Fashion Product Development Report

PRODUCT DEVELOPMENT REPORT

Student: Ernesta Ratkute Student Number: 9621273

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CONTENTS

1.0. COMPANY OVERVIEW 2

1.1. BRAND VALUES 2 1.2. PRODUCT DIVISIONS 3 1.3. STATISTICS 3 1.4. MARKETING MIX 4 1.5. SWOT ANALYSIS 5

2.0 CURRENT MARKET EVALUATION 6

2.1. CURRENT COMPETITORS 6 2.2. COMPETITIVE SHOP: WOMEN’S DIVISION 7 2.3. COMPETITIVE SHOP: MEN’S DIVISION 8 2.4. COMPETITIVE SHOP: CHILDREN DIVISION 9

3.0 CUSTOMER PROFILE 10

4.0. NEW PRODUCT 12

4.1. NEW MARKET COMPETITORS 12 4.2. NEW MARKET POSITIONG MAP 13 4.3. PRODUCT DEVELOPMENT PLAN 13 4.5. ACCESSORIES DESIGN TREND ANALYSIS FOR SS’15 15 4.6. COLOUR AND FABRIC TRENDS FOR AW’15/16 16 4.7. DESIGN OF THE PRODUCTS 18 4.7.1. MEN’S BACKPACK 18 4.7.2. WOMEN’S BACKPACK 19 4.7.1. CHILDREN’S BACKPACK 20

5.0. CONCLUSION 21

6.0. BIBLIOGRAPHY 22

7.0. REFERENCES 22

7.1. IMAGE REFERENCES 23

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1.0. COMPANY OVERVIEW

Armando Lasauca founded Massimo Dutti in 1985 in Barcelona, Spain and was

acquired by the Inditex group in 1991. Although, originally, the brand was aimed at

men’s fashion, starting in 1992 women’s division was launched, which has increased

the potential within worldwide markets and secured national and international

growth of the brand. In addition, children’s clothing range under the trade name

Massimo Dutti Boys & Girls was launched in 2003, which is implemented in bigger-

sized stores in various countries. Today Massimo Dutti offers its customers “elegant and universal style that

connects with the independent, cosmopolitan men and women” (Inditex.com, 2014).

Collections range from very sophisticated looks to casual pieces, which are

comfortable, practical and made from high quality fabrics.

As the rest of brands within Inditex group, Massimo Dutti does not place

importance on advertising, social media or utilizing all available digital platforms to

the highest extent. Although it has a well organized website, most of its quality Blog

and Youtube channel content is hard to find and has no interaction or links to

products. On the up side, being a part of the Inditex group provides the brand with

vertical integration strategy, which helps to reduce costs, allows quick response to

latest fashions and sales analysis.

According to the Annual Report 2013 of Inditex group, Massimo Dutti has

launched its flagship stores in prime locations such as the Rue de la Paix in Paris and

its e-commerce platforms in Azerbaijan, Ecuador and Russia, which have opened

new market opportunities.

1.1. BRAND VALUES

• HIGH STANDARDS OF QUALITY • HEALTH AND SAFETY IN ITS PRODUCTS • CLEAR AND TRANSPARENT BUSSINES MODEL • ETHICAL AND RESPONSIBLE MANUFACTURING PROCESS • RESPECT FOR THE ENVIRONMENT

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1.2. PRODUCT DIVISIONS

1.3. STATISTICS

Massimo Dutti today: • Over 757 stores in more than 71

countries • Over 4000 employees (82.48%-

women, 17.52%- men) • Net sales increased by 14% in

2012/13 • Retail space over 193.614 m2

MEN’S: • Clothing • Accessories • Fragrances • Personal • Tailoring • Eyewear

WOMEN’S: • Clothing • Accessories • Fragrances • Eyewear

CHILDREN’S: • Boys & Girls

clothing

LIMITED COLLECTIONS: • Après Ski- featuring

autumn/winter 14/15 knits

• NYC Limited Edition-

sophisticated smart casual

collection

• The Equestrian- jockey

style inspired collection

• The Equestrian B&G-

jockey style inspired

children collection

INDITEX Group net sales:

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1.4. MARKETING MIX

Massimo Dutti is positions

itself along Better fashions

within the model of Fashion

industry levels by Doeringer

and Crean (2006).

