LXFM 745 Prof Virk Winter 2021 Aastha Agarwal, Estefania Rodriguez & Wenyuan Sa
Table of Contents Member Roles About the brand. History Product Portfolio Target Customer Base SWOT Analysis Positioning Map Price Positioning Key Competitors Brand Identity Prism Current State of Business Distribution Channels
Distribution Channels Direct E-commerce Indirect E-commerce Physical Department Multi-brand Marketing & Advertising Best practices on distribution.
Drivers of Growth Strategy Retail Development Index Business Strategy 1 Year 3 Year 5 Year Key Takeaways References Appendix Personal Reflections Countries with presence P.E.S.T.E.L Analysis
Member's Roles - Aastha Agarwal Organization of Zoom meetings. Visual design of the presentations for check point 1, 2 & final. Research- PESTEL Analysis- France & India Research- Distribution Channels Drivers of growth Retail Development Index Business strategies. Research and collaboration in the composition of the process book. Process Book- Content & Design (Collaboration)
Member's Roles - Estefania Rodriguez Organization of Zoom meetings. Active participation in business strategy brainstorming. Composition of the process book and data gathering from all our different assets. Presentation: Brand's profile History Target consumers Product portfolio PESTEL Analysis- US SWOT Analysis Collaboration on Key competitors. Process Book- Content & Design (Collaboration)
Member's Roles -Wenyuan Sa Abby Organization of Zoom meetings. Responsible for participation in group meetings. Collaboration in building presentations. Presentation: Conduct brainstorming on Chinese market strategy. Online Flagship store Strategy Weibo & Tmall Positioning map Key competitors. PESTEL Analysis- China Process Book- Content & Design (Collaboration)
“I don’t do clothes;, I do stories.”
History Founded in 2010 by Simon Jacquemus using his mother's maiden name. In 2010, the founder's friends used Jacquemus bags during Vogue’s Fashion Out in Paris. In 2012, the founder was invited to present his collection during Paris Fashion Week. The founder received the special Jury Prize at the LVMH Prize, an international competition created by Delphine Arnault for young fashion designers in 2015. In 2017 Jacquemus added a line of footwear to his women's collection. In 2019 he created a footwear, hats, bags, and apparel line for men and also opened a restaurant called “Citron” in Galleries Lafayette des Champs-Elysees. International recognition and more than 3 million followers on social media platforms.
WOMEN Apparel Coats & Jackets. Dresses. Tops. Knits. Trousers & Skirts. Swimwear. Shoes Bags Le Chiquito. Le Rivera. Le Beneto. Hats Accessories Sunglasses Jewelry
Product Portfolio
MEN Apparel Coats & Jackets. Sweatshirts & T-shirts. Shirts. Knits. Trousers & Shorts Swimwear Shoes Bags Hats Accessories Sunglasses Jewelry
Product Portfolio
Target Customer DEMOGRAPHICS
PSYCHOGRAPHICS
Gender: Men Women
Entrepreneur. Minimalist. Creative.
Inclusive Ages: 20 - 50. Millennials and Gen Z Asia, USA, Europe.
Fashionable. Trendy. Unique Enjoys traveling.
SWOT Analysis STRENGTHS
WEAKNESSES
Luxury at an affordable premium price. Strong French theme appealing to international target consumers.
Lack of flagship store. Lack of physical boutique and minimal pop-up events.
Ample color variety and sizes within the “tiny” concepts
Weak product assortment divided across several multi-brand boutiques.
Strong social media presence.
Lack of country-specific website. Poorly designed website.
SWOT Analysis OPPORTUNITIES
THREATS
The brand could include more sustainable practices through its supply chain. Collaborations with other brands to increase
Competitors have more physical stores with a greater product assortment. Lack of ethical standpoint to meet Gen Z
consumer base. More use of celebrity endorsement.
consumer’s concerns. Lacks investors and capital.
Introduction of items’ customization. Build a more sustainable approach.
Limited distribution channels compared to its competitors.
