1. 1. As It Situation Haute Future Fashion Academy Yuting Jhang
2. 2. HOGAN PRODUCT CATEGORIES: ACCESSORIES APPAREL BAGS SHOES CORE BUSINESS: SHOES
3. 3. Italy 25 China 9 Emirates 2 France 2 Germany 1 Greece 2 Hong Kong 4 Kuwait 1 Lebanon 1 Macao 1 United kingdom 1 Switzerland 1 Taiwan 2 Number of POS TOTAL 51 Number of POS and DOS Italy 6 Europe 8 Middle East 4 Asia 15 Number of DOS TOTAL 33 Italy is the most covered territory. The other countries are not so developed. Focus on China.
4. 4. Brand Style Perceived Urban Casual Chic Contemporary Innovative Rebel attitude Real Situation Basic Classic Daily used
5. 5. Brand Value Perceived Mix Tradition and Modernity Last a Lifetime Future Roots Contemporary Life style Quality Luxury Real Situation Comfort Long Lasting Family Heritage Functional
6. 6. Brand Positioning Perceived Modern Urban Lasting Chic Affordable Luxury Real Situation Casual Comfort Logo Driven Bridge Brand
7. 7. Perceived Target Group Well travelled, well educated, well dressed. Men and Women 20 45 Middle High / High status. Lifestyle: International, active, social, cosmopolitan. Demographics: freelancer, young businessman, creative jobs.
8. 8. Reality Target Group No clear dimensions. Man and Woman younger and older than 20 45 years old. Middle Class Lifestyle: Unengaged occasions. Demographics: Includes housewives and students. Diversity.
9. 9. Perceived Wearing Occasions Perceived Going out in the city in stylish looks Creative business meeting Social Events Worn for long time Real Situation Casual daily activity with daily clothes Supermarket, Gym , Park Sightseeing High school students
10. 10. Competitors Europe Asia Middle East Eastern Europe Geox Nero Giardini Alberto Guardiani Tods Geox Ecco Clarks Hush Pappies Camper Ferragamo New Balance Dr.Martens Geox Prada Sport Nike Timberland Isabel Marant Geox Ecco Baldinini Bikkembergs
11. 11. Competitors Functional Fashionable Luxury Affordable
12. 12. 50 100 50 100 25 75 25 75 ICONOGRAPHY % AUTHORITY % LOOPING BRANDS TOP BRANDS HOSPITAL ERODERS BRAND EQUITY MAPPING ANALYSIS: TODS Brand : High authority and iconography Customers trust the product. Roger Vivier: Most exclusive out of the 4 brands Brand perception is coherent with its positioning. HOGAN: Difference (GAP) between: Positioning imposed by the brand Actual perception of the brand decreasing the brands authority . Fay Brand: Weakest among the 4 brands.
13. 13. Asia Pacific Market Hong Kong Mainland China Taiwan
14. 14. Content in Market Pestel Analysis Customer Scan Competitors in Asia SWOT Analysis
15. 15. Asia Pacific Luxury Market 2013 Last Year Total: 2.5 % growth to 217 billion Chinese New Year Period (Feb.2014) 8.5 billion($) shopping abroad Europe 51% HK ,Macao ,Taiwan 23 % North America 15 % Middle East 11% Category 2013 Revenues 2012-2013 Growth Leather Goods 1.86 Bn() 5 % Shoes 0.8 8 % Men's Apparel 1.4 -1% Women's Apparel 0.7 10% Cosmetics 3.7 10% Jewelry 0.9 5% Watches 3.14 -11% Accessories 0.93 8% Total 13.49 2%Source From : Bain & Company http://www.bain.com/about/press/press-releases/mainland-china-entering-new-era-of-luxury-cooldown.aspx
16. 16. Anti-corruption and Anti-gifting policy - From men category to personal care category. Watch segment declined by 11 % in 2013. Push Chinese tourists go abroad to purchase. 67 % in 2013. Tax Policy (rates and incentives)- Import tax and luxury tax The luxury products in China could higher than in which France72 % America 51 % HK 45 % Average price in Asia are 30 percent higher than Europe. (Source From : http://b5.secretchina.com/news/13/10/30/518233.html?) (Source FromICBC China NEWS) One Child Policy Luxury Customers : Average 23-35 years old 25 years younger than USA customers.
