Apparel Merchandising and Marketing

Presentation on

DIOR

Presented By
Sariga P.S.
DIOR
 PROFILE
Type Société Anonyme
Industry Luxury goods
Founded 16 December
1946
Founder Christian Dior
Headquarters Paris, France
No. of Locations 210(as of Sept
2010)
 PROFILE
Areas served Worldwide high-
end shopping
districts
Key People
Bernard Arnault (Chairman)
Sidney Toledano(CEO)
Kris Van Assche(Creative Director)
Victoire de Castellane(Designer)
Products High
Fashion Retail
Revenue €21.12
billion
Operating Income €4.172 billion
 MISSION

“True Luxury requires genuine

materials and the craftman’s
sincerity. It is only meaningful when
it respects tradition” – Christian Dior

Dior is the ultimate symbol of

elegance, excellence and luxury.
In the 21st century, Dior continues to
define elegance and style with the
same audacity that inspired
Monsieur Dior when he launched his
house.
Organizational Chart

Christian Dior *
100%

Christian Dior
Couture
100%

Financiere Jean
Goujon

42.4%

LVMH

* Listed Company
 Corporate
Governance
BOARD OF DIRECTORS

Bernard Arnault Chairman

Eric Guerlain Vice Chairman
Sidney Toledano Chief Executive
Officer

Antoine Bernheim
Denis Dalibot
Renaud Donnedieu de Vabres
Ségolène Gallienne
Pierre Godé Directors
Christian de Labriffe
Jaime de Marichalar y Sáenz de Tejada
 History of
Christian Dior

Birth of Christian Dior in
Granville(Normandy,
France) on January 21
On Feb 12, Christian Dior
presents the 90 models of
his first collection on six
mannequins
Launch of the perfume
“Diorama” By marketing
Dior stockings in the US,
the brand creates the
licensing system
The Christian Dior brand
consolidates its presence in
Europe by creating Christian
Dior Models Limited in
London. Agreement with the
House of Youth in Sydney for
exclusive Christian Dior New
York Models. Exclusive
agreement with Los
Gobelinos of Santiago, Chile
for the Christian Dior Paris
Haute Couture collections
1905
Backed by Marcel Boussac,
Christian Dior found his own
1946 couture house in a private
house at 30, avenue
1947 Montaigne in
Paris
In Nov a luxury RTW house is
1948 established in New York at
1949 the corner of the 5th Avenue
and 57th Street, the first of
its kind. Creation of Christian
Dior Parfums New York
1950
License for neckties. All
1952 accessories follow. Within
three years, this system was
copied by all the couture
houses
1955
At age 19, Yves Saint Laurent
becomes Christian Dior’s first and
only assistant. Opening of the
Grande Boutique at the corner of
the avenue Montaigne and rue
Francois Ier. Launch of Dior
Lipstick. A line of beauty products
follow
 Christian Dior succumbs
to a heart attack while
convalescing at
Montecatini on Oct 24.
Yves Saint Laurent is
named to provide artistic
direction for the brand
Marc Bohan presents his
first collection, “Slim Look”,
under the Dior Label
Launch of the perfume
“Diorling”
Philippe Guiborge, assistant
to Marc Bohan, creates the
“Miss Dior” line, the first Dior
women’s RTW line in France.
Opening of the “Baby Dior”
boutique.
Creation of the Christian Dior 1970
Monsieur line. At Parly II, a
new Christian Dior boutique
is decorated by Gae Aulenti
1957
Called up for National
Service. Yves Saint Laurent
1960 leaves Dior after completing
six collections. Marc Bohan
succeeds him. He is 34
years old.
1961 1962
Yves Saint Laurent opens his
own couture house
1963 1966
Launch of the men’s fragrance “Eau
Sauvage”
Launch of the Christian Dior
1968
1967 Coordinated Knits line. The Dior
perfume company is sold to Moiet
Hennessy. Frederic Castet
assumes management of the
Fashion Furs Department-
Christian Dior Paris.
1972
Launch of the perfume “Diorella”
 Creation in France of the
RTW fur collection, which
will then be manufactured
under license in the
United States, Canada and
Japan
Launch of the perfume
“Dioressence”
The Willot group declares
bankruptcy
Bernard Arnault becomes
Chairman and Chief
Executive Officer of Christian
Dior. Launch of the perfume
“Poison”
Through its subsidiary Jacques
Rober, held jointly with the
Guinness group, Christian Dior
takes a 32% equity stake in the
share capital of LVMH. The
share capital of Christian Dior is
offered to French and foreign
institutional investors who
subscribe to a capital increase
of 3.3 billion francs in a private
placement.
1973
Bankruptcy of the Marcel
Bussaic group, whose
1978
assets under the
authorization of the Paris
Trade Court, are purchased
1979 by the Willot Group.
1980
Launch of the men’s fragrance
1981
“Julies”
1984 A group of investors, led by Bernard
1985 Arnault takes control of the former
Willot Group
1987
The Paris Fashion Museum
dedicates an exhibition to
Christian Dior on the fortieth
anniversary of his first collection.
1988
Gianfranco Ferre joins Christian Dior
as creator of the Haute Couture,
1989 Fashion Furs, and Women’s RTW
collections. His first Haute Couture
collection is awarded the De’ d’Or.
Opening of a boutique in Hawaii.
Jacques Rober’s stake in LVMH is
increased to 44%
 Opening of boutiques in
Los Angeles and New
York. LVMH’s stake is
increased to 46%
Patrick Laviox is named
Creative Director of “Christian
Dior Monsier” Relaunch of
“Miss Dior” perfume.
The Couture line is transferred
to a wholly- owned subsidiary
that takes the corporate name
“Christian Dior Couture”
Christian Dior Couture takes
over the network of 13
boutiques operated under
franchise by its Japanese
Licensee, Kanebo
Launch of the perfume
“J’adore”. Creation of a new
business group, Fine jewelry,
whose collections are
created by Victoire de
Castellane.
1990
Listing of Christian Dior in
the spot market and then
1991
the monthly settlement
market of the Paris stock
exchange. Launch of the
perfume “Dune”
1992
A revision of agreements with
1994
Guinness has the effect of
increasing Christian Dior’s
1995
consolidated stake in LVMH from
1996 24.5% to 41.6%
John Galliano becomes creator of
Christian Dior Couture.
1997
1998 Christian Dior Couture takes over
the direct marketing of ready to
wear and women’s accessories in
Japan after terminating its
licensing agreement with Kanebo
1999
2001
In Jan 2001, Heidi Slimane, new
creator of the “Homme” line,
presents his first collection based on
a new contemporary masculine
concept.

