cDd AaBbCebdl Aa Bb CcDdEx Aa BbCcD ! ! Normal Strong Emphasis Heading 1 The Perplexing Case of Puig Doria In August 2015, one week before the arrival of representatives of Daimats and Itochu Corporation-Japan!, Miguel Villar and Josep Maria Puig Dacia sat down to discuss how negotiations with the Japanese had gone to date. It had been almost two years since Puig Doris was first approached by the Japanese, who were interested in selling his designs in Japan, yet both Villar and Puig Dacia were somewhat uneasy about the way things had developed. Background Puig Dotin is a prestigious jewelry establishment located on Avenida Diagonal in Barcelona, Spain, the Fifth Avenue of the city, where it is surrounded by other retail outlets featuring the products of several internationally known designers, such as Cartier and Yves St. Laurent. The proprietor's growing renown had prompted him to open the large, elegant and exclusive showroom for his designs and the location of all of Puig Doria's administrative and commercial activities Puig Daria extended the care he put into the design of his jewels to the environment in which they were displayed and sold. He felt this was just one of many important details surrounding the creation and sale of a high-quality jewel. As a result, the Puig Dacia store was color-coordinated in grey and chestnut and cach jewel elegantly displayed in individual, carefully lit exhibits set into the walls throughout the establishment. The store staff was also elegantly dressed in grey and chestnut, wearing shirts especially designed to show off jewels they might be asked to model by a potential client, Past Export Activities In 2001 Puig Data, designed a line of economical silver jewelry to be produced in quantity for export to the United States and West Germany under the Puig Doria name which, by 2007, was selling ovenca in ufficient volume to justify a continuing effort. Puig Dacia, was compelled, however, to seriously curtail export activities when in a serious breach of company loyalty, a former employee began producing and selling copies of the designs without any licensing agreement. Puig Doria was strongly affected by this incident and began to feel that this purticular type of export activity made his designs particularly vulnerable to pracy. As a result, he began to believe that it might be more appropriate to och pration is one of Japan's largestelde companies Dacial tallye name or de ce and show where is owner and designer displays his jewelry. In this case, the Pig Detased to describe will admitive functions, including sales and production IM li Normal Strong Emphasis Heading 1 !!! lili 100 export not just his designs but the Puig Dotis concept as a whole which was defined by its prestige, its clegance and its unique style all well represented in the showroom in Barcelona In 2005, Puig Dacia authorized the opening of a Puig Docia store in Geneva. The store was forced to close in 2012, however, after an unsuccessful search for suitable management. Although the firm had not engaged in any export activities since then, Puigfelt that international activity was an important element of prestige in his field Contact with Itochu Corporation Trochu Corporation, one of the largest general trading companies, or Saxoshab. in Japan maintained a branch office in Madrid that was primarily involved in trading commodities in Spain Because the margins came in commodity trading were extremely low, it was decided in 2011 to investigate the possibility of diversifying into higher margin businesses in Spain. One result of this investigation was the decision to search for a jewelry supplier who could provide high-quality, branded Jewelry with exclusive designs at a price of between Esco and 1000 per piece and who also offered a full range of complementary scessories Toward the end of 2013, aber being Identified as a suitable wpplier, Paig Doria was contacted by Yuichi Oka, Hrochu Corporation's Metals Department director in Madrid, and put in touch with Miguel Villar who had had some previous experience exporting and knew of Puig Doties desire to commercialize his product in Japan. Oka proposed the following: While Itochu Corporation would actually purchase jewelry from Puig Docia. Data manufacturer of high-quality silk kimonos would choose the jewels and would be responsible for selling them to the public through retail outlets that handied, among other products, their sik imones and jewelry. This jewelry, by Spanish standards, would be considered medium quality Essentially, Hochu Corporation acted as buyer and importer, reselling Puig Dotia jewels to Daim in Japan. It was not know what if anything. Daimat paid liocha Corption for this service Eventually three purchases were made of Puig Dora jewels, chosen personally by representatives of Dams who traveled to Barcelona for the first time in January 2014. The Daily representatives