Dior Pop-Up Shop
Professor Alessandro Cannata
By: Reese Timberlake, Ryanne Frazier, Meagan Henry, Erica Garcia
“ True Luxury requires genuine
materials and the craftsman’s
sincerity. It is only meaningful
when it respects tradition.”
- Christian Dior
Christian Dior Group is a solid, affluent and highly achieved luxury brand. Under LVMH Moet Hennessy Louis
Vuitton, the Dior brand is characterized by outstanding resilience in an economic climate of such monetary
uncertainty. Christian Dior aligns itself with the principles of quality, alliance, tradition, and innovation. Dior’s market
responsiveness (especially as it pertains to retail) is highly action-oriented, thanks to their talented team ambitions.
There are many Dior Key Success Factors that contribute to this world-renowned success. These include: quality,
an entrepreneurial spirit, the strive to pass on expertise, brand exclusivity, and the drive to surpass themselves.
The value of quality is highly appreciated throughout the country of Sweden, and Christian Dior is a brand that
encompasses that. Sweden - a country of tremendous innovation rooted in folklore tradition - will prove to be a
promising environment for a brand with such entrepreneurial spirit. Dior seeks to inspire, and they have the financial
and artistic means to do so.
However, for plans of new international retailing, results are subject to various types of uncertainties that don’t have
to be accounted for in homeland-national territory. For Dior, these include changes in customer purchasing power,
the value of operation assets located abroad, economic changes that are not necessarily simultaneous from one
geographic location to another, and provisions of corporate or tax law, customs regulations or import restrictions
imposed by some countries that may penalize Dior.
Other, less fiscal risks and threats to take into account include vast cultural differences between France and
Sweden, an inability to timely identify a Swedish target market and individual target customer, and seasonality
Fortunately, the plan to open the pop-up shop during Christmas time will serve as an excellent opportunity to cater
to such an unidentified target market’s tastes and behaviors. The Christian Dior Brand does not currently operate
anywhere in Sweden. The opportunity to open a store in the country’s capital is an exciting new opportunity.
Starting smaller with an impermanent Christmas season pop-up shop will surely add a new air of excitement and
lust after the Dior brand and their beautiful, timeless pieces. Dior has stood the test of time, through innovation,
expansion and transformation. Sweden will welcome Dior’s elegance warmly, even during such fiercely cold
1946: Backed by Marcel Boussae, Christian Dior found his own
couture house in Montaigne, Paris.
1947: His first collection, called The New Look, is launched.
Miss Dior perfume is created. Pierre Cardin begins at
Christian Dior as the “leading man,” and remains there until 1950.
1948: The luxury ready-to-wear house is established in New York
at the corner of 5th Avenue and 57th street.
1949-1950: The licensing system is created. Dior goes on to
license all accessories. Within three years, all couture house will
copy this system.
1955: Yves Saint Laurent becomes Christian Dior’s assistant.
Launch of Dior lipstick, starting the beauty line for Dior.
1957: Christian Dior dies of a heart attack. Yves Saint Laurent is
appointed artistic director.
1960: Yves Saint Laurent leaves Dior, Mare Bohan succeeds him
and create the Slim Look in 1961.
1968: The Dior Perfume company is sold to Moet Henessey.
1973: Creation in France of the ready-to-wear fur collection. This
will then be manufactured under license in the United States,
Canada, and Japan.
1978: Bankruptcy of Marcel Boussae group, assets are
purchased by the Willot Group.
1981: Willot Group declares bankruptcy.
1984: Investors led by Bernard Arnault, takes control of former
1988: Christian Dior takes a 32% equity stake in the share capital
of LVMH, stake is revised in 1994 to 41.66%.
1996: John Galliano is named creative director of Christian Dior
2001: Hedi Slimane, new creative director for the Homme line,
presents his first collection.
2012: Raf Simmons is named artistic director of the ready-towear,
Haute Couture, and accessories collections.
Dior Business Model
From Single Brand to Luxury Conglomerate
Christian Dior defined a new business model in the post-war years, establishing Ready-to-Wear boutiques
and licensing deals; his designs were coped and sold in the USA as well as Europe. Many consider Dior’s
model to be a forerunner of fast luxury fashion. Now, Dior is divided by the Couture Management Group and
the LVMH Management Group. Creative Director Raf Simons has complete freedom over Dior’s designs.
Dior Ready-to-Wear, Accessories, and Beauty have a simple yet broad Business Model. Dior sells RTW,
Accessories and Beauty mainly through Dior flagships around the world. Select Dior accessories are
sold in department stores such as Bergdorf Goodman and Barneys NY. Select Dior beauty is sold in
department stores such as Macy’s and Bloomingdales, as well as at Sephora.
