MIU MIU GLOBAL EXPANSION PLAN & COSMETICS

GLOBAL EXPANSION PLAN - MIU MIU BEAUTY SCAD UNIVERSITY | LXMT 745 SPRING 2023 | PROF DEMESKO

KEREN RAMOS SOFIA RAGONA LAWSON BURROWS

EXCECUTIVE SUMMARY

MIU MIU GLOBAL DISTRIBUTION PLAN

EXECUTIVE SUMMARY Miu Miu is one of the luxury fashion brands owned by the Prada Group, which was founded by Miuccia Prada in 1993. The brand has been described as the “rebellious child” of the Prada house, renowned for its provocative and avant-garde style created to be an unrestrained portrayal of Miuccia Prada´s creativity.

The mix of high-end design with a fun and cheeky attitude gives the brand a strong appeal to fashion-savvy young women.

Miu Miu currently produces ready-to-wear clothing, handbags, shoes, and other accessories. Operates in all major international markets worldwide, but it is best represented in the Asia-Pacific Region where Japan leads 35% of the company’s retail business. As of 2023, Miu Miu was considered “Brand of the Year” by Lyst. To optimize the brand momentum, we conducted extensive research on the global luxury beauty market, specifically in the Asia Pacific Region, evaluating the brand's strengths and weaknesses, as well as its current target market, communication plans, distribution channels, and brand positioning.

We propose that the brand's equity be increased by implementing a Beauty line in the Miu Miu product offering to be distributed in Japan through the Aoyama flagship store and an additional Pop-Up store located in the Shibuya Scramble crossing ward, Tokyo. A major commercial and finance center also known to be the busiest pedestrian crossing in the world.

COMPANY ANALYSIS

MIU MIU GLOBAL DISTRIBUTION PLAN

CURRENT RESULTS & DISTRIBUTION Currently, Miu Miu owns 145 stores and has 5 franchises globally. As a whole, The Prada Group owns 612 stores across the globe.

Best represented in Asia.

Japan accounted for 35% of the company’s retail business.

Other Asian countries made up 20%.

Net revenue of 488.9 million Euro in 2022 Double-digit growth.

42%

READY-TO-WEAR

26% FOOTWEAR

Retail Net Sales: Miu Miu (in thousands of Euro) 2022

431,768

2021

11.6% of The Prada Group revenue

346,874

32%

LEATHER GOODS

11.8% of The Prada Group revenue

RETAIL BRAND IDENTITY

MIU MIU GLOBAL DISTRIBUTION PLAN

MARKET SEGMENTATION DEMOGRAPHIC Analytics from Miu Miu´s website (past three months)

MIU MIU GLOBAL DISTRIBUTION PLAN

01 WHY JAPAN 02 BEAUTY MARKET ANALYSIS 03 KAO CORP. 04 COMPETITIVE ANALYSIS

STRATEGIC PLAN

01

STRATEGIC PLAN

MIU MIU GLOBAL DISTRIBUTION PLAN

STRATEGIC PLAN Miu Miu´s momentum and execution have driven accelerated growth, with a sharp acceleration in the second half of 2022. The brand has invested in its relevance, nurturing awareness, and growth of its client base.

Addition of a New Category

NEW

To optimize the brand momentum, balancing iconic codes and newness. By adding a new category Miu Miu aims to solidify brand awareness across markets and it increases the ability to reach different touchpoints.

Development of Beauty Line

Launch Beauty Line in Asia

Given its young and playful brand identity. A Beauty line would allow Miu Miu to deepen its connection with its younger consumers while asserting itself as an option.

Asia Pacific region returned to moderate growth. Growth in South Korea and particularly buoyant South East Asia.

Solid growth in Japan and the Middle East.

BEAUTY 30%

01

GEOGRAPHICAL EXPANSION

MIU MIU GLOBAL DISTRIBUTION PLAN

JAPAN ANALYSIS According to the Kearney Analysis, Japan ranks no. 3 in the top 10 list of countries with the strongest economic power, forecasting a GDP of $4,532,644 million by the year 2027.

Amongst the Asian countries where Miu Miu has representation, the Japanese market is one that rebounded mainly due to domestic consumption, with retail net sales up by 30.5% at constant exchange rates.

Currently, Miu Miu has 86 stores in the country.

Sources: Oxford Economics; Kearney Analysis

01

GEOGRAPHICAL EXPANSION

MIU MIU GLOBAL DISTRIBUTION PLAN

TRADING AREA ANALYSIS: TOKYO Tokyo ranks first globally in terms of GDP at USD$ 1,600 billion, and is positioned No.3 worldwide and No.1 in Asia in the “Global Power City Index 2018” which shows, in terms of international city competition, that the city has the attraction to entice people and companies.

The scale of household financial assets in Japan has reached JPY¥ 1,800 trillion, around $10.5 trillion.

In Tokyo, there are 1,500 financial institutions and a large number of financial players that provide sophisticated services. Domestic and foreign financial institutions are concentrated.

