Fashion Business Strategies and Trends

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Questions and Answers

What primarily distinguishes fashion from luxury?

Fashion reflects current trends and is accessible to a broader audience, while luxury emphasizes exclusivity and timeless value. (correct)

Fashion is static, while luxury is ever-changing.

Fashion is based on tradition while luxury is spontaneous.

Fashion emphasizes exclusivity, whereas luxury focuses on trends.

Which theory describes the upward movement of trends from lower-income or younger groups to older or wealthier groups?

Trickle-Up theory (correct)

Social Influence theory

Trickle-Across theory

Trickle-Down theory

How do fashion trends primarily evolve?

By government regulations in fashion industries.

Driven by media, arts, and sociocultural evolution. (correct)

From direct consumer feedback only.

Through traditional craftsmanship practices.

What is the 'Dream Factor' in fashion?

An approach to convey an enticing image through emotional storytelling. Signup and view all the answers

Which statement best defines a business model in the context of fashion?

It outlines how a company creates, delivers, and captures value. Signup and view all the answers

What is the primary goal of an omnichannel strategy?

To deliver a unified, integrated experience across all shopping channels. Signup and view all the answers

Which of the following best distinguishes CRM from clienteling?

CRM emphasizes service-based relationships, whereas clienteling is centered on loyalty-driven interactions. Signup and view all the answers

What role does a CRM Manager play in a business?

They oversee customer databases and analyze data for marketing purposes. Signup and view all the answers

How does the customer journey contribute to the overall shopping experience?

It includes marketing tools that engage customers before, during, and after purchase. Signup and view all the answers

What are brands focusing on in today's market according to the provided content?

Creating individualized experiences that promote consistent brand presence. Signup and view all the answers

What dimension of sustainability focuses on the fair treatment of workers and communities?

People Signup and view all the answers

Which aspect of ESG specifically evaluates a company's relationships with external stakeholders?

Social Criteria Signup and view all the answers

Which of the following is NOT a factor contributing to environmental harm in the fashion industry?

Natural fiber sourcing Signup and view all the answers

What economic model promotes the concepts of make, reuse, and recycle?

Circular Economy Signup and view all the answers

Which term describes misleading marketing where companies falsely present themselves as environmentally friendly?

Greenwashing Signup and view all the answers

What is the primary goal of economic sustainability in the context of fashion?

Creating value and ensuring financial viability Signup and view all the answers

Which practice involves converting discarded materials into products of equal or higher value?

Upcycling Signup and view all the answers

Which of the following fibers must meet strict environmental standards to be considered certified organic?

Cotton Signup and view all the answers

What is the primary focus of Rocca's customer experience philosophy?

Client retention Signup and view all the answers

Which of the following is NOT an element of the luxury experience at Rocca?

Discount pricing strategies Signup and view all the answers

How does Rocca enhance client loyalty after a purchase?

Birthday reminders and follow-ups Signup and view all the answers

What is the purpose of the appointment-only policy at Rocca?

To ensure high-quality service Signup and view all the answers

What type of approach does Rocca utilize to guide the customer journey?

Multichannel approach Signup and view all the answers

Which statement best describes Rocca's CRM system?

It integrates customer data such as preferences and purchase history. Signup and view all the answers

What unique offering does Rocca provide in addition to product sales?

Second-hand evaluations Signup and view all the answers

What is the composition of Rocca's advisory team?

A mix of junior and senior advisors Signup and view all the answers

What tone do luxury brands typically adopt to engage their audience?

Conceptual and challenging Signup and view all the answers

Which brand is noted for blending wit with elegance in its communication?

Tiffany Signup and view all the answers

What visual element is particularly associated with reinforcing brand identity in luxury brands?

Consistent color schemes Signup and view all the answers

What is a key characteristic of the content produced by brands in the digital age?

Authenticity over perfection Signup and view all the answers

What is the aim of inclusive, human-centered content according to current branding trends?

To create empathetic connections Signup and view all the answers

What innovative approach are brands exploring to engage their audiences?

Humanized AI and unconventional interactions Signup and view all the answers

What is the growing emphasis on user-generated content (UGC) intended to foster?

A sense of community and brand loyalty Signup and view all the answers

Which aspect is commonly featured in the dreamlike aesthetics of luxury brands?

A sense of luxury and escapism Signup and view all the answers

What is a crucial factor for building trust on platforms like TikTok when working with influencers?

Authenticity Signup and view all the answers

Which type of innovation is primarily driven by scientific advancements?

Technology Push Signup and view all the answers

What is the primary goal of assessing talent for brand alignment?

To ensure they resonate with the brand's tone and message Signup and view all the answers

Which advantage is associated with late-movers in the market?

Cost-saving by learning from first-movers' mistakes Signup and view all the answers

What primarily differentiates creativity from innovation?

Creativity generates unique ideas, whereas innovation implements those ideas to create value Signup and view all the answers

In terms of measuring the effectiveness of campaigns, what does ROE stand for?

Return on Empathy Signup and view all the answers

Which of the following categories describes companies that adapt to current trends to survive?

Survivors Signup and view all the answers

What is essential for long-term relationships with brand ambassadors?

Fostering authentic connections Signup and view all the answers

Study Notes

Introduction to Fashion and Luxury

Fashion communicates social status, cultural values, and individual expression through non-verbal communication.
Luxury focuses on exclusivity and timelessness, while fashion reflects evolving trends.
Fashion trends are influenced by media, arts, and sociocultural evolution, reflecting how industries evolve.
Trends are a form of planned obsolescence, needing to be regularly replaced.
Trickle-down theory: trends start among the upper class and move down to the masses.
Trickle-up theory: trends begin with lower-income or younger groups, moving upward.
Trickle-across theory: fashion moves horizontally between similar social levels.
Often spread by social media and influencers.
"Dream Factor": Fashion communicates an image that entices consumers through emotional and visual storytelling.

