Management of Fashion Companies Flashcards
The brand identity (theoretical framework) drivers for creating a brand signature are?
Heritage
Stylistic identity
Retail identity
Communication identity
Combined, the brand identity affects how the brand is perceived by consumers as the result of the four pillars a brand can use to impact the market’s perception of it.
What is NOT one of the five segments in the fashion pyramid framework?
A) Haute couture: high fashion B) Ready-to-wear C) Masstige D) Diffusion: the second-line of the ready-to-wear brand E) Bridge: mid-market F) Mass market
The fashion pyramid is the tool that companies (especially womenswear) look at to position themselves. In the pyramid, we have five different segments
- Haute couture: high fashion
- Ready-to-wear
- Diffusion: the second-line of the ready-to-wear brand
- Bridge: mid-market
- Mass market
What is NOT one of the contemporary industry trends?
A) Circular economy & sustainability B) Omnichannel experience C) Influencer marketing D) Fast fashion E) Collaborations F) Customization G) Gender naturality and inclusivity H) Transmedia storytelling,
Industry trends: circular economy, omnichannel experience, influencer marketing, transmedia storytelling, collaborations, customization, gender natural, inclusivity, end of ownership
I.E., Fast Fashion is NOT a current industry trend - the industry is moving away from it
What is NOT a component in a business model in the fashion industry?
A) What: the value proposition B) Whom: the target audience C) How: level of vertical integration D) How: the stylistic identity E) Who: the corporate governance of the company F) Who: the creative director
A fashion business model is comprised of:
A) What: the value proposition
B) Whom: the target audience
C) How: level of vertical integration
E) Who: the corporate governance of the company
Following are NOT a component in a business model in the fashion industry:
D) How: the stylistic identity
F) Who: the stylistic director
Fashion is made of four pillars: Which?
A) Non-verbal communication: a type of language
B) Planned obsolescence and seasonal cycle: artificially shortening of product-life-cycle by creating the need for “newness”
C) A business made of companies with little variety of business models
D) A business made of companies with a variety of business models (different price ranges and business models)
E) Dream factor: the creation of an association between the brand and something inspirational, emotional, a lifestyle
Fashion is made of four pillars: Which?
A) Non-verbal communication: a type of language
B) Planned obsolescence and seasonal cycle: artificially shortening of product-life-cycle by creating the need for “newness”
D) A business made of companies with a variety of business models (different price ranges and business models)
E) Dream factor: the creation of an association between the brand and something inspirational, emotional, a lifestyle
NOT: C) A business made of companies with little variety of business models
Which of the following is NOT one of the business models in fashion?
A) Luxury brands B) Fashion designers C) Premium brands D) Italian model E) Retailers
WRONG: D) Italian model is not a business model by itself
What is (are) the key success factor in the luxury business model?
A) Style and trends
B) Product excellence and premium price
C) High level of vertical integration
D) Mostly owned by luxury conglomerates (some are still family-owned)
E) The marketing mix
F) Supply chain management is the real backbone of this business
The key success factor in the luxury business model:
B) Product excellence and premium price
C) High level of vertical integration
D) Mostly owned by luxury conglomerates (some are still family-owned)
What is (are) the key success factor in the Premium brand business model?
A) Style and trends
B) Product excellence and premium price
C) High level of vertical integration
D) Mostly owned by luxury conglomerates (some are still family-owned)
E) The marketing mix
F) Supply chain management is the real backbone of this business
The key success factor in the premium business model:
E) the marketing mix
What is (are) the key success factor in the Retailer business model?
A) Style and trends
B) Product excellence and premium price
C) High level of vertical integration
D) Mostly owned by luxury conglomerates (some are still family-owned)
E) The marketing mix
F) Supply chain management is the real backbone of this business
The key success factor in the retailer business model:
F) Supply chain management is the real backbone of this business
What is (are) the key success factor in the Fashion Designer business model?
A) Style and trends
B) Product excellence and premium price
C) High level of vertical integration
D) Mostly owned by luxury conglomerates (some are still family-owned)
E) The marketing mix
F) Supply chain management is the real backbone of this business
The key success factor in the Fashion Designer business model:
A) Style and trends
What is a trademark?
A) a component of a brand: logo, design, and symbol associated with the brand under legal protection
B) a distinctive stylistic identity that creates an association with products to the brand
C) “a promise well delivered”
A trademark: A) a component of a brand: logo, design and symbol associated with the brand under legal protection
What is a brand NOT?
