Fashion Company Organisation
Fashion cycle: period of time between introduction of new fashion and its replacement by a
new one.
- Supply chain may be longer than life cycle – life cycle can last a few days (only)
- Fashion cycles can last from few weeks to few seasons. Change is driven by cycle of
seasons and fashion cycle itself.
Degree of innovation of new fashion may
involve:
1. Basic features
a. Product concept
b. Style
c. Basic materials
d. Accessories
2. Colours
Why does fashion change so fast?
1. Seasonal change is caused by
industrial, retail and communication system of fashion.
a. Seasonal change is tied to the need to encourage and control a certain level
of product turnover
b. “Planned obsolescence”: encourages new demand for products that could
last much longer considering their functional and technical features → “we
make good products, we induce people to buy them, and then next year we
deliberately introduce something
that will make those products old
fashioned, out of date, obsolete”.
c. Seasonal collections connected
to: seasonal trade fairs, fashion
shows, fashion weeks
2. Change - intended as great product variety and variability over time, is designed to
guarantee the consumer a wide range of choice - greatest satisfaction in terms of
how product fits personal needs
a. 1958 Christian Dior dictated rules for skirt length → all women who wanted to
be in fashion followed these rules
b. Today consumer is no longer passive towards fashion industry - wants to
create his own style and idea of fashion, mixing different clothes and trends
→ individualisation of the consumer → products and trends follow
c. More variety in clothing led to increase in collections over a year → origin of
fast fashion industry
d. Now colours, shapes and materials must gain wide consumer acceptance to
become fashion → consumers must buy and wear a style
→ fashion is social, a collective phenomenon (being fashionable alone is
meaningless)
e. Not all fashion products go through a short seasonal lifecycle (ex. Little black
dress)
Companies continue to sell basic products and classics (i.e. polo shirts, blue
jeans, white shirts) – basics and classics never become completely obsolete
Guarantee long life cycle & decline is often related to structural changes in
people’s habits and lifestyles
f. Fads – usually fashion that is popular for a very short time – typically adopted
by particular subculture or younger demographic group for very short time
Can keep customer and press interested (gets people talking = stayin
relevant)
Fashion leaders and fashion followers
Everet M Rogers, Diffusions of Innovations, 1962. → theory used in understanding how new
ideas spread through populations
Adopters of any new trend categorised as:
● Innovators: earliest communicators of new style or
look to other fashion consumers - feel more socially
secure - more interested in innovative and unique
features than others - could be way to emancipate
themselves - social expression
● early adopters: copy fashion innovators & change
product into popular style - influence people in their
social group - mainstreaming of trends - product
produces by more brands & sold in more places - also
slightly modified style
● early majority: very deliberate about purchases - look
to those more stylish for guidance
● late majority: more sceptical of latest fashions - will take time to be convinced - more
traditional tastes
● Laggards: not interested in trends - slow to recognise & adopt style - more likely to
buy style in sales
Willingness and ability of each group to adopt innovations would depend on:
- Awareness
- Interest
- Evaluation
- Trial
New fashions begin as deviations from rules → caused by individual moves → part of
society has to validate them → when adopted by wider
audience “deviant behaviour” becomes new rule
Examples:
- Jeans: started with workers (way to protest against
society)→ marilyn monroe/james dean → fashion
- YSL 1971 collection inspired by sex workers (scandal
collection) → used in movies → fashion
- Punk subculture → vivienne westwood
Theories of fashion movement:
1. Trickle down theory: fashion trend starts at top of
social ladder (ex. Kate middleton’s zara blazer)
a. royals/upper class/celebrities/top designers
b. influencers/celebrities/middle class
c. General public
2. Trickle up theory: fashion trend starts with younger or lower income groups
a. Newer trends come from the streets (reverse 1)
(ex. Combat boots, studs)
3. Trickle across theory: fashion moves horizontally through similar social groups
a. Each social group looks at leaders of its own group for fashion trends
Fashion as social expression : help to differentiate form more conservative group of
consumers
Fashion leaders are ones who drive new trends forward but a new trend needs fashion
followers to legitimise it.
