Fashion Industry Trends and Future

This assignment examines the current state and future prospects of the fashion industry. It discusses key trends shaping the sector, such as sustainable practices, technological advancements, and changing consumer behavior. The report emphasizes the need for the industry to adapt to challenges like climate change, resource scarcity, and economic volatility by embracing environmentally friendly methods and innovative technologies.

Business Report- Value Analysis
(A case study of PRADA)
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EXECUTIVE SUMMARY
The manuscript herewith purpose conducting an innovation audit for a luxurious fashion
industry. For this purpose, a leading Italian luxury fashion house, named as “Prada” is taken into
consideration. The cited company deals with ready-to-wear leather and fashion accessories,
shoes, luggage, perfumes, watches etc. The luxury fashion industry has been become more
competitive due to ever-changing needs of customers. In respect with the Italian fashion
industry, it is expected to grow by 6.5 percent in the first half of 2016. To cope up with future
needs the fashion brands need to prepare themselves for adopting rapid changes as the industry
depends on flexible and innovative practices. From the report, it is concluded that the cited
fashion brand has to focus on sustainable and environmental friendly practices along with using
cutting age of technology to remain competitive in the marketplace.
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Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION ..........................................................................................................................4
The organization and industry review .............................................................................................4
Prada and its innovation history ..................................................................................................4
Prada existing innovation performance and capabilities ............................................................5
The fashion industry in 2016 .....................................................................................................5
The future of fashion industry 2020 and Beyond ..........................................................................6
The organizations Innovation Requirements 2020 and Beyond .....................................................7
Closing the Innovation Gap............................................................................................................8
Building the innovation capabilities for the organization ...........................................................8
CONCLUSION ..............................................................................................................................9
REFERENCES .............................................................................................................................10
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INTRODUCTION
Innovation is the foremost requirement of organization because it looks further towards
the competitive advantage through unique offerings. In today's competitive era, innovation and
the role of technology are seen in every market, aimed to attract customers and gaining
competitive advantage. The report herewith purposes at conducting an innovation audit for a
leading Italian luxury fashion house, named as “Prada” which deals with ready-to-wear leather
and fashion accessories, shoes, luggage, perfumes, watches etc (Prada Group. 2015).
Furthermore, this report is going to examine the organizational innovation history, present level
of innovation activities and future innovation requirements. The next section of this report will
identity the present innovation capabilities and ways to improve these capabilities of Prada to
meet the future innovation challenges and requirements.
The organization and industry review
Prada and its innovation history
Prada was founded in 1913 by Mario Prada into the fashion World in Milan, Italy.
Outlets of Prada are found worldwide and are seen very influential in the fashion world. Being a
high class luxury clothing and apparel dealers, Prada always focuses on quality of products and
innovation in goods. The cited organization is known for its unrivalled quality, soaring prices as
well as its classy and sexy apparel lines. Prada, Miu Miu, Car Shoe and Church’s are the major
prestigious international brands that are associated with cited group. Miuccia Prada is an Italian
fashion designer which is associated with Prada brand and has been credited for many
innovations in the fashion industry. Famous innovations of this group include use of beaded latex
and mirror fragments in clothing designs.
The mentioned fashion brand is engaged in the world of ideas and innovation as it always
considers fashion, luxury, and style at the time of producing clothes, shoes and bags. Following
an innovative culture, company is involved in carefully observing the needs of society and is
being curious about the world, society and culture. Along with this, the group focuses towards
quality which starts from the creative process. Here, quality, an innovative approach has enabled
Prada to anticipate and set trends while continuously experimenting with shapes, fabrics, leathers
and innovative production techniques. Distribution activities of the cited brand are applied with
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innovative approach and quality standards. In addition to that, Prada uses effective
communication tactics for building and maintaining a powerful brand image within marketplace.
With the help of impressive fashion shows, Prada Group has successfully created cutting-edge
image in the market to attract international customer base. Hence, it can be said that mentioned
brand maintains innovation culture from its product designing to its distribution.
Prada existing innovation performance and capabilities
Prada is capable of maintaining a cutting age competition through its quality of design
and innovation. Organization is having unique designs through which Prada has influenced the
overall fashion market. As an evidence of its capabilities and innovative practices, it can be said
that clothes designed by Miuccia have been influential in gaining competitive advantage. There
is witnessed a fierce competition within the luxury fashion industry. Instead of this, Prada stands
out competitive due to innovative practices in marketing. It is always evident that marketing
strategy of Prada, has a big role of technology (Prada Group. 2015).
