Paul smith report

Brand extention for Paul Smith into cafe in china

Research Project Stage 2 FASH 30002 Tutor: Lucy Norris Katherine Chen T2051778

INT

INTROD

TRO

DUCTION

This insinuates the constant efforts of the company to diversify its products range in to new markets. Paul

Smith, the designer, “designs three men's collections, a women's collection, an accessories line, jeans, shoes, you

The overall aim of this report will be to consider how Paul Smith brand can create a greater level of engagement

between the brand itself and its actual and potential

consumers in Shanghai, China. In order to achieve this

name it. But design and distribution are tightly

aim the following objectives have been set:

be less innluential than his menswear” (Jones. D, 2010).

perceptions and desires of the Paul Smith brand

controlled. And, while his women swear is often said to

Paul Smith is set to enter new markets with its product ranges, “Paul Smith hopes to open 20 China locations

within the next ive years, in addition to its Shanghai anchor store.” (Daily. J, 2012).

Having seen these elements of the brands Prooile it is FIG 1 Paul Smith Foral street

Aims and Objective

possible to see that the unique proposition of the Paul

- To

conduct

primary

research

into

consumer

- To conduct secondary research into the environmental factors and current trends in China which may have an impact upon Paul Smith brand?

- To explore the potential of developing a Paul Smith café with

interactive

technology

engagement in the future.

to

create

levels

of

Smith as a brand it is not just their fashion and product

Paul Smith Interactive technology café aimed at the

and values within society.

analyse the macro and micro external environments, and

ranges but a way for consumers to express their status

wealthy women in shanghai, China. This report aims to

explore facets of the marketing mix in order to critically analyse the company’s potential.

6

MET

METHOD

THO

DOLOGY

PRIMARY RESEARCH

SECONDARY RESEARCH

According to Matthews and Ross (2010) when developing a research study it is important to ensure that the research method will achieve the stated aims and objectives, and therefore it is necessary to consider the research approach and strategy and their feasibility. For this study it is been decided that an interpretivist or exploratory approach is preferable because this will provide a framework which will help the researcher to understand consumer behavior in respect of luxury brands (Saunders et al, 2012). It is also been determined that a mixed methods approach is sensible and therefore two complementary data collection methods have been used. These are the questionnaire (shown in Appendix 1), a short Paul Smith customers interview (shown in Appendix 2), Luxury consumer in China questionnaire (shown in Appendix 3), and Industries interview (Shown in Appendix 4).

Secondary research was undertaken to gain a clear understanding of marketing strategies and analyse the macro and micro external environments, and explore facets of the marketing mix in order to critically analyse the company’s potential. In addition, secondary research was also used to provide the report with a number of case study examples of how other brands have sought to re-engage with their consumers and potential consumer and a number of sources were made use of including WGSN, academic text, journal, news article and blogs.

10

BIG I BIG

IDEA IDEA

FIG 2 PAUL SMITH MOODBOARD

The product/service being proposed is a flagship Paul Smith Interactive Technology Café (Space Café) in Shanghai, China. This ventures aims to integrate technology with a luxury/designer dining experience under the Paul Smith brand ethos, thus intertwining technology, food and fashion.

The PSITC will incorporate the latest technologies from across the globe to create a unique futuristic dining experience. Projectors and touchpad interactive tables allows customers to order food and customise meals/drinks, which will be served by staff.

Furthermore, the technology available within store allows customers to communicate with others via social networks, in addition to viewing the latest Paul Smith collections available for purchase. Customers can communicate to nearby Paul Smith stores via e-commerce/e-communication (such as WiFi and Bluetooth) to purchase or enquire about products.

The meals/drinks offered at the Space Café will reflect the British brand and heritage, but yet catered to the Shanghai target market, offering British inspired foods with some foods/drinks reflecting the aesthetics of Paul Smith designs.

The image beside from (www.the-berkeley.co.uk, 2013) should depict what the products sold in the café should resemble.

As inspired by Forbes.com consumers of the PSITC, Shanghai can use different methods of ordering food using technology: - Smartphone Ordering - Tablet Ordering - Social Media Ordering (e.g: Net Waiter & Chow Now – Facebook based ordering) - Tabletop e-waiter & checkout.

- Digital Menu Boards - Online Vouchers (Forbes.com, 2012) The Unique Selling Points of the Paul Smith Interactive Technology Café (Space Café):

- Paul Smith branding/ brand equity - A highly focused differentiated luxury product line, hence good quality service and food/drink - The restaurant is technology orientated - The food and drink offered at the café/ restaurant are inspired by Britain.

14

mar

THE MA

rket

ARKET

Market Research

As this company combines, luxury/designer retail, hospitality & catering, and technology, many factors from both the macro and micro external environment will affect the Space cafe. However, due to the product/ service brand perception, more emphasis takes place on the luxury aspects of the external environment.

Macro External Environment

Political The major political constraint that will affect Space Café is that “Chinese consumer’s financial motive to buy abroad is strong, mainly because taxes on luxury goods in China range around 20%-70%, depending on the category”.

(Atsmon.Y, Ducarme. D, Magni. M, Wu. C, 2012, 22). The increase in tax could potentially harm Paul Smiths retail sales which could have a negative effect on the Space Café. If Chinas Tax rates increase in the long term Space Café may no longer be able sustain a competitive advantage.

Economic China’s economy is growing and shanghai is at the heart of it, “Shanghai is the capital for international Chinese, with more of the top international Chinese entrepreneurs settling here than any other city” (Herun Report, 2012). This suggests that the demand for luxury goods is set to increase in Shanghai. “It is predicted that Chinese luxury consumption will grow at around 18 per cent a year going

forward, the Financial Times reports, and will account for 20 per cent of the global market by 2013” (Vogue.co.uk, 2012). According to (Bain & Company Report, 2012, 2) “One-in-four global luxury consumers are now Chinese” which suggests that the competitions of all luxury goods in China are set to increase, therefore it may be of vital importance for Space Café to gain a first mover advantage.

However, in more recent times the growth of the Chinese economy has slowed down as indicated by Paul Smith himself, “Sir Paul acknowledged that the entry may be coming at a delicate time for the Chinese luxury market, as the country’s slowing economy saps demand for luxury goods”. (Felsted.A, (ft.com), 2012) Nevertheless, according to (The Wealth Report, 2012, 17) Shanghai is one of the top ten important cities in the world and will become ever more important in 10 years time.

(Wealth Report, 2012, 17)

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Social/Cultural As the social demographics change within China and more people have an increased income, “Upper-class Chinese are spending more time with other wealthy friends at social occasions such as fancy dinners and parties, which is giving them new opportunities to show off their collections of clothing, shoes, jewelry, and bags”. (Atsmon.Y, Ducarme. D, Magni. M, Wu. C, 2012, 18) this infers that the PSITC could be used to host events that bring wealthy women from shanghai together.

(KPMG Report, 2007, 5)

The graph on the left indicates that more than 50% of the people from Shanghai who own luxury products believe that they are successful and have good taste. This suggests that the more successful consumers are likely to continue to purchasing luxury goods for self esteem.

As many young Chinese people travel well they have “become aware of the Paul Smith brand via the explosion in social media”.

(Felsted.A, (ft.com), 2012). This suggests that the PSITC will have some brand awareness as it enters the city of Shanghai.

“Chinese consumers are becoming more sophisticated and brand-conscious. China’s overall GDP may slow, but the middle-class is growing.” (Daily.J, 2012) as the middle class grows so does the target market.

Technology E-commerce is now becoming the more popular method for luxury brands to make sales, “digital sales are set to power so much of the (luxury) industry’s growth in the next five years, it is a connection that luxury goods companies have to get right”. (Doran.S, 2013) (Bain & Company Report, 2012, 44)

The graphic above shows that the target consumer of the luxury industry within the next coming years are going to be younger than ever before, they shall be under the age of 20. It shows a clear demonstration of how Paul Smith will have to tailor its products for specific consumers. The do it yourself (DIY) culture of personalisation is set to increase.

