Innovare by diesel

INNOVARE by

Louis Yeo Contemporary Issues in Fashion FASM 400 FALL 2016 1

table of contents

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Cover Page -------------------------------------------------------------------------------------------------------------- 1 Story ------------------------------------------------------------------------------------------------------------------------ 4 Diesel’s Target Market -------------------------------------------------------------------------------------------------- 5 Innovare by Diesel ------------------------------------------------------------------------------------------------------- 9 Brand Statement/Positioning/ Market ----------------------------------------------------------------------------- 10 SWOT Analysis --------------------------------------------------------------------------------------------------------- 13 Ethical Proposal (Overview) ------------------------------------------------------------------------------------------ 14 Supporting Evidence (Successes) ------------------------------------------------------------------------------------- 15 Competition -------------------------------------------------------------------------------------------------------------- 22 Product & Price---------------------------------------------------------------------------------------------------------- 29 Who are the People? ---------------------------------------------------------------------------------------------------- 30 Ethical Proposals (Detailed) ------------------------------------------------------------------------------------------- 56 3

story The OTB group is the parent company of many fashion brands such as Diesel, Maison Margiela, Marni and Victor and Rolf. Some of these companies such as Marni and Victor and Rolf have been moving towards sustainability. For example, Victor and Rolf has come up with a collection in Fall Couture 2016 that uses left over fabrics from spring 2015, justifying the case against environmental pollution and exploitation. (Fashionisers, 2016) Diesel had collaborated with EDUN, a global fashion brand whose mission is to build long-term, sustainable growth opportunities by supporting manufacturers, community-based initiatives and partnering with African artists and artisans. In addition, the Conservation Cotton Initiative (CCI) they came up with focuses in cotton grown organically or production.

Nevertheless, this partnership was short lived and was only carried out for a 25 piece collection back in 2012.Ever since, Diesel has not done any significant in recent years.

(Diesel, EDUN collaborate on African-Made Sustainable Denim Line, 2013)

Picture from Afritorial;2013; Retrieved from http://afritorial.com/dieseledun-fashion-born-in-africa/

Diesel’s brand positioning is about provocation, quirkiness and rebelliousness. Diesel has never been afraid to push boundaries and reframing people’s mindsets through their advertisements.

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According to Diesel, “Like balloons, we are filled with hopes and dreams. But. Over time a single sentence creeps into our lives. Don’t be stupid. It’s the crusher of possibility. It’s the worlds greatest deflator. The world is full of smart people. Doing all kind of smart things… That’s smart.

Well, we’re with stupid. Stupid is the relentless pursuit of a regret free life. Smart may have the brains… but stupid has the balls. The smart might recognize things for how they are. The stupid see things for how they could be. Smart critiques.

Stupid creates. The fact is if we didnt have stupid thoughts wed have no interesting thoughts at all. Smart may have the plans… but stupid has the stories.

Smart may have the authority but stupid has one hell of a hangover. Its not smart to take risks…

Its stupid.

To be stupid is to be brave. The stupid isnt afraid to fail. The stupid know there are worse things than failure… like not even trying.

Smart had one good idea, and that idea was stupid. You can’t outsmart stupid. So don’t even try.

Remember only stupid can be truly brilliant.” (Diesel Be Stupid Campaign;n.d)

Lidovky.cz

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INNOVARE by

Innovare by Diesel is an extension line from the Diesel brand that focuses on utilizing sustainable fabrics in their denim wear. Innovare means innovate in Italian.

Diesel’s target market is the young millenials between the ages of 18-35, who are not afraid to take risks. They are stylish and almost always opinionated. Diesel’s target market is more likely to be self-absorbed, rather than to be concerned about saving the environment. It is essential that Diesel not only catch up on sustainability with companies like Victor and Rolf the OTB group manages but also to stay true to their brand values. Therefore, an extension to the brand, Diesel is ideal

Innovare by Diesel incorporates sustainability through innovation into their brand image while incorporating existing elements of quirkiness and a bit of irreverence. Innovare by Diesel will not speak of sustainability in any of brand messages.

However, Innovare by Diesel will incorporate eco-friendly fabrics into their designs. This concept is similar to those of the luxury brands. Luxury brands have been using eco-friendlier materials into their products, however these brands have not defined a prominent shift in their philosophies towards sustainability. This is because of the unsettled relationship between the luxury business and eco-fashion.

