EOC: My Brand

The first step of in developing the retail operation is building the experience and atmosphere along with it."The store experience is strengthened by the brand's personality" (Fashion Branding Unraveled). There are hundreds of stores that sell similar products but its the experience that the consumer remembers. The atmosphere plays a vital role in helping establish a company as a brand. The brand image always something that a company has control over. "The customer plays an important role in the shaping of the brand throughout the branding process" (Fashion Branding Unraveled). Consumers are the individuals that truly determine what value a company has. To help establish the brand I plan on servicing the customer by providing them with trending, quality garments with an experience that cant be matched. "Fashion brands are an interesting breed of brands in that they are in a continuous state of innovation, transforming themselves at a constant rapid pace" (Fashion Branding Unraveled). Many of the fashion brands manage to stay continuously successful and that is because they adapt with the market. Companies that keep the same work model with out developing it as time goes on eventually see a decrease in business such as JCPenny has in recent years. Pricing is also  very important when trying to present a certain brand image of a company. My plan is to sell products at a higher price so that consumers dont associate the brand with being cheap. Some companies like to set the price very high and reduce it over time. Location and placement is the third area to focus on when establishing the brand. The location must be in an area consistent with a brand image but also in a place that will help increase sales. 

BOC Brands: Gucci

www.guardian.co.uk

The retail field is an ultra competitive field in which it is estimated that over 40,000 products and brands are created every year. There  are situations where luxury brands fall out of favor with consumers due to over-saturation, bad designs, and bad quality. Life cycles for luxury brand can include consistent success, loss of luxury status, going out of business, and then there is the story of Gucci. The luxury brand Gucci experienced success for many decades but eventually lost its luster due to a combination of several factors. The wealthy consumer was no longer purchasing Gucci even though the quality was never in question, and designs were not ridiculously off of what was trending at the time.  The luxury brand reached a point in which many industry professionals predicted the company would go out of business. Under the direction of Tom Ford, the company adopted a new philosophy.  Gucci believed that "in the luxury industry depends on defining a meaning for a brand that can make owning a piece of it feel unique and valuable" (The story of Gucci, Jess Cartner Morley). Under the former management of Tom Ford and current creative director Frida Giannini, the company has been revitalized and has continued to see growth and increased market share. The company has been reborn and now connects to a slightly  younger consumer segment. The problem with the company is that the designs were not what consumers wanted. With the loss of Tom Ford, the company lost a bit of fashion innovation but they have not lost their creative vision. Recently Gucci designs have been a tribute to their former success and to their customers. "Gucci lovers will vote en masse for this collection — an ode to power women not executed with such vigor since the 1980s, but with a 21st-century focus on craft and embellishment" (Gucci Votes for a Power Woman, Suzy Menkes). The style of their new fashions have continued to develop a connection with consumers. The current designs have been so popular that a famous writer has come out and admitted to an addiction to the brand. "This winter I took a tour of Milan's Fashion Week (all expenses paid by Gucci, in appreciation of my many, many purchases), where I spent tens of thousands more and began to seriously grapple, once and for all, with a compulsion that could cost me more than just my life savings" (My Gucci Addiction, Buzz Bissinger). The rave reviews for the company continue to flow with no sign of slowing down.  The recent show "was an orgy of gorgeousness, inspired by the refined elegance of the palazzo principessas in Gucci’s heyday" (Gucci's Orgy of Gorgeousness, Suzy Menkes). "The evening clothes were offered as full-on sexy, with a touch of the femme fatale film star in the embellished gowns, again cut away at the chest — a vote for a woman’s right to display her charms" (Gucci Votes for a Power Woman, Suzy Menkes). 