This is excellent for Space Café as consumers get to personalise the products they wish to choose at the restaurant. In addition the fact that social media is incorporated into the product/service delivery model at Space Café lies in favour with the up and coming target market.

Social media have become the main methods of advertising and promoting products, “The rise of a new ecosystem of social media platforms like like Sina Weibo, Youku and Jiepang has boosted the ease and dropped the cost with which brands can reach China’s emerging young consumer” (Daily. J, 2012) This suggests that social networks and recommendations on blogs are making consumers more concise on what product they want, when they want it and how they want it, hence the increase of customers with specific requirements.

Environmental & Legal macro external factors that influence the Space Café are not of great significance. An indirect legal factor that can influence Space Café can include the production of counterfeit luxury products in china, due to the weak intellectual property rights laws in China.

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TECHNOLOGY - E-commerce is now becoming the more popular method for luxury brands to make sales, “digital sales are set to power so much of the (luxury) industry’s growth in the next five years, it is a connection that luxury goods companies have to get right”. (Doran.S, 2013)

- Social media have become the main methods of advertising and promoting products, “The rise of a new ecosystem of social media platforms like like Sina Weibo, Youku and Jiepang has boosted the ease and dropped the cost with which brands can reach China’s emerging young consumer” (Daily. J, 2012) This suggests that social networks and recommendations on blogs are making consumers more concise on what product they want, when they want it and how they want it, hence the increase of customers with specific requirements.

Environmental & Legal macro external factors that influence the Space Café are not of great significance. An indirect legal factor that can influence Space Café can include the production of counterfeit luxury products in china, due to the weak intellectual property rights laws in China.

BRAND AAKER MODEL

Brand as product

Brand as organization

Brand as personality

Brand as symbol

British Fashion Style Excitement High quality

Quirky character Upper class Smart Charming

Global Luxury market Colorful heritage Expensive

Playing with stereotypes of ‘Britishness’ Strips Playful Unique style Creative design Classics with a twist 22

CASE STUDY: BURBERRY DIGITAL EXPERIENCE

FIG 3 : Burberry store Regent street

The new Burberry flagship store opened Burberry store features videos of the a new space in Regents street. It merges products through virtual screens and Burberry.com and a physical experience. iPod’s around creating a multi-dimensional way of engaging with the consumer, live ‘’Burberry is now as much a media- streaming are showed throughout the content company as we are a design store with all of the fashion shows around the world using YouTube, instagram and company’’- Christopher Bailey other social media sites.

In this store, they incorporates music, live events, a gallery that shows all history and the heritage, garments and virtual catwalks through many experience. The store creates an environment where people can socialize as well as shopping.

FIG 3.1: Burberry store Regent street

FIG 4 .1 Heineken club of future FIG 4 .2 Heineken club of future FIG 4 Heineken club of future

Heineken knew that it’s not enough to just offer the consumer a product, but that they now need to offer the consumer an exciting and thrilling experience to go along side it. Heineken came up with the concept of the ‘club of the future’ to be launched at the Milan design fair. The concept began as a ‘’yearlong design exploration project called the ‘’creative the club of the future initiative.’’(Design& Trend 2013: Online) This involved 19 designers from different fields from all around the world, from Tokyo to New York, to design the club of the future.

The final outcome included interactive games and activities to provoke engagement and participation and an interactive bar surface to entertain the consumer while letting the bartender know who’s next. The interiors also concentrate on a futuristic style with angular searing and origami shaped walls to add authenticity to the experience.

CASE STUDY: Heineken club of future

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CASE STUDY: SO DIOR: HARRODS

FIG 5 SO DIOR:HARRODS

FIG 5.1 SO DIOR:HARRODS

FIG 5.2 SO DIOR:HARRODS

So Dior: Harrods, London it is an exclusive pop-up store, in-store events, concept spaces and a café make up the collaboration between Dior and Harrods, this event took more than 18 months to create and will remain in store until April 14th 2013. So Dior for Harrods’s event is an exclusive range which designed by the brand’s creative director, Raf Simons, which in there appears to British twists which applied to Dior’s most iconic pieces. ‘’In a section dedicated to the Lady Dior handbag, five bags have been reimagined by contemporary artists as conceptual art pieces. Harrods’ fourthstorey Georgian terrace restaurant is transformed into a Parisian cafe which evokes Dior’s love of 18th century decor to fit with the event, offering a speciallydesigned menu featuring recipes borrowed from a cookbook published by the designer. Events are also taking place through the store to celebrate the collaboration.

the collaboration. Customers are able to have a portrait sketched by the in-house illustrator, personalize their favorite Dior perfume bottle or sign up for a beauty treatment.’’ (WGSN 2013: Online) this event shows that brands are recognizing the importance of how art’s, fashion and food can be used together to create a unique and engaging to the consumer.

CASE STUDY: Tokyo FabCafe Café’s in Tokyo the market is already saturated, but Fab Café in Tokyo has taken a little more on its menu than most. Fab café had just opened just a year ago. ‘The showroom is called Cube and features several printers made

by South Carolina-based 3D Systems, which 3D-print your whole body in the form of gummy sweets. This is making FabCafe a hot spot in Tokyo for anyone who needs something fabricated but can’t justify the multithousand dollar outlay on a machine of their own.’ (The verge 2013: Online) This new innovation technology shows Fab Café understands and knows the importance of technology can be used to create a whole new level of the café market.

FIG 6 CASE STUDY: TOKYO FabCafe

FIG 6 .1CASE STUDY: TOKYO FabCafe

FIG 6.2 CASE STUDY: TOKYO FabCafe

FIG 6.3 CASE STUDY: TOKYO FabCafe 26

The Luxury Hospitality and Catering Sector

(Bain & Company Report, 2012, 36)

The chart above illustrates that luxury hospitality is increasing ever more, and is likely to increase in the future. It is clear than most luxury hospitality experiences are due to business affairs rather than luxury. This could work in favour of Space Café as the number of entrepreneurs entering Shanghai is on the increase. The more business entrepreneurs undergo the more money they will spend on luxury hospitality and catering.

(Bain & Company Report, 2012, 37)

The graph above indicates that luxury food entering the home market is increasing whereas the luxury spending on food outside the home is decreasing As the aim of this project is to create a greater level of engagement for the brand and to obtain more female consumers, “brand loyalty, perceived quality, and brand image are important components of customer-based brand equity. A positive relationship was found to exist between the components of customer-based brand equity and the firms’ performance in luxury hotels and chain restaurants” (Kim. H & Kim. W.G, 2005, 549) This depicts that customer service must be tailored towards female customers’ needs, wants and desires, by gaining regular customers at the PSTC, then there is a good chance of developing of gaining more Paul Smith retail consumers.

Industry Analysis – Porters 5 Forces Rivalry within the industry - Growing potential in luxury goods within the hospitality & catering sectors as well as the luxury designer retail - There are many luxury/high end restaurants in Shanghai, but their effect on competition is dependent on the venues location.

- The number of people dining at luxury restaurants is increasing (in Shanghai) - Switching costs of products within the luxury sector is high, therefore brand loyalty is of high importance in any luxury industry - The cost of leaving the luxury retail or hospitality industry is high as much money has been invested in creating a high quality product/service which requires expensive start up costs - The price of the up-market/ luxury hospitality and catering services in Shanghai is quite high (as expected).

However, the range of high prices is large).

- All luxury industries are predominantly dependent on the upper class they determine the state of the industry - All competitors depend on brand equity for company success Bargaining Power of Suppliers - Renting out the shop/ restaurant floor space is limited and can be quite expensive; therefore, the cost of changing suppliers is quite high.

Bargaining Power of Customers - As the product being offered is luxury, the target consumers are less price sensitive, which means that they are not less inclined to buy a luxury food item/dining experience due to high prices.

- There are many other luxury food products and services in Shanghai (and more are developing), consumers are more likely to substitute a Space Café product for a higher quality one.

Threat of new entrants - The threat of new entrants is high, Shanghai is becoming one of the world’s wealthiest locations and large designer/ luxury corporate entities from the west are bringing their brands and products to Shanghai.

