FUTURE STRATEGY FOR
LXFM 730- Marketing Strategies for Luxury Brands and Experiences Ardelian, Alexis. Benzo Gramcko, Andrea. Marino, Ana C. Professor: Alessandro Cannata. 1
Pestel Analysis (Foundation)
Size of the Market
Growth Potential and Opportunities
Competitive Advantage and KSF
Future Target Consumer
Goals and Objectives
Unique Selling Proposition
Luxury Ingredients Diamond (Cannata)
Executive Summary, Conclusion 3
HISTORICAL REVIEW Celine’s history starts in France in 1945, when Céline Vipiana and her husband Richard opened the doors of their first boutique. The couple began their business by offering made-to-measure children’s shoes in their Paris boutique. Following their success, it was considered one of the first luxury houses in the industry. Fifteen years later, the brand decided to expand into women’s clothing with a touch of sportswear, and in 1963 Céline presented its first women shoe line. Just three year after that the brand expanded into leather goods and debuted its first leather collection. In 1973, Céline unveiled their logo redesigned, which was composed of the C intertwined in a canvas; it was a logo inspired by the Arc-de-Triomphe, a French symbol. Céline Vipiana remained the creative director of the brand from its conception until 1996 when the conglomerate LVMH acquired the brand for $540 million. LVMH took Céline to the next level in terms of popularity. Following Vipiana’s death, Michael Kors was appointed as the first-ever creative director of the brand. Under his direction, the brand’s awareness grew, and the development of the brand DNA improved. Not long after, the brand appointed Jean-Marc Loubier as
the new CEO. He stated that his mission was to make Celine “a symbol of fashion and Europe’s revival.” When Kors left, two creative directors followed but were not considered as successful as the previous. The first to step up as the head designer was Roberto Menichetti, who remained with the brand for only two seasons. After Menichetti, the Croatian designer Ivana Omazic took the reins of the creative direction. She stayed with the brand for three years, but her time there is considered as disappointing. After struggling to find the right designer for the brand, in 2008 English designer Phoebe Philo was hired to be the new designer lead for the brand. Philo focused on making Celine a well-known women’s designer clothing brand that empowers women. The strategy was to focus on the materials selected and the craftsmanship of the designs. Her tailoring techniques were what ultimately made Celine rise in the luxury market. Under Philo, the brand won prestige and awareness. After ten years with the brand, Philo parted, and Hedi Slimane was appointed the creative director.
The political environment by the decade of Celine’s foundation was quite tense. Paris fell to Nazi Germany on June 14, 1940, one month after the German Wehrmacht stormed into France. France signed an armistice with the Germans. However, General Charles de Gaulle and the Free French kept fighting, and the Resistance sprang up in occupied France to resist Nazi and Vichy rule.
After WWII, economy in France was growing within a span of four to five years. The growth had been successful because of national plans to obtain growth targets and having many developmental strategies.
In 1944 the nationalization of the Bank of Paris was established. From the public sectors, they had brought an employment rate of one-fifth industrial employment. After more than four years of Nazi occupation, Paris State-owned banking contributed to four-fifths to the was liberated by the French 2nd Armored Division and rest of the employment sector. the U.S. 4th Infantry Division. German resistance was light, and General Dietrich von Choltitz, commander of In the result of the economic growth, French lifestyles the German garrison, defied an order by Adolf Hitler to had dramatically changed and increased the standard blow up Paris’ landmarks and burn the city to the ground of living. For instance, there was an increase in families before its liberation. Choltitz signed a formal surrender who could afford their own homes and be able to have a that afternoon, and on August 26, Free French General reduced work week (Elkins and Blondel, 2019). Charles de Gaulle led a joyous liberation to march down the Champs d’Elysees. (History.com Editors. 2018)
SOCIAL Families felt security and comfort in their new found life and became encompassed in installment buying they geared from spending less on stable goods and more on leisure and health. After WWII, Social Security was on an upward trend, and more people were protected from unemployment, dangers of illness and negligence at an old age (Wright and Popkin, 2019). After 1945, women had greater opportunities as well when being employed on a broader range of jobs that were available. Women begin to have equal positions in society which started with women helping during the war. In France, women gained the right to vote and had declarations of equal citizenship in 1945 and 1946 (Purdue, 2016).
TECH In the 1940s the first television commercial was introduced was in color. Two new models were released in the late â€˜40s that were tabletop and console. Consumers went from getting all their entertainment needs from then radio to the television. The war has previously used the TV to show propaganda, so consumers were happy to see the shift to entertainment (INA, 2018). The military needed a fast and flexible vehicle to endure the rugged roads, so the Jeep in 1940 was developed by Karl Pabst. That same year the aerosol spray-can was invented, and Nylon became available to the public (Preceden, n.d). May 16, 1940, is known as nylon day because four million pairs of stockings went to department store shelves and sold out within two days. When World War II began nylon stockings wholly disappeared. They started using it for toothbrush bristles and then began using it in things like parachutes, ropes, hammocks, etc. (Spivack, 2012). John Randall and Harry Boot made a magnetron to use for airplane radar navigation. In 1942 Enrico Fermi Built the first nuclear chain reactor (Woodford, 2019). In 1945 the worldâ€™s first electronic computer that was for general use called Electronic Numerical Integrator Analyzer and Computer (ENIAC) was made. Robert Oppenheimer created the Atomic Bomb in the United States. Direct passenger flights across the Atlantic were available once WWII ended (Buchanan, 2018).
