PROJECT MANAGEMENT & BUSINESS PITCH Niyati Dahisaria MA Fashion Business
Executive Summary In continuation to the research of the previous unit, which focused on the following question; “Whether a Sustainable Business Model needs to be strategized or Fast Fashion Brands would continue with their on-going practices as this is what their Consumers want” Through this unit, my aim is to introduce an Exclusive Up-graded “Sustainable Collection” within existing Fast Fashion Brands which is in sync with their current Business Models and thus, developing a strategy that suits these Brands in general and leads to an increase in their Market Share by tapping into a new category of the Conscious Consumer. The reasons to introduce a Sustainable Collection has been backed by facts and figures and through surveys, vox pops and focus groups based on the current gap in the market, the industry trend towards sustainability and ultimately the needs and wants of today’s dynamic consumer. The Collection focuses on the 4 Elements of the Environment i.e. Earth, Fire, Air and Water and thereby creating awareness about the 4 areas of Sustainable Fashion through collaborations and workshops.
Contents ■ Industry Overview ■ Market Research ■ Competitive Landscape ■ Business Opportunity ■ Business Proposal ■ “Connect” Collection ■ Mood Board ■ Creating a Buzz ■ Integrated Marketing Strategy ■ Critical Costs and Budgets ■ Bibliography
Industry Overview A comparison can be made between the attributes that define the Fast Fashion Industry with those of the Sustainable Fashion Industry. It is interesting to see that some of these attributes can coincide with each other, which was otherwise known as mutually exclusive phenomenas. Fast Fashion is –
Sexy Addictive Dynamic Trendy Increased Consumption Quick Turnover Price Conscious Consumer Fast Moving Mass Production Diverse range of Products Disposable Garments
Sustainable Fashion (within Fast Fashion Industry, till date) is –
Compromised Design Higher Priced Flourishing Responsible Consumer Caring Environment Conscious Feel Good Factor Long Lasting Materials Controlled Production Transparency Lesser Landfills
Market Research PRIMARY RESEARCH – Survey: A series of questions were sent to 75 potential consumers using Survey Monkey, ranging within the age group of 16 to 34, the results of which have been summarized below (SurveyMonkey, 1999):
ANALYSIS of the RESULTS
DESIRED OUTCOME/ ACTIONS
59% of the surveyed, have never heard of Sustainable/ Eco Collections, therefore have an indifferent attitude towards the same
Create AWARENESS through selected mediums
53% of the surveyed, stated that the first thought that comes to mind regarding Sustainable Fashion is “Compromised Design”
57% of the surveyed, stated that they expect Sustainable collections to have better design appeals while incorporating the latest trends
41% of the surveyed, stated that when brands use Sustainability in their campaigns, it is simply a “PR Stunt/ False Advertising done by the Brands”
Laying more emphasis on better Designed Collection by incorporating the latest trends
86% of the surveyed, stated that Brands need to be more Transparent with their Consumers
Of this, 83% stated that they would be willing to purchase clothes from competing brands if they were more Transparent about their activities. Therefore, in order to survive the market, Transparency needs to be incorporated
66% stated that they were most likely to get influenced through Social Media platforms
Daily posts on Facebook, Instagram, Twitter and Snapchat to keep the consumer updated and connected with the Brand
79% stated that they would be willing to spend extra on an Upgraded collection which is Ethically sourced and Sustainable in Nature
Thus target consumer is not the Fast fashion – Price Conscious Consumer. In fact, focus needs to be laid on a more Responsible and Environment Conscious Consumer
Fast fashion has turned individuals into passive consumers who are constantly chasing the fantasy in the hope that purchasing more clothes will eventually make them happy. However, this thinking is changing (As seen above) and is changing for the better. Thus, it needs to be concluded that though consumers expect brands to be more Transparent with them in terms of their supply chain and manufacturing processes, direct advertising of the same leads to a negative effect on them. Thus, brands need to be selling on the idea that sustainable fashion does not infer that they have to compromise on the design, i.e. without compromising on the Fashion Element itself.
