Developmentof luxurybrands part 2

500 views

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
500
On SlideShare
0
From Embeds
0
Number of Embeds
61
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Developmentof luxurybrands part 2

  1. 1. Development of luxury brands MARKETS Gilles Chavet pour EMC Campus MBA 2012 / 2013
  2. 2. Development of luxury brands• Crisis or not ??? (Exemple : Tiffany profits Fall 29.6%)• Necessity to project a positive image AT ALL TIMES not to worry investors.• And Adapt to all situations Gilles Chavet pour EMC Campus MBA 2012 / 2013
  3. 3. The current crisis is changing consumers trends : Gilles Chavet pour EMC Campus MBA 2012 / 2013
  4. 4. Reduce & Reuse• Consumers “shop their closets”, reusing purchases from past years Gilles Chavet pour EMC Campus MBA 2012 / 2013
  5. 5. Reduce & Reuse• Consumers “shop their closets”, reusing purchases from past years• Shoppers are trying to update their wardrobes inexpensively Gilles Chavet pour EMC Campus MBA 2012 / 2013
  6. 6. Reduce & Reuse• Consumers “shop their closets”, reusing purchases from past years• Shoppers are trying to update their wardrobes inexpensively• ... refreshing their looks with few key items and accessories Gilles Chavet pour EMC Campus MBA 2012 / 2013
  7. 7. Polarize• Down-trading on fashion items, investing in evergreen items Gilles Chavet pour EMC Campus MBA 2012 / 2013
  8. 8. Polarize• Down-trading on fashion items, investing in evergreen items• Accelerating Cheap & Chic Gilles Chavet pour EMC Campus MBA 2012 / 2013
  9. 9. Polarize• Down-trading on fashion items, investing in evergreen items• Accelerating Cheap & Chic• Fast Fashion players winning the game Gilles Chavet pour EMC Campus MBA 2012 / 2013
  10. 10. Value for Money• Delay high-ticket and classic/basic purchases Gilles Chavet pour EMC Campus MBA 2012 / 2013
  11. 11. Value for Money• Delay high-ticket and classic/basic purchases• Booming season-end sales and discount channels: outlets … Gilles Chavet pour EMC Campus MBA 2012 / 2013
  12. 12. Value for Money• Delay high-ticket and classic/basic purchases• Booming season-end sales and discount channels• Willing to spend only for items and brands who pass the worth-it test Gilles Chavet pour EMC Campus MBA 2012 / 2013
  13. 13. Understatement• Austerity is fashionable even for wealthiest consumers Gilles Chavet pour EMC Campus MBA 2012 / 2013
  14. 14. Understatement• Austerity is fashionable even for wealthiest consumers• Extravagant spending considered irresponsible or disrespectful Gilles Chavet pour EMC Campus MBA 2012 / 2013
  15. 15. Understatement• Austerity is fashionable even for wealthiest consumers• Extravagant spending considered irresponsible or disrespectful• Luxury shame, impacting negatively logo and showy products: logos are getting smaller Gilles Chavet pour EMC Campus MBA 2012 / 2013
  16. 16. Despite the crisis, long-term prospects for the luxury market remain strong• Despite current negative trends, marketfundamentals remain strong in the long-run Gilles Chavet pour EMC Campus MBA 2012 / 2013
  17. 17. Despite the crisis, long-term prospects for the luxury market remain strong• Despite current negative trends, marketfundamentals remain strong in the long-run• “New luxury segments” are emerging:working women, men, new generations,emerging markets Gilles Chavet pour EMC Campus MBA 2012 / 2013
  18. 18. Despite the crisis, long-term prospects for the luxury market remain strong• Despite current negative trends, marketfundamentals remain strong in the long-run• “New luxury segments” are emerging:working women, men, new generations,emerging markets• Continuing growth of aspirational consumerbase (especially in Asian and emergingmarkets) Gilles Chavet pour EMC Campus MBA 2012 / 2013
  19. 19. Despite the crisis, long-term prospects for the luxury market remain strong• Despite current negative trends, marketfundamentals remain strong in the long-run• “New luxury segments” are emerging:working women, men, new generations,emerging markets• Continuing growth of aspirational consumerbase (especially in Asian and emergingmarkets)• New opportunities may come from changingvalues and consumption habits Gilles Chavet pour EMC Campus MBA 2012 / 2013
  20. 20. The markets of the Luxury Industry: Mature, New, Rising Mature ( 80%): Europe, USA, Japan New ( 14%):Middle East,Russia,South East Asia Rising ( 6%): China, India, South America Gilles Chavet pour EMC Campus MBA 2012 / 2013
