INTRO. •
Saint Laurent Paris is a well-known luxury brand owned by Kering Group.
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Yves Saint Laurent was founded by Yves Saint Laurent and his partner Pierre Berge, assisted by several former Dior employees. Yves Saint Laurent worked at Dior before launching his own haute couture maison.
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Officially opened the House of Saint Laurent on the rue Spontini in December 1961, presenting the first true Yves Saint Laurent collection.
NEW OWNERS OF THE BRAND
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Due to huge debts, the company was sold to Sanofi 1993.
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In 1999, Gucci (owned by PPR then) took over the company appointing Tom Ford as the designer of the ready-to-wear line.
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The last haute couture collection by Yves Saint Laurent was in 2002, which closed down after his retirement.
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In 2012, YSL was rebranded as ‘Saint Laurent Paris’ by the new Creative Directory, Hedi Slimane who gave an edgy design identity that appeals to younger consumer.
Money Well Spent? Why Fashion Companies Spend Big on Lobbying Governments Business of Fashion
Global companies are lobbying in the US and EU more and more often to ensure that policies put in place or revised are in their company’s favor. Implications Saint Laurent is affected by this through bottom line profits, international tariffs, transport and production, and authenticity of the brand.
PESTEL MACRO ANALASIS
Yves Saint Laurent ad featuring 'unhealthily' thin model banned in UK CNN
Saint Laurent was forced to remove an ad in British Elle by Advertising Standards Authority after the advert featured an “unhealthily thin model� Implications This brought a public spotlight onto Saint Laurent for seemingly promoting an eating disorder issue that is widespread among young women.
PESTEL MACRO ANALASIS
Only America can save the oil market business insider
Oil prices are down about 70% from their June 2014 peak in January 2016. Implication Lower oil prices is good news for both manufacturers and brands since trading tariffs and shipping costs will go down significantly.This could also affect border tariffs and could result in higher/lower taxes
PESTEL MACRO ANALASIS
Luxury to seduce Istanbul, Mumbai, Mexico City CNBC
Global economy is shifting towards emerging markets. As China's love for extravagant goods appears to be dwindling, luxury brands may want to look into other emerging cities for growth. Implication The slowdown in China is causing the demand for luxury goods to rise in Istanbul, Mumbai and Mexico City.
PESTEL MACRO ANALASIS
Saint Laurent opened their largest global store in Tokyo Cpp-luxury
Saint Laurent opened their largest global store in Tokyo spanning 10,000 square feet in December, 2015. Implication The slowdown in growth in China means that it will not overtake Japan to become the world’s second largest luxury goods market in the world any time soon, so the store should be profitable in the long run.
PESTEL MACRO ANALASIS
Saint Laurent — Paris Fashion Week AW15 show report (ft.com)
Since arriving at Saint Laurent, Hedi Slimane has nearly doubled revenue at the Kering-owned fashion house: the most recent figures from the Gucci conglomerate identified a 27% increase in Saint Laurent sales Implication Rumors of Hedi Slimane quitting Saint Laurent have been doing rounds, but the brand should focus on looking at a long term relationship with the designer instead of taking risks with a new designer.
PESTEL MACRO ANALASIS
Personalized Burberry scarf for James Bay
Consumers pay 40 to 150pc more for custom items: Fluid director of strategy Luxury Daily
Customization has an impact on consumers’ buying decisions, shoppers spend more money to have a product or experience that was personalized. Implication Personalization is a good opportunity for the Saint Laurent Laurent to attract their customer segment ; Millennials
PESTEL MACRO ANALASIS
Image from Inflexion Interactive
New marketing strategies are needed to target Generation Z Luxury Daily
Inflexion Interactive reports that 71 percent of teens use more than one social network, making it difficult for brands to determine how best to reach this subset of consumers. Implication Saint Laurent need to fully understand their customers buying habits and influencers. Making the online experience as unique and innovative as possible will help the brand attract this generation.
PESTEL MACRO ANALASIS
Fashion brands still struggling with sustainability practices Luxury Daily
While luxury fashion brands like Ralph Lauren, Burberry and Georgio Armani, Hugo Bose have likely come under a lot of scrutiny for claiming to be ‘green’ but not actually producing evidence behind being one, whereas Kering is helping the world visualize its environmental impact with an interactive environmental profit and loss statement. Implications Saint Laurent Paris as a subsidiary of Kering Group has to be transparent and keep up to the norms of the company. It’s a good practice to attract the millennial the new target market of Saint Laurent as the younger generation is realizing their responsibility to save the environment.
PESTEL MACRO ANALASIS
The Luxury Sector Now Focusing on a Sustainable Future The New York Times
Luxury groups and brands have all established programs aimed at making the industry more environmentally aware and respectful. By 2017, garment tags can inform shoppers about their purchases’ social and environmental effects. Implications The parent company of Saint Laurent Paris, Kering Group has good ethical foundation. However, Saint Laurent should look at adopting promotion and social marketing and community business practices that aim at spreading awareness on the same.
