...The Burberry business model: creating an international luxury fashion brand Christopher M. Moore and Grete Birtwistle Introduction The viability, or otherwise, of a fashion brand is dependent upon the efficacy and appropriateness of the decisions of those responsible for its management. There are numerous examples of brands that have prospered and/or withered as a result of the business models that management have deployed in order to achieve their strategic (or not so strategic) objectives. Gucci, the Italian luxury brand is a case in point. In the 1950s the brand enjoyed significant success. It was the status brand of choice for Hollywood film stars and European royalty. However, just over a generation later, the brand suffered a loss of cachet and the once profitable business made significant losses. The adoption of a business strategy (which sacrificed management control over product development and distribution in favour of seemingly indiscriminate licensing agreements), undermined the credibility of Gucci as an exclusive and aspirational fashion brand (Jackson and Haird, 2003). Tom Ford’s arrest of Gucci’s decline in the 1990s has been well documented (Moore and Fernie, 2004), and has been attributed to his adoption of a business model that maximised internal controls with respect to product sourcing, brand communications and distribution. Ford’s legacy has been the implementation of an integrative business model which maximised “back-end synergies” in relation to logistics...
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...Cadogan, T. 2000). This article explores and examines the co-creation process, affirming the importance of co-creation in the entrepreneurial development of designer fashion enterprises particularly. By analysing the three essential stages through grounded theory and in-depth interviews, respectively, presentation, interpretation and reaction, the author holds the belief that the continuous cooperation between stakeholders and enterprises can help brand development effectively, and can obtain distinctive brand recognition in which condition...
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...This devastating experience drove Miyake to pursue a career in fashion and dedicate his life to “things that can be created, not destroyed, and that bring beauty and joy” (Miyake, 2009). I believe Miyake’s creative vision and fashion designs represent three principles of Japanese culture that best demonstrate the legacy of the country. This essay examines these three notions— the concept of “mottainai,” the importance of innovation, and a desire to embrace and understand other world cultures—and explains why I am convinced Miyake’s fashion collection would be the most accurate reflection of Japan’s cultural legacy in a time capsule containing all the world’s heritage. “Mottainai” is not just a word, but also a way of life in Japan. A simple English translation is “waste not, want not,” but even this does not truly convey its meaning. In the past, Japanese people handled their clothing with the greatest care, stitching their threadbare garments to repair them rather than simply throwing them away. Even now, the Japanese are mindful of “mottainai” for clothing, as it is common to use old towels as dust cloths, and unneeded garments as wrapping paper for gifts. Miyake’s first fashion collection, which debuted in New York in 1971 and Paris in 1973, was entitled A Piece of Cloth. All the dresses in this collection were made from square pieces of cloth and sewn by hand in order to convey “mottainai” to the rest of the fashion world. In addition to demonstrating the concept of “mottainai...
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...Introduction The Burberry business model: creating an international luxury fashion brand Christopher M. Moore and Grete Birtwistle The authors Christopher M. Moore is the Director for the Glasgow Centre for Retailing and Grete Birtwistle is Head of the Division of Marketing, Glasgow Caledonian University, Glasgow, UK. Keywords Premier brands, Brand management, Fashion Abstract The performance of the British fashion brand Burberry has been determined largely by the adoption of business models which, on occasion, have been detrimental to the company’s performance. For the financial year ending 31 March 1998, Burberry saw its annual profits drop from £62m to £25m, leading financial analysts to describe it as “an outdated business with a fashion cachet of almost zero”. However, from 1997, at the instigation of a newly appointed chief executive, Rose Marie Bravo, Burberry has radically re-aligned its business model and has enjoyed, as a result, significant improvements in its business performance. Drawing from extensive documentation that was published by Burberry in support of their initial public offering (IPO), this paper will provide a review of the history of Burberry; evaluate Burberry’s re-positioning strategy as defined by the firm in their IPO prospectus; and critically delineate Burberry’s current business model. Electronic access The Emerald Research Register for this journal is available at www.emeraldinsight.com/researchregister The...
