PDF Presentation Settefili - Team 16 Chupito

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GROUP  16  –  CHUPITO    

Eleonora  Fanini  1343730  Irina  Ghiurova  1237833  

Siyi  Ma  1571397  KrisGan  Marinov  1315910  

Carla  Valeanu  1315571  Alexandra  Zlatanova  1325992  

Market  

Cashmere  Industry  Overview  

RAW  MATERIALS    •  Major  Producers:  China  75%  of  world’s  total  •  Largest  importers:  Italy,  United  Kingdom,  Japan  •  Largest  exporters:  Mongolia,  Kazakhstan,  Belgium,  Turkey  

MARKET  TRENDS  •  A  shrinking  industry,  while  demand  in  China  is  increasing    •  Increasing  prices  and  scarcity  of  raw  materials  •  Growing  demand  for  Label  standards  

CASHMERE  PRODUCTS  •  Italy:  leader  in  luxury  cashmere  market  •  China:  a  low-­‐end  market;  expectaLons  of  cooperaLon  

with  Italian  designers  in  the  years  to  follow  

COMPETITORS    •  Direct:  Loro  Piana  and  Brunello  Cucinelli  +  small  cashmere  bouLque    •  Indirect:  Renowned  luxury  companies  (Gucci,  Louis  VuiSon,  Prada)  

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Desires  

•  Comfortable,  long-­‐lasLng  and  high  quality  fabrics  

•  Unique  design  and  style  •  FuncLonal  website  with  nice  design  

Qualita<ve  Research:  12  In-­‐depth  Interviews  

Target    Male,  age  20-­‐40  and  age  40+  High  income  ($50,000  –  $150,000  yearly)  Intelligent,  confident,  classy,  art-­‐conscious  

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Target  and  Qualitative  Research  

It  is  not  who  makes  it,    

 but  how  it  is  made! “   ”  

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Strategic  Approach  

7

Italianità  

Discreetness  

Uniqueness  

Intellect   Quality  

Nature  

CraFsmanship  

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v  Italian  heritage  v  High  quality  products  v  Family  company  v  Hand-­‐made  products  v  Transparent  structure  v  No  outsourcing  v  Unique    designs  

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v  Low  brand  awareness  v  Poor  distribuLon  v  Low  capital  v  Weak  communicaLon  v  Low  funcLonality  of  the  website  v  Lack  of  accessibility  to  company  

representaLves  

v  Penetrate  new  markets  (Chinese)  v  Increase  visibility  and  loyalty  v  Enhance  brand  image  v  Develop  further  womenswear  and  

accessories  line    v  Website  development  v  Presence  at  Cashmere  events  

v  Dominance  of  Chinese  suppliers    v  Strong  compeLLon  among  Italian  

cashmere  companies  v  Strong  visibility  of  renowned  luxury  

brands  v  Cultural  and  economic  barriers  v  Increasing  raw  material  prices  

Strengths

SWOT  Analysis  

Weaknesses

Opportunities Threats

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Focus  on  China  –  Why?  

v Second  largest  market  world  for  luxury  goods    

v PotenLal  to  become  the  largest  market  as  early  as  the  end  of  2012  

v In  2010,  sales  of  cashmere  goods  increased  by  more  than  30%  

Chinese  Culture  

Consumer  Culture  and  Trends  in  China  

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v  Standing  out,  while  fieng  in  v  Curiosity  regarding  foreign  cultures  v  High  EffecLveness  of  EmoLonal  MarkeLng  v  High  reliance  on  online  purchases  and  social  media  

WESTERN  INFLUENCES  

TRADITIONAL  VALUES  

SOCIALIST  SYSTEM  

A  Mel<ng  Pot  Culture  

PresLge;  dignity;  honor;  respect;  status  Importance  of  public  display  Standing  out  while  fieng  in  

Mian  Zi  (Face)  

“Made  in  Italy”  

“Gil  giving  is  an  art”  

Business  Giling  

“…    Especially  Chinese  (consumers),  who  are  ready  to  pay  high  price  tags  for  a  genuine  brand  that  mirrors  the  culture  of  our  product”  (Michele  Tronconi,  president  of  SistemaModa  Italia)

“A  way  by  which  Chinese  consumer  overcome  the  internal  conflicts  between  discreetness  and  luxury  aetude.”  (Pierre    X  ao  LU)    

Particularities  of  the  Chinese  Consumer  Culture  

28%  36%  

11%  8%  

Main  Chinese  ciLes  Secondary  Chinese  ciLes  

Hong  Kong  Taiwan  

Percentage  of  business  giFs  out  of  total  luxury  goods  acquisi<ons  2011    

Source:  Analysis  by  Accenture  on  KPMG  data,    “Luxury  experiences  in  China”,  2011

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Chinese  Individual  Conflicts  in  Consumption  

SeQefili’s  discreet  and  clear  designs    

Opportunity  to  customize  a  product  and  its  packaging  on  SeQefili’s  website  

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VS  

Frugal  opposed  to  extravagant  lifestyle  

Desire  for  consumer  involvement  in  producLon  process  

Demand  for  discreetly  designed  products  -­‐  no  overt  display  brand  logos  

Fashionable  Mainstream  

Exclusive  Niche  

Intercultural  Conflicts  and  Solutions  

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A  warm  wish  (e.g.  woaini)  inscribed  on  SeQefili’s  product  packaging  

