MSC2 Brand Management Workshop Janvier

MSC2
WORKSHO
P JANVIER
ISG BRAND MANAGEMENT 2022
• Les difficultés rencontrées dans
la gestion de la principale filiale
de BACARRAT et les solutions
La gestion d’une et orientations possibles à
prendre en compte.
filiale d’une grande
marque de Luxe:
BACCARAT
Histoire de la
marque
• La légende de BACARRAT.
• Le monde de BACCARAT
Votre travail de
recherche sur la
marque
BACARRAT
• Vous avez 3 heures afin de découvrir la maison BACCARAT et en faire une

synthèse. Aller bien entendu sur le site de la marque.
• Sur le plan économique après avoir eu une période difficile, tous les voyants
sont au vert.
• https://infodujour.fr/business/des-entreprises/45170-la-cristallerie-de-bacca
rat-change-de-main
• https://journalduluxe.fr/fr/lifestyle/baccarat-ventes-premier-semestre-2021
Votre • Présentation de groupe
synthèse • En groupes 10 minutes

• Vous avez ensuite 2 à 3 heures pour lire le dossier et bien intégrer les
différents points de celui-ci, dont les annexes qui ont leur importance
en matière d’augmentation de prix
• Fin de la première journée
• Vous êtes des pôles de conseil pour la filiale
japonaise, vous êtes essentiellement en observation
RENTRONS et en tant qu’auditeurs juniors spécialisés en BRAND

MANAGEMENT , vous avez pour mission de décider
quels les principaux enjeux stratégiques de la filiale et
DANS LE VIF quelles sont les orientations à prendre en compte.
DU SUJET • Vous aurez donc à disposition les grands axes et

orientations réalisés par le président de la filiale avec
un état des lieux détaillé ainsi que les problèmes
rencontrés.
La situation à date: Prévisions 2021 = TVB (Environ 180/190 M€)
et EbitDa en progression
• Prévisions de CA raisonnables compte d’un CA mi parcours de 86,6M€ et

d’un résultat très en croissance.
• Nous allons nous intéresser à la gestion de la principale filiale de la marque
qui a été indispensable au redressement de celle-ci.
• TOUT EST STRICTEMENT CONFIDENTIEL ET AUCUN DOCUMENT NE

PEUVENT ÊTRE UTILISÉS A D’AUTRES FINS QUE LA STRICTE UTILISATION
LORS DE CE MODULE.
Japan Market : Baccarat Pacific K.K.
Business Overview
September 27th, 2021
Participants
• Tor Investment Management: Mr. Bryant Stone & Mr. Hank Mancuso.
• Sammasan Capital: Mr. Stephen Ezekiel, Mr. Erwan Stervinou & Mr. Rahul Mathur.
• Baccarat SA: Hervé Martin (CEO) & Rémi Grosjean (General Director).
• Baccarat Pacific K.K.: Yoshikazu Yann Gahier (President & CEO) & Hiroyo Tomita (General Manager for HR, Finance and Operations).
September 27th, 2021

| AGENDA
• Introduction.
• COVID-19 status in Japan...................................................................................................................3
• The organization chart of Baccarat Pacific ........................................................................................7
• Review of distribution by channel and region...................................................................................9
• Brand positioning, image & key market specificities.......................................................................26
• Commercial performance over a few years and an L.E 2021..........................................................33
• Analysis of the profitability of our activities in Japan / Operating account.....................................83
• SWOT analysis: strengths-weaknesses-opportunities…………………………….......................................85
• 2022 Perspectives, key issues & strategy……………………………………………….......................................90
• Annex 1 (Tapis Tumbler Analysis)……………………………..….…………………………….......................................96
• Annex 2 (Latest newspaper advertisement creatives)………………………………………..................................100
• Annex 3 (Reasons of Baccarat’s success in Japan)………………………………………………….………...............................106
1
1
JAPAN COVID-19 SITUATION
1
2
| COVID-19 situation: WORLDWIDE
232,595,152 cases & 4,761,798 deaths.
Number of deaths by country

1st US 706,317
2nd Brazil 594,484
3rd India 447,225
4th Mexico 275,446
5th Russia 203,900
6th Peru 199,228
7th 141,467
8th Indonesia 136,168
9th U 130,697
K
10th 126,145
Italy
116,463
1
… 17,453
2th Colombia
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000
39th France
Japan
As of September 27, 2021
1
3
| COVID-19 situation: JAPAN
JAPAN: 1,692,387 cases & 17,453 deaths.
 Tokyo: 374,529cases & 2,872 deaths.
 Osaka: 198,469 cases & 2,947 deaths.
 Nagoya: 105,044 cases & 1,127deaths.
 Fukuoka: 73,752 cases & 607 deaths.
 Sapporo: 60,122 cases & 1,466 deaths.
Outbreak Map Daily Confirmed Cases

▉ 1-49 cases ▉ 50-99 cases ▉ 100-499 cases ▉ 500-999 cases ▉ 1000+
cases
Wave 5
Wave 3 Wave 4
Wave 2
Wave 1
As of September 27, 2021
1
4
| COVID-19 situation: JAPAN
• Tokyo confirmed 299 new cases of COVID-19 on Sunday, down 266 from a week earlier… standing
below 1,000 for the 11th straight day.
• The central government is leaning toward at least partially lifting the COVID-19 state of emergency
covering 19 prefectures, including Tokyo, at the end of the month [September 30] as scheduled.
• Japan is making final preparations to shorten the period of quarantine for people fully inoculated
against COVID-19 from 14 to 10 days and allow them to self-isolate at home.
• Japanese population who received two shots of COVID-19 vaccine just recently reached 50%.
Japan Times (Sunday, September 26)
1
5
BACCARAT PACIFIC K.K
Organization Chart
1
6
| Organization Chart – Baccarat Pacific K.K
As of September 1,
2021
1
7
BPK GENERAL INFORMATION
1
8
BACCARAT PACIFIC K.K.
Founded in 1984 年
Subsidiary of Baccarat S.A (100%)
Baccarat Shops
・ Direct shops: 4 shops

（ Marunouchi ・ Roppongi ・ Nagoya ・
Umeda ）
・ In shops with CI: 35 shops

• Total 39 shops
・ 3 B bars
（ Marunouchi ・ Roppongi ・ Umeda ）
Market No.13 at its foundation with 3% share.
Since 1998 BPK represents more than 30% of the world,

