Branding Research Project Clara Casas Bonilla & Andrea Urquijo Canal BA Fashion Marketing & Communication Level 6, 2018 6FAMK002C International Branding & Sustainability CWK1 Alejandro Gonzalez, Clara Mallart
figure 1.Stella McCartney S18 Campaign (L.Raalte, 2018)
index Research 1.1 introduction 1.2 literature review 1.3 the brand Analysis 2.1 brand elements 2.2 market & environment Strategy 3.1 strategy in media (offline & online) 3.2 strategy in POS Rerences
"We are committed to being a responsible, honest and modern company. We know that we are not perfect. We will continue to consider the impact we have on the planet as we design clothing, open stores and manufacture our products. We will probably never be perfect, but you can rest assured that we are always trying."
1.1
introduction Stella McCartney is a brand that stands by luxury lifest yle, as well as totally linked to an ethical commitment with the resources used and the impact the firm can have in the planet. In the times we are living in, this sustainable movement is of great importance. Buying decisions are needed to be taken into consideration, as it is extremely relevant in today’s world. Stella McCartney has been chosen in order to study in depth this subject and the brand, which is performing highly great in this complex topic. In order to support the sustainable luxury fashion, it has been decided to dig intro the pillars of this British firm.
figure 2.Stella McCartney Website Campaign (Unknown, 2018)
figure 3.Stella McCartney Website Campaign (Unknown, 2018)
1.2
literature review In this paper, critical analysis of ethical aspects and the outcomes on Stella McCartney’s business model will be undertaken. The aim of this project is to generate a strategy for a well established brand, creating brand awareness and social responsibilit y. In addition, this project aims to develop a strategy by using ethical and sustainable models. Marketing models such as PESTLE and SWOT analysis have been used to analyze the brand in order to illustrate the most important aspects of the company. A study of this year’s most relevant sustainabilit y trends has been used to make a comparison with the brand’s actual sustainabilit y methods, thus to create a new strategy for both point of sale and offline and online communication. In addition, the document “Modern Slavery Statement” was published last year by the brand. By having read and analyzed this document, the brand’s supply chain, the flow of key raw materials and key manufacturing locations, the brand policies, and the modern slavery due diligence have been understood. Furthermore it has been studied the different relations that markets such as the Chinese or The Emirates has regarding sustainabilit y in order to understand the strategy Stella should be following there.
1.3
the brand
Stella McCartney was created under the founder’s name, partnering with the Kering Group in 2001. Their first main approach was to offer an ethical and valuable brand that proved that sustainable fashion can be maintainable. The brand offers a wide range of relevant collections; women and menswear ready-to-wear, in addition to handbags, eye-wear, shoes and kids collections. On of their most characteristic aspects of the brand linked with the main purpose, being ethical and sustainable, is the non-use of leather, feathers or fur. Furthermore, the brand is committed to the promotion of good labour standards and the total protection of human rights in every single aspect of their business. One of the strongest characteristics of the band's DNA is their solid brand values.“The brand is committed to ethical values, and believes the company is responsible for the resources it uses and the impact it has on the people, animals and the planet” (McCartney, 2017, p3). There are various key aspects represented in the brand’s values in need to be mentioned; governance, stakeholder engagement, supply chain mapping, human rights, modern slavery risks assessment and supplier audits. Stella promotes many of their actions towards sustainability and transparency throughout their website and articles published by them. They have diverse sections, which are their three main values and what the brand stands for. - Respect for Animals - Respect for People - Respect for Nature In addition, there is another concept that needs to be emphasized, that is the circular reality, which can be defined as the system they rely on, by working in a linear way working this manner
figure 4.Stella McCartney S18 Campaign (L.Raalte, 2018)
helps the brand to eliminate the typical concept of waist and making fashion more circular. “As we continue to push boundaries and challenge the status quo we want to evolve from just reducing our impact to making a positive impact. We want to completely reimagine the fashion industry as we know it and move to a new circular economy� (McCartney, 2017). With the purpose of communicating this new circular fashion and economy concept in a larger scale, they are participating in several initiatives with The Ellen McArthur Foundation, Cradle to Cradle Products Innovation Institute, The RealReal and Clevercare. In addition, circular materials are being used, which are separated in two categories; the Technical, which are the ones manufactured by humans and can be reused (such as polyester and nylon) and Biological, which are materials coming from renewable sources and nature and are 100% decomposable.
