The current strategy has been developed on three main axes1: Strengthening of its position in the emerging market segment: As growth relays when mature markets slowdown (E.U.&U.S.) or declines (as in the case of Japan), with a retail network extension, there is a high growth potential of new customers with increasing purchasing power and eagerness to adopt the foreign luxury goods (e.g. China, Russia, and India). A ’premium” positioning’: By adopting a differentiation strategy, selling high quality innovative products at a higher price, and then staying above the emerging competition of the middle markets, rivals trade up in such a manner that they begin comforting its profitability. Therefore, they simultaneously engage a production cost cutting policy, while steadily investing in marketing, promotion and communication strategies which is essential to enhance the brand image. This serves as the main factor of the purchasing decision of such luxury goods. Innovation and communication: Innovation and communication is essential to support the premium strategy and to increase the customer panel by taking advantage of globalisation and the democratisation of the luxury market.
- High sales revenue worldwide and a well-balanced and a developed situation versus emerging markets. (€ 5.6 billions) - High growth rates (+7.7%)
- Financial resources and the capacity to support growth and investments (€ 246 millions in 2007). Physical
- 405 owned boutiques worldwide, and the increasing presence in the emerging markets (China: +9 openings in 2007, and 3 planned). - Progressive and discrete relocation of production sites to low labour cost locations (such as Portugal and India) Intangible
- High artisanal skills and the technically savvy know how
- Numerous trademarks and models being patented
- Efficient use of IT in retail and marketing sectors, and for worldwide strategic management Reputation
- Ranked as number one in the luxury market and has acquired the 17th position in Global brand market2 Emulates as image of luxury occidental and...