Kharles Mwalo Bennett Gackle Ke Ran Wang Wenjing Ye Dior History • French famous retailer • Established on December 16,1946 • 160 boutiques all over the world currently. • • • • First fashion collection in 1947 “New Look” Become famous Launched first perfume, Miss Dior • Expansion out of France began by the end of 1949 with the opening of a Christian Dior boutique in New York city • Dior fashions made up 75% of Paris's fashion exports and 5% of France's total export revenue • Christian Dior exclusively designed Marlene Dietrich’s dresses in the Alfred Hitchcock film “Stage Fright” in 1950 • First Dior shoe line was launched in 1953 • Marc Bohan, a genius designer who designed the “slim look” • In 1985, launched the perfume “Poison” • Marc Bohan divided Dior into: • Women's ready-to-wear, lingerie and children's wear • Accessories and jewelry • Menswear Current • On February 20, 2002 Dior opened its first Dior Homme boutique in Milan. • The second flagship boutique was opened in Ginza shopping district of Tokyo in 2004 • Mr. Silmane released a watch for the Dior Homme collection called "Chiffre Rouge." Current Situation In The Global Economy • Christian Dior is ranked number 346 in the Global Economy • Christian Dior couture revenues amounted to 546 M Euros • For the first 9 months of the year, Christian Dior Group reported revenues of 12.5 billion Euros reflecting organic growth of 10% • The group achieved revenue growth of 6% in 2008 • The current CEO is Sidney Toledano • The company currently has 74,834 employees • Dior has about 160 boutiques worldwide • Dior’s products can be found in 15 international countries. • Dior owns 42% of LVMH assets • Dior has strong competition from LVMH, Chanel, Gucci, Vernace, Hermes and counterfeiters Five-year dividend trend. Dividend in euro. Dividends Financial Highlights • Annual Revenue for 2007 was 17,245 Euros • Net Profit 2007 was 2,328 SWOT Analysis Strengths • Christian Dior is known worldwide for its runway fashions. • Strong Brand Recognition • Christian Dior is also a part of a highly competitive market. • In France, Paris could be considered the Silicon Valley of fashion. • The company competes with: – – – – Prada Gucci Louis Vuitton Armani SWOT (cont’d) • The company also provides a very wide and diverse product selection. • In particular, the wines and spirits division is also in the upper echelon of price and quality. • These products include: – – – – – Moet & Chandon champagne Hennesy Dom Perignon champagne 10 cane rum Glen Morangie scotch • Wines and Spirits also make up about 20% of Dior’s total revenue. SWOT (cont’d) • The Euro and US Dollar is primary currencies that Dior receives from its sales . The secondary currencies that Dior receives are the British Pound Sterling and the Japanese Yen . • Upper management • Receive high exposure in magazines and advertisements throughout the world. SWOT (cont’d) Weaknesses • Low brand recognition amongst men • Extremely low revenue and presence in Latin America and South America. • Luxury Good • Company’s sales depend heavily on the highgrowth markets • Christian Dior also fights for a market share in such a limited market. • Products are extremely expensive. • Vertical Integration SWOT (cont’d) Opportunities • The market of spirits & liquors in Asian, Latin American, South American, and North American markets. • Latin and South America. • Offer more economy priced clothing. • Plus sizes. • Male market. SWOT (cont’d) Threats • The current global economy • Animal rights groups • Changing trends in tastes from year to year. • LVMH Industry Analysis • The fashion industry began in Boston, U.S. in • the 20th century. •Fashion Industry changed constantly during its • development with the social and economical revolution. Trends of Past 40 Years 1960s 1970s • • • • • • • • Miniskirts Skinny pants Go-go boot Baby doll dress Platform shoes Track suits Earth shoes Leisure suits 1980s 1990s • Status bag ( Big shoulder bag ) • Polo shirts • leg-warmers • Punk • • • • Power bead bracelets Pashmina Tattoo Capri pants The Tendency of Fashion Industry • The product innovation is accelerating and the force of a consumer driven market is much more important than the past. • The trend of “green” is affecting the fashion industry more than ever before. The Tendency of Fashion Industry • The luxury brands are seeking more market shares in the emerging markets like Russia, China and Middle East. • (The forecasting growth of the fashion industry in U.S.) • The affordable luxury market all over the global is facing a trouble of losing sales on its leading customer group---middle class. Competitors Chanel Gucci Dolce&Gabbana Versace Counterfeiter Chanel • Chanel is a dominant couture company comes from France. • The most famous products of the company is the leather metal • chain handbag and the perfume―Chanel N˚5. • Chanel has owned more than 100 boutiques all • over the global. • Gucci is an Italian company founded in Florence and • considered to be the most recognizable fashion • brands all over the world. • Gucci is known for the high-quality leather products and • hand-making shoes. • Gucci accelerated internationalization in 1989 and targeted • at young generation and Asian Pacific Region. • At present, Gucci is operating 450 stores worldwide. • DOLCE&GABBANA is an Italian company • based in Milan. • The company separates the brand into two • leading lines. • DOLCE&GABBANA opened the first • international boutique in Japan 1989. • Versace is an Italian corporation established in 1978. • Versace Furniture and Versace hotel―Palazzo Versace. • The company launched an inferior series for the • economic group. • Versace do business in 60 countries and own more than • 200 boutiques . • Fake products has accounted for 7% to 10% in the world trade at present. • Most of the fake goods are produced in Asian countries. • Counterfeit controls. Recommendations • Short Term – Improved Website. – Marketing & Advertising towards males. – Direct to company online shop for US based customers. – Offer financial statements in English. Recommendations (cont’d) • Long Term – Offer economical line. – Counterfeit protection. – More products with Dior name. – Untapped markets: • Latin America • South America • Australia & New Zealand End of Presentation • Q & A session is now open to floor • Please ask anything, even if its about our own clothes. • BUY REAL CHRISTIAN DIOR PRODUCTS!!!!!