A) A promise: a value proposition that needs to be different from that of other competitors while being relevant to the market
B) A delivery of the promise: the execution and consistency in everything a brand does
C) Determines association that allows charging of higher prices due to higher willingness to pay for consumers
D) All of the above
D) All of the above
A brand determines specific associations that allow charging of higher prices due to higher willingness to pay for consumers given specific style and brand. Concurrently, it is a “promise well delivered”.
A brand is an asset defined by consumer associations, which can be both tangible and emotional.
What is meant by tangible?
A) The brand’s visual language, name, logo, slogan, lettering, colors
B) Values and benefits as perceived by consumers
C) Functionality of the products of the brand
D) Music, wifi, service, entertainment, design, interior, lightning, etc. all affect the consumer experience connected to purchasing goods of a certain brand
A) The brand’s visual language, name, logo, slogan, lettering, colors
A brand is an asset defined by consumer associations, which can be both tangible and emotional.
Which of the following is NOT true for intangible/emotional branding?
A) The brand’s visual language, name, logo, slogan, lettering
B) Values and benefits as perceived by consumers
C) Functionality of the products of the brand: “when I buy/use this brand, I obtain…”
D) Music, wifi, service, entertainment, design, interior, lightning, etc. all affect the consumer experience connected to purchasing goods of a certain brand. “when I buy this brand, I feel”
E) Emotion/ meaning: for most fashion brands, everything is about the STATEMENT that you make. This relates to: “when I buy this brand, I am…”
A) The brand’s visual language, name, logo, slogan, lettering refer to the tangible part of the branding
What is NOT true about a LINE extension?
A) Expanding the current market segment by introducing diffusion brands (new spin-off brands)
B) Expanding the product assortment to new categories
C) Is advantageous bc. you can stay in your current specialty field which allows you to leverage your current network, capabilities, competencies, etc.
D) Is advantageous if you are already perceived as a legitimate brand good at what you are doing - so customers put trust in your new lines (brands)
E) A risk is that you might dilute the image of your brand
Line Extension: refers to expanding the market segment. To aim for new groups of consumers with the same/similar products. (Diffusion: labels that target another market segment). E.g., Marc by Marc Jacobs and Weekend by Max Mara
WRONG: B) Expanding the product assortment to new categories
What is NOT true about a BRAND extension?
A) Expanding the product assortment to new categories
B) Expanding the current market segment by introducing diffusion brands (new spin-off brands)
C) Is the main approach of the way French brands have expanded
D) Advantageous because no dilution of the brand image
E) Increases efficiency of communication costs: all investment resources can focus on one brand only (stores, marketing, etc.)
F) Increases product diversification and therefore product-specific risks & financial risk
G) Opens up for new consumers: who may not be able to afford a bag from Chanel, but can afford beauty from Chanel
Brand Extension: refers to expanding the product portfolio, introducing new product categories under the same brand. This is more common for high-end French luxury brands such as Chanel and Hermes.
WRONG: B) Expanding the current market segment by introducing diffusion brands (new spin-off brands)
What is meant by “trading down” in the context of luxury?
A) Enlargement of the luxury customer base by introducing more accessible products
B) Mass-market brands can ‘copy’ some elements from the marketing mix of the luxury brands in order to create appeal more to masstige segment
C) Luxury brands upgrading to couture
A) Enlargement of the luxury customer base by introducing more accessible products
What is NOT the case for a “trading up” strategy in the context of luxury?
A) Enlargement of the luxury customer base by introducing more accessible products
B) Mass-market brands can ‘copy’ some elements from the marketing mix of the luxury brands in order to create appeal more to masstige segment
C) Luxury brands upgrading to couture
D) Adding a higher-priced, higher-quality version of a product to the range, generally to increase sales of the lower-priced model through consumer association of its image with the more prestigious model.
Trading up: Adding a higher-priced, higher-quality version of a product to the range, generally to increase sales of the lower-priced model through consumer association of its image with the more prestigious model.
WRONG: A) Enlargement of the luxury customer base by introducing more accessible products
Trading-up is sometimes necessary if a company also pursues a trading-down strategy because this allows luxury brands to maintain their position on the top of the fashion pyramid - i.e., to make sure that the market still perceives the luxury brand as something exclusive, even though affordable product categories/lines are offered.
