Galeries Lafayette 2013

Abstract

The purpose of this case is to analyze Galeries Lafayette’s expansion strategy in Asia. Indeed last year the Group chose to open two stores in Beijing and Jakarta. The department store is the leader in the French market. The positioning as accessible and fashion retailer attracts French people and tourists. Abroad, the brand experienced several failures during the 80’s and 90’s. The shops in China, Singapore and in the US were closed a few years after their openings due to a lack of profitability. Despite these mistakes, the new executive committee wants to keep expanding the brand around the world. After a succession of store openings in Berlin, Casablanca and Dubai, Galeries Lafayette chose to settle in Asia with a Franchise store in Jakarta and a Joint-Venture in Beijing. The analysis of these markets highlights differences on trends, taste, needs and culture. In order to adapt to Asian markets without diluting the branding, the retailer had to choose carefully when it came to ownership strategy, marketing mix and size and composition of its stores. The aim of this case is to identify the strategy Galeries Lafayette adopted to integrate the Asian market and to discuss its sustainability and relevance. This case study focuses on the marketing strategy and do not deal with supply chain or financial issues

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