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HISTORICAL BACKGROUND&
LACOSTE BUSINESS UPDATE
Davis Cup, 1927
RENÉ LACOSTE: A TENNIS CHAMPION
René Lacoste (1904 - 1996) entered the legend of tennis
when he and his team-mates “the Musketeers” stole the
Davis Cup away from the Americans for the first time in 1927
and again in 1928.
Not forgetting his numerous singles Grand Slam titles
ranking him world N°1 in 1926 and 1927:
• 3 French Open victories (1925, 1927 & 1929)
• 2 Wimbledon titles (1925 and 1928)
• 2 U.S. Open victories (1926 and 1927)
• Bronze medal at the Olympics in Paris, 1928• As well as 3 doubles Grand Slam victories:
• 2 French Open titles (1925 and 1929)• 1 Wimbledon title (1925)
RENÉ LACOSTE: “THE ALLIGATOR”
The true story of the “Crocodile” dates back to 1927
René Lacoste was nicknamed "The Alligator" by the American
press after he made a bet with the captain of the French Davis
Cup team with an alligator skin suitcase on the line.
The public immediately adopted this nickname which
conveyed the tenacity René Lacoste displayed on the tennis
courts.
René Lacoste had then a crocodile embroidered on his blazer
which ultimately became an emblem of worldwide renown.
Wimbledon, 1928
RENÉ LACOSTE: AN INVENTOR
René Lacoste developed and ordered in 1927 a personal set of
shirts offering comfort and solidity which became instantaneously
popular among the players.
Following this sportswear apparel “revolution”, René Lacoste
kept on innovating from patented string damper to the very first
steel racket, winner of 46 Grand Slam tournament titles between
1966 and 1978.
RENÉ LACOSTE: A TRUE GENTLEMAN
René Lacoste was not only considered as an “esthete” bringing out his elegant style, but
also known for his respect to opponents and his loyal friendship with his Davis Cup
team-mates, the “Musketeers”.
His influence still defines the brand values with reference to a sporting attitude as well
as authenticity and self-fulfillment, casual elegance and quality.
Wimbledon, 1928
Saint Cloud, 1927René Lacoste at French Internationals - 1927
Madame René Lacoste (Simone Thion de La Chaume)• Main career victories:
Girl’s British Junior (1924)Ladies British Championship (1927)French International Championship (1930, 1935, 1938 & 1939)French National Championship (1936, 1937 & 1939)
Catherine Lacoste (daughter of Simone and René Lacoste)• Ranked N°1 in the Ladies World Championship (1964 & 1968)• Main career victories:
World Team Championship at 19 years’ oldUS Open (1967)US Championship (1969)British Championship (1969)French Championship (1967,1969, 1970 and 1972)Spanish Championship (1969, 1972 and 1976)French National Championship (1968 and 1969)European Senior Ladies Team Championship (2002)
A FAMILY OF CHAMPIONS
FROM AN ICONIC PRODUCT TO A LIFESTYLE BRAND
• 1933, birth of La Chemise Lacoste
Code-named “1212”, Lacoste shirts made of a light knitted fabric called “jersey petit piqué” started selling to a large public in 1933.
Lacoste shirts soon became famous worldwide. They are still today the icon of the brand.
• Toward new product territories
The development toward new product territories was initiated in 1968 with the launch of the first Lacoste fragrance.
True to Lacoste heritage and always preserving the brand’s image, the whole collection now offers a diversity which makes Lacoste a lifestyle brand.
LACOSTE SYSTEM AND NETWORK
LG & BeltsLG & Belts
EyewearEyewear Home
textile
Home
textileWatchesWatchesFootwearFootwearPerfumePerfumeClothingClothing
GL
OB
AL
LO
CA
L
Mobile phonesMobile phones
DISTRIBUTORSDISTRIBUTORS
RETAILERSRETAILERS
CONSUMERS
Special initiativesSpecial
initiatives
LICENCEES
Fashion
Jewelry
Fashion
Jewelry
GLOBAL PARTNERS
BeltsSince 1982
Eyewearsince 1981
FootwearSince 1984
LeathergoodsSince 1969
Fragrancessince 1968
Clothing since 1933
Watchessince 1993
Home textilesince 2000
Mobile phone from 2010/11
Fashion Jewelry from 2011
GLOBAL PARTNERS
CEMALAC
Belts
Eyewear
Footwear
Leathergoods
Fragrances
Clothing
Watches
Home textile
Mobile phone
Fashion Jewelry from 2011
Groupe GL
THE CHOICE OF SELECTIVITY
A solid international network based on long-termpartnerships has been built from the early fifties.
With selectivity as a watchword, the homogeneous andworldwide distribution network preserves the brand’sspecificities:
affordable prestige, lifestyle positioning and multi-distribution (Lacoste boutiques and corners, department stores, sport shops, specialized shops, duty frees, etc.)
It also ensures our customers the right environment for thegenuine Lacoste products and provides good assistance tothem.