which makes it the number one market.
| Map of Japan Retail 2021
Retail … 4 shops
B bar … 3 bars
IN-shop … 35 shops
Hokkaido
Osaka 8.8 AREA Total : 39 shops + 3 B bars
m 5.6m
Umeda + B bar
Da ima ru
B M a rui Ima i
Shinsa iba shi 営業第二
Ha nkyu Umeda Kyot
oaka shima ya
T
2.7
m
AREA A
Taka shima ya Osa ka 営業第一
Kintetsu Kyoto Mitsukoshi
Sendai Saitama 7.1m
Miyagi 2.4m
Iseta n Ura wa
Hyogo 5.6
m
Da ima ru Niigata 2.4 Tokyo 12.6
m m
Kobe Iseta n Marunouc hi + B
Niiga ta bar
Roppongi + B
AREA C Okayama 2.0
m bar Iseta n
営業第三 Tenmaya Shinjuku Seibu
Ikebukuro
Hiroshima 2.9 Seibu Shibuya
m
Fukuya Mitsukoshi Nihonbashi
Sogo Taka shima ya
Hiroshima Nihonbashi
Chiba 6.1 Taka shima ya
Fukuoka 5.0 Sogo m Tama ga wa
Iwataya m
C hiba Taka shima ya Shinjuku
Shizuok 3.8
Izutsuy m Matsuya Ginza
a
Entetsu
a Oita Kanagawa Tobu 8.8
Ikebukuro
Tokiwa Takashimaya m
Aichi 7.3m
Ehim 1.5
Nagoya Yokohama
1.8 m
Kumamot e
Iyotetsu Mitsukoshi Nagoya Sogo Yokohama
m
o Taka shima
Kagawaya 1.0 Matsuzakaya Nagoya ★ … Retail
Tsuruya Mitsukoshi m Unmarked … IN-shops
JR Na goya
Taka matsu Area A1
Taka shima ya Area A2
m … Popula tion
| Distribution channel Description: BPK Total
RETAIL
- DOS: Directly operated Shops managed only by BPK sales staffs.
- SIS: Shops with Corporate Identity. Could be concession (stock is owned be BPK) or
Purchase shop (stock is owned by DS).
- Baccarat staffs only
- Mix of Baccarat staffs and DS staffs
- DS staffs only
- B bars: Directly operated bars managed only by BPK bartenders.
WHOLESALE
- Mostly corners, located in the “Table Art Floor”, with no Corporate Identity or very
limited one. Directly managed by DS staffs.
- Depending on space, displayed numbers of products can vary from Only Tapis to
maximum 30 skus.
21
| Distribution channel Description: Retail Shops
Type Store Type Store
Retail Tokyo Marunouchi Purchase Takashimaya Nihonbashi Baccarat staffs only

Total: 4 Tokyo Roppongi Total: 9 Mitsukoshi Nihonbashi Total: 26 shops
Nagoya Midland Takashimaya Osaka Mix of Baccarat staffs and DS staffs
Osaka Umeda Takashimaya Yokohama Total: 7 shops
Concession Fukuoka Iwataya SIS Takashimaya Kyoto DS staffs only
Total: 20 Tokyo Isetan Shinjuku SIS Sapporo Marui Imai Total: 6 shops
Osaka Hankyu Umeda SIS Takashimaya Tamagawa
Osaka Daimaru Shinsaibashi SIS Isetan Urawa
Tokyo Seibu Ikebukuro SIS Nagoya Mitsukoshi
Kumamoto Tsuruya SIS Purchase Isetan Niigata
Tokyo Matsuya Ginza SIS (No BPK Staff) Kintetsu Abeno Harukas
Nagoya Matsuzakaya SIS Total: 6 Entetsu
Yokohama Sogo SIS Mitsukoshi Takamatsu
Nagoya Takashimaya JR SIS Takashimaya Iyotetsu
Kobe Daimaru SIS Tokiwa
Tokyo Takashimaya Shinjuku SIS B bars B bar Marunouchi
Fukuoka Izutsuya SIS Total: 3 B bar Roppongi
Hiroshima Sogo SIS B bar Umeda
Chiba Sogo SIS
Sendai Mitsukoshi SIS
Tokyo Tobu Ikebukuro SIS
Tokyo Seibu Shibuya SIS
Okayama Tenmaya Honten SIS
Hiroshima Hatchobori Fukuya SIS
22
| Distribution channel Description: Retail Shops
RETAIL Area A1 Area B
Area Store Sell-Out (M ￥ ) Area Store Sell-Out (M ￥ ) Area Store Sell-Out (M ￥ )
Tokyo Tokyo Marunouchi 408 Hokkaido Sapporo Marui Imai 99 Nagoya Nagoya Matsuzakaya SIS 148
Tokyo Roppongi 161 Tokyo Tokyo Isetan Shinjuku SIS 295 Nagoya Takashimaya JR SIS 124
Nagoya Nagoya Midland 93 Takashimaya Nihonbashi 203 Nagoya Mitsukoshi 57

Osaka Osaka Hankyu Umeda SIS 273
Osaka Osaka Umeda 92 Mitsukoshi Nihonbashi 200
Osaka Daimaru Shinsaibashi SIS 182
Takashimaya Yokohama 158
Total: 754M ￥
Takashimaya Osaka 197
(5,891K€) Takashimaya Tamagawa 92
Takashimaya Kyoto 121
Isetan Urawa 72
Kobe Daimaru SIS 117
Total: 1,119M ￥ Chugoku Okayama Tenmaya Honten SIS 60
(8,742K€)
Total: 1,279M ￥
(9,992K€)
Area A2
Tohoku Sendai Mitsukoshi SIS 94
Area C
Tokyo Tokyo Seibu Ikebukuro SIS 172
Hiroshima Hiroshima Sogo SIS 99
Tokyo Matsuya Ginza SIS 154
Hiroshima Hatchobori Fukuya SIS 59
Yokohama Sogo SIS 145
Fukuoka Fukuoka Iwataya SIS 364
Tokyo Takashimaya Shinjuku SIS 116
Fukuoka Izutsuya SIS 105
Chiba Sogo SIS 97
Kumamoto Kumamoto Tsuruya SIS 171
Tokyo Tobu Ikebukuro SIS 93
Total: 799M ￥
Tokyo Seibu Shibuya SIS 80
(6,242K€)
Total: 950M ￥
(7,422K€)
As of December 31, 2019
23
| Distribution channel Description : DOS
Marunouchi, Tokyo Roppongi, Tokyo Midland, Nagoya
Total Number of DOS: 4

Concept Old Black New Silver
In-shop 3 1
Umeda, Osaka
24
16
Marunouchi Shop, Tokyo
| Distribution channel Description : SIS
Old Black Silver
Fukuya, Hiroshima Hankyu Umeda, Osaka Takashimaya Osaka, Osaka
Starck New
Total number of SIS: 35

Concept Old Black Silver
In-shop 3 17 8
Starck New
1 6
Shinjuku Takashimaya, Tokyo Daimaru Shinsaibashi, Osaka

Latest Concept Shop
Daimaru Shinsaibashi, Osaka
27
Latest Concept Shop
Daimaru Shinsaibashi, Osaka
28
| Distribution channel Description: SIS Location
Luxury Floor Life Style Floor

Area A1 Sapporo Marui Imai Area A1 Tokyo Isetan Shinjuku SIS
Isetan Urawa Mitsukoshi Nihonbashi
Area A2 Tokyo Seibu Ikebukuro SIS Takashimaya Yokohama
Tokyo Matsuya Ginza SIS Takashimaya Tamagawa
Yokohama Sogo SIS Area A2 Tokyo Takashimaya Shinjuku SIS
Tokyo Takashimaya Shinjuku SIS Area B Osaka Hankyu Umeda SIS
Chiba Sogo SIS Takashimaya Osaka
Sendai Mitsukoshi SIS Nagoya Matsuzakaya SIS
Tokyo Tobu Ikebukuro SIS Nagoya Takashimaya JR SIS
Tokyo Seibu Shibuya SIS Takashimaya Kyoto
Area B Osaka Daimaru Shinsaibashi SIS Kobe Daimaru SIS
Area C Fukuoka Iwataya SIS Okayama Tenmaya Honten SIS
Kumamoto Tsuruya SIS Nagoya Mitsukoshi
Hiroshima Sogo SIS Area C Hiroshima Hatchobori Fukuya SIS
Total: 14 Fukuoka Izutsuya SIS
Total: 15
| Distribution channel Description : Wholesale
Takashimaya, Omiya Tokyu, Nagano

Wako, Ginza
Total Number of Corners: 46

Type of Corners
Tapis tumblers mainly 12
(or with CB, GJ)
Basic (approx. 5-10 skus) 10