had said they intended to use their purchases to test the Japanese market. But after the third purchase in December 2014. Puig Dota decided to discontinue the relationship for two reasons. First, each of the three purchases had consisted of only one unit of a particular piece of jewelry and Puig Dacia was concemed that the Japanese might simply intend to copy his design. Since his flest experience with Migal Valehe working for Ple Decoraty 17 y Surg 1998 mistrative direct 2011 becand for the production of jewel with cal reply for jewel with 2015. ledeflis peiton administrative all Head that he hadeve less Hoaginu Emphasis piracy, he had had other serious incidents of his designs being reproduced without consent Second, Puig Dacia still wanted to expon the Puig Doris concept as a whole through exclusive showrooms fashioned after his store in Barcelona and he felt that the negotiations with Dimts were not leading to this end In April 2015. Itochu Corporation forwarded two market studies to Puig Doris in an effort to persuade him to continue negotiating the sale of his jewelry through Dumate The first of these studies w intended to demonstrate the difficulty in establishing new retail outlets in Japan. The second document was market study on the Japanese gold jewelry market conducted by locald', which Hemed to indicate that the buying habits of the Japanese were significantly different from those of Spanish Jewelry purchasers (Table 1). The Putere In August 2015, Puig Dacia had called Villar to his office to try once again to analyze his reluctance commit himself to commercial venture with loch Corporation and Daima Villar went over the document that had been the basis for the decision to continue working with the Japanese, pondering the prominent differences between the Japanese and the Spanish jewelry buyer. Because of limited knowledge of the Japanese market, Pais Doc had taken ne part in choosing the jewelry that was being want to Japan. He wondered, however, if they should somehow be more involved in creating a Japanese collection of Puig Dula Jewels Pig Dacia kimaelf was studying the large color catalog that featured the collection of Puig Dacia Jewelry chosen by D during its trips to Barcelona. The catalog had been published in the Spring of 2015 as the first step in launching Puig Dacia in Japan, and the full pages and the cover elegantly und professionally displayed the Pug Dacia collection Dumang had presented Pul Dacia, as the personality and the creative force behind the jewels by including a photo and some quotes about his work. The had been satisfied with the presentation of his jewels, which was both creative and in pood taste. While the remaining 41 papes of the catalog were devoted to Dumown collection of jewed Puit Dirigh quality and exclusive design were closely evident in contrast. It was obvious that it was aimaits most sophisticated bine, intended to relay a sense of prestige to all the oder products offered by Dam Como Chele Mines of South Africa per acting on heall e Ashith produce more of the world's old when 5200 million the decades de prin older the port of which has spended to O Fo Emphasid Villar thought the catalog did justice to Puig Doria's work but he wondered who would read it. Was it offered for sale or free to customers of Dalits stores, or was it intended for the management of these retail outlets? Were there any plans to extend the catalog to social media Villar was in fact unclear about many things concerning Daim. He did not know what Daimutsu's exact relationship with its retail outlets was or even how many of them there were, nor could be say for sure how Puig Data's jewels were being handled in Japan, aside from what he had seen in the catalog. While Puig Doria and Dalam had signed a statement outlining their intentions with one another, it was in no way specific As a result of lochu Corporation's persistence, the interests of all three parties had come closer to being melyet Villar worried that Puig Dacia was risking too much. At the test meeting Digitais representatives, among other things, intended to choose several Examples of a variety of jewels to take back to Japan. They had opened the first department dedicated to Puig Data, in a retail outlet in Nagoya and were beginning to get a feel for which designs would be succesful in Japan and which would not. Villar knew they would also again extend an invitation to Puig Dacito visit Japan. As far as they were consemed, things were progressing just fine, but, like Puig Daria Villar had the news se that the Puig Dacia firm was not exploiting the situation as well as it might. He continued to ponder what, if anything, they should do about it Questions for Discussion 1. What do you see as Puig Dota key success factors in Barcelona? Are they applicable to Japan? 