figure 5.Stella McCartney Website Campaign (Unknown, 2018)
figure 6.Stella McCartney Website Campaign (Unknown, 2018)
2.1
brand elements
brand positioning
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SWOT
Strengths
• Strong brand recognition: ethical and fashionable. • Sustainable methodology and production. • Cruelty-free and eco-fashion.
Weaknesses
• The brand is still not 100% sustainable. • It is difficult to position a brand as sustainable yet luxurious.
Opportunities
• The menswear collection will help brand expansion. • Creating their own materials under the brand name.
Threats
• Copies of her designs. • Collaborations with fast fashion companies could damage her sustainable reputation as they are seen as the opposite of sustainable.
figure 7.Stella McCartney Website Campaign (Unknown, 2018)
figure 8.Stella McCartney Website Campaign (Unknown, 2018)
PESTLE Political
If luxury items trading taxes rise, the brand will be affected, as many people from countries with higher taxes (such as China), travel to other countries to buy products from brands such as Stella McCartney, and this contributes to a very high percentage of the brand’s profits.
Economic
The rise of labour cost could also affect the brand, as they would have to spend more money on their worker’s salaries. Despite this, it is thought that Stella McCartney would not be as negatively affected by this, because one of their values is to support the improvement of working conditions.
Sociological
The designer is very supportive of feminism, which is being affected on the rise of this controversial topic. Nowadays, people are becoming more aware of feminism and McCartney is a huge supporter of this issue.
Technology
Technology is also part of the brand. In the brand’s collaboration with Adidas, sports performance technology was used.
Legal
Copyright issues are a huge concern to Stella McCartney. Cheaper copies of the brand’s bags and shoes are constantly made and sold, which devaluate the original products.
Environmental
Consumers are becoming more aware of environmental issues every day, and are willing to spend more money on products from sustainable and ethical brands such as Stella McCartney.
target market Stella McCartney’s consumers are fashion-forward, refined men and women aged between 25-50. They are normally willing to spend a higher amount of money for sustainable and eco-friendly products. They are able to afford higher-quality products due to their higher income. They are not only fashion aware but environmentally conscious and are deeply interested in making the right choices. The brand is built around certain sustainable values, such as not using animal products in her designs. This has created a very strong brand identity and relationship with the consumers, as they are very loyal to the brand because they value their ethics, sustainability and high quality products. Stella McCartney consumer is feminine and loves self-expression through fashion and style. This target matches perfectly with the brand, as the products have a modern aesthetic and are fashion-forward, never loosing their sustainable values. Buying behavior: They They They They
are active high class consumers. shop impulsively, they usually purchase what can fit within their budget. purchase products and designs which fit their lifestyle. take into account good values when shopping.
Brand Values
Target Interests
Goodness Quality Authenticity Truth
Sustainability
Caring
Stella McCartney
Beauty
Consciousness
Eco-friendly
figure 9.Stella McCartney x Adidas Campaign (Unknown, 2018)
storytelling Stella McCartney was brought up as a vegetarian. Her parents, Paul and Linda McStella McCartney was brought up as a vegetarian. Her parents, Paul and Linda McCartney raised her with specific moral beliefs, which were used to build her brand. Her knowledge has been reflected in her brand and designs, making fur free products and banning leather and animal skins from her collections. (Cox, 2015) Sustainability is the core value of the brand, which is changing the world for the better. The brand believes that transparency is a key aspect to having a more sustainable brand. The brand transmits their imperfection and flaws regarding this complex topic, which contributes in developing a trustworthy consumer base. In 2001, she joined the Kering Group to develop her own luxury brand. That same year, in October, she showed her first women’s ready-to-wear collection in Paris. This event is marked as the birth of the brand. At first, her approach was not understood by the fashion industry, as her business model was not well received. It was stated that her business was merely based on her personal values that she had grown up with. (Amed, 2015). As the majority of fashion luxury companies earn their profits through the selling of accessories, and these are mostly made of leather, McCartney found it hard to make money only from the sale of ready-to-wear items. Since then, her brand has significantly grown. In 2003, her first perfume, Stella, was launched. What helped the business to grow was the collaboration opportunities the brand had. In September 2004, she formed a partnership with Adidas, designing her own sustainable sportswear for all kinds of different sporting activities. In 2012, she was asked to design the official uniform for GB Olympic team, making her the first luxury designer to create the uniform for the Olympics. She has also teamed up with H&M to create a 40-piece collection that sold almost immediately.