- However, it is predominantly established companies with brand equity that are entering the shanghai market, so for new start up companies it would be difficult to enter due to high costs and strong competition.

- Intellectual property rights will be required to licence/ trademark brands in China which will cost money and time.

- As the food offered is predominantly authentic ‘quirky’ English/ western style food, it would be difficult for Chinese companies to replicate this into their brand strategy.

Threat of Substitute products - Consumers are likely to go to traditional Chinese restaurants Having analysed the luxury café/restaurant industry, the level of uncertainty is not clear, as this type of venture has not been done before in shanghai, in some respects it could be seen as a slightly radical innovation of a standard café.

Nevertheless, the luxury industry is growing and Space Café should take part of it as the opportunity seems to be vacant.

28

CAFE CULTURE IN CHINA The café culture in china is changing at a rapid pace; the “numbers of cafés in China have doubled over the past five years - increasing from 15,898 in 2007 to 31,783 in 2012” (Mintel Report, 2012).

This suggests much potential for Space café . One of the key arguments for the increase in cafés is due to the increase in coffee intake by Chinese consumers and the perception that the Chinese have of coffee.

“In China, coffee is more like a symbol of Western affluence, friendship and a bridge in connecting the people” (Chang, 2012).

Nevertheless, coffee shops and cafes in Shanghai are predominantly used for business, for instance business meetings and interviews. Also, according to stanhopechina.com, 2013, the target demographics for coffee drinkers are “persons aged 25-35 yearsof-age, typically single, couples, young families, and white-collar office staff” (stanhopechina.com, 2013). It can also be argued that the “growing middle class with expanding tastes and disposable income.” (stanhopechina.com, 2013) are a target demographic too.

There are many cafes appearing across china, even “McDonald’s has said it will soon be opening McCafes and adding coffee bars across China” (theindependent.co.uk, 2010). This suggests that the café culture is set to be evermore influenced by western culture as China is to be targeted by big American brands like Mc Donalds and Starbucks.

Nevertheless, “Shanghai has no shortage of chain coffee shops; you can’t walk far without coming across a Starbucks, Jamaica Blue, or Coffee Bean and Tea Leaf. These places are perfectly fine, but they lack the charm and individuality of independent coffee houses.” (Global Times, 2012). This suggests that in order for cafes to survive and thrive in modern Shanghai they need to be differentiated as much as possible from competitors, cafes will need to stand out from the rest and would benefit from targeting a particular niche or segment of the market, as the big coffee chains/ cafes like Starbucks don’t.

CAFE CULTURE IN CHINA CONT.

According to the Mintel report, 2012, “coffee is the top drink consumed by consumers at cafés - with 69% of consumers who visit cafés claiming to drink this while there. This is followed by Fruit Juice (39%), Iced Coffee (35%), Tea Drinks (23%) and Chocolate Drinks (19%)”. It is therefore very important to diversify the drinks range available to consumers, as competitors on the market are offering a wide range of products that will inevitably change the way or what Chinese consumers drink at a café.

The modern café culture has also changed the way ancient traditional drinks are brought and consumed in China. “Café chains have begun to sell Chinese tea, as well as coffee, posing a threat to the traditional teahouses” (Mintel Report, 2012). This suggests that due to convenience and price consumers have little brand or company loyalty.

The Mintel Report, 2012 suggests the main reasons why Chinese consumers visit a café: - Good quality food on offer - The beverages on offer - Ambiance and atmosphere - Hygiene standards - Price - Brand name

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LUXURY MARKET IN CHINA

China is the soon-to-be largest consumer market of luxury goods in the world (Li, Li & Kambele, 2012, 1516)

China is one of the fast growing countries throughout the world, luxury brands and companies are expanding rapidly in china towards Chinese’s luxury consumer’s demand. The main factors creating this buzz for the Chinese consumers is to look good and fashionable, so as wearing luxury brands has become the way for Chinese consumers to reflect their wealth.

“The steady shift from a conscious Chinese spender to a luxury consumer has set predictions that China will become the world’s largest luxury goods market by 2020, according to CLSA.”(WGSN 2011:online).

As illustrated by the macro-external analysis above, “China is the soon-to-be largest consumer market” of luxury goods in the world (Li, Li & Kambele, 2012, 1516), which suggests that the Chinese are defiantly in favour of the accelerated luxury culture developing in China. “Chinese consumers are increasingly brand aware, and they intend to invest in luxury fashion brands” (Li, Li & Kambele, 2012, 1516). Nevertheless the attitudes towards purchasing luxury products in China has changed “There’s a clear shift from logo brands towards high-end and absoluteluxury brands in China,” (Evans, Hodgson & Mesco, 2012). This depicts that the Chinese demand prestige and heritage in the brand of the product they wish to purchase.

This suggests that due to the different demographic majorities in the luxury markets between China and the west, in the long term the product demands (with regards to style and taste) in China will differ.

The luxury culture in china is predominantly based upon “brand consciousness, social comparison and fashion innovativeness” (Zhanga & Kim, 2013, 68). This suggests that luxury consumers in China have become more critical and selective of luxury design which has increased the Chinese standards for what they desire, hence making the luxury market and culture in China much more sophisticated.

FIG 7 CHINESE LUXURY CONSUMER

The luxury culture within shanghai is predominantly determined by generation Y and Z consumers as “Chinese luxury consumers are significantly younger than their counterparts in the west”.

(Evans, Hodgson & Mesco, 2012). One of the key factors for brand success is to pay attention to consumer movements and interests, and luxury brands are acknowledging this market and keen on getting involved in this demand for luxury. As luxury goods brands continue to expand in China, Chinese consumers are adapting and becoming more accustomed to high quality purchases.(WGSN 2011:online) 32

TARGET CONSUMERS

FIG8 CHINESE LUXURY CONSUMER PORFILE

To be successful in luxury market in China, company must take customer first, it may attract new potential customers and attract customer from rivals, and to provide a greater value to keep customers. From a demographic perspective, it would appear that consumers of space café launch in Paul Smith flagship store trend to be female, younger and more affluent then those who do not interact with the brand.

It is important to identify target consumers, as well as target consumer profile, by an informal interview with Chinese people who fall into the target consumer of Paul Smith. Space café’s target market is base from age group 30 + female and young Middle to high class consumers in China.

Age: 24

Profession: Housewife, model, fashion clothing shop owner Magazine and newspapers: popteen, vogue, Harpers Bazaar, Elle

Consumer Porfile:

Rukii Chen

She also shops: Hermes, Chanel, Paul Prada,Van clef and Cartier

Smith,

Celebrities: Fan Bingbing, Madonna, Paris Hilton and Kim Kardashian

What she likes: Having lunch with her friends, high end fashion, holidays with the family, social gatherings, taking care of her kid.

What she dislikes: Crowed shops, bad customer service tube at rush hours and bad manners.

WHY NOW? There are many contributing factors that will influence the reasons for developing Space café, the first reason being that Paul Smith is already diversifying its company its retail stores in Shanghai, “Paul Smith aims “to open 20 stores in China over the next five years”. (Felsted, (ft.com), 2012). This will help catalyse brand awareness of the Space café as it co-brands with its parent company.

The technology sector is changing fast and it is only a matter of time as more cafes/ coffee shops are offering technology facilities like Wi-Fi. By offering consumers to use touch pads and the alike, this illustrates one step up to offering new technology services within the hospitality and catering sector.

China’s population has started to buy luxury products based on their quality and design rather than their popular brand name. As Paul Smith is not as well known in China compared to European competitors, this venture could complement the brand.

Paul Smith has the perfect opportunity to develop Space cafe under Shanghai’s current economic climate and growing luxury product market. Nevertheless, competition in all the luxury sectors in shanghai are increasing as demand increases, also more younger women (target market) are starting to spend more on luxury products in shanghai.