TRUE/ FALSE?
TRUE
What is NOT true about masstige and how it is this achieved?
A) Prestige + mass = masstige
B) A retail category that includes brands and products that have high-end, prestigious characteristics but with prices and locations that make them accessible to a mass consumer audience
C) Masstige is mainly achieved by increasing the quality of the product
D) Masstige is NOT luxury because they offer a “mass” experience, one which is not unique in the same way as in luxury.
E) H&M Limited edition collaborations with high-end designers is an example of masstige
WRONG: C) the quality of the product is seldomly improved. Rather, the masstige perception is mainly created through communication and the creation of a sense of exclusivity (e.g., through limited editions).
What is (are) the competitive advantage(s) of LVMH (LV)?
A) mainly a business of basic carry-over products
B) affordable products in the luxury world
C) pioneer in terms of line-extension
D) collaborations and experimentation
E) pure retail-identity; no wholesale
F) all of the above
G) one of the options are wrong
Competitive advantage of LV: mainly a business of basic carry-over products (same monograms are sold today as in 1800s). Also, in the world of luxury, LV is relatively affordable, making LV widely diffused. The main success factor lies in the fact that the company has been able to inject creativity through collaborations and experimentation etc.
WRONG: C) pioneer in terms of line-extension
What is (are) the competitive advantage(s) of CHANEL?
A) quality, comfort and flexibility
B) simplicity and freedom
C) started from the adoption of mens’ sportswear to womens’ dresses
D) conglomerate ownership
E) created a symbolism from the color black and introduced suit-pants to women
WRONG: D) Chanel is a privately held company - not owned by conglomerate
What is NOT a key characteristic of the French Model?
A) couture as an image platform rather than a profitable business
B) focuses on line extension
C) branding to new generations
D) conglomerate strategy
E) high level of vertical integration and supply chain control
F) growth through brand extension
B) is wrong
French model:
- Couture as an image platform (not a real business)
- NO second lines; growth through brand extension (beauty, leather goods, jewels, and eyewear) and NOT line extension
- Conglomerate strategy
- High level of supply chain control
- Branding to new generations
The origin and success of “Made in Italy” lie in three peculiar factors: which?
A) the creative impulse originated from the designers
B) a promise of sustainability
C) the textile industry
D) the entrepreneurs
WRONG: B) “Made in Italy” does not necessarily mean that the product is sustainable
What is the greatest opportunity for the Italian textile industry?
A) Sustainability
B) Reshoring
C) Decreasing production costs in Italy
D) Rise of a new creative generation in Italy
The greatest opportunity for the Italian textile industry: RESHORING - many fashion brands have started to move production back to Italy.
What is the greatest challenge for the Italian textile industry?
A) “Fake made in Italy” - no guarantee of quality and sustainability
B) High production costs compared to less developed countries
C) Rising demand on quality and sustainability
D) A+B
E) B+C
D) A+B are correct:
The greatest challenge for the Italian textile industry: higher cost for production in Italy compared to e.g., China and;
“fake made in Italy”. That is the “made in Italy” label does not guarantee quality, sustainability, etc.
What is(are) the main competitive advantage(s) of D&G?
A) strong and unique brand concept
B) sustainability
C) coherence in the pillars of its brand identity (heritage, stylistic identity, communication identity and retail identity)
D) efficient use of social media marketing
A) Strong and unique brand concept (Sicilianity)
C) coherent in everything that D&G stands for and does:
Their heritage, stylistic identity, communication identity, retail identity
Following is(are) NOT true about the growth path of the Italian model: choose 1- 5
A) initially based on clothing being the core business
B) Initially, Italian brands executed line extension but later moved to brand extension
C) Initially, Italian brands executed brand extension but later moved to line extension
D) from creative individual designers/ entrepreneurs using licensing –> vertically integrated companies
E) Corporate governance include mostly conglomerates
WRONG:
C) Initially, Italian brands executed brand extension but later moved to line extension - no, they started with line extension and later started extending the brand
E) corporate governance include mostly family-run business, even thought we also see conglomerate ownership
What is(are) NOT true about Make-to-Order?
