360 Research Book

360 RESEARCH / SKETCH BOOK

To inform my 360 outcome, I have undertaken much research into the fashion industry currently as well as future possibilities for the industry. From my Brand Me, I knew I fitted into a luxury market so firstly focussed my research on this, what brands are doing currenly and what the future of this sector is leaning towards. I then looked at my consumer of Generation Z, thier wants and needs and how they will inform the future of fashion.

LUXURY MARKET LUXURY MARKET LUXURY MARKET LUXURY MARKET LUXURY MARKET LUXURY MARKET LUXURY MARKET

‘No-one knows what Luxury is anymore...’

The key to luxury is and always will be centered around an idea of exclusivity - the

feeling that not everyone will be able to get their hands on or experience whatever it is that the brand is selling. However, while this feeling is usually evoked through perceptions of quality, comfort, and elegance, the term “luxury” is evolving to encompass several additional things to consumers around the globe. “Luxury” has a different meaning today than it did to previous generations.

Globalization, combined with the disruptive impact of the internet and digital technology, is creating a much broader, multidimensional perspective on what quality, luxury, and exclusivity can be. Though high-income luxury consumers still cherish long-held concepts of luxury - such as quality, comfort, and elegance - around the world, they are doing so through the prism of a new set of aspirations and lifestyle goals.

High-end consumers use luxury purchases to differentiate themselves from peers.

While this isn’t particularly surprising and hasn’t changed much from previous generations, it was also found that today’s luxury consumers believe that not all luxury purchases are necessarily the most expensive.

In addition, luxury consumers also want to be seen as “early adopters” of new technology. For luxury brands, this means that it is becoming increasingly important to go beyond simply providing the “status quo” when it comes to the tech services they offer, so brands need to appeal to these desires by being on the cutting edge of new tech tools and applications.

Personally, I still view luxury as holding these traditional values, however, I can see that they are being somewhat lost as fashion moves forward into the future. I view luxury as having a high price point due to its quality and legacy, but I want to find out if new consumers can reconnect with luxury in its fullness and how brands are using thier traditional values in new innovations.

‘The extreme creation of value...’

HIGH END LUXURY VS LOW END LUXURY

I decided to find out the differences between the two levels of the luxury market, high end and low end to find out what each level is doing to discover which is more successful and why. From this i found my own brand sat within the high end luxury level.

High end luxury brands are built upon reputation and legacy. Their strong brand identity and heritage is what is recognisable and helped them maintain their status in the market. High end luxury brands are usually owned by one of the main groups such as LVMH, Richmont or Kering. High end luxury’s price points are usually high, ‘If a product is expensive, it is inherently exclusive,’ a value specific to this market. Exclusivity and luxury go hand in hand, making high end luxury aspirational to consumers. Consumers look up to this market and want to be a part of the community, however, many high end brands have wide product ranges spanning into beauty and fragrance to allow consumers a less expensive taste /connection to the brand. Dior for example has built a legacy on feminine and aspirational styles. Its craftmanship, quality and brand heritage is known to millions and it is instantly recognisable by design unlike lower end luxury brands as such.

On the other hand, low end luxury brands do not necessarily have the history and long standing legacy of traditional high end luxury brands. They are pitched at lower price points and have a more attainable looking lifestyle. Ganni is an example of a contemporary low end luxury brand, a scandi fashion label one key to Ganni’s success is thier pricing, giving high quality clothing and new aesthetics and access to luxury for consumers. This ideology of accessibility is what makes low end luxury popular and successful amongst younger generations. Moreover, social media is aiding the growth and popularity of these brands. With Ganni’s ‘Ganni Girl’ aesthetic drawing consumers attention and building a connection between them and the brand. The lifestyle that these brands represent are relatable for consumers and feel attainable unlike the aspirational themes surrounding high end luxury brands. With the high street dying low end luxury brands are slowing filling the gap for consumers.

WHAT IS CURRENTLY HAPPENING?

In summary, the luxury market has been truly turned upside down due to the Corona Virus Pandemic, with revenues declining 20% over 2019-2020. Despite the challenges this has caused, the market is said to increase in value from $309.6 billion in 2021 to US$382.6 billion in 2025.. Online platforms have become critical for brands to adapt to, not only in terms of e-commerce but to engage with consumers, especially the up-coming Generation Z. However, there is evidence to suggest that physical retail stores are still relevant and important today. The luxury market is currently facing challenges in many aspects and is still trying to adapt. These challenges are technological, pressure due to increasing consumer needs for sustainability as well as a changing consumer with new values.

GOING ONLINE The rise of online shopping due to the pandemic

Experience is one of of the key aspects of luxury,

has pushed the luxury sector deeper into digital

brands are moving experience online. Dior for ex-

spaces.

ample are using AR/ VR to engage consumers who couldn’t reach stores over the pandemic giving them

Luxury is the perception of extreme value, qual-

try on experience. Brands are also looking to create

ity and experience, all values that must now be

new ways of communicating and connecting with

adapted to virtual spaces. However, this is still a

consumers on platforms such as games, with Burb-

slow change for many brands who are still reliant

erry creating thier own game and brands like Gucci

on physical shopping or are unaware of the op-

teaming up with Roblox to reach consumers in virtual

portunities of digital fashion.

spaces. Brands, such as Carlings, are also looking to create clothing that is purely virtual, for consumer

In China, the largest luxury consumer, almost

avatars to wear experiencing a brand in many levels

40% of all purchases were made online in 2020

both real and digital. AI is also beinu used to improve

and it is suggested that half of all luxury purchas-

consumer experience, personalising content specific

es will be made online by the end of the decade.

to consumers. Luxury has traditionally had links to

Despite this, it is key not to allow the use of

personalisation in thier experience, suggesting this

online platforms to purchase to become purely

has taken on new meaning in a digital ages.

transactional, with experience being one of luxury’s many values this will have to be factored into the future as brands continue to adapt.

