Acknowledgement The authors of this report would like to thank Claire Hamer for allowing us to do this project with ASOS and for giving us clear guidance and plenty of support. Also, many thanks to Karinna Nobbs who provided us with tremendous advice and inspiration that got us through this project.
‘Fashion has the Power to spread Messages amongst
People’
-Dai Fujiwara, Designer
Abstract Purpose- consumer interest in green living is growing. With the ethical clothing market growing significantly, there is still a lack of knowledge about what sustainable fashion entails and how retailers can act consciously, educate their customers on green initiatives and maintain their consumers’ interest with regards to their clothing. This research aims to understand ASOS’s twenty-something customer with regards to attaining their interests with their green initiatives in order to provide ASOS with an effective way to communicate and engage those customers. Design/Methodology- This research makes use of motivational theories that aid to drive purchase habits such as Maslow’s Hierarchy and theories regarding the development of trends, the Diffusion of Innovation and the Trickle Up/Down theory to understand whether the stage of the consumer in the trend and their motivational drives effects their purchase habits and in this case in particular whether it effects them buying ethically. A mixture of qualitative and quantitative data collection methods was utilised to test that concept. Findings- A majority of fashion consumers between the ages of 18-29 have a low knowledge on sustainable fashion with those who know about it claiming it is either unfashionable or expensive. Research Limitations/ Implications- This research was women bias as it included more female participants when conducting primary research, through the Focus Group and the Questionnaire. Also, 3 participants’ decided to leave the Focus Group session making this study’s conclusions hard to generalise to the whole population. Originality/Value- This research provides information on the Sustainable Fashion Market in the UK and current thoughts and habits held by the 18-29 year old fashion conscious individual. Keywords- Sustainable Fashion, Green Fashion, Ethical Fashion, Motivations, 18-29 year old market
Contents Page Section 1 The Introduction 1.1: Aims, Objectives and Rationale 1.2: Research Design 1.4: Sampling Strategies
Section 3 6 7 8 11
Section 2 Secondary Research 2.1: The Literature Review 2.11: Maslow’s Hierachy of Needs 2.12: Diffusions of Innonvation and Trickle Theory 2.13: Research Findings 2.2: Market Overview 2.21: Overview of the Ethical/ Sustainable Market 2.22: Ethical Spending in the UK 2.23: Ethical Clothing in Decline 2.24: Emerging Market 2.25: Green Typologies 2.26: ASOS Green Room Current Customer Penn 2.27: ASOS Potential Sustainable Target Customer 2.3: Competitor Analysis 2.31: Competitor’s Ranges Analysis 2.32: H&M Initiative Analysis 2.4: Website Analysis 2.41: Competitor Website Analysis 2.411: Navigation 2.412: Information 2.42: American Apparel Website Analysis 2.43: Luxury Brands Website Analysis 2.431: Findings 2.44: Focus on Hermes 2.5: SWOT Analysis
12 13 13 14 16 18 18 18 19 20 20 22 23 24 24 26 28 28 28 29 29 30 30 31 32
Primary Research 3.1: Vox Pops Videos 3.21: Summary of the Focus Group One 3.22: Summary of the Focus Group Two 3.31: Interview Overview 3.4: Netnographic Analysis 3.5: Questionnaires 3.51: Online Survey 3.52: Stage of Innovation 3.53: Overall Findings 3.6: Label Analysis 3.61: Label Analysis Overview 3.7: Observational Findings
34 35 36 37 38 39 40 40 41 41 43 43 45
Section 4 Research Summary 46 4.1: Research Summary in relation to the Aims and Objectives 47
Section 5 The Proposal 5.1 Why ASOS ‘Global’? 5.2 Tracinility and Customer Engagement 5.3 Swing Tags 5.32 ASOS Global and QR Labels 5.4 Costings 5.5 Timeline
49 52 52 54 55 56 56
Section 6 Recommendations and Conclusion 6.1 Recommendations 6.2 Conclusion
57 58 59
The Bibliography 60 Section 7 The Appendice Appendix 1: Project Brief Document Appendix 2: Proposal Confirmation Appendix 3: Researcher’s Research Methods
70 71 73 74
Appendix 4: ASOS Fashion with Integrity Appendix 5: Green Typologies Appendix 6.1: Competitors’ Website Analysis Appendix 6.2: Luxury Brands Website Analysis Appendix 7: Comp Shop Appendix 8: Focus Group and Interview Consent Appendix 9: Focus Group Dicussion Guide Appendix 10.1: Focus Group Transcript Appendix 10.2: Focus Group Coding Appendix 10.3: Focus Group 2 Transcript Appendix 10.4: Focus Group 2 Coding Appendix 11: Interview Guide 137 Appendix 11.1: David’s interview Appendix 11.2: Rianne’s Interview Appendix 12: Perceptual Map Appendix 13: Questionnaire Appendix 13.1: Questionnaire Results Appendix 14: Label Analysis Appendix 15: Proposal Priorities 153 Appendix 16: Swing Tickets Sourcing Appendix 17: Competitor’s Initiatives PPD: Anita PPD Vanessa
75 76 79 86 90 105 106 107 119 120 136 142 139 145 146 147 152 154 155 157 158
List of Figures Figure 1.3.: Data Collection Methods Figure 2.111.: Maslow’s Hierarchy Figure 2.121: Roger’s Diffusion of Innovation Figure 2.131: Issues with Fashion Sustainability Figure 2.221: Consumer Spening UK, 1991-2011 Figure 2.231: Ethical Clothing Expenditure Figure 2.241: Design Led Ethical Fashion Profile Figure 2.251: Greem Typologies Table Figure 2.271: Greem Typologies Table Figure 2.321: H&M Inititatives Figure 2.4311: Versace Personalisation Figure3.212: Topics Discussed Figure 3.222: Topics Dicussed Figure 3.511: Questionnaire Results Figure 3.521: ASOS’s Customer Innovation Position Figure 3.62: Label Analysis Figure 6.1: Examples of creating excitment through packaging
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The Introduction
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Source: google.com/images, 2012a
‘GREEN is the New BLACK’ - The Co-operative Bank Annual Ethical Consumerism Report (2005)
Since 2000, Sustainability has been of increasing importance. Expanding beyond the food industry, the clothing market has experienced a rise in sales growth of 2900% between 2000 to 2011 (Co-operative Bank, 2011) and currently holds 0.4% of the overall clothing market which is larger than the Bridalwear sector (Mintel, 2009). Presently, Sustainable fashion is seen as ‘untrendy’ (Crommentuijn, 2012) and expensive due to high-end designers such as Bruno Mars, only offering 100% sustainable ranges. However, high street retailers such as H&M and American Apparel have recognised the growing consumer interest with regards to the conditions their clothes are made in, thus responding by offering ranges that adhere to this in order to satisfy that aspect of the market and to educate the youth market with regards to the way they shop as they place clothing as their number 1 priority (Mintel, 2012). ASOS, being the largest independent online fashion and beauty retailer in UK, has implemented sustainable initiatives into their product offerings. The Green Room is a Womenswear section within the website offering only sustainable products alongside their own-label offerings of ASOS Africa, ASOS Crochet Village and recently launched a new concept, ASOS Reclaimed Vintage.
