...Brief History Guccio Gucci opened a small shop selling leather goods on the via del Parione in Florence in 1923. He sold luggage imported from Germany and offered customers with repair services. As the luggage business prospered, he opened his own workshop to produce his own design. The business in the 1920’s created huge profit and success however in the 1930’s Gucci began to face some challenges when the sanctions imposed on Mussolini. He faced shortage of imported leather yet this challenge gave him innovated idea of using new materials such as canvas and produced small leather goods, wallets and belts that are still big part of the Gucci company. Gucci became an internationally known luxury brand after World War II and over the next two decades the company flourished. In the1970s Gucci began to fall down due to internal conflict. Most of the conflict was between Aldo and Rodolfo Gucci, the founder’s surviving sons over strategy and control of the company. Rodolfo Gucci died in 1983 and left his 50% stake in the company to his son Maurizio. One year later, Maurizio seized control over Gucci and determined to transform Gucci into a modern retail organization. Maurizio failed. Years later, Tom Ford and Domenico De Sole are given the credit for turning Gucci around in 1994 and turned the company into a powerhouse luxury brand. This case study will discuss why Maurizio failed to transform Gucci and how Tom Ford and Domenico De Sole rebuilt Gucci again. Luxury Industry ...
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...The success of luxury brands in Japan and their uncertain future Ronald Jean Degen International School of Management Paris 2009 Working paper nº 52/2009 2 globADVANTAGE Center of Research in International Business & Strategy INDEA - Campus 5 Rua das Olhalvas Instituto Politécnico de Leiria 2414 - 016 Leiria PORTUGAL Tel. (+351) 244 845 051 Fax. (+351) 244 845 059 E-mail: globadvantage@ipleiria.pt Webpage: www.globadvantage.ipleiria.pt WORKING PAPER Nº 52/2010 Janeiro 2010 Com o apoio da UNISUL Business School 3 The success of luxury brands in Japan and their uncertain future Ronald Jean Degen Ph.D. Candidate at the International School of Management Paris Vice Chairman of Masisa Chile Address: E-mail: degen@lomasnegras.com Phone: +55 41 9918 9000 Cabanha Orgânica Lomas Negras Ltda. Caixa Postal 95 Campo Alegre, SC 89294-000 Brasil Ronald Jean Degen is in the Ph.D. Program of the International School of Management in Paris, and the Vice Chairman of Masisa in Chile. He was a Professor at the Getúlio Vargas Graduate Business School of São Paulo where he pioneered the introduction of teaching entrepreneurship in 1980 and wrote the first textbook in Portuguese on entrepreneurship published in 1989 by McGraw-Hill. He just published a new textbook on entrepreneurship that was published in 2009 by Pearson Education 4 The success of luxury brands in Japan and their uncertain future ABSTRACT The Japanese are the...
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...Introduction Gucci India Story………………… Indian Fashion Retail Landscape FDI Scenario………………… Modes of Entry of Foreign Retailer………………… India as a Manufacturing Hub for Global Luxury Brands Indian Luxury Market Indian Luxury Product Market- A Snap Shot………………… The Luxury Consumer Profile Target Groups for Luxury Brands………………… The Competitive Trend Creating an International Luxury Fashion Brand……… Key issues facing the industry Major Cost Component………………… Gucci as a Company Gucci’s goals and values………………… Philosophy………………… Gucci as a Brand………………… Marketing Distribution Channel………………… Revenue Breakdown Prices in Indian Market The Bumpy Road? . . 2010 ANNEXURES I II III IV V VI VII VIII IX X XI XII XIII KEY DATES………………… INDIA VS CHINA AS A MANUFACTURING HUB……………… THE INDIAN WEALTH LEAGUE………………… SHOW ME THE MONEY- WELATH DEFINITIONS…………… HNWI POPULATION GROWTH RATE 2007 (%)…………… INDIA’S ‘BRAND FREAKS’………………… 28 29 30 30 31 32 33 34 35 36 36 37 NO. OF CATEGORIES VS MARKET IMAGE………………… GUCCI GROUP DIVISIONS………………… DISTRIBUTION CHANNELS………………… REVENUES BY CHANNEL………………… GROUP REVENUES BY REGION………………… CAGR 1994- 2001………………… PPR CONSOLIDATED 2004…… FIGURES AT YEAR END 37 . . 2010 GUCCI Fashioning India 1. Introduction The House of Gucci, or simply Gucci is one of the more established premium fashion brands in the world. Its success worldwide has depended largely on its effective marketing strategies and a wide product range. Founded in Florence in 1921, Gucci as a leading...