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...Introduction of marketing environment 2 1.2 Macroenvironment-----PESTLE analysis of ZARA 2 1.3 Microenvironment analysis of ZARA 4 1.4 Poter’s three generic strategies on ZARA 4 1.5 SWOT analysis of ZARA 5 2 The importance of market research,marketing mix and service innovation for Zara 6 2.1 The importance of market research for ZARA 6 2.2 The importance of Marketing mix for ZARA 9 2.3 The importance of ZARA’S Service innovation 11 3 Marketing techniques for manager-decision 12 3.1 Segmentation ,targeting & positioning 12 3.2Marketing objectives and goals 14 3.3Marketing strategies and programmes 15 4 Conclusion and suggestions 17 References: 19 appendix…………………………...…………………..20 The market analysis of ZARA Introduction As one fashion brand of the Inditex Group, ZARA were founded in Spain in 1975, by Amancio Ortega and Rosalía Mera. When its first store provide low-priced lookalike products of popular, higher-end clothing fashions, after then turn out to be a success, and Ortega began opening more across Europe. During the 1980s, the company started to change the design, manufacturing, and distribution process to cut lead times and respond to the latest trends in a faster way, that is so-called "instant fashions". The company based its improvements on the usage of IT system and using groups of designers rather than...
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...European Planning Studies, Vol. 10, No. 4, 2002 RESEARCH BRIEFING The Fashion Industry in Galicia: Understanding the ‘Zara’ Phenomenon ARTURO REVILLA BONNIN ABSTRACT Galicia is traditionally one of the weaker regional economies in Spain. However it is home to one of the most successful global marketing phenomena of the age. Zara, the mid-market fashion arm of the Galician INDITEX Group, is amongst the ‘culprits’ that have been blamed for the demise from high street hegemony of such European retail notables as C&A, Littlewoods and Marks & Spencer. In this paper an analysis is provided of the mechanisms by which this peripheral region has succeeded in producing, from virtually nothing, a globally outstanding retail fashion industry in one of the world’s most cutthroat competitive industries. It is shown that regional, national and supra-national factors have had important parts to play, but that the Galician approach is nevertheless unique, compared to that of other fashion clothing regions. Among the special features at play are high levels of tacit and codi ed knowledge exploitation, integrated design, production and retailing and advanced retail feedback technology that enables anticipation of customer preference. 1. Introduction The fashion industry in Galicia presents different characteristics from that in the rest of Spain. Until the end of the 1970s, the Spanish textile industry was highly protected, oriented mainly towards domestic markets and with a very restricted...
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...of Industry and the Current Issues Facing Leading International Firms in Fashion Retailing Recent Global Trends in the Structure of Industry and the Current Issues Facing Leading International Firms in Fashion Retailing SUMMARY The fashion industry appears to be very dynamic with constant changes in customer attitudes altering the strategies of international firms and thus the structures of industry. The increase in customers concerned with environmentally issues has been mirrored as stores offer increasing ranges of eco-friendly products. A similar trend has occurred with relation to ethical shoppers. Companies understand the importance of being seen to be an ethical retailer and so many have invested in overseas management to keep track of suppliers. Different companies have chosen different strategies to help them to overcome current issues in international markets. For instance, Zara has progressed via forward integration, whereas H&M contract work out to suppliers. One strategy that all leading firms have adopted is the use of company websites. They are used to promote online shopping which has increased dramatically recently and it believed to continue increasing for some time. The elimination of quantitative import restrictions in 2004 must also be highlighted since it altered the way some company’s trade. It also allowed developing countries to extend into other branches of the fashion chain other than production. A further apparent trend would be the decrease...
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...Product design form is the exterior physical appearance of a product and its packaging design 2. The importance of product design impressions is that seeing a product gives the first impression of that product. Products that are more attractive to people will most likely have good sales even over high costs. Consumer’s preferences are performance, design, and then cost. * Product form is a way to gain consumer notice by being more attractive than your competitors * Product form communicates information to consumers by generating initial impressions * Product form affects the quality of our lives by providing sensory pleasure and simulation, whereas unattractive design will give us distaste * Product form can have a long lasting effects on consumers by reminiscing 3. Product design form Elements A. Style – B. High Prototypicality – C. Low Prototypicality – D. Fashion of the day or bygone era – E. Ornamentation – F. Craftsmanship – G. Ergonomics – involves the matching of a product to the target user’s capabilities to maximize safety, efficiency of use, and comfort. Ergonomic demands often have direct influence on form, affecting characteristics such as weight, texture and shape. Example is a glass bottle with ridges showing where to place your fingers. H. Conformance – meets some specified standard that has been developed for efficiency I. Reflectiveness – 4. Conclusion – product design is very...
