Fashion Management and Communication

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FENDI & J.W.ANDERSON IN LUXURY MARKET FASHION MANAGEMENT& COMMUNICATION CAI XIAO MENG Picture retrieved from: https://static.www.fendi.com/mediaObject/fendi/woman/Fall-Winter-2016-17-page/womenADV-FW16-17/5/original/5.jpg

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Content

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1.Introduction.P4-5 2.Description of company analysis. P6-7 2.1 Locationand scope 2.2 Product ranges

3.Market analyses and comparison of two brand. P8-10 3.1 Key consumer profile 3.2 S.W.O.T analysis.

4.Company external environment. P12-15 4.1 PEST mode 4.2 competitor analysis

5.The competitive advantages.P16-17

5.1 The competitive advantage of Fendi 5.1 The competitive advantage of J.W.Anderson

6.The forecast for two brands.P18-19 7.Recommendation.P20-21 8.Reference.P22-23

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1.Intorduction

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The Global Fashion Marketplace provides the opportunity for emerging designers to exhibit on an international stage by offering new designers brands opportunities for economic growth through entering into new global markets. However, many new and emerging brands need to develop robust business strategies in order for them to confidently move forward to the next level. The aim of this essay is to compare an emerging international fashion brand J.W ANDERSON with an established international fashion brand FENDI . and analysis what can J.W.Anderson can learn from FENDI to become a well known fashion luxury brand in such a market which full of opportunity and challenge together with how can Fendi learn from J.W.Anderson. the result of questionnaire and a serious of secondary recourse have been applied to support the essay. This essay has been divided in several parts. The first part is description and brief analysis of two companies, And then, it will illustrates market analyses Thirdly, cwompany external environment of Fend and J.W.Anderson will be given . The following part of report will introduce the brands’ competitive advantages and short term and long term forecast of the two brands. The last part is recommendation and bibliography.

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2.Description of company analysis

The house of Fendi was launched in 1925 by Adele and Edoardo Fendi as a fur and leather shop in Rome. Since 1946, the five sisters of second generation (Paola, Anna, Franca, Carla & Alda) started entering the company and bought new wave of enthusiasm. Karl Lagerfeld joined Fendi in 1965 and became the Creative Director for Fur and also for Women Ready-to-Wear (launched in 1977). Silvia Venturini Fendi, daughter of Anna, joined in 1994 and is the Creative Director for Accessories and Men's lines. Since 2001, Fendi became a multinational luxury fashion brand and member of LVMH group. In 2014, Fendi started making plans to use drones to show its catwalk fashions. Fendi invested more than 2 million euros (approximately $2.7 million) to help restore the Trevi Fountain in Rome designed by Nicola Salvi in 18th century. The restoration works started June 2014. Compared with Fendi , J.W.Anderson is quite different. Without long history and many designers, it was established in 2008 by northern Irish designer Jonathan Anderson. (“About us,” 2016). Different from other luxury brands have designer with famous background ,J.W.Anderson seems, much more simple. Jonathan Anderson is the main designer of his brand. Even the background and the history are quite different,J.W.Anderson does have something same with Fendi.21 century, the luxury leader group become Fendi’s major shareholder and explore the future growth of company (p, n.d.).Also , LVMH has taken a minority stake in J.W. Anderson and hired Jonathan Anderson, the label's designer, to take the creative helm at Loewe which is one of branch brands of LVMH (Fashion,2013).

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2.1 Location and scope The video material of FENDI’s official website shows there are around 200 directly owner stores all over the world, covering Europe, Asia, South America, North America and Oceania. And recently opened online sales in Japan and American after Europe. While J.W.Anderson only has opened 4 stand in stores and all of them are in located in London (“Store location,” 2016). Despite not having his own stand-in store, JW Anderson has over 60 stockists worldwide (“BRAND ANALYSIS: JW ANDERSON,” 2014). Having a stand-in store requires significant funding so that young designers of fashion luxury brand prefer profit from online selling.While,The departmental store offers many advantages to the customer as well as to its owners (Akrani, 2011) .A departmental store appoints experts for buying, advertising, accounting, etc. Similarly, skilled and qualified salesmen and other members of staff are appointed, which results in a higher efficiency(Akrani, 2011).Thus develop more branches in more widen area would help J.W.Anderson build up fame as well as reputation, which is also a critical problem faced by new developing luxury brand.