ART & LITERATURE Shortly after Paris is liberated they wanted to remain the haute couture capital of the world. They ensured this by having a miniature theatre of fashion to showcase chic custom-made dresses. These dresses had been in the works during the war by French designers for comfort. In 1944 Lelong with Robert Ricci came up with the idea of bringing back an 18th-century practice of showcasing fashion on dresses dolls. These dolls would be one-third of human size and would include clothes from more than 50 Parisian couture houses. Houses included were Jacques Fath, Jean Patou, Cristobal Balenciaga, and Elsa Schiaparelli. Houses like Chanel has been closed at this time during the war while American born designers were escaping back to the United States. The dolls were wearing extravagant jewelry that was designed by Cartier, Van Cleef and Boucheron. It was a vast Paris initiative that wanted to regain its Fashion dominance. The rejuvenation brought hundreds of jobs that was key to the success of the textile industry. Everything that went on the dolls was intricately crafted to fit and dazzle. There would be electricity cuts and not enough food going on at this time yet they would persevere. The opening day was March 28th in 1945 at the infamous Louvre. It was a huge hit; there were over 100,000 visitors and helped raise money for the war relief. Many women at the time had been used to dressing for comfort during the war but, the show had sparked a line of decadence that was sexy and intricate (Sebba, 2016). Pablo Picasso was a significant influence in the 20thcentury art scene even though he was born in Spain, and he spent most of his artistic side in France. He is known for many genres of painting, but at the time he was exploring with his cubist paintings. Paris stayed avantgarde by movements such as Dada and Surrealism was active there (Higonette and Patrice, 2019). In literature specifically poetry, the use of symbolism became popular through Paul Claudel. Philosophical Existentialism was a popular post-war in France with Jean Paul Sartre as the leader of the movement. The French theatre was also a big role in the literature by the appeal it brought post-war (Mills, n.d) 9
MISSION STATEMENT Celine has not published an official mission statement. Therefore, after doing research on the brand’s identity, values, and philosophy, the mission could be implied as
Luxurious and functional clothes and accessories, with innovative designs, created to empower women in a sophisticated, practical and sensual way.
Slimane. In September, his first runway show had a significant impact on the fashion world. According to LVMH report 2019, Celine’s momentum remained strong, driven by the ongoing success of its leather goods lines.
Celine is considered a powerful brand when it comes to their brand equity. One of its biggest strengths is the public’s awareness of the brand, and not forgetting the loyal customer base the brand has gathered throughout the years.
Philo targeted independent and empowered women The public opinion stated that Slimane work was very who earn their own money and are both practical and similar to Saint Laurent’s aesthetics and it hurt Celine’s elegant. brand identity. However, he generated quite a positive impact on his second debut during Paris Fashion On January 21, 2018, LVMH announced Hedi Slimane Week for the Fall-Winter 2019 collection. A Business as Artistic, Creative and Image Director, set to join the of Fashion’s critic made by Angelo Flaccavento (2019) house on February 1. (Business Wire, 2018.) A new stated that the new Celine girl is modern, and without phase of the brand is on its development with the arrival a doubt very Celine… “as in straight from the archives.”
Another critical strength for Celine is the brand association with its Parisian cultural background. The brand was founded in Paris, France and furthermore the brand was bought by the most important French conglomerate, LVMH, strengthening the association with the French culture. Lastly, the brand has great salience in the leather goods and accessories market and has been portrayed as having a strong ready to wear product category.
It is known that Celine has substantial brand equity and brand density. This has been part of their strategy; to remain exclusive yet, identified by the public. However, based on their current position two weaknesses can be pointed out. Their new change in creative direction brought confusion and distraught to Celine followers.
During her ten years at the house, Pheabe Philo attracted a loyal tribe of affluent women with her unfussy minimalist chic to the tune of $900 million in annual sales, according to a cited report by Business of Fashion (2018)
This brings up the first significant weakness for the brand which is the failure to communicate their vision and mission openly. Additionally, the brand is trying to move into the digital sphere by offering sales through its website and advertisement through social media, but the company is relatively new in the game. This can be perceived as a weakness because of their poor digital marketing strategy. 11
BRAND IDENTITY ANALYSIS THREATS
PRISM ANALYSIS BY KAPFERER
The brand has a lot of room for improvement in the One of the biggest threats for Celine is the counterfeit digital world. of their products. The leather goods and accessories are one of the most copied products in the industry, and While for many years, Celine’s strategy was to remain this brings a problem to the brand. exclusive and, in some ways, unapproachable, the brand has recently created its e-commerce website and social Another threat is the uncertainty that Hedi Slimane media accounts. Being this a recent addition to the projects onto the public. The consumers still don’t know brand, there is an opportunity to grow the brand’s digital where the brand is growing, and this could potentially marketing strategy to bring in more brand awareness hurt brand loyalty and brand sales. and brand loyalty. Lastly, the transition onto their new creative direction Another opportunity for Celine is to introduce brand was very bumpy compared to other luxury brands that collaborations and new brand extensions. recently switched head designers. Other brands have shown to have more smoothly transitions versus Celine which had a very disruptive first collection with their new designer.