Launch of the perfume
“Addict”
Opening of a flagship boutique 2004
in the Ginza district (Tokyo).
Christian Dior Couture directly
takes over the activity of its
Moscow agent and opens a
boutique in the GUM
department store.
Major exhibition organized in 2008
Beijing, in association with
Chinese artists, to celebrate
the brand’s entrance into the
Chinese marketplace.
Organization of an event in 2010
Shanghai to celebrate the
expansion and reopening of the
boutique in the Plaza 66
shopping mall
2002
Opening of a flagship
2003
boutique in the Omotesando
district(Tokyo).
2005
Celebration of the centennial of
Christian Dior’s birth. Launch of
the perfumes “Miss Dior Cherie”
2006 and “Dior Homme”
2007
Celebration of the 60th anniversary of
the creation of Maison Dior(1947).
Kris Van Assche, the new creator of
the menswear line, presents his first
collections.
2009
New Online advertising
campaign for Lady Dior
handbags featuring Marion
Cotillard
MERCHANDISE
Christian Dior
Couture
Wines & Spirits

Fashion & Leather

Goods

Perfumes &
Cosmetics

Watches & Jewelry

Selective Retailing
 DIOR
COUTURE
 Dior Couture
Highlights
• Success of the Group’s strategy emphasizing
excellence
• Sustained sales growth in the network of directly
owned points of sales
• Significant improvement in profit from recurring
operations
• Investment focused on high- growth and
strategic markets
• Innovative communications strategy reinforcing
Dior’s values
 Dior Couture
Outlook towards the future
• Dior will continue to advance its strategy
emphasizing excellence, focusing on distribution,
products and communication

• Sustained program of investments to support

openings, renovations and expansion in the
network of directly owned points of sale,
concentrated mainly in Asia but also targeting
Europe
 Dior Couture
• House of Dior will continue to enjoy a strong
position from which to capitalize upon the
development of its nework

• These actions, complemented by tight control of

operating costs and investments will enable
Christian Dior Couture to pursue its groeth and
profitability objectives
 Dior Couture
Consolidated Results of Dior Couture
• Consolidated Revenue amounted to 826 million
euros up 15% at actua exchange rates and 10%
at constant exchange rates.

