4 - product and process innovation in fashion …

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INTERNATIONAL MARKETING (B - INTERNATIONAL FASHION MARKETING) 2019-2020 Professor Elena Cedrola [email protected] http:// docenti.unimc.it/docenti/elena-cedrola 4 - PRODUCT AND PROCESS INNOVATION IN FASHION INDUSTRY: STYLE 28/04/2020 1 PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING

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INTERNATIONAL MARKETING

(B - INTERNATIONAL FASHION

MARKETING) 2019-2020

Professor Elena [email protected]

http://docenti.unimc.it/docenti/elena-cedrola

4 - PRODUCT AND PROCESS INNOVATION IN FASHION INDUSTRY: STYLE

28/04/2020 1PROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING

Product innovations in the textiles

and clothing

Product innovation in the textile and clothing

sectors occurs at three levels, which

contribute to value creation:

• Materials

• Style

• Product development

PROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING228/04/2020

Italy: business development and arts

Business development:

-> small and medium entreprises, often

family run

-> located in industrial districts

Arts:

-> is the DNA of the latin culture

PROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING 328/04/2020

What are industrial districts?

The first definition of industrial district was formulated by Alfred Marshall in the late nineteenth century: it is a concept based on a organizational pattern in which firms manufacturing certain products were geographically clustered.

According to Marshall, development of human capabilities and economic development are closely linked: the man is part of a social organism localized in a time and place unit. The "place" of living brings benefits to the person and to the development of his/her capabilities, thanks to his/her proximity to other people involved in the same job, and the know-how becomes a local common good of the place itself. (F. Sforzi, 2005)

The specificity of the Italian Industrial Districts (I.I.D.) consists in the fact that firms are at the same time highly competitive and cooperative.

PROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING 428/04/2020

The Italian Industrial Districts

The Italian economist Giacomo Becattini - among the firsts and

most loyal supporters of Marshall – defines the industrial district

as “a socio-territorial entity characterized by the active

coexistence of a community of people and industrial firms, in

a limited area which is geographically and historically

defined” (Becattini, 1989)

According to Becattini definition, the community of people shares

values behaviors, expectations and common languages while the

population of firms is configured as concentration of firms in a

geographically defined area.

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MARKETING 528/04/2020

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The Biella district: specialization in wool (yarn,

fabric, ready to wear)

Main brands:Cerruti, Piacenza, Ermenegildo Zegna

PROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING

728/04/2020

I.I.D. Are characterized by:

• high production specialization

• high number of firms (in absence of a leading company)

• efficient system of information flow

• high skilled workers

• "face to face" relationship among stakeholders that facilitate

the diffusion of technological and organizational

improvements.

In the districts the balance between competition and collaboration

generates a condition of collective efficiency, and improves the

business results.

The Italian Industrial Districts

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MARKETING 828/04/2020

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FASHION MARKETING928/04/2020

1889 - Angelo Zegna -

starts a small textile

business

A FOUR GENERATION FAMILY BUSINESS

1910 - Ermenegildo Zegna launched the brand and founded

the Woolmill in Trivero.

His dream: create and produce the best fabrics in the world

The importance of selecting the best raw materials directly

from the markets of origin:

CONTROL OF RAW MATERIALS

PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING1028/04/2020

FINEST RAW MATERIALS

1963

THE ERMENEGILDO ZEGNA WOOL TROPHIES

1980

2002Stephen

Walker

Graham Sutherland

Not Vital

Australia - Superfine wool

China - cashmere and silk

South Africa - mohair

Peru - Vicuna and Alpaca

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Promotion of the brand

1937

ADVERTISING

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1960’s Aldo and Angelo Zegna

• Vertical integration of the process

• Ready to wear men’s collection

• Internationalization of production and markets

Aldo Zegna

Angelo Zegna

UN AZIENDA FAMILIARE DA 4 GENERAZIONIA FOUR GENERATION FAMILY BUSINESS

PROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING1328/04/2020

1991 TURKEY

1991 MEXICO

1977

SWITZERLAND1910

ITALY

2003

CHINA

1973

SPAIN

INTERNATIONALIZATION OF PRODUCTION

Made

In

Zegna

Barcelona (1963)