Dior has also opened concept shops, such as the Dior Homme boutique on 30 Avenue Montaigne in
Paris, instilled by previous designer Hedi Slimane.
Dior makes most of their profit from licensing agreements, cosmetics, perfume, and accessories. With the
influence of couture houses and designers changing over time, only a small clientele can afford the time
and expense demanded by true couture clothing.
Therefore, Dior has adopted a business model that allows them to generate most profit off of smaller accessory
goods and beauty products via wholesale channels and Dior flagships (Basics Fashion Management 101).
Executive & Supervisory
Statutory Auditors as of June 30, 2014
Dior is the ultimate symbol of Elegance, Excellence and Luxury. In the 21st
Century, Dior continues to define elegance and style with the same audacity that
inspired Monsieur Dior when he launched his house.
Products: From the renowned Bar suit to the grandest evening gowns, the famous
Lady Dior bag to the Dior VIII watch and Bois de Rose jewelry, the Dior Addict
lipstick and the best selling J’adore perfume, DIOR’s creations constitute an
Christian Dior’s vision has always been ahead of its time, fascinating women with
his ability to combine utmost modernity with timeless elegance.
Dior’s ready-to-wear accessories are on the more exclusive side in comparison to their
competitors. They provide a very limited amount of accessory goods to be distributed
through wholesale channels. Their ready-to-wear and haute couture pieces are only
distributed through Dior boutiques or upon request.
Dior sells luxury goods at a high price point. Leather goods can range from $3,000-
$6,000, while a ready-to-wear dress can typically range from $3,500-$5,000.
>> Grow within their directly operated boutiques
>> Base their market on demand from “aspirational” customers rather than
from the wealthy elite
>> Focus on keeping their brand at a certain level of prestige by
emphasizing quality, innovation and creativity
>> Use visual storytelling to advertise products
>> Strong Luxury brand name & image
>> Strong presence over numerous luxury
avenues across the world
>> Various product lines
>> Excellent branding & advertising strategies
>> Upper management
>> Support young fashion artists & designers
>> Presence in a limited market
>> Low revenue & presence in Latin &
>> Low brand recognition amongst men
>> Expanding in emerging markets
>> Expanding in other regions
>> Focusing on green initiatives
>> Investing in the male market
>> Tough, existent competition
>> Increasing number of new designers in luxury
>> Animal rights groups
Brand Identity Matrix
>> Exemplifies fashionable fabulousness
>> Internationally pleasing
>> Visually impacting
>> Timeless aesthetic
>> Vibrant color and design
>> City Woman
>> Loyalty proves satisfaction
>> Personalized targeting
>> Engaging relationships
>> Customers trust Dior
>> Glamourous products
>> Depicts luxury
>> Elegant sophistication
>> Genuine materials and craft
>> Luxurious elegance
>> Vision of beauty and
>> Respects tradition
>> Creative originality
>> She feels beautiful when wearing Dior
>> She feels of high class
>> Her clothing makes a statement
>> She feels a bond between her and
Dior has distribution in 6 continents, 44 countries, totaling 146 doors.
All accessories are under licensing agreement as well as the ready-to-wear collection,
which is manufactured under license in the United States, Canada, and
Annual Spending Figures
Dior puts exceptional effort into strategizing the way they advertise. They strategize their advertising
methods through their campaigns, digital magazine, YouTube channel, IPhone app, and their social
media sites; Facebook, Instagram, and Twitter.
When it comes to campaigning, Dior pursues in-style celebrities to model their latest and greatest
achievements at the time. In their latest campaign, “Be Dior,” Dior decided to use twenty four year old
actress, Jennifer Lawrence. In the campaign shot by photographer Paolo Roversi, Lawrence poses in
sleek Dior dresses with minimal makeup to capture the “natural aura of Jennifer Lawrence” (Kinonen).
Dior features these campaigns within all of their advertising methods. Dior’s magazine and iPhone app
brings the latest and the best ranging from runway shows, make-up items, perfumes, skincare products,
ready-to-wear collections, and watches.
Direct Marketing Initiatives
Dior’s latest direct marketing initiative includes an interactive mobile-to-desktop tactic between
their website and iPhone app. This initiative works by entering a device-specific four-digit
code found on their mobile website for WonDiorland. By using this tactic the Dior consumer
can come across further content refined from the brand’s latest fragrance, Dior addict. This
direct marketing initiative coordinates with Dior’s developing approach for their fragrance
launch and not only encourages consumer interaction within the brand’s online platforms but
also accommodates them with exclusive Dior content using a community based campaign
Change took place in the Swedish fashion
industry around the start of the Millenium.
