@anaroncha - Saïd Business School · Brand Manager and Marketing ... beauty and lifestyle brands...

Oxford Retail Futures Conference | 08-09 December 2014 | Dr. Ana Roncha | [email protected]

Oxford Retail Futures Conference 2014 Innovation in Retail and Distribution

Dr Ana Roncha

@anaroncha


BackgroundPhD in Design and Marketing Management for Fashion, University of Minho, Portugal

Grad Dip in Fashion Communication at Politecnico of Milan, Italy

BA MA Degree in Communication, University of Porto, Portugal

IndustryBrand Manager and Marketing Communications for international fashion, beauty and lifestyle brands such as Puma, L’Oreal, MoMa, Women’Secret, Melt Jewels, Storksak UK, Lisbon Fashion Week, Salsa Jeans, Waikiki and Guy Laroche

TeachingVisiting lecturer of Branding and Marketing at Parsons the New School, Paris, France

Visiting lecturer of Branding at Lasalle College of the Arts, Singapore

Visiting lecturer of Branding at City University, Hong Kong

Lecturer of Fashion Communication, University of Minho, Portugal

Lecturer of Communication at School of the Arts, Porto, Portugal

ResearchPost Doctoral Research Fellow at London College of Fashion, London, UK

TeachingLecturer in Fashion Branding and Strategic Marketing at London College of Fashion, London, UK


“Ethical brand building and the collaborative fashion brand: flying the flag for social entrepreneurship - TOMS a case study” Co-authors: Radclyffe-Thomas, N. and Varley, R.

This case study traces the development of the TOMS brand

and analyses its strategies of social entrepreneurship and

storytelling. It intends to clarify how the building of brand

communities can be underpinned by advocating sustainable

practices.

“Understanding luxury: the underpinning strategies leading to high value perception” Co-authors: Montecchi, M.

The aim of this study is to identify the underpinning

marketing strategies and concepts used by luxury fashion

brands that impact on increased value perception by

consumers. It also intends to develop a matrix to measure

the different levels of luxury.

Research interests and projects “Establishing sustainable differentiation in the creation of fashion brands”

The main purpose of this research is to investigate which

differentiation strategies can lead to establish a competitive

advantage for fashion brands. This research intends to

provide a theoretical framework to capture the key aspects

of differentiation in fashion that are able to implement and

sustain a brand in the market, acting as a strategic tool to

employ by companies when developing new brands.

Can collaboration and relationship building drive design, business and developmental models?

The aim of this research is to investigate and define the

nature of collaborations used by designers and enterprises,

in the creative industries from different EU member

states. Through greater understanding of the practices and

processes involved in collaboration, the researcher aims to

assess the traits of successful relationships.


Crowdsourcing and consumer collaboration driving fashion retail business innovation:

A framework for growth in an interconnected world


Crowdsourcing, initially intended as the practice of making an open call to solve a problem (Howe, 2006), has quickly demonstrated its potential as incubator of innovative ideas.

In fashion, it refers to user-generated clothing designs or user participation in the selection of such designs, allowing for consumers to be directly involved with the brand and to help shape the brand’s identity.

This innovative business model demonstrates how the power of technological innovation was taken further by democratizing the design process and allowing “regular” users to co-create limited edition clothing and accessories.

We are witnessing growing disruptions in the market that allow for product development, innovative delivery systems, a distinctive supplier network, possibility of customization… a whole new array of possibilities that changed the traditional way of doing business. (Denning, 2014)

This economic change was described by Shaughnessy (2014) as a ‘‘a complex transformation in human behavior produced by a new way to satisfy consumption needs’’.

This paper sets to investigate motives and methods behind fashion brands’ utilization of crowd sourcing as driver for innovation across the value chain.

This research explores the extent to which crowd sourcing is changing the business model for fashion brands and prompting engagement with communities of consumers both online and offline.


Platform 01

Luevo

Platform 02

Stylyt

Platform 03

Stitch Collective

Platform 04

Threadless

Business Model

Interaction

Brands to Consumer (B2C)

Brands to Consumer (B2C) Consumer to Consumer (C2C)

Brands to Consumer (B2C) Consumer to Consumer (C2C)

Consumer to Consumer (C2C)

Features Connects independent fashion designers with consumers, Acts as an enabler for designers to obtain pre-production guaranteed orders.

Limited editions, Guest designers, Partner with contemporary brands.