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...Marketing Channel A marketing channel is defined as an organizednetwork of participants and companies that work together and perform activities that will enable the smooth flow of a product or service from the producers to the consumers (Bennet, 1988). Marketing channel is related to logistics management or thelogistical arrangements for delivering value to the customer. More specifically,marketing channels deal with the issue of the arrangements the organization makes to physically deliver its products to the customer. A channel is a set ofintermediary companies, people or agents who manage the movement of products and services from the manufacturer to the final user. All firms which take title to the product, or assist in transferring title as it moves from manufacturer toconsumer form part of thedistribution channel. A marketing channel aims to provide acompetitive advantage to the organization. It is related to supply chain management as both are involved in supplying a service or a product to the end users. Both are involved inpartnerships that are developed between organizations performing adjacent, linear steps in the chain. The supply chain or the marketing channel is viewed as a whole rather than a set of fragmented parts in order that activities, the basic units of competitive advantage, can be configured, confined and performed in different ways torival chains (Bradley, 2003). This paper will discuss the logistics, marketing channel and supply chain of an International...
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...Oscar de la Renta: A Latin Designer, Influencing fashion since the 1960’s. The world has enjoyed his designs for more than two decades. His name is an inspiration to anyone who loves Fashion. His charisma and philanthropies contributions make Oscar de La Renta one of the most acclaimed and recognized Latin designers in the World. Oscar de La Renta was born on July 22, 1932 in Santo Domingo, Dominican Republic, a tropical Island in the Caribbean. Born to a very prominent Dominican Family, Oscar Aristides de la Renta Fiallo was introduced to the Arts since early age. His upbringing in the Dominican Society provided him with an extra eye for beauty and style. Influenced by his mother, Maria Antonia Fiallo, young Oscar learned to appreciate high quality fabrics and beautiful clothes in a time and in a place where only few had access to luxury. In the 1930’s, the Dominican Island was under the dictatorship regimen of General Trujillo, civil rights violations, aggressions to the poor, and restrictions were part of the everyday life in those years. Due to his family status, Oscar was able to grow in a protected, secure and calm environment. His warm and generosity showed since an early age. Carrillo gives us an inside of this side of Oscar in those years in the following passage from his book: “There were many poor people in Santo Domingo, and Oscar became friends with a boy from a poor neighborhood. When his friend came over to play in the afternoon, Oscar always gave him...
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...Fashion Anatomy 320 Rosemeade Drive Dallas, TX 75287 FashionAnatomy@gmail.com Phone: 972-684-7664 December 16, 2012 Main Contact: Michael Smith www.fashionanatomy.com Table of Contents * Executive Summary…………………………………………………………………… 3-4 * Company Description………………………….........................................5 * Industry Analysis………………………………………………………………………..6 * Industry Size, Growth Rate, and Sales Projections…………………6-7 * Industry Structure…………………………………………………………………..7 * Nature of Participants……………………………………………………………..7 * Key Success Factors………………………………………………………………….8-9 * Industry Trends…………………………………………………………………………10-12 * Market Analysis………………………………………………………………………………12-14 * Market Segmentation Target Market Selection……..…………………..15-16 * Buyer Behavior………………………………………………………………………….17 * Competitor Analysis…………………………………………………………………..18 * Estimate of Annual Sales and Market Share…………………………………18-19 * Marketing Plan………………………………………………………………………………….20 * Overall Marketing Strategy……………………………………………………………20-22 * Pricing Strategy……………………………………………………………………………..22-23 * Sales Process………………………………………………………………………………23-24 * Management Team and Company Structure……………………………….25 * Management Team………………………………………………………………….25 * Board of Directors……………………………………………………………………25-27 * Board of Advisors………………………………………………………………………28-29 * Other Professionals…………………………………………………………………30 ...