A new generation of architects, chefs, and
designers no longer took inspiration from other
countries abroad, but instead looked in their
The Swedish Industry today is focusing on
sustainability, functionality and affordability,
and is thriving on their blogging culture.
By analyzing our target consumer we were
able to identify key industry factors, and key
players in Sweden that support this new
- The Government of the Kingdom of Sweden
Operating as a collegial body
with collective responsibility
- Riksdag ruled by Prime Minister Kjell Stefan
- Political parties are stable
Five of current seven have been
represented in Riksdag since 1921
- Job stability and security are highly valued
70 per cent of Swedish workers belong to
a union, making Sweden one of the most
unionized countries in the world
- Added tax value is 25%
- Sweden has the most digitally connected
economy in the world, and its
forward-thinking culture fosters
- Known for innovative thinking and design;
birthplace of pioneer such as H&M,
Spotify, Skype, Electrolux, and Ikea
- Engineering products comprise more than half of
Sweden’s exports – nearly 54 percent.
Electronic equipment, machinery and
motor vehicles are the most important
goods in this category
- The average household disposable income per
capita is 27,456 USD
- The inflation rate in Sweden was recorded at
-0.30 percent in December of 2014
- There is a considerable gap between richest and
poorest; the top 20% of the population
earn more than four times as much as the
- 1 Swedish krona amounts to $0.12 USD
The Swedish central bank has cut its main
interest rate to zero in an attempt to
combat deflation. The cut of 0.25% was
bigger than expected, and led to a fall in
the krona against the dollar and the euro
- Swedes avoid plastic as much as possible, all
stores will provide paper bags or boxes
- Sweden is in the front line as the world embarks
on a shift to more sustainable energy
- In 2005, Sweden introduced a special five-year
program designed to boost energy
efficiency in industry.
- Huge investments in energy consumption
- There are over 3,000 wind turbines in Sweden
for wind power
- Allemanstratten: gives everyone the right to
enjoy Swedish outdoors. This is written
into the Swedish Constitution
- Swedish etiquette involves the ritual
enactment of equality
- Value “Lagom”: avoid extremes in reference to
social behavior, everything in
- Participation in the arts is heavily promoted
through many cultural centers, public
libraries, open shopping streets, and
communal music schools give citizens
an opportunity to exercise their creativity
- Stores and shops close early, and many in
businesses close in July for a four to six
week holiday period
- Only work until 5 pm
- Swedish Consumer Agency with a National
Board for Consumer Complaints located in
- Sweden is part of the EU, therefore most goods
can be bought from other countries with
out restrictions, although VAT and duty
may still apply
- Heavy emphasis on gender equality at home and
in the work place
- Part of the European Agency for Health and
Safety at Work
- The Swedish Work Environment Authority
Sweden: Industry Analysis
The Swedish fashion industry continues to grow with total sales amounting to 237 billion kronor
in 2013, exports counting for 62% of this figure. (Boost for Swedish Fashion Industry Abroad)
Sweden is an export dependent country, with more than half of what Sweden produces being
exports. In 2011 sales totaled SEK 206 billion, however of this number only 83 billion are sold
in the domestic market. Although the fashion industry in Sweden continues to grow in size,
so does the amount of exports. Exports in Sweden attribute to 60% of the sales, while 40%
remain domestic. The high ratio of exports to the domestic market is primarily due to H&M.
The Swedish global company exports approximately 94% of sales. (Portnoff)
Stockholm is the capital of Sweden and the most populous city in the Nordic region with a
total population of 2.2 million in the metropolitan area. Stockholm is the cultural, political, and
economic center of Sweden, encompassing over one third of the country’s GDP.
In recent years tourism has played a big part in Stockholm sales. Stockholm County is
ranked as the 10th largest visitor destination in Europe with over 10 million commercial
overnight stays per year. (Welcome to the Capital of Scandinavia)
Stockholm houses some of Sweden’s most stylish shops
and boutiques showcasing innovative Scandanavian
design. Swedish culture is very tradition based and therefore
Stockholm has lots of vintage fashion and antique stores. In
terms of luxury brands and designers Stockholm has
high-end department stores as well as retailers that carry
designer brands. Brick and mortar
designer shops are less frequent because the antique stores
or traditional Swedish boutiques stand on there own, rather
than the luxury designers.