BOC Brands: Harley Davidson

harley davidson

Harley Davidson has had a long history of providing a products to consumers from all over the world. Although the motorcycle brand is traditionally associated with american consumers, the brand has grown to be accepted by consumers of many demographic and psychographic backgrounds. Motorcycle popularity has consistently experienced growth with small periods of decline. What has allowed the company the ability to be successful regardless of outside factors is the fact that they provide a product that is truly free for anyone to use. Even women, who are not generally thought of as a core consumer for motorcycles have boosted sales since early in the companies history. "There's never been a glass ceiling for women when it comes to Harley-Davidson, as female riders have been an integral part of the family since the company's early days" (Harley-Davidson Celebrates 'Women Riders Month' With Nationwide Search For Top Stories Of Female Independence, Harley Davidson). Having women as a vital segment of the target market gave the company an advantage over its competitors for many years. To this day, the company objective is to continue to expand on its target market. "Harley-Davidson recently reported newly available U.S. demographic market share data for 2012 new street motorcycle sales (all engine displacements) showing the Company continued its market leadership in the U.S. among young adults 18-34, women, African-Americans, Hispanics and Caucasian men 35-plus" (Harley-Davidson First-Quarter Earnings Rise Sharply, Harley Davidson Inc.). In the most recent Harley Davidson advertisement it shows consumers breaking stereotypes. The commercial places a key word for typical Harley consumers with the image of an actual person that contradicts that statement. The advertising is new and refreshing but is consistent with what their message has been. "The desire for individual expression draws customers from all walks of life because it's a universal, human value that transcends cultures, generations and history" (Harley-Davidson Leading The Field With Young Adults, Harley Davidson Inc.). It is very unique for a company to increase their customer base with out alienating loyal customer. The great companies that provide in demand products internationally are the one that stay in tune with what the customer wants and needs. As a tribute to the customers and the brand, Harley Davidson is having an event to celebrate now that the company is turning 110 years old. There is a "global celebration connecting millions of Harley-Davidson fans united by a common bond and shared passion for freedom, self-expression and epic adventure" (Harley Unveils Peek at 110th Party Music Lineup, Harley Davidson). The core values of the company is what they use to connect to their consumers. They will continue to increase in popularity of they stay consistent with what they have done since the start. In more recent consumer reports, it is stated that the company has "continued to gain market share in the U.S., where it is the dominant supplier of large motorcycles" (Harley's Efficiency Moves Pay Off, James R. Hagerty).

BOC Brands: iPhone

Less than ten years ago, the idea o touchscreen technology in a phone might have seemed like just a fantasy. In 2007, Apple released the first version of the iPhone which was very innovative technology at the time. For the better part of the decade, there was one phone brand that had the largest market share. Blackberry was producing desirable phones with features that consumers were looking for in smart phones. Apple developed a phone that provided the similar services but  had the technological advancement of touchscreen that allowed them to provide something unique. The phone was priced very high for a phone during that time but units were still selling out all over the world. In a very short time, Apple created a huge market share for themselves even though they had never produced phones before. "According to research firm IDC, shipments of BlackBerry phones plummeted from 46 percent of the U.S. market in 2008 to 2 percent in 2012" (New Blackberry Q5 Unveiled As Cheaper Alternative, BBM Heads To iPhone And Android, Fox News Latino). At one point, Blackberry was listed as one of the biggest companies to go out of business. Apple users also tend to use their phones more than any other providers. "Apple nabbed 25.86 percent of global mobile internet usage in January 2013, beating out Samsung’s 22.69 percent and Nokia’s third-place slide to 22.15 percent" (iPhone Continues Worldwide March of Domination, Latest Stats Show, Christina Bonnington). Its hard to dispute the fact that the touchscreen technology allowed Apple to substantially increase their market share. At first, Apple was not manufacturing enough phones to meet demand, not people believe that they hold back shipments so that it seems as if there is limited quantities. Now that touchscreen technology is available for everyone to use it has lost its excitement. There are now other providers that have been consistently taking market share away from Apple. "Although the threat of Samsung as a competitor is very real, Apple still took 70 percent of profits in the handset industry in Q4 of this past year" (iPhone Continues Worldwide March of Domination, Latest Stats Show, Christina Bonnington). Initially, consumers were attracted to the product because it was very expensive and in limited quantities. There are so many versions of the iPhone available in different price ranges that is has also contributed to the lack of luster. "One thing is for sure, with the release of such super handsets as the Samsung Galaxy S4, Sony Xperia Z and, HTC One the next iPhone will have to seriously up its game" (iPhone 6 release date, news and rumors, Dan Grabham). With so many iPhones available and the availability of information, there have been issues rising that question the quality of the product. Some consumers say that they "were sold the device with on-off buttons that stopped working shortly after the 1-year warranty was up" (Lawsuit claims Apple sold iPhone 4 with bad on-off button, Dara Kerr). 

