The document discusses the location of Lancel's Opera store in Paris, describing how it is situated in a historic and upmarket area near landmarks like the Opera and major shopping destinations, providing high foot traffic. While the surrounding neighborhood is prestigious, Lancel's prices are lower than competitors, so it aims to attract a broader market. The prime location is accessible and generates significant consumer traffic but also has duplicative retail space nearby.

1. Luxury Retail Management
Vivek Kapoor
Exchange Student

2. Agenda
• Brand
– History
– Values
– Kapferer’s prism
• International Strategy
• Financial Analysis
• Opera: Location and Surroundings
• Store Economics
• Shop Exterior
• Shop Concept
• Shop Events
• Shop Interior
p
– Observations
– Sales Experience
– Brand communication
– Merchandizing
• 3D Views
• Sensorial Experience
• Website
• Social Media
• Neiman Marcus
• Conclusions

3. Lancel : The Brand
1876 : These were the times of the carefree Parisians who
1876 : These were the times of the carefree Parisians who
flocked theatres, the new stores. Life was for living and enjoying.
This time epitomized thelégèreté. It was in these days that
Alphonse and AngèleLancel opened a small pipe‐making factory,
and specialized for smokers articles for the next 50 years.

4. Lancel : The Brand
• 1926: Lancel focused
on handbags and
accessories for ladies.
These years were
extremely innovative
and the Parisian ladies
fell in love with the
brand.
brand As travel
became easier, Lancel
introduced the Aviona
trunk specially designed
for cabins.

5. Lancel : The Brand
Lancel stands for the carefree
spirit, the French légèreté of sheer
elegance with a hint of frivolity.
l ith hi t f f i lit
The brand is recognized as a
symbol of Parisian elegance and
symbol of Parisian elegance and
imagination.
This recent advertisement
communicates that spirit with an
impromptu jump into the
impromptu jump into the
Concorde fountain

6. Lancel : The Brand
• Exquisite leather craft, innovative and designed by a lineage of
craft
leather masters, Lancel proudly asserts its quality
• In a new campaign in 2003 the brand made an effort to move
away from its stubborn position of quality and functionality to
move to a more “majestic” halo around the bags

8. Lancel : Identity Prism
Elegant, Sculpted looks and Modern, emancipated, empowered
body. Carries herself/himself and chic. They strike a balance
with dignity and poise, but can between sophistication and fun
be carefree and youthful
The brand relates to
the user as a
the user as a Gaiety, socialization, Pa
risian légèreté with
tionship
friend, a helper and
cohort. It inspires to innovation, experiment
Cultu
be impeccable and
be impeccable and ation, perfection.
Relat
ure
innovative, and of Modern, chic, leader
the highest personal
s a da d
standard
Achiever, successful, tasteful, co Fashionable, chic, frivolous,
nnoisseur
flirtatious, playful, impecca

9. International Strategy
• Lancel has been increasing retail
presence primarily through the 180
franchisee route 160
Lancel was d
• L l dependent heavily on
d th il 140
the French market till 2003 and a 120
slowdown impacted its sales 100
• Th current strategy is to expand
The t t t i t d 80
quickly into the new markets 60
specially Asia where they are 40
experiencing double digit 20
growth, clearly via the franchisee 0
route 2005 2008
• New boutiques were opened in
Hong Kong, Macau and Waffi DOS Franchised
(Dubai) during 2008 Source: Richemont SA Annual Reports

10. Lancel
International Botique Locations
Source: Lancel website

11. Financial Analysis
Lancel Operating Profit
• Strategy is to refocus on (Million Euro)
France and take the brand
back to its original 0
pioneering values ‐2 2005 2006 2007 2008
• Also, the brand wishes to ‐4
become an essential part
of every woman’s ‐6
wardrobe in France ‐8
• The new strategy has
shown limited results as ‐10
can be seen from the ‐12
declining operating losses
over the past years. ‐14
‐16
‐18 Source: Richemont SA Annual Reports

12. Lancel : Opera
The Paris Opera has always been a place that attracted the masses and the classes.
The theatres, café’s and Opera, the Ritz hotel in the vicinity all give the location an air
of gaiety and sophistication
As can be seen from the old postcards, it always was a place with large number of
footfalls
Today there are several other luxury brands and retail locations that further enhance
the relevance of this location such as the Galeries Lafayette and Rue de la Paix which
the relevance of this location such as the Galeries Lafayette and Rue de la Paix which
ends in this square.

