1

Table of Contents

Executive Summary 2Company Background

4

Context of Fashion in Spain 5

Madrid Fashion Week Trajectory 6

Key Issues 10

External Analysis 13Porter’s Five Forces

12

Rivalry 13

Threat of substitutes 13

Buyer Power 14

Supplier Power 14

Threat of New Entrants and Entry Barriers 15

Market Demographics 16

The Chinese Luxury Consumer 16

PEST Analysis 17

Political Factors 17

Economic Factors 19

Social Factors 22

Technological Factors 25

Competitive Analysis 28

Assessment of Competitors & Other Related Magazines 28

Internal Analysis 33SWOT Analysis

32

Strengths 33

Weaknesses 34

Opportunities 34

Threats 35

VRIO 36

Value 36

Rareness 36

Imitability 37

Organization 38

2

Strategic Analysis 39TOWS Matrix

39

Product Market Strategy 41

Functional Analysis 43

Financial and Accounting Analysis 43

Marketing and Sales Analysis 43

Final Results 44Strategic Recommendations

44

Activities Before Fashion Week 45

Social Media Improvements 45

Travel Guide and Giveaway 49

Activities During Fashion Week 53

Social Media Influencer 53

Social Media Engagement 55

Activities After Fashion Week 55

Pop-Up Publicity Event 55

References and Appendix 68

3

Executive Summary

Avenue Illustrated is considered to be Spain’s number one fashion magazine. Aiming to

serve as a “model of cultural business,” each publication is artfully created to offer sophisticated,

inspiring, and alluring content that appeals to high-end consumers. They effectively leverage

their partnerships with major luxury brands and freelance photographers to promote an inspiring

dialogue between brands and clients. This publication is unique from other fashion magazines

due to their focus on the Chinese market living in Spain. The decision to focus on this specific

demographic is supported by statistics showing the major trend in Chinese immigration and

travel to Spain. In addition, this market has also demonstrated an increase in purchasing power

and luxury spending. Creating a totally separate publication, Avenue Illustrated China, caters

specifically to the interests of Chinese consumers in the luxury market within Spain. According

to information given in their media kit, Avenue Illustrated China works in collaboration with the

Chinese editor-in-chief of the Ouhua Diary and El Madarín, to “present itself as a lifestyle

reference on trends and culture for the Chinese market.”i Operating in such a niche market has

differentiated this product and eliminated a majority of the threats of close competition. It has

also allowed the magazine to emerge as a leading publication within this target market.

Through passionate leadership, strategic partnerships, and market differentiation, Avenue

Illustrated has earned its slogan - “a very important magazine.” Aside from the editorial side of

the company, Avenue Illustrated also operates as a consulting firm, offering expertise and

translating services for companies looking to expand within the Chinese market. Despite their

success, magazines, in general, face many pressures in today’s digital age. To compete in this

ever-changing environment, Avenue Illustrated needs to increase their involvement in Madrid

Fashion Week with a revitalized marketing and communication strategy. Suggested strategies

4

will involve reaching consumers before, during, and after Fashion Week. Before Fashion Week,

Avenue Illustrated will need to increase their social media presence by keeping a closer eye on

the management of their accounts and the consistency of the content that is posted. Suggested

strategies include improvements regarding content, consistency, and tools to better manage the

social media accounts. Avenue Illustrated can also utilize their brand partnerships and

knowledge of trends in Madrid to put together a travel guide for readers of the magazine. This

will be an expansion on the concept that Madrid Fashion Week already presents at the event,

with detailed transportation guides, restaurant recommendations, and other unique hot spots in

Madrid, but done presented in a way that is more directly designed for the target market. During

Fashion Week, social media presence will be key. Avenue Illustrated can expand the image and

the exposure of their brand by partnering with a social media influencer from China. After

Fashion Week, a “pop-up” event would be a great format through which to continue getting

people engaged in Fashion Week, as well as get feedback on the overall experience. One

comprehensive suggestion that could be implemented at various stages of the event is virtual

reality. The Avenue Illustrated marketing plan includes recommendations for use, as well as how

to budget and gain the support of IFEMA and the sponsors of Madrid Fashion Week.

