Thesis Dissertation by Nuria Pons

NURIA PONS ROSSELLO

Individual Report BA (Hons) Fashion Marketing & Communication Level 6, 2018-2019 6FAMK001C Major Project CWK2

THE DEMOCRATISATION OF STREETWEAR: Understanding consumer behaviour and the new luxury fashion scope

José Guerrero Teresa Buhigas Enric Bayó Word Count 8500

ACKNOWLEDGMENTS

I would like to send my gratitude and respect to JosĂŠ Guerrero. His ambition, passion and particularity inspired me throughout the three years of my course to become a critical and determined individual. I must express my thankfulness to my parents, for moral support and for giving me the opportunity to undertake these studies and grow professionally. Finally, I would like to send my appreciation to my closest friends, for believing in me and inspiring me constantly with their own personal growth and ambitions. This thesis project is a result of my own research following the IED guidelines. Wourdcount: 8500

ABSTRACT

The aim of the study was firstly to understand which sociological aspects contributed to the evolution of the streetwear movement and which were the basis of its consumption. The second objective was to analyse the factors that lead to the merging of streetwear and luxury and how the traditional business model has been modified. The theoretical research was divided into two groups. The first segment referred to background information that helped the understatement of the sociological aspects of consumption. The second segment considered the critical compontents, in which the author collected and developed in depth the points that contributed to the merging of both industries. It was crucial for this research to evaluate consumer behaviour and brand management related to the rise of streetwear. The author found that this evolutional elements could also be found in the luxury spectrum. It was concluded that both industries have been suffering a socialisation in the recent year; therefore, both have had to encounter changes in their traditional models.

08 INTRODUCTION Motivation Aim Objectives Research Questions

16 RESEARCH METHODOLOGY 17 LIMITATIONS 20 LITERATURE REVIEW The link of clothing to invidualâ&#x20AC;&#x2122;s identity The collective act of dressing Symbolic Consumption Brand Persuasion The breakthrough of digitalization in the traditional business model Democratisation of the luxury fashion houses

39 DATA RESULTS Examining consumer collective behaviour: Brand Meaning & Product Meaning Analysing the impact of digitalization in consumer behaviour and brand management Validating new emerging markets Evaluating the luxury-streetwear shift

53 DISCUSSION & CONCLUSION 58 BIBLIOGRAPHY 7

INTRODUCTION Figure 1:Tyler the Creator for GQ Style, 2018.

MOTIVATION

The last decade’s fashion spectrum has been disrupted by a new series of ‘challengers’ triggered by social media and technological advances. Challenger brands are distinguished by rapid growth, social media fluency, and e-commerce focused distribution. According to The Business of Fashion and Mckinsey in The State of Fashion 2019, self-disruption is being driven by young consumer’s preferences for novelty and innovation in digital technology. The rise of the subcultural movement Streetwear to the mass market has been a clear example. Initially, the term referred to a by-product of different subcultures such as hip-hop, skate, or surf. Streetwear brands are being bred by mass hysteria, and success believed to be motivated by scarcity and exclusivity approaches in their business model. According to The Business of Fashion, Generation Y and Z will account for 45% of global luxury goods spending. Traditionally luxury brands are adapting their business models to fit with emerging consumer’s inclinations. A significant amount of luxury houses, including Gucci, Louis Vuitton, Balenciaga, or Burberry, are co-creating and implementing streetwear’s aesthetic and management and communication strategies. Streetwear and luxury brands are characterised for belonging to niche markets that have recently been usurped to the masses.

Here is where the problem arises, how to categorize both movements. Regardless of their differences, both segments want relevance, market share, and customer loyalty. The origin of this can be detected in the experimentation through product collaboration in the past among luxury and streetwear brands while combining brand identities that became mass hysteria and has remained in the market. According to a study released by the company Bain & Company, highend streetwear increased global sales of luxury personal goods by 5% to an estimated 263 billion euros. The motivation to focus this research dissertation in the unification of Streetwear and Luxury brands comes from the author’s personal interest in the recent Streetwear phenomenon that has influenced noticeable the fashion industry in the latest years. The decisive factor in developing this research was the recent appointment of Virgil Abloh as the new creative director of Louis Vuitton. The designer comes from a Streetwear background as the founder of the Italian label Off-White. The question lies in how one of the most important, traditional, and conservative luxury houses in France is breaking the rules and trespassing the boundaries of the traditional business model and customer.

-Introduction

“Streetwear and luxury brands both have to maintain their exclusivity and perception. Demand has to drive interest; if everyone could get something, it would kill the hype. You have to drive conversation that’s even greater than your actual sales. It’s aspiration. (John McPheters, the CMO of sneaker retailer Stadium Goods, 2018).

AIMS

This thesis aims to delve into the streetwear movement and the critical factors that contributed to their success and input to re-shaping many luxury housesâ&#x20AC;&#x2122; business model. The research aims to explore a more psychological approach to the subcultures of consumption to further delineate the boundaries among streetwear and luxury. The project will also be evaluating how hype-driven brands build social integration through their products while incentivising consumption as a form of group recognition. Overall, the aim of this research is based on initiating a conversation around consumer power and brand adaptability in the fast-moving fashion industry.

OBJECTIVES TO UNDERSTAND THE SOCIOLOGICAL ASPECTS THAT INFLUENCED THE CONSUMER INTO THE EXPENDITURE OF STREETWEAR. TO ANALYSE THE ROLE OF CONSUMPTION IN THE EVOLUTION OF STREETWEAR FROM A NICHE TO A MASS MARKET. TO COMPREHEND THE EFFECT OF THE DIGITALIZATION ON CONSUMER BEHAVIOUR AND BRAND MANAGEMENT. TO UNDERSTAND THE DEMOCRATISATION OF LUXURY, HAVING A CONSIDERABLE IMPACT ON THE STREETWEAR SPECTRUM.

Major Project-

-Introduction

RESEARCH QUESTIONS

How does clothing impact an individuals identity?

Does the act of dressing create social interaction?

Is social interaction translated into consumption patterns?

Does consumption have a symbolic meaning?

Do consumers create emotional bonds with certain brands?

How has digitalization shifted the traditional luxury customer into being interested in streetwear and vice versa?

How does digitalization contribute to the connection among brands and customers?

How has the democratisation of luxury shifted the traditional customer? Which has been the effect of the merging of luxury and streetwear? Major Project-

-Introduction

THE MERGING OF STREETWEAR

OBJECTIVES To understand the sociological aspects that influenced the consumer into the expenditury of streetwear.

To analyse the role of consumption in the evolution of streetwear from a niche to mass market.

To comprehend the effect of the digitalization on consumer behaviour and brand management.

To understand the democratisation of luxury having considerable impact on the streetwear spectrum.

RESEARCH QUESTIONS What is the impact of clothing on Conceptual someoneâ&#x20AC;&#x2122;s The link of identity? clothing to invidualâ&#x20AC;&#x2122;s identity

Does the act of Conceptual dressing collective create social The act of dressing interaction?

Is social interaction Conceptual The collective translated act of dressing into consumption patterns?

Does consumption have a symbolic meaning?

Do consumers create emotional bonds with certain brands?

Major Project-

Conceptual Symbolic Consumption Casual Examining consumer collective behaviour: Product Meaning

Conceptual Brand Persuasion Casual Examining consumer collective behaviour: Brand Meaning

How has digitalization shifted the traditional luxury customer into being interested in streetwear and vice versa?

Conceptual The breakthrough of digitalization into the traditional business model Casual Analysing the impact of digitalization in consumer behaviour and brand management

How does digitalization contribute to the connection among brands and customers?

Conceptual Democratisation of the luxury fashion houses Casual Validating new emerging markets

How has the democratisation of luxury shifted the traditional customer?

Which has been the effect of the merging of luxury and streetwear?

