Fashion and Luxury Merchandising

The main market segments in the fashion pyramid are

couture, ready-to-wear, diffusion, bride, mass

Discuss the importance of digital world and online channels for luxury brands

Increase the brand awareness and sales, engage with consumers across multiple social platforms, launching e-commerce sites and correctly position their brand online

• increase sales

• engage across platforms

• e-commerce sites

• brand position online

What are the main factors that influence the birth of long-term trends

economic cycles, social shifts, media and arts, science and technological innovations, textile pipeline, designer creativity

What is trademark?

A trademark is the legal protection of the brand and serves for the identification of the source of goods or services

• legal protection

• identification of brand

The most important drivers of the brand identity model are

stylistic identity, communication identity, retail identity

Stylistic identity refers to: a set of seasonal aesthetic codes

FALSE

List the four main business models in Fashion and Luxury industry

luxury brands, designer brands, premium brands, retailers

In the fashion industry, the main building blocks of a business model are

value proposition, customer segmentation, communication, distribution channels

Luxury is a mix of several factors, among them: selective distribution, product innovation, high price, fashionable style, and disruptive communication

FALSE

Mark the right answer. About French fashion companies, which statements are NOT correct?

1. The typical growth path of French fashion companies has been based on clothing as the core business; lifestyle creation; medium level of supply chain control; business model evolution into vertically integrated companies

3. The typical growth path of French fashion companies has been based on accessories as the core business; lifestyle creation; low level of retail control; business model evolution into vertically integrated companies.

The competitive advantage of Italy in fashion has been due to the stimultaneous presence of three factors: craftsmanship, a customer-centered approach, designer

FALSE

The typical growth path of Italian fashion companies has been based on the line of extension first and the brand extension after

TRUE

Premium brands are speciality chains with a wide geographical reach, offering fashionable products at competitive prices

FALSE

Brand equity refers to that added value that a company can obtain from a product with a distinctive name and features when compared to other offerings of the same kind

TRUE

Departments stores have led to the development of a retail driven business model

TRUE

Define the concept of haute couture (high fashion) and its importance for the business of French companies today

Haute couture is the highest niche of the system in which only a few fashion houses operate. Modern haute couture is not made for profit, instead it serves for augmenting brand image and raising the profile of ready-to-wear collections

The fashion cycle consists of a following key phrases

Planning, design and product development, sell-in, and production and delivery

It is expected the global fine jewelry market to be more

more branded, more digital, more sustainability focused

The origin of American fashion is related to

workwear; men as the original target; focus on functionality

Define the concept of “Swiss made,” how it is regulated, and which standards must be respected

The use of Swiss made is regulated by law. Minimum standards are set based on the number of production phases performed in Switzerland which must be respected to label a Swiss watch, although some non-Swiss parts may be used

• Regulated by law

• standards are based on production phases

• standards must be respected to label a Swiss watch

What is fashion?

• A form of free speech which embraces clothing, accessories, beauty, hairstyles

• Is a culture identity which incorporates economics, sociology, psychology, and aesthetics

What are the four building blocks of a business model?

What, Whom, How, Who

What is a brand?

• Tangible: logo, music, lettering

• Emotional associations: experience, emotion, functionality

What is the concept of stylistic identity?

Is a permanent set of styistic codes (fabric, textures, colors, etc…) which defines the brand’s unique and long term style; evolving

Key activities of product development

Trends combined with stylistic identity in the creation of new work

What are trends

• Micro and macro

• Social/culture, designer creativity

Segments of the jewelry industry

Very high, high, fine, bridge, designers, fashion and custom jewelry 

Jewelry key events

Vicenza Fair, Tuscon for stones, Milano jewelry week

Segments of watch industry

Watchmaking masters, high watchmaking, luxury and premium watches, designer watches

French

Clothing is an image builder, brand extension, high level of supply chain control, luxury

Italy

Clothing is core business, vertically integrated companies, highest quality materials

Three factors contributing to the competitive advantage of Made in Italy

1. Designer

2. Entrepreneur

3. Textile

America

functional, menswear, easy to buy and easy to wear, Levis, menswear

China

interlinked with the country history, socio-economic factors, heritage