Luxury Fashion - Key Notes PDF

LUXURY FASHION – KEY NOTES CHAPTER 1 Luxury: - High price - Something adding pleasure, satisfaction or comfort - Not a necessity - Exclusive/ difficult to obtain: even though consumers have money to buy there are few units of the products - High qua...

LUXURY FASHION – KEY NOTES CHAPTER 1 Luxury: - High price - Something adding pleasure, satisfaction or comfort - Not a necessity - Exclusive/ difficult to obtain: even though consumers have money to buy there are few units of the products - High quality and durability - Pleasure obtained - Gives social recognition, distinction and need for differentiation Factors behind purchasing decision - Value Of Use - Singularity: - Quality - Reaffirmation of identity - Materialism value: enjoyment of life through ownership of things - Hedonism: personal satisfaction 🡪 emotional benefits - Prestige: position and social representation Origin of Luxury 🡪 mid-17th century - Envolving concept over the years - Subjective: rational and irrational factors - Depends on geographies Thorstein Veblen (1899) 🡪 Conspicuous consumption 🡪 act of displaying ostentatious wealth in order to gain status and reputation in society 🡪 Need of social stratification and social integration Luxury as a paradox: - inaccessible yet desired - desired, dreamed and then rejected, forgotten - based on human impulse of personal need for aesthetics and self-expression - wish for social admiration and acknowledgement Inflation and basic economics 🡪 Luxury items appreciate in value over time 🡪 Higher prices should drive customers away but for luxury brands it translates in Exclusivity 🡪 Exclusivity makes people want something more - Continuous demand means an increase in prices  - Cost of material (leather) and labour (artisans) increase over time Example: The Chanel Jumbo Classic Flap bag was 1,150$ in 1990 and in 2021 was already valued at $7,800. Fashion is not pure art 🡪 creativity with the goal of having as many customers as possible 🡪 One of the world’s largest and most fragmented industries: - Divided in multiple products segments and categories - Housed in different types of organizations - Widely dispersed across geographies and cultures Fashion cycle: Innovations (trend setters or early adopters), Imitation, Democratization to the masses (fast fashion), Decadence 21st century 🡪 Rise of fast- fashion: - cheap and chic’ products - direct-to-consumer sales strategy - thousands of stores - speedy and flexible supply chain “High-low” collaborations 🡪 between luxury fashion and fast fashion brands. Example: Karl Lagerfeld’s H&M collaboration in 2004 High-end versions of popular items created by fast fashion brands. Example: white tennis resembling the Stan Smith have been offered by Dior, Prada and Valentino Influence on the rise of fast-fashion in the Fashion calendar 1. High-end brands felt restricted by the traditional Seasonal Collections twice a year (autumn-winter, spring-summer) 🡪 slow for a new generation of consumers who want constant change. 2. Developed pre-collections: Resort and Pre-fall 3. Most international fashion houses do monthly product drops backed with social media campaigns. Fashion Paradox: - constant search of innovation to turn the innovation into something obsolete: planned obsolescence which is continuously repeated via hem lines, width silhouettes, … - Reactionary (to want is happening in the world), Global, Cyclic and Ephemereal Fashion 19th century Charles Frederick Worth 🡪 Father of Haute Couture (First couturier) 🡪 Founded the House of Worth in 1858 🡪 Dressed a lot of princesses and royalty House of Worth (1858-1956) 🡪 French fashion house specialized in haute couture, ready-to-wear clothes, and perfumes  - Known for preparing several designs for each season, which were then shown by live models - Clients would make their selections and have them made to their own measurements in his work rooms Thierry Hermés (not a designer, a French Businessmen) 🡪 Started as a leather craft atelier for travel and harnesses in 1837 - Launch the first handbag in 1922 - 1935 launch of “Kelly” Bag - 1981 launch of Birkin Bag that has a waiting list of years Fashion 20th century - Creators Paul Poiret 🡪 revolutionised womenswear by removing corset and introduced pants 🡪 First couturier who launched a perfume (1911) within a fashion brand 🡪 saw an opportunity to match 2 industries Coco Chanel 🡪 Pushed the idea of comfort and simplified the style 🡪 was the opposite of what a woman was supposed to be in society: modern, active and liberated and controversial. - emocratized some pieces as sportswear for women - Included: shortened hemlines, straight silhouette, knit (malha), tweed suits, use of bijoux and pearls - Most famous perfume in the world – Chanel nº5 - Created Little Black Dress (LBD) Christian Dior 🡪 First couturier to be featured on the cover of Time - Revolutionize fashion industry 🡪 Created the “New Look” as part of his first collection - New Look (1947) 🡪 rounded shoulders, a cinched waist, a very full skirt 🡪 celebrated ultra-femininity and opulence in women's fashion. - In 1947 launched his first fragrance - 1948 opened his store in New York - Realized that luxury could be sold as a product for the masses - the key to the survival of a brand and the ability of it to generate profit Yves Saint Laurent 🡪 Personal assistant of Christian Dior and when he died took care of the brand during some years 🡪 After leaving Christian Dior created his own brand - Liberated women 🡪 created the safari jacket and suit for women  - Created the Prêt-à-Porter - Was the first to adopt artwork in his styles - Introduce transparency - One of the first to give opportunity to models from difference races - Create more affordable collections of ready-to-wear 🡪 more democratized fashion Guccio Gucci 🡪 famous for selling artisanal leather goods, handbags and accessories. - Opened the first store in 1921 where he sold imported leather luggage. - After the end of World War II, began its internationalization in the US. - In the 80s, internal problems and a depersonalized global expansion led Gucci lost influence and economic capital 🡪 sold in 1993 - Tom Ford 🡪 revitalized the brand after the family crisis 🡪 Decided to stay away from leather goods and invest in other products 🡪 redesigned the campaign aesthetic with a more controversial and provocative approach Fashion 20th century – Movements 1910s: Orientalism 🡪 Richly colored with complexe patterns, ornamental surface embellishments and dramatic silhouettes. - Jeanne Lanvin (France) 🡪 Lanvin is the longest-running fashion house in the world and is dedicated to cloche hats, feminine clothes and a fragrance - Jean Patou (France)🡪 designed evening gowns elegantly simple yet chic 🡪 first relaxed sportswear collections. 1920s: Jazz age 🡪 freedom of movement when creating eveningwear and shorter dresses - Madaleine Vionnet (France) 🡪 revolutionary 'bias-cut' dress draped over the body 🡪 more softness and freedom of movement 1930s: Hollywood glamour 🡪 fashion was heavily influenced by Hollywood’s glamour - Elsa Schiaparelli (Italy and France): creater of “shocking pink” color. - Nina Ricci (Italian-born French fashion designer) 1940s: Draping techniques - Pierre Balmain (France) - Emilio Pucci (Italy) 1950s: Sack silhouette 🡪 In 1957, Givenchy and Balenciaga introduced the “Sack Dress” Sack Dress 🡪 a formless, waistless dress that narrow down at the hem.  - Cristobal Balenciaga (Spain): never-before-seen shapes in the mid-20th century 🡪 exquisite craftmanship and innovative designs - Hubert de Givenchy (France): created elegant designs for his muse Audrey Hepburn, including the slinky black dress she wore in Breakfast at Tiffany's. 1960s: Space age 🡪 eccentric materials, cartoonish silhouettes, helmet–shaped hats, insulated dresses (protect from the cold) and moon boots. - Pierre Cardin (France): pioneer in the design of high fashion for men 🡪 designed suits for the Beatles. - Paco Rabanne (Spain): mini-skirted metallic dresses - Mary Quant (UK): invented mini skirt 🡪 Mood Fashion (1960): Mod clothes leaned toward ultra-short and sleeveless. Hippy counterculture 🡪 youth movement that began in the US during the mid-1960s 🡪 freedom, not be classified by what you wear 🡪 rejected already established norms 1970s: Disco 🡪 funky cuts, bold patterns and expression. - Jean Paul Gaultier (France): known for unconventional designs with motifs - Thierry Mugler (France): use of plastic-like futuristic fabric in his sculpted clothing became a trademark - Claude Montana (France) - Kenzo Takada (Japan/France) - Giorgio Armani (Italy): introduced the soft shoulder on his famed suits. - Diane von Furstenberg (Belgium): created the wrap dress. 1980s: ‘Working girl’ - Karl Lagerfeld 🡪 revitalized Chanel being the creative director from 1982 to 2019🡪 Created his own brand in 1984 - Lacroix (France) 🡪 extravagant dresses (pouf dresses) - Azzedine Alaïa 🡪Tunisian couturier and shoe designer, particularly successful beginning in the 1980s. 1990s: Grunge 🡪 Era where young people wanted to express their individuality and search for an alternative to mainstream culture - End of couture 🡪 rise of masses and fast fashion - Consumers the new decision makers - Streetwear rise with Gap, Levi's, Nike 🡪 golden era for American brands - Top model era. 2000s: Start of the lifestyle and Digital - Virgil Abloh (USA): artistic director of Louis Vuitton's menswear collection beginning in 2018 🡪 Also CEO of the streetwear label Off-White - Loewe (Spain): one of the oldest luxury fashion houses 🡪 focus on leather and craftsmanship.  - The Row by Gabriela Hearst: one of the biggest American luxury brands, very exclusive and unique 🡪 Gabriela Hearst is one of the main figure in Sustainability fashion 🡪 produces pieces in her country (Uruguay) and give job to women. Fashion Luxury Groups/Conglomerates 🡪 large corporation run as a single business, but made up of several firms (acquired through mergers and acquisition) and supplying diverse goods and/or service LVMH 🡪 Biggest luxury group - Association in 1987 of 2 groups (Louis Vuitton and Moët Hennessy) - Composed of + 60 brands operating in Wines and spirits (Moët, Krug, Ruinart,...), Fashion (Christian Dior, LouisVuitton, Fendi, Loewe,…), Watchmaking and jewelry (Tag Heuer, Bulgari,...), Cosmetics and perfumery (of the same fashion and jewellery brands), Distribution (Sephora, Le Bon Marché, La Samaritaine,...) Kering (Before PPR) - Founded in 1963 and bought in 1999 by Gucci Group - Sectors of activity: Fashion (Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen,...), Watchmaking and jewellery (Girard- Perregueax, Boucheron, Pomellato...), Eyewear (Kering Eyewear, same fashion brands of ownership and others). - Considered the best eyewear in the market - One of the most interested groups in the Sustainability topic Richemont 🡪 Specialities in jewellery and watchmaking 🡪 Cartier is the biggest brand - Sectors of activity: Fashion (Chlóe, Alaïa), Watchmaking and jewellery (Cartier, Buccellati, Piaget...), - Net-a-porter: online shop launched in 2000 that was a precursor in the market. More than 800 of the world’s most coveted designer brands Fashion 21th century - Corporate conglomerates covering the whole market (LVMH, Kering, Richemont) 🡪 financial availability to help brands succeed. - Second lines for a younger audience 🡪 more accessible Example: Prada 🡪 Miu Miu - Enhancement of the brand experience 🡪 pushing a lifestyle not products - Accessibility: purchase via e-commerce as well as duty free shops - Humanize the brands Traditional marketing 🡪 based on the need VS Luxury marketing 🡪 based on desire, creates the need Luxury Marketing Mix 🡪 4 P’S 🡪 4 E’s Product 🡪 Experience Price 🡪 Exclusivity Place 🡪 Engagement (how the customer is emotionally attached to the brand). Also: - a seamless experience that happens offline and online - post-purchase experience Promotion 🡪 Emotion (how a brand makes customers feel) Market segmentation - Biggest Players: Travel and Hotels - Personal luxury goods together (Fashion, Jewellery, Beauty and Lifestyle) 🡪 same presence in the market as travel and hotels Haute Couture 🡪 Creation of impeccable, custom-fitted, high-end fashion design 🡪 is a legal term in France 🡪 Only 14 designers that produce haute couture (Dior, Chanel, Versace…) 🡪 In 1945, criteria was created to attribute this label to brands - design made-to-order for private clients - have an atelier (workshop) in Paris - present a collection of at least 25 original designs twice a year (January & July) at the Paris Couture Week - Invitation by the Fédération de la Haute Couture et de la Mode (responsible for regulating the haute couture industry) - Drop of Haute Couture Houses from 1946 to 2016 🡪 disappeared of some brands, some brands decided only to adopt pret-a-porter since it is easier and not so expensive Fédération française de la couture, du prêt-à-porter des couturiers et des créateurs de mode 🡪 Created in 1868 and integrated in 1972 ready-to-wear 🡪 Objectives: - Potentiated the growth of the French fashion business - Sets the dates and locations of Paris fashion weeks - Establishes industry standards on quality and on the use of the word "haute couture“ Market Expansion of Luxury Brands: - Luxury brands with their origins in apparel are the most prolific lifestyle players o 1980s -1990s: Expansion into fragrances o early 2000s: Expansion into jewellery, watches, and home products. o 2010: Expansion into experience business (hospitality) 🡪 cafes, hotels,… Example: Armani has 20 restaurants and cafes worldwide - Luxury brands with a technical core (jewellery/watches) 🡪 cautious about brand extension. Afraid of: Brand Dilution and Brand Image damage Connection between Lifestyle and Luxury 🡪 creating a holistic experience around the brand experience and universe 🡪 partnerships that other brands of similar values. Example: Chateau Marmont (Hotel) x Gucci Reasons for product extensions: - Strengthen the brand’s core and exploit its full potential. - Promote the brand’s lifestyle message across touchpoints 🡪 include social media and events partnership - Expand into categories that embody the brand’s identity and strengthen its association with a luxury lifestyle CHAPTER 2 – BUILDING A FASHION BRAND. PRICE Manufacturing: Fashion Process Design: - Search: Design team led by the Creative Director starts to do research about the new collection at least 6 months before - Proposal of an idea, concept - Create an aesthetic - Moodboard - Know the customer while expanding the client base - Geographical and cultural influences 🡪 also take into consideration what is happening in the world - Seasonless - Limitations by budget and business strategy Fabric Sourcing: - Raw material - Depends on the theme of the collection and the season (lighter or heavier materials) - Fabric into processed fabric - Dying process - Traceability – Transparency - Sustainable processes Pattern making: Garment architecture, Precision, Body knowledge, Creativity, Sculpture, Old craft Quotation: Cost, Mark up, Benchmark, Price strategy Sample development, approval, grading: Fittings, adjustments, Editing, Normalization procedure, Pattern grading (final prototype in the pattern for all the sizes) Production: Industrial vs handmade Quality Control: Supervision of production, Assessment, Discarded products Packaging, shipment, delivery: Logistics