POST-PANDEMIC STRATEGIC VISION FOR FENDI

POST-PANDEMIC STRATEGIC VISION FOR

R OMA

MADE BY ARABELA SIM

CREATIVE DIRECTORS Kim Jones - Couture and Women RTW and Fur Silvia Venturini Fendi -Men’s wear, Accessories and Children wear

CHAIRMAN & CEO

Serge Brunschwig - from 2018

OWNERSHIP LVMH

NET INCOME US$1.1 billion

BRAND TIMELINE Karl Lagerfeld appointed artistic director; Double F logo

Founded in Rome

by Adele and Edoardo Fendi

First women’s fragrance; Fendi gains global popularity

1965

1925

1985

1946

1977

Sisters Paola, Anna, Franca, Carla and Alda join Fendi

Launched first ready-to-wear line

Silvia Venturini Fendi created the iconic Fendi Baguette bag.

New headquater in Rome, Palazzo della Civilta Italiana

Kim Jones is appointed as Artistic Director of Couture and Womenswear.

1997

2015

2020

1994

2002

2018

Silvia Venturini Fendi is promoted to head of accessories and menswear design.

Fendi purchased by LVMH; Carla Fendi continue as chairwoman.

‘Fendi Mania’ Capsule; Fendi embraces the world of street style

MARKETING MIX PRODUCT • Women RTW & Couture • Men RTW • Children • Bags • Shoes

• Accessories • Jewelry • Watches • Home

PRICE • Prestige pricing • Nothing ends in .99 or odd number, all rounded Women RTW.....€270 - 6,500 Men RTW..........€420 - 7,800 Kids...................€150 - 750 Bags..................€1,190 - 6,000 Shoes................€120 - 1,590 Accessories.......€120 - 2,690

PLACE • 197 boutiques worldwide across 37 countries • Stores like Neiman Marcus, Bloomingdales, Saks, etc • www.fendi.com official online store • Online multibrand shops like Net-a-porter • The new Fendi headquarter in Rome including the largest store, a boutique hotel, restaurant and caffe

PROMOTION • Store installations and creation of a unique in-store experience • Series of social media videos • Ad campaigns for magazines and online • Customization app

PESTLE ANALYSIS CONCLUSIONS Consumer trends that are emerging or solidifying in response to the crisis MORE CHINA

Luxury shopping is likely to restart first in China if the virus remains under control there. Continued restrictions on travel will mean that many purchases that would have been made abroad will happen in China.

ACCELERATED SHIFT TO DIGITAL SHOPPING

When safe, consumers will return to physical stores, but some digital shopping habits built during the outbreak will stick—especially if Fendi raise the game in online assortment, user experience and digital marketing.

HEIGHTENED ENVIRONMENTAL AND SOCIAL CONSCIOUSNESS

Consumer concern about sustainability and social issues is set to continue, consolidating the importance of environmental and social governance.

Fendi may rethink the end-to-end product life cycle, supply chain management and disposal of unsold stock.

RISE OF A POST-ASPIRATIONAL MINDSET

Ethics will become as important as aesthetics as consumers prioritise purposeful brands.

EXPANDING NEED FOR INCLUSION

Fendi will need to use all the ingenuity to revamp the offer at accessible price points, reflecting the reduced spending power of many middle-class customers.

The luxury industry will continue to feel the impact of Covid-19 in 2021 and beyond

HOW CAN FENDI EMERGE STRONGER FROM THE COVID CRISIS?

R OMA

LONG-TERM IMPLICATIONS FOR FENDI INVESTMENT IN DIGITAL

Start to bring the digital marketing in-house, moving to a more agile, test-and-learn marketing model. This means Fendi will be able to make quicker decisions and could emerge faster from the crisis.

CONSCIOUSNESS

INNOVATION

Even before Covid, people start shifting to a more balanced shopping behaviour.

Fendi need to rethink its value proposition to respond to this development.

Innovation is required at all stages of the value chain: from new processes for local production and planning, to reorientation of supply chains and rethinking of consumer engagement.

POST COVID TRENDS ‘SOFT TAILORING’ IS THE NEW CLASSY. ° VERSATILE, PIECES FOR THE TRANSITION. ° CONFORM - NOW IS A TOP FACTOR. ° BEFORE COVID: TRENDY PIECES — POST COVID: ‘EVERGREEN’ PIECES ° SUSTAINABLE AND MORE RESPONSABLE CONSUMPTION ° ATTENTION TO CLASSIC ELEMENTS, SUCH AS CRAFTSMANSHIP AND HERITAGE

COLLECTION PROPOSES

LONG TERM CONSIDERATIONS

My vision for the Fendi future is to apply the longevity of accessories to clothes by increasing the artisanal quality of garments and create enduring pieces. I suggests clothes that last for a long time: sophisticated, easy, but also the rigour of something very chic,and mostly made with sustainable textiles.

