Presentation on theme: "HISTORICAL BACKGROUND & LACOSTE BUSINESS UPDATE. Davis Cup, 1927 RENÉ LACOSTE: A TENNIS CHAMPION René Lacoste (1904 - 1996) entered the legend of tennis."— Presentation transcript:
HISTORICAL BACKGROUND & LACOSTE BUSINESS UPDATE
Davis Cup, 1927 RENÉ LACOSTE: A TENNIS CHAMPION René Lacoste ( ) entered the legend of tennis when he and his team-mates the Musketeers stole the Davis Cup away from the Americans for the first time in 1927 and again in Not forgetting his numerous singles Grand Slam titles ranking him world N°1 in 1926 and 1927: 3 French Open victories (1925, 1927 & 1929) 2 Wimbledon titles (1925 and 1928) 2 U.S. Open victories (1926 and 1927) Bronze medal at the Olympics in Paris, 1928 As well as 3 doubles Grand Slam victories: 2 French Open titles (1925 and 1929) 1 Wimbledon title (1925)
RENÉ LACOSTE: THE ALLIGATOR The true story of the Crocodile dates back to 1927 René Lacoste was nicknamed "The Alligator" by the American press after he made a bet with the captain of the French Davis Cup team with an alligator skin suitcase on the line. The public immediately adopted this nickname which conveyed the tenacity René Lacoste displayed on the tennis courts. René Lacoste had then a crocodile embroidered on his blazer which ultimately became an emblem of worldwide renown. Wimbledon, 1928
RENÉ LACOSTE: AN INVENTOR René Lacoste developed and ordered in 1927 a personal set of shirts offering comfort and solidity which became instantaneously popular among the players. Following this sportswear apparel revolution, René Lacoste kept on innovating from patented string damper to the very first steel racket, winner of 46 Grand Slam tournament titles between 1966 and 1978.
RENÉ LACOSTE: A TRUE GENTLEMAN René Lacoste was not only considered as an esthete bringing out his elegant style, but also known for his respect to opponents and his loyal friendship with his Davis Cup team-mates, the Musketeers. His influence still defines the brand values with reference to a sporting attitude as well as authenticity and self-fulfillment, casual elegance and quality. Wimbledon, 1928
Saint Cloud, 1927 René Lacoste at French Internationals
Madame René Lacoste (Simone Thion de La Chaume) Main career victories: Girls British Junior (1924) Ladies British Championship (1927) French International Championship (1930, 1935, 1938 & 1939) French National Championship (1936, 1937 & 1939) Catherine Lacoste (daughter of Simone and René Lacoste) Ranked N°1 in the Ladies World Championship (1964 & 1968) Main career victories: World Team Championship at 19 years old US Open (1967) US Championship (1969) British Championship (1969) French Championship (1967,1969, 1970 and 1972) Spanish Championship (1969, 1972 and 1976) French National Championship (1968 and 1969) European Senior Ladies Team Championship (2002) A FAMILY OF CHAMPIONS
FROM AN ICONIC PRODUCT TO A LIFESTYLE BRAND 1933, birth of La Chemise Lacoste Code-named 1212, Lacoste shirts made of a light knitted fabric called jersey petit piqué started selling to a large public in Lacoste shirts soon became famous worldwide. They are still today the icon of the brand. Toward new product territories The development toward new product territories was initiated in 1968 with the launch of the first Lacoste fragrance. True to Lacoste heritage and always preserving the brands image, the whole collection now offers a diversity which makes Lacoste a lifestyle brand.
A TRUE STORY
LACOSTE SYSTEM AND NETWORK LG & Belts Eyewear Home textile Home textile Watches Footwear Perfume Clothing GLOBAL LOCAL Mobile phones DISTRIBUTORS RETAILERS CONSUMERS Special initiatives LICENCEES Fashion Jewelry Fashion Jewelry
GLOBAL PARTNERS Belts Since 1982 Eyewear since 1981 Footwear Since 1984 Leathergoods Since 1969 Fragrances since 1968 Clothing since 1933 Watches since 1993 Home textile since 2000 Mobile phone from 2010/11 Fashion Jewelry from 2011
GLOBAL PARTNERS CEMALAC Belts Eyewear Footwear Leathergoods Fragrances Clothing Watches Home textile Mobile phone Fashion Jewelry from 2011 Groupe GL
THE CHOICE OF SELECTIVITY A solid international network based on long-term partnerships has been built from the early fifties. With selectivity as a watchword, the homogeneous and worldwide distribution network preserves the brands specificities: affordable prestige, lifestyle positioning and multi- distribution (Lacoste boutiques and corners, department stores, sport shops, specialized shops, duty frees, etc.) It also ensures our customers the right environment for the genuine Lacoste products and provides good assistance to them.
