IntroductionELIE SAAB (also known as ES) is a haute couture brand founded by Lebanese fashion designer Elie Saab in Beirut in 1982. (FMD, nd) In the 1980s, his designs featuring embroidered lace, precious fabrics, pearls, crystals and other rich details began to attract royalty from around the world, which had a positive impact on his brand's reputation. (FMD, nd)Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get the original essay In the 1990s, Elie Saab gained remarkable recognition outside Lebanon after showcasing his high fashion and ready designs -to wear in Rome, Milan and Monaco. (FMD, nd) However, it was not until 2002 that ELIE SAAB became an internationally established luxury brand, when African-American actress Halle Berry received the Academy Award for Best Actress in a highly decorated red dress designed by the Lebanese fashion designer. , Elie Saab has a showroom in Paris and a limited number of flagship stores and boutiques in Europe, Lebanon and Dubai. (Shuayto, N. and Kayyal, H., 2013) Due to its distribution strategy which mainly focuses on Europe and the United Arab Emirates, Elie Saab has a very weak presence in the Asia-Pacific region, which is already targeted by most investors. from its competitors given its strong potential and the growing number of high net worth individuals (henceforth HNWI). (Capgemini Lorenz Curve Analysis, 2013a) In view of these considerations, this essay will analyze ELIE SAAB's business model using a combination of theoretical frameworks and socio-economic data which will be used to better understand its current strategy. Next, the information gathered about the company's strengths and weaknesses will be used to design a distribution strategy that should help it expand and increase brand awareness without jeopardizing its luxury status. As pointed out by Shuayto and Kayyal (2006), the main objective of ELIE SAAB has always been to attract and retain customers who appreciate and demand unique and high-end fashion designs made from the finest materials. richer. As a luxury fashion brand, one of the main challenges ELIE SAAB faces is to satisfy different consumer needs and achieve stable revenue without losing its prestigious status. (Okonkwo, U., 2007) Regarding distribution, Orlovic (2003) noted that those running luxury businesses must be very careful not to ruin their brand image when selecting key distribution channels , as seemingly advantageous options such as partnerships and licensing deals could end up devaluing even the most successful luxury brands. In fact, to be perceived as exclusive and extraordinary, a luxury fashion brand must be built in such a way that it is associated with wealthy individuals who belong to the highest strata of society and can afford extremely expensive and unnecessary goods. (Kapferer, J., 2012) In light of these observations, it can be inferred that the strategic plan adopted by ELIE SAAB has certainly proven to be effective because thanks to its limited number of flagship stores, its reasonable licensing strategy and its association with royalties and celebrities, the Lebanese brand is primarily associated with rarity, exclusivity and fine materials and evokes desirable and attractive lifestyles. As pointed out by Osterwalder and Pigneur (2013), a number of elements need to be analyzed in order to evaluate a company's business model and provide a clear picture of its current market position, such asvalue propositions, key resources, key partners, cost structure, revenue, key activities, distribution, customer relationships and customer segments. The table below uses the “blocks” described by Osterwalder and Pigneur (2013) to analyze ELIE SAAB's business model. ELIE SAAB aims to create exceptional, premium designs made from exquisite materials and offer competitive prices without sacrificing quality or exclusivity. (FMD, nd) • Flagship stores, salons, fabrics, materials, sewing and design tools (physical resources) Website, brands (intellectual resources) Talent, skills and creativity of designers; sales force in flagship stores (human resources) Equity (financial resources). Retailers and department stores, including Harrods (Elie Saab. 2014)Pronovias (Pronovias.com, 2014)Beauté Prestige International (Elie Saab, 2011)Fabric and material suppliersManufacturers of ready-to-wear, accessories and shoesCompanies investing in hospitality (Commerce Arabia, 2008)Yacht companies - Oceanco and Weyves International Ltd (Lorie, A., 2010)Key activities Cost structure RevenueHigh fashion designReady-to-wear clothing, accessories and footwear designWedding dress designStore design luxury flagshipsWebsite maintenanceMaterialsFabricsSelling, general and administrative expenses (salaries, commissions, marketing, advertising, travel expenses)ManufacturersFashion showsDirect salesIndirect salesLicensing agreementsPartnershipsCustomer segmentsCustomer relations Distribution channelsThe main target customers of ELIE SAAB are: women stylish and wealthy women who appreciate unique, high-end clothing, accessories and shoes made from premium materials. quality materialsCelebrities (natural target)Royalty (natural target) ELIE SAAB's main objective is to retain existing customers while attracting new ones. Their customer management strategy revolves around: Dedicated help support in flagship stores Personal and exclusive services offered to selected customers (mainly royalty and celebrities) Excellent customer support offered by carefully selected partners Distribution has certainly played a fundamental role in creating specific emotional associations with ELIE SAAB, as the Lebanese designer's creations are only distributed through the following channels: The company's flagship stores A limited number of multi-brand retailers like PronoviasExceptional concessionsFashion showsA growing company operating