figure 10.Stella McCartney S18 (Raalte, 2018)
McCartney had the opportunity to have a big impact on sustainability by partnering with this large corporations. Nowadays, the brand has 51 stores worldwide and ships to over 100 countries meaning the brand is becoming globally known and more consumers are able to access her products.
figure 11.Stella McCartney S18 (Raalte, 2018)
sustainability commitments Build sustainable supply chains Sustainable raw materials. Recycled materials. Ensure that the brand is not contributing to the destruction of endangered forests. Eliminate animal products Don’t use fur, animal skins, leather or feathers. No animal-based adhesives. Only use cruelty-free wool. Never test products on animals. Reduce toxic chemical use Certified organic cotton and other fibers when possible. Ensure that no chemicals are used in the production of garments.
Preserve and protect water Responsible water management and pollution in the fabrics. Waterless dying technologies.
Minimize greenhouse gas emissions Renewable energy. Reduce carbon impact during production.
Educate consumers about garment care Life-lasting products. Educate consumers on how to reduce their impact while cleaning their products.
Stella McCartney wants to make a change by making an impact in the fashion industry. The brand’s main aim is to make consumers aware on this big issue and create a positive impact on the environment.
figure 12.Stella McCartney S18 (Raalte, 2018)
figure 13.Stella McCartney S18 (Raalte, 2018)
2.2
market & environment
figure 14.Stella McCartney S18 (Raalte, 2018)
Stella McCartney is a worldwide established brand. This has its positive as well as negative aspects in terms of market analysis. The brand’s collections are available in over 100 countries worldwide and they have a presence in 51 cities such as; Los Angeles, London, Hong Kong, Tokyo, Milano, Dubai and Shanghai. The latest shops opened in Paris, Florence and New York. In one hand, despite being all around the world, its most relevant markets are UK and USA. The reason behind this is that this countries are the most sustainably conscious, giving a great importance to the subject. The individuals living in these countries would rather choose a sustainable brand than a non-sustainable brand. On the other hand, some Eastern countries where the brand is located; such as China, purchase in Stella McCartney in consequence of the status it brings. In addition, they also purchase the brand because its position. Sustainability in this countries is not the main cause of purchase. “The majority of Chinese fashion people are not talking about it or they’re not at all interested in sustainability. Collectively, our fashion industry isn’t doing nearly enough and the fashion media isn’t doing anything about it either. So, naturally the fashion consumer is going to be left uneducated and unaware about our industry’s unique sustainability issues,” (Casey Hall et al. Shaway Yeh, 2018) Furthermore, the impact the brand has in being environmentally friendly plays another role in the Emirates. The consciousness regarding the topic has increased in the last years and Stella McCartney is in the third on the list of the most consumed sustainable fashion brands of the country. Despite this difference in consumers, Stella does not change its website communication depending on the language or region the brand is. They always use the same codes and their online image, as well in terms of Social Media, they do apply a similar strategy.