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...ERASMUS Manon LAGARDE (20061333) Antoine PETERS (20061286) Helene PIED (20061239) ERASMUS Manon LAGARDE (20061333) Antoine PETERS (20061286) Helene PIED (20061239) Helene FOLEY Helene FOLEY BUSINESS STRATEGY BUSINESS STRATEGY Industry of French Luxury perfumes Industry of French Luxury perfumes ------------------------------------------------- Table of contents Executive Summary 3 I. Industry Overview 4 II. PESTEL Analysis 9 1. Economical& Social 9 2. Legal 12 III. PORTER 14 1. Rivalry among existing competitors 14 2. Threat of new entrants 14 3. Threat of substitute products or services 15 4. Bargaining power of suppliers 15 5. Bargaining power of buyers 15 IV. Individual Part – DIOR 16 1. Company Background 17 2. SWOT Analysis 19 3. Company Analysis 20 4. Competencies and resources of the firm 22 5. Conclusion and Recommendations 24 V. Individual Part - CHANEL 27 1. Company Background 28 2. Financial aspect 31 1. SWOT of the company 32 3. Company Analysis 33 4. Competencies and ressources 34 5. Conclusions and Recommendations 35 VI. Individual Part – Yves-Saint-Laurent 37 1. Company Background 38 2. SWOT Analysis 41 3. External Environmental factor 42 4. Competences and resources of the firm 42 5. Recommendations 43 VII. Bibliography 45 IX. Appendices 47 1. PESTEL 48 2. Survey 51 3. Results 52 ------------------------------------------------- Executive Summary ...
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...limited-edition sports car, a round-the-world trip or a million-dollar beachfront home. Goods by Gucci, however, top the lists of luxury brand lovers. That's according to an online survey conducted late last year by The Nielsen Company, a market research firm. It asked 25,000 consumers in 48 countries which luxury brand they would buy if money were no object. Besides Gucci, respondents chose Chanel, Calvin Klein, Louis Vuitton and Christian Dior (other-otc: CHDRF - news - people ). It's easy to see why Gucci reigns. Worldwide sales, though recently tapered, have jumped since Mark Lee became president of the company in 2004, then CEO the following year. In 2007, sales increased 11%; that's on top of a 17% increase in 2006 and a rise of 18.4% in 2005. Gucci is a part of the Gucci Group, which has a number of fashion brands in its portfolio, including Yves Saint Laurent and Sergio Rossi. PPR, a French holding company publicly traded on the Euronext exchange in Paris, owns the Gucci Group. Complete List: World's Most Desirable Luxury Brands Video: CEO Spotlight: Gucci "Gucci manages to offer high fashion and very commercial items," says Michael Macko, fashion director at Saks Fifth Avenue (nyse: SKS - news - people ). "That red and green stripe is some of the most iconic luxury branding ever created, and people want a piece of it." Behind The Brands Born as a leather goods company, Gucci is now most well known for its logo-ed handbags. When the company opened a new 46,000-square-foot...
