About BrandSolutions Blogs

Every month I read many newspapers and magazines, focusing on those publications reporting trends in Branding. My goal is to identify branding trends in America through a study and analysis of the reporting of the best publications I have found that cover branding news. I also input my personal commentary and branding observations.

The publications I read and recommend are:

AdWeek Magazine - http://www.adweek.com/aw/index.jsp

Advertising Age Magazine - http://www.adage.com

American Demographics - http://www.demographics.com

BrandWeek Magazine - http://www.brandweek.com/brandweek/index.jsp

Business Week - http://www.businessweek.com

Newsweek Magazine - http://www.msnbc.msn.com/id/3032542/site/newsweek

The New York Times - http://www.nytimes.com

The Seattle Times - http://seattletimes.nwsource.com/html/home/index.html

The Wall Street Journal - http://online.wsj.com/public/us

I hope you'll enjoy reading about fashion branding. I certainly enjoyed putting this "blog" together for you.

A quick note regarding the format of this blog. Read the following sections and commentaries as stand-alone stories.some short, some longer. At some point in the future, I may integrate all the stories into a "best practices" paper on fashion branding.

I found the book, Christian Dior : The Man Who Made the World Look New, by Marie-France Pochna to be an excellent introduction to fashion branding. Let me paraphrase some of Dior's philosophies about fashion.

1. Branding is all about culture and the merchants of fashion ideas are a direct mirror of society and its culture.
2. High fashion is an art form, using the power of imagination to give us an indication of magical seeds of things to come through the power of imagination.
3. Fashion fulfills our desires for fantasy and gives people an escape and a way to rise above our daily life. Fashion stylizes the contours of the female body, enhances female beauty, provides tools for seduction, idealizes our existence, and gives women the power enhance their view of themselves by showing them at their best.

Some top-line fashion branding techniques:

1. Transform the brand name into a potent symbol.
2. Codify the house style.
3. Showcase new styles with runway productions.
4. Promote a single image for all merchandise.
5. Fashion and the press are wedded.
6. Consider distribution to be a partner to fashion.
7. Quality and reliability are hallmarks of great fashion brands.
8. Change with the times.

Many thanks to the editors and reporters that wrote all the great stories and articles.

I welcome your own comments, insights and wisdom. Email me at cpettis@brand.com
   - Chuck Pettis

From Vision to Catwalk, Backstage at Dior
The New York Times, January 20, 2004

First off, let me admit that I love the Dior brand and its look and feel. Check out the Dior web site to see what I mean. The Dior shows are a major production, complete with outrageous clothes, beautiful women, and of course the Dior logo is very visible and every photographer gets a good clean shot. Shows by Dior's John Galliano are seductive and extravagant, producing the publicity and the creative energy that fuels the other parts of Dior's business

From Catwalk to Sidewalk
The Wall Street Journal, February 6, 2004

A key goal of the fashion business is to take designers' best ideas then translate them for real people to wear. New designers and their themes showcase their talents on the runways, which stores then use to create demand for new trends and labels.

Runway styles, the usually highly creative fashion presentations by the major designers, grab attention, create word-of-mouth around a brand and ultimately establish leverage with stores in the form of more floor space and better terms.

The Vuitton Machine: Inside the World's Biggest, Most Profitable Luxury Brand
BusinessWeek Magazine, March 22, 2004

Down in the basement of Louis Vuitton's courtly Paris headquarters is the test laboratory, a high-tech torture chamber for its fabled luxury goods. There, handbags are filled with an 8-pound weight, then hoisted by a robotic arm to a height of a half-meter, then dropped to the floor. A robotic wrist shakes a Vuitton charm bracelet vigorously to ensure no charm falls off.

Desire and ego are the hallmark of luxury fashion - check out the ads in the fashion trade pubs. To create a "want" that stands out from its competitors is key. What makes Vuitton stand out?

1. A relentless focus on quality.
2. A rigidly controlled distribution network.
3. No markdowns or sales are allowed on Vuitton bags.
4. Efficient production in design and manufacturing.
5. Operating efficiencies that enable them to increase advertising and global expansion without impacting the bottom line.

The strengths of Vuitton are many. One is the Vuitton brand loyalty and its status. Women feel one bag is not enough when two Vuitton bags will do so much better. Men also "buy into the dream of Louis Vuitton," buying the status of Vuitton briefcases, wallets, eyeglass cases, watches, jewelry, shoes, belts, etc. Another strength is the speed at which a new design moves into production. Vuitton now moves a product from the decision to launch until it hits the store within six months, almost half what it took five years ago. At the factory, employees work in teams and are encouraged to suggest manufacturing improvements.

Besides improving internal operations, Vuitton's size and brand equity enables it to leverage its large ad budget, 5% of revenues, which is half the industry average. Of course, it helps that the ads feature Jennifer Lopez and supermodels like Naomi Campbell and Kate Moss.

After Long Slump, U.S. Retailers Look to Britain for Fashion Tips
The Wall Street Journal, April 22, 2004

Over the past four years, women's apparel sales are down 10% in the US and up 20% in the UK. Even with 70% of clothes selling at full price in Britain compared to 46% in the U.S.

