Apparel Merchandising
12.05.2021
Assignment 2
Aashna Shukla, Ahan Takkar and Karma Delek Bhutia
Bachelors of Fashion Technology -Semester VI
Section I
Section 1.1
Polo Ralph Lauren
About the brand
Polo Ralph Lauren, men’s sports apparel/ tailored line was launched in 1967 with the
Corporation in New York, United States. Founded by the American designer Ralph Lauren,
the collection was started with a simple collection of ties. Opportunities opened later in the
1960’s when Bloomingdale’s(a famous store in New York) offered to carry his line of neck
ties but he refused when he was asked to remove his name from the label after slight
modifications in the tie.
This shows how important the label and the originality was to him and further the Ralph
Lauren corporation, following his ideals became a global leader in design, marketing and
distribution of premium lifestyle products now for over more than 50 years in domestic and
international markets carrying various range of products which will be discussed further in
details.
Products Sold
Clothing
T shirts
Shirts
Polos
Hoodies/Sweatshirts
Sweaters
Pants
Shorts
Jeans
Beachwear
Underwear Loungewear
Socks
Outerwear (Jackets and Coats)
Dresses
Tops
Skirts
Jumpsuits
Swimwear
Lingerie
Plus Size
Shoes
Sneakers
Heels
Loafers
Slip-ons
Formal
Boots
Sandals and Flip-Flops
Sports Shoes
Bags
Backpacks
Crossbody Bags
Tote Bags
Travel Bags
Laptop Bags
Duffel Bags
Handbags
Accessories
Wallets
Hats and Caps
Belts
Jewellery
Eyewear
Ties
Vendor Selection
All the PRL products are manufactured by selected vendors since Ralph Lauren group does
not have production facilities. There are more than 700 different manufacturers worldwide
that produce apparel, footwear, accessories, and home products, making sure no manufacturer
produces not more than 4% of the total production. Raw materials like fabric, buttons, and
other trims are sourced with a number of finished products consisting of manufactured and
fully assembled products ready for shipment to the customers. Less than 2% of the products
(by dollar value) are manufactured in the U.S. and more than 98% of our products (by dollar
value) are manufactured primarily in Asia, Europe, and Latin America.
All the manufacturing factories work under close supervision and specific protocols,
sometimes through buying agents The Global Manufacturing division is responsible for for
all the supervision and selection and is headquartered in Asia
Production and quality control staff makes a special list of protocols to be followed in Asia,
US, the Middle East, and Europe which further allows easy monitoring of the manufacturing
at supplier facilities in order to correct problems prior to shipment of the final product.
Procedures have been implemented under our vendor certification and compliance programs
so that quality assurance is reviewed early in the production process, allowing merchandise to
be received at the distribution facilities and shipped to customers with minimal interruption.
Competitors
PRL has main competition between brands such as Burberry, Tommy Hilfiger, Hermes,
LVMH, PVH and Kering. Among its competitors it has the highest revenue of about 6
billion dollars in the year of 2020, with Burberry stringing along with 2.8 billion dollars.
Consumer Profile
Polo Ralph Lauren target consumers in the upper-middle-class to upper class range of
population
It targets the privileged section of the population since they tend to have enough/ disposable
income to be able to afford the price range offered by The Polo Ralph Lauren.
The aesthetics of the brand are very family oriented, subtle, calm and lively thus creating an
image of a royal family brand yet morden.
They identify themselves as a brand for the people who take pride in looking elegant in a
formal and sophisticated way but with a humble attitude
Many of the young consumers are on the sportier end of the spectrum, and value the more
elegant outdoor sports such as polo and rugby.
The company targets a variety of demographics that include women, men and children of all
ages.
They have over 13,000 retail stores worldwide operating in the US, Canada, Europe, Japan,
South Korea, China, Southeast Asia, and Latin America.
Recent CSR Practices
Ralph Lauren has claimed to adopt a new global citizenship policy and sustainable straegy
launching “Design the Change” with 16 goals planned to keep the brand stuck to it’s
commitment to ecological and social causes
A senior team will be devoted to plan the progress and structure the plan by forming 3 main
areas of focus- “Creating Timeless Style, Protecting the Environment, and Championing
Better Lives.” as given in the visual.
