National institute of fashion technology

Hyderabad

Masters in fashion management

Semester 2

Fashion forecasting and product development

Product development process of Giorgio Armani Vs Louis

Philippe

Submitted By:Proof I Chakarpani

Submitted By:Deepika Agrawal (08)

Sr.no Topics

1 Introduction To Brands

2 Flow Chart

3 Product Development Process

4 Major Difference

5 Conclusion

6 Bibliography

Content

LOUIS PHILIPPE :Madura Fashion & Lifestyle, a division of Aditya Birla Nuvo Ltd. is one of India’s fastest growing branded apparel companies and a premium lifestyle player in the retail sector. After consolidating its market leadership with its own brands, it introduced some of the leading international labels enabling Indian consumers to buy the most prestigious global fashion and accessories within the country.The company’s brand portfolio includes products that range from affordable and mass-market to luxurious, high-end styles that cater to every age group, from children and youth to men and women. Madura Fashion & Lifestyle is defined by its brands — Louis Philippe, Van Heusen, Allen Solly, Peter England and the people that personify style, attitude, luxury and comfort.Madura Fashion & Lifestyle reaches its discerning customers through an extensive network comprising 700 exclusive franchise stores, many department chains and over 2,000 premium multi-brand trade outlets, both within and outside India.The company’s lifestyle store, The Collective offers a unique blend of global fashion, international trends and innovative customer services to customers in Bengaluru, Mumbai and Delhi.Planet Fashion, the apparel-retail arm of Madura Fashion & Lifestyle, housing the company’s in-house and other brands, is the largest chain of stores of its kind in India.

Giorgio Armani :Giorgio Armani is an Italian designer from Italy. He is known for his gorgeous men's suits however, he branched to designing women's wear as well, which has been an amazing success. He formed his company in 1975 and It has been a success ever since. He now has seven labels and always shows his new designs every fall and spring for Mercedes Benz fashion week. He has been my favourite designer for a long time. Before I even knew about fashion or the modelling industry. I always admired his work at a young age. Growing up in Italy Armani worked very hard to make his name known. He worked in stores and regular jobs just like everyone else but he knew he had a idea and he wanted his idea to be recognized. This blog will focus on his career and his lovely designs and why I appreciate fashion so much.

Mission statement: When you dream big! and never give up you can become whatever you please to be. No one knows if they will be a famous actor, model etc., but when you work hard and don't get sucked into the word "failure". Your Success is high. Armani worked hard to be where he is today. He is one of the most admired fashion designers in today's society. All because he had a dream.

INTRODUCTION TO BRANDS

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MARKET RESEARCH

DESIGN CONCEPT

IDEA SCREENING

BUSINESS ANALYSIS

DEVELOPMENT

TEST MARKETING

COMMERCIALIZATION

FEEDBACK

MARKET RESEARCH

DESIGN CONCEPT

BUSINESS ANALYSIS

DEVELOPMENT

COMMERCIALIZATION

FEEDBACK

Flow chart ARMANI Vs LP

BASE ARMANI LP

MARKT RESEARCH

Market research: • Direct interaction• Personal contact• Feedback It involves communicating a concept or message to a large audience. Armani does this all the time, because advertising and communicating to consumers is a great marketing tool. This helps the company understand who they are targeting because they will see through sales.Armani does this as well when he stops by his stores to see how the stores are doing. To be able to interact and speak to consumers is a good thing. This again is a outstanding marketing tool because this shows his consumers; he cares. As a consumer of Armani products I appreciate this from him.

Market research:• Pre-forecastThe shirts were made from the finest mill made cotton fabrics in designs inspired by the latest international trends.

DESIGN CONCEPT

Design concept:• Customer suggestion• Creative conceptExample, The customers suggested that he design a women collection, and that he create a cosmetic lines etc. Armani responded to this by accepting the suggestions. Also the employees of Armani see how the company is doing from a hands on experience. The employees of Armani suggested longer hours to stay open, they also suggested the employees wear Armani clothing to appeal to the customers better.

Design concept:The shirts were ‘mitered’; lines making up stripes and checks were all matched to perfection on all the different parts of the garment – a first for the Indian market. Side seams were double stitched for reinforcement. The shirts used international quality of trims, threads, imported interlining(which did not bubble or lose shape even after repeated washes) and imported buttons. Embellished with the ‘Crest’ embroidered on the cuff, the truly international shirts announced to the world that you had ‘arrived’.

PRODUCT DEVELOPMENT PROCESS OF ARMANI Vs LP

BASE ARMAINI LP

IDEA SCREENING

Eliminates ideas that are not relevant to the organizations product strategy. According, to Armani he has a lot of ideas that he thought would work, but turned out to be not what he expected

There is no idea screeningtakes place. Directly they move to cost analysis.

