Christian Dior Founded on : Dec 16, 1946Founded by : Christian DiorHeadquarters : Paris , FranceNumber of locations: 160 boutiques globallyArea Served : World wide

high end shopping

Bernaud Arnault (chairman of the board),

Sydney Toledano (CEO)John Galliano (head designer of haut couture)

Kris Van Assche ((designer of jewellery)

Company Information Industry: luxury goods Products: high fashion

retail Revenue: €17.93 billion Operating income: €3.468

billion Profit: €796 million Total asset: €35.59 billion Total equity: €15.27 billion Subsidiaries: LVMH (42.4%

controlling stake).

Vision Statement –“To become the world’s most popular brand in all products that enhance their lifestyle.”

Mission

We strive to create the environment that is fun, welcoming and that encourages customers to tap into their creativity and explore their personal styles.

Our strive to provide our clients with the highest quality promotional merchandise available worldwide

Five Priorities - Shared By All Group Stakeholders

Be creative and innovate

Aim for product excellence

Bolster the image of our bran

ds with passionate

  determination

Act as entrepreneurs

Strive to be the best in all we

do

Business description

“Principal activities are the production and sale of fashion accessories and beauty products”

Product Line

ClothesWines & SpiritsFashion & Leather goodsPerfumes & CosmeticsWatches & SunglassesFine Jewellery

Clothing

Wines & Spirits

Leather goods

Perfumes & Cosmetics

Global Luxury Watch Market Share

Rolex 50%Swatch 12%LVMH 10%Others 28%

Watches & Jewellery

BLACK MOON

• Founded in : 1975• The international watch

making cradle in Switzerland.

• Dior watches continues the logic of excellence of the Dior House.

• Theme - a woman who decides to wear a man's watch so that she is always thinking of him.

OUR COMPETITORS

Parfums Christian Dior

Founded in : 1947• Innovation – The

HouseMake women elegant - new shades, textures and unique fragrances.

• Dream – Fragrance

Dior fragrances all express a state of mind, a way of life.

Christian Dior Perfumes

• Rs.5,249 | $131.22(Including VAT)

• Rs.7,999 | $199.98(Including VAT)

• Poison- Rs.4,975 | $124.37(Including VAT)

Screen clipping taken: 11-01-2010, 10:03

Some Boutiques Across the Globe

Boutiques

India

Paris

New York

Sydney

London

Hong Kong

Market Opportunity

• Interesting market -Japan, China, India• Taps on environment friendly policies .• Focus on country specific clothing.

China

• Third largest luxury goods market in the world behind Japan and the United States.

• Goldman Sachs estimates that the global luxury goods market is approximately $50 billion USD with Chinese consumers accounting for 12% of worldwide sales, for a total of $6 billion USD

• Already there are an estimated 300,000 Chinese with a net worth of $1 million

• Estimates from Master Card and Visa are that there will be between 75 and 100 million international credit cards issued in China by 2010.

• China has one hundred cities with populations greater than one million, compared to nine in the US.

http://www.businessoffashion.com/2010/01/in-india-luxury-brands-need-localised-strategies.html

India

• Retail management company KSA Technopak estimates the market for luxury and high-end clothing in India at Rs 1,000 crore and for accessories at another Rs 1,000 crore.

• 169 million credit card by the end of 2010

• Fastest growing millionaire population in world.

• Newly affluent lack sufficient knowledge and awareness of luxury brands to drive significant sales-management consultants AT Kearney and The Economic Times

Source:http://www.wikinvest.com/concept/Luxury_Consumption

Japan

• Japan consumes about 25% of luxury goods--the same as Americans and Europeans each;

• As a point of relative comparison, Japan's population is about 125 million and the U.S. is around 300 million, meaning that Japan consumes luxury goods at about twice the average rate as Americans.

• Nearly half of all Japanese women over the age of 20 own a Louis Vuitton handbag and 94% of women in Tokyo in their 20's own at least one Louis Vuitton handbag.