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1.5. SWOT ANALYSIS

S: Being a part of as well-established group as Inditex, Massimo Dutti has a strong presence in the European market as its distinct style and quality product maintains customer loyalty. Moreover, visually appealing and consistently broadening e-commerce website and great campaign content contributes to increasing revenues and net income. W: On the other hand, Massimo Dutti has a low international presence, which is caused by a slow transition to the United States of America (USA) and Asian markets, not fully exploited marketing opportunities on social media and absence of advertising via paid media channels. Brand also has to improve its close and consistent contact with the consumer through all channels possible. O: In order to retain consistent growth, Massimo Dutti must exploit opportunities of expansion to international markets such as the USA and Asia, building a stronger media presence, which would also benefit towards increasing growth of the brand. It is crucial, for the company, to maintain consistent social media presence and to link it with the e-commerce site to ensure an increase in both online and in-store sales. T: Main threats are big competitors with high social media ratings, such as Ralph Lauren and DKNY, as they reach a wide spread of consumers all over the world. There are also many newly emerging brands that are in fighting for a spot within the marketplace.

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2.0 CURRENT MARKET EVALUATION

2.1. CURRENT COMPETITORS

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2.2. COMPETITIVE SHOP: WOMEN’S DIVISION

Conduced competitive shop analysis revealed that the new backpack collection by

Massimo Dutti would have competitors in different market levels. Brands like DKNY

in the up-market, Michael Kors in mid-market and, a high street brand, River Island

are offering their female customers backpack styles in respective price ranges.

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2.3. COMPETITIVE SHOP: MEN’S DIVISION

Men’s backpack designs tend to be more casual in comparison to women’s.

Similarly, there is competition in this division, where Gap is offering an up-market-priced

product, while Ted Baker and Zara are selling their products at more affordable prices.

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2.4. COMPETITIVE SHOP: CHILDREN DIVISION

J Crew, Zara and Herschel are main competitors in children’s division. Their product

is colourful and playful, ranging from up-market to high street prices. Designs range from

gender-defined to unisex and from sporty to smart casual styles.

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3.0 CUSTOMER PROFILE Massimo Dutti customers are independent, modern and cosmopolitan professionals with a strong sense of style, who are after elegant classics with an urban twist. They mostly belong to middle to upper middle class, which means they have a sufficient amount of money to spend on their appearance. They are also amongst early and late majority of E. Rodgers’s Diffusion of Innovations model. Banana Republic, Ralph Lauren and DKNY are other brands they shop at.

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4.0. NEW PRODUCT

Massimo Dutti has decided to launch a range of backpacks for upcoming

autumn/ winter 2015-16 season. According to the international market intelligence

agency Euromonitor, “…the value of backpack sales in the UK has grown every year

since 2008; last year they were worth $107.8m (£62m)” (The Guardian, 2014).

According to Fashion Trend Forecasting and Analysis agency WGSN “The backpack

continues as an important staple for casual looks and is updated for winter…”

(WGSN, 2014). As reported by the same source, backpacks will continue to dominate

bag styles even further into the year of 2016. The collection will be presented as a

family range with an intention to boost an amount of items per purchase. An idea of

family backpack range came from the nature of the brand, as Massimo Dutti is a

family oriented brand with its children’s line next to men’s and women’s collections.

The collection will consist of three pieces for following consumer groups: men,

women and children.

4.1. NEW MARKET COMPETITORS

RIVER ISLAND

This high street fashion brand has a wide range of popular bags and accessories

within the lower market. Massimo Dutti customer would go there for latest fashions

and would not mind the lower quality as the price is also significantly lower.

HERSCHEL

This Vancouver-based backpack brand is very well known for its signature satchel

style backpacks. According to The Guardian, the brand is at the top of backpack

business development. Its product may appeal to Massimo Dutti customer as a

leisure style choice.

