Dior won't be having a campaign for F/W 09.10

[Ghost]

NOw the Problem is not about Dior not making campaign....

But Why is Dior losing profits even though its a big luxury group with shares in LVMH + big name????
are they losing so so so much profits that now they can't even afford an ads??????

i know Galliano is making bags that u can easily get at a department store

 

[BerlinRocks]

i know nothing about finances, business etc.
but i had check the LVMH stats of the 1st semester 2009 ...

all i can say is that LVMH hadn't see the crisis ... they even tiny raised their sells (comparing to 2008) ...
it seems Louis Vuitton made a big raise .... and in general, the fashion and leather goods of LVMH made a +8% (comparing to 2008)
in their fashion and leather goods paragraph they don't talk about Dior (at all), but they do A LOT in their perfumes and beauty paragraph ... it seems Parfums Dior made a lot of $$$ on all the 'iconic' and 'mythic' items ...
the small press file even entitle "Perfume and Beauty : A success for Mythic Perfumes"

In their perspectives, they say that the LVMH brands that have known the crisis will put all their effort in focusing and promoting the best-sellers (then I guess Dior Fashion hasn't made any increase !).

------------------
On the site of Dior, it is said that Dior Group hasn't made any increase !

The Christian Dior Group recorded revenue of €8,137 million in the first half of 2009,
almost stable compared to the first half of 2008, despite the economic crisis and a high
comparable.
Profit from recurring operations stood at €1,358 million. The brands distributed by third
parties suffered a massive destocking impact by these distributors, but the brands, that control
their distribution, were much more resilient to the effects of the crisis. Louis Vuitton had a
remarkable first half of the year.
(in Euro millions)
· Revenue 8,137 (First half 2009)* / 8,152 (First half 2008)
· Profit from recurring operations 1,358 (First half 2009) / 1,542 (First half 2008)
· Net profit 709 (2009) 974 (2008)
of which Group share 252 (2009) 352 (2008)

* -0.2% at current exchange rates and -7% at constant exchange rates and structure compared to the first half of 2008

Christian Dior Couture
Christian Dior Couture’s half year revenues stood at €340 million, showing a decrease
compared to the first half of 2008 principally due to the slowdown in business activity in the
United States and in Japan, the markets of which are still feeling the effects of the economic
crisis. Revenues in Europe were resilient (particularly in the United Kingdom) and showed
strong growth in China. The Company continued its efforts at the operational level and
maintained its focused growth strategy.
(in Euro millions)
· Revenue 340 (First half 2009)* 366 (First half 2008)
· Profit from recurring operations 0 (First half 2009) 7 (First half 2008)

* -7% at current exchange rates and -11% at constant exchange rates compared to the first half of 2008

2009 Outlook
In the current economic crisis, the Christian Dior Group will continue to gain market share
thanks to the numerous product launches planned before the end of the year, to its geographic
expansion in promising markets and to its cost management.
Our strategy of focusing on quality across our entire product range, combined with the
dynamism and unparalleled creativity of our teams, will enable us to reinforce, once again in
2009, the global leadership position of the Group in luxury products.
The Board of Directors of Christian Dior decided the payment on December 2, 2009 of an
interim dividend of 0.44 euro per share.

all quotes from http://www.dior-finance.com/en

 

[user.n.]

Yes. The big sharks like the Dior haven't got any big decline which would force them to backtrack from a new campaign. This was a bull only. I wasn't surprised.
But thanks for the infos. Good to see it clearly.

 

[irulan]

I don't think it's a question of money, but that Dior is moving to a much more mainstream direction with its advertising. People who can't spell Galliano own a Lady Dior bag.
For fashion fans like us that's highly disappointing, but there will be more and more brands that'll go where the money is, not the passion for the product. That surely won't hurt the finances, but in the end creativity in advertsing and on the runway, too, will suffer.
Aaaand those who love fashion and have the money, whether they go crazy daily or they invest in certain pieces, will have double takes at the designers...