2. Evaluate Puig Daria.previous empts at exporting (ilver jewelry and the Geneva retail outlet) 3 Review, from Puig Dacia's point of view, what has been done so far with lochu Corporation and Dato Has my real progress been made Should Puig Dacia continue using loch Corporation? What do you think of Pig Deca personal involvement? 4. How do you evaluate the situation faced by Puig Data and Villar in August 2015? 1. Should your evaluation be Positive--that is, if you feel that Puig Ducis in on the right track prepare a list of specifie recommendations for consolidating the relationship with Dumatsu and to progressively in the sales volume to the Japanese market Should your evaluation be Neptive--that is, if you feel that Puig Data on the wrong wak then why you dink. Describe what you e as specifically wrong the export strategy. e implementation, or hot), explain how Puig Doria, should have acted in a different way to stan esporting to pudine the ser the core of action that are opear and recommend one of the Foc Table 1: Summary of Significant Points of Japanese Market Study A Bing Habits of the lapanese 1. Unmarried young females purchase the greatest amount of gold jewelry 2. Seventy-five percent of gold jewelry purchased is without gemstones, of jewelry with gemstones, 40% contains diamonds 3. Over os of females buy gold jewelry for themselves 4. The most popular price range of gold jewelry is $20,000 to 140,000 145 to 20 s.Over cox of females purchase a special discount or sale 6. lapanese ywelry consumers and to look for quality, placing great importance on the design. They are not Come with the name value of the famous brands." Chechtes Goewelry Markets in Spain 1. Source of purchase Spain? t all gold jewelry is purchased in jewelry stores, X in department stores, and the balance in other." 39% of all gold jewelry is purchased in jewelry stores, 28 in department stores, and the balance in 1. Purchaser profile sa percentage of all gold jewelry bought Spaines of purchases are made by women 44% by me 76% of purchases are made by women, 24 by men. 1. Cirche percentage of them beti Seeds. WWE 11 N. 19, watches 2x, and brooches 4 line 7. www.watches, and broaches Foc ilt = Spain: 64% purchased as a ph, 10% self-bought lapan to purchased as a gif, 2% self-bought 5. Occasion of purchase as a percentage of all gold jewelry bought Spain: 71 purchased for a special occasion such as Christmas or birthday, 29% for no speciales Japan: 3 phased for a special occasion, GSX for no special occasion Focus cDd AaBbCebdl Aa Bb CcDdEx Aa BbCcD ! ! Normal Strong Emphasis Heading 1 The Perplexing Case of Puig Doria In August 2015, one week before the arrival of representatives of Daimats and Itochu Corporation-Japan!, Miguel Villar and Josep Maria Puig Dacia sat down to discuss how negotiations with the Japanese had gone to date. It had been almost two years since Puig Doris was first approached by the Japanese, who were interested in selling his designs in Japan, yet both Villar and Puig Dacia were somewhat uneasy about the way things had developed. Background Puig Dotin is a prestigious jewelry establishment located on Avenida Diagonal in Barcelona, Spain, the Fifth Avenue of the city, where it is surrounded by other retail outlets featuring the products of several internationally known designers, such as Cartier and Yves St. Laurent. The proprietor's growing renown had prompted him to open the large, elegant and exclusive showroom for his designs and the location of all of Puig Doria's administrative and commercial activities Puig Daria extended the care he put into the design of his jewels to the environment in which they were displayed and sold. He felt this was just one of many important details surrounding the creation and sale of a high-quality jewel. As a result, the Puig Dacia store was color-coordinated in grey and chestnut and cach jewel elegantly displayed in individual, carefully lit exhibits set into the walls throughout the establishment. The store staff was also elegantly dressed in grey and chestnut, wearing shirts especially designed to show off jewels they might be asked to model by a potential client, Past Export Activities In 2001 Puig Data, designed a line of economical silver jewelry to be produced in quantity for export to the United States and West Germany under the Puig Doria name which, by 2007, was selling ovenca in ufficient volume to justify a continuing effort. Puig Dacia, was compelled, however, to seriously curtail export activities when in a serious breach of company loyalty, a former employee began producing and selling copies of the designs without any licensing agreement. Puig Doria was strongly affected by this incident and began to feel that this purticular type of export activity made his designs particularly vulnerable to pracy. As a result, he began to believe that it might be more appropriate to och pration is one of Japan's largestelde companies Dacial tallye name or de ce and