Chen JunFeng-portfolio

po r t fo l o Fasion management Portfolio 2021

i

JUNFENG CHEN

Executive summary

CHAPTER 1

About AR and its common applications

• The Definition of Augmented Reality Three major technical points of AR

The combination of Augmented Reality and Fashion industry Table of content

• The Application of Augmented Reality today AR kit developed by apple Filters from Snapchat

CHAPTER 2

The relationship between AR and fashion

• Mixed fashion show in Central Saint Martin（CSM） • Inspiration from balenciaga

CHAPTER 3

Targeted questionnaire survey and interviews

• The purpose of survey and interview • Five core questions in the questionnaire survey • Conclusions from the questionnaire survey • Conclusions from One-on-one interviews

Conclusion

Recommendation

Reference list

Appendix

Alexander McQueen Alexander McQueen

1999 S/S

The main methodology of this report: first, through primary researches, interviewing targeted consumers who love (luxury or designer) fashion brands to delve into their interview records, also through a questionnaire survey, big data are collected tosummarize and analyze the consumption habits of mass consumers, as well as insight into their interest in emerging offline shopping patterns. Second, through secondary research, reading relevant books and browsing web materials, find out the application of AR in other fields, and discuss the defects and feasibility of AR in the fashion industry.

2006 F/W

The main purpose of this report is to find a way to integrate augmented reality(AR) technology with fashion industry by investigating and discussing AR technology and the consumers’ demand for fashion brands. I hope, in this way, the fashion industry can have a more futuristic offline shopping mode to improve the shopping experience, and fashion brands (luxury or designer brands) can better convey their ideas.

Givenchy 1999 F/W

SUMMARY

We can see the importance of technology to the advancement of the fashion industry, from the controversial, fearless, rebellious, talented fashion designer Alexander McQueen's works to Iris Van Herpen, a contemporary Dutch designer who uses 3D printing technology to present emerging clothing (McQueen Documentary and Iris Van Herpen’s Instagram account). So forth, there are a lot of designers who also use different technological means and their amazing creations inspire my interest in innovation brought by technology.

I believe that the combination of the fashion industry and technology is the key to driving all expression of future fashion, whether it is to express the connotation of fashion brands or views and emotions of designers or to bring transcendent sensory experience to audiences and customers.

Iris Van Herpen 2019 F/W

EXECUTIVE

The report is divided into three chapters. The first chapter will discuss, what it is AR, its technical core and some application in different fields. The second chapter will discuss some applications in fashion industry which have already begun to have relevant application precedent. The third chapter focuses on the interview records of targeted luxury consumers and the big data collected through questionnaires, the main purpose of this chapter is to gain insight into the feasibility and value of AR combined with fashion marketing.

From the official website of Magic Leap

CHAPTER 1

About AR and its common applications

Three major technical points of AR Virtual Reality Fusion Display: The process is to first by cameras and sensors for data sampling of the real scene, and the data passed into the processor for analysis and reconstruction, and then through the AR head-mounted displayer, smart mobile devices, cameras, gyroscope, sensors and other accessories, the change data of the user's spatial position in the real environment is updated in real time, to obtain the relative position of the virtual scene and the real scene, align the coordinate system, conduct the fusion calculation of the virtual scene and the real scene, and present the final composite image to the user.

The Definition of AR AR is an interactive experience of a real-world environment where the objects that reside in the real world are enhanced by computer-generated perceptual information, sometimes across multiple sensory modalities, including visual, auditory, haptic, somatosensory and olfactory.

(Post, 2016)

Magic Leap

Human-computer Interaction: Users collect control signals through AR headmounted displayer, or interactive accessories on smart mobile devices, such as a microphone, eye movement tracker, infrared sensor, camera, sensor and other devices, and carry out corresponding human-computer interaction and information update to achieve interactive operation of AR. 3D Tracking: Three-dimensional tracking is the core of AR technology, that is, taking twodimensional or three-dimensional objects in the real scene as markers, matching virtual information with real scene information, that is, the position, size and movement path of virtual objects and the real environment must be perfectly matched to achieve the point that virtual reality is generated. (Li, 2018)

The Application of Augmented Reality today Although AR is still in the development stage, there are lots of fields have already integrated with AR. Now we can see the application of this technology in some games, we can see the IKEA sofa in the corner of the home on the mobile phone screen, and students can see the simulated solar system suspended on the ceiling of the classroom through the iPad in the geography class, etc. The following examples can fully illustrate that AR is not far from our life, and it can better serve mankind.

AR kit developed by Apple

Games from Apple

In June 2018, Apple held an event. With the release of IOS 11, AR Kit was also made public. During the event, the staff showed how to measure the length, width, height and volume of objects using the iPhone X as the carrier, and played a lego game on a white table. The AR kit page on apple's website reads: “what if there were no boundaries between the virtual and the real world? You can sit between the stars of the universe and listen to teachers, you can see with your own eyes every scenes of history… （Apple, 2020）” Apple intends to make people's study, work, entertainment and life more interactive with the world through AR technology, which is a more efficient way to help humans understand the world.

Filters from Snapchat Snapchat is probably the most common AR app around people. Often can see many netizens share on social media platforms their pictures and interesting videos using Snapchat filter. It would be like: a lady's facial features are recorded and calculate by snapchat and then on the screen the lady become a bearded man, even Snapchat can help those curtilage home people who do not want to make up complete virtual makeup and publish on their social platform. Besides, Snapchat technicians update the types of filters every day, giving users more of AR experience. Images are becoming a new language, and with more photo-taking apps like Snapchat, we can express ourselves more often and more fully.

(36kr, 2018)

Snapchat

CHAPTER 2

The relationship between Fashion and AR There are always some scenes in my mind Shimmering, the melted metallic silver rings that like liquid mercury swirl around the fingertips; A cluster of flying butterflies dancing behind the girl who wears a beautiful floating gauze skirt, feet mist-shrouded; Even a dress that grows on its own on the walls and ceilings of a show, with the rhythm of music, the first prototypes of these ideas could only be shown in the movies through special effects. In real life, we can't create imagined metal lines that sway around the body; It’s impossible for insects to have human-like intelligence, let alone for fabrics to divide and grow like cells. So I look at the emerging technology AR which have applied in various fields, hope that through the use of this technique to acquire the key breakthrough and achieve those impossible conceptions what I have mentioned above.

Instagram: creepyyeha

Mugler 1995 Fall

Mixed fashion show in Central Saint Martin Central Saint Martin 2019 MA

CSM has always played the role of "design disruptor", cultivating "concept designers" at the top of the pyramid, who may not be directly the engine of commercial profitability, but are often design milestones and capable of being a source of inspiration for other designers (YIHANG_CHINA, 2019). In February 2019, Central Saint Martins held its first-ever AR fashion show, which provided viewers with additional visual effects by giving them the Magic Leap One. "I put on my glasses and looked up and suddenly there was a flash of lightning and a crash on the left side of my glasses. When I stood up, the lightning got bigger. Next, there were floating bones and a roaring tiger above the model's head." (Tencent, 2019) Said One viewer who was lucky enough to wear the Magic Leap One. It is understood that the visual effects of these mixed realities are extremely spectacular. The show witnessed and hinted at the design highlights of Gerrit Jacob, “To me , the visual context and the surroundings of the boys in the clothes are always very very important so to have the opportunity to have that become three - dimensional was quite extraordinary,” Jacobs explains. “Doing the mixed reality runway took a lot of planning & preparation so while I very much enjoyed that process I felt that after this high-budget super-produced show it made sense to go in an entirely opposite direction.” (Jacob, 2019)

Central Saint Martin 2019 MA

Inspiration from Balenciaga

Balenciaga 2019 S/S Ad

Balenciaga 2020 F/W

I believe that AR technology will eventually be adopted in the fashion industry, reflected in the new show mode and brand operation mode. I have observed that balenciaga is a very suitable brand for AR technology as a strategy. The reason why I think of the Balenciaga brand can have high degree of integration with AR is because whether the fashion styling of Balenciaga in recent years has made good use of a series of diablo style; punk style; gothic style; exaggerated shoulder pads suit jacket with a sense of cool beauty; long cloaks skirts with a sense of mystery, or the audiences have been placed in lava displayed by huge screens; the natural landscape covered with dark clouds; even the models walk on water with a sense of the future and a sense of doom. It can be seen that the AR application is valuable in improving the sensory and interactive experience of the products of brands. One of Balenciaga campaign impressed me most: In 2019, Balenciaga tapped artist and filmmaker Jon Rafman to create a playful campaign film to promote the label’s boundarypushing Summer 2019 offerings, The nearly-2-minute video is done in the style of fan-made Matrix movies, complete with low-fi special effects. The campaign video is silent, save for the copyright free sound effects and a pumping ’90s dance track.