‘Digital reinvention is Luxury’s next big game changer.’

WHAT’S LEFT FOR EXPERIENCE?

Blurring online and offline is changing what consumers perceieve to be valuable, something that will be a huge factor for luxury brands to adapt to in future.

Balenciaga has fast become one of the leading streetwear brands in the fashion industry. Under the leadership of Gvasalia the brand has redefined luxury as it was known. Known for the infamous Triple S sneakers and logo t-shirts the brand has firmly established themselves at the top of the luxury market.

Despite the brands streetwear status, in 2021 Gvasalia reintroduced the brand to Couture, redefining the DNA of the brand and expressing its history in the modern day.

Speaking about Couture, Gvsalia said “[There is] sophisticated elegance...It’s quite touching to go back to the craft.” The fact that he took his very streetwear based brand back to the historical basics and origins suggests his view of craft is something that is close to him and he understands that this is also something that perhaps needs to be brought back into the indistry as it is missing and therefore missing consumers.

Listening to a podcast about the Couture collection, another thing Demna said that stood out to me was, ‘Couture is the most sustainable way of consuming.’ This was due to the fact that everything is made to measure and is made to order of the highest quality, meaning there is no over consumption, one of the biggest issues in the industry currently.

Despite couture not being my market level, I think the ideology behind bringing a brand back to its heritage and understanding craftmanship at the top will inevitably trickle down to the luxury market.

The brand also has a unique understanding of how to speak to a Generation Z consumer. They have expanded thier marketing recently pushing further into the virtual world to access this consumer base. One of the most recent and well known collaborations is Balenciaga X Fortnite. Despite other brands such as Louis Vuitton and Moschino previously collaborating with gaming platforms, this collaboration was much larger of a cultural phenomenon. Creating 4 looks that could be puchased both online and in-store, the collaboration was available to over 400 million users on Fortnite alone.

This move to virtual fashion has indeed changed the luxury market, opening up new avenues and pushing creative boundaries. The garments/skins in this collaboration were priced at 1000 V-Bucks, making them accessible/affordable for all players. It is this accessiblity that has also made the collaboration so popular, however, at the same time, it may call into question the relevance of ‘luxury’ if everyone can access it.

Thier bold marketing strategies bring about fascination as well as criticism but this is what the brand thrives off, being talked about.

Gucci is the top brand in the luxury sector. Most well known for its iconic logo and leather luxury goods it has maintained its place as industry leader for many years. It is currenlty has a global revenue of $13.66 billion stemming from its successes.

Gucci has tapped into and won the hearts of millennials through the use of robust internet marketing strategies, also how the company has integrated its digital ecosystems and the in-store experiences, which are presented by Gucci’s true omnichannel. The biggest contributor to the success of Gucci – they nearly doubled their sales in 2018, with consumers under the age of 35 accounting to as much as 55 of these sales – has to be the hiring of a millennial as the brand’s creative director. Gucci’s creative director Alessandro Michele fueled the success of the brand among millennials through the showcase of fashion with pop culture references and the introduction of fresh designs, bringing the brand down to earth and formulating true relationships with an understood consumer.

Gucci is known not only for the contribution it has made to the fashion industry over the years but also how it associated fashion to break stereotypes/ boundaries to establish a brand aesthetic of its own. In 2015, the womenswear collection was redesigned to involve androgynous identity fashion into the mix which was another streak success of the brand. Gucci has been a luxury brand that has been able to launch consecutive successful collection by imparting a cohesive message within its advertisements, campaigns, collections and in-store experiences. Because of the vast inclusive nature and the modern ideologies (diversity, genders, age) that the brand as a whole supports, Gucci has been able to bag loyal customers and maintain there interest in the brand and what it stands for.

Since technology has evolved a lot with time and now plays a major role in millennials and Gen z’s daily routines, Gucci has stepped up to form a personalised relationship with its customers and to help grow customer engagement with the brand. Providing the Gucci story on multiple platforms from thier North Face collaboration and subsequent feature on Pokemon Go to thier collab with Roblox and mix with Farfetch creating new arenas for consumers to interact and purchase the brand without losing sight of the brands message.

It is this concentration on the consumer and innovation on many levels that is maintaining Gucci ‘s popularity and success.

Gucci X Roblox

Gucci X Farfetch

Acne are known to use more sustainable materials within thier clothing pushing thier products as long-lasting and something to cherish as opposed to throw away like fast fashion. Trying to change perceptions of fashion is a long term issue for brands however Acne is respected for thier quality making something that conumers want to keep, does this focus on sustainability go far enough? Is it truely ‘sustainable’ if they are still producing lots of items ? How sustainable are there materials long term?

