Brand Marketing Audit Report Francesca Wilson 15.02.2018
CONTENTS EXECUTIVE SUMMARY
CONTENTS
BRAND HISTORY BRAND EQUITY AND VISUAL IDENTITY MARKETING MIX CONSUMER SEGMENTATION COMPETITOR ANALYSIS WITH BRAND POSITIONING MAP MICRO AND MACRO-ECONOMIC FACTOR ANALYSIS S.W.O.T ANALYSIS RECOMMENDATIONS BIBLIOGRAPHY
The house of Chloé, nearing the 70th anniversary of its launch, continues to be based in Paris with multiple branded and department boutiques globally. The free flowing, modern elegance of the brand image resonates with contemporary women world-wide, whilst the simplistic, sleek collections and runway shows depict the symbol of French luxury that Chloé resonates. The established house has always invested in young designers, many of whom have been launched into their own renowned careers providing a platform for foreign excellence and exposure (HAZINE.com, 2018).
EXECUTIVE SUMMARY
“A lot of things did not exist in France. Everything was yet to be invented, and this thrilled me. I was carried away: It was like a tornado. I designed a small collection and decided to present it myself. I went to source the buttons, the fabrics. I was sticking my neck out.” - Gaby Aghion (“Gaby Aghion – Chloé’s Fearless Leader”, 2018)
BRAND HISTORY
In the beginning Egyptian born, Gabriella Aghion, arrived in Paris with her husband in 1945. Realising their was a gap in the luxury sector for quick haute couture garments, Gaby established her first collection which coined the phrase ‘pret-a-porter’ which means ready-to-wear (Chloé Official Website, 2018). Her aim was to produce a line of luxury garments from a Parisian fashion house without the multiple tailoring and dressmaking appointments usually required. Her opinion of contemporary fashion was that it was too stiff and formal (HAZINE.com, 2018).
The first debut She established a wardrobe of relaxed silhouettes and high
quality fabrics, which emanated femininity, whilst basing its brand message on ‘wearable yet beautiful clothes’. This appealed to the modern woman of Paris. The debut of Chloé’s first collection was in 1957, for the Spring/Summer 1958 line, in the apt Café de Flore (Chloé Official Website, 2018) known for its easy going Left Bank sensibilities. A suitable fit reflecting the brand’s youthful romanticism (Vogue, 2018), a tradition which continued until the mid-60’s.
“All I’ve ever wanted was for Chloé to have a happy spirit, to make people happy.” - Gaby Aghion
60’s
Expansion of the brand in the 60’s, with the hiring of young, up and coming designers and creatives revamping the brand to appeal to young women’s aspirations (Chloé Official Website, 2018), allowed for Karl Lagerfeld to enter Chloé and gain the role of sole designer at the turn of the decade. Karl brought bohemian themes and a nomadic ethos of the 70’s to the brand with flowing silk dresses and restyling of the cape. Throughout his years there he gave a feminine interpretation to masculine garments.
Karl Lagerfeld During Karl’s lead as exclusive designer at Chloé, the brand launched its first fragrance; Chloé by Chloé, capitalising on the brand’s commercial success. The perfume gained a cult following at the time thanks to its exotic ingredients and obscure bottle designed by Joe Messina, (Perfumeshrine.blogspot.co.uk, 2018) allowing for the brand to branch out to a wider market with something more affordable. Karl was able to ignite Chloé’s runway shows to be spectacular experiences, and entered successful garments into the Chloé wardrobe such as the Angkor and Ciseaux dresses (Chloé Official Website, 2018). The designer having made a name for himself by this point was able to bring many celebrity and model associates to promote the brand to a more current and high profile fashion house.
BRAND HISTORY
The
BRAND HISTORY
“Being effortless is the coolest thing in the world.” - Stella McCaRichemont Group During this period, the house of Chloé was acquired by the Swiss-based Richemont group, a luxury holding company, in 1985, permitting for financial and business security. The house of Chloé joined the ranks alongside luxury jewellers, Cartier, luxury accessories and leather goods producer Mont Blanc and several others luxury branded companies (Fashionbi.com, 2018).
