Cordelia Gao

About Cordelia Gao

Posts by Cordelia Gao:

blog 4: purpose

⋅

The final of the four pillars, purpose, serves as a direct representation of a brand’s values and pursuits. And there are 5Ps that can embed purpose into brands’ circumstances to generate related initiatives: portfolio strategies and products, people and culture, processes and systems, performance metrics, and positions and engagements. Companies can apply their situations to the 5Ps to bring them forth and communicate them to consumers.

It is impossible to discuss ‘purpose’ without bringing up Corporate Social Responsibility. CSR is a way that companies take responsibility for their social impact. In the meantime, sustainability is also a concept that can’t be avoided and has a sophisticated connection with CSR. Stephanie Strom of the New York Times introduced Corporate Social Responsibility to the fashion sector for the first time in 1996. And for now, almost every brand and company is taking their CSR in their own way, especially in the sustainability aspect. The key now is how to please consumers today while differing from other competitors.

Consumer preferences are shifting quickly these days, especially for Gen Z, who are thought to be the main influencers that even have a considerable impact on both Millienials and Gen Xers. After understanding their demands, it comes to the challenging part: how to meet these demands while still delivering brand value in an alluring and flawless way at the same time. As of right now, brands typically opt to directly address the most fundamental concerns of Generation Z in regards to identity, values, and personal style, demonstrating their commitment to diversity, originality, uniqueness, and sustainability. Also, they invite Gen Z influencers to embed their ideas and act as ambassadors. For example, Nike collaborated with American artist Billie Eilish, who was born in 2001 and is well-liked by the younger generation, to introduce their AF1 LOW collection. This typical collaboration between Nike and Billie Eilish illustrates how corporations care about sustainability and leverage influencers’ fame and effect on younger consumers, both delivering their purpose and boosting their sales, reaching a win-win situation.

It follows that the brand philosophy is essential for presenting the brand’s mission, vision, and values, for it represents the needs of customers as well as those of society at large. In addition, it’s essential for brands to find their own positioning in the market, understand their target audience, and differentiate themselves from rivals by creating their own unique features and advantages.

To sum up, before expressing purpose, brands need to have a precise understanding of their positioning, target audience, and the market they are in. Companies and brands ought to actively fulfill their CSR obligations, respond to consumers’ concerns, and address customer expectations.

Reference:

Mitterfellner, O. (2023) Luxury Fashion Brand Management: Unifying Fashion with Sustainability. Milton, UNITED KINGDOM: Taylor & Francis Group. Available at: http://ebookcentral.proquest.com/lib/ual/detail.action?docID=7260416 (Accessed: 25 October 2023).

Corporate Social Responsibility and Sustainability (no date). Available at: http://www.bloomsburyfashioncentral.com/bfccoll/encyclopedia-chapter (Accessed: 25 October 2023).

Meet Generation Z: Shaping the future of shopping | McKinsey (no date). Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/meet-generation-z-shaping-the-future-of-shopping (Accessed: 25 October 2023).

Billie Eilish Nike AF1 Low Collaboration — NIKE, Inc. (no date). Available at: https://about.nike.com/en/newsroom/releases/nike-x-billie-eilish-af1-low (Accessed: 24 October 2023).

Liked Liked
No Comments

profit blog

⋅

Among the four pillar in fashion business, profit is an ultimate goal chased by brands and entrepreneurs, for which all strategies and solutions to people, planet, and purpose are for. Brands need profit to maintain all departments running smoothly, especially in this era where various kinds of skilled people are required and cost are controlled and used for its best advantage because of uncertainty of finance and calamity.

