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MASTER THESIS
2019/2020
Student NAME: Clotilde D’AUBREBY
Research Topic
Does the development of the Internet and Social Media really make it easier today to
launch a successful Fashion label?
- TUTOR’S NAME Benjamin VOYER
The distribution of this document is strictly reserved to ESCP Europe.
CONFIDENTIAL No Yes 

!2
Does the development of the Internet and Social Media really
make it easier today to launch a successful Fashion label?
Abstract
The development of the Internet and Social Media really makes it easier today to launch a
successful fashion label as it enables to find and reach diverse stakeholders, makes the
market research easier and richer, and allows selling online direct-to-consumer worldwide
while communicating in a more personal and cost-effective way. However, the
development of the Internet and Social Media has increased and intensified the
competition, while making customers more knowledgeable and demanding in terms of
product, experience and meaning - not to mention an increased number of scandals
revealed and products copied. What is more, the development of the Internet and Social
Media does not dispense fashion labels from creating their brand identity and corporate
structure, generating profit and growing, producing goods and have them delivered to
customers - while it makes physical experiences all the more necessary (through shopping
experience in store and events). That is the reason why fashion labels should grow their
business organically, develop partnerships (collaborative relationships) with stakeholders,
have a mission / purpose, develop a pragmatic social and environmental policy - and be
transparent about it, contribute authentically to make the world “a better place”, make a
seasonless permanent collection with limited capsule collections based on a drop model -
in addition to product collaborations, sell online direct-to-consumer and offer a technology-
enhanced customer experience, organise one-of-a-kind pop-up store-events, be stocked in
retailers with physical stores that match their brand identity, open technology-enhanced
physical stores designed as third places to deliver a surprising and entertaining omni-
channel experience, engage with customers online and build a community, create
compelling lifestyle content to communicate on its owned media, organise physical and
digital events, and finally turn public figures / influencers / customers into brand
ambassadors to benefit from earned media communication. Eventually, as the Internet and
!3
Social Media - but more generally technology - evolve quickly (especially following
crisis), fashion labels should nurture a lean structure to be able to test and learn, and in this
way adapt quickly and well - while being attentive to society / customers moves.
Keywords: fashion, label, brand, social media, Instagram, Internet, customer experience,
technology, sustainability, authenticity, transparency, profitability, collaboration, influencer,
ambassador, community, content, conversation, frugal, crisis, adaptability
Clotilde D’AUBREBY
Supervised by Benjamin VOYER
!4
FOREWORD
As a business student interested in the fashion and luxury industry, I had the opportunity to
intern in French luxury houses - among which Hermès, CHANEL and Louis Vuitton. I
could notice there the focus put on the product per se - through the quality of materials and
know-how used to make it, on the customer and his / her experience - through service and
care, and the brand itself - its story, values and mission. In other words, those houses intend
to deliver utilitarian, hedonic and symbolic value to their customers.
For a long time, the delivery of hedonic and symbolic value to consumers has been the
prerogative of luxury houses, while other companies would simply focus on delivering
utilitarian value. But, with growing competition in all sectors - with companies operating
all around the world, it has become paramount for everyone to deliver more than product
features - in order to survive. Consequently, nowadays, all companies aim at delivering
utilitarian, hedonic and symbolic value to global consumers - especially in the fashion
industry where actors directly compete with those historic luxury houses.
The question is then to know whether there is still room today for new actors in that global
crowded market - with fast-fashion companies on the hand of the spectrum and luxury
houses on the other hand.
The good news is technological progress has made innovations accessible and affordable
for those new actors, while opening new spaces to compete in. In particular, the
development of the Internet and social media gives new resources to fashion companies to
resort to - in order to make room for themselves in that crowded market, in the same time
as it opens new territories / opportunities for them, namely the online. What is more, new
fashion businesses are likely to have one advantage over their historic competitors: their
size. Their lean structure would indeed allow them to test and adapt quicker than larger
companies.
!5
As the range of actors within the fashion industry has become quite broad over the years -
between fashion labels, fashion bureaux, fairs, showrooms, retailers and platforms, we
have decided to focus for that thesis on fashion labels - to see whether the development of
the Internet and social media has really made it easier today to launch a successful
business.
As social media have evolved quickly over the past few years - in terms of platforms and
features, and as a result have substantially transformed the fashion industry - heavily
relying on Instagram for its promotion and more recently for its selling - in a short period
of time, there is little (if any) literature on that specific topic, hence the need for that
academic work.
In order to carry out that thesis, I adopted an observational approach: I studied business
cases, analysed specialised press articles and monitored brand activities online and offline,
while reading reference books about the global fashion industry evolution. I tried to
identify the key success factors, as well as the pitfalls to avoid - turning the challenges into
opportunities. To be noted that most young fashion labels that are succeeding - or about to
become profitable - have not gone public yet, thus financials are not easily available -
considering that founders / CEOs tend to keep those figures secret in interviews. As a
consequence, the conclusions of that thesis would need to be confirmed by time (and future
public results) - keeping in mind that technology evolves at a fast pace, and that the
ultimate key to success is the ability to adapt quickly and well.
That being said, I wish you a pleasurable reading - hoping that this thesis will bring you
some insight on the fashion industry.
The results of that thesis were updated in the light of the Covid-19 development worldwide
at the end of May 2020.

!6
TABLE OF CONTENT
INTRODUCTION (Page 9)
1. THE DEVELOPMENT OF THE INTERNET AND SOCIAL MEDIA DOES
MAKE IT EASIER TODAY TO LAUNCH A SUCCESSFUL FASHION LABEL
1.1. Business (Page 11)
1.2. Customer and Competitors (Page 12)
1.3. Product Development (Page 13)
1.4. Selling (Page 14)
1.5. Promotion (Page 16)
2. BUT IT ALSO RAISES NEW CHALLENGES, WHILE NOT SURMOUNTING
ALL OLD OBSTACLES
2.1. Business (Page 25)
2.2. Customer and Competitors (Page 26)
2.3. Product Development (Page 27)
2.4. Selling (Page 28)
2.5. Promotion (Page 31)
3. SO HOW TO TACKLE AND OVERCOME THEM?
3.1. Business (Page 34)
3.2. Customer and Competitors (Page 42)
3.3. Product Development (Page 43)
3.4. Selling (Page 47)
3.5. Promotion (Page 53)
CONCLUSION (Page 63)
!7
BIBLIOGRAPHY (Page 64)
APPENDICES (Page 67)
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INTRODUCTION
What constitutes a fashion label ? A fashion label is primarily a brand - with its
story, values, mission. It is its universe, what is stands for, and hopefully this matches the
idea the consumer has of the brand. A fashion label has a style, and a signature / codes -
which are the physical manifestations of the brand identity (logotype, visual symbol, a
colour, a favourite material, specific motifs), and that appear everywhere from the product
to the store layout via the packaging and the communication, and make the label unique
and recognisable among others. A fashion label relies on its customer and competition
knowledge to satisfy its target customer while setting itself apart from its competitors. A
fashion label relies as well on merchandising planning - which products (apparel, shoes,
bags, accessories), in which quantities and at which prices - to ensure sales, growth and
profitability. A fashion label implies a supply chain for the production, transportation and
storage of the goods, as well as distribution channels to enable selling. A fashion label
resorts to promotion, and endeavours to deliver the best customer experience. Finally, a
fashion label could not exist on the long term without financial planning.
A successful fashion label is a fashion label that is currently generating profits, and
with the ability to do so on the long term. There is no ethic consideration in that definition.
Though, ethic is implied as it is a new customer expectation (fashion labels need to operate
ethically if they want to sell and avoid boycotts), and as it is a condition to the planet
subsistence (fashion labels need to operate in a sustainable way if they want to have human
resources and materials for the production of their goods, as well as living human beings to
buy them on the long term).
How to generate profit then? There are two ways - that can work concomitantly :
increasing sales revenues (converting more customers, offering and selling more products -
through brand extensions, cross-selling and up-selling, increasing prices) and decreasing
costs (materials, direct labor costs, duties and freight, warehouse and store rents,
!9
warehouse and store operational costs - which includes staff payment, office rent, payroll,
administrative costs - which includes legal costs, and finally promotion expenses). To be
immediately noted that small fashion labels have not the size power of larger companies to
pressure and negotiate prices downwards with stakeholders.
Additionally, the profit generation raises the question of its limit: should a fashion label
endlessly look for more profit? Or should it set itself an objective / limit in terms of profit
generation? And in either way, for which purpose / why?
Technological progress has enabled the development of the Internet and social
media, which can be defined as technological innovations, operating on a vast array of
devices (computers, smartphones, tablets, watches, televisions, virtual assistants such as
Amazon Echo or Google Home), and allowing sales, content production and publication,
as well as data collection and use.
The question is now to know whether that development of the Internet and social
media really makes it easier today to launch a fashion label able to generate profit on the
long term.
!10
1. THE DEVELOPMENT OF THE INTERNET AND SOCIAL MEDIA
DOES MAKE IT EASIER TODAY TO LAUNCH A SUCCESSFUL
FASHION LABEL
1.1. Business
The development of the Internet and social media makes it easier today to launch a
successful fashion label as it makes easier to find and reach people, thus enabling
collaborations between people that live far away from one another, or simply do not know
one another.
In the case of young fashion labels, it is particularly useful: to find mentors - people
within the industry that would share with them their expertise, give them advice and give
them access to their network ; to find business partners - as successful fashion labels often
rely on a partnership between one creative individual (in charge of design) and one
business individual (in charge of operations) ; to find investors - as fashion labels will most
likely need money to be launched and later on scale up ; to find suppliers - people
intervening in the production / supply process ; to find buyers - people working for retailers
that can stock and sell the merchandise of the brand ; and finally to find any other
stakeholder that would intervene in the product development, the selling or the promotion
process. And depending on the type of interlocutor, fashion labels might look for them on
the Internet, and then reach them by e-mail and/or through LinkedIn or Instagram.
In particular, the development of the Internet and social media has made it easier today for
fashion labels to find financing. Indeed, donation-based crowdfunding platforms (such as
Kickstarter or Indiegogo), as well as investment crowdfunding platforms (such
Crowdfunder), have emerged on the Internet - while social media enable fashion labels to
promote their crowdfunding campaigns and have people contribute. To bear in mind:
crowdfunding might take time and energy, and make project / products visible (thus
potentially encourage copycats), but it will also enables fashion labels to test their ideas -
!11
see if people like them, while advertising and starting building a community of brand
ambassadors.
1.2. Customer and Competitors
The development of the Internet and social media makes it easier today to launch a
successful fashion label as it makes the market research easier and richer - and
consequently the brand target and positioning more accurate and relevant.
Fashion labels can indeed easily find information online : the size of the market - to
then estimate their customer segment size and calculate their potential revenues, any
political / economic / technological change that would affect their market and strategy, who
is their customer - to make sure they fully satisfy his / her expectations in terms of product,
price and global experience, and that they communicate with him / her in the most suitable
way, who are their competitors - to make sure they are different and better than them, and
finally what other companies - in whatever sector - are doing in terms of selling and
promotion so as to find inspiration and potentially modify their strategy.
In particular, fashion labels can use Instagram to study their customers and see which
accounts they follow, what kind of content they like / comment / share, what king of
language they use, what king of clothes they wear, in which kind of places they go, which
king of events they attend. And to gather more specific qualitative information, fashion
labels can resort to social listening - monitor what people say about a product, a brand, a
company or even the industry on forums, blogs and social media - as well as to
netnography - join an online community of product or brand users and engage with them
(asking them questions pretending to be a normal user). What is more, fashion labels can
use brand websites and social media accounts to monitor the activity of their competitors -
their product offer, their stockists and stores, their communication and promotion activities
- as well as the activity of retailers - to figure out where they could be stocked and who
would be they competitors there.
!12
As Alison Lowe MBE (2019) pointed out, that online market research should not
substitute but rather complete a primary research on the field: visiting stores, analysing
product offers, visual merchandising and atmospherics, observing how sales assistants and
customers behave and interact.
1.3. Product Development
The development of the Internet and social media makes it easier today to launch a
successful fashion label as it makes it easier for designers to find inspiration, identify
trends, involve customers and have people collaborate to develop products.
The Internet and social media are indeed incredible tools for designers to find
inspiration, as they make a rich variety of content - films, music, paintings, photographs,
books - that is material for further creation, accessible to everyone for free or an affordable
price online. For instance, Gucci creative director Alessandro Michele was inspired by
Malian artist Malick Sidibé’s photographs - available online - for his 2017 Pre-Fall
campaign , while the collections of London-based label COTTWEILER are largely1 2
influenced by UK Grime sub-culture - well documented online.
What is more, the Internet and social media - through Instagram, blogs and the
online press - enable designers to identify trends without buying expensive “Trend
Books” from Style Bureaux - knowing that Nelly Rodi’s Trend Book costs 2 000 €.
In addition, the Internet and social media enable fashion labels to involve
customers in the design process - ensuring in this way sales for the co(nsumer)-designed
products. It can take the form of online-facilitated customised products - customers can
buy a product on the brand e-commerce website and there choose the colour and/or motif
of the different fabrics, and/or add their initials or a message on it. It can also take the form
https://www.gucci.com/us/en/st/stories/advertising-campaign/article/pre-fall-2017-advertising-campaign1
https://www.cottweiler.com/2
!13
of community products - which designs are created and selected by the brand online
community (see Threadless business model), or fashion labels can simply ask - through its
website or social media accounts - its customers for their feedback on product ideas or
alterations (see Appendix 1 - AVAVAV Survey appearing as a pop-up form on their website
and sent in their Newsletter). As Strugatz Rachel (2019) pointed out, influencer Danielle
Bernstein modified her collections developed in collaboration with swimwear brand Onia
according to the feedback she got from her following on Instagram (through polls, quizzes
and questions in Instagram stories).
Finally, as the Internet and social media make it easier to find and reach people all
other the world (as stated in 1.1.), it makes it easier to collaborate with people - either for
product design (collaboration with another brand, an influencer / celebrity or a creative
mind) or the production itself (suppliers and manufacturers).
1.4. Selling
1.4.1. Direct-to-Consumer
The development of the Internet and social media makes it easier today to launch a
successful fashion label as it allows to sell direct-to-consumer through several online
channels - at a low cost and without compromising on the quality of the service but on the
contrary enriching the overall customer experience.
Today, fashion labels can easily launch an e-commerce website through platforms such as
Shopify, SquareSpace or Wix, and/or a social e-commerce though platforms such as
Instagram and/or WeChat. Older platforms such as Ebay, Etsy and Depop seem less
relevant today, which proves how fast the Internet and social media evolve - thus requiring
fashion labels to adapt quickly and well.
!14
Running an e-commerce is indeed less expensive that managing physical stores due to
prime location high rents and a higher number of employees needed in the case of physical
stores, when the price for e-commerce platforms and warehouse rents are relatively
inexpensive. Furthermore, e-commerce potentially increases sales revenues: by increasing
the number of customers - as potential customers are global and not limited by their
geographical distance to physical stores, and by increasing the average ticket - as data can
be collected online and automatically used to cross-sell and up-sell, while sales assistants
might not have the time or might not be willing to do it in store. This is why online direct-
to-consumer fashion label Faithfull The Brand - offering affordable ($150) ethical
feminine beachwear and swimwear - could be launched and succeed: they are based in a
remote low-cost place - Bali, Indonesia - but can rely on global customers’ orders to
generate profits.
Besides, an e-commerce is convenient for customers as they can buy very easily and
quickly, whenever and from wherever they want - they are not limited by opening hours
and store locations.
In addition, the development of the Internet and social media enables fashion labels to
develop an upgraded CRM strategy during the pre-purchase, purchase and post-purchase
phases of the customer journey - through Instagram / WhatsApp / WeChat private
messengers, Newsletters, chatbots, FAQs, forums / communities, while physical stores can
only rely on their sales assistants to nurture the customer relationships when customers are
in the store.
As Joseph Pine and James Gilmore (1999) explained, people are now looking for
experience: when they are buying a product, they are actually buying a product and the
experience that comes with it and that is delivered throughout the customer journey via
touch points. Consequently, brands have to deliver the best customer experience in each
touch point that constitutes their customer journey (in the pre-purchase, purchase and post-
purchase phases). What is more, anything that would remind the customer about his / her
experience is valuable to him / her, as it would enable him / her to relive in spirit that
!15
experience - thus extending / increasing the experience itself. As a result, customers appear
to buy a product, an experience and a memory (that can take the form of a physical or
digital souvenir). This is why social media - as they enable customers to share pictures /
videos of their experience and look back at them - help fashion labels increase their value
offer.
1.4.2. Wholesale
The development of the Internet and social media makes it easier today to launch a
successful fashion label, as it allows to find and reach buyers (as explained in 1.1.) in order
to be stocked in retailers - without having to pass by expensive fashion fairs, showrooms
or agencies. To be noted: founders’ personal Instagram accounts as well as the brand
website and social media accounts should be well curated as they would act as résumés /
business cards and portfolio for any potential buyer.
1.5. Promotion
The development of the Internet and social media makes it easier today to launch a
successful fashion label, as it offers new - and potentially inexpensive - marketing
communication opportunities to recruit and retain customers, while enriching the
customer journey.
1.5.1. Owned Media
Fashion labels can rely on their website - and invest time in Search Engine
Optimisation (SEO) to appear on search engine top results - and social media (Instagram,
WeChat, TikTok, Snapchat, YouTube, Pinterest, Twitter, Facebook, LinkedIn) to
communicate in a potentially inexpensive way (depending on the money they put in the
content production). To be noted that depending on the customer targets, some social media
!16
should be privileged while others should be avoided. But today, one social media - and its
Chinese counterpart - is mandatory for any fashion label, namely Instagram (and WeChat).
Instagram was launched in 2010 but has really become relevant for fashion labels since
2014 when it enabled advertising. It has since developed business features: analytics in
2016, social shop in 2018 with social check-out in 2019 (which allows brands to sell
directly on Instagram without needing a linked e-commerce website), virtual reality try-on
for beauty products that should be extended to fashion in the coming months. It has also
developed business-friendly features: Instagram stories with their features - including
product stickers to shop them, IGTV and live. And it keeps developing new ones in order
to satisfy the needs of the fashion industry, as highlighted by Instagram very first Director
of Fashion Partnership Eva Chen.
One of the main advantages of Instagram is that it allows fashion labels to directly talk to
their audience in an authentic and intimate way, which is what customers are looking for
today - genuine conversation / getting personal. This is why fashion labels should invest
time on Instagram engaging with people matching their target customer and building their
community - by liking, commenting (in a more elaborate way than just “😍 ”), taking part
in conversations. As Faithfull The Brand co-founder Helle Them-Enger told Amy De Klerk
(2019), “As a self-funded company we initially could not afford to spend on marketing and
traditional advertising so social media was our only channel to reach new customers”.