Company Background

Avenue Illustrated is a privately-owned company consisting of a consulting firm and an

editorial staff. The editorial portion of the company produces a luxury fashion magazine that

caters to the high-class Spanish population, along with the Chinese population living in Spain.

They publish two separate magazines. One edition is published six times a year in Spanish. The

other edition of the magazine which features different articles and editorials is published four

5

times a year in Chinese.ii The amount of Chinese luxury consumers living in Spain has increased

over the past ten years and continues to grow every year. Avenue Illustrated is currently the only

fashion magazine specifically targeting the niche market.

In addition to the magazine, Avenue Illustrated also functions as a consulting company,

offering language translation, brand building services, and organized marketing events for its

clients. Avenue Illustrated has the goal to market, advertise, and increase interest in Mercedes-

Benz Fashion Week Madrid 2019 to its own target audience and to the general population of

Spain. The company aims to promote Madrid Fashion Week within the Chinese community

living in Spain and increase its own involvement in Fashion Week events.

Context of Fashion in Spain

Madrid is not only a hub for Spanish brands and designers but also the hub for

international fashions in Spain. Brands like Zara, Balenciaga, and Manolo Blahnik are all

Spanish brands that have made a name for themselves worldwide. Other brands popular within

the country include Pull & Bear, Bershka, Camper, and Desigual. The locations of these stores

vary from the busy downtown Gran Vía to the more high-end Calle de Serrano.iii

The primary shopping district for the average consumer in Madrid is Gran Vía, host to a

number of Spanish and international brands. H&M, Adidas, Primark, Nike, Lacoste, Pull & Bear,

and Berksha are some of the internationally known brands that can be found along Gran Vía.

Two of the biggest Spanish retailers, El Corte Inglés and Zara, can also be found on Calle de

Preciados, off of Gran Via.

For more high-end shopping, Calle de Serrano, nicknamed “Milla de Oro” or “The

Golden Mile,” features some of Spain’s most prestigious stores such as Louis Vuitton, Stella

6

McCartney, Prada, and more. It is considered to be one of the best areas for shopping and dining

in all of Spain. The luxurious neighborhood is also home to many of Spain's newest brands and

up and coming designers. In 2011, the city invested 106 million euros to create underground

parking, wider sidewalks, and bicycle lanes along the Golden Mileiv. These improvements only

added to the upscale atmosphere of the street and made the district vastly more pedestrian-

friendly.

The cultural norms and fashions of Madrid are more formal than those of the United

States. While leggings and hooded sweatshirts may be popular in the United States, fashion

trends are not interpreted in the same way in Madrid. Instead, trousers and blouses are more

popular. The shopping here attracts tourists and spending as well. According to tourism-

review.com “data from 2016 shows that the average expenditure per tourist was 1,028 euros and

that the average daily expenditure was 130 euros.”v This statistic demonstrates the impact that

tourism can have on the Spanish economy and the fashion industry in particular. Aside from

tourism, fashion within China is also beginning to convey more of a European influence. An

article published by the Gentlemen Marketing Agency, explains that “rising salaries, well-made

products and the desire of Chinese shoppers for high-quality products are some of the reasons

why Chineses want to purchase European brands.”vi This is a result of the growth of the Internet

and globalization. Currently, China is the largest e-commerce market in the world, which has

allowed consumers to have a greater opportunity to know more about European styles and

brands. This has expanded the influence of Western styles within China, leading to a much

greater demand for European brands. Many international companies are increasing their stores in

China and shifting their marketing initiatives to reach this target market. For example, the

Spanish retailer, Zara, now has over 500 stores in China and is expected to grow this number by

7

the end of 2018. Gentlemen Marketing Agency also explains that luxury brands are particularly

on the rise in China due to the nature and preferences of these consumers. Chinese consumers

feel a stronger tie to brands and want to show off their rising wealth through prominent designer

logos. For this reason, the Chinese luxury market is growing immensely and presenting more

opportunities for brands to expand into this market.

