fashion & fizz

Fashion & Fizz

Fashion & Fizz

V. Pisipati | Fashion & Fizz 2

Summary:

Woodin, a premium African clothing brand, will partner with Montaudon, a French champagne brand. The companies will launch special-edition bottles of Montaudon champagne in Nigeria, the world’s fastest-growing champagne market. This initiative will help Montaudon to increase its visibility within Nigeria, and also create a value chain localized within Africa. All profits will benefit Acción International, which provides microlending and vocational training within Nigeria.

Table of Contents:

African Luxury Market . . . . . . . . . Nigeria . . . . . . . . . . . . . . . . . . Nigerian Luxury Market . . . . . . . . Nigerian Champagne Market . . . . .

Montaudon Champagne . . . . . . . . Woodin Fashion . . . . . . . . . . . . . Product Concept . . . . . . . . . . . . Production & Distribution . . . . . . Lifecycle: Glass . . . . . . . . . . . . . Lifecycle: Champagne . . . . . . . . . Works Cited . . . . . . . . . . . . . .

345679

1114151618

Africa is home to seven of the world’s ten fastest growing economies

70% of the population lives in countries with annual GDP growth over 4%; GDP of the African continent was 5% in 2013

The number of High Net Worth Individuals (HNWI) in Africa grew by 4% in 2011, twice the growth rate in Asia

Investible wealth of African HNWI’s is estimated at $1.1T

Luxury brands are already moving some production to Africa. Brands like Vivienne Westwood, Stella McCartney, and Fendi use artisans for embroidery

African prints have already influenced many design houses like Yves Saint Laurent and Manolo Blahnik

There were six Fashion Weeks in Africa in 2014: Lagos, Accra, Nairobi, Cape Town, Addis Ababa, Dakar

Despite overall growth, there are significant differences between each of the 55 countries in Africa in terms of buying power, trade infrastructure, and stability

“Africa does not need charity. Africa needs investment and partnership.”

3

African Luxury Market:

V. Pisipati | Fashion & Fizz

Nigeria is Africa’s most populous country and has the largest GDP, which has grown annually by an average of 5.7% over the past five years.

Weaknesses:• Low standards of products and services within Nigeria• Lack of advanced technologies and highly-skilled labor

Opportunities:• High population density can increase brand penetration• Demand is greater than supply of luxury• Initiatives to reduce corruption

Threats:• Increasing crime and fraud rate• Water and fuel shortages are increasing in frequency• High levels of corruption

Strengths:• Population of 200M; large age proportion under 30 • High, stable level of oil export sales is increasing GDP• Growing household wealth is fueling consumer spending

4

Nigeria:


Global luxury brands are now finding ways to target Nigerians both abroad and in the country

Most luxury purchases are made abroad in Dubai, Paris, and London. There is currently little infrastructure for upscale shopping and distribution within Nigeria

Once infrastructure improves, Nigeria is expected to become the luxury capital of Africa

Nigeria’s five largest cities are expected to each have consumer spending power equivalent to Mumbai by 2020 ($25B)

Three largest luxury brands purchased domestically are Moët – Hennessy, Amrapali Jewels, and Porsche

LVMH is doubling its marketing budget for champagne and liquor products in Nigeria

Bold, colorful prints are popular in Nigerian fashion and culture

High aspirational value for luxury brands in Nigeria

5

Nigerian Luxury Market:


Nigeria is the world’s fastest-growing champagne market, ahead of all emerging and developed countries

Nigeria is among the 20 largest buyers of champagne worldwide

Champagne is one of few luxury items that can be bought within Nigeria; most other luxury consumption is done abroad

2011 consumption was over $50M USD, expected to reach 1.1M liters by 2017

Market is driven by a status-conscious elite engaging in high levels of conspicuous consumption

Champagne is commonly served and expected at any upscale event

Nigerian champagne consumers are highly brand conscious: Moët Chandon has the most market share, followed by Veuve-Clicquot, Cristal, and Dom Pérignon

The middle class is now beginning to buy champagne as well for special occasions

Montaudon recently entered the Nigerian market and is looking to increase its visibility and sales

6

Nigerian Champagne Market:


Montaudon is a Champagne House founded in 1891 in Reims

Owned by the Montaudon family for four generations

Gained international popularity during the “Roaring-Twenties” era

Early endorsement deal with Josephine Baker, distributed to her cabaret shows in Paris

Brand is known by the red “M” logo

Montaudon was acquired by LVMH Moët Hennessy in 2008

7

Montaudon Champagne:


The brand offers six varieties for a broad range of tastes

Réserve Première Brut

Réserve Première Demi-Sec

Chardonnay Premier Cru

Brut Millesime 2002

Classe M Prestige Cuvée

Grande Rose

8

Montaudon Champagne:


Woodin:

Premium, fast-fashion African fashion brand with womenswear and menswear designs inspired by tribal prints, materials, and silhouettes

Started as a wholesale fabric company, but now has 23 prèt-a-porter boutiques across Ghana, Nigeria, Togo, Benin, Democratic Republic of Congo, and Cote d’Ivoire

Manufacturing operations are based in Ghana and Cote d’Ivoire, and employ 1,700 people

The brand is a part of the Dutch-owned Vlisco Group

All cotton is sourced from small and mid-size cotton plantations in sub-Saharan countries in an effort to further spur economic growth within Africa

Positioned as higher quality than Chinese imported products which now constitute the majority of mid-range and premium apparel available in West Africa

The brand’s end-to-end value chain remains on the African continent, from design to production to sale

9V. Pisipati | Fashion & Fizz

Montaudon, a French champagne brand and recent entrant to the fast-growing Nigerian champagne market, will launch a special-edition bottle of each of its six varieties in collaboration with Woodin, a West African premium fashion brand.

