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Christian dior - Managing Operations and Information Technology

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Christian dior - Managing Operations and Information Technology

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An Overview of Christian dior and its Operation, SWOT and IT Infrastructure. This slide also give suggestion on where they can Improve themselves.

An Overview of Christian dior and its Operation, SWOT and IT Infrastructure. This slide also give suggestion on where they can Improve themselves.

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Christian dior - Managing Operations and Information Technology

  1. 1. Dior. FIXZ Solutions Amrita Kare Sanyam Pandey Sakib Hussain Zachary Bergoine
  2. 2. What We Do….
  3. 3. ➢ Founded in 1946 by the designer Christian Dior and became a corporation in 1947. ➢ leading manufacturer, distributor and retailer in fashion goods, accessories, fragrances and cosmetics ➢ product lines include fashion and accessories, fragrance and beauty products, women's and men's ➢ product wear, footwear, cosmetics, skin care, jewelry, watches, wines, perfumes and leather products. ➢ offers home delivery, gift cards and discount offers. ➢ via owned stores, internet (www.dior.com) and licensed dealers in France, USA, Japan and Asia pacific. Introduction
  4. 4. Vision ➢ "To become the world's most popular brand in all products that enhance their lifestyle." Mission ➢ “True Luxury requires genuine materials and the craftsman's sincerity. It is only meaningful when it respects tradition“. Christian Dior. ➢ to create the environment that is fun, welcoming and that encourages customers to tap into their creativity and explore their personal styles ➢ to provide clients with the highest quality promotional merchandise available worldwide Vision & Mission
  5. 5. ➢ Headquartered in Paris ➢ 108,546 employees ➢ Sales of $38.41 billion ➢ Profits of $1.8 billion ➢ Assets of $82.9 billion ➢ Market value of $34.4 billion ➢ Ranked as 88 innovative companies in 2012 Company Demographics
  6. 6. Weakness ➢ Fluctuations in the exchange rates can lead to loss of revenues ➢ Limited market share because of being a luxury brand ➢ Target market too small ➢ Unaffordable to many ➢ Stores available only in big cities across the world Strengths ➢ Strong legacy of over half a century ➢ Complete luxury lifestyle brand ➢ Presence over various luxury avenues across the world ➢ 42% stake in LMVH ➢ More than 235 wholly owned boutiques worldwide ➢ Best designers in the industry like John Galliano ➢ Acquisition of Louis Vuitton one of the largest luxury firms in the world. ➢ Concept stores each store having a unique theme ➢ Strong brand name and reputation worldwide ➢ Excellent branding and advertising through TVCs and print ads Opportunities ➢ can focus on green initiatives ➢ Explore and expand in emerging markets like Africa ➢ Launch new culturally versatile designs and products for consumers across the world Threats ➢ Competitors offering same products ➢ Changes in policies of world trade organisation ➢ Rising cost of raw material SWOT Analysis
  7. 7. Competitors
  8. 8. has been a haute name in fashion and cosmetics for decades. The company also creates watches and jewelry and has a single license -- for eyewear with Luxottica. Founder Gabrielle "Coco" Chanel opened her first boutique in 1913, touting designs known for simplicity. Chanel also own lingerie and swimwear brand Eres. It has more than 100 boutiques worldwide. In 2013 company reported an annual sales of $4.04 billion with net income of $702.71 million. founded in 1978 has built a business designing, making, and licensing apparel, accessories, and other items. Its wares are sold in more than 200 company-owned boutiques and some 1,000 other shops in 60 countries worldwide. The firm also operates luxury hotels and residences with Sunland Group. Company reported a net income of $1.91 million and an annual sales of $398.87 million. is world's third-largest luxury group (behind LVMH and Richemont). The company's stable of global luxury brands includes a 99% stake in Italian luxury goods company Gucci Group, and luxury brands Alexander McQueen, Stella McCartney, and Yves Saint Laurent, among many others. The group's other activities include the German athletic shoemaker PUMA. About 70% of Kering's sales are generated beyond Western Europe. The firm is refocusing its operations on the luxury goods and sport and lifestyle retail sectors. It reported an annual sales of $13.42 billion in 2013 and has market capital value of $26.69 billion. Top Competitors
  9. 9. Consumer ➢ Elite, Upper class people with high relatively income ➢ Majorly for women ➢ 25 and above in age ➢ Across the globe Image ➢ Elegant & Romantic, Classic & Trendy ➢ Emphasizes luxury ➢ Feminine ➢ Red Carpet Positioning ➢ Luxury brand for upper class and elite consumers with high purchase power. Dior - Brand
  10. 10. ● INNOVATION -At creative level -Launch new products every season ● INTERNATIONALISATION -83% sales from abroad -Expand into developing markets like China & India -Collaborate more with departmental stores like Macy’s, Barneys , Sephora etc ● AGGRESSIVE COMMUNICATION -Strong presence in the press, poster campaign, etc. -Invests 1.5 million euros in fashion shows to get ample media coverage -Outline the collections in the most spectacular way possible - Focus more on accessories than clothes BUSINESS STRATEGY