BOC: Jeans Cost

How Jeans Cost $300

It is interesting that Americans are willing to spend hundreds of dollars on luxury items from foreign countries except for high quality denim. Many high end brands such as Gucci produce their high end denim in America because we have the reputation for providing the highest quality jeans. Several factors contribute to the fact that high end jeans cost more than they should. It is possible to create high quality denim in a low cost factory such as one in China for only 40 dollars. Consumers wont spend money for high quality items produced in China. "Designers and retailers say the typical retail markup on all fashion items, including jeans, ranges from 2.2 to 2.6 times cost" (How Can Jeans Cost $300). The cost to produce Jeans in the states costs higher because of higher wages and other economic factors. "In the luxury business, those mark-ups cover huge marketing budgets (someone has to pay for giant billboards and ads in fashion magazines) as well as the costs of running stores, headquarters, shipping, and other overhead" (How Can Jeans Cost $300). "Delores Sides, a spokeswoman for Cone Denim, says most of the weavers employed there have at least 20 years of experience, and one woman has being working at the mill for 55 years" (How Can Jeans Cost $300). Experienced employees are the one that are producing the high quality items. Having a person with over half a century of experience is going to require higher pay and in return drive up the markup price. Consumers are willing to pay the higher price for an items because their is an emotional connection rational connection to the item. Rational shoppers can spend hundreds on an item because they expect that it will last a long time. Emotional shoppers spend hundreds on luxury goods because they can.

EOC: Chapter 5 Discussion

1.  The advantage that Zara has in the market can also be a weakness. Zara has a quick response time which allows it to manufacture new products in short runs when a new luxury trend is adopted. Making quick runs of new styles allows Zara to maximize sales by offering a product long before the competition and selling during the peak of a trend. "Zara, which manages through a vertically integrated system to reduce the production cycle, control quantity produced, and minimize inventory so that they can offer new styles in their stores almost every week" (Fashion Branding Unraveled). The problem with short runs is that there might not be a large enough quantity produced to meet demand. If items are sold out for a significant amount of time, the retailer has missed out on potential sales. The challenge for a retailer is having the right amount of product in stock.
2. "Many premium brands such as Zara adopt a fast response concept of production and distribution" (Fashion Branding Unraveled). The fast response strategy adopted by the retailer would fit in this company because many of the people that shop in the high end destinations are tourists. Fast response ensures that luxury trends will be adopted quickly and that the items will be on shelves in time for interested consumers. "Most products are produced in small quantities to minimize stock and reduce the need to discount their prices" (Fashion Branding Unraveled). Urban Outfitters targets a completely different consumers segment but it is possible that high end retailers could use some of their distribution methods. UO allows consumers to order items right from their store if they are not in stock. The items ordered are redirected from shipments that are already on their way. It saves the company money because items dont have to be shipped individually and it creates a sale at the same time.

BOC: Bruce Weber

Bruce Weber is a photographer that has been in charge of some very iconic, controversial, and immense projects. He has a signature style that is easily recognizable and uses his team from his own production company to accomplish his tasks. On one of his most recent projects, he was responsible for shooting the 19th annual Hollywood issue of Vanity fair which people first thought would be too difficult for one person. "To complete the project, which stretched over a period of eight days in nine iconic locations in Los Angeles, including the Beverly Hills Hotel, Musso & Frank Grill, and the Hollywood Center Studios’ back lot" (vanityfair.com). Weber completed the project in just over a week. Bruce's work can sometimes be considered very artistic but it is very easy to see why some people are not happy with his work. In some of his images he uses individuals who are hardly dressed in very suggestive positions Aside form his photography, Mr Weber also uses his film skills to create advertisements. Bruce has created commercials for famous brands such as the "Wet and Wild" commercial for a fragrance by Giorgio Armani (nowness.com). " Athletic model Simon Nessman rises from the wild surf in Bruce Weber’s short for Giorgio Armani's Acqua di Giò Essenza" (nowness.com). The commercial was sort of a revival of the famous fragrance. Although much of Weber's work is very controversial, he also does work that fits to that standard of the people commissioning his work. He is a very talented artist and it is not very likely that he will be having a hard time finding work due to his unique style. One of his recent images shows a model eating while standing with a hippo witch speaks to the issue of women and image issues and health.