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...analysis report of: LVMH Hand-in date: 25.11.2010 Campus: BI Oslo Examination code and name: GRA 62123 Financial Reporting and Analysis Table of Contents EXECUTIVE SUMMARY 3 MARKET REVIEW: 4 COMPANY REVIEW 5 Management compensation 6 BUSINESS DESCRIPTION 7 Business Risk Analysis 8 FINANCIAL PERFORMANCE 9 Profitability 9 Activity Ratios 12 Financing and Liquidity 13 CASH FLOW ANALYSIS 15 VALUATION 16 CONCLUSION 17 References 19 Appendix 20 EXECUTIVE SUMMARY This paper analyzes LVMH group. Taking the recent developments and prospects in luxury goods industry as a starting point, the first part analyzed and compares LVMH with Hermes International and GUCCI, focusing in particular on performance which is analyzed through their activity, liquidity and financing and profitability position. The next part scrutinizes LVMH’s cash flow statement in order to evaluate its operating activities as well as the ability to cover its investments. The paper will conclude that LVMH presents a good investment alternative considering other companies in the same industry. Second, LVMH have a low risk given its solid financial structure and sufficient liquidity. Sales have grown at an average annual rate of 7.5% over the past five years driven by organic growth and acquisitions. MARKET REVIEW: APPAREL, ACCESSORIES & LUXURY GOODS INDUSTRIES Concetta Lanciaux, ex head of the Human Resources for LVMH...
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...www.sciedu.ca/jbar Journal of Business Administration Research Vol. 1, No. 1; 2012 Luxury Brand Exclusivity Strategies – An Illustration of a Cultural Collaboration Anita Radón, PhD Post Doc. Researcher The Swedish School of Textiles, University of Borås SE-501 90 Borås, Sweden Tel: 46-705-918-306 Received: May 30, 2012 doi:10.5430/jbar.v1n1p106 E-mail: anita.radon@hb.se Online Published: July 16, 2012 Accepted: July 14, 2012 URL: http://dx.doi.org/10.5430/jbar.v1n1p106 This research is supported by Handelns Utvecklingsråd. Abstract This paper examines how luxury fashion brands renew themselves in order to balance the exclusivity that is associated with luxury goods and with profit maximization. Using consumers’ demand theory it is shown how luxury fashion brands go through different phases to renew the perception of exclusivity. A proposed model for the stages a luxury brand goes through to keep up the perception of exclusivity is provided. The focus is on identifying how luxury fashion brands renew themselves in order to create a perception of exclusivity and scarcity. The limitations of the study is that research has yet to be done on how consumers of luxury fashion goods perceive these efforts put forward by luxury fashion brands. Problems associated with luxury fashion brands, theoretically as well as on a practical level, and the crucial need for a perception of exclusivity and how this perception can be maintained are addressed. This paper contributes...
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...Zhengyi Fang Marketing 350 Prof. Eguchi Aug 8th 2013 Marketing Analysis of Louis Vuitton Classic Handbags Louis Vuitton handbags and luggages are known and recognized throughout the world as the symbol of extreme quality, prestige and luxury. It is one of the biggest and most profitable luxury brands in the world right now. Mr. Vuitton established the company in 1854, and he designed and introduced flat-bottom luggage trunks made with trianon canvas. The flat-bottom luggage became the favorite of Empress Eugenie, and it has become the luggage choice for the wealthy. In 1867, the company won an award at the World Exposition in Paris and its influence spread out in France. In the following year, Louis Vuitton opened its first overseas store in London. In 1892, Louis Vuitton passed away, and his son George Vuitton took over the company and build the company into a worldwide corporation. In 1893, it entered the U.S market. In 1896, it launched its signature Monogram Canvas print, and secured worldwide patents for it. In this essay, I shall analyze the micro and macro environment of the Louis Vuitton classic handbags, and discuss the its marketing mix. Microenvironment It consists six actors, which are the company, suppliers, marketing intermediaries, customer markets, competitor, and public, these factors are close to the company and can affect the company’s ability to serve its customers. * The company The company itself is the first force in the company’s microenvironment...
