Louis Vuitton 2006 Annual Report Download - page 56

52 LVM H 2 0 0 6 SELECTIVE RETAILING
The success of its loyalty card, a key component of a close relation-
ship with its customers, has led Sephora to expand it to virtually
every country in Europe and to develop in the United States a simi-
lar program due to commence in 2007.
Sephora has greatly increased its visibility on the three continents
by advertising through numerous media (billboards, press, radio,
television, Internet, mailings). In 2006, a very well received first
advertising film was shown in French movie theaters.
Le Bon Marché affirms its unique positioning
Every year, Le Bon Marché increasingly asserts itself as the bench-
mark store for luxury and prestige in the heart of Paris. Its recent
developments in the world of women’s fashion contributed to a
sharp increase in its revenue and profit from recurring operations
in 2006. More high-end foreign customers are choosing Le Bon
Marché as their preferred store when they are in Paris.
In 2006, the lingerie space underwent renovation and will represent
one of the drivers of growth in 2007. A new advertising campaign with
a very chic design has been conducted to reinforce the high-end
positioning and image of this Left Bank department store.
Outlook
In 2007, DFS will amplify the efforts involved in its strategy of upmar-
ket positioning to strengthen its standing as the leader among Japa-
nese and Asian customers. The continued increase in international
travel in zones where it has locations is an important source of long-
term growth.
23 net openings in 2006 on the American continent, which brings the
number of large stores in its network to 142 (including four in Canada).
Of note are openings at very high-quality locations, particularly in Manhat-
tan, where Sephora is present through 11 points of sale. The website
sephora.com continues to experience very strong growth.
Sephora is actively pursuing winning new territories. In China, where it
made its debut in 2005, Sephora had 12 stores principally located in
Shanghai and Beijing, had launched its loyalty card and developed its
website by December 31, 2006. At the end of 2006, Sephora had also
opened its first location in the Middle East.
A bolder strategy of differentiation
In 2006, Sephora emphasized its strategy of differentiation and
building customer loyalty, which rests on several pillars: an inno-
vative and high-quality selection of exclusive brands that meet high
expectations, such as Strivectin (anti-wrinkle care) and Bare Escen-
tuals (mineral makeup); forming dynamic partnerships with the
inescapable large brands in the selective world of perfume and
cosmetics; strengthening its positioning as a beauty expert, illus-
trated by the development of innovative services and welcoming
spaces, such as Sephora Studio, a dispenser of care and wellness,
which was created in 2006. Sephora also continues to success-
fully renew and develop the high-quality products that are sold at
especially attractive prices under its own brand. That entire policy
is supported by steady investment in the training of advisors and
store managers: there is an in-house school on each of the three
continents where Sephora operates.
Excellence
in selection
and service
Selective Retailing
Private Stylist:
Men, too
Spurred by the success of the
concept that Le Bon Marché created
in 2005 in partnership with
Vendôme Services for its customers,
Balthazar, the men’s department,
now has its “private Stylist” service.
Whether they want to renew
a stylish and sober traditional
wardrobe, move toward more
“trendy” clothing, or find an outfit
for a special occasion, men will
discover the privileges of
unparalleled service in a welcoming
space, with a professional at their
call: getting a first impression
of what they are looking for with
a telephone call, selecting the stylist
who best understands what they
want, assembling a personalized
wardrobe, making an appointment
that can accommodate the busiest
work schedules to try on and choose
the outfits that have been selected,
in a private room. A “five star luxury”
service that should satisfy men who
are busy but still care about looking
their best.