Moreover, Instagram has reinforced customer’s attention to visual content as it has
increased the visual content production. As a result, fashion labels must create excellent
quality visual content - for all their platforms - to compete and try to stand out: high-
resolution images and videos are no longer enough, fashion labels need to be creative
(surprise their audience) and playful (entertain their audience) - while engaging with a
clear and concise call to action (not necessarily commercial!). Here some examples of
compelling content: for Instagram - from Louis Vuitton in collaboration with influencer3
https://www.instagram.com/tv/B81sWJwnI6Z/3
!17
Leandra Medine Cohen, and for a website / App / Newsletter - from Italian label The
Attico . Besides, fashion labels should research the type of content their customer targets4
like / comment / share, as well as the kind of language they use in order to adapt their
content accordingly - keeping in mind than today it is more about experience-focused /
lifestyle / dream content rather than product-focused / commercial content. Here some
examples of compelling types of content given by Alison Lowe MBE (2019):
- “ Behind the scene (see Appendix 2 - Ottolinger Instagram Story)
- Teasing products and events (see Appendix 3 - Sézane Newsletter “Vous Faites Quoi
Dimanche ? 💌 ” and Appendix 4 - Nanushka Newsletter “What’s On This Week”)
- Showing how the product is made (here an example from Marine Serre and another5 6
from Louis Vuitton)
- The Transparency process of the brand (see Appendix 5 - Reformation Newsletter
“Not Just a Pretty Dress”)
- Interesting articles on sustainability or fashion trends
- Pieces on customers or brand ambassadors (see Appendix 6 - The Frankie Shop
“SHOULDER TSHIRT” Highlighted Story)
- Styling tips (here an example from Dutch label Scotch & Soda)7
- Interesting features on travel, health, mindfulness
- Reviews on films, hotels and dining out (here an example from Hungarian label8
Nanushka)
- New music or book features
- Social change, charity projects, campaigns ”
- To which we can add, sharing inspirations, obsessions and believes.
https://www.theattico.com/en/editorial?library=editorial-horoscope-june-20204
https://www.theattico.com/en/editorial?library=editorial-strike-a-pose
https://www.theattico.com/en/editorial?library=editorial-evangelie
https://www.youtube.com/watch?v=3KpIvfNXB-M5
https://www.instagram.com/tv/B3fB1skDBdw/6
https://www.instagram.com/tv/B5AzCTKFSH6/7
https://www.youtube.com/watch?v=t-Hzs2AZzcg8
!18
Fashion labels should use analytics to see which type of content, which format (live,
videos, images) and which time work best, and adapt their content production and
publication accordingly. To be noted: regularity is key on social media - post every day or
two day at the same hour. What is more, with the multiplication of platforms and content,
fashion labels need to make sure to be consistent in terms of messages (linked to the brand
story, its values, missions and products) and aesthetic across channels, hence implementing
clear guidelines.
1.5.2. Paid Media
Today, fashion labels can pay for Search Engine Advertising (SEA) to have their
website appear in the first results on search engines such as Google or Yahoo ; they can pay
for digital spaces - a video or a website - to promote their brand through display and video
advertising ; they can resort to social media sponsored content to promote their content
on various social platforms (see examples in Appendix 7) ; finally, they can call on
influencers / celebrities to do paid collaborations in which those public figures would
promote the brand. To be noted that in that case it is more interesting to develop long-term
partnerships (with public figures enthusiast about the brand that would become brand
ambassadors) rather than one shot collaborations - so as to capture the influencer’s /
celebrity’s audience thanks to authenticity and consistency. When choosing the influencer /
celebrity, fashion labels should make sure that he / she fits the brand identity and that its
target audience can relate to him / her (in terms of age, style, values, interests), that the
influencer’s / celebrity’s following matches the brand target audience, and that he / she has
not just a high number of followers but rather a high engaging rate (comments / shares),
and finally that he / she publishes high quality content - as depending on the partnership
terms he / she would potentially create the content featuring the brand himself / herself.
Chiara Ferragni’s long-term partnership with Dior is a good example: the fashion blogger
behind The Blond Salad successfully turned influencer has been collaborating with the
French fashion house for several years in a partnership that is halfway between paid and
unpaid collaborations, as Chiara Ferragni would appear in Dior-staged shoots (paid
!19
collaboration with the mention “#ads”) , but also on her own organic content with products9
that would have been offered to her by the brand (unpaid collaboration) - not to mention10
the invitations to fashion shows and the dresses designed for her wedding which had a11 12
lot of online coverage.
Besides, it worths noting that with the development of the Internet and social media some
older online media such as blogs appear as less relevant today. Gone seem the days when
bloggers would be paid to feature a product on their blog or earn a commission through
affiliate programs. Though, affiliate programs have taken a new form in the IG era:
influencers would invite their following on Instagram or YouTube to checkout on brand e-
commerce website with a specific code - entitling them to a special discount, while brands
and influencers would in this way be able to monitor the sales driven by the influencers
and then calculate their commissions. Furthermore, bloggers who have been able to adapt
quickly and well to the development of social media, thus embracing Instagram, have
proved very successful - generating for some thousands (if non millions) of dollars, and
now flooding the shelves of our favorite bookstores (and even movie theatres, watch
Chiara Ferragni’s 2019 biocumentary Unposted). This highlights the importance of
adaptability to the development of the Internet and social media for the whole fashion
industry.
Online paid advertising presents some advantages over traditional paid media. First,
fashion labels can precisely choose their target thanks to data: should they do an
awareness campaign targeting everyone or individuals with specific characteristics - to
make them know (more) the brand? Should they do direct response prospecting targeting
specific people at a specific time - to trigger an action such as going to a webpage, placing
an order or subscribing to a Newsletter? Or should they do retargeting - to remind people
https://www.instagram.com/p/Bvg6CA9lqu9/9
https://www.instagram.com/p/Bwd1xU0B__6/10
https://www.gettyimages.co.uk/detail/news-photo/chiara-ferragni-attends-the-christian-dior-womenswear-11
news-photo/1176793887
https://www.harpersbazaar.com/uk/bazaar-brides/a23007728/chiara-ferragni-wedding-dress-dior-video/12
!20
that have shown interest in a brand or product of it (thanks to their activity online and the
so-called “cookies”). Consequently, fashion labels can personalise their messages
according to their target (for example using a picture of a mature lady wearing their
products for their mature audience, and the same products but on a younger individual for
their younger audience). Second, online paid advertising allows measurability with
multiple KPIs - Cost per view, Cost per click, Cost acquisition, Click-through rate, etc. -
which in return enables fashion labels to optimise their marketing communication strategy
and budget accordingly. Finally, the execution of online paid advertising is faster than the
one of traditional paid media, as ads are running in a few clicks, while fashion labels have
to negotiate and spend far much time to have them release on TV, on the radio, in the press
or out-of-home.
1.5.3. Earned Media
Fashion labels can use social media, and in particular Instagram, to reach
influencers / celebrities and make unpaid collaborations - offering them products and/or
inviting them to exclusive events, in exchange of having them post and tag the brand on
social media. Still, fashion labels should ensure the collaborations make sense in regards of
the brand identity and customer target on the one hand, and the ambassador’s image and
personality on the other hand.
Fashion labels can rely on the community to like, comment and share the brand
content, to mention the brand in their own content, to talk about the brand on social media
or on the Internet, to rate the brand and let reviews. In a word, fashion labels can rely on e-
word-of-mouth from the Internet and social media community - knowing that it is the
most effective form of advertising according to Nielsen latest report on Global Trust in
Advertising (2015), see Appendix 8. As claimed by Robert Cialdini (1984), people tend do
make decisions based on what others do (social proof). As Faithfull The Brand co-founder
Helle Them-Enger told Amy De Klerk (2019), “We wouldn’t be where we are without
social media and our supportive and loyal muses”. The label could indeed rely on
enthusiast customers to share pictures and mention the brand, in particular influencers such
!21
as Lucy Williams, Bettina Looney and Monikh Dale - who can appear as authority figures
and for whose Faithfull The Brand travel-inspired clothing would perfectly match their
lifestyle.
One of the main advantages of social media over traditional media is its ability to share
content to millions of people in a very short amount of time thanks to users’ ability to
mention and share, and thus create the buzz. To be noted that content will go all the more
viral as it is shared by people with high following, hence the interest for fashion labels to
have among their enthusiasts public figures. For instance, as Tora Northman (2019)
stressed, Jacquemus’s success rests in part upon the support of celebrities such as Kylie
Jenner, Emily Ratajkowski or Bella Hadid who contributed to create the buzz around
products such as the Chiquito tiny bag and La Bomba oversize straw hat - posting pictures
of them with those products on Instagram.
That is why some fashion influencers - with high following and engagement rate - have
decided to launch their own fashion label relying on the power of their community (see
Aimee Song’s Song of Style or Jeanne Damas’s Rouje ). In particular, as 2M-follower13 14
Instagram influencer Danielle Bernstein (2020) explains in her autobiographic book, she
has succeeded in selling out - online direct-to-consumer - five capsule collections of SSO
by Danielle overalls since 2016 - each time in a few hours thanks to her very engaged
following, generating in this ways thousands of dollars.
Fashion labels can exploit the Internet and social media community’s content (see
Gucci re-using one of its enthusiasts’ content on its own Instagram page ). Furthermore,15
fashion labels can encourage the community to produce and publish content featuring the
brand: in this way, the community would not only contribute for free to the brand
promotion online but also create content that the brand could re-use for its promotion on
its owned media. For instance, Danish brand Ganni invites its customers to use its
https://www.shop.songofstyle.com/13
https://www.rouje.com/14
https://www.instagram.com/tv/CALZ42xgVXs/15
!22
community hashtag in the first Newsletter they receive (see Appendix 9) and then posts
their looks - shoppable - on its e-commerce website , French fashion label Rouje would in16
addition ask its customers their thoughts on the brand , while French label Musier would17
post its ambassadors’ (nicknamed “muses”) content for inspiration on its website . So as18
to encourage the community to produce content, fashion labels can create engaging
community hashtags (see #mycalvins ) as well as initiatives / contests (see French label19
Fête Impériale “Les Baigneuses” challenge , Prada SS20 campaign initiative or20 21
#GucciChallenge ).22
Fashion labels can use their employees as brand ambassadors - encouraging them to
promote the brand from their personal social media accounts (especially founders and
creative directors), and exploit their personal networks - for further collaborations. In
particular, Alexandra Mondalek (2020) elaborates on the role founders can play: they can
act as brand ambassadors while staying genuine / authentic (no need to pretend to wear
exclusively their brand or perfectly embody the values of the brand all the time - simply be
human and transparent) ; they can engage with their following - to potentially get valuable
feedback for the brand, better know their customer, or simply connect with them ; however,
founders would become in this way public figures and thus would have to be careful about
their actions - in particular, they should be careful about what and when they post (for
instance avoid promoting / defending controversial issues, or share content that might be
seen as too frivolous by the society / the world community in regards of the seriousness of
the times). A good example of founder’s communication is Brandon Maxwell who engages
with its audience in a very personal way - through his YouTube videos or Instagram23
https://www.ganni.com/en-gb/ganni-wfh-social-wall.html16
https://www.rouje.com/les-filles-en-rouje/17
https://musier-paris.com/en/pages/les-muses18
https://www.instagram.com/explore/tags/mycalvins/19
https://feteimperiale.fr/pages/limperialist-les_baigneuses20
https://www.prada.com/gb/en/pradasphere/special-projects/2020/acronyms.html21
https://www.harpersbazaar.com.au/fashion/gucci-challenge-viral-meme-1585122
https://www.youtube.com/watch?v=uYyY-KIhGS423
!23
lives in which he invites his followers as co-hosts and talks with them, thus contributing24
to the brand promotion. This is the reason why some fashion labels take into consideration
potential employees’ personal social media accounts and networks when hiring now.
Finally, the development of the Internet and social media makes it easier today to
launch a successful fashion label, as it allows to find and reach journalists and stylists (as
explained in 1.1.) in order to be featured in magazines (print and/or digital) and their social
media accounts - without having to pass by expensive PR agencies. And again, founders’
personal Instagram accounts as well as the brand website and social media should be well
curated - as this is what people in the fashion industry look at first today.
https://www.instagram.com/tv/CAJlFcRjK2h/24
!24
2. BUT IT ALSO RAISES NEW CHALLENGES, WHILE NOT
SURMOUNTING ALL OLD OBSTACLES
2.1. Business
Even though the development of the Internet and social media makes it easier today
to launch a successful fashion label (as explained in 1.), fashion labels still have to create
their brand and corporate entities, find financing and grow their business - while
copying with any political, economic, social, technological, environmental or legal
change / crisis.
Fashion labels need indeed to create a brand identity - define its name, logo,
signature, values and mission. To be noted that it is today all the more important for
fashion labels to have clear values and a mission / purpose, as customers expect them to be
committed and involved in making the world “a better place”. What is more, fashion labels
have to create a legal structure for their company, open a bank account, have someone
manage accounting, subscribe insurances, register their trademark and file patents for their
designs, manage organisational and human resources issues, make stakeholders sign
confidentiality and non-disclosure agreements.
Moreover, fashion labels need to write a business plan and find financing - which
sources go from self-financing, family, friends, crowdfunding, business angels, banks,
Venture Capital to Private Equity depending on the stage of growth of the company. In
addition, fashion labels need to make sure they reach, maintain and grow profitability -
while being cautious about giving up equity. As former merchandiser turned investor
Millard Drexler (2020) explains, most VC investors have no particular knowledge in
fashion retailing, simply look for confident people able to prove with projections their label
will be able to grow revenues with an investment - thus overlook profitability, and will
withdraw as soon as they can (as this is their logics) - thus not invest in the company’s long
term growth / profitability. In particular, fashion labels should be careful about money
allocation and learn from NastyGal, which filed for bankruptcy protection in 2016 and was
!25
sold to Boohoo for only 40 million dollars after raising 40 million dollars of funding back
in 2012 because it spurred money in too many directions in the same time (instead of
focusing its effort in one direction at a time - trying to solve its bottleneck / main constraint
to scale up) and invested in expensive customer acquisition marketing, not to mention that
fashion labels should define their pricing strategy wisely.
Finally, fashion labels need to take into consideration any political, economic,
social, technological, environmental or legal change / crisis that might occur in the
countries they are operating and that might affect their business.
In particular, with the development of the Internet, fashion labels need to comply
with data protection regulations, and specify their cookies policy and privacy notice on
their website.
2.2. Customer and Competitors
As the development of the Internet and social media has made it easier for people to
launch a fashion label, the number of actors in the fashion market has considerably
increased, making it all the more difficult to cut through the noise / stand out - especially
online - in today’s very saturated market.
What is more, with the development of the Internet and social media, it has become
harder for fashion labels to convert people into customers as they are more
knowledgeable and have higher expectations in terms of experience.
Indeed, customers are now able to go online, look for information and compare all the
brands and products, not to mention that they are more rational (top-down attention) when
buying online as they are not influenced by the store environment which is designed to
trigger purchases. Furthermore, customers are now used to high quality products / services
and experiences, hence expecting always more from any brand from any industry. An if the
!26
Internet and social media are incredible opportunities for traditional brands with physical
stores to enrich their customer experience, it is very difficult for online pure players to
compete with those traditional brands with physical stores in terms of customer experience
in the purchase phase: it is quite challenging to offer a high quality experience - both
sensory and emotional - through screens.
As a result, it is today all the more challenging for fashion labels to stand out in a
very crowded market and succeed in persuading customers to buy from them, but also to
turn customers into loyal customers and brand advocates - as the development of the
Internet and social media has made it really easy for customers to compare brands and
switch from one to another.
2.3. Product Development
With the development of the Internet and social media, fashion labels are
immediately global and so are their customers. As a consequence, it is all the more
necessary for fashion labels to take diversity (sex, gender, size, ethnic group, religion, age,
disabilities) into account when designing. What is more, seasons are no longer relevant for
global brands as when it is winter in the Northern hemisphere it is summer in the Southern
hemisphere - not to mention climate imbalance and the fact that people travel more.
Besides, even though the development of the Internet and social media makes it
easier today to launch a successful fashion label (as explained in 1.), fashion labels still
have to produce goods and deliver them.
Indeed, fashion labels still have to deliver products: they still have to source materials -
which often requires to attend Première Vision fair, make range plans, make specification
sheets, patterns and samples for each product, find the right suppliers and work in close
collaboration with them to ensure products are made as required / desired and deadlines
respected. It is all the more important for young fashion labels to follow-up with suppliers
as they are likely to not be their priority - as their orders tend to be less consequent in terms
!27
of volume and/or value than more established brands (at least at the beginning). To bear in
mind: if the Internet and social media enable fashion labels to reach and work remotely
with stakeholders, in the case of manufacturers it might worth contemplate being
geographically close to them in order to regularly visit them and check everything is under
control - or at least plan to travel. This is the reason why Faithful The Brand founders
Sarah-Jane Abrahams & Helle Them-Enger, respectively Australian and Norwegian,
decided to move to live respectively in Bali and Singapore to be close to their factory
based in Indonesia.
Furthermore, fashion labels still have to figure out logistics: make sure materials arrive in
time and in good condition to manufacturers, but also that products are delivered to stores
or directly to consumers in time and in good condition. Fashion labels should consider
having warehouses or implement a drop shipping supply (in which a manufacturer or
wholesaler or other retailer takes care of the shipment to the final customer). They should
define their shipment policy and price - keeping in mind that returns will be more
numerous in the case of online pure players (as customers will not have the opportunity to
try on products). What is more, fashion labels still have to take into account national
regulations regarding on the one hand product commercialisation - as the sale of some
products are forbidden in some countries (for instance, fashion labels could not sell a
fashion book in the United Arab Emirates), and on the other hand duties - that are affected
by geopolitics (see Trump’s America first policy, Brexit).
Finally, fashion labels still need to design and produce packaging, and with the
development of the Internet and social media, it is all the more important for fashion labels
to have their packaging deliver the best customer experience as it might be the very first
physical contact between the customer and the brand through the product: consider boxes,
pouches, tissue, ribbon, “thank you” note (see examples in Appendix 10).
2.4. Selling
2.4.1. Direct-to-Consumer
!28
Even though the development of the Internet and social media makes it easier today
to launch a successful fashion label, as it allows to sell directly to customers through e-
commerce websites and social e-commerce (as explained in 1.4.1.), fashion labels need
to maintain those platforms up-to-date. In particular, they must ensure that their website is
all-device-friendly, that there is no bug, that pages download quickly, that the navigation is
easy, that it is aesthetic and in line with the brand visual guidelines, that the payment
service provider is safe and that the overall website inspires trust to customers. One
counterexample is fashion label Coucou bebe 75018 which is not a fraud but people might
think twice before buying from it as the website and store policy do not really inspire25
trust but rather suspicion.
Besides, with the development of the Internet and social media, it is all the more
important for fashion labels to handle CRM correctly as everything goes public easily and
quickly. Fashion labels must satisfy customers and handle returns, issues, complaints and
bad reviews - which are more likely to happen when buying online without seeing / trying
on products and having personal sales assistance. In addition, returns are more likely to
happen in the IG era because of the “Cinderella syndrome” defined by Dana Thomas
(2019) as “the resolute avoidance of being seen on social media in the same outfit twice”:
people would buy clothes online, pose in them for their Instagram post - while hiding the
tag, and then return them. According to the McKinsey report on the fashion industry
(2019), the return rate for apparel bought online is 25% versus 16% for apparel bought in
store.
