hec luxury mgmt project

GROUP 3 - HEC PARIS - SUMMER SCHOOL

. . . FROM ONLINE TO OFFL INE

oh!3. SOCIAL MEDIA

4. D IGITAL IZE STORES

1.REF INE THE WEBSITE

5. QR CODES

. . . FROM OFFL INE TO ONLINE

2. MA CÉL INE - ONL INE BOUTIQUE

6. PERSONAL APPOINTMENT

7. 3D ONLINE SHOPPING TOUR

INDEXTHE BRAND

THE DNA

POSIT IONING

TARGET SEGMENTS

TODAY´S CÉL INE

OBJECTIVES

PROPOSIT ION

APPENDIX

BRANDCÉLINE, A FRENCH READY-TO-WEAR AND LEATHER GOOD LUXURY BRAND, IS WELL -KNOWN FOR ITS STRONG AND POWERFUL IMAGE OF CONTEMPORARY MINIMALISM.

1945

1996

2008

CÉLINE TRACES ITS ROOTS BACK TO 1945, WHEN CELINE VIPIANA STARTED HER FIRST CHILDREN’S SHOE SHOP.

CÉLINE IS FULLY ACQUIRED BY LVMH.

PHOEBE PHILO HAS BEEN APPOINTED AS THE NEW CREATIVE DIRECTOR.

IDENTITY

DNAVISION A QUIETLY REVOLUTIONARY WISH TO MOVE FASHION FORWARD

MISSION PROVIDE WOMEN WITH A CONSIDERATE, CONSISTENT AND DISCREETLY LUXURIOUS WARDROBE

VALUES SENSE OF SUBTLE LUXURY WHICH ORIGINATED WITH CÉL INE VIP IANA AND CONTINUES TODAY IN F INE MATERIALS

ESSENCE AESTHETIC IS CLEAN, ELEGANT AND COMFORTABLE WITH A POINT OF VIEW THAT IS DISCIPL INED BUT ALWAYS AT EASE.

DNA

POSITIONING

PERSONA1 TARGET:CLASSIFIED AS “INNOVATORS”

JAQUEL INE, 41 YEARS OLDGALLERISTMILANWORKING MOTHERORGANIC FOODSTRAVEL A LOTFASHION LOVER

2 TARGET: MORDEN AS ”SELF-DISCOVERY”

JOSEPHINE, 25 YEARS OLDINVESTMENT BANKERLONDONSINGLEL IV ING FOT THE MOMENTLOVE TO GO COFFESHOP AT: NET-A-POTERSELF -DISCOVERYFASHION CONSCIOUS

TODAY’S CÉLINEINSTORE EXPERIENCE

PRODUCT-FOCUSED STORE LAYOUTGUIDE BOOK ON HOW TO DISPLAY CÉL INE’S PRODUCTS FOR EACH MONTH

”The open d isp lay spaces make cus tomers na tu ra l l y take up the pro -duc t s and t r y, which a l igns wi th the i r a im fo r an engaging cus tomer exper ience.” (S to re manager a t Cé l ine, fe l t job - J une 2016)

EXCEPTIONAL INTERIOR DESIGNCOLLABORATIONS WITH CONTEMPORARY ARTIST WHOSE WORK REFLECTS CÉL INE’S CLEAN AESTHETIC

NO DIGITAL DEVICESCÉL INE CUSTOMERS HAVE NO ACCESS TO DIGITAL DEVICES

TODAY’S CÉLINEONLINE EXPERIENCE

WEBSITEL ITTLE SENSORY ST IMULATION NO CAMPAIGN VIDEOS

NO E-COMMERCECÉL INE WANTS CUSTOMERS TO VIS IT THE STORE, TOUCH AND FEEL THE PRODUCT BEFORE PURCHASING

SOCIAL PLATFORMSNO OFFICIAL SOCIAL MEDIA PRESENCE

”To be t rue to Cé l ine ’s ph i losophy, the re i s no in ten t to es tab l i sh o f -f i c ia l soc ia l media accoun t s . Be ing qu ie t g ives more va lue to what we do.” (S to re manager a t Cé l ine, fe l t job - J une 2016)

