You have been seeing Bollywood actors and actresses using Christian Dior handbags and accessories, which are expensive and comes under luxury collections. One bag is priced about 1 lakh rupees to more than 10 lakhs. Once upon a time, it was under severe losses and was unable to run the company due to the energy crisis. Due to crude oil prices increasing, the textile industry began to bleed. Imagine a company being bankrupt back in time, with extreme difficulties and protests.
The French government had to intervene to handle the complex issues of the Boussac Group. It has issued notices to the company regarding employees and their well-being. Removal of them could lead to massive protests and an unemployment crisis in France. It also issued to run the organization without closing, even if it is running into losses. This made the company stressful and brought financial pressure on the group.
The journey of Luxury bags.
Bernard Arnault had zero experience and had massive courage and capability to rebuild it. Initially due to losses, Bernard sold all his 65 local industries and assets to repay the debt he had. Whatever the products he sold directly went to the bank to repay employee salaries. They sold the logo and design of their brands to local brands, which made the brand popular but lost its unique identity. After a few years of struggle, the company stood firmly back again.
The new journey began again, but this time, the strategy changed with a unique position and brand management. Initially, they improved the quality of the bags with a luxury look and equipment. They laid off 9000 employees to save costs and expenses, breaking the French government contract. They increased the prices and choked up the supply of goods, making them rare and precious. The people curiously waited in queues for months to buy. The marketing strategies made it even more popular across the globe.
Princess Diana of Wales used a Christian Dior bag while traveling and the media captured a picture which went absolutely crazy back then. This viral image of Princess Diana brought the bag into the luxury category, making it expensive and high quality. A few years down the line, with a modernized approach, Christian Dior bags have been used by famous singers like Beyounce and they launched advertisements on MTV. Eventually, they introduced various initiatives in beauty products and clothing. Today Christian Dior is worth $100 billion dollars with 532 dedicated stores across the globe.
