VI. APPENDICES a. swot and pestel analysis(p b. acne studios name (100) c. face motif logo (101)

swot analysis

strengths

Acne Studios is an emblematic brand that represents Scandinavian chic and a lifestyle that has become popular in fashion industry. Worldwide famous, it has established retail stores in most fashion capitals: London, Paris, New York, Milan but also Berlin, Copenhagen, Tokyo, LA, Stockholm, Shanghai Melbourne… Acne Studios does not have any borders, nor does it limit itself to Europe which increases their brand visibility. The brand is present in physical and online department stores such as MACIES, Le Printemps, Net à porter and Sensee. Their identity is strong and recognizable : Famous for their millennial pink packaging, some are even resold online as an item itself. The color itself is connoted to the brand. Each and every store is unique yet complement the others. An honest approach to marketing and communication makes the brand personable, its story being believable and friendly. They advocate themselves as a luxury yet modern brand, ecoconscious by proposing upcycled collections and an overall ‘minimalist maximalist’ aesthetic. Customers who purchase an item from them feel part of an elite, a group of people who are ‘in the know’ as the brand isn’t as desacralized, democratized as others (Gucci for example). The success from its original communication and publicity, award-winning ACNE paper demonstrates that Acne studios does more than selling clothes: A whole universe is derived from the ACNE collective, a brand that inspires and is inspired by everything and anything.

opportunities

- Follow the trend and create temporary pop up stores (Hawkins and Hawkins, 2020), although currently of limited benefit in the short term due to lockdowns. - Expand market opportunity by inserting itself in the fashion virtual clothing revolution appearing in online gaming (e.g. animal crossing showcasing Balenciaga virtual items), an industry that is booming further since the pandemic. - potential app for easier and custom shopping experience with gamification. 92- Further advertising on the website to attract potential customers living in areas with limited to no store presence.

weaknesses

The name was unappealing for many and mainly confusing at the brands début. ‘Acne’ the word that is commonly used for a skin disorder has now become a fashion brand’s name. Yet for many years Harrods wouldn’t want to sell Acne Studios products. Looking up the brand online might be complicated as well and lead to confusion. Its high price point on its wide range of products attracts high-income customers who might want exclusive products or services that Acne Studios does not propose haute-couture, customization or custom-made pieces. Don’t get the same ‘lavish’ feel when buying from them.

threats

The minimalist style from Acne studios is easy to replicate for high street and value brands who might steal and replicate acne’s designs at cheaper prices. Covid 19 has had a huge impact for the brand: fewer opportunities for in-store visits have put a dent in the communication strategy in which acne studios flagship stores usually are a strong identity asset. These lost opportunities take away a part of the augmented product and buyer’s experience, so on-line only customers might be less likely to want to buy now. The consumer shift consumption is inherently different, defined by a willingness to buy less. Their lack of presence on newly popular social medias such as Tik Tok and Instagram leaves place for other young emerging creators such as Jacquemus or Marine Serre to ‘occupy the space’. Finally, the ‘scandinavian style’ Acne is known for, can be replicated through other Swedish brands such as Monki Weekday, and H&M High price for basics criticism, minimalist bliss seems like a scam for many. Could have more diversity and inclusivity in models.

pestel analysis

political

Whilst Acne Studios deliberately chooses not to make any political statement, unsurprisingly, its brand identity attributes connote to supporting rather democratic values such as inclusivity, same sex minorities couples in campaigns, and an overall fondness for art and the ideologies it holds. However, unlike its competitors, Acne Studios has no interest in dressing up important political figures, a statement that could be either detrimental: Chiara Boni dressing up Ivanka Trump (Chavie Lieber, 2020) or beneficial: a Michael Kors suit worn by Kamala Harris for the cover of Vogue (Okeowo, 2021).

Geo-Political instability has been repeatedly menacing the industry for a number of years: “Terrorism, Brexit, and stalled trade deals will all increase a pervasive sense of uncertainty in the global economy” (McK-BOF, 2017 report)

Tension and friction in some countries will remain a potential barrier for the brand’s success. China known for its stern regime has various social medias such as Facebook, Instagram and Tik-Tok blocked, (Wikipedia,2020) limiting the brand’s digital visibility. Hence its three stores in the capital, Beijing are the only possible direct reach/interaction with Chinese customers.

Furthermore, the newly elected president Joe Biden encourages the propagation of nationalism ideologies by signing an executive order strengthening the ‘buy American’ provisions.

economical

“The world economy will experience the worst recession since the great depression” (IMF, 2020)

The successive lockdowns in big fashion capitals such as London, Paris and Milan where only essential shops could remain open, created a big revenue shortfall worldwide.