Balenciaga-clad models rollerblade, sprint and battle their way through a city, laboratory and intentionally-amateurish green screen set, launching lasers and portals all the while. Though a branded black handbag is the subject of the struggles, all of the characters sport the seasonal collection’s key pieces, including sequined Eiffel Tower shirts, boxy blazers, an all-black Track Sneaker and those unmistakable tiny shades, finally at home amidst piles of retro computers and rooftop fights (Silbert, 2019). Imagine how exciting it would be to be able to get away from special effects and use AR to see these virtual things with the naked eye.

CHAPTER 3

Targeted questionnaire survey and interviews The purpose of the survey With the full use of AR technology, when the audience and customers are enjoying the latest products the 3D simulation models prepared in advance will be presented on the products. Through this virtual visual experience, the sublimation of the visual effects of the products will be achieved and a deeper discussion will be reached. I believe this can directly catch the eye of the audience and consumers, improving their interaction experience with the product, and prompting them to want to know more, thus indirectly stimulating the consumption desire of consumers. Especially for high-end brand consumers, most of them intend to have a much deeper understanding of a product and a better shopping experience. To confirm this, I conducted first-hand research firstly, targeted at consumers who are interested in luxury brands or designer brands. Targeted consumers from different age groups, educational backgrounds, majors, income levels and sensitivity to fashion. Besides, five representative consumers (please find the transcript in the appendix) were specifically interviewed. Finally, summarize consumers' feedback on the combination mode of AR and fashion industry, draw key conclusions, and insight into the value of this proposal.

Note: The respondents answered the questions by means NPS, which was divided into 10 grades (out of 10). The higher the rating, the more interested the consumers were in the proposal.

Five

core questions in the questionnaire survey：

Are you keen on fashion?

Having a fashion-conscious consumer is important for a luxury and designer brand, he or she will be following the trends of the season. When AR is used in the fashion industry, loyal consumers will want to experience it.

How important are the brand concepts and product design inspirations of luxury and designer brands to you?

If the brand concept and product design inspiration of luxury and designer brands are important to consumers, then communicating them through AR technology is a valuable strategy.

To understand the brand concept and product design inspiration of luxury brands/ niche designer brands, do you want to understand it through

passive ways

(explained by others or online information accidentally seen)

or active ways

?

(through music, pictures and videos)

The mode of combining AR technology and fashion industry almost needs to be felt by consumers from the perspective of the first person, that is, the mode of active understanding. This proposal makes sense if consumers are willing to take it actively by themselves.

As a consumer of a luxury or designer brands, when you hesitate to buy a brand product, you may strike a chord when you understand the story and the creative motivation behind it. How determined are you to buy it without

overshooting your budget?

An insight into whether consumers are willing to pay for brand ideas and product design inspiration, and whether ways to incorporate AR technology are valuable strategies.

What kind of experience do you think it is to learn the design inspiration and concept of a product through AR technology when shopping offline for luxury/ niche (designer) brands?

The ultimate goal of this proposal is that AR technology combined with the fashion industry can stimulate consumers and possibly lead to their consumption.

Conclusion

Conclusions from the questionnaire survey and One-on-one interviews Average Average NPS NPS10 NPS10

8.578.22 8.57 8.22 88

8.43 8.43 7.86 7.71 7.86 7.71 7.25 7.19 77 6.96 7.25 7.19 6.76 6.5 6.716.76 6.696.71 6.96 6.55 6.69 Average NPS 6.55 6.5

NPS7.5

NPS7.5 NPS10

8.578.22

8 NPS5

NPS5

NPS5

7.86

6.696.716.76

6.55

6.5

The model AR technology combined with fashion industry is suitable for the high - end consumer market (luxury goods and designer brands).

8.43

7.71

7.25

7.19

NPS7.5

7

6.96

NPS2.5

NPS2.5 NPS2.5

NPS0

NPS0

NPS0

Q2 Q1

Q1

Q2

Q3

Q1

Q4

Q5

Q2

Q3

Q4

Q3

Consumers who like to buy luxury goods and designer brands

Consumers of luxury goods and designer brands spend an average of 10,000 RMB per month

Q4

Q5

Q5

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“The combination of the fashion industry and technology is the key to driving all expression of future fashion” as I said. The combination of AR technology and the fashion industry is a very good proposal, and we have seen some technologies have played a great role in the history of product evolution. More and more of the areas we see today are AR integration: from apple's long-term approach to AR in recent years to the first AR fashion show in CSM. Currently, growth in luxury sales is driven by wealthy millennials and generation Z, who have different expectations, know more about emerging technologies than others and seek a personalized shopping experience. When they can afford to spend, sophisticated AR technology is a plus for the shopping experience.

Recommendation The combination of AR and the fashion industry makes the shopping experience better and more personalized, which can stimulate consumption and is in line with the psychological needs of the millennials and generation Z of major consumers of luxury and designer brands and. The application of AR in fashion products is limited, but it can be used in the spatial design, such as co-existing with shop installation art, which can create more visual effects in the space. In an era when most people shop online, such technology can attract consumers to experience offline shopping. Nowadays, AR technology has been well applied in the beauty industry through the form of network and app. Application in offline shopping requires a more perfect AR ecosystem and network speed to present a combination of the fashion world seamlessly, which requires a large amount of investment.

Reference list Post, H, The Lengthy History of Augmented Reality, 2016, accessed on 20th Feb, 2020.

Li, J, Principle and application of AR augmented reality technology, 2018, accessed on 21th Feb, 2020.

Apple, Augmented reality, 2020, [online], https://www.apple.com.cn/ios/augmentedreality/, accessed on 2nd Mar, 2020.

36Kr, Snapchat’s ambition: to build an AR - based computing platform, 2018, [ o n l i n e ] , h t t p s : / / b a i j i a h a o . b a i d u . c o m / s ? id=1598959122139883352&wfr=spider&for=pc, 2018, accessed on 29th Feb, 2020.

YIHANG_CHINA, 2019 CSM MA menswear and womenswear graduation show, 2019, [online], https://www.sohu. com/a/298618017_577713, accessed on 15th Jan, 2020.

Tencent digital, Everyone can feel the charm of the catwalk up close with the AR element in the fashion week, 2019, [online], https://new.qq.com/omn/ 20190215/20190215A0MH53.html, accessed on 15th Jan, 2020.

Toner, P, Ten meets Gerrit Jacob, the CSM graduate exploring the wonders of bleak suburbia, 2019, [online], https:// www.10magazine.com/menswear/ten-meetsgerrit- jacob-csm-graduate-designer/, accessed on 18th Jan, 2020.

Silbert, J, Balenciaga summer 2019 collection campaign file, 2019, [online], https:// hypebeast.com/2019/2/ balenciaga-summer-2019-collection-campaign-video, accessed on 15th March, 2020.

Appendix Interview Record Interviews 1 Gender： Female Age：20 Occupation：University students Q1: Do you know anything about AR? A: A little bit. Is it the kind of fusion of the virtual and the real world.

