The Survival of Fashion Luxury Brand When the Designer Changing: How to Balance Design and Market in Order to Maintain Brand Value
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2021 International Conference on Education, Humanity and Language, Art (EHLA 2021)
ISBN: 978-1-60595-137-9
The Survival of Fashion Luxury Brand When the Designer Changing:
How to Balance Design and Market in Order to Maintain Brand Value
Yi-yan WANG1,a
1
Fashion Institute, Changzhou Vocational Institute of Textile and Garment, Changzhou, China
a
wangyiyyan@163.com
Keywords: Brand equity, Luxury fashion brand, Fashion designer, Marketing strategy, Visual
communication.
Abstract. Fashion designer is one of dominate role in a fashion luxury brand. There are many cases
that luxury fashion brand via recruiting a creative designer to revive their commercial empire. For
example, Tom Ford capitalizes on ten years to make nearly bankrupt Gucci resurge, even become a
bellwether that value 4.3 billion market cap in the luxury industry[1]. But, that is not mean every
designer could be lucky to cooperate with a brand that match his or her design style, such as the
transitory cooperation of Kalvin Klein and Raf Simons. Thus, except the cooperation situation of
designer and company, the other critical factor to determinate one designer whether match a brand
is the balance between design and marketing. This report examines the plight of fashion luxury
brand when designer changing. And explore how to remedy the loosing of brand core
competitiveness and discuss a sires of reasons why new design concept useless for sales
improvement, also, how to utilize marketing strategy such as visual communication to maintain
brand equity. In this paper, the author conducted a series of comprehensive methodologies such as
content analysis, historical research and case study to probe the role of designer for luxury brands
and describes that marketing strategy might contribute to protect brand value in the period of brand
upgrading. The research finding that, whilst designer changing, the visual marketing could be an
effective method to help luxury fashion brand tide over difficulties, whole visual presenting of
brand could maintain the impression in customer mind.
1. Introduction
The global market of luxury has increased significantly in the past twenty years, but also
experienced many changes. In 2007, the worth of this industry reached $263 billion approximately,
which surpass 31% than past the five years[2]. In France, luxury fashion industry has been become
the fourth largest source of revenue. In Britain, the proportion of luxury expenditure increasing
exceed the cost of non-luxuries raising about 43% during the period from 1994 to 2004[3]. In
recently years, basing on a report from[4], the total sales of garments and shoes in Europe and North
America has declined from more than 50% of global market in 2017 to less than half in 2018,
because of the distinctive trend of economy, digital transformation and the continuously shifting of
consumers’ tastes and preference, the control of luxury consumption has switched gradually from
west world to emerging market, such as BRIC. Apparently, many challenges will appear for luxury
fashion brand, except the transfer of the supply chain and regional trade differentiation, the style of
products of luxury fashion brand will become an essential factor to adapt to new customers from
emerging market. Therefore, global luxury market is full of competition. A majority of luxury
fashion brands tend to concentrate on a series of necessary revolution about design in order to catch
the potential market. Part of luxury brands appointing a new designer, part of brands assimilating
their logo into public trend, part of brands subverting the style of the product line. However, success
and failure always appear together, certain brands obtain the rebirth, but some brands are in a
dilemma.
This investigation will present an issue in luxury industry facing, which is considering other
approaches to maintain luxury brands image and value when brands revolutionizing. The authors
251will concentrate on a special situation of luxury fashion brand encountering, which is major
designers of changing or the style of the product line shift. This research proceeds first by a number
of case studies to show the influences of designer and design on the brands, then analyzing the
reasons that success or failure of brand revolution. Next, the author explores solutions from a
marketing perspective. Finally, the paper will outline the research methodology employed, discuss
limitations, brief timetable and conclusion.
