Dior. FIXZ Solutions

Amrita KareSanyam PandeySakib HussainZachary 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

SWOTAnalysis

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 -1092. North America -

483. 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 SegmentsAge: 25-45~50Income & 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=9268600000000

0● 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

Questions?