Transcript
Apparel Merchandising and Marketing Presentation on
DIOR
Presented BySariga P.S.
DIOR
PROFILE
Type Société AnonymeIndustry Luxury goodsFounded 16 December 1946Founder Christian DiorHeadquarters Paris, FranceNo. of Locations 210(as of Sept 2010)
PROFILE
Areas served Worldwide high-end shopping districts
Key People Bernard Arnault (Chairman) Sidney Toledano(CEO)Kris Van Assche(Creative Director)Victoire de Castellane(Designer)Products High Fashion RetailRevenue €21.12 billionOperating Income €4.172 billion
MISSION
“True Luxury requires genuine materials and the craftman’s sincerity. It is only meaningful
when it respects tradition” – Christian Dior
Dior is the ultimate symbol of elegance, excellence and luxury.
In the 21st century, Dior continues to define elegance and style with the same audacity
that inspired Monsieur Dior when he launched his house.
Organizational Chart
Christian Dior *
Financiere Jean Goujon
LVMH
Christian Dior Couture
100%
100%
42.4%
* Listed Company
Corporate Governance
BOARD OF DIRECTORS
Bernard Arnault ChairmanEric Guerlain Vice ChairmanSidney Toledano Chief Executive Officer
Antoine Bernheim Denis DalibotRenaud Donnedieu de Vabres Ségolène Gallienne Pierre Godé Christian de Labriffe Jaime de Marichalar y Sáenz de Tejada
Directors
History of Christian Dior
1905
1946
1947
1948
1949
1950
1952
1955
In Nov a luxury RTW house is established in New York at the
corner of the 5th Avenue and 57th Street, the first of its kind. Creation of Christian Dior Parfums New York
License for neckties. All accessories follow. Within three years, this system was copied by all the couture houses
At age 19, Yves Saint Laurent becomes Christian Dior’s first and only assistant. Opening of the Grande Boutique at the
corner of the avenue Montaigne and rue Francois Ier. Launch of Dior Lipstick. A line
of beauty products follow
Birth of Christian Dior in Granville(Normandy, France)
on January 21
On Feb 12, Christian Dior presents the 90 models of his first
collection on six mannequins
Launch of the perfume “Diorama” By marketing Dior stockings in the
US, the brand creates the licensing system
The Christian Dior brand consolidates its presence in Europe by creating Christian Dior Models
Limited in London. Agreement with the House of Youth in Sydney for exclusive Christian Dior New York Models. Exclusive agreement with
Los Gobelinos of Santiago, Chile for the Christian Dior Paris Haute
Couture collections
Backed by Marcel Boussac, Christian Dior found his own
couture house in a private house at 30, avenue Montaigne in Paris
1957
1960
1961 1962
1963 1966
19671968
Yves Saint Laurent opens his own couture house
Launch of the men’s fragrance “Eau Sauvage”
Launch of the Christian Dior Coordinated Knits line. The Dior perfume company is sold to Moiet Hennessy. Frederic Castet
assumes management of the Fashion Furs Department- Christian Dior Paris.
Christian Dior succumbs to a heart attack while convalescing at Montecatini on Oct 24. Yves
Saint Laurent is named to provide artistic direction for the
brand
Marc Bohan presents his first collection, “Slim Look”, under the
Dior Label
Launch of the perfume “Diorling”
Philippe Guiborge, assistant to Marc Bohan, creates the “Miss Dior” line, the first Dior women’s RTW line in
France. Opening of the “Baby Dior” boutique.
Called up for National Service. Yves Saint Laurent leaves Dior after
completing six collections. Marc Bohan succeeds him. He is 34 years
old.
1970Creation of the Christian Dior Monsieur line. At Parly II, a new
Christian Dior boutique is decorated by Gae Aulenti Launch of the perfume “Diorella”
1972
1973
1978
1979
19801981
19841985
1987
Launch of the men’s fragrance “Julies”
A group of investors, led by Bernard Arnault takes control of the former Willot Group
The Paris Fashion Museum dedicates an exhibition to Christian Dior on the fortieth
anniversary of his first collection.
Creation in France of the RTW fur collection, which will then be
manufactured under license in the United States, Canada and
Japan
Launch of the perfume “Dioressence”
The Willot group declares bankruptcy
Bernard Arnault becomes Chairman and Chief Executive Officer of Christian Dior. Launch of the
perfume “Poison”
Bankruptcy of the Marcel Bussaic group, whose assets under the authorization of the Paris Trade
Court, are purchased by the Willot Group.
1988
Through its subsidiary Jacques Rober, held jointly with the Guinness group,
Christian Dior takes a 32% equity stake in the share capital of LVMH. The share
capital of Christian Dior is offered to French and foreign institutional
investors who subscribe to a capital increase of 3.3 billion francs in a private
placement.
Gianfranco Ferre joins Christian Dior as creator of the Haute Couture, Fashion Furs, and
Women’s RTW collections. His first Haute Couture collection is awarded the De’ d’Or. Opening of a boutique in Hawaii. Jacques Rober’s stake in LVMH is increased to 44%
1989
1990
1991
1992
1994
1995
1996
1997
1998
A revision of agreements with Guinness has the effect of increasing Christian Dior’s consolidated stake in LVMH from 24.5% to
41.6%
John Galliano becomes creator of Christian Dior Couture.