2. Definition of Luxury, Luxury Brand and Visual Marketing
Luxury is a considerably complicated notion, Multifarious definition will have from different
people and different perspectives. “Although some semiotics scholars have argued that there are
certain “codes of luxury” that are consistent across disciplines and ages[5]” Many people attempt to
give a definition to luxury, such as luxury is a relative concept. Yeoman says “the concept of luxury
is incredibly fluid and changes dramatically across time and culture. [6]” In addition, luxury once has
a metaphor of mirror that reflects the continuously changing of humans’ desire, which a description
from historical perspective[7]. Kapferer and Bastien consider that luxury is no longer a material
stimulating social hierarchy, it becomes a type of goods of the public[8]. While a majority of
customer believe luxury is a symbol of high-quality and professional craftsmanship. On the other
hand, what is a luxury brand? Ko and P. et.al defined that “A luxury brand is a branded product or
service that consumers perceive.[9]” A luxury brand should be high-quality, offer aesthetic value via
desired benefits, whether functional or emotional. Also, Luxury brand should have a prestigious
image within the market built on quality and be worthy of commanding a premium price, moreover,
luxury brand should be capable of inspiring a deep connection, or resonance, with the consumer. [9]”
Visual marketing is a kind of marketing that synthesize marketing information and image
materials such as photos, graphics, infographics, videos, logos, signs, and more. Visual marketing
concentrates on an object, not text, “because human beings respond best to nonverbal (without
words) communication”[10]. Psychologist believes that visual material could help people to
memorize and keep more details, meanwhile, visual signal could help observer to absorb more
attention on certain object, also focus on consumers’ mood. In addition, for luxury brand, visual
design is one critical part to present brand image. Also, visual marketing is not just for publicity, it
could be visual guidelines[11]. Johnson said that “visual content proves to be more shareable,
persuasive, and easy-to-understand than written content, making it a key piece of any retailer’s
marketing strategy in 2019 and beyond.[12]”
3. Case Study of Calvin Klein and Gucci
Although the academic provided many definitions and notions about ‘luxury brand’ and ‘designer’,
but less literature could clearly evaluate the relationship between designers and brand. In order to
positioning the role of designer and explore methods to maintain brand equality, this part will be a
literature review about brand case study of two Luxury brands, separately is Calvin Klein and Gucci,
to discuss the balance between designer and brand. The first case is Calvin Klein, which the
synonymous of voguish American minimalism and the modern, neutral lifestyle in 70s. In 1968,
Calvin Klein established this brand with his friend Benny Schwartz. In 2016, Calvin Klein hired
Raf Simons as creative director on August 2nd[13]. But, after 28 months, before the end of three-year,
this promising cooperation break out. This suddenly terminating an agreement make a great impact
on whole fashion industry undoubtedly. The chief executive officer of PVH (Phillips-Van Heusen
Corporation) Emanuel Chirico said “While many of the product categories performed well , we are
disappointed by the lack of return on our investments in our Calvin Klein 205W39NYC halo
business and believe that some of Calvin Klein Jeans’ relaunched product was too elevated and did
not sell through as well as we planned.[14]” Because PVH, the parent company of Calvin Klein,
poured money that over $6000 million to Calvin Klein 205W39NYC during the past three years,
especially the expenditure of product development and marketing work increased which higher
252approximately $1000 than the prior-year period. Chirico further presented that the CK jeans with
new design is ‘fashion miss’, he told investors, form product perspective, they experienced an
overdevelopment period on fashion and price. Apparently, Calvin Klein hopes Simons could renew
and upgrade brand as splendid as Alessandro Michele rescuing Gucci, but, the CK jeans and
underwear labels are a deep impression in mass cultural and distribution, expecting a creative and
brainy like Simons leading in mass filed could be risky, the filed that he has little experience [15]. In
addition, observers query that because Raf Simons is not a household name, thus, “that halo effect”
whether worked effective and helpful for brand sales is a question. Morris Goldfarb, CEO of G-III
Apparel Group indicated “Today, if you took a poll on the Calvin Klein customer, who’s Macy’s
and Dillard’s, and ask them who Raf Simons is, I think you get a zero. I think you probably get less
than 10 percent of the fashion population that knows who he is[16]” Market source showed Calvin
Klein and Simons is a wrong match, Simons has background of Haute-couture and advanced
ready-to-wear in Dior and Jil Sander, he might unfamiliar with mass market, also, after Simons
joined the company, he rebuild his team, changed activities of advertising and basically reinvented
the business. Although Calvin Klein has an expectation of upgrading brand, leaving much power to
Simons may be an inappropriate decision. Robert Burke, CEO of Robert Burke Associates, reveals
that a business like the size of Calvin Klein to relinquish entire creative control power is “a huge
leap of faith”, Calvin Klein should implement a sires of measures to keep the power of scrutinize in
order to avoid the product development part out of control. On the other hand, the factor of this
failure case is the gap between design and the cognition degree of public. During past two years,
Raf Simons is enthusiasm for cooperate with artist, such as Andy Warhol and Sterling Ruby.
Apparently, Raf Simons plan to improve the aesthetic level of Calvin Klein. And, he also invited the
Kardashians for advertisements. Those sires of performance make major medias confusing, and
consumers also feel ambiguous about brand positing and brand identity[17]. Because the Kardashians
is a symbol of secular culture. Artist works are high-end art. These two directions are difference,
they all fashion, but have difference target group of customers. Furthermore, young generation
might be no longer fancy pop art from Andy Warhol, which was active in 80 th[18]. Sokol believe that
Calvin Klein should divide the power of Raf Simons into two parts, Simons in charge creative work,
“marketing, digital and retail creative control to a different team. [19]” Actually,PVH delivered
certain business such as store design, visual marketing, e-commerce part and public relations to
Marie Gulin-Merle who is the CMO (Chief Marketing Officer) of Calvin Klein. Oppositely, Raf
Simon stated that he was upset considerably for a company without mature infrastructure and
professional expertise. The contradiction among high fashion and commercial market is the former
propose the sophistication of design concept, while the latter claim easy and impressive brand
identity. Although the latter always be defined as utilitarianism, profits have become an acquiescent
standard for public to evaluate a brand whether success or not. Calvin Klein sends an ambiguous
impression to public, even incompatible, hence, obtaining a slowly commercial return is looks like
normal.