Primary new goals of the brand-
1. 100% sustainably sourced key materials – including cotton – by 2025 and setting
science-based greenhouse gas reduction targets by 2020 and 100% renewable energy
targets by the end of this year.
2. The company is also aiming to train its product development and merchant teams on
sustainable, circular, inclusive and culturally aware design by 2020.
3. Ralph Lauren Corporation intends to achieve equal gender representation in its
leadership positions above VP-level by 2023, while female representation in factory
management is expected to rise 25% by 2025.
4. 100% of the packaging material will be recyclable, reusable or sustainably sourced by
2025
5. 20% or greater reduction in total water use across our operations and value chain by
2025, compared to a FY20 baseline.
Section 1.2
UNIQLO
About the Brand
Uniqlo launched in 1984, was highly successful providing affordable casual wear to the
masses and showed extraordinary growth rate. The brand focuses on minimal and ‘basic’
items of apparel that resonate with local and international consumers, pieces that can be worn
with any kind of clothing present in one’s closet. They are focused on improvement of their
quality, design and technology, rather than appeasing the ongoing trends of the present.
According to their website they are not striving for perfection but rather for evolution.
Uniqlo falls in the slower fashion brands among the fast fashion brand categories. The
apparels are simple, well designed items that can have longer shelf life, both in terms of
quality and design. They market themselves as LifeWear, rather than everyday wear. It is
supposed to constitute a way of thinking. A conscious evolution into diversity and
innovations.
Products sold
Coats, Parkas and Jackets
Knit Jumpers and Cardigans
Sweatshirts and Hoodies
Shirts , Polos and T-Shirts
Sports wear
Trousers, Leggings and Chinos
Jeans and Shorts
Thermal heat wear
Loungewear and innerwear
Swimwear
Accessories
Shoes
Homewear
Other lines
AIRism Collection
Various collaborations with Artists and Designers (e.g. J.W Anderson, Kaws)
Sustainability lines (e.g. DRY-EX)
Vendor Selection
Uniqlo and Fast Retailing, with their emphasis and approach towards transparency have been
updating their suppliers list since 2017, especially their core sewing factories. Right now it
consists of about 84 core fabric mills and 282 core sewing factories. Locations for fabric
supplying include Bangladesh, China, Indonesia, Vietnam and Japan and for finishing
includes Bangladesh, China, Indonesia, Cambodia, Japan, Turkey, Vietnam, Malaysia,
Thailand, India and Myanmar. All processes are majorly done in China.
Competitors
The top competitors of Uniqlo are Zara, H&M, Forever 21, Topshop, Gap, Pull & Bear,
River Island Clothing Company Ltd., rue21, Primark and Miss Selfridge (Owler, n.d).
With their parent group Fast Retailing’s revenues upto 22 billion dollars in the year of 2020
(83% under Uniqlo), it stands close in the race with Inditex, having up to 34 billion dollars in
revenues (70% under Zara) in 2019 and H&M with 22.4 billion dollars in revenue, reported
as of October 2020. Uniqlo also employs 57K people, ranking at 5th among its competitors,
and operates about 2300 stores worldwide. On similar lines Zara has 2200 and H&M has
5000 stores under their companies. (Danziger, 2021). Uniqlo had plans for the highest
revenue collection by the year of 2020, which has not been achieved as of yet. Although, the
brand has seen significant growth, as in 2013 the gross revenue was 11 billion dollars with
H&M leading with 22.9 billion dollars and Zara with 22.4 billion dollars (Bagaria, 2014).
Uniqlo has also been named the number one apparel brand in China, and with China
predicted to take over the United States as the top apparel market the brand is already in great
advantage.
