arav fashion group

The fashion world

Mena Marano

CEO Arav Fashion Group

FASHION IS

social and business factor

FASHION IS

constantly chanching influenced

What is FASHION?

*The fashion industry, has

registrated, globally, in

2014 an amount retail of

956 billion euros,

the 7% in Italy.

• Consumers behavior• Globalization• Innovation

The fashion product is divided into different categories :

1. COUTURE

Is a market niche by consolidate stylists used as creative laboratory.

2. PRÊT-À-PORTERWas born in the ‘70 from the union between the fashion industry and haute couture.

3. DESIGNERIs made of the primary stylists’ lines.

4. CONTEMPORARYIs made of the second stylists’ lines

4. BRIDGEIs made of midrange brands (such as Pinko, Silvian Heach, Lui Jo)

5. MASS MARKETIs made of basic not differentiated enough products (such as Primark, H&M, Forever21).

Market Segmentation

Positioning

Market Segmentation

Low propention to consum

High propention to consum

Avantgarde TraditionalValentinoPRÊT-À-PORTER

Roberto Capucci

Stella McCartneyDESIGNER

Fausto PuglisiCONTEMPORARY

Silvian HeachBRIDGE

H&MMASS MARKET

AVANTGARDE CHARACTERIZED

MODERN TRADITIONAL

Market segmentationAvantgarde

AVANTGARDE

Is made of the first lines such as

Couture and Prêt-à-porter

(e.g Chanel, Valentino, Armani)

Is addressed to refined consumer

with an high purchasing power The Avantgardemoves up innovative

models usage

Market segmentationModern

CHARACTERISED

Is the area where high stylists lines are collocated

(e.g Stella McCartney, Fausto Puglisi)

Is addressed to fashion conscious consumers

MODERN

Is the main segmentation developed. In this area we can find the Bridge lines

(e.g Silvian Heach, Pinko, Lui Jo)

Is addressed to fashion and price conscious consumer with mid purchasing power

Market segmentationCharacterised

Companies are very careful at new

trends

Better attention to the service offered

and the point of sale

Market segmentationTraditional

TRADITIONAL

In this area we can find MASS MARKET lines

(e.g Primark, H&M, Forever21)

Is addressed to price/quality ratio consumer

With low purchasing power Companies are very careful at new

trends

Strategic and organizational market orientation

1. 2. 3.

4. 5.

Strategic market orientations

Aiming to your own brand/productCreating new lines (segment or

style diversification).

e.g: SH by Silvian Heach

Diversifying by similar competitors

(diversification of the product).

Granting permits to different

fashion products

(eyewear, perfumery, etc...)

Buying other firms or brands to

attract new target and improve the

sales

New strategies:

Examples of horizontal diversification

BRAND WEARING LEATHER GOODS SHOES EYEWEAR PERFUME BEAUTY WATCHES JEWELRY

ARMANI

BRIONI

BULGARI

DOLCE& GABBANA

TOD’S

GUCCI

PRADA

VERSACE

Strategic market orientations

ARMANI PRADA ARAV GROUP Inditex H&M

Emporio Armani Miu Miu Silvian Heach Zara Cos

Ea7 Church’s Sh Massimo Dutti

Armani Jeans Car shoe Pull and bear

Armani

Collezioni

Fondazione

Prada

Oysho

Armani

Exchange

Stradivarius

Armani Junior Uterque

Strategic market orientationsExamples of vertical diversification

Strategic OrientationsNew rules and dynamic business

To define new business perspectives is important to analyze the basic trendsaffecting fashion world in recent years

• THE CONSUMER: More and more careful, selective, he needs a more personalised approach, a better customer service and cometitive pricese prezzi più competitivi.

• THE PRODUCT: More innovative, ad hoc for market niche (multiple outbounds, fashion colours , particular proposals).

• The service: “customer service” just in time needed.

• THE DISTRIBUTION: The shop has to be diversified and personalized in layout according to the consumer needs.

