Ports Presentation (Business in China Class)

1. CASE STUDY REVIEW
Katherine Topliffe // Mirza Boric // Theresa Huellinghorst // Katie Espy // Anthony Cope
© Created by Mirza Boric
CHINA’S WALK IN THE GLOBAL LUXURY FASHION BOULEVARD
INTERNATIONAL

2. PRESENTATION
AGENDA
Background & History
Characteristics of A Luxury Brand
Ports Success In Chinese Market
Luxury Consumption Around The World
Future Growth
Luxury Marketing
Brand Management Models
Social Issues and Critiques Related To Industry
Conclusion

3. WHAT IS PORTS?
PORTS Store in Paris
• Ports is a fashion brand founded in
1961, specializing in luxury ready-to-
wear accessories for men and
women.
• As a pioneer in the nascent luxury
market, Ports made a lasting impact
in China by introducing fashion
consciousness to the Chinese
consumers through early support of
the global fashion media

4. PORTS CASE
PORTS LOCATIONS
Ports 1961 Has 21 Locations On 3 Continents
4
New York, Livermore
CA, Chicago, Montreal
& Halton Hills
(Canada)
N. AMERICA
Sed ut perspiciatis
unde omnis iste
nat us error sit
N. AMERICA AFRICA
France, England,
Germany, Russia,
Italy
EUROPE
Hong Kong, China,
Saudi Arabia
ASIA

5. PORTS CASE
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KEY PEOPLE
Key People That Contributed to The Success of The Company
5
Founder
LUKE TANABE (1920-2009)
• Original founder of Ports
& Tabi International.
• Was transferred to Etac
Sales LTD after parents
sold Ports.
Owner
ALFRED CHAN
Wife of Alfred / Owner
FIONA CIBANI
Owner of Ports 1961
TIA CIBANI
• Bought Ports in 1989
under Etac Sales LTD.
• Moved Ports to China.
• Created Ports Design Ltd.
With Husband Alfred.
• Was Creative Director.
• Created Ports 1961, in
New York, NY.
• Creative Director of Ports 1961

6. PORTS CASE
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PORTS COLLECTIONS
A Small Sample of Ports Lines Released in 2015
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PREFALL 2015 COLLECTION
www.ports1961.com
Ports Spring Collection
SPRING 2015 COLLECTION
www.ports1961.com
Ports Spring Collection
SPRING 2015 COLLECTION
www.ports1961.com
Ports 1961 Fall Collection

7. PORTS CASE
PORTS HISTORY
Overview of Significant Events Within Ports
7
• Ports was founded by Luke
Tanabe and his two daughters.
ESTABLISHMENT
1961
RENAME & EXPANSION
1966 – 1970’S
TABI INTERNATIONAL
1980’S
• Renamed to Ports International.
• Expanded throughout North
America and internationally.
• Tanabe creates a
Canadian Store Chain.

8. PORTS CASE
PORTS HISTORY
Overview of Significant Events Within Ports
8
• Tanabe’s Parents sell Ports,
Tabi and Tanabe to Alfred Chan
(Etac Sales LTD).
RETIREMENT
1989
ETAC SALES BANKRUPTS
1992
RELOCATION
1993
• Alfred keeps Ports.
• Sells stores that Were
located in U.K and
North America.
• Chan relocates Ports
to China.

9. “WHAT IS LUXURY?”
Is It The State of Great Comfort & Extravagant Living, or The Nature Of A Luxury?

10. PORTS CASE
CHARACTERISTICS OF A LUXURY BRAND
Genier Defines Luxury With These Characteristics
10
The products must symbolize.
PRODUCT INTEGRITY
Luxury items should be hard to attain
and have selective availability.
PREMIUM AVAILABILITY
Luxury brands must uphold a strong reputation.
BRAND IDENTITY
Luxury items must resemble
the highest quality possible.
HIGH QUALITY
Luxury items must be visually pleasing.
AESTHETICS
High prices add value to luxury items.
HIGH PRICE TAG

11. PORTS CASE
LUXURY BRAND SEGMENTS
How Do Marketers Segment Luxury Brands?
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LUXURY WATCHES & JEWELRY
APPARELS & LEATHER GOODS
WINES / CHAMPAGNES & SPIRITS
FRAGRANCES
AUTOMOBILES
OTHERS
LUXURY
SEGMENTS

12. PORTS CASE
PORTS EXPANSION STRATEGY
Ports Implemented Various Strategies to Become Globally Recognized
12
Chan and wife Fiona
create Ports Design LTD.
ESTABLISHMENT
1994
Ports acquires BMW license for
rights to use BMW’s trademark.
BMW LICENSE
2000
Ports implements Shop-at-
Home to VIP members.
Tia Branches off and creates
Ports 1961 in New York.
Goes Public on the Hong Kong
Stock Exchange.
EXPANSION
2003
Ports is rated as third most
desirable brand.
REPUTATION
2006