Pangaia on the other hand, are more innovative when it comes to create clothing out of materials such as plant anf fruit fibres.

With the company hoping to be ‘earth positive’ by 2023. This material innovation is not specific to Pangaia with many other brands looking for cooton alternatives such as 3d printing, fruit dehydration and bacterial innovations. However, there are still teething issues with these stategies, as consmers still want quick items, these processes are known to take time, money and resource to create. How will this progress in future? Can all luxury brands hop on this trend? Is it effective?

BRANDS EMBRACING SUSTAINABILITY

Sustainability is becoming an increasingly imortant topic to brands from all levels but especially those in the luxury market.

Acne, Pangaia and Stella McCartney are all brands with a focus on sustainable practices in differing ways.

GAIA N PA

McCartney is known for her activism as well as her fashion, pushing for political change towards environmental issues, interlinking fashion and politics for change, showing that sustainability doesn’t just come from clothing. It is a much larger issue effecting many levels of society.

McCartney ‘holds ourselves accountable to our values, we have been on a mission to create luxury fashion that does not compromise on desirability or sustainability. Making every action count.’ It is this commitment that has allowed McCartney to stay at the top of sustainable fashion, with consumers most importantly trusting in the brand to be transparent. Sustainability encases the brand in a whole sense from how they treat their workers, how they create and how they market.

Furthermore, her plans for her brand are long term and being acted upon unlike some brands who simply view sustainability as a buzz word.

‘SUSTAINABILITY’ HAS IT LOST ITS MEANING?

THE FUTURE...

WHAT’S NEXT?

IS VIRTUAL CLOTHING SUSTAINABLE? WILL LUXURY CONTINUE TO EXPLORE TECHNOLOGY? LONG TERM OR SHORT TERM SOLUTION? MARKETING STUNT OR PLAN? WILL CONSUMERS BUY THIS TYPE OF CLOTHING? BLURRING OF REALITIES OR SOLELY VIRTUAL? DOES TECH UNDERMINE ‘LUXURY’?

HOW WILL THE METAVERSE GROW IN FUTURE? HOW WILL CONSUMERS GAIN ‘EXPERIENCE?’ WILL NEW CONSUMERS RELATIONS FORM?

“OVER 2.7 BILLION GAMERS WORLDWIDE” (Maguire, 2021)

Fashion x

Gaming

Fashion and gaming is evolving in many ways from collaborations between current games such as Sims, Fortnite and Animal Crossing to fashion becoming a game itself such as Drest, a virtual fashion revolution is stirring.

Louis Vuitton partnered with Riot Games’ League of Legends on prestige skins for 2019’s League of Legends World Championship Finals. Marc Jacobs and Valentino outfits have turned up in Animal Crossing; Burberry has its own range of website games like B Surf, the brand created skins for Tencent’s Honor of Kings characters and Moschino has previously partenered with Sims.

Gaming allows consumers of fashion and gaming to enter a new space of interaction with brands.

The creative possibilities are endless moreover gaming and fashion also go hand in hand because both aim to give enthusiasts a world of largerthan-life, aspirational experience.

“Gamification is going to influence many things, but there’s an obvious application for fashion.

Fashion is meant to be this playful arena where you should be able to express yourself and you should be able to experiment,” Michaela Larosse.

I personally think this is a partnership still under development, I think there is perhaps still a small stigma surrounding ‘gaming’ in general, moreover, consumers still purchase ‘real’ clothing.

Furthermore, I think the recognition surrounding if this is a successful practice still needs to be seen - is this a short term marketing stunt? Or a long term practice brands will develop?

VIRTUAL CLOTHING

Merging physical and virtual worlds, is becoming the new way of communicating fashion. The creative opportunities provided from virtual clothing and personalisation it offers has beocme an appealing prospect for brands.

THE FABRICANT Digital fashion house, The Fabricant, are pioneers in 3D digital design. Based in Amsterdam the company explore the possibilities beyond fashion in the physical world. “Operating at the intersection of fashion and technology, The Fabricant has opened up unpredictable creative possibilities for fashion companies.”

(Kapfunde, 2020) Never creating tangible garments consumers do not own a physical product. In 2019, The Fabricant sold a digital couture garment named “Iridescence”, at auction for $9,500. Customers upload an image of themselves, purchase a dress for example and then upload the final image of them wearing the piece onto social media. The fact that these virtual clothes are selling for large amounts suggests that consumers are willing to buy into this ideology and this is something that will be expanded upon in the future.

The impact of this is wide ranging from allowing consumers access to unique clothing, increasing inclusivity as digital clothing is adapted to a customer’s uploaded image, to the positive environmental impacts. Digital fashion offers a drastically more sustainable option for the future. With clothing not actually existing there is no supply chain, no waste, and no emissions. Moreover, the wear once culture dictated by consumers and influence of fast fashion could also be irradicated as virtual fashion offers a solution to all these issues.

“Our goal is to give every person their digital closet.”

DressX co-founder Natalia Modenova.

DressX customers can try the digital clothes through augmented reality. If they decide to purchase, they upload a photo of themselves to the website or app then, in one to two days, receive the photo with their digital fashion piece professionally edited onto their bodies, ready for posting on social media.