Although the product/ service offered are a luxury café, its brand equity and technology resources will set it apart from other luxury restaurants in Shanghai. Furthermore, it is recommended that the social media should me used to market the café and the customer service offered should be personalised and customized

FIG9: Space Cafe logo

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CONC

THE CO

CEPT

ONCEPT

BRAND COLOUR PALETTE

THE LOGO

FIG 10 PAUL SMITH BRAND COLOUR PALETTE

The communication of the café for Paul Smith brand with the consumer needs to be consistent with new innovation in order to promote the experience and their purchase.

This is initially done through the development of a logo and Paul Smith’s brand colour palette, by under-taking these colours to develope futher products. which can be applied to a number of different Medias.

This is an Paul Smith’s brand colour palette.

By creating this colour palette this will be taken as an inspirational palette in logo design, interior and visuals outcome.

‘’The best way a logo can successfully communicate a company’s message is with versatility. A good logo must be effective in one or multiple colours and able to appear in numerous sizes and in a variety of media.

It may simultaneously need to be clear on a fax, small on a business card, huge on a billboard. And digital on a website.’’(Sayles 2003:p.g.7).

FINAL LOGO

CAFE LOGO DEVELOPMENT BRAND PALETTE

TEXT LOGO

DESIGN ELEMENT FIG 11 LOGO DEVELOPMENT MOODBOARD

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PRICE The price range of the Paul Smith Interactive Technology Café will vary dramatically, and it would not be feasible to list predicted or estimated prices on this report. However to gain some idea on comparing the Space Café price with an average price of the same type of food, it will then be approximately 7 times the average cost of whatever the food/drink may be.

PLACE Recent reports suggest that a Paul Smith is creating a “5,000-square-foot flagship store in Shanghai which - like the rest of the roll out - will be overseen by ImagineX, the sister company of Hong Kong department store Lane Crawford” (Vogue. co.uk, 2012), which suggests that the Space Café should be placed as near as possible to this store.

On the other hand there are many other locations where the Space Café could be located “Pudong is the richest postcode in Shanghai, followed

by Changning District, which is also the richest postcode in Puxi”. (Herun Report, 2012).

In store experience is key to the brand perception of the company and “is proving increasingly important in this market as the key touch point for consumers making decisions about buying luxury” (Atsmon.Y, Ducarme. D, Magni. M, Wu. C, 2012, 8). This suggests that many factors other than the product come in to play when marketing a luxury product, for instance the customer assistant, the decoration/ style/ interior of the restaurant/café. Yet again personalization and customization come to the forefront of developing the company brand. “For ultra-wealthy consumers providing a VIP shopping experience, with private rooms and dedicated salespeople, is essential, as is establishing effective customer relationship management programs”. (Atsmon.Y, Ducarme. D, Magni. M, Wu. C, 2012, 8).

The interior decoration of the café/ restaurant is a crucial part of any luxury café or restaurant. With reference to Modern Arts Desserts, a successful luxury dessert producer and distributor, “Our rule is that we only make things for the cafe that are on display at the museum. That means things are always changing, things are always coming up and coming down, and so it’s really pushed us” to keep constantly innovating, she says. “We’re not able to get lazy and have the greatest hits on the menu.” (Glenn. H, 2013) This suggests that Space Café must constantly innovate the interior of their restaurant and the aesthetics of specific beverages to keep customers intrigued and coming back for more.

In China it has become more evident that, “Retail environments are becoming “themed brand stores” that serve as temples of socialisation; places where people don’t just pass through, but immerse in a world where they’ll stay, explore, have fun, meet others with the same passion, even learn – and do it with style”. (Escalera. K. W, 2013). This suggest that the place (distribution and operation) of offering the personalized and customized service to the consumer must stay in line with the Paul Smith ethos. “An exceptionally important touch point for Chinese consumers as they make decisions about buying luxury products is the experience they have in a store”.

(Atsmon.Y, Ducarme. D, Magni. M, Wu. C, 2012, 25)

Although the quality of the product (in this case the food/ drink) and the use of technology within a Space Café is of high importance, the most significant aspect of influencing the consumers choice to purchase an item is “the in-store experience – their evaluation of products they bought in the store, conversations they had with store salespeople, the notice they took of products in store windows, demonstrations of products they saw in a store, or their perusal of an in-store catalog or video display”. (Atsmon.Y, Ducarme. D, Magni. M, Wu. C, 2012, 25)

FIG 12 AESTHETIC INTERIOR MOODBOARD

Aesthetic Interior MoodBoard

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CAFE STORE MOCK UP

The mock-ups of the Space café will be a hybrid of both futuristic technologies mixed with Paul Smith brand’s tone of voice, by using Paul Smith’s original colour palette to create a modern, fashionable, more female approach.

FIG13: Space Cafe interior mock-ups

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COMMUNICATION STATEGY The best way to promote the Space cafe is through social media and spread by the words of mouth, since it is heavily intertwined with the technology aspects of the café. ‘’To engage China’s young luxury consumers, digital is key, most luxury brands are still in the digital stone age.’’ (Jing Daily 2012: Online). However, it is important to mention that specific social media’s like Facebook and YouTube are either illegal or restricted in Shanghai, which means promotion via social media will be through Chinese social medias which means that it won’t be as global as Facebook, where people from across the world are able to access the same information.

Examples of Chinese social media include: -Sina -Weibo -Youku -Jiepang

Nevertheless, by using Chinese social media (the most popular one) the Space cafe will be able target specific Shanghai consumers to promote products and service, and form a customer relationship. “the use of data, from online and offline consumer transactions, social media, marketing campaigns, and call centers—enabling retailers to improve the effectiveness and efficiency of their marketing and merchandising capabilities.” (Atsmon.Y, Ducarme. D, Magni.

M, Wu. C, 2012, 33)

By practicing social customer relationship management with customers via social media, it will enable Paul Smith to obtain vital market research to improve customer service, their product lines and their brand equity.

It is important that all of the Paul Smith Interactive Technology Cafe social media accounts advertise and explain the company vision and mission statement. Also it would be beneficial to explain the logistics and operations that may take place within the café, as well as other different aspects.

All the different social media used should be linked to the Space Café website, to which that is linked to the main Paul Smith website. The main website is of great importance as “many brands have invested heavily in their online sites, attempting to recreate aspects of the in-store shopping experience. Catwalk shows, social networking features, product rotations, virtual personal shoppers, and a high level of service are common features”. (Doran.S, 2013). It would also be beneficial to replicate as much of the contents of the website on to the different social media or even in the Space Café, “But in luxury in particular, brands should fit their CRM programs to surprise and impress their customers with personalized and exclusive offerings. Once they have gained a more granular understanding of their customers, they can better engage with them. Starting small, with a few initiatives offering high impact pampering, is often the best way to go”.

(Atsmon.Y, Ducarme. D, Magni. M, Wu. C, 2012, 33) All social media accounts should be linked to related/complementary organisation WebPages that will reflects the 3 main aspects of the Space Café.

SWOT ANALYSIS 1.Luxury hospitality and catering blogs, promotional sites, etc 2.High-tech enthusiast sites, blogs and promotional sites 3.Designer fashion complementary sites

The different aspects of this venture allow it to be advertised in three different industries; the designer/luxury fashion industry, the hospitality and catering industry and the high-tech sector, all of which in turn will allow a great amount of advertising.

Due to the nature of the enterprise it would make sense to predominantly advertise on social media, as this is a high end luxury product/ service it would be pointless to advertise on radio and TV, where most of the mass audience is working class.

Entities that need to be promoted: -The technology aspect of the café: what technologies are available in the café and how do they function?

-What food and drinks are sold at the café and what are their prices. Furthermore, how do clients customize their food/drink -The logistics of how service is provided within the café

Strengths As mentioned earlier the Paul Smith brand awareness and equity will lead to catalysing the number of consumers Space Café has. Along with the brand equity Space Café is likely to have financial backing from the main Paul Smith Company in order to help promote and brand the new venture. Other strengths include the uniqueness of this business venture, a luxury/ designer restaurant that supports a strong network of interactive technology.