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With retailers looking to do the right thing and the growth of the Sustainable clothing market, ASOS should capitalise on this opportunity to become a strong competitor against the current retailers such as H&M and to educate its consumers.
In order to increase the appeal of sustainable fashion to their consumers the following Aim and Objectives have been conjured alongside the research design to do so.
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Source: google.com/images, 2012b
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Project Aims and Objectives
Project Aim
1.1
To solidify an understanding of how 1829 year old fashion conscious individuals’ engage with sustainable fashion in order to create a medium to long term strategy that ASOS can utilise to optimise their sustainable fashion offering to appeal and engage this demographic.
1. To outline key information with regards to the green market and the fashion retail market in addition to ASOS’s competitor actions’ within the market with a focus on sustainability
Objectives
2. To critically evaluate literature relevant to the perception of sustainability and in particular sustainable fashion
3.To classify the motivations, consumption habits and engagement behaviours that the 18-29 year old market has towards sustainable fashion
The project serves two purposes: An academic purpose and an industry purpose.
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Academic- Through researching journals, books and academic articles it is highlighted that young fashion conscious consumers know little about ethical and sustainable fashion. However, market data suggests it is a growing sector. These issues have been further researched using primary research methods to solidify an understanding. Industry- ASOS is growing in popularity within the eyes of their 20-something year old fashion forward customer. With a growing trend towards sustainable fashion and research highlighting that this market has limited knowledge regarding fashion sustainability, this project developed closes the barrier between sustainability and the 18-29 year old fashion customer by providing understandable information about the customer alongside effective strategies used to engage them.
Rationale
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4. To formulate recommendations for ASOS to optimise their sustainable fashion offerings and engage the 18-29 year old market.
1.2 Research Design This research adopts an inductive approach as the social world is of main concern (Bryman and Bell, 2007) alongside individuals’ opinions. Therefore secondary research was collated first to understand theories and trends within the sustainable fashion market and about customers; followed by primary research in order to test the theories discovered. Triangulation method was used to collect data utilising both Qualitative and Quantitative methods (See Figure 1.3).
Figure 1.3: Data Collection Methods
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Sampling Strategy
Sampling Strategy Used Convenience Sampling
Justification
7 customers of ASOS was used This method was used due to its accessibility to instant information from ASOS ideal consumer. DRAWBACK: Findings cannot be generalised to the whole population.
Execution of Sampling Strategy
A Self-Completion Questionnaire was created on surveymonkey.com and distributed via Facebook on university students Facebook Groups and by emailing it to friends. The results were than analysed using a range of statistical methods. DRAWBACK: Incomplete surveys that couldn’t be used and a lower response rate.
Focus Group Sessions
Two Focus Group Sessions was devised to understand consumers’ thoughts on ASOS and Sustainability. A discussion guide was devised to ensure the important topics that needed to be covered, were covered. The Focus Group was then transcribed and coded thematically. DRAWBACK: The focus group often went off topic which made the process timeconsuming.
Semi-Structured Interviews
This qualitative approach to interviewing was utilised by having an interview guide of questions that needed to be answered but additional questions was also asked to gain an in-depth understanding of the consumer’s knowledge of the topic researched. The Interviews were then transcribed and coded thematically. DRAWBACK: Participants often went off topic and the interview as a whole is time-consuming to code.
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Self-Completion Questionnaire
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1.4
Secondary Research
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Source: google.com/images, 2012c
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Literature Review
2.1
Over the past few years there has been a proliferation in the interest surrounding Sustainable Fashion with retailers looking to do the ‘right thing’ socially and environmentally. With this concept still in its infancy (Co-operative, 2009), research into this area is limited; however insightful journal articles and consumer behaviour concepts provide a general impression regarding the market and it’s consumers. Ideas regarding purchase motivations and the derivation of trends can be applied.
2.11 Maslow’s Hierarchy of Needs
Shaw and Tomolillo identified in their paper ‘Undressing the ethical issues in fashion: a consumer perspective’ (2004) the application of Maslow’s theory to the fashion industry using Bohandowicz and Clamp’s (1994) explanation. They suggest that the lower needs are fulfilled before individuals can move to a higher level( refer to Figure 2.2). The physical level refers to the functionality of the garment e.g. a coat keeping you warm; whilst safety looks at the comfort of the garment and whether it’s hazardous. The latter stages are fulfilled through the fashionability of a garment which shows a person social stance and preference allowing them to be accepted by their peers. Ethical consumers have been identified as being motivated on a selfactualisation level whereby they seek a further non-indulgent value to the garment.
Maslow’s hierarchy doesn’t take it to account other motivational factors that drive purchases such as price thus when coupled with the Diffusions of Innovation theory and Trickle theory it can highlight possible customers motivations, where they sit in terms of fashionability and what influences these factors.