17. 17. Economic growth rate is cooling down in Asia. China 7.7 % Taiwan 0.3 % Hong Kong 3.7 % The investment of opening and operating store in first-tier city are high. Store expansion is no longer enough to drive growth. Taiwan and Hong Kong benefiting from further increasing tourist flows and new retail developments. (B) 0 10 20 30 2011 2012 2013 Greater China +19% +4% Source From Bain & Company http://recursos.anuncios.com/files/581
18. 18. Trade deficit Export to China 2.9% Import from China 4.1 % The ambassador from Italy disclosed the difficulties of operating China market. Source From BSERVATORY of Economic Complexity http://atlas.media.mit.edu/profile/country/ita/
19. 19. Polarization of consumers attitudes -Booming high-end and sophisticated luxury -Logo fatigue -New middle class Looking for good service and new experience -Shift shopping from China to Taiwan -Big potential for Tourism and Service Industry (Luxury Hotel, Restaurants) Well-informed and learned quickly 73 % of customers informed fashion and luxury knowledge by website. International young businessmen and Students studying abroad Two hundred thousand students study abroad per year. (Source From : www.lihpao.com Sep.2013 ) Source From Bain & Company http://recursos.anuncios.com/files/581
20. 20. New channels rapidly emerging -E-commerce growing double digits -Taubou , Tmall are two main channel of on-line shopping Source From: China Internet Watch http://www.chinainternetwatch.com/2890/china-online-shopping-q2-2013/
21. 21. Intellectual property law Since joined WTO( World Trade Organization) 2001, stressed by USA government Despite improvements, China is still the chief violator . 70 % European companies operating in China report serious IPR violations with a strong potential negative impact of up to 20 % of their potential revenues in China. Employment discrimination Gender, Age, Household registration, Disabilities, Health, Ethnicity and religion Corporate and Social Responsibility (CSR) movement Asian labours starting to take the defence of their human rights. Including the lowest salary. Taiwan 500 Hong Kong 450 China Shanghai 197 Source From China Labour Bulletin http://www.clb.org.hk/en/content/employment-discrimination-china#conclusion
22. 22. Trade Situation Source From BSERVATORY of Economic Complexity http://atlas.media.mit.edu/profile/country/ita/ The relationship between these two countries are also competitors in global market. But the quality and positioning divides each other.
23. 23. Trade Situation Exporters Import value 2008 Import value 2009 Import value 2010 Italy 204,797 197,829 355,046 France 142,898 188,200 276,951 Spain 22,720 38,282 63,601 (Unit: US$ 1,000) Country-wise import of articles of leather and travel goods in China Resource From : Commercial Section, Consulate General of Pakistan Chengdu, China BSERVATORY of Economic Complexity Total: $14.5B
24. 24. Important fashion influencers in Asia Japan- Fashion Philosopher has been trend leader since Issey Miyake ,Yoji Yamamoto , Rei Kawakubo emerged to International fashion stage in 1990s . Hong Kong- Street Fashion Leader Owns its special status in Asia because of its movie and popular music ,leading fashion trend.
25. 25. Customers in Asia Pacific Taiwan Mature market Conservative taste Experience and Service Mainland China Functionality Practicality Famous is important Symbol and Logo driven Hong Kong Strong Street Style High Personality Mix and Match Comfortable is priority Consumer segments are more complex.
26. 26. Carry out 102 questionnaires in Taiwan There are 15 % of people have the experience that their friend or relative have bought Hogan. Taiwanese Customer Scan- Quantities Have you ever noticed the advertising and photography exhibition of Hogan? Do you know Hogan this brand? After browsing Hogan website, Give a score for attractiveness to it. Do you think Hogan as a high level Italian shoes brand? After browsing Hogan website, Do you think the image of Hogan is clear enough? After browsing Hogan website, Do you think the idea and design of shoes are original and special ?