- leaders: innovators, early adopters, help move fashion forward
- followers: early/late majority, laggards
Fashion innovators: earliest communicator of new style or look to other consumers, feel
more socially secure
- More interested in innovative and unique features than others
- Fashion could be way to emancipate themselves from the ruling principles of society
- Fashion used as form of social expression & can help differentiate from those who
stick to conservative appearance dictated by tradition
- Ex. Prince Edward VII wrapped his pants up to ankles so he wouldn't dirty them on
hunting expedition → fashion of turn-ups was born
Early adopters: copy innovators and change product into popular style – influence people in
their social group
- Crucial for mainstreaming of trends
- Then product is produced by more brands and it is sold at more retail outlets
- May also adopt a slightly modified/toned down version of new style
Early majority: look to those more stylish for guidance, very deliberate with their purchases,
influenced by advertising and media
Late majority: more sceptical of latest/newest fashions, will take time to be convinced, tend
to have more traditional tastes
Laggards: not interested in new trends, slow to recognise and adopt fashionable style, buy
as popularity fades & product is often marked for clearance
Gatekeepers: people who make selections for the general public
Cycle of fashion
No set beginning of fashion in history. Initial acceleration between 1200-1300.
Concept of fashion: systematic process of socially accepted variations in a particular clothing
style – took place at the beginning of Renaissance (1400-1600) in Italian cities. Concept of
fashion later spread through Europe, particularly to the Boulogne courts.
Second acceleration connected to emergence of merchant social class → diffusion
of rich merchants originated new dress code, no longer dictated by function or set class
- Established social groups: nobility, army, clergy, farmers
- Dress code no longer conditioned by hierarchy: ostentation (nobility/clergy),
usefulness (army) and poverty (farmers)
- New dress code of merchants was conditioned by the search of social legitimacy
19th century rhythm of fashion cycle became significantly faster
→ at first role of designers was fundamental, later industry and distribution played a part in
supporting or anticipating the development of the end consumer
- 60s: young revolution (in europe) → started dressing differently from other/older
people
-
70s: further acceleration in fashion cycle with democratisation of fashion
phenomenon →
- Was the result of ready to wear collections
- bore name of designer on label of industrial product
- affordable but stylistically innovative and well cared for as regards to technical
execution characteristics
- halfway between haute couture and standardised product on industrial level
Exam practice questions:
1. How many fashion consumers do you know? 5
2. To become a fashion , a style must be? Consumers must buy and wear it
3. Basic product life cycle is? Longer than fad life cycle
4. Who creates a new trend? Fashion innovators
5. When did the fashion cycle start historically? 13th 14th centuries
6. Democratisation of fashion? 1970s
7. Length of fashion cycle can range? Weeks to seasons
8. Process of change of fashion change is driven by? Cycle of season and fashion cycle
itself
9. Which consumer has traditional tastes? Late majority
10. Acceleration of fashion cycle connected to the social class of? Merchants
Definition of Collection
Company’s offering is usually made up of one or more product lines
Concept of line identifies sets of products with same functions, occasions for use &
product category
Every season fashion brands offer new product collection on market
Fashion collection: set of products grouped according to different rules and are based on
season
- Origin: French haute couture - all models presented were new & couturiers usually
presented a limited series of new models every 6 months
- Modern collections: mix of models with different purposes, some new, some same
Some models totally renewed every season
Some models are offered again with small changes
Mix between seasonal and continuative items in each collections depends on positioning of
the brand (larger in women’s ready to wear, minimal in men’s formal)
Role of managers and designers differ according to the collection structure:
- Manager more important in basic part of collection
- Designer’s role fundamental in fashionable part
Main collections (ss/aw) proposed together with:
- Pre-collections (+ resort/cruise): arrives before main, represents taste, anticipation of
upcoming season, evolving from basics to most fashionable items, becoming more
and more diffused in fashion
- Flash collections: mini collections that refresh latest main collection with latest trends
-
Capsule collections: composed by few items coordinated with a specific theme,
sometimes in limited edition - can be presented at any time (ex. Adidas x prada)
Fast fashion retailers can produce up to 24 collections a year in order to renew their
merchandise in theri shops on a flow delivery basis.
Defining the brand offering
Offer system in the fashion industry is very complex because of
1. Physical and technical features of the Product: fabrics, models, finishing, accessories
2. Destination of use:
a. end uses (product’s function & final destination) – based on product
performance and functional attributes
i.
External clothing, underwear, beachwear
b. occasions of use – market oriented criterion becoming increasingly important
for segmenting the offer
→ work wear is different from sportswear, formal occasions of use are
distinguished from casual
i.
Formal occasion: include both moments in working day and evening
ceremonies
ii.
Informal occasions: encompass urban free time and leisure time for
week-end
iii.
Sport occasions: involve both leisure and active sports
3. Style of dress: classic, modern, avant-garde
Complexity is also the result of the degree of innovation of the distribution service in the
whole offer system.
Process of product development in fashion companies is the result of integration of two
sub-processes: inspiration and creativity → make the rationalising process.
1. Inspiration and creativity process: aimed at defining seasonal offering in terms of
aesthetic and stylistic elements, driven by designers
2. Rationalising process: focused on defining economic and competitive targets of
collection, driven by managers from sales, merchandising, marketing departments
Designers should: scout and interpret latest aesthetic-technical trends, renew the firm’s
offering from season to season without distorting the brand’s permanent stylistic identity.