LACOSTE TODAY A success story Relying on its authentic roots sports, Lacoste represents today a modern lifestyle, unique and of high quality represented through a wide range of products for men, women and children: sports and leisure apparel, footwear, fragrances, leather goods, eyewear, watches, home textiles and belts. 2 Lacoste products are sold every second In 2010, 50 million items have been sold under the Lacoste brand, representing a total wholesale turnover of 1.5 billion across 112 countries through a network of 1112 Lacoste boutiques, department stores, sports shops, specialized retailers and more than 2000 clothing corners.
15 LACOSTE Global sales
16 Split by activity remain roughly the same in 2010, with slight increase of Apparel weight Lacoste Wholesale sales split activity (M) – All products Update May Total sales : Total sales : 1361 E2011 Total sales : 1549M E2011 Total sales : 1549M Footwear 20% Belts 1% Apparel 60% Home Textiles 1% Perfumes 13% Leathergoods 3% Watches 1% Eyewear 1% Leathergoods 2% Footwear 18% Perfumes 14% Eyewear 1% Watches 1% Belts 1% Apparel 62% Home Textiles 1% Total : 4%
17 AMERICAS: 30% of the Sales- NORTH AMERICA : 20% E2011 :30% E 2011 :51% E 2011 :19% Lacoste Wholesale sales – Weight by region (M) – All products Update May 2010
18 LACOSTE in the USA: a historic story
19 Boston: The Crocodiles birthplace
20 USA : Home of the Musketeers glory years
21 USA : Where René Lacoste and Simone Thion de La Chaume first met
22 USA : Catherine Lacoste becomes the first French and amateur woman to win the Womens US Open
23 USA : Bernard Lacoste is inspired to build a global company
24 First steps in the USA 1923 – The first mention of René Lacostes nickname, the « crocodile », in the US by the Boston Herald – The crocodile is embroidered on René Lacostes blazer – The launch date of the industrial production of the L in France – Products begin to be exported to the US – Lacoste enters the U.S. market by licensing its all-cotton shirts to David Crystal Inc., a New York-based manufacturer of apparel marketed under a variety of names, including Izod. The shirts were initially available only in white; after several years, in an attempt to broaden the shirts' appeal beyond the tennis court, colors were introduced – The 1st steel racquet is invented by René Lacoste: this racquet will win 46 Grand Chelem tournament titles from 1966 to Distributed in the US by Wilson it was used by Jimmy Connors & Billie Jean King, among others.
25 First steps in the USA 1966 – Signing of the Izod license – General Mills purchases David Crystal Inc. 1970s – The Lacoste shirt surges in popularity in the late 1970s with the advent of the "preppy" look – Peak sales years with around $400 million in sales in – The downturn of Izod begins. General Mills, using the "commodity" approach that it used with cereal, proceeded to saturate the market with merchandise. The brand invariably lost its upscale cachet, and combined with the rapid waning of the "preppy" look, sales and profits began to fall precipitously – US rights taken back and creation of Devanlay US.
26 LACOSTE in the USA: A « rollercoaster» Story
27 US: Rebuilding the brand after the Izod years US - Evolution of sales by product category E (M$) E % Clothing Footwear HomeTextiles Watches Perfumes Leathergoods Eyewear Belts Perfumes, Belts, Watches, Eyewear : Sales in USD calculated with average year FX rate Izod (Crystal Brands) period US rights taken back and creation of Devanlay US (clothing distribution) Creation of PB Footwear US (footwear distribution) P&G distributes fragrances after Clarins Home with Sunham # of boutiques Years of retail investments # stores X3 between Fast POS opening with poor selectivity Low AUR Suffering from brand dilution from over distribution and low- end positioning Clothing growth highly dependent on polo Distribution clean-up 1 st country 15% of tot. sales