Madrid Fashion Week Trajectory

Today, fashion shows are a multimillion-dollar global business that allows designers to

showcase their upcoming clothing lines. While New York may have been the first city to

organize seasonal fashion shows, the concept of “haute couture” or “high fashion” originated in

Paris in 1858. Beginning as an extremely exclusive industry, designers hosted “fashion parades”

in salons for only their most important clients.vii This idea of organizing fashion shows to

demonstrate designs later appeared in America in 1903, at a New York City store called Ehrich

Brothers. Ehrich Brothers hosted the show with the intention of luring in the middle-class, but

the implications of the show went beyond just generating new customers. By 1910, large stores

were organizing these events to showcase Parisian trends. From the 1920s to the 1950s, fashion

shows became a very popular aspect of the fashion industry. These shows had much more of a

theatrical flair, included narrators, and often followed cultural themes like Chinese, Russian,

Mexican, or Napoleonic era. People were captivated by experiencing other cultures or time

periods through these shows. In 1943, publicist Eleanor Lambert decided to cluster these shows

together in what was called “Fashion Press Week” to promote American fashion during the

occupation of France. However, the name “Fashion Week” wasn’t used until 1984 in London.viii

8

In 2007, Mercedes-Benz became a sponsor of New York’s Olympus Fashion Week.

While there are other fashion weeks put on by different sponsors, the Mercedes-Benz Fashion

Week has become a prominent international show featuring collections from over eighty

designers worldwide. Currently, the “Big Four” shows take place in Paris, Milan, New York, and

London. However, IFEMA is an organization dedicated to promoting Madrid’s fashion on an

international stage. Working closely with the Camera Nazionale Della Moda in Italy, the British

Fashion Council in London, the Chambre Syndicale de la Haute Couture in Paris, and the CFDA

in New York, IFEMA is working diligently to increase the international appeal of Madrid

Fashion Week. Overall, IFEMA’s goal is to partner with Spanish designers to promote Spanish

fashion and elevate it to an international level.

While the Big Four (Paris, Milan, London, and New York) tend to draw the highest

numbers of attendees, Madrid’s fashion week has grown in recent years due to its change in date

so as not to overlap with other fashion weeks. This kind of growth can greatly impact the

economy and fashion scene since fashion weeks tend to have a huge economic impact on the city

they are hosted in. For example, the New York City Economic Development Corporation

reported that $887 million was contributed to the hospitality, restaurant, beauty, and wellness

industries during the span of Fashion Week. For a brand to participate in Fashion Week, there is

typically a minimum investment of $10,000; however, it can cost as much as 500,000 depending

on talent, hair, makeup, lighting, and publicity.ix

In Madrid, there are currently two fashion weeks per year - one in February and one in

July. During last February’s Spring/Summer show, “42 leading Spanish designers presented their

collections, attracting 50,206 unique visitors as well as 1,314 members of the press.”x

Additionally, this show organized a program for international buyers from China, Hong Kong,

9

Mexico, and Portugal. L'Oréal Paris is the official makeup artist and hairdresser of Madrid

Fashion Week. Other major sponsors and collaborators include Samsung, Iberia Airlines, Ciroc,

Inditex, and Royal Bliss. This year’s Fall/Winter show will take place from July 6-11th in the

IFEMA Feria De Madrid. This has shifted from the previous September 15-19th dates to prevent

too much overlap with other fashion weeks.xi

Madrid Fashion Week is primarily promoted through Instagram on social media. Their

account, @mbfwmadrid, currently has 60.9K followers and has posted 2,285 photos. The official

hashtag for Madrid Fashion Week is #MBFWmadrid and has

been used in over 41.6K posts from other Instagram users.