ASOS

`The brand the widest range of backpacks on their website, which is slightly under

600 different products. Massimo Dutti customer would be interested in more high-

end brand products stocked by this online retailer.

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4.2. NEW MARKET POSITIONG MAP

4.3. PRODUCT DEVELOPMENT PLAN

Product design and development process if fairly complex, as there are many

stages that have to be taken under consideration. In order to implement them right,

the Product Development Model by Gaskill (1992) will be used as a framework for

the new Backpack range for Massimo Dutti.

The first stage of product development process is trend analysis for the

respective season, which is required to keep up with changing trends and

competitors and to create garments that will actually sell. “The role of the designer is

to translate inspirations and ideas into two-dimensional pictures which ultimately

become three-dimensional garments or accessories” (Jackson and Shaw, 2006,

p.84). During the trend analysis stage designers will create storyboards that bring all

the ideas together for a clearer concept that can then be presented to the buyers

and the company management board, participating in the product development

process.

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As soon as all required bodies approve the design concept the development

process begins. In order to avoid any extra costs and wastage in the later stages of

the design and production process, a designer will create samples of backpacks to

make sure that they are satisfied with the silhouettes design. They will later be used

as patterns for cutting the actual fabrics that will be chosen for products.

Later, cloth buyers will pick fabrics that are most suitable for the product as

they have a crucial impact on the final product and its success. According to Jackson

and Shaw (2006, p. 85) designers usually have a specific fabric in mind before they

even start the design process, which means that a certain fabric can be interpreted

as a primary inspiration. Fabrics will be chosen according to the fiber content and

their properties, such as, drape, handle, resistance to abrasion and many other

factors. It is also very important to select suitable yarns for the assembly of the

garment. As backpacks have to be sturdy and ser the purpose, the yarns chosen

have to meet the requirements.

All the chosen materials will be then delivered to the Inditex Factory in Spain.

In the factory, pattern designers will prepare cutting patterns according to the

samples designed earlier in the process. They will then be passed on to the cutters,

followed by product assembly by garment machinists and operatives. Finishing

operatives will add finishing touches, like brand labels, to products before packaging

them for delivery to stores, where the end consumer will be able to evaluate the

product that was created.

During the whole design and development process Total Quality

Management (TQM) procedure will be undertaken, to ensure the highest quality of

techniques are used at all stages of the manufacturing process, which means that

everyone that is involved in this process is equally responsible for the quality of the

final product.

Being a part of Inditex group is a great advantage for Massimo Dutti, as it

provides a vertically integrated supply chain, which is a great tool for saving money

and making a quick response to product sales analysis.

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4.5. ACCESSORIES DESIGN TREND ANALYSIS FOR SS’15

A bunch of well-known designers presented different designs of backpacks on their Spring/ Summer‘15 and Pre-Fall‘15 collections during fashion weeks in main capitals of fashion. Bottega Veneta, Christophe Lemaire and Ports 1961 showcased their spring/ summer satchel slytes for men. Raoul and Vionet presented their unusual designs for women, while Fendi brought out their pre-fall pieces.

“Tailored backpacks with neat detailing feature as a lead bag style for men this

season...” (WGSN, 2014). This proves that men’s backpack designs are changing from

rugged, vintage look bags to more sleek and tailored satchel style pieces with minimalistic

hardware and fastenings.

Recommended to carry in hand, small to mid-sized women’s backpacks will be

extremely trendy autumn/ winter season. Single-colour leathers will be widely used for a luxury look of sporty chic.

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MEN’S

Melinda Gloss SS’15Ports 1961 SS’15Ch. Lemaire SS’15Bottega Veneta SS’15

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4.6. COLOUR AND FABRIC TRENDS FOR AW’15/16

Colours and textures are very important for the success of a new product, as they are basic aspects of the product that directly influence unconscious decisions of the consumer. One of the visual inspirations for the new product range is a pantone Marsala. “Originally predicted as a key shade in the S/S 15 Global Colour Direction, Marsala 18-1438 has been named Pantone Colour of the Year 2015” (WGSN, 2014). This rich coppery shade sits between red and brown and is perfect for a statement woman’s backpack within the new range.