LACOSTE TODAY
• A success story
Relying on its authentic roots sports, Lacoste represents today a
modern lifestyle, unique and of high quality represented througha wide range of products for men, women and children: sportsand leisure apparel, footwear, fragrances, leather goods,eyewear, watches, home textiles and belts.
• 2 Lacoste products are sold every second
In 2010, 50 million items have been sold under the Lacostebrand, representing a total wholesale turnover of € 1.5 billionacross 112 countries through a network of 1112 Lacosteboutiques, department stores, sports shops, specialized
retailersand more than 2000 clothing corners.
15
LACOSTEGlobal sales
16
Split by activity remain roughly the same in 2010, with slight increase of Apparel weight
Lacoste Wholesale sales split activity (M€) – All productsUpdate May 2010
Lacoste Wholesale sales split activity (M€) – All productsUpdate May 2010
2009Total sales : 1’361
2009Total sales : 1’361
E2011Total sales : 1’549M€
E2011Total sales : 1’549M€
Footwear20%
Belts1%
Apparel60%
Home Textiles1%
Perfumes13%
Leathergoods3%
Watches1%Eyewear
1%Leathergoods
2%
Footwear18%
Perfumes14%
Eyewear1%
Watches1%
Belts1%
Apparel62%
Home Textiles1%
Total : 4% Total : 4%
17
AMERICAS: 30% of the Sales- NORTH AMERICA : 20%
E2011 :30%
E 2011 :51%
E 2011 :19%
Lacoste Wholesale sales – Weight by region (M€) – All productsUpdate May 2010
Lacoste Wholesale sales – Weight by region (M€) – All productsUpdate May 2010
18
LACOSTEin the USA: a historic story
19
Boston: The Crocodile’s birthplace
20
USA : Home of the Musketeers’ glory years
21
USA : Where René Lacoste and Simone Thion de La Chaume first met
22
USA : Catherine Lacoste becomes the first French and amateur woman to win the Women’s US Open
23
USA : Bernard Lacoste is inspired to build a global company
24
First steps in the USA
• 1923 – The first mention of René Lacoste’s nickname, the « crocodile », in the US by the Boston Herald.
• 1927 – The crocodile is embroidered on René Lacoste’s blazer.
• 1933 – The launch date of the industrial production of the L.12.12 in France.
• 1952 – Products begin to be exported to the US.
• 1950 – Lacoste enters the U.S. market by licensing its all-cotton shirts to David Crystal Inc., a New York-based manufacturer of apparel marketed under a variety of names, including Izod. The shirts were initially available only in white; after several years, in an attempt to broaden the shirts' appeal beyond the tennis court, colors were introduced.
• 1963 – The 1st steel racquet is invented by René Lacoste: this racquet will win 46 Grand Chelem tournament titles from 1966 to 1978. Distributed in the US by Wilson it was used by Jimmy Connors & Billie Jean King, among others.
25
First steps in the USA
• 1966 – Signing of the Izod license.
• 1968 – General Mills purchases David Crystal Inc.
• 1970s – The Lacoste shirt surges in popularity in the late 1970s with the advent of the "preppy" look.
• 1981-1982 – Peak sales years with around $400 million in sales in 1981.
• 1983 – The downturn of Izod begins. General Mills, using the "commodity" approach that it used with cereal, proceeded to saturate the market with merchandise. The brand invariably lost its upscale cachet, and combined with the rapid waning of the "preppy" look, sales and profits began to fall precipitously.
• 1993 – US rights taken back and creation of Devanlay US.
26
LACOSTE in the USA: A « rollercoaster» Story
27
US: Rebuilding the brand after the Izod years
US - Evolution of sales by product category1979 - E2010 - (M$)
9
9
0
0
20
1
1
97
95
16
99
126
00
30
27
94
133
93
21
00
92
1
22
23
23
197
7
386
9060
5
158
257
50
244
129
2
50
116
175
229
09
306
199216
04
13
35
117
03
330
44
166
76
11
139
2
10
345
05
20
93
26
06
107
315
E10
268
37
221
02
35
42
3
42
225
6
6
46
35
6
71
07
331
8 9
08
37
398
0
-12%
24
91
0
60
01
96
98
93
88
89
116
87
129
86
139
90
90
85
166
84
244
83
330
82
386
81
398
80
221
79
107
0
835
586
31
53
34
Clothing
Footwear
HomeTextiles
Watches
Perfumes
Leathergoods
Eyewear
Belts
Perfumes, Belts, Watches, Eyewear : Sales in USD calculated with average year FX rate
Izod (Crystal Brands) period US rights taken back and creation of Devanlay US (clothing distribution)
Creation of PB Footwear US (footwear
distribution)
P&G distributes fragrances after
Clarins
Home with Sunham
# ofboutiques 34 46 56 66 69 69221386755421
Years of retail investments
# stores X3 between 03-10
Fast POS opening with poor selectivity
Low AURSuffering from brand dilution
from over distribution and
low-end positioning
Clothing growth highly dependent
on polo
Distribution clean-up
1st country15% of tot.
sales