A) only seasonal products that have already been sold to retail clients are sent to production
B) unsold stock is a significant disadvantage
C) it is mostly used in high-end fashion segments
D) advantage is that traffic is created in stores
WRONG:
B) unsold stock is NOT a significant disadvantage
D) traffic in stores are NOT created from this logic
Firms following the “make-to-order” logic produce only the portion of the seasonal offer that has already been sold to retail clients. This process allows the firm to minimize unsold stocks that would be out of fashion the following season. Make-to-order is the traditional logic of high-end fashion designers.
Make-to-order stages: building the seasonal sample collection, presenting the collection, acquiring orders, launching production, and delivering products.
What is(are) NOT true about Make-to-Stock?
A) products are produced based on forecasts of sales for the season
B) advantageous because delivery time (lead time) is shortened
C) mostly used by fast fashion companies and for products that are “basic”
D) advantageous because the unsold stock is minimized by this approach
E) frequently used by high-end fashion and luxury brands
WRONG:
D) advantageous because the unsold stock is minimized by this approach - no, unsold stock is a huge disadvantage about make-to-stock
E) frequently used by high-end fashion and luxury brands - no, they have recently started to use the approach for some of their “basic” products, but it is not “frequently” used by them
Firms following the “make-to-stock” logic produce the offer that is planned for the season on the basis of sales FORECASTS. This process guarantees a much more rapid delivery time compared with the make-to-order logic. Thus, make-to-stock applies both to companies working on basics (styles and volumes can be forecast in advance) and to fast fashion companies that produce mini-packages in order to shrink lead time.
Make-to-stock stages: sales forecasts, production planning, production launch, sales, and delivery.
Which of the following is NOT a characteristic of the fast-fashion business model? A) Rapid design process B) Minimal lead times C) Highly responsive supply chain D) High fashionability E) Make-to-order logic F) Pull-oriented G) Very strong at SCM
The Fast Fashion business model:
Rapid design process combined with a quick response supply chain, utilizing minimal lead times, low prices, high fashionability, and high volume sales, pull (not push), and very efficient in supply chain management
WRONG: E) Make to order logic is not the case - it is make-to-stock that is typically applied
What are the main disadvantages of make-to-order? Choose 2:
A) Long lead times
B) Difficulty of creating traffic in store due to few seasonal collections
C) Large quantity of unsold collections
D) Lack of sustainability
A) Long lead times
B) Difficulty of creating traffic in store due to few seasonal collections
Fashion and luxury brands ONLY use the make-to-order logic.
TRUE/ FALSE?
NO -fashion brands MOSTLY utilize the make-to-order logic. However, in recent times, they have started to concurrently utilize the make-to-stock logic in order to introduce more collections (e.g., pre-fall, pre-summer, etc.) to generate more traffic in stores
What is NOT a main difference between H&M and Zara?
A) H&M is fast fashion, Zara is not
B) H&M is less vertically integrated than Zara
C) H&M is less geographically diversified than Zara
D) H&M is more considered as a masstige brand than Zara
A) H&M is fast fashion, Zara is not - WRONG
Both brands are fast fashion
H&M is less vertically integrated than ZARA
H&M is considered a masstige brand more than ZARA is because of collaborations with high-end designers
Which two factors distinguish brands’ DRESSING STYLE?
A) Price and Quality
B) Distance from previous collections and Visual impact
C) Classic and Avant-Garde
Distance from previous collections: how much is innovated, how much is reused
Visual impact: strong or discrete visual impact – how recognizable is it?
In terms of dressing styles, what does Modern mean?
A) Brands are more understated: the idea is not about having big logo exposure or very strong stylistic codes. They are more masculine in style: suits, products that are not strongly differentiated, high quality. E.g., Armani, Tom Ford, Jacquemus
B) The customer is at the center. value-for-money: considered as investment pieces – the pieces are classic and therefore never out of fashion, and there is high attention to details.
C) High level of continuous innovation, making the brand less wearable – much more use of special material rather than traditional material – this is a niche market. It is challenging the common idea of what beauty is – not necessarily consensus of whether it is pretty or ugly.
D) Interest in fashion and luxury brands, awareness of the communication potential associated with a dress, details evident, strong colors, constructed materials, and dresses.
Modern dressing style is characterized by: high distance from previous collections and a low degree of visual impact.
A) Brands are more understated: the idea is not about having big logo exposure or very strong stylistic codes. They are more masculine in style: suits, products that are not strongly differentiated, high quality. E.g., Armani, Tom Ford, Jacquemus
