Legal
As Dior is such a huge company, legal factors are so important. It deals with many tropes of situations and must maintain its prestigious reputation by making sure they deal with these accordingly.
In the final month of 2010, the only stated main shareholder in Christian Dior S.A. was Groupe Arnault SAS, the family holding company of Bernard Arnault. The group's ownership of the business, added up to a total of 69.96% of Dior's stock and 82.86% of its voting rights. The remaining shares are free float.Christian Dior S.A. held 42.36% of the shares of LVMH and 59.01% of its voting rights at the end of 2010. Arnault held an additional 5.28% of shares and 4.65% of votes directly.
Ethical
Luxury fashion items can be anything from Haute Couture garments to ready-to-wear pieces. They often drive individuals to purchase these insanely priced pieces because of the prestigious nature and emotional value they feel towards them. And although, individuals have positive attitudes towards ethical issues, and say they want to support the causes, this often does not enter their minds when purchasing something that owns that luxury name.
But this problem is not the consumers fault entirely, as the luxury fashion brands and designers, such as: Stella McCartney, Gucci and Vivienne Westwood do not pay enough attention to these issues. They have not even taken the first steps in doing what needs to be done in terms of minimising the environmental issues they cause. They do not own any environmental policies in place to stop things such as global warming and animal cruelty.
Political
Since a few of the new members joint into European Union, the tariff declined quite a lot. It has had a great affect on Dior’s importing and exporting business. In order to re-strategies their business, Dior creates new lines; to offer a greater variety. They also open up new stores in different areas of the world. It has since brought a lot of benefits as well as challenges to Dior. Dior has also decreased some of its prices to try and improve its competitive edge, in terms of competing with other luxury fashion brands. They hope that buy offering their goods at a lower price, but keeping the same quality that they are known for, they will keep their most loyal customers interested. But also that they will attract new customers as high quality and lower priced goods, are an opportunity that most luxury fashion enthusiasts cannot pass up. Dior also expanded its overseas plan, particularly focussing on the Asian market. This is because once a business makes it in Asia, they are often then set. If the Asian market are interested in your brand, it becomes a popular craze and everyone becomes 'infected with the fashion bug!'
Economic
Although the Luxury Fashion industry entered into the economic downfall later than most companies, it was still eventually affected in a negative way. Although a few years after the economic crisis had taken place, luxury fashion was redeveloped as they have such unique customers. Customers are no longer about the status, but are wanting more simplistic, quality products. As the economy gets better the luxury fashion brands are learning to depict what its' customers want and expect.
Somewhere which is doing extremely well in the current economic crisis is China. This is why most brands are trying to get the Chinese's attention. For example Marks and Spencers have created a huge campaign with David Gandy, in the hope that this will get them placed on the map in China.
Social
Dior has a huge range of loyal customers, because of its consistent innovative designs and high quality goods. They have created a fashion culture and history for itself. The brand dates way back to the 1800s, and is therefore well respected and trusted in the community of the Luxury Fashion brand buyers.
Dior as a label is respected by many people. Culture plays a huge part when it comes to the social aspects a business has to consider, in terms of their promoting and advertising campaigns. For example, when designers are shooting their campaigns for a specific demographic like Dubai, they have to ensure that they follow the rules and regulations of that country. Arabian customers are known to spend obscene amounts on their luxury fashion goods. But if the design campaign for their country is wrong, then it could ruin the brands reputation, and the income that they was specifically relying on, from that part of the world could severely decrease!
Technology
Technology is key. As the ever-changing world of Luxury Fashion continues to grow and expand, they must change with the times in terms of what is most popular with its customers. Technology is a modern way or viewing everything and in some way goes against what luxury fashion houses believe in. Luxury fashion is all about the experience. When it was created there was no such thing as technology and everything would have to be viewed and fitted on a face-to-face basis. But I feel that the owners of these multi-million pound companies have had to come to terms with the change in society if they want to succeed.
By Dior having these different forms of media, it allows them to show the world what they was all of the time. By being socially aware, chat can channel different countries and cultures constantly. Allowing the world to have the chance to experience Dior - not just the main fashion capitals of the world!
One weird and whacky way I found out that Dior collaborated with up to date, technological businesses was then they teamed up with Apple in June 2008. Together the luxury fashion brand an the biggest technology software creators designed a case for Apple's iPhone. It was names 'Dior Homme iPhone Holder', and of course priced it two times more expensive than the newest released iPhone of that time!
Dior has managed to integrate into the technological world amazingly well. I found this out by searching for them on every form of media I could, and they was seen to be posting, promoting and advertising on near enough all of them. Dior clearly understands that they are a an Haute Couture brand through and through, but because times have changed so much if they do not follow the technological trends then their business would most probably fall apart.
Not only does Dior have Facebook, Twitter, Google+, Tumble and Instagram...
It's all about understanding providing the quick, easy access that individuals need in this day and age. Many business professionals; the sort of customers that would be buying Dior have a busy life-style. Therefore they rely on the internet for all of the new information. Dior clear understands this, as after doing my research I found that they offer so much online information that I can quickly receive with my fingertips!