What is more, as customers are now global, fashion labels should consider the
languages and currencies they use. In particular, they should offer different options online
according to their top nationalities (in terms of sales).
Moreover, as the fashion market is saturated and customers have more information
to compare brands as well as higher expectations in terms of experience - because of the
https://www.coucoubebe75018.com/store-policy25
!29
development of the Internet and social media (as explained in 2.2.), fashion labels need
physical spaces to recruit and retain customers. According to the Bain market study on
luxury goods (2019), more than 70% of purchases in the fashion category are still made
offline while 75% of transactions are influenced by the online channel, which depicts the
new web-rooming trend - customers research products online before buying them in
physical stores to enjoy the full customer experience - and highlights the complementarity
between online and offline, hence the necessity for both channels.
As a consequence, fashion labels must have physical stores, which present several
advantages: they act as living advertisement billboards - they are part of the brand
promotion strategy ; customers can touch and try on products - which creates a sensation of
ownership and leads to purchasing ; sales assistants can deliver the brand experience to
customers and create a bond with them - using data from their CRM tool (for a more
curated / personalised experience) while gathering more qualitative data on customers (to
enrich the brand CRM database). Furthermore, the interior design, visual merchandising
and other atmospherics (smell, music) - in line with the brand identity - are designed to
offer customers a bewildering multi-sensory experience so as to lured them into buying
(emotional-based decision). To be noted that studies showed that an environment
permeated with a pleasant perfume makes consumers more willing to spend time and
money, while music played in the background influences traffic flow and spending. All in
all, physical stores aim at delivering a surprising, entertaining, pleasurable, multi-sensory
experience to customers.
Fashion labels having their own physical stores have full control over the experience they
deliver to their customers. Though, it comes at a high price due to prime location rents and
employees’ wages - keeping in mind that sales assistants are fundamental as they are the
ones (cross-)selling and delivering the customer experience, so fashion labels should make
sure to keep them happy.
2.4.2. Wholesale
!30
Given the high costs of owning physical stores, young fashion labels should consider first
wholesale, which would give brands visibility and credibility in exchange of lower
margins. While online pure players would only give brand visibility and credibility,
retailers with physical stores would enable the customers of fashion labels to touch and
try on products. Nevertheless, fashion labels would have less control over the customer
experience described in 2.4.1. Furthermore, fashion labels would have to organise fashion /
trade shows - that could be expensive - to sell their collections to wholesalers.
As Alison Lowe MBE (2019) explained, wholesale is less risky for fashion labels as they
do not hold stock and would launch production once they have received the order and a
deposit. The thing is, with the development of the Internet and social media and the
consequence fiercer competition, retailers with physical stores have been challenged and
now tend to work only with “established” emerging brands and on sale or return basis
(making thus fashion labels holding stock / risk), and if not on a sale and return basis they
tend to go crazy with discounting - at any time in the season for any occasion, which is
potentially harmful for the brand image. What is more, retailers with physical stores are
likely to ask fashion labels for product exclusivities and events, while asking for seasonal
collections (one spring-summer and one fall-winter to align with their other brands).
2.5. Promotion
2.5.1. Owned Media
The development of the Internet and social media really makes it easier today to
launch a successful fashion label (as explained in 1.5.1.), though it takes time and
regularity / discipline to produce compelling content, engage with potential customers
and build a community online.
Besides, fashion labels are now immediately global, and thus need to make sure
diversity (in terms of sex, gender, size, ethnic group, religion, age, disabilities) and
!31
cultural particularities (for instance, not moral to show women’s bodies in Saudi Arabia)
are taken into account when producing and publishing content.
2.5.2. Paid Media
With the development of the Internet and social media and its consequence fiercer
competition, brands have invested more and more in online paid advertising - trying to
stand out in that crowded environment - making prices skyrocket and customers feel
harassed and disengage. As Cathaleen Chen (2018) pointed out, digital marketing has
become in many cases more expensive than store rents (even more so than pop-ups) - while
stores act as effective promotion means (unlike online paid advertising nowadays). It is in
particular the case with influencers: they have become very expensive (especially the ones
with high following and engagement rate) - while customers tend to no longer trust them
(at least the ones that would do one shot collaborations instead of marrying the brand -
genuinely loving the brand and thus committing in long-term partnerships as explained in
1.5.2.). According to the McKinsey report (2019), while 86% of companies uses influencer
marketing, the engagement rate for such sponsored posts on Instagram dropped from 4% in
2016 to 2% in 2019. In other words, online paid advertising has become non
(cost-)effective.
2.5.3. Earned Media
With the fiercer competition and the possibility to reach people online, journalists
and stylists receive hundreds of requests to be featured in publications, and as a result it is
difficult for fashion labels to stand out and succeed in appearing in the press unless they
organise some costly fashion shows. But those shows seem no longer relevant today.
Indeed, they are designed to show collections to editors and buyers - to have press
coverage and orders to launch the production and have the collections released /
commercialised 6 months later. But with influencers now invited to those shows,
everything is immediately posted online, and people want to buy the pieces they like and/or
see on influencers (no longer the pieces prescribed by the press) right now, but they have to
!32
wait. And in the meantime, given that everyone has access to the upcoming collections
online (thanks to press coverage and influencers’ posts on social media), people can copy
the designs of fashion labels. In the case in point, fast-fashion company Zara has proven
very successful in producing seen-on-catwalk products and having them deliver in stores
within a few weeks.
As a whole, after fashion labels have started selling their collections to customers,
as products are visible online, manufacturers can easily copy them and sell them either
direct-to-customer through Amazon or Alibaba, or wholesale through Amazon or
AliExpress to third parties that would then sell them direct-to-customer though online
websites and/or Instagram accounts. This is particularly true for online direct-to-consumer
brands as Chavie Lieber (2019) underlined. For instance, you can buy imitations of Khaite
signature design on a website called Hyley or on another website called Laven Stories26 27 28
- both ship worldwide from respectively China and the United Kingdom, advertise on
Instagram (with sponsored posts) and sell copies of other direct-to-consumer designer
brands.
Finally, with the Internet and social media, information easily goes public and
spreads quickly, thus ethical scandals are more likely to be revealed and go viral, hence
affecting brands image. This is the reason why fashion labels should all the more take into
consideration social and environmental responsibility, and avoid being put in a situation in
which they will have to defend themselves as H&M had to after producing in sweatshops
(see the Rana Plaza scandal ), burning unsold garments (see the 2017 investigation ) or29 30
promoting derogatory / discriminatory content (see the Monkey sweatshirt controversy ).31
https://khaite.com/collections/tops/products/the-maddy-top-in-cream26
https://hyley.com/collections/tops/products/ada-white-top27
https://lavandstories.com/collections/tops/products/oana-knit-top28
https://www.theguardian.com/business/2016/may/31/rana-plaza-bangladesh-collapse-fashion-working-29
conditions
https://fashionunited.uk/news/fashion/h-m-accused-of-burning-12-tonnes-of-new-unsold-clothing-per-year/30
2017101726341
https://www.nytimes.com/2018/01/08/business/hm-monkey.html31
!33
3. SO HOW TO TACKLE AND OVERCOME THEM?
3.1. Business
Fashion labels should build their business as described in 2.1. Besides, they should
grow their business in an organic way: use their own profit to grow their business, and
only when they are profitable and need a substantial investment (they cannot afford with
they own profit) raise money to scale up as Sézane successfully did when raising money to
open its own physical stores. To be noted that it is all the more vital to be profitable and
have liquidity in times of crisis, as Covid-19 development epitomised it.
!34
S É Z A N E
— Case Study
!35
aris-based Morgane Sezalory started selling vintage clothes on eBay in
2004. She launched in 2008 a website - Les Composantes - on which she
would sell monthly “capsule collections” of 100 customised vintage pieces
that would sell out in a few minutes. So, she added pieces she would design herself, and in
2013 she decided to design all the clothes she would sell, and rebrand the website into
Sézane - helped by two business partners (one former venture capitalist and one former
menswear brand co-founder). Morgane would design vintage-inspired French-style clothes,
shoes, bags and other accessories, and have them produce in local factories - they could visit
quickly - that would make very good quality (some of the factories would work with luxury
brands) and with which they would develop very strong relationships. As they would sell
online direct-to-consumer (no middlemen, no physical stores), they could offer high quality
fashion for relatively low prices (between 100 and 200€). They would have two seasonal
collections (turned today in one permanent collection named “The Essentials”) in addition to
monthly limited-edition capsule collections - for newness and avoid discounting / leftovers
(as everything would be sold out quickly), not to mention potential cash problems. They
would keep control of the shipping and logistics from a warehouse in France, as well as the
distribution channel - selling exclusively on their website (turning down requests from
department stores to stock them). However, they would do collaborations to gain exposure
and grow sales in new markets, in addition to pop-up stores-events called “The Sézane
Tour”. They have launched in particular 4 collections in collaboration with American brand
Madewell - which fits Sézane lifestyle fashion identity, customer and price range.
P
!36
Since the beginning, Morgane Sezalory has always wanted to be independent and grow
organically - be profitable and invest the profit to grow the business, what they did: they
raised money - keeping majority stake and ensuring investors would respect the vision
and values of the brand - in 2015 when they needed substantial funding to change their
logistical platform and open physical stores, and from then on opened stores in Paris
(2016), New York (2017) and London (2018).
!37
The stores called “apartments” are
designed as lively places where
customers can shop, enjoy spending
time and attend events (in particular,
customers can ask for a personal
styling session - and even reserve a
shopping soirée at a store with
friends, champagne and French canapes). Stores act as living billboards and contribute to
the brand promotion. The Paris apartment has its own coffee place / bookstore called “La
Librairie”, and each store has its own “Conciergerie” to facilitate returns and provide
customer services (such as alterations and personalisation) - as 80% of sales are still
made online, but also repair clothes and attend community events. Sustainability has
become all the more important to the brand along the years: a 5-person team is devoted to
corporate social responsibility, 40% of fabrics are either recycled or sustainably
manufactured, 60% of leather goods are made out of vegan leather, 70% of garments are
made in Europe, and they launched a charity program named “Demain” in 2018. Sézane
does not advertise: it relies on the product / experience, its owned and earned media to
attract and retain customers. Morgane Sezalory acts as a brand ambassador through its
very personal 200K-follower Instagram account - in line with the brand Parisian lifestyle
ethos, while Sézane delivers compelling lifestyle content through its Newsletter, its
“Journal” - available on its website and app, and its IG account (in particular its IGTV).
Finally, after a menswear extension in 2017, Sézane launched an activewear line in 2019,
and is currently working on a bridal line.
Fashion labels - that are now global with the development of the Internet and social media
- should resort to new communication technologies such as Zoom to enable remote work
between the different stakeholders, which would prove all the more useful during times
people cannot travel and see one another physically as during the Covid-19 pandemic.
Furthermore, fashion labels should have a mission / purpose - as today’s customers
not only want a product and an experience, but also a meaning. The ready-to-wear turned
ready-to-live is now turning into ready-to-engage. For instance, Diane Von Furstenberg for
DVF and Maria Grazia for Dior have been supporting women: Diane Von Furstenberg has
designed dresses for working women (see signature jersey warp dress - both feminine and
comfortable) since 1973, and gives annually a DVF award (alongside money and exposure)
to a woman who fights for women’s rights and inspires others to do so, while Maria Grazia
has raised issues and turned the spotlight on the contemporary feminine condition via its
designs and fashion shows since its appointment as Dior creative director in 2016 (see32
FW20 fashion show decor and conversation ).33 34
What is more, fashion labels should define a clear social and environmental
policy / code of conduct and be transparent about it - as customers having now access to
more information require it (see Appendix 11 - Nanushka Newsletter “We Are
Committed”). In particular, fashion labels should ensure an equal representativity in terms
of diversity (sex, ethnicity, religion, etc.), decent wages and good working conditions
within their company. However, fashion labels should remain pragmatic: be sustainable
but profitable, as Reformation epitomised it. In that perspective, fashion labels should try
to be as sustainable as possible, and go sustainable progressively (step-by-step) when
profits allow it, and always be very clear / transparent about it with its customers.
https://www.theguardian.com/fashion/2017/mar/18/maria-grazia-chiuri-fashion-feminism-fight-for-ideas32
https://www.vogue.fr/fashion/article/paris-fashion-week-feminist-decor-dior-show-fall-winter-2020-202133
https://www.youtube.com/watch?v=lH6aFBPVshE34
!38
!39
Californian-raised Yael Aflalo started refashioning
vintage clothes she would sold under the name
Reformation in a New York Lower East Side boutique in 2009. This business became a vertically
integrated direct-to-consumer business in 2012 : Yael Aflalo would make her fabrics in-house from
deadstock from other companies ; she would design a limited number of essential pieces for her
permanent collection in
addition to frequent drops of
small batches (as fast fashion
companies) - noting that she
would regularly keep the same
designs / shapes from one batch
to another simply changing the
fabrics (according to what she
would get in terms of deadstock
from other companies) ; and
she would produce her
garments in her factory - which
she would rent with machines -
in the industrial suburb of Vernon (near Los Angeles). As Dana Thomas (2019) pointed out, Yael Aflalo
embraces what Dana calls right-shoring - producing locally in good conditions - which is different from
re-shoring that consists in moving back production from oversea low-labor-cost countries (where wages
and working conditions are often not fair) to the home country (but that does not guarantee better
purchasing power and working conditions for workers, as evidenced by immigrants exploited in
sweatshops in the Los Angeles area). As Dana Thomas explained, Yael Aflalo - following American
Apparel founder Dov Charney’s model - pays her factory employees above minimum wages, offers them
healthcare benefits, free on-site massages, English language classes and a path to citizenship. But as Yael
Aflalo told Dana Thomas: “Our production is in the US rather than overseas because we are able to make
it much faster here and sell it faster. We are selling more products more often. It’s just smart business”. As
Reformation is vertically integrated, it is very agile, meaning they can produce very quickly (design
trendy products and have them deliver to customers in 4-6 weeks, compared to 2 weeks for fast-fashion
and up to 18 months for traditional brands), reorder what is selling and stop what is not.
R e f o r m a t i o n
— Case study
!40
But what differentiates Reformation is
its stake on sustainability. Yael Aflalo
claims Reformation to be a “sustainable
fast fashion brand” which mantra is
“Being naked is the #1 most sustainable
option - we’re #2”: they produce decent-
quality fashion for a reasonable price
(from $40 to $450) in a way as
sustainable as possible. As Yael Aflalo
explained, “Buy less” is not a scalable
strategy. That is why she tries to limit
the damages by being as sustainable as possible, while offsetting the damages inflicted by
her business by improving the situation elsewhere (working with non-profit organisations
to clean waterways for instance) - which in the end of the day makes her company
carbon, water and waste neutral. And she is very transparent about it - communicating on
its sustainability policy and indicating each garment footprints on Reformation e-
commerce website. Among Reformation sustainable practices, the brand uses sustainably
sourced materials and renewable energy, it does not overproduce and have leftovers
issues (thanks to its drop model and agile production), it takes diversity into account with
a wide size range, it recycles old clothes from customers - selling the up-cycled clothes in
its Melrose Vintage Shop, it provides employees with fair wages and good working
conditions, and nurtures a cool and open atmosphere in its offices and stores - betting on
happy employees make happy customers (and thus happy shareholders).
!41
What is more, Reformation did not choose an organic growth but successfully raised
money first in 2015 to develop its concept / product and then in 2017 to develop its
business through technology-enhanced physical stores - knowing that 80% of sales are
still made online. Reformation stores are spacious ; only one piece of each garment is
showcased and hangers sit in grooves to let space between items and give a high-end
boutique impression ; customers have to select on digital screens what they want to try on
or tell their selection to a sales assistant that would enter it on his / her app (both
technologies taking into consideration inventory) so that clothes would be immediately
put in a dressing room for the customer through a double-sided wardrobe connected to
stocks ; customers can change the lighting for a variety of flattering colour temperature
options in the dressing room, plug their phone and play music while recharging their
device, and request different sizes and/or items through a tablet (a sales assistant would
then bring them in the wardrobe) ; customers validate their order on the tablet and are
then greeted by a sales assistant to then pay by credit card only and receive their order. To
be noted than after opening stores in the US, Reformation organised its first pop-up in
London in 2016, curated capsule collections with retailers such as Net-A-Porter, Browns
East in 2018 and Selfridges in 2019, and opened its first physical store in London last
September, and now considers expanding to the rest of Europe.
.
In addition, fashion labels should engage / involve itself to support the
community and contribute to make the world “a better place”. In that perspective, brands
could either make direct donations (see LVMH providing hand sanitisers, masks and
hospital gowns to healthcare workers during the Covid-19 crisis) or indirect ones - when
giving a % of sales revenues to charities - involving in this way customers. Fashion labels
could even consider designing a specific product which sales revenues would entirely or
partially go to charities (see Appendix 12 - Nanushka Newsletter “Incredible Women”, or
Louis Vuitton latest Silver Lockit bracelet edition in the framework of its long-term35
partnership with Unicef ).36
3.2. Customer and Competitors
In the context of Covid-19, customers have become even more conscious - “15%
of consumers in the US and Europe expects to buy more ecologically and socially
sustainable clothing” according to McKinsey (2020), reinforcing thus the sustainability
trend part of the “make the world a better place” customer’s desire. As a consequence,
customers have become even more demanding - with high expectations in terms of
product, experience and meaning / impact on the community, no to mention their
decreasing purchasing power due to the crisis - reminding that sustainability has become a
must but price still matters more.
If the number of competitors is likely to decrease following the Covid-19 crisis,
competition will be fiercer among the surviving actors, as traditional fashion labels would
have innovated and turned online - putting a strain on digital natives who will no longer be
able to rely exclusively on their online proficiency / advantage but will have to go physical
(focusing on customer experience) to compete.
https://www.instagram.com/p/B81G6VAjhOw/35
https://www.unicef.org.uk/corporate-partners/louis-vuitton/36
!42
All in all, fashion labels will overcome those challenges through their business
(read 3.1.), product development (read 3.3.), selling (read 3.4.) and promotion (read 3.5.)
strategies.
3.3. Product Development
Fashion labels should develop a permanent seasonless collection - that would be
the signature of the brand - and then release capsule collections with more seasonal
products (based of their top markets season cycle - that is likely to be the one from the
Northern hemisphere) in the right time, meaning winter clothes in October / November and
not in July as it is currently the case in the mainstream fashion calendar. Those capsule
collections would be produced in limited number - increasing their value and people’s
willingness to buy them according to Robert Cialdini’s scarcity principle (1984), and
would make customers regularly come back to check out what is new - online and/or
offline. This drop model has the advantage to avoid discounting and unsold garment issues
(that could lead to unsustainable practices - such as burning inventories or dumping them
into landfills, not to mention the loss of income). What is more, it allows small productions
with less financial investment - which is ideal for young fashion labels with limited
resources ; it allows to test products (see customer’s response) with lower risks - thanks to
small batches ; and finally it allows to skip a season / capsule collections if needed. As a
consequence, this model reduces the impact of any crisis on the business. To be noted that
the permanent collection can and should evolve: remove the slow-movers and add the top
performers from capsule collections - knowing that seasonal products might be variations /
interpretations of the permanent range.