OBJECTIVEI RECOGNIZE THE EVOLUTION OF CUSTOMER PREFERENCES

I I R ISE IN THE USE OF ONLINE AND MOBILE PLATFORMS

I I I MEET AND EXCEED CUSTOMER EXPECTATIONS

IV NEW SOURCE OF VALUE

OBJECTIVES

PROPOSITION

. . . FROM ONLINE TO OFFL INE

oh!3. SOCIAL MEDIA

4. D IGITAL IZE STORES 1.REF INE THE WEBSITE

5. QR CODES

. . . FROM OFFL INE TO ONLINE

2. MA CÉL INE - ONL INE BOUTIQUE

6. PERSONAL APPOINTMENT

7. 3D ONLINE SHOPPING TOUR

1.REFINE WEBSITETO PROVIDE A SENSORY JOURNEY

CERTAIN FEATURES WILL BE ADDED TO THE NEW WEBSITE:

- 360-DEGREE PERSPECTIVE OF MOST ICONIC PRODUCTS- ACCESSORIZE YOUR PRODUCT - TUTORIAL- CÉL INE CAMPAIGN VIDEOS

MORE AT PAGE 31 - 1.0

>

3600

>

2.MA CÉLINECÉLINE’S FIRST ONLINE BOUTIQUE

ENABLING CUSTOMERS TO PURCHASE THEIR DESIRED ITEMS DIRECTLY FROM THE WEBSITE:

- CONTENT IS KEY- ONLINE RELATIONSHIP- CUSTOMER SERVICE


> >

3.SOCIAL MEDIACÉLINE’S SOCIAL MEDIA PRESENCE

CREATING BRAND EXPERIENCES THAT MERGE REAL AND DIGITAL CONVERSATIONS

- OFFICIAL FACEBOOK AND INSTAGRAM ACCOUNTS- COMMUNICATION


4.DIGITALIZE STOREBY IMPLEMENTING TABLETS

PROVIDING BETTER CUSTOMER SERVICE AND ENHANCING BRAND EXPERIENCE

- INCORPORATING IPADS- GATHER PERSONAL INFORMATION


5.QR CODESNEXT TO EACH PRODUCT

EL IMINATING THE GAP BETWEEN PHYSICAL AND DIGITAL PLATFORMS

- EMBEDDED QR CODES- AUGMENTED REAL ITY

6.APPOINTMENTVIP RETAIL TREATMENT

OFFERING A PERSONAL SHOPPING MOMENT

- PR IVATE AND EXCLUSIVE SHOPPING EXPERIENCE- PERSONALISED SALES TECHNIQUES


7.3D JOURNEYULTIMATE AND EXCLUSIVE ONLINE SHOPPING EXPERIENCE

PROVIDING A VIRTUAL TOUR THROUGH A CÉL INE STORE

VIRTUAL REAL ITY SHOPPING

CLIENTS HAVE ACCESS TO A VIRTUAL CÉL INE STORE TO DISCOVER AND BUY PRODUCTS.

• NAVIGATE THROUGH THE STORE, THEREFORE GET FAMIL IAR WITH CÉL INE’S UNIVERSE• CL ICK ON PRODUCTS TO GET MORE INFORMATION• SCAN QR CODES AND RECEIVE THE SAME CONTENT AS IN-STORE

IMAGES FROM F IE LD TR I P - THURSDAY JUNE 2016

APPENDIX

DNA

STYLE : PHANTOMSTYLE : LUGGAGE STYLE : AUDREYSTYLE : BAL LER INA PUMP/ V NECK PUMP

BRAND ATTRIBUTES: ICONIC BAGS (LUGGAGE, CABAS, TRAPEZE) , CÉL INE LOGO (WITH ARC DE TRIOMPHE AND THE TWO C’S) , MAN- INSPIRED WARDROBE (MASCULINE CUT) , HEELS FOR THE SHOES, STRONG, SHARP S ILHOUETTES, “CROMBIE COAT”, COLLARLESS MASCULINE SHIRT, PERFECTLY CUT PAIR OF TROUSERS AND SMOKINGS

ESSENCE: HIGHEST QUALITY PRODUCT AVAILABLE IN INDUSTRY WITH ARTIST IC APPROACH

TARGETCÉLINE’S TARGET MARKET IS MOSTLY MATUREWOMEN WHO WANT TO IDENTIFY WHAT CÉL INE REPRESENTS: ELEGANT, MINIMALIST, MODERN AND CHIC.

