Fashion Perspectives: Market v.s. Brand Positioning

Table of Content

• Branding and The Importance of Brand Positioning

  • Brand Evolvement

• Positioning Strategies

  • The Competitive Environment of the Fashion Industry

• Market Position v.s. Brand Position

  • The Fashion Pyramid of Brands

  • Four Main Fashion Levels

When we look at brand positioning, we’re essentially trying to determine how to position our goods and/or services for each target segment.

The main question you want to answer is: “What do we want our target market to think about when they think about our brand?” Sounds like a mouth full, yes. In other words, how do we want them to remember us?

Take a second and think. When I mention Nike, what pops into your head?

Companies take time to establish their brand, and it is usually a work in progress. Once you have made a mark on your brand and start to receive recognition, you want to ensure the degree of attachment consumers have with your brand (brand loyalty), to stay curious about your competitors, ensure you have a strong identity, and keep evolving!

Here is an example on how Burberry’s logo evolved over time.

"The Evolution of the Burberry Logo: From Equestrian Knights to Global Icon"​

With positioning strategies, we also have to keep market position in mind. While companies determine their brand relative to their competitor’s, they have to also identify which market or product category they wish to compete in. The fashion industry is highly competitive and dynamic. There are constant changes and new competition coming in, especially in the smaller sectors. The industry is characterized by a large number of players, ranging from small independent retailers to large multinational corporations.

Let’s look at the positioning strategies for some of the biggest brands in the industry.

RunwaytoRevenue, 2023

When discussing market and brand position in fashion, we can refer to the fashion pyramid of brands - a market segmentation pyramid that segregates fashion brands based on price, quality, and other attributes. There are four main fashion levels:

1. Haute Couture: Exclusive, made-to-measure, pieces that are extremely high in quality and details. It is the supreme luxury segment and targets wealthy and high-profile individuals such as celebrities and entrepreneurs. Examples: Hermes, Chanel, Dior.

2. Ready-to-Wear: More accessible, luxury pieces. There will often be debates on whether or not a brand is Haute Couture or Ready-to-Wear, but essentially, this level is created as a gateway to high quality clothing without the expense of Haute Couture. One distinguishing factor is that ready-to-wear pieces come in standard sizes. Examples: YSL, Gucci, Louis Vuitton.

3. Bridge: Premium fashion that bridges the gap between high end and mass market. It’s the sweet spot. They target individuals who are willing to pay the extra for better quality, but not $25,000. Examples: Guess, Diesel, Calvin Klein.

4. Mass Market: At the very bottom, we have the mass market. This sector targets as many people as they can by pricing their items at a low point where it is affordable for the majority. Examples: H&M, Zara, GAP.

In brand positioning, the chart above displays four kinds (of many):

1. Sustainable: Often ranked as the #1 most sustainable fashion brand, Patagonia has positioned themselves as a progressive, cutting-edge brand that rejects fast fashion and prioritizes the health of the planet.

2. Upkeeping Trends: Possibly one of the most effective ways to generate fast revenue and sales is by staying in the loop on trends and virality. Zara does a great job at this, producing items quickly according to their customers desires and as seen on social media.

3. Customer Experience: Louis Vuitton (LVMH) continuously ranks at the top as the most popular luxury fashion brand and their exceptional customer experience plays a big part. The brand goes beyond to ensure customers have the benefit of boutique browsing through their sales team whilst augmenting pleasant online browsing experiences.

4. Craftsmanship: Stirring away from the big players of the industry, POCA & POCA is a young fashion brand where every piece is made of the highest quality and carefully handcrafted by a team of master tailors in Poland with precision and skill.

Do you have a favorite brand? What makes them stand out?