Conducted by Juliana GRUBER and Alba ROMERO VILLA

1. FASHION LEATHER GOODS & ACCESSORIES!
JUNE 2014 | IMLB INTAKE 2!
Juliana GRUBER
Alba ROMERO VILLA

2. COMPANY OVERVIEW
!
• Italian luxury leather goods house founded in 1966 and purchased in
2001 by the Group Kering!
• With headquarters in Italy, the brand has about 3.000 employees!
• In middle/late 90’s the brand almost goes to bankrupt, due to its
products with logo, what changed completely its image !
• They began as a leather goods house, and today they have a full
range of leather good product (handbags, luggage and small leather
goods ) women's and men's ready-to-wear, shoes, jewelry,
accessories, perfumery and beauty products, furniture and home home
collection. !

3. BRIEF DESCRIPTION OF THE BRAND
!
• Became famous thanks to its signature "intrecciato", a unique leather
weaving technique created by the Bottega Veneta craftsmen. !
• Elegant and discrete, the brand is synonymous of highest
craftsmanship, and innovative design: the brand introduced soft,
deconstructed handbags as opposed to the traditional French school.!
• The company creates luxury goods based on its core values of !
• quality, !
• craftsmanship, !
• exclusivity; and !
• discrete luxury.

5. FIGURES
• The average number of employees is 2.891.!
• Revenues amount to €1.016 million in 2013
and has a recurring operating income of
€331 millions.!
• Category of product : high dependance to
leather!
• Inside the Kering group, the brand is the
2nd most profitable (16%) behind Gucci
(55%). YSL arrives ·rd with 8%.!
• There are 221 directly-operated stores
around the world. A significant part of them
are located in the emerging countries!
• Around 21% of the stores are located in
Europe where 28% of the profits is allocated
and 12% in the US, corresponding to 13%
of the profits.

6. FIGURES: REVENUES EVOLUTION
YSL Bottega Venetta Gucci

7. BRAND STATEMENT
BRAND POSITIONING
!
• Outstanding craftsmanship, know-how and masters of technique, high quality raw
materials, !
• Timeless, understated and elegant yet simple actual designs. !
• Chic consumers seeking for high-end quality products but looking for a more anonymous
and discrete luxury consumption in terms of brand recognition. !
• Its core customers embody modernity and timeless elegance.

8. COMPETITORS
Exclusivity!
Fashionable!Traditional!
Accessibility!
Hermès!
Louis Vuitton!
Dior!
Celine!Bottega Veneta!
Gucci! Prada!
Murberry!
Michael Kors!
Ralph Lauren!
Coach!
Dolce Gabanna!
Miu Miu!
Armani!
Loewe!
Chloe!
Chanel!

9. 5 FORCES: LUXURY & LEATHER GOODS INDUSTRY
http://www.lucintel.com
Threat of New Entrants
Not need of large investments to set up a company, but
high marketing & communication expenses. Brand
loyalty (possibility to leverage) in luxury and existence of
iconic shapes & models. Some brands benefit from
tradition, heritage and specific know-how. Limited
economies of scale and country of origin effect.
(MEDIUM)
Bargaining Power of Buyers
Consumption is growing and brands still
have room to expand, as they aren’t
present in every country. Consumers are
fragmented and influenced by opinion
leaders. Low information regarding
quality, origin… reduce perception of
product differentiation. Price
sensitivity depends on buying experience
and the raise of new acceptable social
values such austerity or conscious
consumption.
(MEDIUM)
Bargaining Power of Suppliers
Limited number of quality suppliers with
strong reputation, if we’re aiming to the
effect ‘Made in Europe’, combined with
high demand for exotic and good raw
materials with low profitability. Relative
low switching costs because of a regular
flow of new designers and brands, even if
big names may represent high volumes.
Change of suppliers may lead to different
quality perceptions in consumers mind.
(MEDIUM)
Threat of Substitutes
Strong competition leads to many substituable products
and alternative materials available in the market that
may influence selling prices. More speficic, luxury
leather goods and fashion face threats come from
(basto) counterfeits and premium brands offerinf good
value for money (attrative relation price-product).
(HIGH)
Rivalry among
Existing Competitors
High concentration with domination of lage conglomerated
makes it difficult for independent labels. Conglomerates may
share possibles outsourcing of raw materials, reducing costs. In-
home production. High degree of product differentiation,
especially for iconic shapes and luxury educated consumers.
The industry estimated growth:to reach $91.2 billion by 2018,
with a CAGR of 3.4%, over the next five years.
(HIGH)