Naturally oiled and waxed fabrics and

glossy leathers are texture the top

choice for accessories for upcoming

AW ‘15/16 season.

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4.7. DESIGN OF THE PRODUCTS

After a thorough trend and concept research, designers have presented these

sketches to the deciding board of the company. Forthcoming trends, market analysis

and the essence of Massimo Dutti style were taken into account when designing this

new range of family backpacks for AW ‘15/16.

4.7.1. MEN’S BACKPACK

Staple-of-the-season roomy satchel style backpack with a pull-through magnetic

clasp (1) was created for the Massimo Dutti man. The edges of it will be decorated

by similar colour shade leather piping (2) and it will also have a carry handle (3)

incorporated at the top of the bag. Thin base leather shoulder straps (4) will be

updated with soft quilted panels (6) for extra comfort. Straps will be sewn on to the

bottom of body of the bag and covered with piping leather patch (7). Tasteful logo

of Massimo Dutti will be placed at the top back of the body, where the shoulder

straps connect. All of the hardware will remain gold-shaded as a norm for the brand.

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- glossy leather - single-colored - deep brown colour(Pantone 19-0712)

EXTERIOR LINING - 100% cotton - warmer brown colour(Pantone 11-1333)

RETAIL PRICE

£180

Leather is a staple fabric for Massimo Dutti acces-sories. According to WGSN trend analysis, this colour ir great for shoes and accessories.

Cotton is used to line all of Massimo Dutti bags as a sign of great quality.

Dark brown is a practical colour that suits the purpose.

The price reflects quality and inmage of the brand without being too high.

It also fits within brand possitioning in the market.

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4.7.2. WOMEN’S BACKPACK

Women’s bag possesses a sleek and feminine shape with added rounded flap (1) at

the top, which has a double-layered look with exposed double stitching and piping.

Drawstring (2) and a magnetic top flap closures (2) compliment the sleek body of the

bag. For multiple ways to wear this backpack, a carry handle (3) was attached to the

top of the bag by metal studs (8). Extra design enhancements were added to the

front to the body and also fixed with a pair of metal studs (5). Thin leather stripes will

be attached to the body at the back and covered by leather patches at the bottom

(10). Above the point where the shoulder straps meet, a brand logo will be placed. A

practical zip-up compartment will be added to the back of the product.

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4.7.1. CHILDREN’S BACKPACK

A playful satchel style piece will be added to the children’s collection for AW ’15/16

season. The design of this backpack will be based on a playful coated canvas print

(1) to attract the young consumers of Massimo Dutti. A contrast leather piping (4) will

be added for a fun and stylish look. Two leather belts (2) will serve as a closure with

installed magnetic closures underneath them. A small carry handle (3) will also be

attached to the top of the bag. A small zip-up pocket will be added at the front.

Similarly to the men’s design, soft, quilted panels (6) will update thin shoulder straps

for a great comfort. Leather patches (8), stitched down to the body, will hold them

against the bag. As seen in previous designs, a brand logo will be placed in between

shoulder straps at the top. All the hardware will be gold-shaded.

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5.0. CONCLUSION

After generating an extensive research, it is clear that backpacks will not only remain

key items of AW ’15/16 but will also continue to the SS’16 season, which proves that

it is a great time for Massimo Dutti to introduce its family backpack line, that will

have a continuous positive effect on the sales of the company for several seasons if

kept updated. In this report, the company has looked at design, colour and fabric

trends that were forecasted by WGSN and conducted a market analysis to figure out

what their competitors are doing to attract a potential customer of Massimo Dutti.

Finally, after a detailed design and development process the company has

developed a clearly defined, brand-reflecting range of three products, which

corresponds to the customer profile of Massimo Dutti. A stylish satchel style

backpack was designed for the Massimo Dutti man, while women’s division was

supplemented by a feminine drawstring design. Furthermore, a playful satchel

design for children was added to this brand new range of products.