and transport, Distribution and dispatch, Seasonal calendar, Timings and deadlines, Exworks (EXW) vs Delivered Duty Paid (DDP) – expenses - Exworks 🡪 buyer bears responsibility for shipping costs. - Delivered Duty Paid 🡪 seller takes responsibility for all risk and fees of shipping goods Traceability 🡪 GOTS certificate 🡪 that confirms the traceability all along the process of creating a product (since the extraction of raw materials until the delivery of the product Brand 🡪 PRODUCT + CULTURE/DNA/ IMAGE/ CONCEPTS/VALUES 🡪 Combination of tangible and intangible attributes 🡪 Brands simplify buying decision and represent guarantee of quality and a credible alternative to competitive offerings 🡪 Emotional connection - Intangible elements: o Value perceived o Confidence o Warranty 🡪 achieved through the reputation o Brand experience 🡪 created through all the touchpoints o Loyalty - Tangible elements 🡪 essential for visual identity o Naming 🡪 easy to read, write, pronounce and remember 🡪 can’t has meaning or " harmful " cultural connotations 🡪 related to: territory, product sold, materials used, the target, a lifestyle o Logo o Colours o Tipography o Sonic Branding (logo + universe): patron/monogram Packaging 🡪 first contact that the buyer has with the product 🡪 extension of the product 🡪 Unboxing experience Pricing 🡪 process of setting the value for the customer 🡪 Fashion mark up: 2.5-2.8% - Lowest Price 🡪 Mass production 🡪 Example: Primark - Mid-Price 🡪 Mass Market/ Fast Fashion 🡪 Example: Zara, Massimo Dutti - Premium Price 🡪 Affordable Luxury 🡪 Example: Tommy Hilfiger, Longchamp - Premium Price 🡪 Luxury Brands 🡪 Example: Prada, Gucci - Top Price 🡪 Haute Couture 🡪 Example: Chanel, Hermès CHAPTER 3 – Building a Fashion Brand: Distribution and Retail Types of Points of Sales (Retail)  - Multibrand stores: stores with a strict selection of luxury brands - Department stores: selection of pieces from different brands 🡪 purchase items of different brands to re-sell 🡪 Sharing space with other brands Example: El Corte Ingles, Harrods - Corners/Shops in Shops: makes the consumer perceive the world of brand and product more clearly but still in a limited way Example: El Corte Ingles has shops of the most luxuries brands and corners for example in the beauty section - Own stores/ Flagship stores: Vertical integration 🡪 allows to create stronger brand identities and more complete and reliable information from market and consumer. 🡪 Bigger than the other stores of the brand and are located in specific streets/districts of a city - Online: direct and interactive relationship with the consumer without intermediaries and with great control on the brand. Types of distribution: - Exclusive: Bergdorf Goodman - Selective: Luisa via Roma - Mass: Department stores Monobrand/Flagship: owned by the company 🡪 carry only a single brand 🡪 intention of building brand image rather than solely to generate profit Key elements in monobrands: - Location is key 🡪 proper influx of people - Interior Design - Showcase of products 🡪 communication tool - Spaciousness 🡪 Items exhibited (not shown) - Staff 🡪 Welcoming, friendly, knowledgeable Multichannel 🡪 All channels available to the consumer but not integrated Omnichannel 🡪 All channels available to the consumer and integrated Online: - Being strategically located in search engines and in largest social-media networks - Building an attractive environment: website easy to navigate, impactful images and information about the product - Creating a memorable shopping experience - Nurturing loyal customers 🡪 privileges and exclusive offers - Digital influencing consumer behaviour and creation of desire - Online is growing much faster than offline - Seamless online and offline experiences Future Trends: - See now buy now 🡪 collections are launched and immediately available for sale 🡪 challenge: production is not able to follow the demand (slow fashion production) - Online channels facilitate the return  - Renting Vs Owning - Second hand purchasing 🡪 Re-commerce Example: resale service Farfetch Second Life - AR virtual try-ons - accepting crypto currencies as payment - Livestream shopping - CHAPTER 4 – BRAND STORYTELLING Target group: capture the company's values and messages + empathises with the company Storytelling: communicates values (tangible and intangible) + Speaks to emotions + Message (coeherent w/ attributes and benefits of the product) – Conflit – Characters – Plot Type of brands stories 🡪 related to: - Origin of the brand. Example: Creators, Mithology - Location/Culture - Stages of life - A Character: you can be like this - Craft. Example: Craftsmanship - Material. Example: Ingredient/ Material Use of Archetypes 🡪 original human prototypes that are not learned but are innate in human experience - Instead of telling stories 🡪 create legends - Entertain - Emotional over rational 🡪 familiarity 🡪 creates comfort and intimacy 🡪 build trust Storytelling Examples: Versace jungle Dress used by Jenifer Lopez, Tiffany & Co blue box (colour of the box says it all) CHAPTER 5 - Communication for a luxury fashion brand Audience 🡪 made of: - Opinion leaders: Media (editors, stylists, journalists), Buyers (retail partners), Influencers (digital or VIP) - Customers 🡪 Final and aspirational - Followers and fans of the brand - Stakeholders: Employees, Partners, Shareholders Communication Tools:  - Public Relations: promote positive relationships between an organization and its key stakeholders without any remuneration 🡪 GOAL: influence opinios and beliefs - Advertising: pay for space to promote a product/ service to persuade the target audience to buy it - Product placement: product inclusion in film or TV or celebrity endorsements (famous person appears in an ad or recommends a product/ service) - Brand ambassadors: representations sponsoring (sport, cultural, artistc… - Events: creating experiences around the brand: store openings, presentations, runway shows, dinners, awards,🡪 moment to engage with audience - Digital: online actions 🡪 most common website and social media. Types of adverstiment – where they are placed: - At the point of sale: signage, storefronts, catalogs, windows 🡪 make the store itself in an advertising point - On the street: bus, banners, buildings, guerrilla - At home: direct mail, television, radio - Online: websites, social media, blog - Print: newspapers, magazines - Sponsoring: sport, cultural, artistic 🡪 movies usually is not a partnership with the brands - Celebrity endorsements Types of communication agencies: - External communication 🡪 helpful to help in-house communication department to deal with specific campaigns/actions (Example: dressing a VIP guest for a red carpet) - Showroom 🡪 agencies keep a brand collection in their offices, so that fashion stylists can do their shopping for editorial and fashion productions - Press Office and PR 🡪 agency is responsible for constant and direct relationship with media 🡪 Dissemination of press releases, lookbooks, management reports and editorials of interest to the brand - Clipping or media appearances count 🡪 in charge of calculating ROI of the appearance of the brand in media /press - Events 🡪 agency is responsible for organizing social events, catwalks , fairs... also making the call for press and celebrities. - VIP 🡪 dressing opportunities within the celebrity realm Controversy in Communication - Use of children as adults. - Use of photoshop to enhance the model’s appearance - Cultural shocking advertisements Fairs and Events 🡪 great importance to intermediaries and end customers as they are the ideal environment of presenting the collection.  - Main 4 Fashion Weeks: Paris, Milan, New York and London Fashion Calendar 🡪 founded in 1945 by Ruth Finley 🡪 Subscription service that organizes the calendar with the fashion industry weekly events and for Fashion Week. - Coordinates schedule between shows, presentations and events - 2014: CFDA (Council of Fashion Designers of America) acquires Fashion Calendar Council of Fashion Designers of America 🡪 Nonprofit organization to support the American fashion industry: American designers and International brands based in USA - Established in 1962 by Eleanor Lambert - Membership only by invitation 🡪 450 members of America's foremost womenswear, menswear, jewellery, and accessory designers. - President: Tom Ford Paris Fashion Week - Organizer: Chambre Syndicale (Fédération de la Haute Couture et de la Mode) - 2013 H&M 🡪 first time that a fast fashion brand was allowed to participate New York Fashion Week - Organizer: Council of Fashion Designers of America - 2014 🡪 NYFW and Fashion Calendar under CFDA control - Biggest fashion week in people working and profit Milan Fashion Week - Organizer: Camera Nazionale della Moda Italiana - 1979 🡪 Menswear 🡪 Milan has the best men’s wear fashion shows - 2012 🡪 Conflict between MFS and LFW SS 2013 shows (overlapping of dates) Camera Nazionale della Moda Italiana (1958) 🡪 Non-profit organization that promotes the development of Italian Fashion within the country and abroad - Mario Boselli presides over the organization which owns MFW. London Fashion Week - Organizer: British Fashion Council - 2010 🡪 Digital Streaming British Fashion Council (1983) 🡪 Non-profit organisation that aims to strengthen British fashion in the global fashion economy.  - Managing the annual BF Awards - Managing the Colleges Council which aims to develop fashion education in the UK and its relationship with the British fashion industry. Fashion Week Calendar 🡪 Divided in 2 seasons: Spring/Summer, Fall/Winter that are shown in Paris, Milan, NY and London Fashion week every year - Spring/Summer: shown around September for the next year be available - Fall/Winter: shown around February for the next year be available - Designs work one season ahead of time because manufacturing takes time - Cruise collection 🡪 Inter-season line of ready-to-wear 🡪 Launched between the 2 main ready-to-wear seasons: Spring/Summer and Autumn/Winter 🡪 adopted by big brands as an opportunity to add an entirely new mid-season collection. Ambassadors 🡪 people who represent the values of a brand, whether they have a partnership or not with the brand 🡪 celebrities, opinion leaders, experts in the field, digital influencers Halo Effect