Kharles MwaloBennett GackleKe Ran WangWenjing 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

Dividends

Five-year dividend trend. Dividend in euro.

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 high-growth 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

• Miniskirts• Skinny pants• Go-go boot• Baby doll dress

1970s

• Platform shoes• Track suits• Earth shoes• Leisure suits

1980s

• Status bag ( Big shoulder bag )• Polo shirts• leg-warmers• Punk

1990s

• 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 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.

The Tendency of Fashion Industry

Competitors

ChanelGucciDolce&Gabbana

VersaceCounterfeiter

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.

Counterfeiter

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!!!!!