Conceptual Democratisation of the luxury fashion houses Casual Evaluating the effects of the merging of streetwear and luxury

-Introduction

Figure 2: Gully Guy Leo Debut Collection, 2018

RESEARCH METHODOLOGY

Y It has been crucial the examination of secondary sources such as books and papers based on fashion communication, consumption, and luxury management to obtain a theoretical perspective of the democratisation of streetwear and luxury. In order to explore the sociological aspects that relate to the language and meaning of fashion, it is essential to analyse theories based on the semiotics of fashion deeply. The primary authors that have been reviewed are Malcolm Barnard (University lecture of history, the theory of art and design and author of the book Fashion as Communication) and Roland Barthes (French philosopher and literary critic who explored the social theory, anthropology, and semiotics). The creation of social interaction through clothing leads to the creation of different sub-cultures building their collective identity through consumption. To further understand consumerism and how it allows brands and consumers to share an ideology and values, theories of consumption have been studied. Russell W. Belkâ&#x20AC;&#x2122;s theories of the extended self will be endorsed by Douglas and Isherwood and Thorstein Veblen claiming possession as constructors of identity.

The journalist Rob Walker (author of Buying In: The Secret Dialogue: What We Buy and Who We Are) helped examined consumer behaviour regarding the symbolic meaning of possession. An analysis undertaking reinforced the product meaning by the author by investigating which are the fastest-growing categories of luxury products and what drives their desirability. In this chapter, the author analysed the hottest products of the year because it was a clear point that defined the association of product meaning with the influence of streetwear. Customers purchase the meaning of what the product and brand represent. Brands constitute a way of life seen in the consumer’s eyes. To further develop into the cult of brands the author has reviewed different theories from Muñiz and O’Guin, Douglas Atkin, who believes that a community is the engine of brand loyalty; and David Aaker (author specialised in marketing, business strategy, and branding). Those theories have been endorsed by data contrasting a case of a cult brand. In order to prove those facts, the traffic on social media and consumer engagement of a cult brand will be measured. Besides, the author remarked that the most relevant brands of 2019 because many of the chosen brands are using community building strategies, primarily digitally, co-creating with different brands. Digitalization is re-shaping the traditional business models and how consumers and brands are communicating. The author studied different secondary sources studying the importance of social media and e-commerce in brand management: Raymond A.Nadeau (author of Living Brand) and Marty Neumeier (author of The Brand Gap).

The impact of digitalization was measured in terms of e-commerce and omnichannel strategies statistics that were proved through a comparison of three luxury brand’s usage of digital channels. A significant effect brought by the socialisation of luxury is the development of new target segments. It leads to the necessity to re-define traditional business models.Jean-Nöel Kapferer, the most influential leading brand experts) has studied the advances in luxury management The validation of the new emerging market was done by analysing the shopping behaviour of each followed by the study of their forecasted growth and influence in fashion consumption in the next years. Limitations have occurred when searching for a theoretical framework related to the new paradigm: the merging of streetwear and luxury. The author identified a series of implementations, the ‘drop’ model that luxury brands have executed deriving from streetwear. The data will feature which have been the digital advances that have flourish and how luxury brands are enforcing them. To further develop into the effects of the merging of luxury and streetwear brands, it is essential to delve into the birth of rental and resale business models that lead to lengthening the lifecycle of products. The author considered the necessity to include a forecast on consumer’s expectation for pre-owned and rental models because it reveals a real expected success in the coming years. To conclude, an analysis of a re-sale platform most influential in the streetwear movement has been done. The evidence indicates the price value of products and remarks on the significance of cult brands and the favorable result with the unification with a luxury brand.

LIMITATIONS A series of limitations have appeared throughout the development of this project. Firstly, the topic of streetwear has not been deeply investigated regarding which obstructed the construction of detailed theoretical research based on the movement as it was demanded. Instead, the student showcased and analysed in depth- the possible factors conducted streetwear into a place of conglomeration. Moreover, the lack of real and up-to-date data regarding the merging of streetwear has been problematic.

Major Project-

-Literature Review

REVIEW

LITERATURE

Figure 3:Tyler the Creator for GQ Style, 2018.

The following chapters will be analysing the decisive and fundamental factors that incentivised the evolution of streetwear to the mass market. The concept has often been referred to as a by-product of subcultural movements. David Fischer (2018) in The Incomplete: Highsnobiety Guide to Street Fashion and Culture, defines the movement as a combination of â&#x20AC;&#x2DC;culturesâ&#x20AC;&#x2122; (skate, surf, and music) joined by a lifestyle that embraces apparel and footwear, specifically sneakers. This is where the problem arises; a subculture is defined by Dick Hebdige (1979) as a movement outside the norms contradicting the dominant order. This definition appeals to the first stages of Streetwear; however, the movement has been usurped through popularization and suffered a democratisation. Streetwear brands have been facing difficulties in redefining brand equity and their style codes due to the high media influence and the merging with luxury fashion. Few studies delve into the rise and evolution of streetwear, which interferes in a proper investigation of said evolution. In order to understand how subcultures, join consumers into cult brands, it is crucial to understand the role of consumption and how it leads consumers to adopt a collective identity through material possessions. However, to contextualise the reader, it is vital to provide a historical theoretical background of the link between clothing and identity.

Major Project-

-Literature Review

THE LINKAGE OF CLOTHING TO AN INDIVIDUALâ&#x20AC;&#x2122;S IDENTITY Fashion is a medium to express self-identity, behavioral characteristics, and social status by the wearer as a form of nonverbal communication. In line with the development of civilisation, the language and functionality of the dress have been conditioned by forms and norms that vary depending on the content and purpose creating interaction through the wearer, the message and the viewer. The meaning of Fashion has been studied and perceived differently with various authors. During the mid-twentieth, Saussure (1916) defined the basis of human language with two concepts: langue and parole. Langue, independent of the individuals, is the complete and essential system of language containing a large number of elements where meaning is created. Parole, individual act, as an external manifestation of langue (in Barthes, 2006). Roland Barthes connected this theory to the dialectal exchange of dress and dressing. Dress attributes to the langue, as a sociological and historical institution. On the contrary, dressing (parole) an individual and personal mode that constructs a morphological, circumstantial, and physiological meaning. Both notions originate the concept of clothing and langage for Saussure. When a group wears a garment in a distinctive way, it becomes a part of the dress; meanwhile, if it is just an individual, it becomes the simple act of dressing. Both of these concepts align as a form of semantic meaning between the wearer and their group. Malcolm Barnard (2002) differentiates the origin of meaning as external to the garment, from an authority, designer or wearer, or in the garment itself. The designer intends to reflect their thoughts and feelings in a garment. The designer being the source of the meaning is the purest common sense.

Major Project-

-Literature Review

Secondly, the origin of the meaning can lay on the wearer or spectator. The wearer’s intentions define the particular meaning of the garment. Barnard disagrees with this statement claiming the contradiction among the wearer’s and the spectator’s intentions. ‘The sexist and selective memories of certain men are full of recollection in which the intentions of wearers were countered and thwarted by those of spectators telling them that they were ‘not going out dressed like that’’. (Malcolm Barnard, 2002). Finally, a source of meaning external to the garment is the idea of authority, such as governments and other institutions. For example, in terms of uniform, the institution decides on patterns, colours, or cuts. Lurie (1992) claims in The Language of Clothes that wearing a uniform is censoring an individual, grouping the whole community wearing the uniform with one ideology, opinion or duty (in Barnard, 2002, p78). Barnard declares the low possibility of authorities being the source of the meaning of the cloth. Visualising the fact that young people and pop stars can wear army uniforms as symbols of rebellion to society while others use the same uniform with different purposes. The garment can provide meaning on itself through shapes, colours. When the cloth is seen from the different cultural background, the meaning differs.

The development of society has conditioned the variety of types and forms of clothing and its functionality in conjunction with its meaning. In this process, Semiotics is used to understand the signs created with dressing. The science of sign is not only applied in fashion as a group of codes and meanings but as a merge with sociocultural traits. Saussare (1974) defined the classification of the sign into ‘signifier’ and ‘signified.’ The signifier is a physical sign perceived by the observer that presents space, volume, colour, or texture, while the signified is the meaning of the signifier and together make the sign. Malcolm Barnard (2002) visualises this classification as the word ‘shirt’ as a form of signifier while the representation of the item of clothing is the signified. In other words, the signifier is the item that represents a concept; hence, the signified is the concept that is being represented.

