Maison Kitsune - Luxury Brand Audit: Leadership, Ethics, & Sustainability

LUXURY BRAND AUDIT Bryan Kaetz | 17 November 2020 LXFM 760: Leadership, Ethics, and Sustainability Professor Dong Yang | Fall 2020

Contents Part One Proposal

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Part Two Brand

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Part Three Strategy

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References

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Proposal

SECTION ONE

Brand Selection

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Project Proposal

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Research Outline

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Part One:

Brand Selection

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Brand Overview

What’s so special about Maison Kitsune? “ Created

in 2002 by Gildas Loaëc and Masaya Kuroki, Maison Kitsuné offers a unique, inspirational Art de Vivre blending a fashion brand (Maison Kitsuné), music label (Kitsuné Musique) and coffee shops (Café Kitsuné). Over the last sixteen years, the multifaceted Paris-meets-Tokyo brand has consistently grown and increased its international influence organically, building a loyal fan base all over the world. “Maison” is the French word for “house, and “Kitsuné” is the Japanese word for “fox”,

a symbol of versatility. Legend has it, the fox possesses the power to change its appearance, just like Maison Kitsuné knows how to adapt its repertoire according to inspiration. Since the brand’s inception, this mythical animal has been Maison Kitsuné’s signature logo, fluidly working its way in, here and there – and of course, shifting faces along the way. The blue-white-red colorway is the fox’s most famous uniform, as it captures the very essence of the Maison Kitsuné Parisien lifestyle.

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Part Two:

Project Proposal

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Goals:

To develop a full understanding of the Maison Kitsune brand image and target customer. To determine key success factors of the brand’s business model.

To understand the brand’s identity and marketing position. Finally, to assess a potential new initiative to support the brand’s identity and market positioning with their customer profile.

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Expectations:

I hope to find archival descriptions of how the brand started and how it has evolved to its current positioning within its market.

I also expect to understand the consumer demographic that Maison Kitsune appeals to and how they execute that through marketing and ethical perspectives.

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Part Three:

Research Outline

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RESEARCH:

Methodology

As Maison Kitsune is not one of the largest, heritage luxury brands such as Chanel, Prada, Gucci, or Louis Vuitton and others, research methods for this brand will include primary and secondary resources.

These resources will help determine brand audit factors for this project, including business model, competitive analysis, key success factors, and consumer information and demographics.

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RESEARCH:

Sources

Secondhand interviews, the brand’s own website, press releases and articles, and likely Instagram user-generated content (UGC). there will also be opportunity to conduct primary research in the form of consumer opinion surveys to determine brand awareness, perception, opinion, and appeal. Reputable trade publications, such as Women’s Wear Daily, Business of Fashion, and Vogue Business will be primarily be used.

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Brand

SECTION TWO

Business Model

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Competitive Analysis

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Target Market

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Part One:

Business Model Analysis

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Business Model

What makes Maison Kitsune tick?

Founders Gildas Loaëc and Masaya Kuroki established the brand in 2002 with their record label, shortly expanding into fashion and later into Cafe Kitsune - a coffee shop that “revolves around the pure joy of enjoying a good cup of coffee in a beautiful and cosmopolitan location, while listening to good music.” Loaëc possesses a previous background in managing Daft Punk and still works with the duo on special projects; while Kuroki has a background in architecture and brand design. Paired with their commercial, pop but indie music stylings, the fashion side of the business aims to bring quality materials and a similar sense of Parisian classic and Japanese heritage to its apparel. Maison Kitsune’s mission is to offer a

unique, inspirational Art de Vivre while growing consistently and increasing their international influence organically to build a loyal fan base around the world.

Currently, the brand consists of 16 stores across Paris (its home country), New York City, Tokyo, Kyoto, Osaka, Hong Kong and Honolulu with an additional 400 points of sale worldwide. The brand only fairly recently (within the last five years) expanded into the North American marketplace. Current annual sales sit at $46 million with 90% from the fashion line, and the remaining 10% from their music and hospitality divisions.

Since its debut, Maison Kitsuné has also collaborated with young, avant-garde labels and more established, prestigious brands.

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Part Two:

Competitive Analysis

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“

$$$

Basics

Trendy

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“

The founding duo merge their shared interest in minimalist Parisian style and electronic music to create a distinctive single-brand experience, enabling the pair to carve a unique path by transgressing the traditional constraints of both industries. The signature fox emblazons the brand’s

assortment of refined streetwear classics, showcasing a light-hearted blend of Japanese minimalism and Parisian prep. The label’s familiar relaxed aesthetic and simple cuts are finished with a whimsical twist, adding tonal outfitting and luxe accents into the Maison’s repertoire.

