Dior is a luxury clothing company. It is a French company and was established on 16th December 1946. It currently designs and retails footwear, jewelry, timepieces, fragrance, leather goods, makeup, skincare products, and fashion accessories. The brand also while maintains its tradition as a creator of haute-couture under the Christian Dior Couture division. Its products are famous globally and are sold using different retail outlets of the brand with great value. The brand has been the market leader due to its elegance and timeless femininity.
This article will demonstrate the history of the brand, its current marketing strategy, brand future outlook, etc. The article will also discuss certain stats about the company to understand the net worth of the company and the strategies company has used and still using to lead the list of brands offering luxury and quality products to their customers.
HISTORICAL BACKGROUND OF DIOR
Dior was founded by Christian Dior on 16th December 1946 in “a private house” at 30 Avenue Montaigne in Paris. The house of Dior launched its first collection on February 12th for Spring / Summer 1947 at the company’s headquarters. Many applauded the collection terming it a symbol of uniqueness. It got instant success. The collection had a stylish look and became famous during the 1950s. It came up with full skirts, tight waists, and soft shoulders. The collection became prominent in Hollywood in later years.
Christian Dior died in 1957. After him, 21-year-old Yves Saint Laurent took the charge of the company and came up with new collections using the same fabrics, keeping the proportions and silhouettes relatively similar. As compared from the past, Saint Laurent’s collections featured pieces that were lighter, softer, and easier to wear. These designs became more popular due to his success at the fashion house until 1960.
Later, Marc Bohan joined the company. The brand appointed him as a creative head in the late 1960s. He adopted a more conservative style. Bohan was actually the person who kept the Dior label at the forefront of fashion. Many experts believe that he was the one who took the company out of the crisis. He continued to produce “wearable, elegant clothes” and with the help of his Bohan’s assistant Philippe Guibourgé, launched the brand’s first French ready-to-wear collection called “Miss Dior” in 1967.
During 1990, Dior:
- Expanded to the New York City, Los Angeles, and Tokyo shopping districts.
- Increased its revenue constantly and rose from 129.3 million USD to 177 million USD till 1995.
- Made a gift on behalf of Bernadette Chirac (wife of former French President Jacques Chirac) for the Princess of Wales. It was a unique handbag.
- Launched the bag in a larger series. It also changed the name to the “Lady Dior” in 1996 with Princess Diana’s blessing selling two hundred thousand models in two years.
THE HOUSE OF DIOR AFTER 2000
During 21st century, Dior:
- Opened a remodelled boutique on 30 Avenue Montaigne in 2001.
- Introduced watches in the same year consisting of “Chris 47 Aluminum” line, “Malice” and “Riva” watches that later came as a series of “Malice Sparkling” and “Riva Sparkling” spin-off collections.
- Introduced men’s fragrance in 2001 named “Higher”.
- Expanded its operation to more than 130 locations by the end of 2000.
- Launched The “Miss Dior Chérie” perfume and the “Dior Homme” fragrance in 2005.
- Carried out different fashions shows with an improved and diversified range of luxury products during 2007-2017 using the services of Raf Simons, Kris Van Assche, Rihanna, Maria Grazia Chiuri, etc.
- Gave a new look to its famous boutiques in many parts of Europe like Madrid in 2018.
BUSINESS MODEL OF DIOR BRAND
The House of Dior operates on a business model that offers its luxury products using three segments which include Wholesale, Retail & Other activities, and license Royalties. These in return bring revenues for the business. It also produces the most exclusive and stylish luxury products for its customers. These include accessories, clothing, and beauty products. The company uses its business model to ensure effective performance and satisfaction for its customers. It has based its business model on the fact that customers who are brand conscious and fashion-savvy will buy the products of the brand at the price it demands from them.
CURRENT BRAND IDENTITY OF THE BRAND
It has more than 210 outlets globally and sells its products across the globe. The brand image of Dior is very strong. It is famous for its fashion products for women. But, it also manufactures products for men and kids. The brand has a competitive advantage for its strong visibility and reliability. Its branding provides clear elements of exclusive creation, quality, historical heritage, class, elegance, and, luxury.
The brand’s identity is luxury products for the high-income class. It promotes concepts of feminity and glamour. The brand also showcases the French tradition of luxury and quality products.
MARKETING MIX OF DIOR
The brand offers its luxury products to its prime customers. It has a strong brand value and carries a rich heritage in challenging current fashion trends. The brand uses a value-based branding strategy to position its products. For understanding this in detail, a marketing mix of product, price, place, and, promotion is discussed below:
It offers fashion and beauty products for women and men. Most of them include leather products, footwear, fashion accessories, ready-to-wear clothing, etc. It also has produced famous fragrances like Miss Dior and Poison for women and, Jules and Higher for men.
It charges a relatively high price for most of its products.
It has targeted markets for the US, Canada, Asia, and Europe. The brand has also a huge customer base in China and some countries of Africa. It has prime locations in NewYork, London, Toronto, Beijing and, Paris. Dior also sells its products through its website dior.com. It believes in one-to-one and direct selling method for its products
The brand has invested heavily on the advertising campaigns of the products it has for its customers. From email marketing to celebrity endorsement, the brand has used most effective promotion strategies to create a strong brand image in list of most valuable brands.Its promotion campaigns have celebrities like:
MARKETING AND ADVERTISING STRATEGY OF DIOR
The brand is using channels like social media, online advertising, billboards, TV commercials for promotion campaigns. Time and again it has come up with new campaigns like:
Miss Dior The New Eau de Parfum
J’adore Dior (2007)
Hypnotic Poison (2008)
Dior Dune (1995)
Dior Addict to Life (2011)
The brand has also used magazines, social media and TV commercials for its marketing campaigns.
Founded: 16th December 1946
CEO: Sidney Toledano
Headquarters: Paris, France
Women’s skincare products
Women’s makeup products
The House of Dior has a strong brand image. It holds high prestige and value when it comes to choosing fashion products. Especially, it makes beauty items for women that give this brand an edge over many of its competitors. The marketing mix and business model of the brand are strong. It is currently functioning under LVMH which is the world’s largest luxury group. Dior itself holds 42.36% shares of it and 59.01% voting rights within LVMH. Overall, the brand has the most strong portfolio allowing it to lead the fashion industry for a very long period of time.