in different markets, ELIE SAAB cannot be analyzed solely in relation to its internal strengths, strategic plan and objectives. In fact, as noted by Bamford and West (2010), a company's management, operations, and ability to achieve its goals are affected by a variety of internal and external factors that can be analyzed through a very common management tool called SWOT (acronym for SWOT). strengths, weaknesses, opportunities and threats). The main advantage of SWOT analysis is that it allows management to determine whether strategic objectives have been achieved while designing a new strategy that maximizes a company's strengths, minimizes or eliminates its weaknesses, reduces its vulnerability to external factors. threats and helps take advantage of new opportunities. (Bamford, CE and West, GP, 2010) From an analysis of ELIE SAAB's operations, business model and internal/external environment via SWOT, it was found that one of the most The company's weakness is its weak presence in high-wealth markets, particularly Asia, which means that aProper distribution and branding strategy should be developed for that particular area. (Appendix A) In view of the data and observations illustrated so far, we can deduce that one of the main weaknesses of ELIE SAAB is its weak presence in Asia, the potential of which has already been recognized by many luxury brands already established in various countries. locations in the Asia-Pacific region. (Daedal Research, 2013) Therefore, this section will present a new strategy to minimize the distribution-related weaknesses of ELIE SAAB that emerged from the company's business model assessment and SWOT analysis. (Appendix A) This strategy will revolve around company-owned flagship stores, which should help increase the brand's reach in the Asia-Pacific region, without losing its luxury status, exclusivity or credibility. As Chevalier and Mazzalovo (2012) observed, there are various dynamics and factors that must be taken into consideration when developing a distribution strategy for a luxury brand. First of all, a luxury brand must embody timelessness, rarity, continuity, stability, a rich lifestyle and prestige, because without these associations it would not be perceived as luxurious, otherwise it would be considered like a regular fashion brand. (Chevalier, M. and Mazzalovo, 2012) In fact, the difficulties faced by companies like Burberry, Gucci and Chanel suggest that when a luxury brand is managed in such a way, it also makes it available through licensing agreements. uncontrolled licensing and ineffective management control. , its image would be seriously damaged, which would cause it to become diluted, suffer losses, or even lose its luxury status. (Kapferer, J., 2012; Moore, CM and Birtwistle, G., 2004) In this regard, ELIE SAAB's distribution strategy has contributed to preserving its exclusivity and qualitative rarity by making its lines available through a number limited channels, including a few flagship stores, department stores, concessions and fashion shows. (Elie Saab, 2014) However, as of today, ELIE SAAB's haute couture line can only be purchased in its flagship stores in France, Lebanon, while its ready-to-wear line is distributed in a limited number of stores in North America, Mexico, Hong Kong, Europe, Lebanon and the United Arab Emirates. (Elie Saab, 2014) But thanks to special concessions and licensing agreements, the brand's ready-to-wear collections are also present in South Africa, South America and Russia. Considering that the global distribution of wealth has changed significantly over the period Over the past decade, it follows that ELIE SAAB's initial distribution strategy will have to be adapted to the latest socio-economic phenomena in order not to l prevent it from becoming a strong brand in high-potential markets where competing luxury brands are already well established. (Daedal Research, 2013) In fact, ELIE SAAB has a very small presence in the Asia-Pacific region, where the number of HNWIs increased by almost 13% in 2012, reaching 3.68 million people whose total wealth s amounts to approximately 12,000 billion dollars. (Capgemini Lorenz Curve Analysis, 2013a) To be more specific, China is an ideal target market where ELIE SAAB would definitely benefit from establishing a new flagship store and implementing a brand strategy aimed at increasing its reputation and strengthen its presence. . The main reason why China was chosen as the area for the company's distribution strategy to focus on is that its wealth and GDP statistics are very promising and many competing luxury brands have already identified it as a market with high potential. (DaedalResearch, 2013; Capgemini Lorenz Curve Analysis, 2013b) Furthermore, as Kapferer (2012) points out, the luxury sector is still experiencing remarkable growth in Asia, despite the negative effects of the 2008 financial crisis, which suggests that by launching a new flagship store in China, ELIE SAAB would become less vulnerable to financial crises and other potentially negative economic phenomena. Although there are different distribution channels that ELIE SAAB could use to enter the Chinese market, the launch of a company-owned flagship store combined with an adequate promotional campaign would increase brand awareness in the aforementioned area, giving the company full control over its customer service and pricing strategy without diluting the brand. In fact, cases like Gucci and Burberry suggest that, as beneficial as licensing agreements and concessions may seem, primarily because of their lower costs and ease of management, they can easily lead to brand dilution and to a decrease in sales when partners are not chosen very carefully (Moore, CM and Birtwistle, G., 2004) In view of these considerations, it should be noted that the current brand strategy of