Theory - Thorndike (1920) 🡪 target consumer’s tendency to rate a product based on a review they receive from an individual who is potentially endorsing it. The Source Credibility Theory 🡪 target audience views the source in order to gain expertise and knowledge in their understanding of the product/service 🡪 based on trustworthiness, attractiveness and expertise of the communicator 🡪 comunicator as expert in the field Digital influencers 🡪 ideal influencer delivers key performance indicators while also reflecting the brand’s values and aesthetics. - Need to represent the values of the brand - Need to be real in their opinion - Brands should choose influencers with whom they have long-term relationships (an ambassador) and not only for one campaign - Different types of influencers: o Experts: someone that also works in the industry o Tastemaker: sets the standards of what is currently popular or fashionable o Native digital influencers: influencer since the beginning of the career o Celebrities: actor/actress o Smaller influencers (Nano or Micro): are better to communicate with local audience and bigger influencers with global audience - Budget: usually their rates increase with the number of followers Social Media 🡪 Window to the world: visually recreate the brand identity through logo, colors, visual identity - Use the origin and history of the brand: key moments, heritage - Showcase behind the scenes/atelier moments - Create stories surrounding the product - Partner with artists  - Humanize the brand: show the team, people working in the ateliers - Call on through emotions:, compassion, kindness, connection, humanity, intimacy, strength, , generosity, creativity, , inclusivity, empowerment, … - Keep track on what is happening. Example: get involved in action/movements as Black life matters - The use of influencers - The correct use of hashtags - Majority of fashion and beauty brand has a presence and relationships with influencers on Instagram 🡪 brands should also think about other platforms. Example: YouTube -🡪 expand brand awareness and refine storytelling Pinterest 🡪 promote traffic to a brand’s website Tik Tok 🡪 Reach a younger audience Other Tools of Communication - Fashion Films - Mentorship programs: Kering x London College of Fashion - College programs - Award prizes – LVMH Fund, Loewe Craft Prize - Sponsorships in different formats - Co-branding Fashion Films 🡪 Small videos of +/- 10 min 🡪 seduction and entertainment 🡪 Transition from storytelling to storydoing 🡪 Advantages: - Brand awareness - Aspirational dream of the house values - Media coverage - Interact with key public - Sell product Types of fashion films: - Classic: Example: Chanel Nº5 o Focus on Quality/Tradition o Authors are Celebrities/Famous film directors o Classic storytelling narrative o Focus on Craftsmanship o Available on the brand platforms and Youtube usually o Aspirational seduction - Modern: Example: Art of the Trench by Burberry o Current life o Authors are photographers/Indie film directors o Experimental storytelling narrative o Focus on symbology o Available on platforms as Vimeo/Nowness  o Emotional seduction - Contemporary: Example: Mary Katrantzou by Nick Knight - Innovation/Art - Authors are photographers/videoartists - Artistic storytelling narrative - Creative concept - Available on SHOWStudio - Aesthectical Seduction Patronage 🡪 Support, encouragement, and/or financial aid that an organization or individual gives to another 🡪 Patrons operate as sponsors of artists 🡪 Give something back to the society in general by supporting cultural organizations Example: Bulgari partnered the Victoria & Albert Museum in London for ‘The Glamour of Italian Fashion’ (1945–2014) exhibition. Artistic collaboration 🡪 Collaboration is established through a classic business relationship between the artist and the brand 🡪 artist creates a product or a line for the brand and receives remuneration. Example: Louis Vuitton has developed partnerships to help rejuvenate its label with artists such as Jeff Koons 🡪 extend its public to younger market segments and to renew its color codes 🡪 important for the brand's strategy to become less dependent on the monogram pattern. Foundation 🡪 non-profit organizations that donates funds and support or provides the source of funding for its own charitable purposes Example: Cartier Foundation 🡪 contemporary art 🡪 exhibitions feature artists who have rarely been invited to present their work in contemporary art institutions Mentoring 🡪 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 🡪 Every 2 years, a handful of artists at the top of their craft take a growing talent, in each of the available disciplines. Co-branding 🡪 2 existing brands are paired together to create a new product offering 🡪 Allows: - Market growth - Expand customer base 🡪 a lot of times brands want to reach a younger generation - Introduction of new products - Sharing costs CHAPTER 6 - Beauty & Jewelry Business Beauty 🡪 Consumers are able to achieve part of the luxury dream through premium beauty products - Resilient market  - Products are easy to market 🡪 once the formula is found we just