According to the statistic provided by Profiletree, the global fashion industry is valued at nearly $1.7 trillion as of 2022. Above this, the fashion market, excluding the luxury sector, was estimated to struggle to deliver significant growth in 2023. According to a McKinsey examination of fashion forecasts, sales growth will be rather moderate, ranging from -2 to +3 percent. This is due in part to a contraction in the European market, which is predicted to fall by 1 to 4 percent (see exhibit) (The State of Fashion, 2023). These anticipated figures are projected globally, and are based on factors like inflation, the conflict in Ukraine, the energy crisis, and dwindling consumer confidence. Dividing into more specific sectors, according to the press release from LVMH, the top three best-sold items are fashion-leather goods, watches and jewelry, and persumes&cosmetics, which all witnessed stable growth in the first quarter of 2023. And the counterpart of Richemont are jewelry, watches, leather goods, which also increase by approximately 20%.

But in the three months that ended on September 30, 2023, LVMH’s revenue increased by just 1% year over year to 19.96 billion euros, with organic revenue growth of 9%—much less than the 21 billion euros that analysts had predicted—and 10% year over year to 62.2 billion euros in the first nine months, with a 14% increase in organic sales, a marked slowdown from the performance in the first half (Ladymax, Huining Zhou). This news release highlights the vulnerability and indetermination of the global fashion industry and raises more concerns about how businesses and brands can maintain stability and competitiveness in the face of volatile economic conditions.

The McKinsey senior partner, Achim Berg, responds to this question in his interviw that brands ought to be well-prepared for any possible situations that they might have to face. In this case, scenario planning may be a crucial tool for brands to foresee the upcoming hazards, such as financial woes and the energy crisis resulting from the war in Ukraine, and initiate solutions that can carry out to cope with risks. On the one hand, changing consumer needs and their consumption patterns need to be taken into serious account as a result of the decency of consumer confidence. On the other hand, maintain appropriate cost control while continuing to make investments in technology, sustainability and other strategies. The whole fashion industry should have a hyper-vigilant insight into the ever-changing world, including politics, finance, and culture, and grasp every fleeting opportunity.

Creative directors, who always play a vital role in constructing brands’ reputation and impression among consumers, have a direct impact on sales and online volume. In addition to designing, they also have to supervise fashion designers, multiple teams, be brand visionaries, and the ambassator of their brands.. When conducting all this work, they may face the conundrum of juggling creativity and commerce at the same time. In this situation, creative directors should consciously target their present and potential clients and launch products, campaigns, and even catwalks with uniqueness and creativity that align with brand positioning and customers’ anticipation. Try to establish a solid and ironic persona among consumers and find the balance between creativity and commerce, express values and an impressive figure in the annual financial report.

In summary, brands and entrepreneurs need to base themselves on the present but prepare in advance for future obstacles and issues.

Reference:

周惠宁 (no date) 财报速递 | 富人也撑不住？LVMH最新季报显示奢侈品需求急剧降温, Weixin Official Accounts Platform. Available at: http://mp.weixin.qq.com/s?__biz=MjM5OTAxMTE4MA==&mid=2652339318&idx=1&sn=a9a28f7f1d15a4d475dbcd295e629c8f&chksm=bd222a758a55a363bafec76611275d04285419db04950848f631a01662f5139ecf8a51706786#rd (Accessed: 20 October 2023).

Fashion industry challenges and global disruptions | McKinsey (no date). Available at: https://www.mckinsey.com/industries/retail/our-insights/how-current-global-trends-are-disrupting-the-fashion-industry (Accessed: 20 October 2023).

‘Global Fashion Industry Statistics: All You Need to Know | ProfileTree’ (2023), 2 April. Available at: https://profiletree.com/global-fashion-industry-statistics/ (Accessed: 20 October 2023).

Mitterfellner, O. (2023) Luxury Fashion Brand Management: Unifying Fashion with Sustainability. Milton, UNITED KINGDOM: Taylor & Francis Group. Available at: http://ebookcentral.proquest.com/lib/ual/detail.action?docID=7260416 (Accessed: 21 October 2023).

State of Fashion | McKinsey (no date). Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion (Accessed: 20 October 2023).

Overdiek, A. (2016) ‘Fashion designers and their business partners: Juggling creativity and commerce’, International Journal of Fashion Studies, 3(1), pp. 27–46. Available at: https://doi.org/10.1386/infs.3.1.27_1.