13. PORTS CASE
PORTS EXPANSION STRATEGY
13
Ports is featured in the movie
Devil Wears Prada.
MOVIE FEATURE
2006
Ports 1961 opens showcase
store in HKIA.
SHOWCASE
2008
Ports is feature in the hit TV-
series Sex and the City.
SHOW FEATURE
2008
Ports 1961 launches a men’s
fashion line.
MENSWEAR
2011
Ports Implemented Various Strategies to Become Globally Recognized

14. PORTS CASE
PORTS SUCCESS IN CHINESE MARKET
Key Factors That Contributed to The Success of Ports In China
14
Ports had control over their own design, manufacturing,
marketing, retail and distribution.
VERTICALLY INTEGRATED
Ports distributed their products to luxury stores and
outlets that were among other high end brands.
DISTRIBUTION
Ports effectively conveyed that clothes symbolize who
you are as a person and how successful you are.
PERCEPTION AMONG CHINESE MARKET
Fiona and Tia move to China to better understand their
target market and Chinese culture.
WIFE AND SISTER IN LAW MOVE TO CHINA
Ports endorsed various celebrities to enhance the
perception that their products were high quality and
accepted by the western world.
CELEBRITY ENDORSEMENT
Ports was featured in various fashion shows across
Europe which popularized the brand outside of China.
FASHION SHOWS

15. PORTS CASE
LUXURY CONSUMPTION
Countries With The Largest Luxury Goods Market
15
1 United States $70.1 B
2 Japan $18.1 B
3 Italy $16.1 B
4 France $15.3 B
5 China $15.0 B
6 United Kingdom $13.4 B
7 Germany $10.4 B
8 Korea S9.1B
40%
60%
$10.4 B
Germany
$13.4 B
United Kingdom
$9.1 B
Korea
$70.1 B
USA $16.1 B
Italy
$18.1 B
Japan
$15.3 B
France
$15.0 B
China

16. PORTS CASE
FUTURE GROWTH
Suggestions and Strategies For Future Growth
16
Ports must utilize various forms of social media
marketing to gain visibility towards their brand.
DIGITAL MARKETING
Ports must make an effort to organize and
revamp how their company looks on Google.
SEARCH ENGINE OPTIMIZATION
Ports must develop engaging content to
promote though social media channels.
CONTENT STRATEGY
Ports has to explain who they are as a
brand and why their brand is unique.
BRAND STORY TELLING
2
1
3
4

17. PORTS CASE
INDEPENDENT FAMILY/SUB BRANDING
Features of an Independent Family Brand Model
17
WHAT IS IFB?
Single brand name is used to sell two or
more related products.
USE
IFB is used when brands already maintain a
positive and reputable images.
ADVANTAGES
Unity, cost reduction, creates positive
associations with the parent brands.
REINFORCE VALUE
Reinforces values that the parent brand upholds.
IFB

18. PORTS CASE
MULTI-BRAND STRATEGY
Features of a Multi-Brand Model
18
WHAT IS MULTI-BRAND MODEL?
Marketing products under different and
unrelated brands.
USE
Caters to consumers that like to
try different brands.
ADVANTAGES
More shelf space, leaving less room for
competitors.
DISADVANTAGE
Many fail with this model because
of poor management.
MULTI-
BRAND

19. PORTS CASE
BRANDING MODELS & PORTS
What Ports Can Learn From These Branding Models
19
UNITES COMPANY (IFB)
CREATES GOOD REPUTATION (IFB)
APPEALS TO WIDER
RANGE OF CONSUMERS (M-B)
OPENS INNOVATION (M-B)

20. PORTS CASE
SOCIAL ISSUES & CRITIQUES
Negative Perceptions Among The Fashion Industry
20
Ports and the fashion industry are criticized for their high
prices and margins. Often these products are cheap to
produce but sold at a much higher price.
EXCESSIVE PRICE / SPENDING
Chinese have a history of conserving and saving money.
Spending too much on luxury, can be viewed as
wasteful by some Chinese people.
CHINESE CULTURE AND CONSERVATISM
The prices and availability often exclude the general
population and middle class.
OUT OF REACH ITEMS FOR MIDDLE CLASS
Chinese products have a reputation of being cheap and
counterfeit so luxury products made in China lose some
perception of quality.
“MADE IN CHINA” STEREOTYPES

21. PORTS CASE
PORTS ADAPTING TO CRITIQUES
Ports Attempts at Handling Fashion Industry Critiques
21
Ports has established lower
prices on select specialty
fashions lines that they release.
LOWER PRICES
A VIP program was
established to appeal to a
more prestigious and loyal
customer base.
VIP PROGRAM
Ports has attempted to
educated the Chinese
consumers about what fashion
really stands for and means.
FASHION PERCEPTION
Ports has been dedicated to
producing quality products
even though the manufacturing
is done in china.
MANUFACTURING

22. THANKS FOR WATCHING!