ELIE SAAB has allowed it to retain and strengthen its association with royalty, celebrities and luxury and that its position in the Asia-Pacific region is not strong enough to risk being perceived as a diluted brand. It follows that the best way for the company to expand in China would be to open a new flagship store showcasing the brand's haute couture, ready-to-wear and accessories lines to increase its awareness and ensure that consumers in the Asia-Pacific region view it as an exclusive and prestigious brand before considering more convenient distribution channels. As for China, an analysis of the distribution of the country's GDP among different provinces combined with more practical considerations, such as strategic placement, wealth concentration and geographic location/international relevance, revealed that Beijing would be the he most suitable location for the new ELIE SAAB flagship stores. (The Economist, 2011; Lu, PX, 2011) As reported by MacPherson (2013), Wangfujing is a shopping area in Beijing known for its wide range of department stores, boutiques and high density of luxury boutiques. It follows that a flagship store in Wangfujing would increase the awareness of the ELIE SAAB brand in China while placing it on the same level as other popular luxury brands, including Chanel which has a boutique in the same area. (Chanel, nd)Interior design and architecture play a fundamental role in ELIE SAAB's flagship store strategy, as Elie Saab has personally contributed to the design and decoration of most of its stores . (Elie Saab, 2012) The company's existing flagship stores share a number of common characteristics, such as simplicity, a luxurious atmosphere and modern details, which must be preserved in order to ensure continuity and consistency. As seen in the images above from ELIE SAAB's flagship stores in Dubai and Paris, travertine stone, leather furniture, dark wood and warm lighting are also part of the overall approach of the company in interior design that must be respected when designing its new flagship store in China. Unlike the majority of ELIE SAAB stores around the world, the new flagship store will not only showcase the Lebanese designer's line of accessories and ready-to-wear, but also his haute couture creations. It would therefore be appropriate to divide the interior space into two sectionsdistinct, one for the brand's ready-to-wear and accessories line and one for its haute couture range, to create a slightly different atmosphere for the latter which could emphasize superior value, luxury and the exclusivity of Elie Saab's haute couture creations. Regarding the translation of the brand name, most Chinese people do not speak English, which means the company should have a Chinese version of the ELIE SAAB logo in its new flagship store to allow locals to understand and to become familiar with its brand name. (Zou, S. and Fu, H., 2011) As pointed out by Hines and Bruce (2007), marketing plays a very important role in the creation and growth of luxury fashion brands and the launch of flagship stores can help create brand awareness. while increasing customer loyalty in a certain area. By opening a new flagship store in a strategic commercial district in China, ELIE SAAB will position itself as a luxury brand and will be able to strengthen its brand image within the Asia-Pacific region. However, to achieve this, the company will need to support its flagship store strategy with a number of promotional activities aimed at raising consumer awareness of the brand's expansion. Firstly, three fashion shows could be held in the new flagship store to attract consumers' attention and raise awareness of the brand's offering among opinion makers. Ideally, local celebrities would be invited to attend to strengthen ELIE SAAB's association with glamorous personalities and lifestyles. According to Kent and Brown (2009), another great way to promote a newly opened flagship store would be to attract the fashion press by offering free products to local fashion icons so that they can be photographed as they exit the store .Overall, the company should ensure that local fashion magazines and newspapers dedicate special sections including articles and images to the launch of the new ELIE SAAB flagship store and the fashion show that will be organized for promote it. When it comes to international promotion, the company could use the news section of its website as an inexpensive way to inform visitors about the upcoming flagship store and post photos and videos of the aforementioned fashion show . Among the main weaknesses of creating a new flagship store are administrative expenses, salaries and other costs. In this regard, Kent and Brown (2009) pointed out that flagship stores are generally quite expensive to create and operate, which is why the majority of luxury brands can only afford to own a limited number of their own stores. in the world. Additionally, the company would face a number of potential obstacles, such as cultural differences and tax barriers, which would require it to invest in relevant research and surveys. For example, most of the promotional activities required for the launch of ELIE SAAB's new flagship store could not be undertaken without the knowledge and expertise of one or more marketing professionals who can help the company understand and penetrate the Chinese market. Last but not least, the company might have difficulty in fully managing and controlling its flagship store based in Beijing, mainly due to geographical and administrative reasons. Considering that excellent customer service is essential to providing people with a unique and luxurious shopping experience, ELIE SAAB will pay special attention to the selection and training of staff members who will work in its Beijing-based flagship store. As Kent and Brown (2009) observed,..