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Elie Saab: Growth of a Global Luxury Brand Case Solution
| Solution Id | Length | Case Author | Case Publisher |
|---|---|---|---|
| 1279 | 615 Words (3 Pages) | Nadia Shuayto | Ivey Publishing : W12092 |
A Word File
The case is about Elie Saab, a global luxury fashion brand. The brand symbolizes royalty, image, quality and fashion. It only caters to wealthy elites, and is also popular among celebrities. It started back then when Saab, owner of the brand, opened his first atelier. He gained a lot of popularity on media, and was labeled as “precocious genius”. Initially, the product line was luxurious evening gowns and wedding dresses, which gradually expanded to RTW (Ready-to-Wear). He launched RTW first in Milan and then the sales increased worldwide. In the beginning, Saab started off with 10 employees, and now the organizational hierarchy is more developed. ES group’s employees are located at Beirut, Pairs, and London. In 2010, 130 employees at Beirut worked in the global headquarter, initially where couture atelier was located, 15 employees at Paris comprised of Communications and Public relations, and 5 employees at London had a sales team.
Following questions are answered in this case study solution
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Summary
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Main Problem
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Alternatives
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Recommendation
Case Analysis for Elie Saab: Growth of a Global Luxury Brand
2. Main Problem
The main problem persisted in the changing trends of the fashion industry. Consumer preference for royal brands and the high-class taste was diminishing. The high-class brand tastes of American consumers were being replaced by casual clothing. Once, the couture daywear was worn by the ladies at social events, however, now the market for couture is replaced by new-world billionaires particularly from the Middle East and Russia. These consumers do not value the exquisite handmade clothes rather they prefer to put their closets in the museum. Therefore, ES also had to face a similar situation. Since the demand for haute couture was declining; consumers were shifting to other brands of casual clothing. New companies and brands were emerging in casual clothing and ready-to-wear, and a new generation of elite and wealthy consumers was attracted to these brands.
3. Alternatives
ES considered some strategies to cope up with the changing consumer preferences, and the newly emerging market. However, it came up with three alternatives 1) Expanding the brand geographically, 2) Expanding the product range, and 3) Introducing more daywear RTW collection. Nevertheless, the alternatives are advantageous but there are some disadvantages associated as well.
The geographic expansion will increase the consumer base and market presence of the company. The brand will spread all over the world, which will also give recognition to the brand, and thus the market size will increase. However, each segment or country has a different consumption pattern and economic conditions, and the company has to come up with a different business models for each market. Entering into the new markets will need huge investment and expenditure.
The Company also considered increasing the product range, and including everything under the brand name of ES which is considered luxurious, from cars to hotels and swimsuits to lingerie. Although, the strategy would diversify the product portfolio there are existing players in these markets, and ES will need to strive through to get its share.
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