CHRISTIAN DIOR

ANJALI RAWAT

21ST DEC, 2022

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 INTRODCUTION

Christian Dior is a multinational company based in

France which engages in the production and

distribution of several consumer goods. The

company was founded in 1946 with it’s headquarter

in Paris; France. It also has branches in several cities

in France, Europe, The US, Canada, Middle East,

Asia and the Pacific. To stay competitive in the

dynamic market, The Company has diversified in

the six production lines. These are:

 The company operates a haute couture house

which is marketed under the brand of

Christian Dior.

 They also have interests in the wines and

spirits industry. Some of their brand in this

industry are; Veuve Clicquot, Moet and

Chanon as well as Hennessey brands.

 The leather and fashion products are another

key area of interest for the company. In this

industry, their fashion brands are: Fendi,

Celine, Luois Vuitton and Givenchy brands.

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  The cosmetics and perfumes which includes

the Guelain, Kenzo and the Christian Dior

brands.

 The company also ventures in the watches

and jewelry industry with fashion brands

such as; TAG Heuer, zenith and Chumet

 And finally, Christian Dior operates some

franchise under DFS, Le Bon Marche and

Sephora brands in the markets.

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 SECTOR ANALYSIS

In the sector analysis, we have the financial analysis, competitor analysis and the sales
analysis. Because of the six production lines the Christian Dior has, it has a diverse
market and hence different competitors. Its major competitors are mainly from France,
the UK, the US, Japan and the new entrants from Shanghai China.

Some of their major designers are: Comme des Garcons, Junya Wantanabe, Issey
Miyake, Kenzo and Yamamoto. Another important market in this industry is the Middle
East as it accounts to about 11% of the world market. Most of the fashion products are
bought by the locals or by tourists from the United Arab Emirates, Saudi Arabia, Kuwait,
Bahrain as well as Dubai.

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 Key developments of Christian
Dior

Christian Dior announced an interim dividend of a gross amount of EUR 0.88 per share which
was paid on 2nd December, 2010. 29th November, 2010 is the date of ex-dividend. 26th November, 2010 is the
last day of trading with interim trading rights. Christian Dior SA Reports Revenue Results for the Third
Quarter of 2010 on 14th November, 2010. Christian Dior recorded revenue of €14.8 billion in the Third
Quarter of 2010, a 19% increase compared to €12.45 billion for the Third quarter in 2010. With 14% growth
in organic revenue, it confirmed the trend that was witnessed during the start of the year (Bloomberg, 2010,
para.4).

On 28th September, 2010, Christian Dior SA and Safilo Group S.p.A renewed their licensing agreement. The
licensing agreement renewed was for the production, design and worldwide distribution of the collection of
frames for eyeglasses for brand of Dior until 31st December, 2017 (CDI, 2010, para.1). Factors considered to
be affecting macro-environment also affect the company as well as other members within the environment
such as its consumers and suppliers and so on. These factors have much greater influence that they are more

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noticeable than other factors within the firm. These macro-environmental factors are: Social, cultural, legal,
political, technological, demographic and environmental (Blaszczyk, 2008, p. 203).

COMPANY RESPONSES

The issue of climate change has become a vital concern not only to the world leaders but also the world
citizens at large. The earth is reeling from the negatives effects of climate change from unpredictable
weather patterns to extreme weather conditions (Cusson, 2010, para.1). The effects have been more severe
in the past decades that environmentalists have raised concern over the future consequences and warned that
they could be more severe. Due to this, the world’s largest transnational companies (TNCs) have
commenced several voluntary practices as their corporate social responsibilities (CSR). In their CSR, these
companies have addressed the issues of climate change. Christian Dior being a member of TNCs top 100
companies agreed to adopt policies to address the issue of climate change. When it comes to addressing
climatic change issues, the TNCs agreed to disclose practices that will disclose a rough image of some of the
best practices in addressing climate change issues. The companies will create policies to adopt appropriate
governance issues as well as management systems and report their progress to the TNCs top 100. The
policies to be adopted include the reduction of the greenhouse gas emissions (GHGs). This is one of the
most important responses that Christian Dior has taken to address problems affecting our planet (UNCTAD,
2009, p.15).