Customers who are walking in the stores always have unusual experiences in the respect
of dressing rooms as they can switch from transparent to translucent in case the dressing rooms
are occupied. Within the dressing rooms, Prada has "Magic mirrors”- a plasma screen, invisibly
built into a large mirror surface which enables customers to see themselves from any direction
while trying designs. In addition to that, cited organization has 13 epicentre stores which are
considered to be landmark buildings which reflect classical and elegant characteristics of Prada
Brand. Business entity has further capabilities of entertaining into new markets i.e. LG
Electronics and PRADA have recently launched a silver version of the designer Prada phone
with innovative features. Worldwide popularity of Prada has enabled LG to make collaboration
with this brand in mobile phone market. Positive feedbacks from customers have encouraged this
brand to come with more attractive mobile phones in near future (Prada Group. 2015).
The fashion industry in 2016
At Present, fashion industry has been become more competitive due to ever-changing
needs of customers in terms of fashion and demand of luxurious products. Marketers dealing in
the fashion industry are now focused to identify the specific needs and wants of consumers as
well as their buying preferences. Nowadays, people are involved in social media sites where they
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are sharing their feedbacks and suggestions that are seen as a great help for fashion leaders for
improving their products. It has been witnessed that fashion retailers are keeping eyes on social
sites as it works brilliantly for them by being a platform to give information about customer’s
need and leading trend of fashion (5 Innovations That Are Greening up the Fashion Industry.
2016). The Italian fashion industry is expected to grow 5 percent. As per the country’s Chamber
of Fashion, these expectations are based on predict euro exchange rate. It was further expected
that in the first half of 2016 there will be 6.5 percent increase in revenues for Italian luxury
fashion dealers (Zargani, 2015). Recently, consumers have become increasingly aware as well as
the clothing manufacturers are stepping up towards more environmental accountability.
However, the use of technology has become crucial in the preset era to attain competitive
advantage.
The future of fashion industry 2020 and Beyond
The future fashion industry has going to face challenges as well as threats due to
competition and cutting age of technology. However, a major way to overcoming the
technological challenges and anticipating the needs of future fashion industry, it is quite
important to focus on sustainable practices. The threats to the future fashion industry include
climate change, scarcity of resource, vulnerable economic conditions, dynamic consumer
behaviour, etc. Such future challenges can be overcame while taking appropriate actions for
safeguarding future as well as protecting the environment (Fashion future. 2015). The luxury
fashion industry is vibrant industry which is going to be affected by suppliers of raw materials,
designers and manufacturers including big brands and other retail outlets. The fashion brands
need to prepare themselves for adopting rapid changes because future changes depends on
flexible and innovative practices (Luxury fashion branding: trends, tactics, techniques. 2008).
The leading entities must be focused towards making successful investments in design and
innovations so-as-to explore new business models and having trial of new ideas to watch out
how it works. However, the future of cited industry is quite uncertain however, it can't be
neglected that innovation and unique practices will remain a major sources to have sustainable
practices (Hoffmann and Coste-Manière, 2012 ).
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As per the words of Mike Barry, the head of sustainable business at Marks and Spencer
said that Fashion Futures forecasting are having important contribution to the longer-term
sustainability of clothing production. Having a provocative scenario of future fashion industry
2025, the business can help companies to respond towards social and environmental challenges
(Steele, 2003). For an illustration: Digital printing, is an emerging technology that is going to be
incorporated into fashion industry. Using this tactic, the fabrics are applied with printers that
leads to reduce water usage by 95 percent, energy reduction of 75 percent as well as turns into
minimizing textile waste. However, it can be said that future of fashion industry 2020 and
Beyond is going to focus on sustainable and environmental friendly practices (Prada Group.
2015).
The organizations Innovation Requirements 2020 and Beyond
The role of innovation for Prada is the most important for the purpose of remain
competitive in the marketplace and maintaining a sustainable future in the fashion industry. The
direct competitors of Prada are Christian Dior, The House of Gucci, Jimmy Choo, Juicy
Couture, Dolce and Gabbana, Versace, shoe and handbag stores etc. however, Prada has already
created its distinct image in the market just due to innovative and unique designs. The cited
company is dealing in fastest-growing market in the world, and the market of company is
continued to grow because of increasing quality of life and awareness about fashion in the
market. In the upcoming years, it has been expected that the swirling mass of international
media and the global social networks will create a fast-paced and highly changeable world
(Espejo, 2010). In addition to that, a growing new middle classes will also display a furious
appetite for fashion consumption. To meet the requirements of fashion industry, it will be highly
required for Prada to use cutting age technology within manufacturing and distributing activities.
However, the designing phase must be come up with the latest trends. To the wide area, clothing
waste is quite neglected that bis must be focused by business entity (Cassiday, Cassiday and
Freedman, 2005). However, for this company needs to make investments and innovation in this
area of recycling fibres and improving product designs. The cited organization should also focus
towards disassembling, re manufacturing and/or reuse of material. The major strategy of
company is to coming with ambitious program of global expansion, therefore, it is required to
enter into emerging markets with innovative products as to capture a large of customers base.
