Lacoste Sustainable strategies

LACOSTE

Fashion Supply Chain Management

SUSTAINABLE STRATEGIES Dang Kim Thien Huong - s3463662 Truong Thuy An - s3505947

A. Company Profile

TABLE OF CONTENT

1. Company Profile 2. Target customers & customer profile 3. Product description 4. Supply Chain Management process 5. Porter’s Value Chain

B. Market 1. Competitors Analysis 2. Supply Chain management of competitors

C. Sustainability Strategy: Supply Chain Management Recommendations

A. COMPANY PROFILE 1. Company profile 2. Target market 3. Product description 4. Supply chain Management 5. Lacoste Value Chain

COMPANY PROFILE

- French - High-end brand - Established in 1933

by Rene Lacoste and Andre Gillier

COMPANY PROFILE

→ Devanlay owns the worldwide license for the creation, manufacturing, distribution and communication of Lacoste apparel.

COMPANY PROFILE Both Swidish & International Companies in Maus Frère’s portfolio.

- Swiss company - In 2012, by controlling 65.3% shares of Lacoste, Maus Frère is currently taking control of Lacoste.

- Devanlay is also under Maus Frère control.

COMPANY PROFILE Thierry Guibert - CEO - Spent the majority of his career at Kering - 15 years relationship with Lacoste as a board member.

- Also board member of Devanlay.

CCO - Felipe Oliveira Baptista - Win his Hyères and LVMH fashion awards in 2003 - Present his first collection at the Paris Haute Couture Week in 2005

COMPANY PROFILE

→ A shift in brand direction: To elevate Lacoste’s reputation to more than just a sportswear brand and brought it to the luxury fashion world.

TARGET MARKET

→ Lacoste is not for the average shoppers. It targets high end consumers who are willing to pay a premium price for a premium product.

Demograp hic

- Age: 18-44 years old - Gender: Male (57%) and Female (43%) - Occupation: Business oriented, corporate and service - Education level: Bachelor and postgraduate - Monthly Disposable Income: Above $1500 - Social Class: Upper Middle Class, Upper Class

Psychogra phic

- Personality: Sophisticated, active in sports, focus on details and practicality, pursuing the luxurious lifestyle - Motives: Priority in quality and value as opposed to prices, brand conscious.

- Lifestyles: Urban and classy. Actively taking part in sports such as tennis and golf. Family oriented, hard-working in order to achieve high job positions.

Behavioral

- Benefit sought: Trying to pursue a higher social status and fulfill social need - Buying frequency: Heavy product users. Tend to use it often and account for a significant portion of the revenue for the brand - Loyalty status: Hard-core loyals. Usually prefer buying products at full price.

TARGET MARKET Customer Persona

Profile Name: Kyle Fisher Age: 35 Occupation: CEO at JKL Works, Seattle Monthly Disposable Income: around $2000 Marriage status: Married with one daughter Education level: MBA in Finance Social Class: Middle Class

Personality Hard working, ambitious, opportunity seeker, optimistic, goal oriented, family man.

Hobbies & Lifestyles - Active in sports: Playing tennis on weekends with colleagues - Interested in technology, cars, tennis and travel - Family oriented and has an active social life

Behavioural Occasionally shopper, quality priority rather than price.

Loyal customers of Lacoste, Fred Perry, Topshop and Uniqlo

PRODUCT DESCRIPTION

THE POLO T-SHIRT

PRODUCT DESCRIPTION Lacoste’s first Polo T-shirt presented in U.S. Open Championship in 1926.

- Short cuffed sleeves - An extra-long shirt tail - The soft collar could be loosened easily by unbuttoning the placket.

- Made by a special knit fabric called the piqué cotton knit Traditional uniform for tennis players before the Polo T-shirt

- Pants - Long sleeves starched oxfords

PRODUCT DESCRIPTION PIMA COTTON

PIQUÉ COTTON FABRIC

POLO T-SHIRT

SUPPLY CHAIN MANAGEMENT

LACOSTE’S VALUE CHAIN

B. MARKET 1. Competitors Analysis 2. Supply Chain management of competitors

COMPETITORS ANALYSIS PRODUCT

PRICE

PLACE

PROMOTION

LACOSTE

Premium casual/ sportwear brand Focus on best quality, cut and fit

Polo Shirts: US $90 - $150

115 countries, more than 1,200 stores

Take on prestigious athletic (tennis, golf) to be the ambassador promotional campaigns

RALPH LAUREN

Luxurious lifestyle brand

Polo shirts: US$ 85 - $125

Placed their stores in premium locations

Portrait successful, luxurious lifestyle. Focus on Polo, Horse Riding, Yachtsmen.

TOMMY HILFIGER

“Classic American cool with a preppy twist”

Polo shirts: US $50 - $85

Over 40% of the stores are company -operated

PVH spends about $175–$185 million on annual marketing

FRED PERRY

Retro sportswear brand → urban lifestyle brand

Polo shirts: US $70 - $90

Have stores in major shopping centres

Use music events and celebrities to marketing the products

UNIQLO

High quality, basic casual wear

Less than US $20

Available in over 1,400 stores in 16 markets worldwide

Use the star power of renowned individuals and influencers

COMPETITORS ANALYSIS

- Tommy & Fred direct competitors with same level and price - Ralph Lauren & Lacoste same premium image and high quality. However distinguish by their communication message

Lacoste’s positioning map

- UNIQLO same quality but offers lower brand image as compare to Lacoste and Ralph Lauren

COMPETITORS SCM RALPH LAUREN - Outsourcing and 3PLs

→ Heavy SC systems → Minimize investment costs by outsource all of its manufacturing and distribution network, use different 3PLS in each country → Less dependent on one particular supplier however this may leads to a lack of control and inflexible SC