Stella McCartney Karl’s final departure came in ‘97, which brought about a shake up to the brand’s image. Controversially young Stella McCartney took the helm bringing sex and punk to the hyper feminine brand (Vogue, 2018). The combination of the juxtaposed concepts resonated among young women globally (HAZINE.com, 2018). The British designer launched several new accessory lines opening up Chloé to a wider market, including bags, leather goods and a shoe range, alongside the addition of a sister line ‘See by Chloé’ aimed at the younger women in the market. She introduced vintage lingerie, low-rise pants and printed tee’s to Chloé, stamping her own attitude on the brand.
The paddington bag
Clare Waight Keller After Phoebe's departure, there was a riod with different heads at the helm of fore Clare Waight Keller entered the the company and took over in 2011
unsettled pethe house beframework of (Vogue, 2018).
During her time as creative director, Clare revolutionised the digital brand image, although the marketing is usually simplistic for the house, the brand wanted to ensure high exposure online. It was one of the first brands to stream their catwalks live, as well as being the first luxury brand to have a mobile optimised website (HAZINE.com, 2018), making the brand more accessible globally and to the younger market (Chloé Official Website, 2018).
Present day. . . Natacha Ramsay-Levi being the new creative director to take the lead of Chloé after Clare’s departure last year, although Natacha is new to the role in her short time in the maison she has pushed the ‘Chloé girl’ brand image to be at the forefront of the house’s marketing strategy - injecting femininity and reaffirming the brand’s identity. Chloé’s enduring appeal comes from the fact it constantly reinvents itself for the young market.
BRAND HISTORY
Phoebe Philo then took over as the successor to Stella’s role after her departure to set up her own namesake house in 2001 (Vogue, 2018). Since the production of the accessories lines in the house during Stella’s stint as creative director, came the launch of the Paddington bag. The very first ‘it’ bag (Chloé Official Website, 2018). All of the 8,000 bags put into production for sale in spring 2005 sold out before reaching the stores.
BRAND EQUITY
Brand equity refers to the value of a brands assets and liabilities linked to the brand name and symbols, which can be measured using David Aaker’s brand equity model. The Aaker model can be divided up into four main perspectives; brand as a product, brand as a symbol, brand as a person and brand as an organisation (Bhasin, 2018). Applying Chloé’s brand information into the Aaker model depicts the value of the company, reflecting indicators or consequences of the current pursued branding policy and gives insight into the relationship between equity components, whilst predicting future brand performance (Bhasin, 2018).
As a person . . . Chloé as a brand is girly, flirty and hyper feminine. The house embodies relaxed, casual elegance with a bohemian chic, and embraces vintage themes with contemporary influences.
Chloé doesn’t rely on the use of logos for brand recognition, through the age of being the individual, Chloe focuses on the Chloe girl to be representative for the brand. Chloé is recognisable through its pastel, peachy pinks, flowing silhouettes and femininity.
As a symbol . . .
As an organisation . . . Chloé was acquired by the Richemont group in 1985. The Richemont group is a holding company for luxury products only, “Our Maison encompass several of the most prestigious names in the luxury industry” (Richemont.com, 2018)
The current collections at Chloé can be divided in 5 major categories: Ready-to-wear, Accessories, Fragrance, See by Chloe, Children’s wear.
As a product . . .
The house of Chloé originating in Paris, France, by Gabriella Aghion in 1952. The original product offer being luxury ready-to-wear garments, the first of its kind (Chloé Official Website, 2018). Through development and changing of creative leadership the brand has extended to accessories and fragrance, along with the launch of sister line 'See by Chloé' capitalising on the commercial success of the company and expanding the market to more affordable price points. The brand image has kept the original fluid elegance of the garments, keeping relaxed silhouettes and high femininity that the house has embodied since its launch. With modernity, bohemian spirit and abstract florals, being injected from designers throughout their time at the house to keep the label up to date, which now resonate with the brands identity. The Chloé girl and typical clientele are female, as there isn't a menswear collection within the maison. Upper class due to the price point averaging between £250 to £3,000, naturally a lot more than some are willing to spend on clothing, or can afford to. The women are usually aged between 18-45; the lower end of the bracket would be a smaller market due to the higher than average price point, however the introduction of the 'See by Chloé' collection has opened up the market to younger appeal. Aimed at women with heavy working hours, following the original brand message of women needing quick, off-the-peg fashion.