An  introduc<on  of  a  cultural  mo<ve  -­‐collabora<on  with  local  ar<sts,  who  adds  a  detail  to  the  products  

EMERGING  CULTURAL  CONFLICTS  v  Possible  disturbance  of  local  

culture  

FAMILY  -­‐  EXPRESSING  LOVE  v  Italy:  explicitly;  customary    v  China:  not  linguisLcally,  implicitly  

Boutique  Level    Initiatives      

Catalogue  

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Where  v  BouLques  in  the  Luxury  shopping  centers  (e.g.  The  MixC  Shenzhen)  v  Airport  bouLques,  (e.g.  in  Beijing,  HongKong  and  Shanghai)  

Mo<ves  v  Contact  distributors    (crucial  for  development  of  the  company)  

Objec<ves  v  Reaching  a  large  distribuLon  

network  in  a  cost-­‐effecLve  way  v  PromoLng  brand    values  and  

brand  image  effecLvely    v  Nurturing  a  relaLonship  with  

potenLal  buyers  for  the  future  v  Increasing  visibility  at  the  

bouLque  level  

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Catalogue  (2)  Core  Values  

Sensual  and  Visual  Experience  

Story  around  number  “7”  and  ProducLon  Process  

Website  Contact  Info  and    DistribuLon  Map  

Hong  Kong  –  Cashmere  World  Fair    

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25  –  27  September  2013  

MOTIVES  v  The  biggest  cashmere  event  in  the  

world,  where  only  leaders  in  the  industry  are  present  

OBJECTIVES  v  Increase  Brand  Awareness  v  Get  in  touch  with  new  trends  v  Meet  exisLng  customers  v  Capture  new  buyers  (both  B2B,  B2C)  v  Connect  with  new  suppliers/  

distributors  v  Benchmark  compeLtors  

Consumer  Level    Initiatives      

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Why  a  giF  box?  v  Gil  giving  –  deeply  rooted  in  Chinese  culture  v  Habit  of  expressing  love  through  acLons  v  Curiosity  and  aSracLveness  around  “Made  in  Italy”  

Objec<ves  v  Increase  Brand  Awareness  v  Communicate:  “Made  in  Italy”  

and  a  presLgious  image    v  Box  collecLng  for  decoraLon  

Gift  Box  –  “Gift  giving  is  art”  

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Gadgets  

Small  size  

v  Given  to  visitors  of  bouLques  v  “Made  in  Italy”  label  v  “given  with  love”  v  7  versions  with  core  values  

Objec<ves  v  Brand  loyalty,  awareness,  equity  v  Enhancing  luxurious    brand  image  v  Reminder  of  the  brand  (website  link)  

Chinese  consumers  are:  v  Gadget  collectors  v  Impacted  by  EmoLonal  MarkeLng  v  Curious  

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Collaboration  with  Local  Artists  

Cultural  detail  introduced  by  a  Chinese  arLst  

Subtle  introducKon  of  the  “Italianità”    by  adapKng  it  to  the  

Chinese  culture,  while  solving  any  emerging  intercultural  conflicts  

Personalized  

Need  of  “Standing  out  ,  while  fiRng  in”  

Support  of  the  local  culture  

Marginally  broadening  the  design  variety    

Unique  

Collaboration  with  Companies  

Approaching  companies  with  employees  fiTng  SeUefili’s  target:    Architecture  companies    

(e.g.  Wong  &  Ouyang  Group    or  Massimiliano  Fuksas  Group  )  

Aspects  v  Create  purchase  incenLves  –  

discounts  for    Business  gils  v  Channel  future  developed  line  of  

accessories  

Objec<ves  v  Increasing  sales  v  Added  brand  value  v  Increasing  brand  visibility  and  awareness  v  SeSefili  becomes  linked  to  the  image  of  a  

renowned,  successful  business  

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v  Increase  awareness,  becoming  more  global  v  Increase  brand  equity  v  Increase  sales  (online)  v  Consumer  behavior  monitoring,  CRM  

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Order  +  Customize  online  

SHORT  TERM  Video  presentaLon  “Products  and  Core  Values”  

Video  team  and  producLon  

Comments  and  Feedback  

DistribuLon  map  

LONG  TERM  

News  about  new  collecLons/events  

Video  “CollecLons  in  CollaboraLon  with  

ArLsts”  

Website  Improvements    

Online  Customization:  Product  and  Box  

Why  Customiza<on?  v  Mian  Zi  v  standing  out,  while  fiRng  in  

Objec<ves  v  EmoLonal  relaLonship  with  consumer  v  Add-­‐on  customizaLon  experience  v  Gil  –  more  valuable  and  desirable    

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DESIGN  

ACCENT  

KNITTING  PATTERN  

PERSONALIZE  (opLonal)  

COLOUR  

IniLaLve   CalculaLon   Cost  

High-­‐quality  catalogues   5€  x  200  catalogues   1,000€  

Cashmere  World  Fair   approx   400€  

Gil  Boxes   5€  x  70  boxes  x  20  bouLques   7,700€  

Gadgets   0.5€  x  1000  gadgets   500€  

Website  improvement   approx   5,000€  

Total   13,900€  

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Budget  

The  budget  was  an  important  limit  to  our  work  

Thank you!