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Christian Dior (EPA: CDI) is a luxury retailer based in Paris. Christian Dior sells men's and women's clothing and accessories, including outerwear, evening wear, and perfumes. The firm has been resilient to harsh economic conditions in Europe, as luxury consumers have not been affected. Although, the firm may experience lower profit margins in the current fiscal year due to rising cotton prices and the dismissal of Dior's head designer.

Business Overview

In the past fiscal year, Christian Dior experienced revenue and net income gains.[1] The firm may not see such strong growth in the current fiscal year because their head designer has been fired.[2]

Trends and Forces

Christian Dior Resilient to European Debt Contagion

European countries (Portugal, Ireland, Italy, Greece and Spain in particular) experienced debt contagion in the past fiscal year and into the current fiscal year. Although, Christian Dior has been immune to the weak economic conditions thus far, in addition to other luxury retailers.

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Competition

Christian Dior competes against other retailers in the high-luxury fashion division.

  • Hugo Boss The German luxury retailer produces the same product lines as Dior and competes for European, American, and Asian market share.
  • LVMH Moet Hennessy LVMH's Fashion business, with brands such as Marc Jacobs and Louis Voitton, competes directly with Dior's Retail business. LVMH also has profitable wine and leather goods businesses.
  • Burberry Group: Like Hugo Boss, the London-based Brberry creates similar product lines and competes with Dior in European, American, and Asian markets.
  • Coach The U.S. luxury retailer competes with Christian Dior's fashion accessories product line.


References

  1. Christian Dior 2010 Annual Report
  2. Bloomberg, "Dior to Fire Head Designer Galliano After Anti-Semitic Rant at Paris Cafe," 03/01/2011
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