PESTEL MACRO ANALASIS
Yves Saint Laurent Settles Lawsuit Over "Parody" Tee The Fashion Law
Saint Laurent has finally settled a lawsuit with online parody boutique What About Yves for a shirt that was produced infringing on the Saint Laurent trademarks.
Implications Saint Laurent protected its brand name integrity and has shown to copycat companies of the world that this is an
PESTEL MACRO ANALASIS
Italy Divided Over Effort to Legalize Civil Unions for Gays The New York Times
Italy is the last country in the EU that has not legalized civil unions and on 1/28/16 the Italian Senate began the process of voting on this issue.
Implications This could have an impact on Saint Laurent because marital status on legal documents could change overall pay to workers, personal time
PESTEL MACRO ANALASIS
MARKET SIZE
THE BREAKDOWN OF 2014 REVENUE AS PER THE REGION - Western Europe 41% - North America 22% -Asia Pacific 22% -Japan 7% -Other countries 8%
INDUSTRY SIZE
Product sector profiles:
Number of Companies
Average luxury goods size (US$ml)
Share of top 100 companies
Share of top 100 luxury goods sale
Apparel & footwear
36
$1.095
36.0%
18.4%
Bags & accessories
12
$1,311
12.0%
7.3%
Cosmetics & fragrances
11
$3,126
11.0%
16.1%
Jewelry & watches
31
$1,818
31.0%
26.3%
Multiple LG categories
10
$6,832
10.0%
31.9%
TOP 100
100
$2,142
100.0%
100.0%
Source: Deloitte analysis of published company data and industry estimates
TRENDS IN THE INDUSTRY
TRENDS IN THE INDUSTRY
Key trends: Consumer Spending trend • The US remains the largest global market with a value of €64.9 billion, With New York City alone, a bigger market for personal luxury goods than the second-largest country, Japan. • purchases by Chinese consumers now represent about a third of the global market.
New York City alone remains bigger than the second largest global Personal Luxury goods top cities 2014|Billion € market
Source Bain & Company
TRENDS IN THE INDUSTRY Changes in distribution • From 2007 through 2014, the share of company-owned retail sales has gained 10 percentage points and now totals nearly one-third of the luxury-goods market. • Airports now represent 5% of total luxury sales and are particularly critical in Asia and Europe, while online luxury market makes up 5% of all sales. Individual category performance Since 2012, accessories have become the largest category within luxury goods (at 29% of total sales in 2014), followed by apparel (25%), hard luxury (22%) and beauty (20%). Global personal–luxury–goods market, by category, 2013–2014E (€billions Source: Bain & Company
TRENDS IN THE INDUSTRY The importance of technology • Technology will continue to influence the entire value chain within the sector. • Luxury brands that choose to push boundaries when it comes to creating visually enticing and experiential digital platforms via short films, apps, microsites, and events are likeliest to succeed with consumers.
Mergers and takeovers • LVMH, Kering, Richemont, and Chanel, among others, have used vertical as well as horizontal acquisitions to become the largest luxury groups in the world. • As the luxury goods players look for sustainable growth, acquisitions—both horizontal and vertical—will continue to play a major role in the sector.
COMPETITOR ANALASIS Objective: To be a distinctive global luxury brand with four focuses: brand first, famous for product, customer-centric and productive and responsible. •
Strategies: runway shows, flagship markets, marketing innovation, and external recognition authentic to heritage. •
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Strengths: distinctive British identity, new initiatives, unification.
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Weaknesses: Continued brand growth after stall.
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Customer profile: fresh, youthful, spirited and proper yet playful young professional.
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Place: HQ London, England. Signature boutique, online, wholesale.
COMPETITOR ANALASIS •
Objective: eclectic, modern approach to luxury while retaining true Italian craftsmanship and form.
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Strategies: Signature stores, new creative direction through Alessandro Michele.
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Strengths: Iconic logo, reception of new creative direction, collection flexibility.
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Weaknesses: counterfeit/knockoff’s, public scandal, overall 1.1% decrease
Customer profile: The ideal Gucci woman has been described as “daring, curiously compelling and with a streak of mystery and eccentricity.” •
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Place: HQ Florence, Italy. Signature boutiques, wholesale, online.
COMPETITOR ANALASIS Objective: to “sensuously [reinterpret] the codes of elegance, sophistication and femininity”. •
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Strategies: hire of Laura Dubin-Wander and U.S. signature stores .
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Strengths: brand presence and exclusivity, online development, use of public figures.
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Weaknesses: fashion and economic forwardness of brand, no direct online purchasing.
Customer profile: appeals to the mature, yet young city dweller who is strong yet gentle, has a strong sense of self & is baroquely romantic. •
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Place: HQ in Paris, 3 U.S. signature stores, wholesale retailers
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