Sisley's Market Niche

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ESSEC Business School
Strategy and management

I. Executive summary
We are here addressing the Sisley, a French luxury and cosmetic company. Sisley is an excellent player in its market niche (very high-end cosmetics for mature skins): its performances are excellent, especially in terms of return and guests’ fidelity. However, Sisley faces difficulties to develop itself in emerging countries due to its size. It also faces intense competition against the “big players” in this industry. This leads us to ask the question: How can Sisley widen the market niche it got used to be in to conquer more market shares and to protect itself against the "giants" of luxury cosmetics industry? After a short recall of how the French luxury industry works, we will focus on Sisley, what it does, how its distribution network is organized, and how to address its development in France and abroad (with a special focus on China) in order to solve this issue. II. The luxury industry

In the world, the luxury industry has an estimated turnover of approximately €170 billion. Growth is mainly in exports, particularly to emerging countries (Brazil, Russia, India, Mexico and China) with growth rates between 5% and 9% in 2011. The French market of luxury companies is one of the most important ones in the world. It generates a turnover of €25 billion and it is the home of most of the world leaders (L’Oréal, LVMH, Puig, Chanel, …). In total, 800 French companies are specialized in and luxury goods and employ more than 70,000 jobs in France. III. Sisley Company

Sisley is a French company that creates and distributes very high-end skincare and make-up products, along with very particular fragrances. It was launched in 1976 by Hubert and Isabelle d'Ornano. Since its creation, the brand has been distributed in over 90 countries that represent 85% of its turnover from exports. A familial French company

Sisley is a 100%-familial company. The founder, Hubert d’Ornano, is a visionary creator and...
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