Supply sources and subcontracting

In watchmaking, manufacturing has been coordinated through the use of shared
resources, such as prototype design capacities, and by sharing the best methods
for preparing investment plans, improving productivity and negotiating purchasing
terms with suppliers. In jewelry, centralized checking has been introduced for

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diamonds, alongside technical cooperation between brands for the development
of new products. At its Swiss workshops and manufacturing centers, located in
Le Locle, La Chaux-de-Fonds, Neuchâtel, Cornol, Tramelan, Le Sentier, Chevenez
and Nyon, the Group assembles a substantial proportion of the watches and
chronographs sold under the TAG Heuer, Hublot, Zenith, Bvlgari, Montres Dior,
Chaumet and Fred brands; it also designs and manufactures mechanical
movements such as El Primero and Elite by Zenith, Heuer 01 by TAG Heuer,
UNICO by Hublot and Solotempo by Bvlgari; and it manufactures some critical
components such as dials, cases and straps. Zenith’s manufacturing facility in Le
Locle underwent a major renovation in 2012. In 2013, TAG Heuer inaugurated a
new movement manufacturing facility in Chevenez, and in 2015 Hublot opened a
second one at its Nyon site. Bvlgari opened a jewelry manufacturing facility in
Valenza, Italy, at the end of 2016, and in 2019 inaugurated a new watch casing
manufacturing facility in the Jura canton of Switzerland. It also operates a high
jewelry workshop in Rome. Tiffany operates several jewelry manufacturing
workshops in the United States, as well as its own diamond polishing workshops
in Belgium, Botswana, Cambodia, Mauritius and Vietnam. Overall, for the Group’s
Watches and Jewelry operations, subcontracting accounted for around 5% of the
cost of sales in 2021. Even though the Watches and Jewelry group can
sometimes use third parties to design its models, they are most often designed in
its own studios.

HIGHLIHTS
The Watches and Jewelry business group saw organic revenue growth of 40%
with respect to 2020, which had been particularly hard hit by the pandemic, and
of 7% compared with 2019. Including Tiffany, growth was much stronger, showing
the transformative contribution of this iconic brand. The Maisons were buoyed by
the gradual recovery in their local markets, primarily China and the United States,
and the use of distribution methods well-suited to the public health context:
direct sales and digital channels. New watch designs were unveiled in the first
half of the year at trade fairs that were held in innovative new formats. Tiffany
delivered record performance, in terms of revenue, profits and cash flow. The
Maison raised its global profile through its innovations and high-profile
collaborations. For the first time in its history, Tiffany’s annual Blue Book
collection of high jewelry was unveiled in China. A series of events followed in
New York, Los Angeles and Dubai, giving customers the opportunity to discover
the extraordinary necklace, featuring over 180 carats of diamonds, inspired by

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the pendant unveiled at the 1939 New York World’s Fair. Following these
presentations, high jewelry sales reached an unprecedented level. Rosé, the
young singer of South Korean band Blackpink, became the new face of the
HardWear collection. This very well-received revival led to a doubling of sales for
this core line, which embodies bold femininity. The Knot collection – a limited
edition designed in collaboration with artist Daniel Arsham – was another major
success, as was the Tiffany X Supreme collaboration. December saw the launch
of the highly anticipated limited edition of Nautilus watches designed by Patek
Philippe and Tiffany to commemorate the 170th anniversary of their partnership in
the United States. The first of the 170 watches in this limited edition series set a
new record when it was sold at auction, with all proceeds from the sale going to
The Nature Conservancy

COMPETITIVE POSITION

Following the recent round of market consolidation, DFS is the sixth-largest travel
retail operator (according to an Exane study based on data as of end-2019). In the
United States, Sephora has been the market leader since the first quarter of
2016, and has since continued to make headway. In France, where the prestige
beauty product market (including e-commerce) grew by 10% in 2021 compared
with 2020 (data source: NPD to endDecember), the market share of Sephora
remained stable. In addition, Sephora continued to gain market share in the
Middle East and Canada, where it has led the market since 2015.

OUTLOOK
In 2022, Sephora will continue to innovate, ramp up its digitalization efforts and
develop its omnichannel strategy to gain new market share in key countries, with
the priority placed on North America and China. In the United States, the
implementation of its partnership with Kohl’s will help amplify its success with an
expanded presence and a closer connection to American customers. The Maison
will continue investing to sustain its strong momentum in other strategic markets
such as the Middle East and Canada, as well as to expand its retail network in

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major cities and scale up its digital strategy. In 2022, DFS’ priority will be placed
on tourism at its key destinations: Hainan, Macao and potentially Hong Kong in
the second half of the fiscal year. Partial air traffic recovery forecasts – which are
more favorable, with the exception of China – will be closely monitored to ensure
that reopenings are in line with local authorities’ requirements and the return of
travelers. Highlights planned for 2022 include the second phase of the Mission
Hills site opening in Hainan and the inauguration of a T Galleria in Queenstown,
New Zealand, while preparing for the 2023 opening of the Brisbane location in
Australia. Le Bon Marché will continue to capitalize on its unique profile as a
trend-setting department store and cultural venue. In January, the “Su” exhibition
by artist Mehmet Ali Uysal will invite viewers to reflect on climate issues. The
beginning of the year will also see the launch of a digital platform for services
and experiences, building on Le Bon Marché’s strengths and underscoring its
privileged position as an integral part of the Parisian scene.