Moreover, fashion labels should develop product collaborations / limited-edition
range of collectibles in partnership with other brands (from the fashion industry or not) or
individuals (artists / creative minds or celebrities / public figures). Those collaborations
have several advantages : they enable brand extensions - developing products from a new
category with a partner who has an expertise in that category (thus legitimating the brand
extension) ; they attract new customers - the partner’s enthusiasts ; they surprise and create
!43
the buzz - as it will be shared / promoted by both partners. Fashion labels should simply
ensure the collaboration makes sense in regards of the brand identity, and avoid make too
many collaborations in a too short period of time - to keep the surprising effect. Louis
Vuitton has evidenced that strategy through multiple successful collaborations over the
years, which includes one with streetwear brand Supreme (to attract a younger audience),37
and more recently one with California-based artist Alex Israel - well-known for his38
“Wave” art piece - (to surf / capitalise on the Los Angeles cool trend). Besides, as the
consumer trend is towards lifestyle and food, it is wise to collaborate in those directions
(see SAINT LAURENT which opened two concept stores filled with limited-edition
collaborations , while Supreme collaborated with biscuit brand OREO and Kith with39 40
Japanese restaurants Nobu ).41
Fashion labels still have to produce and deliver goods following the steps described
in 2.3. Though, at that stage, they can make some decisions and resort to innovations to
not only produce in a more ethical way but also make more profits (#SmartBusiness).
First, fashion labels should limit packaging and/or design eco-conscious ones ; they could
in addition source sustainable materials for their products: organic fabrics and dyes - to
avoid chemicals and toxic substances that result in water pollution and soil degradation in
addition to being extremely harmful for humans and local ecosystems, but also fabric
innovations such as Econyl (regenerated nylon made from fabric waste and fishing nets),
Mylo (engineered leather-like fibre from mushrooms), MicroSilk (engineered silk-like fibre
inspired by spiders), Piñatex (leather-like textile from pineapple leaves) or Orange Fibre
(silk-like yarn from citrus juice by-products) - to protect the environment and ensure
animal welfare.
https://www.highsnobiety.com/p/supreme-louis-vuitton-hysteria/37
https://www.vogue.fr/fashion/article/alex-israel-reimagines-classic-louis-vuitton-pieces38
http://hero-magazine.com/article/150236/saint-laurent-reveal-new-concept-stores-with-limited-edition-39
collaborations/
https://hypebeast.com/2020/3/supreme-oreo-double-stuf-collab-cookie-drop-release-date-tease40
https://www.highsnobiety.com/p/kith-nobu-collection/41
!44
Fashion labels should also optimise their fabrics when designing to use all of them, thus
avoiding waste. In particular, brands could use scrapes to make small accessories, as Louis
Vuitton did in 2019 when launching its "Be Mindful” capsule collection composed of
bracelets made from silk scrapes, embracing in this way up-cycling (sustainable practice
consisting in transforming waste into materials or products of better quality).
Likewise, fashion labels should optimise their stocks by producing the right quantities, in
order to avoid discounting and unsold garment issues - harmful for the brand image, the
bottom line and the environment. This is necessary to reduce risk (and as a consequence
the impact of any potential crisis). In the case in point, the drop model - which works on a
“see now, buy now” principle - seems to be the best option (as explained above). However,
brands can consider a make-to-order model, which has the advantage to avoid discounting
and unsold garments issues - and could allow customers to personalise their products, but
requires customers to be willing to wait and order ahead of season to receive their products
at the right time - while being more complicated to handle production-wise (compared to
the drop model).
Second, fashion labels should celebrate craftsmanship and resort to (clean) machines,
while ensuring their suppliers are providing decent wages and good working conditions
to their employees, thus making products of the best quality in an optimised and ethical
way. What is more, fashion labels should consider resorting to graphic design tools to
render prototypes and adjust samples, as well as 3D technologies - so as to ensure quality,
reduce physical visits to suppliers and overall dependence upon suppliers, which might
prove beneficial in times of crisis.
Besides, fashion labels can consider greener transportation options so as to reduce
carbon emissions - knowing that the fashion industry is responsible for 10% of all
greenhouse gas emissions.
!45
In addition, fashion labels should develop partnerships (rather than simple transactional
relationships) with their suppliers - in particular for production and transportation, so as to
be able to collaborate and negotiate quantities, prices and payments (flexibility) - which
would prove all the more beneficial in times of crises, while ensuring sustainable practices
are respected. Later on, brands should consider controlling their entire supply chain
(production and transportation), or rather be part of a group (holding) - while keeping
majority stake - or join forces with other brands in order to finance an integrated supply
chain, in order to have full control (in terms of production flexibility and sustainable
practices) and better margins. To keep in mind: sustainability now matters to customers and
should thus be taken into account in the whole value chain, but design and prices should
not be overlooked as they are still customers’ top priorities.
Furthermore, fashion labels should remind that crises can be a source of
inspiration for designers. As Caroline Evans (2007) explained, designers are like oracles
or prophets who feel and interpret the deepest moves of civilisation and translate them into
collections and images. Back in the 1990s, Japanese experimental designers Rei Kawakubo
and Yohji Yamamoto questioned the notion of gender and reassessed the notion of
perfection. Today, Marine Serre interprets the underlying anxiety in modern societies, as
epitomised in her 2019 Fall/Winter collection - following Paris yellow vest protests. And42
Covid-19 is likely to change people’s state of mind, thus giving designers-exegetes
material to translate / interpret: they might go for playful or colourful exuberant designs in
an attempt to forget about the crisis time, or on the contrary go for dramatic or discreet-
coloured minimalist designs to stress the anxiety of the new normal era.
To be noted that the Covid-19 crisis has increased the number of sources / content available
online, which are potential sources of inspiration for designers as explained in 1.3. In
particular, some museums have made their exhibitions and tours available online (see Paris
Grand Palais special offer during lockdown ), and hopefully more cultural / artistic43
https://www.vogue.com/fashion-shows/fall-2019-ready-to-wear/marine-serre42
https://www.sortiraparis.com/arts-culture/exposure/articles/212402-coronavirus-the-grand-palais-and-its-43
exhibitions-from-the-comfort-of-your-living/lang/en
!46
content will be available online - thanks to technological innovation and adaptation - in the
future, thus fuelling designers’ inspiration.
3.4. Selling
Fashion labels should progressively extend their distribution channel - from own
online channels to own physical stores, and every purchase should be linked to a personal
customer account (loyalty program) - in order to gather data for the CRM data base.
3.4.1. Online Direct-to-Consumer
First, fashion labels should directly sell to customers online. They should
maintain websites and social media operational and up-to-date as indicated in 2.4. in order
to enjoy the advantages described in 1.4. In particular, customers’ questions, complains,
returns and bad reviews should be handled effectively and very quickly.
Besides, fashion labels should consider integrating technological innovations to
improve the customer experience online - knowing that the development of such
technologies is likely to accelerate following Covid-19 and will be beneficial to limit the
risk of any future crisis that would prevent people from going out and shopping (as it was
already the case during Hong Kong protests in 2019). Among them are: virtual reality - to
try on products from home but also visit a virtual reality store (thanks to companies such as
Obsess ), and if those technologies are too expensive in the beginning for fashion labels,44
they should consider putting high quality pictures but also videos (to see how products
render and evolve on people) on their online platforms ; artificial intelligence and machine
learning to offer personalised recommendations and suggestions - using both quantitative
and qualitative data collected online and in stores when opening them later on (see Stitch
Fix model ), and if too expensive, simply offer for each product “wear with”45
https://obsessar.com44
https://hbr.org/2018/05/stitch-fixs-ceo-on-selling-personal-style-to-the-mass-market45
!47
recommendations (and “you may like” suggestions) for cross-selling (and up-selling) ;
livestream technologies - to allow sales assistants and/or influencers to promote-sell
products to large audiences through Instagram and WeChat, but also to allow sales
assistants to promote-sell products to smaller groups or individuals (in one-to-one
conversations) through WhatsApp, WeChat and new players such as Hero . To be noted46
that livestream technologies are rather cheap and enable connecting with customers in an
authentic and intimate way - which is precisely what customers are looking for today
(genuine conversations), not to mention that those technologies are likely to be enhanced in
the coming months (thanks to Covid-19).
What is more, fashion labels should offer online styling consultations, and enable
customers to ask to be notified when a product is back in stock, create sharable wish-lists
and take part to a loyalty program. More precisely, fashion labels should develop a loyalty
program based on gamification: customers would earn points by completing certain
actions (buy from the selection of the month, buy for X euros, download the App - to be
explained in 3.4.4., let a product review, recommend to a friend) in order to reach a certain
status - according to their number of points - that would entitle them to certain perks (free
delivery, X% discount on next purchase, X euros voucher, X euros gift card - for a friend,
priority access to capsule collection releases, access to private sales, exclusive
merchandising - smartphone wallpapers see examples in Appendix 13 / recyclable bottles /
tote bags, treats from the brand or a brand partner - styling private sessions at home / spa
treatments / flowers / macaroons, invitation to a brand special event or a brand partner
event - preview / concert / sport competition). The idea is to make the customer feel
recognised and valued (let it be online or in store) - while collecting information on him /
her for the CRM data base, in addition to promote the brand and drive sales.
3.4.2. Pop-up Stores
Second, fashion labels should organise pop-up stores-events - so as to gain
visibility, enable customers to touch and try on clothes, and deliver customers the brand
https://www.usehero.com46
!48
experience while bonding with them (as explained in 2.4.1.), in a relatively inexpensive
way - the idea is to be frugal / think out of box to limit costs while surprising / delighting
customers.
As Laure Guilbault (2019) explained - following consultant and former creative director of
Paris concept store Colette Sarah Andelman’s recommendations, fashion labels should
develop pop-ups in main shopping destinations such as Paris, London, New York but also
in less expected cities - still relevant fashion-wise and business-wise - such as Antwerp,
Chicago or Madrid. They should curate each pop-up specifically for each location: specific
product assortment, specific architecture / interior design / visual merchandising /
atmospherics, specific animations - to celebrate the location identity while showcasing the
brand identity - so as to be very relevant and speak to the local audience.
Furthermore, fashion labels should consider developing pop-up stores-events in
collaboration - to mutualise costs, benefit from partner’s promotion and even recruit
partner’s customers or following. It could be with a venue (hotel, restaurant, private club,
cinema, art gallery, dance / yoga studio), another brand (from the fashion industry or not),
artists / creative people (photographers, painters, illustrators, authors, singers, DJs, dancers,
performers, chefs), speakers, societies, charities. Collaborative pop-ups have the advantage
to deliver an all the more surprising and entertaining holistic experience, which is what
customers are looking for. Fashion labels should simply make sure the collaboration makes
sense, meaning is consistent with the brand identity.
3.4.3. Wholesale
Once fashion labels have gained recognition through their online channels and pop-
up stores-events, they should then try to be stocked in retailers with physical stores - let it
be through in-store pop-ups or corners - so as to benefit from the advantages explained in
2.4.2. Fashion labels should privilege department stores that play their cards right in the
current retailer crisis context (such as London Selfridges or Paris Le Bon Marché - which
key success factors are a concession model, new designers and regular well-curated
!49
animations) as well as independent stores - making sure the associations make sense in
regards of its brand identity, that they keep as much control as possible over their image
and customer experience (be careful with agreements / contracts), and that the number of
wholesale accounts remains cost-effectively manageable in-house. What is more, fashion
labels should reach and negotiate directly with retailers, nurturing collaborative
relationships - which would prove all the more beneficial in times of crisis (in particular to
avoid wild discounting).
3.4.4. Direct-to-Consumer Stores
Once fashion labels are profitable and need their own physical stores to scale up,
they should raise money - while keeping majority skate, and develop their store network.
The idea is to have one-of-a-kind, service-and-experience-oriented stores that feel intimate
and resonate with the brand identity and its local customers.
Fashion labels should open physical stores in their top cities (in terms of revenues), and
choose locations based on the brand identity and where their target customers shop. They
should develop collaborative relationships with their landlords to be able to negotiate - in
particular in times of crises. Furthermore, fashion labels should curate each store
depending on the location - to celebrate the brand identity while embracing local culture /
specificities, and make each store unique. Visual merchandising should change regularly,
and in-store animations (pop-ins) as well as events organised (potentially in collaboration)
- in order to keep surprising and make customers visit stores regularly. Still, fashion labels
should be careful with surprise as customers should not become used to it, and animations /
events should not hide / outshine products - which are still the core business of fashion.
What is more, fashion labels should consider their stores as third places - spaces where
customers would enjoy spending time outside of home and work, and eventually buy
something as a souvenir to remind them of the experience they would have enjoyed (as
explained in 1.4.1.). Consequently, fashion labels should integrate spaces such as a coffee
place, a book / magazine place, an art gallery / exhibition space, a screening space or a
!50
manucure / barber stand - ensuring products are still the stars and are well showcased in
that experience environment.
Fashion labels could rely on technological innovations to improve the in-store shopping
experience - making sure they do not substitute to sales assistants who create a genuine
bond with customers, and that they fit into the budget / strategy. Among them are:
interactive windows, digital screens, smart mirrors that combine artificial reality capability
with technology-enabled recommendations (to cross-sell) and enable customers to take
pictures and share them instantly on social media. Besides, fashion labels should develop
an App that would be all-device-friendly, and that would sell online, facilitate sales in
stores, promote the brand and entertain customers. Customers would be able to: try on
products thanks to artificial reality and have personalised recommendations thanks to
artificial intelligence or not (see Louis Vuitton app - insight in Appendix 14), buy on the
App, check availability in-store (that feature should be added on the website as well), scan
products in store to see how it is made and have the supply chain information (transparence
on sustainability), read about the brand story / mission / values and have access to its
“promotional” (rather lifestyle than commercial) content (detailed in 1.5.1. and in 3.5.1.),
access to the brand podcast (to be explained in 3.5.1.), play games alone or with other
members of the brand community (games potentially developed in partnership with big
game companies such as Candy Crush King) and share results online (see Gucci app -
insight in Appendix 15), take pictures with brand filters / stickers and share them online.
Fashion labels could even contemplate create an app-integrated social media enabling
brand community members to interact with one another.
Fashion labels should pay a particular attention to the selection of sales assistants, training
and working conditions - in order to deliver the best employee experience and as a result
the best customer experience and drive sales as explained in 2.4.1. In particular, fashion
labels should design a system of compensations to reward both sales and experiences (with
KPIs such as number of returns handled, number of styling consultations performed, etc.).
!51
Fashion labels should offer services such as consultations with stylists, alterations,
personalisations (hand-stitched initials for instance), exchanges and returns, cleaning. If
you have read until then .47
In order to promote sustainability, fashion labels could implement different measures:
have natural light and LED lighting, home plants and green walls, consciously-made or
second-hand furniture in stores ; organise in-store animations or events to educate the
customers on sustainability (see Patagonia “Worn Wear Tour” or Selfridges “Project48
Ocean”) ; give sustainable care instructions - spot clean with a toothbrush, launder only
when it is dirty, use an ecological liquid, run a fast cycle with cold water - in stores and
online (consider making tutorials - see Reformation instructions ) so as to extend the life49
of garments and avoid to release microfibres into oceans (which end up in our plates) ;
offer a repair / mending service and make tutorials to empower customers to lengthen the
life of their products ; encourage customers to give their products a second life - by
collaborating with a second-hand platform to give customers a shopping credit when they
sell a product from the brand on the second-hand platform (as Stella McCartney does with
TheRealReal), or by directly collecting old products of the brand from customers in
exchange of a shopping credit, and then either clean and re-sell items as a special capsule
on their website / in a corner in store / via special pop-up store-event (see Eileen Fisher
“Renew” program ), or up-cycle items before selling them as another special capsule50
collection (see Eileen Fisher “Resewn” Collection ). All in all, as explained by Michael51
Braungart and William McDonough (2002), the idea is to switch from a linear model
(“cradle-to-grave”) in which products are made, used and thrown away, to a circular model
(“cradle-to-cradle”) in which products are made, used, recycled, reborn and reused.
Go to WC2N 6NE on June, 9th 2021 6pm with silk around your ankle47
https://www.sidetracked.com/fieldjournal/patagonia-worn-wear-tour/48
https://www.thereformation.com/pages/wash-smart49
https://www.eileenfisherrenew.com/our-story50
https://www.eileenfisherrenew.com/shop/resewn-collection51
!52
Finally, fashion labels have to coordinate / connect all their channels (stores, website,
social media, app, phone) so as to offer customers a seamless omni-channel customer
experience: customers should be able to research, order, receive, return products wherever
they want from whatever platform they want. As a result, customers could decide to
research online and then shop in store to have the unique in-store experience (web-
rooming), or on the contrary research in store and enjoy then the unique in-store experience
and order online afterwards (show-rooming). Customers could actually decide to order
online on their phone while in the store or ask a sales assistant to place the order for him /
her, pick-up the product in store or have it deliver at home, return any product from home
or go to store to return it. In short, customers have all the advantages of online (as
described in 1.4.1.) and offline (as described in 2.4.1.) - without the disadvantages of each
channel taken individually. To be noted that the CRM system should be integrated as well -
collecting and using data on all channels, to deliver the best personalised / curated
customer experience, and convert customers into loyal customers and brand advocates.
3.5. Promotion
Fashion labels should promote their brand in a frugal way: spend as less money as
possible in promotion but still recruit and retain customers - delivering the best experience.
In order to do so, fashion labels should be creative / think out of box: rely on their own
quality content and events - potentially made in collaboration, and the earned media
generated by them.
3.5.1. Owned Media
Fashion labels should have an in-house team to manage promotion: research and
engage with target customers on social media, answer questions and thank people, go live
to have genuine conversation with the brand following, manage compelling content
production and online publication (as explained in 1.5.1.) - which is all the more important
!53
in times of crisis when people are confined home looking for entertainment. Here a good52
example of compelling content following Covid-19 crisis from DVF: traditional brands
have indeed understood the necessity of that kind of lifestyle content to genuinely connect
with their audience through the crisis. In particular, fashion labels should collaborate: with
people to create compelling lifestyle content, but also with stylists and photographers to
shoot their products and editorial stories (high quality pictures and videos) - making sure
everyone is well represented (diversity), in a frugal way. What is more, fashion labels
should consider shooting regular people (not models) to be more authentic and connected
to their audience, as Vetements did for its SS18 lookbook - shooting ordinary people in53
Zurich streets, thus creating compelling content on a budget while promoting the brand by
engaging directly with customers (not to mention the earned press coverage).