Figure 2.111: Maslow’s Hierarchy of Needs
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Source: wordpress.com
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2.12 Diffusions of Innnovation and Trickle Theory In the book ‘Consumer Behaviour in Fashion’ (2004), Michael Solomon and Nancy Rabolt discuss consumer behaviour within a fashion context looking at various motivational theories that drive purchases. Commonly, the Adornment Theory is the reason why we buy and select particular types of garments. It states we buy as a form of self-expression oppose to the Protection Theory which states that we wear clothes to provide safety. However, when looking at Roger’s Diffusion of Innovation Model coupled with the Trickle Theory, it highlights an additional explanation of consumption that can be applied to the sustainable fashion market. Solomon and Rabolt define the model within a fashion context as ‘a style, design, or look perceived as new by a customer’ (2004:94). Figure 2.121 illustrates the stages of Innovation alongside the model itself.
Figure 2.121: Roger’s Diffusion of Innovation
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Source: Rabolt, N. and Solomon, M. (2004)
Current Innovation Position
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Designer Influence
It could be said that designers such as Vivienne Westwood and Stella McCartney aided to influence change by communicating their ethical views on a mass scale. Pioneering smaller ethical brands such as People Tree and Junky Styling provided the innovators a place to shop. Currently, the early stages of trickling-across is commencing within the high street sector (Early Adopters) with retailers such as H&M and American Apparel already communicating their sustainable
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commitments. Vintage Clothing and customisation have aided the development of sustainable fashion. Innovators perhaps shop in boutiques such as Rockit on Brick Lane and various thrift shops in USA. This trend then trickled-up onto the high street with retailers implementing this aspect into their product offerings. Urban Outfitters have capitalised on this through their ‘Urban Renewal’ range which provides early adopters with vintage reworked garments.
2.13 Research Findings Through the journal ‘The Sustainable Clothing Market: an evaluation of potential strategies for UK retailers’, Helen Gowerek et al showcases consumers’ views on sustainable clothing (2012). She found that consumers’ lack awareness in relation to the impact of the clothing market (refer to Appendix 3 for research methods) This is reinforced by Shaw and Tomolillo’s research that found consumers had a lack of information especially with regards to transparency which has been expressed as an important aspect of an ethical clothing retailer (Jones and Williams, 2012); (refer to Figure 2.131 for issues with fashion sustainability).
Figure 2.131: Issues with Fashion Sustainability Issues Consumer Knowledge (Cervellon and Wernerfelt, 2012; Hill and Lee,2012; Wang,Lo, Shum, 2012) Educating Consumers (Jones and Williams, 2012; Wang,Lo and Shum, 2012)
Consumer Trend (Jones and Williams, 2012; Gowerek et al, 2012) Barriers to buy or behave ethically from the consumers’ perspective (Jones and Williams, 2012; Gowerek et al, 2012; Hill and Lee,2012; Shaw and Tomolillo, 2004)
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Methods for acting ethically (Jones and Williams, 2012; Gowerek et al, 2012; Calllen-Marchione and Ownbey, 2007)
Characteristics - Consumers have a lack of awareness of green fashion and keywords involved with it such as organic materials and a sustainable supply chain -Due to the lack of consumer understanding with regards to ethical products reflects their lack of willingness to support such garments therefore raising their awareness is essential. -There is a growing customer trend for products which are environmentally and socially sustainable -Some consumers consider clothing recycling to be too inconvenient -Consumers are more influenced by price and style of a garment oppose to its ethical stance -Ethical shopping can be seen as an inconvenience for customers as these products aren’t widely available thus a special trip needs to be made -It’s too expensive and not affordable -Ethical clothing is not trendy enough -Ethical practises with the fashion industry should include making sure the social and economic development in communities are created whilst taking into account the environment when producing garments
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Issues Consumer Knowledge (Cervellon and Wernerfelt, 2012; Hill and Lee,2012; Wang,Lo, Shum, 2012)
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Current fashion marketing and ethical communication strategies (Gowerek et al, 2012; Jones and Williams, 2012; Shaw and Tomolillo, 2004)
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Characteristics - Consumers have a lack of awareness of green fashion and keywords involved with it such as organic materials and a sustainable supply chain -Current marketing strategies regarding garments and a brand are mainly price-led and drawing on having ‘acceptable quality’ (Gowerek et al, 2012:5) -Brands utilise web-sites and pointof-sale atmospheres to communicate the companies’ ethical beliefs to its customers.
Ethical Issues (Gowerek et al, 2012; Jones and Williams, 2012)
-The disposal of fast fashion clothing -By creating transparency within their supply-chain will inform consumers and aid them to make more ethical choices alongside educating them
Labelling methods (Jones and Williams, 2012; Gowerek et al, 2012)
-Inclusion of issues that aren’t addressed on care-labels such as washing with a full load -Mentioning you are a member of any ethical initiatives on the companies’ garment labels even if it is not permitted to use the initiative’s logo will aid consumers to make more conscious decisions alongside raising awareness
Upon reviewing the research methods used by the researchers and the concepts analysed, this research will include more qualitative methods to analyse the views held by consumers about the current sustainable fashion market alongside their stage on the Diffusions of Innovation model. In addition, quantitative methods, in the form of a questionnaire will be used to increase the validity of this research.
2.2
Market Overview
2.21 Overview of the Ethical/Sustainable Market Mintel (2009) estimates that total sales of ethical clothing are currently worth around £175 million (or about 0.4% of total market), which is a little larger than the bridal wear sector and equivalent to almost half of the value sales of hosiery. Consumer awareness and concern with issues like sustainability and ethical production and trading is higher than it has ever been. This, plus improving availability, is helping to drive up sales of ethical clothing as one aspect of that wider movement. Despite growth, this remains as yet an undeveloped market with plenty of potential.
Overall, the ethical market in the UK was worth £43.2 billion in 2009 compared to £36.5 billion two years earlier, against the background of one per cent growth in overall household expenditure over this period. Ethical personal products, including clothing and cosmetics were the fastest growing sector, increasing by 29 per cent over two years to reach £1.8 billion. Sales of ethical clothing grew by 72 per cent to reach £177 million, while charity shop sales grew by 62 per cent to £340million (The Co-operative, 2010).
