Acne Studios Brand Communication Report 2021/2022

ACNE STUDIOS

Business Report 2022

Lorenzo Landini Brand Communication

Dario Golizia December 11, 2022

RECAP

OF THE YEAR 2021:

• More than 800 employees of which over 250 are based at Acne Studios headquarters in Stockholm, Sweden.

• 7 offices in Stockholm, Italy, Paris, New York and Shanghai.

• Roughly 2.37 billion SEK turnover (~224 million USD)

• 66 Acne Studios stores in 35 cities, 14 countries on 4 continents.

• E-commerce in 65 countries and through marketplaces in 190 countries.

• Wholesale distribution via around 750 stores and online shops in 48 countries.

• 60 suppliers with more than 200 production locations in 11 countries.

SHAREHOLDER PERCENTAGE: Beijing investment fund IDG Capital and Hong Kongbased apparel conglomerate I.T Group hold 41%. 30.1% being held by IDG and the remaining 10.9% by I.T. Acne’s executive chairman Mikael Schiller and creative director Jonny Johansson remain the company’s majority shareholders to stay in control of essential brand decisions.

PAST

CORPORATE SOCIAL RESPONSIBILITY

SOCIAL ACTIVITY HIGHLIGHTS:

• Independently verified as a ‘Leader’ on social responsibility by Fair Wear Foundation (FWF), now for seven years in a row.

• Developed a framework and calculated our full climate Scope 1, 2 & 3 impact including emissions of production of our products.

• Over 90% of the cotton used for our jersey/fleece and denim is now organically grown

• Adopted a long term target to reach 100% documented traceability along the supply chain down to raw material suppliers by 2030.

• Piloted and prepared for company-wide launch of an employee engagement pulse check tool.

• Launched comprehensive work on culture and values, engaging all employees.

• Outsource all factory operations

PRODUCTION IN COUNTRIES WHERE FAIRWEAR IS ACTIVE: Bulgaria, China, Romania, Tunisia, Turkey

PRODUCTION IN OTHER COUNTRIES: Albania, France, Italy, Lithuania, Morocco, Portugal, Republic of Korea, United Kingdom of Great Britain, and Northern Ireland

CORPORATE REPUTATION FACTORS:

Strong corporate image, positive institutional corporate, and sustainable corporate responsibility convey power, credibility, and authoritativeness that reassures customers and conveys the brand’s message to receive customer loyalty.

CORPORATE BRAND PORFOLIO

CORPORATE=BRAND=PRODUCT

Acne Studios is a luxury fashion brand that competes in the fashion industry in the high-end segment of the market. The brand only has one business, which is focused on producing and distributing its clothing, accessories, bags, and shoes. Acne Studios has no other brands or business ventures and is solely focused on its core brand and target audience. This focus on a single business and brand allows Acne Studios to maintain a strong and consistent identity and to compete against other luxury fashion brands in the market effectively.

BRAND IDENTITY

MODEL

THE BRAND WHY

The term “acne” is most widely known for its association with the common skin condition. However, for Acne Studios, the word has a different meaning. The brand’s name is an acronym for “Ambition to Create Novel Expression”, and was chosen by the company’s founder, Johnny Johansson. Johansson “liked the idea of appropriating a difficult word and making it cool”, and this concept has been central to the brand’s identity and aesthetic. Acne Studios’ name and logo are distinctive and help set the brand apart from its competitors in the luxury fashion industry.

THE BRAND FOR WHOM

Acne Studios targets creative men and women in their 20s to early 40s. The brand’s target audience is known for its eccentric and unconventional style and is attracted to the brand’s unique and modern aesthetic. Acne Studios’ clothing and accessories are designed to appeal to this audience, and the brand’s marketing and advertising efforts are focused on reaching and engaging with this specific demographic. By targeting this niche market, Acne Studios has built a loyal and dedicated customer base and established itself as a luxury fashion industry leader.