BRAND EQUITY ANALYSIS
BRAND STRATEGY ANALYSIS
WHAT IS THE UNIQUE RELEVATION? Celine is for sophisticated, independent and empowered woman, both practical and elegant.
WHAT IS THE BELIEF SYSTEM? Cultivated and sophisticated lifestyle, based on the belief: “Less is more”. Functionality + Aesthetics
WHAT ARE THE BRAND RITUALS?
SALIENCE Celine has high brand awareness among fashion connoisseurs, experts, and trendsetter. Some categories have more salience than others, for example: accessories and handbags.
JUDGEMENTS Celine is perceived as minimalistic and sophisticated providing high-quality products in the categories of women’s rtw, women’s shoes, and accessories. FEELINGS Feeling empowered, unique, and sophisticated.
PERFORMANCE The brand focuses on tailoring practices and material selection. Celine claims they use the best material in the market. IMAGERY Innovative designs projecting a minimalistic image and women empowerment.
RESONANCE Celine’s customers remain loyal to the brand because of their excellent customer service in stores. The brands provides personal shopping services allowing customers to experience in real life the designs. Celine’s relationship with their consumers is one to one.
Shopping in store. Personalized and unique shopping experience paying close attention to details in fabrics and quality with the use of smart glasses and high technology. The shopping experience will be didactic.
WHAT IS THE DISTINCTIVE LEXICON? The Phantom Bag and the brand’s many “it bags” The “Slip dress” The Triomphe: A symbol of the house of Celine since 1971 ALL CAPS: IN THE BRAND’S COMMUNICATIONS #ÉVOLUERmode: Function of changing the colors of the coat, changing colors of the Phantom Bag (Future strategy) 15
MARKET OVERVIEW LUXURY MARKET The luxury landscape is changing. New business models are evolving, and disrupting the luxury goods industry. Tech and Social Media brands and companies are entering in the luxury retailing segment, causing more competition across all distribution channels in the industry. One of the factors that have impacted the luxury market the most is technology. In fact, Itâ€™s the biggest factor in all global markets. AI, mobile channel, personalization, consumer profiles, user and consumer experience are defining the competitive landscape. Moreover, luxury companies are expanding their product lines, creating brand extensions and tapping into other market segments. Consumers are becoming more demanding and sophisticated, due to rising incomes. Younger consumers are seeking luxury products and experiences. Experiences are the key to success when it comes to building loyalty and engaging with consumers. Luxury companies are embracing their fun and creative side. Sustainable models are becoming important and Luxury brands are using technology to change and take sustainable actions.
WEARABLE TECHNOLOGHY MARKET MARKET SEGMENTATION Companies are starting to create innovations with the ultra-smart textiles. These textiles have units or wearable technology. More than aesthetics, Celine also technology that function just as the human brain works, cares about functionality, so there is an opportunity for with reasoning, cognition, and activating capabilities. the brand to explore in this sector. Companies have developed projects using smart textiles, According to a SalesForce Research report, Seventy- For example, Levi’s and Google collaborated to create nine percent of companies that have adopted wearable the Project Jacquard. Together they designed a Jacket technology agree that wearables are or will be strategic that feels like a regular denim jacket but it receives texts to their company’s future success. and calls without using the handheld device, it plays music and it navigates, without having to look at the Wearable tech adopters expect smartwatches (49%) screen. will have the biggest impact on the enterprise, followed by digital badges or lanyards (37%), and smart glasses “Clothing can be considered a second skin and by (36%). The same three technology types are anticipated implementing technology in it, you are bringing it to have the fastest adoption rate (40% say smart watches, into your intimate space.”– Nicky Assmann, influential 26% say smart glasses, and 25% say digital badges or e-textile designer. lanyards). (SalesForce Research, 2018) According to our industry experts, smart garments is the fastest-growing and largest individual category in However, more than just watches, and strapping gadgets the wearable technology market. With fashion designers to our wrists, faces, ears and feet; smart clothing is like Iris Van Herpen adopting smart technology in their stepping up the game with great innovations. Some smart fabrics for aesthetic and functional purposes, it is only clothes or fabrics can track our heart rate, monitor our a matter of time that many more will follow suit and emotions and even pay for your morning coffee without create a fabric segment specifically dedicated to smart touching our phone or smartwatch. (Sawh, 2018) textiles. (Technavio, 2018)
In a MFRF’s report, the global Wearable Technology is segmented into sensor technologies, networking Market is segmented on the basis of product, technology, technologies, display technologies and computer components and application. technologies. Based on product, it is segmented into implants, wearable cameras, smart clothing, neckwear (smart jewellery), headwear and eyewear (augmented reality and virtual reality) and wristwear (fitness trackers and smart watch). Of these, the wristwear products have the maximum market share while the smart clothing is likely to see a substantial increase. Based on technology, the wearable technology market
Based on components, it is segmented into connectivity, sensing, battery, memory and control. Based on application, the wearable technology market is segmented into industrial and enterprise applications, defense, healthcare, consumer electronics and fitness and wellness. Of these, the fitness and wellness segment and also the healthcare sector has a positive growth in the market.