→ would like to renew most of their collections year after year following the latest trends,
prefer to develop their creativity to generate new reasons for consumers to buy.
Managers should: interpret long-term socio-cultural trends, analyse market (consumer &
trends), analyse previous season’s sales
→ tend to keep certain items and designs that have been successful in past seasons, and
perceive past success items as less risky for the company.
Objective: to define the entire brand’s offering in terms of variety and variability
- Number of collections
- Number of end uses
- models / variants
- Price ranges
Two processes together should be performed in parallel in order to converge in definition of
the seasonal collection. “Truth” lies halfway between 2 positions of designer and manager.
BUT fashion brands cannot be completely dependent on commercial vision → consumer
wants to be surprised and excited by the brand's new proposals.
ALSO free creativity without any marketing rule is not sustainable or profitable → in markets
the respect of price points and timely deliveries represent key success factors in order to
compete.
Design process
Design process is the core activity of a fashion company & influences all the activities of a
fashion company.
- Establishes identity of a brand
- Starting point of the supply chain
Creative process is outcome of work of:
- Designer and style department
- Sales and marketing department
- Suppliers and production process
Many important aspects of company activity
depend of style:
- Commercial success
- Quality
- Timing
- Cost price profitability
Sales success depends on coherence between the brand identity, brand heritage and
seasonal collection.
Final price of the collection depends on processing and raw materials chosen by the
designer.
Designer’s activities influence the work timing that needs to be observed in order to
guarantee long term success of the company.
For fashion companies style is essential. In some companies the creative direction has the
same or more power than the general direction. (that’s what makes it sell)
Strategy can radically change the stylistic content of a collection. Sometimes this is an
appropriate choice, but still difficult and risky.
Ex. Tom Ford utilised sensuality as a means for marketing Gucci.
Fashion collections should have a basic theme like a book or movie. Basic theme should be
a way to make the collection an offer with a unitary character. (Ex. tattoos, countries, sports,
sailing)
→ Inspiration behind fashion/collections – ex. barbie, orange prison suit
Collections have power to mirror society
Ability to interpret everything and also create culture. BUT dangerous when dealing with
cultural stereotypes.
Fashion Trends
Trends originate continuously from fashion companies & are result of designers’
interpretations of input originating from many various sources.
Most important sources:
- Social-cultural trends (ex. Minimalism, green environmental concerns)
- Textile pipeline – process of fashion trend forecasting through colours, material and
looks has been formalised by well-defined actors and institution. Actors in pipeline:
Bureaux de style: first to start in forecasting, mainly based in france – identify
emerging general trends to have an effect on textile industry in following years
Work as groups of sociologists, designers, producers and material experts.
Collaborate with national and internal opinion leaders to produce and sell
information about general trends.
Information becomes available in Cahiers de Style which covers different
areas like colours, yarns, cloths, prints, designs, etc.
- Fibre producers: carry out own research and/or interpret suggestions from
bureau de style, manage information about trends as a service to their own
customers, are first producers to give information about fashion trends, have
to design their product 24 months before it comes on the market
- Product fairs: for semi-finished goods, are the initial stage of the process of
seasonal trend development, are occasions for gathering, comparing and
discussing trends from the bureau de style and fibre producers.
Trends displayed at textile fairs become input for clothing producers.
→ seasonal trends are strengthened in commercial relationship between different
actors in the pipeline. Producers of yarns and textiles interact with their opinion
leader manufacturer customers to finalise the features of the seasonal offer.
→ at this stage that general trends are finally incorporated into a finished product.
- Technology
Advances in fibre and fabric sectors have recently led to innovations in finished
products as well. Ex. Goretex has revolutionised sportswear & new innovations are
vegan leather from cacti or orange peels.
- Internal research – fashion firms can receive many suggestions from the outside, but
it is only an ongoing process of internal research that transforms external input into
original and innovative products. 2 sources of internal research:
- Exploratory market research (trend analysis and relationships with actors in
competitive system)
- Exploratory technical research in product-style area (technology, market,
product).
Fashion trends and designers
Designers with strong personalities will generally not adhere fully to market trends & will
develop trends in an original way.
Designers’ research methods cannot be categorised. Sources of inspiration come from
history, art, cinema, travelling, nature. → collect personal archives too.
Each brand has to select what is good for the target customer from the general trend
scenario.