Positioning Map
HIGH FASHION
HIGH COST
LOW COST
HIGH STREET
Price Positioning Jacquemus entry level items overlap in their price point of the other luxury brands shown in the figure to the right. However, Jacquemus caps out considerably lower in the over-all price points of all the products.
Source: Retviews Womenswear 2020
Key Competitors Celine is a French ready-to-wear and leather luxury goods brand founded in 1945 by Céline Vipiana. Since 1996 LVMH group owns Celine. The current director is Hedi Slimane. Research has demonstrated that Celine products range from handbags, mini-luggage mini-handbags to clothing, shoes, and accessories. The prices of Celine products range from $990 to $7,500. Both Celine and Jacquemus' design styles highlight Parisian fashion. Like Jacquemus, Celine is trying to achieve sustainability.
Key Competitors Balenciaga opened its first boutique in Spain in 1917. Its headquarter is in Paris, France, and it is currently under the Kering Group. With the advent of Balenciaga's sock sneakers, the brand has received widespread attention from the fashion industry. Balenciaga also uses Instagram's marketing strategy, by posting some "strange" and unique photos on Instagram to attract 11.6M followers. In terms of price, Jacquemus prices are one-half of Balenciaga's. Both are French fashion brands and are good at using social media marketing.
Key Competitors Maje is a family business established in Paris, France, in 1998, specializing in bold, modern, and urban fashion. The brand provides exceptional customer care and is known for its quality product offering without hefty price tags. Maje offers affordable luxury products from clothing to accessories like Jacquemus. But the price is lower than half of Jacquemus. Maje has increase engagement with its consumer through social media and subsequently increase sales. Like Jacquemus, maje designs fashionable and avantgarde clothing with quirky details.
PICTURE OF SENDER PHYSIQUE
PERSONALITY Natural Inclusive Minimalistic
RELATIONSHIP Exclusive Loyalty
CULTURE
Identity Prism
REFLECTION
Provence French Social media
SELF-IMAGE
Unique Fashionable Luxury
Emotional Empowered High fashion
PICTURE OF RECIPIENT
INTERNALISATION
EXTERNALISATION
Le Chiquito mini bag Lavender Fields Warmth
Current State of Business Head Quarter: Paris, Ile-De-France, France 7.5 million Euros in 2017 11.5 million Euros in 2018 Expected 23 million euros and 25 million euros in 2019 (WWD) Fueled in part by the explosive growth of accessories, with handbag styles such as the best-selling Chiquito accounting for 30 to 40 percent of revenues. (WWD)
Current Distribution Channels DIRECT DISTRIBUTION CHANNEL Globally- 230 points of sales E-commerce - Jacquemus Website. - Jacquemus Official Instagram Shop. INDIRECT DISTRIBUTION CHANNELS Globally E-commerce Physical locations - Department stores. - Multi-brand retailers.
Direct Distribution Channels JACQUEMUS WEBSITE jacquemus.com. (To the left) Compatible with: Smartphones Tablets Laptops Desktop computers.
Direct Distribution Channels JACQUEMUS WEBSITE CONTD. A personalized experience offered through account creation. The website indicates prices, material composition, and country of manufacture. Worldwide shipping. Instant email and WhatsApp customer and shopping assistance.
Direct Distribution Channels OFFICIAL INSTAGRAM SHOP Verified account. (Image on the next page) Direct Shop 3.4 million followers. Reflects the brand's identity. Follows the brand's color pattern. Storytelling format. Worldwide shipping. Instant customer service through email and direct message.
OFFICIAL INSTAGRAM SHOP
Indirect Distribution Channels DEPARTMENT STORES Physical and online presence is important for luxury retailers to provide their consumers with effective and experiential service, and interaction with the brand. However, in the lack of a directly operated store, brands turn to department stores to reach their audience and reduce costs of setting up new stores in markets that are not feasible.