27. 27. Taiwanese Customer Scan-Qualitative Experienced secretary in the biggest Architect office in Taiwan. Responsible for celebrities meeting and events through China and Japan. Jo, Tu. The business men in Taiwan take more care about the formal look and detail, they are tend to have the taste of westerners. Therefore, they want a well-known global brand to communicate. The well-known brand is important, it is a communicate tool. Carry out 102 questionnaires in Taiwan There are 15 % of people have the experience that their friend or relative have bought Hogan.
28. 28. Chinese Customer Scan- Quantities Have you ever noticed the advertising and photography exhibition of Hogan? Do you know Hogan this brand? After browsing Hogan website, Give a score for attractiveness to it. Do you think Hogan as a high level Italian shoes brand? After browsing Hogan website, Do you think the image of Hogan is clear enough? After browsing Hogan website, Do you think the idea and design of shoes are original and special ? Carry out 30 questionnaires in design department in Shanghai, China There are 13.3 % of people have the experience that their friend or relative have bought Hogan.
29. 29. Hong Kong Customer Scan- Qualitative Experienced Lingerie Designer in HK , Lai Yui-Fai Experienced Armani Buyer in HK, MiQuelina M. Hoi I saw some strong advertising of Hogan in HK, But the problem is Hogan has no strong identity. It is not so easy to make customers recognize. Based on its comfort and price, most of them are wore by wealthy matured women. Brand distinguishment and personality is the problem. It will be difficult to sell if Hogan is not the first line luxury brand. Even Armani sneaker are difficult to sell. Because sneaker is not the iconic product for the brand. The customers learn quickly and react quickly than we think now.
30. 30. Perception in Pacific Asia Ordinary and normal Casual Daily used Good for match
31. 31. How to Approach to Customers in Asia Pacific The street fashion culture is popular in Asia. Strong personality and strong attitude. Practical and daily usage products are positive characteristics. The first line luxury image is the priority option. Create the desire is efficient way. Service and experience are important.
32. 32. Competitors in Asia Pacific Functional Sports High Presence Geox Ecco Clarks Hush Pappies New Balance Nike Camper Salvatore Ferragamo Prada Sports Competitors have high dimension scope. High presence and clear image is necessary. Reinforce the image of Hogan.
33. 33. Competitors in Asia Pacific Functional Fashionable Luxury Affordable
34. 34. Off-Line Communication Select different popular stars in China and Taiwan as testimonials. No specific personality reflects on the brand. Mass media often out of focus.
35. 35. Photography Exhibition Beijing , Shanghai 16, November, 2013 Short period.
36. 36. On-Line Communication Yi-Zhou ,the super star in Art field in Asia. It could be very success, should focus on one main character, and reinforce the image.
37. 37. On-Line Communication The CHINA ISSUE video Launched only on official website The website doesnt offer the traditional letter which applied in Taiwan and HK
38. 38. Products Special limited edition for Chinese New Year 2014 The strategy of traditional festival reintroduction Shows the lack of studying market research. Clich and not upgrading. Customers are more educated than before. Source From: Trend Style Asia http://www.trendystyle.asia/fashion/trends/hogan-2014-chinese-new-year-flash/
39. 39. Global App Download Ranking Sources from: www.appannie.com Instagram in Asia Pacific The Marketing Strategy SHOULD be developed in the way of aligning local market. With specific off-line tools and on-line channels.
40. 40. Marketing Strategy Proposal Interactive Hogan
41. 41. DNA of Hogan Interactive Introduction Since 1997 The heritage iconic model Welcoming and popular Remain good selling Keys of success : high insole, comfort, lightness
42. 42. The Task for Interactive Essence of Hogan Future Roots Exploring the world Timeless classic Tradition and modernity Essence of Interactive Heritage Roots and future Joyfulness of daily luxury
43. 43. Yi Zhou x Existing testimonial
44. 44. Yi Zhou Chinese Multimedia Artist Multicultural background Rome , London, Paris Multimedia artworks : film, digital animation, photography. Exposed in film festivals, such as Venice Film Festival. Lately, she becomes a new star in terms of advertising and her status in art circles.