The overall shift in consumer spending and behavior might not directly affect acne studios loyal customers. Indeed, their typical target profile is customers with high-income stability. Its competitors might observe a bigger impact and a larger drop in sales than for Acne Studios.

Nevertheless, when planning ahead, the brand must consider the slower predicted growth of the fashion industry, dropping down to 3 to 4% percent (McKinsey report, 2020)

The recent lower exchange rate where 1 euro is worth 1,22 dollars (google finance, 2020), due to generally lower interest rates, potentially attracts less foreign capital: , a criteria/ aspect/area Acne Studios usually optimist on where make a good sum of money.

Overall, the current market saturation with big luxury brands in the lead, makes it challenging for Acne Studios to stand out from the crowd and reach maximum forecasted profit.

social

Acne Studios is proud of its cultural identity, ecouraging individuality and creativity. These ideologies at the core of the ACNE art collective are meant to be translated through the clothes they produce.

These attributes/criteria are highly valuable for their clients as well, who in response will tend to be loyal customers.

The need to be eco-responsible, conscious and sustainable is crucial for modern brands as we observe an acute shift in consumer consumption requesting inclusivity as well. (Mintel, 2020)

Acne Studios has willingly and truthfully met this demand by putting forward campaigns that have made socio-cultural statements: in the 2017 collection, the faces of the collection were a queer family consisting of a gay couple.

Acne Studios has multiple ways of reaching a wider social audience, as the needs in fashion are constantly evolving. The industry has noticed a stronger appeal for loungewear, further increased with the recent lockdowns.

Furthermore, strong social media presence is imperative with gen Z, the rise of income in china (IMF, 2020) and the expanding middle class in Nigeria or Brazil might lead to a gap in the sector, opportunities acne might want to seize. (state of fashion, 2020 MC Kinsey).

technological

Many different technological strategies can be adopted to ensure competitiveness and maximize a brands profit. Strong digital and media presence have become an increasing demand, putting pressure on companies to have efficient e-commerce selling platforms, to avoid sales drops.

Acne Studios could be investing in a shopping app, enhanced through a personalized customer experience, gamification through fidelity points to make simplify the digital user journey. Net à Porter, a retailer that sells Acne Studios garments makes the overall shopping experience always more convenient.

Other websites like Aliexpress.com and Alibaba.com are a real danger for luxury brands as they steal their creative integrity by selling cheap counterfeit goods. Blockchain implementation in our digital fashion world has become vital.

The Swedish tool ‘Virtusize’ has found the digital solution to a major problem encountered when buying online. Virtusize helps customers choose the right size and fit by comparing the product with previously bought items thanks to an innovative system of measurement comparison (virtusize, 2021).

Acne Studios quickly began using this digital intelligence as it gives online customers a feel for a curated and personalized shopping experience.

environmental

The environmental dynamics of the fashion industry have increasingly changed over the last decade; Acne now publicly publishes annual sustainability reports.

According to the Fairwear Foundation, Acne has ‘has shown advanced results on performance indicators and has made exceptional progress. With 98% of production under monitoring’. The starting point for their sustainability journey lies in delivering high quality ethically produced products they are proud of. Their sustainability philosophy consists of three fundamentals (AcneStudios.com)

‘our products’ Acne studios believe that the garments produced must be high-quality durable with a long lifespan. All of the textiles, materials and techniques used are meticulously chosen to ensure all these above criteria and be as environmentally conscious as possible.

‘our suppliers’ With over 62 suppliers it is crucial for acne studios to be transparent in their supply chain. The intent is to respect the Labor Standards, protect the worker’s rights and have fair working conditions.

‘our operations’ This ties together the two previous fundamentals. Proposing mindfully sourced, high-quality durable products isn’t enough for Acne Studios. They will extend their sustainability ambition as far as keeping track of the environmental impact their whole supply chain has by measuring their carbon footprint impact each year and publishing them in their sustainability report. Furthermore, they will try to accurately calculate the number of stocks needed for each product to avoid any excess supply and therefore waste.

Acne Studios do not use their sustainability ambition as an advertising technique so called green washing that does nothing else but diminishing the cause. However, whilst Acne is famous for their pink packaging, they might want to invest on eco-friendly bags.

legal

With over 800 employees all over the world, 8 offices, 62 suppliers in 200 production locations in 16 countries (Acne Studios Social Report, 2019), Acne Studios need to make sure that they obey and respect labor laws and legislation that differ from country to country.

Labor Standards and the new employment laws must be met as for paying below the minimum wages could cause Acne Studios to have encounters with the law/court.

The brand must put aside their creativity originating from their art collective and have the CEO or board of directors’ handle issues such as data protection copyright infringement and trademark laws.