Indirect Distribution Channels United States Nordstrom Saks Fifth Ave Bloomingdales Neiman Marcus Bergdorf Goodman France Galeries Lafayette Le Bon Marché Printemps
India Le Mill England Selfridges Harvey Nichols United Arab Emirates Harvey Nichols Ukraine Sanahunt
MULTIBRAND RETAILER England Farfetch Harvey nichols ln-cc Matches fashion Selfridges Tessabit Suit negozi Italy Antonia Antonioli Luisaviaroma The clutcher The corner The flamel
Germany Mytheresa Stylebop Vooberlin Indonesia Bobobobo Hong-kong Lane crawford USA Fwrd Moda operandi Mohawk general store Net-a-porter Shopbop Farfetch Canada Ssense
E-commerce
Physical Stores MULTIBRAND PHYSICAL STORES IN THE US Aspen New York MAX Austin By George Boston All Too Human Manhasset HIRSHLEIFERS Miami The Webster
Maryam Nassir Zadeh Totokaelo Jeffrey Dover Street Market 10 Corso Como Los Angeles Dover Street Market Mohawk
Marketing and Advertising DIRECT ADVERTISING No promotions through their official website to maintain the brand value and sophisticated aesthetic. Brand's newsletter to subscribers. Promotions through Instagram and Facebook. Storytelling marketing format. Creative and unique content using social media such as backstage "sneak peak" of the brand's development to keep consumers engaged and excited about the new collections.
Marketing and Advertising COOPERATIVE ADVERTISING Paid online marketing and advertising contracts with the partner retailer. EARNED MEDIA Un-Paid social media posts garnered by enabling the tagging feature for the consumers.
Best Practices Multi-Channel presence with a potential to develop an omnichannel presence. Personalized customer experience. Well established direct to consumer channel through their Instagram shop. Inclusivity within its marketing and advertising strategies. Collaborations with artists.
“I have always dreamed of having a Jacquemus flower boutique. The idea of this pop-up came out naturally with my friends from Les Fleurs de Paul and the agengy Yoann and Marco. I have always been passionate about flowers, they are part of my inspiration when I design my collections. It was also a desire for me to share things other than clothes in this particular period of time.”
- Jacquemus
Best Practices POP-UP FLOWER SHOP The flower shop featured unique arrangements wrapped in iconic Jacquemus fabrics from previous collections to demonstrate an approach to recycling. Pop-ups help increase brand exposure. Increase consumer engagement. Lead to future collaborations.
Best Practices Pop-up Collaboration announcement through the brand's Instagram Static Feed Post
Image source: Brand's Instagram
Organic growth through outlet multiplication: Directly Operated Store Pop-up stores Online Stores on additional social media WeChat Tik-Tok
Drivers of Growth
The Global Retail Development Index™ is an annual study that ranks the top 30 developing countries for retail expansion worldwide. The Index analyzes 25 macroeconomic and retailspecific variables to help retailers devise successful global strategies and to identify developing market investment opportunities.
Retail Development Index
Retail Development Index-Key Considerations
Business Strategy - 1 year 1 year objectiveTo look for new department stores in new markets To open a physical flagship store Paris AR Lavender Fields Virtual Try-on Development of Website XR User Efficiency Regional Languages & Currencies
Business Strategy - 3 year 3 year objectiveUS market Pop-up store in 2 cities New-York LA China Online Flagship store- Tmall Have an official account on Weibo and WeChat Collaborate with Kols Promote on Douyin and Red Live-streaming
Business Strategy - 3 year Pop-up store in 3 cities Shanghai, Lujiazui Chengdu, Sino-Ocean Taikoo Li Hangzhou, Hangzhou Tower Brand Website Gamification Travel Retail DFS in Asia To look for new department stores in new markets
Business Strategy - 5 year Directly Operated Store in one of the cities from the 3 year strategy plan depending on which city grosses the highest revenue. Pop-up stores to further penetrate in the US and Chinese markets. To look for new department stores in new markets
Key Takeaways Great use of social media as an engagement point and point of sale. Pop-Up stores serve as great tool for gauging customer reaction & interest. Travel retail can serve as a tool to expand the brand's distribution channel. Brand needs to invest in XR to peek the interest of the Asian buyers.
