News Inexmoda English - Edition 3

Titans of fashion in numbers

Brand names for lifestyles

Internet, sales channel

Epic Adventure

A profile of hipsters

News

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editorial

einventing, growing and remaining Being competitive in a global market is the greatest challenge faced by every industry around the world, and in order to succeed, they need a clearly-defined direction, innovation and the capacity to reinvent themselves.

When reviewing the track records of major brands that remain in the market, it is easy to infer that they have succeeded with large doses of hard work, but also with an immense capacity for reinvention. Nokia sold tires, but it ended up manufacturing mobile phones; Samsung sold fish, and today it is Apple's greatest rival; Nintendo used to sell decks of cards, and Peugeot made coffee grinders.

At Inexmoda, we are convinced that only by being more competitive, more efficient and more innovative, will industries in the sector not only survive, but thrive and remain over time.

We also have begun a process of solidification. We have set a higher purpose with the idea of being up to the great challenges facing the Fashion system in our country. Only with a strong institute will we be able to address the needs and have the capacity to guide the sector towards efficiency, competitiveness, and growth. “To connect knowledge in order to shake up the Fashion System� is our higher purpose, our direction, and our commitment.

In order to succeed, we have to work on improving our workers' skills and our processes, to invest in innovation, technology and knowledge. Achieving it has been quite a challenge, and we believe it is a need not just of companies in the sector, but of every industry that wants to leave its imprint, to grow and to remain over time. Don't wait anymore to spend time on what you want to make of your company in the future, invest time on thinking about your own direction. Only then will you be able to work for your tomorrow.

Carlos Eduardo Botero H. Inexmoda's CEO

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2015

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SHOWROOM

Selling on the web Consumer trends and new ways of doing business demand that brands consolidate their digital channel. The key is in following a solid marketing strategy.

GLOSSARY

SEO language: brand positioning techniques on In 2016, e-commerce sales are expected to top one billion dollars, which represents 1% of the world's GDP search engines like Google, according to Global Citizenship Report FedEx 2013. This and SEM, which ranks the website according to information reveals the opportunities that are available, its publicity investment. and indicates that organizations that fail to quickly conLook and feel: graphical user interface that solidate a virtual strategy will have an uphill struggle in includes design, color and font. reaching their goals.

Contemporary consumers are looking for brands that reach out to them in creative ways, they don't want to give up their comfort, and they want an uncomplicated buying experience. This has caused fashion firms to transform their communication channels and open new ones Regarding Internet location, José pointed out that its logic to help their customers acquire their products, something is similar to that of the offline universe. If a brand has a understood by companies like Desigual, with its 25 sales premium product, it should publicize on sites that share its philosophy, and have a certain look and feel on its channels, including its outstanding Internet site.

The Colombian textile and garment industry is mov- website that expresses it. ing towards e-commerce, and to do it properly, José For companies that don't want to Santos, founder and director of 2 go enter into the dynamics of a webOverseas, recommends studying Intersite, online retailers are a good CAMILO ÁLVAREZ net marketing dynamics and potential digital marketing option. We are ONLINE buyers, and not launching a website talking about online department without a strategy to support it.

“Costores like Dafiti or Linio, or speHis garments have been in lombian brands have a lot of potential cialized online fashion boutiques Dafiti since 2012 and his digin the digital world.

In order to take like Shopbop, Net-A-Porter and ital strategy is complementadvantage of it, they have to use adeNeiman Marcus that offer different ed with social networks like quate tools, SEO and SEM languages, brand name products.

Facebook and Instagram. and be aware of where they want to be It doesn't matter if it's through Overall, Internet sales repplaced", he explained.

He suggested your own website, or social networks, resent 10% of his revenue, a that the sites should have a clear search or an online retailer. The fact is, if the percentage that is expected structure and content of value that fatextile and garment industry is able to to increase to at least 35% cilitate the purchase, such as pictures focus its resources and strategies corwith his online shop. and videos of the garment in use, a rerectly, it could become a major player sponsive design that adapts to all elecin online sales, which according to See tronic devices, and to offer only what the FedEx study, will be one out of they have in stock. every ten sales in the US by 2017.