Q2: How much did you spend on dress-up items (cosmetics, clothes, accessories, bags, shoes… etc.) on average per month, how often did you shop, and how much do you value these accessories?

A: The clothes you should buy the most are about five thousand to six thousand a month. Winter clothes are more expensive. I buy one or two bags a year.

Q3: Do you buy clothes, bags and skincare online or offline?

A: Basically, online.

Q4: Why do you prefer to shop online?

A: Convenient, having a discount, more choices.

Q5: Have you ever shopped offline? What is the reason why you sometimes choose to shop offline?

A: Yes, I like the experience of going out and shopping. Shopping offline is because I don't want to wait.

Q6: What luxury and designer brands do you buy most often? How much is the total price of each purchase?

A: MCM, McQueen, Balenciaga and Givenchy, Yves saint Laurent are the most common, basically no more than 10,000 RMB per time.

Q7: If your income or wealth increases in the future, will you buy more expensive luxury goods and more frequently?

A: Sure. I want to be different every day.

Q8: If you are shopping for a MCM backpack at an offline counter, and the salesperson introduces you to a new type of backpack that will be launched this year, how it will be made, the fabric it will be made from, etc., and it may even tell you the story of the origin of the product, the inspiration for the design.

How much would you like to listen to them? Are you interested in the behaviour of the salesperson?

A: Yes, but it should be appropriate, appropriate service.

Q9: When shopping for luxury products, in addition to the appearance design, to what extent are you interested in the materials used, the level of craftsmanship, the motivation, and the characteristics of the products?

A: The quality of the material is determined by the craftsmanship and level of the material, and the inspiration determines my subjective view on them. They are both very important.

Q10: As a consumer of a luxury or designer brands, when you hesitate to buy a brand product, you may strike a chord when you understand the story and the creative motivation behind it. How determined are you to buy it without overshooting your budget?

A: Eighty percent. If the service is nice, that's one hundred percent. Especially jewelry.

Q11: To understand the brand concept and product design inspiration of luxury brands/niche designer brands, do you want to understand it through passive ways (explained by others or online information accidentally seen) or active ways (through music, pictures and videos)?

A: Active ways, it depends on whether I like it or not.

Q12: Do you think that having this kind of knowledge of the culture of the brand and the craftsmanship and the content of the product will sometimes give you the confidence to shop and talk to your friends? Is it a form of everyday stress (like accidentally mispronouncing a brand name while talking to a friend)?

A: It's normal to have cognitive deficits. It can be unconfident and awkward, but not stressful.

Q13: Why do you like active ways to understand a product? Have you ever had the experience of understanding a product while shopping offline?

A: I think one of the most common active ways is the video of a product, I will generally buy a product because of the video.

Q14: If one day, you like a piece of jewellry, and through understanding the source of its theme inspiration, what kind of experience do you think this is?

A: A perfect shopping experience.

Interview 2 Gender: Female Age: 22 Occupation: Chengdu Budapest coffee shop manager Space design connoisseur

Q1: How much do you know about AR? A: I haven't had much know about AR, but I have seen some artists' works presented by AR in some exhibitions. I'm interested in this technology.

Q2: How much did you spend on dress-up items (cosmetics, clothes, accessories, bags, shoes… etc.) on average per month, how often did you shop, and how much do you value these accessories?

A: My favourite shoes and bags were from Celine. I bought clothes from all brands, and I usually divided them into some for taking photos, and some more drama clothes. It costs tens of thousands RMB per month on average. I think I am more pursuit of material. The happiness that money can bring.

Q3: Buy luxury brands online or offline? What luxury brands do you buy most (bags, clothes, accessories, etc.)? What is the average price range for each purchase?

A: I buy more bags offline, while I buy more clothes and shoes on e-commerce shopping sites because the choices are larger. I'm not looking at the price range, I'm looking at whether I like it or not.

Q4: Why do you prefer offline/online shopping? What are the reasons for choosing to shop online/offline occasionally?

A: I prefer online most of the time because it can be returned and many styles are not available in stores.

Occasionally choose offline, because buy things may be more expensive, and want to see the real thing.

Q5: If you are shopping for a bag you like at a luxury brand counter, and the salesperson introduces you to a new bag that will be launched this year and explains how the bag is made, the fabric used, etc., and may even tell you the inspiration for the design of the product's origin story, how much would you like to listen to them? Are you interested in the behaviour of the salesperson?

A: No, I must have decided what to buy. I'll go straight to the counter. And I am a hard person to be impressed by the way it is made or what special fabric is used. Unless it's brand Hermes, I would learn more about it.

Q6: When shopping for luxury products, in addition to the appearance design of the products, to what extent are you interested in the materials used, the level of craftsmanship, the inspiration, and the characteristics of the products?

A: What I probably care most about him is his inspiration and his peculiarity. I prefer the way the product makes me feel. For example, a straw hat more than 1600 RMB from, everyone is wondering why you would spend the money to buy such a thing. It is because I was fascinated by the whole concept of Cuban and Mexican style in one show of Jacquemus.

Q7: When, as a consumer, you hesitate to buy a branded product, when you understand the story behind it and the motivation behind it, you may strike a chord. How determined are you to buy it without overshooting your budget?

A: I think the visual impact is more important to me than the story.

Q8: To understand the brand concept and product design inspiration of luxury brands/niche designer brands, do you want to understand it through passive ways (explained by others or online information accidentally seen) or active ways (through music, pictures and videos)?

A: If I am interested in a product, I will take the initiative to learn about it.

Q9: If one day, you like a piece of jewellry, and through understanding the source of its theme inspiration, what kind of experience do you think this is?

A: If I am interested in a product, I will take the initiative to learn about it.

INTRODUCTION — ABSTRACT

SOCIAL CONTEXT ANALYSIS: • MACRO TRENDS • FASHION TRENDS

INTERNAL COMPANY ANALYSIS:

CASE STUDY -BALENCIAGA Table of content

• BRAND IDENTITY • MARKETING MIX 4PS • MARKETING MIX 4CS • CONSUMER IMAGE

• PORTER’S 5 FORCES MODEL • FINANCIAL ANALYSIS • BUSINESS STRATEGY ANALYSIS

EXTERNAL INDUSTRY ANALYSIS: • COMPETITION RESEARCH • MAIN COMPETITOR • SOWT ANALYSIS

NEW STRATEGY PROPOSAL : • CONCLUSION AND PROPOSAL • “DOES NOT MATTER” COLLECTION

FUTURE RECOMMENDATION： • VITURAL GARMENT • AR COMBINED WITH RUNWAY

REFERENCE LIST

ABSTRACT Purpose Help Balenciaga to raise awareness and consumer brand awareness. And in the process of fashion industry transformation, find appropriate solutions to help brands smoothly through the transformation period.

Design Methodology Through first-hand research: interviews with consumers, reading relevant books, and second-hand research, I found out the advantages and disadvantages of the brand through surveys on the environment. Competitive products analysis , Porter's Five Force Model, Consumer image survey, Marketing mix 4Cs, 4Ps, Financial analysis, etc.

Result Balenciaga's products are too single, resulting in insufficient premium, and less well-known than other competing products.

Through research, Balenciaga is not enough in brand promotion.

But its style and targeted consumer groups are well suited to AR technology.

Values Solve the shortage of Balenciaga in popularity, improve competitiveness, and increase corporate profits. And it provides the development strategy for the transformation process of fashion industry in the future.

SOCIAL CONTEXT ANALYSIS MACRO TRENDS In a volatile political environment and sensitive to regional issues, Chinese people are beginning to realize the importance of having their voices heard.

LGBT is one of the hottest topics in today's society, and more and more LGBT people are willing to speak up for their rights. They have individual personality and rebellious spirit.

With the arrival of the 5G era, mobile commerce will start to be popularized, and VR and AR experiences will exert their greatest strength to be applied in the fashion industry.

In the context of the global COVID-19 epidemic, online work mode and online shopping mode are flourishing.