PHOEBE PHILO WANTS HER CUSTOMERS TO OWN A WARDROBE FROM CÉL INE THAT WILL SEEM STILL FAS-HIONABLE AND CHIC AFTER SEVERAL YEARS.

1. TARGET: DEMOGRAPHIC SEGMENTS

• AGE: 30-60 YEARS (AVERAGE AGE OF 42), BABY BOOMERS AND GENERATION X MOSTLY • GENDER: FEMALE• MEDIAN HOUSEHOLD INCOME: $100,000• FAMILY L IFE CYCLE: S INGLE OR MARRIED PEOPLE• SOCIAL CLASS: UPPER OR UPPER MIDDLE CLASS, WITH HIGH-EDUCATED BACKGROUND

TARGET1. TARGET: PSYCHOGRAPHIC SEGMENTS

• CÉL INE CUSTOMERS ARE CLASSIF IED AS “ INNOVATORS”• HIGHEST LEVEL OF INCOME AND ABUNDANT RESOURCES• CARE ABOUT THEIR SELF -ESTEEM AND IMAGE AS AN EXPRESSION OF CHARACTER AND TASTE, INDULGING THEMSELVES IN ANY OR MOSTLY ALL SELF ORIENTATION • THEY OFTEN SEEK THE NICHE PRODUCT THAT REFLECTS THEIR ACQUIRED TASTE FOR L IFE• CHARACTERIST ICS: SUCCESSFUL AND SOPHIST ICATED WOMAN

2 TARGET: CUSTOMER SEGMENTS

• BAGS AND ACCESSORIZES: ATTRACT EVERY AGE GROUP WHO CAN AFFORD THEM (YOUNGER PEOPLE WHO WANT TO REWARD THEMSELVES AS WELL AS LOYAL CUSTOMERS)• READY-TO-WEAR: MAINLY BOUGHT BY LOYAL CUSTOMERS 30-60 YEARS OLD) WITH HIGH PURCHASING POWER AND A SOPHIST ICATED BUT DISCREET SENSE OF STYLE

OH! CELINESTRATEGY BEHIND THE: OH!CELINE

WE LAUNCH THE “OH! CEL INE” STRATEGY THAT COMBATS THE DIGITAL CHALLENGE.TO BUILD AN OFFL INE TO ONLINE TO OFFL INE STRATEGY (O2O2O) IN ORDER TO CREATE A CON-STANT L INK BETWEEN CEL INE AND ITS CUSTOMERS: TO CREATE A “WOW MOMENT”

oh!

PROPOSITIONS1. TO REFINE THE EXISTING WEBSITE

WE WANT TO MAKE THE HOMEPAGE OF THE WEBSITE MORE APPEAL ING, MORE SENSORY ST IMULATING THAT WOULD GIVE THE SAME IMPRESSION OF ENTERING A REAL STORE, SUCH AS HAVING DIFFERENT PHOTOS SMOOTHLY SHIFT ING PRESENTING DIFFERENT PRODUCT CATEGORIES OR EVENTS OF THE BRAND.

THEN, REGARDING THE PRESENTATION OF THE PRODUCTS WE WOULD L IKE TO CREATE A NEW ORGANI -ZATION BASED IN THE PRODUCT, S INCE CÉL INE FOCUSES ON IT, AND WITHIN THE CATEGORIES IT WILL BE SUBDIVIDED BY SEASONAL COLLECTIONS. MOREOVER, ONCE THE CUSTOMER WILL HAVE CHOSEN THE PRODUCT HE IS INTERESTED IN, WE WOULD L IKE TO ADD THE POSSIB IL ITY TO HAVE A 360° ONLY VIS ION OF THE BAGS, SHOES OR ACCESSORIES. THIS WOULD ENABLE TO BETTER F IGURE THE PRODUCT.