• THE MARKET: The evolved world consumer is used to high quality and innovative products

• THE COMPETITORS: Are more harde, expecially in mid-range market

• THE NEW MARKETS: Arabic, Indian, South-American and Ansian markets are coming up

• THE COMMUNICATION: In recent years new communication techniques have developed such as Facebook and other social medias

Strategic orientationMain points of new strategies

• Increasing of new products’ proposals and faster processes to lounch these products,the best example are the flashes for planned collections and «compressed supplychain » by following «Zara model»

• The strenghtening of the so-called Brand Identity.

The revival of ancient brands

• New distribution channels, first of all the e-commerce

• Found racing to face the market crisis / Equity

• Focused adquisition related to your own brand portfolio

• So, more than Brand, what is important for either the trade and the consumer are:quickness, innovation, efficiency and service of the company system.

Strategic TendenciesNew Protagonists

The market is waiting for new protagonists either in luxurysegment or in the lower ones.

Companies that have already analyzed the strategic and organizational changes finding the correct solutions, will carve out an important place in this evolving market, despite the crisis in the real market.

An important component is reserved to the opportunities comingfrom E-COMMERCE whose portals became brands. An example is given

from ASOS website that offers also a

products line labelled Asos

Conclusions

Reality requests that any business and fashion part to analyzerequires a targeted strategy and an organizational structure; thesuccess of a business system is linked not so much to excellencein one or two components, but rather the degree of consistencybetween all variables:

• Mission

• Company Capitalization

• Organizational Structure

• Managment System

• Skills

• Shared moral values

Arav Group

History Group

45 Years 48 Years

PRESENCE IN 40 COUNTRIES

2500 WHOLESALE CLIENTS

60 MONOBRANDS

retail stores in Italy and abroad

65 IN-STORE CORNERS

(Coin, La Rinascente, and El Corte Ingles)

3 TRAVEL FLAGSHIPSTORE

(Milano Linate, Milano Malpensa e Napoli Capodichino)

E-COMMERCE

activated in all CEE Countries

MISSION AND VALUE

• PASSION FOR FASHION

• DETERMINATION

• TEAMWORK

• INNOVATION

• CONSISTENCY

2002:

The company was founded

by Mena Marano and

Giuseppe Ammaturo: the

brand Silvian Heach,

specialized in Woman

Fashion Apparel, comes to

life.

TURNOVER 1,3 MLN

2012:

A new cooperation with the

english brand Aston Martin

starts.

TURNOVER 55 MLN

EMPLOYEES 205

2013:

Launch of Silvian Heach

Eyewear collection.

Entry into society of the

Private Equity

Vertis SGR financial Fund.

TURNOVER 70 MLN

2015:

SH launch, entry level brand

for MASS MARKET.

TURNOVER 73 MLN

EMPLOYEES 215

2008:

With the new Label

Silvian Heach Kids the

Group increases its own

offer joining the Kids Wear

Business

TURNOVER 27,3 MLN

Company Evolution

Posizionamento prospettico

SILVIAN HEACH SILVIAN HEACH EYEWEAR SH SILVIAN HEACH KIDS ASTON MARTIN

STRATEGY FASHION GLAMOUR BRAND AWARNESS TEEN DIGITAL ADDICTED DAILY WEAR KIDS ITALIAN BRITISH

TARGET 25/45 20/40 14/25 0/16 0/16

PRICE 60 € 100 € 30 € 45 € 65 €

DISTRIBUTION Whl –Rtl Travel- Dep

Store – Ecommerce

Whl Rtl –Ecommerce Whl – Rtl – Dep Store –

Ecommerce

Whl- Dep Store

CLIENTS 965 514 603 870 160

STORES 30 30

PURCHASES 50% Far East – 50% Euro 100% Italy 45 % Bangladesh – 15%

Asia – 40% Euro

50 % Far East – 50%

Euro

50 % Far East – 50%

Euro

MARKETING Tv – Press – Digital Press – Digital Digital Tv – Press – Digital Press – Digital