Anna Holtblad - Known as one of the pioneers of
contemporary Swedish fashion. Over the past two decades
Holtblad has stayed true to her idea of timeless Scandinavian
fashion. Her price ranges from a loose fitting t-shirt at SEK
766 to a Mohair blend coat at SEK 4,196.
Nathalie Schuterman - An exclusive boutique that
stocks high-end international designers such as: 3.1
Philip Lim, Bottega Veneta, Miu Miu and Christian
Nordiska Kompaniet - A luxury department store
that has all the must-have Scandinavian fashion
pieces as well as international designers.
Sturegallerian - One of the most exclusive shopping
malls in Sweden. Sturegallerian has over 50 luxury
boutiques and gourmet restaurants. It’s a favorite of
Stockholm’s elite and royalty is often seem shopping
Functionality & Affordability
The fashion industry in Sweden has always been ahead of its time. When designers were still putting large logos on garments
in the 1990’s Sweden began producing functional everyday wear, making Swedish fashion cool. Brands like Acne and Cheap
Monday came on the scene with huge popularity because they created clothing the young generation could afford.
Michael Elmenbeck, one of the curators and founders of Bon Magazine stated:
“We wanted fashion we could afford. I guess it is part of our socialist heritage. Just look at H&M and IKEA, it has shaped us.”
H & M is still synonymous with Swedish fashion today because of the functional, trendy, and affordable pieces it offers. (Dagliden)
Sustainability has become very important to Swedish fashion designers.
Gudren Sjoden is a pioneer of sustainable fashion focusing on using textiles and natural materials that fit all ages and figures.
Shoe Company, Swedish Hasbeens, entered the market in 2006 producing sustainable handmade collections in small factories,
emphasizing respect for people and the environment. (Swedish Fashion From Catwalk to Sidewalk)
Yvan Rodic, a regular attendee of Stockholm Fashion Week, says the country’s blogging culture contributed to its global success.
“Sweden is a pioneering country when it comes to blogging,” he says. “In the last decade, people from around the world have
started looking at Swedish blogs for inspiration -- mostly to enjoy the photos since they don’t necessarily understand the language.”
Readers have then been educated on the brands and how to create outfits without spending a fortune. “I think this was a perfect
match for the world of blogging since it promotes individuality and helped Sweden become a mini phenomenon in fashion,” Rodic
Being that our Dior pop up shop is being held in Sweden, we wanted
to focus on the luxurious Swedes born in the later millennial generation,
also known as Generation x consumers, and the baby boomers as our
target customers. The Sweden population is estimated to be 9,723,809
people with 1, 385,000 of those people making up the Stockholm
population. 50.9% of the Sweden population is between the ages of
25 to 64. The median age in Sweden is 41 years old with a population
growth rate of 0.79% (Sweden).
As for the baby boomer generation, 77 million people were born
between 1946 and 1964. This baby boomer age group is greater in
terms of size and percent of the population in the U.S. for the first time
ever. The 55 and over age group authorizes more than three-fourths
of wealth. The boomer median family net worth is three times higher
than younger generations and they have an average annual disposable
income of $24,000. Baby boomers outspend all other generations by
an estimated $400 billion dollars each year on consumer goods and
services (Resources). Generation x adults range in age from 30-44
years old. In 2009, the total population of this generation was a total of
49,660,301 people. The median household income for the generation
x consumer is $73,601 between the ages of 30 to 34, while the
median household income for ages 35 to 39 and ages 40 to 44 range
from $81,107 and $84,278 (Demographic). 33% of consumers believe
that a household income of more than $250,000 is what is necessary
to consider themselves as “wealthy” consumers (Who). Consumers,
who make $200,000 annually, spent $141 per month on apparel items
for themselves. 60,000,000 consumers earn more than $100,000 a
year while 80,000,000 consumers earn less than that. According to
the Cotton Incorporated Lifestyle Monitor Survey, 23% of consumers
bought luxury apparel in 2014 (Keeping).
For our pop up shop in Stockholm, Sweden, we at Dior believe
that these demographics fit our consumer and believe that our consumer
will help constitute a successful pop up shop.
>>> 40 years old
>>> Annual income of $207,000
>>> Educated, Admirable,
>>> Traveler, Reader.
>>> Enjoys shopping for his wife
her happy with designer products.
Has great taste.
Meet Angelina & Ella
>>> 28 years old
>>> Fashion Blogger/Swedish Socialite
>>> Annual income of $120,000
>>> Educated, Sophisticated,
>>> Extra ordinary mixture of
romanticism, feminism, and sense
>>> Traveler, Interested in all things art.
>>> 34 years old
>>> Annual income of $140,000
>>> Educated, Elegant, Mature.