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6.0. BIBLIOGRAPHY

Carr H., Pomeroy J., (1992). Fashion Design and Product Development. !st edn. Oxford, UK: Blackwell Science Ltd.

Jackson T., Shaw D., (2006). The Fashion Handbook. 1st edn. Oxton, USA: Routledge.

7.0. REFERENCES

Carr H., Pomeroy J., (1992). Fashion Design and Product Development. !st edn. Oxford, UK: Blackwell Science Ltd.

Jackson T., Shaw D., (2006). The Fashion Handbook. 1st edn. Oxton, USA: Routledge.

Inditex, (2014). Brands. Massimo Dutti. Inditex.com. Available at: http://www.inditex.com/brands/masssimo_dutti [Accessed: December 12, 2014].

Inditex, (2013). 2013 Annual Report [Online]. Available at: http://www.inditex.com/documents/10279/18789/Inditex_Group_Annual_Report_2013.pdf/88b623b8-‐b6b0-‐4d38-‐b45e-‐45822932ff72 [Accessed: December 10, 2014].

Gap, (2013). 2013 Annual Report [Online]. Available at: http://investors.gapinc.com/phoenix.zhtml?c=111302&p=irol-‐reportsAnnual [Accessed: December 12, 2014].

J Crew, (2013). 2013 Annual Report [Online]. Available at: http://www.sec.gov/Archives/edgar/data/1051251/000156459014000961/jcg-‐10k_20140201.htm [Accessed: December 12, 2014].

H&M, (2013). 2013 Annual Report [Online]. Available at: http://about.hm.com/content/dam/hm/about/documents/en/Annual%20Report/Annual-‐Report-‐2013_en.pdf [Accessed: December 12, 2014].

The Guardian magazine, (2014). Fashion. Pack mentality: how Herschel reinvented the backpack. Theguardian.com. Available at: http://www.theguardian.com/fashion/2014/jul/08/why-‐backpacks-‐became-‐cool-‐again [Accessed: December 12, 2014].

WGSN, (2014). A/W 15/16 bags: women’s key items. Wgsn.com. Available at: http://www.wgsn.com/content/board_viewer/#/142557/page/1 [Accessed: December 9, 2014].

WGSN, (2014). S/S 15 men’s catwalk trend flash: tailored backpacks. Wgsn.com. Available at: http://www.wgsn.com/content/board_viewer/#/148107/page/1 [Accessed: December 12, 2014].

WGSN, (2014). Forecast Confirmation – Pantone Colour of the Year 2015. Wgsn.com. Available at: http://www.wgsn.com/content/board_viewer/#/55787/page/1 [Accessed: December 12, 2014].

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WGSN, (2014). Surface & Decoration A/W 16/17 – Elemental. Wgsn.com. Available at: http://www.wgsn.com/content/board_viewer/#/55347/page/9 [Accessed: December 12, 2014].

7.1. IMAGE REFERENCES

i-‐ Fashion Mention magazine, (2014). Massimo Dutti Fall Winter 2013 Campaign. Fashionmention.com. Available at: http://www.fashionmention.com/massimo-‐dutti-‐fall-‐winter-‐2013-‐campaign/ [Accessed: December 12, 2014].

ii-‐ Fashion Gone Rogue magazine, (2014). Massimo Dutti Taps Toni Garrn for its Spring 2013 Campaign by Mario Testino. Fashiongonerogue.com. Available at: http://www.fashiongonerogue.com/massimo-‐dutti-‐taps-‐toni-‐garrn-‐for-‐its-‐spring-‐2013-‐campaign-‐by-‐mario-‐testino/ [Accessed: December 12, 2014].

iii-‐ Inditex, (2014). 2013 Annual Report [Online]. Available at http://www.inditex.com/brands/masssimo_dutti [Accessed: December 12, 2014].

iv-‐ Selfridges Online, (2014). DKNY-‐ Tribeca backpack. Selfridges.com. Available at: http://www.selfridges.com/en/dkny-‐tribeca-‐backpack_125-‐74029065-‐R4413212/ [Accessed: December 12, 2014].

