draft - fashion study guide

mc qs (1 answer), multiple answer

What is fashion?

The industry of creativity(cultural trends); a seasonal(short product cycle, long industrial pipeline) and risky business(demand is cray)

What is seasonality?

• traditional - 2 collections/seasons a year

• trends originated from a long and complex pipeline (takes time, from raw material —> product)

• make capsules (curated collections) to refresh the assortment

basic vs fashion items

co-existence of basics and fashionable items with different business logics.

• Basic = never out of stock, not seasonable (white polo shirt)

• Traditional seasonal collections are 2 (SS and AW) with capsules and special deliveries (Christmas,  cruise, Valentine day…) in season

	Basic/carry over	Fashion/seasonal
Style	Classic, carry-over	Trendy
Market	Demand stable and predictable	Volatile
Variety (of products)	Low	High
Product Lifecyle	Medium to Long	Short
Profit Driver	Traffic and brand awareness	Brand image
Negative impact of stock-outs	Medium-low	Very High
Discounts	Not on classic items	Yes (end of season)

Two main drivers behind the future of fashion

1. solving the issue of sustainability (which examples and challenges?)

2. delivering and an omnichannel go to market strategy

Business Model Canvas

the way you make money - 9 components

1. client segments

2. channels

3. customer relationship

4. value proposition

5. key resources

6. key activities

7. key partners

8. revenue streams

9. cost structure

Brand VS Retailer

BRAND

Value proposition: unique product design & brand narratives as the result of a design-driven approach

•  Go to market strategy: BTB and/or BTC. They can develop their business through a direct channel (Direct to Consumer strategy) therefore integrating the entire value chain and/or they can work with hundreds of retailers (wholesales) to effectively distribute inventory risk and disseminate the brand narrative to ‘get the word out’. The revenue model is sell-in revenue with a wholesale price when the brand has a BTB strategy, while is a sell- out revenue with a retail price when it operates BTC.

•Evolution: brands begin life by focusing on one product vertical (i.e. Cucinelli of knits or Adidas on sneakers) and progressively expand in terms of product categories, markets and channels (Gucci) à continue to open more stores

•

RETAILERS

•  Value proposition: The product is the retail assortment direct to the final consumer.  Have extensive customer insights that enables retailers to optimize their merchandising assortment of different brands, styles, and inventory quantities dynamically for each location

•  Go to market strategy: BTC only. The entire organization is built around the customer side and the revenue model is BTC only sell out revenue and retail price.

•  Evolution: derive long-term value from major investments in building customer mindshare (i.e. ‘I think that I am going to stop by Harrods or Rinascente on Saturday’) and it grows by opening new stores and might decide to launch a private label in addition to the re-sale of brands (i.e. Sephora).

sell in business VS sell out business

BTB vs BTC

Luxury conglomerates (category focused, vertical integration, contribution of cash cows,
advantages of the conglomerate status)

Luxury conglomerates- vertical integration

Luxury conglomerates -contribution of cash cows

Luxury conglomerates - advantages of the conglomerate status

Designers (different supply chains by category and multi-channel distribution)

Designers licensing business

fast vs mass retailers - speed vs cost

fashion pricing : sell in and sell out

what are DTC advantages?

Sell in with fashion platforms

Objectives of an industry analysis

How to define a business

Margin structure in luxury and its determinants

What are strategic groups in that business?

How to define the KSF of your strategic group?

How to define the value proposition?

what a brand offers to the market - unique benefits, quality, price positioning, and emotional or functional appeal that differentiate the brand and attract its intended audience.

• ex - Convenience to the mass, trend to the fashionista, timlessness luxury to the investor….

Internationalization - what does it mean (global)? 4 points

Brand & line extension in fashion - definitions

Brand & line extension in fashion - risks

Brand & line extension in fashion - key success factors

vertical integration - retail and wholesale formats

vertical integration - advantage / disadvantage of different channels for the brand

how to identify business ideas/opportunities

Why write a BP?

What is a BP?

Types of BP

structure of BP

Marketplace

Company

Business idea & strategy

Marketing & sales

Organizational Concept

Financial Concept

Sources of Funding

BP model - assumptions

BP model - key financials

BP model - performance ratios

BP model - scenario/sensitivity analysis

IP RIGHTS in fashion - what are characteristics of trademarks and their use?

IP RIGHTS in fashion - what are characteristics of designs and their use?

IP RIGHTS in fashion - what are characteristics of copyrights and their use?

IP RIGHTS in fashion - what are characteristics of patents and their use?

Value proposition of Velasca

value chain design of Velasca

Revenue model of Velasca

Value proposition of Moncler

Value Chain Design of Moncler

Revenue Model of Moncler

Value Proposition of Sephora

Value Chain Design of Sephora

Revenue Model of Sephora

Value Proposition of Rent the Runway

Value Chain Design of Rent the Runway

Revenue Model of Rent the Runway

Value Proposition of Stitch Fix

Value Chain Design of Stitch Fix

Revenue Model of Stitch Fix

Value Proposition of Farfetch

Value Chain Design of Farfetch

Revenue Model of Farfetch

True or false. Rent The Runway’s relies on a subscription based business mode

True

True or False- the value proposition of Farfetch is to make shoppers’ lives easier by periodically delivering right to their door boxes of clothing and accessories carefully selected according to subscribers’ taste, body type and budget

False

Definition of supply chain

5 Transformative forces behind global supply chains evolution

Supply chain risk dimensions

(operational, strategic)

4 Supply chain governance models

(open market, hierarchical, integrated, ecosystem -
exibit 1 pag. 74)

Definition of supply chain transparency

visibility, disclosure

Mandatory and voluntary regulation in fashion

Definition of blockchain and main benefits

Benefits of a BP

BP Contents and executive summary

Business model and strategy

BP different sections (ownership, the team, marketing plan, operating plan, financial plan)

BP types and styles