Clearly, the U.S. women's clothing industry needs change. U.S. sales declined 6.6% in 2003 to $88.9 billion, according to marketing-information firm NPD Group.

Britain's secret to improved sales of women's clothing: change with the times and make shopping fun. Brits on their shopping sprees find pink shopping cards, giant caterpillar-shaped benches and - in one bid to woo customers - 500 naked people on the escalators. Selfridges & Co. included tattoo parlors and body piercing. Window displays of strip-club pole dancers and pictures of models in lingerie wearing cat-head masks add excitement to the shopping experience. America's department stores? Boring.

Other British retailers have overhauled their approach to fashion as well as the look of their stores. Incorporating a "constant newness" approach, New Look Retailers Ltd brings in new items weekly at its 511 stores, nearly six times as often as the average U.S. chain does. When skirts look too similar, executives got suppliers to provide more distinctive patterns.

Different shopping styles affect the differences in retailing. British women shop for clothes an average of three to five times a month, a rate twice as often as U.S. women. British women also spend two to three hours per trip while American women spend less than two hours. British women feel it is acceptable to wear a high fashion item; many American women don't.

Lancome to rely less on the rose and more on a Bold signature to reach younger cosmetics users.
The New York Times, July 6, 2004

L'Oreal, the parent company of Lancome, is dramatically transforming its brand to appeal to younger cosmetic buyers. Changes include:

• Brief bullet points instead of wordy paragraphs
• Strong emotional appeal rather than the rational appeal of "advanced" and "time-release."
• Shiny sensual lips and the archetypal apple (Eve) versus the soft, innocent rose.
• A bold, contemporary signature.

All pointing to a deeper emotional connection with consumers.

Brand Manager Deluxe
The Wall Journal, October 10, 2003

Multi-fashion brand marketing is best personified by Bernard Arnault's "LVMH Moet Hennessy Louis Vuitton" (now that's a long corporate brand name!). It is the world's largest luxury-goods conglomerate, with some 60 fashion and spirits brands, from Fendi, Givenchy, Donna Karan, and Pucci to Dom Perignon, Moet Chandon and Hennessy.

Bernard Arnault's top five qualities for a "star brand:" timeliness, modernity, high profitability, growth, and something more.

In a Clash of Sneaker Titans, Nike Gets Leg Up on Foot Locker
The Wall Street Journal, May 13, 2003

Fashion and distribution go hand in hand. For 30 years, Nike and Foot Locker have been partners in the $16 billion (wholesale) sneaker market. In the past, the two companies grew together, benefiting from each other's strengths. Nike created demand for their shoes by its splashy ad campaigns while Foot Locker's store network supplied customers with the shoes. Then, Foot Locker Inc. and Nike got into a feud.

The feud started when Foot Locker CEO Matt Serra cut their Nike orders by an estimated 15% to 25%. Nike answered by cutting its 2003 Foot Locker shipments by 40%. Nike was able to replace those orders, but Foot Locker wasn't so lucky. When Nike's running division recently introduced a new running shoe which became a top-seller, Nike did not launch the shoe at Foot Locker. Sales at Foot Locker competitors soared while sales at Foot Locker declined during the product launch.

Key issues:

• Discounting and cutting-edge fashion don't go hand in hand. Foot Locker discounted and marked down shoes. Nike wants to preserve its image as the cutting edge, fashion-forward shoemaker.
• Foot Locker takes a "box store" type approach, in which they offer "BOGOs" - industry jargon for "Buy One, Get One Half-Off" sales. Nike steers away from that type of sale as they feel it "commodifies" the whole sneaker market. As a result, Nike discourages these sales by refusing to sell its top selling shoes to stores that run BOGO promotions.
• Who's in charge? The retailer or the manufacturer? On one hand, Nike's dictated very tough terms to retailers, requiring retailers to buy all types of its shoes, not just the hot styles. More recently, Nike has started holding "summits" at its Beaverton OR headquarters for small-but-influential retailers. One retailer, John Lee, owns 10 shops in Philadelphia; he was impressed that "Nike goes out of their way to get our insight."

A look at the Foot Locker web site shows an agreement has been reached. Nike is back and gets top shoe billing on the web site.

Hip Shoes, Not for Hippies
BRANDWEEK Magazine, November 3, 2003

Birkenstock has had the image of stability, comfort and endurance ever since its introduction to the U.S. in the 1960s. Today it is appealing to a new type of customer: the hip, well-educated urbanite who appreciates good design and has the discretionary income to purchase them. The results? Footprints: The Architect Collection in collaboration with Yves Behar (industrial architect). The new branded collection has a distinctly separate identity. Its construction makes it a higher priced product while retaining the comfort or quality for which the Birkenstock brand is known.

For spring 2004, the collection presents eight styles for women and six for men. They feature recyclable "techno gels" for the heels and "branded windows" that reveal the shoe's interior.