Paris (1964)

London (1966)

OPENINGS OF TRADING COMPANIES

Munchen (1969)

New York (1975)

Tokyo (1977)1428/04/2020PROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING

4TH GENERATION

• Different product lines

• Brand Extension

• Product customization

• Retail development

• Emerging Markets

• Ladies pret a porter: AGNONA1528/04/2020

• Italian style

• Contemporary

• Precious & exclusive materials

• Timeless elegance

• Luxury & quality

PRODUCT LINES

• Leisure time

• Sporty Elegance

• Technical performance

• High quality materials1628/04/2020

• Modern fashion

• Urban

• Sexy & cool

• Branded “object” of desire

1728/04/2020

Made to Measure

Suits; Shirts; Ties; Shoes

4 weeks delivery in every

Zegna store around the

world

PRODUCT CUSTOMIZATION

BRAND EXTENSION

•Leathergoods

•Shoes

Licensing:

Fragrance

EyewearPROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING1828/04/2020

Presence

PROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING 1928/04/2020

Research and innovation in Ermenegildo

Zegna

• Innovation is the development of new:

– products

– production processes

– business practices

– forms of organization

• Innovations can involve either incremental

or radical changes

PROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING2028/04/2020

2128/04/2020

Internationalization Strategy Success

Factors

• Product Excellence: Combination of Global

and Local Resources for Product Innovation

• International Brand Strategy: From Brand

Recognition to Brand Extension to Global Brand

Reputation

• Fully Integrated Supply Chain: Forward and

Backward Vertical Integration

• Family Values and Corporate Social

Responsibility

PROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING 2228/04/2020

Global distribution of Zegna

by country

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MARKETING2328/04/2020

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MARKETING2428/04/2020

STRATEGIC LEVERS

CUSTOMERS

DATABASE

OPERATIONAL SUPPORTS

MARKETING

PLANNING

MARKETING

RESEARCH

MARKETING

INFORMATION

CUSTOMER

INTELLIGENCE

RETAIL

MARKETING

RECRUITMENT

TRAFFIC

CRMAFTER

SALE

SERVICES

LOYALTY

PROGRAMDELIGHTING RECOVER

UP-SELLING

CROSS

SELLING

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MARKETING2528/04/2020

Retail

CUSTOMER

Intelligence

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MARKETING2628/04/2020

PROFITABLE CUSTOMERS

You don’t need to loyalize every customer, but you

should choose the most profitable ones.

If you are able to segment your customers according to

their value, you are also able to increase your

“CUSTOMER RETENTION” rate.

WHAT IS THE VALUE OF EVERY CUSTOMER?

€ 300.000

This document is confidential and was prepared by Ermenegildo Zegna CRM Dpt. Only for the company internal use. It’s not possible to be relied on by any others parties without Ermenegildo

Zegna’s prior written consent

PROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING2728/04/2020

€ 680

€ 1.853

€ 3.780

0

1.000

2.000

3.000

4.000

1 Year 2 Years 3 Years

SPENDING THROUGH LOYALTY

The increase in three years spending is strongly influenced by

the increase in terms of number of years of purchase (loyalty)

SP

EN

DIN

G T

HR

OU

GH

LO

YA

LT

Y

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MARKETING2828/04/2020

CUSTOMER KNOWLEDGE

Frequency of purchase

IN THREE YEARS

1

2

3

4

5

>5

FREQUENCY

63%

17%

8%

4%

2%

6%

CUSTOMERS

The more a customer comes back, the more he spends

MORE FREQUENCY = MORE BUSINESS

SALES

22%

13%

9%

7%

6%

43%

AVERAGE

480 €

525 €

553 €

583 €

605 €

667 €

+ 9%

+ 15%

+ 21%

+ 26%

+ 39%

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MARKETING2928/04/2020

CUSTOMER KNOWLEDGE

Customers and sales

CUSTOMERS SALES100% 100%

TOP

HIGH

MEDIUM

LOW

SECONDARY

40%7%

25% 25%

58% 15%

10% 20%

40%of total sale are produced by 7% of customers

THESE ARE CUSTOMERS WE MUST TARGET

This document is confidential and was prepared by Ermenegildo Zegna CRM Dpt. Only for the company internal use. It’s not possible to be relied on by any others parties without Ermenegildo