Major Project-

-Literature Review

During the verbal communication process, meaning can be easily interpreted helped by gestures and the tone of voice. However, considering fashion as a form of non-verbal communication, the meaning can be obtained through necessary functional objects. The meaning perceived is conditioned by the observers’ feelings or cultural background but also as an accumulation of values attributed to a simple garment. Barnard (2002) and Barthes (2006) differentiate two categories of connotations linked to the clothing used to describe and analyse the production of meaning; ‘denotation’ and ‘connotation.’ Denotation is the first literal meaning of an image or garment. According to Barnard (2002), the denotation is factual and immobile, and it refers to when, how, and where was the garment produced. According to Barthes (2006), denotation becomes the plane of content, or signified, of the second system. Instead, the connotation becomes the plane of expression is the second order of meaning. Described as an image or garment that incentives a thought or feeling in the other person. The signified of this signifier will vary from person to person, as the word or image will have different associations for everyone (Malcolm Barnard, 2002). The understanding of connotation is intersubjective and conditioned by the sex, age, or class of the observer.

Major Project-

-Literature Review

KEY FINDINGS The garment can provide meaning on itself through shapes, colours and textures. When the cloth is seen from different cultural background the meaning differs.

THE COLLECTIVE ACT OF DRESSING After analysing the language and meaning linked to fashion and clothing, a clear pattern of social interaction through messages appears. Eco (1972) claims the action of non-verbal communication with a metaphor ‘speaking through one’s clothes’(in Barnard, 2002, p29). The meaning of the science of signs may translate to simple acts of communication among cultures; such as wearing bright colours. However, Malcol, Barnard (2002) differentiates a subdivision of communication schools. The ‘process school’ claims clothing to be the message

from a sender aimed to communicate and influence a receiver. This model constitutes a social interaction in which the message can arrive efficiently or suffer a modification. On this account, the receiver will always perceive a meaning about the other individual. The ‘semiotic school’ distinguish an individual as a member of a community, constructing social interaction between individuals that belong to a cultural group, instead of perceiving an individual as a member of a group and later communicating as in the other school. The communication of meaning is notoriously crucial as the receiver of the message in the process school. The possibility of perceiving a distorted message from the intended is determined by the cultural background and will not be considered a failed process of communication. (Malcolm Barnard, 2002) The question arises whether individuals are joined in communities or cultural groups due to the complexity of the word ‘culture.’ Raymond Williams (1976) claimed the world culture to be one of the two or three most complicated words in the English language. (in Barnard, 2002, p34). Different conceptions of the word culture have been declared during centuries leading to question whether clothing, dress, or fashion would count as a culture. Raymond William (1965) referred to culture as a way of life that expresses particular meanings and values not only in art and learning but also in institutions and ordinary behaviour. Dick Hebdige discussed different authors’ concerning the dominant groups of society.

Major Project-

Bretch (1948) claims in A Short Organum for the Theatre that society is unable to share a universal communication system so long as it is split into warring classes (cited in Hebdige, 1979, p15). Certain social groups experience different ideologies that sometimes can be opposed to the dominant’s class rules. Lefebvre (1971), claims that a society with objections and contradictions is to find expression within subcultures. Subcultures share a sign community that englobes different ideological discourses. The codes of a subculture follow a structure of values concerning every aspect of an individual’s life, such as practices, music preferences, or vocation. The style in subculture is, then pregnant with significance. Its transformations go ‘against nature,’ interrupting the process of ‘normalization’ (Dick Hebdige,1979). In that sense, fashion comes into the picture as a form of unity and belonging contradicting the social norms. Punk culture is a clear visualisation of a social movement to provokes the social order. However, in the 21st century, the hierarchy of values of subculture is partially defined by the mass media and digitalization. As already mentioned before, Hebdige’s definition of subculture only applies to the first stages of Streetwear before the movement was usurped through mass consumerism.

-Literature Review

KEY

IN D N I F

Fashion is a form of non-verbal communication that constructs social interaction between individuals and cultural groups. Cultural groups share values, interests and preferences. In the case of subcultures, style is filled with significance going â&#x20AC;&#x2DC;against the normâ&#x20AC;&#x2122;.

Figure 4: Highsnobiety, 2017.

SYMBOLIC CONSUMPTION Observing how subcultures form communities sharing values, ideas, and aesthetics. Hebdige (1979) also denotes that subcultures are the prime example of expressing identity through consumption. Possessions are a form of self-identity. Douglas and Isherwood (2002) define the meaning of consumption as not only satisfying human needs but a constant search for symbolic meaning established by cultural norms. Material possessions carry cultural meaning, and it is a tool to make and maintain social relationships. Man needs goods for communicating with others to create a sense of what is going on around himon around him. The communication can only be formed in a structured system of meanings. (Douglas and Isherwood, 2002). H. Dittmar (1992) coincides with the previous authors in ‘The social psychology of material possessions’ claiming that the symbolic significance of our material possessions attributes to one’s identity.

Belk (1987) compares possessions with the sense of self claiming that a man’s self is the sum of all that he calls his, including his body, objects, assets, achievements, and relationships. According to Belk, possessions are imposing individual identities, and individuals’ identities are imposing their possessions. The loss of material possessions could be considered a loss of self and a decline in the individual’s identity. Society leads the population to be invested in their possessions by creating a perception of the importance of ownership. (Belk, 1987) Csikszentmihalyi and Rocheberg-Halton (1981) suggested the investing of self in objects as a form of ‘physic energy.’ The self invests time, effort, and attention to an object that has grown or emerged from the self. These possessions are a tool to classify members into society. Thorstein Veblen (1998 introduced conspicuous consumption in his book ‘The Theory of the Leisure Class’ claiming the consumption of products and luxury goods as a tool to conform the consumer himself by displaying wealth instead of covering basic human needs.

Major Project-

IDENTITY CONSTRUCTION In the 19th century, the market place was based in differentiating one’s products from other brand’s based on features and benefits. Nevertheless, in today’s market place, experiences and meaning have become the key players. Consumers condition their choices based on symbolic attributes, what does the product represent and which tribe will the customer be joining (Marty Neumeir, 2005) ‘Rather than a single product or brand representing all of one’s self-concept, only a complete ensemble of consumption objects may be able to represent the diverse and possibly incongruous aspects of the total self’ (Belk, 1987). Nevertheless, some specific brands are carriers of high levels of meaning, symbolism, personality, and status; therefore, individuals develop their identities through brands while joining a community who share values and aspirations. These communities are imposed by general modernist structures such as age, class, gender, and so on and form consumer tribes who follow the same patterns in a concrete marketplace. However, consumers pursue individuality and uniqueness despite desiring to be a part of a group; therefore, they adopt a collective identity through consumption (Rob Walker, 2008). Marty Neumeier compares the relationship within a customer and a brand as enrolling into a membership program. Companies sell products, but customers join brands. The symbol of the brand becomes the product that will enrich a series of based values into a customer’s identity. (Marty, Neumeir, 2005).

-Literature Review

CONSUMPTION AS A GROUP MEMBERSHIP Postmodern society has allowed new consumption patterns concerning behaviours, ownership, consumers, or meaning. Muñiz and O’Guinn (2001) interpret communal consumption as ‘community members emphasizing some consumption- e.g., food, drinks, gifts- as a part of a celebration or tradition.’ The concept of a subculture of consumption refers to ‘a distinctive subgroup of society that self-selects based on a shared commitment to a particular product class, brand, or consumption activity’ (Schouten and McAlexander, 1995). A subculture of consumption shares common values among its members but also the marketplace. All participants negotiate the meaning. At the first stages of the subculture, it suffers from obsessive fan behaviour and tribal reconnection with history and tradition. Later on, growth increases diversity, and the underlying fundamental values stated in the first stages become disoriented by mass consumerism and media. Referring back to Hebdige’s definition of a subculture being against the norm, Goulding (2002) presents subculture as being moving expressions of self-identity and creative solidarity, rather than resistance against domineering forces in a soon to become a classless society. However, Cova, Kozinets, and Shanker separate the concepts of neo-tribes and subcultures. The authors claim the traditional tribe or subculture to be a historical tradition, bound by geography and has a unified identity. On the contrary, neo-tribes only exist for the duration of the ritual, assuming temporary roles, identities, and members. In subcultures, memberships are static and perceived as a way of life. However, in neo-tribes memberships are, allowing the individual to switch among different groups/brands.

Major Project-

KEY FINDINGS Consumers invest in material goods because those contain symbolic meaning that contribute to frame their identities. The loss of the material possession is a loss of identity. Said identification is pursued through a unified consumption.

-Literature Review

Figure 5: Science of the Drop, Matthew Billingtron 2017.

