Fashion Exam Review PDF

**[Fashion Exam Review]** 1. **What are the 3 major groups in the fashion industry?** Corporate conglomerates covering the whole market (LVMH, Kering, Richemont). Luxury brands join together to have more strength in the luxury sector, to achieve synergies, share manufacturing materials, reduce c...

**[Fashion Exam Review]** 1. **What are the 3 major groups in the fashion industry?** Corporate conglomerates covering the whole market (LVMH, Kering, Richemont). Luxury brands join together to have more strength in the luxury sector, to achieve synergies, share manufacturing materials, reduce costs and because it is a way to expand. **[LVMH]** Born of the association in 1987 of two groups, the group led by Bernard Arnault it is composed of more than sixty brands operating in the sector of: - **Wines and spirits** (Moët, Krug, Belvedere, Veuve Clicquot, Ruinart,\...), - **Fashion** (Christian Dior, Louis Vuitton, Fendi, Kenzo, Givenchy, Loewe, Celine\...), - **Watchmaking and jewelry** (Tag Heuer, Bulgari, Chaumet, Hublot, DeBeers,\...), - **Cosmetics and perfumery** (of the same fashion and jewelry brands) and - **Distribution** (Sephora, Le Bon Marché, La Samaritaine,\...) **[Kering]** Founded in 1963, the group has specialized in luxury products, when in1999 Gucci Group bought the company. Previously owned La Redoute, Puma and FNAC. Today it is run by François-Henri Pinault, and regroups: - **Fashion** (Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni\...) - **Watchmaking and jewelry** (Girard- Perregueax, Boucheron, Pomellato \...), - **Eyewear** (Kering Eyewear, same fashion brands of ownership and others) **[Richemont]** Richemont is a Switzerland-based luxury goods holding company founded in 1988 by South African businessman Johann Rupert. Through its various subsidiaries, Richemont produces and sells jewellery, watches, leather goods, pens, firearms, clothing and accessories. - **Fashion** (Chlóe, Alaïa) - **Watchmaking and jewellery** (Cartier, Buccellati, Van Cleef & Arpels, IWC, Piaget\...), 2. **Definition of luxury:** Luxury is: - a "way of living" - a set of "attitudes and values" - a specific "consumption habits" The theory of the leisure class" (1899) - Economic criticism associated with unnecessary consumption. - The need to have different levels in society and social integration. Luxury is a **paradox** in this consumer society: - Inaccessible but desired. - Desired, dreamed of, and then rejected, forgotten. - Based on the human impulse of the personal need for aesthetics and self-expression, as well as the desire for admiration and recognition from others. Luxury is a **complex** and **subjective** phenomenon. - Each element has a personal life cycle, difficult to predict. - The pleasure that comes from the enjoyment of the senses. - Social recognition, distinction and need for differentiation. Luxury in hospitality is more than hotels, it is restaurants, jewellery, boutiques, art, gourmet things\... It\'s everything that surrounds the customer\'s luxury experience. Luxury is not only for rich people, but anyone who wants to consume luxury. Brands must adapt to their audience and their vision as a company and choose who their potential customers are. Synonyms: 1. Affluence (Afluencia) 2. Delight (Deleite) 3. Wealth (Riqueza) 4. Comfort (Comodidad) 5. Exclusivity (Exclusividad) 3. **Beauty & Jewellery:** The luxury beauty and jewelry industries have a symbiotic relationship with the luxury fashion industry, often collaborating to create high-end consumer experiences. Luxury fashion brands like Chanel launch exclusive beauty lines, such as cosmetics and fragrances, to enhance brand cohesion and appeal to a broader audience. This collaboration allows fashion brands to: 1. **Market Growth through Different Demographics:** Beauty products cater to diverse consumers, helping luxury brands reach various demographics. 2. **Different Brand Extension:** Offering cosmetics and fragrances allows luxury brands to diversify their products and create a comprehensive lifestyle experience, increasing brand visibility and loyalty. 3. **Importance of Beauty Ambassadors as Prescriptors:** Influential figures endorse luxury beauty products, enhancing their perceived value, reinforcing the brand image, and attracting a wider audience. Integrating jewelry products into the luxury fashion industry fosters market growth, enables strategic brand extensions, and leverages the influence of beauty ambassadors to shape consumer preferences. 1. **Complementary Aesthetics:** Luxury jewelry lines enhance the brand\'s visual identity, offering a cohesive style narrative. 2. **Brand Extension and Lifestyle Appeal:** Jewelry lines expand the brand\'s reach and appeal. 3. **Collaborative Collections:** Partnerships between fashion and jewelry designers create unique, limited-edition pieces that attract enthusiasts. 4. **Celebrity Endorsements and Red Carpet Presence:** These collaborations build brand loyalty and attract consumers with high-end, curated products. In summary, incorporating jewelry into luxury fashion facilitates market expansion, strategic brand extensions, and leverages beauty ambassadors to boost brand desirability and sales. Jewelry Lifestyle Partnerships: (leer los ejemplos del PowertPoint) - Rolex X Golf - IWC X Mercedes-AMG - Cartier X Net a Porter - Hermes X iWatch 4. **Why brands do product extensions:** **Strengthen the brand's core and exploit its full potential.** A luxury brand must clearly communicate what it represents in everything it does: the quality and design of its products, the appearance of its stores, and its advertisements. Its essence and identity must be clear to its target customers and consistently reinforced. Switching too soon to unrelated product categories and taking unexpected directions can create complexity and eventually harm the brand. **Promote the brand's lifestyle message across touch points.