ESSEC Business School
Strategy and management
I. Executive summary
We are here addressing the Sisley, a French luxury and cosmetic company. Sisley is an excellent player in its market niche (very high-end cosmetics for mature skins): its performances are excellent, especially in terms of return and guests’ fidelity. However, Sisley faces difficulties to develop itself in emerging countries due to its size. It also faces intense competition against the “big players” in this industry. This leads us to ask the question: How can Sisley widen the market niche it got used to be in to conquer more market shares and to protect itself against the "giants" of luxury cosmetics industry? After a short recall of how the French luxury industry works, we will focus on Sisley, what it does, how its distribution network is organized, and how to address its development in France and abroad (with a special focus on China) in order to solve this issue. II. The luxury industry
In the world, the luxury industry has an estimated turnover of approximately €170 billion. Growth is mainly in exports, particularly to emerging countries (Brazil, Russia, India, Mexico and China) with growth rates between 5% and 9% in 2011. The French market of luxury companies is one of the most important ones in the world. It generates a turnover of €25 billion and it is the home of most of the world leaders (L’Oréal, LVMH, Puig, Chanel, …). In total, 800 French companies are specialized in and luxury goods and employ more than 70,000 jobs in France. III. Sisley Company
Sisley is a French company that creates and distributes very high-end skincare and make-up products, along with very particular fragrances. It was launched in 1976 by Hubert and Isabelle d'Ornano. Since its creation, the brand has been distributed in over 90 countries that represent 85% of its turnover from exports. A familial French company
Sisley is a 100%-familial company. The founder, Hubert d’Ornano, is a visionary creator and daring entrepreneur who headed the company by promoting three fundamental values: innovation, quality and entrepreneurial spirit. His wife, Isabelle d’Ornano (also known as the Polish Princess Potocki), is the Vice-President of the company and is also in charge of product innovation and advertising. Two of their children are very engaged in the company: Philippe d’Ornano who is the General Manager and directs the company’s International development, and Christine d’Ornano who is the Assistant General Manager and heads one of the group’s subsidiaries in Britain. An international company
Alongside the d’Ornano family there is a closely-knit management team and about 4,000 employees of more than one hundred different nationalities. They contribute to Sisley’s worldwide success through 32 firms all around the world in over 90 countries on all five continents.
The production, administration and research laboratories of the company are located in France. Sisley products are manufactured mainly in its modern factory in Blois (Loire-et-Cher), while its research and development laboratories are located in Saint-Ouen-L’Aumône, near Paris. The headquarters is located in the heart of Paris, Avenue George V. The 32 firms present local support and primary activities except on production. SISLEY PRODUCTS AND ACTIVITIES
Sisley’s activity is divided into skincare, makeup and fragrance products. It also provides special intensive treatments and associated personalized advice services as well as luxurious treatments in a handpicked selection of the world leading hotels and spas.
Skincare: bespoke expertise and advice
Sisley presents an extensive range of products designed to meet the needs of different skin types and skin concerns: makeup removal, cleansing, toning, nourishment, hydration, repair, age-defense care, sun protection, …
Makeup: technology catering to color
Sisley has created a collection of Botanical Makeup designed under the direction of...
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