2.2 Product ranges As it shown on the official website, The main products of Fendi are he Creative Director for Fur and also for Bags , men’s wear ,women’s wear, kids’ wear shoes, accessories( including small leather goods, bag belts, key chains and so on) , belts, sunglasses, scarfs, and the price ranges from about 3000 pound to 385 pound (Fendi, 2017). Fendi’s products style have experienced a significant change after several years change, from the different product which all printed logo to the goods made up of different color and material and various of categories. This successful change made Fendi not only a luxury brand but also a label of fashion. The design of shoulder strap can be said as a revolution, it changes the people’s attitude towards the way to hold a bag. In terms of J.W.Anderson, the main products are men’s wear ,women’s wear, shoes and accessories, but the price is slightly lower ,from about 3000 pound to 120 pound. The different between J.W.Anderson and Fendi may caused by two reasons: First is J.W.Anderson is a developing luxury brand and it is not mature enough to establish more product ranges as Fendi. Secondly, the price depends on different material of products. The main material of Fendi are leather and fur, while J.W.Anderson would like to use cotton and wool. J.W.Anderson does have the strength to become a well known brand not only due to its unique design ,it also has the funds invested by LVMH, the a pressing matter of the moment for J.W.Anderson need to do is to devote itself to the advertisement to increase reputation and fame.

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3.Market analyses

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3.1 Key consumer profile J.W.Anderson Those who have a creative and contemporary individual lifestyle as well as high income are the target consumers of J.W.ANDERSON. Their income has to be on the range to keep up with the price between GBP 120 and 3000. most university and high school students are not the key consumer of the brand’s ready-towear line because of its high price. However, with a much lower price range, the high-street Topshop line of the brands is aimed at the consumer group who wants to follow that exclusive high-end lifestyle. The Anderson describes the type of person he imagines would wear his garments when interviewed by Marie Claire UK: “I don’t really see one particular type of person wearing my clothes, and would rather see lots of different types of women wearing J.W. Anderson. It spawns creativity when you can see the same thing worn in different ways.” (Raisbeck, 2012) Fendi In terms of Fendi, it target consumers are people between around 25~45 tears old , who are wealthy, trendy as well as fashion forward .People who aware of craftsmanship ,fashion and design are Fendi’s loyal consumer as well. comparison Compared with J.W.Anderson, Fendi trying to offer customization and exclusive items to support the wants of their target consumer, for example Fendi has lunched Childern’s wear to develop the sphere of consumption for their consumer. They are not earning money from baby but from their parents. Generally ,Fendi's fans are cover all over the world,especially in china and the united states have been Fendi’s most loyal customers,while J.W.Anderson's always focus on the Unite Kingdom market and Eourpe country.

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3.2 S.W.O.T Analysis

Strength FENDI: Powerful brand image, Successful entry into various fashion. avenues including fragrance, accessories and apparel.Strong quality control. Operational resources are shared across brands and divisions. J.W.Anderson: Worldwide online and in-store concessions. Sold minority stake held by LVMH. High profile collaborations. “Anderson's Winds of Change Blow Loewe” (Milligan,2016),Anderson takes the job of design for Lowe, would helpincrease the reputation of J.W.Anderson.

Weakness FENDI: High price. High carbon footprint in production. The Fendi collections were once focused on fur to the extent that cloth always seemed secondary. People’s attitude towards animal protection and fur product would influence the consumption of Fnedi’s product. J.W.ANDERON: No stand-alone store, Predominantly UK based, Small public relation representation

Opportunity

S W O T

FENDI:Market expansion in regions: Miami and low cost materials would provid it more costomers and profile. J.W.Anderson: More collaborations. LVMH could expand the brand into more markets, Establishing its own flagship store, Moreadvertising campaigns.