Some of the latest innovations in the industry are
KEY PLAYERS The prominent players in the Wearable technology market are Adidas AG (Germany), Xiaomi Inc. (China), Apple Inc. (U.S.), Google Inc. (U.S.), Garmin Ltd. (U.S.), Fitbit (U.S.), Jawbone (U.S.), Samsung Electronics Co., Ltd. (South Korea), Sony Corporation (Japan), Qualcomm Technologies, Inc. (U.S.), Nike, Inc. (U.S.), Lifesense Group (The Netherlands), Misfit, Inc. (U.S.) among others.
MARKET SIZE LUXURY MARKET The luxury market is a significant economic force and a substantial driver of GDP and competitive advantage. Accessories are leading growth in personal luxury.
worth approximately 217.49 billion U.S. dollars. Revenue in the Luxury Eyewear segment in the United States amounts to US$8,495m in 2019. The market is expected to grow annually by 1%
By 2024, personal and experiential luxury alone are estimated to be a â‚Ź1,126 billion market. Revenue in the Luxury Apparel segment amounts to US$18,751m in 2019. The market is expected to grow In 2016, the global market value of leather goods was annually by 0.1%
WEARABLE TECHNOLOGHY MARKET People want to track their day to day activities, and there is a strong need for connectivity and technology. Consumers are seeking products that help improve their lives. Aesthetics are important, but functionality is becoming more significant when it comes to purchasing decisions. This has boosted the growth of the wearable technology market which is predicted to grow at USD 50 Billion at 16% CAGR during the assessment period (2016-2022). (Market Research Future, 2019)
The growing popularity of broadband connectivity, computing, mobile applications, mobile networks and smart phones are contributing towards the growth of the wearable technology market. Apart from this, some of the market trends and factors in this market as per an analysis conducted by Market Research Future (MRFR) include niche markets, low barriers, fewer competitors and no standard device type. However, data security issues, limited battery life, durability and high price of devices are likely to hinder the growth of the wearable technology market over the forecast period.
GROWTH POTENTIAL AND OPPORTUNITIES Millennials and Generation Z are currently driving up luxury sales growth. The shoppers are looking for a more personalized shopping experience that can be online or in store. Augmented Reality and Artificial Intelligence have also had a significant demand in the connective technology industry. Luxury brands can use AI and AR technologies to provide the consumer with the personalized consumer experience, build stronger customer relationships, deepen product experience and reach a wider audience. There has also been developing technologies such as the Internet of Things (IoT) and voice commerce that is reforming the luxury goods industry. Luxury brands want to improve engagement with consumers with AI (Artificial intelligence) recommendations. Consumers are becoming reliant on advice and suggestions by various devices using Artificial Intelligence than relying on personal experience based decisions. Luxury brands are also using Augmented Reality in their physical stores to enhance the customers shopping experience. Consumers can see and try the products at home before
making their purchase with this technology (Arienti, 2018). Artificial Intelligence assists with wearable technology in sports and wellness. It can track and analyze various variables in your everyday life and even be a personal assistant (Lazarevich, 2018). A company names Vuzix made an augmented reality smart glasses that has a screen that floats on the upper right corner of vision. The company also partnered with Amazonâ€™s Alexa for integration in the smart glasses. Their primary goal was to make it aesthetically better looking than most smart glasses (Statt, 2018), which leads up to an opportunity in wearable technology which is design. Today the current market for this technology is not so couture, and we see this as an opportunity to collaborate with designers and wearable technology industry leaders to create a look that blends in and looks timeless to be on brand. Many critiques have been made about wearable technology; for instance, Nubia came out with an Alpha watch phone recently that many people have called â€œAlpha uglyâ€? (Wong, 2019).
COMPETITIVE LANDSCAPE Since Celine is strong in the leather goods sector and luxury apparel we wanted to include major players in the industries. Our competitive landscape in the luxury leather goods market includes players like Michael Kors, Coach, LVMH, Kering, Hermes, Tumi Holdings, Burberry and PVH. In the luxury apparel market, the top players are PVH, Ralph Lauren, LVMH, Puig, Tory Burch, Sanyo Shok, Burberry, and Max Mara. Louis Vuitton is known for its leather goods. They recently partnered with (RCGD) Red Carpet Green Dress initiative to design socially and environmentally reasonable dresses for the Oscars carpet. Louis Vuitton made a dress for Laura Herrier’s first red carpet look, the dress has minimal impact on the environment and is made from sustainable materials. Chloe is another one of our competitors who is known for
their effortless feminine and romantic clothing. In 2017 the brand appointed the new creative director, Natacha Ramsay-Levi. Then there is Stella McCartney who is known for being a sustainable brand and does not use any leather or fur in her designs. The brand is very innovative when it comes to being and sustainable and environmentally conscious brand. They recently partnered with Bolt Threads to change the future of silk with just yeast, sugar, and spider DNA (“Silk”, n.d). Which leads us to Balenciaga, they are Kerring’s fastest growing brand. They are bold in the shoe department and are becoming increasingly edgy and innovative. They are going to come out with a track sneaker that will have a USB Port and LED lights (Gorsler, 2018). Bottega Veneta is known for its craftsmanship and leather goods. Their creative director Daniel Lee has recently rebooted the brand after previously working
at Celine. Saint Laurent is also known for its bold and innovative designs. They are sleek and modern and make roughly three times the amount it made five years ago. They are the second largest player in the luxury portfolio of the Kering group. Gucci has recently been profitable under designer Alessandro Michele. They are currently focusing on their digital strategy by using facebook chatbots. In 2015 they released a smartwatch in collaboration with Will. I. am that was considered a failure. Gucci did not have the right brand associations at the time which is why it was not a success. Our next competitor, Prada, has a cutting edge style that is focused on experimentation. They are known for their leather handbags, travel accessories, shoes, ready-towear collections as well as other fashion accessories. Their most considerable net income is generated from the sale of leather goods. Lastly, Hermes is known for their leather goods and craftsmanship. They have moved into wearable technology when partnering with Apple. They produce the bands that go with the Apple watch and each retail at $1,500+, and it was considered a significant success (NG,2015).