show where is owner and designer displays his jewelry. In this case, the Pig Detased to describe will admitive functions, including sales and production IM li Normal Strong Emphasis Heading 1 !!! lili 100 export not just his designs but the Puig Dotis concept as a whole which was defined by its prestige, its clegance and its unique style all well represented in the showroom in Barcelona In 2005, Puig Dacia authorized the opening of a Puig Docia store in Geneva. The store was forced to close in 2012, however, after an unsuccessful search for suitable management. Although the firm had not engaged in any export activities since then, Puigfelt that international activity was an important element of prestige in his field Contact with Itochu Corporation Trochu Corporation, one of the largest general trading companies, or Saxoshab. in Japan maintained a branch office in Madrid that was primarily involved in trading commodities in Spain Because the margins came in commodity trading were extremely low, it was decided in 2011 to investigate the possibility of diversifying into higher margin businesses in Spain. One result of this investigation was the decision to search for a jewelry supplier who could provide high-quality, branded Jewelry with exclusive designs at a price of between Esco and 1000 per piece and who also offered a full range of complementary scessories Toward the end of 2013, aber being Identified as a suitable wpplier, Paig Doria was contacted by Yuichi Oka, Hrochu Corporation's Metals Department director in Madrid, and put in touch with Miguel Villar who had had some previous experience exporting and knew of Puig Doties desire to commercialize his product in Japan. Oka proposed the following: While Itochu Corporation would actually purchase jewelry from Puig Docia. Data manufacturer of high-quality silk kimonos would choose the jewels and would be responsible for selling them to the public through retail outlets that handied, among other products, their sik imones and jewelry. This jewelry, by Spanish standards, would be considered medium quality Essentially, Hochu Corporation acted as buyer and importer, reselling Puig Dotia jewels to Daim in Japan. It was not know what if anything. Daimat paid liocha Corption for this service Eventually three purchases were made of Puig Dora jewels, chosen personally by representatives of Dams who traveled to Barcelona for the first time in January 2014. The Daily representatives had said they intended to use their purchases to test the Japanese market. But after the third purchase in December 2014. Puig Dota decided to discontinue the relationship for two reasons. First, each of the three purchases had consisted of only one unit of a particular piece of jewelry and Puig Dacia was concemed that the Japanese might simply intend to copy his design. Since his flest experience with Migal Valehe working for Ple Decoraty 17 y Surg 1998 mistrative direct 2011 becand for the production of jewel with cal reply for jewel with 2015. ledeflis peiton administrative all Head that he hadeve less Hoaginu Emphasis piracy, he had had other serious incidents of his designs being reproduced without consent Second, Puig Dacia still wanted to expon the Puig Doris concept as a whole through exclusive showrooms fashioned after his store in Barcelona and he felt that the negotiations with Dimts were not leading to this end In April 2015. Itochu Corporation forwarded two market studies to Puig Doris in an effort to persuade him to continue negotiating the sale of his jewelry through Dumate The first of these studies w intended to demonstrate the difficulty in establishing new retail outlets in Japan. The second document was market study on the Japanese gold jewelry market conducted by locald', which Hemed to indicate that the buying habits of the Japanese were significantly different from those of Spanish Jewelry purchasers (Table 1). The Putere In August 2015, Puig Dacia had called Villar to his office to try once again to analyze his reluctance commit himself to commercial venture with loch Corporation and Daima Villar went over the document that had been the basis for the decision to continue working with the Japanese, pondering the prominent differences between the Japanese and the Spanish jewelry buyer. Because of limited knowledge of the Japanese market, Pais Doc had taken ne part in choosing the jewelry that was being want to Japan. He wondered, however, if they should somehow be more involved in creating a Japanese collection of Puig Dula Jewels Pig Dacia kimaelf was studying the large color catalog that featured the collection of Puig Dacia Jewelry chosen by D during its trips to Barcelona. The catalog had been published in the Spring of 2015 as the first step in launching Puig Dacia in Japan, and the full pages and the cover elegantly und professionally displayed the Pug Dacia collection Dumang had