  11. 11. MANUFACTURING PROCESS ● DESIGN & DEVELOPMENT -Procurement of raw materials from all over the world by designers -Style created & developed -Prototype samples made before a collection and sent to headquarters ● SUPPLY AND MANUFACTURING -Fabric purchased from textile suppliers & Supplied -Garments manufactured for retailers -Transported to Central Warehouse ● LOGISTICS & CLIENT DELIVERIES -Central warehouse to stores, distribution centers across continents
  12. 12. ➢ Outsourced to QRS Corporation ➢ Implemented Tradeweave Retail Network ➢ Tradeweave Sourcing is a powerful tool for Dior to enhance its supply chain management, optimizing the entire manufacture-to-delivery process in collaboration with suppliers. It works within Dior’s existing systems to create a solid foundation for an even more successful operation ➢ Through this network solution, QRS offers retailers, vendors and their trading partners global sourcing and logistics; merchandise planning; retail intelligence, digital photography, marketplace and a host of enabling products and services for effective supply chain management. ➢ Helps Dior to integrate and enhance management of sourcing and tracking of its imported goods ➢ Monitoring of various stages of procurement process SUPPLY OF PRODUCTS
  13. 13. ➢ 160 boutiques worldwide ➢ Clothing is exclusively sold in Dior stores ➢ Other retailers only carry licensed Dior products like eyewear,perfumes,bags etc ➢ Network expanded to 165 Duty Free Shopping Outlets ➢ Reducing no. of licenses to regain control over its products and achieve efficient management DISTRIBUTION
  14. 14. Business Model Key Products: ● Ready-to-wear, ● Leather goods, ● Fashion accessories, ● Footwear, ● Jewelry, fragrance, ● Make-up and skincare products Area Coverage: (210 locations) 1. Asia -109 2. North America - 48 3. Europe - 45 Value Propositions: Absolute elegance and creative audacity. To offer happiness and elegant Lifestyle. Key Resources : - European Designers - Manufacture location: China, France, Italy Revenue Stream: -Sales of Products - Exhibitions (company reported revenue of EUR 417 million against EUR 368 million a year ago) Customer Segments Age: 25-45~50 Income & Social Status: High Shopping Budget: Once in a Month Business Model
  15. 15. ➢ Top of pyramid - griffe - the creators signature engraved on a unique work ➢ The second is luxury brands produced in a small series within a workshop ➢ Third level is that of streamlined mass production ○ here we find Dior and Yves Saint Laurent ○ at this level brands fame generates an aura of intangible added values for expensive and prime quality products ➢ The creativity of the signature label at the tip of the pyramid, is at the heart of the business model. ➢ within a few years of arrival John Galliano at Dior, sales had increased four fold ➢ the disadvantage of this model is that the more accessible the secondary lines are entrusted to other designers , and further you move away from the pyramid the less creativity there is
  16. 16. Products Sales Distribution:
  17. 17. Global Sales Distribution
  18. 18. Current Information Technology Electronic Data Interchange -Allows for communication from outside and internal sources such as retail stores and factories to improve supply chain
  19. 19. Current Information Technology
  20. 20. Databases and Enterprise System Amazon Cloud Client Custom Made Enterprise System
  21. 21. Possible Future Implementations: Wearable Technology
  22. 22. Possible Future Implementations: Digital Fashion Week
  23. 23. Possible Future Implementations: QUESTION : Can the Luxury fashion brand store atmosphere be transferred to the Internet? Online Retail sale $316 billion from 2000 to 2010. ECommerce Setup
  24. 24. Possible Future Implementations: 3D Printing
  25. 25. Conclusion : John Fairchild (editor in chief of Women's Wear Daily) “Every generation laughs at the old fashions, but follows religiously the new.”
  26. 26. ● http://www.eurbanista.com/dior-the-french-business-model-for-fashion-luxury/ ● http://www.businesswire.com ● http://www.forbes.com ● http://www.ukessays.com/essays/marketing/marketing-analysis-of-christian-dior-marketing-essay.php ● http://subscriber.hoovers.com/H/company360/overview.html?companyId=92686000000000 ● http://www.dior-finance.com/en-US/ ● http://www.fashiongps.com/5-technology-trends-transforming-the-fashion-industry/ ● http://fashionista.com/2014/03/why-some-luxury-brands-still-dont-sell-online ● http://www.styleitrockit.com/blog/2014/5/21/the-impact-of-technology-on-fashion ● Vi Nguyen (Online). Analysis of the Luxury Goods Apparel And Footwear Industries. http://www.uwlax.edu/urc/jur-online/pdf/2004/nguyen.pdf ● http://www.slideshare.net/Tiffany2690/dior-communication-strategy ● http://www.brandchannel.com/images/papers/269_Lux_Goods_Online.pdf ● http://fashion.infomat.com/christian-dior-designer.html ● http://www.slideshare.net/SophiaTripp/dior-final-copy?next_slideshow=1 References
  27. 27. Question s?

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