Dior as a Haute Couture brand was one of the first companies to use license agreements, which allowed all products and services labelled under Dior trademark in independent production centers.
Dior is currently looking to reduce its licensing around the world, this is aimed for the brand to become more efficient and manageable. Dior exemption reached 300 in the 1990's, now the brand is focusing to reduce these figures to keep control over their products and servicing to keep their brand image.
Trademarks and Copyrights are a key factor to the construction of a business, which has a legal principle to the company its the Identity and Brand Image thats portray. Dior womenswear and menswear is only sold entirely in Dior Fashion houses, however Groupe Arnault has control of 69.96% of Dior's stock.
The owner Christian Dior was the creator he produce one off designs that could not be copied. His individual designs have extended over the years with shapes, cuts and designs that would however with fashion being such a fast moving industry overlaps and replica can cause big problems to the brand.
Dior stores with a license agreement are eligible to sell ready-to-wear accessories, jewellery, cosmetics and fragrances. Dior has 165 duty free shopping outlets which is how the brand can distribute globally.
Dior has been extremely effected by the tariff decline of imports and exports, the brands operations globally has led them to expanding the brand and having to open new stores in contemporary markets. Due to the pricing of the brand opening a store in countries such as Asia they price of lines has had to be cut down to improve its competition.
Dior as a worldwide selling brand, will need to ensure that they are performing to fair trading standards for the company to be beneficial in the future. All members of staff have to be treated equally to keep a positive working platform in the market to protect their brand
Ethical:
Dior as a brand and many other Haute Couture companies pay very little attention to ethical issues with in the production and advertising of their products. Overall Couture brand having such a high price range and premiums of ready to wear products that have no assurance of if the produce was fairly or to an ethical manufacturing quality. Luxury brands can be jeopardised as high street and economy fashion exceed them in this area therefore these brands need to improve their trading guideline.
Dior relies on consumer by the best of the products, therefore there consumers are buying less at a higher cost. Dior one off couture piece can cost anything from £16,000 which is an expensive piece of clothing however if they considered consolidating ethical strategies into their supply chain.
Ethical Issue within the Brand can be thought out as any other following, the brands image the way Dior is represented to the public. Culture the brand has to aim to introduce the collection to a more ethical background, also the consumption and waste that the brand can disuse. The counterfeits and copyrights which can lose the brand business and give the brand a cheap name. The advertising of the brand need to be appropriate to be released in all areas of the globe.
Economic:
Dior has had many inspiring developing designers over the past 60 years with a good understanding of economy in the fashion industry. The industry itself it worth £26 billion in the UK economy. Most of the positive expenditure goes into advertising and promoting brands. Dior has put a fair amount of money into its advertising, magazines, billboards and online publicity platforms that the brand relies on this to sell their products, to increase profit income you have to whiling to spend.
In a 6 month time frame, Dior had produced and published 3 advert campaigns, one main advert being 'J'adore' Gold has been estimated to cost at least £10-12 thousand pound alone, successfully the advert has beneficial in the media with over 22 million views on Youtube.
Dior was hugely effected by Americas economic decline, as their sales figures dropped by 8%. America being such a large economy it had a huge reflection on profitable income for Couture fashion houses. Economic crisis can cause a brand like Dior a huge set back and lead them to find business elsewhere which can cost a lot of money.
Dior in Hong Kong
Dior have been targeting China due to its high economic growth,it has been estimated to be worth at least $200 Billion in 2016. Many luxury brands are finding success in China and Asia were the economy is blooming.
Social:
The brand Dior is a high end luxury brand which is seated at the top of the fashion hierarchy their for a moving business, networking and contacts are very important to communicate with media, buyers and other company competitors. Dior has opened pop up store all across Europe, America and China, hold in store events for example last year the fairytale couture dress fitting was exposed at a large social group event which had many visiter.
Moscow exhibitions shows Dior Heritage
Exhibitions take place around the world to indulge the amazing history behind the designs and collection of Christian Dior. Other events in Shanghai 'Miss Dior exhibition', these sort of affairs allow the consumers to learn more about the product- how it was made and appreciate the designs.
The exhibition was launched to show the large market in China, that is emerging into more and more Fashion Houses. China has now published their own version of Vogue also followed by 2012 Dior Spring/Summer Collection.
Technology:
Technology is such a large aspect of everyday life, technology is the easiest and fastest way to catch up or find out information all around the world. It has become such an important role within the fashion promotion. Dior has more room to expand its online branding, in particular Dior has many social networking pages and an online website with all current information and collection. The brand aims to keep on top of the market, keeping all media current and accessible. Dior already sustaining a huge presence online across all publication. Emerging MARKETS have had a huge influence on the way brand can communicate with their audience: Facebook, Twitter, Instagram, Website, Blogs and Apps.
Diors marketing team aspire to go viral, publishing the brand of all online sectors generating the brand dynamics, relying on people to share, re-tweet, post and follow the brand.
Diorsnow 2014 Technology Film
Competitive Advantage:
Dior has a huge influence on the Couture fashion sector, the brand however as a high amount of competitors which has a impact of the overall brand sales. Competitors such as Chanel, Givenchy and Yves Saint Laurent who hold strong position within fashion certain audiences can be pushed into different directions which can cause devastation for other brands.
Chanel is also one of the biggest competitors in the couture world, being place on par with Dior. This has effected Dior in many department stores such as Selfridges, Harrods, Champs Elysee and Printemps Department Store the two brands are placed opposite each other. Main competition of the brand perfume are Chanel No.5 and J'adore which are two of the top selling scents worldwide.
Unique Selling Proposition are very important when competing against other brands, so consumers can define spending their money on the right brand. Advertising is important with competitive advantage as it the first visualisation most people get of the product which can boost sales. Having the right celebrity endorsement always creates excitement in the market. Jennifer Lawrence on the red carpet wearing the current couture Dior dresses has now become the face of Dior.
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