PowerPoint Presentation

Building Brand Equityin one segment of the world

Brand AuditEstablishing Brand Equity: AssociationsEstablishing Brand Equity: AwarenessEstablishing Brand Equity: LoyaltyWhat & How?

Answer this: Who do you think you are?Sleek. Clean. Minimal.The Brand Audit

Brand Essence: Clean, Sleek, Minimal; Avant Garde

Core Identity : androgynous hybrid of sportswear and tailored elegance Extended Identity: Fresh Take on Basic Menswear, Uncompromising (quality, detail, customization)

Brand Identity

The Clock Model: Pre-Purchase, PurchasePre-Purchase ElementsWebsiteIndustry PressFashion BlogsSocial MediaWord of Mouth

?%Purchase ElementsRetail PartnershipCustom TailoringIn-Studio Exclusives

?%Post-Purchase Elements

?%

Loyalty

Awareness

Perceived QualityAssociations

Proprietary Brand AssetsTODAY: BRAND EQUITY

Three HurdlesHow do you score?Sustainability

Differentiation

Relevance

how you are perceived to be by customer today

Luxury Regions to Enter? (where brand can gain value)

Enter and Expand: Asia

Enter Next: Western Europe/France

Enter Last: North America

33% of market27% of market25% of marketGLOBAL LUXURY MARKET$339,371 MIllion

Luxury Region - Asia Asia-Pacific region: Market attractiveness 2012 (excl. China and India)

Japan stands out as: Attractive & Safe from inflation

Luxury Region to Enter and Grow (5 years) Apparel and Footwear Segment

Luxury Region to Enter and Grow (5 years) - Asia

Asia-Pacific region: Inflation 2012

Luxury Region to Enter and Grow Asian Market Growth

JapanLuxury hills and valleys

Asia PacificLuxury moderate growth

Local Brand Management

As KN as a brand grows, it will need to start managing its brand on a local market level. Price will be one of the major brand management tactics, as Japan, China and Korea are almost 2X as expensive as other global segments. In addition, while the brand share is growing for similar to KN luxury global brands in Korea, USA and France, the brand growth in Japan has been flat for the past 5 years. KN will need to put forward robust and local brand strategies to capture the audience in Japan as he will be taking the market share away from already established brands.

Google Trends by Region

France has highest search trend in luxurySeal of ApprovalJapan has highest search trend in fashionconsumption

Global Luxury Industry at a Glance Japan

Worlds 2nd largest luxury market in the worldIn the past 5 years, sales have grown slower than any other Asian market = stagnant growth2013 new economic policy Abenomics pushed economic performance forward and sizable increase in wealth thus boosting consumer spendingBut more tax increases are expected and consumers are investing into big ticket items todayAbenomics will not have a further significant impact on economy growth

Enter and grow: aspirational designerwear lines

Global Luxury Industry at a Glance Europe

Eurozone Includes 10 luxury markets in the world (Italy, France, Germany and Spain)Due to debt crisis, tight fiscal policies were adopted and less consumer spending was observedIn future, Eurozone is expected to see modest growthUK, not past of Eurozone is the 6th largest luxury market in the worldUK is the fastest growing economy in EuropeContinued recovery in consumer spending

Enter with uber luxury designerwear lines and accessories (not to sell but to dictate global associations & validation)

Global Luxury Industry at a Glance United States

Largest luxury market in the world, outpacing Japan by 2 XUS economy is on a recovery path after modest growthIncome growth came from high-income householdsAfter tax income for high-income households outpace tax rate increases

Enter with top luxury and aspirational designerwear lines, accessories will do well too

Tailoring Avante-Garde Chic Colorful

Competition

Competition in Japan

Paul Smith rank improves by 57 points in Japan!

Deloitte Global Powers of Luxury Goods I 2014McKinsey Luxury Goods in Japan I 2013

When we look at competition in Japanese market, luxury brands perception is on average the same as on the global level. What was interesting to find is Paul Smith gained nearly 57 points in Japan and being #4 while its global rank as a luxury brand is still #61. By looking further into the brand strategies, we found that Paul Smith connects with local customer by putting more emphasis on his brand essence, such as creativity, color and being brave and confused, brand essence that Japanese customers connects to. It is our recommendation that to properly position in Japan, KN will need to understand Japanese customer on a local level. Lindsey will take you thru our observations and first proposal.