Ethical Clothing Market compared to the Hosiery Market and Overall Clothing Market Source: Mintel, 2009
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2.22 Ethical spending in the UK
Consumers spent £1.9bn on ethical personal products in 2010. This included £528m on crueltyfree cosmetics and £171m on ethical clothing including Fair Trade and Organic garments. Charitable donations remained stable during the economic downturn with consumers giving £3.6bn to environmental, social and animal welfare causes (The Co-Operative, 2011). Sales of ethical personal products, including cruelty-free cosmetics and ethical clothing decreased to £1.8bn. However, spending in charity shops and second-hand outlets increased by 7.2% to £719m (The Co-Operative, 2012).
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Figure 2.221: Consumer Spending UK, 1999-2011
Source: The Co-Operative, 2011
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Figure 2.231: Ethical Clothing Expenditure
Source: The Co-Operative, 2010; 2011; 2012
2.23 Ethical Clothing Decline Figures from the Ethical Consumerism Reports showcase that ethical clothing expenditure has been in decline since 2008 (see Figure 2.241). This may be as a result of the economic downturn where customers may have been more cautious of how they are spending money. In addition to this, with the affordable ethical clothing scarce, the increasingly popularity of fast affordable fashion from the likes of ZARA and Primark may have also played a part in the decline.
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2.24 Emerging Market 2.24 Emerging Market Ethical Fashion Forum carried out a consumer survey in May 2011. This established that for the majority of customers, design and style are a primary consideration (See Figure 2.241). Ethical Ethical Fashion Forum carried out astories consumer survey in May 2011. This that for the credentials and well-communicated behind the product do help to established secure the sale, majority design of customers, designstandards and styleare arehigh. a primary consideration (See Figure 2.241). Ethical providing and product credentials and well-communicated stories behind the product do help to secure the sale, providing and product aregenerally high. People whodesign say ethical clothing standards is important spend around £200 more than
people who think it’s unimportant…and there are 34.8m customers who say ethical clothing People who say ethical clothing is important generally spend around more than of Ethical considerations are quite/very important. Of these 34.8, 6.9 million rate£200 the availability people as who think it’s unimportant…and there are 34.8m who say ethicalThey clothing clothing being poor/very poor. These 6.9 million are thecustomers key customers to target. considerations areclothing, quite/very Of these 34.8,(Ethical 6.9 million rate Report, the availability of Ethical want to buy ethical butimportant. cannot source it easily Clothing 2008; TNS clothing as Fashion being poor/very poor. These 6.9Forum millionReport, are the2011). key customers to target. They Worldpanel cited in Ethical Fashion want to buy ethical clothing, but cannot source it easily (Ethical Clothing Report, 2008; TNS Worldpanel Fashion cited in Ethical Fashion Forum Report, 2011).
Figure 2.241: Design Led Ethical Fashion Profile
Figure 2.241: Design Led Ethical Fashion Profile
2.25 Green Typologies Based on an analysis of Britain’s internet using adults, Mintel (2012) have identified three mutually exclusive groups based on their attitudes towards the environment (Refer to Figure Based onAppendix an analysis of Britain’s internet using adults, Mintel (2012) have identified three 2.251 and 5for full report). mutually exclusive groups based on their attitudes towards the environment (Refer to Figure 2.251 and Appendix 5 for full report).
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2.25 Green Typologies
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G Figure 2.251: R E E N
Green Typologies Table
T Y P O L O G I E S
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Source: Mintel, 2012
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Source: google.com/images, 2012d
2.26 ASOS Green Room Current Customer Penn
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2.27 ASOS Potential Sustainable Target Customer
This group, the largest typology, is dominated by 16-24 year olds, the same age group which predominantly shop at ASOS. They are less financially advantaged and this determines their overall outlook on green issues, with price rather than natural or ethical consideration influencing their decisions and habits. With this target market placing clothing high on their priority list (Mintel, 2011) and beginning to develop an awareness on sustainable fashion there is a potential for ASOS to offer affordable, trendled pieces for their customers to buy into. This sits in line with ASOS’s Business Strategy of ‘Playing a positive role in reflecting and shaping the values of our twenty-something customers’ (asosplc.com, 2012; refer to Appendix 5 for full strategy).
Figure 2.271: Green Typologies
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Source: Mintel, 2012
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Source: google.com/images, 2012e
2.3
Competitor Analysis
2.31 Competitor Ranges Analysis Various high-street retailers have communicated their ethical initiatives to their customers. H&M have successful done this by implementing a recycling scheme in-store alongside their seasonal Conscious Collection. Other retailers such as American Apparel have communicated the fact that all their garments are made in LA as well as a seasonal womenswear collection called ‘California Select Original’ which utilises old garments and vintage fabrics( For competitors shop on their ranges refer to Appendix 7).
Source: telegraph.co.uk, 2012
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Source: hm.com/csr, 2013
Source: target.com, 2013
25 Source: urbanoutfitters.co.uk, 2013
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Source: americanapparel.net 2013
2.32 H&M Initiative Analysis H&M has various initatives that are divided in tackling Social issues and Environmental Concerns(Refer to Appendix 17 for full analysis).
Figure 2.321: H&M Initiatives Source: about.hm.com
H&M and Unicef 5-year project
Environmental
Looks at reducing the amount of children working in cotton fields and looks at Child Rights Environmental Responsibilities Transport, Waste Management, Production effects on the environment Partnership with WFF
Zero Discharge of Waste by 2020
Aims to reduce water wastage
Mill Development Program
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H&M Sewing Centre in Dhaka, Bangladesh
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2.4
Website Analysis
2.41 Competitor Website Analysis A website analysis was undertaken on three of ASOS Green Room’s main competitors’ websites to compare and analyse the ease of navigation and information given to the customer (refer to Appendix 6.1 for full Analysis)
2.411 Navigation
ASOS stood out as being the most discreet in terms of offering sustainable fashion. The green room is difficult to find amongst all the other collections. Where H&M didn’t have a tab dedicated to the conscious collection, a preview was available on the homepage which then directs customers to the collection. Both
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Source: asos.com, 2013
American Apparel and People Tree who offer nothing but sustainable fashion made this clear on their homepages. Although Urban Outfitters ‘Urban Renewal’ section is located on the drop down menu like ASOS it is present on both the men and women’s categories and is placed under the “collections” heading which makes its it easy for customers to identify it as a collection.