>>> Avid shopper, Loves dining with
>>> Takes work extremely serious.
Meet Alva & Denisa
>>> 37 years old
>>> Software Developer
>>> Annual income of $185,000
>>> Educated, Admirable, Selfless.
>>> Traveler, Reader, Dog Lover.
>>> Enjoys treating her family and
to great gifts.
>>> 41 years old
>>> Annual income of $190,000
>>> Educated, Sophisticated,
>>> Traveler, Avid Shopper, Reader.
>>>Takes work extremely serious,
forward, Interested in the fine arts.
Stockholm Consumer Lifestyles
Sweden continues to lead in Western
Europe when adopting the internet.
When looking towards the fashion
industry this has put brick and mortar
stores under an increasing amount of
pressure because internet retailing is
flourishing. Consumers are engaging
in “showrooming” - where they can
inspect a product in store before
purchasing later online.
Additionally Sweden is leading the
world in “M-Commerce” (Mobile
Commerce). The Economist
newspaper noted that “97% of Swedish mobile phone users could pay for goods at participating
businesses.” Sweden has shown that m-commerce can be safe and easy, something that has previously
prevented it’s adoption in the past.
This has also lead swedes to go completely cashless. The Swedish consumer is a huge fan of payment
cards, so much so that large bank branches and even some retailers are completely cashless. In 2010
shops have been prohibited from adding a surcharge for use of a payment card which has encouraged this
trend. Some worry that this will leave the less fortunate consumers without a payment card behind, however
with 95% of Swedish consumers having a bank account this is not likely. (Consumer Lifestyles in Sweden)
Our Consumer is Geographically located in Stockholm while purchasing our products. They are also international cultural travelers from
all over the world.
Our Dior consumer has many Interests. They are an avid shopper, reader, fashion blogger, and traveler. They value art and fashion as
a hobby, making their purchasing motives fashion forward.
Dior makes our customers Opinions & Beliefs show by wearing the clothing. They enjoy designer and luxury items where price
sensitivity does not exist. They believe that Dior makes a statement, it’s sophisticated, and projects a confident self-image.
The consumer wearing Dior has many quality Personality traits. They are admirable, elegant, educated, mature, and sophisticated.
These customers are loyal to the brand, and they buy different items across the product range.
Our customer grew up in the age of advancing technology. The Specific Technology Usage of our consumer is growing. As a millennial,
they are constantly using these devices in their favor for shopping, blogging, and social media purposes. They are a social generation
who socialized while consuming products, media and services. It has been predicted that in 2015, millennial annual spending will
grow to $1.4 trillion by 2020, representing 30% of all retail sales. Online shopping, shopping from mobile devices, and preferences
for “new entries to the marketplace” over established brands, will continue to grow and challenge existing retailers (The Year of the
Millennial 2015 Predictions).
The Shopping Habits of our consumer is not only growing on an e-commerce basis, but also in brick-and-mortar stores. Studies have
shown that millennial’s prefer tangible products. Companies that offer an online and physical location provide millennial’s with what
they want, and when they want it.
In Stockholm, Sweden, consumers purchase products based off of sufficient information stating if their purchase will be a reasonable
necessity. Since they’re buying limited products and consuming less, the value of the purchase is important to them. This key trait
gives luxury brands like Dior an advantage over other businesses because they offer the high quality, one of a kind products Swedish
customers are looking for.
The biggest selling period in Stockholm is between Christmas and New Years. Mellandagarn, which means
“Middle Days,” is the best shopping week in all of Sweden. Stores drop their prices significantly to get rid of
excess stock after Christmas. During this time signs are everywhere saying, “REA!” meaning sale in Swedish,
alerting consumers of the low prices. (Naughton)
Dior’s pop-up shop will be placed in the exclusive shopping district in Stockholm dating back to 1855.
Bibliotekstan is home to international and Scandinavian high-end design boutiques. Although this will drive
more foot traffic into our store, this also increases our competition. Our direct competitors will be neighboring
shops: Louis Vuitton, Prada, Burberry, Michael Kors, Marc by Marc Jacobs, and Stella McCartney.
A great place to shop luxury designers is in Bibliotekstan. Stockholm’s most affluent shopping district is found
in the downtown area named Bibliotekstan. This area is home to Scandinavian luxury designers as well as
international boutiques. This area will draw in a lot of foot traffic during the holiday season for natives as well
The area is very well organized with the positioning of the international and Scandinavian luxury designers,
sportswear, accessories, restaurants, and cafes. The city also offers many tours of the location to help
consumers navigate the area and get the most out of their shopping day.