presented Pul Dacia, as the personality and the creative force behind the jewels by including a photo and some quotes about his work. The had been satisfied with the presentation of his jewels, which was both creative and in pood taste. While the remaining 41 papes of the catalog were devoted to Dumown collection of jewed Puit Dirigh quality and exclusive design were closely evident in contrast. It was obvious that it was aimaits most sophisticated bine, intended to relay a sense of prestige to all the oder products offered by Dam Como Chele Mines of South Africa per acting on heall e Ashith produce more of the world's old when 5200 million the decades de prin older the port of which has spended to O Fo Emphasid Villar thought the catalog did justice to Puig Doria's work but he wondered who would read it. Was it offered for sale or free to customers of Dalits stores, or was it intended for the management of these retail outlets? Were there any plans to extend the catalog to social media Villar was in fact unclear about many things concerning Daim. He did not know what Daimutsu's exact relationship with its retail outlets was or even how many of them there were, nor could be say for sure how Puig Data's jewels were being handled in Japan, aside from what he had seen in the catalog. While Puig Doria and Dalam had signed a statement outlining their intentions with one another, it was in no way specific As a result of lochu Corporation's persistence, the interests of all three parties had come closer to being melyet Villar worried that Puig Dacia was risking too much. At the test meeting Digitais representatives, among other things, intended to choose several Examples of a variety of jewels to take back to Japan. They had opened the first department dedicated to Puig Data, in a retail outlet in Nagoya and were beginning to get a feel for which designs would be succesful in Japan and which would not. Villar knew they would also again extend an invitation to Puig Dacito visit Japan. As far as they were consemed, things were progressing just fine, but, like Puig Daria Villar had the news se that the Puig Dacia firm was not exploiting the situation as well as it might. He continued to ponder what, if anything, they should do about it Questions for Discussion 1. What do you see as Puig Dota key success factors in Barcelona? Are they applicable to Japan? 2. Evaluate Puig Daria.previous empts at exporting (ilver jewelry and the Geneva retail outlet) 3 Review, from Puig Dacia's point of view, what has been done so far with lochu Corporation and Dato Has my real progress been made Should Puig Dacia continue using loch Corporation? What do you think of Pig Deca personal involvement? 4. How do you evaluate the situation faced by Puig Data and Villar in August 2015? 1. Should your evaluation be Positive--that is, if you feel that Puig Ducis in on the right track prepare a list of specifie recommendations for consolidating the relationship with Dumatsu and to progressively in the sales volume to the Japanese market Should your evaluation be Neptive--that is, if you feel that Puig Data on the wrong wak then why you dink. Describe what you e as specifically wrong the export strategy. e implementation, or hot), explain how Puig Doria, should have acted in a different way to stan esporting to pudine the ser the core of action that are opear and recommend one of the Foc Table 1: Summary of Significant Points of Japanese Market Study A Bing Habits of the lapanese 1. Unmarried young females purchase the greatest amount of gold jewelry 2. Seventy-five percent of gold jewelry purchased is without gemstones, of jewelry with gemstones, 40% contains diamonds 3. Over os of females buy gold jewelry for themselves 4. The most popular price range of gold jewelry is $20,000 to 140,000 145 to 20 s.Over cox of females purchase a special discount or sale 6. lapanese ywelry consumers and to look for quality, placing great importance on the design. They are not Come with the name value of the famous brands." Chechtes Goewelry Markets in Spain 1. Source of purchase Spain? t all gold jewelry is purchased in jewelry stores, X in department stores, and the balance in other." 39% of all gold jewelry is purchased in jewelry stores, 28 in department stores, and the balance in 1. Purchaser profile sa percentage of all gold jewelry bought Spaines of purchases are made by women 44% by me 76% of purchases are made by women, 24 by men. 1. Cirche percentage of them beti Seeds. WWE 11 N. 19, watches 2x, and brooches 4 line 7. www.watches, and broaches Foc ilt = Spain: 64% purchased as a ph, 10% self-bought lapan to purchased as a gif, 2% self-bought 5. Occasion of purchase as a percentage of all gold jewelry bought Spain: 71 purchased for a special occasion such as Christmas or birthday, 29% for no speciales Japan: 3 phased for a special occasion, GSX for no special occasion Focus