Chloe's signature would be the womenswear collections - mainly followed through streaming catwalk shows or advertising in magazines or on social media. However, Chloe branching out to accessories and fragrance, to some markets the Paddington bag could be considered its most wellknown brand item or the fragrance line would be most familiar for the lower price points.
BRAND EQUITY
Chloé as a product…
BRAND EQUITY
Chloé as an organisation… The house being part of the Swiss RicheMont group, the luxury holding company. The holding group’s sales increase by 2% between March 2016 to march 2017 - an increase from €1803mil to €1841mil - driven from the positive performance at Mont Blanc, Peter Millar and at Chloé.
Chloé as a symbol… Chloé doesn’t have a set logo that brandishes the products and packaging. However Chloé is recognisable through images such as the classic bow, the brand name typography and from the pastel/natural tones used throughout products and packaging. Chloé symbolises fresh, relaxed and simplistic, which is embodied by the 'Chloé girl' which represents the brand and brand message. "The Chloé girl is our logo - in a world where the focus is shifting from institutions to individuals, it's never been more important. We prefer when she speaks on our behalf. That's why social media is so important to us now." - Geoffroy De La Bourdonnaye, CEO at Chloé (Kilcooley-O'Halloran, 2018).
Chloé as a person… Chloé is seen as a very relatable luxury brand, the idea of the Chloe girl campaign is that its gives the brand a clear identity, of what women would aspire to be. The Chloé girl is - feminine, romantic, bohemian and free spirited, whilst still remaining elegant and smart.
BRAND EQUITY
The Chloé moodboard
MARKETING MIX
The Boston Consulting Group (BCG) Matrix STARS
High market growth %
QUESTION MARKS
Accessories
'See by Chloé'
Chloé's accessories lines are consistent high sellers, known for their accessories lines thanks to the Paddington 'it' bag. However needs continual advertising in magazines and social media due to quicker production and trends within accessories than clothing, and tougher competition within the luxury accessories sector.
The 'see' by Chloé range although broadening their target market is actually still limiting due to the price point being too high for the average young women to spend. With more investment in appealing to the younger market or lowering the price bracket, the range has potential to become a star or cash cow.
Chloé fragrance range Fragrances are sold on the high street, having the broadest market due to lower pricing. Minimal spending on production costs has most advertising (especially TV adverts) and celebrity endorsements. Brings in funds to produce and invest in other sectors of the company.
Low market growth % High MARKET SHARE %
CASH COWS
Catwalk and runway shows The shows and clothing within the runways is very expensive and timely for the company; however they are essential to the business for buyers and press to keep interested in the brand and to launch new collection to keep customers interested.
DOGS LOW MARKET SHARE %
Product
The Chloé client The Chloé woman is aged 18 to 45 (although not restricted to), intellectual with a high income. She is empowered, independent and liberated, yet feminine and romantic. Doesn’t think of herself as fashionable but she is stylish - following the brands focus on eternal style over fluctuating trends. She dresses for herself, elegant but simplistic - the ease of the clothing resonating with her busy lifestyle. In the words of the founder, Gaby Aghion, “There isn’t a Chloé woman. But she is a typical Parisian woman. Paris is a city that exudes something very important.” (Engman, 2018).
Chloé compared to competitors Chloé stands ing on their rather than ture woman
out on the market for its subtlety. The notion to have minimal brandproducts and to rely on the quality of Chloé’s clothing and products stamping a logo to ensure sales, opens the market to a more mawho focuses on the garments, designs and fabrics rather than hype.
The colour palettes used originate from Gaby’s heritage of Egyptian tones and shades, giving a twist to the French tailoring and designs of the maison. The lack of celebrity features in advertising campaigns is unusual compared to competitors on the market, Chloé’s use of talented photographers and expensive models reflect the free-spirited, lively and effortless sense of sophistication that Gaby Aghion envisioned for the brand when she launched the label.