2. ENLARGE PRODUCT ACCESIBILITY WE WANT TO LAUNCH FOR THE F IRST T IME AN ONLINE CÉL INE BOUTIQUE UNTITLED “MA CÉL INE”. - ENABLING CUSTOMERS TO ORDER ONLINE ONLY BAGS, LEATHER ACCESSORIES, SHOES AND GLASSES*. - OFFERING MORE FLEXIB I L ITY TO CUSTOMERS, THEY COULD CHOOSE TO P ICK UP THEIR PURCHASE IN STORE, AND GET, L IKE THIS ADVANTAGE OF BOTH WORLD.

*Exc luding the ready - to -wear co l lec t ions due to the phi losophy of the Maison to br ing cus tomer in s tore .

3. TO CREATE OFFICIAL SOCIAL MEDIA ACCOUNTS (FACEBOOK, INSTAGRAM) COHERENTLY CREATING SOCIAL MEDIA ACCOUNTS SEEM ESSENTIAL TO US BECAUSE IT IS THE GATE FORCÉL INE TO INTERACT WITH ITS FUTURE CUSTOMERS: THE MILLENNIALS.

EVEN THOUGH THEY ARE NOT CURRENT CORE CL IENTS OF CÉL INE, IT IS NECESSARY TO INTERACT WITH THEM IN ORDER TO EDUCATE THEM TO THE COMPANY’S STYLE AND PHILOSOPHY BECAUSE THEY ARE TOMORROW’S CUSTOMERS.

- INSTAGRAM: IT ENABLES TO MAKE PRODUCT FOCUS COMMUNICATION - FACEBOOK: THE CONTENT MANAGEMENT IS EASIER AND MORE DIVERSE AND IT ENABLES THE MAISON TO BE L INKED WITH MORE CUSTOMERS IN THE 30-40 YEARS OLD RANGE.

PROPOSITIONS

4. IMPROVE CUSTOMER’S EXPERIENCE IN STORE

WE WANT TO IMPROVE THEIR EXPERIENCE BYCOMBINING THE ONLINE TO THE OFFL INE WITH ADDING

FINALLY, S INCE CÉL INE PROPOSE A CUSTOMIZATION OF BAG IN STORE, WE WANT TO DIGITAL IZE THE WAY THEY DO IT IN STORE BY COMBINING THE WAY THEY DO IT CURRENTLY, THAT IS TO SAY THAT THE CL IENTS ARE SHOWED THE DIFFERENT LEATHERS THEY CAN USE AND TOUCH THEM, ACCOMPANIED BY AN IPAD WERE ALL FEATURE COULD BE PUT AND AN OUTL INE WOULD BE SHOWN TO THE US T IMERBEFORE TAKING THE F INAL PURCHASE DECISION.

5. QR CODE

IMPLEMENT QR CODES IN STORE AND PROVIDE OPPORTUNIT IES TO SEE THE ONLINE BOUTIQUE QR CODE: IT SERVES AS A TOOL HELP ING CUSTOMERS TO GET MORE INFORMATION ABOUT THE PRODUCT (HISTORY BEHIND THE PROCESS OF MAKING/ DESIGN).

ENABLES S INGLE CUSTOMER TO BE TOTALLY EMERGED IN THE SHOPPING EXPERIENCE AND GET TO KNOW ALL THE FEATURES/ HISTORY OF PRODUCTS/ DESIGN PROCESS (NOT BREAKING THE IN-STORE EXPERIEN-CE) . ALSO, PAGES THAT POP UP WITH QR CODE WILL DISPLAY AN OPTION FOR CUSTOMERS TO ASK FOR ASSISTANCE BY SHOP ASSISTANTS

PROPOSITIONS

6. APPOINTMENT WITH A PERSONAL SHOPPER

THE POSSIB IL ITY ON THE CÉL INE WEBSITE BY:

- TO TAKE AN APPOINTMENT WITH A PERSONAL SHOPPER THAT WOULD WELCOME THE CL IENT IN A MORE PRIVATE ATMOSPHERE OF THE STORE WHICH ENABLE TO PROVIDE MORE SHOPPING EMOTION AND EXCLUSIVENESS TO THE CUSTOMERS. ALL THE COLLECTIONS WOULD BE PRESENTED TO HIM. .

