Export to India : Hermès

Thèmes abordés

Export to India, Hermès, indian market, indian strategy, global strategy, indian fashion

Résumé du document

-> 2008 : whole collection based on indian fashion (Saris) « Orange Hermes & Rose indien »
-> 2011 : opening of a “Flagship” in the heart of Mumbai old town with its local partner KHANNA RETAIL
-> Strategy opposed to its competitors
-> 3 shops – 1 in a prestigious hotel Delhi and 1 in Pune
-> “ Hermes and India has a love relationship it's not about business”
-> “No marketing tools in India, it is not here that we are going to make profit”

Extraits

[...] Any questions ? [...]

[...] HERMES ESTABLISHMENT IN INDIA 2014 http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png H < number > Export to India: The plan Business presentation Market mapping External analysis : PESTEL & SWOT Porter's 5 forces Analysis The Indian market demand Competitors in india Basis for marketing Mix Global strategy Indian strategy Key success Factors & Final recommendations H http://upload.wikimedia.org/wikipedia/fr/a/a5/Hermeslogo.png Business presentation http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 03 https://2.bp.blogspot.com/-eUIkz4DuzsY/UF3TN5C6uEI/AAAAAAAAG1w/D9uQ5JPeLVk/s1600/Hermes_festival-des-metiers.jpg Hermes sale : leather items Silk items Riding accessory Accessories and clothing for men, women Accessories and linens Founded in 1837  Name : HERMES Revenue In 2012 : 3,4 Billion $ Net income In 2012 : 740 Million $ +  Employees  Luxury  SECTOR Present in :  25 Countries NR Market Mapping http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 04 NR < number > External analysis : Pestel Fiscality and taxes policies in favour of foreign investments Persistent uncertainties over the cashmere issue Red Tape Heavy bureaucracy and legislation Slowness of adminastration process Corruption Monsoons issue Different climates Cast system Tradition of luxury Strong presence of religions 32 languages 2020 : India is the first world population Upper classes develop a real demand Increase of cosumption demand Expansive cost of real-estate Poor infrastructure High development of IT Modernisation dynamics http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 05 http://www.unisource.co.za/wp-content/uploads/2013/06/chart-search-icon.png SH < number > SWOT Analysis 2 Strengths Opportunities Weaknesses Threats The 5th country in number of consumers in 2025 The luxury market develop to secondary cities growth in 2013 of the luxury market. [...]