ARTIFICIAL INTELLIGENCE

Fashion retailers have turned to AI to make their businesses more efficient, replace photoshoots and predict what people will want to buy and wear in the future. AI capabilities are endless, learning about the consumer specifically tailoring what they see and may want to wear to them. This personalisation is what consumers want to feel connected to brands.

“AI is simply the ability to understand consumer behaviour and act on it.”

– these can either be models or potential customers who upload their own photos to an app.

With people unable to go out and buy – or even try on – clothes, the technology needed for virtual fitting rooms to operate has accelerated. During the pandemic, Israel-based Zeekit has used its AI to allow brands, including ASOS, Macy’s and adidas, to hold virtual photoshoots. AI is able to map clothes onto people’s bodies

AI is arguably sustainable, making measurements and trends more accurate brands have less waste both in terms of material and stock. Moreover the personalised aspect makes consumers feel understood by brands and not bombarded with campaigns/items they don’t want to see.

Robbie Barrat is a designer using AI to produce knitwear. His latest project uses neural network processing methods to extract common denominators from large data sets (in this case, thousands of images from Balenciaga lookbooks and fashion shows). He then feeds this data to another neural network, which draws from it to come up with its own interpretation of a Balenciaga outfit. I found this fascinating. Using a computer interpretation to produce fashion from what it has seen previously, drawing a link between the traditional fashion of the house and reproducing it using technology. Can it be more accurate a way to express a brand? Is this a mimick of a brand not meaningful?

Would people still pay for pieces designed by a machine?

Robbie Barrat

VIRTUAL REALITY

The main point of virtual reality is to transport us to new places while we, in fact, are not making a single step.

Put on the VR headset – and find yourself in a different city, underwater, on another planet, or… at a fashion show! Why not, as VR can take you anywhere. The fashion industry has already found several uses for augmented and virtual reality – virtual try-ons, VR mirrors where you can “put on” clothes and admire your new looks, and visits to fashion shows.

VR is allowing fashion to be accessible. Dior experimented with VR allowing consumers access to fashion shows and brand history.

Does this democratise luxury if anyone can access it? Or does the engagement outweigh this?

TikTok was launched in 2018 and has since been downloaded more than 110 million times. It is mainly popular among generation Z, more precisely teens and adults between the ages of 16 and 24 (Gen Z.) A generation known for having a short attention span and being in constant need for new input. The fashion industry has been booming on the rising social media platform. It is no wonder the app started thriving during the pandemic where millions of people had to stay at home for an unforeseeable time. Filled with boredom and the will for freedom, especially for younger generations, there was a big need for something to keep them entertained. They needed something to help them develop and express themselves but also to be inspired. Tik Tok, unlike Instagram, seems to have more relatable and realistic content – allowing every user to have a voice.

Being on TikTok allows brands to be part of trends right when and where they are being created. Furthermore, it makes it easier for them to connect to their younger audience, also on a deeper level by creating challenges and campaigns like MAC Cosmetic’s #YouOwnIt challenge, giving an insight into the work process of employees like L’Oreal did or collaborating with TikTok influencers like the Hollister deal with Charlie and Dixie D’Amelio.

For the first time, high fashion brands have decided to show more of their personality, what goes on behind the scenes, and have a sense of humour.

For instance the #Guccimodelchallenge in which the actual account of Gucci participated in by reposting the Gucci styles of other creators. On the other hand, there is JW Anderson who noticed the huge popularity wave his patchwork cardigan, worn by Harry Styles, and therefore decided to post a tutorial of it on the app. What can also be found on TikTok are designers like Olivier Rousteing from Balmain who post videos of their work process and give people an idea of what really goes on behind a brand and inspire thousands of young designers. Even Fashion week was taken by a storm by the app. Last year the first-ever #TikTokFashionMonth was hosted in which runway shows of the biggest brands like Louis Vuitton and Prada were live-streamed.

As a Gen Z’er I personally love TikTok and can scroll for hours through all the content, I like the down to earth nature of the app allowing consumers to see behind the brand in a more relatable sense, allowing a newer connection to grow.

CONSUMER

GENERATION Z

HOW GEN Z BUY LUXURY • Gen Z is set to account for 40% of the global personal luxury goods market by 2035.

• 9/10 Gen Z’s believe brands should detail thier stand on environmental and social issues. - A significant cultural shift.

•

Mixing and matching brands at different price points - suggests no brand loyalty within this generation.

• Most informed genration ever - rise of the internet has allowed more awareness of issues locally and globally.

• Ethinically diverse - suggesting thier inclusive nature- which they also want brands to represent • 56% of Gen Z have shifted from spending on traditionally luxury brands to premium, fast-fashion, niche brands. - how can traditional brands regain this consumers interest.

• Stigma surrounding second hand items, especially luxury has been removed view 2nd hand as sentimental, moreover they are able to purchase items they may have missed out on or vintage items that are also popular.

• Gen Z value individuality • “The best performing brands during the pandemic created more desirability by reinvigorating thier iconic products with fresh materials, designs, colours and collaborations.”

• More tha 90% of brands lack the positioning and storytelling needed to be relevant to Gen Z in future - suggesting these are particularly important ways of communicating to these brands.

