Market Analysis

1. Managing Intelligence and Preparing Marketing Analysis
Monisha Bandhu
Master in Fashion and Luxury Management, LISAA

2. Introduction
French luxury brand, Celine, hired a new creative director in 2018, Hedi Slimane, who
transformed the brand from its boutiques, to adding men’s wear, couture and
perfume. He has a very unique and different style from that of his predecessor,
Phoebe Philo, and have been merging his style with that of Celine.
There have been questions and concerns from Celine’s loyal customers about the
changes that he has brought about, but there is also excitement to see what all
changes he will bring about and how it will affect the brand. Hedi Slimane have been
Creative Director of Saint Laurent, and was able to double the revenue of the brand,
LVMH is hoping for him to increase the revenue of Celine five times its current status.
For this assignment I will be doing a market analysis for Celine’s transformation by
Hedi Slimane, by doing a SWOT analysis. I will also be doing a competitive analysis
and an internal and external marketing analysis, using Porter’s 5 fundamentals.

3. In 1945, Céline Vipiana and her husband, Richard, created Céline, a made-to-measure children's shoe business.
In 1960, the brand decided to focus on ready-to-wear sportswear brand for women.
In 1964, they launched fragnance "Vent fou" and the new ‘American Sulky’ collection of accessories. The trench became the chief
product of the house and Celine opened a leather goods factory in Florence.
In 1973, Celine redesigned its logo with the intertwined "C" Sulky canvas, linked to the Arc-de-Triomphe, which appeared as a symbol for
Parisians.
In 1987, Bernard Arnault decided to buy into Celine’s capital, however, it was only in 1996 that the brand was integrated into the LVMH group.
CELINE HISTORY

4. CELINE Designer History
o In 1988, Peggy Huynh Kinh, appointed by Bernard Arnault, took over the house’s artistic direction.
o In 1997, American fashion designer Michael Kors was named women's ready-to-wear designer
and creative director for Celine.
o In 2005, Italian designer Roberto Menichetti was named creative director.
o A year later, Croatian designer Ivana Omazic directed the design studio, Omazic was a former
consultant for the brand.
o In 2008, Women's Wear Daily announced that Bernard Arnault, president of LVMH, had
appointed Phoebe Philo as the new creative director of Celine. In 2010, Philo received the
Designer of the Year award from British Fashion Council. In 2011, she was awarded International
Designer of the Year by the Council of Fashion Designers of America. Both prizes were awarded
for her work at Celine.

5. CELINE by Hedi Slimane

6. CELINE PERFUME
o According to Women’s Wear Daily, “Celine Blends Genders With New
Perfumes by Hedi Slimane”. Hedi Slimane launched 11 unisex perfumes
for Celine, 9 for day and 3 for night. The French fashion house had
steered clear of fragrances with few exceptions like its first scent, Vent
Fou, a floral green bouquet of rose, jasmine, and galbanum, launched in
1964, the 1996's Magic for women.
o The 11 fragrances all feature a unifying powdery note, and take
inspiration from French perfumes of the ’60s and ’70s, the collection
will also feature notes of iris, tree moss, chypre and rose. The scents are
housed in an elegant glass bottle designed by Slimane, a rectangular
bottle with a black lacquered cap, and inspired by late 17th-century
classicism as well as Art Deco motifs.
o The packaging also pays homage to Celine with a box engraving inspired
by the wood panels found at the label’s atelier at the Hôtel Colbert de
Torcy. Celine’s emblematic “triomphe” is also featured on the perfume
bottle’s cap.