Source: peopletree.co.uk, 2013
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2.412 Information All brands provide a substantial amount of information regarding their involvement with sustainability. ASOS provide a useful glossary of terms to educate those who may not be familiar with the sustainable initiatives. However, People Tree and American Apparel have the most engaging content as it is more interactive. American Apparel gives customers the option to ‘explore’ what goes on inside
their factories. This includes exclusive behind the scenes footage/short clips giving insight into the different stages of production and departments within the company. H&M’s information is quite interactive in the sense that it too offers videos as a way of explaining what they do. They also have provide written interviews which may be viewed as bit long winded to read but also short snappy stats which gives customers information that can be processed quickly.
Source: hm.com/csr, 2013
Source: hm.com, 2013
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2.42 American Apparel Website Analysis
30 Source: americanapparel.net, 2013
American Apparel provide a separate section to their website that allows customers to navigate around their factory, showcasing videos from various departments including the cutting room and the sewing room. This provides customers with reassurance about their garments with regards to the conditions they were made in and also allows them to see the craftsmanship behind the garment; creating an emotive connection.
2.43 Luxury Brands Website Analysis Luxury Brands have been known to create engagement with their target audience. In order to understand how this is done alongside the tactics they use, a Website Analysis was carried out using the Versace, Hermes, Burberry, Mulberry and Net-a-Porter websites.
2.431 Findings It is found that luxury brands utilise a mixture of tactics to create customer engagement via their websites. All brands utilised visual techniques such as videos typically to inform customers more about the heritage of the brand and in the case of Hermes, showcase the craftsmanship held within the company. When it came to the display of the content, they all utilised a simplistic layout, for instance Mosaictitles to lots of information without it being overbearing (refer to Figure 2.4311) and also mimics blog posts which provides an additional enjoyment value as
Figure 2.4311: Versace Personalisation Source: versace.com, 2013
Net-A-Porter Homepage Source: net-a-porter.com, 2013
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you are getting more than just shopping. Lastly, personalisation was utilised by the Versace website which instantly engages the customer as it requires them to select their preference in addition to creating more of an attachment to the website.
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2.44 Focus on Hermes
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The Discover Hermes page is displayed in Mosaic Tiles which creates interaction with the customer as you have to select different articles. The visual content varies from videos to slideshows about the company which aids to retain the viewer’s interest. Like and share buttons are at the bottom to link to facebook, Googleplus, twitter, Pinterest and general emailing to help spread Wordof-Mouth.
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Hermes Home screen has different options such as Festival des mÊtiers, The Colognes, Hermès Cavale and Hearts and Crafts alongside the usual buy online/ store finder. This allows customers to find out more about the brand.
The Craftsmen is another page which showcases the workers. It explains who they are and where their passion for their job comes from. This allows the customer to understand the person behind the product and create an emotional connection to the product and ultimately the brand. Source: all images hermes.com
2.5 SWOT Analysis A SWOT analysis of ASOS was carried out in order to understand ASOS’s current position alongside identifying any gaps in the market which ASOS could capitalise on. With a huge social media presence ASOS already has an established network which makes it easier to promote new initiatives or activities at ASOS. When evaluating ASOS’s weaknesses it was identified that the ‘Green Room’ was not noticeable and had higher price points which may not be as affordable for the core customer. With regards to the market, there is a big opportunity for ASOS to cater to the ‘Environmental Apathetics’ (Mintel, 2012) who feel they can’t afford sustainable clothing and the majority of this market is aged 16-24 coinciding with a section of ASOS’s target market. In addition to this, with no government restrictions, particularly in the UK and USA, on Green Labelling allows ASOS to be creative in the communication and symbols used. The current threats associated with this opportunity is the possibility of sustainable clothing not appealing to them, probably due to their lack of knowledge in this area.
STRENGTHS •The largest independent online fashion and beauty retailer in the UK with over 11 million unique visits a month (Mintel, 2012) •Over 40,000 products in its portfolio of both branded and own-label lines (asosplc.com, 2012) •Over 11 million unique visits to the site a month (ibid) •Huge social media presence – Twitter, Facebook , Instagram etc
•The current ASOS Range helps communities in Kenya
WEAKNESSES •Price points of the Green Room products are high and may not be as affordable for the 20-something customer •The Green Room section may not be as noticeable or have as much publicity/awareness
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•Bias towards females
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THREATS •H&M are currently the forerunners of sustainable fashion with their conscious collection alongside beginning to think of sourcing in Africa (www.ft.com, 2013) •Ethical/sustainable fashion may not appeal to the 20 something year old ASOS customer •Other competitor actions, Topshop and their Reclaim to Wear for SS13 •The 20-something customer not responding or understanding the initiatives that ASOS takes
OPPORTUNITIES •As the UK’s largest independent online fashion retailer they have the platform to launch and focus attention to new products into the market i.e. issues regarding fashion & sustainability •The ability to work with different communities around the world “ASOS Global”
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•No Government requirement or regulation as to how to communicate green initiatives or on green labelling (Jones and Williams, 2012) therefore there is an opportunity for ASOS to educate the 20-something target market in their own way and to be creative with their labelling/ communication method.
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•Environmental Apathetics (Mintel, 2012) is the highest percentage of the market that feels they can’t afford green and with a majority aged 16-24. ASOS has an opportunity to make sustainable fashion products affordable.
Primary Research
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Source: google.com/images, 2012f
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Vox Pops Videos
3.1
A Vox Pops video was carried out as an instant method of understanding consumers’ thoughts and knowledge regarding ASOS and Sustainability. There were 6 participants, five female and one male, and they are all customers of ASOS. (For the questions asked refer to Figure 3.12). Individuals showed genuine knowledge and admiration for ASOS and are confident in their knowledge with regards to why they like ASOS and the brands they sell. In contrast, when asked questions to do with sustainability they had limited or no knowledge on the subject but were able to mention words that are associated with sustainability such as ‘Child Labour’ (Rochelle Mckenzie, 21) and ‘being treated fairly’ (John O’kello, 19).
