Developmentof luxurybrandspart1introduction

Development of Luxury Brands

Gilles Chavet pour EMC Campus 2012 / 2013

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

Luxury for you

On a piece of paper please indicate 3 brands that represent luxury for you, in any sector.


Presentation gc


Agenda

• 1st Part : Overvue• 2nd Part : Market • 3rd Part : Product• 4th Part : Managing • 5th Part : Presentations


Luxury Industry in France


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.

Luxury Brands

• Know-how • Awareness of the public • Global presence in the world • But also…


Luxury Brands

•Dream •Desire•Belong to a group, a tribe … to be developped


The branches of luxury industry

• Fashion & Leather goods• Perfumes & cosmetics• Jewerly & time pieces• Wine & spirits• Art of the table • Selective distribution • Tourism & hospitality industry


Fashion & Leather goods France

• Louis Vuitton• Chanel • Dior• Hermès• Goyard• Givenchy• Celine• …/…


Fashion & Leather goods UK

• Burberry• Paul Smith• Hilditch and Key• …/…


Fashion & leather goods USA

• Ralph Lauren • Calvin Klein• Tom Ford• …/…


Fashion & Leather goods Italy

• Gucci• Prada• Armani• Dolce Gabbana• Fendi• …/…


Fragrance & cosmetics France

• Chanel• Dior• Guerlain• Yves St Laurent• …/…


Fragrance & cosmetics Japon

• Shiseido• Shu Uemura• …/…


Fragrance & cosmetics USA

• Estée Lauder• Carolina Herrera• Ralph Lauren • Calvin Klein• …/….


Fragrance & cosmetics Espagne

• Puig


Jewerly and time pieces France

• Cartier• Hermès• Boucheron• Chanel• …/…


Jewerly and time pieces Switzerland

• Patek Philippe• Rolex• Zenith• Blancpain• Chopard• …/…


Jewerly & Time pieces USA

• Tiffany’s• Harry Winston


Jewerly and time pieces UK

• Garrard• Mappin & Webb


Wine and spirits

• Moet et Chandon• Taittinger• Hennessy• Cheval blanc• Château d’Yquem• …/…


• Baccarat• Saint Louis• Puiforcat• Christofle


Art of the table

• Bergdorf Goodman USA• Harrods UK• Lane Crawford HK• Bon Marché France• Isetan Japon• Saks Fifth Avenue USA, Moyen orient, Mexique• …/…


Selective distribution

Tourism & hospitality industry

• Mandarin Oriental• One and Only resorts• Relais Chateaux• Raffles• Shangri-la• Ritz Carlton• Four seasons


• La tour d’argent• Maxim’s• L’ Arpège• …/…


Hospitality industry & tourism ( cont … )

Comité Colbert

• See site of « Comité Colbert »


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.

• BACCARAT 1764• BERLUTI 1895• BERNARDAUD 1863• CHAMPAGNE BOLLINGER 1829• BOUCHERON 1858• BREGUET 1775• BUSSIÈRE 1924• CARON 1904


http://www.baccarat.com/

http://www.berluti.com/

http://www.bernardaud.fr/

http://www.champagne-bollinger.fr/

http://www.boucheron.com/

http://www.breguet.com/

http://www.bussiere.fr/

http://www.parfumscaron.com/

• CARTIER 1847• CELINE 1945• CHANEL 1912• PARFUMS CHANEL 1924• CHÂTEAU CHEVAL BLANC 1832• CHÂTEAU LAFITE-ROTHSCHILD 1855• CHÂTEAU D'YQUEM 1593• CHLOÉ


http://www.cartier.com/

http://www.celine.com/

http://www.chanel.com/

http://www.chanel.com/

http://www.chateau-cheval-blanc.com/

http://www.lafite.com/

http://www.chateau-yquem.fr/

http://www.chloe.com/

• 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


http://www.dior.com/

http://www.dior.com/

http://www.christian-liaigre.fr/

http://www.christofle.com/

http://www.dporthault.fr/

http://www.dalloyau.fr/

http://www.delisle.fr/

http://www.dianedeselliers.com/

• 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


http://www.ercuis.fr/

http://www.eres.fr/

http://www.gien.com/

http://www.flammarion.com/

http://www.editionsdeparfums.com/

http://www.fourseasons.com/paris/

http://www.givenchy.fr/

http://www.parfumsgivenchy.com/

• GUERLAIN 1828• HÉDIARD 1854• HERMÈS 1837• PARFUMS HERMÈS 1948• HÔTEL LE BRISTOL 1924• HÔTEL DU PALAIS 1893


http://www.guerlain.com/

http://www.hediard.com/

http://www.hermes.com/

http://www.hermes.com/

http://www.lebristolparis.com/

http://www.hotel-du-palais.com/

• HÔTEL PLAZA ATHÉNÉE 1911• HÔTEL RITZ 1898• JEAN PATOU PARIS 1925• JEANNE LANVIN 1889• JOHN LOBB 1899• CHAMPAGNE KRUG 1843• LACOSTE 1933