Sustainable development is a crucial topic in recent years, more and more enterprises have began to pay attention to the protection of the environment.

POLITICAL

SOCIAL

TECHNOLOGICAL

ECONOMIC

ENVIRONMENTAL

Luxury brands are beginning to focus on the development of online models.

Yvmin 2020S/S

The AR model from Apple

In 2019, three UK telecoms operators hosted the first hybrid fashion show to provide 5G networks to Central Saint Martin.

Application “Measure” on iPad Pro

The designer of Dolce & Gabbana's own chats records were exposed on Weibo, in which he responded with abusive comments about China. Although he claimed the account was stolen.

LGBT people are marching more and more frequently and are beginning to express themselves, forming a unique culture.

iPad Pro 2020

The words on a Versace T-shirt have been questioned by Internet users for juxtaposing Hong Kong and Macao with the country, which is suspected of "Hong Kong independence" and "Macao independence”.

IKEA uses AR technology to allow customers to see where furniture is in their home directly from their phone's screen.

Some brands are beginning to express their support for LGBT people by offering products that are highly LGBT in culture.

Apple's disassembly robot Daisy can disassemble devices users no longer need and efficiently recycle resources, saving more valuable materials and reducing the exploitation of earth's resources.

Apple's iPad Pro 2020 features a laser radar scanner that marks a milestone in the development of AR technology.

Apple's disassembly robot Daisy Armani Privé 2019 S/S

Balenciaga, which earlier sold Triple S, its hot style father shoes at Pinault Printemps Redoute in Paris, said a Chinese customer was beaten up after accusing foreign customers of jumping the queue, but staff and security guards did not punish the attacker, and the Balenciaga employee insulted the Chinese.

Magic leap

As a result of COVID-19, LVMH's share price fell by 19% as of May 16, 2020, and Bernard Arnault's net worth also fell by more than $30 billion.

The fashion industry's sales in China have continued to grow in recent years, and the Z generation is becoming a major purchasing power.

Giorgio Armani 2019S/S and 2020S/S Chinese style, using embroidery, fringe, Chinese style stand collar, plate button elements.

Some of Z generation’s favorite luxury brands.

Designer brand YVMIN 2020 S/S baroque style accessories using environmentally friendly resin materials.

SOCIAL CONTEXT ANALYSIS

More and more art installations and buildings with a sense of design and technological beauty are beginning to appear in commercial complexes.

FASION TRENDS

Weibo: Fashion_Bangz

Alessandro Michele

Located in chengdu Taikoo Li, Gentle monster's third flagship store in China is designed to attract customers with the combination of surrealistic space.

Gentle monster Chengdu

Alessandro Michele BVLGARI 2019 Milan Fashion week BVLGARI IL Giardino

Bvlgari displays a mirrored cubic space installation in the IL Giardino garden at the Milan hotel. When the guest walks among them, they will be immersed in instantly in black and white pattern set.

BVLGARI 2018 Milan Fashion week Iván Navarro

Alessandro Michele, GUCCI's creative director, announced that the brand would stage only two shows a year instead of the current five. Alessandro says that during his time at home, he's been wondering if fashion is moving too fast. In the future, he will name his series after music rather than spring/ summer/autumn. In addition, GUCCI will soon launch a "no gender” option on its website, allowing consumers to browse both men and women while shopping.(Fashion_Bangz, 2020)

Balenciaga 1950

Balenciaga 1967

Balenciaga 2020 F/W

Mission&Vision

INTERNAL COMPANY ANALYSIS

The vision of creation in the service of a modern and bold Luxury is based on a multi-brand model that favors a long-term approach and creative autonomy of the Group’s Houses and relies on agility, balance and responsibility.(Kering, 2018)

BRAND IDENTITY Brand Image Founded in 1917 by Cristóbal Balenciaga, the Balenciaga brand was established in Paris in 1936, where it defined many of the greatest movements in fashion from the 1930s to the 1960s. Balenciaga’s exquisite technique, masterful cut and constant innovation in its use of fabrics has helped it carve out a special place in the hearts and minds of its clients. (Kering, 2018)

The vision also draws on a resolute ambition – to be the world’s most influential Luxury group in terms of creativity, sustainability and economic performance – and the deep conviction that Luxury and sustainability are one: performance will only endure if it applies across the board.

(Kering, 2018)

Until the brand hired Demna Gvasalia. Instead of the brand's original, elegant, feminine tone, Balenciaga is now the twin of Vetements, launching a uniquely funky trend that combines high fashion with street style to embrace the rebellious self.

Brand Value The values are closely tied to a powerful, creative content imbued with modernity and are complemented by the entrepreneurial spirit that permeates brand and by the vision of our creative teams. Kering is made up of women and men who strive each day to create authentic, ever-changing Luxury.(Kering, 2018) Balenciaga offers women’s and men’s ready-to-wear, handbags, shoes, accessories, eyewear and a fragrance for women, subsidiary of Kering.

Products from Balenciaga

Product

Promotion

Today balenciaga sells handbags, leather goods, shoes, accessories, and clothing. There are relatively few choices compared to other luxury brands (without perfume, beauty, furniture, etc.). Balenciaga's recent product launches have demonstrated the value of Demna Gvasalia and his team.

For example, Balenciaga's spring/summer 2020 collection is based on the previous collection theme, with many clothes made with playful patterns, as well as the brand's popular heavy sports shoes as the main axis. The genderless catwalk shows showcased gender-neutral outfits. In recent years, Demna Gvasalia has experimented with a variety of experimental cuts, including avant-garde shoulder pads. And a thin waist. Demna Gvasalia's always stunning creations were also on display on gorgeous bright red and black dresses, as well as flamboyant windbreaker coats with collars high above the models' heads, echoing the gender-free concept of having both male and female models wear the same outfit. (Hypebeast, 2019)

Balenciaga 2019 F/W

INTERNAL COMPANY ANALYSIS

Price Balenciaga's pricing is in the middle of Luxury market. Balenciaga handbags and small leather goods cost from 2,100 to 17,900 yuan, shoes from 5,400 to 13,300 yuan, clothes from dresses to T-shirts range from 3,200 to 46,200 yuan, and accessories range from 2,100 yuan for key rings to13,200 yuan for necklace, etc, compared with some haute couture from Givenchy, which costs more than 100,000 yuan, and Louis Vuitton, which costs more than 30,000 yuan for a handbag. But after a change in style, the prices still seem too high for a more youthful clientele. To increase sales further, a slight drop in price is an option. (Kering, 2019)

Place

Balenciaga 2019 S/S Campaign

MARKETING MIX 4PS

In recent years, balenciaga has been consolidating its global network of directly operated stores. Today it has 156 stores in mature markets (Western Europe, the us and Japan) and Asia (greater China and South Korea).

(Kering, 2019) balenciaga owns 35 boutiques in China and has boutiques in most major Chinese cities. They are located in 14 cities including Beijing, Shanghai, Guangzhou and chengdu, among which there are 7 in Beijing, 6 in Shanghai, 6 in chengdu, 5 in wuhan and 4 in changsha. Balenciaga also sells through franchised stores and leading multi-brand stores. In 2018, Balenciaga implemented its retail expansion strategy, opening several net stores, including its first at Balenciaga, and acquiring design districts in Miami and franchises in southeast Asia and the united Arab emirates. During the year, a number of shops were renovated in accordance with a new concept developed

by Demna Gvasalia. The brand has also expanded its retail presence in highend department stores, opening new stores within stores in Europe and Asia.

In balenciaga's current style, the decoration and display of the corresponding street style combined with the concept of high fashion can hardly be seen in the stores in China, which still needs to be improved. Mobile phones are still the preferred way to browse and shop, and today Balenciaga.com is available locally in nine different languages, including Chinese, Korean and Russian.

