Strategic Analysis-Givenchy

Strategic Analysis

I) Introduction

Givenchy is a luxury French brand of clothing, accessories, perfumes and cosmetics with Parfums Givenchy. As one of the leading purveyors of contemporary luxury, Givenchy has been part of the LVMH group since 1987, and in 1933 achieved a total sales worth of $176 million, making it the second largest apparel division ofLVMH after Dior. Its business is based on two certain areas which is "Fashion" and "Fragrances-Cosmetics". In nowadays, Givenchy already became the label of fashion in the world. 

II)Industry Analysis (Luxury goods industry)

Industry structure

A luxury brand or prestige brand is a brand for which a majority of its products are luxury goods. It may also include certain brands whose names are associated with luxury, high price, or high quality, though few, if any, of their goods are currently considered luxury goods. Another market characteristic of luxury goods is their very high sensitivity to economic upturns and downturns, high profit margins as well as prices, and very tightly controlled brands.

History and background

The Very Beginning of Luxury Goods: The idea of luxury goods is linked to aristocrats, either kings in Europe or Emperors in China. Only the nobles and aristocrats could afford luxury goods from the best craftsmen. Kings, landlords and emperors of the world attracted the best craftsmen, artists from all over the country and sometimes even the continent. Louis the XIV in France attracted the most brilliant artists around him in his castle of Versailles.

The Stimulus of Capitalism & Bourgeoisie:

The situation discussed above changed with the emergence of capitalism and the bourgeoisie and the increasing importance of the traders, merchants as well as industrialists in the 18th and 19th Century. With the industrial revolution, the field of luxury has changed dramatically. People have begun to buy not only from one craftsman but from a factory which was producing in hundreds the...