45. 45. Yi Zhou
46. 46. Concept Proposal
47. 47. Cityscope
48. 48. Cityscope City + Kaleidoscope
49. 49. The Hogan heritage When local craftsmanship meets Hogan. Launch 3 Different Products Digital Movie Series Modernity meets tradition Yi Zhou interviews artisans in 3 cities. Three cities Beijing , Hong Kong , Taipei Cityscope- 2nd episode of Interactive
50. 50. Cityscope- following episodes The following episodes, interview the artisans in different cities. Yi Zhou
51. 51. Increase Brand awareness Through the Italian passionate attitudes toward life, exploring the world. For all season use Create desire of collecting. the city editions are launched only in those particular cities. Customized strategies Different digital channels and platforms for different areas. Concept Cityscope
52. 52. Beijing Edition Xiang Embroidery The most well-known crafts in China. From B.C 220 Han Dynasty. Use embroidery to create a painting. Characteristics: gradient and extremely refinement.
53. 53. Xiang Embroidery Beijing Edition
54. 54. Xiang Embroidery Beijing Edition The reference design of Beijing edition. Resource from Raf Simon
55. 55. Hong Kong Edition Street attitude/ Use the concept of Graffiti but in Chinese calligraphy. Combine tradition and modernity.
56. 56. Chinese Calligraphy Graffiti- HK Edition This kind of graffiti shows the strong attitude of HK, outstanding the special status in Asia.
57. 57. The reference design of Hong Kong edition. Chinese Calligraphy Graffiti- HK Edition Resource from Nike
58. 58. Taiwan Edition Rush-weaving is a local handcraft practiced by generations of Taiwanese artisans. It represents local cultural custom and reflects the climate in Taiwan, also recalls the memories in the past of Taiwan.
59. 59. Rush weaving Taipei Edition The relationship between rush and Taiwanese people are well- connected. From the agricultural society, this raw material has applied into daily necessities and keep on using in nowadays.
60. 60. The reference design of Taipei edition. Rush weaving Taipei Edition Resource from Stella McCartney
61. 61. Cityscope video project
62. 62. Digital Planning
63. 63. Digital Strategy WebsiteE- commerce Social Media On-line channels
64. 64. Digital Strategy Resource from www.alexa.com
65. 65. Digital Strategy Resource from www.alexa.com China On-line TV program ex: Ifeng On-line magazines ex: VogueTV, Bazaar TV Portal sites ex: Sina, Hogan Website Weibo QQ
66. 66. Social Media Digital Strategy Resource from www.alexa.com Social Media Portal sites , ex: Yahoo Hogan Official Website On-line magazines, ex: VogueTV, Bazaar Hong Kong , Taiwan
67. 67. Digital Strategy On-line channels Sina.com.cn The second portal site in China. Insert the content into the fashion categories on the homepage. Also pop-up advertising video. Resource from www.sina.com.cn www.alexa.com Ifeng.com On-line fashion program The program focuses on luxury and fashion news. China
68. 68. Digital Strategy On-line channels Yahoo.com Insert the content into the lifestyle or fashion categories on the homepage. 83.8% Taiwanese use Yahoo as homepage. Resource from www.alexa.com Taiwan , Hong Kong
69. 69. Digital Strategy On-line channels China, HK ,Taiwan Vogue.com Vogue TV on-line stream Trend influencer Playing on most digital walls in shopping malls. Harpers Bazaar plays an important role in Asia. It is thought as iconic magazine, popular Invite the journalists to write the column which includes Hogans lifestyle and heritage, Also products. Connected with Hogan official website. On-line magazines
70. 70. Digital Strategy Official website The film should be played automatically and in full screen if you open the website. Divided this content in only Asia pacific Website
71. 71. E-commerce Digital Strategy Enlarge countries for E-commerce. official E-commerce for Asia. Create E-commerce app. For geographically diversity. Resource from Hogan Presentation 2013 Hogan E-commerce Resource from Observer solutions, 2013 http://www.digitalintheround.com/luxury-digital- china-made-in-italy/