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Yanyran Song, 19 Student Bloomsbury Gardens, Holborn
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Caroline, 18 Student Bloomsbury Gardens, Holborn
3.2
Focus Group
3.21 Focus Group One: Summary This Focus Group included 7 participants’ ASOS customers ranging from 19 to 23 years old and lasted 45 minutes. For the topics discussed refer to Figure 3.211 (refer to Appendix 10 and 10.1 for full coding and transcript).
Topics
Figure 3.212: Topics Discussed
1. Sustainable Fashion and General Thoughts 2. ASOS and their Sustainable Fashion 3. Reviewing products on ASOS Green Room and ASOS Africa 4. Purchase Drivers 5. Garment Aftercare
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3.213 Findings
Generally, their knowledge of Sustainable Fashion was limited; only being able to mention H&M as a sustainable retailer. When purchasing, they placed a higher priority on the style and price of the garment with how ethical it is being an added value. All the participants have heard of ASOS Africa but not of the Green Room. With regards to ASOS Africa they felt the range needed more of a stylistic USP that provided continuity season-on-season to make it more identifiable and to stand out more.
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3.22 Focus Group Two: Summary This Focus Group included 4 participants all ASOS customers ranging from 19 to 21 years old and lasted 93 minutes. For the topics discussed refer to Figure 3.222 (refer to Appendix 10.3 and 10.4 for full coding and transcript).
3.221 Findings
The participants in the Focus Group showed praise to the ASOS Africa, Reclaimed and Crochet Village concepts. However, they were slightly cautious about where their money goes after they buy into the range. They proposed that ASOS should do an update to showcase how they’re money has helped people, providing them with reassurance that they’re money is contributing to something good. When looking at the social and environmental issues related to sustainability they thought both are equally important but particularly related to the ‘Made Locally’ imitative as 1. Discussion on ASOS Africa and ASOS it is supporting the country and there will Reclaimed Vintage be less transport pollution which relates to the environment. They recommended that ASOS should communicate their initiatives 2. Discussion on Themes through social media platforms and enjoyed the idea of a Traceability Tracker. 3. Suggested methods of communication
Topics
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and their feedback
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Figure 3.222: Topics Discussed
Source: google.com/images, 2012g
3.3
Interviews
3.31 Interview Overview Two semi-structured interviews were carried out using two participants from the first focus group in order to deepen our understanding on the knowledge they hold as this can not be done in the focus group due to the amount of people involved. Each interview lasted approximately 30 minutes (refer to Appendix 11,11.1 and 11.2 for interview transcripts and discussion guide).
3.32 First Interview: Rianne
3.33 Second Interview: David
Overall, after having the discussion she would want to buy ethically but finds it hard to source ethical clothing that matches her requirements being style and price. She identified that due to the lack of media attention and publicity surrounding sustainable fashion; it is hard to know what is happening and the unfortunate working conditions that people face. Compared to the implementation of recycling in the UK, she felt that sustainable fashion should take the same trail and being introduced on the high street and being rewarded for partaking.
In summary, David expressed not being exposed to sustainable fashion particularly because he has only seen it being introduced within womenswear and does not cater for men. Even though he places more importance on the style of the garment, he felt it is important to be given the option by retailers to buy ethically.
- Both Participants relate Sustainable Fashion with H&M - Both had a vague idea of what sustainable fashion is and used words such as ‘responsible’ (Rianne, 2013) and ‘environmentally friendly’ (David, 2013) being part of it. -They both identified Sustainable Fashion as being uninspiring and expensive when it comes to the product. - Both stated that the style of the garment is the first priority.
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Common Factors
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Netnographic Analysis
3.4
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The Netnographic analysis undertaken highlights the lack of marketing towards the ASOS Africa range via their social media platforms (Facebook and Instagram) and to see how customers response to the collection. Posts on ASOS’ Facebook page were looked through from 20102013, 2010 being the year in which ASOS Africa launched, to analyse the frequency of posts in regards to the collection. Only 3 posts were identified in mentioning ASOS Africa products over the 3 years. The same issue was present on their instagram. Out of 1793 pictures (as of 27 May, 2013) only 2 pictures featured ASOS Africa garments which could be the reason as to why so many people are unaware of the collection.
Source: ASOS Instagram and facebook.com/asos, 2013
Overall there is lack of exposure to the ASOS Africa range on both social media sites which is a loss providing they are such a huge platforms with enormous followings, 736k instagram followers and 2.4m likes as of May 2013. In regards to the collection, Facebook follower had more to say about the concept of the range rather than the aesthetic. Many voiced their thoughts over the name ASOS ‘Africa’ and how they disliked 40the generalisation of Africa in regards to
one African country in which the garments are representing. ASOS are also very good at answering customer enquiries regarding availability of stock as well as personal opinions regarding their actions. For example there were many comments regarding items which were not in stock and a member of staff is always on hand to respond which demonstrates the customer-brand relationship ASOS strive to have with their customers.
3.5
Questionnaire
3.51 Online Survey The online survey received a 66% response rate out of the 90 people it was sent to. The average age of respondents was 20 years old, 83% being female and 17% male (see Appendix 13.1 for full results). 75% of respondents had not heard about/come across ASOS Africa before. Exploring this further, individuals were asked whether they had ever bought anything from the ASOS Africa range. 95% had never bought anything from the collection the primary reason being that they were unaware that it existed followed by not yet seeing the collection (See Figure 3.311). Coinciding with this, only 39% of respondents were aware of sustainable fashion initiatives ASOS has which further suggests that this needs to be given more exposure.
Questionnaire Results
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Figure 3.511:
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3.52 Stage of Innovation Using the Diffusions of Innovation Model (Solomon and Rabolt, 2004) to identify a link between the consumer shopping habits and the potential of buying into sustainable fashion, results revealed that the average 20 something year old ASOS customer is an ‘Early Adopters’ (See Figure 3.321). This means they may be more receptive to buy into new products but may need a little persuading to do so. This can be done by increasing the exposure of ASOS’s sustainable fashion ranges which should encourage consumer engagement. In addition to this feedback from the survey also revealed that global campaigns highlighting sustainability had no effect on their decision on whether to buy into a sustainable product or not which suggests that by providing useful resources to inform them of how their purchases can be helping others may create an emotional attachment increasing the likelihood of loyalty to that particular brand.