Business Models in Fashion and Luxury

Fashion reflects current trends and is accessible to a broader audience.
Luxury emphasizes exclusivity, craftsmanship, and timeless value.
Fashion pyramid demonstrates different brands based on price, quality and image.
Sustainable Fashion is an emerging trend due to environmental concerns.
Sustainable Fashion business models include Luxury brands, premium brands, and fast fashion retailers.
Business model components include value proposition, client segment, value chain and revenue/governance model.
Key success factors in luxury include experience, heritage, and outstanding quality.

Risk of Brand Dilution

Fashion Designers often cover multiple segments.
Premium Brands are primarily marketing-driven, operating between luxury and mass markets.
Retailers are leveraging technological innovations for effective value chains.
Direct-to-Consumer (D2C) models bypass traditional retail and directly connect with consumers.

Brand Management in Fashion

A brand is an asset defined by consumer associations.
Brand equity is the value a brand adds to a product based on perception.
Tangible associations include visual language (name, logo, colors).
Emotional associations are feelings and identities evoked by the brand.
Trademark is legal protection of a brand, preventing its use by others.
Differentiation creates a unique value proposition.
Differentiation strategies include unique designs, brand imagery, or product quality
Primary sources of competitive advantage include differentiation of complementary services, image, or quality.

The Brand Signature

Brand signature combines heritage, style, communication, and retail identity.
Stylistic identity encompasses distinctive codes of fabrics, textures, colors, and silhouettes.
Communication identity refers to tone of voice, media, and models used to communicate messages.
Retail identity involves the physical store experience, layout, lighting, and service.
Heritage includes traditions, mythology, and history, building trust and loyalty.

Luxury and Masstige

Experiential luxury focuses on the overall experience, rather than only the product.
Sustainable luxury incorporates environmentally friendly practices.
Digital luxury emphasizes online presence and digital marketing strategies.
Uber luxury is extremely exclusive while Attainable luxury is more affordable.
Luxury evolution is from exclusivity to diffusion. Luxury products are aimed at broad audiences.

Masstige

Masstige blends mass-market and prestige elements, often offering luxury products at affordable prices.
Masstige brands often leverage designer collaborations or high-profile marketing partnerships.

Nation Branding in Fashion: French Model

France's nation branding is built on art, innovation, tradition, and individuality.
Couture and accessories are important elements impacting the image and prestige of French fashion.
The role of haute couture is significant as it's a display of artistry associated with prestige, heritage, and exclusivity.

The Italian Model

Italian fashion emphasizes beauty, sensuality, and craftsmanship.
It integrates social values, art, and culture.
Designer-entrepreneurs have played an important role.
The fashion pipeline represents a strong relationship between different sectors within the industry.

Fast Fashion and its Challenges (Make-to-Order vs. Make-to-Stock)

Fast fashion relies on make-to-stock for rapid production.
Make-to-order manufacturing involves producing goods only after receiving orders from clients.
Make-to-stock manufacturing creates goods in advance based on expected sales.

Vertical Integration

Vertical integration refers to control over the entire production process from product design to distribution.
Companies like Zara have vertically integrated the production processes, enabling them to adapt quickly to consumer trends.

Ingredient Branding

Emphasizes the value of components or materials used in the product, for example, the use of recycled or organic materials.
Ingredient branding seeks to increase consumers' awareness of the components in products.

Sustainable Fashion

Sustainable fashion considers ethical treatment of workers, environmental impact, and economic viability.
Consumers increasingly prioritize these factors when making purchasing decisions.
Sustainable fashion practices focus on eco-friendly fabric choices, minimizing waste, and fair labor practices.

Stylistic Identity and Merchandising

Style, stylistic identity, and seasonal codes determine the brand identity and strategy.
The style of a brand should be unique. Seasonal codes represent a stylistic identity that is communicated with temporary elements.

Collection Development and Structure

Collection architecture specifies the collection structure to include pre-collections, main collections, and flash offerings.
The product segmentation includes basic (low-margin, high-volume products), core (mid-priced products), and image (high-priced products).

The Beauty Industry

The beauty industry is a diverse and significant global market.
It includes various product categories like perfumes, makeup, skincare and cosmetics.
Consumer behavior and trends are influenced by various factors such as social media, fashion, and cultural preferences.

Omnichannel Strategy and CRM

Omnichannel strategy uses multiple channels to interact with customers and increase brand awareness and loyalty.
CRM (Customer Relationship Management) system collects customer data and interactions for fostering long-term relationships.
Customer advisors use CRM data to provide personalized experiences.

Digital Transformation in Fashion Communications

Digital platforms are increasingly important in fashion communication.
Fashion brands use social media, e-commerce, and user-generated content to engage with customers.
Digital transformation enhances brand identity and memorability among consumers.

Ray-Ban Disruption

Ray-Ban's turnaround showcases the importance of innovative strategies and new management approaches when a brand experiences decline.
It highlights the potential for a company's turnaround with a complete shift in strategy.

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Description

Test your knowledge on the distinctions between fashion and luxury, the evolution of trends, and the roles within fashion business models. This quiz also explores the concepts of customer relationship management, sustainability, and the economic models shaping the industry today.