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Fashion Communication

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! ! ! ! PUBLICITY AND PUBLIC RELATIONS:

Assignment - 1

INDIA!

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REPORT PRESENTED BY:! Shalini Mohanty!
9th November, 2013!

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! 2 4 t h O c t o b e r, 2 0 1 3 • Raffles Design International, Mumbai

Table of Contents!

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Table of Contents! Indian Luxury Retail Market!
Introduction! i! The Indian and the Global Luxury Market! 2! ! 2!

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Publicity and PR: Successes!
Case Study - HUGO BOSS! 3! Case Study - Charles & Keith! Case Study - Ray-ban! ! 7 6!

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PR & PUBLICITY: Failures!
Case Study 1 - BVLGARI! Case Study 2 - FCUK!10! 10!

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Why did BVLGARI and FCUK fail?!
The Indian Customer! 1! 1 Indian customers value…! 12!

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Demographics of Indian Luxury Customer - Typically a 25 - 45 year old entrepreneur. ! 12! Learning Points.! 13!

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Indian Luxury Retail Market!

! Introduction! Currently, India is the second fastest growing market in Asia Pacific region and is expected to be the 2nd largest economy in the world by 2040. She is currently the second fastest growing luxury market in the world with a predicted growth rate of 25% over the next 5 years.! At the moment, the Indian Luxury Market is valued at $4.8 billion where apparel, jewellery and personal are are the largest sectors in market. Although it forms only 2% of global share, it shows a lot of scope for expansion in the next decade. ! Presently, India is home to approximately 103,000 millionaires where 16,000 get added to the list every year on an average!

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The Indian and the Global Luxury Market! The Indian Market is a tough nut to crack for international brands hoping to expand their empires on Indian soil because it is so very different from the rest of its Asian counterparts. While The global market is dominated by apparel (43%) followed by personal care (28%), the Indian market is ruled by the jewellery & watches (39%) followed by the apparel industry which comprises 29% of the market. ! Knowing what drives the consumer to the luxury market of any country is very important and this segmentation will be the factual basis of if or not the PR and Publicity of international brands worked for the Indian market or not. !

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Wine & Spirits Art Jewellery & Watches Personal Care Apparel

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Publicity and PR: Successes!

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Case Study - HUGO BOSS!

A German luxury fashion house based in Metzingen, Germany, it is named after it’s founder, Hugo Boss. By 1950, company received it’s first order of men’s suits. In the 1970s, the first collection of branded suits were soon produced soon after which it become a registered trademark in 1977. HUGO BOSS now boasts having at least 6,102 points of sales, 364 direct retail stores, 537 monobrand retail stores and over 1000 shops owned by franchises all over the world across 124 countries. In 2010, the company made sales worth 1.7b euros and net profit of 190m euros, with royalties of 78m or 42% of total net profit.!

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HUGO BOSS entered the Indian market in 2003 when it opened the first showroom in New Delhi and has been expanding in the country ever since then. The ongoing expansion in the country was only possible because of it’s PR Strategies among it’s publics, and here is the analysis along with it. !

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1. Consumers & Users.! The various brands under the group have very well defined target markets their products cater to their customers very well as well. It has made it’s presence known very well around the world by constant marketing materials in magazines, newspapers, fashion and news websites, fashion consumer portals like net-a-porter.com, blogs, and many social media marketing platforms such as Facebook, twitter, Pinterest, Instagram, foursquare, Youtube and Google+. !

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2. Potential Employees.! HUGO BOSS inspires fresh graduates looking for jobs in big companies as they have various programs and opportunities who wish to learn from the fashion mavens in their company. the Want Ads, The HUGO BOSS Talent Pool and Internships are one of the few examples of such programs in HUGO BOSS.!

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3. Current Employees.! HUGO BOSS has stimulating working environment that comprises of a dynamic atmosphere, creativity, problem-solving approach, flair and style. It provides an environment buzzing with international élan, zeitgeist and innovation. This shapes attitudes of employees and interaction at the workplace - defining the corporate culture. They offer all of their employees with everything they need to cultivate the versatility, commitment and enthusiasm.!

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4. The Community.! Apart from using traditional forms of advertising such as print, they also use new marketing instruments such as social networks. Sport sponsorship activities focus on premium sports such as sailing, golf and Formula 1 that convey brand values such as dynamics, perfection and precision.! 5. Investor Relations.! To engage prospective investors and update their current investors, they have quarterly and annual reports on their corporate website.!
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6. Suppliers.! Most of them are made in Asia, Germany and eastern Europe!