THE BRAND AGAINST WHOM

Acne Studios has three main competitors in the luxury fashion industry: Jil Sander, The Row, and Off-White. These competing brands are similar to Acne Studios in terms of their brand identity, market positioning, and target audience. All four brands are known for their modern and unique aesthetic and target creative and fashion-forward men and women in their 20s to early 40s. As such, they compete for the same customers and market share. By closely monitoring and analyzing these competitors, Acne Studios is able to stay ahead of the competition and maintain its position as a leader in the luxury fashion industry.

THE BRAND WHEN

Acne Studios offers a wide range of clothing and accessories suitable for various occasions and uses. The brand’s collections are designed to be versatile and can be worn in all three seasons, making them suitable for a range of different activities and events. Acne Studios’ clothing is suitable for casual day wear and more formal evening occasions, and special events. The brand’s products are designed to be fashionable and suitable for both men and women. By offering a wide range of clothing and accessories for different occasions and uses, Acne Studios is able to appeal to a broad range of customers and meet the diverse needs of its target audience.

HeRITAGE

Acne Studios is a luxury fashion house founded in 1996 in Stockholm, Sweden. The company was founded by Jonny Johansson, who is still the brand’s creative director, and its name is an acronym for “Ambition to Create Novel Expressions.” Since its founding, Acne Studios has become known for its unique and modern aesthetic and commitment to high-quality and wellcrafted clothing and accessories. The brand has a global presence and has expanded into new markets and product categories over the years, building a loyal following among fashion enthusiasts and establishing itself as a leader in the fashion industry.

STYLE

Acne Studios is known for its unique taste in style, combining minimalistic, timeless, and outgoing elements to create well-fitted clothing for all seasons. Jonny Johansson, the creative director of Acne Studios, adds a touch of eccentricity and essentiality to each collection or garment, making the brand stand out in the fashion world. The brand’s aesthetic is modern and edgy, and its commitment to quality and craftsmanship is evident in every piece of clothing it produces. Acne Studios’ collections are always eagerly anticipated by fashion fans, and the brand has a dedicated and loyal following among fashion enthusiasts.

RETAIL

Acne Studios primarily uses wholesale distribution for its retail operations. The brand works with retailers and third-party partners to distribute its products to consumers. The brand’s retail presence is primarily through its storefronts in major fashion-forward cities, competing with other luxury fashion brands for customer attention. Acne Studios’ internal factors, such as its in-store communication and displays, are carefully designed to be coherent with the brand’s identity and aesthetic. This helps create a consistent and cohesive customer experience across the brand’s retail locations. Acne Studios’ retail strategy has been successful in helping the brand to establish itself as a leader in the luxury fashion industry.

COMMUNICATION

Acne Studios has a traditional advertising philosophy, relying on minimalistic and modern in-store communication tactics and billboards/posters in large cities as its primary means of reaching customers. This approach is consistent with the brand’s minimalist and contemporary aesthetic and helps to reinforce its unique identity and style. In addition to its traditional advertising methods, Acne Studios has also built a strong presence on social media platforms like Instagram. The brand uses social media to connect with its customers and showcase its latest collections, helping to build brand awareness and engagement among its target audience. By combining traditional and digital advertising methods, Acne Studios can reach a wide range of customers and effectively communicate its brand message.

EXTENDED

MODEL CRITICISM

KAPFERER//VARIOT MODEL

The model incorporates essential key points and is clear and concise. It conveys an in-depth analysis and focuses on the main ideas of a brand.

SAVIOLOS' MODEL

The model includes the four main elements to analyze a fashion brand. Unlike the Kapferer model, the Saviolos model does not show the relationship between brand competitors and the target audience.

AAKER'S MODEL

Overall the Aaker model incorporates critical aspects like the brand as an organization to brand aa a product. Key elements, such as the brand as an organization, should be further explored by adding points such as sustainability and an additional communication section. At the same time, the model should further investigate the target audience.

PROPOSAL

The Kapferer prism model is a useful tool for understanding a brand’s identity and how consumers perceive it. We can gain a more comprehensive and cohesive view of the brand’s identity by updating the model to include modern-day values and adding sections on communication and sustainability. The updated model consists of the following elements:

PHYSIQUE: Physical characteristics such as colors and logos help to define the brand’s visual identity.

RELATIONSHIP: The brand’s relationship with consumers and its products, including how the brand connects with its target audience and the value it offers to customers.