With an expected population rise of 200,000 inhabitants between 2000 and 2030, Stockholm is committed to creating a sustainable
community and reducing CO2 emissions to zero by 2050.
>> Focusing urban development near transit stations has been a priority in Stockholm. Along these stations, the city is broken up into many
compact, self-sufficient districts that contain homes and a wide variety of businesses. These districts are mixed-use, with workplaces and shops
built close to residential areas.
Pedestrian Traffic: Over the last 15 years, Stockholm has cut pedestrian deaths by 31% and overall traffic deaths by 45%. Last year, Stockholm
city suffered only six traffic deaths, or about 1 per 150,000 residents.
>> The congestion charge has reduced traffic in the city center by 15%-20% or approximately 100,000 trips. Travel times have reduced 30-50%.
CO2 emissions have, however, decreased by far less since there has been a slight increase in the suburbs. (Eco Mobility)
Public Transportation: Stockholm’s public transit network consists of three metro lines, three shuttle trains, two local train connection lines, three
light rail lines, 17 bus routes, and an inner-city boat. A single ticket system is valid for all systems throughout the city. The city has coordinated
schedules between all modes, to minimize waiting time. The central train station is the hub where all public transport lines meet.
- Car journeys by county residents across the charging zone have declined, and journeys by public transport have increased.
- Stockholm is often praised for its comfortable, efficient and safe transportation.
>> Stockholders are always heedful of their beautiful surroundings, and this has led to many inner city buses running on Eco-friendly fuels such
as ethanol. The Stockholm underground is also known as the world’s longest art gallery as so many of its stations are adorned with the works of
different artists. (Eco Mobility)
Vehicular Transportation / Parking: Stockholm Parking has 22 park-and-ride facilities strategically placed around Stockholm outside of the
congestion fee toll area. These facilities are easy to find and rather inexpensive to use – the parking fee for the whole day is usually only 20SEK.
You can find all the information you need about our park-and ride facilities by going on their website. (Stockholder)
Infrastructure: Sweden possesses a modern transportation network, regarded as a vital component of equitable wealth distribution. Sweden’s
energy sector is strong, with energy production and usage per capita being among the highest in Europe. Sweden is among the world’s leaders
in information technology, computer hardware, software, and services. It has the highest number of phone lines (combined fixed and mobile) per
capita, as well as the highest percentage of Internet users in the world. (Eco Mobility)
>> Sweden has hundreds of thousands of the most luxurious, innovative architecture and contacting firms in the world.
>> For Swedes, sustainability is not just a construction initiative, but it is a way of life.
>> By 2022, a completely new city will have grown up around Stockholm Arlanda Airport. The goal is to create an environmental technology
center to bring together research, innovation and established companies in the field of sustainability and environmental technology. The environmental
profile of this new district is based on the extensive climate work already being carried out at Arland. (Sweden.se)
>> As the European Union is a Customs Union, goods can be bought from other member countries without restrictions - although VAT and
excise duty can still apply.
>> Sweden is a member of the WTO
>> Swedish Consumer Agency is a Swedish Government Agency that answers to the Ministry of Agriculture, Food, and all Consumer Affairs
with a National Board for consumer Complaints (located in Stockholm). Its main task is to issue non-binding recommendations on the resolution
of disputes between consumers and business operators. A person can, free of charge, file complaints against a company. If the company does
not follow the recommendation from ARN, the consumer has the possibility to take the matter to court. (Sweden.se)
Strategic Process Plan
Beauty Product Plan
Style # of Styles Color Retail Price Style # of Styles Color Retail Price
3 Lady Red 363
Clothing & Accessories Product Plan
Style # of Styles Color Sizes Retail Price
S, M, L
S, M, L
S, M L
S, M, L
5 Silver Black
one size 4274.43 SEK
Silver Black Round
Black 36, 37, 38, 39, 40
Red 36, 37, 38, 39, 40
Grey 36, 37, 38, 39, 40
Brown 37, 38, 39
Navy and Black 37, 38, 39
Purple and Brown 37, 38, 39
Turquoise and Brown 37, 38, 39
Design of Physical Space
Details of Physical Space
The Seasonal Dior pop-up shops market image is consistent with Dior’s image and strategy, while also
enhancing customer experience with our Christmas themed space. Since this is a holiday pop-up shop, the
design of the space invites customers inside with an extravagant facade, visually appealing open box window
displays, and an entry way that leads through a Dior Christmas art display that provides customers with the
ultimate Christmas shopping experience.