7. 3D ONLINE STORE

ONLINE BOUTIQUE VIS IT: CUSTOMERS CAN ENJOY EXACTLY THE SAME SHOPPING EXPERIENCE AS IN PHY-S ICAL STORES, FOR INSTANCE, VIRTUAL JOURNEY THROUGH EACH STORE.

DETAILED DESCRIPT ION OF EACH PRODUCT IS ALSO SHOWN L IKE THE QRCODE.

PROPOSITIONS

JUSTIF ICATIONS OF THE OH! CÉLINE

1.0 ONLINEWHY E-COMMERCE STORE?A STUDY CLAIMED THAT WHEN OVERALL LUXURY INDUSTRY EXPERIENCED ONLY 2% SALES GROWTH IN 2013, WHILE ONLINE LUXURY SALES INCREASE 20% TO NINE BILL ION EUROS AND THIS GROW-TH SPEED IS EXPECTED TO MAINTAIN THE NEXT F IVE YEARS REACHING TWENTY BILL ION EUROS.[MCKINSEY 2014: LUXURY SHOPPING IN THE DAY]

O MCKINSEY DID AN INTERVIEW WITH 3000 LUXURY CUSTOMERS.O THE RESULT SUGGESTED THAT MORE THAN ONE OUT OF F IVE LUXURY CUSTOMERS WILL DO SOME RESEARCH IN ADVANCE OF MAKING A LUXURY PURCHASE.O INFORMATIVE WEBSITE FOR COMPUTER SCREEN IS NOT ENOUGH, A MOBILE FR IENDLY WEB S ITE IS ESSENTIAL WHEN THREE OUT OF FOUR LUXURY CUSTOMERS USE SMART PHONE TO SHOP DURING FREE T IME.O CUSTOMERS ARE ONLY INTERESTED IN WEBSITE WITH EASY-TO-NAVIGATE FEATURES AND UP- TO-DATE INFORMATION [MCKINSEY 2014: LUXURY SHOPPING IN THE DAYHTTP://WWW.SIPEPDESIGN.COM/WP-CON TENT/UPLOADS/2015/10/MCKINSEY-STUDY-LUXURY-SHOPPING- IN-THE-DIGITAL -AGE.PDF]

2.0 ONLINE SHOPPINGTRENDS IN SHOPPINGTHE INTERNET IS INCREASINGLY IMPORTANT TO LUXURY SALES.

DIGITAL IS EXPECTED TO DRIVE 40 PERCENT OF SALES GROWTH FROM 2013 TO 2020, DUE TO THE CONVENIENCE OF SHOPPING ONLINE.

3.0 SOCIAL MEDIAO WE UNDERSTAND THAT PHEOBE PHILO SAYS THAT “ I COULDN’T THINK OF ANYTHING WORSE,” SHE SAYS. “ I ’D

RATHER WALK DOWN THE STREET NAKED. I DON’T USE IT AND I DON’T COMMUNICATE WITH MY FRIENDS L IKE

THAT.[FT,2010.10] YET, A RECENT STUDY BY DEI WORLDWIDE (2008) PROVIDES THE FOLLOWING STATIST ICS:

• 70% OF CONSUMERS HAVE VIS ITED SOCIAL MEDIA SITES TO GET INFORMATION

• 49% OF THESE CONSUMERS HAVE MADE A PURCHASE DECISION BASED ON THE INFORMATION THEY

FOUND THROUGH THE SOCIAL MEDIA SITES

• 60% SAID THEY WERE L IKELY TO USE SOCIAL MEDIA SITES TO PASS ALONG INFORMATION

TO OTHERS ONLINE

• 45% OF THOSE WHO SEARCHED FOR INFORMATION VIA SOCIAL

MEDIA SITES ENGAGED IN WORD-OF-MOUTH.

