Midterm

Question 1

What is fashion?

Answer 1

Fashion is a complex phenomenon from psychological, sociological, cultural, or commercial point of view but at the same time product, process and creative labour, an enormous culture intensive industry and a serious business and a complex system encompassing not only the business of fashion but also the art and craft of fashion, and not only production but also consumption.

Question 2

What are the main segments in the fashion industry?

Answer 2

HAUTE COUTURE, RTW/PRET-APORTER, DIFFUSION, BRIDGE SEGMENT AND MASS MARKET

Question 3

What is luxury?

Answer 3

luxury is strictly connected to exclusivity, very high quality and price, heritage, timelessness and intrinsic values.

Question 4

What are trends?

Answer 4

the concept of change and in the creative industries are the collective accumulation of cultural and social shifts, influenced with economic factors and paired with innovations in different fields, interpreted and expressed through creative processes.

Question 5

What are the main factors that influence the birth of trends?

Answer 5

socio-cultural shifts, science and technological innovations, media and art, designers’ creativity and textile.

Question 6

What are the different types of trends?

Answer 6

MEGA, MACRO, MICRO TRENDS and FADS, as well as between short and long term trends in fashion.

Question 7

What did the Covid-19 pandemic do to trends?

Answer 7

MANY TRENDS THAT HAVE ALREADY BEEN UNDERWAY HAVE ACCELERATED SIGNIFICANTLY.

Question 8

What are main shifts in preferences?

Answer 8

new cultural & social values: sustainability and purpose , diversity, equity & inclusion are of high importance.

Question 9

What is the role of online channels for fashion and luxury brands?

Answer 9

Fashion and luxury brands are increasingly switching to online channels as a mode to engage new generations of customers in the new level, shifting to a shared digital realm that enables new modes of experience.
Metaverse and meta commerce, virtual fashion and dedicated NFT marketplaces, as well as the contamination between fashion and other industries are some of the key new frontiers for fashion.

Question 10

What is a brand?

Answer 10

a name, term, design, symbol, or any other feature that identifies one seller’s goods or service as distinct from those of other sellers.

Question 11

How is a brand defined?

Answer 11

A brand is an asset defined by a set of attributes – TANGIBLE (name, logo, slogan, colour, etc) and INTANGIBLE (functional, symbolic,experiential).

Question 12

What is a trademark?

Answer 12

The legal term for a brand is trademark. It serves for identification of the source of goods or services and provides legal protection for the brand. Has to be new and distinctive.

Question 13

What is brand identity?

Answer 13

Brand identity manifests all the tangible and intangible specificities of the brand, those which make a brand unique.

Question 14

What are the components of brand identity?

Answer 14

Components of the brand identity are its stylistic identity, communication identity and retail identity, as well as the brand heritage.

Question 15

What is branding?

Answer 15

Branding is a strategic process that plays a fundamental role in developing brand image, recognition, and loyalty, by associating symbolic, intangible values to the brand offerings.

Question 16

What is brand equity?

Answer 16

Brand equity refers to that added value that a company can obtain from a product with a distinctive name and features when compared to other offerings of the same kind. Main components of brand equity are brand awareness, perceived quality, brand association and loyalty. Price difference between branded and unbranded goods.

Question 17

What is brand management?

Answer 17

Brand management is a strategic process of assembling and nurturing the brand identity and enhancing brand awareness with the sole purpose of increasing brand value over time.

Question 18

What are the key factors of a business model and what does it do?

Answer 18

in the fashion industry the following key factors set firms apart: value proposition, customer segmentation, communication , distribution channels and the degree of complexity of the firm’s value chain.
However, in general terms a business model describes how the company creates, delivers and captures value.

Question 19

Four building blocks of business models

Answer 19

WHAT, i.e. the Value Proposition, WHOM, i.e. the Client Segment, HOW, i.e. the Value Chain , WHO, i.e. the Revenue and Governance Model.

Question 20

What are the types of business models in fashion and luxury?

Answer 20

luxury brands, designer brands/fashion griffies, premium brands and retailers.

Luxury (timelessness/exclusivity/high quality), griffie (dream factor, designer image, family owned), premium (connect brand image and strong communication with higher volume with quality), retail (lower price, trends)

Question 21

What are the main stages in industry analysis?

Answer 21

1) Define the business 2) Determine industry segments 3) Identify strategic groups, KSFs, growth outlooks and empty spots 4) Drive conclusions on the industry attractiveness.

Question 22

What is stylistic identity?

Answer 22

The concept of stylistic identity refers to a set of stylistic and aesthetic codes (fabrics, textures, colors, prints, details, use of logo) which are distinctive to a certain brand, and define its uniqueness and long term style.

Stylistic identity is NOT a fixed point; and within the fashion system evolving is a necessity,

Question 23

What is the fashion cycle?

Answer 23

planning, design and product development; sell-in; and production and delivery.

Fashion is a unique industry due to the concept of seasonality and short product life cycle. trends (interpreted as seasonal codes) are through the design process combined with the stylistic identity in the creation of a new look.

Question 24

What is product development?

Answer 24

Product development in fashion is a structured process, divided into phases, involving various different functions. Due to the complexity of the offering system in the fashion industry it is necessary to rationalize the process and to balance: short-term and long-term variables, as well as aesthetic and commercial variables.

Question 25

What are the main seasonal activities in the fashion production process?

Answer 25

internal/external research on fashion trends, definition of the collection structure/guidelines, merchandising plan and price positioning, collection development and collection presentation.

Question 26

What is the jewelry industry and its segments?