Christian Dior Couture takes over the direct marketing of ready to wear and women’s accessories in Japan after terminating its
licensing agreement with Kanebo
Opening of boutiques in Los Angeles and New York. LVMH’s
stake is increased to 46%
Patrick Laviox is named Creative Director of “Christian Dior Monsier” Relaunch of “Miss Dior” perfume.
The Couture line is transferred to a wholly- owned subsidiary that takes the corporate name “Christian Dior
Couture”
Christian Dior Couture takes over the network of 13 boutiques
operated under franchise by its Japanese Licensee, Kanebo
Listing of Christian Dior in the spot market and then the monthly settlement market of the Paris stock exchange. Launch of the
perfume “Dune”
1999Launch of the perfume “J’adore”. Creation of a new business group, Fine jewelry, whose collections are created by Victoire de Castellane.
In Jan 2001, Heidi Slimane, new creator of the “Homme” line, presents his first collection based on a new contemporary masculine concept.
2001
2002
2003
2004
2005
2006
2007
2008
2009
Celebration of the centennial of Christian Dior’s birth. Launch of the perfumes “Miss
Dior Cherie” and “Dior Homme”
Celebration of the 60th anniversary of the creation of Maison Dior(1947). Kris Van
Assche, the new creator of the menswear line, presents his first collections.
New Online advertising campaign for Lady Dior handbags featuring Marion
Cotillard
Launch of the perfume “Addict”
Opening of a flagship boutique in the Ginza district (Tokyo).
Christian Dior Couture directly takes over the activity of its Moscow agent
and opens a boutique in the GUM department store.
Major exhibition organized in Beijing, in association with Chinese
artists, to celebrate the brand’s entrance into the Chinese
marketplace.
Opening of a flagship boutique in the Omotesando district(Tokyo).
2010Organization of an event in Shanghai to celebrate the expansion and reopening of
the boutique in the Plaza 66 shopping mall
MERCHANDISE
Christian Dior Couture
Wines & Spirits
Fashion & Leather Goods
Perfumes & Cosmetics
Watches & Jewelry
Selective Retailing
DIORCOUTURE
Dior Couture
Highlights• Success of the Group’s 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 reinforcing
Dior’s values
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
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 of operating costs and investments will enable Christian Dior Couture to pursue its groeth and profitability objectives
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 euros following the recognition of non recurring expenses totaling 14 million euros
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 by the 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.
Dior Couture
Analysis of Business growth
(EUR millions) 2010 2009 Change at actual exchange rates Change at constant exchange rates
License royalties 35 35 0% -1%
Wholesale revenue 124 134 -7% -8%
Retail Revenue 667 548 +22% +16%and otherTOTAL 826 717 +15% +10%
DIORWINES & SPIRITS
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%
Wines & Spirits
Outlook towards the future
• 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 growth strategies will be based on their strong ability to innovate and on substantial media and marketing investments
DIORFASHION
& LEATHER GOODS
Fashion & Leather GoodsHighlights
• 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 group’s 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%
Fashion & Leather Goods
Outlook towards the future
• Louis Vuitton will maintain its innovative momentum and continue to focus on its values of perfection and sophistication
• The brand will expand its personalization services. Continue qualititative development of its global store network and strengthen production capacities
• 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
DIORPERFUMES & COSMETICS
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%
Perfumes & Cosmetics
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 group remained stable at 11%
Perfumes & Cosmetics
Outlook towards the future
• Parfums Christian Dior has strong growth prospects for Miss Dior Cherie which will benefit from the association with its new ambassador Natalie Portman.
• Parfums Kenzo will launch a new fragrance for women while it unveils a new and very original variant of FlowerbyKenzo
Perfumes & Cosmetics
Outlook towards the future
• 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
DIORWATCHES & JEWELRY
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 twofold to 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
Watches & Jewelry
Outlook for the Future• In the coming years the Watches and Jewelry business group’s strategy of profitable
growth will be continued and expanded with ambitious targets.• Communications investments will be continued, including on the Internet and will
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 and Hong Kong among others.
• The TAG Heuer, Hublot and Chaumet brands are initiating a major program of new 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 all market segments
DIORRETAIL
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 million euros
• The operating margin as a percentage of revenue for Selective Retailing as a whole increased by 1 point to 10%
Selective Retailing
Outlook for the Future• DFS has a solid outlook for growth in the coming months driven by the continued
positive trends in the past years• The program to expand and renovate the Gallerias will actively continue in
Macao Four Seasons, Hawaii, Singapore and Okinawa• Miami Cruiseline will benefit from the contribution of several new cruise ships
and from the trend toward larger and larger vessels• To continue the solid momentum, Sephora has ambitious objectives for growth
and gains in market share• The brand is stepping up the rate of store openings in the key countries where it
intends 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 targeting strong growth in its business in the coming years
Operational Risk Factors
&Insurance Policy
Strategic & Operational Risks
• Threats to the Group’s 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 Group’s products• Seasonality• Supply sources and strategic competencies• Information systems• Industrial and environmental risks
Insurance Policy
• Property and business interruption insurance
• Transportation insurance
• Third- party liability
• Coverage for special risks
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
Recent Developments
&Prospects
The Christian Dior Group is very well placed to continue to deliver robust
growth in all of its businesses in the coming years. The Group’s 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 organization’s ability to adapt quickly to changing
circumstances, and reinforced by the good balance between the Group’s 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.
THANK YOU!!
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