7. CELINE BOUTIQUE
o As per wallpaper magazine, Celine’s CEO Séverine Merle explains,
‘Celine has a great distribution network and high-quality visibility
but no large stores. We need to open flagships in major cities,
larger stores that can accommodate menswear and newly
expanded women’s collections.’
o In March 2019, Celine inaugurated its 5,000 sq ft New York flagship
store at 650 Madison Avenue and unveiled a remodeled space for
men’s wear and women’s wear on rue de Grenelle, Paris and the
brand’s first menswear flagship on rue François 1er. By mid-April,
they opened new boutiques in Tokyo, Shanghai, Los Angeles,
Madrid, Milan and London.
o Slimane has created a new collection of elegant minimalist
furniture for the Celine stores, which is set alongside vintage 1960s
and 1970s pieces that showcase French woodworking expertise.
Contemporary artworks by established and emerging talents, like
Theaster Gates, Oscar Tuazon, and Virginia Overton, are another
major feature of the spaces and have been dubbed as the Celine
Art Project. Under his creative direction, Celine’s New York, Paris,
Tokyo, Milan, and L.A. retail spaces have been reworked in “a
refined 21st-century brutalist context,” as stated by the brand.
o Hedi Slimane has designed a dedicated perfume shop on Paris’s rue
Saint-Honoré, decorated with sculptures by Luisa Gardini and
paintings by Camilla Reyman and Søren Sejr, the place looks almost
like a perfume paradise as per Vogue.

8. CELINE MEN’S COLLECTION
o As written by Sarah Mower in Vogue for Celine’s spring 2020 men’s
wear collection, “Bringing up this era undoubtedly has resonance for a
young generation who’s definitely not been born into fun times;
Slimane’s right about that. But somehow the habitual narrowness of
his focus missed the inclusive way that kids see the world today.”
o The addition of men’s wear, sometimes termed as unisex by the brand
is a welcome addition to Celine. But many have questioned the lack of
feminist approach by the brand and also the lack of colored models on
the runway.
o The set for the S/S 2020 Celine menswear show by Hedi Slimane was
built from scratch on the doorstep of Invalides the collection was
inspired from 1970s, with influences of rock and roll and a feeling of
nostalgia. The collections by Hedi Slimane have always had a sleek
look, slim fitting and rock inspirations, a collection for young music
loving generation.

9. CELINE ICONIC BAGS
o Hedi Slimane’s first product for the Celine was a handbag called the
‘16’, according to Celine CEO Séverine Merle, who spoke to Women’s
Wear Daily. “Judging by the high level of advance inquiries, he has laid
the foundation for a future iconic classic,”. Lady Gaga was the first
person to carry it. Angelina Jolie, who Slimane has photographed in
the past, has also been spotted with the bag. The name “16” is
inspired from the brand’s Paris address, Hôtel Colbert, at 16, Rue
Vivienne. It will come in three sizes, and in a wide range of exotic skins
and colors.
o Hedi Slimane’s Triomphe Canvas is a tribute to Celine’s iconic
monogram from 1972 featuring a link motif inspired by the chain
encircling the Arc de Triomphe. Vipiana’s car broke down in Paris, right
in front of the Arc de Triomphe, and she was instantly inspired by the
chain that surrounds the iconic French monument. Tapping into its
rich history, like past coated canvas designs from Celine, the canvas
features a repetitive Triomphe logo print.
o Keeping in with the trend of micro bags, Celine launched the Pico Belt
bag, 21 x 16 x 8cm in measurements.
o A new soft day bag version of the ‘16’ is launched by Celine. When
Hedi Slimane created the original 16, it was intended as a reflection of
the new Celine aesthetic and was swiftly elevated to the status of
house signature, as stated in Vogue. The new 16 Soft is less structured
and have softer aesthetics, it looks more casual and the shape offers a
shoulder carry, a very Parisian way of wearing a bag.
o For the Spring 2020 Hedi Slimane reintroduced the Sulky logo, dating
back to 1966, the Sulky, a horse-drawn vehicle used in harness racing,
originally featured on bags, shoes and belts to pay tribute to Richard
Vipiana, the husband of Celine founder, Céline Vipiana. For A/W 2020
the equestrian motif will be seen on Celine’s ladylike clutches and
shoulder bags, like the house’s signature Triomphe, Crécy and
Camarat.