Mitsukoshi, Ginza Focus shops (up to 30 skus) 24
| Distribution channel Description : B bars
B bar Marunouchi, Tokyo B bar Roppongi, Tokyo B bar Umeda, Osaka
Total Number of Bars: 3

B bar Movie: https://www.baccarat.jp/ja/bbar/
| BPK Sales by Distribution Channel
2019 2020 2021

Jan-Aug
Excl. Bar, Staff-sales, Destocking

• Retail business has been steadily representing 80% of total BPK share.
• EC share has grown fast since 2019 to reach 7% of total business.
| BPK Sales by Product category
2021
2019 2020
Jan-Aug
Excl. Bar, Staff-sales, Destocking
• HOME share kept growing since 2019 to reach 90% of share due to COVID’s impact on consumer spending habits.
 + gifting (less events & weddings), rise of home consumption, + prestige products sold, strong local mktg activation & stimulation.
• BIJOUX continuous drop due to lack of needs.
• LIGHTING shows resilience despite difficulty to meet clients, thanks to high leverage of Crystal lounge (Lighting showroom in BPK
office)
| BPK Sales History since 2013
Unit : M ￥
Mercedes Benz BPK Total Sales 3 SIS WS  concession

Price repositioning strategy
B2B Decanter EC sales contribution
Doraemon Restarted newspaper Adv
250th Imaemon
Anniversary Year Desctocking Zinzin star 3 SIS WS  concession COVID-19 (all shops
(Stock buyback) closed >2months)
Stop newspaper Adv Kose B2B
6,108 6,308 6,210
6,013 5,985 5,917
5,711 5,756 5,675
2013 2014 2015 2016 2017 2018 2019 2020 2021 LE
Except from the peak sales in 2015 mainly thanks to Mercedes Benz B2B order (35,000 glasses),
sales have been rather steady since 2014 around 6 Billion yen.
BRAND POSITIONING, IMAGE &
KEY MARKET SPECIFICITIES
35
| Baccarat Image in Japan
Bain international study 2021

| Competitors
Luxury
SAVOIR-FAIRE Fashion
Non luxury
| Baccarat’s major specificities in Japan
• Gift
- Originally >85% of sales was for Gifting
- Ratio is changing since 2020’s Covid Crisis with rise of personal consumption.
• Distribution
- Retail focused brand in Japan.
- High dependency on Department stores, as almost 80 % of our business is made through them
(Retail DS + Wholesale DS)
• Clients specificity
- Most of Baccarat’s core clients are Connoisseurs, with high loyalty.
| Major specific points in Japanese market - Gift
• Near 70% of Home total sales is for the gift in Japan (used to be 80-90% before COVID).
• Price: Psychological “just-price” is a key factor for gifting.
 traditionally “fixed budget” @ ¥5000 (39€) / ¥10,000 (78€) / ¥20,000 (155€).
• High-end brand image and perceived value are key determining factors for gifts.
• Respect local gift customs-culture: Lucky motifs & anniversary are key motivation for gifts.
• Brochure & catalogues: Paper brochure as Gift book remains a key tool for choosing gifts.
• Gift X1: Individual gift X1 glass or tumbler is widely popular.
• Gift Package in Red & white as a symbol of happiness in Japan (reminds Japanese Flag).
| Major specific points in Japanese market - Department Stores
• Gaisho ： Specific Sales force (like personal shoppers) in each department

store for VIPs. Most of legendary guests are connected with Gaisho.
• Events: Events for Gaisho customers are required = Baccarat Fairs.
• Prestige products: Special prestige products such as limited edition or
exclusive items are required for Gaisho customers.
• Novelties: Essential in such mature and competitive market.
• Seasonality: Activations must follow 4 seasons, in phase with Japanese
calendar & department stores’ plans .
| Major specific points in Japanese market - Connoisseur Clients
• Connoisseur clients require high quality in products as well as high-end brand image.
• Hand-made craftsmanship is highly valued and appreciated by Japanese.
• “Made in Baccarat” (made in France) is a key message to sustain brand’s credibility.
• Products fitting both with Japanese lifestyle and culture have been well accepted, as
well as French Art de Vivre.
• Smaller size such as Glass No.3 is major demand for Japanese.
2020 SALES REVIEW
42
| 2020 World Market Share: BPK within Total Group Sales (excl. Decanter)
2019 2020
MEAI MEAI
9%
ASIA 11%
13% JAPAN ASIA
JAPAN
35%
11% 37%
AMERICAS AMERICAS
20% 20%
EUROPE EUROPE
23% 21%
• Japan has been representing more than 30% of market share for more than 20 years.
• 2020 showed a peak in Japan’s share at 37%, excluding decanter.
| 2020 SALES RESULTS
TOTAL SALES: 5,675 M yen (-4.1% vs 2019)

- 4.1%
-242M
5,917 5,675
2019 2020
• Japan showed exceptional resilience, although all Luxury brands decreased sales sharply by 2 digits vs 2019 (except Hermes at -4%).
• Excluding B bars, BPK performed at -2% vs 2019.
| 2020 Sales
1000
+ 4.5% - 43% +21%
+ 11%
+ 31 M - 667M + 393M
900 875
COVID + Shops
& B bars closed +34%
800
+32% 705
700
-15% 622
-15%
600 -5% -2%
491 515
498 478
500 +3% +13%
+6%
346 397
400 369
-55%
300
-65%
216
200 168
100
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
20 BGT 19 SALES 20 SALES
• Since re-opening of shops in June, BPK showed much faster recovery than most of the brands.
• -15% in Sept. is compared to an exceptional month in Sept 2019 due to “purchase rush” anticipating on the VAT increase (+2%) in
October 2019.. 36
| 2020 - KEY SUCCESS FACTORS
46
| 35 years of legacy in Japan and loyal customers
Baccarat’s solid, trustful image in Japan and deep appreciation to its loyal customers’ support.
| Key Accomplishments
Inventory / Supply Chain ANTI- COVID Actions
• Telework
• Secured inventory • Safety Protocol at shops & Office
• Secured flights • Secured Salaries
Fixed Cost Reduction Financial Forecast
• Less overtime
• Less Business trips/meetings • Monthly PL forecast
• Reduced expenses • Weekly cash flow forecast
• Subventions • Collaboration with banks
| Newspaper Ads. in Nikkei maintained
BRAVA 2020 TIARA 2020

March November
| Home consumption stimulation through Digital campaign
Delightful Home Drinking

It is important to enjoy fully the special
occasions which happen on special days, but
we believe that what makes life even more
precious, is to experience delightful moments
in our everyday normal life.
Whether it’s water, beer or wine.