The second case is Gucci. This brand was established by Guccio Gucci in 1921. Originally, Gucci
is just a brand focus on leather products, especially saddles of horseback riders. Thus, even today, it
is easy to find certain design details of horse talent in Gucci collection, such as “horse-bit detail,
and the red and green woven stripe, inspired by saddle details.[20]” After 1989, Bergdorf Goodman,
last CEO of Gucci, he bought a team: “Richard Lambertson as design director, Neil Barrett in
charge of menswear, Tom Ford as the women’s ready-to-wear designer.[21]” Specifically, Tom ford
who has been hailed as Gucci’s savior. He injected a type of rare sex to collection, the tight halter
dresses and sexy heels contrasted with the minimalist trend of 90s, which completely welcomed by
consumers. Tom ford was daring for visual marketing, he used “nothing but a completely nude,
red-haired Sophie Dahl arching on a swath of inky velvet to sell Opium perfume. The provocations
didn’t stop there and Gucci’s spring 2003 campaigns shot by Mario Testino featured a “G” shaved
into the nether regions of Carmen Kass.[22]” In 2018, the share price of Kering group increased 4 per
cent, which the market value reached approximately 49 billion Euro. And the sales growth 27.6 per
253cent reaching 3.4 billion euro. Because of the drive of core brand Gucci. Gucci's sales increased
35.1 percent year-on-year to 2.1 billion euros in the third quarter, which is the seventh consecutive
quarter of more than 35 percent growth on the basis of last year's high base. Alessandro Michele
join Gucci in 2015 as creative director, the assignment of this Roma designer is “to resurrect Gucci
after a few seasons of underwhelming sales and pivoting to millennial customers while still
maintaining Gucci’s legacy as a premium brand.[23]” Absolutely, he accomplished these challenges
perfectly. Alessandro Michele switch his aesthetic to another direction, “pivoting to gender fluidity,
bucolic imagery, and maximalist.[24]” Michele said many inspirations of collection are come from
digital visual art. He also endows visual ideas on marketing. Gucci has an impressive that culture of
elitism and luxury, its website put forwards a large number of high-quality visual content about
collection and activities’ video. In addition, consumer could view the product picture and details in
multiple angles, also those pictures could be magnified. Gucci’s high-quality video materials and
details prove that it’s a luxury brand. “Gucci website redesign and relaunch, which transformed the
e-commerce experience,” and offer a luxury shopping experience online [25].
4. Methodology
This research will investigate the relationship among fashion designer, fashion luxury brand and
target market. This study will utilize a qualitative research approach. Major concentrate on the case
study. Because of the purpose of this research is to discuss the relationship of three positions and
attempt to deductive one situation to balance those three positions, Also, via a case study to discuss
the function of visual marketing when brand crisis. Thus, case study could analyze certain issues
appear when designer and brand cooperate and evaluate the gap between dream and reality. The
case of survey will choose certain luxury brand that has experienced or experiencing the revolution.
Some of them are success, some of them are failing. In addition, before case study, historical
research will be helpful to clear the positioning of a luxury fashion brand at the very beginning,
because of the previous positioning is one part of brand value, whatever how to upgrade or
revolutionize at the after, the founder of brand hold the core value of brand. Kalvin Clein and Gucci
will be the primary contrast objects. Because Kalvin Clein is a case that failed in brand upgrading,
but it has potent marketing experience. During the period of brand upgrading, visual marketing
plays a significant role. In contrast, Gucci is a successful case of upgrading. Gucci has long story,
and once undertaking successful revolution two times, which be led by Tom Ford and Alessandro
Michele. More over visual marketing of Gucci has been praised for a long time.
5. Conclusion
From case study of Calvin Klein and Gucci, designers might have ability to resurrect a luxury brand.
But brand upgrading or revolution of the company has comprehensive elements of influence,
therefore, certain things are suggested to pay more attention. The first is luxury company had better
to clear their brand positioning, avoiding impulsive decision about changing direction of brand
design. The second is before revolution of brand, luxury company should be better to pinpoint
issues facing right now. The third is when design direction changing, other departments especially
visual marketing part is expected complete support in a persistent way. The fourth is that market
feedback and sales performance take time to check, patiently endure testing. The alarming is
impatience to return, when the entire industry to push the creativity to a corner, savvy consumers
will also no longer excite for fashion, the result is equal to the collective suicide of brands. The fifth
is for designer, fashion is a type of business, although the driving power of this business is creativity,
design and brand positioning should be matched. There is nothing wrong with the ambition to cover
more market from high fashion to mass fashion, but it is also a question of whether the power and
the facilities match the ambition.
254Acknowledgement
Fund project:
2020 College Scientific Research Fund Project (Applied Technology)
Development and Application of Clothing Template Based on Intelligent Manufacturing. Item No.
CFK202003
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