  21. 21. How the luxury industry adapts to those different markets:Each market is different and there is a necessity to adapt and diversify the way of doing things according to market specificities. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  22. 22. However, CRM everywhere• Put in place a few years ago, it’s starting to pay off. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  23. 23. However, CRM everywhere• Put in place a few years ago, it’s starting to pay off.• Data collection Gilles Chavet pour EMC Campus MBA 2012 / 2013
  24. 24. However, CRM everywhere• Put in place a few years ago, it’s starting to pay off.• Data collection• Development of after sale’s service Gilles Chavet pour EMC Campus MBA 2012 / 2013
  25. 25. However, CRM everywhere• Put in place a few years ago, it’s starting to pay off.• Data collection• Development of after sale’s service• Luxury brands loose on average 80% of their clients after their first buy Gilles Chavet pour EMC Campus MBA 2012 / 2013
  26. 26. Distribution Europe : headquarters often settled there /Advantages- Retail network in free standing boutiques and department stores.- Franchise stores and identified corners- Distribution in multi brand stores Gilles Chavet pour EMC Campus MBA 2012 / 2013
  27. 27. Best streets in Europe• Bond street & Knightsbrige London• Avenue Montaigne & Fbg St honoré Paris• La croisette Cannes• Rue du Rhône Genève• Via Monte Napoleone Milano• Via Condotti Roma• …/… Gilles Chavet pour EMC Campus MBA 2012 / 2013
  28. 28. Distribution USA:• Presence in department stores : Bergdorf Goodman, Saks Fifth Avenue, Neiman Marcus, Barneys.• Presence with Retail free standing stores in key streets : Madison in NYC , Rodeo Drive in Beverly Hills.• Outlets Gilles Chavet pour EMC Campus MBA 2012 / 2013
  29. 29. Bergdorf Goodman NYC Gilles Chavet pour EMC Campus MBA 2012 / 2013
  30. 30. Bergdorf Goodman NYC Gilles Chavet pour EMC Campus MBA 2012 / 2013
  31. 31. Bergdorf Goodman NYC Gilles Chavet pour EMC Campus MBA 2012 / 2013
  32. 32. Bergdorf Goodman NYC Gilles Chavet pour EMC Campus MBA 2012 / 2013
  33. 33. Bergdorf Goodman NYC Gilles Chavet pour EMC Campus MBA 2012 / 2013
  34. 34. Distribution Japan :• Presence in Major Department stores: Isetan, Takashimaya, Mitsukoshi.• Presence with Retail free standing boutiques• Mostly Retail with dedicated structure locally Gilles Chavet pour EMC Campus MBA 2012 / 2013
  35. 35. IsetanGilles Chavet pour EMC Campus MBA 2012 / 2013
  36. 36. Distribution Middle East:• Boutique on Franchise contracts• Wholesale thru agent or distributor• Very rare to have Retail unless key man in country Gilles Chavet pour EMC Campus MBA 2012 / 2013
  37. 37. Beware : Villa Moda Gilles Chavet pour EMC Campus MBA 2012 / 2013
  38. 38. Villa ModaGilles Chavet pour EMC Campus MBA 2012 / 2013
  39. 39. Villa ModaGilles Chavet pour EMC Campus MBA 2012 / 2013
  40. 40. Villa ModaGilles Chavet pour EMC Campus MBA 2012 / 2013
  41. 41. Villa ModaGilles Chavet pour EMC Campus MBA 2012 / 2013
  42. 42. Princess Deena Jeddah Gilles Chavet pour EMC Campus MBA 2012 / 2013
  43. 43. DNAGilles Chavet pour EMC Campus MBA 2012 / 2013
  44. 44. DNAGilles Chavet pour EMC Campus MBA 2012 / 2013
  45. 45. Distribution Russia• Boutique on Franchise contracts• Wholesale thru agent or distributor• Very rare to have Retail Gilles Chavet pour EMC Campus MBA 2012 / 2013
  46. 46. Tsum MoscouGilles Chavet pour EMC Campus MBA 2012 / 2013
  47. 47. Distribution South East Asia :• Boutique on Franchise contracts• Wholesale thru agent or distributor• Very rare to have Retail unless key man in country Gilles Chavet pour EMC Campus MBA 2012 / 2013
  48. 48. Focus on Luxury Business in CHINA a singular market ? Gilles Chavet pour EMC Campus MBA 2012 / 2013
  49. 49. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  50. 50. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  51. 51. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  52. 52. British carmaker Bentley sells more Mulliner728 limousines, the world’s most expensivecar at US$1.2 million each, in Beijing than inany other city in the world. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  53. 53. Facts :• 80% of sales of luxury goods are purchased by mens• As of 2010, China is the worlds second largest consumer market for luxury goods, next only to Japan,and having surpassed the United States in 2009.• By 2014, China could surpass Japan by representing 26% of luxury goods sales Gilles Chavet pour EMC Campus MBA 2012 / 2013