Uniqlo, thrives on styles that have slower fashion cycles, compared to its competitors. It is
marketed as LifeWear and chooses not to associate or label as a fast fashion company. As
Uniqlo’s CEO Tadashi Yanai once said, “We do not make disposable clothes.” thereby
rejecting the fundamentals of a fast fashion brand (Retviews, 2019). Uniqlo produces far
fewer designs than its competitors, with as less as 6,209 SKUs in contrast to Zara’s 9,198
SKUs and H&M’s 20,860 SKUs, hence focusing on producing garments with seasonless
appeal. They create, mostly, clothes that fall in the ‘basics’ category. This gives them an edge
of sustainability, with styles that can last longer. While competitors like Zara and Forever 21
highly rely on attracting and staying relevant to newer trends, it can leave their clothes
seemingly off trend within a short period of time.
Zara, creates about 36,00 designs each year, with supplying newer products as frequently as 2
to 6 times a week. It manages to do so by having automated factories in Spain, where
machines dye, process, and cut fabrics to products that are then finished in nearby countries.
The brand also prefers suppliers and subcontractors mostly in nearby countries such as
Morocco. Uniqlo, unique to its competitors, uses a developmental strategy similar to a car
manufacturer (Bagaria, 2014). This means that they plan to form long term relationships with
a vendor and test out newer materials and design, creating better levels of quality over a
longer period of time.
Uniqlo fulfills the promise of quality as they use 70% natural materials in their infamous
knits. They also use about 30% cotton in their products while having portions as small as
20% polyester. Zara on the other ground uses 20% of natural materials in their knits. Despite
a higher materials quality, Uniqlo still has an affordable price range. 59% of their products go
for 20$ and under range, while it is 28% for H&M and 25% for Zara. Their investment in
online presence too has been fruitful as the site visits have risen up to 30%, when competitors
dwindle like H&M with 9% and Zara with 13%.
Consumer Profile
Uniqlo’s slogan is “Made For All” clearly sending a message that anyone, regardless of
gender, ethnicity and background, can enjoy a Uniqlo piece effortlessly. Their clothes are
simple, with a good grade of quality, that blends in with any person’s individual style,
regardless of the ongoing trends. As founder Tadashi Yanai says,“Uniqlo is not a fashion
company, it’s a technology company.”, the company is driven by utility and quality, making
the brand a go to choice for a customer who does not shop often.
Although Uniqlo does have a brand identity that is driven by Japanese aesthetics. They
incorporate the minimal and functional aspect of the Japanese identity that can be seen in all
of the apparels sold. As Mr. Yanai himself has said that the time of suits has come to an end,
and the era of comfortability has risen, Uniqlo has successfully stayed virtuous, even during
trying times, through their lounge and home wear. Being named the number one fashion
brand in China and claims of at least one of four people owning a down jacket from the
brand, in the home country of Japan (MartinRoll, 2021), Uniqlo has entered the international
market, with unanimous acceptance for their ideology on clean and comfortable clothes.
The clothing, while not chasing trends, is never not relevant to the times it is getting sold. The
focus on functionality makes the garments a ubiquitous need in every closet. As mentioned
59% of the products fall in the $20 and under category, making Uniqlo not limited to only
individuals with high income. This broadens their target market in that any young adult
looking for affordable yet quality clothes can satisfy their pursuit at the Uniqlo stores.
Uniqlo’s expanded internationally into a multitude of countries including the United States,
and are commonly only in urban areas. Thus, their target market includes trendy
young-urban-professionals above all else.
CSR Practices
The Uniqlo brand success is highly credited to the values bought in by the founder, Tadashi
Yanai, himself. He has included giving back to the society as one of his 23 managing
principals (MartinRoll, 2021). He believed that a company solely striving for profit will not
last long, and that big corporations must be contributing values to the existing societies.
“Changing clothes. Changing conventional wisdom. Change the world.” is the corporate
motto of the company and showcases willingness to lend a hand towards a socially and
environmentally conscious company.
There is a section for a sustainability report on the brand’s official online page which
welcomes the viewer with “As the operator of the UNIQLO brand, Fast Retailing seeks not
only to deliver clothing that enriches the daily lives of many different people, but also to
become part of the infrastructure that supports society.”. The page includes gateways to
various articles on the brand’s progress in the sustainability department, and their initiatives
to contribute socially.