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What’s more interesting is that all of their products are labeled “Made By HUGO BOSS”, that shows shared responsibility that comes with partnerships with suppliers.!

! Obliges them to guarantee exemplary production conditions in the factories. ! ! ! !

Active interest in all production sites worldwide, providing advice, support and encouragement to our suppliers. ! Help them develop or optimize a corporate strategy that is relevant to their goals and needs.!

7. Distributors.! HUGO BOSS sells its products in 124 countries worldwide. !

! Today customers can purchase HUGO BOSS products at more than 6,100 points of sale. ! ! ! !
HUGO BOSS stores are operated both by franchise partners and by the Group itself.!

In addition to multi-brand points of sale operated by wholesale partners, the importance of monobrand points of sale is growing significantly. !

8. Opinion Leaders.! HUGO BOSS has a Code of Conduct, where all employees of HUGO BOSS across the world are obliged to adhere to maintaining ethical business practices, fair conduct and compliance with all laws – without exception.!

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Animal Rights: Ensures that animals are treated properly and considerately. HUGO BOSS respects the need to protect endangered species and therefore supports efforts to maintain biodiversity.! Environment: “intelligent” architecture and building technology help to minimize energy requirements. Cooling ceilings serve as environmentally-friendly air conditioners, while state-of the-art solar panels meet a substantial part of the buildings’ energy needs.! Human Resources: ! Identify and strategically promote the strengths and potential of individual employees.! Flexible family support programs enabling working parents to pursue careers while raising children.! Nutritionally balanced menus in the company cafeterias! Advisory service on work-life balancing.!

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Society: Supports UNICEF.!
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Production: Safety at work, the prohibition of child labor and the payment of fair wages.!

Case Study - Charles & Keith!

CHARLES & KEITH, the eponymous fashionable shoe brand from Singapore was launched in 1996. Carrying remarkable high street fashion shoes and accessories, they developed a distinctive line of fashion forward designs that cater to market sentiments in fast velocity. They focus a lot of attention to product design and fashion trends is the driving aesthetic force! With an attitude that exudes style and confidence, CHARLES & KEITH has captured a legion of loyal fans and positioned itself as a sought-after and preferred fashion brand in today's highly competitive world.! In the framework of the development of Corporate Social Responsibility, CHARLES & KEITH is committed to several initiatives for the society and also to encourage the ethical behavior of employees.! CHARLES & KEITH places great importance on being a socially responsible company by contributing in numerous ways to the community it operates in. CHARLES & KEITH focuses on 3 main principles:! Humanitarian Causes! Human Excellence! Environmental Initiatives!

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French luxury house Louis Vuitton Moet Hennessy (LVMH ) invested $25 million in the developFashion Communication!

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ment of premium fashion shoe brand Charles and Keith in Indian cities like Chennai, Kolkata, Bangalore, Lucknow and Ludhiana. About 40 to 50 Charles and Keith stores will be opened across the country. It may be noted that Charles and Keith is 20 per cent owned by LVMH.!

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Case Study - Ray-ban!

Ray-Ban is an Italian brand of sunglasses founded in 1937 by Bausch & Lomb. In 1999, Bausch & Lomb sold the brand to an Italian group Luxottica Group for a reported $640 million.! The history of Ray-Ban aviators dates back to the 1920s, when new airplanes allowed people to fly higher and farther. ! In 1929, when US Army Air Corps lieutenant, General John MacCready asked New York-based medical equipment manufacturer Bausch & Lomb to create army pilot sunglasses that would stop his men suffering headaches and nausea caused by the intense blue and white hues of the sky, a new kind of glasses was introduced. ! The prototype, created in 1936 and known as ‘Anti-Glare’, had plastic frames and green lenses that could cut out the glare without obscuring vision.The sunglasses were remodelled with a metal frame the following year and rebranded as the 'Ray-Ban Aviator'. ! On May 7, 1937, Bausch & Lomb took out the patent, and the Aviator was born.! The fifties was when Ray-Bans had gained recognition through American pop-culture endorsements for the first time. ! In 1952, Ray-Ban created another classic style, the Ray-Ban Wayfarer, this time with plastic frames. They soon became popular in Hollywood.!