 

[iluvjeisa]

^Oh, it will hurt the finances in the long run. As people have said here before, they are selling an image. Nobody wants a Lady Dior bag if there isn't a real lady Dior out there somewhere. People buy perfumes and accessories because they can't afford or look good in the clothes. If they had the money and figure, they would get the outfits.

Without the image of Dior as a prestigious (past and present) fashion house, nobody will be interested in that bag. Their strategy might work now and next year, but in a long term perspective, this approach is death to Dior.

 

[notmanons]

I don't see the big deal. Who actually looks at a Dior ad with a nice bag or pair of shoes or whatever and actually goes and buys it?

 

[iluvjeisa]

^Not sure I understand you correctly....but are you questioning the general principle of advertisement?

 

[kickassgood]

oh no. damn recession

 

[dizzytacks]

dior is definitely not skimping on their advertising budget!!! a mega star, mega photographers, films ( plural!!!!).
i much prefer this route and it definitely links beautifully to the new dior image!

 

[tigerrouge]

But it's a bit like putting all your eggs into one basket - what about the people who don't care for Marion Cotillard? What about people who can't be bothered to watch her films? Are they going to make the effort to go to some website to deliberately watch a product placement film with her in it?

And concentrating on one product line - if someone doesn't like that product, are they to get the impression that Dior has nothing else to interest them? Because they're not being led towards much else, with this strategy.

The advantage of an ever-evolving campaign featuring different faces and a variety of items is that every season, you're bound to attract the interest of people who like something that they're seeing, and who may take their interest in the brand further as a result.

And the people who you didn't interest... you can get them a few months later with your next campaign. Tweak the visuals so that you're touching on something new, while still retaining the integrity of the brand.

Dior talks a lot about values but doesn't seem to know the definition of its own. And that insubstantiality is what they're then making these marketing decisions upon. If they had a super-strong sense of what the brand stood for, then selling the brand to the world would become a lot more fluent and successful. They'd be selling the concept of the universe of the brand, not concentrating on the idea of a handbag as toted by some actress.

With such heritage, such history, why is Dior reduced to this? And it's not the recession. It's business decisions which reach back further than the current downturn. And something which money can't buy - vision or the lack of it.

I'm not one of those I-just-die-for-fashion people - I'm not appalled by companies taking commercial decisions, and I'd rather read a book about accountancy than dream over Italian Vogue - so when I say this new direction seems nonsensical to me, it's nothing to do with personal attachment to the brand or wanting to see model X in the images, more a sense of puzzlement about why such a company would do this.

 

[mikeijames]

^Oh, it will hurt the finances in the long run. As people have said here before, they are selling an image. Nobody wants a Lady Dior bag if there isn't a real lady Dior out there somewhere. People buy perfumes and accessories because they can't afford or look good in the clothes. If they had the money and figure, they would get the outfits.

Without the image of Dior as a prestigious (past and present) fashion house, nobody will be interested in that bag. Their strategy might work now and next year, but in a long term perspective, this approach is death to Dior.

i cannot agree with you more. they can only coast on established brand-ID for maybe a season, but in the absence of everything, it becomes a small niche operation that's unrecognizable. even the henry beguelins and delvaux of the world budget ad campaigns.

 

[rip_ian curtis]

But it's a bit like putting all your eggs into one basket - what about the people who don't care for Marion Cotillard? What about people who can't be bothered to watch her films? Are they going to make the effort to go to some website to deliberately watch a product placement film with her in it?

And concentrating on one product line - if someone doesn't like that product, are they to get the impression that Dior has nothing else to interest them? Because they're not being led towards much else, with this strategy.

The advantage of an ever-evolving campaign featuring different faces and a variety of items is that every season, you're bound to attract the interest of people who like something that they're seeing, and who may take their interest in the brand further as a result.

