ELIE SAAB: GROWTH OF A GLOBAL LUXURY BRAND

Sania Moazzam

Case Facts

•In July 2008, ES opened its first UK boutique at Harrods

•In September 2009, ES signed with Weyves International Ltd and Oceanco, a mega yachting company, to partner on the creation of three mega yachts.

•In June 2010, ES opened its first flagship store in Dubai Mall

•By 2010, there were four major product line of ES; Haute Couture, RTW, Accessories and Wedding Dresses.

HAUTE COUTURE

WEDDING DRESSES

ACCESSORIES

RTW

Case Facts

•Annual communication budget represented 15% of total sales, out of which 10% was spent on fashion shows.

•In 2010, ES positioned itself as the elite class luxury brand for royalty and celebrities.

•ES targeted the top tier which consisted of elite people which accounted about 25% of total luxury spending.

•The price of custom made gown started with $30,000 and rose above $1,000,000.

Elie Saab

•Born in 1964

•Self Trained

•1982 Beirut Fashion Label

•1997 Italian Camera Nazionale della Moda

•2002 Halle Berry

•2003 Chambre Syndicale de la Haute Couture

Qualitative Statements

• Luxury brands evoked exclusivity, enjoyed high brand awareness and perceived quality and retained sales levels and customer loyalty.

• At yacht showcase Saab explained his expansion in the following way:-– I always sought to incarnate my vision of

modernity and elegance beyond the conventional limits of fashion.

Qualitative Statements

• Donald Potard of Weyves Couture commented– We are delighted about this collaboration with the

fashion house of ES• The Haute Couture product is a lifetime experience.

Clients receive personalized service from ES • Cultural shift toward more casual dressing • Continue to follow the trends and needs of today’s

woman and be able to satisfy her needs and desires

Problems

• PODExceptional service Top quality

Training programs

&close evaluation

Interactive,

convincing &

listening skills

Long term customer

relation

Efficient production

process for lesser

delivery time

Customer value

Problems

• NO external factors’ knowledge– Expanding BUT no third party reliance

• Meet growing demand for the RTW, June 2010– Study opportunities & design strategies

• RTW not at all couture houses yet higher return on investment– Couture Sales increased by 41% (Niche Market)– RTW Sales increased by 59%– Couture gowns rarely sold– THUS need to re-evaluate the marketing strategy

Recommendations

Goal

Brand extension in new and existing markets

Maintain brand exclusivity

Recommendations

Trend to mix luxury has also increased in 2010

“You see a women wearing a $6000 Channel Jacket on top of a $90 pair of jeans from Zara”.

HNWI grew 17.1 percent in 2009

Contraction in world GDP Asia , HNWI grew by 25.8 percent“World health report 2010”

Merrill Lynch Asia Pacific as it is star performer

Corporate level strategy

1. Geographic expansion by opening new retail stores

2. Expansion and diversification of brand portfolio. For instance, hotels, fragrance, yacht

designing3. Maintain an image of true luxury and

exclusivity

Business level strategy1.Each market presented different opportunities and

challenges2. Adopted different business models for each market

i. Direct ownership of stores in Paris and Beirutii. Strategic alliance with Dubai Propertiesiii Licensing with fragrance subsidiary, Beaute Prestige Internationaliv. Third party distribution as the brand is available at 45 multi-brand retailers

Marketing strategy1. Targets rich and famous fashion lovers with glamorous lifestyles2. Positioned as a premiere luxury brand for celebrities and royalty

3. Role of Communications and PR team is to advertise, organize fashion shows and dress celebrities

4. Saab interacts personally with celebrities and provides personalized service

Thank You