Raphaelle Darragon

Farouk Dhanidina

Irina Gurova

Salome Katwiwa

Peter No

Sandia Nassila

Anney Lien

Rejuvenating Moynat

“On the Road to Color”

Luxury Distribution and Retail

Winter Trimester

April 2nd, 2013

Agenda

2

• Moynat – The revival of a brand

• Positioning – Value Proposition, Competitors, SWOT

• Retail Concept & Customer Experience

• Marketing & Got to Market Strategy

• Financials

Moynat – The revival of a brand

3

Luxury, by Moynat heritage, craftmanship, timelessness, elegance, simplicity

Value proposition “ On the Road to

Color”

4

Target Market • Young adults “Millenials” ( 20 – 35 years old) with a high purchasing power

Purpose (Compelling need…)

• Attracting a younger clientele is congruent with the rebirth of Moynat, and will allow the brand to be more competitive towards its main competitors (i.e: Goyard, Hermès, Vuitton)

Solution (Product / Service)

(Pricing / Promotion)

• Creation of a line of bags called “On the road to Color” targeting young adults (Male, Female), that will be based on the brand’s existing products (Régane, Cabotin, Ballerine, Poursuite) and propose them in new colours and fabrics, and allow for premium customization by artists.

• Price structure will remain the same for the new color proposals, but customization by an artist will vary between 800€ and 1500€ per bags

• Specific promotion using “Promenade” series around the world will be launched, as

well as global paper & online campaign

Benefits • This new line will allow the brand to grab a new segment of clients that would become

long-term clients, and are rapidly becoming top luxury customers worldwide

Experience • Opening of Moynat’s pop-up stores in 10 Locations

• Development of the brand’s website

Differentiator • Traditional crafmantship, exclusivity of the line

Value proposition “ On the Road to

Color”

5

Régane Cabotin

Ballerine Poursuite

•Customization with local artists

6

Value proposition “ On the Road to

Color”

Moynat – Competitors I

7

Moynat – Competitors II

8

SWOT

9

Moynat

“On the Road to Color”

Strengths

- Exclusive brand offering traditional craftsmanship

- Brand with strong history and DNA

- Recent launches of younger design

- New collaboration with young artists

Opportunities

- Luxury industry is growing continuously

- Luxury customers are becoming even younger

- Support and important investment from the Arnault Group

Weaknesses

- Brand lacks recognition compared to its competitors

- No strong recognizable bag models

- Not much choice in terms of bags and lines of bags

- Weak online presence

- Exclusive point of sale,only 1 store in Paris

Threats

- Strong competitors with loyal customers

- Current clients of the brand might feel left apart with the new direction the brand is taking

Store concept and customer experience

10

Being

welcoming,

sincere and

friendly to

customers

Treat them

as guests

to

someone’s

home

Browse the catalogues

together and explain new

trends

Personal assistant who knows

very well his clients

Why not have souvenirs?

“which color did you

choose to wear today?”,

“which is your favorite

Moynat bag?”

Pop-up stores

Go To Market Strategy

11

•Development of Online Presence

Personnalization of the bag (choose colors, patterns)

The client is contacted by sales representatives

•New Pop Up Stores

• Focus of stores in USA & Asia

12

Go To Market Strategy - Stores

Country City Location

United Kingdom London New Bond St.

USA Los Angeles Fifth Avenue

USA New York Rodeo Drive

China Beijing Wangfujing

China Shanghai Plaza 66

Japan Tokyo Ginza

UAE Dubai Burjuman

RUSSIA Moscow Tverskaya

Go To Market Strategy - Pricing

13

•Pricing Strategy

Line of Bag Estimated Price (Euro)

Cabotin 2550

Poursuite 2900

Ballerine 3000

Rejane 3200

•Customization Option • Simple Logos (200-600 Euro) • Limited Edition Prints (800-1500 Euro)

Go To Market Strategy - Promotion

14

•Celebrity Partnerships

• Continue with Jeanne Damas & Caroline de Maigret

• Join other celebrities, bloggers such as:

Gaspard Ulliel, Lou Doillon, Natalia Vodianova, Yao Chen, Miroslava Duma…

•Increased Advertising as a whole

• Magazine Advertising

• Internet Advertising (Social Media Collaborations, launch the “Promenade” series etc.)

• Fashion Weeks

• Celebrity Events

Financials – Real Estate Expenses

15

Main Store Paris

Source: Cushman & Wakefield Research Publication – « Main Streets across the world »

Pop-up Store - Annual Rental

Country City Street €/m²/yearSize

(sqm)

Length in time

(weeks)Total (euros)

UK London New Bond Street 7,942 120 8 146,622

USA New York Fifth Avenue 21,204 100 8 326,215

USA Los Angeles Rodeo Drive 540 100 8 8,308

Singapore Singapore Orchard Road 3,053 120 8 56,363

Hong Kong Hong Kong Tsim Sha Tsui 13,122 100 8 201,877

China Shanghai Plaza 66 2,745 120 8 50,677

China Beijing Wangfujing 3,421 120 8 63,157

Japon Tokyo Ginza 8,962 120 8 165,452

UAE Dubai Burjuman Center 1,300 120 8 24,000

Russia Moscou Tverskaya 3,546 120 8 65,465

Total 1,108,135

Financials – P & L

16

Main assumptions:

- Sales based on 2011 performance

- Cost of good sold: 35%

- Marketing and sales: online management,

advertising, Pop-up stores launch

- General administrative: 8%

- Inflation rate : 2%

- LVMH 2012 annual report

Financials

17

Year 2: EBITDA breakeven at turnover of €2,897,952.7, i.e. around €8,000 per day.

Year 1 Year 2 Year 3 Year 4

2,212,013 2,639,816 3,042,652 3,506,961

(774,204) (923,936) (1,064,928) (1,227,436)

1,437,808 1,715,880 1,977,724 2,279,524

Online Management (100,000) (77,000) (77,000) (77,000)

Advertising (350,000) (357,000) (364,140) (371,423)

Pop Up Store launch (300,000) - - -

Other (20,000) (20,400) (20,808) (21,224)

(176,961) (211,185) (243,412) (280,557)

incl. Payroll and related expenses (16,000) (16,320) (16,646) (16,979)

490,847 1,050,295 1,272,364 1,529,321

Sales in Pop Up stores 16,207,800 - - -

Cost of sales in Pop Up stores (5,565,788) - - -

Collaboration with artists (522,000) - - -

Other (55,692) - - -

10,555,168 1,050,295 1,272,364 1,529,321

Rent

Paris (1,178,200) (1,201,764) (1,225,799) (1,250,315)

Pop Up Stores (1,108,135)

8,268,832 (151,469) 46,564 279,005

Sales in Paris Store

Cost of sales Paris

GROSS MARGIN

Maketing and selling expenses

EBITDA

GROSS OPERATING PROFIT

Other operating income and expenses

PROFIT FROM RECURRING OPERATIONS

General and administrative expenses

Any questions ?