21cluxuryconsumer-12699050544756-phpapp01

7/31/2019 21cluxuryconsumer-12699050544756-phpapp01

1/62

copyright 2007 moda360 worldwide ltd.all rights reserved

Strategic Brand MarketingIn The ber CompetitiveGlobal Denim Market

Case Study: Joes Jeans


2/62


moda360Global Brand Marketing Analysis:

I. Luxury Category & Consumer

II. Denim Market

III. Case Study: Joes Jeans

IV. Presentation Summary

V. Q&A + Joes Jeans Pictorial


3/62


moda360

I. GLOBAL LUXURY MARKET

21st

Century Realities


4/62


moda360Market Statistics

Luxury market is stronger than ever;expected to grow to $2TN USD by 2010

Luxury fashionmarket represents about 5%

of total luxury market by 2010, estimatedto be $100BN USD

At current growth rate (10-15% annually),

luxury market will reach $2.4TN USD by2012 and $3.22TN USD by 2017


5/62


moda360

0

0.5

1

1.5

2

2.5

3

3.5

2010 2012 2017

Luxury Category(in $ USD trillions)

Luxury Fashion(in $ USD trillions)

Projected Market Growths


6/62


moda360Market Statistics - continued

Western markets (US & Europe) are less brandloyal vs. Eastern countries; seek the best

US & European consumer demand a luxury

experience at all touch points that resonates Eastern consumers desire status symbols;

flashier, ostentatious, & more iconic the better

Consumers are willing to pay any price forquality, service, design, & cachet


7/62



Luxury goods are very selectively distributedby geography in limited quantities to controlbrand image

The unattainable & exclusivity is whatconsumers want, and will allocate income forit fantasy and dream fulfillment

Consumers want an ego-boost; womenespecially are compliment-seeking whendeciding luxury purchases


8/62



Less than 1% of global luxury market goodsare the extremely rich

In fact, 20% of shoppers account for 80% of

revenues in upscale market; in some cities,the ration is 10:90

Consumers want an all things luxury haute

lifestyle and will budget to attain and beconnected with it


9/62


moda360Market Statistics - continued Consumers look to luxury for differentiation,

innovation, & customization to satisfy theirdesire to be perceived as inventive & unique

Luxe purchases justified as investments

Luxury consumer is found across all ethnic,age, cultural, socio-economic, and classgroups for both genders around the globe

The luxe life is no longer reserved just forcelebrities & the ber-wealthy


10/62


moda360Market Statistics - continued Luxury consumers are increasingly more savvy,

smarter, fickle, decisive, & product educated 90% of them come from middle class, not trust fund

families; common denominator is psychographics

In the usual serious luxury categories, the rarequotients of pleasure embedded in branding &marketing can lure and retain consumers greatersales & profitability

Dont confuse fun with fads; luxury consumerexpects consistent, consummate execution in allareas (product quality, service, overall value,

customer relationships)


11/62


moda360Market Statistics - continued:

Todays luxury is tomorrows necessity;markets are always in motion &becoming more luxurious

Vital to remain fresh, current in luxecategory; amplify & inflate qualities

Remain stagnant & constant, you willbecome obsolete, left behind, forgotten


12/62


moda360Market Statistics - continued Number of global millionaires & wealthy elite

continue to increase, with an expected rate of7% in the next 3-5 years

According to the 2005 U.S. census, 15.1

million HH earned $100K+ USD; analystsestimate 24.6 million HH for 2007 Increasing number empty nest, baby

boomers households w/ discretionary monies Prevalence of aging singles; postponement

of marriage & children


13/62


moda360Market Statistics continued Emerging markets (Asia, India, Russia,

Australia, & Middle East) are expected to havethe fastest gains in demand for luxury goods,with China dominating the lead with estimates

of a 10-fold rise over the next 5 years Demand for luxury grows despite economic

concerns (downturns) & political uncertainties

on a global scale


14/62


moda360

II. DENIM MARKET

The Facts


15/62


moda360Denim Facts $49 billion USD industry worldwide

according to 2004 figures, estimated toincrease by 8.9% over the next 7 years

Projected retail market value by 2014?$52.2 billion USD


16/62


moda360Denim Facts continued

Worldwide phenomenon worn by bothsexes of all ages across all cultures andsocio-economic demographics

Redefined as a wardrobe staple &fashion statement; readily acceptable atthe workplace, evening functions, specialevents, & assorted dressy occasions


17/62



High profit, low-overhead, easy-entryindustry with literally hundreds of brandsin the global marketplace

Youth-driven business, largely tweens,teens, and 20-year olds

Professional & middle-age audiencesare responding rapidly to new lifestyle


18/62



Denim can be divided into 3 buyercategories from POV of todays savvyconsumer:

Utilitarian (eg. workmen's uniform)

Wardrobe staple (eg. khakis, cargo, camo)

Luxury statement (eg. haute couture,designer RTW, haute lifestyle)


19/62


moda360Denim Facts - continued

Graphically, the denim market isdivided as follows:

Mass

Midrange

Premium


20/62


moda360

Denim Facts continued

Premium denim (defined as jeans with prices ofat least $70 USD wholesale) is fueling thedenim & cotton categories; quality, fit, stylingkeeps improving drives the market

With exponential growth in popularity (hence,sales) each year, denim is the new blue chip

stock of the 21st century with no signs of marketslow down or decline


21/62


moda360


Premium denim sub-category hasballooned from $14 billion USD in 2004to $15.8 billion USD in 2006

Since the launch of the modern premiumjean category in 2000, worldwide denimsales has steadily climbed to 3.5% in

2004, and is predicted to reflect doublethat ratio by years end 2007


22/62


moda360


Though only accountable for a tinyfraction of denim sales worldwide,premium denim has ushered in the most

significant fashion movement in history Economic forecasters predict longevity

of this specialty market, entrenched intodays lifestyle-oriented consumer


23/62


moda360


So what of the Denim Bubble theory?? Competitive shake-up already evidenced

Continuous stream of new brands vying formarket share, status, influence, retail space

Lifespan of a premium denim brand is shortlived for the vast majority due to over-whelming market saturation

Increasingly challenging to sell to themodern, intelligent consumer


24/62


moda360

Denim Facts continued Revolution to Evolution: No longer

regarded simply as a textile, denimmanufacturers continue to push theenvelope on technological innovations,usages, & applications

Premium jeans have defiantly conqueredthe khaki, cargo, black pant, & leggingquintessential wardrobe extension oftodays style conscious global society


25/62


moda360


The capsule history of the premiumdenim market has aggressively evolvedfrom product & category defining to

brand & lifestyle positioning Establishment of a new apparel genre

Defining usage (the 5 Ws)

Convergence on differentiation & nichestrategies


26/62


moda360


Decide & commit: Mass market (high volume @ discount)

Midrange (mid-volume @ select price points)

Premium (low volume @ luxury price points)

Resources & competitive advantages

Honest analysis of capital, distribution, talent,technology, market savvy, forecasting, execmanagement, timeliness, & commitment


27/62


moda360


So, you think youre ready for the majorleagues??

Lets take a step-step study of how one

aspiring designer defied the odds tolaunch a successful premium denimbrand its humble beginnings as a LAcult favorite to international acclaim


28/62


moda360

III. Case Study:Joes Jeans


29/62


moda360

Joes Jeans: Brief History

L.A. denim brand founded in 2000 byJoe Dahan

Launched first collection of womens

premium denim in S/S 2001 @ Magic Original inspiration: edgy, rocker chick

Market strategy: push effort viaindependent sales showrooms


30/62


moda360


Early competition: 7, Citizens, Blue Cult,Habitual, & Paper Denim & Cloth

Distribution focus: specialty retailers andkey influential department stores

Pricing: competitive

Sales points: sexy, edgy alternative


31/62


moda360


Early challenges: Brand identity

Niche market

Differentiation

Capital

Exposure


32/62


moda360


Early efforts to meet challenges: Creative

Press

Advertising Promotion

Sales push-thru strategy


33/62


moda360


Early stumbling blocks: Rapid market saturation Slow or incapable of responding to fast

changing dynamics of industry

Entrenched media darlings

Distribution limitations

Slumping sales; poor sell-thru results

Inconsistencies

Lack of marketing or branding direction


34/62


moda360


Inept corporate structure & culture: Lack of strong management & leadership

Understaffed, underdeveloped departments

Vague areas of responsibility, duty &accountability; poor communications

Lack of team & departmental cooperation

Overall dysfunction & unpreparedness


35/62


moda360


Solution Reinvent

Relaunch & Revitalize

Restructure Redefine

Regroup

Reallocate resources


36/62


moda360


Close inspection of competition Highly identifiable product

Quality construction & details

Consistencies Performance

Brand & consumer focused

Emphasis on pull strategy


37/62


moda360


Man in the mirror Retail & buyer feedback

Consumer thoughts

Media POV Product review

Company organization


38/62


moda360


Do or die Retract outsourcing of creative & press efforts

Focus on consumer needs & wants

Product redesign

Develop market strategy

Branding seminars & handbook guidelines


39/62


moda360


Sound marketing directive: Initiate pull strategy

Create awareness

Consumer orientation

Hone inconsistencies

Media outreach

Think outside the box


40/62


moda360


Judgment day Spring 2004 marked the re-launch of the

womens premium collection @ Magic

Introduction of new & differentiated productbased on fits (first in industry to hedge onthis strategy)

Cohesive message established New moniker JOES


41/62


moda360


Forest from the trees Brand emphasis

New category possibilities

Lessons from RTW & luxury empires Designer lifestyle vs. apparel garment focus

Redefining; avoid commodization

Engage target consumers


42/62


moda360


Back to the basics Acquire media placement

Forge alliances with the trade

Create awareness

Connect with the consumer

Build celebrity & VIP following


43/62


moda360


Clean up your act Damage control

Restore relations & acquire new ones

New & positive attitude

Accommodation & availability (service!!)

