What is fashion?
A nonverbal communication -
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| Term | Definition |
|---|---|
| What is fashion? | A nonverbal communication - |
| What is fashion about? | Trends-a continuous succession of stylistic changes |
| What is the Trickle Down Theory? | Fashion trends start among the upper class + fashion leaders, distributed through social hierarchy |
| What is the Trickle Up Theory? | Fashion trends start amoung younger or lower income groups - street wear |
| What is the Trickle across theory? | Fashion moves horizontally between groups of similar social levels - social media and influencers |
| What is fashion about? | Fashion is about creating the dream factor using image-makers |
| Is fashion only one business model? | No it is many, from Prada, to H&M to Zara etc |
| What is luxury? | Its a perception, changes across cultures and generations |
| Luxury KSFs are many, list a few? | -Outstanding quality - Timelessness - Heritage - Experience - Bespoke service |
| What year did the luxury sector face a crisis? | 2024 |
| Is the Luxury market growing? | Yes, constantly due to the emerge of new markets, expanding consumer base, products etc |
| From belonging to self-expression, What do we mean? | Belonging is about fitting in the elite, while being is about standing out as individual. |
| The pyramid of luxury is divided into three parts, what are those? | Absolute luxury -> Unique pieces, made to measure Lifestyle luxury-> Series production with great quality, brand identity and a sense of selectivity Attainable luxury -> High fashion content, accessible luxury, maybe a dior lipstick or a perfume! |
| The luxury pyramid creates a few KSFs general between attainable and luxury fashion! What are those? | - Authenticity - Experience - Storytelling |
| What is uber premium? | Everything that is truly beyond the reach of the vast majority of consumers. An exclusive personal experience |
| Masstige in the accessible luxury block of the luxury pyramid is about what? | - high end, prestigious characteristics, yet suitable prices and locations accessible to the mass consumer - Example is Chanel lipstick, Voss water etc |
| How do masstige brands compete through communication strategies? | - associating with influencers and celebrities - Artificially limited producs - Prime retail locations - Collaborations with designer brands |
| Victoria secret is a brand that moved between mass and prestige, What happended and why did it fail? | - Masstige formula -> luxury like imagery, mass availability - But VS focused to much on sex appeal and imagery. Brands need to balance prestige and mass relevance! |
| Why are brand collaborations good? | - They boos social media engagements - Its when high and low merge to reach price-sensitive customers |
| Give an example of masstige fashion collabs? | - H&M and Karl Lagerfeldt |
| To finalize, what is masstige about? | - Creating a holistic luxury appeal, without being true luxury. A luxury image, available to the mass consumer |
| What is luxury spending impacted from the most? | In times of uncertainty |
| Why is the luxury segment constantly growing? | - Growing middle class - Positive emotional state effect on people, a linkage with improved quality of life. |
| Name a few factors that makes the luxury markets situation more complex and turbulence across multiple axes? | - Continued disillusions, recalibrating price to value - Pressured distribution, a prioritisation of debt stabilisation and cash positioning is central - Tougher creative game - Growing scrutiny ->trade wars amplify headines |
| Is personal luxury goods a growing market? Why, why not? | - No, macroeconomic pressures and price fatigue is happening |
| Is the luxury market growing? Why or why not? | - Yes average, and sharp growing. |
| Whe talk about two bruised giants in the luxury market segment, what are those? | - China, US |
| What is happening in Japan and Europe? | Tourism is slowing down |
| What market segment is roaring? | The middle east |
| Category wise, there are three categories moving on, three not happening a lot, and three declining | - Jewelry Apperel Eyewear - Fragrences, Skincare, Make up - Watches, Leather, Footwear |
| Multi-brands have to do a structurally redefinition of the value proposition, why? | To make their value proposition better serve new consumer needs |
| Jewelry is a symbolic product, why? | It creates - Status - Prestige - Perception of exclusivity - A social role |
| What approaches exist to determine the value of a jewellery object? | - Cost approach -> The cost to replace or reproduce the object - Market comparison approach->similar object for sale - Provenance -> legal ownership of a jewel |
| The jewellery market can be segmented into three categories, what are those? | - Very high and high jewellery - Fine jewellery - Fashion Jewellery |
| What market of jewellery is growing, the branded or unbranded? | The branded market is growing |
| 4 Mega brands dominate the jewelry market, which four? | - Tiffany - Bvlgari - Cartier - Van chief & apels |