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entrepreneurship

Embarking on an adventure The entrepreneurial ecosystem of Colombian fashion is growing by the day, and it is being driven by projects like "Épica, Reto de Innovación (Epic, an Innovative Challenge)", an adventure designed and executed

by Inexmoda, and headed by the Mayor's Office of Medellín.

Group two: 20 initiative that receive training and a stand in Colombiamoda 2015.

Group three: 30 entrepreneurs that receive strategic training.

According to the most recent study by Global Entrepreneurship Monitor, more than 6.4 million Colombians are involved in entrepreneurial projects, and 77% of the people have a positive perception about the creation of companies.

The entrepreneurial culture has grown, and the Fashion System is not oblivious to it. New business ideas and a good number of emerging companies attest to that. According to Tomás Cipriano Mejía, Secretary of Economic Development in Medellín, this is because the country is striving to consolidate an ecosystem that supports the entrepreneur in the financial aspect and in training the human capital, opening markets, and infrastructure. Épica emerged in that context, an innovative challenge, an initiative developed by the Mayor's Office of Medellín and Inexmoda, in which leading experts in this entrepreneurial adventure support 55 Epics selected to create sustainable business models. Épica launched in May, and the participants were divided into three groups: Group one or the Epics: a group of five entrepreneurs with the most outstanding brands. They receive strategic business training and the privilege of taking part in Colombiamoda 2015.

Luz Adriana Naranjo, Inexmoda's Director of Strategic Transformation, insists that one of the fundamental principles of this project is to teach that the success of a company is not only in developing a differentiated product, but in generating a value proposition that addresses the customer's needs and is able to use innovation to connect to the sales channels, to contact and properly attract customers, and have distribution, purchase and networking processes.

For Inexmoda, helping these entrepreneurs is vitally important for the industry and for the country, because it not only drives and strengthens the Fashion System, but it supports Colombia's social and economic development. Épica Medellín's experience is solid proof of that. “Today it's Épica Medellín, but tomorrow it will be other cities, because we believe in Colombian talent, and we want to support that talent with a business perspective”, Luz Adriana concluded.

Voices of Epics “Épica has helped us to identify strengths and weaknesses in our business model, and with that we've been able to focus and grow more" Carolina Hoyos Animal rights activist Subcategory: leather goods and footwear

“Épica has shown us that the challenge facing entrepreneurs today is not only to have creative collections, but to manage profitable brands".

Felipe Cartagena Andrés Pajón Subcategory: formal, casual and evening wear for women

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See

SNEAK PREVIEW

Brand names for lifestyles Companies that find their DNA, understand their consumer and grow their portfolios in response to instances, emotions, states of being, and shared experiences.

When a brand name finds the soul of its consumer, numbers talk, sales increase, and loyal customers remain, but most importantly, there is knowledge worth capitalizing.

Lifestyle brands have understood this. Mature companies with a market niche so strong that they can expand their portfolios with new categories that render solutions to their publics in various spaces or moments in life. But how do you find the consumer's soul? The answer is to stop regarding her as a buyer and understand her as a human being in order to find out why she connects with a certain product, what her feelings are, what she is interested in, what she likes, and at what point she uses what you sell her.

Some brands have done this without even realizing it. They know their customers so well that they create collections, design commercial spaces and launch publicity campaigns, websites and other activations and spaces that their customers fall in love with and want to appropriate. Are your store decorations for sale? That could be the question from a customer who feels identified with a brand name store. And selling or auctioning them off, and eventually creating a line of items for the kitchen, home or hotel, or any other kind of goods and services for that consumer, could be the way to capitalize and respond to an identified lifestyle.

Diesel is a good example of lifestyle brand names. The company began by selling jeans and then expanded its offering initially to a line for women. Later it included sunglasses, cosmetics, shoes, leather goods, fragrances, bedding, bicycles, technology products, watches, wines and even a boutique hotel, Pelican Hotel, in South Beach, Miami. Its DNA is informal, exclusive designs for young urban adults with an easy-going stamp. It has reached 81 countries around the world.