Explore grass roots efforts in conjunction withbig ticket expenditures (mix & match)


44/62


moda360

Joes Jeans: Milestones

Dawn of a new era Media blitz

L.A. Fashion Week runway show

Publicity!! Strategic collaborations

Strong, edited core designs

Promotions

Charitable causes


45/62


moda360


Strong product foundation for growth Calculated line expansion

From 6 Fits in 2004 to 8 Fits in 2005

Introduction of capsule sportswear group Exploration of product expansion

Mens collection

Gold Label limited edition International distribution (Japan & Europe)

d 360


46/62


moda360

Joes Jeans: Milestones Revisit the competition

Top brands: True Religion, AG, Chip &Pepper, Earnest Sewn, Rock & Republic,Hudson, Paige Premium, Rogan

Embrace the trends Distressed to clean; plain to

embellished; bootcut to skinny;exploration of proportions

d 360


47/62


moda360

Joes Jeans: Milestones Qualify & quantify success of the newly

installed pull strategy: Increased sales volume? Expanded distribution?

Customer loyalty? Celebrity following? Brand & product recognition? Interests from foreign markets? Merchandising effect? Consistent across all customer touch points?

d 360


48/62


moda360


And who says you cannot quantifymarketing efforts?

0

10

20

30

40

50

6070

80

90

2002

2003

2004 00

5

2006

2007

2

GrossRevenues(in millions)

d 360


49/62


moda360

Joes Jeans: Milestones Strong brand foundation for growth

Womens RTW

Kids expansion

Handbags & other accessories Flagship stores & retail outlets

In-store vendor boutique R/E

Licensing opportunities Lifestyle orientation build customer base

d 360


50/62


moda360WWD, May 2006

d 360


51/62


moda360DNR, October 2007

moda360


52/62


moda360


Reaffirm brand image against newcomers:J Brand, Siwwy, Kasil, Rich & Skinny,

Innovate: colored jeans, new denim shapes,

luxe hardware, custom handwork, classicbejeweled, coated denim, multihued dyes

Low-rise to mid and high; skinny to flared

and wide; 5-pocket basics to trouser styles

moda360


53/62


moda360

IV. EXECUTIVE SUMMARYTake Heed & Follow Thru

moda360


54/62


moda360

Recap: Luxurious Future

Premium (or luxury) products andservices require more sophisticatedmarketing & branding approaches vs.mass or midrange categories

Push strategy cannot be the long-term focus of a business; the most

successful companies create a needthat the customer finds it wants

moda360


55/62


moda360


Entry into the luxury industry or categoryrequires exhaustive planning andcohesive marketing & branding plans

Company + designer + brand + productsmust all align as a parallel entity thoughdistinctively separate

Customer is king in the luxury kingdom

moda360


56/62


moda360

Recap: Luxurious Future Fostering of trade relations is vital to success &

longevity of any business No amount of advertising can compete with

third party validations & word of mouth

Realize proactivity in thought & action vs.reactivity to market changes

Innovate, anticipate trends, set the pace,

become an industry leader Be a stylemaker vs. uninspired follower

moda360


57/62


moda360

Recap: Luxurious Future Quality is in the details

Modern consumer is brand emotion orientedvs. product category focus

Strive for perfection to maintain advantage intodays overly competitive global marketplace

Renew, refresh, revitalize, reinvent yourcompany continuously evolve or becomeextinct, unnecessary, irrelevant

moda360


58/62


moda360


Strategy must be well planned &executed to take advantage ofquintessential momentum & synergies

Attune to cultural & socio-politicalmovements (eg. eco-friendly,philanthropy, global harmony)

moda360


59/62


moda360


Apply similar methodology to internal corporatefunctioning; departmental collaborations, fosterteam involvement, establish strong & effectivemanagement

Empower employees to view their jobs ascareers & vital roles in the success of thecompany; build team with premium salaries,

benefits, & incentives; employees & outsideagents must be regarded as strategic partners

moda360


60/62


moda360


Strong, well-defined brand messages;emotionally stimulate & engage consumer

Flexibility and quick responsiveness;

adapt, evolve, embrace market change Stay true to brands POV - an incisive

vision, world, lifestyle consumers canaspire and relate to

moda360


61/62


moda360

Especially Prepared For The Cotton Inc

1st Annual Global Denim Event

Shanghai, ChinaNovember 13 14, 2007

By Adriana M. Joseph

www.Moda360Worldwide.com

moda360


62/62


moda360

Resources:

Trades (WWD, DNR, Sportswear Intl) Market Researchers (Boston Consulting, Brand

Keys, Donegar Group, Luxury Institute)

Newspapers (Fortune, Entrepreneur, BusinessWeek, WSJ, The New York Times)

Government Agencies (U.S. Census Bureau)

21cluxuryconsumer-12699050544756-phpapp01

Documents

Transcript of 21cluxuryconsumer-12699050544756-phpapp01