v-‐ River Island Online, (2014). Black textured leather-‐look backpack. Riverisland.com. Available: http://www.riverisland.com/women/bags-‐-‐purses/backpacks/Black-‐textured-‐leather-‐look-‐backpack-‐661024 [Accessed: December 12, 2014].

vi-‐ Selfridges Online, (2014). Jet set mini backpack. Selfridges.com. Available at: http://www.selfridges.com/en/michael-‐michael-‐kors-‐jet-‐set-‐mini-‐backpack_128-‐3001451-‐30H4GTTB1L/?previewAttribute=Fuschia [Accessed: December 12, 2014].

vii-‐ Gap Online, (2014). Leather canvas backpack. Gap.co.uk. Available at: http://www.gap.co.uk/browse/product.do?pid=000140784007&vid=1&preferredLocale=en_GB&kwid=1&sem=false&sdReferer=http%3A%2F%2Fwww.gap.co.uk%2Fproducts%2Fmens-‐bags.jsp [Accessed: December 12, 2014].

viii-‐ Zara Online, (2014). Denim rucksack. Zara.com. Available at: http://www.zara.com/uk/en/shoes-‐-‐-‐bags/man/bags/denim-‐rucksack-‐c665014p2137619.html [Accessed: December 12, 2014].

ix-‐ Ted bake Online, (2014). McLeod Camo print rucksack. Tedbaker.com. Available at: http://www.tedbaker.com/uk/Mens/Accessories/Bags/MCLEOD-‐Camo-‐print-‐rucksack-‐Navy/p/112701-‐10-‐NAVY [Accessed: December 12, 2014].

x-‐ J Crew Online, (2014). Girls’ glitter backpack. Jcrew.com. Available at: https://www.jcrew.com/uk/girls_category/bags/PRDOVR~04751/04751.jsp [Accessed: December 12, 2014].

xi-‐ Zara Online, (2013). Rucksack with zip. Zara.com. Available at: http://www.zara.com/uk/en/kids/boy-‐%283-‐14-‐years%29/accessories/rucksack-‐with-‐zip-‐c269273p2118105.html [Accessed: December 12, 2014].

xii-‐ Herschel Online, (2014). Survey backpack. Shop.herschelsupply.com. Available at http://shop.herschelsupply.com/collections/backpacks/products/survey-‐backpack-‐hyde [Accessed: December 12, 2014].

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xiii-‐ Chic and Sleek blog, (2014). Available at: http://chicandsilk.blogspot.co.uk/2014/04/street-‐style-‐brogues-‐oxford-‐derby-‐25.html [Accessed: December 12, 2014].

xiv-‐ Mens Fashion magazine, (2014). Available at: http://www.mensfashionmagazine.com/camel-‐navy-‐and-‐beige [Accessed: December 12, 2014].

xv-‐ WGSN, (2014). S/S 15 men’s catwalk trend flash: tailored backpacks. Wgsn.com. Available at: http://www.wgsn.com/content/board_viewer/#/148107/page/1 [Accessed: December 12, 2014].

xvi-‐ WGSN, (2014). Catwalk gallery. Available at: http://www.wgsn.com/catwalk_gallery/#gender=2&season=46&city=0&show=NaN [Accessed: December 11, 2014].

xvii-‐ WGSN, (2014). Catwalk gallery. Available at: http://www.wgsn.com/catwalk_gallery/#gender=2&season=0&city=0&show=15556 [Accessed: December 12, 2014].

xviii-‐ WGSN, (2014). Forecast Confirmation – Pantone Colour of the Year 2015. Wgsn.com. Available at: http://www.wgsn.com/content/board_viewer/#/55787/page/1 [Accessed: December 12, 2014].

xix-‐ WGSN, (2014). Forecast Confirmation – Pantone Colour of the Year 2015. Wgsn.com. Available at: http://www.wgsn.com/content/board_viewer/#/55787/page/1 [Accessed: December 12, 2014].

xx-‐ By Ernesta Ratkute xxi-‐ By Ernesta Ratkute xxii-‐ By Ernesta Ratkute

Fashion Product Development Report

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Transcript of Fashion Product Development Report