SlideShare a Scribd company logo
Dior.
FIXZ
Solutions
Amrita Kare
Sanyam Pandey
Sakib Hussain
Zachary Bergoine
What We Do….
➢ Founded in 1946 by the designer Christian Dior and became a
corporation in 1947.
➢ leading manufacturer, distributor and retailer in fashion goods,
accessories, fragrances and cosmetics
➢ product lines include fashion and accessories, fragrance and
beauty products, women's and men's
➢ product wear, footwear, cosmetics, skin care, jewelry, watches,
wines, perfumes and leather products.
➢ offers home delivery, gift cards and discount offers.
➢ via owned stores, internet (www.dior.com) and licensed dealers
in France, USA, Japan and Asia pacific.
Introduction
Vision
➢ "To become the world's most popular brand in all products that enhance their lifestyle."
Mission
➢ “True Luxury requires genuine materials and the craftsman's sincerity. It is only meaningful
when it respects tradition“. Christian Dior.
➢ to create the environment that is fun, welcoming and that encourages customers to tap into
their creativity and explore their personal styles
➢ to provide clients with the highest quality promotional merchandise available worldwide
Vision & Mission
➢ Headquartered in Paris
➢ 108,546 employees
➢ Sales of $38.41 billion
➢ Profits of $1.8 billion
➢ Assets of $82.9 billion
➢ Market value of $34.4 billion
➢ Ranked as 88 innovative companies in 2012
Company Demographics
Weakness
➢ Fluctuations in the exchange
rates can lead to loss of
revenues
➢ Limited market share because of
being a luxury brand
➢ Target market too small
➢ Unaffordable to many
➢ Stores available only in big cities
across the world
Strengths
➢ Strong legacy of over half a
century
➢ Complete luxury lifestyle brand
➢ Presence over various luxury
avenues across the world
➢ 42% stake in LMVH
➢ More than 235 wholly owned
boutiques worldwide
➢ Best designers in the industry
like John Galliano
➢ Acquisition of Louis Vuitton one of
the largest luxury firms in the
world.
➢ Concept stores each store having
a unique theme
➢ Strong brand name and reputation
worldwide
➢ Excellent branding and advertising
through TVCs and print ads
Opportunities
➢ can focus on green initiatives
➢ Explore and expand in emerging
markets like Africa
➢ Launch new culturally versatile designs
and products for consumers across the
world
Threats
➢ Competitors offering same
products
➢ Changes in policies of world trade
organisation
➢ Rising cost of raw material
SWOT
Analysis
Competitors
has been a haute name in fashion and cosmetics for decades. The company also creates watches
and jewelry and has a single license -- for eyewear with Luxottica. Founder Gabrielle "Coco" Chanel
opened her first boutique in 1913, touting designs known for simplicity. Chanel also own lingerie and
swimwear brand Eres. It has more than 100 boutiques worldwide. In 2013 company reported an
annual sales of $4.04 billion with net income of $702.71 million.
founded in 1978 has built a business designing, making, and licensing apparel, accessories, and other
items. Its wares are sold in more than 200 company-owned boutiques and some 1,000 other shops in
60 countries worldwide. The firm also operates luxury hotels and residences with Sunland Group.
Company reported a net income of $1.91 million and an annual sales of $398.87 million.
is world's third-largest luxury group (behind LVMH and Richemont). The company's stable of global
luxury brands includes a 99% stake in Italian luxury goods company Gucci Group, and luxury brands
Alexander McQueen, Stella McCartney, and Yves Saint Laurent, among many others. The group's
other activities include the German athletic shoemaker PUMA. About 70% of Kering's sales are
generated beyond Western Europe. The firm is refocusing its operations on the luxury goods and
sport and lifestyle retail sectors. It reported an annual sales of $13.42 billion in 2013 and has market
capital value of $26.69 billion.
Top Competitors
Consumer
➢ Elite, Upper class people with high relatively income
➢ Majorly for women
➢ 25 and above in age
➢ Across the globe
Image
➢ Elegant & Romantic, Classic & Trendy
➢ Emphasizes luxury
➢ Feminine
➢ Red Carpet
Positioning
➢ Luxury brand for upper class and elite consumers with high purchase power.
Dior - Brand
● INNOVATION
-At creative level
-Launch new products every season
● INTERNATIONALISATION
-83% sales from abroad
-Expand into developing markets like China & India
-Collaborate more with departmental stores like Macy’s, Barneys , Sephora etc
● AGGRESSIVE COMMUNICATION
-Strong presence in the press, poster campaign, etc.