Simply using a different glass can change the
taste of our beverage.
It can uplift our mood. Make our day better.
If you feel like drinking at home, pour it in a

Baccarat Glass.
• Leveraged and promoted Home consumption through creative media campaign starting very early
in April-May and then again in Nov-Dec.
 Strengthen our positioning as “The must have brand to spend quality time at home”
 Gained many new and young customers.
| Home consumption stimulation through Digital campaign
BRAVA 2020 (Mar.- Ienomi Kira Kira (May- Okaeri Bac c arat (Nov-
Apr.) June) Dec)
| E COMMERCE 2020 RESULTS
349,600
2.7 M €
x
3
+194%
118,800
0.93 M €
2019 ACT 2020 ACT *Unit:k

￥
Outstanding performance of EC sales, leveraging COVID situation (shops closed > 2 months)
and thanks to thorough follow up and improvements.
1. Increased traffic
Traffic  Main Fact
1,800
1,650k
1,600 +83%  COVID-
(+750k) 19
1,400
 Ads Campaign
1,200
1,000 900k
800
 Paid Search
600
400
200  Newspaper Ads

0
201 2020
9 2019 2020
53
2. Increased nbr of
transaction
 Main Facts
Nbr25of Transaction- YTD Monthly Avg.
+1,080 transactions  COVID-19 impact
/month
 Free-shipping campaign
20 19,200
 3 Newly implemented functions
15 +206%
(x3)
10
 Improved Activation Plan
6,200
 Enhance User Flow
5
 Creation of Special Landing Page
201 2020
54
9
3. Improved service & increased CVR

- Transaction
Timeslot Message Card
Dateslot
*2019 *2020 Nov- *2019
Oct- Nov-
Dateslot
27% Message
Timeslot
Card
48%
65%
(+12point
vsPY)
│ HOME 2020 - WHAT WORKED
Tapis HARUMI 2020 Price repositioning Tableware
Novelties success
(Swing, Jaime Hayon, Virgil Abloh)
KOSE DECORTE 50th Anniversary
1,130 pieces Special edition
56
│ Special MOF Japan Projects
2016 - 2020
M¥ Sales of Launch
120
Year 104
100
78
80
66
61
60 54
40
20
0
Petit Palais Imaemon Haute Couture 1 Haute Couture 2 Harumi
2016 2018 2020

2017 2019
Harumi collection sales was remarkable, exceeding the 2 previous HC collection despite the difficult COVID19 year,
with many major sales events cancelled.
| Outstanding sales recovery during 2nd semester
Jun – Dec sales

+11% vs PY!
Total No. of Events: 38
• Restarted strong organizing or participating in 38 VIP sales events in 6 months.

• Good catch up of Chandelier sales during 2nd semester.
| VMD: Inspiring and creative
Beautiful and Inspiring VMD all year long

Crystal Lounge (Lighting Showroom) https://www.baccarat.jp/ja/Lighting 51
BPK Office, Tokyo

| BPK Team dedication and hard work
Office
Team
Direct
SIS
Shops
B bars Corporate
WS
• High motivation and dedication of BPK employees, especially at shops and B bars on day to day business.
• All salaries were fully maintained, despite 2 months’ shop closure due to Covid-19.
61
2021 SALES STATUS
January – August
62
| BPK 2021 Sales vs 2019 (Jan-Aug)
Newspaper
Adv
State of emergency State of emergency
+ 403M
+19%
+11%
3,995
+8% 3,592 3,612

+8% +11%
+10%
+36%
2,963
-19% +22% +34%
+15%
2019 2020 2021 2021 BGT

Unit :
￥M
Reached 3,024M in S1 (+10% vs 2019) although Japan was under State of Emergency during 3/4 of the time.
63
| Jan-Aug BPK Sales by channel - 2021 vs 2019
+26%
B Fair
cancelled
+8%
+9%
-9%
-2%
+30%
Bar closed +308%
-92%
+64%
+31%
As of September 1st, 2021
64
| 2021 SOE Positive and negative factors
NEGATIVE Factors
 2/3 of S1 under SOE  Overall lower psychological mood of consumers.
 Many shops closed during weekends and operating with limited hours.
 Lower traffic in Shop and retail with -5% ～ -40% in average depending on period.
 Much lower shop frequentation of >60 wealthy Loyal customers over fear of Covid-19.
 Many DS sales events were cancelled and couldn’t be recovered.
 Difficult to use fully Crystal Lounge (lighting showroom).
 Out of stock situation for key selling products (Maneki, Highball, CB, Nomad Lamp..)
 No new bijoux collection and consumers showed little interest.
 B bar closed = Bartenders not working for a very long period + loss of > 1Million Euro sales vs 2019.
65
| 2021 SOE Positive and negative factors
POSITIVE Factors
 Prolongation of SOE reinforces and install the “enjoy life at home” in consumers’ mind for long term.
 Excellent results of creative media campaign “Okaeri Baccarat” (Newspaper Ad & Digital), focused on both gifting and
Home consumption stimulation → Gained many new and young customers.
 Higher conversion rate in shops → consumers come to buy.
 Strong sales of drinking category, especially TAPIS.
 Very high commitment, motivation and performance from all BPK office and shop staffs.
 High performance of EC sales, leveraged further through digital campaign and website improvements.
 High sales of price repositioning products (3 waves) focused on Home products.

 Success of new collection “ At home with nature” focused “Jaime Collection”.
 Significant growth of DS’s EC website can be observed through WS.
 Gained B2B business due to events cancellations.
 Resellers (esp. Area B) keep buying high amount of products (esp. Tapis).
 Company expenses are lower thanks to less overtime and daily team’s efforts.
66
│ 2021 Tapis Total Sales forecast
305,187 pcs * forecast

25 % of total BPK business
+ 39,295 pcs
(+14.8% vs 2020)
2019 2020 2021 LE
67
│ 2021 Tapis 5 years Sales History
Price increase
+16.2% @ ￥ 6,50
0
@ ￥ 6,30
0
@ ￥ 6,50
0 @ ￥ 6,50 @ ￥ 6,50
@ ￥ 6,50 0 0
0 +14.8%
+1.4%
2016 2017 2018 2019 2020 2021 LE
68
│ Home Jan-August 2021
2019 2020 2021 vs vs LY

‘19
(M¥) (M¥ (M¥ (M¥ (M¥)
) ) )
Aug 286 354 393 +107 +39
Jan – Aug 2,958 2,592 3,610 +652 +1,018
• HOME category products increased YTD by +39% in value vs LY, and +22% vs ‘19
69
│ Home Jan-August 2021
Sales in all key categories were positive except slightly for Prestige vs ‘19.
Home Focus Home Others

Total Total
70
│ Home Jan-August 2021: Analysis Big orders vs Base volume
M¥
Both big orders and base volume significantly increased in 2021 both vs ‘19 and vs ‘20.
71
| Bijoux Sales Results
Bijoux Sales 2019 - 2021

Unit: K¥
• COVID Impact
-42 ％ • Less Baccarat Fairs where we
usually sell well.
• No new collections.
-46 ％
+7%
72
| Lighting Sales Results
Lighting Sales 2019 - 2021

Unit: K¥
-15%
-41 ％
+45%
73
| Lighting Sales Results
LIGHTING VS Y2019 Unit: K¥ LIGHTING VS Y2020 Unit: K¥