• Profit from recurring operations was 35 million

euros, representing an increase of 22 million
euros

• Operating profit amounted to 21 million euros

following the recognition of non recurring
expenses totaling 14 million euros
 Dior Couture
Consolidated Results of Dior Couture
• Net financial expense was 11 million euros down
from 13 million euros

• Tax expense totaled 5 million euros generated by

the beneficiary subsidiaries, the non recognition
of tax creditd by loss making subsidiaries and
changes in deferred taxes

• The Group share of net profit was 2 million euros,

with the amount attributable to minority interests
amounting to 3 million euros.
 Dior Couture
Analysis of Business growth

(EUR millions) 2010 2009 Change at actual exchange

rates Change at constant exchange rates
License royalties 35 35 0%
-1%
Wholesale revenue 124 134 -7%
-8%
Retail Revenue 667 548 +22%
+16%
and other
TOTAL 826 717 +15%
+10%
 DIOR
WINES & SPIRITS
 Wines & Spirits
Highlights
• Revenue for the Wines & Spirits business group amounts to 3,261 million
euros representing an increase of 19% based on published figures and 13%
at constant structure and exchange rates

• Profit from recurring operations was 930 million euros, up 22% from 2009

• This performance is primarily the result of sales volume growth

• The operating margin as a percentage of revenue for this business group

increased by 1 point to 29%
 Wines & Spirits
Outlook towards the future

• Wines & Spirits business group intends to continue solid growth in the
volume and value of its sales during the coming months and to consolidate
its market share

• Brands will continue to capitalize on their powerful fundamentals:

excellence, authenticity, an image of luxury and exceptional creativity

• Pay careful attention to controlling production costs, their growth

strategies will be based on their strong ability to innovate and on
substantial media and marketing investments
 DIOR
FASHION
&
LEATHER
GOODS
 Fashion & Leather Goods
Highlights

• Revenue for the Fashion and Leather Goods business group amounted to
7,581 million euros, representing organic growth of 13%, and 20% based on
published figures

• Profit from recurring operations of 2,555 million euros was up 29%

• Exchange rate fluctuations had a positive impact on this business group’s

profit in the amount of 246 million euros

• Operating margin as a percentage of revenue for this business group also

increased by 2 points to 34%
 Fashion & Leather Goods
Outlook towards the future

• Louis Vuitton will maintain its innovative momentum and continue to focus
on its values of perfection and sophistication

• The brand will expand its personalization services. Continue qualititative

development of its global store network and strengthen production
capacities

• Louis Vuitton will open a dedicated boutique and workshop of jewelry

artisans in the Place Vendome in Paris

• The launch of a new digital platform is also planned in the first half
 DIOR
PERFUMES &
COSMETICS
 Perfumes & Cosmetics
Highlights

• The Perfume and Cosmetics business

group recorded revenue for 2010 of 3,076
million euros

• At constant structure and exchange rates,

revenue increased by 9% and 12% based
on published figures

• Profit from recurring operations for this

business group was 332 million euros, an
increase of 14%
 Perfumes & Cosmetics
Highlights
• This growth was driven by Parfums Christian Dior, Guerlain and Parfums
Givenchy all of which posted significantly improved performance

• The operating margin as a percentage of revenue for this business group

remained stable at 11%
 Perfumes & Cosmetics
Outlook towards the future

• Parfums Christian Dior has strong growth

prospects for Miss Dior Cherie which will
benefit from the association with its new
ambassador Natalie Portman.