In Colombia, Tennis has also ONDA DE MAR created a lifestyle for basic, comLifestyle brands fortable urban looks with accessoThis is one of the most are unique in ries, shoes, underwear and clothrepresentative lifestyle brand what they do. ing for men, women, children and names in Colombia. A few Customers believe mothers, and their warehouse-style years ago the company in them because stores reflect the brand name's cutwas selling bathing suits their product and ting edge personality. for women, and two years format create While there are no mathematical ago it began a transformation identity, they formulas to know when a company because it understood that are quality and is ready to become a lifestyle brand beyond bathing suits, name, it is good to consider that if it was selling a beach house authentic.

75% of purchases are emotional lifestyle that became and only 25% are rational, that is already an indication that its brand name's DNA. the brand needs to connect with the consumer's lifestyle in The Onda de Mar consumer order to reach his heart. loves the sun, the beach, Expanding the portfolio is the result of taking care of the dethe pool, even luxury, tails. To hear, see, feel, smell and even express what connects and in addition to her bathing it to the customer is the key. That's the starting point for new suit, she uses beach dresses, product categories beyond apparel: home, wine, accessories, hoaccessories and shoes for tels, perfumes, dinnerware, night clubs, or some type of service. day and night. She also has

How to prepare Along the way, it's important to know when to relinquish something, when to stop selling loose products, shirts, pants, everything very nice but very different. Brand names that create a lifestyle know that there are many wonderful things that may be different from their own essence.. They start by creating product families, they look for affinities with the consumer, they produce for him, they check their market all the time until they find out what else they do with the product, or when they use it.

a husband and children that she wants to see as welldressed as Onda de Mar dresses her. Onda de Mar understood this, and they sell a variety of products for all of theese consumers.

The concept is so consistent that its point of sales is a Cartagena-inspired beach house.

Sounds that you can wear

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Music and fashion are two intimately related manifestations; fans of different musical genres flaunt their preferences through their clothing, and the fashion industry has done well in taking advantage of that.

Sometimes you see how people dress or how they wear certain garments or accessories and you just know the type of music they listen to: long hair and black clothes for metalheads; sneakers, sweat pants and baggy tees for rappers and hip hop lovers; and although the Ramones logo is indiscriminately stamped on all kinds of T-shirts, those who normally wear it are fans of rock or punk.

Being a follower of a certain genre and having an outfit that relates to it indicates the need of people, especially young people, to identify with particular expressions and to tell the world about it, according to anthropologist Alejandro MarĂ­n.

This relationship has become stronger in recent decades, and right now it's hard to understand one phenomenon without the other. That is why artists like Mick Jagger, David Bowie and Madonna, along with designer Jean-Paul Gaultier, and now Miley Cyrus and Lady Gaga, guided by Nicola Formichetti and Brandon Maxwell, have become fashion icons.

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“In music there is a great opportunity to connect with brand name consumers and to create experiences that touch their hearts through their lifestyles, in which music is a key factor”. Luz Adriana Naranjo, Inexmoda's Director of Strategic Transformation.

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The fashion industry has taken advantage of this bond, and its positioning and dissemination strategies include working with stars from the world of entertainment. For example, fashion shows for lingerie retailer Victoria’s Secret usually include runway performances by artists like The Black Eyed Peas and Maroon 5, and Adidas had Katy Perry launch their All Adidas collection.

Major retail chains play music in their stores, and this is such an important feature that firms like PULL&BEAR and Bershka use their blogs to recommend the music of different singers and post the latest about international bands. What's more, Pull&Bear has a playlist of what's streaming in their stores on Spotify, a digital music service platform.

According to Luz Adriana Naranjo, Inexmoda's Director of Strategic Transformation, in order for the Colombian fashion industry to take advantage of this relationship, each brand name needs to know the type of music that identifies it, and find out what their consumers like to listen to. With this information, they will be able to create amazing experiences, not just in sales and promotion, but also in product planning.

Fashion films shine Sophisticated productions used by fashion firms to reach their consumers over the Internet, aiming to make the videos go viral. It's not unusual for fashion films to showcase musical performers, because this format is ideal for taking advantage of the relationship between the two manifestations. One good example is Beyoncé's video for H&M's 2013 summer collection.

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TRENDY

Hipsters: individual, original and contradictory It should come as no surprise to anyone that the hipster movement, which is urban, eclectic and has been hegemonic in recent years, is still valid and growing. In this subculture, which is both about aesthetics and lifestyle, merge two great banners of the 21st century: freedom and individualism.

