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people to buy them, and then next year we deliberately introduce something that will make those products old fashioned, out of date, obsolete”.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