Fashion design is a practical craft and what it can achieve is constrained by:
- Technical methods
- Limits of the human body and its ROM
- Current lifestyle and mindsets
→ because of limitations, designers often spend more time looking to the past & thus imitate
style of another generation
Roots of modern fashion lie in:
- Rediscovering the past
- Recreating the past
- Recycling the past
→ innovation and radical change of directions are rare in fashion because too avant-garde
fashion is seldom commercially successful.
BUT retro trends are not a recent invention → Dior’s “New
LooK” (1947) was inspired by Belle Epoque.
Due to globalisation in media and in consumer behaviour,
trends change faster than ever before. Fashion as an
industry has developed into a very fast-moving sector with
numerous collections every year and new trends every
month.
→ to win the challenge of overcrowding, fashion brands
should interpret and reinvent trends within the contexts of
their own stylistic identity.
Role of Creative Director is to be the filter between trends and the company’s personality.
→ trends can thus be portrayed in different ways by a radical brand, modern brand and
classic brand (ex. Jungle print)
ALSO brands should know how to adapt to local contexts & have to propose a global style
which has to be customisable in terms of wearability, cultural sensitivity, diverse aesthetic
tastes.
The concept of stylistic identity
Fashion brands propose new collections every season according to what trends will be.
Brands should also preserve their own individual stylistic codes to maintain:
- Positioning
- Brand identity
Without stylistic identity all brands would be the same every season and there would be no
competition.
→ Brands offer their seasonal collection styles, which must be consistent with the company’s
overall identity.
Stylistic identity is essential throughout all collections because it is a promise to the
customer. Customers need to feel consistency and similarity for the brand to be successful.
BUT stylistic identity should not be a standard or cage – it should be a direction along which
to make the brand evolve → Uniformity is
NOT creativity. Ex. gucci loafers.
Elements of stylistic identity:
- Brand logo
- Colours
- Fabrics
- Patterns
- Details
- Lines
Designers MUST be extremely specific with each factor.
1. Hue, intensity, and selection of the palette for the colour
2. Texture, performance, weight and feel of fabric
3. Direction, seams, openings, stability and crispness of the lines
Prints are also a very important element to a brand’s stylistic code.
Examples:
Armani always uses neutral and calm colours and a bright colour only seldom in seasonal
lines.
I am known as the stylist without color, the inventor of “greige”- across between grey and
beige. I love these neutral tones, they are calm, serene; they provide a background upon which
anyone can express himself. It is a way to connect and combine the other colors It is a base to work
on, and it is never definitive, never dissonant, never a passing trend. It is always something that
remains, a versatile base on which, from time to time, to imagine other things (Giorgio Armani, Armani
Press)
Versace uses very warm and cool colours in every collection.
Burberry has its check.
Dolce & Gabbana use the leopard print.
Missoni uses waves.
Louis Vuitton has its monogram logo.
→ elements that are permanent and appear in every seasonal collection.
Case study - Ralph Lauren
Ralph Lauren has a strong stylistic identity rooted in some timeless
symbols. The iconic product which the company built its fortune on is
the classic polo shirt with the horse and polo player as a logo.
Style described as: classic and timeless.
→ inspired by the lifestyle of the American upper class of the east
coast. But also inspired by the lifestyle of Native Americans.
Self described as: “A tweedy English-American look with a French
cut”. And has always been against obsessive fashionability.
I am not a fashion person. I am anti-fashion. I do not like to be part of
that world. It is too transient. I have never been influenced by it. I am interested in longevity,
timelessness, style – not fashion.
Case study - Missonis
Italian fashion house that became famous in the 1960s and its style identity was an
unmistakable look. Brightly coloured knitwear with lines, squares and designs that could be
freely combined. Idea that uncoordinated pieces could be “put together”.
Missoni has a distinctive style and very recognisable products.
1980s the brand had to renew their product.
1990s Missoni went into crisis because of new minimalism and black style which was too far
from theirs. Thus a process of “cleansing” was started & the style of the mono-brand
boutiques followed the general trend of clean, white and few clothes on display.
→ The colours remained but
- Ranges
- Designs
- Matches
- Modelling
- Materials
Were changed. → the “put together” look was challenged → jumpers still had geometric
patterns but were now combined with a solid-colour jacket (or vice versa). Their attempt was
the encourage modernisation of style without giving it up completely.
If Missoni had left its unique style, it would not have been credible because it could not enter
spaces where it did not belong in the mind of the consumers.
Luxury
Luxury goods connote opulence:
- High quality
- Expensive
- Branded items
Sociologically, luxury items may be used to signal wealth and are emblematic of an upscale,
lavish lifestyle.
Etymologically, the word luxury has been used with its contemporary meaning since the 17th
century. “Luxury” originates from
- Latin word “luxus”: exuberance of vegetation, metaphorically the abundance of
delicious things.
