Bottega Veneta Case Study
PPR is French based corporation which has business area over Luxury fashion business, Sport business, book & electric product retail, online fashion retail, and movies. With regard to fashion business, it has 8 brands including GUCCI.
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A couple brands form PPR’s portfolio
1-2. PPR financial statements
The total group revenue increased from €11.0 billion to €12.2 billion or 11%. The luxury fashion business sector is responsible for 40% of the total revenues of the group, and grew by 18%. Bottega represents 25% of the luxury division of the PPR group.
1-3. History of the Bottega Veneta brand
Michele Taddei and Renza Zentigiano in the Italian region of Venetia well known for its high quality leather created “Bottega Veneta” meaning Venetian workshop, in 1966. After supplying leather to famous brands they created their own in 1970. They differentiated from many luxury houses with their no logo philosophy and with the slogan “When your own initials are enough”. The brand also emphasizes on extraordinary craftsmanship and created an innovative technique “the intrecciato”. After encountering great success the brand almost went bankrupt in the 1990’s as it tried to follow trends and lost sight of its core values. In 2001 the French group PPR takes over and hires Tomas Maier as creative director. After being brought back to its soul Bottega Veneta is now PPR’s most profitable brand.
Bottega Veneta has always been synonymous with outstanding craftsmanship, highest quality materials, understated and elegant yet modern designs. Bottega always tries to reinvent its classics and its high end luxury positioning with products appealing to customers who embody modernity and timeless elegance.
1-5. Bottega Veneta financial statements
Bottega’s 2011 turnover was €683 million which is almost 90% higher than that of 2007. In comparison with the data of 2010, growth rate was 25%. In its total sales volume, 84% came from leather good excluding shoes, which means that Bottega’s core business is still leather bag. However its subordinate categories, such as apparel, keep on growing.
Bottega Veneta’s target customers are coherent to its brand identity and values. They are wealthy, intellectual and higher class customers. In consideration of customers’ character, they are professionals such as lawyers, doctors, high class businessmen, and professional women. Customers like beauty and luxury but do not want to express their status artificially, they strive for discrete and understated luxury.
Bottega Veneta’s core products are leather goods. However they also have apparel, home furnishing, jewellery, perfume, and even porcelain. All the products lines reflect the brand core value, when your own initials are enough. Indeed, they all are high quality and have discrete design. Recently Bottega has made possible for its customers to customise their leather goods.
Bottega’s partnership is deeply related to the kind of products, given that some of them can’t be produced in Bottega’s own production lines. To maintain extension strategy, Bottega used both consignment production (CP) and licenses. Concerning leather goods, apparel, and footwear, Bottega produces them itself while all the other products are produced with the help of licenses with the best companies in their categories. Perfume with Coty.Inc , jewelry with Victor mayer, watches with Girad Perregaux, eyewear with Safilo, furnitures with Poltrona Frau , porcelain with KPM. For its furnitures line, Bottega has an apartment showroom in Milan, visitable by appointment only. Bottega also collaborates with hotels unlike other luxury brands they do not independently own them, but decorated a few suites in selected hotels....