PRODUCT Y19 Y21 DIF vs % PRODUCT Y20 Y21 DIF vs %
Chandelier 96,344 83,539 -12,805 -13% Chandelier 42,017 83,539 41,522 99%
MN ceiling 16,630 17,850 1,220 7% MN ceiling 6,254 17,850 11,596 185%
Pendant 19,111 19,139 28 0% Pendant 11,809 19,139 7,329 62%
NOMAD 18,690 18,690 NOMAD 22,245 18,690 -3,555 -16%
ＢＪＶ 30,090 12,527 -17,563 -58% ＢＪＶ 13,826 12,527 -1,298 -9%
Lamp 28,716 19,330 -9,386 -33% Lamp 18,551 19,330 779 4%
Wall 14,228 10,585 -3,643 -26% Wall 9,486 10,585 1,099 12%
Jalume 6,203 1,560 -4,643 -75% Jalume 1,440 1,560 120 8%
Other 13,537 9,030 -4,507 -33% Other 6,785 9,030 2,245 33%
TOTAL 224,859 192,250 -32,609 -15% TOTAL 132,413 192,250 59,837 45%
Small lightings sales like BJV, table lamps and Jalume • Chandeliers, MN ceiling and pendants are selling well.
are low compared to Y2019. • Loss due to nomad shortage will be 20 million from Sep to Dec.
74
| 2021 S2 STRATEGY & OBJECTIVES
STRATEGY
To leverage the new “Quality Lifestyle at Home” trend and strengthen further
our leader position as the brand of choice for luxury Gifting.
OBJECTIVES
 Promote further Home consumption as Baccarat to be enjoyed in everyday life.
 Maintain strong growth of TIARA, and success of CRYSTA 2022 launch through Media campaign.
 Keep stimulating EC sales by improving customer experience and services.
→ Invest further in Digital promotion and keep strong presence in Social Media.
 Target same sales level of Lighting as S2 2020.
 Success of new products (seasonals, Jojo, Pokemon etc..) and Harcourt 180th
 Limit damages on Bijoux (aim for 2019 level).
 Increase Gaisho VIP sales (Haute Couture 3, Harumi, prestige products..).
 Secure a maximum of B2B orders.
 Make tight inventory control to limit out of stock situation & sell what we have in stock.
 CRM successful installment → SALESFORCE
 Keep anti-covid protocol
75
| RISKS or OPPORTUNITIES for the last Trimester of the year
What to Expect?
RISKS (if situation does not improve)

 New wave of Covid hits and SOE is prolonged after October
 3N1esw.t cases of Covid in BPK team.
 Traffic in shops will decrease.
 B bars stay closed.
 Events will be cancelled or delayed again.
 Delivery delays  Out of Stock situation for key products.
OPPORTUNITIES (if situation improves)

 Vaccinated elder people (loyal clients) come back progressively.
 High tickets items will be selling well towards Christmas period.
 Physical events will fully restart.
 QOL and Home consumption trend keeps growing.
 EC keeps growing thanks to LINE and further digital stimulation.
 B bars will restart.
76
│ To manage well B Fairs and upcoming VIP events (> 20)
September October
Tobu Ikebukuro Tobi-kai JR Nagoya Bara-kai
Takashimaya Yokohama Koka-ten Daimaru Shinsaibashi Imperial
Mitsukoshi Nihombashi Ippin-kai November
Matsuya Shobi-kai Daimaru Kobe Kihin-kai
Takashimaya Geihin-kai Takashimaya West Japan
Fukuya Omotenashi-kai 190th Anniversary
Marui Imai Nagatsuki-kai Event
Seibu Ikebukuro Seishu-kai Tsuruya Baccarat Fair
Iwataya Ippin-kai MI Showroom Event
Isetan Shinjuku Tansei-kai Takashimaya Showroom Event

December
Takashimaya Geihin-kai, September 12, 2021
Mitsukoshi Sendai Premium Customer
Seibu Shibuya RPS
Sogo Chiba Jissui-kai (TBC)
Sogo Chiba Baccarat Collection
Seibu Ikebukuro Baccarat Fair
Total: 22 events
77
| Q4 KEY ACTIVATIONS - Focus
CRYSTA Newspaper Advertisement Harcourt 180th anniversary highlight

(Nikkei & Yomiuri)
78
| Q4 KEY ACTIVATIONS - Focus
HARUMI collection VASES highlight
79
| Q4 KEY ACTIVATIONS – New Products
Collaboration products with Manga artist “Hirohiko ARAKI”, creator of best seller “Jojo’s bizarre adventure”
80
Pre-launch of POKEMON collection in Marunouchi Flagship.
81
Focus on Prestige and high price items
82
| Q4 KEY ACTIVATIONS - EC
 Strategy: To leverage the current ‘Enjoy life at home’ mood and keep the sales at the high level.
Digital Promotion New Service & Site improvement

Traffi C VR
- Digital campaign “Okaeri Baccarat vol.2” – get - Create special landing page of Crysta linked with
c new customers by acquisition campaign and newspaper ads.
potential customers by retargeting campaign. - Put new visuals of “Okaeri Baccarat” campaign
on
- Increase new friends on LINE official account by toppage and create special landing page.
CPF ads.
- Change the toppage picture frequently following to
- Post on LINE and Facebook and send newsletter local activation plan.
once a week to increase engagement with - Add new visuals on some product pages of popular
customers. SKUs.
- Paid search ads in Google and Yahoo. - Search audit: Revise the search result of keywords
best 1-100.
- Fix and improve site functions.
Customer Satisfaction Improve workflow

- Offer the downloadable “Glass care book” and
- Prepare to introduce “e-hiden(e-slip)” to reduce
start to sell the glass cleaner.
manual work on KWE.
- Upgrade the shipping confirmation email to use
- Improve receipt flow.
it as a receipt.
83
| Q4 KEY ACTIVATIONS
250 lights chandelier will be displayed in one of Tokyo’s trendiest area during Christmas time.
84
85
2021 LE
86
| 2021 LE vs
2019
State of Emergency State of emergency State of Emergency
partially left (Scheduled to last until Sep 30th )
+19% +1%
+8% -19% +8%

+11% +9%
+8%
+36%
-19% +22%
+15%
21 LE as of Sept. 21st
• Since re-opening of shops in June, BPK demonstrated strong resilience and much faster recovery than most of the brands.
• -15% in Sept. is compared to an exceptional month of Sept. in 2019 due to purchase rush to anticipate on the VAT increase
which occurred in October 2019.. 78
| 2021 LE vs 2020 &
2019 +1% vs19
-21% vs20
+0% vs19
+4% vs20
Q4 was abnormally high in 2020, which included non-recurring B2B deal.
88
| 2021
LE
+293
M 6,20
5,91 +5% 9 5,90
6 5,67 +5 0
5 +9 %
%
2019 2020 2021 LE 2021

Budget was originally set to come back to 2019’s pre-COVID-19 sales level. BGT Unit :
￥M
89
| 2021
LE
BPK Total 2021 Budget vs BGT 2020 vs 20 2019 vs 19