Market Research PRIMARY RESEARCH (Vox Pops) Further on physically examining a couple of Fast Fashion stores, namely H&M and Uniqlo in order to understand the buying habits/ patterns and to speak to the customers regarding their take on the respective Sustainable activities conducted by these brands. Below are the observations, H&M (Oxford Street) – “Conscious Exclusive Collection” • Number of Products – Approx 30 items (including 1 bag, 1 shoes, 3 pieces of lingerie) in comparison to non-sustainable products displayed on their 4 floor outlet •
Pricing – Range GBP 50 – 150 (Priced atleast 3 times higher than the rest of the products)
• Natural Materials – Organic silk, organic cotton, Tencel, Recycled polyester, post processing consumer waste, an initiative to protect the protect the oceans from plastic waste • Transparency – All of the information regarding the materials was printed on the label of each garment and stated that further information could be found through their online website. However, in reality the website provides even lesser information on the materials or even the fact as to why the said garment has been termed Conscious • Consumers Reaction – The Exclusive collection was strategically placed near the till and noticed that every consumer that visited the store glanced through the collection. However, I enquired why they were not interested in buying the garments and got 2 main responses. Firstly, the price of the garments were extraordinarily high and even though the consumers were interested in purchasing the same they did not like the designs of the garments. They were willing to spend more due to the feel of the fabrics but felt that the designs were not fashionable enough. Secondly, they were having a hard time to trust the brand into believing that the same were made from Sustainable materials as very little information was made available to them Uniqlo (Oxford Street) •
In their store, focus has been laid on Visual Merchandising wherein large descriptive texts is placed on the window explaining how Linen, Yarn, Fibre and Flax have been organically obtained and the details of how they are turned into textiles
On analyzing the key fast fashion players, it can be concluded that there is a major gap in the market to provide better designs within the Sustainable fashion industry that not only make you look good but also make you feel good. Also, to educate the target consumers on the same.
Competitive Landscape An analysis into the Business Models (and revenues) of key players within the Fast Fashion Industry who are said to have contributed to certain levels of Sustainable activities is mentioned below. This has been only verified through their Annual financial statements and their Suppliers and Manufacturers contract statements which are made available to the public. They are: ■
Zara : Being the top player of the fast fashion game, the brand produces extremely chic and trendy designs which are inspired from the runway. Their strategy is limited supply due to which they are able to change the store inventory every other week. Inditex’s major share of revenue is contributed through Zara, (almost two-thirds of revenue) amounting to GBP 75.91 billion for the year end 2015 (Forbes, 2014)
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H&M : Is worth GBP 57.2 billion with presence all over the world. The Swedish retailer is known for its affordable wares and its high fashion designer collaborations. Although they have not made enough success with their Exclusive Conscious Collection (Forbes, 2014)
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Adidas : Although being an athletic brand, it has had some noticeable collaborations with industry’s most praised designers, combined with a remarkable skill to quickly churn out these collaborations, thereby making it a new frontier for fast fashion. The label has set a benchmark for its cool designs in activewear and is currently worth GBP 18.27 billion (Forbes, 2014)
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Uniqlo : Uniqlo is the go-to brand when it comes to affordable cheap basics and has plans to open a host of new stores in the upcoming years. So far, Uniqlo has made GBP 4.9 billion in sales (Forbes, 2014)
Ethical Practices
As it has already been established that consumers are valuing brands more who are socially and ecologically responsible, which has led to an industry trend towards a slow fashion movement. A few of the noticeable Sustainable brands (and a few top fast fashion brands) in the industry are mentioned below, (HighSnobiety, 2017)
Consumer Awareness
“It is projected that by 2030 the apparel consumption shall rise to 102 million, leading to a 63% rise as of today” (Dhillon, 2017) – Highsnobiety
“In Bangladesh, 70% of the GDP is earned from the Fashion Industry” (The Ethical Fashion Source)
“It takes 2,700 liters of
water to produce just one cotton T-shirt, while 5,000 children die each day due to a lack of clean water” (WWF, 2013)
“60% of consumers state retailer’s sustainability is important, 15.6% would not buy from a retailer if they were not transparent about their ethical credentials” (Hendriksz, 2016)
Resources are being depleted every single day with increased population and reckless consumption. Further, the fashion industry is known to add revenues of around 160 billion euros by 2030 annually to the world economy. This would lead to reduction in global poverty through the provision of living wages to the skilled labourers.