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Kim Novak and Marilyn Monroe wore Wayfarers in public and movies. As the style grew in popularity, celebrities such as Roy Orbison, James Deam, Bob Dylan, and John F. Kennedy were seen in public and on television and movies wearing Wayfarers.! In the 90s, Ray Ban came out with a series of innovation and sleek looking design shown in the series of the following models: Predators, Inertia, Prophecy, Gatsby, Sidestreet and Cutters, just to mention a few of them.! Ray-Ban: PR & PUBLICITY! 1. Sales Campaigns.! In 2007 the company introduced a new campaign that aimed to make the brand more refreshing and compelling, especially toward younger people. Never Hide was its name; and it aimed to express the Ray-Ban ideology: "Sunglasses that place you at the centre of attention beyond trends, transcending time and strongly customising whoever wears them".! Finally, in 2008 Ray-Ban presented Ray-Ban Remasters, a communication program that consolidated Ray-Ban's strong relationship with music, and its position as a global iconic brand. Ray-Ban Remasters was a partnership with eight musicians who recorded a song of their choice from the '50s and '60s and remastered these songs exclusively for Ray-Ban. These songs were performed live in a series of three events in North America, China, and Europe.! 2. Celebrity Endorsement! Throughout the '50s and '60s the Ray-Ban Wayfarer sunglasses were the choice of various musicians such as Bob Marley to Bob Dylan. Ray-Ban became more popular after the release of the movie Top Gun. The movie generated a 40 percent increase in sales for the RayBan Aviator brand. ! The '80s garnered great attention to Ray-Ban through movies. Bruce Willis wore them in his role as David Addison on Moonlighting. ! From 1982 through 1987 Ray-Ban placed their sunglasses in more than 60 movies and television shows. Tom Crusie also wore RayBan Wayfarer in Risky Business.! Bollywood actors and movies are forever endorsing the brand, and they still continue to do, whether on the red carpet or in the movies.!
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3. Internet Advertising!

Through virtual reality and online advertising Ray-Ban is now re-connecting with its customer/ client base. Through augmented reality the company can demo products through the "Ray-Ban Virtual Mirror", which bridges the gap between viewing and actually trying the product. Through the virtual mirror the consumer seems to try on actual sunglasses.! In terms of social media outlets, Ray-Ban has a Facebook page as well as a Twitter page.!

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PR & PUBLICITY: Failures!
Case Study 1 - BVLGARI! Based in Rome, since 1884 Bulgari has been creating renowned fine jewellery. ! Today it is a global and diversified luxury brand with a product and services portfolio of jewels, watches, accessories, fragrances, skincare, hotels and resorts featuring exceptional quality, an innovative style and impeccable service.! Bulgari ended it’s 7 year partnership with Lifestyle Tradelinks India in 2011. The brand exited after facing disappointing results in terms of sales, promotion and willingness of Indian customers to buy. Indian customers are more inclined to buy precious metals than precious stones that Bulgari boasts.! Not to mention the economic downturns…!

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Case Study 2 - FCUK! French Connection now has more than 1,500 outlets across 25 countries. FCUK hit the Indian market at the Lakme Fashion Week, April 2007. Today it has 21 points of sale across eight cities in India. Main segments are Men’s Apparel, Accessories, Women’s Apparel and watches. For the Indian markets it has an agreement with BMI India for distribution. ! But, globally, after 10 years of growth has come to a shuddering halt. ! An adaptation of the company’s infamous slogan may be more fitting description of its financial condition.! Making USD 300 per sq. feet of retail space compared to expected USD 1000, is a huge loss.! Given the global scenario, India should be high priority for FCUK.!

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Why did BVLGARI and FCUK fail?!
The Indian Customer!

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1. Brand Conscious! Indian customers are very aware of the luxury international brands and international trends because of increasing number of people travelling abroad where they are exposed to a variety of luxurious brands.!

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2. Price Sensitive! They demand for a product that is worth the money they’re paying for mostly because of traditional cultural values.!

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3. Personalized Connection! Peronsalized connection is important because Indian customers tend to emotionally attach themselves with the products they own or acquire.!

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4. High Expectations! Indian customers have high standards of service expectations as the luxury customer will have a long term association with the product.!

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Indian customers value…!

Demographics of Indian Luxury Customer - Typically a 25 - 45 year old entrepreneur. !

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Learning Points.!

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1. Indians are victims of habit.! Consumers get accustomed to shopping abroad. They’d rather spend 200 pounds on a shirt there, than INR 20,000 here. It is tough getting them to change.!