-Invests 1.5 million euros in fashion shows to get ample media coverage
-Outline the collections in the most spectacular way possible
- Focus more on accessories than clothes
BUSINESS STRATEGY
MANUFACTURING PROCESS
● DESIGN & DEVELOPMENT
-Procurement of raw materials from all over the world by designers
-Style created & developed
-Prototype samples made before a collection and sent to headquarters
● SUPPLY AND MANUFACTURING
-Fabric purchased from textile suppliers & Supplied
-Garments manufactured for retailers
-Transported to Central Warehouse
● LOGISTICS & CLIENT DELIVERIES
-Central warehouse to stores, distribution centers across continents
➢ Outsourced to QRS Corporation
➢ Implemented Tradeweave Retail Network
➢ Tradeweave Sourcing is a powerful tool for Dior to enhance its supply chain management, optimizing
the entire manufacture-to-delivery process in collaboration with suppliers. It works within Dior’s
existing systems to create a solid foundation for an even more successful operation
➢ Through this network solution, QRS offers retailers, vendors and their trading partners global sourcing
and logistics; merchandise planning; retail intelligence, digital photography, marketplace and a host of
enabling products and services for effective supply chain management.
➢ Helps Dior to integrate and enhance management of sourcing and tracking of its imported goods
➢ Monitoring of various stages of procurement process
SUPPLY OF PRODUCTS
➢ 160 boutiques worldwide
➢ Clothing is exclusively sold in Dior stores
➢ Other retailers only carry licensed Dior products like
eyewear,perfumes,bags etc
➢ Network expanded to 165 Duty Free Shopping Outlets
➢ Reducing no. of licenses to regain control over its products and achieve
efficient management
DISTRIBUTION
Business Model
Key Products:
● Ready-to-wear,
● Leather goods,
● Fashion accessories,
● Footwear,
● Jewelry, fragrance,
● Make-up and skincare
products
Area Coverage: (210
locations)
1. Asia -109
2. North America - 48
3. Europe - 45
Value Propositions:
Absolute elegance and creative
audacity. To offer happiness and
elegant Lifestyle.
Key Resources :
- European Designers
- Manufacture location:
China, France, Italy
Revenue Stream:
-Sales of Products
- Exhibitions
(company reported revenue
of EUR 417 million against
EUR 368 million a year ago)
Customer Segments
Age: 25-45~50
Income & Social Status: High
Shopping Budget: Once in a Month
Business Model
➢ Top of pyramid - griffe - the creators
signature engraved on a unique work
➢ The second is luxury brands produced in a
small series within a workshop
➢ Third level is that of streamlined mass
production
○ here we find Dior and Yves Saint
Laurent
○ at this level brands fame generates
an aura of intangible added values for
expensive and prime quality products
➢ The creativity of the signature label at the tip of the pyramid, is at the heart of
the business model.
➢ within a few years of arrival John Galliano at Dior, sales had increased four
fold
➢ the disadvantage of this model is that the more accessible the secondary
lines are entrusted to other designers , and further you move away from the
pyramid the less creativity there is
Products Sales Distribution:
Global Sales Distribution
Current Information Technology
Electronic Data Interchange
-Allows for communication from outside and
internal sources such as retail stores and
factories to improve supply chain
Current Information Technology
Databases and Enterprise System
Amazon Cloud Client
Custom Made
Enterprise System
Possible Future Implementations:
Wearable Technology
Possible Future Implementations:
Digital Fashion Week
Possible Future Implementations:
QUESTION : Can the Luxury fashion brand store atmosphere be transferred to the Internet?
Online Retail sale $316 billion from 2000 to 2010.
ECommerce Setup
Possible Future Implementations:
3D Printing
Conclusion :
John Fairchild (editor in chief of Women's Wear Daily)
“Every generation laughs at the old fashions, but follows religiously the new.”
● http://www.eurbanista.com/dior-the-french-business-model-for-fashion-luxury/
● http://www.businesswire.com
● http://www.forbes.com
● http://www.ukessays.com/essays/marketing/marketing-analysis-of-christian-dior-marketing-essay.php
● http://subscriber.hoovers.com/H/company360/overview.html?companyId=92686000000000
● http://www.dior-finance.com/en-US/
● http://www.fashiongps.com/5-technology-trends-transforming-the-fashion-industry/
● http://fashionista.com/2014/03/why-some-luxury-brands-still-dont-sell-online
● http://www.styleitrockit.com/blog/2014/5/21/the-impact-of-technology-on-fashion
● Vi Nguyen (Online). Analysis of the Luxury Goods Apparel And Footwear Industries.
http://www.uwlax.edu/urc/jur-online/pdf/2004/nguyen.pdf
● http://www.slideshare.net/Tiffany2690/dior-communication-strategy
● http://www.brandchannel.com/images/papers/269_Lux_Goods_Online.pdf
● http://fashion.infomat.com/christian-dior-designer.html
● http://www.slideshare.net/SophiaTripp/dior-final-copy?next_slideshow=1
References
Question
s?

