Industry Analysis and Business Models

What is brand segmentation

• Process of grouping brands based on similar market positioning and competition

Why is brand segmentation important

• Helps companies understand competitors positioning and industry structure

What is a business model

• The way a company creates delivers and captures value

What is the purpose of business model analysis

• Understand sources of competitive advantage and how the company makes money

What are the main steps of brand segmentation

• Define the business - Select variables - Position competitors - Identify clusters - Identify KSFs - Analyze industry attractiveness

What are key variables used in brand segmentation

• Price - Clients - End use - Materials - Style

What does the fashion brands pyramid show

• Relationship between price quality creativity and fashionability

What happens moving up the fashion pyramid

• Price quality creativity and exclusivity increase

What happens moving from classic to fashion on the pyramid

• Fashion content and trend orientation increase

What is haute couture

• One of a kind bespoke luxury fashion with extreme craftsmanship and exclusivity

What are the key success factors of haute couture

• Superior quality - Craftsmanship - Uniqueness - Exclusivity

Why is haute couture important for brands

• Builds dream magic and brand image

What is ready to wear

• Collections designed to be purchased and worn directly by consumers

What is the key success factor of ready to wear designer brands

• Strong designer image and brand identity

What is the diffusion segment

• More accessible lines connected to luxury ready to wear brands

What are the key success factors of diffusion brands

• Style and quality at a reasonable price

What characterizes diffusion production and distribution

• Higher production volumes and retail wholesale distribution

What is the bridge segment

• Premium industrial brands offering trendy products with good value for money

What characterizes bridge brands

• Mix of retail and wholesale - Usually outsourced production - Trendy but accessible products

What is the mass market segment

• Large retailers offering fashionable products at affordable prices

What is the key success factor of mass market brands

• Efficiency

What are important elements in mass market retail

• Glamorous communication - Entertaining shopping experience - Affordable fashion

What are the four main fashion business models

• Luxury brands - Fashion designers - Premium brands - Fashion retailers

What are the main business model building blocks

• Value proposition - Client segment - Value chain organization - Distribution channels

What is the value proposition

• Products services and experiences offered to customers

What is the client segment

• Target customers for the brand

What is value chain organization

• Degree of vertical integration and supply chain structure

What are distribution channels

• Ways brands reach customers and deliver value

What is the value proposition of luxury brands

• Timelessness - Quality excellence - Exclusivity - Craftsmanship

Who are the clients of luxury brands

• Wealthy privileged customers seeking timeless quality

How are luxury brands organized

• Strong vertical integration upstream and downstream

What distribution channels do luxury brands use

• DOS and exclusive distribution

What does Product is the king mean in luxury

• Product heritage craftsmanship and iconic value are more important than trends

What is the value proposition of fashion designers

• High fashion content and trend creation

Who are the clients of fashion designers

• Selected consumers focused on glamour style and quality

What distribution channels do fashion designers use

• DOS - Department stores - Multibrand stores

What is the key role of the designer

• Maintain consistency in collections communication and store image

Why are designers considered the soul of the brand

• Creative vision defines brand identity and positioning

How have fashion shows changed

• They moved from industry only events to public storytelling experiences

What is the modern role of fashion shows

• Strategic asset for storytelling rather than direct selling

Why did fashion shows become more important digitally

• Images and videos can spread instantly worldwide

What is the value proposition of premium brands

• Brand value and fashionable products with good value for money

What are key success factors of premium brands

• Marketing - Industrial know how - Fast time to market - Flexibility

Why is time to market important for premium brands

• Brands must react quickly to trends and customer demand

Why is flexibility important for premium brands

• They must continuously adapt product mix and collections

What is emotional storytelling in premium brands

• Creating strong brand concepts that emotionally engage consumers

What is the value proposition of fashion retailers

• Fashionability at a convenient price

Who are the target clients of fashion retailers

• Price sensitive consumers

How are fashion retailers organized

• Network based or vertically integrated supply chains

What distribution strategy do fashion retailers use

• Large stores in high traffic locations for visibility

What is direct distribution

• Brand sells directly to consumers through owned stores

What is indirect short channel distribution

• Brand sells through multibrand stores before reaching consumers

What is indirect long channel distribution

• Brand sells through distributors wholesalers and multibrand stores before consumers

What is sell in

• Products sold from brand to retailer

What is sell out

• Products sold from retailer directly to consumers

What characterizes fast fashion retailers

• Continuous collection updates and fast reaction to trends

What is the key success factor of fast fashion

• Speed and quick response

What is the key takeaway about luxury brands

• Focus on timelessness exclusivity craftsmanship and iconic products

What is the key takeaway about fashion designers

• Creative vision and storytelling drive the business

What is the key takeaway about premium brands

• Balance trendiness branding value and operational flexibility

What is the key takeaway about fashion retailers

• Offer fashionable products quickly at affordable prices