Figure 3.521: ASOS’s Customer Innovation Position ASOS’s Customer Stage of Innovation
Source: Rabolt, N. and Solomon, M. (2004)
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3.53 Overall Findings Overall, findings from the survey revealed that the majority of people were not aware of ASOS Africa’s existents which suggest that it doesn’t have as much exposure as the other ranges. Those who had come across the collection were either deterred by the aesthetic or price of the collection. The majority of respondents did not feel so strongly about issues concerning sustainability to the extent by which they would go out of their way to buy/act sustainably. However, after the recent devastation in Bangladesh almost half the respondents said they would now think twice before purchasing products which suggests that in the height of these tragedies, with increased media exposure, it is the best time to further tap into the ethical/ sustainable market.
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Label Analysis
3.6
3.61: Label Analysis Overview A label analysis was carried out, comparing competitor’s swing tickets and care labels from their sustainable ranges. This was done to analyse the way they’re sustainable credentials are communicated to the customer. This contributes to providing a labelling proposal that will successfully inform the customer whilst retaining their interest.
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Figure 3.62: Label Analysis
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• Commonality- all tags include where it was made and the materials used • Urban Outfitters is eye catching as they use a mix of colour and the cardboard that the One and Only range is printed on gives off authenticity • Urban Outfitters Renewable includes an explanation of what terms mean which is a good way of informing customers. Bullet points were used making it easy to read. • None are printed on recycled cardboard
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Observational Findings
3.7
3.71 Hermes Exhibition Hermes Festival des Metiers- A Rendez-Vous with the Hermes Craftspeople Location: The Saatchi Gallery, London Date: 22/05/2013 Time: 3.30pm Purpose: The Hermes Exhibition at the Saatchi Gallery was visited to understand which aspect of craftsmanship gained people’s interest and thus formed engagement through observing. This in turn will aid to inform what methods should be used to engage ASOS’s customer in relation to sustainability.
3.72 Findings
There was a mix of people there young and old (possibly 17- 80 years old) from a range of backgrounds- some were English and some were French. They had a person screen-printing, making a tie, talking about where their design inspiration comes from, talking about how they print their porcelain objects, how they inject diamonds onto gold rings, how to put the watches together, how to put certain parts of the Burkin bag together- the strap and the attaching the strap to the side of the bag. People were encouraged to get up close to see what the craftspeople were doing. When the woman was inserting the diamond into the ring she asked people to look into the microscope that she uses so people can understand the persecution used.
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They explained what each tool is and what is used for alongside the techniques they’re using. People seemed truly fascinated watching the craftsman make things. They asked questions such as how long have they been doing it for and how long does it take to do as a point of engagement. They showed an interest and passion for how labour intensive it was and how clever the tools are. They were interested in the machinery and the techniques used. The stands where they were physically making things like the ties and building a watch and the bags were the busiest and the ones that just showed the products where the quietest. This shows that people were more interested in people actually making things oppose to being shown pictures of things.
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Research Summary
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Source: imges.asos.com, 2012i
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Research Summary
4
4.1 Research Summary in relation to the Aims and Objectives The following summarises the research findings and highlights how it contributes to developing a solid understanding of how the 18-29 year old fashion conscious individuals’ engage with sustainable fashion. This in turn, helps to devise a strategy for ASOS to utilise in order to engage with this market.
Objectives
1. To outline key information with regards to the green market and the fashion retail market in addition to ASOS’s competitor’s actions within the market with a focus on sustainability
There is a gap in the market for affordable, design-led sustainable fashion pieces for Womenswear and especially Menswear with an opportunity to educate this market further so they can make the right choices when shopping.
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Retailers such as H&M and American Apparel are communicating their sustainable initiatives through their website and their ranges.
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2. To critically evaluate literature relevant to the perception of sustainability and in particular sustainable fashion
The 18-29 year old ASOS customer is an ‘Early Adopter’, entailing that they are likely to adopt to Sustainable Fashion with more availability.
Source: thumbs.dreamstime.com/, 2012j
3.To classify the motivations, consumption habits and engagement behaviours that the 18-29 year old market has towards sustainable fashion Craftsmanship was a point of interest in the 18-29 year old market with an interest into how things are made and who by. This in aid helps to create an emotional connection between them and the product.
The 18-29 year old market has a limited knowledge on sustainable fashion but are willing to learn more. They are inquisitive to know what their sustainable fashion purchase contributes to.
4. To formulate recommendations for ASOS to optimise their sustainable fashion offerings and engage the 1829 year old market.
Labelling can be an education opportunity for the 18-29 market to raise their awareness. The right design can make it exciting and can catch the consumers’ eye; making them read it.
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The ASOS Africa range alongside ASOS’s other initiatives such as ASOS crochet village and Reclaimed Vintage are under promoted. There is an opportunity to utilise more of ASOS’s social media platforms to raise awareness.
This market won’t comprise style and price for sustainable fashion and they currently perceive the ethical clothing that they’ve seen as unstylish and bland.
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The Proposal
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Source: google.com/images, 2013c
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The Proposal
5.1 Why ASOS ‘Global’? The word ‘Global’ can easily be identified as being from around the world. Linked to ASOS Green Room, ASOS Global is a long-term strategy that will be an interactive platform showcasing the craftsmanship behind the sustainable products from around the world creating a community atmosphere which is common with ASOS’s websites and correlates to ASOS’s Fashion with Integrity ethos (See Appendix 4).
5.2 Traceability and Customer Engagement
Unique QR Code/Pin Code printed on the inside label of the garment and on the swing tickets. They can then scan the QR code via their smartphones to direct them straight onto the ASOS Global page via the ASOS Global App or enter the code via the ASOS Global webpage on asos. com. Linked to the individual’s ASOS Account, their ASOS Global purchase will be pin pointed out on their virtual globe (Sustainability Tracker) highlighting where their item was made. This will enable customers to learn more about the garments, learn more about the people who made the items and how they are made thus encouraging an emotive connection between themselves and the garment purchased. Customers will also have the option to ‘share’ their Sustainability Tracker on various social media platforms such as Facebook, Twitter, Pinterest, Google+ which will help create a buzz.