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“

Ambition to Create Novel Expression” — creative collective and lifestyle brand. In 1996, demand for the brand’s novel and pared-back vision quickly grew. Now comprising arms focusing on design, production, advertising, furniture, and fashion, integrating artistic urbanity across all divisions.

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“ Unexpected proportions, nuanced colors, and custom-developed fabrics permeate the Studio’s aesthetics. From wardrobe essentials to finessed lifestyle accessories, Acne breathes new life into classic designs with an intellectual take on Scandinavian minimalism.

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Founded in 2002 by Brits Marcus Wainwright and David Neville, this New York-based label is known for clean cuts built on a winning marriage of art and marketability. Timeless style and classic tailoring inspires their modern approach to a contemporary men’s wardrobe. With designs

emphasizing casual tailored pieces, technical textiles, minimal knits, and versatile basics, high quality fabric and construction frame each piece, from a razor-sharp shirt to a pair of wearanywhere jeans. Always understated, rag & bone’s blend of polish and leisure captures a relaxed, downtown feel.

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“

A response to London street style and the zeitgeist of Britain’s working class, Samuel Ross launched in 2015 to reflect youth culture in fashion.

His multidisciplinary vision is present throughout the label’s range of readyto-wear, objects, and accessories.

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“ Durable industrial textiles crafted in a sleek neutral palette results in a collection simultaneously rugged and refined.The product of unconventional tailoring and streamlined design, offers a unique and sophisticated take on contemporary streetwear.

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Goals: Started in 1988 by Jean Touitou, A.P.C. (short for Atelier de Production et de Creation) produces timeless, quintessentially Parisian men’s readyto-wear. Refined materials and an attention to cut and fit define the label’s elevated closet staples, from

its cult favorite raw denim jeans and mariner striped sweaters to printed button-downs and t-shirts. Timelessly styled leather and suede backpacks, desert boots, and derbys complement their low-key menswear for a look that is casual, yet always polished.

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Part Three:

Target Market Analysis

Demographic DEMOGRAPHIC • GEOGRAPHIC •

Psychographic BEHAVIORAL • LIFESTYLE •

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Customer:

Demographic

Generally city-dwellers and jet setters from big cities in the Asian consumer market.

Maison Kitsune’s average customer skews younger than the usual luxury consumer due to their streetwear style and sensibilities - generally between the ages of 18-35. The brand also targets an affluent customer with money to spend due to their high quality wares at luxury pricepoints, with consumers in the upper class with income ranging above $150,000.

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Demographic Profiles

Alima

• 31-years-old • Of Southeast Asian descent • Lives in Paris, France • Works at an advertising agency • $90,000 salary + bonuses • Engaged to be married

Jin

• 25-years-old • Lives in Shanghai, China • Full-time graduate student • Pursuing a design degree • Comes from a wealthy family • Single

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Customer:

Geographic

Founded in Paris, France, this city is the key geographic area for the brand that it derives not only inspiration, but also its look to appeal to customers here.

Kitsune also has 30 brandmanaged boutique and cafe locations. There are numerous wholesale distribution partners and E-Commerce, including SSENSE, Farfetch, amongst others.

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Locations Thailand Bangkok

Japan

C hina

2 locations in Hong Kong Shanghai

4 locations in Tokyo 2 locations in Kyoto Okayama Osaka

3 locations in Seoul 2 locations in Busan

U nited States

France

3 locations in New York Los Angeles

S outh Korea

9 locations in Paris

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Psychographic: Behavioral

Maison Kitsune’s customers tend to be of the Experiencer, Innovator, Believer VALS types with a sprinkling of Strivers as well. Experiencers want everything, are trend-driven and up on the latest fashions, sociable, spontaneous, and value things. Innovators are always taking in information, experimental, internationally-exposed, receptive to new ideas, and make frequent purchases. Believers love escapism, are not looking to change society, believe advertising, and have strong me-too fashion attitudes. Finally, strivers wear their wealth and are the center of low-status street culture.

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VALS Makeup

Key Traits 39

Psychographic: Lifestyle

Paired back to behavioral concepts, Maison Kitsune’s target market lives a rich, jetsetting lifestyle but also enjoy the more quaint experiences that Cafe Kitsune provides while wearing the latest subdued fashions by the Maison, living at the front line of the streetwear movement. These consumers enjoy the luxurious city life, technological advancements, and other digital innovations that modern society and firstworld experiences bring them.