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Christian dior - Managing Operations and Information Technology

  • 3. ➢ Founded in 1946 by the designer Christian Dior and became a corporation in 1947. ➢ leading manufacturer, distributor and retailer in fashion goods, accessories, fragrances and cosmetics ➢ product lines include fashion and accessories, fragrance and beauty products, women's and men's ➢ product wear, footwear, cosmetics, skin care, jewelry, watches, wines, perfumes and leather products. ➢ offers home delivery, gift cards and discount offers. ➢ via owned stores, internet (www.dior.com) and licensed dealers in France, USA, Japan and Asia pacific. Introduction
  • 4. Vision ➢ "To become the world's most popular brand in all products that enhance their lifestyle." Mission ➢ “True Luxury requires genuine materials and the craftsman's sincerity. It is only meaningful when it respects tradition“. Christian Dior. ➢ to create the environment that is fun, welcoming and that encourages customers to tap into their creativity and explore their personal styles ➢ to provide clients with the highest quality promotional merchandise available worldwide Vision & Mission
  • 5. ➢ Headquartered in Paris ➢ 108,546 employees ➢ Sales of $38.41 billion ➢ Profits of $1.8 billion ➢ Assets of $82.9 billion ➢ Market value of $34.4 billion ➢ Ranked as 88 innovative companies in 2012 Company Demographics
  • 6. Weakness ➢ Fluctuations in the exchange rates can lead to loss of revenues ➢ Limited market share because of being a luxury brand ➢ Target market too small ➢ Unaffordable to many ➢ Stores available only in big cities across the world Strengths ➢ Strong legacy of over half a century ➢ Complete luxury lifestyle brand ➢ Presence over various luxury avenues across the world ➢ 42% stake in LMVH ➢ More than 235 wholly owned boutiques worldwide ➢ Best designers in the industry like John Galliano ➢ Acquisition of Louis Vuitton one of the largest luxury firms in the world. ➢ Concept stores each store having a unique theme ➢ Strong brand name and reputation worldwide ➢ Excellent branding and advertising through TVCs and print ads Opportunities ➢ can focus on green initiatives ➢ Explore and expand in emerging markets like Africa ➢ Launch new culturally versatile designs and products for consumers across the world Threats ➢ Competitors offering same products ➢ Changes in policies of world trade organisation ➢ Rising cost of raw material SWOT Analysis
  • 8. has been a haute name in fashion and cosmetics for decades. The company also creates watches and jewelry and has a single license -- for eyewear with Luxottica. Founder Gabrielle "Coco" Chanel opened her first boutique in 1913, touting designs known for simplicity. Chanel also own lingerie and swimwear brand Eres. It has more than 100 boutiques worldwide. In 2013 company reported an annual sales of $4.04 billion with net income of $702.71 million. founded in 1978 has built a business designing, making, and licensing apparel, accessories, and other items. Its wares are sold in more than 200 company-owned boutiques and some 1,000 other shops in 60 countries worldwide. The firm also operates luxury hotels and residences with Sunland Group. Company reported a net income of $1.91 million and an annual sales of $398.87 million. is world's third-largest luxury group (behind LVMH and Richemont). The company's stable of global luxury brands includes a 99% stake in Italian luxury goods company Gucci Group, and luxury brands Alexander McQueen, Stella McCartney, and Yves Saint Laurent, among many others. The group's other activities include the German athletic shoemaker PUMA. About 70% of Kering's sales are generated beyond Western Europe. The firm is refocusing its operations on the luxury goods and sport and lifestyle retail sectors. It reported an annual sales of $13.42 billion in 2013 and has market capital value of $26.69 billion. Top Competitors
  • 9. Consumer ➢ Elite, Upper class people with high relatively income ➢ Majorly for women ➢ 25 and above in age ➢ Across the globe Image ➢ Elegant & Romantic, Classic & Trendy ➢ Emphasizes luxury ➢ Feminine ➢ Red Carpet Positioning ➢ Luxury brand for upper class and elite consumers with high purchase power. Dior - Brand
  • 10. ● INNOVATION -At creative level -Launch new products every season ● INTERNATIONALISATION -83% sales from abroad -Expand into developing markets like China & India -Collaborate more with departmental stores like Macy’s, Barneys , Sephora etc ● AGGRESSIVE COMMUNICATION -Strong presence in the press, poster campaign, etc. -Invests 1.5 million euros in fashion shows to get ample media coverage -Outline the collections in the most spectacular way possible - Focus more on accessories than clothes BUSINESS STRATEGY