[...] A presence concentrated in little places little (hotels / airports) A limitation of the property of companiesat Change rate sensivity Last 9 years : sales x2,5 Evolution of operating margin Own 203 of the 315 Hermès in India) High know-how representing the brand image High notoriety Small group & Family group Leather goods : 44% Backwardness of numeric sales http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 06 http://www.modelcreator.com/iphone/img/icon.png PB BC < number > Porter's 5 forces Analysis 2 http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 07 PB < number > Indian demand http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 08 Source : NR Indian demand http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 09 NR Competitors in india http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 10 http://media.cirrusmedia.com.au/TW_Media_Library/Travel%20Today%20Images/Airlines/2012_09_24_pink_elephant_india.jpg NR Basis for marketing Mix : Product 7 http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 11 Core business: Expert of noble material Leather product 42% of the turn-over, cloth & accessories: silk product Theme of product Fashion, home, jewelry& Travel Long life product cycle http://www.ladyandthesweatshop.com/wp-content/uploads/2010/02/hermes_12.jpg PB Basis for marketing Mix : Promotion 7 SCUTUM SECURITY FIRST – STAY INFORMERD – ALERT – ANALYSIS – PROTECTION - SCUTUM SECURITY FIRST – STAY INFORMERD – ALERT – ANALYSIS – PROTECTION - SCUTUM SECURITY FIRST – STAY INFORMERD – ALERT – ANALYSIS – PROTECTION - SCUTUM SECURITY FIRST – STAY INFORMERD – ALERT http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 12 Low volume of product but big budget for advertising communication Higher effort of corporate communication Creator of richs artistics events Launch of corporate e-commerce web-site in 2007 Hermès Foundation very present in india SH Basis for marketing Mix : Place 7 SCUTUM SECURITY FIRST – STAY INFORMERD – ALERT – ANALYSIS – PROTECTION - SCUTUM SECURITY FIRST – STAY INFORMERD – ALERT – ANALYSIS – PROTECTION - SCUTUM SECURITY FIRST – STAY INFORMERD – ALERT – ANALYSIS – PROTECTION - SCUTUM SECURITY FIRST – STAY INFORMERD – ALERT http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 13 Distribution network: of turnover generated by owned shops 315 exclusive shops http://www.timeslive.co.za/Feeds/Reuters_Images/2011/10/10/24-08-2011-07-08-01-648mdf13101.jpg/ALTERNATES/crop_630x400/24-08-2011-07-08-01-648mdf13101.jpg SH Basis for marketing Mix : Price 7 http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 14 Production cost: cost is not the reference point acquisition of best raw material Selling price: uniformity of price in all geographical zones Price = Value + Operating margin http://www.pomegranita.com/images/posts/hermes-ss2008.jpg BC Global business strategy http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 15 SH 850 des 1000 premières entreprises présentes au brésim (filiales/joint ventures) ECO 84% of urban population SOCIAL 350 entreprises dont 80% sont installées entre Rio et Sao Paulo ECO Strong Currency ECO 80% of 350 in Sao & Rio ECO Each state has a military police, civil and municipal body guards ENV South East Market Rio & Sao ENV French expatriates sent to Brazil are protected under French law LEG (André Gilles / partenaire & associés) < number > Strategy of distribution 2 http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 16 Network of distribution and internationals redeployment http://www.bio-toolkit.com/media/imgs/2011/11/03/HIVATlasIcon.png NR Country under social pressure which translate lack of security The investment in the country remains strong Administrative procedures and importance of the Portuguese language Weakness of the real promotes investment / french highly present STR < number > Steps of internationalization http://www.schooljotter.com/imagefolders/whitechapel/061075-blue-jelly-icon-people-things-foot-steps.png NEW DELHI / MUMBAI ARTISTS CREATOR SUPPLIERS NATIONAL SCALE CUSTOM COLLECTION http://holibridge.com/wp-content/uploads/2014/05/india.pnghttp://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 17 BC Action Plan http://holibridge.com/wp-content/uploads/2014/05/india.pnghttp://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png : whole collection based on indian fashion (Saris) « Orange Hermes & Rose indien » 2011 : opening of a “Flagship” in the heart of Mumbai old town with its local partner KHANNA RETAIL Strategy opposed to its competitors 3 shops – 1 in a prestigious hotel Delhi and 1 in Pune “ Hermes and India has a love relationship it's not about business” “No marketing tools in India, it is not here that we are going to make profit” SH KSF & Final recommendations SCUTUM SECURITY FIRST – STAY INFORMERD – ALERT – ANALYSIS – PROTECTION - SCUTUM SECURITY FIRST – STAY INFORMERD – ALERT – ANALYSIS – PROTECTION - SCUTUM SECURITY FIRST – STAY INFORMERD – ALERT – ANALYSIS – PROTECTION - SCUTUM SECURITY FIRST – STAY INFORMERD – ALERT To succeed the project must be based on : http://clareitysecurity.com/wp-content/uploads/2011/12/success.jpg http://upload.wikimedia.org/wikipedia/fr/thumb/4/41/Hermes-international.png/220px-Hermes-international.png 19 PB RECOMMENDATIONS : DEVELOP AT THE SAME TIME Competitive assets (certfications / AfterSales / Partners) Recognition & Expertise (partnership with bank essential for direct dredibility on the market to approach french companies with even more assets in our offer) A well targeted communication Efficient studies and recruitments Heavy investment (financial / time / workforce / efforts / work) Transparency & Motivation (beware corruption and administrative flaws) < number > Thank you for you attention http://arrowstreetlive.com/wp-content/uploads/YuliaBrodskaya_01_Hermes.jpg Thank you for you attention The end. 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[...] GDP growth = in 2013/14 Lack of infrastructures and shortcomings in the educational system. [...]