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Demographic Profiles

Alima

• Loves shopping when she is not working, with luxury brands to get inspiration for her marketing work • Vacations in Mykonos • Drives a Ferrarri • Utilizes tech in her daily life

Jin

• Spends his free time working on his design portfolio and freelancing • Family home is in Hong Kong • Vacations often in Europe • Has a personal, family driver • Very aware of technological trends and new applications for his work

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Strategy

SECTION THREE

Current Efforts

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Recommendations

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Part One:

Current Sustainability

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Currently, Maison Kitsune does not publish any information regarding the sustainability efforts or ethical initiatives they may or may not pursue as a company, leading one to believe that they simply do not make this a priority, which is not advisable considering today’s conscious consumer. good on you®, a brand rating system,

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stated this about the brand: provides insufficient relevant information about how it reduces its impact on people, the planet and/or animals. You have a right to know how the products you buy affect the issues you care about.

Maison Kitsuné is rated ‘We avoid’ (or a 1 out of 5) based on information from our own research.”

In today’s day and age, the lack of ethical transparency has great potential to hurt the brand’s image as consumers are much more interested in conscious corporations than ever before. While Maison Kitsune may indeed have specific initiatives inhouse, the brand needs to do a better job of communicating these efforts to

provide the consumer with information they “deserve to have.” While Maison Kitsune is still growing, baking ethical leadership and sustainability into their mission and values now will provide long-lasting benefits. I will be providing four recommendations, including three specific initiatives for the brand to execute moving forward.

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Part Two:

Recommendations

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As a first step, Maison Kitsune should publish efforts they are making in the sustainability or corporate social responsibility space. As with previous reports, the only assumption to make regarding lack of information is that no efforts are being made, something that the brand will likely face backlash

for in the future from growing concerns over ethical companies from conscious consumers. From there, Kitsune should establish a PR team to continue these conversations and communications not only with the general public, but also the news media and trade publications in the fashion sector.

Strategy: Communication & Public Relations 50

Inititative One: Sourcing Strategies As a second step, Maison Kitsune needs to analyze its current sourcing strategy to determine where they would be able to make greater ethical choices in fibers, fabrics, and other raw materials sourcing prior to moving to the next stage of manufacturing their garments. By analyzing these

sources from beginning to end, Maison Kitsune would set itself up to communicate initiatives that properly support sustainability not only in the fabrication of their garments, but also in the manufacturing and employment of garment workers and store employees across their brand.

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Third, while Maison Kitsune is a French-based brand, the public cannot simply assume they are manufacturing in France despite their luxury standing and similar competition doing the same. Paired with the previous initiative, tracing the entire manufacturing process across

the full supply chain and publishing those results in a true transparency and communicative strategy to allow consumers to understand the brand and its commitments to local communities. By being transparent in factory locations, consumers will know where the brand attains its goods.

Initiative Two: Manufacturing Transparency 52

Initiative Three: Corporate Social Responsibility Finally, Maison Kitsune is poised to become a major global brand, with locations across the globe - primarily in Europe and Asia. As the brand continues to develop their presence in these areas, they should also look for ways to support these communities that in turn, support their business.

With locations in growing markets such as Thailand, South Korea, and China, Maison Kitsune has potential to develop their own significant presence through community outreach and resonate even more with consumers in these soon-to-be major luxury regions. This also holds true with their home country.

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References

Burlet, F. (2019, September 20). Maison KitsunÊ Debuts First Restaurant. Women’s Wear Daily. https://wwd.com/ business-news/business-features/exclusive-maison kitsune-debuts-first-restaurant-1203295213/.

Business of Fashion. (2020). Maison Kitsune. The Business of Fashion. https://www.businessoffashion.com/articles/ tags/organisations/maison-kitsune.

Croll, J. (2010, October 17). Interview: Maison Kitsune. The Block Mag. http://www.theblock-mag.com/kitsune/.

Maison Kitsune. (2020). About Maison Kitsune. Maison Kitsune. https://www.maisonkitsune.com/mk/la-maison/. good on you. (2019). Maison Kitsune. Brand Rating Directory. https://directory.goodonyou.eco/brand/maison-kitsune Strategic Business Insights. (2020). US Framework and VALS Types. VALS. http://www.strategicbusinessinsights.com/ vals/ustypes.shtml.

Ssense. (2020). Designers. Ssense. https://www.ssense.com/.

Tan, H. (2016). An Interview with Maison Kitsune. Twenty6 Magazine. http://www.twenty6magazine.com/issue-k/ lifestyle/interview-with-maison-kitsun%C3%A9.

Vogue. (2020). Maison Kitsune. Vogue Runway. https://www. vogue.com/fashion-shows/designer/maison-kitsune.

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