Business Opportunity Filling a Gap in the Market: ■
It is pretty evident that responsible management on behalf of the Fast Fashion Industries is the near of the hour
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From the consumer surveys, vox pops and competitor analysis it can be concluded that brands that practice sustainability are becoming more attractive to consumers
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As consumers are getting more and more informed and therefore, it is a need which is to be addressed. Further, many of the fast fashion brands that churn disposable garments are the ones who are so outspoken about sustainability and claim they are taking responsible actions towards chemicals, raw materials, toxic emissions, etc but at the same time producing very poor quality garments.
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The idea behind sustainability has changed over the years. From being viewed as a bonus activity to being considered a vital element for a successive organization’s operations. Thus, the same should not be considered an advertising gimmick
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Consumers are willing to purchase products from competitors who are more transparent with their customers. Therefore, there is added pressure in an already competitive market to take necessary actions
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Besides, existing fast fashion brands can tap into a new market segmentation attracting consumers who are willing to do good emotionally and who feel responsible for the impact on the environment. Therefore, increased market share towards a more conscious consumer who is willing to pay more
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In the future, this brand can be recognized as a fashionably desirable ethical brand
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In order to achieve this, perception of the brand needs to be shifted to: – Trendy, chic yet ethical brand – Rebranding sustainability as “Cool” again – Making it the “Go-to” brand for Sustainable clothing without compromising on fashion appeal – Emphasis on the feel good quotient and emphasis on recycling activities – Improving Marketing Measures - Creating greater awareness, desirability and demand through timely workshops and meaningful collaborations
BUSINESS PROPOSAL
“Connect” Collection Clothing with a Soul – New Consciousness -
Exclusive Up-graded “Sustainable Collection” within existing Fast Fashion Brands which is in sync with their current Business Model
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Leads to an increase in their Market Share by tapping into a new category of the Conscious Consumer
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The Collection focuses on the 4 Elements of the Environment and thereby creating awareness about the 4 areas of Sustainable Fashion through collaborations and workshops. They are: -
Earth: Through Sustainable Materials obtained naturally from the Earth;
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Air: Reduction in Air Pollution;
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Water: Better water management and water purification; and
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Fire: Zero wastage where there are no garments burnt/ thrown away leading to a Closed Loop Economy
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The 4 Elements relate to the 4 seasons of the Collection when they will be launched
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Each collection will be defined as Elegant, Clean and Minimalistic with around 20-25 styles for each season
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The collections will be an extended version of the existing brands thus taking care of trend forecasts and latest designs although being tailored according to the individual brand aesthetics
Earth WINTER Colour palette is very sober and basic white, cream, black and greys Idea is to promote Organic cotton (including wool) through use of sustainable materials Reason: It is known that Cotton is the most used fabric in the apparel market with 20 million tonnes of it produced worldwide each year (Ajvazi, 2016) - WGSN. It is to be noted that conventionally grown cotton requires gallons of water and the use of chemicals and pesticides. These are naturally harmful for our ecosystem and also are hazardous to health of the laborers working on the fields. Therefore, through this collection, organic farming is encouraged as a natural alternative. Collaboration: It is important to partner with an industry expert producing chemically-free cotton. (For example: Cotton Incorporated, is committed to encouraging environmentallyviable solutions that aid in securing the future of cotton). Further, they can even partner with Agrocel, that provides education to Indian farmers regarding cotton cultivation and also ensures that these farmers atleast earn 30% more for the cotton production.
