DIOR_Sariga

8/2/2019 DIOR_Sariga

1/47

Apparel Merchandising and Marketing

Presentation on

DIOR

Presented By

Sariga P.S.


2/47

DIOR


3/47

PROFILE

Type Socit Anonyme

Industry Luxury goods

Founded 16 December1946

Founder Christian DiorHeadquarters Paris, France

No. of Locations 210(as of Sept2010)


4/47

PROFILE

Areas served Worldwide high-end shoppingdistricts

Key People

Bernard Arnault (Chairman)Sidney Toledano(CEO)

Kris Van Assche(Creative Director)

Victoire de Castellane(Designer)

Products HighFashion Retail

Revenue 21.12billion

Operating Income 4.172 billion


5/47

MISSION

True Luxury requires genuinematerials and the craftmans

sincerity. It is only meaningful when

it respects tradition Christian Dior

Dior is the ultimate symbol ofelegance, excellence and luxury.

In the 21st century, Dior continues to

define elegance and style with thesame audacity that inspired

Monsieur Dior when he launched hishouse.


6/47

Organizational Chart

Christian Dior *

Financiere Jean

Goujon

LVMH

Christian Dior

Couture100%

100%

42.4%

* Listed Company


7/47

Corporate

Governance


8/47

BOARD OF DIRECTORS

Bernard Arnault Chairman

Eric Guerlain Vice Chairman

Sidney Toledano Chief ExecutiveOfficer

Antoine Bernheim

Denis Dalibot

Renaud Donnedieu de Vabres

Sgolne Gallienne

Pierre God

Christian de Labriffe

Jaime de Marichalar y Senz de Tejada

Directors


9/47

History of

Christian Dior


10/47

1905

1946

1947

1948

1949

1950

1952

1955

In Nov a luxury RTW house isestablished in New York at

the corner of the 5th Avenueand 57th Street, the first of

its kind. Creation of Christian

Dior Parfums New York

License for neckties. Allaccessories follow. Within

three years, this system wascopied by all the couture

houses

At age 19, Yves Saint Laurentbecomes Christian Diors first and

only assistant. Opening of theGrande Boutique at the corner ofthe avenue Montaigne and rue

Francois Ier. Launch of DiorLipstick. A line of beauty products

follow

Birth of Christian Dior inGranville(Normandy,

France) on January 21

On Feb 12, Christian Diorpresents the 90 models ofhis first collection on six

mannequins

Launch of the perfumeDiorama By marketing

Dior stockings in the US,the brand creates thelicensing system

The Christian Dior brandconsolidates its presence inEurope by creating Christian

Dior Models Limited inLondon. Agreement with theHouse of Youth in Sydney forexclusive Christian Dior New

York Models. Exclusiveagreement with Los

Gobelinos of Santiago, Chile

for the Christian Dior ParisHaute Couture collections

Backed by Marcel Boussac,Christian Dior found his owncouture house in a private

house at 30, avenueMontaigne in

Paris


11/47

1957

1960

1961 1962

1963 1966

19671968

Yves Saint Laurent opens hisown couture house

Launch of the mens fragrance EauSauvage

Launch of the Christian DiorCoordinated Knits line. The Dior

perfume company is sold to MoietHennessy. Frederic Castet

assumes management of theFashion Furs Department-

Christian Dior Paris.

Christian Dior succumbsto a heart attack while

convalescing atMontecatini on Oct 24.Yves Saint Laurent is

named to provide artisticdirection for the brand

Marc Bohan presents hisfirst collection, Slim Look,

under the Dior Label

Launch of the perfumeDiorling

Philippe Guiborge, assistantto Marc Bohan, creates the

Miss Dior line, the first Diorwomens RTW line in France.Opening of the Baby Dior

boutique.

Called up for NationalService. Yves Saint Laurentleaves Dior after completing

six collections. Marc Bohansucceeds him. He is 34

years old.

1970Creation of the Christian DiorMonsieur line. At Parly II, a

new Christian Dior boutiqueis decorated by Gae Aulenti

Launch of the perfume Diorella1972


12/47

1973

1978

1979

19801981

19841985

1987

Launch of the mens fragranceJulies

A group of investors, led by BernardArnault takes control of the formerWillot Group

The Paris Fashion Museumdedicates an exhibition to

Christian Dior on the fortiethanniversary of his first collection.