need to continue producing it, since the consumers are likely to do repetitive purchases over the time. Beauty in social networks 🡪 beauty influencers, youtube videos, … - In the top 10 of the most effective brands on social 🡪 only Dior is a traditional player 🡪 others are brands created by celebrities or independent cosmetic brands that initially went online before being distributed in physical outlets. Beauty - Cosmetics & Skincare – TRENDS: - Rise of beauty vloggers - Purchase possibility through social media platforms: IG and Pinterest - “Clean Beauty”: trend of sustainable cosmetics 🡪 Some brands are gaining attention by selling their “clean” ingredients, or positioning themselves as cruelty-free, vegan or gender fluid. Cosmetics - Makeup market was developed in the US - 1886 🡪 Avon 🡪 new business model 🡪 women as sales representatives 🡪 giving women economic freedom. - 1910s 🡪 Emergence of brands like: o Elizabeth Arden: first to introduce eye makeup to the women of America and pioneered the creation of the "makeover" o Helena Rubinstein: invented the waterproof mascara o Max Factor: specialized in movie make-up o Revlon: Invented a revolutionary nail polish. It began selling lipstick in 1939. o L’Oréal: World's leading company in cosmetics and beauty. - 1946 🡪 Estée Lauder: High-quality skin and makeup formulas. It is the second largest cosmetics company in the world after L'Oréal. 4 categories of cosmetics - Luxe: Armani, YSL, Viktor&Rolf, Lancome, Biotherm, Shu Uemura - Professional: Redken, Kerastase 🡪 hair products - Consumer: Garnier, Maybelline, Essie - Active cosmetics division: Vichy, La Roche Posay 🡪 differentiation on how they produce their products Perfume - Smell is stored in the limbic system, the same place: emotions and long-term memory.  - Preference for notes depends on the geographical and cultural characteristics of people. Example: someone from a Mediterranean country will prefer fresh notes Beauty during and after COVID pandemic - In 2020, beauty demand overall remained strong as consumers turn to the “selfcare” categories of skincare, haircare and personal care. - Building direct, trust-based connections with the beauty consumer in an increasingly virtual world 🡪 live virtual consultations - Sampling is proving to be a key pandemic strategy - Recovery of beauty sector after pandemic will be led by China. Trends of Beauty sector: - Improve discoverability and desirability by working with social media influencers - Crowdsourcing to develop new beauty products - Deliver a holistic wellness experience through cross-segment collaboration - Use digital technologies to provide personalized beauty solutions at scale - Embrace diversity and become genderless - Forget anti-ageing, think healthy ageing Jewelry 🡪 One of the most ancient and enduring forms of personal expression and ornamentation. - Biggest country for jewelry and watch market revenue is China, followed by the United States, Japan and India. Jewelry lifestyle partnerships - ROLEX x GOLF: brand’s involvement in the sport is deep-rooted 🡪 supporting elite players, major professional circuits as well as the best events on the golf calendar. - IWC x Mercedes-AMG Petronas Formula One Team 🡪 IWC’s close involvement with the world of motor sport. o “Official Engineering Partner” of the Mercedes-AMG Petronas Formula One™ Team in 2013. The partnership focuses on the shared values between mechanical engineering and watchmaking o IWC have dedicated 2 limited-edition Pilot’s Watches to the Mercedes-AMG Petronas Formula One™ Team 🡪 special editions, released in 2019 - CARTIER x NET A PORTER 🡪 In 2018, online retailers Net-A-Porter and Mr Porter (brother website of Net-A-Porter launched a permanent partnership with Cartier. o Cartier’s men’s and women’s watches will be available through Net-A-Porter’s Fine Jewelry & Watch Suite and Mr Porter’s Luxury Watch Guide.  - HERMÈS x iWatch 🡪 best in leather + best in technology o Hermès 🡪 represent supreme quality and savoir-faire join hands with Apple 🡪 stands for creating great and innovative products. Chapter 7 - Future Trends in the Luxury Industry Covid-19 and the economic crisis 🡪 Biggest challenge for the fashion industry Digital 🡪 Biggest opportunity for the fashion industry State of Fashion 2022 - Consumer Shifts o Discount mindset o Digital escalation: digital as an urgent priority across the entire value chain o Domestic luxuries: Luxury players should enagage more deeply w/ domestic consumers and invest in clientele for local e-commerce channels. o Wardrobe reboot: After focusing on loungewear and sportswear for 2 years, consumers start to look for other categories o Metaverse Mindset: ways of engaging with younger groups through NFT, gaming and virtual fashion - Fashion System: o Darwinian shakeout: pandemic accelerate the decline of brands that were already struggling before 🡪 To secure their future, companies must evaluate divestment and acquisition opportunities o Innovation imperative: digital, be sustainbale, communication o Social Shopping: seamless shopping experiences from discovery to checkout 🡪 test opportunities in technologies such as livestreaming and augmented reality try-on. o Circular textiles: fashion industry need to reduce its environmental impact 🡪 closed-loop recycling 🡪 decrease textile waste. o Product Passports: share product information with both consumers and partners 🡪 TRACEABILITY. Can help brands: fighting counterfeiting, differentiate and build loyalty by enhancing consumer trust o Cyber Resilience: Brands need to act urgently to strengthen their defenses and invest more to make digital security a strategic imperative. o Talent Crunch: companies must refresh their talent strategies for an increasingly flexible, diverse and digital workplace - Global Economy: o Uneven (irregular) recovery: across consumer markets and sourcing regions. 