Though Innovare by Diesel is not a luxury brand, it still prides itself in quality and status it brings. The consumer is not ready to adopt the connection of sustainability and quality yet and Innovare by Diesel does not notice a need to make a shift.

(Luxury fashion brands are going green. But why are they keeping it a secret? ;2015)

Diesel Revives most Rebellious 90s Ethos; http://your-antwerp.com/2016/09/21/diesel-revives-rebellious-90s-ethos/

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Brand statement Innovare by Diesel’s mission statement is to inspire innovation and create stylish and multipurpose designs in denim wear.

Target Market Innovare’s target market is between 21-32 years of age.

They are classy and have high goals in life. They love life and have a good sense of style. They do not mind paying for high priced goods as long as they see the value in them, for example comfort.

They have high paying jobs and earn between $60K to $100K. In addition, they are interested in social and other global issues

Brand Positioning Innovare’s brand positioning is about creating a comforting, versatile and stylish denim product that is at its forefront of innovation.

An Innovare product can be worn while doing the laundry, running and even attending formal parties.

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SWOT Analysis Strengths

Innovare by Diesel focuses on using sustainable fibres in their denim products by the end of 2030. This means using fibres that have the least amount of environmental impact.

Fibres are cleaner and less toxic to the wearer Fabrics may have better qualities than conventional fabrics such as cotton

Weaknesses

It is harder to be sustainable economically as this means higher expenses which leads to higher prices.

Scalability of fabrics due to new technology Consumer’s education about the product may not adequate since it is new (Ecouturre;2009)

Opportunities

The umbrella group of Diesel and Innovare, OTB group has the resources to invest in Innovare.

Once scalability is adopted, prices will fall due to economies of scale.

3 out of 5 individuals surveyed would purchase an environmentally conscious product if there was a cost savings associated with it. And they’re also likely to view a company more favorably if they support eco-friendly initiatives.

(6 Eco-Friendly Brands that will inspire you to go Green;2016)

Threats

The market may not be ready to adopt for Innovare’s innovation World is changing so fast and with any innovation, new kind of fabric may get obsolete

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supporting evidence

Ethical Proposals (Overview) Innovare by Diesel intends to collaborate with sustainable companies such as Patagonia and Yerdle.

Patagonia has great expertise on recycling and reusing clothes such as denim.

Yerdle allows users to swap their goods with each other, offering a sustainable solution.

Recycling and reusing do not necessarily have to be economically unsustainable.

In addition, innovation is a huge part of Innovare’s brand identity.

Innovare will focus on R&D as its business core.

As long as a good product emerges, sustainability does not have to be hard.

patagonia Patagonia is a fashion brand that communicates a bias towards simplicity and utility. Their love for wild and beautiful places fuels the company to help fight and even reverse the steep decline in the overall environmental health of the planet. Every business activity from lighting stores to dyeing shirts is monitored to mitigate the damage done to the environment. For example, Patagonia uses recycled polyester and organic cotton in many of their clothes and aims to continue doing so in the future. (Patagonia;n.d) In addition, Patagonia has a Worn Wear program in place that allows consumers to bring in their worn out Patagonia garments and earn Yerdle dollars out of it (Patagonia;nd);Yerdle is a smartphone app based service for exchanging used goods, created and managed by a San Francisco-based company with the same name; with Yerdle dollars, one can ‘buy’ goods from another Yerdle user. (Patagonia;n.d) Halfmoon Outfitters;n.d; Retrieved from http://www.halfmoonoutfitters.com/patagonia-womens-clothing/8284/dept 15

Freitag Beside the ability of having to be able to exchange used clothes for Yerdle dollars, customers can earn trade-in credit valued at 50 percent of the price of the item when the used clothing is sold through the store's Common Threads Worn Wear section. Credit can be redeemed for purchases in store or online at patagonia.com. This program first started in the company’s Portland store with 884 used items sold and 612 items traded in. The Common Threads Worn Wear section is considered a success and now has expanded to Seattle, Palo Alto, Reno, Austin, Chicago (Lincoln Park), Salt Lake City and Denver. They are now accepting used Patagonia shells, fleece, down and synthetic insulation, and ski and alpine pants for trade-in, however, items must be clean and in good condition. (Patagonia Launches Common Threads Worn Wear Program in Reno; 2013) Worn Wear is part of Patagonia's Common Threads Partnership with its customers to take mutual responsibility for the full life of Patagonia products to Reduce, Repair, Reuse and Recycle. Over 60,000 customers have taken the Common Threads Pledge by which customers agree to buy only what they need, repair what breaks, reuse and share what they no longer need and recycle the rest. Patagonia pledges to build useful things that last, repair what breaks and recycle items that customers return.