COLLECTIONS 80% Planned

(2 Collections per

season) – 20% Flash ( 1

Collection per season)

Planned

( 1 Collection per season)

40% Planned – 60%

Flash (with a 6 weeks

step)

Planned


Planned


Strategy & Development

• MARKETING

• RETAIL CHANNEL STRENGTHENING

• E-COMMERCE

• INTERNATIONALIZATION

Marketing strategy

ADV CAMPAIGN EVENT

BLOGGER

BEST

PHOTOGRAPHER

TERRY RICHARDSON

DAVID BURTON

GIAMPAOLO SGURA

Marketing strategy

CAPSULE

COLLECTION

SOCIAL MEDIA

PR OFFICEOUTDOOR ADV

OUTDOOR ADV VENEZIA

FRANCHISING

BRATISLAVA - AUPARK MALLANKARA - NEXT LEVEL MALLCHANGSHA - INTERNATIONAL MALL KIEV - OCEAN PLAZA MALLMOSCA - AVIA PARK MALL

NEXT OPENINGDOHA - QATAR MALL 16th OctoberMOSCA - AVENUE MALL 16th OctoberKOSICE - TBC

VLADIVOSTOCK - SEDANKA CITY MALL 16th Octob.MINSK - GALLERIA MALL 17th FebruaryKIEV - GALLERIA MALL 16th JanuaryGUANGZHOU - GT LAND PLAZA SANYA - HK 16° JanuaryTZUM - TZUM VORONETZDEMSA - GALERIYA LAFAYETTE ISTAMBUL BRATISLAVA

MILAN

Retail Channel

Online

E-COMMERCE300.000

Monthly Accesses

NEW E-COMMERCE2015

+ 100 %

• Bread&butters BERLIN

• Who’s Next PARIS

• Pure LONDON Modefabriek AMSTERDAM

• Micam Mipel MILAN

• Mido MILAN

• Supreme Panorama

• Momad Madrid

• Pitti FIRENZE

TRADE FAIR

Internationalization

E-COMMERCE STRATEGY

MYNTRAAMAZONLA REDOUTEASOSYOOXSHOWROOM PRIVEZALANDOVENTE PRIVEE


MASTER LUXURY BUSINESS & MANAGEMENT


- NEW MARKET SHARE ACHIEVMENT

- PRESENCE IN NEW TERRITORIES OUTSIDE COUNTRY OF ORIGIN

- RESEARCH OF NEW MARKET NICHE

- INTERACTION BETWEEN COMPANY AND UNIVERSITY

The term "internationalization" means the plan of activities through which a company invests, joining foreign markets with a precise aim: achieve

new market share, with a presence in new territories outside the country of origin. Research of new market niches, it’s important for every

company growth and universities as well, whose update, exchange and interaction represents important requirements.


LONG AND SHORT TERMS TARGETS

INTERACTION BETWEEN COMPANY AND UNIVERSITY :

• KNOW HOW EXCHANGE AND GROWTH

Succeed in achieving relevants markets shares, means to increase the level of experties of all the employees, and to elevate the competitivity of a

company , and to improve the know-how and the joining of intersting markets.

Obviously, companies that decide to control directly the foreing markets, have long and short terms targets, and develop a strong know-how.

Besides this dynamism within companies, crucial is an academic background, characterized by scientific rigor, quality of universities and also the

proximity to a teaching staff, itself characterized by an entrepreneurial attitude, which is expressed in the constant renewal of the existing programs and

research in all fields of knowledge.


INTERNATIONAL FASHION COURSE

It would be interesting to realize a two-handed university course with the Company Silvian Heach from one side, and the Univeristy

form the other and I think this could be a strong openness signal towards contemporary . A concrete answear for the so many

businessmans and youngs interested in developing managerial skills and innovation and promotion of human resources.

This is an invitation to build up together an International Fashion course to support strategies and internationalization activities.

THANKS!