COMPANY PROFILE -Christian Dior SA
Business Sector :Fashion & Lifestyle, Apparel, Accessories
Operating Geography :Europe, France, Global
About Christian Dior SA :Christian Dior SA is a Paris based luxury goods company which was founded in 1946 and currently mainly deals in 6 product lines - Fashion and Leather Goods, Christian Dior Couture, Selective Retailing, Watches and Jewellery, Wines and Spirits and Perfumes and Cosmetics. The Company has a vast distribution network of company-owned stores and licences distributors in Europe, USA, Japan and Asia-Pacific. It has a total of 84,981 employees.
Christian Dior SA Revenue :
€46.8 billion – FY ending December 2018 (y-o-y growth 0.25%)
€43,666 billion – FY ending December 2017
Competitive Analysis of Christian Dior SA
|1. Exclusiveness of its products|
2. Ownership of exceptional brands e.g. Louis Vuitton, perfumes Christian Dior and Zenith
3. Presence of real estate expertise across group
4. Maintenance of financial flexibility
|1. Presence limited to US, Europe, Japan and some parts of Asia
2. Seasonality of demand
3. Foreign Exchange risk
|1. Chance of consolidation and buying smaller competitor|
2. Expansion in male product portfolio
3. Increasing technological innovation
4. Expansion in emerging markets- Taiwan, Thailand and India
|1. Counterfeiting and parallel distribution
2. International exposure and uncertainties
3. Fluctuations in number of tourists
4. Strong competition from brands such as Chanel
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Detailed SWOT Analysis of Christian Dior SA
1) Chance of consolidation and buying smaller competitor: The massive global slowdown especially in luxury goods industry has resulted in different consumer purchasing behaviour. In many parts of the world the focus has shifted to from absolute luxury brands to affordable luxury brands. In such scenario the cash-rich fashion houses can look to grow by acquiring smaller competitors.
2) Expansion in male product portfolio: Majority of the products a focused towards female population. The Group manufactures the accessories and apparels for male consumers but there still exist an opportunity to be more innovative and expand male-focused product portfolio.
3) Increasing technological innovation: The present generation is probably most tech-savvy of all times. The popularity of smart watches is an indication of that. The Group must try to bring in more technological innovation in its products. The recent purchase of stakes in Rimowa GmbH that specialises in electronic baggage tag technology by LVMH Moët Hennessy Louis Vuitton SA is a step in that direction.
4) Expansion in emerging markets- Taiwan, Thailand and India: The young populations in the mentioned countries have started to buy luxury goods in search of exclusivity and uniqueness. However the key to meeting their demand lies in Omni-channel presence.
1) Counterfeiting and parallel distribution: Goods selling from illegal channels or fake goods may damage the brand image and shake consumer brand perception. This has directly impact on revenue and earnings. The Group must take all necessary steps to counter this.
2) International exposure and uncertainties: The group is subjected to risks and uncertainties all around the globe. The dipping oil-prices leading to major currency shake-ups, terrorist attacks in France and economic turmoil created by Brexit all impacted the consumer sentiments and thereby the sales of the group.
3) Fluctuations in number of tourists: The weak economic environment along with geopolitical instability adversely affected the number of tourists. In Taiwan massive reduction in Chinese tourists led to lower sales figure for the company.
4) Strong competition from brands such as Chanel: Brands such Chanel have kept up their pace with changing times and pose a significant challenge to the future growth prospects of Christian Dior Group.
1. Dior Finance: https://www.dior-finance.com/en-US/Documentation/InformationsReglementees/01,02_RapportsFinanciers.aspx/
2. Markets Ft: https://markets.ft.com/data/equities/tearsheet/profile?s=CDI:PAR
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References used in Christian Dior SA Analysis Report
1. Christian Dior annual report 2018 - http://www.dior-finance.com/ManagedDocument/en-US/DIOR_VA_interactif-2.pdf
2. Christian Dior annual report 2017 - http://www.dior-finance.com/ManagedDocument/en-US/DIOR_VA_interactif.pdf
3. Christian Dior: Financial Release 2018 Results - https://www.globenewswire.com/news-release/2019/01/29/1707124/0/en/Christian-Dior-Financial-Release-2018-Results.html
4. Christian Dior employee count - https://money.cnn.com/quote/profile/profile.html?symb=CHDRY
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Christian Dior SA SWOT & PESTLE Analysis - SWOT & PESTLE.COM
SWOT & PESTLE.com (2020). Christian Dior SA SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/christian-dior-sa/ [Accessed 29 Mar, 2020].
In-text: (SWOT & PESTLE.com, 2020)
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Christian Dior SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.