  • 11. MANUFACTURING PROCESS ● DESIGN & DEVELOPMENT -Procurement of raw materials from all over the world by designers -Style created & developed -Prototype samples made before a collection and sent to headquarters ● SUPPLY AND MANUFACTURING -Fabric purchased from textile suppliers & Supplied -Garments manufactured for retailers -Transported to Central Warehouse ● LOGISTICS & CLIENT DELIVERIES -Central warehouse to stores, distribution centers across continents
  • 12. ➢ Outsourced to QRS Corporation ➢ Implemented Tradeweave Retail Network ➢ Tradeweave Sourcing is a powerful tool for Dior to enhance its supply chain management, optimizing the entire manufacture-to-delivery process in collaboration with suppliers. It works within Dior’s existing systems to create a solid foundation for an even more successful operation ➢ Through this network solution, QRS offers retailers, vendors and their trading partners global sourcing and logistics; merchandise planning; retail intelligence, digital photography, marketplace and a host of enabling products and services for effective supply chain management. ➢ Helps Dior to integrate and enhance management of sourcing and tracking of its imported goods ➢ Monitoring of various stages of procurement process SUPPLY OF PRODUCTS
  • 13. ➢ 160 boutiques worldwide ➢ Clothing is exclusively sold in Dior stores ➢ Other retailers only carry licensed Dior products like eyewear,perfumes,bags etc ➢ Network expanded to 165 Duty Free Shopping Outlets ➢ Reducing no. of licenses to regain control over its products and achieve efficient management DISTRIBUTION
  • 14. Business Model Key Products: ● Ready-to-wear, ● Leather goods, ● Fashion accessories, ● Footwear, ● Jewelry, fragrance, ● Make-up and skincare products Area Coverage: (210 locations) 1. Asia -109 2. North America - 48 3. Europe - 45 Value Propositions: Absolute elegance and creative audacity. To offer happiness and elegant Lifestyle. Key Resources : - European Designers - Manufacture location: China, France, Italy Revenue Stream: -Sales of Products - Exhibitions (company reported revenue of EUR 417 million against EUR 368 million a year ago) Customer Segments Age: 25-45~50 Income & Social Status: High Shopping Budget: Once in a Month Business Model
  • 15. ➢ Top of pyramid - griffe - the creators signature engraved on a unique work ➢ The second is luxury brands produced in a small series within a workshop ➢ Third level is that of streamlined mass production ○ here we find Dior and Yves Saint Laurent ○ at this level brands fame generates an aura of intangible added values for expensive and prime quality products ➢ The creativity of the signature label at the tip of the pyramid, is at the heart of the business model. ➢ within a few years of arrival John Galliano at Dior, sales had increased four fold ➢ the disadvantage of this model is that the more accessible the secondary lines are entrusted to other designers , and further you move away from the pyramid the less creativity there is
  • 18. Current Information Technology Electronic Data Interchange -Allows for communication from outside and internal sources such as retail stores and factories to improve supply chain
  • 20. Databases and Enterprise System Amazon Cloud Client Custom Made Enterprise System
  • 23. Possible Future Implementations: QUESTION : Can the Luxury fashion brand store atmosphere be transferred to the Internet? Online Retail sale $316 billion from 2000 to 2010. ECommerce Setup
  • 25. Conclusion : John Fairchild (editor in chief of Women's Wear Daily) “Every generation laughs at the old fashions, but follows religiously the new.”
  • 26. ● http://www.eurbanista.com/dior-the-french-business-model-for-fashion-luxury/ ● http://www.businesswire.com ● http://www.forbes.com ● http://www.ukessays.com/essays/marketing/marketing-analysis-of-christian-dior-marketing-essay.php ● http://subscriber.hoovers.com/H/company360/overview.html?companyId=92686000000000 ● http://www.dior-finance.com/en-US/ ● http://www.fashiongps.com/5-technology-trends-transforming-the-fashion-industry/ ● http://fashionista.com/2014/03/why-some-luxury-brands-still-dont-sell-online ● http://www.styleitrockit.com/blog/2014/5/21/the-impact-of-technology-on-fashion ● Vi Nguyen (Online). Analysis of the Luxury Goods Apparel And Footwear Industries. http://www.uwlax.edu/urc/jur-online/pdf/2004/nguyen.pdf ● http://www.slideshare.net/Tiffany2690/dior-communication-strategy ● http://www.brandchannel.com/images/papers/269_Lux_Goods_Online.pdf ● http://fashion.infomat.com/christian-dior-designer.html ● http://www.slideshare.net/SophiaTripp/dior-final-copy?next_slideshow=1 References