Creation in France of theRTW fur collection, whichwill then be manufactured

under license in theUnited States, Canada and

Japan

Launch of the perfumeDioressence

The Willot group declaresbankruptcy

Bernard Arnault becomesChairman and ChiefExecutive Officer of ChristianDior. Launch of the perfume

Poison

Bankruptcy of the MarcelBussaic group, whose

assets under the

authorization of the ParisTrade Court, are purchasedby the Willot Group.

1988

Through its subsidiary JacquesRober, held jointly with the

Guinness group, Christian Diortakes a 32% equity stake in the

share capital of LVMH. Theshare capital of Christian Dior is

offered to French and foreigninstitutional investors who

subscribe to a capital increase

of 3.3 billion francs in a privateplacement.

Gianfranco Ferre joins Christian Dioras creator of the Haute Couture,Fashion Furs, and Womens RTW

collections. His first Haute Couturecollection is awarded the De dOr.Opening of a boutique in Hawaii.

Jacques Robers stake in LVMH isincreased to 44%

1989


13/47

1990

1991

1992

1994

1995

1996

1997

1998

A revision of agreements withGuinness has the effect ofincreasing Christian Diors

consolidated stake in LVMH from24.5% to 41.6%

John Galliano becomes creator ofChristian Dior Couture.

Christian Dior Couture takes overthe direct marketing of ready to

wear and womens accessories inJapan after terminating its

licensing agreement with Kanebo

Opening of boutiques inLos Angeles and New

York. LVMHs stake isincreased to 46%

Patrick Laviox is namedCreative Director of ChristianDior Monsier Relaunch ofMiss Dior perfume.

The Couture line is transferred

to a wholly- owned subsidiarythat takes the corporate name

Christian Dior Couture

Christian Dior Couture takesover the network of 13

boutiques operated under

franchise by its JapaneseLicensee, Kanebo

Listing of Christian Dior inthe spot market and thenthe monthly settlement

market of the Paris stockexchange. Launch of the

perfume Dune

1999Launch of the perfume

Jadore. Creation of a newbusiness group, Fine jewelry,

whose collections arecreated by Victoire de

Castellane.

In Jan 2001, Heidi Slimane, newcreator of the Homme line,presents his first collection based ona new contemporary masculineconcept.

2001


14/47

2002

2003

2004

2005

2006

2007

2008

2009

Celebration of the centennial ofChristian Diors birth. Launch ofthe perfumes Miss Dior Cherie

and Dior Homme

Celebration of the 60th anniversary ofthe creation of Maison Dior(1947).Kris Van Assche, the new creator ofthe menswear line, presents his first

collections.

New Online advertisingcampaign for Lady Dior

handbags featuring MarionCotillard

Launch of the perfumeAddict

Opening of a flagship boutiquein the Ginza district (Tokyo).

Christian Dior Couture directlytakes over the activity of its

Moscow agent and opens aboutique in the GUMdepartment store.

Major exhibition organized inBeijing, in association with

Chinese artists, to celebratethe brands entrance into the

Chinese marketplace.

Opening of a flagshipboutique in the Omotesando

district(Tokyo).

2010Organization of an event inShanghai to celebrate the

expansion and reopening of the

boutique in the Plaza 66shopping mall


15/47

MERCHANDISE

Christian DiorCouture

Wines & Spirits

Fashion & LeatherGoods

Perfumes &Cosmetics

Watches & Jewelry

Selective Retailing


16/47

DIOR

COUTURE


17/47

Dior Couture

Highlights

Success of the Groups strategy emphasizing

excellence

Sustained sales growth in the network of directly

owned points of sales Significant improvement in profit from recurring

operations

Investment focused on high- growth and

strategic markets

Innovative communications strategy reinforcingDiors values


18/47

Dior Couture

Outlook towards the future

Dior will continue to advance its strategy

emphasizing excellence, focusing on distribution,

products and communication

Sustained program of investments to support

openings, renovations and expansion in the

network of directly owned points of sale,

concentrated mainly in Asia but also targeting

Europe


19/47

Dior Couture

House of Dior will continue to enjoy a strong

position from which to capitalize upon the

development of its nework

These actions, complemented by tight control ofoperating costs and investments will enable

Christian Dior Couture to pursue its groeth and

profitability objectives


20/47

Dior Couture

Consolidated Results of Dior Couture

Consolidated Revenue amounted to 826 million

euros up 15% at actua exchange rates and 10%

at constant exchange rates.