O MOREOVER, THERE ARE GROUP OF FANS IN THE WORLD WOULD L IKE TO JOIN THE LUXURY WORLD, AND SOCIAL

MEDIA MARKETING (SMM) IS A TWO-WAY COMMUNICATION

• SEEKING EMPATHY WITH YOUNG USERS

• ENFORCING THE FAMIL IAR EMOTIONS ASSOCIATED WITH EXIST ING

LUXURY BRANDS TO A HIGHER AGE GROUP.

O IN ADDIT ION, SOCIAL MEDIA ACTIVIT IES OF BRANDS PROVIDE AN OPPORTUNITY TO REDUCE

MISUNDERSTANDING AND PREJUDICE TOWARD BRANDS, AND TO ELEVATE BRAND VALUE BY CREATING A PLAT

FORM TO EXCHANGE IDEAS AND INFORMATION AMONG PEOPLE ONLINE.[ J .K IM,KO,2012:

JOURNAL OF BUSINESS RESEARCH]

O WHEN CUSTOMERS EXPECT CONSISTENT LUXURY EXPERIENCE IN THEIR EVERT TOUCH-POINTS, CEL INE’S

NON-PRESENCE ON SOCIAL PLATFORMS WILL DISAPPOINT CUSTOMERS.

4.0 INSTOREWHY IPAD?O L INDA PASSARO, GLOBAL VICE PRESIDENT OF SALES AND MARKETING FOR MCINTOSH LABORATORY, NEW YORK CLAIMED THAT IPAD HAD A HUGE INFLUENCE ON THE LUXURY INDUSTRY, ONE THAT IS BEING PLAYED OUT TODAY ON MANY LEVELS. LUXURY BRANDS ARE ALL ABOUT PROVIDING CUSTOMERS WITH EXPERIENCES THAT GENERATE ENHANCED FEEL INGS FOR THE PRODUCTS THEY PURCHASE. IN THIS WAY, IPAD IS RELEVANT TO THIS INDUSTRY.

• BURBERRY USED IPAD PRESENTED IN A BURBERRY CASE AND PRESENTED TO CUSTOMERS FOR V IEWING AND ORDERING OF ITS SPRING SUMMER 2011 COLLECTION. CHIEF EXECUTIVE OFFICER ANGELA AHRENDTS CALLED IT ‘RETAIL THEATRE’ AND REMARKED THAT IT WAS ‘AT THE HEART OF [BURBERRY’S] RETAIL GROWTH STRATEGY’. [ LUXURY SOCIETY,2011.03]

5.0 INSTOREWHY PERSONAL ASSISSTENT?

• “CUSTOMER SPEND IS MUCH HIGHER — ALMOST FOUR T IMES HIGHER THAN THE AVERAGE TRANSACTION VALUE,” REVEALED ANDREW KEITH, PRESIDENT OF LANE CRAWFORD.

• IN ITS SHANGHAI STORE, OVER 50 PERCENT OF SALES ARE MADE BY PERSONAL APPOINTMENT.

O “THIS IS PARTICULARLY IMPORTANT FOR COMPANIES TARGETING MILLENNIALS,” ADDED BERNADETTE KISSANE, APPAREL AND FOOTWEAR ASSOCIATE AT EUROMONITOR. “PROVIDING ADDIT IONAL SERVICES AND A UNIQUE BRAND EXPERIENCE WILL HELP PROMOTE LOYALTY AMONG A CONSUMER BASE THAT IS RENOWNED FOR ITS F ICKLENESS.”

DIGITAL MAPDIGITAL COMPETITIVE MAP

- MAJORITY OF LUXURY BRANDS REMAIN SLOW TO BUILD THEIR DIGITAL CAPABIL IT IES- LACK E -COMMERCE SITES AIMED AT IMPORTANT EMERGING MARKETS

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