Fast Retailing has many approaches to do what they say is the value they run their business
with.
● The brand focus is to procure raw materials responsibly, that the products won’t harm
the environment even after they lose their function. This aims to source, keeping
animal welfare, farmers, and environmental effects in mind. In september of 2016,
Uniqlo launched its initiative to collect used Ultra Light Down products from their
customers and have them cleansed, and repurposed into new materials (Binlot,2019).
Also reported Uniqlo only uses Polyester, a highly challenged fabric in sustainability
terms, in mere 14.3% of its dresses (Retviews, 2019).
● Fast Retailing with their lead times of almost a year, they form long term relations
with their suppliers. The suppliers have to comply with the Code of Conduct for
Production Partners to regulate and protect human rights and working conditions in
their supply chain. To decrease overtime hours and work traffic, the Responsible
Procurement Policy ensures production orders to be made following procedures. This
avoids sudden increase in volume of demands and work.
● Fast Retailing is committed to eliminating waste in its supply chain. It is committed to
reduce water use by 15% and greenhouse gas emissions in its Uniqlo stores by 10%,
by 2020. They also will produce their wicking products from the Dry-Ex line, using
recycled fibers from reclaimed PET bottles (Binlot,2019)
● Fast Retailing supports communities where it operates its stores, communities
surrounding its partner factories, and communities providing shelter to refugees and
displaced people. Uniqlo encourages its consumers to bring in unwanted clothings so
it can be donated to the United Nations High Commissioner for Refugees (UNHCR).
Any unsold clothing items too goes to UNHCR (Binlot, 2019). In 2018, 30.29 million
items were donated to 65 countries and regions through its All-Product Recycling
Initiative.
● Fast Retailing has established an Employee Engagement Policy. Almost every Uniqlo
store in Japan hires at least 1 staff member with disabilities, and is targeting to even
the employee gender ratio after achieving its goal of filling 30% of its management
roles with women in 2018.
● Fast Retailing has been building an effective corporate governance system. It includes
a corporate auditor governance system model and an executive officer system.
Section 2
● AUGMENTED REALITY
Augmented reality (AR) is an enhanced version of the real physical world that is achieved
through the use of digital visual elements, sound, or other sensory stimuli delivered via
technology. It is a growing trend among companies involved in mobile computing and
business applications in particular. (Hayes, 2020)
● VIRTUAL REALITY
Virtual reality (VR) refers to a computer-generated simulation in which a person can interact
within an artificial three-dimensional environment using electronic devices, such as special
goggles with a screen or gloves fitted with sensors. In this simulated artificial environment,
the user is able to have a realistic-feeling experience. (Mitchell, 2020)
AUGMENTED REALITY VIRTUAL REALITY
Augmented reality (AR) comprises Virtual reality (VR) creates an
overlapping visual, auditory, or immersive “artificial” world that
other sensory information onto the can seem fairly real, with the use of
real world in order to enhance one's new technology.
experience.
Retailers can use augmented reality Through a virtual reality headset,
to promote their products or users can look up, down, or any
services, launch unique marketing which way, and imitate the
campaigns, and collect certain user experience of actually being there.
data.
Unlike virtual reality, which creates its Virtual reality has many use-cases,
own cyber environment, augmented including entertainment and
reality adds to the existing world as it gaming, or acting as a sales,
educational, or training tool.
BACKGROUND
Augmented reality (AR) and virtual reality (VR) originated in 1838, via Charles Wheatstone,
who invented the stereoscope. The technology then used an image for each eye to create a 3D
rendition for the viewer.
Since then, the technology has rapidly evolved, although, has remained on the fringes of
common usage. However, over the past decade, as graphics and digital technologies have
developed, AR and VR have gone through a renaissance. Now, consumer headsets like the
Oculus Rift and the HTC Vive are helping gamers and designers reimagine their interface. In
the same way, businesses are using these technologies to train employees and market new
products. (Forrest, 2018)
PROCESS OF IMPLEMENTATION
The high demand for clothes in the global market has adversely impacted the environment.