Madrid Fashion Week is highly exclusive; tickets

cannot be purchased through their official website as the event

is by invitation only. Invitations are allotted to the designers

and sponsors. It is then under their discretion on whom they

wish to invite. Many famous athletes, socialites, and celebrities

will attend events throughout the week. The prestige brought

by the designers, models, and attendees creates a buzz in the

Spanish fashion world surrounding the week. Overall, the

exclusivity of such an event correlates to the overall

prestigious nature of the luxury fashion market. Other fashion weeks around the world have an

application process, where aspiring guests must complete a form, pay a fee, and be approved to

attend.

As a group, we had the amazing opportunity to attend Madrid’s Fashion Week, where we were

able to get a better grasp of the overall scene of the event. Aside from the actual catwalk, we

10

observed many exhibitors with

booths representing designers,

magazines, and sponsors. L'Oréal,

the official makeup sponsor of the

event, had an interactive booth

where visitors could get their

lipstick done by professionals.

Many magazines like Vogue Spain,

Glamour, Elle, and ¡Hola! had

booths where they distributed the latest editions of their magazine, as seen in the photos above.

Other exhibitors had contests where participants could post a picture on social media using a

specific hashtag in order to enter a giveaway for tickets to the next fashion show. There were

also many booths where local designers featured clothing and accessories that were available for

purchase. Overall, IFEMA focused on creating an aesthetic, cool atmosphere where people were

encouraged to socialize, take pictures, and enjoy their time. There were also special VIP areas,

sponsored by Royal Bliss and Ciroc, where people could purchase drinks and socialize in a more

exclusive setting. Visitors were eager to take pictures and stop by the various booths to collect

free magazines or little gifts. However, on the exhibitor side, it is not easy to consistently have a

booth at Fashion Week. To have a booth, the exhibitor must follow an application process

11

through IFEMA and pay to sponsor the event.xii While Avenue

Illustrated has been an exhibitor in the past, they did not have

space at this most recent fashion week.

Key Issues

Avenue Illustrated is approaching the 2019 Fashion Week

season with the goal of creating an improved and effective

communication strategy. Most of the magazine’s key issues stem

from a lack of communication and minimal online presence.

When Google searching the brand, the first result that appears is a website link that is not fully

functional. The only information available on the site are the staff names and links for a

subscription to the online version of the magazine. While social media accounts appear on

Facebook, Twitter, and Instagram, the content published across these platforms is minimal and

generally inconsistent. The Weibo and WeChat accounts both have very little content and are not

updated on a regular basis. The general lack of accessibility on online platforms creates

inconsistency between the brand’s image and their engagement with consumers. Maintaining a

strong online identity has become increasingly important as millennials make up the majority of

current consumers of luxury goods and have expressed the importance of brand presence and

reputation online.

The target market of Avenue Illustrated is a very small, niche market, around which the

entire brand has essentially been created. This has proved to be a very effective strategy since the

establishment of the magazine (including their translation and experience services), but the

future success of this strategy depends entirely on continuing to hold the interest and exclusivity

12

of this market. Chinese luxury consumers are one of the fastest growing markets and garnering

more and more attention as analysis reveals their propensity to make the bulk of their luxury

purchases in overseas markets. This is mainly due to the high value of authenticity- Chinese

consumers feel that the purchases they make are more likely to be authentic if they come directly

from brand stores. In China, there is a large “black-market” of sorts for knockoff goods. These

goods are not nearly as valuable to the consumer as brands that are authentically made by the

luxury brands. A 2017 study by Bain & Co. revealed that the mark of a “luxury” brand is no

longer sufficient for peaking the interest of this consumer- the focus has shifted increasingly to

exclusive, high-end brands and experiences. While this is currently a strength of Avenue

Illustrated, the delivery of these unique experiences will need to be strengthened in coming years

as more competitors realize the potential in the target demographic.

Avenue Illustrated will also encounter challenges in marketing to this very specific

consumer and identifying the best way to do so in Spain. Mercedes-Benz Fashion Week Madrid,

though prestigious and high-profile, is not currently one of the world’s “most watched” fashion

weeks. Taking this fashion week to the next level and competing for viewership, as well as desire

to attend, will present a challenge that can be tackled with both a revitalized marketing strategy

and the development of a unique, never-before-seen experience to be offered by Avenue

Illustrated.