"By taking the Common Threads Pledge, our customers and our company together achieve the fifth 'R' in which we Reimagine a world where we take from it only what nature can replenish," says Rick Ridgeway, Patagonia's VP of Environmental Affairs. (Patagonia Launches Common Threads Worn Wear Program in Reno; 2013)

In 1993, two graphic designers, Markus and Daniel Freitag, were looking for a functional, watertight bag to carry their work in, but couldn’t find one on the market.

The solution, they found, was humming past the front of their Zurich flat every day.

Taking inspiration from the colorful tarps closing the sides of flatbed trucks, the brothers used their apartment as a makeshift studio and created a line of messenger bags from recycled truck tarpaulins, bike inner tubes, and old car seat belts. Frietag’s values are simple: innovation, creativity and environmental awareness. (The Story of Frietag’s Bags;2011)

Freitag.ch

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Today, Freitag evolved and they developed a new line of denim jeans. They are the world’s first 100 percent compostable denim jeans. Part of Freitag’s “F-abric” line of European-grown and -produced workwear, the upcoming five-pocket design—dubbed the “E500”— is entirely cotton-free, comprising 81 percent linen and 19 percent hemp in a 19-ounce weight for men and a 17 ounce for women. Because the jeans contain neither rivets nor nylon thread, each pair is 100 percent compostable—at least once the metal buttons are unscrewed (and reused, per Freitag). (Frietag teases World with first 100% Compostable Denim Jeans; 2015) Like the rest of the F-abric range, the denim conforms to the strictest of Oeko-Tex standards, which tests textile products for harmful substances in all stages of their production. Available in dark blue and black, the jeans offer reinforced selvage and lap seams to withstand heavy wear. The moisture- and thermo-regulating, antibacterial and antisynthetic fibers also make them more comfortable to wear. (Frietag teases World with first 100% Compostable Denim Jeans; 2015). This exemplifies what innovation could do to make a world a more environmentally friendly one. Creating a compostable fabric is no longer an impossible task.

Freitag.ch

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Tesla Tesla is an American automaker and energy storage company co-founded by Martin Eberhard, Marc Tarpenning, JB Straubel, Ian Wright and Elon Musk. The company specializes in electric cars and their powetrain components and also produces battery charging equipment.

(The Making of Tesla;2014) Tesla’s mission is to accelerate the world’s transition to sustainable energy. Hence, one of the founders, Elon Musk is incredibly focused on creating a line-up of the best electric vehicles in the world. Advertising the brand is not his biggest priority. In fact, it’s not a priority at all. Elon would rather allocate every single dollar of funds into research, development, and production.

This product-centric and mission-based approach writes Tesla’s brand narrative like an epic odyssey, one with deep roots in conviction, persistence, and innovation. Tesla’s brand narrative is one that undoubtedly challenges the status quo, and is all the advertising that this Silicon Valley start-up needs to generate incredible popularity and earn true brand advocates. (Tesla Marketing Strategy; n.d)

Due to Tesla’s focus on innovation and research and development, Tesla's vehicle deliveries in the trailing 12 months are up 66% from the year-ago period -- a faster rate than any trailing12-month period in the last eight quarters. Even more, growth rates during this period are, in general, rising. This year, for instance, it plans to deliver about 79,000 vehicles -- up about 56% from prior-year vehicle deliveries. Even more ambitiously, Tesla expects to produce 500,000 vehicles in 2018 alone. (1 Chart Shows Tesla Motors, Inc’s Staggering Growth;2016) Innovare by Diesel will always be inspired by Tesla to make compelling quality and stylish fabrics for the consumers, so much so that consumers are unknowingly helping the environment consequently by purchasing.