Balenciaga has launched e-commerce in nearly 100 markets, including the Middle East, South Korea and China.(Kering, 2019)

Balenciaga 2020 S/S Campaign

Balenciaga is not as well-known as Gucci, LV and other luxury brands in China. The change of style in recent years, more in line with the younger generation. Although balenciaga has made a lot of efforts in promotion, it is not enough compared with other brands that have done well in promotion.

Balenciaga's preference for the past two years is to let consumers know about its products through short films and advertisements. The short film of s/s 2020 campaign is inspired by live news broadcast, accompanied by weird music and materials, which is somewhat absurdly apocalyptic. The model's "mouth" movement when reporting news is even the effect of late work.

The short film of s/s 2019 campaign staged a spy chase war with various ancient special effects and VHS style pictures, rather like the style of the movie Matrix. The unique advertising style fully demonstrates balenciaga's current fun and cool style, which is a key factor in catering to young people.

Photos of Chinese film and television star Yang Mi wearing clothes at the airport have appeared frequently on Chinese social media platform Weibo for some time now.The classic white shoes of Gucci and balenciaga triple s that she has worn have attracted a lot of attention from netizens. Nowadays, in China, it is a very popular thing for celebrities and web celebrity to “dai huo” (in Chinese) on the Internet. The features and functions of commodities are introduced in the form of live broadcasting, which arouses consumers' desire to buy and makes the commodities purchased by a large number of consumers. Balenciaga's popularity and sales could be increased in the same way. It is a good time for balenciaga to promote itself. It's important that more of the younger generation get to know balenciaga. Some young people become more loyal to balenciaga when they think it fits their personality.

Cost

Balenciaga's style is more suitable for the taste of young people, for the majority of the younger generation of consumers, they may feel that the cost of consumption is sometimes too high. In today's luxury market, most of the brands are trying to innovate, and most of the tone is retro and classic, which leaves people with the style trend that luxury brands should have.

Balenciaga is the only one among many luxury brands to apply strong street style to its products. When young people see balenciaga's products, they may associate them with vetements, supreme and other fashion brands that do not belong to the luxury category. They may think that under the same style, balenciaga is too expensive. Instead, they choose other fashion brands with lower prices, so that they can get the rebellious and personalized feeling they want to a greater extent. Balenciaga should make better product design according to the needs and values of consumers and take into account the price consumers are willing to pay. Balenciaga is not customized enough in terms of price or product design, and the brand premium is not enough.

INTERNAL COMPANY ANALYSIS

Communication

Today, most young people still choose e-shopping, browsing and purchasing through mobile phones as their first choice. Balenciaga is also making progress in this area, step by step into a broader market, expanding the communication platform with young people. On May 15, 2020, balenciaga officially entered the T-mall platform of Alibaba, and the official flagship store of the brand was officially launched. Balenciaga runs campaigns on social media and has a large following. Through the form of pictures and words, the brand tonality, funny and humorous style and gorgeous street style are displayed to consumers.On social media, balenciaga had more than 1.4 million followers on Facebook in December 2018 and is increasingly popular on Instagram, with more than 8 million followers by the end of the year.

Thisreflects a growing interest in all collections and a significant increase in brand awareness and visibility. (Kering, 2019) But balenciaga can reach a wider audience. We can see that the increasingly popular KOL behavior, as well as the popularity of Tiktok app abroad, are excellent opportunities to promote and communicate. Also, Wechat, some brands have started to insert advertisements in the “Peng you quan " frequently. Gucci has even posted a lot of photos of Chinese celebrities being invited to endorse bags this year.

Positive communication is important. Negative communication can damage the brand image. Brands should not touch some bottom line topics, such as politics and race, when communicating with consumers. Balenciaga was once pushed to the center of the storm because of its involvement in the scandal of insulting China, which led the public to boycott balenciaga unanimously.

MARKETING MIX 4CS Convenience Consumer’s wants and needs In addition to consumers' desire for a convenient and efficient shopping experience and a good control over the cost, they also have corresponding expectations for the product and brand image. The "place of origin effect" in luxury goods has always existed, and it is even an important selling point of luxury goods. Balenciaga's Triple S has caused a new wave of discussion after it was discovered that the original Made In Italy printed on the inside of Triple S had disappeared, replaced by the Made In China on the tongue of the shoe. Consumers think they have been cheated: why products made cheaper in China are still very expensive. But I think the consumer's anger is more because "China's ability to produce pirated products" has been branded in their minds, and for €850 they should get a pair of triples crafted by Italian workers, not triples made on the assembly line in a Chinese factory.

(Cicadahood, 2018) At the same time, some of the triple s sold for only a few hundred yuan are also produced by some Chinese factories. As a result, some consumers are not willing to buy these "hot styles" and the image of the brand is hit. As a result, consumers will think that the products are very common and cannot meet their psychological needs.

Today's luxury brand stores are basically located in the center of the city, large commercial complex, large flow of people, which provides convenience for consumers, they can accurately and quickly find the store. However, driven by the Internet shopping boom, balenciaga has entered many ecommerce platforms, such as Farfetch, etc. This not only strengthens the communication with consumers, but also provides a convenient and fast way of shopping for consumers, who can buy the products they want without going out, saving shopping time and energy. What's more, these e-commerce platforms sometimes offer discounts on special occasions, such as black Friday. When consumers are not satisfied with the products they buy, they can return or replace them within a certain period of time (which is also the main reason why one luxury lover I interviewed likes to buy products on e-commerce). Convenience is what people have been pursuing all the time.

Many technicians of luxury brands have also developed mobile apps of their brands. Consumers can see their favorite products at home directly through AR technology, which saves them the time they need to go to offline stores and buy in person. Today's consumers, especially young people, need such convenience. Most of them are busy with their work and study, and have little time to go to offline stores to buy goods in person.

Balenciaga 2020 S/S Campaign

Psychological

Gender:Both men and women Age: young( Z generation and 90s ) Ethnicity: Chinese/American/Japanese/European Religion: any kinds Marital: single Education: university/college income: Medium-high Occupation: artists, musicians, overseas students

Lifestyle:Love social intercourse/Hedonism Purchasing motive and behaviour: product itself Interests and hobbies: Movie(science)/Music(mainly non-mainstream music)/Taking photos Attitude: confident/loyal Shopping mode: Online/Offline

Ins: atercosmo

Film: Climax

ins: balenciaga Ins: manocrisologo

INTERNAL COMPANY ANALYSIS

Demographical

CONSUMER IMAGE Balenciaga's customers are mainly from the Z generation and the post-90s generation, also including some from the post-70s and post80s generations, but they are generally of a lower psychological age. The number of men and women is basically balanced, and there are some LGBT people who are passionate about subculture. Their careers range from art illustrators to producers of non-mainstream cultural music, as well as overseas students. Their incomes are in the upper middle bracket, and most are well placed to consume balenciaga. They like to express themselves by shopping, dressing up, socializing and taking photos to show their differences with others. They are eager to find themselves in this way. They get tattoos, wear the coolest makeup, go to bars and socialize. Listen to non-mainstream music like dance hall, reggae, and hip-hop, etc.

In the pursuit of image, they like to use bright leather, metal, black as the main color of clothing or jewelry as their goal; They like the makeup look of advanced inferior light feeling, tie-in different colour but not common colourful, and exclusive and custom-made tattoo which is very attractive. And they take pictures and share them on all social media platforms.

Yvmin 2019

Ins: i_d

Oranji, male, 28, LGBT, is a social celebrity with a passion for subculture and a freelance career. He loved balenciaga, and there were always a few balenciaga things in the house.

Monday: Today is a day of work. He needs to do some preparation for updating his social media, take some photos and prepare some copywriting.

Tuesday: Today, he is going to a friend's party, after an elaborate dress, the party he is very dazzling.

Wednesday: Woking up at noon after a hangover. As there is a walking dance class in the afternoon, he simply cleans himself up. Don not forget to wear sunglasses out. In the evening, he has dinner with a male Internet friend who has been chatting for a long time, but he does not like him after this date. He does not think he is an interesting person.

