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Copy of Groupe Kering
Transcript of Copy of Groupe Kering
Presence of 39 stores Louis Vuitton in China and increase of the sales of 10 % in the first quarter 2014.
Louis Vuitton would be the luxury brand with the highest value
Increase online sales for Prada, Burberry and Armani
Stores opening Chanel, Marc Jacob, Burberry, Celine, Jimmy Choo in Sao Paulo and for Hermes in Mumbai in 2011.
Porter's 5 forces
Bargaining power of customers
Threats of new entrants
Bargaining power of suppliers
The luxury market meets criteria of rarity and exclusivity
Exclusive distribution strategies.
The price is not a key factor in the purchase decision.
Barriers to entry
Response of competitors
LVMH - Richemont - Prada - Swatch Group
Chanel - Hermes - Armani - Boss -
The luxury industry is a market where suppliers have a strong bargaining power because there, quality of the product, materials used and rarity of products justify high prices. The quality of raw materials depends on the supplier. It is itself very limited because it is used for high-end products, in limited editions. Consequently, it legitimizes the power of suppliers.
Luxury brands do not try to sell their products but also the image that they convey as well as the distinctive sign they provide when they are used.
Products are looked for by the customers for their rarity and their symbolism, not for their use and their feature.
One of the world’s leaders in the luxury industry
Wide range of products and brands
The main sources of income are concentrated in Western Europe
⁃ New identity
⁃ Sport & Lifestyle segment
Acquisition of new brands or make partnerships
Emerging countries and emerging markets
Counterfeit products (6 billion loss)
Rising cost of labour
Differentiation and access to distribution channels.
Established firms with sufficient resources to react, and significant fixed assets
Presence of several actors well established at the international level and with substantial resources, which share the market.
Seniority and longevity of brands in consumers' minds.
High cost of supply and production in the luxury industry.
Unstable and worrisome world economy and fragility of the European economies.
Increase of the purchasing power of the rich
Significant financial assistance received from government. Direct economic value generated and distributed.
Very important global concern.
Demand for transparency and ethics is a reality and an upward trend.
The consumer expectation of ecological behavior on behalf of companies is extremely strong, particularly towards sports and luxury brands, which have to embody for them the perfection and certain ideal of life.
Global increase of the ecommerce
Internet culture, very favorable to luxury brands and sports, development of commercial sites, applications devoted to communication.
⁃Increase of the Asian fortunes and the number of millionaires
Pronounced taste by middle classes for leisure activities and luxury accessories. There’s also a democratization of the luxury.
Labour Practices – Human rights – Society – Product responsibility (support employees, training & education, occupational health & safety, diversity and equality).
Level of interest
Previously known as Pinault-Printemps-Redoute (PPR)
French-based multinational company
Worldwide brand portfolio in 120 countries including Luxury and Sport & Lifestyle segments.
Founded in 1963 by François Pinault and is now runing by his son François-Henri Pinault
In March 2013, PPR was renamed as Kering to complete the refocusing of the group
Central & local governments
Providers of capital
Board of directors
Stakeholders & Environment
Kering is really involved environmentally speaking as its major stakeholders prove it
World Business Council for Sustainable Development
Sustainable Apparel Coalition
Entreprise pour l’Environnement
2012 Copenhagen Fashion Summit:
Good image of a luxury company
Brand with globally fame and lots of customers
The renaming action has attracted more attention and popularity
Image improve by concerning environmental issues
Prducts and services
High-end design brand e.g. Gucci, Balencia, Bottega Veneta, YSL
Cutting Edge fashion and high quality, eco friendly products
Mismatch of luxury and sport brand
Turnover of almost 10 Billion Euros
More focused and more profitable
More globalized. The proportion of its revenue that comes from France has dropped from 41% to 4%
In 2013, the profits slightly slumped, reflecting sharply weaker sales at Puma and slowdown in growth at Gucci
Vision and leadership
Renamed - gain global recognition, shift corporate culture
Spot new brand with potential while continuing to nurture existing one
Skillfulls leaders for expanding brands
Cooperation with Italian Yoox to establish online shops
Well structured training system and awarding regulations
Flexibility for individual brands
Five-year social and environmental plan - the reduction of carbon dioxide emissions, waste and water ; sourcing of raw materials ; hazardous chemicals and materials ; and paper and packaging
"Gucci" pioneered to voluntarily initiate a CSR certification
The win of forum for Responsible Investment (FIR) Prize of Analysts for Socially Responsible Investment