J’ADORE DIOR: «the Absolute Feminine»
GADAULT Audrey
Master 1 ICM
- Dior & The Luxury Market: Description
The luxury market entered a new cycle of growth which does not stop winning current, showing the excellent performance of the big luxury groups in the first half of the year 2006. Already in 2005 it showed a 7 % growth, after a robust increase of 5 % in 2004, according to a study of the cabinet Bath and Co.
This year, it should easily represent a 143 billion euros amount. The study explains this good health by the emergence of new markets, the confirmation of the driving role of Japan, qualified of «El Dorado of the luxury ", and the appearance of new needs. Towards the consumer countries, besides Russia. It is naturally Chinawho emphasizes with rates of annual growth from 50 to 70 % and turnover which should cross the billion dollar cape in 2005. By products, it is especially accessories, shoes and tanning that pull the growth (8 % in 2004), in front of the jeweller's shop (7 % °) whereas clothing and perfume shops progressed 4 %. To face these evolutions, LVMH, group to which belongs Dior has to choose strategies which will be determining for average and long term and will put the bases of a future solid and strong growth.
«On Thursday, October 19th, 18 hours (6 pm), on the Red square, in Moscow. The flashes crackle. The international press and 600 privileged persons anticipate attending the inauguration with great pomp of the new store Dior of the Moscow capital. The host, Bernard Arnault, first shareholder of the French luxury group LVMH, appears, accompanied with the égérie of the mark (brand), Sharon Stone, and with the president of Dior, Sidney Toledano. Speech, applauses, congratulations, then gala dinner “in Russian way ".
In the world, the Asian market is the most promising; the Japanese consumers buy every year 40 % of the luxury items sold in the world. An inquiry realized in 2002 showed that 94 % of the 20-year-old young ladies living in Tokyo possessed a product of the Louis Vuitton, 92 % a product of Gucci, 58 % a product Prada, 52 % a product Chanel and 44 % a product Christian Dior.
To answer to this increasing demand all over the world, Dior has to find a new strategy. This strategy of innovation is above all situated at a creative level. The brand tries to propose new products in a steady way: launching of new perfumes or bags. The strategy also consists in betting on the phenomena of fashion orchestrated by the very brands where from the appearance of "short-lived" said products which play on the craze of the public for the rarity. This policy guarantees Dior's current commercial success.
With LVMH thus, the turnover of the Group Christian Dior in 2004 amounted to more than 13 billion euro (CA of Christian Dior Couture: 595 millionsd' euro). The Group Christian Dior employed then more than 58 000 employees.
In France, the Christian Dior Couture subsidiary possesses today 10 shops among which two Dior Joaillerie shops and Baby Dior. The group LVMH, him, account 1 700 shops in the world.
The strategic decisions of Dior and LVMH present big resemblances and a common logic. Indeed, Bernard Arnault being in the head of the group Christian Dior, the politics applied to both entities are very connected.
If the group LVMH practised until 2001 a policy of external growth characterized by the repurchase of companies specialized in various domains of the luxury, it refocuses on the internal growth of its portfolio of brands (25 companies are under the control of LVMH in 1999 and 2000). In 2004, LVMH realizes 12,5 billion sales thanks to its portfolio including about fifty brands resulting from diverse sectors: wines and spirit (Dom Pérignon, Ruinart, Castle of Yquem), fashion and tanning (Louis Vuitton, Kenzo, Givenchy), perfumes and cosmetics (Guerlain, Christian Dior, Acqua di Parma), watches and jeweller's shop (Tag Heuer, Fred, Chaumet), selective distribution (The Bon marché, Sephora…) The Group also possess Classic Radio, web sites...
The development in intern is translated by the launch of new activities within the brands, accompanied with a strong degree of innovation. We can quote the example of Louis Vuitton which undertook on the crenel of the watchmaking's shop or Dior and his line of high jeweller's shop.
The synergy of group allows to realize economies of scale, notably concerning the supply in raw material, or still to benefit from the know-how of the other brands, and so to increase the profitability. Today this conglomerate multistands out concentrates on the brands by investing on the heart of profession.
The attentiveness of the group also concerns the differentiation of the brands. He indeed watches that each of them keeps certain autonomy to protect their identity. Actually, the portfolio grouping gathering numerous brands, it can end in a cannibalization, notably with a diversification of the various brands in the same domains.