SUSTAINABILITY

Sustainability is said to be one of the most important values to this consumer, as a conscious generation they vote for sustainability with thier money, buying into brands that are labelled as environmentally friendly or who have long term plans or ambitions to change how they impact the environment. As gen Z become main consumers their want for sustainability will have a larger impact on brand - I believe this is something brands must prepare for now.

Sustainability is a wide issue, traditionally viewed as a way of reducing CO2 emissions that are impacting on changing climate conditions, however sustainability is a deeper issue surrounding more than just how clothes are made, sustainability also looks at diversity and inclusion, working conditions, traceability etc that all feed into the final consumer experience and impact on the world around them.

WHAT ABOUT FAST FASHION??

Gen Z are also a hypocritical generation, despite thier want for sustainable practices, their dedication and love of fast fashion more often than not over-rides the need for sustainability. As a social media obessed generation the want for new clothes to post about online and to stay up to date and have something new seemingly outweighs the need to look after the planet. With brands such as Zara, PLT, ASOS , SHEIN etc dominating the market there are many questions arising from thier habits such as - will fast fashion die out? How far will Gen Z realistically go to be ‘sustainable?”

What does sustainability mean to this generation? Are they an idealistic generation rather than realistic?

Despite this, sustainability is constantly on consumers minds effecting how they interact with brands on all levels. I think that Gen Z are wary that change takes time, but they want to see brands at least taking steps towards change- respecting this rather than brands doing nothing at all. Sustainability as a term however, has become somewhat diluted in meaning with its usage a way to gain consumer attention rather than implementing measures. This makes creating ‘sustainable’ brands difficult as sustainability has lost meaning.

“Gen Z have a unique set of unique behaviours and values. They are more influenced by sustainability and more active in the second hand luxury market than average.”

QUESTIONNAIRE Primary Research of my Target Market, Gen Z aimed at participants ages 10-24

FINDINGS My research has proved some of my secondary findings to be correct, with 80% of this generation more likely to buy from sustainable companies aligning with the research aforementioned.

However, this survey has also shown that Gen Z is perhaps not as likely to buy into ‘digital’ clothing as some of my research suggests. With 80% answering that they would not purchase this type of item, moreover 60% are still more likely to buy instore rather than online despite the impact of the pandemic on this generation over the past few years. This was contradictory to my secondary research that suggested that online shopping was on the rise. This could portray a need to blend both online and off line experience for consumers, not ignoring the importance of stores in future. The fact that consumers are less likely to buy virtual clothing could be due to a lack of knowledge in this area and the fact that virtual clothing to buy is still evolving. Gen Z are known to dress thier avatars and use them to express thier personal style using digital clothing in this way, however personal use of digital clothing is not as popular as of yet.

This survey has been beneficial as it has put my research into practice finding out how far gen Z today match the beliefs the media and scholars have of them.

Gen Z are relatively easy to spot as a generation due to their clothing. They are the definition of a mix and match generation picking choosing what items to wear from a range of market levels, and brands with a range of values based on sustainability, authenticity as well as aesthetic.

From researching my own wardrobe, that of my sister and watching consumers whilst shopping I found this mix and matching of brands and clothing to stand firm. It is common to see a Gen Z consumer wear zara jeans, a primark jumper a coat from urban outfitter and a pair of shoes from a luxury brand such as Balenciaga paired with a second hand bag from depop for example. This look is common, mixing fast fashion with luxury and a hint of second hand. I question if this is due to accessories having more longevity than clothing in the mind of this consumer - why do they spend more on bags and shoes?

I asked my sister who is 18 and in college alongside her friends what they wear, my sister mentioned the fact that her peers wear luxury shoes like McQueens or triple ss’s and more expensive bags with asos jumpers and nike leggings or joggers most of the time. This style of comfort dressing is also prevalent in this generation, with lockdowns affecting them directly and staying at home thier lives for the past 2 years, there is a continued trend of comfort and athleisure wear in this consumer base. However, this response did affirm my research that Gen Z mix and match brand levels and style.

I further asked my sister and her friends why they choose to wear fast fashion brands. The response was ‘ because it can come next day, and its cheap,’ This wasn’t shocking to me as I too online shop for ease and the fact I know my items will come next day and I can easily return them. Moreover, price is a huge factor for this generation, as a generation still on thier way to having a large disposable income, buying cheaper items, faster and easily seemingly is important despite what my pervious research has found. I think this is due to them still being a young cohort still in school with less money, however as they mature thier beliefs and spending power will change the industry.

I don’t beleive the mix and match tradition will fade as consumers shop brands that allow them to express themselves and uphold to thier values as they grow to have more disposable income.

GEN Z STYLE...

BRANDS MISSING GEN Z KENZO CASE STUDY To inform a gap in the market, I researched brands that were currrently failing to engage with a Gen Z consumer. The first brand that came to mind was Kenzo.

Kenzo was founded in 1970 by Takada Kenzo who established the brand as an optimistic, diverse brand inspired by nature and Japenese culture. His use of prints and celebration of nature putting a new tiwst on asian traditions is what established the brand in the luxury market.

“Takada Kenzo was aligned with the young and the young aligned with him,” (Vogue, 2021) I think that this has been a lost relationship.

I believe that Kenzo changed drastically in 2011, when Lim and Leon took over that brand. This partnership are said to be responsible for ‘repositioning the brand into a contemporary brand.’