Fashion labels could consider using TikTok in a near future - producing their own
content and re-using their following’s one. So far, brands have indeed been fearful about
embracing that recently booming social media platform, as TikTok current main audience
(Gen Z) is not necessarily their target (at least not today), and/or they have not found their
voice on that platform, i.e. a way to communicate matching their brand image with TikTok
type of content (silly / ironic, and raw - not too much aestheticisation / post-treatment but
rather authenticity). As Chavie Lieber (2019) explained, Burberry successfully tried
something on TikTok - launching a challenge to reinterpret Riccardo Tisci’s new logo ,54
which generated 30 000 videos from the community and 57 million views in one week, but
the brand did not pursue its efforts on the platform. However, it appears that the quarantine
required by Covid-19 - preventing people to travel and go outside - gave people, and in
particular influencers and celebrities, the opportunity to explore and produce content on
TikTok (see successful blogger turned successful fashion influencers Leonie Hanne
account ). As the audience is growing older (during this quarantine) and that TikTok is55
https://www.dvf.com/inchargeathome/52
https://www.vogue.com/fashion-shows/spring-2018-ready-to-wear/vetements53
https://www.tiktok.com/@burberry/video/669351911705752704554
https://www.tiktok.com/@leoniehanne55
!54
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?
How to Launch a Successful Fashion Label in the IG era?

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How to Launch a Successful Fashion Label in the IG era?

  • 1. MASTER THESIS 2019/2020 Student NAME: Clotilde D’AUBREBY Research Topic Does the development of the Internet and Social Media really make it easier today to launch a successful Fashion label? - TUTOR’S NAME Benjamin VOYER The distribution of this document is strictly reserved to ESCP Europe. CONFIDENTIAL No Yes 

  • 2. !2
  • 3. Does the development of the Internet and Social Media really make it easier today to launch a successful Fashion label? Abstract The development of the Internet and Social Media really makes it easier today to launch a successful fashion label as it enables to find and reach diverse stakeholders, makes the market research easier and richer, and allows selling online direct-to-consumer worldwide while communicating in a more personal and cost-effective way. However, the development of the Internet and Social Media has increased and intensified the competition, while making customers more knowledgeable and demanding in terms of product, experience and meaning - not to mention an increased number of scandals revealed and products copied. What is more, the development of the Internet and Social Media does not dispense fashion labels from creating their brand identity and corporate structure, generating profit and growing, producing goods and have them delivered to customers - while it makes physical experiences all the more necessary (through shopping experience in store and events). That is the reason why fashion labels should grow their business organically, develop partnerships (collaborative relationships) with stakeholders, have a mission / purpose, develop a pragmatic social and environmental policy - and be transparent about it, contribute authentically to make the world “a better place”, make a seasonless permanent collection with limited capsule collections based on a drop model - in addition to product collaborations, sell online direct-to-consumer and offer a technology- enhanced customer experience, organise one-of-a-kind pop-up store-events, be stocked in retailers with physical stores that match their brand identity, open technology-enhanced physical stores designed as third places to deliver a surprising and entertaining omni- channel experience, engage with customers online and build a community, create compelling lifestyle content to communicate on its owned media, organise physical and digital events, and finally turn public figures / influencers / customers into brand ambassadors to benefit from earned media communication. Eventually, as the Internet and !3
  • 4. Social Media - but more generally technology - evolve quickly (especially following crisis), fashion labels should nurture a lean structure to be able to test and learn, and in this way adapt quickly and well - while being attentive to society / customers moves. Keywords: fashion, label, brand, social media, Instagram, Internet, customer experience, technology, sustainability, authenticity, transparency, profitability, collaboration, influencer, ambassador, community, content, conversation, frugal, crisis, adaptability Clotilde D’AUBREBY Supervised by Benjamin VOYER !4
  • 5. FOREWORD As a business student interested in the fashion and luxury industry, I had the opportunity to intern in French luxury houses - among which Hermès, CHANEL and Louis Vuitton. I could notice there the focus put on the product per se - through the quality of materials and know-how used to make it, on the customer and his / her experience - through service and care, and the brand itself - its story, values and mission. In other words, those houses intend to deliver utilitarian, hedonic and symbolic value to their customers. For a long time, the delivery of hedonic and symbolic value to consumers has been the prerogative of luxury houses, while other companies would simply focus on delivering utilitarian value. But, with growing competition in all sectors - with companies operating all around the world, it has become paramount for everyone to deliver more than product features - in order to survive. Consequently, nowadays, all companies aim at delivering utilitarian, hedonic and symbolic value to global consumers - especially in the fashion industry where actors directly compete with those historic luxury houses. The question is then to know whether there is still room today for new actors in that global crowded market - with fast-fashion companies on the hand of the spectrum and luxury houses on the other hand. The good news is technological progress has made innovations accessible and affordable for those new actors, while opening new spaces to compete in. In particular, the development of the Internet and social media gives new resources to fashion companies to resort to - in order to make room for themselves in that crowded market, in the same time as it opens new territories / opportunities for them, namely the online. What is more, new fashion businesses are likely to have one advantage over their historic competitors: their size. Their lean structure would indeed allow them to test and adapt quicker than larger companies. !5
  • 6. As the range of actors within the fashion industry has become quite broad over the years - between fashion labels, fashion bureaux, fairs, showrooms, retailers and platforms, we have decided to focus for that thesis on fashion labels - to see whether the development of the Internet and social media has really made it easier today to launch a successful business. As social media have evolved quickly over the past few years - in terms of platforms and features, and as a result have substantially transformed the fashion industry - heavily relying on Instagram for its promotion and more recently for its selling - in a short period of time, there is little (if any) literature on that specific topic, hence the need for that academic work. In order to carry out that thesis, I adopted an observational approach: I studied business cases, analysed specialised press articles and monitored brand activities online and offline, while reading reference books about the global fashion industry evolution. I tried to identify the key success factors, as well as the pitfalls to avoid - turning the challenges into opportunities. To be noted that most young fashion labels that are succeeding - or about to become profitable - have not gone public yet, thus financials are not easily available - considering that founders / CEOs tend to keep those figures secret in interviews. As a consequence, the conclusions of that thesis would need to be confirmed by time (and future public results) - keeping in mind that technology evolves at a fast pace, and that the ultimate key to success is the ability to adapt quickly and well. That being said, I wish you a pleasurable reading - hoping that this thesis will bring you some insight on the fashion industry. The results of that thesis were updated in the light of the Covid-19 development worldwide at the end of May 2020.
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  • 7. TABLE OF CONTENT INTRODUCTION (Page 9) 1. THE DEVELOPMENT OF THE INTERNET AND SOCIAL MEDIA DOES MAKE IT EASIER TODAY TO LAUNCH A SUCCESSFUL FASHION LABEL 1.1. Business (Page 11) 1.2. Customer and Competitors (Page 12) 1.3. Product Development (Page 13) 1.4. Selling (Page 14) 1.5. Promotion (Page 16) 2. BUT IT ALSO RAISES NEW CHALLENGES, WHILE NOT SURMOUNTING ALL OLD OBSTACLES 2.1. Business (Page 25) 2.2. Customer and Competitors (Page 26) 2.3. Product Development (Page 27) 2.4. Selling (Page 28) 2.5. Promotion (Page 31) 3. SO HOW TO TACKLE AND OVERCOME THEM? 3.1. Business (Page 34) 3.2. Customer and Competitors (Page 42) 3.3. Product Development (Page 43) 3.4. Selling (Page 47) 3.5. Promotion (Page 53) CONCLUSION (Page 63) !7
  • 9. INTRODUCTION What constitutes a fashion label ? A fashion label is primarily a brand - with its story, values, mission. It is its universe, what is stands for, and hopefully this matches the idea the consumer has of the brand. A fashion label has a style, and a signature / codes - which are the physical manifestations of the brand identity (logotype, visual symbol, a colour, a favourite material, specific motifs), and that appear everywhere from the product to the store layout via the packaging and the communication, and make the label unique and recognisable among others. A fashion label relies on its customer and competition knowledge to satisfy its target customer while setting itself apart from its competitors. A fashion label relies as well on merchandising planning - which products (apparel, shoes, bags, accessories), in which quantities and at which prices - to ensure sales, growth and profitability. A fashion label implies a supply chain for the production, transportation and storage of the goods, as well as distribution channels to enable selling. A fashion label resorts to promotion, and endeavours to deliver the best customer experience. Finally, a fashion label could not exist on the long term without financial planning. A successful fashion label is a fashion label that is currently generating profits, and with the ability to do so on the long term. There is no ethic consideration in that definition. Though, ethic is implied as it is a new customer expectation (fashion labels need to operate ethically if they want to sell and avoid boycotts), and as it is a condition to the planet subsistence (fashion labels need to operate in a sustainable way if they want to have human resources and materials for the production of their goods, as well as living human beings to buy them on the long term). How to generate profit then? There are two ways - that can work concomitantly : increasing sales revenues (converting more customers, offering and selling more products - through brand extensions, cross-selling and up-selling, increasing prices) and decreasing costs (materials, direct labor costs, duties and freight, warehouse and store rents, !9
  • 10. warehouse and store operational costs - which includes staff payment, office rent, payroll, administrative costs - which includes legal costs, and finally promotion expenses). To be immediately noted that small fashion labels have not the size power of larger companies to pressure and negotiate prices downwards with stakeholders. Additionally, the profit generation raises the question of its limit: should a fashion label endlessly look for more profit? Or should it set itself an objective / limit in terms of profit generation? And in either way, for which purpose / why? Technological progress has enabled the development of the Internet and social media, which can be defined as technological innovations, operating on a vast array of devices (computers, smartphones, tablets, watches, televisions, virtual assistants such as Amazon Echo or Google Home), and allowing sales, content production and publication, as well as data collection and use. The question is now to know whether that development of the Internet and social media really makes it easier today to launch a fashion label able to generate profit on the long term. !10
  • 11. 1. THE DEVELOPMENT OF THE INTERNET AND SOCIAL MEDIA DOES MAKE IT EASIER TODAY TO LAUNCH A SUCCESSFUL FASHION LABEL 1.1. Business The development of the Internet and social media makes it easier today to launch a successful fashion label as it makes easier to find and reach people, thus enabling collaborations between people that live far away from one another, or simply do not know one another. In the case of young fashion labels, it is particularly useful: to find mentors - people within the industry that would share with them their expertise, give them advice and give them access to their network ; to find business partners - as successful fashion labels often rely on a partnership between one creative individual (in charge of design) and one business individual (in charge of operations) ; to find investors - as fashion labels will most likely need money to be launched and later on scale up ; to find suppliers - people intervening in the production / supply process ; to find buyers - people working for retailers that can stock and sell the merchandise of the brand ; and finally to find any other stakeholder that would intervene in the product development, the selling or the promotion process. And depending on the type of interlocutor, fashion labels might look for them on the Internet, and then reach them by e-mail and/or through LinkedIn or Instagram. In particular, the development of the Internet and social media has made it easier today for fashion labels to find financing. Indeed, donation-based crowdfunding platforms (such as Kickstarter or Indiegogo), as well as investment crowdfunding platforms (such Crowdfunder), have emerged on the Internet - while social media enable fashion labels to promote their crowdfunding campaigns and have people contribute. To bear in mind: crowdfunding might take time and energy, and make project / products visible (thus potentially encourage copycats), but it will also enables fashion labels to test their ideas - !11
  • 12. see if people like them, while advertising and starting building a community of brand ambassadors. 1.2. Customer and Competitors The development of the Internet and social media makes it easier today to launch a successful fashion label as it makes the market research easier and richer - and consequently the brand target and positioning more accurate and relevant. Fashion labels can indeed easily find information online : the size of the market - to then estimate their customer segment size and calculate their potential revenues, any political / economic / technological change that would affect their market and strategy, who is their customer - to make sure they fully satisfy his / her expectations in terms of product, price and global experience, and that they communicate with him / her in the most suitable way, who are their competitors - to make sure they are different and better than them, and finally what other companies - in whatever sector - are doing in terms of selling and promotion so as to find inspiration and potentially modify their strategy. In particular, fashion labels can use Instagram to study their customers and see which accounts they follow, what kind of content they like / comment / share, what king of language they use, what king of clothes they wear, in which kind of places they go, which king of events they attend. And to gather more specific qualitative information, fashion labels can resort to social listening - monitor what people say about a product, a brand, a company or even the industry on forums, blogs and social media - as well as to netnography - join an online community of product or brand users and engage with them (asking them questions pretending to be a normal user). What is more, fashion labels can use brand websites and social media accounts to monitor the activity of their competitors - their product offer, their stockists and stores, their communication and promotion activities - as well as the activity of retailers - to figure out where they could be stocked and who would be they competitors there. !12
  • 13. As Alison Lowe MBE (2019) pointed out, that online market research should not substitute but rather complete a primary research on the field: visiting stores, analysing product offers, visual merchandising and atmospherics, observing how sales assistants and customers behave and interact. 1.3. Product Development The development of the Internet and social media makes it easier today to launch a successful fashion label as it makes it easier for designers to find inspiration, identify trends, involve customers and have people collaborate to develop products. The Internet and social media are indeed incredible tools for designers to find inspiration, as they make a rich variety of content - films, music, paintings, photographs, books - that is material for further creation, accessible to everyone for free or an affordable price online. For instance, Gucci creative director Alessandro Michele was inspired by Malian artist Malick Sidibé’s photographs - available online - for his 2017 Pre-Fall campaign , while the collections of London-based label COTTWEILER are largely1 2 influenced by UK Grime sub-culture - well documented online. What is more, the Internet and social media - through Instagram, blogs and the online press - enable designers to identify trends without buying expensive “Trend Books” from Style Bureaux - knowing that Nelly Rodi’s Trend Book costs 2 000 €. In addition, the Internet and social media enable fashion labels to involve customers in the design process - ensuring in this way sales for the co(nsumer)-designed products. It can take the form of online-facilitated customised products - customers can buy a product on the brand e-commerce website and there choose the colour and/or motif of the different fabrics, and/or add their initials or a message on it. It can also take the form https://www.gucci.com/us/en/st/stories/advertising-campaign/article/pre-fall-2017-advertising-campaign1 https://www.cottweiler.com/2 !13
  • 14. of community products - which designs are created and selected by the brand online community (see Threadless business model), or fashion labels can simply ask - through its website or social media accounts - its customers for their feedback on product ideas or alterations (see Appendix 1 - AVAVAV Survey appearing as a pop-up form on their website and sent in their Newsletter). As Strugatz Rachel (2019) pointed out, influencer Danielle Bernstein modified her collections developed in collaboration with swimwear brand Onia according to the feedback she got from her following on Instagram (through polls, quizzes and questions in Instagram stories). Finally, as the Internet and social media make it easier to find and reach people all other the world (as stated in 1.1.), it makes it easier to collaborate with people - either for product design (collaboration with another brand, an influencer / celebrity or a creative mind) or the production itself (suppliers and manufacturers). 1.4. Selling 1.4.1. Direct-to-Consumer The development of the Internet and social media makes it easier today to launch a successful fashion label as it allows to sell direct-to-consumer through several online channels - at a low cost and without compromising on the quality of the service but on the contrary enriching the overall customer experience. Today, fashion labels can easily launch an e-commerce website through platforms such as Shopify, SquareSpace or Wix, and/or a social e-commerce though platforms such as Instagram and/or WeChat. Older platforms such as Ebay, Etsy and Depop seem less relevant today, which proves how fast the Internet and social media evolve - thus requiring fashion labels to adapt quickly and well. !14
  • 15. Running an e-commerce is indeed less expensive that managing physical stores due to prime location high rents and a higher number of employees needed in the case of physical stores, when the price for e-commerce platforms and warehouse rents are relatively inexpensive. Furthermore, e-commerce potentially increases sales revenues: by increasing the number of customers - as potential customers are global and not limited by their geographical distance to physical stores, and by increasing the average ticket - as data can be collected online and automatically used to cross-sell and up-sell, while sales assistants might not have the time or might not be willing to do it in store. This is why online direct- to-consumer fashion label Faithfull The Brand - offering affordable ($150) ethical feminine beachwear and swimwear - could be launched and succeed: they are based in a remote low-cost place - Bali, Indonesia - but can rely on global customers’ orders to generate profits. Besides, an e-commerce is convenient for customers as they can buy very easily and quickly, whenever and from wherever they want - they are not limited by opening hours and store locations. In addition, the development of the Internet and social media enables fashion labels to develop an upgraded CRM strategy during the pre-purchase, purchase and post-purchase phases of the customer journey - through Instagram / WhatsApp / WeChat private messengers, Newsletters, chatbots, FAQs, forums / communities, while physical stores can only rely on their sales assistants to nurture the customer relationships when customers are in the store. As Joseph Pine and James Gilmore (1999) explained, people are now looking for experience: when they are buying a product, they are actually buying a product and the experience that comes with it and that is delivered throughout the customer journey via touch points. Consequently, brands have to deliver the best customer experience in each touch point that constitutes their customer journey (in the pre-purchase, purchase and post- purchase phases). What is more, anything that would remind the customer about his / her experience is valuable to him / her, as it would enable him / her to relive in spirit that !15
  • 16. experience - thus extending / increasing the experience itself. As a result, customers appear to buy a product, an experience and a memory (that can take the form of a physical or digital souvenir). This is why social media - as they enable customers to share pictures / videos of their experience and look back at them - help fashion labels increase their value offer. 1.4.2. Wholesale The development of the Internet and social media makes it easier today to launch a successful fashion label, as it allows to find and reach buyers (as explained in 1.1.) in order to be stocked in retailers - without having to pass by expensive fashion fairs, showrooms or agencies. To be noted: founders’ personal Instagram accounts as well as the brand website and social media accounts should be well curated as they would act as résumés / business cards and portfolio for any potential buyer. 1.5. Promotion The development of the Internet and social media makes it easier today to launch a successful fashion label, as it offers new - and potentially inexpensive - marketing communication opportunities to recruit and retain customers, while enriching the customer journey. 1.5.1. Owned Media Fashion labels can rely on their website - and invest time in Search Engine Optimisation (SEO) to appear on search engine top results - and social media (Instagram, WeChat, TikTok, Snapchat, YouTube, Pinterest, Twitter, Facebook, LinkedIn) to communicate in a potentially inexpensive way (depending on the money they put in the content production). To be noted that depending on the customer targets, some social media !16