- Greed term “lox-os”: growing in a twisted way, oblique → growing too much or
excess.
→ from luxus comes “luxuria”: intensive desire or craving for self gratification. Thus from the
same etymology come two different meanings of the word:
- Positive: “luxus” as splendour
- Negative: “luxuria” as sin and decadence
Luxury is always associated with opposite meanings:
- Useful and superfluous
- Magnificent and wicked
- Splendour and extravagance
Meaning of luxury over the centuries has evolved from a value associated with the public
sphere to a value related to individual experiences.
Projecting status was the original mission of luxury goods. Today it still is the main driver of
luxury consumption in some markets and for some people.
In more sophisticated markets luxury leans more into:
- Expressing oneself
- Being and enjoying
Instead of owning and displaying.
The ultimate luxury items for trendsetting luxury clients are truly discreet and items which no
one can quite identify as things that show how confident or wealthy you are.
Ex. Bottega Veneta has no logo but lets you choose your own initials as branding on your
bag.
Gilles Lipovetsky: in modern times, luxury helps support an individual image rather than a
social image.
Today luxury is a multi-dimensional concept that means different things to different people.
Findings of a study on associations to the word luxury:
- Excellence → quality, reliability, made to last
- High price → high quality, scarcity
- Aesthetic value
- Heritage → myth, legend
Conclusion: there are many different visions, ambiguous attitudes and opinions on luxury.
Thus, definitions of the word are highly subjective and should be interpreted in different ways
according to age and ethnicity.
Sources: E. Corbellini, S. Saviolo“Managing fashion and luxury companies”, Rizzoli Etas, Milano 2009
Luxury products
Segments that are considered luxury in terms of apparel relate to haute couture and
ready-to-wear. Today clothing is losing ground in terms of its contribution so sales and
corporate profits. Clothing is still the framework in which designers can present a lifestyle
and best express their creativity, but it is no longer all that matters.
Segments that traditionally belong to the luxury system are:
● Accessories – leather goods, shoes, silk items
○ Accessory market is hyper-segmented
○ There are very accessible items for wide diffusion (ex. Gucci keychain)
○ Also very exclusive articles in form of limited editions and custom made
goods
○ Today accessories are no longer compliments as they create the look
● Perfumes and cosmetics
○ Fashion companies have entered this sector through licensing agreements
with leading companies in the same sector as l’oreal and Estee Lauder.
○ Through this collaboration fashion brands have been able to count on
continuous, worldwide launches, promoted by famous celebrities and capillary
distribution.
○ For brands like Chanel, Dior, and Giorgio Armani, perfumes and cosmetics
account for a significant portion of turnover.
● Jewellery and watches
○ Historically considered luxury, based on the concept of eternity and
preciousness
○ Innovation in design and the fashion effect have contaminated this sector as
well.
Today the luxury sector has expanded to include any product which is a component of a
luxurious lifestyle. (ex. Sailing, home furniture, spas, technology, food).
A recent trend is the progressive shift of consumer interest and spending towards luxurious
experiences rather than products.
Sources: E. Corbellini, S. Saviolo“Managing fashion and luxury companies”, Rizzoli Etas, Milano 2009
Luxury industry segmentation
The concept of luxury has changed over the years.
- Historical(ly) luxury brands have adopted trade down strategies where they extend
their offering to include products for greater accessibility.
- Mass market brands have adopted trading up strategies with which they appropriate
the design, communication and marketing environment of luxury products.
Luxury companies are further segmenting their offering according to exclusive, selective and
accessible categories.
- Supreme luxury
- Unique pieces, very expensive, precious materials, handcraft, exclusivity, very
few brands
- Luxury
- Quality, style, heritage, brand identity, selectivity of targe, media
- Affordable luxury
- High fashion content, price/quality, accessibility
of target, power of communication
Some products, which were once considered commodities,
have changed their communication and design following the
luxury strategy. (es. San pellegrino)
Luxury and mass market brands have grown into segments
that did not previously exist.
Product market can be imagined as a pyramid.
Concept of luxury applies to super exclusive, ultra expensive
goods and services. These are unknown and not available to the general public.
All categories can be driven by different brands or all within the same one.
BUT there are 2 differences between truly luxury brands and premium brands
1. Luxury brands enter product or service categories and more accessible price ranges
while preserving their recognisability
a. Products and packaging
b. Communication advertising
c. Visual and service in shops
2. As accessible offering expands, the historical core product is repositioned even
higher to ensure that the “dream factor” remains unchanged.
Supreme luxury is the response of luxury brands’ growing democratisation. Here attention to
detail is fanatical.
Uniqueness, personalisation (can be done at different levels), and limitations are concepts
that are expanded in luxury.
