UNIT 1: BRANDS
READING 1: BUILDING LUXURY BRANDS
Activity 1: Discussion
Which of these are luxury brands?
Activity 2: Useful Vocabulary
Word / Part of
Definition and Example
Phrase Speech
- always moving; showing signs
of worry, boredom, impatience
restless - during which a person does not sleep
- to follow especially in order to catch or
capture; to chase
ex: They pursued the thief through the town
- to occupy oneself with (studies, enquiries etc);
pursue to continue
ex: He is pursuing his studies at university.
- (adj) in a business organization etc) concerned
executive with management
- (n) a person or body of people in
an organization etc that
has power to direct or manage
- (adj) given to only one individual or group etc
- not easily or readily mixing with others or
exclusive
allowing others in
(n) a person who owns shares in
a business company
shareholder -
- (adj) first or most important
(n) the best part (of a
prime person’s etc life, usually early middle age)
-
(n) the designing, making,
and selling of expensive fashionable clothing, or
couture the clothes themselves:
(v) to imagine or expect that something will happen:
Ex: The anticipated inflation figure is lower than last
anticipate month's
(n) (an area of) land, or sometimes sea, that
is considered as belonging to or connected with
territory
a particular country or person:
(adj) unable to pay what you owe, and having
had control of your financial matters given, by
a law court, to
bankrupt
a person who sells your property to pay your debts:
Ex: He went bankrupt after only a year in business.
Activity 3:
What is the brand image of Dior?
Luxurious, feminie, glamorous, prestige, exclusive and sophisticated
Activity 4:
Skim the article quickly and say which of the following points are mentioned:
1. The high profit margins on bags
2. Investing in markets that may take some time to grow
3. People are ready to pay a lot of money for very high-qualty things because they are beautiful.
4. Building customer loyalty through ready-to-wear
Activity 5: Read the following article:
Restless pursuer of luxury’s future
by Vanessa Friedman
Sydney Toledano (Dior’s Chief Executive) is one of the longest serving chief executives in the
luxury industry. As the industry goes global, he must balance the demands of shareholders and
the values of a historic label, the need for exclusivity and the need for expansion.
He routinely communicates with his demanding boss, Bernard Arnault, main shareholder of
Christian Dior, and a number of creative types, including Dior’s clothes designer John Galliano
and jewellery designer Vicwire de Castellane.
‘The best advice I ever got was that, when times are bad, you need to get out of the office; when
things are good, you can spend time on the organisation,' says Mr Toledano, who travels almost
every week to one of Dior’s 224 stores round the world. ‘You have to look for newness, look for
what is happening next. Forget the calculator. Understand the people from different countries
and what they want.’
It was by spending time in China the 1980s, for example, when he worked at the French leather-
goods house Lancel, that Mr Toledano first realised China would one day be prime territory for
luxury.
‘I met some factory owners, and they were working so hard, but then they would bring you to a
restaurant and it was clear they wanted to enjoy life,' he says. ‘And I thought: one day these
people are going to have money and they are going to spend it.’
A few years later, Bernard Arnault contacted him. 'The interview took 15 minutes. He knew
exactly what he wanted.' says Mr Toledano: to take a small couture house he had bought out of
bankruptcy and build it into the biggest luxury group in the world. Mr Arnault has used Dior to
create LVMH (Louis Vuitton Moet Hennessy, the world’s largest luxury group).
‘Christian Dior can double in five years,’ he says. ‘There may be difficult times coming, but if
you look at the Middle East, China, even Europe, I believe there is growth coming and we have
to develop our network and perfect our supply chain.’
The next wave of luxury buyers is now in the new territories: the Middle East, Russia, Hong
Kong and South Korea.
Mr Toledano believes not only that a brand should go to its customers but that it should
anticipate their needs and invest early in markets that may not show real growth for up to six
years.
Activity 6: Complete the notes in the maps below. Then correct the ten mistakes.
Activity 7: Choose the correct answer A, B or C
1. …………… is the world’s largest luxury group.
A. Christian Dior
B. LVMH (Louis Vuitton Moet Hennessy)
C. Gucci
2. …………… is not a new territory for luxury.
A. Japan
B. Russia
C. South Korea
3. Sydney Toledano realized China would be prime territory for luxury when working in China
in …………….
A. the 1970s
B. the 1980s
C. the 1990s
Activity 8: True/False/Not Given
Decide whether these statements are True, False or Not Given.
1. Sydney Toledano is the main shareholder of Christian Dior . F
2. Dior has 224 stores all over the world. T
3. Sydney Toledano was very successful when he worked at the French leather-goods house
Lancel. T
4. Louis Vuitton Moet Hennessy was created by John Galliano. F
5. There are now more luxury buyers in the Middle East, Russia, Hong Kong and China. T
Activity 9: Words in Phrases
Go back to the article. Find prepositions to complete the following phrases and write them
in the blanks.
1. Sydnedy Toledano routinely communicates …with………… his demanding boss and a
number …of………… creative types.
2. A brand should anticipate customers’ needs and invest early ……in……… markets that may
not show real growth ……for……… up to six years.
3. The new wave of luxury buyers is now …in………… the new territories: the Middle East,
Russia, Hong Kong and China.
4. You have to look ……for……… newness, understand people ………from…… different
countries and what they want.
5. It was ……by……… spending time ……in……… China ……in……… the 1980s that Mr
Toledano first realized China would one day be prime territory ……for……… luxury.
Activity 10: Pronoun Reference
What does the underlined pronoun refer to?
1. “… when he worked at the French leather-goods house Lancel …”
A. Bernard Arnault
B. John Galliano
C. Sydney Toledano
2. “… it should anticipate their needs…” (line 69).
A. Markets
B. Customers
C. Factory owners
Activity 11: Word Form
Complete the following sentences with the correct form of the word.
1. anticipate
After months of ……. anticipation ………, the holiday was a bit of a disappointment.
2. exclusivity
The company has an … exclusivity………… focus on success and making money. Its products
are …… exclusivity……… produced for independent retailers.
3. creative
He has been working …… creative ……… in papermaking and prints since the 1970s.
Everyone is deeply impressed with his … creative ………….
4. demand
She has a busy and …. demand………… job. Her boss …. demand………… asks for an
increase in sales every month.
5. develop
These green industries can not only create more jobs, but also promote sustainable …
development………… of the land.
6. routinely
As a matter of ……. routinely………, a report is sent to the director at the end of the month.
Activity 12: Focusing on Words
Fill in each blank in the sentences below with one suitable word. When you finish, turn
back to the article and check your answers.
Sydney Toledano is Dior’s Chief (1) ……executive………. As the luxury industry goes global,
he must (2) …balance………… the demands of shareholders and the values of a historic label.
He has regular communication with his (3) ………demanding…… boss and some creative
designers. He believes it is important to (4) …anticipate………… needs and there is the growth
coming to new (5) ……territories……… such as the Middle East, Russia, Hong Kong and South
Korea.
Activity 13: Discussion
What should be done to
develop a brand name?