  • 17. should be privileged while others should be avoided. But today, one social media - and its Chinese counterpart - is mandatory for any fashion label, namely Instagram (and WeChat). Instagram was launched in 2010 but has really become relevant for fashion labels since 2014 when it enabled advertising. It has since developed business features: analytics in 2016, social shop in 2018 with social check-out in 2019 (which allows brands to sell directly on Instagram without needing a linked e-commerce website), virtual reality try-on for beauty products that should be extended to fashion in the coming months. It has also developed business-friendly features: Instagram stories with their features - including product stickers to shop them, IGTV and live. And it keeps developing new ones in order to satisfy the needs of the fashion industry, as highlighted by Instagram very first Director of Fashion Partnership Eva Chen. One of the main advantages of Instagram is that it allows fashion labels to directly talk to their audience in an authentic and intimate way, which is what customers are looking for today - genuine conversation / getting personal. This is why fashion labels should invest time on Instagram engaging with people matching their target customer and building their community - by liking, commenting (in a more elaborate way than just “😍 ”), taking part in conversations. As Faithfull The Brand co-founder Helle Them-Enger told Amy De Klerk (2019), “As a self-funded company we initially could not afford to spend on marketing and traditional advertising so social media was our only channel to reach new customers”. Moreover, Instagram has reinforced customer’s attention to visual content as it has increased the visual content production. As a result, fashion labels must create excellent quality visual content - for all their platforms - to compete and try to stand out: high- resolution images and videos are no longer enough, fashion labels need to be creative (surprise their audience) and playful (entertain their audience) - while engaging with a clear and concise call to action (not necessarily commercial!). Here some examples of compelling content: for Instagram - from Louis Vuitton in collaboration with influencer3 https://www.instagram.com/tv/B81sWJwnI6Z/3 !17
  • 18. Leandra Medine Cohen, and for a website / App / Newsletter - from Italian label The Attico . Besides, fashion labels should research the type of content their customer targets4 like / comment / share, as well as the kind of language they use in order to adapt their content accordingly - keeping in mind than today it is more about experience-focused / lifestyle / dream content rather than product-focused / commercial content. Here some examples of compelling types of content given by Alison Lowe MBE (2019): - “ Behind the scene (see Appendix 2 - Ottolinger Instagram Story) - Teasing products and events (see Appendix 3 - Sézane Newsletter “Vous Faites Quoi Dimanche ? 💌 ” and Appendix 4 - Nanushka Newsletter “What’s On This Week”) - Showing how the product is made (here an example from Marine Serre and another5 6 from Louis Vuitton) - The Transparency process of the brand (see Appendix 5 - Reformation Newsletter “Not Just a Pretty Dress”) - Interesting articles on sustainability or fashion trends - Pieces on customers or brand ambassadors (see Appendix 6 - The Frankie Shop “SHOULDER TSHIRT” Highlighted Story) - Styling tips (here an example from Dutch label Scotch & Soda)7 - Interesting features on travel, health, mindfulness - Reviews on films, hotels and dining out (here an example from Hungarian label8 Nanushka) - New music or book features - Social change, charity projects, campaigns ” - To which we can add, sharing inspirations, obsessions and believes. https://www.theattico.com/en/editorial?library=editorial-horoscope-june-20204 https://www.theattico.com/en/editorial?library=editorial-strike-a-pose https://www.theattico.com/en/editorial?library=editorial-evangelie https://www.youtube.com/watch?v=3KpIvfNXB-M5 https://www.instagram.com/tv/B3fB1skDBdw/6 https://www.instagram.com/tv/B5AzCTKFSH6/7 https://www.youtube.com/watch?v=t-Hzs2AZzcg8 !18
  • 19. Fashion labels should use analytics to see which type of content, which format (live, videos, images) and which time work best, and adapt their content production and publication accordingly. To be noted: regularity is key on social media - post every day or two day at the same hour. What is more, with the multiplication of platforms and content, fashion labels need to make sure to be consistent in terms of messages (linked to the brand story, its values, missions and products) and aesthetic across channels, hence implementing clear guidelines. 1.5.2. Paid Media Today, fashion labels can pay for Search Engine Advertising (SEA) to have their website appear in the first results on search engines such as Google or Yahoo ; they can pay for digital spaces - a video or a website - to promote their brand through display and video advertising ; they can resort to social media sponsored content to promote their content on various social platforms (see examples in Appendix 7) ; finally, they can call on influencers / celebrities to do paid collaborations in which those public figures would promote the brand. To be noted that in that case it is more interesting to develop long-term partnerships (with public figures enthusiast about the brand that would become brand ambassadors) rather than one shot collaborations - so as to capture the influencer’s / celebrity’s audience thanks to authenticity and consistency. When choosing the influencer / celebrity, fashion labels should make sure that he / she fits the brand identity and that its target audience can relate to him / her (in terms of age, style, values, interests), that the influencer’s / celebrity’s following matches the brand target audience, and that he / she has not just a high number of followers but rather a high engaging rate (comments / shares), and finally that he / she publishes high quality content - as depending on the partnership terms he / she would potentially create the content featuring the brand himself / herself. Chiara Ferragni’s long-term partnership with Dior is a good example: the fashion blogger behind The Blond Salad successfully turned influencer has been collaborating with the French fashion house for several years in a partnership that is halfway between paid and unpaid collaborations, as Chiara Ferragni would appear in Dior-staged shoots (paid !19
  • 20. collaboration with the mention “#ads”) , but also on her own organic content with products9 that would have been offered to her by the brand (unpaid collaboration) - not to mention10 the invitations to fashion shows and the dresses designed for her wedding which had a11 12 lot of online coverage. Besides, it worths noting that with the development of the Internet and social media some older online media such as blogs appear as less relevant today. Gone seem the days when bloggers would be paid to feature a product on their blog or earn a commission through affiliate programs. Though, affiliate programs have taken a new form in the IG era: influencers would invite their following on Instagram or YouTube to checkout on brand e- commerce website with a specific code - entitling them to a special discount, while brands and influencers would in this way be able to monitor the sales driven by the influencers and then calculate their commissions. Furthermore, bloggers who have been able to adapt quickly and well to the development of social media, thus embracing Instagram, have proved very successful - generating for some thousands (if non millions) of dollars, and now flooding the shelves of our favorite bookstores (and even movie theatres, watch Chiara Ferragni’s 2019 biocumentary Unposted). This highlights the importance of adaptability to the development of the Internet and social media for the whole fashion industry. Online paid advertising presents some advantages over traditional paid media. First, fashion labels can precisely choose their target thanks to data: should they do an awareness campaign targeting everyone or individuals with specific characteristics - to make them know (more) the brand? Should they do direct response prospecting targeting specific people at a specific time - to trigger an action such as going to a webpage, placing an order or subscribing to a Newsletter? Or should they do retargeting - to remind people https://www.instagram.com/p/Bvg6CA9lqu9/9 https://www.instagram.com/p/Bwd1xU0B__6/10 https://www.gettyimages.co.uk/detail/news-photo/chiara-ferragni-attends-the-christian-dior-womenswear-11 news-photo/1176793887 https://www.harpersbazaar.com/uk/bazaar-brides/a23007728/chiara-ferragni-wedding-dress-dior-video/12 !20
  • 21. that have shown interest in a brand or product of it (thanks to their activity online and the so-called “cookies”). Consequently, fashion labels can personalise their messages according to their target (for example using a picture of a mature lady wearing their products for their mature audience, and the same products but on a younger individual for their younger audience). Second, online paid advertising allows measurability with multiple KPIs - Cost per view, Cost per click, Cost acquisition, Click-through rate, etc. - which in return enables fashion labels to optimise their marketing communication strategy and budget accordingly. Finally, the execution of online paid advertising is faster than the one of traditional paid media, as ads are running in a few clicks, while fashion labels have to negotiate and spend far much time to have them release on TV, on the radio, in the press or out-of-home. 1.5.3. Earned Media Fashion labels can use social media, and in particular Instagram, to reach influencers / celebrities and make unpaid collaborations - offering them products and/or inviting them to exclusive events, in exchange of having them post and tag the brand on social media. Still, fashion labels should ensure the collaborations make sense in regards of the brand identity and customer target on the one hand, and the ambassador’s image and personality on the other hand. Fashion labels can rely on the community to like, comment and share the brand content, to mention the brand in their own content, to talk about the brand on social media or on the Internet, to rate the brand and let reviews. In a word, fashion labels can rely on e- word-of-mouth from the Internet and social media community - knowing that it is the most effective form of advertising according to Nielsen latest report on Global Trust in Advertising (2015), see Appendix 8. As claimed by Robert Cialdini (1984), people tend do make decisions based on what others do (social proof). As Faithfull The Brand co-founder Helle Them-Enger told Amy De Klerk (2019), “We wouldn’t be where we are without social media and our supportive and loyal muses”. The label could indeed rely on enthusiast customers to share pictures and mention the brand, in particular influencers such !21
  • 22. as Lucy Williams, Bettina Looney and Monikh Dale - who can appear as authority figures and for whose Faithfull The Brand travel-inspired clothing would perfectly match their lifestyle. One of the main advantages of social media over traditional media is its ability to share content to millions of people in a very short amount of time thanks to users’ ability to mention and share, and thus create the buzz. To be noted that content will go all the more viral as it is shared by people with high following, hence the interest for fashion labels to have among their enthusiasts public figures. For instance, as Tora Northman (2019) stressed, Jacquemus’s success rests in part upon the support of celebrities such as Kylie Jenner, Emily Ratajkowski or Bella Hadid who contributed to create the buzz around products such as the Chiquito tiny bag and La Bomba oversize straw hat - posting pictures of them with those products on Instagram. That is why some fashion influencers - with high following and engagement rate - have decided to launch their own fashion label relying on the power of their community (see Aimee Song’s Song of Style or Jeanne Damas’s Rouje ). In particular, as 2M-follower13 14 Instagram influencer Danielle Bernstein (2020) explains in her autobiographic book, she has succeeded in selling out - online direct-to-consumer - five capsule collections of SSO by Danielle overalls since 2016 - each time in a few hours thanks to her very engaged following, generating in this ways thousands of dollars. Fashion labels can exploit the Internet and social media community’s content (see Gucci re-using one of its enthusiasts’ content on its own Instagram page ). Furthermore,15 fashion labels can encourage the community to produce and publish content featuring the brand: in this way, the community would not only contribute for free to the brand promotion online but also create content that the brand could re-use for its promotion on its owned media. For instance, Danish brand Ganni invites its customers to use its https://www.shop.songofstyle.com/13 https://www.rouje.com/14 https://www.instagram.com/tv/CALZ42xgVXs/15 !22
  • 23. community hashtag in the first Newsletter they receive (see Appendix 9) and then posts their looks - shoppable - on its e-commerce website , French fashion label Rouje would in16 addition ask its customers their thoughts on the brand , while French label Musier would17 post its ambassadors’ (nicknamed “muses”) content for inspiration on its website . So as18 to encourage the community to produce content, fashion labels can create engaging community hashtags (see #mycalvins ) as well as initiatives / contests (see French label19 Fête Impériale “Les Baigneuses” challenge , Prada SS20 campaign initiative or20 21 #GucciChallenge ).22 Fashion labels can use their employees as brand ambassadors - encouraging them to promote the brand from their personal social media accounts (especially founders and creative directors), and exploit their personal networks - for further collaborations. In particular, Alexandra Mondalek (2020) elaborates on the role founders can play: they can act as brand ambassadors while staying genuine / authentic (no need to pretend to wear exclusively their brand or perfectly embody the values of the brand all the time - simply be human and transparent) ; they can engage with their following - to potentially get valuable feedback for the brand, better know their customer, or simply connect with them ; however, founders would become in this way public figures and thus would have to be careful about their actions - in particular, they should be careful about what and when they post (for instance avoid promoting / defending controversial issues, or share content that might be seen as too frivolous by the society / the world community in regards of the seriousness of the times). A good example of founder’s communication is Brandon Maxwell who engages with its audience in a very personal way - through his YouTube videos or Instagram23 https://www.ganni.com/en-gb/ganni-wfh-social-wall.html16 https://www.rouje.com/les-filles-en-rouje/17 https://musier-paris.com/en/pages/les-muses18 https://www.instagram.com/explore/tags/mycalvins/19 https://feteimperiale.fr/pages/limperialist-les_baigneuses20 https://www.prada.com/gb/en/pradasphere/special-projects/2020/acronyms.html21 https://www.harpersbazaar.com.au/fashion/gucci-challenge-viral-meme-1585122 https://www.youtube.com/watch?v=uYyY-KIhGS423 !23
  • 24. lives in which he invites his followers as co-hosts and talks with them, thus contributing24 to the brand promotion. This is the reason why some fashion labels take into consideration potential employees’ personal social media accounts and networks when hiring now. Finally, the development of the Internet and social media makes it easier today to launch a successful fashion label, as it allows to find and reach journalists and stylists (as explained in 1.1.) in order to be featured in magazines (print and/or digital) and their social media accounts - without having to pass by expensive PR agencies. And again, founders’ personal Instagram accounts as well as the brand website and social media should be well curated - as this is what people in the fashion industry look at first today. https://www.instagram.com/tv/CAJlFcRjK2h/24 !24
  • 25. 2. BUT IT ALSO RAISES NEW CHALLENGES, WHILE NOT SURMOUNTING ALL OLD OBSTACLES 2.1. Business Even though the development of the Internet and social media makes it easier today to launch a successful fashion label (as explained in 1.), fashion labels still have to create their brand and corporate entities, find financing and grow their business - while copying with any political, economic, social, technological, environmental or legal change / crisis. Fashion labels need indeed to create a brand identity - define its name, logo, signature, values and mission. To be noted that it is today all the more important for fashion labels to have clear values and a mission / purpose, as customers expect them to be committed and involved in making the world “a better place”. What is more, fashion labels have to create a legal structure for their company, open a bank account, have someone manage accounting, subscribe insurances, register their trademark and file patents for their designs, manage organisational and human resources issues, make stakeholders sign confidentiality and non-disclosure agreements. Moreover, fashion labels need to write a business plan and find financing - which sources go from self-financing, family, friends, crowdfunding, business angels, banks, Venture Capital to Private Equity depending on the stage of growth of the company. In addition, fashion labels need to make sure they reach, maintain and grow profitability - while being cautious about giving up equity. As former merchandiser turned investor Millard Drexler (2020) explains, most VC investors have no particular knowledge in fashion retailing, simply look for confident people able to prove with projections their label will be able to grow revenues with an investment - thus overlook profitability, and will withdraw as soon as they can (as this is their logics) - thus not invest in the company’s long term growth / profitability. In particular, fashion labels should be careful about money allocation and learn from NastyGal, which filed for bankruptcy protection in 2016 and was !25
  • 26. sold to Boohoo for only 40 million dollars after raising 40 million dollars of funding back in 2012 because it spurred money in too many directions in the same time (instead of focusing its effort in one direction at a time - trying to solve its bottleneck / main constraint to scale up) and invested in expensive customer acquisition marketing, not to mention that fashion labels should define their pricing strategy wisely. Finally, fashion labels need to take into consideration any political, economic, social, technological, environmental or legal change / crisis that might occur in the countries they are operating and that might affect their business. In particular, with the development of the Internet, fashion labels need to comply with data protection regulations, and specify their cookies policy and privacy notice on their website. 2.2. Customer and Competitors As the development of the Internet and social media has made it easier for people to launch a fashion label, the number of actors in the fashion market has considerably increased, making it all the more difficult to cut through the noise / stand out - especially online - in today’s very saturated market. What is more, with the development of the Internet and social media, it has become harder for fashion labels to convert people into customers as they are more knowledgeable and have higher expectations in terms of experience. Indeed, customers are now able to go online, look for information and compare all the brands and products, not to mention that they are more rational (top-down attention) when buying online as they are not influenced by the store environment which is designed to trigger purchases. Furthermore, customers are now used to high quality products / services and experiences, hence expecting always more from any brand from any industry. An if the !26
  • 27. Internet and social media are incredible opportunities for traditional brands with physical stores to enrich their customer experience, it is very difficult for online pure players to compete with those traditional brands with physical stores in terms of customer experience in the purchase phase: it is quite challenging to offer a high quality experience - both sensory and emotional - through screens. As a result, it is today all the more challenging for fashion labels to stand out in a very crowded market and succeed in persuading customers to buy from them, but also to turn customers into loyal customers and brand advocates - as the development of the Internet and social media has made it really easy for customers to compare brands and switch from one to another. 2.3. Product Development With the development of the Internet and social media, fashion labels are immediately global and so are their customers. As a consequence, it is all the more necessary for fashion labels to take diversity (sex, gender, size, ethnic group, religion, age, disabilities) into account when designing. What is more, seasons are no longer relevant for global brands as when it is winter in the Northern hemisphere it is summer in the Southern hemisphere - not to mention climate imbalance and the fact that people travel more. Besides, even though the development of the Internet and social media makes it easier today to launch a successful fashion label (as explained in 1.), fashion labels still have to produce goods and deliver them. Indeed, fashion labels still have to deliver products: they still have to source materials - which often requires to attend Première Vision fair, make range plans, make specification sheets, patterns and samples for each product, find the right suppliers and work in close collaboration with them to ensure products are made as required / desired and deadlines respected. It is all the more important for young fashion labels to follow-up with suppliers as they are likely to not be their priority - as their orders tend to be less consequent in terms !27