10. SWOT ANALYSIS
S W
O T
1. Strong leather goods category and Extraordinary
craftsmanship & technique (intrecciato)!
2. Popularity among important markets in luxury
consuming!
3. Growth rate and profitability!
4. Brand recognition in Asia!
5. Skilled work force!
6. Reduced labor costs
!
1. Overuse of brand codes (bee and intrecciato)!
2. High dependance on leather goods !
3. Recent expansions that need further investment
and risk of brand dilution !
4. Damaged image as a consequence of the “fashion
approach” during 90’s that made the company lose
loyal customers;!
1. Further investment in new activities!
2. Continue expanding into emergent market!
3. Diversifying!
4. Financial, know-how etc… support from the Kering
group
1. Competitive environment!
2. Austerity!
3. Growth estimate decreases!
4. Rising costs and scarcity of raw material
INTERNALORIGIN
attributesoftheorganization
EXTERNALORIGIN
attributesoftheenvironment
HELPFUL
to achieving the objective
HARMFUL
to achieving the objective

11. WHAT’S NEXT?
2 DIFFERENT STRATEGIES:
Bottega Veneta should enlarger their recent investments to continue their brand re-
positioning and secure their existing and recently created brand extensions before entering
into further new activities. !
Furthermore, as Bottega Venetta is key in terms of revenues for Kering group, challenging
the rules of the game of the company could be risky for the conglomerate. !
Investment in a new category of products inspired by OUTDOOR LIFESTYLE & NATURE. !
PRINCIPLE: PRODUCT - LIFESTYLE. From a focus on product to a lifestyle proposition. !
Indeed, this initiative makes sense within the current strategy of the brand - sticking to their
Italian expertise & know-how as a return to the roots. !
Furthermore, it represents a new ground for the brand and shakes the mindset within the
company while keeping a strong relation with its core competences - Italian traditional roots. !
Wide range of products for different price points. Our aim is to create a complete lifestyle
experience to engage consumers in a higher level:!
Terroirs, outside table wear and art de vivre, outside living related goods, gardening
tools and products, seeds, outdoor furniture and inspired clothing and accessories
line.
1.
2.

12. BUSINESS PROPOSITION: OUTDOOR CATEGORY
www.businessmodelgeneration.com http://vimeo.com/5270530http://vimeo.com/5270530
Key activities
Green (not so ‘eco’ since we’re
a leather goods company) but
our products are inspired in
nature and Italy iconic locations.
Revival and treatment of old
local, rural & classic
environments.
Value propositions
!
High design performance
products inspired by natural
environments.
Unique outdoor lifestyle
concept thanks to different
categories of offer such:
specific furniture and lighting,
small gardens in glass, art de
vivre and table-wear,
flowerpots, seeds, nature
inspired clothing, candles, etc.
A whole
Vuelta a las raíces
The aim is to transform a local
garden center into a chic
celebration of nature
by the idea of merging house
and garden to create an
experience for the senses,
!
Customer
relationships
Emotional attach to the product
due to its strong positioning
and its high degree of
differentiation.
A new business area dedicated
to build brand image
positioning our strengthen our
brand essence and its origins.
Customer segments
!
!
• Bobo’s and wealthy chic
consumers, but discrete
consumption of luxury goods.
• People that enjoys nature
and outdoor lifestyle.
• Individuals seeking for
authenticity, a back to the
roots.
• People searching for new
leisure activities involving
working with the hands.
• People that likes fashion &
style, however, search for
differentiation and is looking
to communicate their
personality by the
consumption of specific
products and brands.
Cost structure
!
Usual cost of operating a business (rent, salaries, raw material, machines,
maintenance, etc).
Store / Ateliers costs.
Partners costs.
Revenues streams
Sale of products full of added value to customers: the concept is rather creative and
full of vivid principles; yet perfectly aligned with Bottega Venetta’s brand DNA.
The product range includes several price positioning from entry products (seeds,
candles, etc.) to more expensive ones (high designed furniture) and is driver by have
high quality standards.
Higher price justified by a specific know-how, artisanal work and environmental
sustainability of products that are all imported from local partners in Italy.
It will bring differentiation to our brand and a market personality in a specially
saturated competitive environment.
Key partners
!
Local gardening centers and all
around the word exotic species.
Local raw materials for furniture
and production centers.
Partner with design and
architecture firms to collaborate
to develop our exterior universe
concept.
Workshops and in-store ateliers. !
!
Channels
Retail stores starting by historic
markets: Italy (Venezia and
Toscana) regions, also France.
Second stage: bring nature to
urban environments: Paris,
Milan & London.
Concept stores: Merci, 10
Corso Como or Societé
Anonyme.
Pop-up stores.
Key resources
Good possible local designers
able to understand the customer
taste & artistic / creative.
!
Sales & market team that
interacts with target audience
adding value proposition.
!

13. MOOD BOARDS & COLOR COMBINATIONS
2 DIFFERENT THEMATICS:
!
!
!
Venezia!
Toscana
Playful!
Bright colors !
combined with beige and sand!
Carnaval & Murano!
Modern & Elegance
Traditional !
Warm & earth colors!
Grapes and field!
Wood & Intrinciatto!
Elegance

14. “Simple design is
always complicated”
TOMAS MAIER,
CREATIVE DIRECTOR
Thank you for your attention