3
strategy
Technology is a key aspect in the brand's communication strategy; Instagram is used in order to showcase their newest collections and editorials. In the main Instagram page of the brand (@stellamccartney), there is a link of their website, in order for customers to easily access the webpage and buy their newest products. The main aim of the brand is to transmit their core values to their customers, responding to transparency and sustainability, as previously stated. In order for this being promoted, a new strategy has been developed in Media and Point Of Sale. In terms of online and social media, the brand will be developing a new video series which will be showing the so many times mentioned transparency with their clothes manufacture, where do they get the materials from and how do they recycle. In these videos (which will be published in their Instagram account as a short version, linked to the full one that will be in Youtube and in their website) it will be shown the entire procedure every garment they sell follows, as a piece of example; if the shoes they produce are made in Spain but the materials they use come from Italy, Morocco and New Zealand, and the finishing is made in the UK, it will be shown every single thing and the people that is behind every part of the shoe. Furthermore, so as to have a bigger impact in social media in order to engage with the younger consumers behind the screens, there will be also a weekly "take over" from an intern revising the bases worldwide where they do get their materials from, and via instagram stories they will be showing the real and "on time" behind the scenes of Stella McCartney. Regarding the offline strategy, it has been decided that price tags will contain information about every single material used. This will be done in order to prove transparency. This information will be specific for every garment, thus every client will have a personalized information of the exact material of the garment which is being bought is made of.
In reference to the Point Of Sale, at the moment they communicate in every single country the same way, using the same colour palette (pastels and soft colours that represent the brand. Also they have been always communicating via advertorials in magazines showcasing their clothes but the art direction demonstrating how nature friendly they are as well. Their image is strong and loyal to their values, every season it is 100% representative and sticks to their forever look. So in order to be loyal to their strong image, it has been developed the idea of producing new shopping bags which will be made by the people working in one of the villages the brand operates. The bags will be created with their local materials, so as to give them a voice and the ability to manufacture something they believe in. This will allow to stop using paper bags that will probably no longer be used, changing it into a usable bag which buyers can keep and use in their day to day life. In addition these bags will have a leaflet inside explaining where does the bag come from and hence providing transparency.
figure 15.Stella McCartney S18 (Raalte, 2018)
figure 16.Stella McCartney S18 (Raalte, 2018)
references Amed, I. (2015). Stella McCartney: Change Agent. [online] Business Of Fashion. Available at: https://www.businessoffashion.com/community/voices/discussions/can-fashion-industrybecome-sustainable/stella-mccartney-change-agent [Accessed 17 Oct. 2018].
Cox, M. (2015). Stella McCartney Report. [ebook] Available at: Cox, M. (2015). Stella
McCartney Report. [ebook] Available at: https://issuu.com/marycox0/docs/
stella_mccartney_report_final... [Accessed 17 Oct. 2018]. [Accessed 17 Oct. 2018]. Deng, H. (2017). Will Sustainable Fashion Crack China’s Luxury Market in 2018?. [online] Jing Daily. Available at: https://jingdaily.com/sustainable-fashion-2018/ [Accessed 26 Oct. 2018].
Hall, C. (2017). China’s Sustainable Fashion Paradox. [online] Business of Fashion. Available at: https://www.businessoffashion.com/articles/global-currents/chinas-sustainable-fashionparadox [Accessed 19 Oct. 2018].
Malik, J. (2016). Greenpeace Reveals the Most And Least Eco-Friendly Fashion Brands.
[online] Inhabitat. Available at: https://inhabitat.com/ecouterre/greenpeace-reveals-the-mostand-least-eco-friendly-fashion-brands/ [Accessed 23 Oct. 2018]. McCartney, S. (2016). Environmental Profit & Loss Account. McCartney, S. (2017). Modern Slavery Statement. Rank A Brand. (2018). How sustainable is Maison Margiela?. [online] Available at: https:// rankabrand.org/sustainable-luxury-brands/Maison+Margiela [Accessed 23 Oct. 2018].
The Ethicalist. (2018). 15 Eco Conscious Brands You’ll Love In The UAE. [online] Available at: https://theethicalist.com/15-fashionable-sustainable-brands-uae/ [Accessed 23 Oct. 2018]. Kering Group Stella McCartney (2018). Stella McCartney reveals 23 Old Bond Street
celebrates the brand’s design spirit, innovation and commitment to sustainability focused on customized experiences and multi-sensory engagement.