Elie Saab: Growth of a

Luxury Brand
Jahanzeb Aamir
Saad Ali Khan
Noor Fatima
Sidra Baig
Hera Qasim

Introduction
The primary goal was to grow
the brand in new and existing
markets while maintaining:

the brands exclusivity

position as one of the few
remaining established brands
in haute couture.

The ready to wear line of ES

attributed to the growth and
success of the brand in the
previous five years.

 The challenges the company was facing

were:
-selecting the right partners
-identifying new markets with the greatest
growth potential
-protecting the brand from dilution.

Goal
attract, select and maintain customers who place
significance on high-end, one-of-a-kind designs
made from the finest fabrics and materials.

 The brand played a very important role in

the global luxury fashion industry
Since it provided value in terms of:
-image
-quality
-fashion
-store atmosphere and patron status.

 There are three layers of the global luxury

market
-the first tier has brands like ES for the
super wealthy
the next tier is the aspirational, with
brands like Gucci and Louis Vuitton
-the third tier was the accessible luxury,
with brands such as Hugo Boss and
Tiffany.

 Saab was born in Beirut

showed an interest in dress making
opened his first atelier at the age of 18,
with 10 employees
product line was wedding dresses and
luxurious evening gowns

 In 1990s ES gained international media

coverage
In 1997, Saab was the only non-Italian
designer invited to participate in the
Camera Nazionale della Moda Italiana.
The ES ready-to-wear collection was
launched in Milan and received positive
reviews.

 Sales expanded to Paris, London, Moscow, New

York, Los Angeles, Madrid and Hong Kong.
In 2002, a salon and showroom was opened in
the eighth arrondissement
The RTW collection was launched in Paris in
2005. Elie Saab was the first Lebanese designer
to receive the honor of being a member of the
prestigious Chambre Syndicale de la Couture.

Expansion
expanding - signature hotels
went with his image and reputation
big developments Harrods London

blend of Middle Eastern style and

European
fragrance and cosmetic
Further enhance image

 In 2010, ES signed up for mega yacht

designing the interior and exterior of the three luxury yachts

 two main functions -the business and

creative function
creative function was controlled by Saab
himself
business was managed by Cavalcanti
-Operations

Product line at Elie Saab

Haute Couture
The term Haute couture was
typically related to clothing that was
made to order for a specific
customer and was made from the
high quality and expensive fabric.
The clothing was sewn with special
attention to detail and finish by
knowledgeable and experienced
seamstresses.

 This was often a time consuming task as it required

hand executed techniques.
This line was very efficient and ultra competitive
because of high quality as Saab himself catered to
every customer.

Ready to wear (RTW)

The company felt that it was
necessary to introduce into its
exiting market an RTW line that
didnt require the customized
service or price in typical
couture.
This line was outsourced.
So it provide its customers with
more accessible ready
garments that had the ES
name style and unique design

Wedding dresses
The wedding dresses were
ordered and sold through
the ES couture salons.
Accessories
This line included shoes,
handbags, scarves, belts,
fragrance and cosmeticd.

Qualitative Data
The revenues showed a growth of 27% in 2007 which grew to 49%
as compared to the previous year.
Super wealthy tier comprised of one quarter of luxury spending, the
aspirational market incorporated 36% of spending and the
accessible tier comprised of 40% of the spending.
The high-net-worth-individuals (HNWI) grew 17.1% to 10 million in
2009. Global financial HNWI also grew to $ 3.9 trillion showing a
gain of 3.9%. In the Asia Pacific region, the HNWI population rose 3
million showing a 25.3 % change.

 Luxury Product Consumption: Asia 37%, Europe 35%,

US 24% and rest of the world is 4%.
Elie Saab employed 150 workers at 3 locations. 150
were located in Beirut, 15 in Paris and 5 in London.
The company had 4 product lines.
In order to qualify as a couture brand, a company has to
produce 25 new original designs of the day and evening
wear collection.

SWOT Analysis
Strengths

Strong brand image and awareness in

consumers minds
Highly personalized customer experience,
garnering customer loyalty
Focus on high quality and emphasis on
the exclusivity factor
High prices charged as a result of
targeting a niche market, which eventually
results in higher profits
Perception of Elie Saab as a luxury brand
Well-known and loyal customers, which
further enhance the brand image

Weaknesses

Focus on a single niche of upper-class

consumers, which increases the companys
risks owing to lack of diversification
Limited customer base
Major decisions mostly made by a single
individual - i.e. Elie Saab himself signalling
a lack of autonomy that might be needed to
continue and expand the business
Brand dilution due to addition of other
product lines
Low advertising budget
Low sales-growth in Asian and North
American markets

Opportunities
Expansion into the growing
consumer markets of India, Brazil
and Russia
Strong brand image to have a
strong consumer base to cater to
Focussing on the low cost
segments but with the co-branding
or through other venture
Low competitors left in the couture
brand lines; more room space for
growth
Growing into the product lines such
as causal wear but retaining the
same consumer segment

Threats

Non-presence in the countries can

lead to potential counterfeit products
there
Specialization in the couture industry
can lead to the companys inability to
affect hindsight
The centralized decision making in the
design process can carve out limited
potential of creativity
Other product lines in the other lowcost apparel can lead to selfcannibalization
The targeted consumer base is not
brand loyal but creativity admirers;
needs to build a substantive consumer
base.