13. Lancel : Opera
• Lancel moved into the Opera store in 1929
• The Opera (Grand Palais) was the hub of the elite and
the most exclusive form of entertainment in the late
19th century.
t
• The store currently is situated in a beautiful square
dominated by the opera, and lies exactly between the
Galeries Lafayette and the Place V dô
G l i L f tt d th Pl Vendôme.
• The store is situated right next to the Opera metro
exit

14. Location Analysis
y
Money
Changer, Swatch
Lancel
Grand Palais Bijoux Burma
j
Zara, Promod
Rolex
Maity
Rue de la Paix

15. Location Analysis

16. Around Lancel
• Galeries Lafayette
G l i L f • Google F
G l France
• Place Vendôme • Commerz Bank
ions
ommercial
• Rue de la Paix • SociteGenerale
estinati
• Opera • BNP Paribas
• Concorde • HSBC
De
Co
• Louvre Credit Lyonnais
• Zara • La Grand Café • Theatre Edouard
ment
• Geox • Café de la Paix VII
• Cinema Paramou
tertainm
• Swatch
S t h • Starbucks
St b k
opping
• Rolex • Hard Rock France • Cinema Gaumont
Bijoux Burma • Théâtre des
fe
•
Sho
Ent
Caf
• Promod Variétés

17. Luxury Hotels
• Hôtel Ritz
This list is not exhaustive
• Park Hyatt Paris-Vendome
but only indicative of the
• HôtelCostes
• Hotel Lotti Paris prestige associated with
ti i t d ith
• HôtelMeurice the location.
• Hôtel Westminster
• Le Grand Hotel These are some of the
InterContinental finest luxury hotels in
• Hôt l S ib
Hôtel Scribe the world, all within 10
• Radisson Blu Ambassador mins walking distance
Hotel
• Millennium Hotel Paris Opéra from Lancel
f L l

18. Location Analysis
• Lancel products lie in the lower end of the price range for
similar products from competitors
• The Brand is definitely targeting a broader market, and
hence needs to be exposed to traffic
• The location is extremely upmarket with the best luxury
hotels and historic buildings, but also generates a lot of
traffic due to offices, tourist attractions and popular
, p p
shopping destinations
• It is easily accessible by Metro and RER
• There is duplication of retail space in close-by locations, but
p p y ,
the shops probably cater to different clientele
• Lancel’s immediate neighbors cannot be categorized as
luxury brands
• There is heavy traffic on the road in front of the shop, and
walking is not very convenient in rush hours
• However, the location is excellent for exposing the brand
and i
d increasing recognition, and th large L
i iti d the l Lancel l tt i
l lettering
delivers well

19. Economics
Head Euros Per Explanation
p
Month
Rent 500,000 Area assumed 1000 Sq. Mts
Rent assumed 6000 Euro/Sq Mt./Yr – Based on Class lectures and
/ q /
age of contract
Staff Costs 40,000 Number of employees 10
Average salary 4000 Euro
Displays/Event 30,000 30,000 Euros per month (Assumption)
s
Sales 1,250,000 50,000 euros per day, 25 days open
1 250 000 50 000 euros per day 25 days open
Margin 675,000 Based on a multiple of 2 (Self owned store, lower comparable prices)
Overheads 62,500 5% of Turnover – Maintenance, Damages, Shop Lifting
Profit/(Loss) 42,500 3.4% of sales, low for a luxury brand
Comments: The entire store is not used for sales, a substantial portion ~40% is being used for
, p g
exhibitions. As the store is a flagship store, its target is to not only drive profits but to also
increase brand recognition, and communicate the values, and a small profit is actually good as
the other objectives are achieved.

20. Shop Exterior

21. Shop Exterior
The display window were aesthetically organized and uncluttered. The
The display window were aesthetically organized and uncluttered The
colors used were soothing and opulent looking. Photographs and quotes
from A. Lancel communicated the heritage of the brand.
Most people crossing the shop stopped to look at the products in the
windows, however few went inside.

