A report discussing the current retail strategy of Alexander McQUEEN, and a proposal of an innovation designed to target Gen-Z utilizing digital technology
“The global retailing landscape is evolving quickly with the rise of omnichannel retailing, and retailers worldwide are constantly experimenting with new concepts and formats” (Euromonitor, 2021).
Although Gen-Z has the highest presence in the digital realm, the same consumers still find value in physical shopping channels, even more so after COVID-19 restrictions, and want retailers to provide engaging real-life experiences (Parker and Alexander, 2022).
For many luxury customers, an in-person visit to a luxury store is a special treat they enjoy and look forward to, and the retail experience isasimportantastheitemsthemselves.
In the last few years, many fashion retailers have moved away from the traditional brickand-mortar experience, opting to move online as customers spent less time on the high street,with17,2 storesclosinginB 2021(Garland,2
However,
The House of Alexander McQueen was founded in 1992 and is part of the Kering family. The brand is best known for its innovative and uncompromising creativity (Disko, 2019). Sarah Burton was appointed Head of Design for womenswear in 2000 and given the role of Creative Director in 2010 (Disko,2019). Through constant exploration of the natural world, Burton celebrates the value of English heritage, a sense of community and the delicate touch of the hand, whilst simultaneously pushing the boundaries of fashion.
“As a place for inspiration, Britain is the best in the world… You’re inspired by the anarchy in the country,” (Alexander McQueen, n.d). Integral to the culture of Alexander McQueen is the juxtaposition of the feminine and the masculine, fragility, strength, romance, and rebellion (Disko, 2019) McQueen himself said “you've got to know the rules to break them. That'swhatI'mherefor,todemolishtherules but to keep the tradition.”(Alexander McQueen,n.d).
“I want to be the purveyor of a certain silhouette, or a way of cutting so that, when I’m dead and gone, people will know that the twenty-first century was started by Alexander McQueen.” (AlexanderMcQueen,n.d).
Lee Alexander McQueen was and still is one of the most celebrated fashion designers of this generation, known for his artistry and exceptional technical ability,and admiredforhis capabilityto combinerebellion andtradition.
Referred to as “the hooligan of fashion” (Mendo, 2018), “McQueen was unlike anything that the fashion world had ever seen before. With his shaved head, gap-toothed smile, scruffy jeans, and guttural cockney twang, he had the air of someone more likely to steal a handbag than admire it,” (Fox, 2012).
Known to his friends and family as Lee, he was born and educated in London. He left school at 16 to become an apprentice on Mayfair's Savile Row, the historic centre of British menswear tailoring, where he learned traditional tailoring techniques (V&A AlexanderMcQueen,nodate).
McQueen was one of the youngest ever to win the British Designer of the Year award, winning the title four times between 1996 and 2003 (Mendo, 2018). McQueen’s work was highly controversial, but this controversy only contributed to his success. He was best known for the dramatic intensity of his fashion shows, inspiredbyperformingartandtheatre.
Consumers can feel a strong emotional attachment towards certain brands, which often results in forming a strong relationship with a brand (Shin, Eastman, and Li, 2021).
For McQueen as a luxury brand, the emotional aspects are crucial in establishing a strong relationship with Gen Z as c stomers are likelytostayloy brandswhenth anemotional attachment(Sh Eastman,andL
Emotionally connected consumers are 52% more valuable to a brand than those who are just satisfied (Kim and Sullivan, 2019), thus encouraging brand loyalty and repeat purchases. Moreover, a luxury brand’s ability to build a strong bond with consumers, particularly Gen-Z, is crucial to differentiate from competitors (Shin, Eastman, and Li, 2021).
Emotional brand relationships are characterised by a consumer’s preference for the brand for “its symbolic benefits, for the social desirability of the brand and its self-expressive value” (S )
The main growth engine in the luxury market is experiencing a generational shift toward Gen-Z consumers (Cho, Kim-Vick, and Yu, 2021), therefore it is a matter of survival for luxury brands like McQueen to form a strong bondwithGenerationZ.(Langer,2021).
Alexander McQueen is the name and face of the fashion brand. However, since his passing in 2010, it’s been questioned if the brand has lost its identity, and somewhat died with Lee himself.
In an interview with Vogue, creative director and close friend of McQueen said “with Lee, each show was so completely autobiographical. The dresses could tell their own stories because the fashion was an avatar of his personal journey” (Bowles, 2017). It’s therefore important for the brand to reshape its identity and create a strong and powerful brand image, which is recognisable and authentictoMcQueen.
The globalization of the luxury industry and rapid technological advancements have presented luxury customers with many brand choices, leading to fierce competition among firms (Ryan, 2009). To successfully manage and compete with other luxury fashion brands, McQueen needs to establish and maintain a strongbrandidentity (Okonkwo,2007),which canbeachievedthrough innovation.
