German Culture - Final Exam

“BIRKIN” ICONIC BAG

Lauranne Chauvanaud & Elodie Marteau

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TABLE OF CONTENTS

1. BIRKIN HERMÈS BAG

2. ANALYSIS OF THE HOME CULTURE (FRANCE)

3. ANALYSIS OF THE TARGETED CULTURE (GERMANY) 4. MARKETING CONCEPT: ²  PRODUCT ²  PRICE ²  PLACE ²  PROMOTION

1. BIRKIN HERMÈS BAG

Hemès Paris is a French company working in the design, the manufacture and the sale of luxury products, in par<cular in the field of leather goods. This iconic french ‘maison de haute couture’ was founded in 1837 and is s<ll a referee in French fashion and luxury. Some figures to be more familiar with Hermès:

²  Turnover (2013): 144,4 M€ in France; 174,1 M€ in Europe (France excluded)

²  Growth (2012-‐2013): 10% ²  Sales of leather goods: 383,1 M€ ²  47% of Hermès’ ac<vi<es dedicated to leather

goods ²  10 120 Hermès’ employees worldwide

1. BIRKIN HERMÈS BAG The Birkin bag bears its name perfectly. Indeed, in 1984, the very well-‐known French actress and singer, Jane Birkin met Jean-‐Louis Dumas, the Hermes’ CEO, during a flight between London and Paris. Young mother, she told him her ma`er: the impossibility of finding a bag both prac<cal and sophis<cate. The CEO challenged her to design her dream bag and she did it perfectly. From this story, born the most legendary Hermes’ bag. It is the first luxury bag created

by a celebrity.

« J'étais dans un avion entre Londres et Paris dans les années 80 et j'étais assise, sans le savoir, à côté de Jean-‐Louis Dumas, le président d'Hermès. Mon agenda Hermès était si chargé que tout est tombé. Il m'a dit que je ferais mieux de meJre mes effets personnels dans des poches fermées. Je lui ai répondu : 'Si Hermès meJait des poches...' il a répliqué 'Je suis M. Hermès et je vais meJre des poches pour vous'. Un mois plus tard, il m'a fait envoyer un sac et m'a demandé s'il pouvait l'appeler le Birkin. »

Jane Birkin

1. BIRKIN HERMES BAG

The Birkin is a woman handbag from the french ‘maison de haute couture’ Hermès, designed in the 80 s , h andmade and mostly in leather, which embodies the symbol of wealth due to its high p r i c e and u sage b y celebri<es.

VALUE PROPOSITION

1. BIRKIN HERMES BAG

²  Hand-‐made ²  Mostly in leather ²  U s e o f p r e c i o u s

materials: ostr ich, crocodile, lizard

²  Price depends on the material

²  Scarcity value and exclusivity created by the limited quan<<es available in the stores

CHARACTERISTICS

2. ANALYSIS OF THE HOME CULTURE (FRANCE)

The French culture is made of lièrature, history, art, inheritance, gastronomy and luxury. Thus, France reflects the luxury and the refinement. Also, Paris is the interna<onal capital of luxury, fashion and ‘haute couture’. We can explain that by the huge luxury industry’s French groups such as LVMH (Moët Hennesy Louis Vuiòn) and Kering (ex PPR Pinault-‐Printemps-‐Redoute). We can also consider the Colbert Commièe which gathers 75 French luxury companies and 13 cultural ins<tu<ons. Involved with the French luxury there is the tradi<on. The professions with a tradi<onal know-‐how and authen<city are privileged.

2. ANALYSIS OF THE HOME CULTURE (FRANCE)/CULTURAL DRIVERS: MASLOW

Social needs: a Birkin bag makes you enter into a social class, the bourgeoisie (image of high incomes and a good job). You need money to have a Birkin and not everyone is able to have one.

Because a Birkin is the symbol of wealth, the most important cultural drivers are refered to Esteem:

²  Self-‐esteem

²  Confidence ²  Achievement

²  Respect by the others ²  Recogni<on

LOVE AND BELONGING

ESTEEM

2. ANALYSIS OF THE HOME CULTURE (FRANCE)/CULTURAL DIMENSION OF PRODUCT USAGE

This iconic luxury bag appeals to how their clients feel or want to be understood as an individual within the context of a social group. We can iden<fy it with adver<sing and the use of key opinion leaders who are personali<es snapped in the street.

This product is passive because it is a feminine one.

Regarding to the short-‐term French orienta<on, a Birkin bag is a tradi<onal bag from a tradi<onal French maison de haute couture. Also, because it is a very high quality product, it means that you can keep it a long <me and even offer this bag to your future genera<ons.

Birkin bag is used to establish or confirm social ranking:

² Price category (luxury product) ² Brand image (French know-‐how,

wealth, luxury, sexy, elegant)

Social penal<es could happen because of unpleasant way of dressing.

