Most of the French brands have faced certain challenges in order to survive in the French market. Following are the brands that adopted several different strategies which made them successful in the market.
Hermes Paris is ranked the world’s most luxury brand which manufactures luxury goods.
The brand has achieved iconic status in luxury goods and its product range includes leather goods, accessories, furniture, fragrances, watches, jewellery etc. However, Hermes’ brand strategy is consistent and revolves around several components.
Creativity
Every year the company provides a theme to their designers to create new products and designs.
Craftsmanship
Hermes have designed a 2-year training program for craftsmen before working on any leather product.However, this training period slows down the production process of leather goods.
Superior Quality
Hermes has maintained its high-end quality standards in the luxury goods segment. Superior quality among products is considered to be one of the key element of their brand strategy which leads to success.
Collaboration
The brand collaborated with one of the iconic scarf brand named as Hermes Editeur. These collaborations helped the brand to position itself in the market.
Loreal
Loreal is one of the world’s largest cosmetic brand founded by a French chemist. The company’s consistent strategy is superior quality products, innovation and geographical expansion.
After immense growth in France, one of the biggest challenge for Loreal was to position one of their brand named Plenitude (moisturiser brand) in the U.S market.
Factors which a new entrant can adopt to position themselves
Innovation & Creativity
In order to survive in emerging and established markets, new entrants have to bring innovation and creativity into their business processes. For instance, if the market saturation is high then the chances for the growth of new entrants will be lower.
Due to this, the new entrants might face a loss. In order to overcome this, new entrants have to focus on innovation.
Strengthen Customer Relationships
Another major factor for new entrants to consider is to maintain or strengthen their relationship with their customers. This will help the new entrants to make customers loyal to their company. Moreover, once customer loyalty will be high then it will help the new entrants to survive in the market.
Government Regulations
New entrants have to ensure that their business sells products according to laws and regulations. If there is anything illegal found in the business of new entrants the government ban such companies.