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IMAGE SOURCES: Jacquemus Official Website: https://www.jacquemus.com/ https://www.instagram.com/jacquemus/?hl=en
References
https://www.pinterest.com/pin/176625616622894862/ INFORMATION SOURCES: https://www.shopenauer.com/en/brand/jacquemus#stores_selling_brand https://www.voguebusiness.com/fashion/data-analysis-breakout-brands-jacquemusmarine-serre-bode https://www.shopenauer.com/en/brand/jacquemus#stores_selling_brand https://www.themds.com/back-stage/goodbye-marc-jacobs-hello-jacquemus-the-newstar-fashion-designers.html https://wwd.com/fashion-news/designer-luxury/jacquemus-business-strong-despitecovid-crisis-1203680842/
https://www.themds.com/back-stage/goodbye-marc-jacobs-hello-jacquemus-the-new-starfashion-designers.html https://www.businessoffashion.com/articles/news-analysis/jacquemus-bigger-than-youthinkChina: Economic and political outline. Economic and political outline China Santandertrade.com. (2021). https://santandertrade.com/en/portal/analysemarkets/china/economic-politicaloutline#:~:text=Overall%2C%20the%20political%20situation%20in, (CCP)%20firmly%20in%20power.&text=In%202021%2C%20China's%20most%20immediat e,of%20the%20COVID%2D19%20pandemic. Rahman , M. (2021, April 14). PESTEL analysis of China (China country profile). howandwhat. https://howandwhat.net/pestel-analysis-china/. https://www.epa.gov/laws-regulations https://www.kearney.com/global-retail-development-index https://www.theglobaleconomy.com/France/retail_sales_index/
Appendix Appendix A Personal Reflections Aastha Estefania Abby Appendix B Jacquemus online and physical store locations. Appendix C PESTEL Analysis. France. China. United States. India.
Project Reflection
Appendix A
It was incredible to look at the sectors within the Luxury industry that were highlighted in this class. I would have never considered things like travel retail & gamification especially because of the rigidity that encompasses a luxury brand, but, this class has changed my perception and broadened my horizon. I am also excited to take the knowledge about different Luxury personas and hopefully use it to explain my thesis better in my final terms. I also appreciate the truly global insight that was provided in this class and besides learning, I enjoyed to watch all the videos about different subjects. Through this specific project it has been interesting to integrate new media & technology into the business strategy of a young brand.
- Aastha Agarwal
Project Reflection This project has served as a great sample in preparation for our professional careers in the fashion industry. Creating a business strategy for a projection of 5 years and evaluating possible locations was the most interesting part of this assignment. Overall, it was a pleasure being in this class and working with amazingly talented people.
- Estefania Rodriguez
Project Reflection I enjoyed this project very much and the process of research and brainstorming. In the beginning, when researching the distribution countries of the brand, there were some difficulties, but in the end, it gradually became better. I like to make choices for a brand so that the brand can grow quickly.
-Wenyuan Sa Abby
Appendix B Andorra Australia Austria Azerbaijan Belgium Canada China Cyprus Czech Republic Denmark France Germany Greece
Hong Kong SAR China India Israel Italy Russia Japan Singapore Kazakhstan South Korea Kuwait Spain Luxembourg Sweden Mexico Switzerland Monaco Taiwan, Province of China Netherlands Thailand Nigeria Ukraine Norway United Arab Emirates Poland United Kingdom Portugal United States Qatar Romania
France - PESTEL Analysis POLITICAL France is one of the most important countries in the Western world and plays a highly
Appendix C ECONOMIC France is one of the top ten economies in the world. It contributes immensely to
significant role in international affairs.
the GDP of the Euro area.
It is a founding member of the United Nations and serves as one of the permanent members of the UN Security Council. France plays key role in the European Union as one of the leading member states.France is one of the major allies of the United States.
France is famous for its excellence in cosmetics and luxury products. In addition to the UN, European Union, and Eurozone, France is also a member of G7, NATO, WTO, and OECD.