I consider that for Fendi - luxury is not about abundance and glamour, it is about freedom.

ORGANIC AND COSY FEEL

ECOMMERCE IS NOT ENOUGH “EXPERIENTIAL LUXURY” -MORE PERSONALISED VIRTUAL EXPERIENCES

BUY

BUY

BUY

GLOBAL RETAIL E-COMMERCE SALES UP TO $4.13 TRILLION IN 2020 AND 95% OF PURCHASES WILL BE DONE ONLINE BY 2040.

3D CREATE BETTER UX INTERACTIVE FEATURES LIKE A 360 DEGREE VIEWING OPTION, WHICH ALLOWS SHOPPERS TO SEE ITEMS ON DIFFERENT BODY TYPES AND VARIOUS SKIN TONES.

360° VIEW

SIZE

BODY TYPE

SKIN TONE

360° VIEW

SIZE

BODY TYPE

SKIN TONE

360° VIEW

3D UX , App interface proposal for Fendi

COMPANIES WHICH REPLACE 2D PRODUCT WITH 3D ONES ACHIEVE 40% HIGHER CONVERSION RATES AND A 30% INCREASE IN SALES.

SIZE

BODY TYPE

SKIN TONE

TIME IS MONEY

SAMPLE LEAD TIME

37 days

BEFORE

AFTER

(W/O 3D)

(WITH 3D)

MATERIALS

DESIGN

MATERIALS

SAMPLE LEAD TIME

27 hrs

DESIGN

3D SAMPLE

SAMPLE ADOPTION RATE

SAMPLE

SAMPLE ADOPTION RATE REVIEW

15% REVIEW

MARKET

SAMPLE

MARKET

Data based on six months of running 3D in design development process.

3D Sample used for sample reviews as opposed to physical sample.

55%

WHY 3D? BETTER UX • HIGHER CONVERSATION RATE • INCREASE IN SALES • SAVING IN SAMPLES • LESS WASTE, LESS CO2 EMISSION - MORE SUSTAINABLE BRAND IMAGE • ONLINE WHOLESALE, BEFORE THE SAMPLES ARE MADE • TIME IS MONEY - MUCH LESS SAMPLES LEAD TIME • BETTER FIT

WHY CLIENTS STILL CHOOSE FENDI IN THE FUTURE?

WHAT DOES WHO IS FENDI’S FENDI BELIEVE? CONSUMER? Keeping the familiy traditioncharged, consistent sinceand founding, Fendi consumer is highly emotionally passionate sophisticated providing innovativeandcraftmanship, and providing who values individuality personal style, by embracing the high-quality opportunity to have personal touchgoods. on thingsFendi that are significant him/her.tradition, Their values fura and leather stands for toquality, is based on friendship,economic independence, individual expression and experimentation, and creativity. self awarness. ‘Being online’ is part of their lifestyle.

FENDI - A VERSATILE BRAND WITH A STRONG IDENTITY FENDI SELLS DREAMS. ° ROME - ONE WORD BUT MANY CONNECTIONS: CITY OF CINEMA, LUXURY OF THE PAST, BUT MOST FAMILY. ° I THINK PEOPLE WILL ALWAYS LOVE FENDI’S COLLECTIONS BECAUSE THEY ARE ALWAYS NEW AND UNEXPECTED , ONE TIME YOU SEE SOMETHING CLASSIC AFTER AN INNOVATIVE CLOTHING OR SOMETHING SERIOUS AFTER A FUNNY SHOW. ° F IS FOR ... DIGITAL PLATFORM IS A BIG DOOR THAT OPEN THE MILLENIALS WORD, BECAUSE IT IS A PLACE WHERE THE VOICE OF THE YOUNG IS HEARD, WHICH MAKES US WANT TO BE PART OF THE FENDI FAMILY. ° THE FRIENDLY APPROACH ALLOWS US TO BE CLOSER TO THE BRAND. THE FENDI LIFE PAGE IS THE DOOR TO THE CONFIDENTIAL WORLD OF THE BRAND TO SEE ALL THE BEHIND SCENES AND PROJECTS, JUST WATCHING THE VIDEO YOU CAN FEEL BELONGING TO THE FAMILY COMPANY.

SO I THINK ALL OF THIS, AND ALSO THE FUTERE INNOVATION FOR THE BETTER UX WILL PUSH CUSTOMERS TO CHOOSE ALWAYS FENDI.

THANK YOU