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...Gucci, Louis Vuitton, & Vertu – Marketing Lessons from some of the World’s Most Exclusive Brands. By Conor Carroll, Kate Hurley & Ann Treacy, University of Limerick. Creating luxury brands is a difficult marketing exercise. It requires heavy investment in marketing communications, excellent product/service quality, but above all these brands have to try to remain fashionable, which is notoriously difficult. Gucci, Louis Vuitton and Vertu are three successful so-called luxury brands, that retail to the high-end market. Both Gucci and Louis Vuitton are well-established brands that have been around for decades, even centuries. Gucci is a well-established organisation that has being designing and retailing clothes and accessories since 1921. The Louis Vuitton brand has been around since 1850. However Vertu, a relatively new kid on the block, has only just entered the luxury communications marketplace in 2000. Vertu sells expensive mobile phones that retail for thousands of pounds. Only a handful of brands can create a high status appeal among the world’s super rich (e.g. Ferrari, Rolex, etc.). These brands have to adopt innovative marketing strategies in order to succeed in this dynamic environment. What do they do differently to create this luxury appeal? Marketers are moving from the traditional marketing mix approach towards greater use of experiential marketing. This is where customers are treated as both rational and emotional individuals that seek ‘experiences’...
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...V. Marketing Plan In this chapter is marketing plan of the Company XY. It is a description of its competitors, the demand for the service, and the strengths and weaknesses from a market standpoint of both the business and its competitors. In more detail, the field of activity, potential customers, the location, the operating markets and the business level is clarified. After chapter five, the operational plan will be explained. 1. Market description To start, the Company XY is doing business in the fashion branch. In more detail, the business acts in the online-renting sector for fashion accessories like handbags/ clutches, belts and sunglasses. Hungary is a landlocked country in central Europe with an estimated population of almost 10 million people. There are 6.2 million internet users in Hungary which represents 62% of the total population and 29% of the internet population have broadband connections with speeds equal to or better than broadband speeds in the UK. Internet Population: 6,176,400 GDP Per Capita: $18,815 Internet Market Potential (GDP*Users/million): $116,209 million Internet Advertising Market Size: $153 million (Global Customer Acquision) The Hungarian womenswear market is expected to generate total revenue of $592.3 million in 2012, representing a compound annual growth rate (CAGR) of 2.4% between 2008 and 2012. - (MarketLine Industry Profile|Womenswear in Hungary | February 2013) Clothing is an essential item, with consumer choice being...
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...In this post modernist era, where people reject objective truths in favour of relativism we see lot of population migrating, trying out new jobs,progressive independent women questioning the social norm of male superiority. This is seen particularly in the emerging economies who are the game-changers this century. Joint efforts of all countries towards strengthening the global economy,as well as increasing efforts in business oriented policies and eradication of trade barriers has resulted in the urbanisation of these markets. Another important aspect being the economic hit taken by the developed countries which has made brands shift their focus on the emerging countries market. (BBC News,2013) It is one of the most significant trends seen on the global level. The annual consumption of emerging markets by 2025 will reach $30 trillion and account for nearly 50% of the world’s total consumption. (McKinsey) It clearly indicates the supremacy of emerging economies vis a vis the developed economies. Moreover the average age of the population in emerging economies is young and is expected to be even younger meaning the majority of population will be in the age bracket of 15-65 which is considered as the working age population. This indicates growth prospects in terms of more employment and therefore more disposable income in the hands of these consumers. If we consider the four BRIC countries plus the tier 2 emerging markets, together they account for 3,4 billion people,more than half...
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...2.0 Introduction With the rising number of retailers, it is becoming essential to have strategies that work not only in the retailer itself but also to help it survives from the competitors in the same market. The aim of this report is to find the best-suited strategies for Mulberry, which is struggling to stay and compete in the market. This report presents analyses used to evaluate the internal and external environment and positioning of the retailer in order to get the rationale behind the retailers’ selected strategies. Burberry Founded in 1856 by Thomas Burberry, Burberry is a British luxury fashion brand, which is known for its outerwear (“Company History”, n.d.). In 2014, it reached over £400 million revenue with 193 stores opened all over the world (Burberry Group Plc, 2014). Large leather goods are one of the products that boosting the business which represents more than 30% of total revenue followed by women and men trench coat and its latest product line which is Burberry Beauty with revenue reached £151 million as of march 2014 (see Appendix 1). The biggest contributor of sales revenue is Asia Pacific region with the least mainline stores compare to Americas and Europe, Middle East, India, and Africa (EMEIA) region (Euromonitor, 2014). Realised the need to go digital and capture the Millenials segments, Burberry go into seamless approach by launching Burberry Bespoke which allows customers to create their own design of clothing. Burberry Kisses the latest...