COMPETITORS SCM UNIQLO - Strong quality control strategy

UNIQLO’s Takumi Team: A group of highly experienced engineers sent to UNIQLO's manufacturing partners → A strict supervisory system to ensure that product quality is controlled → UNIQLO’s USP: Able to maintain high quality products with significantly affordable prices

C. SUSTAINABILITY STRATEGIES 1. “Humans of Lacoste” gamification app 2. Sourcing - Adapt to local resources 3. Close-loop production - Use CO2 to dye fabric

CURRENT SUSTAINABILITY PROCESS → Current Lacoste sustainability programs aims at separated stage of its supply chain without any specific links between them → Disconnected Structure

“HUMANS OF LACOSTE” GAMIFICATION APP

Sample Sample

“HUMANS OF LACOSTE” GAMIFICATION APP

Mini-games to simulate and demonstrate her work everyday

Camila - seamstress at Lacoste garment manufacturer in Peru

Sample

Sample

“HUMANS OF LACOSTE” GAMIFICATION APP

Camila shares stories about her everyday life and work in Peru

Purpose of this app Create a fun and stimulating environment for global consumer to understand about Lacoste supply chain.

At the same time communicate real stories, real people to raise awareness around Lacoste supply chain and its sustainability programs Sample

Current Product trip map

SOURCING - ADAPT TO LOCAL RESOURCES Reuse the low risk operation strategy of Lacoste in a new region - Egypt, Africa → Introducing a new material Egyptian Giza

Product trip map Recommendation Benefits → Reduce the cost of producing in the USA and transportation cost from the US to Europe → Minimize the costs and risks → Less transportation means less carbon footprint and gas emission released into the environment

CLOSE-LOOP PRODUCTION USE CO2 TO DYE FABRIC New closed loop production method of using compressed CO2 to dye fabric.

- Completely water free. Use 50% less dye.

- 95% of the CO2 used in the process can be recycled for further use.

- Costs half the time.

- Also used by prestige brands such as Nike, IKEA → A potential project for Lacoste to start looking into. For the long run, it can help reduce the carbon footprint our manufacturing process, reduce the cost and less harmful to the worker as well.

REFERENCE LIST: Blanks, T 2015, ‘Lacoste is Ready for Rio’, Business of Fashion, 13 September, viewed 15th August 2016, <https://www.businessoffashion.com/articles/fashion-show-review/lacoste-is-ready-for-rio-felipe-oliveira-baptista>.

Bloomberg 2016, ‘Thierry "Thierry" Guibert: Chief Executive Officer – Lacoste SA’, Bloomberg, viewed 14th August, <http://www.bloomberg.com/profiles/people/16105356-thierry-louis-joseph-guibert>.

Business of Fashion 2016, ‘Lacoste’, Business of Fashion, viewed 14th August, <https://www.businessoffashion.com/community/companies/lacoste>.

Business of Fashion 2016, ‘Felipe Oliveira Baptista’, Business of Fashion, viewed 14th August, https://www.businessoffashion.com/community/people/felipe-oliveira-baptista Chitrakorn, K 2015, ‘Power Moves: Gucci Confirms Creative Director, Versus Taps Anthony Vaccarello, José Luis Duran Exits Lacoste’, Business of Fashion, 23 January, viewed 14th August 2016, <https://www.businessoffashion.com/articles/power-moves/power-moves-3>.

Fibre2fashion.com n.d., ‘Lacoste: Brand Story’, Fibre2fashion.com, viewed 16th August 2016, <http://fashiongear.fibre2fashion.com/brand-story/lacoste/history.asp>.

Forbes 2016, ‘Can The New Restructuring Plan Revive Ralph Lauren?’, Forbes, 9 June, viewed 26 August 2016, <http://www.forbes.com/sites/greatspeculations/2016/06/09/can-the-new-restructuring-plan-revive-ralph-lauren/#b6c9c9f6292f >.

Greenpeace 2011, ‘Dirty Laundry: Unravelling the corporate connections to toxic water pollution in China’, Greenpeace, 13 July, viewed 16th August 2016, <http://www.greenpeace.org/international/en/publications/reports/Dirty-Laundry/>.

Handfield, R 2012, Supply chain view from the field, blog, viewed 25th August 2016, <https://scm.ncsu.edu/blog/2012/10/11/ralph-laurens-supply-chain-a-lot-more-complex-then-you-think/>.

Ralph Lauren 2016, ‘News Release’, Ralph Lauren, viewed 25th August 2016, <http://investor.ralphlauren.com/phoenix.zhtml?c=65933&p=irol-newsArticle&ID=210728>.

Ralph Lauren 2011, ‘Annual Report’, Ralph Lauren, viewed 26 August 2016, < http://phx.corporate-ir.net/phoenix.zhtml?c=65933&p=irol-reportsAnnual>.

Supima Cotton 2013, The Supima Story, video recording, 19 November, viewed 16 August 2016, <https://www.youtube.com/watch?v=Uds7rJRQ-wA>.

The Label Finder 2016, ‘Shops for LACOSTE worldwide’, the label finder, TLF LabelFinder GmbH, viewed 18 August 2016, <http://www.thelabelfinder.com/greenland/lacoste/shops/GL/28668>.

United Nations Global Compact 2010, ‘Supply Chain Sustainability A Practical Guide for Continuous Improvement’, United Nations, viewed 30 August 2016, <https://www.bsr.org/reports/BSR_UNGC_SupplyChainReport.pdf>.

LACOSTE Dang Kim Thien Huong - s3463662 Truong Thuy An - s3505947