OTHER ACTIVITIES

Les Echos group The Christian Dior group acquired the Les Echos group in 2007.
The Les Echos group includes Les Echos, France’s leading financial newspaper,
LesEchos.fr, the top business and financial website in France, the business
magazine Enjeux-Les Echos, as well as other specialized business services. The
Les Echos group also holds several other financial and cultural media titles that
were previously owned directly by LVMH: Investir – Le Journal des finances,
Connaissance des Arts and the French radio station Radio Classique. The Les
Echos group also publishes trade journals, with titles produced by SID Presse,
and is active in the businessto-business segment, with the organizations Les
Echos Formation and Les Echos Conférences, the trade show Le Salon des
Entrepreneurs, and Eurostaf market studies. Since late 2015, Les Echos has also
encompassed the Le Parisien daily newspaper and its Aujourd’hui en France
magazine. La Samaritaine La Samaritaine is a real estate complex located at the
heart of Paris, beside the Seine river. Following a large-scale program to renovate
and restore 70,000 square meters in space to the latest environmental standards,
La Samaritaine reopened to shoppers in June 2021. With diversity at the heart of
the redesign, the buildings now house an 80-crib daycare facility, plus 96 social
housing units (operated by Paris Habitat). Designed and operated by DFS, the
Samaritaine Pont-Neuf department store in Paris is guided by a bold vision: to
create a rich blend of experiences and wonder, authenticity and modernity. In

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another of La Samaritaine’s projects, Cheval Blanc Paris, the Maison’s first urban
hotel, welcomed its first guests in September 2021.

Market for Christian Dior

Shares In fiscal year 2021, the global stock markets made strong
progress overall, although some markets performed inconsistently.
They were boosted by the support provided by accommodative
monetary and fiscal policies and by the recovery in economic activity,
despite an upsurge in the Covid-19 pandemic with the emergence of
two new variants and a sharp spike in infections around the world.
The American and European markets rose by over 20% in 2021, while
the Chinese market and emerging markets were down. In 2021,
inflation returned, encouraged by steady demand and the marked
increase in the prices of energy and raw materials. Despite supply
chain constraints and tension on the labor markets, business activity
in the primary economies returned to pre-pandemic levels. GDP
growth rates were 5.9% globally, 5.6% in the United States and 5.2%
in the eurozone. In response to renewed inflation, the main central
banks began to modify their approach, mentioning reducing or even
suspending asset purchase programs and raising policy interest rates.
In the United States, a new 1,900 billion dollar fiscal stimulus
package was approved to support demand, while in Europe the fiscal
rules were suspended until year-end 2022. In this context of resurging
inflation, European sovereign debt yields rebounded sharply, with
Germany’s 10-year Bund yield rising from -0.6% at the beginning of
2021 to nearly 0% in the third quarter and ending the year at -0.2%.
Italy’s 10-year bond yield peaked at 1.2% at the end of the year after
starting the year at 0.5%. In the United States, 10-year government
bond yields quickly neared 2.0% at the end of the first quarter and
ended the year at 1.5%, up about 0.6 points year-on-year.

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 Information regarding the capital
Share capital

As of December 31, 2021 and January 27, 2022, the Company’s share capital was 361,015,032 euros,
consisting of 180,507,516 fully paid-up shares with a par value of 2 euros each. The shares issued by
the Company are all of the same class. Of these 180,507,516 shares, 130,045,992 shares conferred
double voting rights as of December 31, 2021.

Authorized share

Capital As of December 31, 2021, the Company’s authorized share capital was 481,015,032 euros,
divided into 240,507,516 shares with a par value of 2 euros each. The authorized share capital
represents the maximum amount that the share capital could reach should the Board of Directors
make use of all of the authorizations and delegations of authority granted at the Shareholders’
Meeting that permit the Company to increase its amount.
Status of delegations and authorizations granted to the Board of Directors
This information is provided in §1.11 “Summary of existing delegations and financial authorizations
and use made of them” in the Board of Directors’ report on corporate governance. Identifying holders
of securities

Article 8

of the Bylaws authorizes the Company to set up a procedure for identifying holders of securities, in
accordance with applicable laws and regulations.

Non-capital shares

The Company has not issued any non-capital shares.

Securities giving access to the Company’s capital

No securities giving access to the Company’s share capital were outstanding as of December 31, 2021.

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