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1. HIGH END BABY MARKET
1. Creation of the market : 1990s
2. Origine : Usa, Manahattan and Beverllihills
3. Size of the luxury kids wear segment :
-> 3% of the global clothing market which represents 24.6 Billion Euros
• 2012 : 7.38 Billion Euros
• 2015 : 8.466 Billion Euros
• 2013 -> 2017 : 6% growth
4. Luxury baby segments : baby product / accessories / clothes / shoes
5. Major playors and new
comers :
• 2009 : First and major playors
: Ralph Lauren, Buberry and
Christian Dior ( Baby Dior :
1967)
-> Burberry sold in 2011 for 65
Million Euros with a growth of
+23 %
• 2011 : New comers : Dolce
&Gabana, Prada, John
Galliano, Lanvin, Stella Mac
Cartney, Versace ….
• 2013 : New comers : Oscar
de la Renta, Marc Jacobs,
Phillip Lim and Roberto Cavalli
2. CONSUMERS
-> very popular in Asia ( Chinese and Japanese market) :
« In Hong Kong high society wives are often seen as
ornmental showpieces….their baby are accessories and
they are willing to spend a lot of money on them »
• Henrys and HNWI
• Not price sensitive at all
• Need for self projection : Mini-me
• Status seeking
• Not many children / of first child
3. COMPETITIVE ARENA
2. LUXURY SEGMENT
• Gucci
• Fendi
• Cavalli
• Dolce and Gabana
• Chloé
• Versace
• Marc Jacobs
• Prada
• Armani
• Ferragamo
• Oscar de la renta….
3. AFFORDABLE LUXURY
• Ralph Lauren
• Marni
• Stella Mac Cartney
1. ULTRA LUXURY
SEGMENT
• Christian Dior
• Lanvin
• Burberry
• Jonh Galliano
First freestanding children's store in Hong Kong in September 2011, then exploded internationally
Online retailers.pret a porter,
neinmanmarcus.com, Luisaviaroma.com, Alex and Alexa,Blue fly, Inc
1ST Mono brand store was opened in
Dubai(2012)
Fendi kids has 6 boutiques across Europe, 6 in Asia and 9 in middle east and Africa.
Wholesale Channels :
Harrods, Neiman Marcus, Bergdorf Goodman,Blooming dales , Dubai,
Galeries Lafayatte , Barney’s, pret a
porter, La Rinascente
4. DISTRIBUTION
CHANNEL MAPPING
The distribution of Baby Dior is more selective when compared to Fendi.
Dior has around 14 stores all over the world.
Unlike most of its competitors, who cater
to new borns, Lanvin caters to children aged between 4-11 years, Benefits of history of Mother-Daughter icon,kids clothes based on adults one.
4. DISTRIBUTION
Gucci was also the first brand to open an exclusive children’s store on 5th Avenue in New York.
The brand posted images on Facebook of its Britain store showing its store decorations for Christmas.( Fendi used an email campaign
“Winterland Adventures” to publicize its fall/winter 2013-14 children’s collection)
4. DISTRIBUTION
D&G
D&G D&G
D&G
D&G
5. STORE ANALYSIS
• Cloudlike walls with
pastel colours
compliment the
collection
• (Boys and girls from 2 to
12 years and babies from
0 to 24 months)
• 60 to 80 sqm
• specific graphic
guideline for each store
• Pop-up shops,
in-store shop
and E-store.
• « Strong bond
between
mother and
daughter »
• Small
collection full
of charm and
joie de vivre
(girls from 5 to
10 years old
5. STORE ANALYSIS
• Simple
structure in
frontage and
lavish Fabrics
inside.
• High ceiling
with bright
light
• Decoration
retro which
reminds the
extravagant
but simple
chic from the
60’s
5. STORE ANALYSIS
• Front of the store
painted in ivory
• Somptuous but cool and
funky for D&G Baby,
D&G Junior, and D&G
Teen on 70 sq
• Interior design
champagne with
lacquered wood.