13

External Analysis

Porter’s Five Forces

Rivalry

The rivalry to Avenue Illustrated can be assessed in several different ways, depending on

the scope with which one examines the market. As a provider of luxury magazines and services

for Chinese immigrants and tourists in Spain, Avenue Illustrated has a pretty clear advantage.

They identified a need nearly a decade ago and focused on creating content for this specific

14

growing market. Currently, there are no other fashion magazines within Spain addressing this

specific target audience, which has eliminated the threat of close competition. However, on a

broader scale, when one examines the fashion magazine industry as a whole, Avenue Illustrated

has several huge rivalries. High-grossing, internationally known magazines such as Vogue, Elle,

Cosmopolitan, and Harpers’ Bazaar fill a more general need, providing fashion advice and

experiences to a wide variety of consumers. These magazines have such a wide breadth of reach

that they will never specialize as much as Avenue Illustrated has. However, their dominance in

the market and their adaptation to recent trends in social media can influence consumers.

Demonstrating a growing awareness and recognition of important social movements, and a wide

range of high-profile coverage could potentially cause consumers to gravitate towards content

published by big international names in the industry.

Threat of Substitutes

Since Avenue Illustrated is a multi-faceted operation, they face a wide variety of potential

substitutes. For example, many luxury stores in Spain have become aware of the growing trend

of Chinese consumers flocking to Europe for their high-end goods and experiences and have

adapted to this shift. One of Avenue Illustrated’s greatest strengths is the identification of needs

and creation of easy ways to fulfill them within the target demographic, but they are not the only

ones offering these services. Many large stores, such as El Corte Inglés, have installed

multilingual signs with Chinese directions on them, and have staff available with experience in

multiple languages. They also have personal shoppers, tailors, and assistants specializing in

helping Chinese consumers. Large brands, such as the aforementioned El Corte Inglés, have

expanded to even offering services that would be found at a traditional travel agency.

15

Buyer Power

In our analysis of Porter’s Five Forces, buyer power is not one that we found to be

particularly relevant in our case. While there are many fashion magazine options for buyers to

consider, the differentiation of Avenue Illustrated gives them leverage. Operating in Spain with a

focus on the Chinese population eliminates the possibility of substitutes in the market and helps

to differentiate the product. Buyers are not able to get similar products due to the specialization

of the content.

Supplier Power

Due to the competitive environment, the supplier power for a brand like Avenue

Illustrated is high. Operating in such a niche market, with no close substitutes, has allowed them

to have more control over pricing and availability. As Chinese immigration and travel continues

to increase, there are many buyers and only a few suppliers which have also contributed to the

high bargaining power of Avenue Illustrated. However, they are limited by the prices that other

major fashion publications such as Elle, Vogue, and others set. Overall, the exclusive nature of

the luxury fashion market also correlates with the supplier power. The main suppliers for the

service and experience sector of what Avenue Illustrated offers are the luxury brands that they

work with to provide customer experiences and new products. These suppliers are very

concentrated. The very nature of the luxury market means that the products or services that are

being acquired are each unique and difficult to replicate as the brand name is what the customers

are seeking.

16

Threat of New Entrants and Entry Barriers

The luxury magazine and service industry has relatively high barriers to entry. For

Avenue Illustrated, the primary step was acquiring the rights to the brand name. Not everyone

has the resources or the know-how to do so. In printing a magazine, there is also specialized

equipment and software for creation, design, and printing. Assets that are difficult to obtain also

include the brand connections- one has to be very strategic and have some sort of connection to

be able to work on such an exclusive level with brands such as Tiffany and Co., L’Oreal, and

Chanel. The market is also extremely volatile. Shifting trends, consumer preferences, and habits

make it extremely difficult to stay afloat, and there are huge risks associated with making

investments in the fashion and luxury industry, as there is such a difficult balance between

loyalty to classic brands and the desire to search for fresh new faces. Recently, print magazines

as a whole are becoming less popular, as consumers are favoring digital access to their favorite

content.

