How Did The Luxury Dior Empire Get Rich?

What is Christine Dio?

It is a master tailor. It is a Paris fashion house. It is a highly ordered French product. It also sells clothes, handbags, shoes, jewelry, watches, perfumes, sunglasses, and even pens and mobiles all over the world.

Since 1984, Christine Dio has been pformed into a legend of modern commercial empire by the small fashion company on the verge of collapse in the territory of Bernard Arnault.

A few years ago, when Sini Doridano (Sidney Toledano), dressed in black coats, walked in a nameless street in Moscow's city, there was snow in the sky, the streets were silent, and the whole city was as desolate as a small village.

This is Moscow's first visit to Dori Dan Nur. It is clear that this red city is completely different from the familiar Paris, New York and Tokyo.

But he is a smart businessman. He always sniffes business opportunities.

"A brand should not only cater to consumers, but also foresee the needs of consumers and invest in the market that may not grow in real terms in the next 6 years."

He once summed up his investment judgment.

So he chose Moscow.

The products and services provided by Dior fashion company: Haute Couture senior custom, Dori Dan Nur is the CEO of famous fashion company Dior (Christian Dior Couture). After joining the company for 15 years, he has devoted a large portion of his energies to the establishment of Dior sales network, developing new markets and new customers, and achieving remarkable results.

Dior is no stranger to Moscow.

Since 1947, when the whole world has begun to sweep Dior's "new look", Dior has also made a great contribution in Moscow.

In 1959, Dior even held its first fashion show in Moscow.

But the cold war began in 1960, leaving fashion and Commerce in the second place. The Soviet Union focused on spy satellites instead of Dior fashion.

40 years later, the Soviet Union has become Russia, and Moscow has become another rich city because it has gathered a large number of oil and financial tycoons.

But when Dori Dan Nur Di came here, the whole city did not seem to be rich enough to support Dior in opening a direct store.

Everyone asked him, "why do you want to shop there?"

A bath towel and a luxury Luxe Empire Dior in Moscow's first fashion shop opened in 1989, and as a result of Dior's recall of Russia's agent a few years ago (this is also a global plan), its direct shops have also entered Russia for the first time.

In October 2006, the Dior boutique opened in the Red Square in the center of Moscow.

Like shops in Beijing, Shanghai, Dubai and other places, Dior has made rapid sales in Moscow.

In addition to Dior's traditional high fashion, consumers here prefer handbags and jewelry, which means that Dior can get higher sales profits in these areas.

In mid 2008, Dior also took the lead in issuing more than 3000 euros mobile phones in Russia, and the sales volume was amazing.

According to the latest financial data from Christian Dior Group, Dior fashion company achieved sales revenue of 564 million euros in the first 9 months of 2008, an increase of 3.5% over the same period last year (calculated at constant exchange rate), and the entire Dior group, including LVMH (Mo t Hennessy-Louis Vuitton, Lu Wei Moxuan group), achieved 12 billion 505 million euros in sales revenue in the first 9 months, an increase of 10% over the previous 9 months.

Financial reports said that in the face of the severe economic crisis, Dior group still achieved strong growth in its performance, mainly due to the eye-catching performance of emerging markets such as China, Russia and the Middle East. At the same time, the performance of the European market is also commendable.

From the perspective of ownership structure, the relationship between Dior group and Dior fashion company is simple, and the relationship with Dior is not complicated.

Its 2007 financial year's results show that Dior group consists of Dior fashion company and LVMH two major sections, of which Dior group wholly owns the shares of Dior fashion company and holds LVMH 42.4% of the world's largest luxury group through another wholly owned holding company, Financi re Jean Goujon.

The Dior group is Bernard Arnaud, a luxury industry tycoon.

As of December 31, 2007, the Arnaud family company held 69.35% of Dior group and had 81.32% of the voting rights, while none of the remaining 30.65% shareholders had a shareholding ratio of more than 5%.

That is to say, through the most ingenious and the least investment, the Arnaud family controls the luxury business of tens of billions of euros per year, and more than 50 brands such as Christine Dio, Louis Weedon (Louis Vuitton) and Hennessy (Hennessy), spanning many fields such as fashion, leather goods, jewelry, clocks and watches, perfume, cosmetics, wine, luxury retail, media and so on.

For decades, the small fashion house in Paris, founded by Mr. Bernard Arnaud in 1946, has become an important part of the luxury empire of Bernard Arnaud in the 80s of last century after its complicated commercial operation. The turning point of this long and tortuous story is said to be related to a bath towel.

Arnaud claimed that he wanted to bring Dior back to life, but no one believed that he was born in 1949 in Arnaud, the Northern French city of rube. He did not have a family tradition of fashion or luxury.

His father is an industrialist and runs a construction company.

In 1971, Arnaud, 22, graduated from university with an engineering degree degree. He joined his father's company and inherited his father's career as president of the company in 1979.

In May 10, 1981, after fierce election campaign, Francois Mitterrand became the first socialist president in French history.

The new president vowed to nationalize banks and insurance companies, increase taxes on the rich and raise wages for the general public.

These plans make the owners and financiers extremely nervous and unstable.

Arnaud chose to leave France for the development of the United States.

According to French fashion and luxury management expert, Mary French Pohina, the author of Dior biography, recalled that Arnaud had already bought a real estate in Xinluo, Scher, and set up a new company in Xinluo at that time.

One night, he needed a bath towel and went to buy the most famous department store in America near Dyer, the famous American department store. The shop also sold Dior products.

