A business plan was created as part of an establishment of an outlet for Dior products in China. It contains a market analysis to determine strengths, weaknesses, opportunities and threats of the Chinese market. It consists of an analysis of the Dior group, and the whole city to determine how the establishment of such a store would fare. Finally, there is a study about the Chinese consumer, whose conclusions will be better identified and if necessary, adapted to promote products.
It is in the context of accounting courses that this business plan was made, and therefore it takes into account characteristics such as accounting balance sheets, income statements and so on, to simulate the implantation. The company has been a paragon of growth in the recent years. Already present and recognized in Western markets, Dior wants to conquer new markets, particularly in emerging markets like Asia or Central America. In those countries, there are new emerging classes who can afford a life of more luxuries.
The history of the House of Dior is an example in the world of fashion and can even be cited as a model to follow. Its founder, who died prematurely, remained as the head of his label for ten years, and these ten years were sufficient to make his mark in the history of fashion. Dior, as well as Chanel and Yves Saint Laurent, is indeed now one of the few fashion houses, to have established over the years.
Christian Dior was born in Normandy in 1905 in a middle class family and he attended school and college halfheartedly giving in to the insistence of his parents and studied political science. His artistic aspirations led him to open his own art gallery after being inspired by Max Jacob, Dufy and Christian Berard. This relative period of inactivity ended with the death of his father and then he lived by selling his sketches and was eventually hired as a designer by Robert Piguet in 1938.
After serving in World War II in the South of France, he returned to Paris and worked for some time with Lucien Lelong. In 1946, attracted by his talent and determination, a textile manufacturer, Marcel Boussac, offered him the chance to create his own fashion house,an event which eventually led to the recognition of Dior's creative genius. If Christian Dior is a visionary figure on the artistic level, he is also a pioneer in management. While all other designers were satisfied in designing their dresses, Dior was the first to make a mark in the society in 1948.
By 1948, Christian Dior's line of perfumes was created, giving birth to the first perfume, called Miss Dior. In 1968, the company was sold to Moet-Hennessy.On the death of its founder, in 1957, the house was taken over by a young man who was hired four years ago as an assistant: Yves Saint Laurent. Meanwhile, in 1984, the Boussac group was experiencing difficulties. In 1987, Henri and Alain Chevalier Racamier, the president of Louis Vuitton and Moet Hennessy, decided to merge their two companies and from this union LVMH came into existence.
Tags: Dior products, Chinese market,Asia, Central America, Yves Saint Laurent, Chanel, LVMH
[...] One can notice several types of clients: - Wealthy and regular clients - Difficult to please kind of customers: they give important source of revenue for the brand: the occasional customers who give the impression of entering the world of Dior by buying a few accessible items. D. Bargaining power of suppliers Suppliers do not have high bargaining power; Christian Dior takes advantage of its leading position due to its links with LVMH to work with suppliers common to many brands. [...]
[...] In addition to the gradual opening of its trade, China initiated its entry in the "socialist market economy" in 1992, the Chinese market is a new Eldorado for Western brands given the level of maturity or saturation on their domestic markets. Thus, despite its Communist regime and the relatively low standard of living of these people, China is a country that is in the growth phase. This is also a good time to try to enter the Chinese market, according to the president of Giolong International; the boom is caused by the Beijing Olympics in 2008 and the arrival of Formula 1 Grand Prix. [...]
[...] In view of this analysis, we can say that this is an alignment strategy as Dior uses the rules of the market for a competitive advantage. Indeed, these various lines of strategy can be found for several major brands in the luxury sector. Aggressive communication Much of the decisions regarding the brand Christian Dior is to strengthen its image. These would include practiced communication. We have already seen the fundamental role of art directors in the implementation of the strategic outline including marketing. [...]
[...] The Dior case analysis showed that today, the group adopted both for the Dior label for LVMH brands, a policy of organic growth achieved in particular through a diversification strategy. The diversification of luxury brands is delicate so it's essential to choose business segments in accordance with the image and the values conveyed by each brand. One can cite the example of Pierre Cardin, who, in granting so many intemperate licenses, ended up "killing" his brand which was unrecoverable by the professionals. [...]
[...] It is therefore essential for Dior to work with them Regarding LVMH The strategic decisions of Dior and LVMH are very similar and has a common logic. Indeed, Bernard Arnault is the head of the Christian Dior Group, the policies applied to the two entities are closely related. The LVMH group practiced until 2001 a policy of external growth characterized by the acquisition of companies specializing in different areas of luxury, and it is now focusing on internal growth from its portfolio of brands (25 companies came under the control of LVMH in 1999 and 2000 against 1 in 2001). [...]
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