"I do think there is a lot of potential if you have a compelling product and people are willing to pay a premium for that. I think that is what Apple has shown. You can buy a much cheaper cell phone or laptop, but Apple's product is so much better than the alternative, and people are willing to pay that premium." – Elon musk Picture taken from https://g.foolcdn.com/editorial/images/230752/tesla-vehicle-deliveries-growth-q3-2016-tsla-stock_large.png 21

Competitors DL1961 They are a New York-based company that knows and does denim.With a focus on technologically advanced fabrications, each of the styles will revolutionize how the consumer look, feel and live in the denim.

First of all, their cotton are of high quality and ethically sourced. Second, their fibres are naturally soft, anti-bacterial and is breathable. Thirdly, they add 2% of elastane which gives comfort, stretch, exceptional durability + high retention. Finally, their innovative acumen allows them to use a combination of stretch fibres to create the ultimate contouring effect with maximum recovery. The mix of fibres are constructed in an innovative way that allows their denim to have a seamless fit with 98% shape retention, 360 degree movement and instant lifting, lengthening and sculpting abilities. (DL1961;n.d) Sells a variety of denim of different fit from skinny, straight to bootcut and cropped. In addition, DL1961 sells to men, women and children. *Prices normally range from US$170 to $200 in denim wear.

http://thefashionsupernova.com/wp-content/uploads/2013/08/DL1961.FW13Campaign.3.jpg; * http://www.dl1961.com/

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Levi's frietag In addition to the bags FREITAG is now also producing biodegradable clothing, which is also produced entirely in Europe. The idea for the product line came about when the team was looking for robust, biodegradable and locally produced work wear for its staff and could not find a suitable product. The materials FREITAG uses are produced from hemp, linen or modal, a fibre created during chemical processing from cellulose of natural origin. Not only the materials but also all associated logos and care instructions, the sewing thread and parts of the buttons rot after three months on the compost. The product can thus be disposed without effects on the environment. Hemp and flax (for linen) are grown in Central Europe; the different fabrics are woven in Italy and Portugal. The amount of effort in creative and forward thinking has enabled Frietag to push itself on the forefront of innovation in the fashion world. *Prices range around USD$222

*Frietag.ch

Levi’s is a privately owned American clothing company that is based in the US and has over 160 years in business. They specialise in producing denim jeans; their products are sold in approximately 50,000 retail locations in more than 110 countries through a wide variety of retail formats such as chain retailers, department stores and even their own company-operated stores.

According to the Levi Strauss website, Levi’s core values are empathy, originality, integrity and courage. (Levi Strauss;n.d). Originality is very much intricately tied to the innovation they bring into their jeans. For example, Levi’s Eureka Innovation Lab helps to breed creativity ideas in artistic treatment and technology where the brand’s product prototypes are mad. It is not a factory but rather a place where a small team, headed up by director of global development.

Bart Sights, the Director of Global Development for Levi Strauss, brainstorms and speedily brings to life technical, conceptual and seasonal development in fits, finishes, fabric and prints.

In layman’s terms, the lab’s staff is made up of a bunch of jean geniuses who play around with denim all day, test exciting new ideas and ultiately create a sample product that can be tried out. (this is how levi’s makes its jeans; 2015)

Hypebeast.com

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Levi's The Levi’s Communter 511 slim fit trousers is one of a key innovations that stem out of this lab. It helps to repel water and keeps consumers dry. (Fast Company Goes ‘Undercover” at the Eureka Innovation Lab; 2015) In addition, sustainability is one of the key values they hold dearly. One good example is through Levi’s open source ‘Water>less” dyeing. On World Water Day this year, Levi’s declared that it was willing to share its “Water>less”dyeing techniques to the rest of the denim companies. According to Michael Kobori, the vice-president of social and environmental sustainablility of Levi’s, his aim is to rack up water savings at least 50 billion litres of water by 2020 (Levi’s Debuts Water>less Jeans That Use up to 96% less water;2010) and in order to achieve that Kobori believes in open source.

Furthermore, Levi’s has developed a way to use 100% recycled water to manufacture its jeans.

One of the company’s key factories, located in southern China, worked with Levi’s to engineer a system that treats and recovers all the water used in the finishing process for subsequent runs.