However, I don’t believe this to be completely true.

When Lim and Leon took over they embraced the ‘streetwear and logomania.’ This worked for the brand initally as consumers embraced the streetwear culture as it was stepping into luxury, I personally remember many of the boys where I live and in Liverpool wearing Kenzo about 5 years ago - it was a craze that soon died out. As more brands brought new streetwear and fashion, Kenzo was replaced. I believe this to be the downfall of the brand as it lost its positioning as a luxury brand and was almost cheapened as it relied heavily on just one motif. Despite the fact that streetwear may have been seen to enhance the ‘playful nature of the brand’ I believe this was too mass market a move for the brand long term, consequently losing its heritage.

Moreover the move away from the flower motif to the Tiger was originally met with much criticism, but has now become synonomous with the brand.

Today, Kenzo remains a subscale player in the LVMH universe, generating less than €400 million annually. The brands inability to change and adapt to the new youth as Takada Kenzo did has been detrimental to the brand.

LANVIN CASE STUDY Lanvin has been through a rocky few years, the brand was established

by Jeanne Lanvin in 1889 and has a long standing history. The companies signature of bold colours and french flair has always made the brand eye-catching and the appointment of Alber Elbaz in 2001 transported the brand into its full success.

However, when the ‘powerfully pretty’ designs of Elbaz stopped in 2012 after he stepped away from the company, Lanvin suffered immensly. The change of designers decreased the brand value and loyalty as consumers struggled to understand the identity of Lanvin.

Today Lanvin is trying to regain its status, in comparison to Kenzo, Lanvin has missed out on the ‘logo mania’ of the past few years losing its consumer to other brands building thier awareness. It is this that Lanvin is changing today, using new prints to subltly increase brand recognition. However, I believe this to be a short term solution to engage millennials, as consumers evolve and logos mean less, Lanvin must find a way to reintroduce its heritage to gen Z to improve engagement. Moreover, the saturation in the market of logos and prints also means that there is much competiton for Lanvin as well as the issue of losing brand value in a ‘luxury’ space.

HISTORY OF CHANEL Chanel came from humble beginnings, being put in an orphanage at age 12 by her father, after the death of her mother. It was her she learnt to sew. Gabrielle Chanel opened her first shop in Paris in 1910 and began selling hats. She then added stores in Deauville and Biarritz and began making and selling clothes. She used the money from her lovers to fund her business ventures and never married.

On a chilly day, Chanel fashioned a dress out of an old jersey, and in response to the many people who asked where she got it, she offered to make them one.

“My fortune is built on that old jersey that I’d put on because it was cold in Deauville.”

It was an immense un-blinkered drive and superlative talent that led to the creation of Chanel’s four timeless classics – the stylistically versatile Little Black Dress, the cardigan jacket, the perfume No. 5 de Chanel and the Chanel Suit, each contributing to the House of Chanel taking a firm seat in the couture history books.

1910 - Opened ‘Chanel Modes’ and sold hats.

1912 - Opened 1st Chanel boutique and began making sportswear from jersey fabric - a huge success.

1915 - 1st Chanel Couture House 1921 - Launch of No5 Perfume 1924 - Perfume Launch 1939 - Closes Couture store due to WWII 1952- Marulyn Monroe and No5 featured in Life Magazine 1955 - Creation of the 2.55 baag 1956 - Debut of the Tweed Jacket 1960s - Celebrities wearing Chanel include, Elizabeth Taylot and Jackie Kennedy 1971 - Chanel dies 1983 - Karl Lagerfeld takes over & expands house throughout the 90s 2000 - 1st Cruise Show 2019 - Death of Lagerfeld 2020 - Virgine Viard becomes Creative Director

Consumer Profile

Chanel’s key consumers identify as: - Aged 19-39 -Female - Middle Class -High Disposable Income -Busy Professionals - Brand loyal - Understand the meaning and history of Chanel - Wish to wear timeless and elegant clothing - Like quality products - Like to travel -Live in urban areas -Buy Chanel to improve self-image - Have a desire to own something expensive/luxury.

The Chanel consumer is a stylish intellectual young woman, thier looks are certain and they have a high level of individualism. Enjoying travel and the more expensive things in life independence and elegance are perfect for this consumer.

Chanel’s customers are women who want to identify themselves with everything that a brand like Chanel stands for, elegance, modern simplicity and class. Being able to wear clothes that are comfortable but yet still high fashion. Chanel style has always been extremely consistence and has the same iconic pieces that every woman wishes to own.

STRENGTHS

WEAKNESSES

Top luxury brand

Don’t view Gen Z as a consumer yet

Brand heritage and identity

No online shopping

Timeless design

Huge competition from more forward thinking brands ie: Gucci and Balenciaga

High brand awareness Brand Loyalty and equity

‘Out of fashion’ perception, relies heavily on heritage - how far can this get them?

Quality of clothing

Innovation restricted to the beauty market.

Range of products

HIgh Price Point

Customer service - high quality

CHANEL SWOT ANALYSIS THREATS

OPPORTUNITIES

More affordable brands

Market to new consumer - Gen Z - re-establish relationship with them

Losing loyalty of consumers as dynamic shifts to Gen Z Gen Z unlikely to buy into Chanel just beacuse of thier heritage - less understanding about the brand itself Rise of digital brands & opportunities that Chanel is not recognising.