Threaten FENDI: Low cost imitators. Press deflation. Increasing price of raw raw materials. Loss of talent and trained professionals. Economical and political conditions. Other luxury competitors. J.W.Anderson: Competition from young designers, Fast-paced industry, Financial implications

Overall,Fendi and J.W.Anderson are two different luxury brand in different stage,so the SWOT environment aredifferent to some extent,so the work fotr next step are different for them but there still have someting that J.W.Anderson can learn from Fendi not only for improvement but also can avoid a serious problems. As an emerging luxury brand ,J.W.Anderson should not only improve its products to satisfy more consumer but also should pay more attention on building brand reputition and develope market. In terms of Fendi,it should keep up with the morden fashion trend and cultivate more professional desiginer to make it status more stable.

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4.COMPANY EXTERNAL ENVIRONMENT

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4.1 PEST model

Political factors:

Economic factors:

The price of FENDI is much more expensive in some countries like China because of the high tax of luxury, lead to the low rate of purchasing in other area beside Eourpen Country. “The Chinese are hungry for information, hungry for things from outside the country,” Turnning to J.W.Anderson,many country makes policy that helps prop up their local brand ,they will limit the number of the luxury brand.This phenomenon will influence the developement of the J.W in other countries.

UK out of EU, lead to the decline of the exchange rate,the product of Fendi in UK is cheaper relatively in the world market so that this will improve the market of it. In terms of J.W.Anderson,A recent investment by LVMH Moët Hennessy further cements J.W.Anderson‘s status as a rising, new-generation brand. Following the investment Jonathan Anderson was also appointed Creative Director of Loewe, and works on both brands in tandem.

Social Factors:

Technological Factors:

Fendi holds fashion show on Great Wall of China,October 19,2007,China will become, within 25 years from now, the greatest economic power in the world,” predicts LVMH kingpin Bernard Arnault. The show, he says, was “a big symbol for China. It’s where things are happening today.” A steady growth in demand gave occasion to J.W.Anderson first stand-alone on-schedule women’s show at London Fashion Week. International editors and buyers have also taken note, gaining the label a prominent reputation in the US, Europe and Asian markets.

Due to the technology addiction and potential consumers , Fendi decides to launch a mobile game app called <rescue Karlito > As the name shows , players intended to rescue karlito (karl lagerfeld ) who is the symbol of the current creative director of Fendi since 1965 . During this mobile game app from born to launch . fendi will do promotion by different platforms , such as their own website , vogue , teen voge, facebook , twitter , instagram , snapshot , and also sending invitation email to the loyalty customer

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4.2The competitor analysis The main competitors of J.W.ANDERSON are Christopher Kane and 1205. “ London-based designer Christopher Kane started his label in 2006. From initially focusing on women’s wear, Kane stretched the brand into menswear in 2010. Kane is a desirable competitor of JW Anderson because both of them have been recognized as fresh, up-andcoming UK genius designer luxury brand with a similar career background. Kane was also head of design for Versus working closely with Donatella Versace on eight women’s wear collections before Anderson took over in 2012. Also, both of them have lately managed strategically strike-significant business deals, by selling their minority stock to major French luxury companies. LVMH has taken a minority stake in J.W. Anderson and Christopher Kane struck a deal with Kering (kering, 2012). Moreover, Christopher Kane seems to have a better sales agent as his brand has much international stockists , including Germany, Saudi Arabia and Canada where J.W.Anderson isn’t stocked. “Therefore, the designer perhaps should find another sales agency other than Rainbow wave to represent him” (“BRAND ANALYSIS: JW ANDERSON,” 2014). The reason why 1205 poses a threat to JW Anderson it is that the attitude of 1205 is pretty similar to Anderson’s. Both of them feature women’s wear and men’s wear collections with a strong highlighting on the idea of a unisex clothing and exploring the fascinating balance between maleness and femaleness. When it comes to comparing the two designers’ background and technical skills, Paula Gerbase, the designer behind 1205 seems has more advantage to work for a brand. She is the BA graduate of Central Saint Martins and British Fashion Award candidate (Kinsella, 2014). As a new designer who only have few years’ background of fashion design, Anderson needs to be aware of his strength competitor. Most of 1205’s International stockists are set in Asian countries such as China, South Korea and Japan. Revealing that 1205 seems to be more popular in the Asian market than JW Anderson. How to develop more market of Asia is something J.W.Anderson should consider working on. (“BRAND ANALYSIS: JW ANDERSON”, 2014) Other competitors include: Simone Rocha, James Long, Palmer// Harding, J. JS Lee, Tim Soar, Lou Dalton, Jonathan Saunders, Marios Schwab.