  54. 54. Facts ( cont .):• Chinese luxury goods consumers are younger than their European counterparts, belonging to the 18-50 age group, compared to Europes consumers who are generally in the over 40 age group. For this reason, Chinas luxury goods market is expected to grow faster than that of Europes. Many of the young luxury goods buyers are self-employed or professionals. According to the consulting firm McKinsey & Company, 80% of Chinese luxury goods buyers are under 45, compared with 30% of luxury goods buyers in the United States and 19% in Japan. According to a report by the World Luxury Association, Chinese consumers spend a larger proportion of their income for luxury goods compared to the world average of 4%. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  55. 55. Facts ( cont. ):• According to 2007 Global Luxury Survey by Time magazine, most luxury goods buyers in China buy luxury products as a status symbol. The top five luxury watch brands in the country are Rolex, Omega, Cartier, Vacheron Constantin, and Breitling. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  56. 56. Cosmetics, perfumes and personal care1.Chanel2.Lancôme3.Dior Gilles Chavet pour EMC Campus MBA 2012 / 2013
  57. 57. Watches1.Rolex2.Omega3.Cartier Gilles Chavet pour EMC Campus MBA 2012 / 2013
  58. 58. Suitcases and handbags1. Louis Vuitton2. Gucci3. Chanel Gilles Chavet pour EMC Campus MBA 2012 / 2013
  59. 59. Menswear1.Giorgio Armani2.Ermenegildo Zegna3.Versace Gilles Chavet pour EMC Campus MBA 2012 / 2013
  60. 60. Jewelry1.Cartier2.Tiffany and Co Gilles Chavet pour EMC Campus MBA 2012 / 2013
  61. 61. Shoes1.Prada2.Chanel Gilles Chavet pour EMC Campus MBA 2012 / 2013
  62. 62. Womenswear1. Chanel2. Burberry3. GiorgioArmani Gilles Chavet pour EMC Campus MBA 2012 / 2013
  63. 63. How luxury brands have to adapt to Luxury market in China:• Implement retail networks, dealing with local landlords and possible investors. Necessity to increase margin to overcome duty cost & implantation costs ( rent, fees to investors, banks …)• Lack of workforce at the managing level: necessity of settling training programs. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  64. 64. Cont. :• Necessity of not manufacturing locally• Watch and deal with counterfeits production.• Adapt communication to this particular market : choose “icons”: Nicole Kidman, George Clooney• Adapt to younger age group Gilles Chavet pour EMC Campus MBA 2012 / 2013
  65. 65. Distribution in China :• Boutique on Franchise contracts• Wholesale thru agent or distributor• Very rare to have Retail unless key man in country Gilles Chavet pour EMC Campus MBA 2012 / 2013
  66. 66. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  67. 67. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  68. 68. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  69. 69. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  70. 70. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  71. 71. Gilles Chavet pour EMC Campus MBA 2012 / 2013
  72. 72. Distribution : Indias Luxury Market Up 20% in 2010 Gilles Chavet pour EMC Campus MBA 2012 / 2013
  73. 73. Distribution India :• Boutique on Franchise contracts• Wholesale thru agent or distributor• Very rare to have Retail unless key man in country• Very often stores are being developped with luxury hotel chains Gilles Chavet pour EMC Campus MBA 2012 / 2013
  74. 74. Depatment store in Bombay Gilles Chavet pour EMC Campus MBA 2012 / 2013
  75. 75. Distribution South America :• Boutique on Franchise contracts• Very few wholesalers thru agent or distributor• Very rare to have Retail unless key man in country• Exemple Daslu in Sao Paulo Gilles Chavet pour EMC Campus MBA 2012 / 2013
  76. 76. DasluGilles Chavet pour EMC Campus MBA 2012 / 2013
  77. 77. DasluGilles Chavet pour EMC Campus MBA 2012 / 2013
  78. 78. Quizz1. Bergdorf Goodman is a store in London ?2. Luxury brands have to adapt to market’s specificities ?3. Chinese women are bigger spenders that men?4. It’s easy to start retail operations in China ?5. On average,chinese luxury goods consumers are younger than their European conterparts? Gilles Chavet pour EMC Campus MBA 2012 / 2013

×