Zegna’s prior written consent

PROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING3028/04/2020

RETAIL CUSTOMERS: CLUSTERIZATION

CLUSTER SALES ATTITUDE PROFILE

Brand

Connoisseur

Zegna collections (EZ, ZZ,

ZS), all categories

High spender,

loyal

Old and slightly more

foreign

Cheap but

Chic

Formal collections (EZ),

shirt and ties

Low spender,

not loyal

Young, domestic

and bargain seekers

Prudent

Dandy

Formal collection (EZ, CO),

sleeve unit

Medium high

spender

Bargain seekers,

European and old

Classy Detail

Seekers

Accessories, shoes and

sleeve unit of formal

collections (EZ, CO)

Medium

spender, not

loyal

Mainly young and

slightly more foreign

Gentleman

Ambassador

MTM formal collections

(EZ, CO), sleeve unit

Very high

spender, loyal

Domestic, old, not

emerging countries

Head to Waist

Sophisticated

All collections, sleeve unit

(ZZ,EZ) and outerwear (ZS)

Medium high

spender

Asian

Casual

Elegance

Sportive: knitwear

outerwear and trouser

Low spender Mainly American

and Chinese

This document is confidential and was prepared by Ermenegildo Zegna CRM Dpt. Only for the company internal use. It’s not possible to be relied on by any others parties without Ermenegildo

Zegna’s prior written consent

PROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING3128/04/2020

A DESIRABLE “ROAD MAP”

1- Gentleman

Ambassador:

customers to be

delighted

2/3- Head to Waist

Sophisticated and Prudent

Dandy:

improve loyalty offering

other products (Retention /

Cross Selling)

4- Brand Connoisseurs:

improve spending (Repeat

Buy / Up Selling)

5/6/7- Casual Elegance,

Cheap but Chic, Classy

Detail Seekers:

customers to develop,

improving loyalty &

spending (Retention / Up -

Cross Selling)Loyalty (based on N° of Purchases Frequency)

S

p

e

n

d

i

n

g

- +

Hi

g

h

L

O

W

Head to Waist

Sophisticated

Gentleman

Ambassador

Classy Detail

Seekers

Brand

Connoisseurs

+

-

Cheap but Chic

Casual

Elegance

Prudent

Dandy

The arrow show us which of natural

migration should to be boosted

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MARKETING3228/04/2020

Research and innovation in Ermenegildo

Zegna

• Innovation is the development of new:

– products

– production processes

– business practices

– forms of organization

• Innovations can involve either incremental

or radical changes

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MARKETING3328/04/2020

Bottega VenetaBottega Veneta has created a new standard of luxury since its founding in Vicenza in 1966. Steeped in the traditions of Italy’s master leather craftsmen and long celebrated for its extraordinary leather goods, Bottega Veneta has recently emerged as one of the world’s premier luxury brands. The company’s famous motto, “When your own initials are enough,” expresses a philosophy of individuality and confidence that now applies to a range of products including women’s and men’s ready-to-wear, fine jewellery, furniture, and more.

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Bottega Veneta

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MARKETING3528/04/2020

Bottega VenetaBottega Veneta has created a new standard of luxury since its founding in Vicenza in 1966. Steeped in the traditions of Italy’s master leather craftsmen and long celebrated for its extraordinary leather goods, Bottega Veneta has recently emerged as one of the world’s premier luxury brands. The company’s famous motto, “When your own initials are enough,” expresses a philosophy of individuality and confidence that now applies to a range of products including women’s and men’s ready-to-wear, fine jewellery, furniture, and more.