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2. Import duties are a headache.! Steep duties translate to prices 15% higher than in Europe. Jet-setting wealthy Indians hence shop abroad - means that luxury brands often struggle to make a profit in India.!

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3. Indian men love to shop.! Around the world, the mix is a 60:40 (woman:man), but in India, it’s skewed in favour of menswear. Men’s formal wear is currently, the fastest growing segment in India.!

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4. This season’s trends are missing.! Luxury retailers offer a limited product range sometimes stock second-rung products at astronomical prices. The customers therefore opt to shop abroad.!

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5. India needs a NY Fifth Avenue.! Luxury shopping is only limited to a few shopping arenas and five star hotels. 3 major ones are DLF Emporio in Delhi, UB City in Bangalore, and Palladium in Mumbai. However, right ambience is equally essential as well.

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...resources are responsible for its better performance while working in a dynamic environment which academics term as resource based view of the firm (RBV). The RBV analysis assumes that both resources and capabilities are important for better performance and explains why some firms perform better than others in an industry. Using RBV as a framework this essay aims to examine how ZARA generates sustainable competitive advantage. (Opening is good, you have been able to introduce theory that would be discussed the essay). “A fast fashion system combines quick response production capabilities with enhanced product design capabilities to both design latest products that capture the latest consumer trends and exploit minimal production lead times to match supply with uncertain demand” (Cachon and Swinney, 2011). Fast fashion is widely gaining recognition as being a key enabler for success for modern fashion retailers (Barnes and Lea-Greenwood, 2006). Fashion retailers such as ZARA, H&M and Benetton have adopted this strategy in order to enhance its business system and gain competitive advantage. ZARA was established in 1975 and is the flagship of Inditex (Industria de Disen˜o Textil) of Spain. In a relatively short span of time, ZARA became the largest and most internationalized of Inditex’s chains. At the end of 2001, it was operating in 507...

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Zara

...ZARA: Fashion Follower, Industry Leader Business of Fashion Case Study Competition Amanda Craig, Charlese Jones and Martha Nieto Philadelphia University April 2, 2004 ZARA: Fashion Follower, Industry Leader Table of Contents Introduction………………………………………………………………….1 Financial Analysis and Comparison…………………………………………………….…………....1 Strategic Advantages………………………………………………………………...2-3 Strategic Drawbacks…………………………………………………………….….. 3-4 Possibilities for Failure…………………………………………………………………....…..4 Recommendations/Conclusion………………………………………………5 Calculations and Financial Statements……………………………………….……………….Appendix A Articles: The Recent Status of ZARA.……………………………………….…………………...Appendix B Works Cited Works Referenced The global apparel market is a consumer-driven industry. Also, globalization and new technologies have allowed consumers to have more access to fashion. As a result, consumers are changing, competition is fierce, and companies are evolving to meet these demands. Zara, a Spanish-based chain owned by Inditex, is a retailer who has taken a new approach in the industry. With their unique strategy, Zara has the competitive advantage to be sustainable. In order to maintain that advantage and growth they must confront certain challenges that face traditional retailers in the apparel industry. Financial Analysis and Comparison To prove Zara has the prospect of sustainable growth in the international apparel market, it is important to understand and compare the financial differences...

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Research Proposal

...How does celebrity endorsements influence consumer behavior in fast fashion industry? 1. Introduction The fashion industry has come a long way over the past two decades. In the early years, big players such as Marks & Spencer offered a relatively straightforward fashion retail choice. However, with the lower cost of starting a retail outlet, the market has become more crowded since then. So called fast fashion retailers, are by no means the only one who succeeded and grew over the past years. Overall, the fast fashion retailers experienced a greater growth compared to the fashion industry as a whole (Cachon and Swinney, 2011). Such retailers are now ubiquitous and spotting a person on the streets who does not wear at least one fast fashion clothing item is rare. The key point to success lies in their business model; making the trends available to everyone. The rapid global changes have restructured the way fashion retailers do business. In today’s competitive market, using celebrity endorser to promote brands on television is a fairly common practice (Erdogan et al. 2001). Celebrity endorsements is believed to help consumers remember the message of the advertisement and the brand name the celebrity is endorsing. This creates the personality of a brand because when a celebrity is paired with a brand, this image helps shape the image of that brand in the minds of consumers (Argrawal & Kamakura, 1995). Celebrity endorsement is a new strategy in brand selling...

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