Thursday: It is time to update his social media feed, but he finds that there are not enough photos available because he does not suitable clothes to wear, so he thinks it is time to go shopping. so he spends the rest of the day on his phone looking at his favorite clothes and shoes.

Friday: Today, he goes to the mall to do some shopping with his friends. Besides balenciaga, he also goes to Gucci, lv and other brands for shopping. He has his own ideas and only buys the products he likes.

Saturday: When he wakes up in the morning, Oranji finds out that he has received the money from an AD that he placed for a beauty company last month.

He decides to ask a friend out to dinner at a fancy restaurant, also it is another reason to share his life. He just simply dresses himself in a black balenciaga T-shirt.

Sunday: A week goes by and his friend asks him to go to the bar tonight. however, he refuses. Instead, he spends the night at home watching a movie, drinking a little wine, and putting on music written by The Weeknd before he goes to bed.

Threat of New Entry: middle-high More and more designer brands appear in the front of people’s eyes. Some of them are more appealing to consumers. For example, designer brands are usually less mass-produced, which makes them different from others when they own a product. Designer brands can express themselves aggressively and creatively without guaranteeing the classic that the luxury brands need to maintain.

Also, due to the positioning of luxury goods and the fact that this style is ubiquitous, many consumers may be more willing to buy other brands of the same style at a relatively low price.

INTERNAL COMPANY ANALYSIS

Competitive Rivalry: middle

PORTER’S FIVE FORCE MODEL

Threat of New Entry

Today's fashion brands want a piece of the action in an era of powerful millennial and post-90s buying power. This is why many fashion brands are starting to innovate to cater to young people.

Many luxury brands try to innovate and retain their traditions and classics, such as today's GUCCI, which is retro and classic, while balenciaga is the most distinctive brand among many century-old luxury brands, which is characterized by its punk and street style and high recognition.Balenciaga is the most distinctive brand among the hundreds of luxury brands, featuring punk and street style, with high recognition. At the same time, however, today's Gucci, retro and classic, Louis Vuitton has also begun to associate itself with brands popular with young people, such as supreme.

Supplier power:low-middle For all its street and punk style, Balenciaga does not use sophisticated and superior materials. The product basically uses traditional materials and maximizes its style through styling or profile. So the material will not produce too high prices. However, some uncontrollable factors, such as the outbreak of COVID-2019, may lead to insufficient factory productivity and high production price.

Supplier power

Competitive Rivalry

Threat of substitution

Buyer power

Buyer power: low Today, China's economy continues to develop and its population GDP is increasing year by year. We can see the consumption power of Chinese consumers in fashion brands. In 2019, Chinese people bought one third of the world's luxury goods. Especially the Z generation and the post-90s generation, they are rebellious, radical, independent-thinking people who have their own opinions and opinions on fashion and love it. They like to show their personality through their fashionable appearance and are more loyal to the things they like. But there are also people who follow the big trend and may not know what they want or what is suitable for them.

Threat of substitution: low-middle In China, the products of many fashion brands are highly copied by some manufacturers and frequently pirated products are produced in large quantities and sold more cheaply to consumers who have insufficient consumption capacity to buy fashion brands. These fakes are often seen on some Chinese e-commerce platforms at very low prices and are bought by a large number of people. But there are still loyal consumers who will buy authentic products. After all, there are many differences between fake products and authentic products in terms of craftsmanship and materials.

Kering's 2018 sales rose 26.3 percent year on year to 13.665 million euros.

Full-year 2017 sales rose 27.2 percent year on year to 15.5 million euros. In 2016, the operating revenue of the Kering group was 12.385 million euros, an increase of 6.9% over the previous year. In 2015, the operating income of Kering group was 11.584 million euros, with a year-on-year growth of 15.4%.Kering group's fiscal revenue has maintained an overall upward trend, exceeding 15 billion euros in 2017.

INTERNAL COMPANY ANALYSIS

Kering 2019 financial documents

Kering group's revenue from 2015 to 2019

In € million

15.478 11.584

2015

12.385

2016

2017

15.884 13.665

2018

2019

FINANCIAL ANALYSIS

Kering is more committed than ever to environmental and social sustainability and diversity, which are critical to its goals and long-term performance.

Kering's profits continued to grow in 2019 Revenue in 2019 was close to 15.9 million euros, up 16.2 percent from the same period in 2018.

The Asia-pacific region accounted for 34 percent of total revenue this year.

Consumers from China and some Asian countries are the main contributors to market growth in 2019.

Compared with 2018, the share of Chinese consumers has increased by 2 percentage points.

Kering's 2018 sales rose 26.3 percent year on year to 13.665 million euros. Full-year 2017 sales rose 27.2 percent year on year to 15.5 million euros. In 2016, the operating revenue of the Kering group was 12.385 million euros, an increase of 6.9% over the previous year. In 2015, the operating income of Kering group was 11.584 million euros, with a year-on-year growth of 15.4%.Kering group's fiscal revenue has maintained an overall upward trend, exceeding 15 billion euros in 2017.

Kering is more committed than ever to environmental and social sustainability and diversity, which are critical to its goals and long-term performance. Kering's profits continued to grow in 2019 Revenue in 2019 was close to 15.9 million euros, up 16.2 percent from the same period in 2018. The Asia-pacific region accounted for 34 percent of total revenue this year. Consumers from China and some Asian countries are the main contributors to market growth in 2019.

Compared with 2018, the share of Chinese consumers has increased by 2 percentage points.

In 2020, the luxury goods industry was faced with unprecedented challenges due to the impact of Covid-19 sweeping the world. In the first quarter of 2020, group revenue only reached 3.203 million euros, a year-on-year decrease of 16.4 percent. By March 31, more than half of the Kering group's brand stores around the world had closed. The Kering group has adjusted accordingly, trying to recover excessive property losses.

Kering group made adjustments in six aspects: supply chain&logistics, merchandising & distribution, cost reduction, cash management, solid financial structure & liquidity secured, getting ready to restart. Apart from the basic measures to deal with emergencies, merchandising, it is worth noting that Kering group will also consider merchandising in terms of virtual showrooms.

Price

EXTERNAL INDUSTRY ANALYSIS

Classic

Price

Innovative

Traditional

Price

Unsexual

Realism

Futurism

COMPETITIVE BRAND ANALYSIS

Gucci 2020 S/S

In the fierce competition, the vast majority of brands began to make innovations. Young people want to be different, and brand innovation gives them more room to express their individuality. Especially Gucci and Balenciaga, Gucci is vintage and classic, while Balenciaga is street style and high-end. Gucci's annual sales are bigger than balenciaga's. Therefore,Gucci is the main rival product of balenciaga. The successful strategy of Gucci can provide the visibility strategy for balenciaga.

Balenciaga Bella Hadid

Brands with the same style as Balenciaga include Rick Owen, Vetements, Off-white and Supreme. We can see that they all have the problem of "Cheap copy in China". Also, we can see Street style, punk style and hip-hop culture are popular among young people.

Yvel Saint Laurent beauty ads

From the perspective of brand positioning: balenciaga is a luxury brand with a century-old history, competing with Gucci, fendi, Yves saint Laurent, Louis Vuitton and other brands. At the same time, I have included brands such as Vetements, supreme, off-white and Rick Owens into balenciaga's competitive products, because their styles are similar to balenciaga and they are popular brands among young people today.

Most of the competitors have beauty products specially developed, such as Gucci, YSL, Givenchy and so on. The brands even have websites for Chinese consumers. The public wants to own luxury goods. If their purchasing power is insufficient, they will choose products with lower prices. Beauty products and skin care products of luxury brands are luxuries that most people can consume, which is conducive to brand promotion and enhancement of consumers' brand awareness. Balenciaga, however, does not yet have such a relatively inexpensive product. When it comes to styles that young people like, balenciaga should Media exposure is one of the fastest ways for Chinese people to improve their brand awareness. And also consider the financial ability of most young people.