Woodin will design the box and bottle label for the special-edition bottles. They will be sold throughout Lagos, Nigeria’s wealthiest city.

Woodin has a high sustainability factor, as it is made within Africa and sources its materials from inside Africa

Once the champagne arrives into the content, the end to end value chain will remain in Africa, employing Africans

Proceeds will go towards development projects in Nigeria via Acción International.

11

Product Concept:


Global:

Nigeria:

Established Acción Microfinance Bank in Lagos in 2007

Provides vocational training and lending to Nigerian communities

Global microfinance institution

Provides lending and technical training

6.6M active borrowers in 2013

Active in 21 countries

Partnered with 29 banking institutions

$7.1B in active loans

12

Acción International:


Réserve Première Brut

Réserve Première Demi-SecChardonnay Premier Cru

Brut Millesime 2002

Classe M Prestige Cuvée

Grande Rose

Montaudon / Woodin Special Edition Bottles:

13V. Pisipati | Fashion & Fizz

The designs for packaging and labeling would be done in Ghana by the Woodin team

LVMH would manage the production of the champagne, bottling, and labeling

The special-edition Montaudon bottles would be launched in October, leading up to the Calabar Festival in December

Bottles would be sold to alcohol distributors who supply wine stores in Lagos

The box would be made from recycled cardboard and use minimal chemical additives and surface coatings

All profits will be donated to Acción’s vocational training programs in Nigeria

This will not be a money-making venture for Woodin and Montaudon, but rather a long-term investment to increase brand awareness in Nigeria that will lead to purchases of both brands

Each bottle will be designed to be an “object of desire” that customers will keep or re-use as a decorative object rather than disposing of it into landfills

14

Production & Distribution Strategy:


90% of manufactured glass is Soda-Lime Glass made from silica (sand)

Production Process:

1. Silica is combined several with other ingredients including:

•Sodium carbonate (soda): lowers the melting point•Calcium oxide (lime): along with magnesium oxide and

aluminum oxide, these ingredients reduce water solubility•Iron Oxide and Chromium: creates a green color

2. The batch is melted in a gas furnace

3. Bubbles are removed

5. Glass is blown and pressing into bottles

4. The surface is polished by pressurized nitrogen and coated Champagne bottle manufacturers in France have been working on slimming down the bottle in an effort to reduce its weight and decrease carbon emissions from transportation.

Sustainability Considerations: Use of lead and arsenic, waste management, water usage, and energy consumption

15

Product Lifecycle Considerations: Glass


After World War II, France focused on industrializing its agriculture to fuel rapid growth in output. This included champagne production, in which the use of GMO grapes, chemical fertilizers, and pesticides was encouraged. Overproduction began to erode the hills within the champagne growing regions, and insects started becoming immune to pesticides in the late 1990’s. The higher amounts of pesticides required to protect vineyards risked toxic contamination of the grapes.

In May 2014 the Champagne Bureau created a sustainability certification program called VDC (Viticulture Durable en Champagne). This is in addition to the French environmental certification program HVE (Haute Valeur Environmentale)

There are 125 criteria against which producers are evaluated during the VDC certification process. Certification takes three years, and requires audits every 18 months to maintain certification status

New standards of excellence include licensing requirements for the purchase of pesticides, using organic fertilizer, waste-water management, and re-introducing of grass into vineyards Most large champagne houses are HVE certified, including Moet & Chandon which owns Montaudon and the largest area of vineyards in Champagne. Many brands are now pursuing the VDC certification too.

Champagne Houses have expressed an interest in supporting the certification of their suppliers by paying a higher price for the grapes produced to VDC standards to offset the increased labor required to remain compliant.

16

Product Lifecycle Considerations: Champagne


Additional sustainable practices being adopted in the Champagne industry include:

Energy efficient refrigeration units

Tank-wrapping to save energy used to stabilize temperature

Electric forklifts in warehouse

Harvesting at night so less energy is needed to cool the grapes after picking

Composting discarded vines and organic matter, and using the compost as fertilizer

Installation of moisture monitors in soil so irrigation is only done when necessary

Drip irrigation instead of sprinklers

17

Product Lifecycle Considerations: Champagne


18

Works Cited“What will it take for Africa to join the global fashion system,” Business of Fashionhttp://www.businessoffashion.com/community/voices/discussions/what-will-it-take-for-africa-to-join-the-global-fashion-system/tapping-31-billion-africa-opportunity “Vlisco: The African Fashion Titan from Holland,” Business of Fashionhttp://www.businessoffashion.com/articles/global-currents/vlisco-the-african-fashion-titan-from-holland “Woodin Fashion,” Woodin Fashionhttp://www.woodinfashion.com “Montaudon Champagne,” Montaudon Champagnehttp://www.champagnemontaudon.com “Non Governmental Organizations (NGO) in Nigeria,” Nigeria Galleriahttp://www.nigeriagalleria.com/Agencies_and_Organizations/NGOs_b.html “Acción International,” Acción Internationalhttp://www.accion.org “Nigeria's love of champagne takes sales growth to second highest in world,” The Guardianhttp://www.theguardian.com/world/2013/may/08/nigeria-champagne-sales-growth-second-highest

“Nigerians’ Thirst for Champagne,” This Day Livehttp://www.thisdaylive.com/articles/nigerians-thirst-for-champagne/148171/ “Luxury Brands Target Nigeria As Boom Economy Creates New Class of Elite,” The Huffington Posthttp://www.huffingtonpost.com/2012/03/22/luxury-brands-nigeria_n_1372164.html “MFIs in Nigeria,” Microfinance Nigeriahttp://www.mixmarket.org/mfi/country/Nigeria


fashion & fizz

Documents