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Christian Dior Founded on : Dec 16, 1946
Founded by : Christian Dior
Headquarters : Paris , France
Number of locations: 160 boutiques globally
Area Served : World wide high end shopping
Bernaud Arnault (chairman of the board),
Sydney Toledano (CEO)John Galliano (head designer of haut couture)
Kris Van Assche((designer of jewellery)
Company Information
Industry: luxury goods Products: high fashion
retail Revenue: €17.93 billion Operating income: €3.468
billion Profit: €796 million Total asset: €35.59 billion Total equity: €15.27
billion Subsidiaries: LVMH
(42.4% controlling stake).
Vision Statement –“To become the world’s most popular brand in all products that enhance their lifestyle.”
Mission
We strive to create the environment that is fun, welcoming and that encourages customers to tap into their creativity and explore their personal styles.
Our strive to provide our clients with the highest quality promotional merchandise available worldwide
Five Priorities - Shared By All Group Stakeholders
Be creative and innovate
Aim for product excellence
Bolster the image of our bra
nds with passionate
determination
Act as entrepreneurs
Strive to be the best in all
we do
Business description
“Principal activities are the production and sale of fashion accessories and beauty products”
Product Line
Clothes
Wines & Spirits
Fashion & Leather goods
Perfumes & Cosmetics
Watches & Sunglasses
Fine Jewellery
BLACK MOON
• Founded in : 1975
• The international watch making cradle in Switzerland.
• Dior watches continues the logic of excellence of the Dior House.
• Theme - a woman who decides to wear a man's watch so that she is always thinking of him.
Parfums Christian Dior
Founded in : 1947
• Innovation – The HouseMake women elegant -new shades, textures and unique fragrances.
• Dream – Fragrance
Dior fragrances all express a state of mind, a way of life.
Christian Dior Perfumes
• Rs.5,249 | $131.22(Including VAT)
• Rs.7,999 | $199.98(Including VAT)
• Poison- Rs.4,975 | $124.37(Including VAT)
Market Opportunity
• Interesting market -Japan, China, India
• Taps on environment friendly policies .
• Focus on country specific clothing.
China
• Third largest luxury goods market in the world behind Japan and the United States.
• Goldman Sachs estimates that the global luxury goods market is approximately $50 billion USD with Chinese consumers accounting for 12% of worldwide sales, for a total of $6 billion USD
• Already there are an estimated 300,000 Chinese with a net worth of $1 million
• Estimates from Master Card and Visa are that there will be between 75 and 100 million international credit cards issued in China by 2010.
• China has one hundred cities with populations greater than one million, compared to nine in the US.
India
• Retail management company KSA Technopak estimates the market for luxury and high-end clothing in India at Rs 1,000 crore and for accessories at another Rs 1,000 crore.
• 169 million credit card by the end of 2010
• Fastest growing millionaire population in world.
• Newly affluent lack sufficient knowledge and awareness of luxury brands to drive significant sales-management consultants AT Kearney and The Economic Times
http://www.businessoffashion.com/2010/01/in-india-luxury-brands-need-localised-
strategies.html
Japan
• Japan consumes about 25% of luxury goods--the same as Americans and Europeans each;
• As a point of relative comparison, Japan's population is about 125 million and the U.S. is around 300 million, meaning that Japan consumes luxury goods at about twice the average rate as Americans.
• Nearly half of all Japanese women over the age of 20 own a Louis Vuitton handbag and 94% of women in Tokyo in their 20's own at least one Louis Vuittonhandbag.
Source:http://www.wikinvest.com/concept/Luxury_Consumption
CONCERN FOR ENVIRONMENT
• Respect for nature
– Protect biodiversity and ensure consumer health,
– Harmless production methods, and the impeccable quality of proven products.
– Factor of progress and competitiveness while for society it represents a tangible proof of freedom and a new way of thinking.
• Tradition cannot be separated from innovation, nor nature from creation.
CONCERN FOR ENVIRONMENT
• A selective transport policyFor transporting goods, a ship produces 80 times less CO2 than a plane.
• Well-treated waterAt the Guerlain site in Chartres, a waste treatment station was built and started up in 2003: it provides a pollution clearance rate higher than 90%.
• Château d'Yquem set up a new system to treat its wine-production effluents and waste water.
CONCERN FOR ENVIRONMENT
• To ensure effective environmental control
• An awareness program with their suppliers and subcontractors.
• Its fabric suppliers to comply with regulations governing nitrogen dyes and the use of nickel.
Optimized energy consumption: The Parfums Christian Dior
• Reducing energy consumption
– Parfums Christian Dior energy consumption dropped from 14.2 MWh in 1999 to 8.6 MWh in 2003 per ton of product manufactured.
• An oil-separator tank has been set up for the parking lot.
• Crisis management
– In strict compliance withnational regulations governingmanufacturing, all thecompanies concerned haveimplemented a program tomonitor wastes.
Business Opportunity
• Huge opportunity lies in outsourcing clothing line.
• Rising middle class • Open Directly operated stores.• Introduce children wear.• Collaborate with banks to give product on EMI-
capture more customers.• Collaborate with T.V channels like MTV LYCRA • Focus on e-commerce.• Educate Consumer advertisement.
Recommended Strategy
Tie – Up With Automobile Industry-AMC,GM,FORD
Christian Dior Academy
Apparel Manufacturing Outsourcing-haute Couture
Concept Stores In India
Strategy Continued
Focus on Tier 1,Tier 2 cities India ,China.
Focus on children apparel India.
Collaborate with banks for customers.
Localize market strategy in India.
Focus on e-commerce.
http://www.businessoffashion.com/2010/01/in-india-luxury-brands-need-localised-
strategies.html
Income statement of Christian Dior
(EUR millions, except for earnings per share) 2008 2007 2006
Revenue 17,933 17,245 16,016
Cost of sales (6,305) (6,060) (5,745)
Gross profit 11,628 11,185 10,271
Gross profit margin 64.8% 64.9% 64.1%
Selling .General and administrative expenses (8007) (7575) (7062)
Profit from recurring operations 3621 3,610 3,209
Other operating income and expenses (153) (117) (127)
Operating profit 3,468 3,493 3,082
Operating margin 19.3% 20.25% 19.2%
Cost of net financial debt ( 322) (272) (230)
Other financial income and expenses (26) (45) 123
Net financial income (expenses) (348) (317) (107)
Income taxes ( 904) (855) (850)
Income (loss) from investments in associates 8 7 8
Net profit before minority interests 2,224 2,328 2,133
Minority interests 1,428 1,448 1,336
Net profit – Group share 796 880 79
Net profit margin 4.43% 5.10% 4.9%
Income statement of Chanel
2008 2007 2006
Revenue 1,032.9 791.4 668.2Cost of Goods Sold 373.9 288.8 243.3Gross Profit 659.0 502.6 425.0
Gross Profit Margin 63.8% 63.5% 63.6%SG&A Expense -- -- --Operating Income 106.0 132.3 111.1Operating Margin 10.3% 16.7% 16.6%Non operating Income (6.5) 0.0 4.3Nonoperating Expenses (14.3) 0.5 (5.4)Income Before Taxes 87.2 121.7 104.0Income Taxes 7.2 10.3 13.0Net Income After Taxes 80.1 111.4 90.9Continuing Operations 80.1 111.4 90.9Total Operations 80.1 111.4 90.9Total Net Income 80.1 111.4 90.9Net Profit Margin 7.8% 14.1% 13.6%