Tokyo has highly reliable transportation, telecommunications, social infrastructure, and highly educated human resources.

JPY¥ 1,800,000,000,000,000

01

GEOGRAPHICAL EXPANSION

Omotesando

MIU MIU GLOBAL DISTRIBUTION PLAN

TOKYO AREA ATTRACTIONS

Meiji Shrine

Nonbei Yokocho

Sakuragaoka-Cho Street

02

MARKET ANALYSIS

MIU MIU GLOBAL DISTRIBUTION PLAN

COSMETICS MARKET ANALYSIS, JAPAN South Korea 6%

United States China

India 18.9%

Japan Brazil

China 50.6%

Germany United Kingdom India France

Japan 24.5%

South Korea 0

25

50

75

100

Japan is the second biggest cosmetics market in the Asia-Pacific region, after China.

In 2018, Japan was ranked 3rd in the leading countries of consumption of beauty products worldwide based on value.

Japan's Beauty & Personal Care market size in 2022 accounts for $29,686.9 million forecasted to grow at a 2% CAGR by 2027.

The consumption value of beauty products in Japan amounted to about 36.85 billion U.S. dollars in that year.

03

MARKET ANALYSIS

MIU MIU GLOBAL DISTRIBUTION PLAN

MIU MIU J-BEAUTY X KAO J-beauty refers to the beauty and skincare products, techniques, and trends that originate from Japan. The Japanese cosmetics industry is regulated by the Ministry of Health, Labour and Welfare (MHLW), which has set strict standards for: High-quality ingredients Attention to detail Product Safety Kao Corporation ranked among the top 10 beauty manufacturers worldwide (1.8 billion dollars sales value), operates mainly in the Japanese personal care market with a smaller cosmetics segment.

A licensing partnership with Kao Corporation would benefit Miu Miu by giving the company more credibility for its brand expansion and a more consistent image that would appeal to its target audience.

COSMETICS X

04

COMPETITIVE ANALYSIS

MIU MIU GLOBAL DISTRIBUTION PLAN

LEADING COSMETIC PRODUCTS BOUGHT AMONG WOMEN IN JAPAN: SUNSCREEN

75%

CURRENT BEST SELLERS: 50%

25%

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Sunscreen

Eyebrow

Foundation

Kose Sekkisei $29 USD

Powder & Pencil Eyebrow $11.81 USD

Liquid Foundation $62 USD

MIU MIU GLOBAL DISTRIBUTION PLAN

05 DISTRIBUTION MODEL 06 STORE & PRODUCT DESIGN 07 PRODUCT PLAN 08

COMMUNICATION & PROMOTIONAL PLAN

STORE LOCATION

STORE LOCATION

DISTRIBUTION MODEL

AOYAMA STORE HERZOG & DE MEURON

MIU MIU FLAGSHIP TOKYO

MIU MIU GLOBAL DISTRIBUTION PLAN

05

STORE LOCATION

MIU MIU GLOBAL DISTRIBUTION PLAN

MIU MIU BEAUTY DISTRIBUTION MODEL Distribution of the Beauty line: Aoyama Flagship Store. Aoyama is one of the wealthiest neighborhoods of Tokyo, located in the northwest portion of Minato Ward.

Miu Miu Pop-up store is located in Shibuya which will be in close proximity to the existing Miu Miu store in Aoyama. Shibuya is a major commercial and finance center, and is the busiest pedestrian crossing in the world. It also houses two of the busiest railway stations in the world, Shinjuku Station (southern half) and Shibuya Station.

Online

STORE CONCEPT AND DESIGN

MIU MIU POP-UP STORE

MIU MIU GLOBAL DISTRIBUTION PLAN

VR SCREEN ROOM AMBIANCE SIGHT LED lights along the perimeter Virtual Reality Screen Room SMELL Miu Miu Eau de Parfum TOUCH VR beauty game Product SOUND Music from the VR game

POP UPLAUNCH DATE: March 25th 2024 4 weeks duration Cherry-blossom season

MIU MIU AOYAMA STORE

MIU MIU GLOBAL DISTRIBUTION PLAN

VISUAL MERCHANDISING

MIU MIU GLOBAL DISTRIBUTION PLAN

07

PRODUCT PLAN

%

Product Category

Average Price $

40%

Foundation, Tinted Suncream, Blush

$47.30

Eyes

40%

Eyeshadow palette, Mascara, Eyebrows Pencil

$40

Lips

20%

Lip Tint, Lip Gloss

$44

Total

100%

Product Plan

Face

$44

The product plan for the Miu Miu Cosmetic line within the Aoyama Flagship and the Pop-Up Store is in line with the needs and tastes of the current target consumer. The products feature playful yet glamorous designs, with a mix of fun, femininity, and forward-thinking design which are appreciated by Miu Miu consumers.