• Walls are made of soft
beige velvet.
• Curtains and walls are
made of soft beige
velvet.
5. STORE ANALYSIS
• Complete collection
for Boys and girls
from 2 to 16years
and Babies from 0 to
24 months
• Colorfull design
• Gold colour and
Swarovsky crystal
design elements for
an Eye-catching
effect.
5. STORE ANALYSIS
• Glamour, fashionable
and timeless place
• Miniature furniture
• Eco-friendly teddy
bears
• Sophisticated interior
design mirror
Clothings, apparels
and accessories for
babies to 8 years old
children.
6. STORE ANALYSIS
Strengths - Close to 100 years history
- Family brand, mostly hold by
women: strong symbols for
kids collection
- 100 boutiques, 2 direct Fendi
stores in Rome and New
York and 600 points of sale
scattered in Italy and
abroad.
- Strong brand awareness
Weaknesses - Easy to copy
- Exchange rate, affecting
prices
- Market which mainly
concern single child family
(max 2), = the demography
of the country it is in affect
the sales
Opportunities - E-commerce
- Using recent market trends
such as sustainability, equity,
and experience economy
- China, Africa, India..
Threats - High and strong competition
- People are looking more
and more for value for
money, and baby luxury is a
extremely short term
investment
7. FENDI STRENGTHS & LIMITS
7. SWOT
THREATS Strong competition
( new comers?)
Risk of coming as a
status symbol
STRENGTHS Ultra luxury
positioning : diaper
made of fur
Major playor
( french ambassador)
WEAKNESSES Absence on the
merging market (
Brazil)
Focus on confort =
lake of signature
product
OPPORTUNITIES Expend the
distribution strategy
7. SWOT
THREATS Morality : Not
appropriate clothes for
kids
E –Lanvin : Lake of
consistency, no
experience!
STRENGTHS Match the mini-me
trend
Brand’s legacy :
Mother-daughter
story
No logo oriented
WEAKNESSES Quality of the fabric
OPPORTUNITIES Create a line for
boys
Create two
differentes line :
RTW and occasion
7. SWOT
:
STRENGTHS Strong identity and
symbol ( golden
teddy bear)
Major playor
WEAKNESSES Agressive
distribution
strategy
OPPORTUNITIES Reduce the
number of stores :
keep the brand’s
exclusivity
THREATS Strong
competition within
this segment
(Fendi,
Dolce&Gabana,
Roberto Cavalli…)
7. SWOT
THREATS Other Italian
competitors
STRENGTHS Different line
Consistency with
the adult collection
Respect the core
values
Strong identity
WEAKNESSES Lack of visibility
OPPORTUNITIES Expend the
distribution strategy
7. SWOT
STRENGTHS Strong identity
WEAKNESSES Strong identity
Morality : Not
appropriate
clothes for kids
OPPORTUNITIES Expend the
distribution
strategy
THREATS Other Italian
competitors
- To be in Baby Dior + Lanvin segmentation: new
clothing style necessary= less casual, exclusive
retailing, higher price. Fendi need to be more
consistent with its style and strategy
- To be more competitive in front of of Gucci +
Cavalli, mass retailing, more affordable luxury, but
still style should be reviewed: more colour + playful +
more consistency with the adult collection
- Good compromise: Dolce Gabbana, classic and
modern, playful, fun, same price of our 2nd
segmentation and similar retailing
Classic
Modern Trend
Tradition
Causality Sport
8. POSITIONING
9. NEW TARGET MARKET : Brazil !
- The size of the luxury market represents only 1% of the population size -35 % of the brazlian luxury market corresponds to foreign brands - Foreign brand make 70% of their revenue by the retail - The Brazilian market is much stronger when it comes to food and beverages, hospitality the foreigner are more successful in the other sectors : fashion, cosmetics, automobiles… - The main market in Brazil are the shoes ( 19%) and the clothing apparel ( 18%) - Very dynamic market since everything can be produced internally - The luxury market is driven by the bourgeoisie - 60% of the population is under 39 years old = digital channel is growing exponentially
BRAZIL
The size of the luxury market
represents only 1% of the population
size
Foreign brand make 70% of their
revenue by the retail
The main market in Brazil are the
shoes ( 19%) and the clothing
apparel ( 18%)
Very dynamic market
The luxury market is driven by the
bourgeoisie
Digital channel is
10. COMPETITORS
The luxury brands are only located into multibrandstores for kidswear among European medium brands.