  • 28. of volume and/or value than more established brands (at least at the beginning). To bear in mind: if the Internet and social media enable fashion labels to reach and work remotely with stakeholders, in the case of manufacturers it might worth contemplate being geographically close to them in order to regularly visit them and check everything is under control - or at least plan to travel. This is the reason why Faithful The Brand founders Sarah-Jane Abrahams & Helle Them-Enger, respectively Australian and Norwegian, decided to move to live respectively in Bali and Singapore to be close to their factory based in Indonesia. Furthermore, fashion labels still have to figure out logistics: make sure materials arrive in time and in good condition to manufacturers, but also that products are delivered to stores or directly to consumers in time and in good condition. Fashion labels should consider having warehouses or implement a drop shipping supply (in which a manufacturer or wholesaler or other retailer takes care of the shipment to the final customer). They should define their shipment policy and price - keeping in mind that returns will be more numerous in the case of online pure players (as customers will not have the opportunity to try on products). What is more, fashion labels still have to take into account national regulations regarding on the one hand product commercialisation - as the sale of some products are forbidden in some countries (for instance, fashion labels could not sell a fashion book in the United Arab Emirates), and on the other hand duties - that are affected by geopolitics (see Trump’s America first policy, Brexit). Finally, fashion labels still need to design and produce packaging, and with the development of the Internet and social media, it is all the more important for fashion labels to have their packaging deliver the best customer experience as it might be the very first physical contact between the customer and the brand through the product: consider boxes, pouches, tissue, ribbon, “thank you” note (see examples in Appendix 10). 2.4. Selling 2.4.1. Direct-to-Consumer !28
  • 29. Even though the development of the Internet and social media makes it easier today to launch a successful fashion label, as it allows to sell directly to customers through e- commerce websites and social e-commerce (as explained in 1.4.1.), fashion labels need to maintain those platforms up-to-date. In particular, they must ensure that their website is all-device-friendly, that there is no bug, that pages download quickly, that the navigation is easy, that it is aesthetic and in line with the brand visual guidelines, that the payment service provider is safe and that the overall website inspires trust to customers. One counterexample is fashion label Coucou bebe 75018 which is not a fraud but people might think twice before buying from it as the website and store policy do not really inspire25 trust but rather suspicion. Besides, with the development of the Internet and social media, it is all the more important for fashion labels to handle CRM correctly as everything goes public easily and quickly. Fashion labels must satisfy customers and handle returns, issues, complaints and bad reviews - which are more likely to happen when buying online without seeing / trying on products and having personal sales assistance. In addition, returns are more likely to happen in the IG era because of the “Cinderella syndrome” defined by Dana Thomas (2019) as “the resolute avoidance of being seen on social media in the same outfit twice”: people would buy clothes online, pose in them for their Instagram post - while hiding the tag, and then return them. According to the McKinsey report on the fashion industry (2019), the return rate for apparel bought online is 25% versus 16% for apparel bought in store. What is more, as customers are now global, fashion labels should consider the languages and currencies they use. In particular, they should offer different options online according to their top nationalities (in terms of sales). Moreover, as the fashion market is saturated and customers have more information to compare brands as well as higher expectations in terms of experience - because of the https://www.coucoubebe75018.com/store-policy25 !29
  • 30. development of the Internet and social media (as explained in 2.2.), fashion labels need physical spaces to recruit and retain customers. According to the Bain market study on luxury goods (2019), more than 70% of purchases in the fashion category are still made offline while 75% of transactions are influenced by the online channel, which depicts the new web-rooming trend - customers research products online before buying them in physical stores to enjoy the full customer experience - and highlights the complementarity between online and offline, hence the necessity for both channels. As a consequence, fashion labels must have physical stores, which present several advantages: they act as living advertisement billboards - they are part of the brand promotion strategy ; customers can touch and try on products - which creates a sensation of ownership and leads to purchasing ; sales assistants can deliver the brand experience to customers and create a bond with them - using data from their CRM tool (for a more curated / personalised experience) while gathering more qualitative data on customers (to enrich the brand CRM database). Furthermore, the interior design, visual merchandising and other atmospherics (smell, music) - in line with the brand identity - are designed to offer customers a bewildering multi-sensory experience so as to lured them into buying (emotional-based decision). To be noted that studies showed that an environment permeated with a pleasant perfume makes consumers more willing to spend time and money, while music played in the background influences traffic flow and spending. All in all, physical stores aim at delivering a surprising, entertaining, pleasurable, multi-sensory experience to customers. Fashion labels having their own physical stores have full control over the experience they deliver to their customers. Though, it comes at a high price due to prime location rents and employees’ wages - keeping in mind that sales assistants are fundamental as they are the ones (cross-)selling and delivering the customer experience, so fashion labels should make sure to keep them happy. 2.4.2. Wholesale !30
  • 31. Given the high costs of owning physical stores, young fashion labels should consider first wholesale, which would give brands visibility and credibility in exchange of lower margins. While online pure players would only give brand visibility and credibility, retailers with physical stores would enable the customers of fashion labels to touch and try on products. Nevertheless, fashion labels would have less control over the customer experience described in 2.4.1. Furthermore, fashion labels would have to organise fashion / trade shows - that could be expensive - to sell their collections to wholesalers. As Alison Lowe MBE (2019) explained, wholesale is less risky for fashion labels as they do not hold stock and would launch production once they have received the order and a deposit. The thing is, with the development of the Internet and social media and the consequence fiercer competition, retailers with physical stores have been challenged and now tend to work only with “established” emerging brands and on sale or return basis (making thus fashion labels holding stock / risk), and if not on a sale and return basis they tend to go crazy with discounting - at any time in the season for any occasion, which is potentially harmful for the brand image. What is more, retailers with physical stores are likely to ask fashion labels for product exclusivities and events, while asking for seasonal collections (one spring-summer and one fall-winter to align with their other brands). 2.5. Promotion 2.5.1. Owned Media The development of the Internet and social media really makes it easier today to launch a successful fashion label (as explained in 1.5.1.), though it takes time and regularity / discipline to produce compelling content, engage with potential customers and build a community online. Besides, fashion labels are now immediately global, and thus need to make sure diversity (in terms of sex, gender, size, ethnic group, religion, age, disabilities) and !31
  • 32. cultural particularities (for instance, not moral to show women’s bodies in Saudi Arabia) are taken into account when producing and publishing content. 2.5.2. Paid Media With the development of the Internet and social media and its consequence fiercer competition, brands have invested more and more in online paid advertising - trying to stand out in that crowded environment - making prices skyrocket and customers feel harassed and disengage. As Cathaleen Chen (2018) pointed out, digital marketing has become in many cases more expensive than store rents (even more so than pop-ups) - while stores act as effective promotion means (unlike online paid advertising nowadays). It is in particular the case with influencers: they have become very expensive (especially the ones with high following and engagement rate) - while customers tend to no longer trust them (at least the ones that would do one shot collaborations instead of marrying the brand - genuinely loving the brand and thus committing in long-term partnerships as explained in 1.5.2.). According to the McKinsey report (2019), while 86% of companies uses influencer marketing, the engagement rate for such sponsored posts on Instagram dropped from 4% in 2016 to 2% in 2019. In other words, online paid advertising has become non (cost-)effective. 2.5.3. Earned Media With the fiercer competition and the possibility to reach people online, journalists and stylists receive hundreds of requests to be featured in publications, and as a result it is difficult for fashion labels to stand out and succeed in appearing in the press unless they organise some costly fashion shows. But those shows seem no longer relevant today. Indeed, they are designed to show collections to editors and buyers - to have press coverage and orders to launch the production and have the collections released / commercialised 6 months later. But with influencers now invited to those shows, everything is immediately posted online, and people want to buy the pieces they like and/or see on influencers (no longer the pieces prescribed by the press) right now, but they have to !32
  • 33. wait. And in the meantime, given that everyone has access to the upcoming collections online (thanks to press coverage and influencers’ posts on social media), people can copy the designs of fashion labels. In the case in point, fast-fashion company Zara has proven very successful in producing seen-on-catwalk products and having them deliver in stores within a few weeks. As a whole, after fashion labels have started selling their collections to customers, as products are visible online, manufacturers can easily copy them and sell them either direct-to-customer through Amazon or Alibaba, or wholesale through Amazon or AliExpress to third parties that would then sell them direct-to-customer though online websites and/or Instagram accounts. This is particularly true for online direct-to-consumer brands as Chavie Lieber (2019) underlined. For instance, you can buy imitations of Khaite signature design on a website called Hyley or on another website called Laven Stories26 27 28 - both ship worldwide from respectively China and the United Kingdom, advertise on Instagram (with sponsored posts) and sell copies of other direct-to-consumer designer brands. Finally, with the Internet and social media, information easily goes public and spreads quickly, thus ethical scandals are more likely to be revealed and go viral, hence affecting brands image. This is the reason why fashion labels should all the more take into consideration social and environmental responsibility, and avoid being put in a situation in which they will have to defend themselves as H&M had to after producing in sweatshops (see the Rana Plaza scandal ), burning unsold garments (see the 2017 investigation ) or29 30 promoting derogatory / discriminatory content (see the Monkey sweatshirt controversy ).31 https://khaite.com/collections/tops/products/the-maddy-top-in-cream26 https://hyley.com/collections/tops/products/ada-white-top27 https://lavandstories.com/collections/tops/products/oana-knit-top28 https://www.theguardian.com/business/2016/may/31/rana-plaza-bangladesh-collapse-fashion-working-29 conditions https://fashionunited.uk/news/fashion/h-m-accused-of-burning-12-tonnes-of-new-unsold-clothing-per-year/30 2017101726341 https://www.nytimes.com/2018/01/08/business/hm-monkey.html31 !33
  • 34. 3. SO HOW TO TACKLE AND OVERCOME THEM? 3.1. Business Fashion labels should build their business as described in 2.1. Besides, they should grow their business in an organic way: use their own profit to grow their business, and only when they are profitable and need a substantial investment (they cannot afford with they own profit) raise money to scale up as Sézane successfully did when raising money to open its own physical stores. To be noted that it is all the more vital to be profitable and have liquidity in times of crisis, as Covid-19 development epitomised it. !34 S É Z A N E — Case Study
  • 35. !35 aris-based Morgane Sezalory started selling vintage clothes on eBay in 2004. She launched in 2008 a website - Les Composantes - on which she would sell monthly “capsule collections” of 100 customised vintage pieces that would sell out in a few minutes. So, she added pieces she would design herself, and in 2013 she decided to design all the clothes she would sell, and rebrand the website into Sézane - helped by two business partners (one former venture capitalist and one former menswear brand co-founder). Morgane would design vintage-inspired French-style clothes, shoes, bags and other accessories, and have them produce in local factories - they could visit quickly - that would make very good quality (some of the factories would work with luxury brands) and with which they would develop very strong relationships. As they would sell online direct-to-consumer (no middlemen, no physical stores), they could offer high quality fashion for relatively low prices (between 100 and 200€). They would have two seasonal collections (turned today in one permanent collection named “The Essentials”) in addition to monthly limited-edition capsule collections - for newness and avoid discounting / leftovers (as everything would be sold out quickly), not to mention potential cash problems. They would keep control of the shipping and logistics from a warehouse in France, as well as the distribution channel - selling exclusively on their website (turning down requests from department stores to stock them). However, they would do collaborations to gain exposure and grow sales in new markets, in addition to pop-up stores-events called “The Sézane Tour”. They have launched in particular 4 collections in collaboration with American brand Madewell - which fits Sézane lifestyle fashion identity, customer and price range. P
  • 36. !36 Since the beginning, Morgane Sezalory has always wanted to be independent and grow organically - be profitable and invest the profit to grow the business, what they did: they raised money - keeping majority stake and ensuring investors would respect the vision and values of the brand - in 2015 when they needed substantial funding to change their logistical platform and open physical stores, and from then on opened stores in Paris (2016), New York (2017) and London (2018).
  • 37. !37 The stores called “apartments” are designed as lively places where customers can shop, enjoy spending time and attend events (in particular, customers can ask for a personal styling session - and even reserve a shopping soirée at a store with friends, champagne and French canapes). Stores act as living billboards and contribute to the brand promotion. The Paris apartment has its own coffee place / bookstore called “La Librairie”, and each store has its own “Conciergerie” to facilitate returns and provide customer services (such as alterations and personalisation) - as 80% of sales are still made online, but also repair clothes and attend community events. Sustainability has become all the more important to the brand along the years: a 5-person team is devoted to corporate social responsibility, 40% of fabrics are either recycled or sustainably manufactured, 60% of leather goods are made out of vegan leather, 70% of garments are made in Europe, and they launched a charity program named “Demain” in 2018. Sézane does not advertise: it relies on the product / experience, its owned and earned media to attract and retain customers. Morgane Sezalory acts as a brand ambassador through its very personal 200K-follower Instagram account - in line with the brand Parisian lifestyle ethos, while Sézane delivers compelling lifestyle content through its Newsletter, its “Journal” - available on its website and app, and its IG account (in particular its IGTV). Finally, after a menswear extension in 2017, Sézane launched an activewear line in 2019, and is currently working on a bridal line.
  • 38. Fashion labels - that are now global with the development of the Internet and social media - should resort to new communication technologies such as Zoom to enable remote work between the different stakeholders, which would prove all the more useful during times people cannot travel and see one another physically as during the Covid-19 pandemic. Furthermore, fashion labels should have a mission / purpose - as today’s customers not only want a product and an experience, but also a meaning. The ready-to-wear turned ready-to-live is now turning into ready-to-engage. For instance, Diane Von Furstenberg for DVF and Maria Grazia for Dior have been supporting women: Diane Von Furstenberg has designed dresses for working women (see signature jersey warp dress - both feminine and comfortable) since 1973, and gives annually a DVF award (alongside money and exposure) to a woman who fights for women’s rights and inspires others to do so, while Maria Grazia has raised issues and turned the spotlight on the contemporary feminine condition via its designs and fashion shows since its appointment as Dior creative director in 2016 (see32 FW20 fashion show decor and conversation ).33 34 What is more, fashion labels should define a clear social and environmental policy / code of conduct and be transparent about it - as customers having now access to more information require it (see Appendix 11 - Nanushka Newsletter “We Are Committed”). In particular, fashion labels should ensure an equal representativity in terms of diversity (sex, ethnicity, religion, etc.), decent wages and good working conditions within their company. However, fashion labels should remain pragmatic: be sustainable but profitable, as Reformation epitomised it. In that perspective, fashion labels should try to be as sustainable as possible, and go sustainable progressively (step-by-step) when profits allow it, and always be very clear / transparent about it with its customers. https://www.theguardian.com/fashion/2017/mar/18/maria-grazia-chiuri-fashion-feminism-fight-for-ideas32 https://www.vogue.fr/fashion/article/paris-fashion-week-feminist-decor-dior-show-fall-winter-2020-202133 https://www.youtube.com/watch?v=lH6aFBPVshE34 !38
  • 39. !39 Californian-raised Yael Aflalo started refashioning vintage clothes she would sold under the name Reformation in a New York Lower East Side boutique in 2009. This business became a vertically integrated direct-to-consumer business in 2012 : Yael Aflalo would make her fabrics in-house from deadstock from other companies ; she would design a limited number of essential pieces for her permanent collection in addition to frequent drops of small batches (as fast fashion companies) - noting that she would regularly keep the same designs / shapes from one batch to another simply changing the fabrics (according to what she would get in terms of deadstock from other companies) ; and she would produce her garments in her factory - which she would rent with machines - in the industrial suburb of Vernon (near Los Angeles). As Dana Thomas (2019) pointed out, Yael Aflalo embraces what Dana calls right-shoring - producing locally in good conditions - which is different from re-shoring that consists in moving back production from oversea low-labor-cost countries (where wages and working conditions are often not fair) to the home country (but that does not guarantee better purchasing power and working conditions for workers, as evidenced by immigrants exploited in sweatshops in the Los Angeles area). As Dana Thomas explained, Yael Aflalo - following American Apparel founder Dov Charney’s model - pays her factory employees above minimum wages, offers them healthcare benefits, free on-site massages, English language classes and a path to citizenship. But as Yael Aflalo told Dana Thomas: “Our production is in the US rather than overseas because we are able to make it much faster here and sell it faster. We are selling more products more often. It’s just smart business”. As Reformation is vertically integrated, it is very agile, meaning they can produce very quickly (design trendy products and have them deliver to customers in 4-6 weeks, compared to 2 weeks for fast-fashion and up to 18 months for traditional brands), reorder what is selling and stop what is not. R e f o r m a t i o n — Case study
  • 40. !40 But what differentiates Reformation is its stake on sustainability. Yael Aflalo claims Reformation to be a “sustainable fast fashion brand” which mantra is “Being naked is the #1 most sustainable option - we’re #2”: they produce decent- quality fashion for a reasonable price (from $40 to $450) in a way as sustainable as possible. As Yael Aflalo explained, “Buy less” is not a scalable strategy. That is why she tries to limit the damages by being as sustainable as possible, while offsetting the damages inflicted by her business by improving the situation elsewhere (working with non-profit organisations to clean waterways for instance) - which in the end of the day makes her company carbon, water and waste neutral. And she is very transparent about it - communicating on its sustainability policy and indicating each garment footprints on Reformation e- commerce website. Among Reformation sustainable practices, the brand uses sustainably sourced materials and renewable energy, it does not overproduce and have leftovers issues (thanks to its drop model and agile production), it takes diversity into account with a wide size range, it recycles old clothes from customers - selling the up-cycled clothes in its Melrose Vintage Shop, it provides employees with fair wages and good working conditions, and nurtures a cool and open atmosphere in its offices and stores - betting on happy employees make happy customers (and thus happy shareholders).
  • 41. !41 What is more, Reformation did not choose an organic growth but successfully raised money first in 2015 to develop its concept / product and then in 2017 to develop its business through technology-enhanced physical stores - knowing that 80% of sales are still made online. Reformation stores are spacious ; only one piece of each garment is showcased and hangers sit in grooves to let space between items and give a high-end boutique impression ; customers have to select on digital screens what they want to try on or tell their selection to a sales assistant that would enter it on his / her app (both technologies taking into consideration inventory) so that clothes would be immediately put in a dressing room for the customer through a double-sided wardrobe connected to stocks ; customers can change the lighting for a variety of flattering colour temperature options in the dressing room, plug their phone and play music while recharging their device, and request different sizes and/or items through a tablet (a sales assistant would then bring them in the wardrobe) ; customers validate their order on the tablet and are then greeted by a sales assistant to then pay by credit card only and receive their order. To be noted than after opening stores in the US, Reformation organised its first pop-up in London in 2016, curated capsule collections with retailers such as Net-A-Porter, Browns East in 2018 and Selfridges in 2019, and opened its first physical store in London last September, and now considers expanding to the rest of Europe. .