08

COMMUNICATION & PROMOTIONAL PLAN

OUT-OF-HOME ADVERTISING OOH will be used to increase hype prior to and during the launch of the pop-up and the Beauty line. Besides the vicinities of all the Miu Miu points of sale in Tokyo, such as malls and department stores, we will make use of outdoor advertisements billboards, bus shelters, wallscapes, and posters on subway lines specifically near the Shibuya and Aoyama subway stations.

INFLUENCER MARKETING Influencer marketing with recognized Japanese influencers and Virtual influencers will be used throughout the prelaunch and launching steps of the campaign in order to increase and promote the connection between Miu Miu and the Asian audience.

PUBLIC RELATIONS For the launch of the Miu Miu pop-up and beauty line, we will hold a special Miu Miu Select event with the use of virtual mirrors hosted by influencer, Imma Gram, who will curate her favorite beauty products to showcase her favorite make-up look.

DIGITAL STRATEGY Editorial and commercial AD campaigns with Asian celebrities, influencers, and beauty gurus who will be using and/or reviewing the products.

MIU MIU GLOBAL DISTRIBUTION PLAN

BIBLIOGRAPHY Prada Group Website. Miu Miu´s Brand Identity. https://www.pradagroup.com/en/brands/miumiu.html#:~:text=Miu%20Miu%20was%20born%20in,provocative%20personalities%20to%20contemporary%20society.

Prada Group Website. Prada Group´s Financial Statements. https://www.pradagroup.com/en/news-media/press-releases-documents/2023/23-03-09prada-group-financial-results-fy-2022.html Statista. Number of Franchised Stores of Prada Group by Geographical Area. https://0-www-statista-com.library.scad.edu/statistics/612382/number-offranchised-stores-of-prada-group-by-geographical-area/ Statista. Net Revenues of the Prada Group in Italy by Brand. https://0-www-statista-com.library.scad.edu/statistics/612677/net-revenues-of-the-pradagroup-in-italy-by-brand/ Statista. Number of Directly Operated Store Owned Prada Group by Geographical Area. https://0-www-statistacom.library.scad.edu/statistics/612379/number-of-directly-operated-store-owned-prada-group-by-geographical-area/ Shults, Richard. Borro Website. “How did Miu Miu Develop its Unique Brand Identity” https://borro.com/how-did-miu-miu-develop-its-unique-brandidentity/ Windows Wear Website. Miu Miu. https://www.windowswear.com/all-search/?search=miu+miu Retail in Asia Website. “Miu Miu opens Secret Garden pop-up in Tokyo”, Feb 7, 2022. https://retailinasia.com/in-markets/miu-miu-opens-secret-gardenpop-up-in-tokyo/ Morton, Gabrielle. “Miu Miu Marketing Report”, Feb 12, 2018. https://issuu.com/gabriellemorton/docs/final_final_report Kaiser, Amanda. “Miu Miu Comes Into Its Own”, March 3, 2006. https://wwd.com/feature/miu-miu-comes-into-its-own-543044-1990822/

BIBLIOGRAPHY The Global Economy, Japan: Stock Market Return. https://www.theglobaleconomy.com/Japan/Stock_market_return/#:~:text=The%20latest%20value%20from%202021%20is%2022.23%20percent.

Statista. "Cosmetics in the Asia-Pacific Region". https://0-www-statista-com.library.scad.edu/study/80539/cosmetics-in-asia-pacific/ Statista. "Cosmetics market in Japan - statistics & facts", Mar 14, 2023. https://0-www-statista-com.library.scad.edu/topics/4661/beauty-industry-injapan/#topicOverview Statista. "Japan Most Bought Cosmetics Women". https://0-www-statista-com.library.scad.edu/statistics/1243017/japan-most-bought-cosmetics-women/ Japanse Taste Website. "The top 10 best sunscreens for any skin type in 2023", 2023. https://japanesetaste.com/blogs/japanese-taste-blog/the-top-10best-sunscreens-for-any-skin-type-in-2023 JW Web Magazine. "Best Japanese cosmetics products for quick and easy makeup". https://jw-webmagazine.com/best-japanese-cosmetics-products-forquick-and-easy-makeup-f3287377a538/ Japan with Love Store Website. "The top 5 Japanese lipsticks perfect for your lips 2022", 2022. https://japanwithlovestore.com/blogs/blogs/the-top-5japanese-lipsticks-perfect-for-your-lips-in-2022 JW Web Magazine. "Best Japanese makeup primers to buy" https://jw-webmagazine.com/best-japanese-makeup-primers-to-buy-764861d1b6bb/ Kokoro Japan Store Website. "Best Japanese foundation makeup you can buy in 2020", 2020. https://kokorojapanstore.com/blogs/product-corner/bestjapanese-foundation-makeup-you-can-buy-in-2020 https://jw-webmagazine.com/best-eyebrows-products-in-japan/ Super Future Website. "Tokyo Chanel Beauty House Opening". https://superfuture.com/2022/04/new-shops/tokyo-chanel-beauty-house-opening/