MARKETING MIX
Established by Gaby Aghion, with a strong brand image and message in her mind, the brand was launched with strong foundations which developed through the decades leading French fashion. A luxury fashion house, producing elegant ready-to-wear clothing, an accessories range, fragrance lines, sister line ‘see by Chloé’ and Children’s wear (Chloé Official Website, 2018). Chloé’s unique selling point is the relatable nature to the brand; the use of models only within their clothing advertisements, over that of celebrities, makes the clothing seem more wearable for day to day life rather than the glitz of show business. The brands relaxed bohemian feel and elegant modernity appeals directly to their target market. The brand represents the women who wears them through the garments and campaigns. Femininity and class are shown through pastel and nudes tones, as well as simple cuts and tailoring to the garments.
MARKETING MIX
The additional two product levels: The expected product - The consumer expects from Chloé high quality materials, relaxed silhouettes, feminine and bohemian styles and sharp tailoring. The expectation of buying a product from Chloé is that you will embody the ‘Chloé girl’ brand image portrayed in adverts and on social media. Potential product - Chloé is continually developing its product portfolio, the evolution of garments or accessories are continually launched in various sizes, alternate colours and varying details. As well as, new designs and collections being put into production, taking inspirations from previous collections and products but with new contemporary interpretations.
Chloé as a brand uses a premium price strategy, this strategy entails setting the price of products/services higher than that of similar on the market (Smallbusiness.chron.com, 2018). For Chloé the brand is able to maximise profits due to the customers being happy to pay more for the quality and brand message projected by the maison. In addition the house of Chloé is unable to save on costs by producing high volumes of stock; due to the luxury title of the label, mass production would weaken the brand’s prestige. For Chloé the high price point is indicative of the quality they provide, this is called price-quality signalling (Smallbusiness.chron.com, 2018). The high pricing promotes the brands aspirational image and identity, as well as supporting the brand message. Due to the brand awareness of the house and its luxury status, the price point has been able to maintain the same high value and not managed to be undercut by competition. The house of Chloé remains as a private business so that the exclusivity of their products and label holds status. The launch of Chloé in 1952, still with the same premium pricing strategy, however then, not having the brand awareness that it does now, used the unique selling point of luxury ready-to-wear to justify the higher price point. With the demand in the market growing, due to women becoming busier and having less time for fittings, the brands awareness grew and with maintained quality of fabrics, tailoring and design, the value perception of the brand allows for the pres-
MARKETING MIX
Price
MARKETING MIX
Place Chloé has 48 boutiques in Europe for the house of Chloé and sister line ‘See by Chloé’. The boutiques are reflective of the brand message and image; the interior of the boutiques use warm lighting and the same sandy/nude tones attributed to the house of Chloé, minimal displays and sparse products on display represent the simplicity and ease of the clothing. The exteriors have large windows to allow for natural light within the stores and for the shops to be displays themselves. Having visited the Chloé department boutique in Harvey Nichols, London, as well as the brand shop on New Bond Street, I found the open plan nature of the shop welcoming thanks to the light colours of the brand and sleek displays of the various collections. Each item seems precious, since every item in the shop is singularly displayed showing the expense of each item.
Chloé was quite late to launch its first e-commerce site in 2016, when the house signed a 5 year agreement for its first virtual store with Yoox Net-A-Porter (YNAP) the online fashion sales group. Operational for over a year now, the website has a blog called #chloéGIRLS, distributes globally and streams live runway and fashion shows from the site. Online distribution for the sales of accessories is additionally on third party websites expanding on brand exposure.
MARKETING MIX
Promotion
THE AIDA MODEL
The first stage
– Awareness, this is known as the cognitive stage of the formula.
The house of Chloé has built awareness for the maison through various advertising and marketing strategies. The brand being built on simplicity and appealing to women who want understated luxury, the advertisements are minimal to reflect the brand message. Through the use of individual images, models instead of celebrities and only the house name included in the text within, which mirror Chloé’s brand identity immediately. Although the house uses simple branding techniques, in order to depict the value of the brand, expense is paid to ensure the highest quality photographers, models, sets and advert placements are used to maximise the awareness to potential customers.
The second stage the formula.
– Interest, this is known as the affective stage of
This stage is more intensive than the stage prior in order to maintain the consumer’s interest to pursue the brand. Chloé introduced various technological advancements to keep up to date with their target clientele, the introduction of #CHLOÉgirls on their Instagram page and social media sites allows for celebrity endorsement to be subtle, like the brand identity, but still virally projected to their consumers, raising interest through appealing to the consumer’s aspirations. In addition the streaming of catwalks and fashion shows live on social media and the website encourages consumers to keep up to date with the brand. The branding strategy gives the idea of an exclusive insight into company; the subtle branding technique exploits the consumer’s inherent interest in the topic and thereby builds brand loyalty based on the invested time the consumer has spent.