Rising competition- brands evolving Chanel risks being left behind.

Bring Chanel online - Pandemic has shown a slump in sales due to store closures, bringing Chanel online in some resepect is necessary Digital stategies can to be explored- new platforms used to be marketed on Sustainability considered further Technological innovations taken into consideration - expand on beauty innovations.

To further my research into Chanel and their collections, I read Chanel Catwalk by Thames & Hudson. This book gives an extensive history and overview of Chanel as well as shows all thier previous catwalk shows. I found that over time, Chanel has never lost its traditional spark and passion, instead it has adapted its fashion to the times, reflecting the mood of the era.

The traditonal tweeds and monochromes are always in play but amongst other new designs that keep Chanel moving forward, I think this is down to the leadership of Lagerfeld. I love Chanel’s shows they are always filled with storytelling, something the brand has always built a reputation on.

However, how will Chanel maintain this progression without Lagerfeld, how will it adapt to a technology driven world, how will its fashion reflect the times in future?

“Chanel’s latest show was proof that IRL fashion can survive the Metaverse” I found this an interesting quote, after all my research into technology and how virtual clothing is the future of fashion, this suggests the opposite.

I think that the purpose of IRL fashion will never go out of style, people will always need clothes to wear. However, this quote suggests that Chanel’s clothing alone is enough to sustain it as a brand in a future using technology to evolve. I fear that Chanel will undoubtly be left behind as competition rises and it tries to keep up with new ‘digitally native’ consumers.

On the other hand, Chanel’s longstanding history and brand values have sustained it as a top luxury brand for many years, with the brand expanding into the modern day through design and aspiration, not losing sight of its values. Chanel has built its brand awareness and loyalty through these values it cherishs and this is why they are still so successful as a brand.

I think that this is important as Chanel has never compromised its authenticity - a value very important to the next generation of consumers. However, I do believe there is a compromise to be had that would maintain Chanel but bring it up to date. Perhaps this could come in marketing, using technology to improve relations with a new consumer.

Today’s consumer is less informed about brand heritage and instead focus on what a brand is doing...how can Chanel change this perception??

INNOVATIONS Chanel has previously looked to innovate and use technology however, this seems to have been restricted to the smaller product ranges such as beauty. In 2018, Chanel created a Coco Game Center pop-up incorporting gaming stations into the design to promote new lip colours in Japan. The arcade was a success as it showed a more playful side to the brand, and engaged consumers of all ages.

However this was nearly 4 years ago now and was only for beauty aspect of the brand, this suggests that it was almost trial like to see how consumers reacted so as not to damage the mian brand.

More recently Chanel has started to use VR to help consumers pick out lip colours online. The Lip Scanner projects the shades onto a consumers image for them to decide if it suits them. This gives a better experience for consumers who do not want to go in-store but also allows them to try before they buy giving more accurate results and a better purchasing experience overall. Again this innovation is restricted to the beauty sector of the brand, but is seemingly a success so far as it is quick and easy to use. This VR technology is one step away from clothing try ons - will Chanel look to capitalise on this too?

Another downfall of Chanel is thier online engagement, unlike other brands they do not have a TikTok account. This means they are not capitalising on engaging younger generations like Gen Z who make up approx 60% of the site. This is a huge problem I believe for Chanel, Tik Tok is a very down to earth platform allowing brands to communicate with consumers in a more natural and less staged way unlike Instagram.

It can be argued this was strategic to rely on the brands reputation to maintain sales and the fact that it is quiet on social media means that its marketing is somewhat louder in a sense as it is in less competition. Bottega Venetta used a similar strategy recently, removing itself from all social media - causing huge outrage and consumers talking about the brand maintaining its status.

However this absense on TikTok has currently been an issue for Chanel as their advent calender blew up on the platform with many consumers reviewing the products inside. Despite the fact that the reviews were’t always positive, there was an increased brand awareness at this time. However, as Chanel is not on the platform it could not react or make use of the increased engagement.

Instead Chanel chose to be silent and hope it blew over, i don’t believe this was very beneficial to the brand. By having a presence on TikTok Chanel could interact with consumers more personally, something that is within the brands values.

THE ACCESSORIES MARKET: From my research into Chanel I noticed that thier main successful products are accessories, moreover I found consumers to wear more lxuury accessories. From this I decided to look into this market further.

The global fashion accessories market revenue is expected to show an annual growth rate (CAGR 2022-2025) of 11.31%, resulting in a projected market volume of US$405,350m by 2025. Fashion accessory is used to complete an outfit and chosen to specifically complement the wearer’s look. This includes footwear, apparel, wallets, handbags, and watches are the major product types in the global fashion accessories market. This is an important market giving consumers ways to express thier personal style, taste and preferences. Clothes take up more space physically in your closet but accessories are important details and carry more worth and meaning to consumers.

The shift in technology has also created a new form of accessory, wearable tech. This has extended from smart watches to fitbits and Google glasses. The purpose of these innovations is practicality merging science and technology giving consumers quick fitness updates or cameras around thier vision.

Chanel herself once said, “Fashion has to do with ideas, the way we live, what is happening,” - what’s happening is technology is taking over so how will fashion adapt?