I was pleased to see that the Behar's research identified the key Birkenstock brand associations of service, reliability and "green." The attributes of reliability and service are universal purchase factors not to be taken for granted by any brand.

Can We Live Without "Sex"?
The Seattle Times Newspaper, February 20, 2004

The HBO series "Sex and the City" featured attractive heroines who wore fabulous clothes and drank delicious cocktails. The brands? Manolo Blahnik shoes, Dior dresses, Louis Vuitton bags. The jewelry? Nameplate necklaces. The drink? Cosmopolitans. Ah, pop culture again sparks fashion trends. The PBS show, "The Persuaders," tells the story of one Sex and the City episode in which Absolut vodka was the key element in the plot. The concept for the episode was actually proposed by Absolut's PR agency so that they could get "embedded" advertising.

Tommy Hilfiger Brings the Runway to Retailers for 'H'
The Wall Street Journal, March 19, 2004

Tommy Hilfiger launched its "H Hilfiger" (check out David Bowie) collection this spring in a runway show held on the third floor of Macy's flagship department store in New York City. The location underscored a new, democratic theme in which he debuted his collection to regular department store shoppers where they could buy on the spot. Where was the fashion establishment? Nowhere to be seen.

Why the change? For nearly 19 years, the "TH" logo was purchased by hip-hop crowd. Of late, other hip urban street wear lines such as Ecko, Sean John and Rocawear nipped away at its market. H also brings a new identity to the Tommy Hilfiger name: a multicultural heritage.

According to Margaret Mager, Goldman Sachs & Co. analyst, fashion has become more globally produced and marketed thereby losing touch with the consumer. Mr. Hilfiger's response? Consumers "tell you what they want."

Mainstreaming Hip-Hop
The Wall Street Journal, April 20, 2004

Hip-Hop mogul Sean "P. Diddy" Combs announced plans to turn his five-year-old Sean John fashion label into the "urban Ralph Lauren". To do so, he'll buy the skills of Zac Posen, a young fashion designer in New York to further move into the fashion mainstream.

Urban apparel, a subset of the $52 billion menswear industry, has seized market share from the Big Three menswear brands of the 1990s - Polo Ralph Lauren, Tommy Hilfiger and Nautica. It is still growing. Urban apparel includes Sean John, Rocawear, Phat Farm, FUBU, Ecko and Enyce.

Expanding from its young black and Latino audience, urban apparel has crossed over into white suburbs.

To assist in his growth, Mr. Combs recently secured an investment from Yucalpa Co. that has improved Sean John's infrastructure, including combining its warehouse system and overhauling its computer system.

Nuevo Casual. Move Over, Preppy, Hip Hop: The Latin Look Is Bringing More-Sophisticated Separates
The Wall Street Journal, May 21, 2004

A new retailer is joining the big time: Eddie Rodriguez, a sportswear boutique with a Latin style that distinguishes from the preppy and hip-hop looks. The Latin style tends to be more polished: sportswear with a jazzy look. Men's clothes feature linen pants and a free-fitting, untucked guayabera shirt. Women's clothes accentuate the feminine, with asymmetrical-patterned skirts and shoulder-revealing tops. The increasing Hispanic population is now 14% of the US population and 20% of the youth population.

Esprit Redux: Fueled by Strong Growth in Europe, the Once Ubiquitous Brand Prepares for a U.S. Comeback
Newsweek Magazine, May 17, 2004

Esprit now has an sharp look in the European market. With new marketing focus, Esprit is well situated to become the first brand influential in America, Europe and Asia. Each month it rolls out more than 1,300 styles so shops can pick and choose, meeting shoppers' desires for "constant renewal."

Buzz Giant Poster Boy
American Demographics Magazine, June, 2004

The image is the face of Andre the Giant, a giant wrestler of WWF (now WWE due to trademark dispute with the World Wildlife Fund) fame, followed by the word "Obey". In the late 80s, the creator, Shepard Fairey, pasted the posters in the streets and alleys of Providence, Boston and New York. Over time Fairey's talent created buzz among hard-to-reach young consumers. Breaking rules within the urban environment becomes a huge emotional component of the brand identity.

In an April 2004 survey by Yankelovich research, 65% of people said that they feel they are inundated by too many messages and 54% decline to buy products they sense are over-marketed.

Young consumers, in particular, are saturated by advertising and the internet. The OBEY Giant challenges the mass media and people's distrust of corporations. Rather than forcing messages upon the consumer, it builds brand awareness through "word of mouth."

Word of mouth is the optimal media. In BrandSolutions' market research studies, we routinely see that customers prefer a friend's trusted recommendation. Trust leads to the buying decision.

Abercrombie & Fitch May Be Cool. But Cool Only Goes So Far.
The New York Times, July 13, 2004

Sales are down for the preppy retail store. Its CEO, Michael S. Jeffries, is fighting back with increased prices ($148 for jeans), a cleaner image in the catalog, and a targeted market of college kids who want to wear "cool" clothes of a striped shirt hanging over baggy khaki shorts and flip-flop sandals. This image got A&F voted the third-coolest college-student brand after Nike and Sony, according to Mr. Jeffries.