BRAND PERSUASION In this dissertation, it is crucial to analyse the consumption tribes that originated from the collective consumption process and how those developed bonds among brands and consumers. In 2001, Muniz and O’Guinn defined the brand community as a structured set of social groups shared by fans of a brand. As Belk detected, individuals need consumption to fulfill their identities and occupy and symbolise their social recognition. Consequently, people join communities to expand their individuality. ‘Paradox of group addiliation,’ which reinforces consumer’s individuality by accepting to be a part of the group (Atkin, 2004). According to Aaker (1991), brands construct a combination of identification and differentiation through their products. Brands add value to consumers by satisfying their desires. These consumers will later provide value to the brand by showing their loyalty and dependence. The establishment of a substantial group identity originates a brand cult.

Brands incentivise and persuade their consumers to develop a common emotional connection, often compared to a cult-like method. Said brand would become a focal point and aim for its fan base (Muniz and O’Guinn, 2001). The definition of a cult is challenging to provide. Howard Becker defines a cult as ‘a group embodying an individualistic search for ecstatic experience.’ (Campbell, 1977). The idea of a cult is translated into consumerism as the collective process of enriching and fulfill one self’s identity through brands that have created a way of life through their products and marketing strategies (Muniz and O’Guinn, 2001). Atkin (2004) created the concept of cult-brand, referring to a series of brands that have an active and loyal community of followers. A cult-brand is perceived as a religion; consequently, followers do not consciously declare themselves as members. The group identity goes beyond individual identity in consumption, instead is it incorporated as a way of life and thinking. Members feel connected within each other based on a shared consumption experience with a brand (Muñiz and O’Guinn, 2001). Wattanasuwan (2005) states that shared belongings and connection to the group also allocates the same values or material possessions. Members become dependent on the community and allow it to define their identity and purpose.

-Literature Review

KEY FINDINGS A brand cult-following expresses a lifestyle and it is commonly associated with niche markets and underground culture. The basis of a cult brand rotate around devotion and scarcity, but also customer experience and meaningful long-lasting relationships.

Figure 6: Illustration for Editorial Matthew Billingtron 2019.

THE BREAKTHROUGH OF DIGITALIZATION IN THE TRADITIONAL BUSINESS MODEL Kapferer and Bastien (2012) discuss in The Luxury Strategy how luxury brands approach the internet spectrum. Luxury and Streetwear brands want to maintain full control of their brand equity and exclusivity, which is being challenged by the digital sector. The internet and Web 2.0 mean free access, consumer power, and peer-to-peer communications, as well as the growth of e-retailers offering sales and discounts. However, e-commerce is allowing brands to display their products to a broader audience of potential consumers.

Technological innovation is a tool to make brands integral to the actual physical self to the point that brands and products work as the extension of the consumer, as an organism or limb. The internet can portray a branded experience and influence human existence (Raymond A. Nadeau, 2007). Groups of people join online to share information, opinion, experiences, and perspectives about products or services using local media. Colloquial or conversational media are online based applications that have allowed to share content in the form of text, pictures, videos, and audios (Brake, 2009). A. Nadeau (2007) states in his book Living Brands the importance of digital media for brands as well to surprise and be connected with the consumer in this new era. Social media, as an Internet extension, is also providing customers the ability to be connected with brands and other users. The phenomenon is considered a useful marketing tool in order to raise brand awareness. Marty Neumeir (2015), reinforces this statement by adding that digitalization is facilitating consumer-to-consumer interactions related to a brand while encouraging customers to rate and post their opinions.

-Literature Review

KEY FINDINGS Consumers tribes are connected through multiple technologies. Consumers will reinforce the image of the brand with personal opinions while reaching to a broader audience of potential

Figure 7: Kida Kudz for Pause Magazine, 2018.

DEMOCRATISATION OF THE LUXURY FASHION HOUSES Digitalization is a critical factor that contributed to the shift of the luxury sector, followed by consumer values and shopping behaviours. In the past, Okonkow (2009) stated that luxury brands were reluctant with their integration in the digital era (cited in J.Kernstock et al., 2017, p13). The co-creation and the rise of influencers in social media are obstructing to maintain brand equity and exclusivity (Hughes et al., 2016).

Nevertheless, the rise of a broader, younger, and more demanding audience has been followed by the development of online platforms such as WeChat that contributed to the rise of omnichannel strategies. According to the Luxury Institute’s 2019 Luxury Trends from the global expert network (Glen), companies need to increase the connection with their target audience to understand customer’s needs faster and have access to data about the customer journey. In order to adapt to consumers’ needs, user-centered digital experiences have evolved, such as gamification. This technological advance is defined by Deterdinget (2011) as ‘the use of game elements and game design techniques in a non-game context.’ According to Prussakov (2011), the concept was introduced as a marketing program in which a product or service obtains remunerations for every sale, visit, or subscription.

The Luxury Institute states the importance of 020 retail channels to improve brand loyalty through the user experience. Presently, luxury brands need to control the customer experience and journey of each customer in order to control of brand image (Lemon and Verhoef, 2016). Modernization and Globalisation have also contributed to the socialisation of luxury. ‘Product categories and lines have extended to reach to a wider market, not only high social classes but the middle-upper class’ (Kapferer and Bastian, 2012). New markets have emerged, such as Generation Y and Generation Z. Followed by the spending power and growing economies of Asian countries, East Asia is becoming the world’s largest brand-name luxury goods market (Wong & Ahuvia 1998) Traditionally, exclusivity, status, and quality were concepts associated with luxury. Luxury and non-luxury goods can be visualised according to functional, experimental, and interactional symbolic dimensions (Vickers and Renand, 2003). However, changes in consumer behaviour have led to the re-examination of the value of brand heritage and history. In the Luxury Institute’s annual 2019 State of Luxury Industry survey performed in seven main countries with affluent consumers and essential markets, ranked the importance of brand heritage and history lower than customer service, superior design and craftsmanship, and exclusive products.

KEY FINDINGS Consumers are giving a new definition to luxury and imposing their demands.

Streetwear denotes the same set of values as Luxury; scarcity, and exclusivity. Both business models share or have implemented complementary strategies such as limited stock and limited edited collections. Limited collections are fundamentally liked to brand exclusivity followed by a control of the brands’ advertising, product endorsement, control of price, and placement. Scarcity and limited edition collections incentivise the appeal of the brand (Okonkwo, 2009). The theoretical research aimed to identify the key factors that can be recognised as crucial change factors in the evolution and growth of the streetwear movement and behaviour change initiatives. Streetwear has advanced along with the socialisation of the luxury industry. For this reason, it is impossible to declare the implementation of streetwear into luxury and vice versa; instead, it has been a win-win situation for both.

DATA RESULTS

Figure 7:Tyler the Creator for GQ Style, 2018.

EXAMINING CONSUMER COLLECTIVE BEHAVIOUR: BRAND MEANING

STREETWEAR AS A SUBCULTURE The birth of Streetwear is unclear, and it varies from different locations and dates. Nevertheless, skate and surf subcultures were emerging during the ‘90s in Southern California and Hip-Hop in New York, followed by a series of niche brands that to this day are considered Streetwear. The movement allowed the creative underground groups to share a series of values and desires based on clothing and accessories that spoke a specific language. The clothing were emblems of memberships of a worldwide secret cult club. David Fischer (2018) in The Incomplete: Highsnobiety Guide to Street Fashion and Culture, claims the evolution of streetwear alongside with sneaker culture. The origin of the movements is associated with subcultures such as hip-hop, punk, and skateboarding. However, the transcendental factor was managing to create a product or label that spoke to a cross-section of people with similar ideologies and values. As already mentioned in the Literature Review section, there is an open discussion about whether streetwear can be considered a culture or not. Alex Leach, the editor of Highsnobiety, associates streetwear ‘culture’ with other subcultures such as punk, goth or emo. Subcultures stand for shared values and ideologies that go against the dominant orders of society. Stating back to Hebdige’s (1979) definition of subculture as movements against the norms that place meaning to objects that are translated into a set of values and signs that express a form of resistance. On the contrary, Aleks Eror (2018) stated streetwear to be a market segment instead of a subculture since it is based on the consumption of sneakers and clothes. The movement has a unique and underground approach to fashion in which products conceive their meanings and rituals. Nevertheless, their values are not contradicting the mainstream society; therefore, it can only be considered a business model.