Liked Liked
No Comments

blog 2 people

⋅

Among the four pillars that construct the fashion business sector: planet, people, purpose, and profit, ‘people’ is a fundamental and unrepeatable component. Entrepreneurs decrease risks and increase profits by adopting sustainable practices, conveying core values, and taking corporate society responsibility to cater to the needs of consumers and society.

For better distinction and summarization, sociologists categorize people into various generations, which are cohorts that belong to the same age range and have certain traits. And Gen Z in particular, the largest generation born between 1995 and 2010, making up about 25% of the global population, has a significant influence on both culture and the economy, making it an alluring target for the current fashion industry. Then what uniqueness and values do these people have in common, and what can brands do to genuinely fascinate these consumers?

According to a survey conducted by McKinsey, in the aspect of consumer behavior and psychology, Gen Z basically has several noteworthy peculiarities that differ from Millennials. Firstly, they have strong ethics regarding racial justice and sustainability, especially climate justice, making it crucial for brands to offer related initiatives. Secondly, Gen Z has an ever-changing style and wants to stand out rather than blend in with the crowd, which urges brands to have a hyper-vigilant trail about the latest trend among them and express the uniqueness of goods in their own way. Thirdly, Gen Z is a good listener and willing to pay for stories if brands communicate strong values and purpose. Fourthly, ease of use is essential for Gen Z consumers in both online and offline channels, questioning the novelty and convenience that brands can offer. Lastly, although Gen Z are digital natives, they seems to like brick-and-mortar stores better compared to Millennials; however, according to the statistics presented by Draper 2023, 92% of Gen Z and Millennials still make purchases on mobile apps, either often or sometimes, revealing the lack of attraction of the current offline storesand the fading interest of consumers.

Based on these features, brands can develop corresponding strategies. In terms of the planet and purpose, brands should adopt distinctive sustainable practices that genuinely assist the environment, as well as create their own values and memorable stories. In the meantime, because many consumers still show their inerest about offline stores, building a convenient shopping channel for both online and offline sales can be primary for brands. Through online marketing promotion, attract consumers by enhancing the novelty and interactivity of offline stores and campaigns, boosting shop traffic, and lengthening customers’ duration of stay.

In addition to this, brands ought to work harder to build diversity, which is also crucial for Gen Z customers. Rabanne, for instance, which is known for its perfume products, joins the fiercely competitive Gen Z beauty race with its new 90-piece collection. The desire of Gen Z customers for self-expression despite varied genders and skin tones is the cornerstone of its new collection’s distinctiveness. Meanwhile, it addresses this cohort’s common concern about deteriorating the environment, including water contamination, by using natural ingredients and sophisticated texture in the production process, as well as combining the metallic aesthetics that accentuate the signature of brands.

The new move made by Rabanne illustrates the current state of the fashion industry: brands are all vying for the attention of Gen Z consumers by cultivating a sustainable and diverse reputation, as well as expanding into new markets and businesses such as beauty, fragrance, sports, NFT, and household. During this process, a challenge for skilled people emerged for brands and companies to take into account. According to the report presented by London College of Fashion, UAL, eight highlishts are promising to be indispensable for fashion practitioners in the future: sustainable knowledge, fashion-tech skills, human factor, joint research and development, soft skills, traditional skills, ethical and responsible consumption, and new strategies for the digital experience. Fashion brands require all of these competencies to run their businesses, stay current with trends, and meet consumer demand now and in the future.

To conclude, generation Z, due to its sizable population, unique values, and consumer viewpoints, has gradually become a sought-after object in the fashion industry. In the meantime, fashion brands need to innovate to be capable of sustainable, digital, and other key abilities to fulfill consumers’ values and growing needs.

Reference：

What is Gen Z? (2023) McKinsey & Company.

BoF Insights | Gen-Z and Fashion in the Age of Realism (2022) The Business of Fashion. Available at: https://www.businessoffashion.com/reports/retail/gen-z-fashion-in-the-age-of-realism-bof-insights-social-media-report/ (Accessed: 10 October 2023).