BUSINESS ANALYSIS

In Armani case he thinks about quality, he figures if he has clothing that represents himself, which is great quality clothing and classy at the same time. People will buy his clothes no matter what the price is. However, Armani didn't realize that majority of people in America are not rich, so he had to figure out a way for customers to but his clothes but at a cheaper price but still keep the Armani taste to it. So this is when he made all of his other labels( Armani exchange, Armani junior) etc.

:

• Upscale Orientation • Premium Pricing• Prestige Pricing

Price Ranges till Rs 6,000 on individual SKU’s

DEVELOPMENT

Armani had to figure out what the prototype would be, how he would brand his company, the logo, packaging etc.

At this stage the garment takes it shape in bulk.

The shirts were made from the finest mill made cotton fabrics in designs inspired by the latest international trends. The shirts were ‘mitered’; lines making up stripes and checks were all matched to perfection on all the different parts of the garment – a first for the Indian market. Side seams were double stitched for reinforcement. The shirts used international quality of trims, threads, imported interlining (which did not bubble or lose shape even

BASE ARMANI LP

TEST MARKETING

This is when a company sees how the customers will react to their product. Armani had to test in Italy first in order to come to America. That took time as well. Then even when he came to America (Americans) had to accept him so he was risking a lot.

Directly supplied to the outlets. No specific test marketing takes place.

COMMERCIALIZATION

• Constant mail• Direct contact• Personal selling• Fashion show• Armani does to promote is by

having a DJ in the Armani exchange stores .

• The point-of-purchase promotion

• Magazine: “the Labels”

• running various exciting campaigns on Social Media, e.g. #Play Stylist Dressing Room campaign

• Facebook, YouTube, twitter- average 3-4 post a day.

FEEDBACK • One-one feedbackHe does a lot of one-one marketing, which is important because this is how companies figure out who are loyal consumers. The goal of this is to reduce cost through customer retention and increase revenue through-customer loyalty.

• Through feedback form• Through mail

MAJOR DIFFRENCE

BASE ARMANI LP

Differentiation within the products.

This reporter found the materials used for the production of clothing for international brands come from both domestic and foreign sources. Generally, dresses branded from outside China made for sale within the country use only locally supplied materials, while those intended for export are produced with materials imported from abroad.

No differentiation

Sourcing: Italy (domestic) and china (always signs confidentiality agreements with its contract manufacturers, stipulating that these suppliers must not disclose any production details or other relevant information to third parties.)

India(domestic)

Costing Design work constitutes a big portion of total costs. The design fee for a men's suit could reach more than US$100,000, although sales of the products may reach only between 500 and 1,000 pieces in mainland China.The design cost for higher-level products could double to US$200,000,

Final costing of LP formal shirt is Rs 350 approx.

Source: (http://www.wantchinatimes.com/)

BASE ARMANI LP

Specification: that garments produced in China have no recognizable difference in quality because the same standards are maintained for Armani products everywhere.Note: The variety in supply sources is mainly a question of cost, while the top management at Armani seems to have placed greater emphasis on design work.

The shirts were made from the finest millmade cotton fabrics in designs inspired by thelatest international trends. The shirts were‘mitered’; lines making up stripes and checkswere all matched to perfection on all thedifferent parts of the garment – a first for theIndian market. Side seams were double stitchedfor reinforcement. The shirts used internationalquality of trims, threads, imported interlining(which did not bubble or lose shape even afterrepeated washes) and imported buttons.Embellished with the ‘Crest’ embroidered on thecuff, the truly international shirts

Design work All the design work was done in Italy while the materials did not necessarily come from the same area, as various nations are specialized in certain fabrics.

Inspired by pre- forecast. And alteration is done within Madura Fashion and lifestyle factory designers, for LP.

Final tailoring the final processing is done in China, said the sales staff. There is a need for altering and modifications of garments, mainly because products designed in Europe do not always fit shoppers in Asia. Armani stores also retain tailors who alter garments free of charge.

It is done in India. LP stores also retain tailors who alter garments free of charge.

Source: (http://www.wantchinatimes.com/)

• As we can see in document, the difference in both the product development is not so different.

• The main difference we can see, is the way they do business analysis. Especially highlighting the margin of profit.

• A negative point in Armani is that he get the “product on sale” garments made in china, giving the strict standard specification to the manufacturers.

• But here the question arises, he keeps the china made product at low MRP. But how? It can be answered by only one sentence Armani compromises with the quality of the product.

• Looking at LP, the standard set earlier is strictly followed. That means that they don’t ever let quality down.

• While studying another main point highlighted is that, feedback process. Armani do “one-one feedback” while LP does through maintain registered on each store.

• In this we can say Armani understand the consumer in more depth than LP.

Conclusion

Bibliography

• www.wantchinatimes.com

• hautecoutureforever.blogspot.in/2012/10/chapter-18-sales-promotion-and-personal.html

• www.louisphilippe.com/

• Chinatimes.com

• Economicstimes.com