REFLECTION: How the brand sees its ideal customer and the characteristics and attributes that it associates with this ideal customer.

COMMUNICATION: The brand’s core message and how it is shared with the target audience through different channels and touchpoints.

SELF-IMAGE: How the brand helps its customers to see their ideal selves and the values and attributes that it associates with this ideal self.

CULTURE: The set of values that form the foundation of the brand and the beliefs and principles that guide its actions and decisions.

PERSONALITY: The brand’s personality and how it communicates with the world, including its tone, characteristics, and persona.

SUSTAINABILITY: The brand’s commitment to sustainability and the actions and initiatives it takes to reduce its environmental impact and support social and ethical causes.

By analyzing a brand through this updated model, we can gain a deeper understanding of its identity and how consumers perceive it. This can help us to identify opportunities for improvement and to develop strategies that align with the brand’s core values and identity.

PHYSIQUE

ACNE

BRAND IMAGE

BRAND POSITIONING

MINIMALISM

LOW FASHION HIGH FASHION

MAXIMALISM

BRAND EXTENSION

PRODUCT CATEGORIES

PURE BRAND EXTENTION

Acne Studios is a well-known brand with a strong reputation, identity, and image, which will allow it to expand successfully into other product markets. For example, the company’s reputation for quality, creativity, and innovation could help it attract new customers and compete against other brands in different product categories. Additionally, its unique brand identity and image could help it differentiate itself in new markets and create a positive association with its products. Acne Studios’ reputation and brand image will be important assets as it seeks to expand into new markets.

FRAGRANCE

Creating a perfume will likely receive positive consumer attention and help Acne Studios further establish itself as a leader in the fashion and beauty industries. The launch of a new fragrance could generate buzz and interest among consumers, and the unique and high-quality scent of the perfume could help it stand out among other fragrances on the market. This could help Acne Studios attract new customers and further solidify its reputation as a brand that offers unique and high-quality products.

DOG COLLARS

An expansion into dog accessories, such as dog collars, will allow the brand to reach an entirely new market. The dog accessory market is significant, and Acne Studios would be competing against large fashion houses like Gucci, Prada, and Louis Vuitton. However, Acne Studios’ eccentric brand image will allow them to differentiate themselves from these competitors and potentially be successful in this new market.

SUB-BRAND EXTENSION

Although Acne Studios is a well-known brand, creating a sub-brand extension like Acne Art may come with challenges, such as credibility and experience. For example, the new sub-brand may have a different level of recognition or trust among consumers than the main Acne Studios brand. Additionally, the young artists who collaborate with Acne Art may have less experience or exposure in the art world, which could affect the quality or reception of their work. These factors pose challenges for Acne Art and may need to be addressed for the sub-brand to succeed.

ACNE ART

Acne Studios Art is a non-profit sub-brand that will collaborate with young artists to curate art for Acne Studios. The artists will gain exposure, and profits will be shared with non-profit organizations. This will help Acne Studios build a positive and progressive brand identity.

BRAND Experience

ACNE STUDIOS BRAND EXPERIENCE

According to Schmitt’s strategic experiential module, Acne Studios offers in-store communication through a carefully curated selection of products, visually appealing displays and merchandising, and well-designed interior space. However, the micro-environmental factors within the store, such as lighting, do not fully support the overall customer experience. Traditional marketing tools like product placement, visual identity, and physical identity are used by the company. Still, there are gaps in sensory perception, cognitive nature, and physicality that could be addressed to enhance the customer experience. Despite these gaps, the integration between online and offline channels is consistent in terms of design, image, and target audience, and the relationship between the customer and the company, as well as between customers, is generally healthy.

AR & VR

Acne Studios has yet to fully explore the potential of augmented reality (A.R.) or virtual reality (V.R.) in its business. Still, the company is slowly incorporating new technologies into its operations. One example is its collaboration with artificial intelligence graphic design artist Robbie Barrat for the Men’s Fall/Winter 2020 collection. Johnny Johannson and Robbie Barrat used generative software designed by Barrat to upload Acne’s archived looks and create final looks based on the generated A.I. renderings. This collaboration showed the potential for using A.I. and other new technologies in the fashion industry, and Acne Studios may continue to explore such opportunities in the future.

