online] Available at: https://www.luxurydaily.com/printemps-luxifies-checkout-at-french-department-stores-
with-mobile-pay/ . [Accessed 16/02/2017].

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Other References
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Paris’
Printemps
Department
store :
A fight for
survival
• Dr. Pierre X.Camps, Creating competitive advantage. France:
• Dr. Pierre X.Camps, Consumer market and consumer behaviour. France:
• Dr. Pierre X.Camps, Creating and Capturing customer value . France:

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Paris’
Printemps
Department
store :
A fight for
survival
THANK YOU