diversification into luxury goods. agenda luxury industry moet hennessy louis vuitton - lvmh swot...
TRANSCRIPT
Agenda
• Luxury Industry • Moet Hennessy Louis
Vuitton - LVMH • SWOT• Competitor Analysis• Short& long
Recommendations
Luxury Goods IndustryWhat is Luxury?
Luxury Goods Industry – History
Luxury Goods Industry – Current
Definitions…
If everyone owns a particular brand… by definition it is not luxury
Luxury is associated with high price, or high quality Luxury is about the quantity of expensive goods
Luxury is derived from unique craftsmanship & technical superiority
Luxury is to project certain social status or wealth
Luxury is to satisfy an emotional desire for subjective intangible products
Luxury Goods Industry - History
• 18th Century – viewed as the beginning of luxury history in Europe
• For centuries, luxury goods industry which has been controlled by the family business provides services to the most affluent sectors of society
• In recent years, for the wave of acquisitions, most of these family-run enterprises were merged by the Commercial giant
Luxury Goods Industry – Global• Before the 1990s Global luxury industry kept 10% -20%
of the unconventional speed development, and created a 250 billion US dollars on the global market
• 2000, the industry began to turn constantly troughs period
• Since 2000, the global luxury goods
market in a state of contraction
• 2004 luxury industry profit has declined 35.7%.
• 2006 Global sales of luxury goods rose 10 percent to a record 150 billion
Luxury Goods Industry - Current
• Consumer consumption rates – based on global market share
41%
17%
16%
12%
14%
l uxury goods market share i n the gl obal di stri but i on
JapanAmeri caEuropeChi naOthers
The Group is active in 5 Sectors
Watches& Jewelry
Perfumes & Cosmetics
Fashion& Leather
Goods
Selective retailing
Wine & Spirits
+TODAY
6> 64,000 employees
> 1,700 stores worldwide
> 60 Prestigious brand
>$ 17 billion US Revenue
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Strength
• -Powerful and prestigious brand portfolio• -World renowned• -Powerful distribution capabilities• -New product launches• Wines and spirits
Moët & Chandon; Hennessy;
Louis Vuitton, Kenzo, Givenchy, Fend
Christian Dior, Guerlain, Parfums Givenchy
Dior, Fred, Omas, TAG Heuer
DFS Galleria, Miami Cruiseline Services, Sephora, Le Bon Marché
Weaknesses
• -Selective Retailing division continued poor performance
• -Higher exposure to US Dollar than its peers• -Weak sales performance
Opportunities
• -A change in investor’s perception• -Expansion into new countries• -Product diversification• -Advertising impact
Strength
• -Powerful and prestigious brand portfolio• -World renowned• -Powerful distribution capabilities• -New product launches• Wines and spirits
Moët & Chandon; Hennessy;
Louis Vuitton, Kenzo, Givenchy, Fend
Christian Dior, Guerlain, Parfums Givenchy
Dior, Fred, Omas, TAG Heuer
DFS Galleria, Miami Cruiseline Services, Sephora, Le Bon Marché
Weaknesses
• -Selective Retailing division continued poor performance
• -Higher exposure to US Dollar than its peers• -Weak sales performance
Opportunities
• -A change in investor’s perception• -Expansion into new countries• -Product diversification• -Advertising impact
Remy Cointreau
• Founded: Merger of Remy Martin(1724) and Cointreau(1849), France, 1991
• Products: cognac, wines, rums, liqueurs, champagnes
• Sales (mil.) in 2006: $963.9
• Net income (mil.) in 2006: $89.2
• Employees: 1346
Advantage
• Customer loyalty
• The decision to regain control of worldwide distribution
• Increase brand awareness and market leadership
PPR(Pinault-Printemps-Redoute)
• Founded: Francois Pinault, France, 1963
• Sales in 2006 ( mil. ): $23,656.2
• Net income in 2006 ( mil.) : $965.9
• One year net income growth : 42.2%
• Employee in 2006 : 78,453
Gucci
• Subsidiary of PPR
• Founded: Goccio Gucci, Italy, 1921
• Products: cosmetics, shoes, perfumes, Leather fashions, watches
Prada
• Founded: Mario Prada, Italy, 1913
• Products: costumes, hand bags, suitcases, watches, perfumes
• Company type: private
Richemont • Founded: Anton Rupert, Switzerland,
1988
• Products: jewelry, watches, leather goods, pens
• Sales in 2006 ( mil.) : $ 5,201.9
• Net income in 2006 ( mil.) : $1,323.4
• Employee: 16,400
Short Recommendation
• Customer Service – providing better service to customers to keep them
• Company growth – serving consumers (i.e. starbucks)