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The stores of Prada must include with new technologies so-as -to become finals destination for
future generations for satisfying their needs.
The business entity has successfully acquired British men's shoe brand Church's and
Italian shoe manufacturer Car Shoe so now it is using combined technology to improve products
offerings of Prada Group. Innovation is witnessed core of Prada’s success, for an example, it is
being a first brand to launch “Prada Epicentres” new types of stores. To satisfy the needs of
future generation associated with fashion, this company has to look forward for having long
range of technical improvement is distribution channel (Hoffmann and Coste-Manière, 2012 ).
The organizations' innovation requirements 2020 and beyond includes its offerings as per their
consumer needs, e-commerce, digital marketing and social media awareness (Wilson, 2011).
However, to remain competitive the cited fashion brand has to focus on sustainable and
environmental friendly practices along with using cutting age of technology to remain
competitive in the marketplace.
Closing the Innovation Gap
Building the innovation capabilities for the organization
In today's era, innovation has become core competence and a tangible cultural value that
is to be incorporated by individuals. Company like Prada is highly innovative and same can be
used in development of products. Business can introduce new type of fashion clothing products
that are unique (Ziv, 2013). Apart from this to develop innovation capability business can
employ advanced technology and through the same it is possible to serve customers (5
Innovations That Are Greening up the Fashion Industry). Further, company can work on human
development where skills along with knowledge of employees can assist in carrying out
operations which are innovation for business and can have positive impact on the brand image of
company at global level (Chevalier and Mazzalovo, 2008). Firm can bring innovation through
continuous improvement where systems and internal structure can be designed which are flexible
enough to change. Moreover, it is possible for business to have innovative infrastructure which
can assist in attracting large number of customers in the market and can enhance business
strength also.
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CONCLUSION
The above report has represented the role of innovation within luxury fashion market for
which a leading Italian luxury fashion house, named as “Prada” was taken into account. From the
overall report, it was found that Prada has maintained a cutting age competition in fashion
market through its quality of design and innovation. However, the today;s generation has become
more aware with fashion trends and there fashion needs are increasingly changing, therefore,
clothing manufacturers or retailers like as Prada must step up towards more environmental
accountability. The use of technology has become crucial in the present era to attain competitive
advantage. The report argued that future fashion industry is going to face threats such as climate
change, scarcity of resource, vulnerable economic conditions as well as dynamic consumer
behaviour. Hence, in future fashion industry 2020 and Beyond must focus on sustainable and
environmental friendly practices along with the use of cutting age technology to meet customers
needs
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REFERENCES
Books and journals
Cassiday, D., Cassiday, B. and Freedman, C., 2005. Fashion industry careers. New York: Watts.
Chevalier, M. and Mazzalovo, G., 2008. Luxury brand management. Singapore: John Wiley &
Sons (Asia).
Dinnie, K.,2009. Luxury fashion branding — Trends, tactics, techniques. J Brand Manag, 16(5-
6), pp.413-415.
Espejo, R., 2010. The fashion industry. Detroit: Greenhaven Press.
Hoffmann, J. and Coste-Manière, I., 2012. Global luxury trends. Basingstoke: Palgrave
Macmillan.
Luxury fashion branding: trends, tactics, techniques. 2008. Choice Reviews Online, 45(06),
pp.45-3290-45-3290.
Steele, V., 2003. Fashion, Italian style. New Haven: Yale University Press.
Wilson, R., 2011. Fashion industry. New York, NY: Rosen Central.
Ziv, Y., 2013 Fashion 2.0: season of change. Lexington, KY: [Selbstverl.].
Online
5 Innovations That Are Greening up the Fashion Industry. 2016.[Online]. Available at: <
http://www.goodnet.org/articles/5-innovations-that-are-greening-up-fashion-industry#>
[Accessed on 29th February 2016].
Fashion future. 2015. [Online]. Available at: <
http://www.forumforthefuture.org/sites/default/files/images/Forum/Projects/Fashion-
Futures/FashionFutures_2025_FINAL_SML.pdf> [Accessed on 29th February 2016].
Prada Group. 2015.[Online]. Available at: <
http://www.pradagroup.com/system/pdf_ens/152/original/e-Annual%20Report
%202013.pdf> [Accessed on 29th February 2016].
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Zargani, L., 2015.Italy’s Fashion Industry Expected to Grow 5% in 2015.[Online]. Available at:
< http://wwd.com/business-news/fashion-scoops/italy-fashion-industry-growth-10245884/>
[Accessed on 29th February 2016].
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