| There are three types of innovation regarding jewelry, what are those? | - Technological innovation - Aesthetic innovation - Functional and transformative innovation |
| What is the main challenge for jewellery luxury brands? | To have the right price at every entry point. In each segment |
| What does jewellery best sellers have in common? | - Simple codes, recognisable - Brand heritage |
| Omnichannels - Channels online, trying to create the same luxury experience has some issues in the jewellery market, why | - A very wholesale based industry - To expensive to buy online |
| Is the jewellery market growing? | - Yes especially with branded jewellery |
| What is the role of creative directors in the jewellery industry? | - defining brand identity and product innovation |
| What is a business model in this course? | - There is no single definition - Something with a method of doing business and how revenue is collected. It represents how businesess are organized and capture value! |
| What are the four main pillars of a business model? | - What - Value proposition - Whom - Client segment - How - Value chain - Who - Governance model |
| What is the business model in general for luxury brands? | - Product is king, - Timelessness, heritage, exclusivity - Vertically integrated both in retail and manufacturing for maximum control |
| The luxury industry is mostly belonged to big luxury conglomerates. What are the three biggest? | - LVMH -> Lv, Fendi, Dior - Kering -> Gucci, bottega - Richemont - Cartier Important that some are still independent. |
| What are the pros of luxury conglomerates? | - Financial assets - Talents attraction for design etc - Sharing managerial practises - Worldwide distribution - Bargaining power - Balance of risk through a portfolio |
| What are the cons of luxury conglomerates? | - Short term orientation if you compare to family run businesses - High turnover of managers and creative directors - Risk of brand dilution |
| What is the business model in general for fashion designers | - Clothing and fashion show for brand building - Different segments - Governance - vertically integrated family run businesses. |
| What is the business model in general for premium brands | -This is a bridge segment, trend, time to market, marketing is key - Generally multibrands! |
| What is the business model in general for retailers? | - The supply chain is key, innovation is key here - Public multibrands |
| How do fashion companies sell their clothes? | - Retail or wholesale |
| What is a online DTC business model? | - Direct to consumer through e-commerce and digital marketplaces. |
| Creating a competetive map, it is important to find strategic groups of brands. It is about finding what four aspects? | -Key drivers for competition - Positioning through drivers - Identifying clusters - Identify the KSFs for each cluster |
| Brands in the fashion pyramid are segmented into three segments. Luxury brands, Premium brands, Mass basic retailers. What is included in each block +give an example of a company! | Luxury brands - Haute couture, ready to wear, diffusion. Brands like Dior, Gucci Premium brands - Bridge brands between mass market - Brands like stone island Mass basic retailers - Mass market brands - Brands like H&M, Uniqlo |
| What will become the source of competetive advantage in the future? Products or innovation in business models? | Innovation in business models |
| What are Porters 3 generic strategies to obtain competetive advantage? | - Differentiation strategy - a uniqueness dimension - Cost&leadership strategy - lowest cost, best quality - Focus strategy - cost focus and differentiation focus |
| A competitive advantage based on a differentiation strategy is about what? | Differentiating by creating unique value for the customer using the brands products. |
| When differentiation is a key success factor, the primary sources of competitive advantage are? | - Differentiation of services - Image and brand differentiation - Differentiation in variety, style and atmosphere - Product innovation - Changes in product and market mix |
| How does brand create value for a company? | - By potential to put premium prices - Increasing bargaining power - Allowing brand extensions - Internationalisation - Customer loyalty - Asset difficult to imitate by others |
| What are brand associations? | Defined by consumer associations - Identification - Affinity - emotional associations |
| What is a trademark? | - A sign, symbol, logo, word distinguishing one brand from another. - For example chanels double C |
| The brand signature is built on four pillars, what are those? | - heritage - stylistic identity - communication identity - retail identity |
| Why is heritage important? | - Not just a brand story, it drives customers to trust, loyalty and timelessness |
| There is a dilemma between heritage and innovation. Why? | - To much innovation -> you lose your sole - To little innovation -> You become boring |
| What is brand management about? | - Brand identity definition - Customer and competetive intelligence - Collection management - Business performance - Line development |