(%) (%) (%)
(M ￥ ) (M ￥ ) (M ￥ ) (M ￥ )
Q1 1,556 1,382 113% 1,213 128% 1,271 122%

(+174M) (+343M) (+285M)
Q2 1,468 1,396 105% 875 168% 1,480 99%

(+72M) (+593M) (-12M)
S1 3,024 2,778 109% 2,088 145% 2,751 110%

(+246M) (+936M) (+273M)
Q3 (Fcst) 1,447 1,329 109% 1,391 104% 1,450 100%

(+118M) (+56M) (-3M)
Q4 (Fcst) 1,739 1,793 97% 2,196 79% 1,716 101%

(-54M) (-457M) (+23M)
S2 (Fcst) 3,186 3,123 102% 3,587 89% 3,166 101%

(+63M) (-401M) (+20M)
Full Year (Fcst) 6,210 5,900 105% 5,675 109% 5,917 105%
(+310M) (+535M) (+293M)
As of September 14rh, 2021
90
| 2021
LE
As of Sep 15th
91
Analysis of the profitability of our activities in
Japan / Operating account
92
| Japan P&L evolution & cost structure
SWOT
85
| BPK SWOT
- Luxury brand positioning like Hermes or Cartier. - Unbalanced product mix between Home, lighting & Bijoux.
- Strong Luxury Lifestyle image vs table art. - Only 1% market share within total luxury brands in Japan.
- Wide range of consumers, long standing trust & Loyalty. - No big hit product over the past 10 years since Maneki Neko.
- Very strong in Gifting Market, with Multi-occasional gifts. - Less real novelties year by year, which weakens brand power.
- Outstanding success of Tapis Tumbler which help spread the brand further. - Low A&P vs overall sales (4%) except 2021 (5%) while standard is 7-8%
- Excellent relationship with DS. - Weak Bijoux category due to low awareness and lack of stimulation.
- Well distributed geographically (Distribution channel in all major cities). - Weak investment in Lighting category.
- No.1 Positioning in Living Category. - Too much dependent on DS sales. Especially DS’ Gaisho and B fairs.
- High standing shops, 50% of shops in luxury floor. - Still low share of younger clientele vs core clients (40-70s).
- Business knowhow for Gaisho VIP customers (B Fairs..). - Very weak CRM.
- Staff highly professional, experienced, long time working at BPK. - Too many different shop concepts.
- No seasonality / Not weather influenced. - No Baccarat Maison (Shop + Bar + Museum) to hold own VIP events
- High local product innovations. - Hotel / Restaurants: very low presence.
- B bars success. - IT system too obsolete & weak.
- Aging workforce.
- Strong emergence of Home consumption trend “Ienomi”. - COVID’s possible negative evolution with new variants.
- - High Dependency on Tapis Tumblers.
Leverage current digital trend to bring EC sales to the next level.
- Gifting is still increasing, with higher price. - Lack of product renewal.
- Create further Japanese culture related Products / Collaboration - General Price increase now that we finally repositioned all products at the right price.
with Japanese artists. - Too much rationalization of product lines damaging variety of products.
- Increase lighting business leveraging home interior boom in - Difficulty to recruit quality staff in a very high demand market.
Japan. - Less hand-made products in Baccarat.
- Opening Maison Baccarat (with B bar) in redevelopment - Decline of DS as our main channel.
commercial district. (Ginza, Marunouchi, Nihonbashi…). Rent is - Development of home products by fashion & luxury brands.
- Low priced but high quality home & lighting product emerging in the market.
decreasing significantly due to COVID.
- New product development to fit with Aging society. - Low-price oriented, casual-oriented consumer.
- - Further development of Grey Market (currently estimated 5-10 Million euros) .
Birth and development of super rich.
- From mass consumption to selective consumption = only high - Aging of our core VIP customers.
valued products can survive. - Sustainability trend growing in Japan.
- Increase B bars awareness to generate further traffic as higher - Declining of gift demand due to declining population.
demand for high-end bars. - Strong Grey market estimated @ 10 Million €
- Resellers buying directly in our SIS. 86
- Increase presence in High end Hotels and restaurants.
- Multiple natural disaster every year (Earthquake. Flood, storm..)
| HOME SWOT
• Legitimacy of relationship with Harumi and Tea ceremony • Less novelty with less creativity of products by HQ, which
in Japan leads less brand power.
• Leader in Table Art. • Product mix sales is not healthy (Tapis share is too high in
• High brand and luxury image in Japan portfolio)
• Wide customer segment. • Most of X1 have been discontinued both in stem and bar.
• No seasonality and endless life cycle.
• Multi occasional for gift
• Legitimacy of “Made in Baccarat” with 1 ７ MOFs.
• Barware has been strong with the share of 50%.
• Tapis tumbler has been recognized as the reference of Gift
in Japan.
• Japan specific products have been well accepted.
• Local collaboration with artists.
・ Growth of E-commerce
• Difficulty in B2B decanter as Lead as material has been under pressure.
・ Development of new younger clients by Digital activation
• Possible decreasing trend of Home-use consumption after Covid-19.
・ Increasing & continuous trend of Home-use
• Less hand-made product from Baccarat would impact Legitimacy.
consumption.
• Less admiration on imported brands vs national brands.
・ Possible new creations to stimulate younger generation.
・ General market trend from mass consumption to
selective consumption = only high valued products
survive.
96
| BIJOUX SWOT
- Luxury image. - Lack of collection. We need 1 collection for SS and FW.

- Unique colour treatement. - No marketing plan before new collection launch.
- Colour variation. - Overall high price range.
- No allergy with crystal. - No millenial customers, mainly Baccarat clients.
- Little budget allocated, no advertisement campaign.
- No bijoux leaflet.
- Lack of visibility in shop.
- Modern all crystal made bijoux. - Further price increase which would disconnect price
- Prestige bijoux for VIP. with perceived value.
- New designers collaborations. - High brand selling more vs entry price bijoux.
- Japanese designer collaboration - Large decreasing trend of self-use consumption after
- Collaborations with pearls. Covid-19
- E commerce.
97
| LIGHTING SWOT
- No catalogue with new ambiance visuals.

- Leader in luxury chandeliers.
- Highly priced.
- Excellent image thanks to Ebisu 250L ceremony.
- Lack of light chandeliers.
- Wide range of collections.
- Heavy inventory.
- Crystal quality is known as the best.
- High set up costs and transport + time consuming.
- Link with Home products collections (coordination).
- High technical skills are required to be able to sell.
- Lighting Showroom (Crystal lounge)
- Too many technical issues & no after service dept.
- B2B
- Develop further WS partners.

- Develop further Small & light chandeliers and floor - High competition from other non luxury lighting.
lamps for Japanese low ceiling house. - LED lamp system is not reliable.
- More pendant lights for Japanese markets. - Accidents: fire or piece falling.
- Invest in advertising. - A big earth quake may hit the chandelier business.
- Customization.
- Japan becoming more interior conscious.
- Train Gaisho in DS.
- E-commerce
- B2B with many hotels to be developped in coming
years
98
2022 PERSPECTIVES
99
| 2022 perspectives
Negative factors Positive factors
• With SOE lifted fully, consumers’ spending • Economy will recover with GDP expected
less focused on Home Travel, ≃ 3%.
entertainment & outdoor • Re-opening of B bars.
• Out of stock situation on key skus. • DS will re-open during normal operating
• Expecting much less EC momentum due hours and traffic shall be back.
to less time spent at Home. • Physical VIP events shall restart fully.
• Matsuzakaya DS relocation. • Baccarat Fair in Iwataya DS.
• DS financially weaker than ever, risk of • Stronger approach on SNS by increasing
withdrawing staffs from shops. significantly LINE members (Japanese
• No new MOF prestige collection for Whatsapp or Wechat).
VIPs. • Fully operational CRM tool “Salesforce”
• Little information available yet on 2022’s and spread to DS.
new collections but difficult to capitalize • Bijoux sales will start to recover.
on P. Starck.
• Corporate gifts budget will decrease with
restart of events.
100
OVERAL KEY ISSUES & STRATEGY
101
| Overall Key Issues
1. Unbalanced Product mix (Home vs Lighting vs Bijoux).
2. High tapis dependency.
3. Not enough new and original products. Used to be 20% of sales vs 7% now.
4. Started to sell products (tumblers) as set (>2pcs), and stopped selling as a single unit
(tumbler), which is often out of the range for gift budget (doubled price).
5. Less development of new Bijoux, sales reduced by half peak year.
6. Low A&P overall budget to support growth.
7. Department stores’ sales and financial power decreasing year by year.
8. Aging core consumers, need to recruit further young generations.
9. Weak CRM and difficult access to Department store’s data.
10. Obsolete IT system slowing down operational processes.
102
| How will we get the growth in the coming years?
o Lighting
 Potential to grow to reach 20-25% of Japan sales like Europe.
 Cross-sell to current consumer segment who are gradually shifting toward spending more on luxury lighting, but are
not fully aware of Baccarat lighting
 Investment in A&P to increase awareness of lighting and products line-up.
o CRM
 Build cross-channel end-to-end customer database.
 Prepare tailored customer communication based on customer profile / purchase behavior to cross-sell.
 Spread CRM tool in DS.
o Channel
 Grow D2C online
 Potential to reach 10-15% of Japan sales like other luxury brands
 Purchase channel mainly for products <200EUR and younger generations  Search / brand communication channel for
premium products to reach seniors customers.
 Need further investment to increase awareness and recruit new consumers.
 Reshape of Website needed to be more locally adapted.
 Invest in enhancing the quality of retail stores / distribution:
 Store location (luxury floor at DS)
 New luxury design for crystal
 Enough space to exhibit lightings
 Experiential / superior retail store design
o Train new and younger generation of future shop managers and staffs.
o Inbound tourism.
o Maison Baccarat.
o 260th brand anniversary in 2024.
103
Thank you
104
•Une petite note destinée au Président de BACARRAT JAPON qui a parfois du mal à intégrer la vision
du Headquarter et de son CEO Hervé Martin.
•Le Japon a réalisé une performance exceptionnelle en 2020 avec -4,1% de CA alors que la marque
BACARRAT ainsi que toutes les autres marques ont réalisé des baisses plus importantes (plutôt à 2
chiffres au Japon).
•Cette note suggère simplement d’envisager la structure de CA du Japon différemment et d’essayer
d’amortir les éventuels risques de “tassement” de CA compte-tenu de la maturité du marché
Japonais.
Une première • Après une seconde lecture du dossier.
• Quels sont les faits marquants?
analyse très • A quoi BACARRAT JAPON est-il confronté?
simple • Rendus sous format PPT et 1 ou 2 groupes passent à