CHANEL RESEARCH ... SELFRIDGES...

To find out how Chanel looks and interacts with consumers in store, I decided to go to Selfridges to conduct some research.

I firstly went to Selfridges in the Trafford Centre. When looking for any sign of Chanel, unlike other brands such as Prada and Balenciaga they did not have any bags on display. Despite bags being one of thier best selling accessories I found the fact that there was no trace of them to be strange.

The only brand placements was a beauty counter and sunglasses wall.

These are smaller and somewhat cheaper items for sale. This very quiet set up from a large brand was odd, it is in no competition with anyone instead Chanel is quietly in the corner on its own, maybe reflecting how it is as a brand in general, in a leauge of its own.

Chanel only choses to sell accessoires and beauty in department stores, choosing brand experience over sales maintaining the aspiraiton behind the brand when it comes to clothing.

I found the section to be rather underwhelming, but then again I was in Selfridges in Manchester, but I thought more would’ve been done with the space given it was the only hint of Chanel in store.

The Prada section was buzzing when i was shopping, with consumers looking at bags ans accessories to purchase from the large area Prada had aquired in the store across from a large Gucci section. This section was much more welcoming and full compared to Chanel’s rather bland sections. Pradas colours and display showcased the best products and enticed consumers.

The beauty section again was standard for Chanel, no staff were monitoring it - suggesting the ‘experience’ is left to fashion. The stand was drowned out I felt and blended in too much to the surroundings, that it did not stand out.

Burberry had the largest clothes section alongside the usual labels of Balmain, Ganni, Marni etc.

The space was bright and airy with a colour coordinated appearance of coats, the design was simple but effective and showed the clothing off well.

IMAGE REFERENCES Figure 1 - Balmain Flame Dress, 2021 - Retrieved from - https://www.voguebusiness.com/gallery/gallery-fashions-metaverse-moments#intcid=_voguebusiness-uk-bottom-recirc_85e39f3f-39ce-45d1-b14e-d3ac184e59b7_cral22 Figure 2 - Dior AR 2021- Retrieved from - https://www.voguebusiness.com/gallery/gallery-fashions-metaverse-moments#intcid=_voguebusiness-uk-bottom-recirc_85e39f3f-39ce-45d1-b14e-d3ac184e59b7_cral2-2 Figure 3 - Burberry Game - Retrieved from - https://www.voguebusiness.com/gallery/gallery-fashions-metaverse-moments#intcid=_voguebusiness-uk-bottom-recirc_85e39f3f-39ce-45d1-b14e-d3ac184e59b7_cral22 Figure 4 -Balenciaga Couture 2021 - Retrieved From - x https://www.nytimes.com/2021/07/08/style/balenciaga-gaultier-couture.html Figure 5- Balenciaga x Fortnite skins - Retrieved from - https://www.gq.com/story/balenciaga-fortnite-collaboration Figure 6 -Balenciaga 2020 Afterworld - Retrieved from - https://dissrup.com/editorial/digital-fashion-in-themetaverse Figure 7- Gucci x Roblox - Retrieved from - https://www.voguebusiness.com/technology/inside-gucci-and-robloxsnew-virtual-world Figure 8-Gucci x Farfetch - https://www.wonderlandmagazine.com/2021/03/29/gucci-farfetch-imagined-futures-off-the-grid-sustainable-fashion/ Figure 9-Stella McCartney - Retrieved from - https://www.instagram.com/p/BeQxIOoneCz/?taken-by=stellamccartney&epik=dj0yJnU9OGNfbGJqRHV4Sk9tdEp3dmwzalJLX2xsLVQ5aG1FVWsmcD0wJm49dmRJcHpPcmhXd2NnUmVRY1daOHo1QSZ0PUFBQUFBR0hmTTBR Figure 10-Carlings Clothing - https://hypebeast.com/2018/11/carlings-digital-clothing-collection-details Figure 11-The Fabricant - https://thepowerhouse.group/digital-fashion-amber-jae-slooten-the-fabricant/ Figure 12 -Dress X - Retrieved from - https://www.businessoffashion.com/articles/technology/digital-fashion-player-dressx-raises-2-million/ Figure 13 -Robbie Barrat - https://www.itsnicethat.com/features/ones-to-watch-2020-robbie-barrat-digital-240220 Figure 14- TikTok - Retrieved from - https://wwd.com/fashion-news/fashion-scoops/tiktok-biggest-fashion-beauty-trends-1234684172/ Figure 15 - Coco Chanel - Retrieved from - https://www.crfashionbook.com/culture/a27525454/cr-muse-cocochanel/ Figure 16 - Chanel SS19 - Retrieved from - https://www.vogue.com/fashion-shows/spring-2019-ready-to-wear/ chanel Figure 17 - Coco Game Centre - Retrieved from - https://fashionmagazine.com/beauty-grooming/chanels-cocogame-center-arcade-unlike-anything-youve-ever-seen/ Figure 18 - Chanel TikTok - Retrieved from - https://www.businessoffashion.com/briefings/luxury/chanels-tiktok-challenge/ Figure 18 - Wearable tech - Retrieved from - https://www.popsugar.co.uk/gdpr?utm_medium=redirect&utm_campaign=US:GB&utm_source=www.pinterest.co.uk&gdpr

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