Major Project-

-Data Collection

By 1990, the label was reporting $17 million annually. By 2014, Stüssy had become the pioneer streetwear brand generating $50 million annually.

$17 million annually, by 1990

$50 million annually, by 2014

STÜSSY AS STREETWEAR PIONEER During the 80’s and in parallel with the rise of sneaker culture in New York, Shawn Stüssy was producing innovative performances surfboard shapes combined with graphic styles from punk, reggae and new wave music in California. In 1984, Stüssy co-partnered with Frank Sinatra creating a clothing label by Stüssy’s name. The apparel company was the pioneer in creating caps for destined to fashion brands, instead of sports teams. Stüssy was obtaining inspiration from the street while mixing those influences with this own designs and colour combinations.

Major Project-

In the first stages of the brand, Stüssy traveled to significant fashion cities where he met like-minded people in terms of music, fashion, and culture. In 1991, Stüssy was introduced into a concept store based in SoHo, New York and established by James Jebbia (founder of Supreme). During that decade, the SoHo area was occupied by bohemian artists and was not a shopping destination. Stüssy preferred full control of their image and became a very demanding client for multi-brand retailers. The company was worried about the danger in the value and image distortion of the brand due to the high demand and popularization in the city. However, Stüssy realised early on, the fact that customers were aware of the demarcation among high-luxury brands and culture brands like Stüssy. The high labels only spoke to a wealthy consumer, while culture brands addressed to a daring customer who combined high fashion with sports and casual apparel. Stüssy was the pioneer in mixing both. E.P Cutler, WeConnectFashion consultant and author of Streetwear Market 2015 Report, declared the combination of high fashion and casual style to be ‘a mashup of what was going on at the time, which was hiphop and surfwear.’ Frank Sinatra claimed ‘brand-first, revenue second’ in order to avoid becoming a brand that does not stand for anything. According to BoF (2015), the company controls each product that goes to each stocklist emphasising in maintaining brand consistency and image. The digital era has favored the establishment of the streetwear and Stüssy community among young consumption tribes. Younger generations have the power to discover alternative brands that speak to them instead of mainstream labels such as Hollister or Aeropostale. Sinatra adds, ‘What a young kid in Taiwan is wearing is not so far off from what a young kid in New York is wearing anymore

-Data Collection

SUPREME TALK UK/EU FACEBOOK GROUP

Figure 9: Google Trends Report displaying the worldwide interest in Supreme New York during the last five years, 2019.

106000 MEMBERS

CULT BRAND TRAFFIC Supreme was established in 1994 in New York

REVIEW SELL AND BUY PRODUCTS

as a skateboarding brand. The company has eleven stores in strategic locations; the first store was located in Lafayette street in downtown Manhattan. The founder, James Jebbia, net worth is over $40 million. Supreme sells apFigure 10: Supreme’s web traffic, 2019.

Figure 11: Traffic Search, 2019.

parel at mid-range prices to a target segment among the ages of 12 to 35. The company sold a 50% stake to the Carlyle Group for $500 million. Figure 1 displays a Google Trends report in which shows the global interest of Supreme during the last five years. The brand was placed

HIGHSNOBIETY, STREETWEAR BLOG, ANOUNCES NEW RELEASES

at its peak during the ending of 2017. The brand’s marketing strategy is based on scarcity and driving consumers into a frenzy based

Figure 12: Organic and Paid Keybords, 2019.

on what the product and brand represent. The

5000 AVERAGE/ SHARES

web traffic of the brand shows that their name is more popular and valuable than any of their

50 AVERAGE/ COMMENTS

products.The brand search has overlapped the product search. The mystery of the brand maintains the customers interested. The image of the brand is robust and does not require the company to invest in a paid marketing search BRIK RETAIL: $30 RESALE: $110

KATE MOSS 10TH ANNIVERSARY TEE RETAIL: $30 RESALE: $1000

ship in a group of people with shared beliefs and values. In social media, customers create traffic by sharing and posting on different platforms.

12,8M FOLLOWERS

The UPS of Supreme is the retail model ‘drop’ that consists in offering a controlled and re-

250.000 AVERAGE/ LIKES 1000 AVERAGE/ LIKES

engine. Supreme’s product signifies member-

duced supply of stock only available in strategic physical locations. Supreme releases/drop new limited collections every Thursday, which generSUPREME X NIKE DUNK LOW PRO SB RETAIL: $65 RESALE: $1500

Figure 14: Social Media Platforms Engagement Data, 2019.

SUPREME X JEFF KOONS SKATEBOARD DECK RETAIL: $180 RESALE: $16000

Figure 13: Supreme Resale Market in 2019.

ates massive traffic and social media coverage of the event. The drops are considered a ritual for the customers and congregating outside the store in the queue is seen as a ‘hang out’ and socialising opportunity.

BRAND SHIFT The perception of traditional luxury is shifting due to the internet, the rise of on-demand services and new emerging markets

“The idea of what is luxurious is changing; I think it’s about brand rather than luxury,” Lazaro Hernandez, cofounder of Proenza Schoul-

1 2 3 4 5 6 7 8 9

er, 2018.

OFF-WHITE

The brand collaborated with MR PORTER in the launch of reusable water bottles. The brand is a premium italian streetwear brand.

GUCCI

Gucci is adapting to the Streetwear business model by emphasising their digital strategies to create engagement and brand loyalty.

BALENCIAGA

Collaboration with Farfetch to launch a sustainable capsule collection. The actual creative director of the brand is Demna Gvasalia, coming from in the streetwear market.

VALENTINO

Valentino worked with Birkenstocks and customed Brie Larson’s dress for the Captain Marvel Premiere. The brand has been emphasising their sneakers collections.

FENDI

The brand announced and honored the death if creative director Karl Lagerfeld during the FW19 show. The brand has been playing with sporty aesthetics to attract younger customers.

PRADA

Gigi Hadid as the new face of Prada. The house announced the ending in markdowns.

STONE ISLAND

The brand collaborated with Supreme adaptating the ‘drop strategy’. The brand also release an accessory collection in collaboration with PORTER.

VERSACE

The company launched new Cross Chainer sneakers and a jewellery collection.

VETEMENTS

The brand recently worked with Reebok, Levi’s and Oakley. Vetements is one of the first casual/ streetwear brands positioned as luxury.

SAINT LAURENT

Creative director, Anthony Vaccarello collaborated with Travis Scott (rapper star) with the styling for the start’s new video. Demand increases in the monogram chain wallet. 40

12 13 14 15 16 17 18 19 20

NIKE

33% Increase in searches for sneakers in the last quarter of 2018. The brand worked on new football kits for 14 national teams.

BURBERRY

The brand claimed the en of use of unncessary plastic by 2025. Riccardo Tisci, creative director, is emphasing the streetwear aesthetics with the recent change of the brand logo.

MONCLER

Moncler collaborated with a Japanese designer, Hiroshi Fujiware, in the latest installment in the Genius project, dropped in March.

GIVENCHY

Clare Waight has been appointed creative director for kidswear and menwear.

DOLCE & GABBANA

The brand launched limited edition collections of sneakers dropping every month online.

YEEZY

The sneaker model ‘Adidas Yeezy Boost 700 V2’ sold out in minutes.

BALMAIN

Pop-up rental store in Paris offering night dresses.

PALM ANGELS

First debut of the brand in New York Fashion Week Fall 2019. The brand collaborated with Moncler releasing a pair of sneakers. Palm Angels is a skate-inspired brand.

ADIDAS

Adidas worked with Stella McCartney producing a new Carbon 3D printed shoe.

ALEXANDER MCQUEEN

Opening of a flagship store in London, a concept destinated to students.

Lyst Index of fashion’s hottestbrands of the first quarter of 2019 analysed online shopping behaviour, browsing and buying patterns of more than five million customers. Considering Google search data, conversion rates and sales, and social media engagement statistics. The ranking includes 20 brands, 6 of them operating in the streetwear market. OffWhite, a premium streetwear brand, is in the first position. The ranking gives an overview of the blurring boundaries within the luxury and streetwear brands. LUXURYSTREETWEAR MERGING

263

BILLION EUR GLOBAL SALES

Sales Increase

Figure 16: Bain & CO study about ‘luxury streetwear’, 2018.

