developmentof luxurybrandspart1introduction
TRANSCRIPT
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Development of Luxury Brands
Gilles Chavet pour EMC Campus 2012 / 2013
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Evaluations
• Participation ( 10% ) • Quizz at the end of each class ( 40% )• Written ( 15% ) and oral presentation ( 35%): « How
new technologies, outsourcing and ecology will impact Luxury business development.”
Gilles Chavet pour EMC Campus 2012 /
2013
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Luxury for you
On a piece of paper please indicate 3 brands that represent luxury for you, in any sector.
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Presentation gc
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Agenda
• 1st Part : Overvue• 2nd Part : Market • 3rd Part : Product• 4th Part : Managing • 5th Part : Presentations
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Luxury Industry in France
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Secteurs industriels français les plus performants
• Industries agro-alimentaires 139,7 milliards d’euros.
• Bâtiment et travaux publics 137 milliards d’euros.
• Industrie automobile 109 milliards d’euros.
• Industries de la chimie 96,6 milliards d’euros.
• Transformation des matériaux (acier, aluminium, verre, plastiques, caoutchouc) 65,1 millliards d’euros.
• Télécommunications et technologies de l’information et de la communication 45 milliards d’euros.
• Industrie pharmaceutique 40,6 milliards d’euros.
• Industries de la mode et du luxe 35 milliards d’euros.
• Industrie aéronautique et spatiale 32,1 milliards d’euros.
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Luxury Brands
• Know-how • Awareness of the public • Global presence in the world • But also…
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Luxury Brands
•Dream •Desire•Belong to a group, a tribe … to be developped
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The branches of luxury industry
• Fashion & Leather goods• Perfumes & cosmetics• Jewerly & time pieces• Wine & spirits• Art of the table • Selective distribution • Tourism & hospitality industry
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Fashion & Leather goods France
• Louis Vuitton• Chanel • Dior• Hermès• Goyard• Givenchy• Celine• …/…
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Fashion & Leather goods UK
• Burberry• Paul Smith• Hilditch and Key• …/…
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Fashion & leather goods USA
• Ralph Lauren • Calvin Klein• Tom Ford• …/…
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Fashion & Leather goods Italy
• Gucci• Prada• Armani• Dolce Gabbana• Fendi• …/…
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Fragrance & cosmetics France
• Chanel• Dior• Guerlain• Yves St Laurent• …/…
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Fragrance & cosmetics Japon
• Shiseido• Shu Uemura• …/…
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Fragrance & cosmetics USA
• Estée Lauder• Carolina Herrera• Ralph Lauren • Calvin Klein• …/….
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Fragrance & cosmetics Espagne
• Puig
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Jewerly and time pieces France
• Cartier• Hermès• Boucheron• Chanel• …/…
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Jewerly and time pieces Switzerland
• Patek Philippe• Rolex• Zenith• Blancpain• Chopard• …/…
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Jewerly & Time pieces USA
• Tiffany’s• Harry Winston
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Jewerly and time pieces UK
• Garrard• Mappin & Webb
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Wine and spirits
• Moet et Chandon• Taittinger• Hennessy• Cheval blanc• Château d’Yquem• …/…
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• Baccarat• Saint Louis• Puiforcat• Christofle
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Art of the table
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• Bergdorf Goodman USA• Harrods UK• Lane Crawford HK• Bon Marché France• Isetan Japon• Saks Fifth Avenue USA, Moyen orient, Mexique• …/…
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Selective distribution
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Tourism & hospitality industry
• Mandarin Oriental• One and Only resorts• Relais Chateaux• Raffles• Shangri-la• Ritz Carlton• Four seasons
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• La tour d’argent• Maxim’s• L’ Arpège• …/…
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Hospitality industry & tourism ( cont … )
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Comité Colbert
• See site of « Comité Colbert »
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Colbert en chiffres
Le Comité Colbert: 75 houses that represent :
26 billions of turnover
128 000 persons in FranceRepresenting ¼ of wold luxury sales , twice the business of Italy and 2,5 times US business .
84% of the turn over of The houses of Comité Colbert is made abroad.