Limited editions, Capsule collections.

Ongoing online competition, Themed Challenge, Designers are given tools to allow them to spread their work and receive votes.

Consumers role Shop Advertise

Design Vote Shop Advertise



Benefits Designers can set up an online shop and determine the minimum number of orders needed. Consumers are able to shop a curated collection of limited edition pieces.

Winning designers receive a piece. Voters of winning piece receive a special discount and exclusive access to sale.

Winning designers receive a piece. Section for priority notification of new contests for designers.

Winning designs receive money prizes as well as gift certificates. Voters are rewarded with purchasing credits for referring sales.

Social Media

Channels

Twitter Facebook Pinterest Google+

Twitter Facebook

Twitter Facebook YouTube Pinterest Instagram

Twitter Facebook YouTube Flickr Instagram Vimeo Reddit Google+

Pre-production

Sourcing. Manufacturing. Forecasting.




Post-Production Visibility and awareness. Low inventory risk.

Visibility and awareness. Low inventory risk.



Table 1. Main findings from case studies

Key challenges that these platforms address:

Pre-production barriers involve finding quality factories and suppliers and being financially stable for a production run.

Regarding post-production, the key challenges relate to visibility and awareness as well as inventory risk.

Fashion crowdsourcing platforms combine two key retail strategies: satisfying demand & building customer loyalty

Implementation procedures that contribute to success:. Clarity and easiness to use by all members of the community. Collaborative dialogue through all parties involved. Transparency of processes. Allowing for customization of existing or designing a piece from start. Incentive based system: benefits for both consumers and brands. Multitasking consumers acquire the role of designers, curators, buyers and marketers. Constant engagement between the platform communities


Partners. Technology

. Fashion communities

. E-commerce developpers

. Brands/ Companies

. Manufacturers

Resources. Online Community

. Platform

. Social networks

Channels. Social Media

. Word of mouth

. Online networks

. Community events

. Partners

Goals. Community building and interaction

. Brand building and/ or expansion

. Partnership development

. Brand-consumer interaction

. Social engagement

. Enhanced customer service

. Increase brand loyalty

. User generated content

. Trend sourcing and market research

. More effective product development

IDEA GENERATION

IDEA SUBMISSION

COMMUNITY CURATION

PRODUCT EVALUATION/

VOTING

PRODUCT PROMOTION

PRE-SALE

MANUFACTURING

DELIVERY

Brands

Consumer

Consumer

PRE-PRODUCTION POST-PRODUCTION

Drivers. Community interaction

.Membership

.Shared identity

. Benefits

. Exclusivity

Goals. Community building and interaction

. Brand building and/ or expansion

. Partnership development

. Brand-consumer interaction

. Social engagement

. Enhanced customer service

. Increase brand loyalty

. User generated content

. Trend sourcing and market research

. More effective product development

The crowdsourcing retail business innovation model developed aims to explore some of the critical attributes and challenges of such initiatives as well as clarify the necessary steps for such initiatives to happen.

Apart from providing engagement benefits, crowdsourcing platforms are creating socially driven experiences.

Consumers are being immersed in the content, interacting and expressing their own choices and designs.

It is an open-ended ecosystem where anyone can take the lead and assume key roles.

This leads to a business model that is changing the boundaries of traditional fashion formats.


In conclusionThe dynamic between brand and consumers has changed, through allowing the consumer to actively participate in the construction of the brand identity, bringing the brand closer to the consumer.

With crowdsourcing this process is taken further, by bringing the consumer closer to the decision making process of a particular brand. As such, crowdsourcing is regarded as the ultimate edge of the experience.

These crowdsourcing platforms are using social media to increase both the breadth and the depth of inputs it can obtain from consumers at a significantly lower expense. (Evans et al, 2005; Hull 2004)

By involving consumers in the early stages of product development, up coming brands and designers can save both time and expenses and reduce the risk of failure of the new product and leads to what can be defined as a collaborative new product development (NPD) (O’Hern and Rindfleisch 2009).

Value creation takes place through the interaction and experience of creating unique products.

As a consequence, consumers are increasingly connecting to these platforms as a way to engage in compelling experiences and through matching customer value and new business models, innovation in fashion business formats is made possible.


THANK YOU!Questions? [email protected]

@anaroncha - Saïd Business School · Brand Manager and Marketing ... beauty and lifestyle brands...

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