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The main competitors of FENDI are Louis Vuitton, PRADA Compared with Louis Vuitton, Fendi seems less powerful. First of all, in most consumers' mind, Louis Vuitton is a leading luxury brand, noted for quality, timelessness and their new product line.Though Fendi has a long history and owns famous designer it is only a concept of fashion luxury brand in most people’s mind. Secondly, when comparing the main products of Fendi and LV, both of them are focus on leather bags, clothing, accessories and shoes while the bags of LV seems have a better brand story Which should be paid attention by Fendi. Turning to consumer profile,Louis Vuitton’s target consumers is quite similar with Fendi they are the people who are value fine craftsmanship and have a high income. But the consumer service of LV is much more powerful: consumer service requests are seriously taken into account, if a product is not available in a specific region it would be order immediately and receives as soon as possible. When it comes to PRADA, unique features and fame derive from its particular industry process management which allows the group to offer its consumers products of unique quality, creativity and exclusivity. The luxury group produces men's and women's leather goods as well as accessories. It seems that the similar product range takes over lots of market of Fendi. Mover, Prada focus on Corporate responsibility and environmental awareness (Lacombe, 2013), that may be a threaten of Fendi's fur product. Other competitors include Gucci, Burberry, Hermès, and Armani.

Personally, when compared with the competitors, the main competive parterns of emerging luxury brands' are come from the talent of designer as well as the style of the collection .However, the mature luxury brands are different,they are trending to compare the costomer service and the brands' reputation.

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5.The competitive advantages

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5.1 The competitive advantage of Fendi

Two of Fendi’s distribution plans are renew heritage and publish mobile game app . “When it comes to digital experiences some luxury e-tail sites have found the magic formula for their brand, others are floundering” (Insider, 2015). Fendi is the sole supporter of the project to restore the Trevi Fountain and the Four Fountains in Rome. The “Fendi for Fountains” initiative allows the brand to reinforce its Roman heritage by giving back to the city that has supplied inspiration to the label over the years. Due to the foot traffic at the Trevi Fountain, the brand will likely see a rise in brand awareness from tourists. "The fact that there's going to be a plaque at the Trevi Fountain, it's not going to be so much the fact that Fendi is looked at as a supporter of the arts, but it has much more to do with the fact that American tourists are going to come around and look at all these tourist sites," he said. "So Fendi has a lot of exposure outside of the market where theyalready are just in terms of media. "Fendi's choice of the fountains in Rome is a particular good idea for several reasons," said Al Ries,founder and chairman of Ries & Ries, a Roswell, GA-based marketing strategy consultancy. "Fendi is alliterative with fountains, so it is a remarkable idea. Furthermore, the fountains in Rome, especially the Trevi fountain, are world famous, thanks in part to the motion picture and song, 'Three Coins in the Fountain.'" " 'Country of origin' is an important element of every brand. Fendi, Prada, Armani and other brands benefit greatly by being associated with Italy, a country most people perceive to be the best makers of fashion products."So the Fendi fountains project helps reinforce the idea that Fendi is an Italian brand and one of the best fashion brands in the world." Due to the technology addiction and potential consumers, Fendi decides to launch a mobile game app called <rescue Karlito >. As the name shows, players intended to rescue karlito (karl lagerfeld ) who is the symbol of the current creative director of Fendi since 1965 . During this mobile game app from born to launch. fendi will do promotion by different platforms, such as their own website, vogue , teen voge, facebook , twitter , instagram, snapshot , and also sending invitation email to the loyalty customer. One of Fendi’s competitors Prada just don’t measure up digitally but sector peers Fendi is getting it right,according to new report research from fashion and luxury brands specialist ContactLab (Insider, 2015).Contact Lab said their “first mover advantage” could erode with newcomers catching up, as Fendi has done despite coming late to the e-tail party.