While Bottega Veneta continues to grow, the qualities that define it are unchanging: outstanding craftsmanship, innovative design, contemporary functionality and the highest quality materials. Also constant is Bottega Veneta’s commitment to its ateliers, where artisans of remarkable skill combine traditional mastery with breathtaking innovation. Indeed, there is an unusual and inspired collaboration between artisan and designer at the heart of Bottega Veneta’s approach to luxury, symbolised by the house’s signature intrecciato woven leather. In the summer of 2006, in recognition of the importance of artisanal craftsmanship and the fragility of this traditional way of life, Bottega Veneta opened a school to train and support future generations of leather artisans.

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The most recent chapter in Bottega Veneta’s history began in February

2001, when the company was acquired by KERING Luxury Group,

formerly known as Gucci Group.

Distribution of Bottega Veneta products is global, encompassing Europe,

Australia, Asia, North and South America, where wholesale distribution

in select speciality and department stores is complemented by a growing

number of Bottega Veneta-owned boutiques. These boutiques, designed

by Tomas Maier and meticulously constructed to Bottega Veneta’s

exacting standards, allow the customer to shop in complete luxury,

privacy, and comfort. They are, like the products they showcase, a

reflection of Bottega Veneta’s exceptional heritage and superlative

quality.

Bottega Veneta

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The Arts: the DNA of the latin culture

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Macerata

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The Arts: the DNA of the latin culture

Michelangelo Buonarroti

Raffaello Sanzio

Leonardo da Vinci

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MARKETING4028/04/2020

Scholars in diverse fields such as anthropology, sociology, business history, and consumer behavior have documented that consumers are increasingly purchasing goods not only for their practical functions but also for the meanings associated with these products.

As such, many high-end designers and luxury brands are devoted to creating meaningful associations with their products.

Many companies in the fashion industry are increasingly developing close relationships with the art world in effort to associate values and meanings of art with their own products and brands. Businesses related to the luxury fashion sector often seek to transform their products to resemble artwork to address the issue of commodification resulting from high production.

PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING

Innovation in style and design

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Founded in 1978 in Milan, Gianni Versace SpA is one of the

leading international fashion design houses and a symbol of

Italian luxury world-wide. It designs, manufactures, distributes

and retails fashion and lifestyle products including haute

couture, prèt-à-porter, accessories, jewellery, watches,

eyewear, fragrances, and home furnishings all bearing the

distinctive Medusa logo.

PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING

Versace, the genius of fashion and arts

4228/04/2020

PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING

Versace, the genius of fashion and artsBorn in in Reggio di Calabria in

Southern Italy, part of the

Greek colony once known as

Magna Graecia or Great

Greece, Versace has always

been linked to the traditions of

his homeland, including its

classical and Hellenistic

culture, and has maintained a

constant interest in classical

sculpture and the ancient

iconography. Hellenic heritage

and mythology were among

Versace’s strongest

inspirations in his work.

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Versace, the genius of fashion and arts

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PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING

Versace, the genius of

fashion and arts

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PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING

Dolce and Gabbana

Domenico Dolce and Stefano Gabbana have made a trademark of their surnames which is known throughout the world, easily recognizable thanks to its glamour and great versatility.Established in 1985, Dolce&Gabbana is one of the leading international groups in the fashion and luxury goods sector. The founders, Domenico Dolce and Stefano Gabbana, have always been the creative and stylistic source of all the brand's activities as well as the drivers behind the development strategies based on balanced growth on a global scale and focus on the core business.

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The last Dolce & Gabbana fashion show

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From the

catholic

religion:

Mother Mary

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From Italian

literature: the

Leopard

PROF. ELENA CEDROLA – INTERNATIONAL FASHION

MARKETING

The Leopard (Italian: Il Gattopardo) is a novel by Giuseppe Tomasi di Lampedusa that chronicles the changes in Sicilian life and society during the Risorgimento (1821-1943). Published in 1958 it became the top-selling novel in Italian history and is considered one of the most important novels in modern Italian literature.

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Sicilian cart

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Monreale Cathedral

PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING

It was built from 1174 to 1185. It was commissioned by William II (1154-89), the Norman ruler of Sicily, who wished to demonstrate the magnificence of his kingdom

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Dolce and Gabbana – Monreale Cathedral Sicily Autumn

Winter 2013

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The Valley of the Temples is an archaeological is one of

the most outstanding examples of Greater Greece art

and architecture, and is one of the main attractions of

Sicily as well as a national monument of Italy.

PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING

The Agrigento Temples

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Dolce and Gabbana Spring Summer 2014

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Dolce e Gabbana new store concept(uniqueness – local artistic heritage – experience)

Dolce e Gabbana store in Milan

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Dolce e Gabbana store in Venice

Dolce e

Gabbana new

store concept(uniqueness – local

artistic heritage –

experience)

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Luxury relationship with the art world is due to the necessity of

ensuring an artificial rarity in consumers' (observers)

perception.

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Relationshiop between Arts and Business:

literature reviewThe Art and Business relationship is a strong strategy used by companies in order

to increase the value of their image (Dell’era, 2010; Hoeken, 2005; Kawashima, 2012;

Kottasz, Bennett, Savani, & Ali‐Choudhury, 2008; Pappu & Cornwell, 2014; Preece, 2010)

and to create a positive relationship for potential consumers or real customers in

communities where the company resides (Brennan, Binney, & Brady, 2012; Hetsroni &

Tukachinsky, 2005; McNicholas, 2004; Moir & Taffler, 2004).

-> Companies can pursue this strategy by sponsorships, philanthropy, creating

special foundations

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Relationshiop between Arts and Business:

literature reviewThe Art and Business relationship is a strong strategy used by companies in order to increase the value of their image (Dell’era, 2010; Hoeken, 2005; Kawashima, 2012; Kottasz, Bennett, Savani, & Ali‐Choudhury, 2008; Pappu & Cornwell, 2014; Preece, 2010) and to create a positive relationship for potential consumers or real customers in communities where the company resides (Brennan, Binney, & Brady, 2012; Hetsroni & Tukachinsky, 2005; McNicholas, 2004; Moir & Taffler, 2004).

-> Companies can pursue this strategy by sponsorships, philanthropy, creating special foundations

Art infusion

Art is associated with an increase in creativity and imagination (Dewey, 2005). The concept of art infusion is a specific kind of spillover effect able to pass luxury perceptions from the arts onto the product (Hagtvedt & Patrick, 2008a, 2008b)

Artification

The concept explains why art has the ability to infuse value of exclusivity and prestige not only to the product, but also at a brand level. Artification roughly defines a transformative process of non-art into art (Heinich & Shapiro, 2012; Shapiro & Heinich, 2012).

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From art infusion to artification: literature review

American scholar Ellen Dissanayake was the first to use artification in 1992 to describe the transformation of an ordinary object into an artwork (through the use of colors, design or lines) (Dissanayake, 2009).

Then, later, artification was elaborated upon with different meanings by two groups of Finnish and French scholars.

Finnish scholars described situations in which an object outside the art world is turned into something resembling art, or is influenced by artistic practices recognized as ‘art-like’ forms (Bonsdorff, 2012; Erjavec, 2012; Naukkarinen, 2012; Naukkarinen & Saito, 2012; Shiner, 2012; Scrivener & Zeng, 2012; Shapiro, 2004; Shapiro & Heinich, 2012a; 2012b).

For French scholars the process of artification lead to the creation of objects of art recognized as such by observers (Shapiro & Heinich, 2012a; 2012b; Kapferer, 2014; Jouffroy, 2015; Lascault, 2015; Dufrenne, 2015).

-> Our point of view is more in line with the French conceptual framework: luxury brands do not limit themselves to infuse art into their products but aspire to turn them into recognized artworks. This transforms them from actors using arts for their proposal, to real art creator institutions.

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Art in Global Stores is a special line of action based on a

decentralized collection concept. It consists in a series of

commissions for works by artists of international standing, inspired

by the Zegna Group spirit and philosophy and specifically conceived

to be housed in Ermenegildo Zegna stores around the world.

Ermenegildo Zegna and the arts

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Louis Vuitton

Established in 1854, Louis Vuitton has now reached its fifth

generation;

In June 1987, a USD 4 billion merger was effected between Louis

Vuitton and Moët-Hennessy, which allowed Louis Vuitton to expand

its investments in the luxury business while saving Moët-Hennessy

from the threat of takeover;

Since 1989 the 46.6% of LVMH's shares are owned by Arnault

family group, with Bernard Arnault C.E.O. of the Group.

