Sergio Rossi : challenges in the emerging market

Résumé du document

History of the brand:
Beginning of a shoe making career:
Sergio Rossi acquired the art of shoe making by working along with his father. He established his own brand in the 50's at San Mauro Pascoli. Sergio's shoes mostly catered to the needs of the urban and sophisticated customers. As the demand increased during the 60's and the 70's, Italy encountered a quality shoe market explosion.
International recognition:
In the 80's, Sergio Rossi's success permitted him to stretch beyond his own borders. He expanded his distribution network across Europe by opening his DOS in Milan, Florence, Rome, Düsseldorf and Paris. The 90's gave Sergio yet another chance of accomplishment as he was able to open independent stores in Osaka and Hong Kong and his first sales outlet in the US in New York.
Shoe collections for some of the most visible creators: Fashion legends such as Gianni Versace, Azzedine Alaïa and Dolce&Gabbana have used Sergio's shoes to grace their fashion industry and many models have walked the ramps with these breathtaking shoes Diversify into the market of mainland China:
As much as Sergio intended to promote his products in Mainland China, the Competition between shoemakers in Mainland China did not seem as intensive as in HK. This is mainly because the market is not highly diversified and is saturated, especially for high-end footwear. Even though prestigious shoemakers like Ferragamo, Jimmy Choo and others entered this market several years ago, they still haven't been able to construct a framework to experience tough competition and its advantages. For other luxury multi-product brands as LV, Gucci, Prada, the focus is still on their core businesses challenges which is tackling the immature and complicated markets (sales and logistics, culture and training, location), long-term on return on investment, low brand image and the unimpressive quality of sales staff. In conclusion, this market is promising but has not proved this characteristic feature as it takes more time to enter.

Extraits

[...] Dragon Attack-Armani In 2004 Giorgio Armani launched his flagship store in Shanghai. The floor plan is divvied up at 560 square meters for Giorgio Armani and 420 square meters for Emporio Armani. Two ancillary counters are dedicated to Armani Fiori, their floral shop, and Armani Dolci, gourmet chocolates and candies. Most consumers seek the emotion of SUPERIORITY when buying luxury brands Consumer behavior differences As a research showed the unit commodity price withstanding sector Distribution, Marketing & Communication strategic plan IMAGINEX Group A leading brand management and distribution company in the luxury market segment of the Greater China region (Mainland Chin, HK and TW) We position ourselves to be the most dominant premium brand distribution company in the China market Group Structure Business Unit Structure of ImagineX Group Fashion & Accessories Aigner, BCBG, Coach, Hugo Boss, Marc Jocobs, Paul & Shark, Verce Licensing & Distribution Mondi Men Retail Management & Support Agnès Baccarat, Chopard, Gucci Joint Venture Salvatore Ferragamo More than 230 POS in 31 cities in Mainland China in 2005 and aim to cover 35 cities by the end of 2006 Pedder Group: On Pedder Pedder Group Limited regionally focuses on the management and operation of three specialty footwear businesses - Lane Crawford, On Pedder and Pedder Red Brands of On Pedder: Marc Jacobs、YSL、Jimmy Choo、Sergio Rossi and some designers' brands Giuseppe Zanotti、Christian Louboutin、Bruno Frisoni、Rene Caovilla、Piere Hardy Sergio Rossi Shops in China Mainland China Sergio Rossi in HK&Taipei HK(6) Lane Crawford IFC Lane Crawford Pacific Place Lane Crawford Times Square Lane Crawford On Pedder, Centrel On Pedder, Harbour City Taipei(2) On Pedder 2/F New Face Sogo On Pedder, Taipei 101 Mall SWOT Analysis of Sergio Rossi in HK Relationship with On Pedder Situation (Licensing--Distribution) The On Pedder HK company has an exclusive distribution agreement with Sergio Rossi which covers Greater China Taiwan, Mainland China) as well as Singapore and the rest of the region except Korea and Australia Retail On Pedder stores are multi-brand stores, so SG brand is currently sold in most of On Pedder boutiques(2 in HK) Wholesale Sell Sergio Rossi shoes to Lane Crawford Department Stores(4 in HK) 1.4 MI$ revenues per season are not growing anymore and most of the sales are concentrated in HK. [...]

[...] He established his own brand in the 50's at San Mauro Pascoli. He created shoes for urban and sophisticated customers. Demand increased during the 60's and 70's while Italy's quality shoe market exploded. International development In the 80's Sergio Rossi's success allowed him to go beyond his own borders. He expanded his distribution network in Europe by opening his DOS in Milan, Florence, Rome, Düsseldorf and Paris. [...]

[...] Possible partners The Rainbow Group (Macao): This group hasn't franchised any luxury footwear brands yet. In mainland China, it also plays a crucial role as Imagine X www.rainbowgroup.com.mo Selecting the Most Appropriate Distribution Strategy in HK Level Distribution and/or Manufacturing Licensee/Distributors Distribution licensee Level Wholesale Distribution directly operated by the Brand or through Sales Agents Sales Agents Level Free-standing stores/Brand controlled shop in shop in Department Stores/Franchises Open free-standing stores is necessary for Sergio Rossi now Main competitors in HK Jimmy Choo, Ferragamo, Gucci, Prada All these brands have a more advantageous position and a stronger brand reputation in HK market than Sergio Rossi. [...]

[...] March 2005: Isabelle Guichot becomes CEO of Sergio Rossi October 2005: Mr Sergio Rossi and his family end their collaboration with the Sergio Rossi brand Complete control of the Gucci Group over the Sergio Rossi brand About Gucci Group One of the world's leading multi-brand luxury goods companies. A portfolio of prestigious brands: Gucci Yves Saint Laurent Bédat & Co. Bottega Veneta Boucheron Balenciaga Sergio Rossi Stella McCartney Alexander McQueen Brands' acquisition from 1999 About Gucci Group Gucci Group designs, produces, and distributes ready-to-wear, leather goods, shoes, timepieces, jewelry, ties and scarves, eyewear, fragrances, cosmetics and skincare products. DOS, franchise stores, duty-free boutiques, department stores in major markets throughout the world Gucci Group is owned by PPR, a global player in retail and luxury goods. [...]

[...] Latest and future openings Store opening in Geneva: Extravaganza Chaussures (specialty store) Two units in China: Beijing and Xian A flagship store on 5th Avenue in Manhattan (December 2005) Sergio Rossi's new global store concept All new stores and retail spaces are being unified through a single consistent design. Atmosphere of a luxurious lounge or private club. For the Sergio Rossi client, a visit to the store becomes a moment of escape. Stores embody the core values of Sergio Rossi: sophistication, sensuality and luxury. [...]