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...scarves, fragrance and fine jewelry. Continued development of new categories has further established the signature style and distinctive identity of the Coach brand. Together with our licensing partners, we also offer watches, footwear, eyewear and fragrance bearing the Coach brand name. Marketing Environment Coach has many competitors but their top three competitors are Dooney & Bourke, Kate Spade and Michael Kors. Dooney & Bourke started in 1975 and is an American made brand; Kate Spade was started in 1993 and is also an American brand and lastly, Michael Kors which was started in 1981, is and American brand. Coach reaches a larger demographic compared too many of their other higher-priced competitors, such as Louis Vuitton, Prada, Gucci, Cole Haan and Dooney & Bourke, because Coach says that they are “affordable luxury”. These competitors are focused on a higher-fashion, higher income demographic than Coach is. Dooney & Bourke and Cole Haan also stress “accessible luxury” which makes them Coach’s key rivals. Coach continues to be one of the best recognized accessories brands in the United States, and is actually the leading American manufacturer and retailer of leather goods, accessories and apparel for women and men. The largest player in the United States luxury handbag market is Coach with 36% market share. Coach is the second highest-selling luxury handbag retailer in Japan with 17% market share. The company is retaining as well as attracting new customers and growing...
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...3348427 ZALIKHA BTE ZANUDIN 3348751 LOKE JIE YING ANGELA 3348602 Table of Contents Introduction 2 Section A for question 1 4 Type chapter title (level 2) 5 Strength, Weakness, Opportunities, Threat (SWOT) Analysis 6 Section B for question 2 4 Product/Market Expansion Grid 5 Product/Market Expansion Grid Cont’ 6 Section C for question 3 4 Demographic characteristics 5 Perceptual Map 5 Integrated Marketing Communication (IMC) 6 Conclusion 4 References 4 Introduction Executive Summary The initial part of the report compares Shanghai Tang with 2 others luxury ready-to-wear brands in the western market, namely Chanel and Dior. It discusses the demographic and cultural environmental forces faced by Shanghai Tang when competing with other luxury ready-to-wear brand in the western market followed by a SWOT (Strengths Weaknesses Opportunities and Threats) analysis to identify both the internal environment (strengths and weaknesses) and external environment (opportunities and threats) that Shanghai Tang is facing. Through the SWOT analysis, we came up with a recommendation to either defend or expand Shanghai Tang’s market position. Secondly, a product expansion grid was used to discuss the possible strategies Shanghai Tang can adopt for expansion. The product expansion grid was also used to determine business growth opportunities. It consists of four quadrants,...
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...LVMH Introduction to the company: Louis Vuitton Moet Hennessy (LVMH) is the world’s leading luxury goods group, and is present in all luxury sectors. The group’s portfolio consists of 60 different brands with more than 2,400 stores worldwide and is divided into five different strategic divisions: Wines and spirits; Fashion and leather goods; Perfumes and cosmetics; Watches and jewellery; and selective retailing. Their parent company is Christian Dior S.A., which holds 42% of LVMH shares and 59% of its voting rights. The strategic Assets of LVMH: Tangible Assets: LVMH possesses a database of information on their customers’ buying habits and preferences, as well as patents and copyrights on various brand names and products. System Assets: The organizational structure of the group is decentralized: the separate divisions operate independently of each other. The group also owns or controls a large proportion of their distribution channels. LVMH also possesses the infrastructure to create and distribute products of the high quality expected of their brand. Structural Assets: The group has expanded through several acquisitions, which have allowed it to take advantage of numerous synergies. It also has infrastructures and systems in place within emerging markets. Knowledge Assets: LVMH possess the design and technical knowledge to create their brands’ products, as well as the entrepreneurial insights of their some 83,000 employees. Relational Assets: LVMH...
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