  • 42. In addition, fashion labels should engage / involve itself to support the community and contribute to make the world “a better place”. In that perspective, brands could either make direct donations (see LVMH providing hand sanitisers, masks and hospital gowns to healthcare workers during the Covid-19 crisis) or indirect ones - when giving a % of sales revenues to charities - involving in this way customers. Fashion labels could even consider designing a specific product which sales revenues would entirely or partially go to charities (see Appendix 12 - Nanushka Newsletter “Incredible Women”, or Louis Vuitton latest Silver Lockit bracelet edition in the framework of its long-term35 partnership with Unicef ).36 3.2. Customer and Competitors In the context of Covid-19, customers have become even more conscious - “15% of consumers in the US and Europe expects to buy more ecologically and socially sustainable clothing” according to McKinsey (2020), reinforcing thus the sustainability trend part of the “make the world a better place” customer’s desire. As a consequence, customers have become even more demanding - with high expectations in terms of product, experience and meaning / impact on the community, no to mention their decreasing purchasing power due to the crisis - reminding that sustainability has become a must but price still matters more. If the number of competitors is likely to decrease following the Covid-19 crisis, competition will be fiercer among the surviving actors, as traditional fashion labels would have innovated and turned online - putting a strain on digital natives who will no longer be able to rely exclusively on their online proficiency / advantage but will have to go physical (focusing on customer experience) to compete. https://www.instagram.com/p/B81G6VAjhOw/35 https://www.unicef.org.uk/corporate-partners/louis-vuitton/36 !42
  • 43. All in all, fashion labels will overcome those challenges through their business (read 3.1.), product development (read 3.3.), selling (read 3.4.) and promotion (read 3.5.) strategies. 3.3. Product Development Fashion labels should develop a permanent seasonless collection - that would be the signature of the brand - and then release capsule collections with more seasonal products (based of their top markets season cycle - that is likely to be the one from the Northern hemisphere) in the right time, meaning winter clothes in October / November and not in July as it is currently the case in the mainstream fashion calendar. Those capsule collections would be produced in limited number - increasing their value and people’s willingness to buy them according to Robert Cialdini’s scarcity principle (1984), and would make customers regularly come back to check out what is new - online and/or offline. This drop model has the advantage to avoid discounting and unsold garment issues (that could lead to unsustainable practices - such as burning inventories or dumping them into landfills, not to mention the loss of income). What is more, it allows small productions with less financial investment - which is ideal for young fashion labels with limited resources ; it allows to test products (see customer’s response) with lower risks - thanks to small batches ; and finally it allows to skip a season / capsule collections if needed. As a consequence, this model reduces the impact of any crisis on the business. To be noted that the permanent collection can and should evolve: remove the slow-movers and add the top performers from capsule collections - knowing that seasonal products might be variations / interpretations of the permanent range. Moreover, fashion labels should develop product collaborations / limited-edition range of collectibles in partnership with other brands (from the fashion industry or not) or individuals (artists / creative minds or celebrities / public figures). Those collaborations have several advantages : they enable brand extensions - developing products from a new category with a partner who has an expertise in that category (thus legitimating the brand extension) ; they attract new customers - the partner’s enthusiasts ; they surprise and create !43
  • 44. the buzz - as it will be shared / promoted by both partners. Fashion labels should simply ensure the collaboration makes sense in regards of the brand identity, and avoid make too many collaborations in a too short period of time - to keep the surprising effect. Louis Vuitton has evidenced that strategy through multiple successful collaborations over the years, which includes one with streetwear brand Supreme (to attract a younger audience),37 and more recently one with California-based artist Alex Israel - well-known for his38 “Wave” art piece - (to surf / capitalise on the Los Angeles cool trend). Besides, as the consumer trend is towards lifestyle and food, it is wise to collaborate in those directions (see SAINT LAURENT which opened two concept stores filled with limited-edition collaborations , while Supreme collaborated with biscuit brand OREO and Kith with39 40 Japanese restaurants Nobu ).41 Fashion labels still have to produce and deliver goods following the steps described in 2.3. Though, at that stage, they can make some decisions and resort to innovations to not only produce in a more ethical way but also make more profits (#SmartBusiness). First, fashion labels should limit packaging and/or design eco-conscious ones ; they could in addition source sustainable materials for their products: organic fabrics and dyes - to avoid chemicals and toxic substances that result in water pollution and soil degradation in addition to being extremely harmful for humans and local ecosystems, but also fabric innovations such as Econyl (regenerated nylon made from fabric waste and fishing nets), Mylo (engineered leather-like fibre from mushrooms), MicroSilk (engineered silk-like fibre inspired by spiders), Piñatex (leather-like textile from pineapple leaves) or Orange Fibre (silk-like yarn from citrus juice by-products) - to protect the environment and ensure animal welfare. https://www.highsnobiety.com/p/supreme-louis-vuitton-hysteria/37 https://www.vogue.fr/fashion/article/alex-israel-reimagines-classic-louis-vuitton-pieces38 http://hero-magazine.com/article/150236/saint-laurent-reveal-new-concept-stores-with-limited-edition-39 collaborations/ https://hypebeast.com/2020/3/supreme-oreo-double-stuf-collab-cookie-drop-release-date-tease40 https://www.highsnobiety.com/p/kith-nobu-collection/41 !44
  • 45. Fashion labels should also optimise their fabrics when designing to use all of them, thus avoiding waste. In particular, brands could use scrapes to make small accessories, as Louis Vuitton did in 2019 when launching its "Be Mindful” capsule collection composed of bracelets made from silk scrapes, embracing in this way up-cycling (sustainable practice consisting in transforming waste into materials or products of better quality). Likewise, fashion labels should optimise their stocks by producing the right quantities, in order to avoid discounting and unsold garment issues - harmful for the brand image, the bottom line and the environment. This is necessary to reduce risk (and as a consequence the impact of any potential crisis). In the case in point, the drop model - which works on a “see now, buy now” principle - seems to be the best option (as explained above). However, brands can consider a make-to-order model, which has the advantage to avoid discounting and unsold garments issues - and could allow customers to personalise their products, but requires customers to be willing to wait and order ahead of season to receive their products at the right time - while being more complicated to handle production-wise (compared to the drop model). Second, fashion labels should celebrate craftsmanship and resort to (clean) machines, while ensuring their suppliers are providing decent wages and good working conditions to their employees, thus making products of the best quality in an optimised and ethical way. What is more, fashion labels should consider resorting to graphic design tools to render prototypes and adjust samples, as well as 3D technologies - so as to ensure quality, reduce physical visits to suppliers and overall dependence upon suppliers, which might prove beneficial in times of crisis. Besides, fashion labels can consider greener transportation options so as to reduce carbon emissions - knowing that the fashion industry is responsible for 10% of all greenhouse gas emissions. !45
  • 46. In addition, fashion labels should develop partnerships (rather than simple transactional relationships) with their suppliers - in particular for production and transportation, so as to be able to collaborate and negotiate quantities, prices and payments (flexibility) - which would prove all the more beneficial in times of crises, while ensuring sustainable practices are respected. Later on, brands should consider controlling their entire supply chain (production and transportation), or rather be part of a group (holding) - while keeping majority stake - or join forces with other brands in order to finance an integrated supply chain, in order to have full control (in terms of production flexibility and sustainable practices) and better margins. To keep in mind: sustainability now matters to customers and should thus be taken into account in the whole value chain, but design and prices should not be overlooked as they are still customers’ top priorities. Furthermore, fashion labels should remind that crises can be a source of inspiration for designers. As Caroline Evans (2007) explained, designers are like oracles or prophets who feel and interpret the deepest moves of civilisation and translate them into collections and images. Back in the 1990s, Japanese experimental designers Rei Kawakubo and Yohji Yamamoto questioned the notion of gender and reassessed the notion of perfection. Today, Marine Serre interprets the underlying anxiety in modern societies, as epitomised in her 2019 Fall/Winter collection - following Paris yellow vest protests. And42 Covid-19 is likely to change people’s state of mind, thus giving designers-exegetes material to translate / interpret: they might go for playful or colourful exuberant designs in an attempt to forget about the crisis time, or on the contrary go for dramatic or discreet- coloured minimalist designs to stress the anxiety of the new normal era. To be noted that the Covid-19 crisis has increased the number of sources / content available online, which are potential sources of inspiration for designers as explained in 1.3. In particular, some museums have made their exhibitions and tours available online (see Paris Grand Palais special offer during lockdown ), and hopefully more cultural / artistic43 https://www.vogue.com/fashion-shows/fall-2019-ready-to-wear/marine-serre42 https://www.sortiraparis.com/arts-culture/exposure/articles/212402-coronavirus-the-grand-palais-and-its-43 exhibitions-from-the-comfort-of-your-living/lang/en !46
  • 47. content will be available online - thanks to technological innovation and adaptation - in the future, thus fuelling designers’ inspiration. 3.4. Selling Fashion labels should progressively extend their distribution channel - from own online channels to own physical stores, and every purchase should be linked to a personal customer account (loyalty program) - in order to gather data for the CRM data base. 3.4.1. Online Direct-to-Consumer First, fashion labels should directly sell to customers online. They should maintain websites and social media operational and up-to-date as indicated in 2.4. in order to enjoy the advantages described in 1.4. In particular, customers’ questions, complains, returns and bad reviews should be handled effectively and very quickly. Besides, fashion labels should consider integrating technological innovations to improve the customer experience online - knowing that the development of such technologies is likely to accelerate following Covid-19 and will be beneficial to limit the risk of any future crisis that would prevent people from going out and shopping (as it was already the case during Hong Kong protests in 2019). Among them are: virtual reality - to try on products from home but also visit a virtual reality store (thanks to companies such as Obsess ), and if those technologies are too expensive in the beginning for fashion labels,44 they should consider putting high quality pictures but also videos (to see how products render and evolve on people) on their online platforms ; artificial intelligence and machine learning to offer personalised recommendations and suggestions - using both quantitative and qualitative data collected online and in stores when opening them later on (see Stitch Fix model ), and if too expensive, simply offer for each product “wear with”45 https://obsessar.com44 https://hbr.org/2018/05/stitch-fixs-ceo-on-selling-personal-style-to-the-mass-market45 !47
  • 48. recommendations (and “you may like” suggestions) for cross-selling (and up-selling) ; livestream technologies - to allow sales assistants and/or influencers to promote-sell products to large audiences through Instagram and WeChat, but also to allow sales assistants to promote-sell products to smaller groups or individuals (in one-to-one conversations) through WhatsApp, WeChat and new players such as Hero . To be noted46 that livestream technologies are rather cheap and enable connecting with customers in an authentic and intimate way - which is precisely what customers are looking for today (genuine conversations), not to mention that those technologies are likely to be enhanced in the coming months (thanks to Covid-19). What is more, fashion labels should offer online styling consultations, and enable customers to ask to be notified when a product is back in stock, create sharable wish-lists and take part to a loyalty program. More precisely, fashion labels should develop a loyalty program based on gamification: customers would earn points by completing certain actions (buy from the selection of the month, buy for X euros, download the App - to be explained in 3.4.4., let a product review, recommend to a friend) in order to reach a certain status - according to their number of points - that would entitle them to certain perks (free delivery, X% discount on next purchase, X euros voucher, X euros gift card - for a friend, priority access to capsule collection releases, access to private sales, exclusive merchandising - smartphone wallpapers see examples in Appendix 13 / recyclable bottles / tote bags, treats from the brand or a brand partner - styling private sessions at home / spa treatments / flowers / macaroons, invitation to a brand special event or a brand partner event - preview / concert / sport competition). The idea is to make the customer feel recognised and valued (let it be online or in store) - while collecting information on him / her for the CRM data base, in addition to promote the brand and drive sales. 3.4.2. Pop-up Stores Second, fashion labels should organise pop-up stores-events - so as to gain visibility, enable customers to touch and try on clothes, and deliver customers the brand https://www.usehero.com46 !48
  • 49. experience while bonding with them (as explained in 2.4.1.), in a relatively inexpensive way - the idea is to be frugal / think out of box to limit costs while surprising / delighting customers. As Laure Guilbault (2019) explained - following consultant and former creative director of Paris concept store Colette Sarah Andelman’s recommendations, fashion labels should develop pop-ups in main shopping destinations such as Paris, London, New York but also in less expected cities - still relevant fashion-wise and business-wise - such as Antwerp, Chicago or Madrid. They should curate each pop-up specifically for each location: specific product assortment, specific architecture / interior design / visual merchandising / atmospherics, specific animations - to celebrate the location identity while showcasing the brand identity - so as to be very relevant and speak to the local audience. Furthermore, fashion labels should consider developing pop-up stores-events in collaboration - to mutualise costs, benefit from partner’s promotion and even recruit partner’s customers or following. It could be with a venue (hotel, restaurant, private club, cinema, art gallery, dance / yoga studio), another brand (from the fashion industry or not), artists / creative people (photographers, painters, illustrators, authors, singers, DJs, dancers, performers, chefs), speakers, societies, charities. Collaborative pop-ups have the advantage to deliver an all the more surprising and entertaining holistic experience, which is what customers are looking for. Fashion labels should simply make sure the collaboration makes sense, meaning is consistent with the brand identity. 3.4.3. Wholesale Once fashion labels have gained recognition through their online channels and pop- up stores-events, they should then try to be stocked in retailers with physical stores - let it be through in-store pop-ups or corners - so as to benefit from the advantages explained in 2.4.2. Fashion labels should privilege department stores that play their cards right in the current retailer crisis context (such as London Selfridges or Paris Le Bon Marché - which key success factors are a concession model, new designers and regular well-curated !49
  • 50. animations) as well as independent stores - making sure the associations make sense in regards of its brand identity, that they keep as much control as possible over their image and customer experience (be careful with agreements / contracts), and that the number of wholesale accounts remains cost-effectively manageable in-house. What is more, fashion labels should reach and negotiate directly with retailers, nurturing collaborative relationships - which would prove all the more beneficial in times of crisis (in particular to avoid wild discounting). 3.4.4. Direct-to-Consumer Stores Once fashion labels are profitable and need their own physical stores to scale up, they should raise money - while keeping majority skate, and develop their store network. The idea is to have one-of-a-kind, service-and-experience-oriented stores that feel intimate and resonate with the brand identity and its local customers. Fashion labels should open physical stores in their top cities (in terms of revenues), and choose locations based on the brand identity and where their target customers shop. They should develop collaborative relationships with their landlords to be able to negotiate - in particular in times of crises. Furthermore, fashion labels should curate each store depending on the location - to celebrate the brand identity while embracing local culture / specificities, and make each store unique. Visual merchandising should change regularly, and in-store animations (pop-ins) as well as events organised (potentially in collaboration) - in order to keep surprising and make customers visit stores regularly. Still, fashion labels should be careful with surprise as customers should not become used to it, and animations / events should not hide / outshine products - which are still the core business of fashion. What is more, fashion labels should consider their stores as third places - spaces where customers would enjoy spending time outside of home and work, and eventually buy something as a souvenir to remind them of the experience they would have enjoyed (as explained in 1.4.1.). Consequently, fashion labels should integrate spaces such as a coffee place, a book / magazine place, an art gallery / exhibition space, a screening space or a !50
  • 51. manucure / barber stand - ensuring products are still the stars and are well showcased in that experience environment. Fashion labels could rely on technological innovations to improve the in-store shopping experience - making sure they do not substitute to sales assistants who create a genuine bond with customers, and that they fit into the budget / strategy. Among them are: interactive windows, digital screens, smart mirrors that combine artificial reality capability with technology-enabled recommendations (to cross-sell) and enable customers to take pictures and share them instantly on social media. Besides, fashion labels should develop an App that would be all-device-friendly, and that would sell online, facilitate sales in stores, promote the brand and entertain customers. Customers would be able to: try on products thanks to artificial reality and have personalised recommendations thanks to artificial intelligence or not (see Louis Vuitton app - insight in Appendix 14), buy on the App, check availability in-store (that feature should be added on the website as well), scan products in store to see how it is made and have the supply chain information (transparence on sustainability), read about the brand story / mission / values and have access to its “promotional” (rather lifestyle than commercial) content (detailed in 1.5.1. and in 3.5.1.), access to the brand podcast (to be explained in 3.5.1.), play games alone or with other members of the brand community (games potentially developed in partnership with big game companies such as Candy Crush King) and share results online (see Gucci app - insight in Appendix 15), take pictures with brand filters / stickers and share them online. Fashion labels could even contemplate create an app-integrated social media enabling brand community members to interact with one another. Fashion labels should pay a particular attention to the selection of sales assistants, training and working conditions - in order to deliver the best employee experience and as a result the best customer experience and drive sales as explained in 2.4.1. In particular, fashion labels should design a system of compensations to reward both sales and experiences (with KPIs such as number of returns handled, number of styling consultations performed, etc.). !51
  • 52. Fashion labels should offer services such as consultations with stylists, alterations, personalisations (hand-stitched initials for instance), exchanges and returns, cleaning. If you have read until then .47 In order to promote sustainability, fashion labels could implement different measures: have natural light and LED lighting, home plants and green walls, consciously-made or second-hand furniture in stores ; organise in-store animations or events to educate the customers on sustainability (see Patagonia “Worn Wear Tour” or Selfridges “Project48 Ocean”) ; give sustainable care instructions - spot clean with a toothbrush, launder only when it is dirty, use an ecological liquid, run a fast cycle with cold water - in stores and online (consider making tutorials - see Reformation instructions ) so as to extend the life49 of garments and avoid to release microfibres into oceans (which end up in our plates) ; offer a repair / mending service and make tutorials to empower customers to lengthen the life of their products ; encourage customers to give their products a second life - by collaborating with a second-hand platform to give customers a shopping credit when they sell a product from the brand on the second-hand platform (as Stella McCartney does with TheRealReal), or by directly collecting old products of the brand from customers in exchange of a shopping credit, and then either clean and re-sell items as a special capsule on their website / in a corner in store / via special pop-up store-event (see Eileen Fisher “Renew” program ), or up-cycle items before selling them as another special capsule50 collection (see Eileen Fisher “Resewn” Collection ). All in all, as explained by Michael51 Braungart and William McDonough (2002), the idea is to switch from a linear model (“cradle-to-grave”) in which products are made, used and thrown away, to a circular model (“cradle-to-cradle”) in which products are made, used, recycled, reborn and reused. Go to WC2N 6NE on June, 9th 2021 6pm with silk around your ankle47 https://www.sidetracked.com/fieldjournal/patagonia-worn-wear-tour/48 https://www.thereformation.com/pages/wash-smart49 https://www.eileenfisherrenew.com/our-story50 https://www.eileenfisherrenew.com/shop/resewn-collection51 !52
  • 53. Finally, fashion labels have to coordinate / connect all their channels (stores, website, social media, app, phone) so as to offer customers a seamless omni-channel customer experience: customers should be able to research, order, receive, return products wherever they want from whatever platform they want. As a result, customers could decide to research online and then shop in store to have the unique in-store experience (web- rooming), or on the contrary research in store and enjoy then the unique in-store experience and order online afterwards (show-rooming). Customers could actually decide to order online on their phone while in the store or ask a sales assistant to place the order for him / her, pick-up the product in store or have it deliver at home, return any product from home or go to store to return it. In short, customers have all the advantages of online (as described in 1.4.1.) and offline (as described in 2.4.1.) - without the disadvantages of each channel taken individually. To be noted that the CRM system should be integrated as well - collecting and using data on all channels, to deliver the best personalised / curated customer experience, and convert customers into loyal customers and brand advocates. 3.5. Promotion Fashion labels should promote their brand in a frugal way: spend as less money as possible in promotion but still recruit and retain customers - delivering the best experience. In order to do so, fashion labels should be creative / think out of box: rely on their own quality content and events - potentially made in collaboration, and the earned media generated by them. 3.5.1. Owned Media Fashion labels should have an in-house team to manage promotion: research and engage with target customers on social media, answer questions and thank people, go live to have genuine conversation with the brand following, manage compelling content production and online publication (as explained in 1.5.1.) - which is all the more important !53
  • 54. in times of crisis when people are confined home looking for entertainment. Here a good52 example of compelling content following Covid-19 crisis from DVF: traditional brands have indeed understood the necessity of that kind of lifestyle content to genuinely connect with their audience through the crisis. In particular, fashion labels should collaborate: with people to create compelling lifestyle content, but also with stylists and photographers to shoot their products and editorial stories (high quality pictures and videos) - making sure everyone is well represented (diversity), in a frugal way. What is more, fashion labels should consider shooting regular people (not models) to be more authentic and connected to their audience, as Vetements did for its SS18 lookbook - shooting ordinary people in53 Zurich streets, thus creating compelling content on a budget while promoting the brand by engaging directly with customers (not to mention the earned press coverage). Fashion labels could consider using TikTok in a near future - producing their own content and re-using their following’s one. So far, brands have indeed been fearful about embracing that recently booming social media platform, as TikTok current main audience (Gen Z) is not necessarily their target (at least not today), and/or they have not found their voice on that platform, i.e. a way to communicate matching their brand image with TikTok type of content (silly / ironic, and raw - not too much aestheticisation / post-treatment but rather authenticity). As Chavie Lieber (2019) explained, Burberry successfully tried something on TikTok - launching a challenge to reinterpret Riccardo Tisci’s new logo ,54 which generated 30 000 videos from the community and 57 million views in one week, but the brand did not pursue its efforts on the platform. However, it appears that the quarantine required by Covid-19 - preventing people to travel and go outside - gave people, and in particular influencers and celebrities, the opportunity to explore and produce content on TikTok (see successful blogger turned successful fashion influencers Leonie Hanne account ). As the audience is growing older (during this quarantine) and that TikTok is55 https://www.dvf.com/inchargeathome/52 https://www.vogue.com/fashion-shows/spring-2018-ready-to-wear/vetements53 https://www.tiktok.com/@burberry/video/669351911705752704554 https://www.tiktok.com/@leoniehanne55 !54