Challenger brands are satisfying younger

consumers’

preferences

for novelty and technological advancements and reaching high lev-

COMPARISON OF LEGACY BRANDS AND CHALLENGER BRANDS

els of engagements. After the shift in traditional luxury consumption, established luxury brands adapting CHALLENGER BRANDS

to streetwear’s distribution methods

LEGACY BRANDS

and aesthetics.

Figure 17: Self-disruption in the fashion industry

Figure 15: The Lyst Index Q1 2019, Hottest Brands

EXAMINING CONSUMER COLLECTIVE BEHAVIOUR: PRODUCT MEANING LUXURY GOODS OVERVIEW 260 BILLION EUR SHARE OF GLOBAL PERSONAL LUXURY GOODS MARKET

GROWTH IN 2018

FASTEST GROWING PRODUCT CATEGORIES IN 2018

7% JEWELLERY

7% SHOES

Figure 18: The Bain & Co Luxury Market Overview

Report, 2018

SNEAKER CULTURE The sneaker segment constitutes a significant share of the streetwear market. Highsnobiety surveyed approximately 5,000 individuals among the ages of 16 and 35, who belonged to the streetwear audience, and 2,400 other consumers based in key markets. The survey proved that the majority were buying a way into a lifestyle or community. LVMH chief digital officer, Ian Rogers claimed the importance of the context and culture of the brand compared to the product.

Figure 19: Highsnobiety Survey Result about consumer preferences, 2018.

Major Project-

-Data Collection

HOTTEST MEN’S PRODUCTS Q2019 According to Lyst’s reports from the first quarter of 2019, footwear and accessories ranked in the first place. In women’s hottest products, the company declared the ‘ugly sneaker,’ specially the Gucci Ace sneaker, to be on the first search product of the year. Sneakers entirely dominated the index for men’s products. The sneaker market is growing exponentially, accounting for more than a million users talking about sneakers on social media during the first quarter of 2019.

NIKE REACT ELEMENT 87

ADIDAS YEEZY BOOST 700 V2

NIKE AIR FORCE 1

NIKE LDV WAFFLE X SACAI

NIKE REACT ELEMENT 55

NEW BALANCE 997

CONVERSE CHUCK TYLOR ALL STAR HIGH TOP

NIKE AIR MAX 98 X SUPREME

NIKE FEAR OF GOD 1

VEJA V-10

5 7 9

4 6

Figure 20: The Lyst Index Q1 2019, Hottest Brands

Major Project-

-Data Collection

ANALYSING THE IMPACT OF DIGITALIZATION IN CONSUMER BEHAVIOUR AND BRAND MANAGEMENT

ONLINE SALES OVERLOOK

10%

22%

OF GLOBAL LUXURY SALES

ONLINE MARKET GROWTH

27â&#x201A;¬

BILLION

Figure 21: The Bain & Co Luxury Market Overview

Report, 2018.

AGE GROUPS WHO ARE HAPPY TO MAKE PURCHASE OF $5K OR MORE ONLINE

Figure 22: 2016 State of B2B Procurment Study, Acuity Group.

Major Project-

-Data Collection

DIGITAL ENGAGEMENT ‘Young Adult Revealed’ conducted a global survey on approximately 12603 individuals among the ages of 18 and 24 to analyse daily online engagement numbers. The survey showed that 28% of individuals discussed a brand in a forum, and 19% added brand-related content to their homepage. Digital has become an essential strategy for fashion brands. L2 has positioned Gucci as the leading brand in the best performance in digital channels in 2016 and 2017.

Figure 23: When Streetwear and Social Media Hype Win Over Luxury Fashion, by Florine Eppe Beauloye. (Luxe Digital, 2017).

OMNI-CHANNEL

34% of online retail purchase are done on mobile devices

57% decrese in foot traffic in the past five years, but the value of every visit has trippled

By 2021, mobile sales are predicted to dominate online sales by 54% ($659 billion in sales)

67% of consumers admit to ‘digital window shopping’ on smartphones, accounting for 77% impulse purchases

90% of consumers say they use multiple devices to complete everyday tasks, while 40% say they use their mobile device to conduct research prior to making a purchase.

Users who have a negative experience in your mobile store are 62% less likely to purchase from you in the future

Augmented reality is becoming a major player. By 2020, it will account for $120 billion in sales Figure 24: Mobile Statistics for 2019.

Major Project-

-Data Collection

VALIDATING NEW EMERGING MARKETS

44% of luxury consumers in 2018

33% of global luxury sales

GENERATION Z

By 2025, both generations will account for 55% of the market and contribute to 130% to its growth

Figure 25: The

Bain & Co Luxury Market Overview Report, 2018.

GENERATION Y / MILLENNIALS

44% cite social media as a popular source for product inspiration

60% of millennials remain loyal to brands they purchase

37% have increased their use of social media for purchase-decision making

67% of millennials believe they have a responsability to share feedback with a brand about their experience

Almost 70% of Gen Z shoppers say that they have written reviews, 40% give feedback often

40% of millennials refer to online ewvires and testimonals before purchasing a product

Youtube is the most regularly used social media platform by Gen Z. 66% of Generation Z use Instagram compared to 40% of Millennials

Only 6% of millennials think online advertising is credible

2/3 are interested in purchasing via social media directly

Figure 26: Global Consumer Survey, 2017 / Generation Z. Accenture.

Major Project-

Figure 27: 45 Statistics on Millennial Spending Habits in 2019. Lexington Law.

-Data Collection

GENERATION Y AND Z

44% of luxury consumers in 2018

Chine luxury consumers will account for 40% of global luxury purchase in 2024

total share of consumption by 19 and 30 years old- will grow from 45% in 2016, to 53% in 2020 in China

68% of luxury consumers are between the ages of 18 and 30

Figure 28: Ogilvy

China report, 2019.

88% of Chinese millenials do online shopping more than once a week

CHINESE CONSUMER

By 2020, chinese online retail sales via mobile devices are estimated to reach one trillion dollars

During overseas luxury travel, Chinese consumers focus on shopping, allocating nearly 30% of their total travel budget to this activity

Chinese luxury consumers have given more importance to the role of word of mouth. 30% of luxury purchases are directly influenced by word of mouth

Major Project-

-Data Collection

EVALUATING LUXURY-STREETWEAR SHIFT

THE ‘DROP’ WHAT?

WHY?

HOW?

The retail concept was introduced in Japan and later popularised by streetwear brands like Supreme or Palace. The model is based on releasing controlled and limited runs of stock with the reduced distribution. The drops occur weekly or monthly. Recently, the attendance to the physical stores has been high forming long queues which resulted in

Consumers demands and desire for product novelty have increased. Social media has contributed to the shortening of the lifecycle of goods due to high visibility. The model increases the brand’s exclusivity while boosting desire and attracting the masses. Swave Szymczyk, global director digital and retail marketing at Adidas Original, states that humans want that

Supreme is a clear representation of the concept of drops. The brand operates on a wartime supply and demand curves. On the contrary, traditional brands increase manufacturing levels when the demand increase. Instead, Supreme ignores the demand and has a fixed supply to create scarcity and build a future for the brand image on digital marketplaces.

the introduction of a ticketing system, offering customers a check-in system to obtain a time slot to enter the store during the drop day.

thing that is unique and special and drops are a way to offer unique pieces to a limited amount of customers.

Figure 29: How streetwear brands play with the supply and demand

curves

Major Project-

-Data Collection

DIGITAL FEATURES

THE ‘DROP’ THE OUTCOMES The

implementation

the drop strategy in luxury houses was also due to the recent shift in some luxury business models based on See Now, Buy Now. This retail strategy created a season-less collection and offered the pieces showed in the runway on store a day after.

The brand has already implemented the drop strategy, which has generated high success. The collection ‘Bs series’ sold out in 24 hours and generated over $130,00 according to Tribe Dynamics. The ‘B series will release limited new stock monthly as a way to build consumer loyalty, scarcity, and purchasing panic.

Major Project-

The new creative director of the fashion house, Hedi Slimane, is aiming to implement seasonless collection introduced in the form of temporary pop-up stores and small capsule collections. The Spring/Summer 2019 collection will only be available in 16 stores worldwide for a limited time frame and with limited stock.

