The House of Dior

1. Christian Dior
Doneisha Slade
Se’Quan Norman
Sarah Leavy
Caitlynne Harrington

2. Introduction
& Overview
· On December
1
6
,
1
9
4
6
, Christian
Dior, a Frenchman, created the
house of Christian Dior at
3
0
Avenue Montaigne Paris.
· Christian Dior or Dior is one of
the biggest high-end luxury brands
known around the world.
· In
2
0
1
9
, Dior’s brand
was valued at $
6
.
0
4
5
billion and saw a growth
rate of
1
6
%.

3. History of the company
and market it serves
•The house of Dior issued perfumes to match its
new fashions.
•In
1
9
4
7
the company launched Parfums Dior.
• They created the
fi
rst fragrance, Miss Dior in
honor of Christian’s sister.
•The Dior brand name is known worldwide for its
haute couture collections, luxurious ready-to-
wear fashions, cosmetics, and fragrances.

4. Top Competitors
1
. Chanel
2
. Gucci
3
. Burberry
Being only
3
of Dior’s
1
1
competitors, these luxury brands run a close
fi
rst, second,
and third by offering similar quality for perfume, cosmetics, and clothing.

5. Streams of Revenue
Dior’s sources of Income
•Wines and Spirits
•Fashion and leather goods
•Perfumes and Cosmetics
•Watches and Jewelry
•Selective Retailing
•Other. Activities and eliminations

6. Competition Structure
• Dior sells not only perfume
but also a broad range of
other products as well.
• There are
1
1
other
competitors in the market
that are
fi
ghting for the
number one spot.
Competitive Market

7. Consumer’s Income
• Consumers that lead a luxurious lifestyle and have
the means to purchase high-end goods will continue
to buy from Dior.
• Consumers that cannot afford higher prices will look
for alternative perfumes such as imitation fragrances
that smell similar yet cheaper.
• Dior is synonymous with a luxury lifestyle; however,
raising the price of items in the fragrance line will
decrease revenue. Lowering the price of Dior would
expand their target market and increase sales.

8. Price of related goods
Some substitutes and complements to Christian Dior goods and services
are brands like Chanel , Armani, Gucci, Burberry just to name a few.
Price ranges compared to Christian Dior : $29.50-$165.00
Chanel: $77.00-$225.00
Armani:$30.00- $168.00
Gucci: $34.00-$155.00
Burberry: $29.00- $136.00
A change in these competitors prices
would cause Christian Dior to produce
more products because besides
Burberry, Christian Dior is one of the
most affordable brands. I believe the
sales for the other competitors would
decrease if the prices would increase.

9. Tastes within the market
•Knowing the trending notes and aromas for the
upcoming season.
•New Fragrances from competitors
•Consumer feedback and request.
• Allows the company to stay ahead of the trends which produce
better sales
• Consumer’s demand increases when they feel a company
created a product based on their suggestions or needs.

10. Expectations within the market
With the upgrade of technology (
3
D fabric printers and sewing robots) the manufacturing companies can
cut their manufacturing companies can cut their costs in half and offer more customized and tailored options
to consumers.
The need to outsource production will be replaced with domestic automated clothing factories which will cut
down shipping costs and increase fashion cycles.
As augmented reality headsets become popularized by the late
2
0
2
0
s, consumers will begin superimposing
digital clothing and accessories on top of their physical clothing and accessories to give their overall look a
more interactive and potentially supernatural
fl
are.
The current physical retail meltdown will continue into the
2
0
2
0
s, resulting in less physical outlets to sell
clothing.This trend will eventually encourage apparel companies to invest more into developing their
brands, developing their online ecommerce channels, and opening their own brand-focused physical stores.
Global Internet penetration will grow from
5
0
percent in
2
0
1
5
to over
8
0
percent by the late-
2
0
2
0
s, allowing
regions across Africa, South America, the Middle East and parts of Asia to experience their
fi
rst Internet
revolution.These regions will represent the biggest growth opportunities for online apparel companies
looking to expand into new markets.

11. Number of buyers
Things that may increase or decrease
the number of potential customers:
•A discriminating act from the
company
•A dramatic price increase of
products.
•A lack of innovation with new
fragrances
•An in
fl
ux of male consumers
Sales value of the perfumes and cosmetics division of Christian Dior
worldwide between 2013 and 2019

12. Elasticity
• Raising prices on the already expensive products might halt the
sales of the products.
• Christian Dior is an affordable brand, yet raising the prices could
affect those who cannot afford the increase.
• Dior is in high demand with celebrities which, could help increase
sales with individuals that purchase items because of celebrity
endorsements.
• Lowering the prices even a little bit will help increase sales.

13. Input prices
•The following few years should bring about good growth
prospects for Christian Dior.
•Earnings are forecasted to rise signi
fi
cantly from today’s level of
$
1
4
.
9
0
to $
2
0
.
2
5
over the next three years at a growth rate of
1
2
%
annually.
•The increase in demand and expansions within the company may
increase the price of the products making it harder to purchase.

14. Technology
In recent years a new technology has been
discovered called Aura, this technology is
used by LVMH, a luxury goods company
associate directly with Dior that is used to
track goods and the overall supply chain.
Aura works in partnership with a New York
based blockchain from ConsenSys.

15. Expectations
They are expected to increase with the
new products that sales will continue
to increase and they bring in more
money.With these expectations, it will
keep the business a
fl
oat and a constant
money
fl
ow. It will help to provide
additional perfumes and, in my
opinion, more jobs.

16. Entry/Exit
•It would be hard for a new company to enter into the luxury
fragrance market.
•The new company would require a signi
fi
cant amount of capital for
advertising, branding, and celebrity endorsements to create enough
buzz to compete with Christian Dior.
•They may go through a
2
-
3
year trial and error phase to prove that
their fragrances are of the same quality if not better than Dior.
•If others like, Gucci, Armani, or Burberry was to leave the market,
Dior will increase in woman sales and signi
fi
cantly increase sales in
their men’s cologne.

17. Why Christian Dior?
&
What the future holds for Dior?
Dior is a highly respected company.They are not only known for their
couture fashions but also their beauty products. It is also a company
that has established itself as one of the front runners in the luxury
brand industry. Christine Dior has a full understanding of the business
structure. Dior has used this knowledge to establish a strong clientele
throughout the years that have helped increase their sales year after
year. It is the reason why Dior will continue to drive in years to come.

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