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...Inditex is one of the world's largest fashion retailers by owning eight brands - Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque. There are over 6,700 stores worldwide. It is started as textiles maker by Amancio Ortega Gaona in a small workshop back in 1963. After 12 years, Inditex is official a dressmaker when the first Zara store is established in 1975, located in La Coruña, Spain. The main goal of Inditex is to offer highest quality products to all its customers. All Inditex processes are following their code of conduct where 4 main principle is applied. There are clear to wear and safe to wear, tested to wear, green to wear and right to wear. These are the foundations of the Group's environmental and sustainable strategy. To ensure the stability of the global operation, Inditex has 11 logistics centre for each of the brands to make sure the merchandise are distributed twice a week. There are new designs are coming out once a fortnight in Inditex. It is also one of the company that practicing fast fashion. In 2014, the net profit of Inditex had grown 5 percent to 2.5 billion euro (Spain. Inditex S.A.,2014). Inditex is maintaining the aggressive strategy in 2015. Alexander's (2015) article indicates that, Ortega's net worth hit $80 billion as stock in his holding company Industria de Diseno Textil (Inditex) reached an all-time high of 33.99 Euros per share. As mentioned above, the first Zara store is opened in La Coruña in 1975...
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...Sustainable Design Case Study on Fashion designer, Stella McCartney. • Stella McCartney would always touch on an element of a sustainable or eco collection in everything she did. • In her lingerie collection, she had a part of the collection that was organic, or with her Adidas collaboration again there were organic materials or recycled materials in the bags or shoes, and every part of her design at some stage comes into contact with that. • She wanted to isolate the collection and in itself make it completely sustainable .She stated she wanted to bring all those elements together and show the importance that it had within the brand. • The designer felt using conventional dyes was an efficient use of resources and had damaging consequences. Though she had to resort to using them in some of her collections she felt it was important to create high quality products for the consumer and not lose its desirability yet also try to be responsible in thinking how to source materials. • She usually sourced organic fabrics. • Some challenges she did face were playing by the rules and being limited. There were less colours, fabrics and different quality attributes she wasn't used to. • She agreed that "80 per cent of a product’s environmental impact is decided at the design stage". • She refrains from using fur or leather in her designs and she exemplified in the reason in the quote, "In the fashion world I think that most designers know fur is wrong. More and more of them also know about...
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... The importance of apparel product attributes for female buyers Ernest J North, Retha B de Vos and T Kotzé OPSOMMING Die doel van hierdie artikel is om die bevindinge van ‘n empiriese ondersoek te rapporteer wat uitgevoer is om vroulike verbruikers se aankoopbesluite vir ‘n kledingstuk te ontleed wat gebaseer is op die waarde wat hulle aan sekere eienskappe van die produk heg. Alhoewel menige studies in die verlede verbruikers se houdings jeens produkte en hul eienskappe gemeet het, is die moontlikheid van die effek van interaksie tussen die attribute oorgesien. In die Suid-Afrikaanse konteks het die literatuurstudie getoon dat daar ‘n behoefte is aan ‘n studie om te bepaal wat die waarde is wat vroulike verbruikers aan sekere produkeienskappe heg voordat aankoopbesluite gefinaliseer word. ‘n Vraelysopname is as primêre data-insamelingsmetode gebruik waartydens die respondente versoek is om aan te toon wat hul voorkeure is vir dertig gepaarde kombinasies van die produk en sy eienskappe. Hierdie studie het op vier eienskappe, naamlik handelsmerk, styl, kleinhandelaar en prys gefokus. Hipoteses is geformuleer en voorkeurkeuse-ontleding (“conjoint analysis”) is vir die ontleding van data gebruik. Die bevindinge toon aan dat daar beduidende verskille is in die waardes wat vroulike verbruikers heg aan die eienskappe van ‘n kledingstuk voordat aankoopbesluite geneem word. INTRODUCTION Although the apparel industry seems to be in the maturity stage and growth is slow, fashion trend...
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...that appeal to a wider age group. Seven also makes jeans for plus size women, while True Religion focuses on the very thin, very young woman. When applying the VRIO framework, True Religion does not hold a strong competitive advantage and its greatest resource is not trendsetting. There is nothing True Religion can do from keeping competitors neutralized or from entering the market, and the strongest competitive advantage True Religion has is its brand name. True Religion Brand is a design-based jeans brand. The company designs, manufactures, and markets different products such as jeans, jackets, t-shirts, pants, and hats. Even as demand for basic five-pocket denim jeans suffered from the shift in consumer preferences in casual wear in the late 1990s, demand for women’s fashion jeans grew. According to Angelo La Grega, president of VF Corporation’s Mass Market Denim Division, “The business is moving from pure commodity to fashion basics”. The primary reason for the resurgence in demand for fashion jeans was the availability of denim jeans in exciting new washes and finishes. The premium denim market, defined as jeans retailing for 100$ or more, would jump from a dollar market share...
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