Originally limited edition products/series were the consequence of production restrictions
due to short supply of raw material and qualified craftsmanship.
→ still true for some accessories like Bottega Veneta’s Cabat bag which takes 2 days to
make.
Today limited editions are also utilised by the mass market – used as a marketing strategy to
enhance the desirability of a brand by commercialising one-off production that cannot be
repeated in the future.
→ in high end, running limited editions on special items is usually done in conjunction with
certain events (fundraisings or anniversaries) and places (store openings or new markets).
One-of-a-kind items like certain pieces of jewellery or tailored garments.
Made to measure articles which are not based on a unique model, but are instead a unique
combination of stylistic options such as colours, materials and details.
At the base of they pyramid is the masstige: mass business logic that takes on prestige
connotations (apple and levi’s). Current concepts:
- Entry lux – lowest priced models from a manufacturer or line that’s normally
associated with luxury (ex. City cars by bmw/lexus)
- Populux – low cost consumer goods that are also perceived as being stylish or
fashionable (zara)
- Commodity chic – once an undifferentiated product, now an expression of taste (coca
cola)
Fashion and luxury
Concept of luxury pertains to something:
- Expensive
- Hard to obtain
- Not necessary
- Extravagant
Ex. gucci dog bags
Fashion vs luxury:
● Concept of fashion has to do with something that changes. Fashion is forward
looking.
○ Has to do with the evolution of styles across different market segments, from
top to mass.
● Luxury is timeless and well grounded in the past.
○ Has to do with one or few market segments, as defined by price
Either concept does not define one single industry or one product category but both identify
a wider concept applicable to heterogeneous product categories. They used to be two
different markets and concepts, today the boundaries between the two seem to blur.
→ Fashion companies such as Armani, Versace and Prada are moving into luxury because
these brands are offering exclusive, timeless and custom made lines.
→ Luxury brands such as Louis Vuitton and Hermes are entering into fashion apparel and
accessories selling seasonal collections with the collaboration of fashion designers. (es. LV x
Supreme)
Timeless luxury – concept of time in consumption of luxury goods is marked by the
dichotomy between:
- Permanence: inalterability of stylistic codes
- Fashion as a continual and planned transformation of stylistic codes
→ Birkin and Kelly
In traditional luxury, products lasted over time as they did not go out of fashion. Products
needed time to earn a solid reputation and build relationships with their customers.
→ luxury in this sense can still be found in brands such as Hermes and Cartier.
Luxury represents a series of signs that are timeless.
Today another form of luxury co-exists with the timeless luxury – the luxury of treating luxury
goods like fashion items.
Young people in particular demand that brands reinvent themselves and modernise their
past.
→ LV did this with reinterpretations of the Keepall model bag (most legendary of all LV travel
bags) – today it is even more cult than ever
Bag was created in 1930 and used by Sophia Loren and Audrey Hepburn.
In 2001 Stephen Sprouse presented the Graffiti version.
In 2003 Takashi Murakami made it multicoloured.
In 2005 Takashi Marakami adorned it with smiling red cherries for the Cherry
Blossom Pattern Collection.
Luxury brands need to fulfil all the following needs:
1. Projecting the present into the future, creating iconic readily recognisable products
associated with their genetic code
2. Eternalising the present by challenging codes with radical creativity, beyond all
expectation
Sources: E. Corbellini, S. Saviolo“Managing fashion and luxury companies”, Rizzoli Etas, Milano 2009
Sales and production process
There are 2 types of production and business logics that fashion companies choose:
1. Made-to-order: customer order - make - finished goods - deliver
a. Companies produce only the part of the seasonal collection that has already
been sold to retail clients
b. Companies follow these strategies:
i.
Building the seasonal sample collection
ii.
Presenting the collection
iii.
Acquiring orders
iv.
Launching production
v.
Delivering products
c. Process allows the firm to minimise unsold stocks – unsold stocks will be out
of fashion the following season
d. Traditional logic of high-end fashion companies
2. Made-to-stock: make - finished goods - customer order - deliver
a. Companies produce the offer that is planned for the season on the basis of
sales forecasts
b. Works for basic items that are sold year after year with minimal modifications
& fast fashion
c. Fast fashion produces mini packages in order to shrink time to market and
lead time
d. Stages of logic:
i.
Sales forecast
ii.
Production planning
iii.
Production to launch
iv.
Sales and delivery
Make-to-stock guarantees a much more rapid
delivery time compared to the make-to-order logic.
Up until the 1990s the two models existed in a pure state. Today the business logics have
moved closer together resulting in mutual contamination. To be successful, the key words
are now speed and market proximity.