POWER DISTANCE INDEX: 68 INDIVIDUALISM: 71 MASCULINITY: 43

UNCERTAINTY AVOIDANCE: 86 LONG-TERM ORIENTATION: 39

2. ANALYSIS OF THE HOME CULTURE (FRANCE)/TROMPENAAR

In France people place the c ommu n i t y b e f o r e t h e individuals. People act in a way that is useful also to the society.

People first analyse elements individually and then they put them together.

Product usage works for both. In France, people show their s t a t u s f r om wh a t t h e y accompl i shed (work and rela<onships): you work hard, you earn money so you are able to buy an Hermes bag.

France : 73

•  In France people see culture in terms of human rela<onships.

•  Rules exists but only codify how people relate to one other.

In France people are not scared about displaying their emo<ons. They are not trying to hide or control them.

The amtude is guided by feelings.

PLURALISM COLLECTIVISM/ COMMUNITARIANISM SPECIFIC

AFFECTIVITY INNER OR OUTER-DIRECTED ACHIEVE STATUS

TIME

French people do things when they have <me. It is a sequen<al culture. In addi<on, this Birkin bag has a long lifecycle thanks to his quality and his <meless aspect.

2. ANALYSIS OF THE HOME CULTURE (FRANCE)/E.T. HALL

TIME

In France, this bag represents achievement, success and social status. The Birkin bag does not only say “I am expensive” but it is used by customers that understand the quality of this luxury object. Frenchs will before judge it with a crea<ve point of view and aper they will consider the price.

PROXEMICS CONTEXT

Thanks to the Hermes logo on the bag, you clearly iden<fy it from near as far. Also, it is a very iconic bag, obviously well-‐know in France. So, French people have no problem to recognize a Birkin bag when they see it.

It is important to consider the lifecycle of this bag because when you buy a luxury product in France, you want that it lasts. It is the case for the Birkin bag.

3. ANALYSIS OF THE TARGETED CULTURE (GERMANY) The German culture is influenced by philosophy, history, art, architecture, music, tradi<ons and gastronomy. Besides, German people are very based on general rules, strictness and politeness. The money, the financial security, social acceptance and the compe<<on represent important values. Also, the last war and its history explain us a philosophy developing the ego of each individual. A desire is constant for the Germanic people: to control the emo<ons.

Regarding fashion, Germany is changing. Culturally, Germans are dressed modestly, simply and maintain a “cool lifestyle” at their ease. German fashion is more func<onal than ‘fashionable’. Lately, some new fashion brands born and found their place into this cultural model. The Fashion week also took place in Berlin, as well as the other fashion capitals (London, Paris, Milan, New York). For example, a German fashion brand is establishing itself into the fashion market: Kaviar Gauche (with a French name please!).

3. ANALYSIS OF THE TARGETED CULTURE (GERMANY)/CULTURAL DRIVERS: MASLOW

Social needs: a Birkin bag makes you enter into a social class, the bourgeoisie (image of high incomes and a good job). You need money to have a Birkin and not everyone is able to have one.

Because a Birkin is the symbol of wealth, the most important cultural drivers are refered to Esteem:

²  Self-‐esteem ²  Confidence ²  Achievement ²  Respect by the others ²  Recogni<on

LOVE AND BELONGING

ESTEEM

Such as in France, cultural German drivers are the same ones regarding the Birkin bag. Moreover, Germans are driven by the importance of the Safety aspect but it is not involved in the purchase of a Birkin bag.

3. ANALYSIS OF THE TARGETED CULTURE (GERMANY)/CULTURAL DIMENSION OF PRODUCT USAGE

The ideal self-‐actualiza<on counts a lot in German culture. This iconic luxury bag appeals to how their clients feel or want to be understood as an individual within the context of a social group. We can iden<fy it with adver<sing and the use of key opinion leaders who are personali<es snapped in the street.

This high score means that Germany is a masculine society. It is driven by compe<<on, achievement and success. This product is passive because it is a feminine one. But it also shows achievement and success which matches well with a masculine society.

Regarding to the short-‐term French orienta<on, a Birkin bag is a tradi<onal bag from a tradi<onal French maison de haute couture. Also, because it is a very high quality product, it means that you can keep it a long <me and even offer this bag to your future genera<ons.

Germany is supported by a strong middle class that is able to buy a Birkin bag. This purchase has an important goal for this category of people: it permits them to be closer to the superior social class by adop<ng her codes.

Social penal<es could happen because of unpleasant way of dressing.

In the German society, details are as important than the rest. Thus, wearing an elegant accessory is as important that the complete ousit.

POWER DISTANCE INDEX: 35 INDIVIDUALISM: 67 MASCULINITY: 66

UNCERTAINTY AVOIDANCE: 65 LONG-TERM ORIENTATION: 31

3. ANALYSIS OF THE TARGETED CULTURE (GERMANY)/TROMPENAAR

Germans give priority to them and their direct family before the community. They will not think about their ac<ons in a collec<ve point of view.

People first analyse elements individually and then they put them together. In addi<on, in Germany, people are involved in all what they do.