(Levi’s Develops Way to Manufacture Jeans Using 100% Recycled Water; 2014) *Levi’s denim wear prices mostly range from USD $50 to USD $120

*Levi.com

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Perceptual map

Product and Price

Sustainability

INNOVARE by

Price The Jogg Jeans first came from Diesel. It is a hybrid of a pair of sweatpants and jeans. This small women’s collecion will be improved under Innovare with a twist. These pants are 100% compostable. They are mostly made with hemp and linen. This means they degrade in time, leaving no waste at all. In addition, these fabrics have added qualities in them; they are breathable, odor-resistant and provide better comfort to the wearer.

All three of them are tapered but have different washes. The one on the left has a light wash, the middle one is a dark jean and the right one has a medium wash. The left is a slim-skinny jean and the other two are regular.

(Prices L to R: USD$160, USD$130, USD$150)

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who are the people?

Face of the Brand Natalie Portman is one of the most environmental conscious celebrities in industry. She has been voicing out issues on global warming and the environment. For example, Natalie Portman was involved in an Animal Planet documentary, Gorillas on the Brink, which was part of the channel’s Saving a Species series.

Portman traveled to Rwanda to co-host the film. Gorillas on the Brink focused on the threats to the gorillas’ habitats, and Portman discussed the ways that conservationists were working to prevent the mountain gorillas from going extinct.

In addition, Natalie Portman created a line of vegan shoes with fashion firm Te Casan. Designing for a cause she believes in is one thing, donating to it is another. Never one to disappoint, Portman's shoe line benefited The Nature Conservancy, a leading not-for-profit that works around the world to protect the environment.

It has also been reported that Portman's engagement ring is eco-friendly. Apparently, the center stone on her engagement ring is antique mine-cut and the surrounding pavĂŠ diamonds are conflict-free. The ring is set in recycled platinum.

Natalie Portman has brains, beauty, talent and a love for the environment. She doesn't just talk about living green -- she actually takes steps to do it

Wallpapersdsc.net

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Face of the Brand Natalie Portman is versatile in the way she presents herself, hence she fits the brand image well.

She can take up different aesthetics really well, be it sexy, casual girly, and even elegant.

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who are the people?

This is a style that Innovare employees will adopt. Innovare is a denim store, hence denim will be a important part of the employee’s attire.

Irreverance is still a part of the brand’s image Employees are encouraged to adopt a more edgy look. In addition, employees are encouraged to mix and match clothing so that they can be versatile and creative.

All of these elements match with Innovare’s brand identity and values.

Ethical Proposals (detailed) Innovare by Diesel aims to join into Patagonia’s Worn Wear program and allow consumers to return their used jeans. The used jeans will be separated into two categories; any jeans that can be repaired will be outsourced to Patagonia. Patagonia has the largest repair centre in North America with more than 40,000 repairs a year. (Worn Wear: Initiative for Sustainability by Patagonia; 2016). The rest of the jeans that cannot be repaired will sent to I:CO to be recycled into rag rugs. In addition, any Innovare clothing that has returned into the recycling bins in the store will be rewarded with Yerdle dollars.

On the other hand, Patagonia is able to tap into the innovation that Innovare’s R&D and produce better quality of clothing. Diesel is known for the expertise in innovation.

Diesel’s R&D department has developed innovative jeans such as the Jogg Jeans; a hybrid that incorporates elements of both the sweatpants and denim jeans. The wearer of the Jogg Jeans feels like wearing a sweatpants while maintaining the irreverance of the distressed jeans on the outside. The Jogg Jeans even has an elastic band around the waist to adjust. (Diesel launches jeans and sweatpants hybrid Jogg Jeans, 2011). Innovare by Diesel will carry on Diesel’s expertise and develop better styles of denim for their target market. Both companies will tap into each other’s expertise into developing a greater future.

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Ethical Proposals (detailed)

Finally, Innovare by Diesel is committed to using 100% sustainable fibres in their denim products by 2030. In addition, Innovare by Diesel is a brand that prides itself in innovation and style, Innovare will also be committing a portion of their profits into its R&D. Similar to what Frietag has done: creating a compostable fabric that will be decompose within three months when it is thrown into a compost. (Frietag Launches 100 Percent Compostable Clothing made from Plants; 2014), Innovare intends to come up with better alternative solutions to cotton in denim.