Good Distribution in the country, active E-commerce & possess their own stores
STRENGTHS : - Ecological fiber - Famous qualitative Brazilian Cotton - Colorful and brodery
11. CONSUMER PROFIL
Attracted by the luxury
landscape
1/3 of the 165 Brazilian millionaire
have under 35 years old
Get used to shop within
shopping males
Close relationship with sales
people ( CRM tools! )
Focus on Fashion European
brands
No « luxury education »
Attracted by the luxury
landscape
1/3 of the 165 Brazilian millionaire
have under 35 years old =
Potential target
Get used to shop within
shopping males
Got strong and close relationship
with sales people who are more
personal consultant = the
customer relationship is the key of
this market + CRM
They mainly appreciate the
foreign brand = focus on Fashion
European brands
No « luxury education »
12. PRODUCT STRATEGY
Yellow Oilskin : Inlay piece of lambskin
for print, the collar and cuffs. Knitted Cardigan
Silk Crepe Skirt : Safran silk crepe belt & Plissé silk crepe navy
Kimono sleeve Tshirt: Safran silk crepe & serigraphy printed with Palms brode with square sequins
1. Capsule collection for entering the
market
It shows that Fendi knows the market
and the Brazilian consumers : Colors,
shape, fabric…
Create brand’s awareness
2. Current pieces with European style :
introduce the FENDI style there
« Mini moi » strategy
Product endorsment ( Strategy)
Focus on customer elationship and
brand ambassador
In house production : Take advantage of
the natural ressources
13. DISTRIBUTION
• Exclusive kids stores in São Paulo, Rio de Janeiro and Brasilia.
• Start in Brazilia = Unlike the comptitors that focus on Sao Paulo and Rio Janeiro
• Use online retailers such as : “Net à porter” and “
• The brand should manage their own stores and not use multibrands distributors due to the issue of high taxes as this will reduce the percentage of the brand’s profit and also make it difficult for it to find distributors.
• Exclusive kids stores in São Paulo, Rio de Janeiro and Brasilia. Sao Paulo being the economic capital of the city and Rio de Janeiro is part of the top ten travel destination list.
• Use online retailers such as netaporter and saksfifth avenue to reach this market as they are one the most widely used channel by many brands.
• Can also set up a floor in the existing flagship store
• The brand should manage their own stores and not use distributors due to the issue of high taxes as this will reduce the percentage of the brand’s profit and also make it difficult for it to find distributors.
14. PRICING
• Very high taxation policy – this means double or triple the European or American purchase price.
• A comparison between prices in the Brazil and in Spain on basic
pieces find differences from 11% to 76%. This indicates the low level
of profits and the reason some goods are considered premium
goods
15. COMMUNICATION
Fifth largest in terms of internet usage.
50% of Brazilian internet population is
under 34 years
E-commerce for those who are busy at
work and have no time to visit the store
Use of social media and hosting contests
for kids in order to promote the brand
Get celebrity kids/parents to endorse the
product by getting them to wear it to
galas or special events.
16. CRM
Loyalty based programs (as Brazilians
are very loyal to brands they like)
CRM
Strategies: Offer direct contact,
develop relationship with tourists,
referral programmes, organize baby
shower for special/loyal clients or her
friends. Send customers offers/
updates only based on the gender
of their child
Use of website and mobile
marketing to reach tech savvy
consumers.