COMPETITIVE ADVANTAGE & KSF CORE COMPETENCIES & COMPETITIVE ADVANTAGE
Celine’s core competencies and competitive advantage is that they are LVMH owned and are established. They have a history and culture that consumers are aware of and treasure. The brand also has great brand loyalty and identity. Celine is a French company that is known for its leather goods and accessories.
KEY SUCCESS FACTORS
Celine’s key success factors are their brand awareness and brand density. The brand is well known, but to buy it you need to put in the effort to find it. They also pay close attention to the fabrics due to the “Philo” era, she put a high emphasis on the quality of the materials and the craftsmanship put into the items. Lastly for key success factors, is how viral the Phantom bag went. We believe this put Celine on the map and gained recognition from fashion connoisseurs.
FUTURE TRENDS A future trend we see coming into play is 3D Printing is fashion. Today the technology is limited to producing things like jewelry and shoe soles. It is a challenging process to 3D print a garment and can only be done in a mesh. 3D Printing can just print non-flexible parts, but designers and engineers are looking to overcome this problem. 3D Printing technology could reshape how we design our clothes and have an opportunity in mass customization (Greguric, 2019). Another future trend that is coming into play is self-cleaning textiles; right now there is a company working on nanostructures that can deteriorate organic matter when exposed to light in textiles. Since textiles already have a 3D formation, they are good at absorbing light which could accelerate the disintegration of organic matter (RMIT, 2016).
Humavox is another company that is coming into the e-textiles trend as a wireless power technology. They can put integrate their technology in any garment for smart clothing oriented towards fitness and health care (Humavox, n.d). We see gender-neutral fashion up in the works as well, ASOS had released its first unisex collection in 2018 that included staple goods that was a smashing success. Designers are looking to evolve into beyond staple goods for gender-neutral clothing (Alnuweiri, 2018). As fast fashion is becoming increasingly relevant seasonal fashion is dying down.
Brands have been releasing collections or individual pieces whenever they think the timing is right. Some brands do not want to become irrelevant, so they try to keep up with fast fashion retailers and create microAnother trend that is coming into play is e-textiles such seasons (Dool, 2018). Lastly, people are becoming more as ChroMorphous which is a user-controlled color mobile than ever, and we do believe that this trend will changing electronic textile. The consumer can operate not go away in terms of e-commerce. the garment or accessory through an app on their phone to change color and pattern (ChroMorphous, n.d).
FUTURE TARGET CONSUMER Celine’s target consumer for the next 35 years will shift from Millennials to Gen Z and then to the Alpha Generation. These last two generations that will become Celine prospect consumers were and will be born in a world of technologies; they are being considered digital natives. These people will not know a world without the internet and technology, meaning that technologies like artificial intelligence form part of their routines. The primary consumer will be located in Europe and North America, while indirectly targeting the emerging markets such as China and Latin America. The brand will be targeting affluent women with an age
range from the early 20s to early 40s that are located primarily in Europe and North America. These women are very tech savvy and are always on their phones. They are business leaders and entrepreneurs that live a fast-paced life. While in their day-to-day they are busy bees, they manage to stay active practicing activities like yoga. The healthy lifestyle has been influenced by their Millennial parents and overall environment while growing up. Because they are mobile natives, these women shop regularly through their smartphones. Their shopping behaviors are affected by Influencers and YouTubers recommendations, and instant gratification is important to them.
The Working Mother Name: Carin Olsson Age: 40 - Generation Z Occupation: Financial Director Location: Europe Salary: € 380,000 Marital Status: Divorced. Kids: 1 Interests: Traveling with her kid, and occasional coffee/tea dates with friends. Carin also enjoys
culinary experiences such as wine tasting and
trying out top restaurants in the city.
Causes: Human rights, children, sustainability.
Technology Use: She is very tech savvy, browses
the web often and is constantly on her phone. She can’t live without her smart watch.
Busy Bee Luxury Explorer Attitude vs Luxury Understated
The Entrepreneur Name: Christine Andrew
Age: 23 - Generation Alpha
● Born between 1997 and 2009.