l’oral
La suite de cette première analyse
• La lecture des annexes du dossier principal sont indispensables pour bien intégrer la stratégie du
Japon et les raisons du succès de la filiale.
• Vous avez 1 heure pour lecture et analyse des annexes.
• Compte rendu de groupe
• 1 ou 2 groupes passent à l’oral.
Annex 1
TAPIS TUMBLER ANALYSIS
110
| Tapis Tumblers Sales History 2010-2021
5,000JPY 5,500 JPY 6,000 JPY (2013 Apr) 6,300 JPY 6,500 JPY (2017 Apr)
(2011 Oct) (2016 Jan)
326,263
305,187
291,747
274,279 277,356 275,211
269,745 266,890 270,295
265,892
262,342
253,158
111
| TAPIS TUMBLER: The Perfect Gift
A success story.
• Launched in 2003 as the most prestigious gift at ¥5,000, in order to compete with
Hermes ties. Currently priced at ¥6,300.
• Initially targeting corporate demand through “gaisho” (DS’ VIP sales network).
• Now used for multiple celebrations: Wedding, birthday, company anniversary,
retirement gifts, B2B etc…
• In 2010, a new Sku with the year engraved on the bottom was launched.
• Sold near 5 Million glasses until today.
• Positioned as “My first Baccarat”. Tumblers are an entry point for Baccarat,
triggering demand for high-end products.
What makes it unique?

• High perceived value (glass with cuts) @ affordable price.
• Started at ¥5,000 yen  Most standard budget for gifting in Japan (with
¥3,000 & ¥10,000).
• Best attributes for Japanese: Luxury image, high quality, hand made,
history,
made in France.
• Red box with white ribbon reminds Japanese Flag.
• Useful in everyday life for drinking alcohol, soft drink/water or recipient.
• A beautiful shining jewel without color  No hesitation vs receiver’s
taste.
• Can buy by one or by pair, depending on budget.
• Year engraved glass at same price than non-engraved one.
• Design and year engraved changing every year  can be gifted multiple
times.
• Inspiring advertisement published every year in major Newspaper full
page. 112
| TAPIS TUMBLER: The Perfect Gift
Unique and creative advertisement visuals with inspiring messages.
ETNA, March 3, 2011 LOLA, February 29, 2012 STELLA, September 11, 2014 ROSA, March 27, 2015 GLORIA, March 3, 2016
LUCIA, November 10, 2016 VITA, April 3-4, 2019 BRAVA, December 4, 2019 BRAVA, March 3, 2020 TIARA, November 5, 2020
113
Annex 2
Latest newspaper advertisement creatives (English translated)

Dec 2019  Mar 2021
114
“Next year will resound with
applause that never
ends.”
“Brava” is a word used to express approval of a

performance. Cut in a shape like an open folding fan,
this glass was designed around the idea of applause ringing
out. Baccarat. Applause.
These are two of the few ways that one can communicate
unqualified admiration, transcending the barriers of
language and that stand between generations.
As 2020 approaches, who will it be who receives your
applause?
Yomiuri, Dec., 2019

Nikkei, Dec., 2019
Nikkei Adv. Award

(Brand & fashion division)
115
Glass for the 100th anniversary
of Japan’s encounter with
Baccarat
Nikkei, Mar., 2020
Nikkei Adv. Award

(Brand & fashion division)
116
Glass for the 100th anniversary
of Japan’s encounter with
Baccarat
Just one hundred years ago, during a time when the name Baccarat was unknown in Japan, one person went all the way to France
to
buy it, and went so far as to order custom teaware.
That person was Tojiro Harumi.
An Osaka art dealer, he was known for his taste and his deep grasp of tea ceremony and kaiseki cuisine.
For someone so thoroughly versed in Japanese culture to order such goods from a largely unknown foreign country was regarded
as a heresy and mocked for its imprudence.
Still, Baccarat’s artisans applied themselves to the challenge of satisfying his enthusiasm.
They might have refused the order on the grounds that Japan and France were simply too different.
A simple exchange of letters took up to six months then; surely there were significant misunderstandings before Tojiro’s vision took
shape. Still, the artisans working to fulfill that vision were not the sort to work by rote.
They sought to appreciate the culture of distant Japan and fuse it to what they had already built, thus giving rise to a new creation.
It is because they have continued to tackle such challenges that Baccarat shines out. The transparent teaware, created in that
spirit, has become a beloved object among masters of tea ceremony in Japan.
Many Japanese people now know the Baccarat name.
Yet the origin of their knowledge is that same conviction, which Japanese people share with Baccarat.
Instead of merely preserving old forms, one must always tackle new endeavors and continue to defy the
past.
That is the ideal we have sought to fit, and shall continue to seek hereafter. 2020.
This year, the hundredth anniversary of the encounter between Baccarat and Japan, is the starting point of a new quest for us
as Japanese people and us as Baccarat to seek new selves.
117
“More than the world, it’s
you I’d like to see
shining.”
The world and society have a tendency to

produce stories that are either gloomy or
bright, and we at Ba ccarat want to
support you in reclaiming the light for you
and your special someone.
There’s no better way to brighten up the
world than to help one person within it
shine brightly.
In 2021, you can crown that person with
a
Tiara by Bac c arat.
Nikkei, Nov., 2020
118
“Welcome home,
Baccarat.”
Pause for a moment amidst these days that

seem likely to swallow you whole.
Set aside what’s irrelevant and have a quiet
moment to yourself.
I think anyone who can take this kind of time
is genuinely ric h.
Whether it’s water, tea, or liquor, once you
pour it in this glass, it becomes a gift of time
to yourself.
Whatever kind of day it was, it will be all right
in the end with Bac c arat.
Nikkei, Mar., 2021
119
| Annex 3
Reasons of Baccarat’s success in Japan
120
| Baccarat’s reasons of success in Japan
o Gifting strategy and originally mainly selling high priced products