Profit from recurring operations was 35 million

euros, representing an increase of 22 million

euros

Operating profit amounted to 21 million eurosfollowing the recognition of non recurring

expenses totaling 14 million euros


21/47

Dior Couture

Consolidated Results of Dior Couture

Net financial expense was 11 million euros down

from 13 million euros

Tax expense totaled 5 million euros generated bythe beneficiary subsidiaries, the non recognition

of tax creditd by loss making subsidiaries and

changes in deferred taxes

The Group share of net profit was 2 million euros,with the amount attributable to minority interests

amounting to 3 million euros.


22/47

Dior Couture

Analysis of Business growth

(EUR millions) 2010 2009 Change at actual exchangerates Change at constant exchange rates

License royalties 35 35 0%-1%

Wholesale revenue 124 134 -7%-8%

Retail Revenue 667 548 +22%

+16%and other

TOTAL 826 717 +15%+10%


23/47

DIOR

WINES & SPIRITS


24/47

Wines & Spirits

Highlights

Revenue for the Wines & Spirits business group amounts to 3,261 million

euros representing an increase of 19% based on published figures and 13%

at constant structure and exchange rates

Profit from recurring operations was 930 million euros, up 22% from 2009

This performance is primarily the result of sales volume growth

The operating margin as a percentage of revenue for this business group

increased by 1 point to 29%


25/47

Wines & Spirits


Wines & Spirits business group intends to continue solid growth in the

volume and value of its sales during the coming months and to consolidate

its market share

Brands will continue to capitalize on their powerful fundamentals:

excellence, authenticity, an image of luxury and exceptional creativity

Pay careful attention to controlling production costs, their growthstrategies will be based on their strong ability to innovate and on

substantial media and marketing investments


26/47

DIORFASHION

&

LEATHER

GOODS


27/47

Fashion & Leather Goods

Highlights

Revenue for the Fashion and Leather Goods business group amounted to

7,581 million euros, representing organic growth of 13%, and 20% based on

published figures

Profit from recurring operations of 2,555 million euros was up 29%

Exchange rate fluctuations had a positive impact on this business groups

profit in the amount of 246 million euros

Operating margin as a percentage of revenue for this business group also

increased by 2 points to 34%


28/47

Fashion & Leather Goods


Louis Vuitton will maintain its innovative momentum and continue to focuson its values of perfection and sophistication

The brand will expand its personalization services. Continue qualititativedevelopment of its global store network and strengthen productioncapacities

Louis Vuitton will open a dedicated boutique and workshop of jewelry

artisans in the Place Vendome in Paris

The launch of a new digital platform is also planned in the first half


29/47

DIOR

PERFUMES &

COSMETICS


30/47

Perfumes & Cosmetics

Highlights

The Perfume and Cosmetics business

group recorded revenue for 2010 of 3,076

million euros

At constant structure and exchange rates,

revenue increased by 9% and 12% based

on published figures

Profit from recurring operations for this

business group was 332 million euros, an

increase of 14%


31/47


Highlights

This growth was driven by Parfums Christian Dior, Guerlain and Parfums

Givenchy all of which posted significantly improved performance

The operating margin as a percentage of revenue for this business groupremained stable at 11%


32/47



Parfums Christian Dior has strong growth

prospects for Miss Dior Cherie which will

benefit from the association with its newambassador Natalie Portman.