Competitive Advantage
There can be many types of competitive advantages including the businesses' cost structure, the products that they offer, distribution network and the support they offer to customers. There are two main types of competitive advantages: comparative advantage and differential advantage. Comparative advantage, also known as cost advantage, is the business willing to produce a good or service at a lower cost than its competitors. This is done in the hope that their business will generate a larger margin on sales. A differential advantage is created when a businesses' products or services differ from its competitors and are seen as better than its competitor's products by customers.
An advantage that Dior has over its competitors is that they have a greater sales margin, and still manage to keep more customers than their competition.
The luxury fashion industry can also be seen as a status symbol, to impress others. For example, if someone high in society, or a popular famous face at the time was to wear one of Dior's luxury fashion items in their ad campaigns. Then this specific item and maybe even the whole brand's sales would increase dramatically - 9% per year, as people are always wanting to look like the most popular star of that moment. An example where Dior has done this is with actress and model Mila Kunis. She became the face of Miss Dior's ready-to-wear accessories in 2012, shooting an ad campaign that oozed style and grace, channelling real old, Hollywood glamour!
The luxury fashion industry is under quite a dramatic change and is working at different levels. This has an impact on business, as they have two different types of stores. On one hand they have factory stores that sell their goods at discounted prices. On the other hand they have full-priced stores which cater to the higher end consumers. While the factory stores are being affected by the American financial crisis, which is due to a lack in disposable income. The middle class, flagship stores have a brighter look on things as there is an ever increasing number of millionaires!
Technology
Technology is key. As the ever-changing world of Luxury Fashion continues to grow and expand, they must change with the times in terms of what is most popular with its customers. Technology is a modern way or viewing everything and in some way goes against what luxury fashion houses believe in. Luxury fashion is all about the experience. When it was created there was no such thing as technology and everything would have to be viewed and fitted on a face-to-face basis. But I feel that the owners of these multi-million pound companies have had to come to terms with the change in society if they want to succeed.
By Dior having these different forms of media, it allows them to show the world what they was all of the time. By being socially aware, chat can channel different countries and cultures constantly. Allowing the world to have the chance to experience Dior - not just the main fashion capitals of the world!
One weird and whacky way I found out that Dior collaborated with up to date, technological businesses was then they teamed up with Apple in June 2008. Together the luxury fashion brand an the biggest technology software creators designed a case for Apple's iPhone. It was names 'Dior Homme iPhone Holder', and of course priced it two times more expensive than the newest released iPhone of that time!
Dior has managed to integrate into the technological world amazingly well. I found this out by searching for them on every form of media I could, and they was seen to be posting, promoting and advertising on near enough all of them. Dior clearly understands that they are a an Haute Couture brand through and through, but because times have changed so much if they do not follow the technological trends then their business would most probably fall apart.
Not only does Dior have Facebook, Twitter, Google+, Tumble and Instagram...
But they also have two very unique online attributes. One of which is their 'Dior Mag', where exclusive information is available to their customers online. Also Dior offer its customers a page on their website called 'Backstage Make-up Mag', which gives a behind the scenes insight as to how they use their latest beauty product. And although this is obviously a way to advertise, it's also offering individuals a some-what free make-up tutorials and facts.
Something else that I found on Dior's website that interested me was 'Dior TV'. This is where you can click to watch their latest and previous runway shows. Although it is fun for the everyday shopper to watch these, they are mainly aimed at buyers that cannot make the actual show. This shows that Dior is not taking any risks, and putting their collections out there, so that they are accessible for all potential buyers to view.
There can be many types of competitive advantages including the businesses' cost structure, the products that they offer, distribution network and the support they offer to customers. There are two main types of competitive advantages: comparative advantage and differential advantage. Comparative advantage, also known as cost advantage, is the business willing to produce a good or service at a lower cost than its competitors. This is done in the hope that their business will generate a larger margin on sales. A differential advantage is created when a businesses' products or services differ from its competitors and are seen as better than its competitor's products by customers.
An advantage that Dior has over its competitors is that they have a greater sales margin, and still manage to keep more customers than their competition.
Some factors that have got Dior where it is today include: individual high quality goods, brand recognition, and it is said to have high income elasticity of demand. As people become wealthier, they tend to buy more luxurious fashion items. However, this also means that as the wealth declines in certain economic situations, the demand for these Luxury Fashion items does too; simply because they are not a priority when people have decreasing funds. They are a luxury, not a necessity.
The luxury fashion industry can also be seen as a status symbol, to impress others. For example, if someone high in society, or a popular famous face at the time was to wear one of Dior's luxury fashion items in their ad campaigns. Then this specific item and maybe even the whole brand's sales would increase dramatically - 9% per year, as people are always wanting to look like the most popular star of that moment. An example where Dior has done this is with actress and model Mila Kunis. She became the face of Miss Dior's ready-to-wear accessories in 2012, shooting an ad campaign that oozed style and grace, channelling real old, Hollywood glamour!
The luxury fashion industry is under quite a dramatic change and is working at different levels. This has an impact on business, as they have two different types of stores. On one hand they have factory stores that sell their goods at discounted prices. On the other hand they have full-priced stores which cater to the higher end consumers. While the factory stores are being affected by the American financial crisis, which is due to a lack in disposable income. The middle class, flagship stores have a brighter look on things as there is an ever increasing number of millionaires!
No comments:
Post a Comment