Weaknesses The main weakness includes the lack of experience Paul Smith the company has with developing a restaurant/ café. The brand awareness of Paul Smith may not be as strong as other designer/ luxury brands so there is a chance that some Chinese consumers may think that the Space Café is an overpriced restaurant.

Opportunities As the Chinese economy and the luxury market grow, there will be a large enough market for Paul Smith and its spin off brands like Space Café to dominate. This in turn will allow Paul Smith and to offer a greater product range to the Shanghai luxury market Threats The major threat to Space Café are the government laws and regulations such as tax by increasing the price of Paul Smith products.

44

INTERACTIVE MENU MOCK-UP

ABOUT ME

FASHION SHOW

WHAT’S NEXT

DIY

ORDER

FIG14 : Interactive menu mock-up 1

This interactive menu allows customers to glace through Paul Smith’s history, fashion shows, future trend of Paul Smith, ordering food and DIY/personalize your own dish, it also allows customers to purchase clothings and products too.

After customers DIY/personalize their own food, this table will uploaded on to social Space cafe’s application, in order to attract other potencial consumers to come in to experience.

FIG15 : Interactive menu mock-up 2

AFTERNOON TEA DRINKS

46

INTERATIVE DIY/ PERSONALIZE MENU MOCK-UP

DIY Your own course

Your Choice

Special Customize Order >

FIG16: DIY Menu mock up

SALMON

FIG17: Space cafe application mock-up

SPACE CAFE APPLICATION MOCK-UP

48

FIG18: Weibo offical mock-up

WEIBO OFFICAL PAGE MOCK-UP

SOCIAL NETWORK (JIE PANG) APPLICATION MOCK-UP

FIG19: JiePang social platform mock up

The Jiepang Network is a Chinese location-based social networking service for mobile devices, such as smartphones. Users “check in” at venues using an application or a mobile website by selecting from a list of venues the application locates nearby. Location is based on GPS hardware in the mobile device or network location provided by the application. Each check-in awards the user points and sometimes “badges”.

This is an ideal mock-up for Space Cafe, in order to increase awarness.

50

CON

CONCL

NCLU

LUSION

FIG20: Space cafe logo

DIY Your own course

The overall aim for the report was to launch a café in Paul Smith flagship store in Shanghai to provide Paul Smith with an exciting and interactive digital strategy, driven by a commercial imperative, to touch and interact with their target and potential market and to increase Paul Smith’s brand awareness. This strategy would give Paul Smith a strong position over the Chinese luxury market. Paul Smith was chosen because this is a second attempt in to China. ‘’Paul Smith, the fashion label famed for its use of colorful stripes, is to try to crack the Chinese market – for the second time.’’(Telegraph 2012: Online)

You Cho

SALM

Special Customize Order >

The interactive café for Paul Smith called Space café, was created, which had provided an innovative way that Paul Smith can build up their brand awareness throughout China, by physically reaching out and touching new and existing consumers through the idea of a café.

ur oice

case studies of what other companies have done to reengage with their consumers and the primary research itself, it would appear that the change which may benefit Space café the most is that of the tone of voice of the café.

The ability to identify the new ’digital native’ consumer who has appeared from “the generation most strongly shaped by the digital revolution” (Marshal-Johnson 2011, WGSN) will allow Paul Smith to create a forward thinking. Space café is aimed towards young digitally savvy consumer.

MON

FIG21: INTERACTIVE DIY MENU

Although Space café aimed to take a concentrated technology interaction approach towards the brand, such as interactive menu with personalization and applications to engage consumers towards the brand, the majority are interested in Space café, due to the brand, social and new shopping experience. Having considered the

54

REFE

REFER

EREN

RENCE

INTRODUCTION (Jones, 2010) (Daily, 2012)

METHODOLOGY

(Saunders et al, 2012)

BIG IDEA

(Forbes.com, 2012)

THE MARKET

(Atsmon, et al, 2012, 22) (Herun Report, 2012) (Vogue.co.uk, 2012) (Bain & Company Report, 2012, 2) (Felsted, (ft.com), 2012) (The Wealth Report, 2012, 17) (Atsmon, et al , 2012, 18) (Felsted, (ft.com), 2012) (Daily, 2012) (Design& Trend 2013: Online) (WGSN 2013: Online) (The verge 2013: Online) (Doran, 2013) (Bain & Company Report, 2012, 36) (Bain & Company Report, 2012, 37) (Kim & Kim, 2005, 549) (Mintel Report, 2012) (Chang, 2012) (stanhopechina.com, 2013) (theindependent.co.uk, 2010)

(Global Times, 2012) (WGSN 2011:online) (Li, Li & Kambele, 2012, 1516) (Evans, Hodgson & Mesco, 2012) (Zhanga & Kim, 2013, 68).

(Felsted, (ft.com), 2012)

THE CONCEPT

(Sayles 2003:p.g.7) (Vogue.co.uk, 2012) (Herun Report, 2012).

(Atsmon, et al, 2012, 8) (Glenn, 2013) (Escalera, 2013) (Atsmon, et al, 2012, 25) (Atsmon, et al, 2012, 33) (Doran, 2013) (Atsmon, et al, 2012, 33) (Felsted, (ft.com), 2012).

CONCLUSION

(Telegraph 2012: Online)

(Marshal-Johnson 2011, WGSN)

Bibliography Atsmon. Y, et al, Luxury Without Borders: China’s New Class of Shoppers Take on the World The McKinsey Chinese Luxury Consumer Survey, McKinsey Consumer & Shopper Insights, 1-40 Bain & Company Report, 2012, 2012 Luxury Goods Worldwide Market Study (11th Edition), 1-47

Chang. L, 2012, Coffee break in tradition, China Daily, [online] Available at: http:// www.chinadaily.com.cn/cndy/2012-10/13/content_15814858.htm [Accessed: 19th April 2013] Daily. J, 2012, Social Media Explosion Gives Brands A Second Chance In China, [online source], Available at: http://www.jingdaily.com/social-media-explosion-givesbrands-a-second-chance-in-china/20439/ [Accessed: 23th April 2013]

Doran. S, 2013, How Social Media & Luxury Brand Websites Are Impacting eCommerce, [Online] Available at: http://luxurysociety.com/articles/2013/02/ how-social-media-luxury-brand-websites-are-impacting-ecommerce [Accessed: 21th April 2013] Escalera. K. W, 2013, 4 Luxury Marketing Ideas for 2013, luxurysociety.com, [online] Available at: http://luxurysociety.com/articles/2013/01/4-luxury-marketingideas-for-2013 [Accessed: 23th April 2013]

Evans. P, Hodgson. J & Mesco. M, 2012, China’s Luxury Market Shifts Upscale, [online] Available at: http://online.wsj.com/article/SB1000087239639044361580457804 2151914543218.html [Accessed: 23th April 2013] Felsted.A, (ft.com), 2012, Paul Smith upbeat about China return, [online] Available at: http://www.ft.com/cms/s/0/bd256f46-ee18-11e1-a9d7-00144feab49a. html#axzz2S7efF27H [Accessed: 2nd May 2013]

Forbes.com, 2012, How Restaurants Are Using Technology to Deliver Better Customer Service, [online] Available at: http://www.forbes.com/sites/caroltice/2012/12/07/ how-restaurants-are-using-technology-to-deliver-better-customer-service/ [Accessed: 1st May 2013]

Glenn. H, 2013, ‘Modern Art Desserts’: How To Bake A Mondrian In Your Oven [online] Available at: http://www.npr.org/blogs/thesalt/2013/04/15/177317449/ modern-art-desserts-how-to-bake-a-mondrian-in-your-oven [Accessed: 1st May 2013] Global Times, 2012, Café Culture: Shanghai’s Best Independent Coffee Shops , Global Times Community, [online] Available at: http://community.globaltimes.cn/forum. php?mod=viewthread&tid=6783 [Accessed: 9th April 2013]

Herun Report, 2012, Hurun Shanghai Wealth Report 2012, [online] Available at: http://www.hurun.net/usen/NewsShow.aspx?nid=217 [Accessed: 2nd May 2013]

