building brand equity

Building Brand Equity

“in one segment of the world”

● Brand Audit● Establishing Brand Equity:

Associations● Establishing Brand Equity: Awareness● Establishing Brand Equity: Loyalty

What & How?

Answer this: Who do you think you are?“Sleek. Clean. Minimal.”

The Brand Audit

Brand Essence: Clean, Sleek, Minimal; Avant Garde

Core Identity : androgynous hybrid of sportswear and tailored elegance

Extended Identity: Fresh Take on Basic Menswear, Uncompromising (quality, detail, customization)

Brand Identity

The Clock Model: Pre-Purchase, Purchase

Pre-Purchase Elements✓ Website✓ Industry Press✓ Fashion Blogs✓ Social Media✓ Word of Mouth

?%

Purchase Elements✓ Retail Partnership✓ Custom Tailoring✓ In-Studio Exclusives

?%

Post-Purchase Elements

?%

Loyalty Awareness

Perceived Quality

Associations

Proprietary Brand Assets

TODAY: BRAND EQUITY

Three HurdlesHow do you score?

Sustainability

Differentiation

Relevance

“how you are perceived to be by customer today”

Luxury Regions to Enter? (where brand can gain value)

Enter and Expand: Asia

Enter Next: Western

Europe/France

Enter Last: North

America

33% of market

27% of market

25% of market

GLOBAL LUXURY MARKET

$339,371 MIllion

Luxury Region - Asia Asia-Pacific region: Market attractiveness 2012 (excl. China and India)

Japan stands out as:

Attractive & “Safe” from inflation

Luxury Region to Enter and Grow (5 years) Apparel and Footwear Segment

Luxury Region to Enter and Grow (5 years) - Asia Asia-Pacific region: Inflation 2012

Luxury Region to Enter and Grow – Asian Market Growth

JapanLuxury hills and

valleys

Asia PacificLuxury moderate growth

Local Brand Management

Google Trends by Region

France has highest search trend in

luxurySeal of Approval

Japan has highest search trend in

fashionconsumption

Global Luxury Industry at a Glance – Japan

• World’s 2nd largest luxury market in the world• In the past 5 years, sales have grown slower than any

other Asian market = stagnant growth• 2013 new economic policy Abenomics pushed

economic performance forward and sizable increase in wealth thus boosting consumer spending

• But more tax increases are expected and consumers are “investing” into big ticket items today

• Abenomics will not have a further significant impact on economy growth

• Enter and grow: aspirational designerwear lines

Global Luxury Industry at a Glance – Europe

• Eurozone Includes 10 luxury markets in the world (Italy, France, Germany and Spain)

• Due to debt crisis, tight fiscal policies were adopted and less consumer spending was observed

• In future, Eurozone is expected to see modest growth• UK, not past of Eurozone is the 6th largest luxury market

in the world• UK is the fastest growing economy in Europe• Continued recovery in consumer spending

Enter with uber luxury designerwear lines and accessories (not to sell but to dictate global associations & validation)

Global Luxury Industry at a Glance – United States

• Largest luxury market in the world, outpacing Japan by 2 X

• US economy is on a recovery path after modest growth

• Income growth came from high-income households• After tax income for high-income households

outpace tax rate increases

Enter with top luxury and aspirational designerwear lines, accessories will do well too

Tailoring – Avante-Garde – Chic – Colorful

Competition

Competition in Japan Paul Smith rank improves

by 57 points in Japan!

Deloitte “Global Powers of Luxury Goods” I 2014McKinsey “ Luxury Goods in Japan” I 2013

Asian Menswear TrendsLeader- Japan

Follower- Korea

Copy Cat- China

Survey Q? : Please describe the consumerBrand Public Perception

Asian Consumer- China

Japanese Luxury Consumers

Less attractive

Logo fatigue

Younger Generation Consumers

▪ distinct characteristics and needs

▪pursue uniqueness fashion style and

personalized luxury goods

▪ Middle class, white collar and Second Rich Generation

Japanese ConsumersWhere do they Shop?

Tokyo Shopping Districts: Shinjuku, Ginza

Boutique storesHigh-end department storesCompany-Owned storesOutlets

Online

Japanese E-Commerce

Japanese Shopping Trend

Online revenue alone is over $1 billion in 20142 X higher than the Japanese industry average e-commerceUpdate e-commerce offers every 1.5 hours

http://blog.btrax.com/en/2014/06/30/japanese-fashion-retail-brands-getting-e-commercialized/

Recommendation : Define the Target Customer

WHO IS HE / SHE / THEY ???

Loyalty Awareness Perceived Quality Associations Proprietary

Brand Assets

FOCUS ON SEGMENTADDED BRAND EQUITY

BUILDING AWARENESSVIA DIGITAL STRATEGY FOCUS

Digital Media and Luxury

Source: Digital Competitive Map (July 2014) | Source: Exane BNP Paribas

Localize

Content

SEO

SEM

Recommendation: Digital Overhaul ???

Localization

Content Management: Video

Content Management: Shopping Environment

Current Digital Landscape

Website Digital Marketing Mobile Social Media

☑ Technology☑ Navigation☑ Product Pages☑ Custom Tailoring☑ Localize

☑ Search / SEO☑ SEM☑ Blog / Content☑ Other Ads☑ Engage

☑ Compatible☑ Apps☑ LocationAds☑ Catalogues☑ Sizzle

☑ Facebook ☑Twitter☑Instagram☑ Google +☑ YouTube☑ Pinterest

Social Media: RecommendationDomestic strategy

Content Management & SEO: Social Media

Source: - Prphet affluent male

Online Sources To Research Luxury Goods in Japan - 2013

Japan: Pre-Purchase By Device

Apparels & Accessories (%)

Internet 52 %

TV Shows 28 %

Locomi (Local Online Search Service)

14 %

Ads 20 %

Brochures / Flyers / Direct Mail 16 %

In - Store 48 %

Japan: Pre-Purchase Channel

SEM: Current Market Share in Japan

Social Branding Targets: where will you spend???Network Current By Jan 20XX Paid

Source – eMarketer.com : Performance Metrics for Facebook Ads

SEM: Japan Recommendations for Start Up

SEM Budget RecommendedDaily Budget ($)Daily ClicksImpressionsAnnual Max Cost ($)Annual Max ClicksConversion (0.20 %)Conversion RevenueTotal Spend ($)Total ClicksTotal ConversionsRevenue per conversionTotal Revenue

Loyalty Awareness Perceived Quality Associations Proprietary

Brand Assets

FOCUS ON AWARENESSADDED BRAND EQUITY

Survey Q? : Where would you expect to buy these clothes?

Where does the LOYALTY lie?

Loyalty Awareness Perceived Quality Associations Proprietary

Brand Assets

FOCUS ON LOYALTYADDED BRAND EQUITY

● Brand Audit● Establishing Brand Equity: Associations● Establishing Brand Equity: Awareness● Establishing Brand Equity: Loyalty

Conclusion