Occupation: Family Business / Influencer
● Salary: € 300,000+
Location: North America
● Well educated - has a master’s degree.
● Working women in business and finance.
Marital Status: Single.
Interests: Loves traveling, shopping, and is experience driven. She loves yoga and enjoys outdoor activities, Income
● Born between 2010 and 2025
● Salary: $180,000+
● Well educated.
● Entrepreneur and business leader.
Wealth Time Connoisseurship Luxury Native Attitude vs Luxury Superstar
like going to the beach and walking in parks. Causes: Sustainability is an important matter for her. She volunteers at local events for environmental causes. Technology Use: mobile obsessed - she is on the phone 90% of her time and prefers mobile shopping. She owns a Google Home..
GOALS & OBJECTIVES
The product we will release in the last phase of the strategy will include custom features so that it why at the first stage we will build brand associations with customizable products.
Our goal is to position Celine in the luxury fashion market as a pioneer in wearable technology.
OBJECTIVES • • • •
Nurture brand associations with aesthetical and functional values. Build progressively new associations with customization and technology Introduce shoppable wearable technology to the brand’s product assortment Release a high technology product that merges aesthetics and functionality.
STRATEGY In order to introduce wearable technology products with customizable features, the strategy will begin by building the right associations with a customization event where consumers will be able to create their Phantom bag using AR technology. Moreover, we will reinforce those associations with tech with a not-for-sale wearable technology in the brand’s fashion shows.
STRATEGY OVERVIEW 2023. Phantom Handbag customization event in Paris. We want to introduce Celine’s use of technology at an early stage by having a customization event in Paris. Customers will be able to use AR technology to customize their own handbag and be able to send it to their home. Although the handbag itself will not have any technology in it, the AR glasses will provide an association to Celine in the beginnings steps of using wearable technology. 2025. AR glasses Fashion Show. We want to our typical Celine consumer to start associating wearable technology with our brand. We decided to use AR glasses at our fashion show because it will give our consumer a taste of what it feels like to use our technology coming from a our creative direction. We want to our consumers to associate fashion with wearable technology that is why our show will use the Augmented Reality Glasses. 33
2030. The launch of Smart Sunglasses in partnership with Google. Celine will be in charge of the aesthetic of the sunglasses and the overall design, while Google will be providing the tech expertise and the software. This is where we start getting our consumers to actually buy and use our AR Google Glasses/ Celine collaboration. Since we have exposed the connoisseurs to the technology we believe at this point we have built a brand association with Celine and technology. 2035. Celine will be launching a coat with smart fabrics that will be able to change colors electronically through a smartphone application. Additionally, the coat will have AI sensors embedded within the fabric that will enhance the functionality of the coat.
LUXURY INGREDIENTS DIAMOND BY PROF. CANNATA.
2040. Celine will have an event at the Louvre Museum in Paris showcasing “Celine through the ages” : Having Celine’s earliest collection up until the current products which feature the wearable tech garments. Which will showcase how even though it has the latest technology, it still looks like what Celine has always been about which is timeless fashion. Because true luxury defies time.
UNIQUE SELLING PROPOSITION We are offering wearable technology with a timeless look that does not interfere with your day-to-day aesthetic.
PURPOSE To provide the very chic but minimalistic woman on the go with the highest technological garments and accessories, to help with her busy lifestyle without sacrificing her day-to-day aesthetic.
CUSTOMIZABLE HANDBAG (When Celine created Celine women were not independent yet, and she wanted to become her self and break free from societal norms.)
The customization event will provide loyal customers of Celine with the opportunity to select from a range of 9 possible color combinations for their Phantom Handbag. The purpose behind this event is to create a brand association with customization product services and the use of technology. The experience will integrate technology, with the use of AR to customize the handbag. The customization is key to later intruduce following products such as the Customizable SmartCoat #ÉVOLUER
CELINE X GOOGLE SMART SUNGLASSES After carefully building the right brand associations. Celine will be collaborating with Google to create fashionable smart sunglasses. Celine will be in charge in the design aesthetic of the glasses, while Google will be providing their expertise in software development. The sunglasses will function as hands-free smartphone with the ability to use it as a camera, gps, and connected to phone applications. Moreover, the glasses will have a Celine function: “Celine recommends”. A new function for the glasses that based on the collection, the weather of the day, the city the consumer is, and her daily activities, it will recommend an outfit for the day. It will also suggest places to eat and how to manage her time throughout her day properly
SMART CUSTOMIZABLE COAT- #ÉVOLUER This coat will serve as an upgrade of the smart sunglasses offering similar functions like syncing it with a smartphone to utilice selective applications: GPS, Navigation, Notifications. The differentiator factor will be that the coat will be constructed with smart fabrics that will have the ability to change colors electronically
through a phone app: three coats in one. In order to promote the color feature we will name the action of swaping colors to ÉVOLUERmode. The idea is to make the brand own than specific lexicon.