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Louis Vuitton

Bernard Arnault

‘Support for the arts and culture figures at the very heart of our

business model. Right from the creation of our Group, I made it

clear that this is a strategic priority for our development. This

commitment embodies the values our Houses all share – savoir-faire,

excellence and creativity – and anchors them in their artistic, cultural

and social environement.’ (LVMH website, 2015).

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Louis VuittonMarc Jacobs

The relationship between Art & Business strengthens during the

1990s especially due to the volounty of the creative director Marc

Jacobs, also via the ready-to-wear and not handmade collection

introduced for the first time in 1997 .

A lover of contemporary art and Pop art, in particular, Marc Jacobs

invited some of the most outstanding artists to join forces with Louis

Vuitton through a variety of forms: designing showcases, art

installations for retail, and exhibitions at the sales points.

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Louis Vuitton

Timeline Shows Louis Vuitton Visual Artistic Collaborations

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Louis Vuitton as Art agent

Support for artists and art fairs through sponsorship and

philantropic activities;

Support in discovering and diffusing new artists, facilitating

the meeting between art buyers and artists;

Support for art through the creation of corporate foundation;

Art exhibitions at business retail locations

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Support for artists and art fairs through sponsorship

and philantropic activities

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Support in discovering and diffusing new artists, facilitating the

meeting between art buyers and artists

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Support for art through the creation of corporate foundation

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Art exhibitions at business retail locations

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Louis Vuitton as Art creator: Marc Jacobs

and Yayoi Kusama

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Yayoi Kusama (草間彌生 or 弥生, Kusama Yayoi, bornMarch 22, 1929) is a Japanese artist and writer. Throughout her career she has worked in a wide variety of media, including painting, collage, soft sculpture, performance art, and environmental installations, most of which exhibit her thematic interest in psychedelic colors, repetition, and pattern. A precursor of the pop art, minimalist and feminist art movements, Kusama influenced her contemporaries such as Andy Warhol, Claes Oldenburg, and George Segal and exhibited works alongside the likes of them.

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Mytification of the fashion brand's creative director

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Collaboration with artists, from the creation of the collection to

communication activities. Possibility of Co-branding

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Transformation of business outlets, more and more similar to

exhibition spaces

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Celebrate

the collection

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Exhibition of its own creations in institutional axhibition Spaces

such as great museums and art galleries

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Research model, case studied, methodology

and panel

Research model

In order to observe if a strategy based on the visual arts is recognized and accepted by consumers we used the Customer-based Brand Equity tool (CbBE) to test the artification effect on brand equity from a consumer’s perspective.

-> awareness is a fundamental component of brand equity

-> brand image is formed by associations that connect the consumer to the brand

Associations can be managed internally (use of marketing) or borrowed by external entities through a transfer operation(country of origin, distribution channels, testimonials, others) (Keller, 1993; Pappu, Quester & Cooksey, 2006)

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Dimension (Pappu et al.

2006)

Measure

1. Brand awareness

(Aaker, 1991)

Unaided recall

Aided recall

Asked for the name of the brand (Product category is mentioned)

Which of the brands are you aware of? (names of the brands provided)

Which of the following brands have you used before? (Brand recognition,

based on aided recall; names of the brands were provided)

2. Brands associations

Brand personality

(Aaker, 1997)

Organisational

associations

(Aaker, 1991, 1996)

Sincerity

Excitement

Competence

Sophistication

Ruggedness

Like the company which makes brand X

Feel proud to own products from the company which makes brand X

Trust the company which makes brand X

3. Perceived quality (Aaker,

1991; Yoo et al., 2000)

Brand X is of very good quality

Brand X is reliable

Brand X has excellent features

Brand X is durable

Brand X offers consistent quality

4. Brand loyalty (Yoo et al.,

2000; Yoo and Donthu,

2001)

Brand X would be my preferred choice

I consider myself loyal to brand X

Brand X would be my first choice

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Measures of consumer-based brand equity

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Hypotesis• H1 – Consumers’ awareness remains strong when

the brand is ‘artified’

• H2a – Consumers’ free associations to the brand are connected to the artworld when the brand is ‘artified’ (e.g. consumers indicate words as art, contemporary art or the name of the artist)

• H2b – Consumers’ evaluation of the brand image points to stronger positive associations when the brand is ‘artified’.