Parfums Kenzo will launch a new

fragrance for women while it unveils a

new and very original variant ofFlowerbyKenzo


33/47



Benefit will continue to illustrate its dynamic innovative ability through the

year and will expand distribution in all its key markets, the brand will

open its first boutique in New York

Make Up For Ever will focus on strengthening its two star product lines

Aqua and HD while at the same time expanding its offer in the professional

make-up segment


34/47

DIOR

WATCHES &

JEWELRY


35/47

Watches & Jewelry

Highlights

Watches and Jewelry saw an increase in revenue of 21% at constant

structure and exchange rates, to 985 million euros, representing an

increase of 29% based on published figures

Profit from recurring operations for this business group increased twofoldto 128 million euros

Watches and Jewelry also significantly improved its profitability and

posted an operating margin as a percentage of revenue of 13%,

representing an increase of more than 5 points


36/47

Watches & Jewelry

Outlook for the Future In the coming years the Watches and Jewelry business groups strategy of

profitable growth will be continued and expanded with ambitious targets.

Communications investments will be continued, including on the Internet andwill remain highly targeted on brands and priority markets.

The business group will expand its network of boutiques in China and will

develop it selectively in other markets. New stores are planned by Hublot in New York on Madison Avenue, TAG Heuer

at Las Vegas City Center, Zenith in Hong Kong and De Beers in Beijing andHong Kong among others.

The TAG Heuer, Hublot and Chaumet brands are initiating a major program ofnew stores in Asia.

Fred will open a boutique in Paris in the Marais district A large number of innovations will be unveiled in each of their iconic product

lines, reflecting a continuing effort in creativity and in high quality in allmarket segments


37/47

DIOR

RETAIL


38/47

Selective Retailing

Highlights

Revenue for Selective Retailing amounted to 5,378 million euros,

representing an increase of 19% based on published figures and 14% at

constant structure and exchange rates.

Profit from recurring operations for this business group was 536 millioneuros

The operating margin as a percentage of revenue for Selective Retailing as

a whole increased by 1 point to 10%


39/47

Selective Retailing

Outlook for the Future

DFS has a solid outlook for growth in the coming months driven by thecontinued positive trends in the past years

The program to expand and renovate the Gallerias will actively continue inMacao Four Seasons, Hawaii, Singapore and Okinawa

Miami Cruiseline will benefit from the contribution of several new cruise shipsand from the trend toward larger and larger vessels

To continue the solid momentum, Sephora has ambitious objectives for growthand gains in market share

The brand is stepping up the rate of store openings in the key countries where itintends to consolidate its leadership position and in high- potential markets like

China where it wants to rapidly establish strong positions Building on the latest developments to reinforce its unique positioning with

demanding Parisian and international customers, Le Bon Marche is targetingstrong growth in its business in the coming years


40/47

Operational Risk

Factors

&Insurance Policy


41/47

Strategic & Operational Risks

Threats to the Groups image and reputation

Counterfeit and parallel retail networks

Constraints related to contractual commitments

International exposure of the Group

Loss or damage resulting from the use of the Groups products Seasonality

Supply sources and strategic competencies

Information systems

Industrial and environmental risks


42/47

Insurance Policy

Property and business interruption insurance

Transportation insurance

Third- party liability

Coverage for special risks


43/47

Financial Risks

Credit Risks

Counterparty Risks

Foreign exchange Risks

Interest rate Risks

Equity market Risks Liquidity Risks

Organization of foreign exchange, interest rate and equity market risk

management


44/47

Recent

Developments

&Prospects


45/47

The Christian Dior Group is very well placed to continue to deliver robust

growth in all of its businesses in the coming years. The Groups Strategy

will remain focused on communicating the core values of its brands and

building on their successes through a sustained commitment to innovation,

quality and expansion in the most promising markets.

Bolstered by its organizations ability to adapt quickly to changing

circumstances, and reinforced by the good balance between the Groups

different businesses and its wide geographical presence, the Christian Dior

Group enters 2012 with confidence and continues to set itself the goal of

strengthening its leadership position in the worldwide luxury goods market.


46/47

www.dior.com

www.facebook.com/dior

REFERENCE
http://www.dior.com/http://www.facebook.com/diorhttp://www.facebook.com/diorhttp://www.dior.com/


47/47

Documents

DIOR_Sariga