Fashion Marketing

Fashion Marketing

Fashion Marketing: An Introduction Wance Tacconelli Donghua University Shanghai Session Overview ??? Course learning goals ??? Key fashion terminologies – Style, design and fashion ??? Key fashion markets – Womenswear, menswear, accessories ??? What is marketing? – Understanding customer needs – Delivering value – Marketing as a social and managerial process ??? Customer relationship and profitability management A bit about myself… Education University of York, UK B. A. in Sociology London School of Economics and Political science (LSE), UK M. Sc. in Economics University of Southampton, I-JK Ph. D. in Marketing 3

Academic Work Experience ??? University of Surrey, I-JK – Lecturer in Retail Marketing ??? The University of Hong Kong, China – Lecturer in Marketing – Lecturer in Global Fashion Marketing ??? Donghua University, China 4 Industry Work Experience ??? PT Trend Studio, Rome, Italy – Sales and Marketing Director ??? International Labour Office (United Nations), Geneva, Switzerland – Research Officer 5 Contact Information ??? Email: [email protected] com 6 Core textbook ??? Mike Easey (2009). Fashion Marketing. WileyBlackwell. Internet Resources http://www. economist. com/ http://www. elle. com/ http://www. guardian. co. /fashion/fashion-industry http://fashion. telegraph. co. uk/ http://www. ft. com/intl/arts/style http://www. ]ingdaily. com http://www. independent. co. uk/life-style/fashion/ http://nypost. com/fashion/ http://www. style. com/ http://www. thebusinessoffashion. com/ What are you wearing? Zara, H&M, Uniqlo, Hollister? Any luxury brands? Gucci, Prada, Burberry, Louis Vuitton? WHY? What is a style? A type of product that has one or more specific features that distinguish it and make it different from other products within the same category Example of different styles of shoes Oxford Shoes Mocassin Shoes What is a design? ? A distinct individual interpretation of the same style – variations in trimming, texture, decoration or other details Two designs of the Oxford style What is a fashion? ??? The prevailing or accepted style in dress or personal decoration established or adopted during a particular time or season ??? A style does NOT become a fashion until it gains consumer acceptance Fashion involves change, accepted change, defined as a succession of short-term trends or fads Change does not necessarily mean new. In fact, often, change involves recycling previous styles and adapting them to the new, contemporary environment.

Punk Movement, late 1970s 1970S vjvtenne westwood, Fall 2009 2011 Vivienne Westwood, Fall Where do fashions originate? Trickle-down theory ??? New styles make their first appearance among people at the top levels of the social pyramid ??? Then they are gradually adopted by the lower social classes (the mass) People at the top of the fashion social pyramid Trickle-up theory ??? Young people are quicker than any other social groups to initiate new and different fashion and that fashions filter up ??? Not merely from youth to older age groups, but also from lower to upper economic classes TEDDY BOYS 1960S Comme de Garcons, Winter 2012

Related Fashion Services Garment alteration, cleaning, repairs Hairdressing Sun tanning Cosmetic surgery Tattoos FASHION PRODUCTS AND SERVICES USAGE SITUATIONS CLOTHING Underwear… outerwear Formal…….. lnformal Bespoke… .. Ready-made Fashion-related products Shoes Hats Hosiery Jewellery Belts Bags Scarves Cosmetics Fragrances Wigs Work/School Leisure Domestic Womenswear clothing market definition ??? Ready-to-wear garments for every day wear, sports and work. ?? Product Examples – Women’s Outerwear ??? Suits, skirts, trousers, coats, Jackets, t-shirts, blouses, Jogging pants, sweaters and cardigans – Women’s Lingerie ?? Bra, panties, underwear sets – Women’s Nightwear ??? Pajamas, nightshirts/dresses, vests – Women’s Hosiery ??? Tights, stockings and socks Menswear clothing market definitions daywear, sports and work.

Excludes footwear ??? Menswear Product Examples – Men’s Outerwear ??? Suits, Jackets, coats, trousers, shorts, t-shirts, sweatshirts, polo shirts, cardigans, sweaters, Jogging pants and sweatshirts – Men’s Underwear Boxer shorts, underpants and vests ??? Men’s Nightwear, Pajamas and dressing gowns – Men’s Hosiery ??? Socks Accessories and shoes market definition ??? Items that are used to complement an outfit nd which are peripheral to the main clothing categories – Shoes, ties, gloves, scarves, belts, hats, caps, cufflinks, tie-pins, handbags, wallets, purses, sunglasses, umbrellas, etc.

Some Market Data ??? In 2012, consumers in the I-JK spent GBP 19. 8 billion on womenswear, 9. 5 billion on menswear and 4. 7 billion on childrenswear ??? The fashion accessory market in the US was worth $ 20 billion in 2012 ??? Accessories accounted for nearly 40 percent, while fragrances and cosmetics for more than 16 percent, of LVMH’s global sales ??? The global fragrance and perfume market reached sales of $ 33 billion in 2012 ?? What image comes to mind when you hear the word “marketing”?

Fields of Marketing Advertising 8-2-8 marketing Distribution channel ??? International marketing ??? Marketing research ??? New product planning ??? Retail management ??? Sales and Sales ??? Services marketing What is marketing “The management process responsible for identifying, anticipating and satisfying customer requirements profitably’ Chartered Institute of Marketing “The social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others” Philip Kotler 32

Fashion Marketing: Understanding Customer Needs and Wants ??? Produce what customers want to buy, not Just what a fashion designer fancies making ??? Gather information from market research, retail analysis and trend forecasting “Clothing that is not purchased or worn 33 is not fashion” Example of a Trend Forecasting Service What is a Need? ??? A need is the perception that we lack something (regardless of whether it’s necessary or unnecessary) ??? Needs can be of various types: – Physical (e. . food, warmth, safety) – Social (e. g. belonging, affection, etc. ) – Individual (e. g. self-expression, knowledge, etc) How Does A Want Differ From A Need? ??? A want is a human need that is shaped by the individual’s personality and his/her cultural environment ??? When backed up by buying power, wants become demands – E. g. In recent years, there has been a strong market demand for smartphones and tablets.

MasloWs Hierarchy of Needs Applied to Fashion “My clothes are an expression of the total me” Wearing the latest fashion item makes us feel good about ourselves. Fashion is something to share with and be seen by others Clothing must pass safety standards (flammability) Clothing covers the body and protect us 37 Fashion Marketing: Creating and Communicating Value Value! The customer’s evaluation of the all the benefits and the costs of a market offering Value is Subjective 39 What value do these brands provide?

Fashion Marketing: a Social Process ??? Consumers buy fashion products to signal membership toa like-minded group ??? Style tribes are groups of people who dress in the same way and share similar values and attitudes 41 Exactitudes Geeks, London 2008 42 City Girls, London 2008 Backpackers, Rotterdam 2008 Fashion Marketing: an Exchange Process Goods, services, value, communication Customer Money, information, data, ideas 45 Co-Creation in Fashion ?? When companies create their products in cooperation with consumers ??? sourcing is a form of co-creation where tasks (e. . design) are outsourced to the public (normally through the Internet) ??? It’s an example of “user-centred innovation” Crowdsourcing in practice: www. threadsless. com ??? Each week consumers submit designs online ??? The six t-shirts receiving more votes are put into production and sold online ??? Winners geta prize of $ 1,000 and more 47 Fashion Marketing: a Managerial Segmentation, Targeting and Positioning Market Segmentation Geographic segmentation Demographic Psychographic Crowd-