The textile segment utilises excessive water and electricity for their production. The dyes and
chemicals used for the dresses cause pollution and disrupt the natural ecosystem. Companies
and research institutions are continually working on various techniques to minimise the
damage. This has also led to the invention of efficient machinery that would lower resource
consumption and deliver quality products. This equipment is AI-enhanced and can improve
the production process. There is a constant analysis of technologies like Augmented Reality
(AR), Virtual Reality (VR), Animation, Social Shopping, Machine Learning, etc.
AR and VR solutions for the Fashion Industries
The fashion industry uses augmented reality to add new bells and whistles to conventional
and online shopping. It makes shopping stress-free and charges consumers with positive
emotions. As a customer, you can play with styles, textures, and colors, adding various shoes,
bags, and jewelry pieces to complete the look. (Segura, 2018)
For example, luxury shoppers can use augmented reality solutions to try on custom-made
clothes or jewelry pieces before they are finished. In addition, they can attend fancy AR and
VR events: big brands like Chanel use cutting-edge technologies to create the interest of their
target audience. Fast-fashion customers, on the other hand, will bypass the huge crowds and
piles of mismatched clothes that are especially troublesome during big sales. As for sales, AR
apps allow smart buyers to skip a visit to a physical store and instead try on the selected items
before things go crazy. (Pixelplex, 2020)
● Try-before-you-buy feature
This facility allows shoppers to avoid a time consuming dressing-room experience, saves
time, and helps try out a large number of garments in varied colors, patterns, and sizes. For
those who despise the fuss of old-school shopping, a virtual dressing-room app is a
game-changer.
● Improving in-store navigation
According to Retail Dive surveys, 62% of customers are not willing to give up the pre-sale
contact with a product and continue to love going to offline stores. AR tools make it easier
for these shoppers to navigate their way around a store. Such guided tours reduce uncertainty,
as well as the amount of time an individual spends in the store. Meanwhile, the number of
purchases goes up because in-store navigation has made shopping more precise. This feature
can help you quickly find the items from your list.
● Visiting a virtual show-room or a runway event
Augmented reality instruments help make it possible to witness a catwalk view from a
front-row seat. It may be an exact copy of a real place or a totally digital environment.
Anyway, you can combine the benefits of both formats and treat your senses to a novel
experience.
● Designing custom goods
Before the advent of AR and VR, designing a customized outfit or an accessory took a lot of
time and trouble. Customers who lacked creative vision could easily end up with a product
that wasn’t up to their expectations. AR and VR solutions help to solve this problem, as they
provide a customer with a virtual demo version of the product. They can see what their bag or
pair of sneakers will look like in real life.
Advantages and Disadvantages of use of AR Technology in the Apparel Industry
Advantages Disadvantages
Augmented Reality(AR) provides an Since the shift between reality and Digital
immersive, wholly personalized shopping Reality is so smooth and convenient, it can
experience, even better if in the retailbecome addictive and deteriorate human
outlet consciousness and impact mental
health.Furthermore, AR could be unsafe if
users are too engrossed in their devices and
are not aware of traffic and other hazards as
they walk.
Effectively reasonable way for reducing To use AR apps, we exchange large
carbon foot-print along the process of amounts of data including our bio-metrics,
marketing and provides solutions for facial expressions and sometimes even
Fashion shows at exotic locations. without our knowledge.
There is no doubt in the fact that AR It can get extremely costly to develop and
system is full of potential and helps fashion maintain an AR based device or an
brands build a relationship with the application based system/environment. The
consumer by providing them usage has been limited to luxury fashion
convenience.One of the application, Magic brands and multi- billion dollar fast fashion
mirrors could be seen as enhancing the brands. It is impractical to have such
customer experience, it cuts down the lines applications implemented for a fashion
for fitting rooms, and could potentially retailer with a lesser audience.
increase customer satisfaction, reducing
stress, especially for families.