If there is one concept that could reflect everything that the hipster movement has meant for the world, it would be none other than counterculture. To be hipster is to be alternative and edgy. It opposes accepted and established traditions and values. Hipsters refuse to be one more pea in a pod, they want to break away and to make a difference. They are rebels, they are irreverent and original.

The term hipster has its roots in the American landscape of the 1940s. It came out especially in highly urbanized, industrialized cities of the post-war era, where disenchantment gave rise to strong musical and artistic movements that gained followers among youth in search of expression and freedom. Jazz is a good example of this. Even though now it enjoys a certain status, back then it mean revolution and marginalization, because it was popular music associated to a Bohemian lifestyle, and blacks were segregated then.

In that context, jazzers came up with the word hip to identify followers of this musical genre,

which was also a lifestyle, so it became associated with movements that ran counterculture and opted for less popular artistic expressions, and lifestyles that were more libertarian.

Hip became the way to designate the marginal, and it was perfect for defining the youth of the new millennium, who were just as disenchanted as those of the postwar era. They began to adopt values and lifestyles contrary to what the media described as ideal. Hipster disenchantment and rebellion are not gratuitous: to follow the parameters of a society that is considered sick is just as sick, so they need to find alternatives, thus their preference for alternative music, alternative political parties, alternative aesthetics, etc.

Faced with Hollywood's massive movie industry, the so-called hipsters opt for artistic cinema that thrives in independent film festivals, and they choose Quentin Tarantino or Lars von Trier over James Cameron. As far as the pop superstars of the 2000s like Britney Spears, BeyoncÊ and N’sync,

Hipsters are between the ages of 18 and 35, they are professionals or probably study one of the so-called "liberal professions" that strongly emphasize intellectual contributions, knowledge and technique. hipsters prefer indie folk and electropop music of The Black Keys and Edward Sharpe and the Magnetic Zeros, which do not play in popular radio stations.

And concerning traditional political parties, hipsters either define themselves as apolitical, or opt for independent parties that do not answer to any of the traditional structures. They reject capitalism and

prefer second-hand clothing. They understand the grave consequences of climate change and use their bicycles to get around, and they are animal lovers. They reject major food chains and prefer small, artisan food markets. Hipsters will not read Time magazine, but they will certainly subscribe to Vice.

Considering the global culture that unifies aesthetics, constrains

freedoms, homogenizes and popularizes, hipsters proclaim freedom and individuality, the freedom and creativity that comes from and is evidenced in music, literature, the arts, the humanities, science, and the countless possibilities of technology. For that reason, hipsters tend to be associated with intellectuals and artists.

They love cutting-edge technology, but they go crazy over antiques: they have their iPads, but they love their 8-track player from the seventies. The same goes for clothing: vintage is one thing, and retro is another. Vintage might be a flowery, lace-covered dress in granny's closet, but retro is a flowery, lacy dress reinterpreted to look like granny's. They seem to reject conventional beauty norms, but they exercise to stay slim, and they strive for the fake California look so that their hair will be "naturally disarrayed".

They won't use their grandfather's old lumberjack shirt, but they'll buy new lumberjack shirts with the antique look.

Individuality, originality and freedom: that is the irresistible promise that draws thousands of young people ages 18 to 35 from around the world. If they live up to that promise, everything else will follow naturally.

But wait, in a frenzied world where change is the only constant, nothing is here to stay, and there are others who are taking over the hipsters: the muppies and the yuccies.

Muppies (a mix of millenials and yuppies) are into the good life: healthy, environmentally friendly

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hypsters

Hipsters are everywhere and showbusiness is no exception. Actors, singers and socialites have all succumbed to the lifestyle.

Tattoos, hats, outlandish prints, garments over garments, accessories and many different kinds of sunglasses are part of the look, in addition to its irreverent, self-confident attitude.

Johnny Depp, Jared Leto, Natalia Lafourcade, Michael Cera, James Franco, Florence Welch and Zooey Deschanel are some of the best known showbusiness hipsters.

food, sports and good jobs that may not necessarily be the best paid, but give them the greatest personal satisfaction.