** Once a brand has clearly communicated its message through its core products, stores, and advertising, it can start expanding into lifestyle offerings. It can use different touchpoints, like social media or sponsoring events, to convey its lifestyle proposition. The brand can also expand into related product categories that fit well with its image, while maintaining its distinctive design language. **Expand into categories that embody the brand's identity and strengthen its association with a luxury lifestyle.** Over time, a luxury brand can offer a wide range of products and experiences, as long as everything remains true to the brand\'s origins. Any new product should be connected to the brand\'s core; consumers should easily see the connection between the new categories and the brand\'s main products. Brand extensions that stray too far from the brand\'s roots can be harmful, as they may come across as crude commercialization and drive away loyal customers. 5. **Emotional VS Rational:** When buying luxury products, two factors come into play: emotional and rational. Most of the time when we buy luxury products we do so emotionally, that is why luxury brands always try to captivate customers through emotion, but there must be a balance between both factors since when purchasing the product, Also at stake is the rational factor such as the money I have or the qualities of the product. **Traditional marketing** is based on the **NEED** It takes a product that covers an existing demand and tries to prove that it\'s the best in its category. **Luxury marketing** is based on **DESIRE** It creates a need where previously was nonexistent **[Reasons:]** 1. Luxury purchases are irrational decisions. 2. Humans have a natural way to focus on positive elements ignoring disadvantages. 3. Luxury goods are powerful tools to access the feeling of belonging to a group. 4. Low self-esteem persons are more likely to become luxury goods clients. 5. People give natural superior consideration to products branded with luxury names. 6. Non-luxury goods are perceived as inferior regardless quality and features. 7. Luxury goods have a direct link to a sens of accomplishment. 8. Search for authenticity and sentimentality to the item. 9. Sustainability. 10. CRS. 6. **Luxury and the Moder Consumer** Historically, luxury fashion was defined by quality, exclusivity, and exceptional customer service, with high-quality materials and superior craftsmanship. While this classic concept once satisfied buyers, today\'s consumers now seek customized and engaging experiences that make them feel special and align with their personal values. Gen Z is often seen as a threat to traditional luxury retailers. Although they have less money than older generations, they still have a big impact on the luxury fashion industry. ✓ Luxury used to be about exclusivity, but now it\'s driven by consumer opinions and trends popular with young people. Luxury is no longer just for the rich; it\'s accessible to everyone. ✓ It\'s not just about the brand name on the clothing. The quality, story, and sustainability of a product are also important and create the overall experience. **[What is "New Luxury]"?** - A term describing how the idea of luxury is changing. - As the world advances, digitalization speeds up, and the average consumer becomes more informed. What was once only for high society is now more accessible to everyone. - According to High Snobiety, the new luxury is not just about what you wear, but also what you know. It\'s more than just status and quality. - Luxury consumers now want more emotional fulfillment from their purchases. - They seek authentic, ethical, unique, exclusive, and personalized experiences. - Sustainability is also important as consumers become more eco-conscious, influencing almost every buying decision. Interfaz de usuario gráfica, Texto, Correo electrónico Descripción generada automáticamente 7. Communication. Imagine that you are going to launch a new store and you want to use communication tools. **[Types of communication:]** - **Product:** the product in itself, within the collections season after season and any type of launch in the market. - **Brand:** the DNA and values behind that product. - **Company:** corporate level announcements. **[Types of materials:]** - **Press releases** brand announcements and news - **Images:** product, runway, behind the scenes,... - **Videos:** product, runway, behind the scenes, fashion films... - **Lookbooks** - **Catalogues** - **Invites** **[6 main Tools:]** **Public Relations:** aims to promote positive relationships between an organization and its key stakeholders. The goal is to influence their feelings, opinions or beliefs about a company or brand. **Advertising:** tactic involving paying for space to promote a product, service, or cause and entice them to buy the company's products or services. **Product placement**: product inclusion in film or TV in a way that the element seems naturally in place or through celebrity endorsements. **Brand ambassadors**: representations Sponsoring (sport, cultural, artistic \...) **Events**: creating experiences around the brand: store openings, presentations, runway shows, dinners, awards,... it is the moment of engaging with your different audience. **Digital**: any type of online action, most common website and social media **[Other Tools]** **Co-branding:** Strategy in which two existing brands are paired together to create a new product offering. This partnership extends to advertising, product distribution or product development activities. A way to achieve: - Market growth - Expand customer base - Introduction of new products - Sharing costs **Fashion Films**: The Accessibility of fashion shows has made them loose that emotional connection: New format through Fashion Films: seduction and entertainment. Transition from storytelling to storydoing Reasons to create fashion films: - Brand awareness - Aspirational dream of the house values - Media coverage - Interact with key public - Sell product **Patronage:** is the support, encouragement, and/or financial aid that an organization or individual bestows on another. Patrons operate as sponsors. Sponsorship of artists and the commissioning of artwork is the best-known aspect of the patronage system. Example: Bulgari partnered the Victoria & Albert Museum in London for 'The Glamour of Italian Fashion' (1945--2014) exhibition. **Artist Collaboration:** is established through a classic business relationship between the artist and the brand. The artist agrees to create a product or a line for the brand within a given period and receives remuneration in return. Example: Louis Vuitton has developed effective partnerships to help the brand rejuvenate its label with artists such as Jeff Koons. **A foundation:** is a legal categorization of non-profit organizations that typically donates funds and support or provides the source of funding for its own charitable purposes. A foundation\'s purpose is to develop general interest with a non-profit goal. Example: The Cartier Foundation is a Mecca of contemporary art. **Mentoring** is a relationship in which a more experienced or more knowledgeable person helps guide a less experienced or less knowledgeable person. Example: Rolex launched its artistic mentoring programme in 2002. 8. **[Branding the product]** Process of building a brand. The strategy to manage assets linked either directly or indirectly, to a commercial name and its corresponding logo or symbol. Requirements to become part of the fashion luxury market: - Quality of raw materials - Quality in manufacture - Creative and originality of the design - Uniqueness - Coherency within the brand universe - Sustainability: related to materials and manufacturing BRAND= PRODUCT + CULTURE / DNA /IMAGE /CONCEPTS / VALUES The brand is the combination of **tangible** and **intangible** attributes symbolized by a trademark which, if properly managed, creates value and influence. The purpose of a brand is to ensure relationships that create future benefits by increasing the presence and customer loyalty. Brands simplify decision-making processes of buying and represent both a guarantee of quality, and a credible alternative to competitive offerings. **[Brand Attributes:]** - **Confidence:** When the brand meets expectations - **Value:** Yet it can be quantified and see exactly what percentage is the one that brings to the company - **Warranty:** Achieved through the reputation it has built on a good product/service. - **Loyalty:** developing plans and actions for that loyalty will be consolidated so that our customer does not go for the competition. - **Brand experience:** is created in the minds of consumers when contacting some of the brand contact points. **[Tangible Elements:]** 1. **Naming:** Choosing a good name will help to brand: - Report a territory of origin. - Report the characteristics of the garment or materials used. - Describe the product sold. - Convey an attitude or a lifestyle. - Appealing directly to the target audience. - Create an authentic brand category. Fashion companies before the launch of a new brand focus on two major aspects: - Registration of the product/name - Legal protection in key markets where the brand will act. **Morphology:** the brand must be easy to read, write, pronounce and remember. **Name Semantics:** You must analyze the meaning of the brand in different languages.This is to prevent the name has meaning or \" harmful \" cultural connotations for the business. **Strategy:** The name must respond to a business\'s strategy. The name chosen will run the a certain personality and attitude in regards to the brand. 2. **Logo:** The logo of a fashion brand is reminiscent of an experience rather than an activity. Fashion brands could be grouped into 2 groups of style: - Figurative - Abstract In turn, the subgroups within these are the following categories: - Typographic - Vegetal Animal - Heraldry & Crowns Seaworld 3. **Visual Identity: Packaging**  - **Packaging** is the first contact that the buyer has with the product. - Sometimes the packaging is a surprise for the buyer: the time of purchase is a first encounter. - Packaging can be an extension of the product, unnoticed, having a functional purpose or be a new and different product, consistent with the purchased product. - Unboxing experience enriches and completes the shopping experience. - Packaging of a luxury product often remains either to preserve the product or to another use. 9. **Brand Positioning:** Gráfico Descripción generada automáticamente con confianza baja **Notoriety**: How many people do you want to know your brand? **Penetration:** How many people do you want to buy your brand? **The Fashion Market Segmentation Pyramid: (creo que no es muy importante)** Is the way to differentiate your brand and you have to decide how you are as a brand. This is the value proposition offered to customers which includes Price, Credibility and Quality when as each element increases you go up the pyramid. 1. **Haute Couture:** As expensive as it gets, where there is maximum creativity. They are always made-to-measure and can be considered pieces of art. Used to build the image of the brand and sell the dream. 2. **Ready-to-wear:** Still very expensive. There is high level of creativity, usually seen as the designer´s expression on runway. Very high quality with attention to details, however with some industrialization. They have wider occasions of use, from daily to important events and used to develop the image of the brand. 3. **Diffusion:** Inspired from ready-to-wear (RTW) and has wider volumes of production. It is more casual with a wider audience tha RTW, audience can also be younger. Has more retail availability, and usually used to expand the designers target audience. 4. **Mass Market:** This is a combination of high street and fast fashion. They are accessible and aimed at a younger demographic. The reasonable pricing of pieces available is because the products are mass produced to ensure the cost of each individual item can be bought down as much as possible, which reflects in quality and materials used. 5. **Brideg:** Considered to be placed below luxury but above high street, and they have been created to bridge the gap between the two. They are trendy but not too radical or extreme, and targeted at everyday use. They are sold completely in retail.