Balenciaga, Celine, Ferragamo, etc, obviously insufficient in this respect. On the contrary, Gucci has done a From the perspective of product design: Contemporary young people to the concept of gender is becoming more and more Yvel Saint La good job in brand awareness improvement. vague, the emergence of the concept of unsexual has become the marketing strategy of many brands. One interesting COMPETITIVE BRAND ANALYSIS phenomenon is that we can see men wearing women's clothes on the Gucci’s runway. Balenciaga has similar men's clothing From for thewomen, perspective of brandmay positioning: balenciaga is aand luxury brand a century-old competing with but balenciaga not have done it on purpose not have soldwith as well as Gucci. The history, concept of menswear for Brands with the same style as Balenciaga include Gucci,women Fendi,Rick Yves tosaint Laurent, Louis Vuitton and other brands. Atforthe sameit time, I that have includedforbrands such as seems be less impressive in the public mind than menswear women: seems menswear women is the BIRTH COMPETITOR BRAND CREATIVE DIRECTOR NATIONALITY STYLE STRENGTHS WEAKENSSES YEAR FACTORS Owen, Vetements, Off-white and Supreme.

We can see Vetements, supreme, off-white and Rick Owens into balenciaga's competitive products, because their styles are similar norm.

Balenciaga has political opinions and was once at the top of the list of hot topics in China. Politically sensitive issues have led balenciaga to lose most of its potential customers in China.

BALENCIAGA

Demna Gvasalia

1919

France

Street,

Punk

Reflect personality

Surrealism

GUCCI

Alessandro Michele

1921

Italy

Vintage,

Classical

Neutral

Aesthetic

LOUIS VUITTON

Virgil Abloh

1854

France

Classical

Neutral

Aesthetic

FENDI

Marco de Vincenzo

1925

Italy

Dramatic, Vintage

Representative pattern

YVES SAINT LAURENT

Anthony Vaccarello

1962

Femininity, Nobleness

Sexually attractive

Commercial Sexually attractive

Commercial Vintage

Modern

Century-old brand

Popular in China

Classic

Sometimes expensive

High quality fur products

Sometimes expensive

Cheap copy in China

Wide product range

Sometimes expensive Popularity in China (beauty)

High exposure in China

Wide product range

Lack of media exposure Popularity in China (beauty)

GIVENCHY

Clare Waight Keller

1952

France

Elegant, Simple

CELINE

Hedi Slimane

1945

France

Femininity

BURBERRY

Riccardo Tisci

1856

Britain

Vintage, Creative

Vintage

Modern

France

Active, Colorful

Relatively cheap

Representative pattern

Boyish

Youthful

Energized

Relatively cheap

Discount

KENZO

Felipe Oliveira Baptista

1970

Classic

Femininity

Lack of media exposure

Not special

Menswear is unsatisfying

Century-old brand

More and more creative Sometimes expensive Cheap copy in China

Lack of media exposure

Stuart Vevers

1941

America

Popularity in China

Not special

FERRAGAMO

Fulvio Rigoni Guillaume Meilland Paul Andrew

1927

Italy

Vintage,Femini nity

Vintage

Classic

Femininity

Not special besides shoes

Lack of media exposure

RICK OWEN

Rick Owens

1994

America

Punk

Reflect personality

Special design (bondage)

Lack of media exposure

Young brand

Reflect personality

Popularity among young generation

Young brand without deep concept

Cheap copy in China

VETEMENTS

Demna Gvasalia

2014

America

Street,

Punk

OFF-WHITE

Virgil Abloh

2014

America

Hip-hop, Street

Reflect personality

Commercial

SUPREME

Luke Meier

1994

America

Hip-hop, Street

Reflect personality

Commercial

Popularity among young generation

Cooperate with other brands ( NIKE ) Affordable

Cooperate with other brands ( LV )

Popularity among

Young brand without deep concept

Cheap copy in China

without deep concept

Cheap copy in China

are popular brands among young people today.

In the fierce competition, the vast majority of brands began to make innovations. Young people want to be different,

Balenciaga has political opinions and was once innovation at the and brand gives them more room to express their individuality. Especially Gucci and Balenciaga, Gucci is top of the list of hot topics in China. Politically sensitive vintage and classic, while Balenciaga is street style and high-end. Gucci's annual sales are bigger than balenciaga's. issues have led balenciaga to lose most of its potential Therefore,Gucci is the main rival product of balenciaga. The successful strategy of Gucci can provide the visibility customers in China.

strategy for balenciaga.

Media exposure is one of the fastest ways for Chinese people to improve their brand awareness.

Most And of the competitors have beauty products specially developed, such as Gucci, YSL, Givenchy and so on. The Balenciaga, Celine, Ferragamo, etc,brands obviously insufficient even have websites for Chinese consumers. The public wants to own luxury goods. If their purchasing power is in this respect. On the contrary, Gucci has done a good insufficient, they will choose products with lower prices. Beauty products and skin care products of luxury brands are job in brand awareness improvement.

Ins: Balenciaga

Balenciaga 2020 S/S

COACH

Straight and narrow

that they all have the problem of "Cheap copy in China". to balenciaga and they Also, we can see Street style, punk style and hip-hop culture are popular among young people.

Ins: Balenciaga

France

Political issues

Publicity, Cheap copy in China

Simple product range

Popular in China

Cheap copy in China

Cooperate with Chinese Becoming commercial

artists Not suit for everyone Century-old brand

Innovation

luxuries that most people can consume, which is conducive to brand promotion and enhancement of consumers' brand awareness. Balenciaga, however, does not yet have such a relatively inexpensive product. When it comes to styles that young people like, balenciaga should also consider the financial ability of most young people.

From the perspective of product design: Contemporary young people to the concept of gender is becoming more and more vague, the emergence of the concept of unsexual has become the marketing strategy of many brands. One interesting phenomenon is that we can see men wearing women's clothes on the Gucci’s runway. Balenciaga has similar men's clothing for women, but balenciaga may not have done it on purpose and not have sold as well as Gucci. The concept of menswear for women seems to be less impressive in the public mind than menswear for women: it seems that menswear for women is the norm.

Balenciaga 2020 S/S

EXTERNAL INDUSTRY ANALYSIS

Brand Image Gucci is an Italian fashion brand founded by Gucci in Florence, Italy in 1921. Gucci's products include fashion, leather goods, leather shoes, watches, ties, scarves, perfumes, household items and pet items. Gucci brand fashion has always been known for its high-end, luxurious and sexy, with the brand image of "the symbol of identity and wealth" becoming the consumption favorite of the rich upper class Brand Image society, has always been favored by business people, fashion does not Gucci is an Italian fashion brand founded by Gucci in Florence, Italy in 1921. Gucci's products include fashion, leather goods, leather shoes, watches, ties, scarves, perfumes, household items and pet items. lose elegance.( (Kering, 2018))

MAIN COMPETITOR & SWOT ANALYSIS

Ins: Gucci

Gucci USES classic and unique bran poster is ful Unlike most collaboratio artists have mass marke artists with young artist potential. Fo brand itself giving full pl way and att of young pe and fashion perspective

Gucci brand fashion has always been known for its high-end, luxurious and sexy, with the brand image At the beginning of 2015, Gucci of "the symbol of identity and wealth" becoming the consumption favorite of the rich upper class embarked on a new chapter in its society, has always been favored by business people, fashion does not lose elegance.( Kering, 2018 history the of a new ) At the beginning of 2015, Gucci embarked on a new chapter in its history under the under direction of direction a management team led by President new management team led by President and CEO Marco Bizzarri and Creative Director Alessandro and CEOasMarco Bizzarri and Creative Michele. Their new, contemporary vision for Gucci rapidly re-established its reputation one of the Director Alessandro Michele. Their world’s most influential luxury fashion brands.(Kering, 2018)

new, contemporary vision for Gucci

GUCCi has aggressively promoted celebrity endorsements to boost its brand rapidly image. More recently, re-established its reputation Gucci has been endorsed by a dozen celebrities familiar to young Chinese. as one of the world’s most influential

luxury fashion brands.（Kering, 2018）

GUCCi has aggressively promoted celebrity endorsements to boost its brand image. More recently, Gucci Mission & Vision has been endorsed by a dozen celebrities familiar To lead the way and purposefully shape the luxury of the future, which will be more responsible, moreto young Chinese. in tune with our times, while remaining true to its brand's unique history and heritage. Gucci aims to become the world's most influential luxury brand in terms of creativity, sustainability and long-term economic performance.(Kering, 2018)

Brand value Gucci USES a combination of classic and surreal to create its own unique brand elements, and each poster is full of artistic atmosphere. Unlike most brands, Gucci's collaborations with well-known artists have never been about the mass market. Instead, it looks for artists with unique styles, as well as young artists with unique styles and potential. For luxury brands, the brand itself is art. Gucci has been giving full play to the art in its own way and attracting a large number of young people with individuality and fashion with its unique artistic perspective.