10. CABAS SULKY
LUGGAGE
16
CLASSIC TRIOMPHE CANVAS
BELT BAG
CAMARAT
TRIOMPHE Crécy
CELINE ICONIC BAGS

11. CELINE MUSICAL COLLABORATIONS
o “Without getting the music right, I cannot style the show, which
can be very frustrating,” explains the designer and photographer,
Hedi Slimane. “The soundtrack and cast are what define the
styling, its degree of credibility, its authenticity. What you hear and
what you see are all part of one thing, one world as a whole.”, as
stated in Vogue.
o Since his appointment at Celine, Slimane has chosen to spotlight
French underground music. For his first CELINE show, Slimane
requested that Marlon Magnée and Sacha Grot from French band
La Femme compose a 20-minute long piece with model Grace
Hartzel. Then for autumn/winter 2020, Slimane scrapped his
intended soundtrack just two weeks before the show in favour of
the breakout single from Sofia Bolt. For Celine campaigns, Slimane
worked with Paris based band Oracle Sisters for their song “I’m
You”. Nathan Roche, Marseille-based frontman of the Villejuif
Underground has been working with Celine’s ongoing campaign,
Portrait of a Performer, shot by Slimane.
Christopher Willatt photographed
by Hedi Slimane

12. Celine competitors
In LVMH KERING
RICHEMONT
OTHERS
As per business of fashion this was
Celine’s digital position in the luxury
sector in 2014 article

13. SWOT Analysis
STRENGTHS
1. Part of LVMH, established and profitable company
2. Quality of products, based in Paris, sells in all major cities
3. Loyal and established customer base
4. Recognizable brand worldwide
5. Have a strong hold of international luxury market
WEAKNESS
1. Needs more exposure when compared to its competition
2. Few product categories
3. Perceived as an elitist brand
4. Lack of open communication strategy with customers
5. Needs stronger social media strategy
OPPORTUNITIES
1. There is a market demand for artisanal and luxury products
2. Better products in regards to social media and e-commerce
3. Increase in economic and spending power of developing
countries and younger generation
4. Possibility to expand category and range
THREATHS
1. There is a shift towards inclusive mindset while luxury brands
are seen as exclusive
2. Increase in counterfeit and fakes
3. There is an increase in competition from emerging brands
4. Too many products in the market and rising cost of material

14. Porter’s Framework
High barriers to
enter
Strong supplier
bargaining
power
Strong buyer
bargaining
power
Few substitute
products
Low
competition
• Threats of new entrants : Low
o High capital investment required
o It takes time to build reputation and customer base
o There are government regulations for Luxury industry in Paris
o Strong customer loyalty for existing brands
o Specialist knowledge and skills required
• Bargaining power of suppliers: High
o There are very few skilled craftsman and quality raw material
o Reputed suppliers have their own standing and customer base
o Difficult to substitute skills and material
o Few resources due to their uniqueness and also time needed to
produce them
o Few alternatives available for raw materials and skills

15. • Bargaining power of buyers: High
o The multi-brand stores had the power over brands which is now
changing, since the brands have built their own e-commerce
stores and with Conglomerates like LVMH, Kering, Richmond.
o There are few luxury buyers, but in recent years with rise in
developing countries and millenials and gen-z in workforce, there
have been increase in luxury buyers.
o There is high customer loyalty and few substitutes compared to
other industries
o Buyers have an acute eye for quality, craftsmanship, brand identity
and heritage.
• Threat of substitute: Low
o There are new brands coming up as well as contemporary and
premium ready-to-wear brands, but luxury brands have their own
standing as an investment, for its history and identity, which can
not be competed with or even replicated.
o There are very few brands that are able to match the quality of the
skills required to produce the product or deliver the service.
• Rivalry of competitors: Low
o The number of competitors are very low.
o There has been a huge growth for industry with conglomerates,
organizations, globalization, etc. in the past few years. There has
been increase in demand for Couture as well.
o The uniqueness of each brand makes them stand out from its
competitors
o There is still competition from companies which are much bigger
in size with higher brand loyalty and similar products and prices
o Each brand have their own standing and established customer
base around the world, with the advancement in technology it is
possible to give the best customer satisfaction and create
customer loyalty programs.

