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<strong>Dior</strong> Business Model<br />
From Single Brand to Luxury Conglomerate<br />
Christian <strong>Dior</strong> defined a new business model in the post-war years, establishing Ready-to-Wear boutiques<br />
and licensing deals; his designs were coped and sold in the USA as well as Europe. Many consider <strong>Dior</strong>’s<br />
model to be a forerunner of fast luxury fashion. Now, <strong>Dior</strong> is divided by the Couture Management Group and<br />
the LVMH Management Group. Creative Director Raf Simons has complete freedom over <strong>Dior</strong>’s designs.<br />
<strong>Dior</strong> Ready-to-Wear, Accessories, and Beauty have a simple yet broad Business Model. <strong>Dior</strong> sells RTW,<br />
Accessories and Beauty mainly through <strong>Dior</strong> flagships around the world. Select <strong>Dior</strong> accessories are<br />
sold in department stores such as Bergdorf Goodman and Barneys NY. Select <strong>Dior</strong> beauty is sold in<br />
department stores such as Macy’s and Bloomingdales, as well as at Sephora.<br />
<strong>Dior</strong> has also opened concept shops, such as the <strong>Dior</strong> Homme boutique on 30 Avenue Montaigne in<br />
Paris, instilled by previous designer Hedi Slimane.<br />
<strong>Dior</strong> makes most of their profit from licensing agreements, cosmetics, perfume, and accessories. With the<br />
influence of couture houses and designers changing over time, only a small clientele can afford the time<br />
and expense demanded by true couture clothing.<br />
Therefore, <strong>Dior</strong> has adopted a business model that allows them to generate most profit off of smaller accessory<br />
goods and beauty products via wholesale channels and <strong>Dior</strong> flagships (Basics Fashion Management 101).
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