Today, luxury customers, particularly Gen-Z are placing more emphasis on the emotional value, such as closeness and involvement with brands, when making their purchase decisions (Arminen, 2017). To provide a successful customer experience through innovation, McQueen must prioritise positive service encounters, p demeanour,and meaningful interactions. (Fatimaetal., 2020).
All these factors can lead to customer happiness because there is a strong underlying element of trust, satisfaction, and fulfilment experienced. Luxury brands like McQueen don’t just sell a product, they sell a lifestyle, which means creating a world of McQueen in which Gen-Z customers can experience(Leslie,2022).
Alexander McQueen must use storytelling to inform its customers about how the brand was born, the inspiration behind the company, and its personal mission. Storytelling is one of the most powerful ways for Alexander McQueen to refresh its brand image and create a strong, powerfulidentity,bycapturingandsharingthe story behind the brand and taking customers onthejourney ofMcQueen andeverything itrepresents (J-PDeClerck, 2013).
In 2022, the luxury fashion market generated a huge £4.42 billion, with the market expectedtogrowannuallyby5.43%(Statista, 2022). Alexander McQueen is a part of the Kering family, The COVID-19 pandemic has undoubtedly been a catalyst for a shift towards digitalization, as store closures forced e-commerce to become the main distribution channel.
Gen-Z is the largest generation, accounting for around 25% of the world’s population, and has a significant impact on culture and the current economy. Gen-Z currently has approximately $143 billion in total spending power, which willonlyincreaseastheirearningsgrow.
By 2025, it is estimated that Gen-Z will contribute 130% of the growth in the personal luxury goods market and by 2035, Gen-Z will account for 40% of the global luxury goods k
“Fashion is the favourite entertainment category for members of Gen-Z to spend money on, outranking other categories like dining, video games, consoles, and music.” (Schneider, Lee,2022).
“The high expectations for experiences and the reduced attachment to always buying the same brand make Gen-Z the most difficult generation towinover.Br toaddressthem future,regard largetheyare
The fashion industry is experiencing a historic transformation thanks to emerging technologies such as blockchain and nonfungible tokens (NFTs), along with impactful technologies such as artificial intelligence (AI), and virtual reality (VR). To remain competitive, as a well-known luxury fashion house, McQueen must ensure it utilizes these technologies to its advantage to reinvent its consumerexperience.(Joyetal.,2022)
Omnichannel retailing has also revolutionized the way retailers create strategies for engaging customers in making purchase decisions. Phygital is a new form of omnichannel retailing that combines the physical and digital world, with a particular focus on the human touch to satisfy social and symbolic consumer needs (Pangarkar et al., 2022).
“An immersive customer experience involves leveraging technology to impact customer experiences positively at each point of their journey with the brand’s products and services during the pre-purchase, purchase, and postpurchase stage, resulting in greater value in the form of customer experience.” (Tom Dieck et al., 2021).
Another major factor McQueen must consider is the unique combination of technology and human touch, and how this enhances customer experiences. The use of interactive interaction with the help of technology can result in a long-term relationship with the consumer, as they will remember the positive experience and relateittothebrand(Pangarkaretal.,2022).
For the majority of Gen-Z, a day without technology is almost unthinkable, with 61% of consumers stating they would be more likely to buy from a brand that uses immersive technologies, meaning its essential for McQueen to consider digital technologies such as augmented and virtual reality (Laboratory, 2021).
If the COVID-19 pandemic taught retailers anything, it’s that in-person connections are far more valuable and impactful and more important than the digital world. Consumers want to experience real things and real people now more than ever, which is why McQueen should combine both the physical and digital worlds(Bilton,2022).
A strength of a physical store is the chance to be experimental with atmospherics and aesthetics and it provides an opportunity for McQueen to enhance the consumer experience, which can be done through innovative technology, which is essential for McQueen’s success in the digital era to modernize omnichannel retailing and attract a younger demographic(Briedisetal.2020).
McQueen already has a flagship store which opened in 2019. It is situated at 27 Old Bond Street and has been designed by creative director Sarah Burton. A flagship store is “the home of the brand and a place where customers go to be and inspired”. For customers, a visit to a flagship store is a vivid and pleasant memory that sustains their interest and engagement with the brand through time. Furthermore, these stores provide a place for relationshipbuilding activities with regular customers (Moore,Doherty,andDoyle,2010).
A
McQueen should consider creating an innovative consumer experience that connects Gen-Z customers to the brand (Francis and Hoefel, 2018). One way in which the brand can improve its relationship with Gen-Z and attract younger consumers whilst staying authentic to the brand values are to create an immersive digital experience based in central London,which payshomageto McQueen himself,whilst alsocelebrating thehistoryof thebrandand everythingit hasachieved.
The exhibition would essentially act as a tourist attraction, with extravagant displays showing iconic past collections designed by McQueen, teaching younger consumers about the rich history of the designs and the stories behindthem.