And then there are the yuccies, fairly similar to the hipsters, but with a fundamental difference: their look, nothing to do with beards and vintage clothing. Their thing is informality and modernity. They love the Internet, they travel and they love life's good pleasures: good food, creativity and art. Solid identities are a thing of the past, now you can mutate from a hipster to a muppie, and from a muppie to a yuccie. Freedom and shifting is the brand of origin of our era.

A timeless and versatile garment Since their inception, jeans have proven that, above all, they are versatile Colors, textures, shapes: their evolution has made them timeless.

Levi Strauss and Jacob Davis discovered the power of denim. At a tailor shop in New York City in 1871, they sewed copper rivets onto overalls to make them last longer. Their customers, mostly miners, asked for these garments. The workers soon realized that the pants were strong and durable, and could adjust easily for a comfortable fit.

From overalls they turned into pants, and in 1955, James Dean wore the jeans that changed the world.

There was nothing special or out of the ordinary about his jeans, just the classic five pocket denims, but they captivated an entire generation. The garment became a symbol of rebellion and discontent with society. Young Americans fell in love with jeans, and took them out of the workplace and military installations to wear them in school and college. Jeans became the official attire of protests in the sixties and seventies. You didn't have to wash them all the time, and they looked just as good new as after some wear.

“Textile developments helped mass produce denim”, explained Martha Cálad, Director of Inexmoda's Fashion and Economic Laboratory. “Fabrics became lighter, jeans began to be produced with finishes: they are sold faded, ripped, torn and greased. This versatility is what renews them from season to season”.

Daniel Miller, anthropologist and author of the book Blue Jeans, recognizes another value in jeans: although mass-produced, these garments are still distinct. How each individual uses his or her jeans is what modifies them and makes them unique.

BACKSTAGE

A cloudy semester Contraband, cheap imports and the exchange rate have all affected company results in the early part of this year.

The textile and garment sector is experiencing difficulties. According to the National Business Association of Colombia's Joint Opinion Survey, the spinning, weaving and finishing of textile products shrank 10.1% between January and April, while sales dropped 7.4% and domestic manufacturing went down 3.4%. On the side of apparel manufacturing, production dropped 6%, but sales went up 2.% and 1.3% in the domestic market.

The fact is that the currency exchange rate generates two sides of the same story. On one side, it affects companies that depend on imported fabrics and supplies, which have seen price increases of up to 18%. But on the other, exports of garments like jeans and bathing suits manufactured in Colombia have benefited.

“There is optimism regarding the price of the dollar, and that result will certainly be seen in the second half of the year" insisted Juliana Cálad Castaño, Director of the Chamber of the Cotton, Fiber, Textile and Apparel Manufacturing Chain, but she warns that sellers will be affected by rising raw material prices.

Furthermore, she pointed to the government's interest in addressing cross-cutting problems like those related to the workforce and contraband. In that regard, she highlighted the assistance received by the sector from the National Training Service (SENA, in the Spanish original), with its dual training program, whose goal is to train operators to become more efficient.

While contraband continues to be a major concern, Juliana Cálad feels that the anti-contraband and money laundering law "is a valuable tool in combating technical contraband in the textile and garment sector".

Camilo Herrera, CEO of Raddar, insists that despite the struggles, some Colombian brands have been able to remain over time in interna-

tional markets thank to the quality of their products. He added that over the past year, the fashion sector increased the creation of added value by 3.2%, which means 1.05% of the GDP. “Something like COP 7.9 trillion in added value, and that is not the same as sales, which are higher”.

In the midst of a devaluation scenario, textile manufacturers increased their added value by 4.8%, and apparel manufacturers by 0.8% last year. But the highest performance was seen in leather goods and footwear companies, with 9.6% growth. We will have to wait and see how the second half of the year unfolds. What is clear is that the industry has to generate value so it doesn't depend on the dollar's fluctuations or market whims.

THE BEST For Camilo Herrera, the market leader in sales is Grupo Crystal (GEF, Punto Blanco, Baby Fresh and Galax), followed by Studio F, Arturo Calle, Touché, Pat Primo and Seven Seven. As far as textiles, the leaders are Lafayette, Coltejer, Protela and Fabricato.

News Inexmoda | Journal and graphics edition: Editing