Jones. D, 2010, The MT Interview: Sir Paul Smith, Management Today, [online] Available at: http://www.managementtoday.co.uk/features/1037924/ [Accessed: 1st May 2013] Kim. H & Kim. W.G, 2005, The relationship between brand equity and firms’ performance in luxury hotels and chain restaurants, Tourism Management, Vol. 26, 549–560 KPMG Report, 2007, Retail – Luxury Brands in China, Consumer Markets, Monash University-Business & Economics, 1- 31

Li. G, Li. G & Kambele. Z, 2012, Luxury fashion brand consumers in China: Perceived value, fashion lifestyle, and willingness to pay, Journal of Business Research, Vol. 65, No.1, 1516–1522 58

Mintel Report, 2012, Café outlets in China double over past five years as Chinese consumers develop a taste for coffee culture, Mintel Oxygen Reports [online] Available at: http://www.mintel.com/press-centre/press-releases/1006/cafe-outletsin-china-double-over-past-five-years-as-chinese-consumers-develop-a-taste-forcoffee-culture [Accessed 1th May 2013]

Moore. C. M, Doherty. A. M, Doyle. S. A, 2008, Flagship stores as a market entry method: the perspective of luxury fashion retailing, European Journal of Marketing, Vol. 44 No. 1/2, 2010, pp. 139-161 Stanhopechina.com, 2013, Café Culture Study, Stanhope China Ventures, [online] Available at: http://stanhopechina.com/projects-page/cafe-culture-study/ [Accessed: 21 April 2013]

The Berkeley London, 2013, www.the-berkeley.co.uk [online] Available at: http:// www.the-berkeley.co.uk/fashion-afternoon-tea/ [Accessed: 17th April 2013]

The independent.co.uk, 2010, Coffee culture continues to take root in China, [online] Available at: http://www.independent.co.uk/life-style/food-and-drink/coffeeculture-continues-to-take-root-in-china-2143454.html [Accessed: 25th April 2013] The telegraph.co.uk, 2012, Paul Smith returns to China, Finance news, [online] Available at: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9267420/Paul-Smith-returns-to-China.html [Accessed: 25th April 2013] Vogue.co.uk, 2012, Smith in Shanghai, Vogue News, [online] Available at: http:// www.vogue.co.uk/news/2012/05/16/paul-smith-shanghai-china---chinese-storeopenings [Accessed: 22 April 2013] Wealth Report, 2012, The Wealth Report 2012 – A Global Perspective on Prime Property and Wealth, Knight Frank. 1-68

Zhanga. B & Kim. J, 2013, Luxury fashion consumption in China: Factors affecting attitude and purchase intent, Journal of Retailing and Consumer Services, Vol. 20, 68–79

LIST OF ILLUSTRATIONS COVER IMAGE: Paul Smith design [online] Available from: http://twtrland.com/profile/paulsmithdesign FIG 1: Paul Smith Foral street [online] Available from: http://www. urbanjunkies.com/london-top-10-guide/shops/paul-smithfloral-street.php FIG2: Paul Smith Brand Mood board [own moldboard]

FIG3: Heritage meets digital in new flagship Burberry store [online] Available from: http://www.creativereview.co.uk/crblog/2012/september/burberry-mixes-heritage-with-digitalhigh-tech-in-new-london-store FIG4: Heineken’s ‘Smart’, ‘Club’ and ‘remix your future’ bottles lgnite the magazzini pop-up space in Milan [online] Available from: http://popsop.com/62077 FIG5: So Dior: Harrods, London [online] Available from: http:// www.businessoffashion.com/2013/04/looking-back-at-diorsmega-sized-harrods-pop-up.html FIG6: Fab Café Tokyo [online] Available from: http://www.theverge.com/2013/3/22/4130250/tokyo-cafe3d-prints-its-customers-as-gummi-sweets

FIG7: Chinese luxury consumers [online] Available from: http://iheartthreadbared.wordpress.com/2012/02/14/ chinese-luxury-consumer/

FIG9: Space café logo [own develop logo]

FIG 10: Paul Smith brand color palette [own mood board]

FIG 11: Logo development mood board [own mood board] FIG 12: Aesthetic interior mood board [own mood board] FIG 13: Space cafe interior mock-up [own mock-up] FIG 14: interactive menu mock-up 1 [own mock up] FIG 15: interactive menu mock-up 2 [own mock up] FIG 16: DIY menu mock up [own mock up]

FIG17: Space cafe application mock-up [own mock up] FIG18: Weibo offical mock-up [own mock up]

FIG19: JiePang social platform mock up [own mock up] FIG20: Space cafe logo [own mock up]

FIG21: Interactive DIY menu [own mock up]

FIG8: Chinese luxury consumer profile [own mood board]

60

APPE

APPE

ENDIX

ENDIX

4850 WORDS

I confirm that this work has gained ethical approval and that I have faithfully observed the terms of the approval in the conduct of this project.

This submission is the result of my own work. All help and advice other than that received from tutors has been acknowledged and primary and secondary sources of information have been properly attributed.

Should this statement prove to be untrue I recognise the right and duty of the board of examiners to recommend what action should be taken in line with the University’s regulations on assessment contained in its handbook. signed .................................................................................................................... date .......................................................................................................................

APPENDIX 1

ETHICS: QUESTIONNAIRE INTRODUCTION

Dear Participants

Thank you for deciding to take part in my survey.

I am a final year student at Nottingham Trent University and the purpose of the survey is to collect primary research for my final year dissertation on effectively responding to the digital revolution. All the results will be anonymous and will be used for educational purposes.

By clicking yes, you are agreeing that I can use the finding in my dissertation.

GENDER

AGE

Total of 69 participates, 19 female and 50 male involes in this Questionniar

44 at the age of 18-25, 19 at the age of 25-36 and 6 at the age of 37+involes in this Questionniar 18-25 37+

28%

28%

72%

9%

Do you know the brand Paul Smith?

25-36

80%

20%

64% YES

NO

14 know paul smith and 55 do not know

One word to describe your impression of Paul Smith colourful Strips Graphic Union jack Fashionable Original 012345

Have you ever shoped in Paul Smith?

YES NO 5 2 2 1 1 1 1 1

14 55

Beyond fashion clothing and lifestyle range from Paul Smith, what else does it attract you to come in to Paul Smith?

20% 10 people said Interior

80%

2 people said ‘N/A’ 2 people said environment

What in-store interior you like/dislike about Paul Smith?

vintage It's like a home English like theme

Will you be interested if Paul Smith launch a cafĂŠ in shanghai?

18-25

Confortable, like home

25-36

9%

i love the atmosphere and it mixed traditional with fashion elements Traditional, I suppose

60%

Because it's like a home inviting and welcoming

very classy

home like interior, very cosy

I like it but I would expect more innovation from such a respected brand

traditional design

i think paul smith could do much better instore enviornment

i dont like it, because its too vintage

Would you find it interesting if Paul smith cafĂŠ in shanghai, has a new experience way of shopping integrates with interactive technology?

62% 7%

how they display their product and interior

YES

NO

APPENDIX 2

ETHICS: INTERVIEW INTRODUCTION

I am Katherine Chen and as part of Fashion, Communication and Promotion course. I am undertaking research into the brand Paul Smiths target consumers and their thoughts on Paul Smith and their aspect of the brand extension of Paul Smith cafĂŠ.

The interview will be a focused on a couple of questions and will take approximately 5 minutes. We will concentrate on the following: Your consumer connection with Paul Smith, your current opinions on this brand and the brand extension of Paul Smith cafĂŠ.

The interview will be taped and transcribed, and should you want a copy of the transcription please ask me and I will arrange for one to be sent to you.

The information you give me will be used in support of my work and will be written up in my dissertation. Anything you say will be treated with the strictest confidence and your contribution to the discussion will not be attributed to the discussion will not be attributed to you as an individual, what you said will be used for illustration only; to reinforce a point that I am making.

The tapes will be kept in a locked room and the transcripts on a password protected computer. Both will be destroyed once I have completed my degree and graduated.