Long, C. (2023) ‘Rabanne joins Gen Z beauty race with cosmic cosmetics collection’, Financial Times, 23 August. Available at: https://www.ft.com/content/936bd4e5-8cd5-4e1f-b5dd-d25a1be8dc17 (Accessed: 11 October 2023).

UAL (2021) New FTAlliance report unveils the 8 key future jobs in fashion-tech, UAL. Available at: https://www.arts.ac.uk/knowledge-exchange/stories/new-report-unveils-8-future-jobs-in-fashion-tech (Accessed: 11 October 2023).

Liked Liked
No Comments

Planet blog one

⋅

In the fashion business field, there are four key pillars that play a dominant role and will never be left behind: the planet, people, profit, and purpose. These four ideas, which are intricately linked to one another and all share the same significance, are the foundation upon which all brands and enterprises establish their operations.

For the first pillar planet, according to the statistics presented by Climate Trade in 2023, the fashion industry ranks third among the most wasteful industries, accounting for approximately 10% of the annual carbon footprint of the earth. Also, the fashion industry causes catastrophic impacts on soil, water, forests, and other ecosystems. In this case, after consumers’ awakening, companies started to realize the urgency of fulfilling the sustainability strategy. And during this process, many new concepts emerged. The circular economy, for instance, a replacement for the preceding linear economy, aims to keep resources in use for as long as feasible. In this process, goods can be converted and reformed several times to exhaust their last value through a technical or biological cycle. This economy is a solution to the fact that people are losing so many finite resources.

Till now, all the practices of the sustainable strategy are originated from the 17 Sustainable Development Goals that were presented by the United Nations, urging people to end poverty, inequality, protect the planet, and so on. Among all the 17 goals, ‘good health and wellbeing’ is one of the most fundamental ones, for it’s the most primary need for survival. And tons of fashion brands have taken action in this field. For instance, Ralph Lauren Corporation’s global endeavor to combat cancer, the Pink Pony Campaign, has been ongoing since 2000. 100% of the price of unisex fleece hoodies purchased by customers is contributed to Ralph Lauren’s fight against cancer, and 25% of each Pink Pony collection purchase is donated, benefiting people from all over the world. As it has expanded in the Chinese market in recent years, a noticeable number of consumers actively respond and spontaneously initiate solidarity on social media for this campaign. Through this, the brand successfully builds a reputation among consumers for its sustainability and humanitarian care.

In fact, fashion is intended to encourage the personal expressions of every individual. However, all these expressions are based on the point that people can make a living on this planet. At this point, fashion ought to play its vital role and be an incentive for people, not just because it made an undeniable negative impact but also because it is the product and reflection of human society. Fashion can no longer move forward without this planet, and the fashion industry will be betrayed if it can no longer think what people think and do what people do.

In short, sustainability from the planet pillar is becoming a core and well-known strategy in the fashion industry. It’s where fashion is heading and the urgent demand conveyed by consumers and the whole society. This demand will endure as long as humans still inhabit the planet. Fashion business, especially fashion marketing, is the way to convey strategies, connect with people, and cater to all these needs. Even though sustainability has been discussed for such a long time, there will always be new solutions in this world where change is both necessary and inevitable.

Reference:

Plasencia, J. (2023) ‘The world’s most polluting industries’, ClimateTrade, 11 May. Available at: https://climatetrade.com/the-worlds-most-polluting-industries/ (Accessed: 4 October 2023).

Ellen MacArthur on the basics of the circular economy (2020). Available at: https://www.youtube.com/watch?v=NBEvJwTxs4w (Accessed: 5 October 2023).

Pink Pony | Ralph Lauren® UK (no date) Ralph Lauren. Available at: https://www.ralphlauren.co.uk/en/pink-pony/705914 (Accessed: 5 October 2023).

Collaborating for Change: Sustainability Report 2022 – Drapers (no date). Available at: https://www.drapersonline.com/guides/collaborating-for-change-sustainability-report-2022 (Accessed: 22 October 2023).

Liked Liked
No Comments