- «J’adore Dior» the perfume: The product & the advertissement:
“To return the elegant woman, such has always been the desire of Christian Dior. And so he draws her dresses, creates her perfumes, invents her looks of make-up … Today, the energy of the House Dior is totally dedicated to the innovation with colours, textures and unique perfumes, thought to arouse the emotion! The spirit Dior is in search of the Beauty to answer the requirements of the most sophisticated and sexy women”
Four years after Dolce Vita, perfumes Christian Dior return on the front of the stage with “j’adore”. «When a brand as ours is present at the same moment on the perfume, the make-up, the tanning, the spectacle trade, the accessories, a part its public can wonder what is its universal value. Internally, we baptized this value "Diorness" or "Dior Attitude".
“The launch of “J’adore”, our new perfume, is going to allow us to say it and to repeat it. » For Sabina Belli, international marketing director produced, “J’adore” wants the quintessence of this famous «Diorness ", value which could be to summarize in three words: femininity, emotion and sophistication.
And who, for the first time, expresses himself to the first person. «The first advantage of this name, it is naturally that he can be said in all the languages; then in “j’adore”, there is Dior. They played on this effect notably at the level of the lettering. Finally, it offers to the woman a spontaneous membership, she does not become a woman “J’adore”, it is the perfume.
“To validate this name, it will have been necessary to his designers near one year. The time necessary for the check of its world availability in the concerned categories. When we began to think about the flask, we left on more baroque volumes to return in the end to the simplicity of the amphora, one of the emblems of the brand Dior “. Pursues Sabrina Belli.Created by the young designer Hervé Van der Straeten, the flask the long neck of which is enclosed by precious rushes, in the style of the women African giraffes, has the boldness to hide its name under its crystal cabochon. «The absence of name on the flask maintains this intimacy that we wanted between the woman and her perfume. She is the only one to know", declares Sabrina Belli
The perfume gave all the chances to seduce the North American market which is a true challengefor Christian Dior : " We worked the juice with a " nez " American, Ann Gottlieb. And collectively in the European and Asian launch, “J’adore” will be launched in Canada. It is going to allow us to experiment the market of the United States before the official launch, in the year 2000.
The ad: Dior cosmetics : beauty products, makeup tips, fragrances and skincare
Interview of Sabina Belli, marketing manager of perfumes Dior, returns on the campaign of launch of “j’adore”, the last-born of perfumes Dior
What were the objectives of the last campaign?
We had three. It was necessary to translate at the same moment the concept of our new perfume, the return of the femininity and the power of the spontaneous feelings, to embody the revival of the brand Dior and also to express its timelessness.
Is it about an international publicity?.
It is international to assure the best global coherence of the image of “J’adore”. It is used in all the countries worldwide, with the exception of the Middle East. For these countries, by respect for the local cultural constraints, we developed a specific person with a strong visual sense who lets appear only the face of the model.
What results did you obtain at the level of sales in France?
According to Secodip, we were number three on the French market last December in terms of turnover, Behind Chanel n°5 and Angel de Thierry Mugler.
What do you envisage in the future in terms of communication?
For the moment, we are going to continue to run this campaign. We think of renewing it by one and a half year, even by two years.
Had the debates caused by the parade of John Galliano repercussions for the house Dior?
There was absolutely no negative consequence for the sales of our perfumes after the parade of John Galliano.
- Consumers of “J’adore”
Rarity, originality, quality, refinement, authenticity, inaccessibility, etc., such are the qualifiers which return mostly when we evoke the universe of the luxury. Products up-market, subtle alliances between crafts and high technology, quality tradition and innovation, are intended first and foremost for a demanding and fortunate clientele. A current of democratization however seems to blow on the world of the luxury, Modifying in depth the behaviour of the «perfect manufacturers ” but also the consumers.
The Frenchwomen are the women the most perfumed to the world.
Indeed, three quarter of them use a perfume at least once a week. Every day in our country, it is sold some 170 000 flasks... Every year, 150 - 200 new products invade shelf spaces.
For Dior, the woman is sophisticated, sensual, natural, elegant ,the woman discovers at Dior's a perfume to her image … Sometimes audacious, sometimes decorated with flowers, Dior perfumes all express a state of mind, a way of life, a bewitchment which leaves with every passage a touch of seduction.
Women consumers of Dior want to identify themselves to this picture of luxury and feminity of Dior.