22. Shop Exterior
The displays and doors of the store are made from dark polished wood cleverly nestled
between the stone pillars of the building. The stone pillars on the corner have Lancel
b h ill f h b ildi h ill h h l
engravings in them.
The display windows featured no special decorations for Christmas, only a couple of
large prints of Christmas trees made out of Lancel symbols and motifs.
l i t f Ch i t t d t fL l b l d tif

23. Shop Exterior
• The side of the shop not
facing the square faces a
newspaper stall.
• There was a man selling g
roasted chestnuts on a
shopping cart on the shop
corner
• The door on this side was
closed with no markings or
directions to the other door
• Some of the paint/polish on
the wooden exterior of the
shop was chipping off
• The stands used for display
of products were covered in
p
a suede like material that
was very scratched and
had loose ends and
stitching
g

24. Shop Exterior
• Th L
The Lancel l
l logo adorned the windows of the 1st fl
d d h i d f h t floor
• The pillars of the building were bathed in red light, drawing
atte t o away o t e ag
attention a ay from the magnificent Grand Palais. If it were
ce t G a d a a s t e e
not for this unusual lighting, all eyes would turn towards the
Opera
•Lancel in large type is written
across the building at the 2nd floor
in white. The name appearing
multiple times looks loud and
p
unsophisticated.
•The prices of the products in the
display windows were
consolidated in small frames
•There was no doorman or any
staff at the door of the store to
offer any help or welcome

25. Shop Concept
As can be seen from the 1930’s
advertisement, the shop itself was a
destination when it was made
h
It was entirely renovated in 2004, however
the lower floor already looks old
Many people stop to look at the display
yp p p p y
windows, but very few enter the shop
As can be seen in the old ad., the shop had
As can be seen in the old ad the shop had
an openness and spaciousness about
it, while today it feels cramped and closed
Lancel Opera Advt. in 1930

26. Shop Events : Lancel Harcourt
Vintage exhibition
Since September 2009, the flagship Opera store of
Lancel is showcasing the masterpieces of the Lancel
heritage. These include various items that were a rage in
their times, and were turning points for the company
and the fashion trends.
The store was spruced up for the inauguration ceremony
with the signature red color.

27. Images and actual vintage products are
exemplifying the Lancel heritage inside the store

28. Shop Events
The Opera store is the flagship store for Lancel and hosts all special events and
exhibitions. It is currently hosting a public exhibition of the most select Lancel
products that have shaped the brands heritage. These include the crocodile and
products that have shaped the brands heritage These include the crocodile and
umbrella bag among others.
This exhibition also showcased the transition of Lancel from a smoking accessory
brands to a brand for bags for both men and women.
brands to a brand for bags for both men and women
There is no signage in the store informing clients about this exhibition. Hence no‐one
seems to be going up to see it and the sales people also do not inform customers of its
p
presence. So an excellent opportunity to increase brand awsareness is being wasted
pp y g

29. Shop Interior
The ground floor had 2 entrances, one of which was closed. Most of the windows had displays
of products making the inside of the store feel cramped and suffocated.
The shelves on which the products were kept were made of white laminate which was chipped
on the edges and had scratches on it making it look old and untidy
The floor was made of tiny mosaic tiles, probably preserved from the original shop. In several
places in the mosaic, a golden L was embedded and at the entrance, the entire logo embellished
the floor in golden mosaic tiles.

30. Instore Experience : Observations
• I was the only Customer on the floor
• 7-8 sales associates
• Comfort - One Large imposing man p
g p g probably security
y y
standing next to the cash counter and closely
observing all the customers, very unnerving
• Cleanliness - Shelves made of white
laminate, chipped and scratched in places
• Opulence - Large glass elevator and ordinary
staircase for going to other floors
g g
• Comfort - A couple of chairs against the walls to
sit, looked more for the sales people than customers –
No place to sit
• Large red chandelier cutting across floors in the
centre of the shop
• No open space cramped by table displays and
space,
accessory stands

31. Instore Experience : Sales
• Greeting - At the door a sales person of Chinese origin greeted
me. All the other sales people seemed to be native French
• Language - I was greeted in French, and I inquired if she spoke
English, to which I got a nod and an reply in French which I couldn’t
couldn t
understand
• This went on progressively and the price range of the bags kept
reducing
• Attention - I requested to walk around to look at the bags, but she
kept bringing bags
• Sales representatives were pacing around the shop.
• Uniform - Sales people wearing black suits, black glove on left hand
• Behavior – Sales people were all curt and were not smiling at
customers
• Modeling – I was alone so the sales person herslef modeled holding
the bags so that I could picture them better
• Demographics - One sales person of Chinese origin, all others
looked French, most aged between 30-40 years

32. Instore Experience : Brand
• Brand Heritage – The sales girl did not try to sell
the bag by showcasing Lancel heritage. She stuck to
functional aspects.
• B and Codes - Fl
Brand Flooring made of mosaic tiles, with
i d f i til ith
golden ‘L’’s in places, very antique looking
• Information - While I examined the bag she told
me that it took 50 pieces of leather and 100 man
th t t k i f l th d
hours of work to make one of those bags
• Information - She also offered to open and
showcase th insides of the b
h the i id f th bags explaining each
l i i h
of the pockets and informing me that it was a very
good and functional bag at each of these instances.