Product usage works for both. In Germany, people show their s t a t u s f r om wh a t t h e y accompl i shed (work and rela<onships): you work hard, you earn money so you are able to buy a Hermes bag.

Germans insists a lot on general community rules.

In Germany, people want to control their emo<ons. They give priority to values such as money and social acceptance. Thus, they stay professional in their amtude. Owning a Birkin bag perfectly meets these cultural drivers.

UNIVERSALISM INDIVIDUALISM SPECIFIC

AFFECTIVITY INNER OR OUTER-DIRECTED ACHIEVE STATUS

TIME

It is a sequen<al culture in Germany. They are known for the importance of the ponctuality. In addi<on, this Birkin bag has a long lifecycle thanks to his quality and his <meless aspect.

3. ANALYSIS OF THE TARGETED CULTURE (GERMANY)/E.T. HALL

TIME Such as in French culture, this bag represents achievement, success and social status. Germans are direct and clear in their way to understand things. So, it means that when they see the Birkin’s price, they immediately understand that it is a quality bag. It is important for them because they judge products for their quality and status rather than crea<ve and personal statement. We also have to consider that the Birkin bag is one of the most convenient in term of use and <dying up of Hermes’ collec<on. This aspect is defini<vely not negligible in German culture. Just have a look on the famous German cars (such as Mercedes): they are prac<cal, robust and luxurious.

PROXEMICS

CONTEXT

Thanks to the Hermes logo in the bag, you clearly iden<fy it from near as far. So, at least, if a German see the Birkin bag in the street, he is able to recognise the brand. But it is not obvious that it is the case for the exact model.

It is important to consider the lifecycle of this bag because when you buy a luxury product in France, you want that it lasts. It is the case for the Birkin bag. It matches perfectly with the German need of quality.

MARKETING CONCEPT/SWOT MATRIX

PRODUCT: The product is coherent with the target culture. German people are not going to be hos<le toward Hermes’ bag. ²  Public meaning: Having a Birkin means that you are able to get one

(you have enough money). It is a symbol of success: Good work => Good situa<on => enough money to get a Birkin. It makes you enter in a social group: “bourgeoisie”

²  Private meaning: Achievement. Most people buy a Birkin aper many years of reflec<on and when they are able to get one (have earned enough money). “I will get a Birkin when I will have a good job”. You are proud of being able to buy one by your own means.

²  There is no problem to sell a Birkin bag regarding the German laws and regula;on. They are very close to French one in this field. The only thing that could be a drag is to sell for crocodile but it is not forbidden in Germany.

²  Country of origin percep;on: France in known for its luxury brands (Louis Vui`on, Chanel, Hermès...) and its know-‐how. France is a model regarding fashion. So Germans interested in fashion will be more willing to buy a French luxury/expensive bag than an expensive bag coming from China. They know that it is a good investment.

²  The brand name, Hermès of course have to stay the same because it is why people buy such expensive bag. Hermès is interna<onally known and they also buy Birkin bag for the image of the brand (not only for the quality and the price).

PRICE: The price doesn’t change between the countries. It is a fixed price. It is a why people buy Hermès: to differen<ate them from the others, because they know that most of people will not be able to afford one. The price of luxury items never have to change in func<on of the targeted market. It is one of the characteris<cs that make an item luxury. So, for this bag, the price depends on the materials: it could go from 20 000$ to 100 000$.

MARKETING CONCEPT/SWOT MATRIX

PLACE: It is the same as in France. If you want a Birkin you can get one only in the Hermès’ stores or corners (like KaDeWe in Berlin). Luxury items are never sold by resellers because people that buy such expensive bags also buy it for the service that goes with. Besides, Hermès has its own iden<ty that it wants to keep and which goes with the brand image. Not having resellers is a way to control how they sell the Hermès products. In Germany we can find a Hermès’ store in several ci<es: Kampen Sylt, Hamburg, Berlin, Hanover, Bielefeld, Dusseldorf, Kohl, Dortmund, Frankfurt in Mane, Nuremberg, Baden Baden, Munich and Stu`gart.

PROMOTION: Hermès is not used to do adver<sing (only for fragrances). Its name only is sufficient to make con<nue the brand. At the contrary, the French company uses icons or Key Opinion Leaders that you can iden<fy to. For example, in Google when you type ‘Birkin bag Hermès’ you mostly find pictures of celebri<es wearing this bag.

“I wanted to own a Hermès Constance bag, and when I signed with Calvin Klein, I

decided this was the time that I could afford it. I truly broke a sweat when I paid for it.”

Diane Kruger, Germano-American actress and model

CONCLUSION:

The Birkin is an iconic and <meless bag and even a must-‐have in the luxury market. Also, it is a typical French product. Introducing it in a new market such as Germany, which has its own culture, do not have to change the way of selling it. As we showed before, the luxury German market is quiet similar than the French one. Indeed, German culture has some specifies but these ones match with the purchase of a Birkin bag.

IS THE BIRKIN BAG CONGRUENT WITH THE GERMAN CULTURE?

Obviously, yes.

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