Historically make-to-order was characterised by:
- Long lead times – averaged 3-4 months
- Long time to market – form design to delivery of collection usually around 9-11
months
Advantages:
- Minimising risks – guaranteed low levels of leftover stock for the producer
- Long lead times – chance to plan and compensate for inefficiency n timing and
resources allocation
- Cash flow was predictable
Disadvantages:
- Company was far from market and the consumer service was lacking
- Merchandise remains unchanged with respect to the season and upcoming trends
- Not possible to fine-tune merchandise on offer
In recent times traditional make-to-offer has begun to evolve. Main collection enhanced by
pre-collections with staggered delivery times. Seasonal lines were integrated with mini
packets or “flashes”.
→ The ability to deliver (to right place at right time) and to replenish stores became critical
success factors. To ensure prompt delivery, make-to-order companies began to work a part
of their collection with a make-to-stock logic. Before getting any feedback on sell-out,
companies gamble on certain articles, producing them in excess of orders.
Pure quick fashion logic was a model
developed by companies that worked on time
to market and to service.
Make-to-stock model was common in other
industries, but in fashion there existed an
additional critical dimension: variety. The point
of departure was make-to-stock, but in order
for this model to work, a continual supply of
new/valid products (in terms of fashion content
and stylistic distinction) had to be fed into the
market.
→ made-to-stock companies work not on the basis of orders received but through
continually monitoring sell-in.
→ speed in terms of time to market (product development) was a vital prerequisite.
Quick fashion was very close to the market: time to market ran from 20 days to 2 months,
depending on product complexity. This was possible because the several months it took to
arrange the sample collection, typical of garment producers, were eliminated (along with
research investments).
Advantage of quick fashion companies was their ability to make a garment with high fashion
content very fast. Traditionally, fast fashion was a follower and did not create new trends.
Fast fashion pitted the major ones and copied them.
Critical success factors were:
1. Production network – flexible and decentralised
2. Distribution based on wholesale diffusion centres located in easy-to-reach places for
retailers.
Major disadvantage of this model arose from the challenge of brand building.
→ permanent stylistic codes which characterise the product were lacking. No investments
were made in image (neither in advertising or in store).
In order to achieve a differentiated market positioning, fast fashion companies have started
to introduce make-to-order main collections. These have some recognisable stylistic codes
and weekly mini-collections aimed at refreshing merchandising in store.
Today the 2 logics exist side by side in fashion firms, as the offer systems contain both
fashion and continuative items.
Sources: E. Corbellini, S. Saviolo“Managing fashion and luxury companies”, Rizzoli Etas, Milano 2009
History
Fashion was not available to everyone. Became democratic in 1960s - 1970s with
ready-to-wear collections.
To communicate new fashions poupées de mode (dolls) were sent from Paris → in the
1600s French court as the centre for development of new fashion trends.
In the 18th century fashion press developed → made information about fashion available to
all.
Most likely first fashion shows took place in Paris around 1850. Shows made clothes more
desirable, increasing seductive impact and facilitating their purchase. Models showed the
value of clothes, and were not supposed to be beautiful since focus needed to be on the
dress.
In the 1920s fashion shows became important social events taking place in ateliers during
sporting events or in department stores.
Coco Chanel introduced a new posture for models, which is still used now: hips projected
forward, shoulders down, etc.
Dior introduced overwhelming rhythm in movements of the models to
give life to its dresses, instead of traditional calm walk. Dior New Look
collection 1947.
In the 60s/70s society changed radically and young people became
leading actors. New cultures and values were introduced.
Traditional fashion show was completely changed by ex. Ysl, Pierre
Cardin, Mary Quant, who encouraged models to be looser and less
stiff on catwalk.
In the mid 70s a period of rebellion began to weaken and in the 80s it disappeared.
In the 80s, the new life goals became professional success and economic well-being. Men
and women flaunted luxury and wealth with designer clothes. Fashion was able to satisfy the
desire to appear & became a symbol of the ephemeral (i.e. lasting for only a short time).
Fashion shows became exaggerated & became real happenings with theatrical
performances and guest stars on the catwalk. Fashion shows became must see events.
Ex. of grandeur is one organised at Zenith in Paris by Thierry Mugler.
Modern fashion show pattern was developed in the nineties. Supermodels became
fundamental for the success of fashion shows & became media icons (magazine covers, tv).
Gianni Versace was one of the first designers to understand their importance.
New connection between fashion and music and thus fashion became part of popular culture
& part of lifestyle. Models starred in music videos → leading to using the same song and
models in shows.
Versace transformed fashion from a minority interest of an elite to an object of mass culture
fascination.
→ Donatella recreated a “vintage” Versace
moment with the same models during her
show ss2018.