-Adidas and Nike launched mobile apps to announce and sell drops -Different mobile apps that alerts users of new releases and drop dates -Some apps carry out raffle contests for access to drops -Since the supply is limited and distributed in very strategic locations, re-sale platforms have emerged

The debut collection of the new creative director of Louis Vuitton, Virgil Abloh was sold in a pop-up in London for a week. The luxury house is implementing the drop model with an entire mainline collection.

Remo Ruffini, chief executive of Moncler, revealed that the next step for the brand was to make the first collection operate monthly. The new method is called ‘Genius, which started in June 2018 with the first ‘drop’ in collaboration with Japanese streetwear icon Hiroshi Fujiwara

-Data Collection

END OF OWNERSHIP

EXPECTATIONS ON CONSUMER APPETITE FOR NEW OWNERSHIP MODELS

The resale market is expected to reach $95 billion by 2025.

Figure 30: The Lyst Index Q1 2019.

Figure 31: McKinsey and Business of Fashion, The State of Fashion 2019

STOCKX

StockX is the major online reselling platform for sneakers, streetwear, and luxury goods. The platform connects buyers and resales. The products sold are exclusive and unique, and few supplies are available in the world. The company analyses the market value of each item and authenticates them. The platform is playing with exclusivity and gamification by giving users the chance to participate in buying the most exclusive products in order to avoid queues and ridiculous re-sale prices.

Major Project-

The collaboration among Supreme and Louis Vuitton became one of the most collections sold in the webpage. The prices of the collaboration were higher than the standard Supremeâ&#x20AC;&#x2122;s prices due to working with Louis Vuittonâ&#x20AC;&#x2122;s target market. The mark-ups were extraordinarily high and conditioned with the original prices and to resale prices. Some individuals invest in these high items in order to resale later and create profit. This re-sale

The lifecycle of products has, and consumers desire variety and novelty. Rental and resale business models lengthen the product lifecycle and contribute to more sustainable consumption. According to a survey conducted by McKinsey & Company discovered that 44% of respondents believe that the pre-owned business model will increase popularity in 2019.

-Data Collection

Figure 34: Supreme X Louis Vuitton Pop- Up Store Drop, 2017.

Figure 32: Supreme X Louis Vuitton Highest Mark Up, SotckX/ Higshnobiety 2017

Figure 33: Supreme X Louis Vuitton Highest Resale Premium, SotckX/Higshnobiety 2017

Figure 35: Street Style.

DISCUSSION AND CONCLUSION 52

The objective of this research was to deeply understand the sociological aspects and consumption patterns that contributed to the democratisation of streetwear. The focus of the study was to investigate the relation of the democratisation of streetwear, alongside with luxury, and how both have collided. Overall, the purpose was to obtain different perspectives of the merging to measure the effect on the industry. It was found that the main factors that contributed to the evolution of streetwear into the mass market were the recent socialisation of the luxury industry and digitalization. Nevertheless, the main result was recognizing that the power currently lies on the consumer’s hands. The first research question was to comprehend the impact of clothing on individuals identity. The

key finding showed claimed clothing the be portable of meaning; however, this meaning can be distorted conditioned by cultural backgrounds. The author emphasised the importance of the cultural background of the individual showing how individuals build their identity through clothing to be a part of a group. This group will showcase not only a style of clothing but also a collective ideology, values, and attitude. Hebdige (1979) defined this process as the creation of subculture, emphasising the communication of a shared set of values perceived through one’s clothes. In the first stages of research, the author cast doubt on the perception of streetwear as a subculture. It was found that a subculture is a movement that goes ‘against the norm’; however, the basis of streetwear could be considered a subculture but not the movement on itself. From collecting data regarding collective consumer behaviour concerning brand and product connotation, the author forms a conclusion. Streetwear is a by-product of skateboarding, surf, and hip-hop; those are the subcultural movement, per contra, streetwear is primarily based on a conception of consumption that transform products and into meaning.

Major Project-

It was essential to debate how the necessity to express one’s identity framed consumer’s purchasing decisions. Possessions carry symbolic meaning that builds one’s identity. Belk (1987) confirms a product or product to constitute all one’s self-concept. The author detected the evidence of consumers purchasing products for its meaning instead of its utility. This key finding also explains the desire of the consumer for social recognition. Belk (1987) claimed the use of consumption to fulfill an individual’s identities and symbolise their social recognition. The establishment of cult brands and their success demonstrates consumer’s devotion to brands as a form of religion. The author detected that brands position themselves as a cult by offering a way of life and an emotional connection to consumers that will be reciprocated. The data study examined Supreme as being the most influential brand for the younger generations, which has supported by online traffic measurements. The devotion to cult brands is being supported by the rise of digitalization in the new era. Marty Neumeier (2015) claims digitalization to be facilitating consumer-to-consumer interactions related to brands. In that sense, digitalization also contributes to the humanization of brands. As mentioned earlier, this project aimed to understand how streetwear has re-shaped many luxury houses. However, the author has focused the research on understanding the evolution of streetwear because this is a factor that contributed to the merging of both. It is difficult to determinate whether it was streetwear that pushed into the luxury market or if it was the luxury sector that appeared into streetwear. The author allocated the democratisation of luxury to go hand in hand with the democratisation of streetwear. Consequently, both collided because they culminated in the situation.

-Discussion

The factor that contributed to the socialisation of both industries was digitalization. In the data analysis, the author examined the impact of e-commerce in sales and emphasised the importance of omnichannel strategies. The study found that the best performing brands were the ones who had a robust digital strategy. The internet has allowed globalization to reach a high influence in the fashion spectrum; it has allowed the exclusivity of luxury to dissolve while becoming more accessible through e-commerce. This shift has potentiated the rise of emerging new targets. The author found that Chinese consumers will account 40% of global luxury sales in 2014. Besides, 68% of this segment are in between the ages of 19 and 30. These age segments correlate to Generation Y and Z that account for 44% of luxury consumers.

The data results confirmed the influence of consumer power that the Internet has breed and how brands are adapting to consumer’s preferences. The author endorses by studying how challengers brands are satisfying consumer’s preferences. The study conducted by McKinsey & Co compares the influence of challenger and legacy brands. The investigation demonstrates that the more influential brands are the ones that are adapting to younger consumer’s preference for novelty and technological advancements. These hype-driven brands are building social integration through their products while incentivising consumption as a form of group recognition. Challengers brands concentrate in speaking directly to the youth, breaking the boundaries while innovating and fulfilling consumer’s desires for novelty and creating a sense of belonging. Generation Y and Generation Z have new values and are consumers driven by the power of technology, which indicates that they are exposed to considerable amounts of information daily.

Major Project-

The author would like to emphasise the transcendence and importance of the luxury industry, implementing the drop strategy. The author allocated several brands that are not changing their whole value chain, the internal organization, and logistic. These new operations are speeding up the existing processes and shortening the lifespan of the product.

CONCLUSION In the opinion of the author, the merging of streetwear and luxury has been cultivated by all of the mentioned circumstances. Brands are desperately adjusting to consumers and crossing their boundaries to appeal to the younger generations. The definition of luxury is changing. As proved in by the author, consumers buy meanings, not products. The brands that will be success ding are the ones that can be relevant to young consumers. Luxury brands perceived affluence and the youthful and relevance energy of streetwear; while streetwear seeks the credibility and authority of Luxury brands. Both industries have shifted their boundaries and collided in equal measure. There is no need to further delimiting the boundaries and categorize of both industries. They are adapting towards the need for sand desires of youth.

The appointment of Virgil Abloh as creative director of Louis Vuitton introduced a new aesthetic and design code into the house, but it also means a monumental shift in the luxury sector; a black American designer with a street background, to be ascended to the top position in one of the most traditional and largest fashion houses. The future of the fashion spectrum is on the hands of customers that have been given full power through the internet.