Jennifer Chiu 1.What is your name?

My name is Jennifer

2. What is your age?

I’m 21

3.Do you shop at Paul Smith?

Sometimes,

4. Why do you shop at Paul Smith?

Because I like the perfume very much and the interior is quite good.

7.If there’s a Paul Smith café in this flagship store, will you be interested?

Oh really, that would be great, I actually I to go into café’s very much, and I think when the customers went in shopping, whenever their tired they could just sit down and have a coffee.

8.Will you be interested in an interactive technology in a café?

OH… that is such a great idea, that would be interesting, because I love going in to café’s and having afternoon teas in London and Nottingham, and I haven’t seen this before, so it would be quite interesting.

5. One word to describe Paul Smith Paul smith is quite classy

6.Beyond fashion clothing and lifestyle range from Paul Smith, what else does it attract you to come in to Paul Smith?

Because this Paul smith shop was the first ever in the world, so this gave me a special reason for me to come in to this shop.

LINK: http://www.youtube.com/watch?v=rrQFGrZ6bUU

Sam & Robin 1.What is your name?

I’m Sam and this is Robin.

2. What is your age?

18 and 19 years old

3.Do you shop at Paul Smith?

Sometimes,

4. Why do you shop at Paul Smith?

7.If there’s a Paul Smith café in this flagship store, will you be interested?

No, not really. Just here more for clothes, but yeah…. If it was a good café, yeah, I will come.

If they fit in nicely, and fit the theme well.

8.Will you be interested in an interactive technology in a café?

Yes, that would made the café more interesting, I would be more likely to go.

Because they got good clothes there, good quality clothes, good cuts and not just dull clothing, its right out there.

5. One word to describe Paul Smith Extravagant

6.Beyond fashion clothing and lifestyle range from Paul Smith, what else does it attract you to come in to Paul Smith?

The shop itself it’s a lovely old building and its tasty decorated, well furnished, good staff and helpful.

LINK: http://www.youtube.com/watch?v=Cq4QuKP179g

Paul , Elaine and Jo 1.What is your name?

Paul , Elaine and jo

2.Do you shop at Paul Smith?

Yes

3. Why do you shop at Paul Smith?

P: I don’t know! Quite like the style of cloths E: to buy cloths for Paul Jo: they got nice tops 4. One word to describe Paul Smith P: it is sort of timeless E: very stylish Jo: stylish

5.Beyond fashion clothing and lifestyle range from Paul Smith, what else does it attract you to come in to Paul Smith?

E: it usually we would like to buy something, but it is a very attractive building, it is use a really nice use of the building.

7.If there’s a Paul Smith café in this flagship store, will you be interested?

All: yeah, yes definitely. Always wants to try a new café.

8.Will you be interested in an interactive technology in a café?

E: oh, yes P: yeah, can you slide it as well?

Katherine: yes

P: anything you can slide, I will be happy with.

LINK: http://www.youtube.com/watch?v=5m3o6QzxVdA

PAUL SMITH CUSTOMERS CONSENT FORMS

APPENDIX 3

ETHICS: QUESTIONNAIRE INTRODUCTION

Dear Participants

Thank you for deciding to take part in my survey.

I am a final year student at Nottingham Trent University and the purpose of the survey is to collect primary research for my final year dissertation on effectively responding to the digital revolution. All the results will be anonymous and will be used for educational purposes.

By clicking yes, you are agreeing that I can use the finding in my dissertation.

Brand Awareness

31%

Quality

Price

28%

Design&style

36% 4%

Status makers

43%

Make social relationships with others 6%

Hedonic experience for myself Show off

01

02

3% 1%

Different from others 03

04

05

16%

0

APPENDIX 4

ETHICS: E-MAIL INTERVIEW INTRODUCTION

I am studying Fashion Communication & Promotion and my final year project is based around the idea of brand extensions of Paul Smith.

My project is based upon applying this idea of cafe and interactive technology mix onto the brand Paul Smith in China. Therefore I have aimed this interview not only at Paul Smith’s consumer in China, but to gain a strong insights of similar fashion industries opinions into feelings about the Chinese Market.

The interview will be taped and transcribed, and should you want a copy of the transcription please ask me and I will arrange for one to be sent to you.

The information you give me will be used in support of my work and will be written up in my dissertation. Anything you written will be treated with the strictest confidence and your contribution to the discussion will not be attributed to the discussion will not be attributed to you as an individual, what you said will be used for illustration only; to reinforce a point that I am making.

The tapes will be kept in a locked room and the transcripts on a password protected computer. Both will be destroyed once I have completed my degree and graduated.

VICTOR PORTER E-MAIL INTERVIEW

1.Could you possibly tell me a little bit about your company?

You can check out our company info on http://www.murster.com/ 2.What is your position of the company?

COO

3.Why do you choose China?

China has one of the biggest spending power on luxury brands. We believe it has the biggest ROI if you play your cards right.

4.What do you think of the Chinese market?

The Chinese market is huge. If you can gain product loyalty here, you can have no problem making a profit.

5.What is the consumer behavior like in China? ( In terms of luxury market?)

Consumers here do not follow the same trend as western markets.

Older people are willing to spend money on anything that they believe to have quality and reasonable price. Younger people are willing to spend money on products with strong branding, regardless of quality.

FEATURE DIRECTOR - BLOOMBERG TAIWAN E-MAIL INTERVIEW

1.Could you possibly tell me a little bit about your company?

Feature director of Bloomberg busnissweek traditional chinese version.

2.What is your position of the company?

The Chinese market is a big market in expansion accompanied by accelerated growth in its economy that has been driven by huge domestic demand.

3.Why do you choose China?

The spending habits of the Chinese consumers are segregated geographically. For instance, the entrepreneurs from the Zhe-Chiang district, cities from the west such as Cheng-Du or Chong-Ching consume more boldly. Whereas Beijing, the capital city, are more concentrated politically, hence the consumption are more related to public spending.

In comparison to the aforementioned cities, Shang-hai demonstates a more logical and efficient spending habit as the city is more economically driven, for instance, by the working class consumers such as business managers.

4.What do you think of the Chinese market?

Consumers in China tends to prefer luxuries such as Louis Vuitton (LV), Gucci, Chanel, Hermes...etc, that immediately demonstate signs of wealth and power of their socio-economic status which unlike other foreign countries, who prefer low profile and less attention.

5.What is the consumer behavior like in China? ( In terms of luxury market?)

The luxuries in China are currently being over-priced. Anti-corruption and the fight for frugality set by the Prime Minister has assisted in decreasing the sales rate of luxury products, nonetheless, the market stays positive in the long term and consumers are believed to behave more radically

School of Art & Design

ba

fcp3

Tutorial Record Sheet 2012/13 Module: Research Project Stage 2 Ref. no: FASH30002 Date: 25 March 2013 Name : Katherine Chen

Tutorial / Seminar Record Sheet Work to bring / prepare for session: -Big idea of Paul smith café to launch in Nottingham - Using interactive technology in the café - Paul Smith questionnaire and Café questionnaire -interview Paul smith consumers in Nottingham

Learning issues to discuss in session:

TUTORIAL RECORD SHEETS 25 March 2013

-why launch in Nottingham?

-visual out comes?

-where to find my target consumers?

Feedback from session: -Looking in to case studies -interview industries -understands my consumer group

Tasks for next session: -visuals outcome idea -case studies - target consumer -Identify big idea, where to launch Paul Smith café

Please indicate progress to hand in (1 = Not ready / 5 = Ready and Prepared) 1 2 3 4 5 Signed (Tutor) Signed (student)

Katherine Chen

School of Art & Design

ba

fcp3

Tutorial Record Sheet 2012/13 Module: Research Project Stage 2 Ref. no: FASH30002 Date: 12 April 2013 Name : Katherine Chen

Tutorial / Seminar Record Sheet Work to bring / prepare for session: -Case studies ( ralph Lauren 4D experience, Burberry Flagship store interaction experience) -Pop-up store -Big idea Learning issues to discuss in session: -what is so great about my idea?