Sometimes designers have a vision and the power to anticipate
(& manipulate) the future.
Ex. Jean Paul Gaultier ss 1994 tattoos.
Question: is fashion art or not? Depends on what fashion it is. Zara no
but Haute Couture yes.
Alexander Mcqueen showing just how
connected fashion and art are. (spray
paint dress)
“Tell your story”
Brand heritage: treasure of resources, knowledge, traditions handed down over time →
people and events that have contributed to creating a brand
Has both tangible (products) and intangible meanings
- Based on past but guarantee of future success
Can be used for a brand’s storytelling
In order to build a lasting, successful brand, any company should first develop and
create an effective story
Ex. Burberry: story about london, everything connected to british culture, outdoor garments,
legendary check → coat is everlasting
→ has been inspired by the tradition of British military and sport, heritage has remained in
the brand's repositioning strategy (manages to innovate while remaining the same).
Storytelling is deeply rooted in human nature, we make sense of our surroundings through
stories.
→ stories are becoming a tool for brands to connect and form an emotional bond with their
audience.
→ companies build their brands through stories that explain to the customer the buying and
using experience.
Brands need to make you feel something, customer then more likely to buy product
Story is often why a brand exists and has success
→ Coco Chanel set out to re-invent fashion and liberate women from tradition → goal to
make wearers feel more free.
When story is true, it talks in mythological ways about the brand competence and validity
Heritage has a major impact on building brand positioning and brand image.
Customers trust and value the rich and long history and tradition of a brand, the more
positive and extensive past a company has, the more likely a customer will be to believe in
the company’s story and heritage.
Heritage made of:
- Place of origin (ex. hermes -paris, Fendi-rome)
- People : founder, family, designer inspiring the brand
- Brand legend: story told as legend (ex. Louis Vuitton travel, Cartier serving queens &
maharaja)
- Products (ex. Birkin and kelly bags for Hermes, trench coat for burberry, polo ralph
lauren, louboutin shoes, tuxedo for YSL, suit for Chanel)
Chanel: “there is no success without copies and imitation” → fashion is mimesis
It’s even more important… Copying it’s something very difficult, and it’s no longer in practice.
You know, we chased all these little tailors… We made a lot of fuss to defend non-existent things…
And it always seemed risky to me, which seemed the most ridiculous to me… And it is that we want to
defend in fashion… We can’t defend fashion… Why defend it? It’s not a fad if no one sees it. You
understand? And we want to defend it… So there are a lot of stories like … I don’t know much about
it… You didn’t ask me that question, well I tell you that this is another problem too. Not mine but the
problem of Haute Couture.. It’s the senseless fear of being copied. So for me the copy (being copied)
is a success.There is no success without copy and without imitation.. It doesn’t exist!.
“Savoir Faire”: knowing how to make a product the best it can be, for functionality but also
connecting it to heritage
Competitors can imitate a brand or its products but cannot imitate history.
(ex. Steve Madden) Thus customers will trust the brand less. There is no connection.
Heritage is more important for luxury and fashion products, less for consumer and durable
products. Technology is vital for success.
Company should creatively interpret the value in its brand by developing a true and
evocative vocabulary, imagery, and emotional connection.
Authenticity must be brought to life in the minds of the target audience
Corporate museum is the best way to showcase brand’s history and heritage
→ also company archives more important every day
Sometimes there’s an absence of corporate history.
Ex. Dove created its storytelling with its line and packaging, what it is trying to help
“Campaign for real beauty” → pitted dove against bulk of prevailing western culture
What’s needed is a strong sense of self/great positioning.
New brands need to create their story and heritage.
Ex. Brunello Cuccinelli
- Founded in 1978, cashmere garments for women
- Now sells luxury to both men and women
- 1985 bought 14th century castle of Solomeo
- Logo is representative of mediaeval seal → conveys dignity and luxury → castle date
instead of founding date
- Business model with an ethical and humanist vocation but efficient
- Creativity, italian production, high quality, craftsmanship, innovation
- Lifestyle → tell you how to live your life
- Strategic actions to transfer the values of the territory, origin, to brand and product
- Promotions not only connected to product but also art and culture of the system,
lifestyle connected with ‘made in italy’
Questions:
1. Heritage is made of building blocks, which are these blocks? Place people, legend, products
2. History becomes heritage when? When company is able to create compelling story about it
3. Art of travelling is the brand legend of ? Louis Vuitton
4. Serving queens and is a brand legend of? Cartier
5. Birkin and kelly bags are products of? Hermes
6. Trench is? Burberry
7. Can imitators copy the history of a brand? No
8. Can all brands create storytelling? Yes