| What is line extension? | Same brand, same product category, different target like womens, mens, kidswear |
| What is brand extension? | Using the same brand, entering a different product category. Example going in to sunglasses if you are creating bags |
| When talking about the french model in fashion, What three aspects is it associated with? | - Tradition and individualism - Couture and accessories - Art and provocation |
| The french model is associated with the birth of fashion. Why? | - the haute house, fashion houses that met standards for the industry, a marking from the government grown in france. |
| What is haute couture? | - It is the dream, one off pieces for specific clients. - To qualify as an official Haute Couture house, members must design these crazy pieces. |
| Chanel (french company) is a privately owned business, What is its competetive advantage, and how can it keep its name? | - they focus on exlusivity and specialty - iconic pieces, fragrences, - Karl lagerfeld - exclusivity and controlled distribution - master storytelling |
| LV is LVMHs most succesful brand, what are LVs competetive advantage? | - Heritage - Manufacturing control - Fashionability - Cultural branding |
| So in general, what differentiates the french model? | - Clothing = Image builder - No young lines - Growth through brand extension - Supply chain control - Cinglomerate strategy -> the big get bigger - Strong marketing |
| Italian fashion is about many different business models. The italian competetive advantage derivates from three main conditions and aspects | - Designers-entreprenours from italy - Fashion pipeline - the extent of manufacturing, and renume in italy - Nation - landscape, art, culture |
| There are cracks in the Italian model in terms of brands, many about greenwashing and poor labor treatment, name a few | - Armani -> chinese workers getting payed bad - Dior -> illegal workshops |
| Dolce Gabbana is a prime example of the Italian model, why? | - orgins from sicily - Inspiration from italian culture and hollywood glamour |
| What is D&Gs competetive advantages? | - Vertical integration - Sold in house - Italian culture base, hollywood glamour inspiration |
| Zegna was a textile mill, and now is a luxury company. What is their competetive advantage? | - Vertical integration -> from sheep to shop - Heritage&innovation - Brand evolution |
| What does the Italian model follows the path to grow mean? | - Staring in clothes, extending to diffusion lines, brand extensions, moving designer driven brands to vertically integrated companies, often family run and direct controlled |
| What is the fashion filiera? | - The pipeline, the vertical system beginning with the production of raw materials extending to manufacturing and distribution. |
| How long does it take from conception of color and fiber to the presentation of the collections in stores? | - nearly two years |
| Textile fibers can be classified into three main cathegories, what are those? | - Natural - Artificial man made - Synthetic |
| What is a natural fiber? And what is its characteristics? | - Obtained from nature - Cotton, Wool - Charactarized -> sustainability |
| What is a artificial fiber?And what is its characteristics? | - Made from a renewable raw material. Produced to chemical process. Like Lyocell - Charactarized -> Partly sustainable |
| What is a syntethic fiber? And what is its characteristics? | - Come from petroleum and made in laboratories. - Polyester, Nylon - Charactarized -> Not very sustainable |
| What fiber surpassed cotton in 2002? | - Polyester |
| What is the profit margin markup industry standard in fashion? | Between 2.2x and 2.5x, but many retailers markup as high as 4x - Scale is a key factor |
| What is ingredient branding? | - Making the invisble visible. Co branding strategy where the B2B actors become visible in the B2C market. Showing the orgin of raw materials or else. - Exempel a lenovo computer with a intel processor. That is ingredient branding - Ingredient branding strategy -> B2B2C model - Ingredient branding is about promoting the ingredient |
| What are the two key principles for ingredient branding strategy? | - The push effect -> Marketing efforts at the intermidiate level of the value chain. - The pull effect -> Marketing efforts target the end consumer |
| Whats the difference between cobranding and inbranding in ingredient branding? | - Cobranding -> Gucci and north face - Inbranding-> north face and goretex (ingredient) |
| How can ingredient branding contribute to value creation? | - Value for final customer - Educate customer - Engage customers in the process - Increase customer loyalty - Justify premium prices |
| So apparel and accessories emerge from a complex chain of stages and activites. What does ingredient branding bring to the table? | - Suppliers get a unique ability to show their component brand and create more value. |
| What is make to order logic? | Produce only the portion of the seasonal offer that has already been sold to the client |
