Introduction
The Luxury goods consist of many products such as jewelry, watches, cosmetics, beauty products and others. Almost all the people use or wear luxury products according to their lifestyle. The luxury items’ market trend has been increasing throughout the years due to the riseina person’s disposable income, consumer’s lifestyle and enhancing self-esteem. The demand for the luxury products has been significantly increasing especially in the developing countries such as Europe, Japan, United States, India, and others. There are three factors which affect the luxury industry such as the diversifications of brands, prices differentiation, and theemergence of a new competitor in the luxury products.
Mauboussin, a family business and one of oldest French jewelers whodeals in the manufacturing and selling of luxury products mainly jewelry and watches globally. It was established in the year 1827 and became a known reputed firm especially by participating in the world fairs in Paris and Vienna. During the year 1998,the firm started to suffer loss as it lost its potential client Sultan of Brunei which had been an accounted for 80% on its sales. This was when the business decided to open its own retail shops for dealing with consumers directly.
Mauboussin Japan A French Gem In Asia Harvard Case Solution & Analysis
Mauboussin also dealt in Japan through exporting its products to Daimaru chain of department stores in which they and agreed on not damaging the reputation of Mauboussin, displaying of the products on the store’s windows and taking initiatives for further developing the brand in the market. The reason Mauboussin had started to export in Japan as the demand for the luxury products had been significantly increasing, although, it had been facing certain difficulties such as no awareness of Mauboussin among the customers, no distribution strategy neither a product strategy.
The company had opened many retail shops in Asian countries like Hong Kong, Tokyo, Singapore, Taiwan and many other. Mauboussin had been experiencing losses due to high investment in the areas and not enough sales to even break-even until recently the company had been acquired by Dominique Fremont through 87.5% equity. He hired Alain Nemarq as the general manager who took various steps for improving the company during the year 2002 and 2007 until the company had started to face difficulty when one of its distribution channel Disco had decided to disband.
Assess Nemarq’s management
Alain Nemarq was appointed as the general manager of the company by the new owner of Mauboussin Dominque Fremont. Both of them had little experiencing regarding the selling of luxury products.Nemarq was given the responsibility w to improve the company’s performance and the goal for him was to earn EUR65 million sales by 2012 and EUR100 million by 2014 for the company. The current state of the company in the year 2001 was that it had gained a revenue of EUR20 million, but it had suffered a loss of EUR30 million.....................
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