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5.1 The competitive advantage of J.W.Anderson In terms of J.W.Anderson,the update speed of production and the invest by LVMH provide a widen grow space of it. Instead of take advantage of TV and other digitial advertisments to improve fame ,J.W.Anderson puts more energy oninitiate,update product and lanch fashin shows, Chris Newton point out that “When you launch a new product successfully and it sells well, it can cover the development and launch costs -- generating a profit for your company. If the product is evergreen -- something that people will need or use for a long time -- the revenue stream that begins with the product launch can be consistent for many years” Thus, to some extent, provide new collection timely might help this emerging brands build reputation and catch consumer. On the other hand, LVMH is a mature company with many famous success luxury brands .with the fund and futher strategy of LVMH,J.W.Anderson will become more confident and impeccable. “The greatest advantage to adding large-cap stocks to an investment portfolio is the stability they can provide and another advantage to investing in large-cap companies is the potential for steady dividend payments” (“What are common advantages of investing in large cap stocks”, 2015).

To sum up,the competitive advantage of an mature luxury brand is launching creatitve strategies and keep up with the date,wile for emerging brands,like J.W.Anderson,is to build reputation and find a stability growing environment to let it develop more steady .

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6.The forecast for two brands

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The investment backed by the luxury conglomerate LVMH is going to provide more opportunities for the JW Anderson to develop further within the developing market. greater funding would enable the brand to establish more stand-alone store, rather than selling its goods through online/in-store concessions. J.W.Anderson should spreading the brand in more cities within the Asian, Central European and US markets ,this could open the door for the brand to grow further to become well-known. “For future marketing strategy, additional funding would pave the way for the brand to launch more advertising campaigns for its ready to wear line since this seems to be lacking. Indeed, JW Anderson seems to be on the road toward progressively growing into a household name, despite the competition from other young designers along the way.” (“BRAND ANALYSIS: JW ANDERSON,” 2014) As a mature luxury brand, Fendi’s plan for its further development seems more conservative. In the second season of Tim's Take, BoF editor-at-large Tim Blanks talks to fashion’s top designers to decode the creative thinking behind their latest collections. Blanks speaks to Karl Lagerfeld about his Spring/Summer 2017 show which captured the original spirit of Fendi for today's modern world (Fashion,2016). Moreover, Fendi will enhance it energy, driven by a hold, high-level offering and focus on it unique craftsmanship. Modernism will take center stage once again in 2016 and 2017 with a number of new product be promoted, and the Pome-based Fashion House will continue its extension. The promotion of mobile app and opening a new and unique pop-up stores will bring more brand awareness and awe to continue the growth and increasing revenue of brands.

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7.Recommendation

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What JW. Anderson could learn from Fendi? "The best way for a new brand to succeed is to act like an old brand "(Okonkwo, 2007) Improving the product service, develop the ways to make advertisement and improve the reputation of the brand in more area to catch the opportunity in more market like China and American are three factors that J.W.Anderson should focus on to improve itself .Moreover, improving the service, trying to provide consumer different shopping experience and develop a heritage of craftsmanship as well as take advantange of famous people's demonstration effect would also help J.W to going further. According to a investigation in Chinese about how much people know about J.W.Anderson (https:// wordpress.com/post/cxmweb.wordpress.com/311) only 5 of 35 people know few about J.W.Anderson .The job of them are students, buyer,brand seller and they know about the J.W.Anderson from magazines, internet and their friends. They thought it is hard to find the product of J.W.Anderson in China and seldom to see the advertisement about it. LVMH kingpin Bernard Arnault predicts that “China will become, within 25 years from now, the greatest economic power in the world” (Socha & Magazine, 2007). the 2008 Great wall fashion show helped Fendi developed Chinese market and even Asian market, Also, the Chinese market will provides J.W. Anderson more opportunity.Contact Lab CEO Massimo Fubini said: “Consumers pay a lot of money for products from these luxury brands and they expect the whole experience to have that luxury feeling. Brands must go that bit further at every single stage of the consumer journey, but very few are fulfilling their full potential.” He said“many brands are missing ‘the little touches which make all the difference’,”especially on packaging. Add emotional appeal into brand promote and develop sub-brand to support main brand’s reputation. such as brand story and programs for public good, FENDI 's fund for heratage is build a good fame for the brand.

