Christian Dior

Founded on : Dec 16, 1946

Founded by : Christian Dior
Headquarters : Paris , France
Number of locations: 160 boutiques
globally
Area Served : World wide
high end
shopping
 Kris Van Assche
John Galliano (head ((designer of
Bernaud Arnault
Sydney Toledano (CEO) designer of haut jewellery)
(chairman of the board),
couture)
 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 brand
s 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

 Clothes
 Wines & Spirits
 Fashion & Leather goods
 Perfumes & Cosmetics
 Watches & Sunglasses
 Fine 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
House
Make 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

India

Hong
Paris
Kong

Boutiques

London New York

Sydney
 Market Opportunity
• Interesting market -Japan, China, India
• Taps on environment friendly policies .
• Focus on country specific clothing.
 • Third largest luxury goods market in the
world behind Japan and the United States.
China • 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.
 • Retail management company KSA
Technopak estimates the market for
India 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

http://www.businessoffashion.com/2010/0
1/in-india-luxury-brands-need-localised-
strategies.html
 • Japan consumes about 25% of luxury
goods--the same as Americans and
Japan 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.

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

http://www.businessoffashion.com/2010/0
1/in-india-luxury-brands-need-localised-
strategies.html
 Income statement of Christian Dior
(EUR millions, except for earnings per share) 2008 2007 2006
Revenue 17,933 17,245 16,016
Cost of sales (6,305) (6,060) (5,745)
Gross profit 11,628 11,185 10,271
Gross profit margin 64.8% 64.9% 64.1%
Selling .General and administrative expenses (8007) (7575) (7062)
Profit from recurring operations 3621 3,610 3,209
Other operating income and expenses (153) (117) (127)
Operating profit 3,468 3,493 3,082
Operating margin 19.3% 20.25% 19.2%
Cost of net financial debt ( 322) (272) (230)
Other financial income and expenses (26) (45) 123
Net financial income (expenses) (348) (317) (107)
Income taxes ( 904) (855) (850)
Income (loss) from investments in associates 8 7 8
Net profit before minority interests 2,224 2,328 2,133
Minority interests 1,428 1,448 1,336
Net profit – Group share 796 880 79
Net 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
PARIS FASHION WEEK
2009-10
HAUTE COUTURE
BY
CHRISTION DIOR
MOODBOARDS
NATURE
SEA
SEA SHORE
Thank You