🡪 Fashion players with international presence need to look at investment decisions with precision  o Logistics Gridlock (bloqueio): companies must rethink their sourcing strategies, implement cutting-edge supply chain management and keep products flowing with customers demand in the year ahead Future Consumption 🡪 luxury brands must: Reset, Streamline and Invest - Reset and Streamline o Reset distribution: choice of partners used for the distribution – according to brands values o Make supply chains more effective and agile: eliminate the number of providers o Reset costs to adjust the Product and Innovation o Rethink fashion calendar o Implement a zero-based organization redesign - Invest: o Address the changing consumer: get to know the consumer needs and wants o Invest in innovation o Embrace clientele 2.0 🡪 accelerate digital system. The way brands communicate with clients now is very diverse. Nurture the clients o Accelerate digital ecosystem 🡪 Build an Al-driven (Artificial intelligence) technology backbone o Bring young talents to the workforce Future Trends - Technology & Innovation: o Artificial Intelligence 🡪 increases the efficiency in cost and speed yet means loss the human touch. Example: Mobile shopping, Contactless payment, 3D printing o Augmented Reality 🡪 lets the user experience the real world, which has been digitally augmented or enhanced usually by a camera or smartphone. o Blockchain 🡪 data transparency technology that allows digital information to be shared among parties, but not copied (data is immutable and trusted) Example: Luxury brands could combat counterfeiting through registering their products in blockchain o Web 3 🡪 xurrently a work in progress, it is a vision of a decentralized and open Web 🡪 include NFTs or cryptocurrencies like Bitcoin. o Metaverse: It's a digital environment complete with augmented reality and virtual reality technologies 🡪 bridges physical and virtual experiences. Example: Gaming 🡪 Balenciaga and “Afterworld: TheAge of Tomorrow” or Louis Vuitton and League of Legends capsule collection 🡪 Way of connecting with the youngest generations - Sustainability & Inclusivity 🡪 fashion industry is subject to a lot of criticism since inspires the consumption of goods people do not necessarily need o ESG Reporting: is the release of data covering business operations related to the environmental, social and governance aspects of a company. o Human Rights: Production often takes place in undeveloped countries, where respect for human rights and the wellbeing of workers are overshadowed. 🡪 Legal industry minimum standards: minimum wage, overtime, child labour, modern slavery o Environmental: ▪ Use of animals as raw material and for trials need to be treated with dignity and respect Example: Hermès started in 2021 working on a new mushroom-based alternative to leather. Timberland have committed to source cotton, leather, wool and rubber from regenerative farm. ▪ Efficient use of water, energy, and chemicals ▪ Sustainable Material Mix: Reduce the negative effects of existing fibres and develop new and more sustainable fibres ▪ Closed-loop fashion system: Recycling system that enables the reuse and recycling of post-consumer textiles at scale. ▪ Setting up in-house sustainability and innovation teams o Supply Chain Traceability o Inclusivity: ▪ Women in board positions ▪ Colour of the skin ▪ Less make-up ▪ Plus size models - Consumption & Individualitzation o Personalization o 2nd hand market: ▪ Unworn and Preowned Pieces 🡪 Luxury products that have never been worn (typically from last season) are highly desirable to budget-conscious consumers because of the items’ discounted prices. ▪ Vintage Pieces: high demand due to their timeliness and quality and have a substantial impact on brand equity. ▪ Iconic Heritage Pieces: These historic, high-value products are at least 30 years old. Future – Technology in different steps of the product cycle 🡪 How technology revolutionize and innovate the different steps of the production of a product: - Design: 3D design and Artificial Intelligence planning - Merchandising & Planning: Virtual sampling and Video sign-offs - B2B Sell-in: Digital sell-in and virtual showrooms - Sourcing & Supply chain: Vendor integration and Nearshoring (enables businesses to move their operations to a closer, more cost effective location). - Consumer Engagement: Virtual Shows and Social selling