What can FENDI learn from JW.ANDERSON and What should it learn from other brands? Develop more online selling channels instead of only use official website and take advantages of e-tail trend. Trying to apply more material in new collection and provide consumers more fresh feeling on product are the strategies Fendi could learn from emerging brand. Otherwise,there are some tactics Fendi could take advantage of to improve .For example promte accessible product and extend a luxury brand into several sulcate . goes without diluting the brand equity. Lunch a serous of low-price luxury product to make itself accessible such as make-up, cosmetics and writing materials. “Luxury brands usually launch their product range with expensive goods like leather products which stamp their status of luxury. However, in order to access new consumers, both old and new brands now segment their offerings to include entry - level products like cosmetics, in addition to expensive products” (Okonkwo, 2007). An example of a brand that was launched with accessible luxury prod acts such as eyewear is American brand, Tom Ford, which also has a co- branded cosmetics range with Estee lauder. “This product launch method is known as the reverse positioning strategy. although it is an innovative way of launching a new brand and of entering new markets, it also raises the question of its suitability for the luxury goods sector” (Okonkwo, 2007). In terms of develop sub-brand, Giorgio Armani redefined the idea of taking advantage of the power in a brand name to extend its product and brand categories. “When consumers hear the name Amani an image of the designer is likely to pop into their heads, followed by certain linked attributes of the brand”(Okonkwo, 2007).

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Milligan, L. (2016, December 4). Anderson’s winds of change blow Loewe. Retrieved December 4,2016, from http://www.vogue.co.uk/article/jw-anderson-loewe-debut-show Newton, C. (2016). The advantages of a product launch. Small Business Chron. Retrieved from http://smallbusiness.chron.com/advantages-product-launch-18545.html Raisbeck, F. (2012, September 20). Exclusive interview: J.W. Anderson. Retrieved November 15,2016, from Fashion News, http://www.marieclaire.co.uk/news/fashion-news/exclusiveinterview-j-wanderson-142035#Hx3VUM5e6AQaOpzs.99 Research, T. M. (2014, October 27). Luxury goods market - global industry analysis, size, growth,trends, forecast 2024. Retrieved November 20, 2016, from http://www. transparencymarketresearch.com/luxury-goods-market.html Store location. (2016). Retrieved November 15, 2016, from http://j-w-anderson.com/storelocationShop the latest J.W.Anderson Women’s, men’s and bag collections designed by Jonathan Anderson. Experience personal service and discover exclusive styles. (2016). Retrieved November 15, 2016, from http://j-w-anderson.com Socha, M., & Magazine, W. (2007, December 1). Fendi in china. Retrieved November 20, 2016, from http://www.wmagazine.com/fashion/2007/12/fendi_china What are common advantages of investing in large cap stocks? (2015, August ). Retrieved December 13, 2016, from Investopedia, http://www.investopedia.com/ask/answers/041015/ what-are-common-advantages-investing-large-cap-stocks.asp

Pictures are retrived from: https://static.www.fendi.com/mediaObject/fendi/woman/LOOKBOOKS/LOOKBOOKDONNAFW-16-17/fendi-woman-fw16-17-look-07_s1/resolutions/res-o800x1200/fendiwoman-fw16-17-look-07_s1.jpgs1.jpg https://static.www.fendi.com/mediaObject/fendi/woman/Fall-Winter-2016-17-page/ women-ADVFW16-17/10/original/10.jpg http://fashnberry.com/edie-campbell-vanessa-moody-fendi-springsummer-2016-campaign/ https://static.www.fendi.com/mediaObject/fendi/woman/LOOKBOOKS/LOOKBOOKDONNAFW-16-17/fendi-woman-fw16-17-look-06/original/fendi-woman-fw16-17look-06.jpg https://static.www.fendi.com/mediaObject/fendi/woman/LOOKBOOKS/LOOKBOOKDONNAFW-16-17/fendi-woman-fw16-17-look-32/original/fendi-woman-fw16-17look-32.jpg

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Picture retrieved from: https://static.www.fendi.com/mediaObject/fendi/woman/Fall-Winter-2016-17-page/women-ADV-FW16-17/5/original/5.jpg

MA FASHION MANAGEMENT& COMMUNICATION CAI XIAO MENG Blog: cxmweb.wordpress.com Primary visual essay link: https://www.facebook.com/xiaomeng.cai.14/videos/225116401261733/ 26


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