• First major museum pieces exhibition occurred in 1999 over 2 years showcasing ~400 marvelous pieces, demonstrating
unique knowhow and craftsmanship.
• Baccarat used as wedding gift for the most famous Sumo wrestler “Takanohana” in 1995.
The wedding was highly mediatized through all Japan medias and TVs.
• Tapis (year engraved tumbler) launched in 2003 representing now >25% of total sales, supported by unique Advertisement
creatives made locally. Nearly 5 Million pieces sold since its launch.
• Corporate gifting strategy implemented mainly by leveraging Tapis.
o Baccarat, a Luxury Brand

• Positioned and recognized as a luxury brand, with half of shops being located in DS’ Luxury floor, next to Hermes, Vuitton,
Cartier… Kept a consistent image over the years with luxury image shops and VMD.
• Half of sales are made through Gaisho, with 7-8 Baccarat fairs organized yearly at key DS (including systematic Gaisho 1h
training).
• Strong and lasting relationships with Department Stores.
o Strong sales capabilities

• High level service and high quality customer communication at retail stores with low employee turnover rate (Managers at
shop and B bar, avg. 10+ years working experience at Baccarat)
• Investment in education of DS VIP sales to offer same quality of sales communication as Baccarat employees.
• “Yorokobi no katachi” (shape of joy) philosophy: Baccarat are not just crystal products; it brings further beauty, joy and
quality of life in your everyday. This powerful concept of social contribution, adds further meaning and motivation to BPK’s
team to promote and sell Baccarat.
121
| Baccarat’s reasons of success in Japan
o Marketing & communication

 Invested in mass media advertising (e.g., newspapers) with several objectives:
 to build up Baccarat brand image and increase brand awareness.
 to promote specific key products, such as Lucky cat, Doraemon and mainly Tapis Tumbler. Always with highly
sophisticated marketing message and contents.
 Developed locally with local advertising agency. Same copy writer since 2007, who makes a consistent brand message
according to our briefing.
 Almost all advs. awarded by renown advertising associations.
 Other effective promotions such as:

 Annual Baccarat fairs implemented in key DS (approx. 5 per year)
 250 lights giant Chandelier displayed 2 months every year (for more than 20 years) at an iconic location during
Christmas. 2-3 Million visitors per year.
 Collaboration with local artists / Anime characters to stay modern and with a fun mindset. “Japan only” exclusive products to
promote Baccarat brand and tailor brand positioning for Japan (e.g., Doraemon, Maneki-neko, Glass Japan, Imaemon etc..).
 Kept launching MOF prestige collections every year to maintain Baccarat’s high knowhow, quality, and craftsmanship's image
among our consumers. High and low strategy: To inspire with exceptional products leads to selling more base volume products.
 Beautiful, inspiring and consistent Visual Merchandising in all shops, combining harmoniously “French Art de Vivre” with
Japanese lifestyle.
122
Petit arrêt sur image.
• Vous avez désormais un vision de la marque, de ses ambitions.
• Vous avez désormais ce qu’est la stratégie de la principale filiale de la marque en
termes de poids de CA et de résultat (donc de contribution à l’ebitDA de la société
mère).
• Comme évoqué, vous êtes des pôles de conseil.
• Par conséquent, vous devez présenter un diagnostic de la filiale japonaise et donner
les orientations qui vous paraissent pertinentes et ne pas donner suite à celles qui ne
vous paraissent pas logiques et bien entendu leur trouver d’éventuelles alternatives.
• Il y aurait effectivement une stratégie prix à valider, mais celle-ci rendrait trop
complexe le business case workshop, nous n’en tiendrons pas compte par
conséquent.
• Après avoir fait l’ensemble de ces
analyses en J1 et la majeure partie
de J2.
• Vous avez une partie de J2 / J3 et
une partie de J4 pour donner vos
Votre sujet de orientations et recommandations à
la filiale japonaise en prenant bien
réflexion soin de préciser ce qui vous parait
WORKSHOP pertinent dans la présentation du
CEO et ce qui pourrait donner lieu à
modification.
• Rendu sous format PPT le vendredi
12H00 et soutenance à partir de
14H00
12
4

MSC2 Brand Management Workshop Janvier

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

MSC2 Brand Management Workshop Janvier

Transféré par

Droits d'auteur :

Formats disponibles

MSC2

• Vous avez 3 heures afin de découvrir la maison BACCARAT et en faire une

synthèse • En groupes 10 minutes

RENTRONS et en tant qu’auditeurs juniors spécialisés en BRAND

DU SUJET • Vous aurez donc à disposition les grands axes et

• Prévisions de CA raisonnables compte d’un CA mi parcours de 86,6M€ et

• TOUT EST STRICTEMENT CONFIDENTIEL ET AUCUN DOCUMENT NE

September 27th, 2021

232,595,152 cases & 4,761,798 deaths.

Number of deaths by country

2nd Brazil 594,484

3rd India 447,225

4th Mexico 275,446

5th Russia 203,900

6th Peru 199,228

8th Indonesia 136,168

Outbreak Map Daily Confirmed Cases

As of September 27, 2021

Japan Times (Sunday, September 26)

・ Direct shops: 4 shops

・ In shops with CI: 35 shops

Market No.13 at its foundation with 3% share.

Since 1998 BPK represents more than 30% of the world,

Retail Tokyo Marunouchi Purchase Takashimaya Nihonbashi Baccarat staffs only

Osaka Daimaru Shinsaibashi SIS Isetan Urawa

Tokyo Seibu Ikebukuro SIS Nagoya Mitsukoshi

Kumamoto Tsuruya SIS Purchase Isetan Niigata

Nagoya Matsuzakaya SIS Total: 6 Entetsu

Yokohama Sogo SIS Mitsukoshi Takamatsu

Nagoya Takashimaya JR SIS Takashimaya Iyotetsu

Kobe Daimaru SIS Tokiwa

Tokyo Takashimaya Shinjuku SIS B bars B bar Marunouchi

Fukuoka Izutsuya SIS Total: 3 B bar Roppongi

Hiroshima Sogo SIS B bar Umeda

Chiba Sogo SIS

Sendai Mitsukoshi SIS

Tokyo Tobu Ikebukuro SIS

Tokyo Seibu Shibuya SIS

Okayama Tenmaya Honten SIS

Hiroshima Hatchobori Fukuya SIS

Nagoya Nagoya Midland 93 Takashimaya Nihonbashi 203 Nagoya Mitsukoshi 57

As of December 31, 2019

Marunouchi, Tokyo Roppongi, Tokyo Midland, Nagoya

Total Number of DOS: 4

Fukuya, Hiroshima Hankyu Umeda, Osaka Takashimaya Osaka, Osaka

Total number of SIS: 35

Shinjuku Takashimaya, Tokyo Daimaru Shinsaibashi, Osaka

Luxury Floor Life Style Floor

Takashimaya, Omiya Tokyu, Nagano

Total Number of Corners: 46

Basic (approx. 5-10 skus) 10

B bar Marunouchi, Tokyo B bar Roppongi, Tokyo B bar Umeda, Osaka

Total Number of Bars: 3

2019 2020 2021

Excl. Bar, Staff-sales, Destocking

Excl. Bar, Staff-sales, Destocking

Mercedes Benz BPK Total Sales 3 SIS WS  concession

2013 2014 2015 2016 2017 2018 2019 2020 2021 LE

Bain international study 2021

• Gaisho ： Specific Sales force (like personal shoppers) in each department

TOTAL SALES: 5,675 M yen (-4.1% vs 2019)

Inventory / Supply Chain ANTI- COVID Actions

Fixed Cost Reduction Financial Forecast