Advertising touch points Advertisements have to be specifically developed to appeal directly to the target consumer, at this stage any ads that seem not to be ‘aimed at’ us will be filtered out and the client will lose interest in the purchase.
•
5.6 million followers
• The use of the sandy beige and brand name as the profile picture - ensuring immediate brand recognition. • Gives the consumer updates on celebrity endorsements or collaborations as little is done with their advertising campaigns. • Includes quotes on what the brand embodies and the type of client they represent. • Their bio carries the’#CHLOÉgirls’ social media campaign the brand is running - having 84,864 posts • #CHLOÉgirls allows for clients to post alongside the brand, the positive feedback and associations from client posts promotes the brand to users who don’t follow the company’s
The #CHLOÉgirls blog gives article updates on changes in the brand, relevant interviews and articles appealing to the ‘Chloé girl’ image and her aspirations. Loyal customers would find the information interesting and build the maison from a shop to an identity. For new consumers a quick skim through the blog posts makes clear the values of the brand and who the brand is appealing to. These two branding strategies are integral to the house, due to the minimalistic nature of their advertising campaigns, these two methods allow for the fashion house to appeal to the masses, the younger market and give a clearer identity to the brand image.
THE AIDA MODEL
• Simplistic bio tag line for the company stating the brands principles.
THE AIDA MODEL
The third stage
- Desire, still part of the affective stage.
This stage is about building on from the interest of the consumer and appealing to their wants and needs in order to sell the company’s products. By making the product seem irresistible plays on the consumer’s anxiety of missing out or being left out persuades the process of purchase. Through the use of talented photographers and film makers, alongside expert models, the campaigns Chloé produces may be simplistic but they show the quality that is important to the DNA of the house identity. The quality of the ads reflects the quality of the product, and high quality drives sales, because the client wants value for their mon- e y . Chloé’s premium price points have to be justifiable, which is why their adverts are integral to gaining the consumers trust in the brand and therefore gaining their loyalty. For Chloé there isn’t a psychological need to follow trends which will change rapidly to further quick sales, as their message is to have eternal style; however the urgency to buy the clothes derives from the need to have a wardrobe full of consistent quality. The urgency from the brand’s perspective is to push the persuasion of multiple sales which increases sales targets. The increased promotion of accessories alongside the clothing increases the consumer to buy multiple purchases.
The
fourth
and
final
stage
- Action, this is known as the behavioural stage of the formula.
The urgency of this stage is what encourages us to make a purchase, the brand has built a compelling argument to pursue a purchase in-store or online. Due to Chloé’s price points being high compared to high street pricing consumers less regularly reach this stage, however this isn’t seen as a negative by the brand; if stages 1-3 are completed then there is potential for sales in future consumer interactions.