-Discussion

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LIST OF FIGURES FIGURE 1: MATTHIEU VENOT (2018). Sugar High: Tyler the Creator Talks Cookies, Clothes, and Crying to Kanye’s “Violent Crimes”. [image] Available at: https://www.gq.com/story/tyler-the-creator-gq-style-fall-coverstory [Accessed 21 May 2019]. FIGURE 2: Robert Marshall (2019). Gully Guy Leo Stars In Debut Collection for Almost Always. [image] Available at: https://hypebeast.com/2018/4/gully-guy-leo-almost-always-spring-summer-2018-lookbook [Accessed 21 May 2019]. FIGURE 3: MATTHIEU VENOT (2018). Sugar High: Tyler the Creator Talks Cookies, Clothes, and Crying to Kanye’s “Violent Crimes”. [image] Available at: https://www.gq.com/story/tyler-the-creator-gq-style-fall-coverstory [Accessed 21 May 2019]. FIGURE 4: https://static.highsnobiety.com/wp-content/uploads/2017/04/13113237/facebook-groups-streetwear-1. jpg. (2019). [image] Available at: https://www.gq.com/story/tyler-the-creator-gq-style-fall-cover-story [Accessed 21 May 2019]. FIGURE 5: Matthew Billingtron (2017). Science of the Drop. [online] WWD. Available at: https://wwd.com/menswear-news/mens-retail-business/supreme-drops-sneakers-streetwear-10897249/ [Accessed 21 May 2019]. FIGURE 6: Matthew Billington (2019). No name. [image] Available at: http://www.matthewbillington.com/ muse-magazine/lq6xprg0yz6mqhsui8bgxfln4g2zf4 [Accessed 21 May 2019]. FIGURE 7: JOEL SMEDLEY (2018). PAUSE MEETS: Kida Kudz. [image] Available at: https://pausemag. co.uk/2018/11/pause-meets-kida-kudz/ [Accessed 21 May 2019]. FIGURE 8: MATTHIEU VENOT (2018). Sugar High: Tyler the Creator Talks Cookies, Clothes, and Crying to Kanye’s “Violent Crimes”. [image] Available at: https://www.gq.com/story/tyler-the-creator-gq-style-fall-coverstory [Accessed 21 May 2019]. FIGURE 9: Google Trends (2019). Supreme Global Search (Last five years). [image] Available at: https://trends. google.com/trends/explore?cat=185&date=today%205-y&q=Supreme [Accessed 21 May 2019]. FIGURE 10: Wilpert, C. (2019). TRAFFIC SOURCES SUPREME USED TO BUILD IT’S CULT-LIKE FOLLOWING. [image] Available at: https://sumo.com/stories/supreme-marketing [Accessed 21 May 2019]. FIGURE 11: Wilpert, C. (2019). THE LIMITED SUPPLY METHOD TO CREATING VIRAL CONTENT AROUND YOUR BRAND WITHOUT A BLOG. [image] Available at: https://sumo.com/stories/supreme-marketing [Accessed 21 May 2019].

FIGURE 12: Wilpert, C. (2019). THE LIMITED SUPPLY METHOD TO CREATING VIRAL CONTENT AROUND YOUR BRAND WITHOUT A BLOG. [image] Available at: https://sumo.com/stories/supreme-marketing [Accessed 21 May 2019]. FIGURE 13 : Created by the author and Wilpert, C. (2019). RESALE PRICES. [image] Available at: https://sumo.com/ stories/supreme-marketing [Accessed 21 May 2019]. FIGURE 14: Created by the author and Wilpert, C. (2019). ONLINE ENGAGEMENT. [image] Available at: https:// sumo.com/stories/supreme-marketing [Accessed 21 May 2019]. FIGURE 15: Created by the author (2019). The Lyst Index Q1 2019. [image] Available at: https://www.lyst.com/thelyst-index/2019/q1/ [Accessed 21 May 2019]. FIGURE 16: Created by the author (2019). The Future of Luxury: A Look into Tomorrow to Understand Today. [image] Available at: https://www.bain.com/insights/luxury-goods-worldwide-market-study-fall-winter-2018/ [Accessed 21 May 2019]. FIGURE 17: Source: McKinsey analyses, based on Instagram data (2018). https://www.mckinsey.com/industries/ retail/our-insights/self-disruption-in-the-fashion-industry. [image]. FIGURE 18: Created by the author (2019). The Future of Luxury: A Look into Tomorrow to Understand Today. [image] Available at: https://www.bain.com/insights/luxury-goods-worldwide-market-study-fall-winter-2018/ [Accessed 21 May 2019]. FIGURE 19: Highsnobiety (2018). What drives desirability of a new luxury product?. [image] Available at: https:// qz.com/quartzy/1498824/highsnobiety-survey-explains-why-people-spend-500-on-sneakers/ [Accessed 21 May 2019]. FIGURE 20: Created by the author (2019). The Lyst Index Q1 2019. [image] Available at: https://www.lyst.com/thelyst-index/2019/q1/ [Accessed 21 May 2019]. FIGURE 21: Created by the author (2019). The Future of Luxury: A Look into Tomorrow to Understand Today. [image] Available at: https://www.bain.com/insights/luxury-goods-worldwide-market-study-fall-winter-2018/ [Accessed 21 May 2019]. FIGURE 22: 2013 State of B2B Procurement Study, Acuity Group (2013). Age groups who are happy to make purchase of $5k or more online. [image] Available at: https://www.raconteur.net/wp-content/uploads/2013/10/dash-2320.jpg [Accessed 21 May 2019]. FIGURE 23: Infographic created by the author about mobile statistics. (2019). [image] Available at: http://ttps:// www.pixelunion.net/blog/mobile-ecommerce-stats/ [Accessed 21 May 2019].

FIGURE 24: Luxe Digital (2018). Luxe Digital measured ‘Search Interest’ for Gucci between 1st January 2016 and 31st March 2018. [image] Available at: https://luxe.digital/digital-luxury-reports/when-streetwear-andsocial-media-hype-win-over-luxury-fashion/ [Accessed 21 May 2019]. FIGURE 25: Created by the author (2019). The Future of Luxury: A Look into Tomorrow to Understand Today. [image] Available at: https://www.bain.com/insights/luxury-goods-worldwide-market-study-fall-winter-2018/ [Accessed 21 May 2019]. FIGURE 26: Infographic created by the author with Accenture’s source. (2019). [image] Available at: https://www. accenture.com/_acnmedia/PDF-44/Accenture-Retail-Customer-Journey-Research-2017-Infographic. pdf#zoom=50 [Accessed 21 May 2019]. FIGURE 27: Infographic created by the author based on 45 Statistics on Millennial Spending Habits in 2019. (2019). [image] Available at: https://www.lexingtonlaw.com/blog/credit-cards/millennial-spending-habits.html [Accessed 21 May 2019]. FIGURE 28: Created by the author with Report on Remaining Relevant to New Luxury Consumers. (2019). [image] Available at: https://lbbonline.com/news/ogilvy-china-publishes-report-on-remaining-relevant-to-new-luxury-consumers/ [Accessed 21 May 2019]. FIGURE 29: How streetwear brands play with the supply and demand curves. (n.d.). [image] Available at: http:// justinsgage.com/topics/streetwear-market.html [Accessed 21 May 2019]. FIGURE 30: Created by the author (2019). The Lyst Index Q1 2019. [image] Available at: https://www.lyst.com/thelyst-index/2019/q1/ [Accessed 21 May 2019]. FIGURE 31: McKinsey and Business of Fashion, The State of Fashion 2019 (2019). EXPECTATIONS ON CONSUMER APPETITE FOR NEW OWNERSHIP MODELS. [image] Available at: https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/The%20State% 20of%20Fashion%202019%20A%20 year%20of%20awakening/The-State-of-Fashion-2019-final.ashx [Accessed 21 May 2019]. FIGURE 32: StockX and Highsnobiety (2019). Supreme x Louis Vuitton Highest Mark Up. [image] Available at: https://www.highsnobiety.com/2017/08/16/supreme-x-louis-vuitton-resale-prices/# [Accessed 21 May 2019]. FIGURE 33: StockX and Highsnobiety (2019). Supreme x Louis Vuitton Highest Resale Premium. [image] Available at: https://www.highsnobiety.com/2017/08/16/supreme-x-louis-vuitton-resale-prices/# [Accessed 21 May 2019]. FIGURE 34: Highsnobiety (2017). Louis Vuitton x Supreme Pop-Up Shop. [image] Available at: https://www.highsnobiety.com/2017/07/12/louis-vuitton-supreme-pop-ups-not-cancelled/ [Accessed 21 May 2019]. FIGURE 35: Terence-Sambo (2019). [image] Available at: https://pausemag.co.uk/wp-content/uploads/2019/01/Terence-Sambo-LFWM-Fire-Fit-1-1-1.jpg [Accessed 21 May 2019].