Advantages Disadvantages
An immersive VR model creates Limitation of VR systems is the fact that it
telepresence for consumers to have a can be classified as being inflexible in case
better/detailed in-store experience when the headsets need to be connected to
set up in a Retail store.(As long as they computers to allow the consumer to
have their head-sets and modified experience virtual reality.
technology, they can experience it from To overcome this limitation, alot of
anywhere in the world). investment will be required to upgrade which
is impractical to use for most retailers when
such technology is already at experimental
state.
VR can provide thrill to the bored One of the major drawbacks of VR is related
customer through its various applications, to health implications which might develop
for ex- Gamefication concepts in fashion when VR sets are used regularly, as the
stores, offline or online can create closeness of the headsets can cause strains on
interactive shopping experience hence the eyes and also lead to motion sickness,
help customers create a relationship with which can cause dizziness, distortion, and
the brand. eye fatigue. Recent studies have shown that
VR technology can impact our mental health
too.
With less carbon footprint, the most Popular headsets cost around $600-$800 with
usefulness of this technology is shopping add ons like a computer screen, programs and
experience at home. Getting all the details maintenance of the setup is also expensive
you need, approach executives for help thus making it limited to luxury brands only.
with confidence since no face to face
interaction helps people shop with
confidence and better imagination without
any physical trial of garments.
Case Study on VR -
Feasibility and User Experience of Virtual Reality Fashion Stores
The 3D modeling computer program “SketchUp” was used to create the virtual apparel
stores. SketchUp is popularly used for architectural and interior design in addition to
mechanical and product design. Because CAD data are usually parametric whereas VR data
are in the form of tessellated polygons, CAD data needs to be converted to polygons in order
define the surfaces of visual objects in VR. For example, if the surface of an object is curved
in CAD data, arrangements of polygons that closely match the curved sur- face replace the
surface in VR. Only this polygonal representation of a model allows for simultaneous
rendering for VR.
The results showed that the experience of VR was positively related with important shopping
outcomes such as pleasure, attitude toward virtual stores, and purchase intention. This shows
that VR can be used as a new shopping means to enhance consumers’ experience and their
engagement. These realistic visual presentations of products will generate positive attitudes
toward the store, and thus prompt more purchases. Therefore, marketers should take
advantage of VR to provide consumers with memorable, distinctive experiences that are
realistic in terms of products or stores without actual physical locations.
The immersive VR systems are also a promising tool to understand consumers’ in-store
behavior and their evaluations of store designs. It also helps minimize time and money
needed in developing physical stores. Because VR allows users to experience full-scale,
realistic store designs in a computer-simulated virtual world, the experience and evaluation is
relatively precise.
Case Study on AR -
Fashion Merchandising - An Augmented Reality
Designers and brands globally are gradually embracing AR in product merchandising and
marketing. Burberry is one of the first luxury brands to jump on the bandwagon; having been
a part of the fashion industry for more than 160 years, it has maintained its originality, classic
heritage, and yet, has managed to balance its digital savviness. It is one of the brands that is
in the forefront of the digitalization revolution of fashion.
Burberry’s CEO, Angela Ahrendts, in 2006, envisioned it to be the first company in fashion
to be “fully digital”. Burberry happens to be the first brand to live stream its runway shows
on its website in the year 2010; it was the first brand to use virtual reality, virtual image
technology such as holograms in its flagship store in Beijing. After having been successful in
the use of the digital strategies, Burberry took a more drastic step into the AR Realm by
launching “Magic Mirrors” in September 2012, in its London Regent Street store.
Burberry used ‘Augmented Reality’ for fashion merchandising as a first in the industry. In
September 2017, Burberry in collaboration with Apple introduced a new feature in the
Mobile App, launching it on the Fall runway walk, which used the AR Kit platform (a
software tool that uses motion tracking sensors). The new feature gave the users of the the
ability to add Artist Danny Sangra’s drawings inspired by Burberry designs to their iPhone
camera feeds. It was the first time such an initiative was taken, and this use of Augmented
Reality gave an entirely new meaning to fashion merchandising, increasing customer
engagement and successfully promoting the new brand image of Burberry.
_________________________________________________________________________
REFERENCES
Section 1
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Section 2
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