Consisting of 5 points split into two categories; D-needs (deficit) Survival needs and B-needs (being) Higher needs. D-needs = Physiological needs (food, shelter, clothing) Chloé being a fashion house comes under the bracket of clothing however the price point means that the clothing isn’t brought for a survival need purpose. = Safety and security needs (physical and emotional) Chloé as a brand cannot provide safety and security needs. B-needs = Social needs (love, affection, sense of belonging) Chloé through branding and advertising allows for consumers to interact with the house through social media and ad campaigns, feeling that they are part of the #CHLOÉgirls community. The exclusivity (due to the premium pricing) gives the notion affection from the brand, the brand wants to produce the highest quality to satisfy the customer’s needs, implies a care for their consumer. =Esteem needs (respect and sense of accomplishment) Chloé is an expensive brand, if you can afford the price point that is an achievement in itself. The recognition of the brand by others when wearing it will gain the respect of peers due to the brand identity of luxury and prestige. = Self-actualisation needs (fulfilment, personal growth and development) Fulfilment of the consumer is a priority for Chloé, the understand with the money being spent on a product that it should provide a level of satisfaction, The product should fulfil a need for the consumer, for Chloé it could be fulfilling a need of high quality, of embodying the brand image or
CONSUMER SEGMENTATION
Maslow’s Hierarchy of Needs -
CONSUMER SEGMENTATION
Target demographic – young, wealthy, working women Target psychographic – Feminine, Spontaneous, Natural, Well-travelled, Educated, Values quality, Busy working schedule, Romantic, Liberal, Target social/cultural factors – Busy working lifestyle, High disposable income, Regularly purchases luxury items, Higher intelligence to appreciate the need for higher quality clothing and to be able to gain a job with a higher pay grade, Cares for the environment and where their clothing is distributed and supplied from and the methodology of the clothing production. How does the brand meet the needs of the consumer? The fashion house provides global delivery for consumers worldwide, The brand message is upstanding and respected by society, valuable to the client as wanting their clothing to reflect their morals and values, Attentive customer service expected from a premium retailer, Live streaming of catwalks and insider interviews available on the #CHLOÉgirls blog for consumers interested in the brand, Fluidity of clothing and up to date collections, Returns policy on clothing – additional warranty for faulty clothing, Highest quality products provided – little fault should occur with products, high quality fabrics, seamstresses and designers expected. How has the brands consumer changed through the decades? Through the decades the Chloé girl has undergone a few personality changes with accordance to who is at the helm of the maison. With the original Chloé girl as lead creative, Gaby Aghion, she was aiming at modern, Parisian, elegant women. With the change of hands in the 70’s to Karl Lagerfeld, who brought bohemian chic and romanticism to the Chloé wardrobe, which still resonates with the modern Chloé girl today. And it was Stella McCartney who brought punk and sex to the innocent brand, giving the Chloé girl greater individuality and independence.
Founded in 1854 by Louis Vuitton in Paris, France (Vuitton, 2018), now owned by LVMH. With the opening of his box-making and packing workshop, Vuitton became a specialist in trunks, being that of canvas over leather and revolutionised luggage locks (Vuitton, 2018). Now known for their monogramed logo and print, the company has expanded to produce ready-to-wear, leather goods, accessories, shoes, etc.
Celine Also owned by LVMH, this French fashion house was founded in 1945 by Celine Vipiana. Now run by previous Chloé creative director, Phoebe Philo (“Céline, high-end ready-to-wear, shoes - Fashion & Leather Goods - LVMH”, 2018). Celine is known for their fabric development, strong silhouettes and hand craftsmanship. Their product offering being ready-to-wear, footwear, leather goods and accessories. Following a similar tagline to that of Chloé, of practical but beautiful clothing, Celine and Chloé are close competitors providing similar French collections with a similar ethos.
Chanel One of the most well-known luxury fashion houses globally, founded in 1910 by Coco Chanel (Gabrielle Bonheur) (“GABRIELLE CHANEL - Inside CHANEL”, 2018). Opening the couture house in 1918, the house has being globally recognised for such works as the ‘little black dress’ and the No.5 perfume which still acts as a symbol for the brand. Their product offering being haute couture, ready-to-wear, perfume, beauty, accessories etc. (“CHANEL Official Website: Fashion, Fragrance, Makeup, Skincare, Watches, Fine Jewellery”, 2018)
Competitor analysis
Louis Vuitton
Competitor analysis
Kenzo Launched in 1970 by Japanese-born Kenzo Takada, representing the younger market of the Parisian fashion sector, being more edgy than Chloé, using fun, ethnic prints and textures to combine Japanese influences with Parisian culture (“Kenzo Designer Profile”, 2018). Also owned by LVMH, acquired in 1993, their product portfolio consisting of menswear, fragrances, skincare, etc. (“Kenzo Designer Profile”, 2018).
Gucci Considers itself influential, innovative and progressive (“Gucci Official Site United Kingdom”, 2018), part of the Kering group conglomerate, Founded in Florence in 1921 by Guccio Gucci. With the original product offering being leather bags for horsemen, which developed into luxury luggage with the progression of transportation.
Brand positioning map
Micro and macro-economic factor analysis
L e g a l Brexit may affect international trade laws, which could impact international sales. Ensuring workers’ rights and child labour laws are enforced - if working conditions and pay rates are not up to standard, union workers may take action, causing delays for the company and create negative publicity.
