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.

ACCESSORIES HAUTE COUTURE WEDDING DRESSES 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 POD Exceptional service Training programs &close evaluation Interactive, convincing & listening skills Long term customer relation Top quality 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 Maintain brand exclusivity Goal Brand extension in new and existing markets Maintain brand exclusivity

Asia Pacific as it is star performer Recommendations “World health report 2010” Merrill Lynch Asia Pacific as it is star performer HNWI grew 17.1 percent in 2009 Contraction in world GDP Asia , HNWI grew by 25.8 percent 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”.

Corporate level strategy Business level strategy 1. Geographic expansion by opening new retail stores 2. Expansion and diversification of brand portfolio. For instance, hotels, fragrance, yacht designing 3. Maintain an image of true luxury and exclusivity Business level strategy 1.Each market presented different opportunities and challenges 2. Adopted different business models for each market i. Direct ownership of stores in Paris and Beirut ii. Strategic alliance with Dubai Properties iii Licensing with fragrance subsidiary, Beaute Prestige International iv. Third party distribution as the brand is available at 45 multi-brand retailers Marketing strategy 1. Targets rich and famous fashion lovers with glamorous lifestyles 2. 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

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