Our store atmosphere is lightly enhanced with Dior scents, and soft Swedish holiday music that offers familiarity
with the brand to connect with the customer. The interior space is designed with visual customization in mind,
focusing on appropriate light fixtures, furniture, flooring materials, and decor that flows with our Christmas
aesthetic. The physicality and environment of this retail space stimulates each customer by providing a tactile,
sophisticated interior where every object adds a purposeful touch.
The floor plan of Dior’s pop-up shop is designed for a ground level space in the luxurious Stockholm area
Bibliotekstan. Customers must venture through the opulent entrance that then leads them to the open floor
plan where merchandise and customer service departments are located. The free-flow layout allows customer
traffic to flow in an unstructured manner, although merchandise is strategically categorized with appropriate
space for maximum product exposure and customer convenience. Merchandise is presented using an ideaoriented
presentation technique. This plan offers flexibility to our customers while also encourages impulse
buying and browsing.
The Safety, Security, and Asset Protection is assessed by incorporating security personnel at the entrance.
The construction of the space took the knowledge of deviant behavior in mind by designing the entire space
to be seen visually, at all times. The space in the store is limited, and only a small amount of merchandise
is being sold which makes theft less of a factor. Bibliotekstan also implements appropriate security systems
within all of their retail spaces.
Communication & Promotional Plan
Dior Social Media
September November December January Feb. 1-7 Feb. 8-14
gifts (invitation to cocktail party
included) for important personnel
Christmas giveaway with purchase
Bloggers reviews and photo shoots
of Dior pop-up shop venue and
Advertising in magazines
Dior Christmas video
Opening Cocktail Party (Last night
of Pre-Launch only)
**Refer to Appendix for written rational
**Refer to Cost Sheet for Promotional pricing
Budget for Execution
Interior & Exterior:
Month 1 Month 2
Revenue SEK 1,626,889.60 SEK 4,880,668.80
Total Revenue SEK
Cogs SEK 195,226.75 SEK 585,680.26
Build of Space SEK
Interior Fixtures SEK
Storing SEK 1,006.00 SEK 1,006.00
Wages SEK 151,255.00 SEK 151,255.00
Rent and Utilities SEK 320,000.00 SEK 320,000.00
Janitorial SEK 13,596.00 SEK 13,596.00
Promotional Activites SEK
Legal and Permits SEK
Total Expenses SEK
Interior Fixtures Unit Costs Units Cost
Sofa SEK 78,924.00 1 SEK 78,924.00
Table Lamp SEK 2,300.00 2 SEK 4,600.00
Chandelier SEK 4,550.00 1 SEK 4,550.00
Chair SEK 90,585.00 2 SEK 181,170.00
Candlestick SEK 395.00 1 SEK 395.00
Clock SEK 3,325.00 1 SEK 3,325.00
Decorative Ornament SEK 2,750.00 1 SEK 2,750.00
Table SEK 7,735.00 2 SEK 15,470.00
Pillow SEK 450.00 2 SEK 900.00
PERCENTAGE OF CONVERSION 0.1 0.2
LOCATION FOOT TRAFFIC PER DAY Month 1 Month 2
1000 Footfall 2000 4000
Conv. % 0.02 0.03
Avr.Basket SEK 40,672.24 SEK
Month 1 Month 2
SEK 1,626,889.60 SEK 4,880,668.80 $ 6,507,558.40
(MKUP 60%) COGS SEK 650,755.84 SEK 1,952,267.52 SEK 2,603,023.36
PRODUCT % Month 1 Month 2 COGS SEK 2,603,023.36
Dress 12% SEK 195,226.75 SEK 585,680.26
Bag 10% SEK 162,688.96 SEK 488,066.88
Shoe 8% SEK 130,151.17 SEK 390,453.50
Basic Sunglasses 7% SEK 113,882.27 SEK 341,646.82
Scarves 7% SEK 113,882.27 SEK 341,646.82
Gloves 2 6% SEK 97,613.38 SEK 292,840.13
Necklace 10% SEK 162,688.96 SEK 488,066.88
Earrings 5% SEK 81,344.48 SEK 244,033.44
Bracelet 5% SEK 81,344.48 SEK 244,033.44
Rings 3% SEK 48,806.69 SEK 146,420.06
Foundation 2.00% SEK 32,537.79 SEK
Lipstick 5.00% SEK 81,344.48 SEK 244,033.44
Blush 2.00% SEK 32,537.79 SEK
Eyeshadow 2.00% SEK 32,537.79 SEK
Eyeliner 4.00% SEK 65,075.58 SEK 195,226.75
Nailpolish 2.00% SEK 32,537.79 SEK
Perfume 7.00% SEK 113,882.27 SEK 341,646.82
Bronzer 3.00% SEK 48,806.69 SEK 146,420.06
Month 1 Month 2
AVR.PRICE SEK AVR.UNIT AVR.UNIT
Dress SEK 42,300.00
Bag SEK 29,610.00
Shoe SEK 8,460.00
Basic Sunglasses SEK 3,807.00
Scarves SEK 4,230.00
Gloves 2 SEK 5,922.00
Necklace SEK 126,900.00
Earrings SEK 46,530.00
Bracelet SEK 84,600.00
Rings SEK 38,070.00
Foundation SEK 524.52
Lipstick SEK 296.10
Blush SEK 372.24
Eyeshadow SEK 524.52
Eyeliner SEK 245.34
Nailpolish SEK 228.42
Perfume SEK 1,015.20
Bronzer SEK 473.76
Written Rational (Communication & Promotional Plan)
The pre-launch for Dior’s Stockholm holiday pop-up begins two months prior to the opening of the store. During this time, Dior will be advertising
the shop on their social media (Facebook, Instagram, Twitter, E-commerce, smart phone app, and Blog.) There will be a short promotional video
made during our pre-launch that will be posted throughout the entire duration of our pop-up through various social media networks. In addition
to using social media, advertisements will also be placed in one of the most commonly read magazine in Sweden - Sweden’s ELLE Magazine
during September, and November (ELLE Magazine Advertising.)