CONCERN FOR ENVIRONMENT

• Respect for nature – Protect biodiversity and ensure consumer health,– Harmless production methods, and the impeccable

quality of proven products.– Factor of progress and competitiveness while for

society it represents a tangible proof of freedom and a new way of thinking.

• Tradition cannot be separated from innovation, nor nature from creation.

CONCERN FOR ENVIRONMENT

• A selective transport policy For transporting goods, a ship produces 80 times less CO2 than a plane.

• Well-treated water At the Guerlain site in Chartres, a waste treatment station was built and started up in 2003: it provides a pollution clearance rate higher than 90%.

• Château d'Yquem set up a new system to treat its wine-production effluents and waste water.

CONCERN FOR ENVIRONMENT

• To ensure effective environmental control• An awareness program with their suppliers and

subcontractors.• Its fabric suppliers to comply with regulations

governing nitrogen dyes and the use of nickel.

Optimized energy consumption: The Parfums Christian Dior

• Reducing energy consumption – Parfums Christian Dior

energy consumption dropped from 14.2 MWh in 1999 to 8.6 MWh in 2003 per ton of product manufactured.

• An oil-separator tank has been set up for the parking lot.

• Crisis management – In strict compliance with

national regulations governing manufacturing, all the companies concerned have implemented a program to monitor wastes.

Business Opportunity

• Huge opportunity lies in outsourcing clothing line. • Rising middle class • Open Directly operated stores.• Introduce children wear.• Collaborate with banks to give product on EMI-

capture more customers.• Collaborate with T.V channels like MTV LYCRA • Focus on e-commerce.• Educate Consumer advertisement.

Recommended Strategy

Tie – Up With Automobile Industry-AMC,GM,FORD

Christian Dior Academy Apparel Manufacturing Outsourcing-haute Couture Concept Stores In India

http://www.businessoffashion.com/2010/01/in-india-luxury-brands-need-localised-strategies.html

Strategy Continued

Focus on Tier 1,Tier 2 cities India ,China.Focus on children apparel India.Collaborate with banks for customers.Localize market strategy in India.Focus on e-commerce.

Income statement of Christian Dior (EUR millions, except for earnings per share) 2008 2007 2006 Revenue 17,933 17,245 16,016Cost of sales (6,305) (6,060) (5,745)Gross profit 11,628 11,185 10,271Gross profit margin 64.8% 64.9% 64.1%Selling .General and administrative expenses (8007) (7575) (7062)Profit from recurring operations 3621 3,610 3,209Other operating income and expenses (153) (117) (127)Operating profit 3,468 3,493 3,082Operating margin 19.3% 20.25% 19.2%Cost of net financial debt ( 322) (272) (230)Other financial income and expenses (26) (45) 123Net financial income (expenses) (348) (317) (107)Income taxes ( 904) (855) (850)Income (loss) from investments in associates 8 7 8Net profit before minority interests 2,224 2,328 2,133Minority interests 1,428 1,448 1,336Net profit – Group share 796 880 79Net profit margin 4.43% 5.10% 4.9%

Income statement of Chanel 2008 2007 2006

Revenue 1,032.9 791.4 668.2 Cost of Goods Sold 373.9 288.8 243.3 Gross Profit 659.0 502.6 425.0 Gross

Profit Margin 63.8% 63.5% 63.6% SG&A Expense -- -- -- Operating Income 106.0 132.3 111.1 Operating Margin 10.3% 16.7% 16.6% Non operating Income (6.5) 0.0 4.3 Nonoperating Expenses (14.3) 0.5 (5.4) Income Before Taxes 87.2 121.7 104.0 Income Taxes 7.2 10.3 13.0 Net Income After Taxes 80.1 111.4 90.9 Continuing Operations 80.1 111.4 90.9

Total Operations 80.1 111.4 90.9 Total Net Income 80.1 111.4 90.9 Net Profit Margin 7.8% 14.1% 13.6%

PARIS FASHION WEEK

2009-10

HAUTE COUTURE

BY

CHRISTION DIOR

MOODBOARDS

NATURE

S E A

SEA SHORE

Thank You