Air SPRING Colour palette is bright, vivid which are reminiscent of the hues that surround us such as shades of yellow, blue and green, which brings about a feeling of nostalgia taking us back to Mother Earth Idea is to make consumers aware of Air Pollution and the emission of toxic carbon infused chemicals into our environment Reason: Due to industrialization, we always thought air pollution is to blamed on coal industries or fertilizer companies. Consumers need to know that fashion is the second pollutant industry in the world and the fashion carbon footprint is magnificent. Also around 25% of the world’s toxic chemicals are used in the manufacturing of textile garments. This leads to release of toxic harmful chemicals in our air and the making of greenhouse gases. Further, in order to produce one T-shirt, massive wats of energy is consumed, which is obtained through burning of fossil fuels or coal consumption thereby leading to emissions of toxic heavy metals such as mercury and lead into the Air. Promotion: Through this collection, the brand shall aim to promote the use of renewable solar energy and other means of renewable energies. Initial costs of introduction solar energy is high but in the long term brands/ factories can enjoy on negligible costs
Water AUTUMN Colour palette is strong classical colours such as nude, cream, browns, purple and darker blues Apart from agriculture, the textile industry uses more water than any other industry till date Reason: It is a known fact that water is a scarce resource. We are not only consuming the same at an alarming rate but at the same time polluting the water and killing its natural biodiversity. “According to the WHO (World Health Organisation) 17-20% of all industrial water pollution resulted from textile dyeing and finishing� (house et al., 100AD). The chemicals used in textile dyeing are heavy metal wastes which take years to biodegrade naturally affecting the water system. Solution: Through this collection, the brand aims to promote the use of natural dyes (dyes made from plant and animal sources) in place of toxic dyes in order to reduce the harm caused to our water supply system. Natural dyes can be grown organically and are carbon neutral, which are very common and available in almost all parts of the world (For example: Aranya, is a trade organization in Bangladesh which helps in this thereby even leading to upliftment of the families of the skilled workers)
Fire SUMMER
Colour palette is defined with sunset colours like red, orange, yellow and hues “Around 30% of clothing hasn’t been the biosphere when no longer of human use” (Dr. Anna Brismar, 2017, worn in over a year circularfashion.com). Thus, closing the Cost of this unused clothing is around loop through innovative and recycling solutions is the need of the hour. £30billion Besides, it is important to promote Extending clothing life by just 3 monthsvintage trends which leads to re-use of can reduce carbon, water and waste old clothes. footprints by up to 10%” Promotion: Through this collection , the (Wrap UK, 2016) brand shall aim at implementing innovative solutions through workshops Reason: “Circular fashion can be and DIYs stations whereby consumers defined as clothes, shoes or can bring in their old clothes and reaccessories that are designed, create them through embroidery, studs, sourced, produced and provided with etc. Therefore, it leads to lesser the intention to be used and circulate landfills, zero wastage where there are responsibly and effectively in society no garments burnt/ thrown away for as long as possible in their most leading to a Closed Loop Economy valuable form, and hereafter return safely to
Mood Board
Gives a general idea of how the 4 triangles inspire the collection and its look
Creating a Buzz PRE LAUNCH ADVERTISING DURATION – 2 Weeks ■
Teaser Advertising on Social media: Local City Taglines – “Do you Feel Connected?”
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Outdoor Media – Hoarders and Billboards in High traffic Areas
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Online Virtual Reality Competition – In order to create a buzz and excitement around the local launch cities, engagement of the youth is important through a promotional competition on Social Media (preferably Instagram due to its large number of users). Individuals have to log into “specific brands website” page and register by posting any activity they did in relation to the environment #AreYouConnected
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The most whacky post Wins a Chance to the exclusive Launch Night and a gift voucher
LAUNCH NIGHT ■
Within the retail outlet of the brand with minimalistic décor
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Catering – Emphasis on healthy living through glutten free food, natural organic cuisine, etc
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Recycling Denim Workshop
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Introductory speech of the Collection and its Meaning
ENDORSEMENTS ■
Local fashion influencers will create a greater impact and awareness of the brands social media through having input such as snap chat take overs, promoting the brand through posts and promotional campaigns and being present at launch events.