To lead the w shape the lu will be more tune with ou true to its bra heritage. Gu world's mos in terms of c and long-ter performance

Ins: Gucci

Ins: Gucci

Strengths

Opportunities

• Suitable for younger generations • Distinctive features: High class& street • High consumer loyalty

• Looking for spokesmen • Moderate price reduction • Create a limited collection • Promote brand image

Weaknesses

Threats

• Insufficient brand premium • Single product line • Lack of brand promotion • Consumers lack brand awareness

• The tendency of innovation of other brands • Political stance scandal • Cheap piracy

Balenciaga is unique in style among all the luxury brands and has a loyal following of young consumers. However, it has several major problems: • Insufficient brand premium; • Single product line; • Lack of brand promotion and celebrity endorsement • Consumers Lack brand awareness.

I will make further proposals on these points. The aim is to improve brand awareness and influence and increase corporate profits.

NEW STRATEGY PROPOSAL CONCLUSION AND PROPOSAL

• Balenciaga should adjust its brand premium. Previous analysis has suggested that balenciaga's products may be a bit pricey for consumers who like the tone of the brand. In the future pricing, I think the brand premium should be reduced according to consumers' consumption level.

• Balenciaga should create a capsules series to add product categories, with prices ranging from 200 yuan to 3,000 yuan, which it regularly launches offline and online. At present, I think we can launch some products suitable for brand image, such as Balenciaga garbage bag, neutral pen, mobile phone case, perfume, tableware, etc., which are in line with consumers' attitude. The products can even be made from environmentally friendly or biodegradable materials, and emphasize Kering's emphasis on sustainability.

• As for advertising, Balenciaga has yet to launch its own celebrity endorsement. In my opinion, "star effect" is very powerful for improving brand awareness and consumer brand awareness, which is a thing worth doing. As balenciaga is a high-end brand with unique style, I think Dou Jingtong, Kris Wu and Zhou Zhengnan are the most suitable candidates in China. They all have a unique personality, their own fashion ideas, their own way of life, not affected by the outside public opinion.

• When promoting brand awareness, social media is a choice that cannot be ignored. Use big data analytics to identify the most potential consumers in order to share products. Meanwhile, Balenciaga must consider the promotion of WeChat in the future, so as to consolidate and increase their own consumer groups. We should also consider promotion in some popular software. We need to increase the advertising amount of Balenciaga in Tiktok, especially in China, so that more people can see the brand and improve its popularity.

“DOES NOT MATTER” COLLECTION

CELEBRITY ENDORSEMENT PRESENTATION

ADVERTISING MOOD BOARD

VITURAL GARMENT

Thierry Mugler 1997 S/S

Alexander McQueen 2011 F/W

Thierry Mugler 1997 F

2018 Billboard Music Awards

The application of AR can bring fresh experience to consumers and make products more than just products. We can extract relevant elements of balenciaga products, convert them into digital models, and use AR to reflect on the products. Brands can even add balenciagainspired AR art installations to their offline events to encourage customers to come and buy. These virtual effects that can be seen by the naked eye do not exist in the real world. However, their appearance can be favored by consumers, especially young consumers, to improve the brand experience and promote the brand.

As early As in 2019, digital fashion design company in The Fabricant cooperated with The team behind The CryptoKitties Dapper Labs and AR filter designer Johanna Jaskowska, Using 2D garment pattern cutting software and 3D design software to create a virtual garment named "Iridescence ". The powerful rendering effect gives it a very realistic appearance. While also allowing it to twinkle and float in mid air as if breathing. However, the technology is still in a state of "static", they need to be adjusted and presented in the form of pictures. AR technology is the key to determine the dynamic performance of digital virtual clothing. When AR technology matures in the near future, it can not only be used in runway shows and concerts, but also meet people's needs.（Nowre, 2019） Because today, more and more people pursue self-image in social media, such as well-known consultancy Virtue Nordic creative director of Morten Grubak puts it: "In the past decade, fashion is from the streets to social media." imagine that as AR matures, more and more people will start using this technology (not just in photos). If you're buying a new outfit just to take a photo and post it on social media, Then buying a real one may not be necessary. Digital clothing might be a good choice. Digital technology has no size limit. Allowing customers with special body types to pursue fashion trends more freely. What 's more, the when clothing display is regarded as the content output, more and more people buy clothing, Shoot and wear clothes, which intensifies the damage of the clothing industry to the environment. Today, Sustainable clothing is the focus of the fashion industry. Environmentally friendly digital clothing is an excellent solution.（Nowre, 2019） Today's fashion industry is facing a huge transition period, and the sudden global Covid-19 outbreak has made us start to think about how we should reform the fashion industry. I think if we can use AR technology (in the next 5 years) on Balenciaga’s products, we can quickly adapt to this transformation. Its application can bring new brand experience to consumers, an opportunity to rapidly improve consumers' own image, and cope with some difficulties in the future for Balenciaga.

The Fabricant

AR COMBINED WITH RUNWAY In addition to virtual clothing, AR can be used to the extreme on the runway. Nowadays, most of the ordinary people get in touch with fashion through fashion shows, so sublimation on the runway can further enhance the attention of the outside world and enhance the brand image.

Nowadays, show forms tend to be single and commercial, and the role of models is only to show their clothing products, but lack of performance and story. It is precisely this kind of dramatic effect that can stimulate the audience's desire to explore the brand and clothing theme at the deepest level. Talented designers such as Thierry Mugler and Alexander McQueen have long used this form to showcase their clothes and concepts.

The application of AR can make designers' wild concepts and ideas come true. The real effects that AR can simulate jump out of the laws of physics in the real world. When some very abstract things cannot be expressed in clothing and products, AR is very attractive in clothing and even space. This not only implements the idea of the designer and the brand, but also amplifies it all.

AR's appeal was demonstrated at the 2018 Billboard Music Awards. Madonna has teamed up with new star Maluma for her comeback single Medellin. During the performance, Madonna danced with a series of AR characters, including a secret service agent, a chacha teacher, a bride, and a musician. All of this is done with Unreal engine and 3D capture, and is able to appear and disappear at the right time, complementing Madonna's performance and making the whole performance more artistic. (Cgangs, 2019) If Balenciaga can combine the dramatic performance form with the presentation effect of AR, Balenciaga will attract more attention and improve the brand image.

Knowledgeable Over the past 20 years, I have never systematically studied any major related to the fashion industry. I am satisfied that I can complete this project with the help of everyone. Special thanks to my advisor Lana and all the industry seniors. It is not easy to do what I love. I believe I can stick to my own path and make a modest contribution to the fashion industry in the future.

Fashion belongs to every era, and I think it is necessary for fashion practitioners to find the right "Orientation" in this rapidly changing era to leave memories that are exclusive to the present, rather than short-lived dopamine. Classics are always the things people passion most about.

Everything that is valuable will be proved by time.

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