33. InStore Experience - Merchandizing
• All the bags were available in several colors
th b il bl i l l
• Some bags were available in different sizes
• All these were not displayed, but when I
inquired about a specific color in a bag, she
was able to bring the bag from a store in 5
minutes.
• Expensive bags were kept on a soft
sofa-like display, normal bags were kept on
shelves, cheap bags were hung on stands
and accessories and small bags were in
display cases.

34. Instore Experience
• At one point the sales representative stopped in mid
p p pp
conversation and walked to walk some customer out!
• She handed the bag to the security man who handed the
bag to me and ordered me (pointed) to move back with
the b !
th bag!
• The sales representative came back and continued
without apologizing!!
• I told her I would like to take a look at the collection myself
t ld h ld lik t t k l k t th ll ti lf
and she ignored me and kept bringing bags!!
• Without inquiring/judging my budget, she kept showing me
progressively cheaper bags
• I told her that I’d like to take some time to think about the
purchase, and she showed me a cheaper bag!
• The Security man’s eyes kept following the customers!
man s
The experience was a mixed bag. The sales people did some things right, but did
most things wrong. The brand did not communicate its heritage through the sales
process, only through the exhibition and old framed posters.

35. Shop 3D View (Ground Floor)
Scarves and Display
Accessories Window
Closed
Door
Stairs
Stand for
Stand for
Cash
cheaper
Counter
bags
Main
Glass
Entrance
Elevator

36. 3D View
3 Walls with
Small shelves for
Bags p
products
Conter
Adjani Closed
Bags display, Back
wall has
shelves

37. Sensorial Experience
Sight
Si h All products were arranged neatly on shelves or
ll d d l h l
stands. The lighting was sufficient, but the store
did not feel open. No display screens were used
Sound No music was playing in the store. The traffic
outside was audible inside the shop, though
muffled.
Smell There was no odor in the store, not even of new
leather.
Touch The materials used within the store for shelves,
drapes etc. were not luxurious, the materials
p
used in the window displays were better
Taste The look of the store was a mixture of vintage
and modern, this looked tacky so wasn t probably
and modern this looked tacky so wasn’t probably
done well

38. Website
2005 – No website, Coming Soon
2006 (Jul) – Website launched in French and
English. Use of models for initial few years of
website is in contrast to current site
2006 (Jan) – No website, Coming Soon
Source: Wayback Machine, Internet Archive

39. Current Website

40. Website : Brand Communication
• Th website h excellent
The b it has ll t
communication of the brands heritage
• Videos, old photographs and details of
merchandize narrate the Lancel story in
an easy to use interface
f
• No models are used in the current
website and the focus is on products
and heritage
• Information about events and
boutiques is also available on the site
q

41. Website : Store Locator
• Easy to use well organized store
locator on the site

42. Social Media
Lancel is active on Social Networking
is active on Social Networking
sites
Regular updates about new
products, sites and events
Videos and photos from events and
Vid d h f d
shoots
Facebook has 3100 followers, twitter
has 250 and these are possibly the
brands biggest fans
Showcase websites for products
Sh b it f d t
promoted through social networking

43. Neiman Marcus
• I felt as if the sales person was trying to
f lt th l t i t
make a sale by reducing price
• Sh did not inquire about my
She ti i b t
requirements till I offered them
• She was focusing on functional aspects
rather than than communicating the brand
ethics and values
• Therefore, I think she only wanted to make
a sale, not a good one for the customer.
• So the store does not follow the Neiman
Marcus philosophy.
p p y

44. Conclusions
• Lancel has an excellent location for the Opera store
• The quality of products is good
• The website and online activities support the stores
pp
well
• The customer experience is not up to scratch.
Interaction with sales people was not relaxed and
p p
involved
• The store does well to communicate the brand
g
heritage
• No special efforts were made to establish a long term
relationship
• I was not allowed to move freely inside the store, the
store
sales person wouldn’t leave me alone!
• I entered the store with an actual intention to
buy a bag as a gift and exited the store without
gift,
the bag!

45. Thank You