Integrated Marketing Strategy PRODUCT: - Introduction of Limited Edition Collection - Simple, Elegant, Minimalistic (LESS IS MORE)
PROCESS: Storytelling, Exceptional Experience, Theatrical
- Emotional VALUE attached
PRICE: Customers are willing to pay little extra than the standard price range of fast fashion products (79% of the surveyed) Although continuing with other lower ranged fast fashion category as well PHYSICAL ENVIRONMWNT:
PLACE: Being at a nascent stage in the product life cycle, making the Product accessible to future consumers through the already present retail outlets is the best way to penetrate the Market – Since it is a sub brand
Eventually become market leaders through physical evidence of a business presence PEOPLE: Cater to the large population of female youth falling under the age group of 16-34
PROMOTION:
Localize the strategy in sync with the changing mindset of the individual Consumer Base
In order to create a buzz about the collection and to create Awareness, extensive use of Marketing through various social media and outdoor advts are required
Confident, young, educated and socially responsible individuals with ethical awareness
Personalization of Campaigns Click to buy functionality
Critical Costs and Budget Particulars
Amount (GBP)
Initial Costs: Visual Merchandising & Electronics: Interiors of the Store Retail Staff Catering DJ/ Music Technology Cost (Website Additions)
1500 1050 800 1500 400
Marketing: Hoardings (2 for 2 Weeks) Press Social Media Influencers Instagram Posts (Campaign) Snapchat Geofilter Promotional Costs: Invites Production Costs: Limited Edition Collection (In House)
10000 40000 20000 1000 500 300
50000
Bibliography ■
Anna Brismar (2017) Circular fashion. At: http://circularfashion.com/circular-fashion-definition/ (Accessed on 16 May 2017)
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Ajvazi, Z. (2016) Organic Cotton | WGSN. At: https://www.wgsn.com/content/search/reports/?searchId=9258101#/organic%2520cotton (Accessed on 16 May 2017)
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Dhillon, K. (2017) Surprise Surprise, the Fashion Industry Isn’t as Sustainable as It Should Be. At: http://www.highsnobiety.com/2017/05/08/pulsefashion-report-sustainability/ (Accessed on 16 May 2017)
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Hendriksz, V. (2016) Consumers praise sustainable fashion, but unwilling to pay premium price tag. At: https://fashionunited.uk/news/fashion/consumers-praise-sustainable-fashion-but-unwilling-to-pay-premium-price-tag/2016091421768 (Accessed on 16 May 2017)
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house, H.R.F. of feminist B. fashion et al. (100AD) Shocking Environmental Implications of Fashion. At: http://www.huffingtonpost.co.uk/heidyrehman/shocking-environmental-fast-fashion_b_8009850.html (Accessed on 16 May 2017)
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(2013) The Impact of a Cotton T-Shirt | Stories | WWF. At: https://www.worldwildlife.org/stories/the-impact-of-a-cotton-t-shirt (Accessed on 16 May 2017)
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(2014a) The 5 Most Valuable Fast Fashion Brands. At: http://www.theukfashionspot.co.uk/runway-news/422009-the-most-valuable-fast-fashionbrands/ (Accessed on 16 May 2017)
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(2014b) The 5 Most Valuable Fast Fashion Brands. At: http://www.theukfashionspot.co.uk/runway-news/422009-the-most-valuable-fast-fashionbrands/ (Accessed on 16 May 2017)
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(2014c) The 5 Most Valuable Fast Fashion Brands. At: http://www.theukfashionspot.co.uk/runway-news/422009-the-most-valuable-fast-fashionbrands/ (Accessed on 16 May 2017)
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(2014d) The 5 Most Valuable Fast Fashion Brands. At: http://www.theukfashionspot.co.uk/runway-news/422009-the-most-valuable-fast-fashionbrands/ (Accessed on 16 May 2017)
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(2016) Valuing Our Clothes | WRAP UK. At: http://www.wrap.org.uk/sustainable-textiles/valuing-our-clothes%20 (Accessed on 16 May 2017)
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(2017) Best Sustainable Fashion Brands: 21 You’ll Want to Buy. At: http://www.highsnobiety.com/2017/04/17/best-sustainable-fashion-brands/ (Accessed on 16 May 2017)
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(s.d.) Fashion & Development | The Ethical Fashion Source. At: http://source.ethicalfashionforum.com/article/fashion-development (Accessed on 16 May 2017a)
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(s.d.) SurveyMonkey Analyze - Sustainable Clothing Within Fast Fashion Brands. At: https://www.surveymonkey.com/analyze/uJo1oRYc_2FQzPfAbqqFZL01ocS4Bf5IweMDWkAHPBm0c_3D (Accessed on 16 May 2017b)