The company was diversifying its business into different fields such as accessories and was planning to offer more products such as aware, swimsuits, leather wears, etc. Quantitative Data Global luxury’ market is divided into three layers: 24% super wealthy, 36% aspiration and 40% accessible luxury. The world’s high-net-worth individual grew 17. 1% to 10 million. As of 2010 SEES employed 150 employees. Brand available at 45 multi brand retailers in the world. 15% of the sale is budgeted for promotions through various ways. Total sets rose 7. 06% from 2007 to 2008.
Owner’s equity increased 129. 5% from 2007 to 2008. The percentage Of net income to sales rose from 17. 77% to 20. 03% in 2008. Sales increased 32. 8% from 2007 to 2008. Total operating expenses of the company decreased from 66. 95% to 58. 84% in 2008. Highest number of millionaires is in Australia (34. 4%). Maximum marketing expense is done on fashion shows by the company which is 8. 74% of the total sales. Sales of Haute Couture decreased to 41% from 59% from 2006 to 2008. The prices of the Haute couture range from $ 4,000- 1 The European market increased to 29% from 2% in 2008.
Qualitative Data SEES was formed by Lie Saab. The company targets high end customers. The company provides exclusivity to super wealthy customers through designs, colors, size, fabric, etc. SEES positions its brand as the most luxurious and royal brand. Most of the promotions of the brand are done through fashion shows in various cities. These fashions shows give media coverage and news in newspapers and magazines which promotes the brand and create awareness in the customers. The company reaches its global Customers by having shops in multi brand retailers.
The company also engages itself in partnership with high end customer brands. The company feels that it provides modernity and elegance beyond the conventional limits of fashion. The company has gone into the business of ready to wear Rive’ products which has vitally made success and the market of ART has grown over the years. The trends and preferences of the people are changing as people tend to wear more casual dresses. Now people try to mix luxury with affordability. The company mainly offers four category of the product. Haute Couture, ART, Wedding Dresses and Accessories.
Haute Couture was typically related to clothing that was made to order for a specific customer and was made from high quality and expensive fabric. The finished dresses were used in fashion shows and pictures were printed in catalogs. The process of conception to production of Haute Couture was headed by Lie Saab. The company was also managing corporate social responsibility. The was planning to diversify its product portfolio by offering new products such as weary, casual wear, men’s clothing, swimsuits, lingerie, leather goods, etc.
Australian market has a lot of potential. Major Issues The company was getting into too much diversification which could affect its initial brand image. The initial product market of the company was declining. The sales market of Haute Couture fell from 60% to 40% in 2008. Dilution was another problem that could come in near future. The trend of people consumption behavior was changing as people were consuming more ready to wear products. SEES has gone into its maturity stage due to which the sales are declining.