The pricing will be set as “Extra Pricing.” It aligns with the already established Celine’s pricing strategy. However, the prices will be set above average because the products are introduced with added values-customization and technology, which are in synch with the aesthetical and functional values. The pricing strategy aims to cause the Veblen effect, in terms of elasticity. CUSTOM PHATOM BAG: €2,500 CELINE X GOOGLE SMART SUNGLASSES: €3,000 SMART CUSTOMIZABLE COAT: €20,00
PLACEMENT The customizable pop-up will be a one-time event and will take place at their Paris Flagship store. The AR Fashion show will take place in Paris as Celine always presents their collection in such city. The Celine x Google sunglasses will only available at celine boutiques. The product will not be offered online or at wholesales to remain exclusive. The smart customizable coat will be available only in stores including wholesale. Just like the sunglasses, the coat will not be offered at the e-commerce website to maintain the brand’s exclusiveness.
AR FASHION SHOW Celine will be introducing wearable technology for the first time in the year 2025 at their fashion week show.
For our promotion strategy we will be using the connoisseur brand archetypes. We will use several mediums such as email campaigns, social media, and events to promote our products but not forgetting to showcase our uniqueness, excellence, and artistic expression through our advertisements.
The attendees will be able to wear glasses with augmented reality technology that will enhance their experience. Through the glasses they will be able to take photos and also see in real-time the prices of the looks. Additionally, the attendees will be able to save and pre-order their favorites pieces at the end of the show.
EMAIL Email marketing to invite current Celine customers to the customization pop-up shop. It will also be use to announce product launches. Invitation of socialites and celebrities to product launches SOCIAL MEDIA: Celine launched their Instagram account in September of 2018.Their purpose is not to sell directly but to inspire and promote their products. The strategy will use sponsor advertisement carefully segmented to the desired target consumer.
EVENTS The brand will host different events in order to nurture those associations with technological, aesthetical and functionality values.
EVENT AT THE LOUVRE The event at the Louvre Museum in Paris will showcase “Celine through the ages.” It will stage Celine’s earliest collection up until the current products which feature the wearable tech garments. The exhibition will highlight how even though the garments have the latest technology, they still look like what Celine has always been about, which is timeless fashion, and Parisien, modern, sleek designs. The concept of the event will be true luxury defies time. This event can connect connoisseurs with true artistry and craftsmanship behind all of Celine’s garments. We want to nurture previous associations by the aesthetic and value purposes. We want to stick to Celine’s strong French culture and what better way to do that than through the Louvre. The only way to attend the event, physically and online is if you own the smartglasses. Smartglasses owners will be able to attend online to the exhibition.
PEOPLE INSIDE THE ORGANIZATION • Hedi Slimane and french cultiure reinforced e in the brand. • Authentic cultural value: The brand is French • Celine carefuly selects materials used and focused on craftsmanship. • The brand will pay attention to detail on the development of high technology products. OUTSIDE THE ORGANIZATION • Authentic and connoisseur clientele • The client buys Celine “For oneself” becuase it is seeking enjoyment. The Celine audience buys becaus of the perfectionism effect.
EXECUTIVE SUMMARY, CONCLUSION In the next 35 years, Celine will aim to position itself as a pioneer in the luxury wearable technology market. In order to achieve that goal, the brand needs to introduce the proper associations carefully, so the launch of the products are successful. The brand is strongly associated with its French culture and the LVMH family. Throughout the years, customization in the products and wearable technology will be introduced. For Celine, diving into the future of technology is a positive venture based on the projection of the market value and the future consumer. The value of the wearable technology market is expected to reach US$50 billion by 2022. Given the market projection, this willww be a positive move not only because of the financial potential, but because there is a gap in the market for design in wearable technology. Secondly, our target consumer, Gen Z and Gen Alpha, are considered technology natives. Which means that for them Artificial Intelligence will form part of their daily lives. This consumer will not only be looking for functionality benefits but also aesthetic benefits as well. It is why we have concluded that Celineâ€™s goal of introducing carefully crafted wearable technology is the right move to generate revenue, create new and positive brand associations, to attract the Generation Z and Generation Alpha consumers. 44
SOURCES “15 Statistics You Need To Know About Generation Z Consumers.” Benbria Loop, 12 July 2018, www. benbria.com/15-statistics-you-need-to-knowabout-generation-z-consumers/.
Gorsler, Fabian. “Balenciaga FW18 Track Sneaker: A Closer Look.” Highsnobiety, Highsnobiety, 3 July 2018, www.highsnobiety.com/p/balenciagahiking-sneaker-fw18-release-price/.
Alnuweiri, Tamim. “Fashion’s Embracing a Gender Fluid Future with Unisex Collections.” Well Good, Well Good, 8 Nov. 2018, www. wellandgood.com/good-looks/gender-neutralfashion/.
Greguric, Leo. “3D Printed Fashion – The State of the Art in 2019.” All3DP, 11 Jan. 2019, all3dp. com/2/3d-printed-fashion-the-state-of-the-artin-2019/.