| What is make to stock logic? | Producing a offer, based on sales forecasts, production planning, production launch, sales, |
| The traditional business model is desing-> manuacturing -> stores-> customers, but the fast fashion retailers have a different approach. How does it look? | Customers -> Stores -> Design -> Manufacturing |
| What are som key advantages with the fast fashion business model? | - Assortment changes - Quick response to trends - Fashionable designs at affordable price - Standardized store concept - High profit |
| Is fast fashion retail or wholesale? | 100% retail! |
| What is fast fashion? Is it a retail format? | - No it is a strategy adopted by leading speciality chains based on shorter and shorter product lifecycles and an efficient supply chain. - Specialty chains -> sell their own branded production. Produced by suppliers, some directly owned, some not |
| How does H&M and Inditex(Zara, pull&bear, massomodutti) differ? | - Inditex is vertically integrated with everything, Europe and north africa produce - H&M has outsource production to Asia |
| What is ultra fast fashion and what brand comes to mind? | Shein, algorithmically pumping out thousands of styles to fast for any quality or anything. |
| Has fast fashion evolutionasied make to stock or market? | Make to stock! |
| What is sustainability? | Meeting the needs of the present without compromising the ability of future generations to meet their needs Creating long term shared value for the company and its stakeholders |
| What are the three Ps of the 3P model? | People, Planet, Profit |
| What two Ps can be added to the 3P model? | Peace, Partnership |
| What is ESG? | Environmental social governance. - How a company manages nature impact, people effecte, governance structures and accountability for stakeholders |
| Sustainability can be a separate function or a diffused process. What does this mean | - Separate function. A own deparment for this, Fully commited individuals for this - Diffused - indluced, all functions are activly involved. The best is a combined approach |
| The fashion industry has a dramatic impact on the world. What are some ways it destroys our world? | - Pollution - Toxic chemicals - Waste - Exploitation of resources - Energy consumption - Water scarcity |
| What do brands do with unsold inventory? | - Outlet stoores, private sale events, off price clearence |
| What is grey market risk? | Unsold goods leak to unauthorized resellers |
| What is circular economy about? | Upcycling, recycling, downcycling |
| What is a digital product passport? | - Tool embedded in products to give detailed, traceable, verafiable info about the product! |
| Many brands have entered the second hand market, even the luxury ones, name one: | Rolex pre owned |
| What is greenwashing? | Using sustainability as a pr tool, but not living up to that standard |
| What are some cathegories where fashion can bring sustainability to the table? | - Sustainable apparel - New fibers - Regenerative sourcing - Design - Manufacturing - Packaging - Reuse - Communication |
| What is one of the most inspirational sustainable companies? | Patagonia |
| What is style? | A distinctive form or quality, a manner of expression replicated |
| What do we mean by stylistic identity? | Permanent set of stylistic codes, these codes define the brand |
| Stylistic codes are important why? | Makes the brands easily recognizable. |
| Bvlgari uses stylistic codes in brand extension. How? | Same shapes as the jewellery can be found in for example eyewear |
| What is a seasonal collection defined by? | Size - total number of SKUs - stock keeping unit Structure/architecture - color stories, outfits? Level of innovation- new pattern?, new fabrics, product refresh? |
| There are three categories of collections, what are they? | - Image - high seasonal fashion - Core - complete range to cover needs - Basic - Never out of stock |
| What is a merchandiser? | A manager that focuses on the lifecycle of the product itself by product planning, trend analysis, inventory management, pricing to stock allocation, tracking to store display and brand image. The goal is to meet the customer needs while maximizing profit |
| There are 3 types of merchandisers, Collection, Retail and visual. What is the difference? | Collection - collection meets customer needs, pricing, product planning Retail merchandiser - Focus on the customers experience in store, right products are available in right quantitiy Visual merchandiser - astethic presentation of products |
| Collection merchandising is broken down into 4 moments, what are those? | Collection briefing, Collection development, Collection presentation, Collection launch |
| The retail merchandising is what? | Connect planning and distribution ensuring store assortment and sales targets |
| What is PIDL (product ideation, development and launch) the process? | - Research on fashion trands - Collection plan - Collection development - Collection presentation |