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references Jasmin Malik Chua, Diesel, EDUN collaborate on African Made Sustianable Denim Line; 2013; Retrieved from http://www.ecouterre.com/diesel-edun-collaborate-on-african-made-sustainable-denim-line/

Virginia Cafaro, July 2016; Viktor & Rolf Couture Fall 2016 Collection Preaches Sustainability;http://www.fashionisers.com/fashion-news/viktor-rolf-couture-fall-2016/

Jasmin Malik Chua,Levi’s Develops way to Manufacture Jeans Using 100% Recycled Water; Retrieved from http://www.ecouterre.com/levistrauss-develops-way-to-manufacture-jeans-using-100-recycled-water/

Creative AD Awards; n.d; Diesel: Be Stupid Advertising; Retrieved from http://www.creativeadawards.com/diesel-be-stupid-advertising-campaign/

Jasmin Malik Chua; Levi’s Debuts “Water<less Jeans That Use up to 96% Less Water;2010; Retrieved from http://www.ecouterre.com/levis-debuts-waterless-jeans/

Patagonia;n.d; Retrieved from http://www.patagonia.com/company-info.html

Levi Strauss &Co; 2015; Fast Company goes Undercover at the Eureka Innovation Lab; Retrieved fromhttp://www.levistrauss.com/unzipped-blog/2015/03/fast-company-goes-undercover-at-the-eureka-innovation-lab/

Robin Givhan; 2015; Luxury fashion brands are going green . But why are they keeping a secret. Retrieved from https://www.washingtonpost. com/lifestyle/style/luxury-fashion-brands-are-going-green-but-why-are-they-keeping-it-a-secret/2015/12/08/d3d93678-8c8a-11e5-acff673ae92ddd2b_story.html

Nylon; 2015;this is how levi’s make its jeans; Retrieved from http://www.nylon.com/articles/levis-eureka-innovation-lab

Patagonia; n.d; Retrieved from https://www.patagonia.com/reuse-recycle.html

DL1961;n.d; Retrieved from www.DL1961.com

John Patrick; 2009; What is the Biggest Challenge facing sustainable fashion today; Retrieved from http://www.ecouterre.com/what-is-the-biggest-challenge-facing-sustainable-fashion-today/

Jasmin Malik Chua; Frietag Teases World’s First 100 Percent Compostable denim jeans; Retrieved from http://www.ecouterre.com/freitag-teases-worlds-first-100-percent-compostable-denim-jeans/ Treehugger; nd; Story of Frietag bags; Retrieved from http://www.treehugger.com/corporate-responsibility/the-story-of-freitag-bags-buildinga-business-around-reclaimed-materials-slideshow.htm Clockwork; 2013; Patagonia’s Worn Wear strategy; Retrieved from http://www.clockworkbranding.com/patagonias-worn-wear-strategy/ Patagonia; 2013; Patagonia Launches Common Threads Worn Wear Program in Reno; Retrieved from http://www.prnewswire.com/news-releases/patagonia-launches-common-threads-worn-wear-program-in-reno-213315111.html ISPO; 2016; Worn Wear Initative for sustainability by Patagaonia; Retrieved from http://www.ispo.com/en/companies/id_77743408/ worn-wear-initiative-for-sustainability-by-patagonia.html

Kim Speier; 2016; 6 Eco-Friendly Brands That will Inspire you to Go Green; Retrieved from http://www.business2community.com/brandviews/mainstreethost/6-eco-friendly-brands-will-inspire-go-green-01546517#t36riaxGm2D9lzuR.97 Michael D’heur; 2015; Fully Bipdegradable clothin; Retrieved from https://www.sharedvaluechain.com/fully-biodegradable-clothing/ Laura Willard; 2011; Hollywood Goes Green: Natalie Portman; Retrieved formhttp://www.sheknows.com/home-and-gardening/articles/833703/hollywood-goes-green-natalie-portman Drake Baer; 2014;The Making of Tesla; Retrieved from http://www.businessinsider.com/tesla-the-origin-story-2014-10 Tesla Marketing Strategy;n.d; Retrieved from http://www.qmac.ca/teslas-marketing-strategy-accelerating-the-world-into-sustainable-transport/ Daniel Sparks; 2016; 1 Chart Shows http://www.fool.com/investing/2016/10/04/1-chart-shows-tesla-motors-incs-staggering-growth.aspx 39