Based off of our customers daily transportation activities, there will be outdoor promotion on the outside of local public buses during our prelaunch
as well as while the store is open to invite any gift buyers (Bus Advertising Prices and options.)
There will be a personalized promotional gift basket of Dior makeup products sent to important personnel including: elite customers, magazine
editors, high profile bloggers, and celebrities in the surrounding area. Within the basket, there will be an invitation to the Grand Opening cocktail
party which will be held the night before opening day in December.
All of our customers will receive a limited addition Dior Christmas Ornament with their purchase.
**Refer to Income Statement and Cost Sheet for ROI
Written Rational (Financial Analysis)
To begin, we determined an average of 1000 footfall per day based on the area we are located in. This gave us a number of 2000 in foot traffic
for month one, and 4000 in month two. The first month has a lower conversion rate of only 10% of total footfall per day in the area because
consumers are still learning about the boutique, whereas in month two we have a 20% conversion rate because the consumers are more aware of
our location and shop. Additionally we will be open 20 days out of each month, so the final equation used to determine the foot traffic per month
was total foot traffic per day in the area (1000) multiplied by 20 (days we are open in a month) multiplied by the conversion rate.
We came about our average basket figure from first determining average prices of our products sold, and then determining on average what
consumers would buy day to day. For example we have our wealthier consumer who is buying Dior’s high end jewelry, and then we also have the
consumer on a budget who might just stop in to buy Dior’s perfume or a lipstick. From this analysis we determined 10 baskets (see appendix)
and then found the average price of all 10 baskets. After finding our basket pricing we found our total monthly revenues from multiplying our dayto-day
footfall (2000 for month one) by a conversion rate, and then by the average basket per month. Again the conversion rate was higher in the
second month because consumers are more aware of the boutique.
Lastly, we found our cost of goods sold by multiplying our revenue by 40% because our markup is at 60%.
After finding the pricing of our goods, revenues, and percentages per product category, we dove into other costs we might need. This includes
but is not limited to: hotel and air fare, legal permits, iPads for sales associates, interior fixtures, rent, wages, and logistics. Please see the
appendix for all reasoning and citations for our pricing.
Rent of Space:
Building & Design of Space:
Dress $ 5,000.00 $ 5,000.00
Bag $ 3,500.00 $ 3,500.00
Shoes $ 1,000.00 $ 1,000.00
Sunglasses $ 450.00 $ 450.00
Necklace $ 15,000.00 $ 15,000.00
Earrings $ 5,500.00 $ 6,000.00
Bag $ 3,500.00 $ 13,500.00
Bracelet $ 10,000.00
Foundation $ 62.00 $ 141.00
Perfume $ 120.00 $ 149.00
Ring $ 4,500.00 $ 4,500.00
Sales Associate Salary:
Employees Per Hour Per Day Per Week Per Month
5 $12.00 $96.00 $480.00 $1,920.00
2 n/a n/a n/a $4,100.00
Final Total $17,800.00
Final SEK SEK 151,255.00
Janitorial Per Hour Per Day Per Week Per Month
2 $10.00 $80.00 $400.00 $1,600.00
Final SEK SEK 13,596.00
AVR.BASKET $ 4,924.00
AVR.BASKET SEK 40,672.24
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