BRAND EQUITY

SIMILAR LISTED COMPANIES

HUGO BOSS

Hugo Boss and Acne Studios are both luxury fashion houses known for their commitment to sustainability. Both brands were founded in the early 20th century, with Hugo Boss being established in 1923 and Acne Studios in 1996. Both companies have a global presence and a reputation for high-quality products and have been recognized for their efforts to reduce their environmental impact and support responsible business practices.

PRICE-TO-SALES RATIO

BURBERRY

Burberry and Acne Studios are both luxury fashion houses with global presences and a reputation for high-quality products. Both brands are known for their unique and distinct styles, with Burberry being known for its classic British aesthetic and Acne Studios for its modern and edgy designs. Both companies also offer a range of clothing, accessories, and other products and have expanded into new markets and product categories over the years. Burberry and Acne Studios have also been recognized for their sustainability efforts and commitment to responsible business practices.

PRICE-TO-SALES RATIO

NUMBER OF PRODUCTS: 25,423 25,423/95,282,697= 0.00026

1 GROWTH

SALES (LAST 3 YEARS) EUR 2021: 2,786m 2019: 2,884m -3.4 GBP 2021: 2,344m 2019: 2,720m -13.82% EUR 2021: 270m 2019: 173m +3% 2

DEFINED DEFINED 1.5

REFERENCES

Acne Studios (2020). Sustainability Report. [online] Available at: https://www.acnestudios.com/ on/demandware.static/-/Library-Sites-acne/default/dw57dd2f81/csr/Acne_Studios_Sustainability_ Report_20-21.pdf.

annualreport-2019.hugoboss.com. (2019). Sales Performance - HUGO BOSS Annual Report 2019. [online] Available at: https://annualreport-2019.hugoboss.com/management-report/report-oneconomic-position/earnings-development/sales-performance.html#:~:text=In%20fiscal%20year%20 2019%2C%20HUGO.

Burberry Annual Report 2018/2019. (2019). Burberry Annual Report 2021/2022. (2021).

burberry Corporate Website. (n.d.). Results & Reports. [online] Available at: https://www.burberryplc. com/en/investors/results-reports.category1.year2021.html [Accessed 2022].

companiesmarketcap.com. (2022). HUGO BOSS (BOSS.DE) - P/S ratio. [online] Available at: https://companiesmarketcap.com/hugo-boss/ps-ratio/ [Accessed 10 Dec. 2022].

FairWear (2021). Brand Performance Check Acne Studios. [online] Available at: https://api.fairwear. org/wp-content/uploads/2021/02/BPC-Acne-Studios-2020.pdf.

Fashion Network. (2019). Acne Studios Switches Minority Shareholders. [online] Available at: https://ww.fashionnetwork.com/news/Acne-studios-switches-minority-shareholders,1052689.html [Accessed 10 Nov. 2022].

Fashionon, A. (2020). The World of Fashion: Acne Studios. [online] Style Vanity. Available at: https://stylevanity.com/2020/05/the-world-of-fashion-acne-studios.html.

Nast, C. (2022). Acne Studios CEO on the journey to becoming a 500 million brand. [online] Vogue Business. Available at: https://www.voguebusiness.com/fashion/acne-studios-ceo-on-turningthe-scandi-brand-into-a-paris-staple#:~:text=Now%2C%20Acne%20Studios%20is%20poised [Accessed 17 Nov. 2022].

O’Connor, T. (2022). Acne’s Plan to Step Into the Spotlight. [online] The Business of Fashion. Available at: https://www.businessoffashion.com/articles/luxury/acne-is-ready-to-step-into-thespotlight/.

Papagiannis, H. (2020). Acne Studios X Robbie Barrat. [online] XR Goes Pop. Available at: https:// xrgoespop.com/home/acne-studios-x-robbie-barrat.

Ulric De Varens USA. (2021). Why Designer Perfumes? [online] Available at: https:// ulricdevarensusa.com/blogs/latest/why-designer-perfumes#:~:text=The%20top%20reasons%20 why%20designers [Accessed 3 Dec. 2022].