Business Model

 

DEDICATED AND EXPERIENCED MANAGEMENT TEAM

The Group is run by a passionate and dedicated Senior Management team with a degree of focus on execution which we believe can only be achieved by a pure play luxury goods company.

The team is led by Pierre Denis, CEO, who joined Jimmy Choo in 2012 with more than 25 years of experience in the luxury industry and a deep knowledge of Asian markets. Sandra Choi has been the Creative Director of Jimmy Choo since its inception in 1996. Prior to the founding of Jimmy Choo, Ms. Choi attended the prestigious Central Saint Martins School where she studied for a degree in fashion design while apprenticing under her uncle, Mr. Jimmy Choo, OBE. Together, Pierre Denis and Sandra Choi share a vision to create one of the world’s most treasured luxury brands.

They are supported by a highly experienced management team, with a long and successful history of working in the luxury goods sector. This team draws on experience across regions and functions, bringing together some of the best talent in the industry. It is this team that forms the backbone of the business.

LEADING DESIGN TEAM THAT DRIVES PRODUCT AUTHORITY

Jimmy Choo’s design team of 15 is led by Sandra Choi, who has been Creative Director for the brand since its inception. Jimmy Choo’s design team has a proven track record of developing Sandra’s conceptual visions into beautiful products multiple times each year through a structured process encompassing line plans, designs, prototypes, edits and pre-launch samples.

Jimmy Choo’s design team is at the forefront of the industry in terms of its ability to interpret fashion trends. This provides clients with a very broad product range that addresses all categories and functions of the luxury shoe offering, including evening, day, catwalk and boots to accommodate the full spectrum of client tastes.

Alongside our seasonal collections we are also constantly looking for ways to innovate within our continuative core Choo 24:7 collection. In 2016 we introduced a number of new and innovative products, with new shapes and styles. These include the Romy shoe, with its softer toe point and unique heel construction, and the Ren, a modern fashion twist on the classic Jimmy Choo caged sandal.

MERCHANDISING EXCELLENCE

Jimmy Choo’s merchandising model is designed to nourish the brand through innovation and to drive footfall through the timely delivery of fashion-forward products, underpinned by a continuative core of iconic products which are continuously reviewed and refreshed.

The product calendar is managed in order to create a structured flow of new products into our Directly Operated Store (”DOS“) and multibrand networks which drives editorial focus, footfall and conversion into sales. The calendar is based around multiple collection drops each year, with the continuative core Choo 24:7 collection complementing the seasonal offerings.

Designing successful collections and managing the complexity of multiple collection drops each year relies upon the seamless interaction, integration and cooperation between Jimmy Choo’s merchandising, design, supply chain, brand communication and distribution teams. The success of this collaboration is shown in Jimmy Choo’s track record of offering a considerable depth and breadth in its collections, across multiple functions, heel heights, materials, sizes and colours. We have also been able to leverage our expertise to replicate this model across both our Accessories and Men’s offerings.

BESPOKE SUPPLY CHAIN FOR PRODUCT EXCELLENCE

Jimmy Choo operates a lean and flexible supply chain, outsourcing production and logistics to gain flexibility and speed in bringing products to market. Those elements which protect the brand are owned and managed by Jimmy Choo, including vendor liaison, engineering assurance and product development which are managed through Jimmy Choo Florence S.r.l.. Jimmy Choo produces well over one million units per annum. Materials research, sourcing, product development, engineering, production planning and control, quality assurance, customer service and after sales are all controlled by Jimmy Choo.

In order to produce luxury shoes with a high quality finish, Jimmy Choo partners with suppliers with the specific skillsets to match each particular shoe style. Accordingly, Jimmy Choo’s products are produced by specialists in the Florence and Veneto regions of Italy, with the exception of espadrilles which are made in Spain. This multi-supplier strategy provides specialist skills, scalability, flexibility and speed to market, as well as diversifying risk. This model enables the Group to drive gross margin improvement through early deliveries of new collections and inventory control, resulting in lower markdowns.

Jimmy Choo’s progressive moves towards Omnichannel, integrating Online with the Retail channel, will leverage the benefits of the investment in supply chain infrastructure.

360° COMMUNICATION STRATEGY FUELS THE BRAND

Jimmy Choo’s status as a globally recognised luxury brand is a result of our entrepreneurial and dynamic approach to brand communication.

The Group applies an all-encompassing brand communication strategy which includes celebrity placement, editorial and digital influencer engagement, product advertising (in both digital and print media), launch events and store layout and display. We adopt this approach for all our new product launches and our success has resulted in Jimmy Choo consistently being a top ranked brand globally in editorial for luxury women’s shoes. We also enjoy a very strong social media following.

Jimmy Choo’s brand communication spend in 2016 was 5.0% of revenue vs 4.9% in 2015, with a key focus on the 20th anniversary of the brand. This level of spend has allowed us to retain our position alongside our larger luxury brand peers. This spend as a proportion of revenue is within appropriate parameters for a leading luxury shoe brand.

MULTICHANNEL DISTRIBUTION MODEL

Jimmy Choo has a successful, balanced distribution network, with our retail DOS network at the core and significant opportunity for expansion.

Jimmy Choo has a strong position in the luxury shoe market, being one of a very small number of luxury shoe specialist brands with the requisite scale to compete globally. We have a particularly strong presence in EMEA, USA and Japan, with a growing footprint in the rest of Asia and have experienced strong growth in recent years across all these markets.

The Group continues to invest significantly in its online platform, which has experienced strong revenue growth in recent years. In 2016, we started a progressive roll out of Omnichannel services, which will allow us to improve product availability, inventory productivity and client engagement for our DOS and online network, initially in the USA and Europe.

We continue to benefit from strong multibrand distribution, which provides attractive economics and acts as a lead indicator of collection success and as a benchmark against competitors. The Group’s franchise channel is an important entry model into new markets. These serve as a potential springboard to expanding the DOS network once the new region has become established. During 2016, we confirmed that we are planning joint ventures in South Korea and in the UAE.