FASHION BRAND MANAGEMENT

FASHION BRAND MANAGEMENTShahrukh ShahbazCONTENTSINTRODUCTIONTHE FASHION SYSTEMTHE LUXURY FASHION INDUSTRYLUXURY FASHION BRAND MANAGEMENTCLASSIFICATION OF FASHION INDUSTRYCASE STUDY (HUGO BOSS)

INTRODUCTIONFASHION BRAND MANAGEMENT:In consumer marketing, brands provide the primary points of differentiation between competitive offerings, and as such they can be critical to the success of companies. It is important that the management of brands is approached strategically for long term goals

THE FASHION SYSTEMSocieties evolve along with fashionIn order to preserve growth, you must be differentLength of product life cycle is shorter in comparison with other industries

THE FASHION SYSTEMFashion changes are usually related to seasonal motives Product life cycle is modelled by Planned Obsolescence to control the product turn over

THE FASHION SYSTEMNew Trend:High Street stores propose a new collection on a monthly basis. Now fast fashion is increasingly assuming importance on a global scene.

THE LUXURY FASHION INDUSTRYLuxus is the Latinism for indulgence of senses, regardless of cost. The Rarity Principle suggests that when everybody is able to purchase a specific brand, the luxury component is eroded. Global luxury market has a high share with an annual growth rate of 8-10%. Peoples desire to show off fosters the demand for goods with status conferring characteristics. Premium PriceLUXURY FASHION BRAND MANAGEMENTBRAND POSITIONINGFashion designers want their brands to be clearly positioned in customers minds. There are four main components creating brand identity; HeritageStyleRetail & Distribution ChannelsCommunication

BRAND IMPLEMENTATIONWhether launching a new brand or rebranding an existing one, brand implementation is one of the toughest exercises a company can go through.Extraordinary levels of detailed information are gathered in order to build an effective implementation plan.The design stage is the least expensive but most glamorous aspect of a (re)branding process.Emphasize internal communication about the project.

Impractical designs are harder and more expensive to implement, so the design stage must be guided by practical advice.Make prototypes before the real implementation. What looks good on a piece of paper may not look the same on top of a 20-story building.A brand implementation is an excellent opportunity to tell the brand story, including the brand positioning and the brand values.10BRAND MONITORINGAbusiness analytics process concerned with monitoring various channels on the web or media in order to gain insight about the companyMain Benefits:Identify and address infringersAddressing competitor and consumer reactions

BRAND GROWTHThe analysis of gradual growth of a business in terms of number of consumers and the revenue.

BRAND EQUITYBrand Equity is the expression of the relationship between customers and brands in the marketing literature.The total value of a brand as a separable asset when it is sold, or included on a balance sheet-----BRAND VALUEA measure of the strength of consumers' attachment to a brand-----BRAND LOYALTYA description of the associations and beliefs the consumer has about the brand-----BRAND IMAGECLASSIFICATION OF FASHION INDUSTRYMODELSEGMENTCOMPETITORSMISSIONAffordable FashionWoman, Apparel, AccessoriesThere is no competitors predominanceCodification of fashion tendenciesPremium BrandMan, Casual and Jeans, AccessoriesAmerican & Northern Europe BrandsValue for MoneyExclusive LuxuryMan, Elegant Woman, AccessoriesFrench LuxuryAffirmation of Brand HeritageHigh FashionWoman, PAP, AccessoriesInternational DesignersImposition of new tendenciesThe above mentioned four classes are classified according to the degree of luxury contained. Starting from Affordable fashion brands and moving on to High fashion brands, there is an increment in terms of quality, price premium and brand image importance. Heres an attempt to classify some famous brands into the four competitive models mentioned above. Affordable fashion includes names such as H&M and Levis. Premium brands are Geox and Replay. An example of Exclusive luxury is given by Armani and Zegna. Prada and Gucci are part of the High Fashion competitive model.

14CASE SUDY:HUGO BOSS INTRODUCTIONFoundation in 1923 in Metzingen, Germany Since the sixties it has built its brand image around mens suits.Currently it is known worldwide for its wide range of high quality productsEuropean design and fibers coming mainly from Italy.

BRAND STRATEGY Developing and marketing high-end products. Each brand in the HUGO BOSS brand architecture clearly targets different consumer groups.The individuality of consumers based on superior and luxury quality & designs and a perfect standard with regard to fit and workmanship.

BRAND PORTFOLIO

BRAND IDENTITY

BOSSBRAND IDENTITYBOSS ORANGE

BRAND IDENTITYBOSS GREEN

MARKET POSITIONING OF BRANDHugo Boss fits best under the Premium Brand whose quality is mirrored in the premium price. Gradually, Hugo Boss tends to show some features typically owned by Exclusive luxury and High fashion brands in order to enlarge the customer base and evolve into the next level of the luxury scale.REVIVAL OF BRANDThough Hugo Boss was always a producer of high-quality clothing but it lacked flair till 1970. In early 1970s the annual revenues were just 4 million deutsche marks.New CEOsThey started the brand building by sponsoring Porshce in formula one races

REVIVAL OF BRANDSponsorship of international tennis, golf and ski competitions1980 the sales revenue of the company topped 100 million deutsche marksIn 2013 the annual group sales of the company increased by 6% to 2432.1 million

CURRENT BRAND POSITIONS

BRAND MONITORING

The current brand positioning shows how Hugo Boss brands overlap and this would have negative consequences by confusing costumers. The company is working on changing the current situation because it might result in the cannibalization of Hugo Boss own brands24BRAND GROWTHAs a Premium luxury brand firstly in Western Europe, Hugo Boss has now spread throughout the world. The dynamics of fashion and globalization pushed Hugo Boss towards the exploration of new unexploited markets.Globally 800 retail stores and 5600 point of sales including which are segregated as American, European and Asia/Pacific markets. DESIGN STRATEGIESThe fashion products are developed from Germany, Italy and Switzerland which are followed by the production houses that are operational in Italy, Turkey and Poland. The main constituent of Hugo Bosss global strategy is efficiency which is forced by the importance of implementing a consistent brand image throughout. THE KEY TO SUCCESSHugo Boss authorizes the success of their company with their well balanced portfolio of clearly differentiated brands and their brand communicating power to drive premium and luxury brand image. FUTURE BRAND POSITIONING

OVERVIEW OF BRAND SUCCESSWell-balanced portfolio of clearly differentiated brandsBrand communication power drives premium and luxury brand imageRetail and controlled space elevate quality of brand presentationHomogenous brand experience across all consumer touchpointsREFERENCESErich Joachimsthaler and David Aaker, Harvard Business Review on Brand Management, 1999.Hugo Boss Annual Report, 2008Christoph Auhagen, Brand Strategy, Hugo Boss Investor Day 2012 Conference, December 6, 2012Management Report, Hugo BossAnnual Report, Hugo Boss, 2013