-communication as a brand -culture calendar - how data could become art -look at Marc Jacobs FW2013 runway (Idea from tate modern: artist Alison) -what’s going on visual exhibitions? Innovations? How does it connecting to one another -looking at my direct competitors, its about going in to another area -What’s going on visual trends?

Feedback from session:

TUTORIAL RECORD SHEETS 12 April 2013

-Research (primary, secondary research) - original -social contextual -no tourist information guide -why is this quote strong?

-Critical thinking (Don’t quotes stack, writings, more about your own writing -Spend time with consumer(More detail) -Visually communication, learning outcome -Methodology: not an slow and tell (critically) -product and cost (try looking up in industry) -Bloggers(people who blog around your area) -Rationalize that -more pierioring (attack more female consumer) - how could I justified it for my project -change location from Nottingham to China (larger Market) or maybe in London -Looking into Technology trends Tasks for next session: -visuals outcome idea -case studies - target consumer -Identify big idea, where to launch Paul Smith café

Please indicate progress to hand in (1 = Not ready / 5 = Ready and Prepared) 1 2 3 4 5 Signed (Tutor) Signed (student)

Katherine Chen

School of Art & Design

ba

fcp3

Tutorial Record Sheet 2012/13 Module: Research Project Stage 2 Ref. no: FASH30002 Date: 25 April 2013 Name : Katherine Chen

Tutorial / Seminar Record Sheet Work to bring / prepare for session: -details from presentation -Problems: Paul Smith wasn’t that popular in China, but café are. (Halo effect) -China VS western culture -merge food and fashion (customization (DIY) own dish -fashion x technology trends(Burberry) -new way of shopping (new shopping experience) -consider of social space in China -2 platform (In-store experience, application) -Brands transparency for the café(through one platform, brand history, brand heritage, Marco trends of 2015) -Promotion: social media to link through the platform, tracing the product journey and story telling Brand stories, positing pictures of food and drinks creates of storytelling, brand history Learning issues to discuss in session:

TUTORIAL RECORD SHEETS 25 April 2013

-creative out comes -chinese luxury culture trends -Café culture trends -Chinese people’s social space - not too obvious case studies Feedback from session: -Merge things for technology in fashion -Art in technology -Blogger (Social space) -afternoon tea x food quotes case studies -what cultural, social and global going on -case studies of people I admire, validate it’s a cool thing -context around my interactive table -how to find and meet Chinese customers (analysis how?)

-questioning my visuals -Journey of my idea -Decision making process -how do I built up my idea -identify consumer, new way -Communication of the café, (name, logo?)

-how to communication to café?

Tasks for next session: -

Visuals outcome outcomes case studies target consumer Identify big idea, where to launch Paul Smith café how to communication to cafes

Please indicate progress to hand in (1 = Not ready / 5 = Ready and Prepared) 1 2 3 4 5 Signed (Tutor) Signed (student)

Katherine Chen

School of Art & Design

ba

fcp3

Tutorial Record Sheet 2012/13 Module: Research Project Stage 2 Ref. no: FASH30002 Date: 1 MAY 2013 Name : Katherine Chen

Tutorial / Seminar Record Sheet Work to bring / prepare for session: -Paul Smith café logo -interior mood board -café culture and luxury culture -interactive menu mock-up -Application design - visuals out comes mock-ups Learning issues to discuss in session: -Creative out comes -Chinese luxury culture trends -Café culture trends -Chinese people’s social space -case studies

TUTORIAL RECORD SHEETS 1 MAY 2013

Feedback from session: -Paul Smith logo development mood board -Analysis logo -more lifestyle -identify brand language -everything of Paul Smith style, translate - communication -Why is it Paul Smith?

-Future trends=> my next idea (Paul Smith Language) -How would they (Paul Smith) do it?(Unique way) Tasks for next session: -

Visuals outcomes case studies target consumer Identify big idea, where to launch Paul Smith café how to communication to cafes

Please indicate progress to hand in (1 = Not ready / 5 = Ready and Prepared) 1 2 3 4 5 Signed (Tutor) Signed (student)

Katherine Chen

School of Art & Design

ba

fcp3

Tutorial Record Sheet 2012/13 Module: Research Project Stage 2 Ref. no: FASH30002 Date: 1 MAY 2013 Name : Katherine Chen

Tutorial / Seminar Record Sheet Work to bring / prepare for session: - visuals out comes mock-ups -café and luxury culture -new consumer questionnaire -Japanese café with technology (case studies) -customizations Learning issues to discuss in session: -critical analysis -Analysis going to methodology -how to identify target consumer

Feedback from session:

TUTORIAL RECORD SHEETS 10 MAY 2013

-key board elements. All case studies in the main body -contextualize, take lessons of what people do -Word cloud => name ‘logo’! (Critical evaluating) -Documental => How we got there process -Space Café (social and culture) -Tech blogs, what stuff is there? Translate -Visual art element, technology spaces, chic way -Will people get into café -Mood board Paul Smith, where can you take from the inspirations from.

-critical design outcome -Promotional concept - why is the café right for now?

Tasks for next session: -

Visuals outcomes case studies target consumer Identify big idea, where to launch Paul Smith café how to communication to cafes

Please indicate progress to hand in (1 = Not ready / 5 = Ready and Prepared) 1 2 3 4 5 Signed (Tutor) Signed (student)

Katherine Chen

Ethical Clearance Checklist for individual student projects

To be completed by the student for an individual project that involves the collection of primary data this includes images, drawings, photographs, questionnaires and interviews. Please complete this document following the guidance in the School of Art and Design Ethical Guidelines and Framework for Research and Practice Undertaken by Students.

Section A: About the research

Name: Programme of Study: Module Title and Reference Number:

Name of module leader/supervisor responsible for the management of the project Duration of project Project title Section B: Training and experience

Have you had previous experience of or been trained in the methods employed to collect data, and/or discussed with your supervisor?

Have you been informed, given guidance, had issues outlined in relation to research ethics and consideration in relation to your project?

Section C: Methodology/Practice/Procedures

yes yes

no no

Does your proposed study involve procedures which are likely to cause physical, psychological, social or emotional distress to participants or yourself?

No Does your proposed study involve the use of hazardous materials, other than those currently covered by the School Health and Safety procedures? yes Section D: Ethical checklist

yes no

Does your project involve observing/questioning/the use of people in any way?

Yes Please complete the remainder of the form No Go straight to Compliance with ethical principles and Declaration Does your study involve vulnerable participants as described in the Student Ethical Toolkit? yes no n/a Does your study involve observation and/or recording of identifiable participants without their knowledge? yes no n/a Will participants give informed consent freely and be fully informed of the study and of the use of any data collected? yes no n/a Will participants be informed of their right to withdraw from the study? yes no n/a Will all information on participants be treated as confidential and not identifiable unless agreed otherwise in advance and subject to legal requirements? yes no n/a Will any recordings of participants be securely kept and not released for use by third parties? yes no n/a Will storage data comply with the Data Protection Act 1998? yes no n/a

If you have selected an answer shaded in grey, you must submit a full application to the Subject REC or modify the project. A full submission to the Subject PREC comprises of: this form, a project proposal, an additional statement of up to 500 words outlining the ethical issues raised by the project and the proposed approach to deal with these.

Compliance with Ethical Principles If you have completed the checklist to the best of your knowledge without selecting an answer shaded in grey, the research is deemed to conform with the ethical checkpoints and you do not need to seek formal approval from the Subject PREC. Please sign the declaration below, and lodge the completed checklist with your supervisor.

Declaration I have read the Ethical Guidelines and Framework for Research and Practice Undertaken by Students. I confirm that the above named investigation complies with published codes of conduct, ethical principles and guidelines of professional bodies associated with the research discipline.

Katherine Chen Name of student: ………………………………………………………………………………

Signature of student ……………………………………………………………………………….

Signature of supervisor/module leader ……………………………………………..…………………………..………. Date ………………………………………………………………..