Answer 26

The jewellery industry is a multifaceted industry with an ancient pedigree, whereas on the market there are different types of jewellery and the following segments: very high, high, fine, bridge, designers, fashion and custom jewellery.

Question 27

What is the most important jewelry event in Italy?

Answer 27

VicenzaOro is one of the most important jewellery events in Italy, - today an unrivalled international hub for the sector, hosting events and offering a multitude of services that cater for every aspect of the jewellery business

Question 28

How is the jewelry industry evolving?

Answer 28

It is expected the global fine jewellery market to be more branded, more digital, and more sustainability focused than ever before.

Question 29

Describe the French business model

Answer 29

The French business model is based on the clothing as an image builder (not a real business), whereas the growth is mainly achieved through brand extension - fragrances, leather goods, jewelry, eyewear. French companies do maintain a high level of supply chain control and they tend to adopt the conglomerate strategy, in which through mergers and acquisitions, the big companies grow even bigger.

Question 30

Describe haute couture

Answer 30

Haute couture is the highest niche of the system in which only a few fashion houses operate. Modern haute couture are not designed and made to be sold, they are displayed for show, publicity and credibility. Luxury is the key feature of French fashion, associated with the images of sophistication and provocation. In the French fashion industry, couture is mainly used to create the dream factory that supports the overall image of ultimate luxury, whereas revenues are in fact generated through accessories.

Question 31

Describe the Italian business model

Answer 31

Clothing is a core business, first line extension then brand extension, in past years, evolved from fashion houses into vertically integrated companies, style-driven approach is still prevailing The "Made in Italy" country brand is synonymous with the highest quality materials, craftsmanship and credibility, which is due to the exquisite craftsmanship tradition, paired with the materials of the highest quality, peculiarity of Italian design, the organization of the system of industrial districts, as well as to the “culture of art” Lifestyle, giving the image of beauty and sensuality, commonly divided in four cycles

Question 32

What is licensing?

Answer 32

Licensing is the very essence of 'Made in Italy' fashion. Under licensing agreement a brand owner (licensor), gives to another entity (licensee), permission to use its name and design for production and/or distribution of one or more product categories within a specific territory and distribution channels for a certain period of time.

Question 32

What is the difference between line extension and brand extension

Answer 32

Line extension refers to the expansion of an existing product line: a company introduces a line extension by using an established product's brand name to launch a new, slightly different item within the same product category. Brand extension refers to the expansion of the brand itself into new territories or markets: the new brand category can be related or unrelated to the initial product categories. If the company is already set and established, it will be in a better position to start new product lines and successfully establish brand extensions.

Question 33

Explain "Swiss Made"

Answer 33

"Swiss Made" watches are the most distinctive ones. The use of «Swiss made» is regulated by law. Minimum standards are set on the basis of the number of production phases performed in Switzerland, which must be respected in order to label a watch Swiss, although some non-Swiss parts may be used.

Question 34

What are the key players in the watch industry?

Answer 34

Watchmaking Masters, High Watchmaking, Luxury and Premium Watches and Designers Watches Some of the luxury watch market players on the competitive landscape are LVMH Moët Hennessy Louis Vuitton SE, Rolex SA, Compagnie Financière Richemont SA, The Swatch Group, Patek Philippe, Audemars Piguet, etc.

Question 35

What are the key strategic areas in the watch industry?

Answer 35

Key strategic areas for the watch industry are: the rise of gender-neutral, female market, diversity and personalization. Furthermore, next on the agenda for the watch brands are: online DTC strategy, aim for exclusivity and a rise of the pre-owned watch market. Importance to increase brand awareness, engage with consumers and launch e-commerce sites. Digital dramatically increases the opportunity for brands to receive feedback from customers through the tracking of online signals.

Question 36

Describe the American business model

Answer 36

informal, based on accessibility, and with the accent on casualwear and performance. "Made in USA" is also best known for the concept of "mass" - in terms of production, consumption, as well as from menswear to sportswear revolution , glorification of basic products through branding, business growth through licensing and brand extension, lifestyle creation.

Question 37

Asian business model:

Answer 37

Japanese way to fashion is based on the different concept & aesthetics than the Western ones (eg. primacy is given to the textile, instead to cloth /tailoring as within the Western system). Japanese designers did operate within Western fashion system and their cutting edge innovations have been assimilated by Western designers, yet their revolution scarcely affected the Western fashion consumption. The Chinese way to fashion is based on the labour, tradition, culture, as well as on the national symbolism & creativity, hence fashion becomes a cultural statement. The key factors of success of Chinese brands are based on the nurturing of the distinctive Chinese style , well defined cultural references, and on the understanding of the local customers and demand.

Question 38

Explain the differences between the French, Italian, and US business model

Answer 38

FRENCH: womenswear, luxury, growth through accessories and fragrances, clothing NOT a real business ITALIAN: womenswear, clothing = core business, growth: line extension then brand extension, luxury leisurewear, vertical integration USA: menswear, workwear, sportswear evolution, department stores/retail driven business model, streetwear, accessibility & performance, lifestyle and branding are more important than product itself, licensing & brand extension

Question 39

What is the importance of digital for luxury brands?

Answer 39

Increase The Brand Awareness & Sales, Engage With Consumers Across Multiple Social Platforms, Launching Ecommerce Sites, and Correctly Position Their Brand Online. Digital dramatically increases the opportunity for brands to receive feedback from customers through the tracking of online signals. luxury is by definition exclusive and timeless, based on tradition, whereas digital is accessible, instant and based on relevance There is no single digital strategy for all luxury brands but the main elements are: strong mobile presence, selective approach to social media, focus on carefully chosen metrics and attention to algorithms and data analysis.