Managing Fashion and Luxury Companies
Name and describe the first and second migration in the Asian Model.
first migration -> industrialized countries to Hong Kong, Taiwan, South Korea second migration -> China, Vietnam, Malaysia, Philippines
What are some Chinese market challenges?
foster brand awareness; grasp channel portfolio on a vast market; conduct effective CRM by using advanced technologies
What are the two types of players in current American apparel?
retailers -> competitors marketers -> guaranteed brand's success
What is storytelling?
strategic tool for communicating brand values
What is the five-stage process in which Asian consumers evolve?
stupor -> acceptance -> self- indulgence -> show-off -> way of life
What is the difference between style and fashion
style isn't trendy; style is form or quality and a manner of expression
What is the licensing lifecycle?
(1) line extension (2) brand stretching (3) brand extension check figure 14.1
What is the flying geese model?
relationship between changes in the stage of industrialization and the comparative advantage of countries
What are three actors in the textile pipeline?
(1) Bureaux de Style (2) synthetic/ natural fiber producers (3) Product Fairs for semi- finished goods
What are the two main collections per year?
(1) Spring/Summer (S/S) (2) Autumn/ Winter (A/W)
Why is there an increase in FOC?
(1) acceleration of product life cycle (2) increase control over distribution (3) change in consumer lifestyle (4) need for retailment
Name the fashion life cycle participants.
(1) innovators (2) opinion leaders (3) late adopters (4) laggards
Name the basis of client groups?
(1) intermediate clients (2) end customers
How is a brand distinguished?
(1) intrinsic value (2) symbolic value
Name the reasons multi business and multi brand may be well-suited to foster growth.
(1) access capital market (2) quality management (3) worldwide distribution and production structure (4) capitalization of experience and strong position with suppliers
We can define the seasonal offering into what two elements?
(1) aesthetic variables (2) competitive/commercial variables
What are three macro- segments of socio-demographic variables?
(1) affluent consumers (2) value- oriented consumers (3) fashion victims
What are three categories of brand equity?
(1) as financial value (2) as potential for brand extensions (3) consumer's perspectives
What is lean retailing?
(1) bar codes (2) uniform product codes (3) scanning devices for product identification (4) EDI and date processing (5) distribution centers and common standards used for quick, accurate replenishment orders
What are the three objectives in communication in fashion companies?
(1) brand awareness (2) brand image (3) reputation
What are some aesthetic elements?
(1) brand logo (2) colors (3) fabrics (4) patterns (5) details (6) lines (7) shape of piece
Name the different parts of the sales process.
(1) budgeting process (2) presenting the collections to the trade (3) order acquisition process (4) managing after-sales service
What are the principles in embracing the Chinese market?
(1) build awareness through location (2) build image through culture and lifestyle (3) create a brand experience through retailing (4) control your shop portfolio development (5) profile your client
What are the stages of make-to-order?
(1) building seasonal sample collection (2) presenting the collection (3) acquiring the orders (4) launching the production (5) delivering products
What are the main drivers for luxury consumption?
(1) conspicuous consumption (2) selective extravagance (3) fractional ownership (4) self- treating (5) early adopter (6) conspicuous austerity (7) snob-snob paradox/ omnivore-univore
What are the formats in the wholesale channel?
(1) corner (2) wall-unit (3) open sale
What are the five segmentations based on price?
(1) couture (2) ready to wear/ designer (3) diffusion (4) bridge (5) mass
What are two business models for path extensions?
(1) creating internal capabilities (2) licensing agreement
What are the basic requirements for segmentation?
(1) definition of each segment (2) achievable by the firm (3) targeted by specific brand mix
What are two segmentation macro-categories?
(1) descriptive segmentation (2) behavioral segmentation
What are the three pure-plays?
(1) discounted multibrand (2) full price multibrand (3) online clubs
What three levels are the distribution and retailing activities structured?
(1) distribution strategy (2) distribution policies (3) store level
What are some common paths in extension?
(1) embracing consumer perspective (2) innovating the extended category (3) continuing to nurture the core business (4) defining the right business model
How is the mass market further segmented?
(1) entry lux (2) populux (3) commodity chic
What are some key features of brand licensing agreements?
(1) exclusivity (2) duration (3) royalties (4) product and manufacturing approval (5) distribution plan (6) reporting from licensee (7) trademark registration (8) managerial roles
What is a brand's two choices for growth?
(1) expand into a new market (2) launch a new product
What are two sources of internal research and what can they further be broken into?
(1) exploratory market research (2) exploratory technical research
What are the four business models and describe the building blocks of each model?
(1) fashion griffe (2) luxury brands (3) premium brands (4) fast-fashion retailers
What are the product life cycle stages?
(1) fashion innovators (2) early adopters or fashion leaders (3) late majority (4) laggards or late adopters
What are the formats in the direct retail channel?
(1) flagship store (2) self-standing store (3) shop-in-shop
What are the recent trends in the structure and strategies of large European retailers?
(1) format changes -> increase store size and self-service (2) international competition -> internal and expanding scope of commercial and sourcing activities (3) reconfiguration of value chains -> internal relocation of production and involvement of retailers
What are the two main criteria of descriptive segmentation?
(1) geography (2) socio-demographics
What are the four elements in building brand identity?
(1) heritage (2) style (3) retail (4) communication
The language of fashion represents a means of communication that is what?
(1) high impact (2) consistent (3) universal
What is the trend in e-tailers?
(1) increase in pure-play (2) increase of Bricks- and Clicks
What are the recent trends in format changes?
(1) increasing in hypermarkets, e-tailers, specialty chains and factory outlets (2) decreasing in department stores
What is the trend in hypermarkets?
