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Perfume and France from 80 ’ s to 90 ’ s Competition Internationalization. Competition in France. Definition of a competitive market:
French cosmetic industry is world’s fourth largest exporter. 53% of 2003 production exported. Sold in 202 Countries. Represents $8.57 billion in sales
Marked decline in national saving fund (SICAV)-
1993- it accounted for 3000 billion Francs of total GNP (7000 billion Francs)
Sustained economic growth-
Retained good standard of living for French
also state protection
High levels of exports- 6.1% of world exports behind Japan and Germany [1st] France [2nd]
Shift from state ownership to private business
The French economy opened up to world markets making France the world’s fourth largest exporter of goods and third largest exporter of services
But opening up markets always gives rise to fears of competition for French businesses and constraints placed on economic policy
Founder : Gabrielle "Coco" Chanel opened her first
boutique in 1913
Company type: Private, independent company,
Thus, financial results and strategy are not featured
Owners: These have changed over the years. Today the main players are:
Chairman: Alain Wertheimer
CEO: Francoise Montenay
President: Maureen Chiquet (in 2003)
Top competitors: Gucci, Prada, LVMH
Company audience: shifted to a younger market after Coco Chanel died in 1971
Chanel Owns: 100 boutiques worldwide:
more than 35 are in japan.
Chanel also owns Eres and Paraffection
Chanel and going International
With regard to the international sector, Chanel
has been open to international interests, and not
let French ideals come in the way:
Chanel was interested in getting involved int.
Chanel's first post-war collection was presented in 1954. The French were not impressed; the Americans loved it.
Karl Lagerfeld, who was hired away from Chloe by the House of Chanel in, revitalized the name and make it an international brand.
Won 2004 Award:
“is now a global businessChanel”
Today Chanel No.5 sells a bottle every 30 seconds
Ernest Beaux created Chanel No. 5 for Coco Chanel
“Money for me has only one sound: liberty.“Gabrielle Chanel
From the beginning:
Gabrielle “coco” was able to finance herself through
Arthur 'Boy' Capel. He financed her move from her
Balsans studio to her shop in Paris in Rue Carbon.
At the height of her fame in Chanel employed 4,000 workers
(compare to today: Worldwide, Chanel employs approximately 10,000)
During the Great depression: 1930’s:
As the thirties drew to a close, Chanel became very bitter about her financial situation. The U.S.A were interested in the Workers at Chanel stirked in her office, and got locked in
All Chanel stored were closed and all workers were laid off
In the 20th century:
Perfume started to be mass producedAt the height of her fame in 1935 Chanel employed 4,000 workers and sold 28,000 models world-wide every year.
The business is split into the following segments:
The chairman (Bernard Arnault) as well as several directors are members of the board of both companies.
Christian Dior's has control of the group as it owns 42.5% of the shares .
For the fiscal year of 2004 the company generated total revenues of E13,208 million thus representing organic growth of 11% over 2003.
Between 2002 and 2004, its net income grew more than 80%.
Some of the biggest designers have followed one another at the head of the group, beginning with Christian Dior himself, then Yves Saint-Laurent, Marc Bohan, Gianfranco Ferré and John Galliano.
2000-Diorever2000-Remember Me (W)2001-Fahrenheit Summer (M)
2001-Higher (M)2002-Forever and Ever (W)2002-Addict (W)2002-Dune Sun (W)2002-J'Adore Eau d'Ete (W)2003-ILove Dior (W)2003-Chris 1947 (W)2003-L'Or J'Adore (W)2003-Fahrenheit O Degree (M)2003-J'Adore New Eau de Toilette (W)2003-J'Adore So Dior (W)2003 -Higher Energy (M)2003 -Addict (W)2003 -Lily Dior (W)2004 -Addict Eau Fraiche (W)2004 -Fahrenheit Fresh (M)2004 -Eau Noire (M)2004 -Cologne Blanche(M)2004 -Boise d'Argent (M)2004 -Pure Poison (M)2004 -Dior Me, Dior Me Not (W)2005 -Miss Dior Cherie(W)Dior Perfumes
In 1947 Christian Dior perfume company is set up and he christens the first perfume "Miss Dior".