http://www.plaza-athenee-paris.com/

http://www.ritzparis.com/

http://www.jeanpatou.com/

http://www.lanvin.com/

http://www.johnlobb.com/

http://www.krug.com/

http://www.lacoste.com/

• LANCÔME 1935• LE MEURICE 1835• LENÔTRE 1957• LEONARD 1943• LONGCHAMP 1948• LORENZ BÄUMER JOAILLIER 1992• • LOUIS VUITTON 1854


http://www.lancome.com/

http://www.meuricehotel.com/

http://www.lenotre.fr/

http://www.leonard-paris.com/

http://www.longchamp.com/

http://www.lorenzbaumer.com/

http://www.vuitton.com/

• LA MAISON DU CHOCOLAT 1977• • MARTELL 1715• • MELLERIO dits MELLER 1613• • OUSTAU DE BAUMANIÈRE 1945• • PERRIER-JOUËT 1811• • PIERRE BALMAIN 1945• • PIERRE FREY 1935


http://www.lamaisonduchocolat.com/

http://www.martell.com/

http://www.mellerio.fr/

http://www.oustaudebaumaniere.com/

http://www.perrier-jouet.com/

http://www.balmain.com/

http://www.pierrefrey.com/

• PIERRE HARDY 1999• PIERRE HERMÉ PARIS 1996• POTEL ET CHABOT 1820• PUIFORCAT 1820• COGNAC RÉMY MARTIN 1724• ROBERT HAVILAND & C. PARLON 1924• ROCHAS 1925


http://www.pierrehardy.com/

http://www.pierreherme.com/

http://www.poteletchabot.com/

http://www.puiforcat.com/intro.htm

http://www.remy.com/

http://www.rochas.com/

• 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


Membres Européens :• HEREND 1826• LEICA 1865• MOSER 1857• MONTBLANC 1906


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 /

2013

• 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


Communication: Objectives


• Creation of a brand IMAGE

• Maintain & Increase NOTORIETY

• Create & maintain DESIRABILITY

Communication

• IMAGE

• WORDS

• DIFFUSION


Communication

• Edition

• Advertising

• Public relations

• InternetGilles Chavet pour EMC Campus 2012 /

2013

Edition

• Graphic bible • Logos• Pictures / Illustrations







ADVERTISING

Create Emotions


?


Rock’n roll


Narcissism



C H A N E L No 5

• Birth in 1921

• STILL THE NUMBER 1 SELLING PERFUME IN THE WORLD


1959








Public relations

• Events ( shows, boutique openings, launch of new products …. )

• Product placement : celebrities, films, TV…

• Press relations to get editorials.




Internet

• Instititional sites

• Social networks

• And the future ???...


Distribution :

• History : limited the spread out• Organisation within companies structure• Retail• Wholesale• Franchises• Licences


Wholesale

• Wholesale management under the responsability of the Commercial Departement

• No obligation of contract , but possibility of commercial / distribution agreament : exemple US Departement stores


Wholesale : where ?

• Departement stores : US, France, Japon, UK• Concept-stores• Specialty stores ( multi-brand stores ) Special exemple : Openning Ceremony


Management and developpement of Retail Network

• Definition • Why ?• Management • Developpement of concepts


Retail : Why ?

• Double margin retail &wholesale• 100% CONTROL• Communication : secure Image • Global product offer • Plate-form for testing markets • Show-case of potential partners


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


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


Retail : Management (cont…)

• Locally hired staff• Training • PR events and communication • CRM • Stock management • Sollicitate all in house departements


Retail = Control

• Margin goals • Using retail to increase quantities produced

and increase margins • Setting goals to team and follow-up with

processes .


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.


Retail : Concept

• Géography of Retail Streets in the world : Madison, Montaigne, New Bond Street, Aoyama …

• Retail: tool for developpement with partners • Zoning• Outlets


Marketing product : organization in the Company

• Marketing departement • Product managers • Organization in Business Units


Product developpement : Basis

• Historical product• Know-how• Recognition within industry & market• Market leader• World presence


Star product

• Know how• Profitability • Find examples…


Increase offer:

• Global concept for global stores…

• Aquire & increase client loyalty

• Increase turn-over & profitability

• Megalomany ?


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 ?


Documents

Developmentof luxurybrandspart1introduction