"The Dior products there made me suddenly think of France, and the things before me are obviously more elegant than other products, and occupy a prominent position in my memory."

Arnaud described the scene to Pohina. "Later, as long as I had the chance to buy Dior's products, I would think of the Dyer shop. I have no doubt that I was influenced by it unconsciously."

At that time, Arnaud had acquired the relevant assets documents of Willot Group, which was on the verge of bankruptcy, and this company just owned Dior brand.

In 1946, with the help of Marcel Boussac, a business tycoon, Mr. Dior founded the first fashion house in Paris.

At the end of the Second World War, people tried to extricate themselves from war, especially women, dressed in thick denim clothes for war, and dressed as strong as men.

In February 12, 1947, Mr. Dior held the first press conference in his fashion house, launching a fashionable new dress that highlighted the feminine curve of soft shoulder line, waist waist and big round skirt, shocked the fashion industry.

Kamel Snow (Carmel Snow), editor of the Harper s BAZAAR, exclaimed: "this is the new look (It" s a New Look!), and Dior has started its brilliant operation for ten years.

In the same year, Dior perfume company (Christian Dior Parfums) was established, Dior business rapidly developed to Europe and the United States.

In October 1957, Mr. Dior, 52, died of heart disease, and the Christian Dior Co was in chaos.

In 1968, because of the problem of operation, Dior's Dior perfume company sold MOET & CHANDON perfume group to Mo t Hennessy, and continued to manage Dior fashion business and authorized agency business.

In 1978, the company declared bankruptcy and its assets were acquired by the whole group.

3 years later, the latter was also on the verge of bankruptcy.

In 1984, with the stability of the domestic political situation in France, Arnaud returned to France.

He made the first attempt to acquire the weapon.

With only $15 million in cash and $80 million in loans, he bought the whole group.

After the completion of the acquisition, he immediately sold most of the assets of the group, leaving only two departments of Dior brand and Lok Ma Ge department store.

At that time, Arnaud was ambitious to claim that Dior would come back to life and become the world's first fashion brand.

But no one believed him.

To become the largest luxury group in the world, in 1987, MOET & CHANDON Hennessy merged with Louis Weedon into LVMH, which laid the rudiment of a luxury empire.

Arnaud also significantly increased LVMH holdings through Christian Dior Co, attempting to gain control of LVMH with minimal input.

His behavior aroused strong dissatisfaction among the management at that time, but the stock crash in 1989 helped him achieve his ambition. Over the past year, he has increased LVMH shares to 44% at a low price, quickly replaced the original management and set up the ambition of LVMH as the world's largest luxury group.

The acquisition will play a strong role after that.

In the 90s of last century, Arnaud bought luxury brands through LVMH, Givenchy, Fendi, Fendi TAG and so on.

However, in order to maintain the uniqueness of the brand, he has granted the independent management right of the brand management (usually the family manager) to maintain the family management and independent operation of each subsidiary, but his brand can share the retail channel and share the strong retail network from entity to Internet.

"We have a wide range of brands, such as champagne, brandy, fashion, watches, jewelry, perfume, cosmetics, and so on. This product mix is very interesting," Arnaud once said. "This means that products must be coordinated, as if our employees, though invested in luxury goods, are full of passion and creativity, but must be accustomed to the work of cross brand platform.

Because of this, we can always attract good career managers to work for us, which is one of the reasons for the success of our group. "

CEO Dior Sini Da Li Dan Nu is one of Arnaud's talents.

He joined Dior in 1994 and was initially responsible for leather goods business. After that, he was responsible for international business. After 4 years, he was appointed Dior fashion company CEO. So far, he has become one of the longest term CEO in the luxury goods industry.

When Arnaud joined the company, it was also the time for Mr. Arnaud to adjust the layout of the group again.

In 1995, Arnaud became independent of Dior fashion company and became a wholly owned holding company. He integrated all the high-end custom fashions, garments, men's clothing, leather goods and jewelry into Dior fashion company.

Dior perfume and cosmetics, Dior watches and clocks continue to operate by LVMH.

Meanwhile, Arnaud is determined to break Dior's deadlock.

He pursued the method of mining the history of the brand, finding the right designer to express the brand, so as to clearly define the brand characteristics, strictly control the quality and distribution, and carefully create market publicity.

The design of fashion itself is not the most important. The most important thing is the positioning and image of the brand. At that time, Arnaud's rival GUCCI group (Gucci) has taken the lead in getting out of the trouble.

In 1994, 28 year old Tom Ford (Tom Ford) was in danger and became the GUCCI creative director at that time.

Apart from having a great talent for design, Ford is also quite commercially sensitive.

He declared that in today's fashion industry, the design of fashion itself is not the most important, and the most important thing is the positioning and image of the brand.

This new concept has made GUCCI pform from an old accessories company into a diversified boutique company. This mode also imitated other brands.

But it's not easy to find a designer who has both Dior temperament and business intelligence for Dior.

After the death of Mr. Dior in 1957, a large number of teachers were appointed as Dior designers: Yves Saint Laurent, Mark Bojang (Marc Bohan), Afranco Ferre (Glanfranco Ferr), etc.

People are looking forward to the next design genius who can save Dior.

In 1997, John Galliano (British Galliano) was the creative director of Dior.

For this choice, Arnaud explains, "I first choose to be a Frenchman, but my talent is not national, and Gary riano is a genius like Dior."

This genius, in the first year as Dior creative director, met Dior brand's 50th anniversary birthday.

this