Gen-Z loves video content, reflected in the huge popularity of the app TikTok. To engage customers and immerse them in the world of McQueen, it must use video footage to bring the brand to life and visually enhance its products, by showing behind the scenes of creating its products, how the fabric moves, and the sounds of creativity. Video content will enable McQueen to create experiences, tell stories and communicate authenticity (Leslie, 2022).
Throughout the museum, there will be VR headsets to incorporate the digital world, which will allow consumers to relive some of the past shows that McQueen is best known for. Most members of Gen-Z will be too young to remember shows from the early 2000s and may wish they could’ve got to experience this for themselves, and now they can. There will also be projectors placed throughout the buildingplayingarchiveshows,andclipsfrom behind the scenes of how the collections were made, providing real insight and education about Alexander McQueen anditsheritage.
There’s huge value in creating content at experiential events (Ruddock, 2019), as consumers are almost guaranteed to share it on social media, likely gaining more exposure for the attraction, and it will also entice more people to visit themselves, for a chance to recreate these photos and videos to share on their own social media, especially those with largefollowingssuchasinfluencers.
McQueen's fashion shows were an integral part of his vision; sometimes he came up with the show concept before the collections themselves. He wanted the public to be moved by what they saw whether they loved or hated it (Alexander, 2015). For the exhibition to reflect this, each room would be themed around a past collection, to remind people of his most controversial and spectacular catwalks and provide the opportunitytore-livethesemomentsandtake partthemselves.
VOSS(Spring/Summer 2001): The show was centred around a glass box that resembled a padded cell in a psychiatric hospital. McQueen sat his audience around a mirroredcubewhich,whenthelightswenton, became a padded cell at a mental hospital. Models such as Kate Moss and Erin O'Connor were his crazed patients, pressed against the glass in extreme theatrical dresses (Leaper, 2015). Incorporating the experiential elements to encourage visitors to take photos and share on social media, would provide consumers with the opportunity to get in the glass box and take photographs mimicking the modelsattheshow.
Scanners (Autumn/Winter 2003): The show’s set depicted an icy Antarctic dystopia complete with an enormous wind tunnel that loomed above the runway (Hall, 2013). McQueen put his models in a wind tunnel for the finale of his Autumn 2003 show, inspired by travellers journeying through desolate Siberian lands (Leaper, 2015). Visitors of the attraction would be asked to dress up in the samecapesand reenactthis, withwindtunnels andanAntarcticthemedroom.
It's Only A Game (Spring/Summer 2005):
McQueen outdid himself when he presented his audience with supermodels acting as chess pieces at his Spring 2005 show, wearing structured jackets, Edwardian necklines, and fairy-tale-style dresses, casting strong silhouettes that echoed actual chess pieces (Leaper, 2015). There would be an interactive chess board in which consumers play each piece of chess, a fun activity to play tributetotheshow, andallowcustomers tonotjustbuy McQueenbut experienceit.
The exhibition will also act as a memorial to Lee, memories of him his life, and his story, with visuals, placed all over the wall, images of him, documenting his career highlights and achievements, and celebrating his incredible talent as a designer. Alongside this, there will be a celebration of Lee as a person, home videos from friends and family, audio clips of him speaking and his voice, his laughter, and his personality, to symbolise to consumers howheisthe nameandfaceof thebrand,andhis legacycontinues toliveonthrough thebrandandthe products.
Due to McQueen operating in an international market, it is important that this innovation is accessible to all customers around the globe and isn’t restricted to the UK market and consumers. The exhibition will be located in central London, Oxford Street, and will be free entry but run on a ticketed basis to manage crowds and ensure the space isn’t overcrowded.
As well as in-person, the experience will be accessible virtually, allowing customers globally to access a tour of the museum via any device, such as a mobile, tablet, or laptop. This allows McQueen to provide a unique physical and digital experience for its consumers and will also provide more exposurefortheinnovation.
This report aimed to provide insight into the new phygital era, discuss the impact digital technology has had on luxury retail, and how Alexander McQueen can use this to its advantage to attract a younger Gen-Z consumer and utilise experiential technology to enhance its brand reputation and consumer experience. It’s key for McQueen to use elements of storytelling to develop a compelling brand image and build on its reputationandeverything itisbestlovedforasa brand,toinformboth existingandpotential customersaboutthe historyofthebrand itselfanditscreator, tothemodern-day McQueen.
Innovation has always been at the forefront of Alexander McQueen, from his early 2000’s designs to his extravagant and outrageous runway shows, therefore the brand must continue to stay relevant and innovative to uphold its reputation and engage with Gen-Z consumers. 84% of luxury shoppers consider touching and seeing a product essential to the luxury shopping experience (Klarna, 2022), signifying the importance of keeping brickand-mortaralivea reinventingthew consumersnotonl butexperienceab throughphysicala digitalinnovation.