France - PESTEL Analysis SOCIO CULTURAL France is the most visited country in the
TECHNOLOGICAL The usage rate of the Internet is
world with 90 million tourists visiting it in 2018. The unemployment rate is high and
stunning in France. However, shortage of computer engineers is also challenge.
industrial strikes, demonstrations, and
France is third nation to launch its own
labor unrest are common in France. Likewise, anti-immigration sentiment is rife with some spheres of the French society.
satellite, and the sixth nation to have a satellite in orbit.
France - PESTEL Analysis ENVIRONMENT France ranked 17th for carbon dioxide emission.
LEGAL The legal length of the working week is 35 hours in all types of companies.
Air pollution is a significant
Employees may not work for more than
environmental problem in France, so is water pollution.
4.5 hours without a break (Expatica, 2020). The French employment law has
One-third of the land in France is forest, meaning the country focuses on protecting the land and its species. Destruction of forests caused by acid rain.
provisions for employee overtime, annual leave, sick leave, maternity leave, paternity leave, sabbatical leave, and some others.
China - PESTEL Analysis POLITICAL Political stability in China, ruled by the Communist Party of China. China is a permanent member of the
ECONOMIC China is the world's second largest economy, one of the countries with the fastest GDP growth, the largest exporter
UN Security Council and a member of many international economic leagues.
and the largest foreign exchange reserve.
China has good diplomatic relations with many countries, but its relationship with the United States is full of challenges.
China has the strongest purchasing power. China is the world's largest destination for foreign direct investment. (Cheap labor and good infrastructure).
China - PESTEL Analysis SOCIO CULTURAL China is the country with the largest population in the world, more than 1.4 billion, which shows that China has a
TECHNOLOGICAL China has the world's largest online population, with more than 854 million users.
huge consumer market. China's literacy rate is 96.4 percent.
China is a country with strong technology. There are many
Due to COVID-19, women's consumption concept changed. Emergence of clothing rental applications, and the rise of secondhand clothing trading platforms.
technology giants, such as Baidu, Alibaba, Tencent, etc
China - PESTEL Analysis ENVIRONMENT The rapid development of China's economy has seriously affected the environment, such as industrial waste water, air and water pollution. The Chinese government is taking measures to encourage the public to participate in environmental protection.
LEGAL There are many laws regulating business and employment in China, such as labor standards and employee salaries. The Catalogue of Industries Guided by Foreign Investment stipulates foreign direct investment in China, which has 35 restricted categories of industries, such as air traffic control, postal companies and domestic letter express (Rahman, 2020).
US - PESTEL Analysis POLITICAL Second largest economy in the world. The country has 50 States in total, 48
ECONOMIC The United States has one of largest economies in the world with a GDP of
locked within continental United States and other are Hawaii and Alaska. Great destination of Foreign Direct
20.93 trillion USD. Taxation ranges between 10% to 24%. The majority of imports are from China.
Investment (FDI). The United States has influence over the political dynamics of many countries around the world.
High consumerism culture. Some of the top exports of the USA are refined petroleum, crude petroleum, cars, integrated circuits, and vehicle parts.
US - PESTEL Analysis SOCIO CULTURAL Major language is English. In the United States the major religion is Christianity. Population: 331 million of people. Labor laws like 401 (K) to protect workers rights in the country. Increased socio economic mobility of the population within social classes.
TECHNOLOGICAL Technological innovation within the private and educational sector has been increasing over the past years. Americans have a longstanding fascination for technology, and companies such as Apple, Microsoft, Google, Facebook, and many others have addressed the technological needs of the Americans and the people around the world. Significant development in emerging technologies like electric cars (TESLA).
US - PESTEL Analysis ENVIRONMENT Extremely diverse geography, climate, and wildlife. On July 9th, 1970 President Richard
LEGAL In the United States each has its own government structure and legal scheme. Businesses are ruled and work under
Nixon proposed the establishment of the Environmental Protection Agency (EPA)
the regulatory environment of the state in which they operate.
which is an independent executive agency of the United States federal government tasked with environmental protection matters. Clean Air Act.
The United States offers a complete legal system to protect Intellectual Property Rights.