Higonnet, Patrice Louis-René, and J.H. Shennan. Arienti, Patrizia. “Global Powers of Luxury Goods “France.” Encyclopædia Britannica, Encyclopædia 2018 Shaping the Future of the Luxury Industry.” Britannica, Inc., 30 Jan. 2019, www.britannica. Deloitte, 2018, www2.deloitte.com/content/dam/ com/place/France/The-fine-arts. Deloitte/global/Documents/Consumer-Business/ “Ina - National Audiovisual Institute - 70 Years of cb-global-powers-luxury-goods-2018.pdf. Television.” Institut-National-Audiovisuel.fr, Ina, institut.ina.fr/en/collections/70-years-of“A New Fabric Experience.” ChroMorphous, www. 2018, television. chromorphous.com/. Buchanan, Robert Angus. “History of Technology.” Encyclopædia Britannica, Encyclopædia Britannica, Inc., 5 Jan. 2018, www.britannica. com/technology/history-of-technology/The-20thcentury.
Lazarevich, Katherine. “How AI Takes Wearables to the Next Level.” IoT For All, IoT For All, 3 Aug. 2018, www.iotforall.com/benefits-ai-in-wearables/. Mills, Ian C., and Wharton Group. French Colonies - Algeria, www.discoverfrance.net/ France/Literature/DF_literature6.shtml.
Dool, Steve. “As Fashion Moves Towards a Seasonless Model, Has ‘Seasonal Inspiration’ Become Obsolete?” Fashionista, Fashionista, 8 Netzer, Jaime. “5 Stats on Generation Z Buying Mar. 2018, fashionista.com/2018/03/fashion-week- Habits Marketers Need.” Spredfast, www. spredfast.com/social-marketing-blog/5-statsseasonal-inspiration. generation-z-buying-habits-marketers-need. Editore, Mame. “CÉLINE.” Mame Fashion Dictionary, 17 Jan. 2018, fashion.mam-e.it/celine/. NG, Gary. “How Apple Partnered with Hermès for Apple Watch According to Jony Ive.” IPhone in Elkins, Thomas, and Jean. Blondel. “France.” Canada Blog, 11 Sept. 2015, www.iphoneincanada. Encyclopædia Britannica, Encyclopædia ca/watch/apple-partner-hermes/. Britannica, Inc., 16 Jan. 2019, www.britannica. Purdue, A W. “The Transformative Impact of com/place/France/Economy. World War II World War II.” EGO | Europäische “Generation Alpha: The Children of the Geschichte Online, 18 Apr. 2016, ieg-ego.eu/en/ Millennial.” Interesting Engineering, 24 Dec. 2018, threads/alliances-and-wars/war-as-an-agent-ofinterestingengineering.com/generation-alpha- transfer/a-w-purdue-the-transformative-impactof-world-war-ii. the-children-of-the-millennial. 46
RMIT University. “No More Washing: NanoEnhanced Textiles Clean Themselves with Light.” Phys.org - News and Articles on Science and Technology, Phys.org, 22 Mar. 2016, phys.org/ news/2016-03-nano-enhanced-textiles.html.
Wong, Raymond. “Nubia’s Alpha Watch Phone Is the Most Ridiculous Gadget at MWC 2019.” Mashable, Mashable, 26 Feb. 2019, mashable.com/ article/nubia-alpha-watch-phone-ridiculousmwc-2019/#pAuiUCOQoaqI.
Sebba, Anne. “How Haute Couture Rescued War Torn Paris .” The Telegraph, Telegraph Media Group, 29 June 2016, www.telegraph.co.uk/ fashion/events/how-haute-couture-rescued-wartorn-paris/.
Woodford, Chris. “History of Invention: A Science and Technology Timeline.” Technology Timeline, 13 Jan. 2019, www.explainthatstuff.com/timeline. html.
Wright, Gordon, and Jeremy Popkin. “France.” “Silk.” Stella McCartney, www.stellamccartney. Encyclopædia Britannica, Encyclopædia com/experience/en/sustainability/materials-and- Britannica, Inc., 16 Jan. 2019, www.britannica. innovation/silk/. com/place/France/Society-sincwe-1940. Spivack, Emily. “Stocking Series, Part 1: Wartime Rationing and Nylon Riots.” Smithsonian.com, Smithsonian Institution, 4 Sept. 2012, www. smithsonianmag.com/arts-culture/stockingseries-part-1-wartime-rationing-and-nylonriots-25391066/. Statt, Nick. “These AR Glasses Solve Some of Google Glass’s Biggest Problems.” The Verge, The Verge, 9 Jan. 2018, www.theverge. com/2018/1/9/16869174/vuzix-blade-ar-glassesaugmented-reality-amazon-alexa-ai-ces-2018. “Technology from 1940-1980.” Spanish Armada Timeline | Preceden, Preceden, www.preceden. com/timelines/70998-technology-from-1940-1980. “Wireless Charging for Smart Clothing.” Humavox, www.humavox.com/smt_product/ wireless-charging-for-smart-clothing/. “What Will Generation Alpha’s Trends Be?” SmartBrief, 31 Oct. 2016, www.smartbrief.com/ original/2016/10/what-will-generation-alpha’strends-be.
LXFM 730- Marketing Strategies for Luxury Brands and Experiences Ardelian, Alexis. Benzo Gramcko, Andrea. Marino, Ana C. Professor: Alessandro Cannata.
For our Marketing Strategies class, we needed to create a 35-year projection of where Celine will be. For our strategy, we needed to incorpo...
Published on Mar 15, 2019
For our Marketing Strategies class, we needed to create a 35-year projection of where Celine will be. For our strategy, we needed to incorpo...