16. Conclusion
Many customers and magazines have been critical of Hedi Slimane’s direction for Celine.
They have compared it to his collections at Saint Laurent and Dior Homme and has been
compared to his predecessor, Phoebe Philo. This has given rise to people questioning the
role of different sexes in fashion industry, and the female body in the eyes of male and
female and the difference in how they perceive it.
The increase in offerings with men’s wear, couture and perfume collection is a welcome
addition to the brand. It will help in gaining exposure and increase in client base and
customer loyalty to the brand. The much needed openness to interaction with the
customers through boutiques, social media and e-commerce is also a needed marketing
strategy, it will make Celine feel more inclusive and open, which is the current mindset of
the customers.
While we can’t deny the benefits of the current change, we also need to address the
threats the brand faces, the similarity of products to that of Saint Laurent, the whole new
shift in design aesthetics may lead to dissatisfied customer base, while the change in logo
maybe beneficial for social media strategy and also to make the brand feel more global, it
may become vulnerable to counterfeiting.
The current customer base is very inclined towards the brand’s values and for it to
coincide with theirs’. There are many people questioning the lack of employment of
colored models in the fashion shows and the concept of feminist design ethos of the
brand. These are few of the external factors in regards to the change in the mindset of
customers that have affected the company and have to be addressed thoroughly by the
brand in the future.

17. References
1. https://www.fashiongonerogue.com/brands/celine/
2. https://www.retail-insider.com/retail-insider/2020/2/luxury-brand-celine-to-open-1st-standalone-canadian-flagship
3. https://www.businessoffashion.com/articles/news-analysis/celine-ad-campaign-tiktok-noen-eubanks
4. https://www.dailymail.co.uk/femail/article-8388433/Fashion-brand-Celine-accused-performative-activism-BLM-post-no-black-models.html
5. https://www.vogue.com/fashion-shows/designer/celine
6. https://www.businessoffashion.com/articles/intelligence/on-the-wings-of-celine
7. https://www.vogue.com/fashion-shows/spring-2020-menswear/celine
8. https://www.gq-magazine.co.uk/shows/springsummer-2020-menswear/celine
9. https://www.purseblog.com/celine/love-it-or-leave-it-celine-triomphe-canvas/
10. https://www.businessoffashion.com/articles/fashion-tech/burberry-remains-digital-luxury-leader-celine-trails
11. https://www.lofficielmalaysia.com/fashion/modern-nostalgia-timeless-triomphe-canvas-celine-by-hedi-slimane
12. https://qz.com/quartzy/1390518/hedi-slimanes-first-bag-for-celine-is-already-looking-like-falls-it-bag/
13. https://www.vogue.co.uk/article/hedi-slimane-celine-bag-16
14. https://www.lifestyleasia.com/sg/style/fashion/celine-tiny-pico-belt-bag/
15. https://en.vogue.me/fashion/celine-16-soft-day-bag/

18. References
1. https://www.vogue.co.uk/news/gallery/celine-sulky-bag
2. https://www.purseblog.com/fashionweek/for-celines-spring-2020-bags-hedi-slimane-focuses-on-its-triomphe-logo/
3. https://fashionmagazine.com/style/everything-you-need-to-know-about-fashions-virtual-runway-competition-slay-the-runway-ii/
4. https://qz.com/quartzy/1390518/hedi-slimanes-first-bag-for-celine-is-already-looking-like-falls-it-bag/
5. https://www.wallpaper.com/fashion/fashionweeks/menswear-aw-2019/paris/celine-aw-2019-paris-fashion-week-mens
6. https://www.wallpaper.com/fashion/fashionweeks/menswear-ss-2020/paris/celine-ss-2020-paris-fashion-week-mens
7. https://wwd.com/fashion-news/fashion-scoops/celine-margaret-qualley-campaign-1203340762/
8. https://www.harpersbazaar.com.au/fashion/celine-hedi-slimane-17453
9. https://fashionista.com/2018/10/hedi-slimane-celine-debut-response-critics
10. https://www.celine.com/en-gb/home