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• BACCARAT 1764• BERLUTI 1895• BERNARDAUD 1863• CHAMPAGNE BOLLINGER 1829• BOUCHERON 1858• BREGUET 1775• BUSSIÈRE 1924• CARON 1904
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• CARTIER 1847• CELINE 1945• CHANEL 1912• PARFUMS CHANEL 1924• CHÂTEAU CHEVAL BLANC 1832• CHÂTEAU LAFITE-ROTHSCHILD 1855• CHÂTEAU D'YQUEM 1593• CHLOÉ
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• CHRISTIAN DIOR COUTURE 1947• PARFUMS CHRISTIAN DIOR 1948• CHRISTIAN LIAIGRE 1985• CHRISTOFLE 1830• D. PORTHAULT 1924• DALLOYAU 1802• DELISLE 1895• DIANE DE SELLIERS EDITEUR 1992
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• ERCUIS 1867• ERES 1968• FAÏENCERIE DE GIEN 1821• FLAMMARION BEAUX LIVRES 1875• EDITIONS DE PARFUMS FREDERIC MALLE 2000• GEORGE V 1928• GIVENCHY 1952• PARFUMS GIVENCHY 1957
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• GUERLAIN 1828• HÉDIARD 1854• HERMÈS 1837• PARFUMS HERMÈS 1948• HÔTEL LE BRISTOL 1924• HÔTEL DU PALAIS 1893
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• HÔTEL PLAZA ATHÉNÉE 1911• HÔTEL RITZ 1898• JEAN PATOU PARIS 1925• JEANNE LANVIN 1889• JOHN LOBB 1899• CHAMPAGNE KRUG 1843• LACOSTE 1933
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• LANCÔME 1935• LE MEURICE 1835• LENÔTRE 1957• LEONARD 1943• LONGCHAMP 1948• LORENZ BÄUMER JOAILLIER 1992• • LOUIS VUITTON 1854
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• LA MAISON DU CHOCOLAT 1977• • MARTELL 1715• • MELLERIO dits MELLER 1613• • OUSTAU DE BAUMANIÈRE 1945• • PERRIER-JOUËT 1811• • PIERRE BALMAIN 1945• • PIERRE FREY 1935
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• PIERRE HARDY 1999• PIERRE HERMÉ PARIS 1996• POTEL ET CHABOT 1820• PUIFORCAT 1820• COGNAC RÉMY MARTIN 1724• ROBERT HAVILAND & C. PARLON 1924• ROCHAS 1925
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• SAINT-LOUIS 1586• S.T. DUPONT 1872• TAILLEVENT 1946• VAN CLEEF & ARPELS 1906• CHAMPAGNE VEUVE CLICQUOT PONSARDIN 1772• YVES DELORME 1845• YVES SAINT LAURENT 1962• YVES SAINT LAURENT PARFUMS 1962
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Membres Européens :• HEREND 1826• LEICA 1865• MOSER 1857• MONTBLANC 1906
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Membres associés :• ACADÉMIE DE FRANCE A ROME - VILLA MÉDICIS
1666• AIR FRANCE 1933• CHÂTEAU DE VERSAILLES 1661• COMÉDIE-FRANÇAISE 1680• LA DEMEURE HISTORIQUE 1924• MOBILIER NATIONAL - GOBELINS, BEAUVAIS, LA
SAVONNERIEGilles Chavet pour EMC Campus 2012 /
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• MUSÉE DU LOUVRE 1793• SÈVRES, CITÉ DE LA CÉRAMIQUE, 1738• LA MONNAIE DE PARIS 864• OPÉRA NATIONAL DE PARIS 1669• CERCLE DE L'ORCHESTRE NATIONAL DE
FRANCE 1925• LA SORBONNE 1257
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Communication: Objectives
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• Creation of a brand IMAGE
• Maintain & Increase NOTORIETY
• Create & maintain DESIRABILITY
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Communication
• IMAGE
• WORDS
• DIFFUSION
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Communication
• Edition
• Advertising
• Public relations
• InternetGilles Chavet pour EMC Campus 2012 /
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Edition
• Graphic bible • Logos• Pictures / Illustrations
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ADVERTISING
Create Emotions
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?
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Rock’n roll
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Narcissism
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C H A N E L No 5
• Birth in 1921
• STILL THE NUMBER 1 SELLING PERFUME IN THE WORLD
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1959
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Public relations
• Events ( shows, boutique openings, launch of new products …. )
• Product placement : celebrities, films, TV…
• Press relations to get editorials.
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Internet
• Instititional sites
• Social networks
• And the future ???...
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Distribution :
• History : limited the spread out• Organisation within companies structure• Retail• Wholesale• Franchises• Licences
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Wholesale
• Wholesale management under the responsability of the Commercial Departement
• No obligation of contract , but possibility of commercial / distribution agreament : exemple US Departement stores
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Wholesale : where ?
• Departement stores : US, France, Japon, UK• Concept-stores• Specialty stores ( multi-brand stores ) Special exemple : Openning Ceremony
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Management and developpement of Retail Network
• Definition • Why ?• Management • Developpement of concepts
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Retail : Why ?
• Double margin retail &wholesale• 100% CONTROL• Communication : secure Image • Global product offer • Plate-form for testing markets • Show-case of potential partners
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Retail: Management ( mini-companies )
• Individually, own stores are a company on their own
• Managing a network by implementing processes and methods to increase efficiency and profitability
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Retail : Management
• Retail Director• Scouting new locations • Working with realtors and land-lords • Liaise with architectural & merchandising
departements• Work with product marketing departement to
implement coherent & global offer
Gilles Chavet pour EMC Campus 2012 / 2013
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Retail : Management (cont…)
• Locally hired staff• Training • PR events and communication • CRM • Stock management • Sollicitate all in house departements
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Retail = Control
• Margin goals • Using retail to increase quantities produced
and increase margins • Setting goals to team and follow-up with
processes .
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Retail : Developpement of concepts :
• Concept : evolution and changes ( about 5 / 7 years )
• Zones for retail: Europe, USA, Japan. • With partnerships : Middle East, Russia, China,
South America.
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Retail : Concept
• Géography of Retail Streets in the world : Madison, Montaigne, New Bond Street, Aoyama …
• Retail: tool for developpement with partners • Zoning• Outlets
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Marketing product : organization in the Company
• Marketing departement • Product managers • Organization in Business Units
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Product developpement : Basis
• Historical product• Know-how• Recognition within industry & market• Market leader• World presence
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Star product
• Know how• Profitability • Find examples…
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Increase offer:
• Global concept for global stores…
• Aquire & increase client loyalty
• Increase turn-over & profitability
• Megalomany ?
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Quizz
1- Gilles Chavet started his career in Argentina ? 2- They are typically two branches in the luxury
industry : Perfume and cosmetics ? 3- LVMH and PPR are English luxury group ? 4- Italian brands constitute the Comité Colbert ? 5- France is the only nation acting in Luxury
business industry ?
Gilles Chavet pour EMC Campus 2012 / 2013