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ESCADA CAse

ESCADA: Made of Steel Global Strategy and the Business of Luxury October 2, 2014

History Two phases:

• Golden age (1976-‐1992): – Historical luxury brand since 1976 founded by Wolfgang and Margaretha Ley (family business) – Core competency : elegant evening gowns • color, quality, correct ﬁt and elegance

– 2 main lines : Escada CollecRon & Escada Sport – 1990’s era of acquisiRons (Saint John’s Knit, Kemper, etc.)

• Decline (1992 – present (Feb 2011: case date):

–
–
–
–

Death of Margaretha (designer) ExecuRve turn over and instability Lack of modernity

Insolvency in 2009 and acquisiRon by MiZal Steel Magnate

Conclusion: Escada beneﬁts from a strong brand image but needs to gain modernity and solve its ﬁnancial problems in order to stay in the game

Bruno Sälzer as CEO

• Failure of the preceding CEOs: – Franck Reinbolt (2006):

• High glamour image for the brand but process seen as too slow • New Store Concept

– Jean-‐Marc Loubier (2007):

• Former ExecuRve Vice-‐President of LV and President and CEO of Celine • Launched the ESCADA Excellence Program

– New younger, more casual image for the brand

• Sälzer‘s (former Hugo Boss

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