And the people who you didn't interest... you can get them a few months later with your next campaign. Tweak the visuals so that you're touching on something new, while still retaining the integrity of the brand.

Dior talks a lot about values but doesn't seem to know the definition of its own. And that insubstantiality is what they're then making these marketing decisions upon. If they had a super-strong sense of what the brand stood for, then selling the brand to the world would become a lot more fluent and successful. They'd be selling the concept of the universe of the brand, not concentrating on the idea of a handbag as toted by some actress.

With such heritage, such history, why is Dior reduced to this? And it's not the recession. It's business decisions which reach back further than the current downturn. And something which money can't buy - vision or the lack of it.

I'm not one of those I-just-die-for-fashion people - I'm not appalled by companies taking commercial decisions, and I'd rather read a book about accountancy than dream over Italian Vogue - so when I say this new direction seems nonsensical to me, it's nothing to do with personal attachment to the brand or wanting to see model X in the images, more a sense of puzzlement about why such a company would do this.

excellent post, agree on every point.

 

[rip_ian curtis]

What it comes down to is that Dior doesn't have anything worth advertising than a single bag.

That should give them something to think about.

Agree. And from the point of view of an ex-die-hard-Dior-fanatic, this is the explanation really for the loss of profits and publics' interest.

 

[malaychic]

Pity. And very sad too. Considering how big Dior was some years ago.
They just need a new marketing team. And maybe new Creative Director. oops!

 

[b9409]

But it's a bit like putting all your eggs into one basket - what about the people who don't care for Marion Cotillard? What about people who can't be bothered to watch her films? Are they going to make the effort to go to some website to deliberately watch a product placement film with her in it?

And concentrating on one product line - if someone doesn't like that product, are they to get the impression that Dior has nothing else to interest them? Because they're not being led towards much else, with this strategy.

...

Dior talks a lot about values but doesn't seem to know the definition of its own. And that insubstantiality is what they're then making these marketing decisions upon. If they had a super-strong sense of what the brand stood for, then selling the brand to the world would become a lot more fluent and successful. They'd be selling the concept of the universe of the brand, not concentrating on the idea of a handbag as toted by some actress.

With such heritage, such history, why is Dior reduced to this? And it's not the recession. It's business decisions which reach back further than the current downturn. And something which money can't buy - vision or the lack of it.

Well I think it shows the importance of accessories. Focusing on a single bag seems worthy in comparison to focusing on an entire collection... I am sure Dior people worked out the numbers. It is kind of sad really.

My question is, why couldn't M.C. wear some of this season's clothing at the very least? Since they think Lady Dior is a bag above seasonal style and so very iconic that it is timeless, it should work just as well with this collection's garments as well as these dusty looking pieces. Like they presented it in the runway collection sans the ****** make-up and that cap of a hair.

 

[Ghost]

And concentrating on one product line - if someone doesn't like that product, are they to get the impression that Dior has nothing else to interest them? Because they're not being led towards much else, with this strategy.

.

I dont give a damn about Lady Dior Bags.......
years ago, they don't give a damn about this bags
now they are taking films,,,,,especially the process of making a lady dior bag...with hitting the leather with a hammer a few times here and there......stitching with a machine (i don't mind showing if its hand sewn).....
There is no such thing as "classic bags"....i believe its just a term coined by them
When they call it classic....it become classic....and all the school girls and desperate housewives run after them.......
Who wants a chanel 2.55 or whatsoever without all those ads and consistent reinforcing and branstorming the customers...

 

[iluvjeisa]

^Hmm....to me it seems very far fetched that they would get any credibility as a fashion house from these ads.

That said, if they are focusing on the craftsmanship in the tv ads, that might be something....the quality of designer items have gone down in general....so pointing out the quality of this bag might be the one good thing about these campaigns.

 

[hillben_ho]

What the.....
Even Dior does this. I think Donna Karen is brave enough then...