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Example: Oxfam Shelflife With Shelflife you can discover the stories behind some of the items you find in Oxfam shops, and share your own experiences of Oxfam donated items (Oxfam, 2013)
Source: google.com/images, 2012k
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The Pin Points will allow customers to access interactive videos including behind the scene video footage, interviews, interesting facts and figures as well as update news on the latest in the sustainable fashion market. As an incentive to encourage brand loyalty, by logging onto their account and pin pointing their purchases, customers will receive 15% off their next purchase from ASOS’s sustainable ranges such as ASOS Africa, ASOS Crochet Village and ASOS Reclaimed Vintage.
54Source: /www.jbaviation.com 2013
5.3 Swing Tags The Swing Tags have been created to be attached to ASOS sustainable fashion garments. Figure 5.31 shows a design example for ASOS Africa and ASOS Crochet Village with the suggested dimensions. The shape of the swing tags instantly draws the customers attention and encourages reading due to the unconventional shape and colours used for it. Most importantly, it reinforces the country or continent that the garment was made in. Information provided on the label summarising the range’s purpose, as done with the previous ASOS Africa swing tags, as it is effective in providing the customer with instant knowledge.
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5.32 ASOS Global and QR Labels
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The ASOS Global Swing Tags create the same effect as the other swings tags in creating individuality and uniqueness, providing extra value to the garments given to the customer. Figure 5.321 shows a mock design for the labels alongside the dimensions. This label is suggested to be attached to all ASOS
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sustainable products. A short step-to-step guide on how to interact with the label is provided at the back which makes it easy for the customer to read and follow. The QR label (to be sew-in to the garment) gives ASOS’s sustainable fashion ranges uniqueness as it isn’t currently offered on the market.
5.4 Costings
Garment Labels with QR Code
Recycled Swing Tickets
App/Web Creation/ Label Design
Pricing Printed Labels (Smart labels are printed only) 500 Printed Labels - $135 (£88.92) 1,000 Printed Labels - $185 (£121.85) 4,000 Printed Labels - $355 (£233.83) 6,000 Printed Labels - $395 (£260.18) *Free artwork and setup Prices quoted on: 29/05/2013 by qualitywovenlabels.com 60mm Circular Double Printed Swing Tags (standard) Finish: Recycled Range - made with a thick unbleached board for the natural look. £130.00 for 1000 tags (minimum order) *price includes printing with custom design Prices quoted on: 29/05/2013 by handytags.co.uk In-house
ASOS design their app, web creation and labels in house therefore the only costs that have been outsourced have been the garment labels and swing tickets. A breakdown of these cost show that this concept will not be too costly for ASOS to implement.
5.5 Timeline
Timings to take into account:
25 days to create the ASOS Global App (nomadmobileguides.com, 2013)
3 Weeks for the label production, allow 2 weeks for shipment (ukpaccessories.com, 2013) 3 Months for website creation (www.doivedesigns.co.uk, 2013)
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A list of activities and the time taken to perform them has been formulated in order to aid in launching this concept in accordance with the arrive of the ASOS Africa Spring/ Summer 2014 range (refer to Appendix 15 for the Project Gantt Chart).
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Source: google.com/images, 2012j
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6
Recommendations and Conclusion
6
Recommendations and Conclusion
6.1 Recommendations The following recommendations have been formulated based on findings from both the secondary and primary research that ASOS could implement.
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Increase Social Media Exposure One of the main issues, highlighted in the online survey and the Netnographic research, was the lack of exposure towards the ASOS Africa Range on social media platforms. Recent research has found, only two in ten internet users aged over 16 do not use at least one of the big four social networks: Facebook, Twitter, Google+ and LinkedIn. Over half of all internet users are on at least one of the networks at least once day (Social Networking-UKMintel, 2013). With a large following on Facebook and Twitter, ASOS can easily implement more posts addressing issues in the sustainable market as well as the latest products to attract consumer interest.
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Concept Names Findings from the Focus Group sessions and the Netnographic analysis revealed that a number of people disliked the generalisation of Africa to represent one country. In addition, they found it misleading that the range is called ASOS Africa when the range is only produced in Kenya. Taking this into account, ASOS can name the different ‘sub-brands’ by their actual country of origin which makes it more transparent and much more identifiable; for example, ASOS Kenya, ASOS Bangladesh.
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Magazine Spread ASOS could also allocate a double-page spread in their monthly magazine dedicated to all the latest in the sustainable fashion including updates on new product lines, interviews with workers in Kenya and around the world as well as the latest developments on ASOS Global.
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4
ASOS Bag Packaging The packaging of ASOS Africa builds added value through the bags used to package the product. However, they are mainly enveloped-shaped clutch and hard to reuse. Therefore, by adding straps to the bags or by adding zips or button to the smaller bags to make it a make-up bag is suggested to make it wearable. This in turn will also create awareness of ASOS Africa through word-of-mouth. A seasonal bag design could be created be created to produce a buzz and engage the customer, strengthening the value when buying into the range (refer to Figure 6.1 for examples on of this).
Marc Jacobs for Diet Coke Source: dn.stylefrizz.com (2013)
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Figure 6.1: Examples of creating excitement through packaging Versace for H&M (2011), the carrier bag became a collectors’ item and part of the reason why people bought into the range. Diet Coke promotional bottles create a collectors’ item impression on consumers and an excitement is created when a new one is released.
Versace for H&M Bag Source: ebay.co.uk (2013)
6.2 Conclusion To conclude, the key findings from both the secondary and primary research have led to a proposal and further recommendations that meet the aims and objectives outlined at the beginning of the report. By implementing the ASOS Global concept as a medium to long term strategy, ASOS can showcase their sustainable fashion offering in a way that educates and engages the 18-29 year old fashion conscious customer in an alternative way compared to the current actions of ASOS’s competitors such as H&M and American Apparel.
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