| When we say that fashion product development is run in overlapping cycles what do we mean? | - Research and concept planning starts more than a year before product release, so different cycles are running at the same time. |
| What is the merchandising plan? | A plan showing the complexity level, definition of product range, price positioning, target gross margin, product cost structure, choice of carry over (the creation) |
| To sum up product development in fashion what are the four steps? | 1. Inspiration 2. Fabrics/Color selection 3. Samples 4. Showroom set up |
| What do Rocca do? | Sell best jewel and watches from the most prestigues brands |
| Is the watch market recovering after covid? | Yes according to rocca! |
| According to rocca the customer journey is segmented through a multichannel approach, what does this mean? | Connecting the whole thing, both digital and physical - Digital marketing, ecommerce, Digital crm - advertising, boutique experience, post sale service, relationships |
| What does a luxury experience mean to rocca? | Exlusive locations, Luxury environment, Professional sale approach, Top brands, exclusive events, brand experience |
| Selling watches is only about the quantity? | No it is also about the price, in relation to quantity |
| What are moleskine selling? | They sell a bit of culture, the possible creativity, not the notebook itself |
| What is Moleskine’s heritage based on? | The legendary notebooks used by artists and thinkers such as Hemingway, Picasso, and Chatwin. |
| What is “Detour" by moleskine? | A travelling art exhibition |
| Moleskine places themself in the middle of luxury and premium stationary, what is their brand identity according to them? | - a cultural and mindstyle brand |
| What is the main takeaway from moleskines strategy? | Transforming a simple object (a notebook) into a global symbol of creativity, culture, and self-expression. |
| What is a retailer? | Retailers engage in commercializing goods directly from manufacturers. For examle - Nike retail (retail) - Footlocker (nike wholesale) |
| Fashion has long been a multichannel, One brand has many different distribution channels. Name a few: | - Flagship stores - Shop in shop - Corners - Wall units - Outlets - E-commerce |
| What is the trend in retail now regarding control? | Fashion companies become more vertically integrated. Brands evolve into retailers |
| What are some of the main retail KPIs? | - Conversion rate - visiting purchases - Repurchase rate - Average transaction value - Units per sale |
| What is upselling? | Selling more expensive choice of product |
| What is cross-selling? | Selling complementary products |
| What are the key players in retail? | The client and the Client advisor |
| What is the client advisors main role and responsibility? | - Crosssales, upsales - Customer experience - Brand marketing |
| In terms of experience, what are the stores functions? | - They are many things, also tourist attractions. - Brands sell experience rather than product |
| Why pop up stores? | They increase brand visibility |
| What is gamification? | For example balenciaga partnering up with fortnite creating a digital skin collection |
| Combining digital and in store, from multichannel to omnichannel. What is a omnichannel? | Brining the high end experience into the digital space |
| What is CRM? | Customer relationship management - manage and analyze customer interactions and data, improving business relations assisting customers |
| What is the role of the CRM manager? | - Develop customer profiles - Analyze data - Set KPIs - Customer service issues -Train sales staff |
| What is Miamo? | A italian science driven skincare brand, focusing a lot on data driven strategy |
| What is important with skincare? | No skin is the same, everything has a specific solution. Miamo has a skin layering system |
| About the Italian skincare market, What is a outstanding market growth segment? | The local market growth |
| What are Miamo clients? Where do they segment? | The pharmacies, they go there before the doctor, the pharmacy is the key distribution channel. |
| What are MIAMOs key drivers, three of them | - premium and prestige skincare is on rise - Technology like AI is a driving demand for personalized skincare solutions - Personalized professional consulting, online or offline, enhance consumer trust and improves conversion during purchase |
| What is MIAMOs business model? | - Premium pharmacy ( a new scientific brand) - E-commerce (A company in the company) - Cross selling strategy - "A doctors brand" - Main focus is to create solutions in skincare |
| Can we say that MIAMO strives vertical integration? | Yes, in house supply chain control is something valued, they want full control, no distributers except pharamacies |
| How can MIAMO stay "loanly" in their segment? What have they done? | Resarch and innovation - 3 patents, 2 pending |
| In what terms are MIAMO sustainable? | Refillable products, eco-packaging, monitor impacts, ISO Certifications |
| Does MIAMO omnichannel? | Yes, A multichannel approach with focus on Omnichannels |