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Sophie Chiu Oct.8th.2007
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Contents
Situation Review
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2
Products strategy
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Strength and Weakness
Luxury goods market in Asia
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Yves Saint Laurent prospects
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Situation Review
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Yves Saint Laurent

• Founded in 1962 by Yves Saint Laurent and Pierre
  Berge.
• Negative effects of fragile health, depression,
  drags and alcohol from Yves Saint Laurent
  himself, YSL started to fade and took a downward
  turn by the late 1980s.
• In 1999, Gucci Group entirely owned and
  controlled YSL.
• Gucci Gorup bought YSL ready-to-wear range for
  US 1 Billion. It adopted strategic relationship
  with Pinault-Printempt-Redoute(PPR) to avoid
  hostile takeover by Louis Vuitton Manet
  Hennessy(LVMH).
• YSL FIRST
• Popularize ready-to-wear.
• Use black models in runway shows.
• Create fashion trends (i.e safari jackets,
  beatnik look)
• Create idea of wearing silhouettes from 1920s,
  30s and 40s.

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Yves Saint Laurent

• Domenico De Sole
• Chief Executive Officer and Chairman of
  Management board for the Gucci Group.
• Hired in 1984 as CEO in Gucci America.
• Leading role in re-establishing the exclusivity
  and profitability of the Gucci Brand through
  taking stricter control over distribution.
• Adopted similar strategy to aim Yves Saint
  Laurent as one of successful brand in luxury
  industry.

• Tom Ford
• Creative Director for both Gucci and Yves Saint
  Laurent.
• Control over image and positioning of the brands,
  including all products categories and
  communication activities.

As a designer, my goal is to create an object
that is so beautiful that people feel that they
Must have it, cannot do without itif I create a
model that doesnt sell, then I have failed.
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Gucci Group ownership
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YSL Strategy
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Global strategy

• Stable supportive extension of the YSL
  products under the Gucci Group.
• YSL handbags are produced at Gucci headquarters
  in Florence
• Sergio Rossi produce shoes for both YSL and Gucci
• Bourcheron produce timepieces
• Safilo produce sunglasses
• Competitive global price
• Provide possible standardized price which
  effected by exchange rate or luxury goods tax
  applied by the host country only.
• Mass Advertising
• Marketing strategy on global magazine and
  celebrities, which appeals to younger customers
  and female customer with good income.

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Global strategy

• Global store locator
• 63 locators in 16 countries worldwide.

Europe France Germany Italy Russia United
Kingdom Ukraine Spain
Asia China Japan Hong Kong Indonesia Taiwan
America United States
Middle East United Arab Emirates Turkey Kuwait
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Global strategy

• Directly operated store strategy
• Same architects globally and monthly
  merchandising charts,
• explaining what products should be highlighted,
  and what sales tools should be utilized.
• Do not have to rely on the middleman, permits YSL
  to open its door
• to a wider segment.
• Lens Appeal
• Photograph including celebrities who wears YSL
  appeals customers who can afford luxury to lure
  their desires.
• Termination of license
• The Gucci Group terminated 152 licenses number
  down from 167 to 15, to relaunch YSL as exclusive
  and luxurious.

To remain the Gucci Group consistent global
strategy
9 times out of 10 enhances the product
Maintain consistency and quality across the globe
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Strength and Weakness
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Strength Opportunities

• Strength
• YSL Beauté is a successful brand, the beauty
  product are essential to the brand.
• Tom Ford has had both experience and success with
  the Gucci brand he is also a brand himself.
• YSL has regained control over distribution.
• YSL can use Guccis existing channels and
  experience to produce and sell to the Asia
  market.
• YSL has strong global brand name that has global
  recognition.
• YSL are supported and run by the Gucci Group.
• Opportunities
• Asia is a massive market that is drawn to
  designer brands.
• YSL offers the option to purchase online,
  providing fast and direct sell to luxury buyers.

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Weakness Threat

• Weakness
• YSL has been as a brand aimed at middle aged
  women for many years, ambition of Tom Ford to
  attract younger market is difficult.
• YSLs direct competitor Chanel has a strong
  presence in Asia.
• YSL image was damaged during the past years
  preceding the Gucci Group takeover through poor
  distribution decisions.
• Threat
• Japan is still recovering from the recession of
  1997, and this would effect YSL as Japan is the
  most success in Asia.
• Decline revenues from duty free shop.
• Political and economic turmoil had a negative
  effect on consumer spending.

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Luxury goods market in Asia
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Aisa Luxury market
Brand awareness
Source Asian market research, 2002

• 14 of all respondents from Hong Kong purchased
  more than one luxury brand.
• 15 from Singapore purchased more than one
  luxury brand.
• 12 from Korea puchased more than one luxury
  brand.

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Asia Luxury market

• The Copy market
• Increasing demand for luxury goods has spurred
  the production of imitations.
• Counterfeit products undermine the brand value by
  cheapening the image.
• 18 consumers asked in this survey acknowledged
  they did fake purchase.
• Prada and Ralph Lauren have taken court action to
  ban imitations of their products.

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Yves Saint Laurent Prospects in Asia
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Yves Saint Laurent in Asia

• 24 store locators in Asia region
• Existing awareness to launch YSL as more
  attractive luxury.
• YSL is not yet widely recognised in Asia, it
  means more opportunities on creating image and
  repositioning YSL.
• Highly demand on luxury goods from Asian
  consumers, new image and style of YSL would be
  accepted by increased presence.

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Yves Saint Laurent in Asia

• Huge potential in China luxury market based on
  two advantages
• Highly interest in buying Western brands.
• Havent effected by global recession.
• Success Gucci image in Asia, YSL would use same
  connection to move into Asia market more
  efficiently.

What is elegance? a black turtleneck, pants, a
raincoat Yves Saint
Laurent
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Thank You!

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