Asian Menswear TrendsLeader- Japan

Follower- Korea

Copy Cat- China

http://www.japanesestreets.com/photoblog/3094/facetasm-s-s-2015https://www.youtube.com/watch?v=86za5iZeoNQ

In Asian market, Japan is the leader for fashion trend, Japanese fashion is creative, innovative and very diverse. South Korea and China often follows the fashion trend set by Japanese. For Kenneth Ning, entering Japanese market does not only mean single Japanese market, it means getinvolved in the Asian market. Japan's fashion trend radiates to theworlds biggest market China constantly.22

Survey Q? : Please describe the consumerBrand Public Perception

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Asian Consumer- China

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Japanese Luxury Consumers

Less attractive

Logo fatigueYounger Generation Consumers distinct characteristics and needs pursue uniqueness fashion style and personalized luxury goodsMiddle class, white collar and Second Rich Generation

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Japanese Consumers

Where do they Shop?Tokyo Shopping Districts: Shinjuku, Ginza Boutique storesHigh-end department storesCompany-Owned storesOutlets

Online

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Japanese E-CommerceJapanese Shopping Trend

Online revenue alone is over $1 billion in 20142 X higher than the Japanese industry average e-commerceUpdate e-commerce offers every 1.5 hourshttp://blog.btrax.com/en/2014/06/30/japanese-fashion-retail-brands-getting-e-commercialized/

Recommendation : Define the Target Customer

WHO IS HE / SHE / THEY ???

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Loyalty

Awareness

Perceived Quality

Associations

Proprietary Brand AssetsFOCUS ON SEGMENTADDED BRAND EQUITY

BUILDING AWARENESSVIA DIGITAL STRATEGY FOCUS

We will address this opportunity with a focus on digital.

Digital Media and LuxurySource: Digital Competitive Map (July 2014) | Source: Exane BNP Paribas

Localize Content

SEO SEMRecommendation: Digital Overhaul ???Localization

Content Management: Video

Content Management: Shopping Environment

This overhaul will focus on 4 key opportunities.

Current Digital Landscape

WebsiteDigital MarketingMobileSocial Media Technology Navigation Product Pages Custom Tailoring Localize Search / SEO SEM Blog / Content Other Ads Engage Compatible Apps LocationAds Catalogues Sizzle Facebook TwitterInstagram Google + YouTube Pinterest

Social Media: RecommendationDomestic strategy

Content Management & SEO: Social Media

Source: - Prphet affluent male

Online Sources To Research Luxury Goods in Japan - 2013

Japan: Pre-Purchase By Device

Apparels & Accessories (%)Internet52 %TV Shows28 %Locomi (Local Online Search Service)14 %Ads20 %Brochures / Flyers / Direct Mail16 %In - Store48 %

Japan: Pre-Purchase Channel

SEM: Current Market Share in Japan

Social Branding Targets: where will you spend???NetworkCurrentBy Jan 20XXPaid

Source eMarketer.com : Performance Metrics for Facebook Ads

SEM: Japan Recommendations for Start UpSEM Budget RecommendedDaily Budget ($)Daily ClicksImpressionsAnnual Max Cost ($)Annual Max ClicksConversion (0.20 %)Conversion RevenueTotal Spend ($)Total ClicksTotal ConversionsRevenue per conversionTotal Revenue

Loyalty

Awareness

Perceived Quality

Associations

Proprietary Brand AssetsFOCUS ON AWARENESSADDED BRAND EQUITY

Survey Q? : Where would you expect to buy these clothes?

Where does the LOYALTY lie?

Loyalty

Awareness

Perceived Quality

Associations

Proprietary Brand AssetsFOCUS ON LOYALTYADDED BRAND EQUITY

Brand AuditEstablishing Brand Equity: AssociationsEstablishing Brand Equity: AwarenessEstablishing Brand Equity: LoyaltyConclusion