(1) increasing private labels (2) increasing clothing assortment
What is the integrated process of client orientation?
(1) information collection (2) structuring (3) statistical elaboration (4) demographic models (5) predictive model (6) segmentation of offering and communication
What are the two pillars that CRM is based on?
(1) inner customer oriented culture (2) integrated process of customer information
What are the two differences between truly luxury brands and premium brands?
(1) luxury brands enter product/ service categories and more accessible price ranges while preserving their recognizability (2) historical core products is repositioned even higher to ensure the dream factor
What are the two business logics that fashion companies may follow and describe them?
(1) make-to-order logic (2) "make-to-stock"
What does the Press Office do?
(1) manage images and video archives (2) issue and distribute new issues and other prepared publicity (3) building and keeping contacts (4) monitor and measure media coverage results
Retailers in luxury and fashion can be classified according to what two criteria and five categories?
(1) non-specialized -> department stores, hyper/super markets, mail-order retailers (2) specialize -> specialty chains, independent stores
What are two characteristics of Chinese consumers?
(1) ownership and display (2) brand consciousness with low awareness
What are the four building blocks of heritage?
(1) place (2) people (3) brand legend (4) products
What are the three activities of store management?
(1) point-of-sale (2) converting them into customers (3) efficiency
What is the generation breakdown?
(1) pre-teen (2) teens or net generation (3) generation flex (4) boomers (5) new seniors
What are three macro-criteria for segmenting the fashion industry?
(1) product end-uses (2) clients (3) price
What are the two main criteria for behavioral segmentation?
(1) purchasing behavior (2) lifestyles
What are the two channels in the distribution strategy?
(1) retail/direct channel (2) wholesale/ indirect channel
What are the stages of make-to-stock?
(1) sales forecasts (2) production planning (3) production launch (4) sales (5) delivery
What are the two wholesale/ indirect channel and describe them?
(1) short (2) long
What are the four major sources of fashion trends?
(1) socio-cultural (2) textile pipeline (3) technology (4) designer internal research
What are two brand extensions and describe?
(1) strategic brand extension (2) complementary brand extension
What are the segmentations of the luxury industry?
(1) supreme luxury (2) lifestyle luxury (3) accessible luxury (4) masstige
What is the reasons for decline in department stores?
(1) too much merchandise (2) high prices, not innovative, mediocre service and product knowledge
What are the three variables of purchasing behavior?
(1) user status (2) occasion of use (3) brand loyalty
What are the two perspectives on brand equity?
(1) value for the firm (2) value for the end customers
What are the four building blocks of the fashion and luxury business model?
(1) value proposition (2) target segments of clients (3) communication and distribution channels (4) value chain organization
What is the trend in specialty chains (i.e. Zara and H&M)?
(1) verticalization -> complete control of value chain (2) standardized store concepts (3) quick response to market and fashion trends (4) sales risks minimized (5) higher profitability
What are the four parts of retail identity?
(1) visual communication (2) store planning (3) store design (4) merchandising
What is "fast fashion"?
Ability to give the shopper the latest styles just six weeks after they first appear on the catwalk.
What does BRIC stand for?
Brazil, Russia, India, China
Competitive advantage of Italy compared to other countries is due the presence of what three elements?
Italian designers Italian entrepreneurs textile industry
Who is the first designer?
Paul Poiret
What is a fad?
Short-lived fashion, one that comes and goes.
What is the fashion pipeline?
Vertical system that starts from the production stage of raw materials to manufacturing and distribution stages of textile and clothing industries.
Name the products that make up the luxury system.
accessories, apparel, perfumes and cosmetics, jewelry and watches
What is the multi-approach in developing brand equity?
backbone -> brand knowledge base brand awareness -> recognition and recall brand image -> associations
What is the new consumer?
client-user-partner; anticipate consumer needs; shift to mass consumption
What is haute couture and who first opened the first haute couture house?
craftsmanship of the French fashion houses whose designers create and present their own seasonal collections; Charles Frederick Worth
What are the seasonal activities in product development?
collection guidelines and plan -> collection execution -> collection presentation -> fashion shows/ show room/ sales campaign -> production planning manufacturing -> deliveries -> distribution
What is luxury?
expensive, hard to obtain, extravagant, timeless, well grounded; one or few market segments; demand increases disproportionately to income
What are the elements of the luxury brand experience?
high price, imaginary and storytelling, tradition and heritage, superior quality, exclusive communication, superior service, selective distribution, innovation and creativity
What are some sociodemographic segmentations?
income; age; profession; family life cycle stages
What are the four players that dominate the competitive system in Italy?
industrial companies designers/ entrepreneurs multi-brand groups pure designers
What are the four cycles of the Italian apparel industry?
industrial production -> crisis and reaction of Italian apparel system -> "made in Italy" -> new century toward the integration of the system
Name the four stages of the product life cycle.
introduction, growth, maturity, decline
What is The Groups philosophy?
large investments in distribution large investments in communication tight control of production
What is the difference between line extension and brand extension?
line extension- launching a new line of products with the same brand and in the same product category but changing target, channels, or price range brand extension- leveraging on an existing brand to enter a totally new product category
What is a brand?
name, term, sign, or symbol, or a combination intended to identify goods or services of one seller and to differentiate them from competitors'
Who makes trends?
originate from fashion firms as a result from designer's interpretations
What is "flow delivery?"
pitching more than one main collection per season and churning out a continuous retail supply
Name the two perspectives of the fashion cycle.
planned obsolescence- new demand seasons after seasons chance- great product variety and variability over time
What is consumer segmentation?
process of classifying people into homogenous groups in terms of needs and reactions of marketing initiatives
What are some men and women differences of India consumers?
women -> accessories men -> evening wear