17. Brazil ! STRENGTHS & LIMITS
OPPORTUNITIES : -New city for the distribution such as : Brazilia, Curitiba -Luxury brand invest directly in the country ( Eg: Prenium cars) - Create specific collection for this market - The 2014 Wolrd Cup
THREATS : -Local luxury brands ( Alenxander Herchcovich, Salinas and Osklen) - Luxury distribution in the shopping malls ( Cannibalisme)
Strengths Weaknesses
Opportunities Threats
-1/3 of the millionaire are under 35 years old - Strong relationship with sales
people -Fastly growing market ( luxury) - 70% of the revenue of the foreign luxury bran is done by the retail - Main position in the apareal market - Fully integrated supply chain
-High level of taxes : Tax burden ( x2 or x3 the initial price) - Bureaucraty - Size of the market / size of the population = 1%
- Educate cosummers about luxury
-Local luxury brands
-Luxury distribution in the shopping malls ( Cannibalisme)
-New city for the distribution such as : Brazilia, Curitiba -Luxury brand invest directly in the country ( Eg: Prenium cars) - Create specific collection for this market
18. STRATEGIES
• « Mi-me trend » -> They should find inspiration in their
adult collection for the kids clothes which looks more
younger
• The monogram should be more silent for the kid’s line
• More leather in their products
• Etablish signature products + creation of a graphic
guideline : Promote « Fantasy and joie de vivre »
• Fendi has to Embdodies the Italian identity !
- Create a signature product adapted to the market: create a
stuffed bag (like a teddy bear), which you can open and close,
adapted to babies. It has to look like one of the brand iconic
product.
18. PRODUCT STRATEGY
18. PRODUCT STRATEGY
Create iconic product for boys, Tie and bows with Fendi discreet logo: Possibilities to customize : ex, write inside of the collar with gold thread:
Develop E-Commerce, and create an independent Baby Fendi
website, which proposed playful and fun activities, such as
colouring images (related to the brand image).
Enables to create brand association with particular
images and symbols, since the youngest age. To gather
brand loyalty and attachment
19. STRATEGIES : EXPERIENCE
• Create Experience ! Comité Colbert was aimed to promote
French lifestyle internationally, Fendi could create structure
accepting children and cheering them, in activities around the
Italian culture and its attributes, promoting Italia.
• Will be based in key location, enabling parents to shop while
their children are entertained in a playful and intellectual
manner.
• Activities example: Cooking activities, mix and match: learn
how to dress with style, artistic based activities, music..
19. STRATEGIES : EXPERIENCE
• Fendi Casa, orientated
toward babies-children
furniture applied to retail
merchandising.
• The shop could look like a
big child
bedroom/playroom with
Fendi casa furniture, that
can be bought.
• Enables : brand awareness +
creative + innovative,
emphasize two brand
extension together.
20. STRATEGIES :
RETAIL MERCHANDISING
• Make available in Sims store,
baby Fendi clothes + Children
furniture.
• Product placement + brand
awareness, target all ages
(mostly females).
• Diesel already made collection
available to buy on add on for
the game.
• All the babies/children clothes
and furniture collection in the
game or add on are a bit
disappointing.
21. STRATEGIES :
PRODUCT PLACEMENT
22. STRATEGIES :
PRODUCT PLACEMENT
EA has sold 1.4 million copies of
The Sims 3 for PC and Mac in the title’s first week on shelves, making it the bestselling PC launch in the company’s history. To date it has sold
4.5 million units not including add-ons.
23. STRATEGIES :
Communication to enter Brazil
Pop Up capsule + Runway (Mother + Daughter / Father + Son)
Personality endorsement through the model
Adrianana Lima (2 girls) + Ronaldinho (1 son)
- Two daughters, Valentina Lima Jaric and Sienna.
- Devoted Roman Catholic and attends mass every Sunday.
- Part of a charitable trust helping an orphanage + buys clothes for
poor children.
- In 2005, listed as one of the ‘World’s best-paid celebrity under 25’bye
2005 Forbes’ edition.
- In 2012, ranked 8th in Forbes’ ‘The world’s most powerful Latino
celebrities’ = earning more than $7 million.