• H3 – Consumers’ evaluation of Quality increases when the brand is ‘artified’.

• H4 – Consumers’ Loyalty to the brand increases when the brand is ‘artified’.

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The research on Louis Vuitton Fashion Brand:

methodology and panel

• Between-subjects randomized experiment (with art versus without art).

• Insead-Sorbonne Behavioural Lab panel: 3550 people assigned randomly to one of the two experimental conditions (the first group was called ‘artified group’, the second was called ‘control group’). Young French (blackbone of luxury future market – Aiello, Donvito, 2006) contacted via internet

• Questionnaire: divided in 4 blocks of questions based on images

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Images in the questionnaire: blocks for ‘artified’ and control groups

Images shown to the control group

Images shown to the artified group (artification though

the collaboration of artist Yayoi Kusama):

:

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Main results of the research

Respondents: 880

– Artified group: 412 (72% F – 28% M)

– Control group: 413 (73% F – 27% M)

PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING

AGE ‘ARTIFIED’ ‘CONTROL’ AGE ‘ARTIFIED’ ‘CONTROL’

18 years 24 33 26 years 18 20

19 years 44 42 27 years 12 10

20 years 65 56 28 years 9 12

21 years 68 55 29 years 9 4

22 years 51 51 30 years 7 5

23 years 41 40 31 years 6 0

24 years 29 43 32 years 4 2

25 years 23 23 Not Declared 2 0

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Variable analyzed, statistical methods and experiment

resultsHYPOTHESES VARIABLE ANALYZED STATISTICAL METHODS RESULTS

H1 - Consumers’ awareness remain strong

when the brand is ‘artified’. Aided brand recall Frequency distribution Confirmed

H2a - Consumers’ free associations to the

brand (are connected to the art word)

when the brand is ‘artified’ (e.g. the word

art, contemporary art or the name of the

artist).

Free associations to

the brand;

Frequency distribution Not Confirmed

H2b - Consumers’ evaluation of the brand

image gives back stronger positive

associations when the brand is ‘artified’.

Generic Associations;

Organizational

Associations;

Brand Personality.

Analysis of Variance (ANOVA)

Multivariate analysis of Variance

(MANOVA)

Partially

confirmed

H3 - Consumers’ evaluation of quality

increases when the brand is ‘artified’.

Perceived Quality Analysis of Variance (ANOVA)

Multivariate analysis of Variance

(MANOVA)

Not confirmed

H4 – Consumers’ loyalty to the brand

increases when the brand is ‘artified’.

Brand Loyalty Analysis of Variance (ANOVA)

Multivariate analysis of Variance

(MANOVA)

Not confirmed

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Main results of the research

• Awareness (multiple choice and open-

ended questions)

– the difference between the two groups is not

significant (88% AG – 85% CG recognized the

logo)

– The artification was not perceived

spontaneously (10 persons mentionned the

word arts, 2 Yayoi Kusama)

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Managerial implications

• The artification effect is visible especially at the level of brand image and brand personality (from the consumer point of view)

• While the art-oriented public recognizes artisticcollaborations, the larger public does not. New design and novelty are perceived in a generic way.

• “-> Our point of view is more in line with the French conceptual framework: luxury brands do not limit themselves to infuse art into their products but aspire to turn them into recognized artworks. This transforms them from actors using arts for their proposal, to real art creator institutions”.

• In this direction fashion brands are in the first steps.

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References for your study1. Jin B. - Cedrola E. Product innovation in the global fashion industry Palgrave Macmillan, New York, 2018 – Chapter 1

mktg

2. Jin B. - Cedrola E. Fashion Brand Internationalization, Palgrave Macmillan, New York, 2016 – Chapter 2

mktg

3. Masè S. – Cedrola E. Fashion Branding and Communication, Palgrave Macmillan, New York, 2017 – Chapter 6

mktg

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