5 - The French Model

Question 1

French Model characteristics

Answer 1

social values: tradition, heritage + individualism

product: couture + accessories
image: provocation + art (art de vivre = art of living)

= couture creates the dream

Question 2

chanel’s style

Answer 2

embodied the essence of the modern working woman

• adapted mens sportswear to women dress: jersey, short skirts, no corset
• “flexibility is power”
• famous matelassé products

Question 3

evolution of LV’s business model

Answer 3

to sustain luxury positioning:

1. combined the injection of fashionability (ex: collabs) with the launch of heritage focused campaigns
2. increased upstream control

Question 4

french growth rationale

Answer 4

clothing is an image builder, not a real business

growth through brand extension - fragrances, leather goods, jewelry, eyewear…

high level of supply chain control

conglomerate strategy

strong effort to rejuvenate brands to better target millennials + gen Z

Question 5

importance of Worth + Poiret

Answer 5

Worth: from tailor to couturier

• opened first HC maison in Paris
• 1st to use label to sign dresses
• 1st to run a show

Poiret:

• first couturier to propose total look
• ad campaigns

Question 6

conglomerate strategy advantages

Answer 6

financial assets

talents attraction

sharing of managerial practices

worldwide distribution and production

experience + bargaining power with suppliers, distributors and media

balance of risk through a portfolio of brands

internal segmentation of the market: different proposals for the same customer

Question 7

conglomerate strategy disadvantages

Answer 7

short-term orientation compared to family-run businesses

high turnover of Top Managers and Creative Directors

risk of brand dilution (too much pressure to grow)

difficulty in replicating successful stories (each brand should have its own way)