• Parfums Kenzo will launch a new

fragrance for women while it unveils a
new and very original variant of
FlowerbyKenzo
 Perfumes & Cosmetics
Outlook towards the future

• Benefit will continue to illustrate its dynamic innovative ability through the
year and will expand distribution in all its key markets, the brand will
open its first boutique in New York

• Make Up For Ever will focus on strengthening its two star product lines
Aqua and HD while at the same time expanding its offer in the professional
make-up segment
 DIOR
WATCHES &
JEWELRY
 Watches & Jewelry
Highlights
• Watches and Jewelry saw an increase in revenue of 21% at constant
structure and exchange rates, to 985 million euros, representing an
increase of 29% based on published figures
• Profit from recurring operations for this business group increased twofold
to 128 million euros
• Watches and Jewelry also significantly improved its profitability and
posted an operating margin as a percentage of revenue of 13%,
representing an increase of more than 5 points
 Watches & Jewelry
Outlook for the Future
• In the coming years the Watches and Jewelry business group’s strategy of
profitable growth will be continued and expanded with ambitious targets.
• Communications investments will be continued, including on the Internet and
will remain highly targeted on brands and priority markets.
• The business group will expand its network of boutiques in China and will
develop it selectively in other markets.
• New stores are planned by Hublot in New York on Madison Avenue, TAG Heuer
at Las Vegas City Center, Zenith in Hong Kong and De Beers in Beijing and
Hong Kong among others.
• The TAG Heuer, Hublot and Chaumet brands are initiating a major program of
new stores in Asia.
• Fred will open a boutique in Paris in the Marais district
• A large number of innovations will be unveiled in each of their iconic product
lines, reflecting a continuing effort in creativity and in high quality in all
market segments
 DIOR
RETAIL
 Selective Retailing
Highlights
• Revenue for Selective Retailing amounted to 5,378 million euros,
representing an increase of 19% based on published figures and 14% at
constant structure and exchange rates.
• Profit from recurring operations for this business group was 536 million
euros
• The operating margin as a percentage of revenue for Selective Retailing as
a whole increased by 1 point to 10%
 Selective Retailing
Outlook for the Future
• DFS has a solid outlook for growth in the coming months driven by the
continued positive trends in the past years
• The program to expand and renovate the Gallerias will actively continue in
Macao Four Seasons, Hawaii, Singapore and Okinawa
• Miami Cruiseline will benefit from the contribution of several new cruise ships
and from the trend toward larger and larger vessels
• To continue the solid momentum, Sephora has ambitious objectives for growth
and gains in market share
• The brand is stepping up the rate of store openings in the key countries where it
intends to consolidate its leadership position and in high- potential markets like
China where it wants to rapidly establish strong positions
• Building on the latest developments to reinforce its unique positioning with
demanding Parisian and international customers, Le Bon Marche is targeting
strong growth in its business in the coming years
Operational Risk
Factors
&
Insurance Policy
Strategic & Operational Risks
• Threats to the Group’s image and reputation
• Counterfeit and parallel retail networks
• Constraints related to contractual commitments
• International exposure of the Group
• Loss or damage resulting from the use of the Group’s products
• Seasonality
• Supply sources and strategic competencies
• Information systems
• Industrial and environmental risks
 Insurance Policy
• Property and business interruption insurance

• Transportation insurance

• Third- party liability

• Coverage for special risks

 Financial Risks
• Credit Risks
• Counterparty Risks
• Foreign exchange Risks
• Interest rate Risks
• Equity market Risks
• Liquidity Risks
• Organization of foreign exchange, interest rate and equity market risk
management
 Recent
Developments
&
Prospects
 The Christian Dior Group is very well placed to continue to deliver robust
growth in all of its businesses in the coming years. The Group’s Strategy
will remain focused on communicating the core values of its brands and
building on their successes through a sustained commitment to innovation,
quality and expansion in the most promising markets.

Bolstered by its organization’s ability to adapt quickly to changing

circumstances, and reinforced by the good balance between the Group’s
different businesses and its wide geographical presence, the Christian Dior
Group enters 2012 with confidence and continues to set itself the goal of
strengthening its leadership position in the worldwide luxury goods market.
REFERENCE

www.dior.com
www.facebook.com/dior
THANK YOU!!