P o l i t i c a l Depending on which political party is in power, VAT may increase meaning the costs of clothing would increase and the consumer may have less disposable income. The World Trade Organisation (WTO) is the only global international organisation dealing with trade rules between nations. Any changes in regulations have to be abided by, by the countries and governments involved. Brexit negotiations impacting trade deals made for businesses to trade internationally.
Economic The impact of Brexit on the fashion industry, depending on trade deals made between countries will depend on how the company is able to distribute internationally. Any increases to the minimum working wage could result in staffing considerations, being a luxury company costs are generally higher so any increases could damage the profit margins. The client considered to be university educated may not have the amount of disposable income expected if debts have to be repaid and many young 20 to 30 year olds have new obligations to pay for, such as, rent, bills and transport, etc. As a global luxury company the economics of company expansion have to be considered, such as warehouse sizes, distribution routes, transport costs, etc. If the country was to enter a recession again, Chloé would have be aware of sales decline due to lack of disposable income, being a premium luxury retailer Chloé would be one of the first brand’s to suffer, preparation and management would be needed to help strategize how to stay afloat during the period.
In June 2017, average weekly spending online increased by 14.8% compared to June 2016. The amount spent online accounted for 14.5% of all textile, clothing and footwear stores - development of e-commerce purchasing means delivery to consumers need potential expansion and growth, continual website development to stay technologically relevant and warehouse size may need to be considered. With more people becoming ethically and environmentally aware, especially with the clientele being so clued on in the eyes of Chloé, means that supply chains, the carbon footprint and the ethics of the company may come under public scrutiny - any breaches could have a severe negative impact on the brands image. Varying average sizes between countries may affect the fit of the garments dependent on shape, height and proportions. Meaning if these Development of the Chloé website to include the proportions aren’t internationally #CHLOÉgirls blog, live streaming of catwalks and beconsistent then sales may drop. ing one of the first luxury brands to start up an e-commerce site, means that Chloé has been ahead of the game when promoting their brand online and on social media.
T e c h n i c a l
E n v i ronmental Limited information is available from the house of Chloé with regards to environmental policies, no scandals came to light that the company has committed but little is being done to improve their impact on the environment. Chloé admits to testing beauty and fragrance products on animals. With more people becoming environmentally and ethically aware improvement would encourage sales within their target market. No efforts to improve the situation may result in a negative impact on the brand image.
Looking into new developments to make online shopping quicker and easier to make the experience smoother for the consumer may promote sales. Consumers are finding more and new ways to purchase online; making Chloé available on each platform would promote sales and ensure that the house is up to date and relevant. (For example, phone apps, social media, emails, watches, tablets, etc.) Due to high volumes of leather goods being produced by Chloé, faux alternative materials may be introduced into the range, if the technology of the materials is advanced to be of high enough quality to compare to the current leather collection.
Micro and macro-economic factor analysis
S o c i a l
S.W.O.T ANALYSIS
An introduction of a menswear range would allow the house of Chloé to double its target audience size and expand their product portfolio; the femininity of the brand could be adapted for the range whilst still maintaining the other attributes that identify the brand, such as sharp tailoring, high quality materials and relaxed silhouettes. The introduction of the #CHLOÉboys campaign would target the relatives and companions of the #CHLOÉgirl - appealing to the same wants and needs, producing a ‘C for he’ range which would correlate to the female ‘see by Chloé’ range targeting the younger market and a boys children’s wear line opening up the brand to all ages in the market.
Recommendation 2 An introduction of a Chloé beauty range, expanding from the fragrance line (one of Chloé’s most successful lines). The success of luxury retailers launching beauty ranges has been documented and is evident, for example Giorgio Armani launching their range with licensee L’Oréal in 2000. “Almost every key cosmetics brand today has some association with a designer,” says John Demsey, group president of Estée Lauder (“Fashion labels move into make-up”, 2018). The loyal customer base that Chloé has already established would drive the initial sales, and promotion through the #CHLOÉgirls campaign would be the best way for the brand to build awareness and gain consumers due to the lower price points making the brand available to a wider demographic, potentially appealing to a younger demographic if the beauty range was more affordable.
RECOMMENDATIONS
Recommendation 1