Market Demographics

The Chinese Luxury Consumer

There are about 200,000 Chinese citizens living in Spain according to recent data.xiii As

the Chinese economy has grown, luxury spending has increased. Chinese luxury consumers

make up almost one-third of the luxury consumption market. A culture of “spend tomorrow’s

money” has arisen, particularly in young groups, meaning that luxury consumption is not

necessarily limited to the upper echelon of societyxiv. Millennials (Gen Y), born between about

1980 and 2000, will have an estimated purchasing power of about 1.4 trillion dollars by the year

2020xv. A study showed that “newness”, “in-season”, and “street casual” were important factors

17

that millennial consumers from China seem to be seeking in their purchases of luxury goods and

experiences. They are seeking trends that differ significantly from traditional luxury

consumption in past generations. Streetwear is very in style, and uniqueness is valued over

heritagexvi.

Increasingly trends show that Chinese consumers are gravitating toward luxury

experiences as opposed to simply luxury goods, which is a crucial portion of Avenue

Illustrated’s services. The culture of consumption has become more discerning- a luxury label is

not sufficient to attract attention. Buyers are becoming pickier and have more specific desires in

mind for their luxury purchases.xviiThis trend highlights another strength of Avenue Illustrated,

which is to pay attention to new, unique, international experiences (for example the Sound-Rise

parties).

PEST Analysis

18

Political Factors

Spanish Immigration and Customs Policies

“In the last two decades, Spain has evolved from a country of emigrants to a country of

immigrants.”xviii Currently, Spain uses a visa system to manage immigration for people coming

from outside the European Union or other countries with which Spain has an established bilateral

agreement. There is a visa requirement to enter and stay for an intended purpose in Spain, which

is classified according to the following types of visas: transit; short-stay; residence; residence

and work; seasonal residence and work; and study and research. This system aims to restrict

illegal migration and to promote the needs of the Spanish labor market. Each visa classification

has specific rights and obligations.

Currently, China does not recognize dual citizenship, however, this regulation is subject

to interpretation based on the residency of the Chinese national in the Republic of China, either

Mainland China, Hong Kong, or Macau. The Chinese government would simply ignore their

foreign citizenship and the applicant would technically have a citizenship in two countries, with

the secondary citizenship not recognized in the eyes of China. Spain recognizes dual citizenship,

although only under limited circumstances. However, non-Spanish nationals in Spain are

required to apply for residency, which is essentially one step down from citizenship, after staying

in the country for longer than three months.

Worldwide Security Concerns

According to research conducted by Reuters.comxix, “Spain has seen a surge in international

visitors partly due to security concerns in other popular holiday destinations such as Egypt and

Turkey.” Political unrest or terroristic threats in other popular tourist destinations may continue

to propel Madrid forward as a more popular place of travel. On the other hand, if an incident

19

were to occur in Madrid, it may deter tourists from visiting as frequently. This would have an

overall effect on the luxury market since tourism contributes a great deal of spending within this

market.

Trade Restrictions and Tariffs

Recent changes in Chinese import tariff policy could have major impacts on the way Chinese

consumers purchase luxury goods. The government has been working to shift consumption of

luxury goods from the foreign to domestic markets. Historically, taxes on imported goods to

China include import duty, value-added tax, and consumption tax, which makes up a total of up

to sixty percent in taxes. This taxation rate ranged from forty-five to seventy-five percent higher

than import taxes in comparable competitive markets such as the U.S. and Hong Kong.xx In

2015, efforts toward “price harmonization” spearheaded by French luxury brand Chanel meant

that the Chinese were no longer charged a premium on these luxury goods and were more willing

to purchase them in the domestic market.xxi Additionally, in 2017, the Finance Ministry reported

tariff decreases averaging ten percent, which has dramatically increased demand for luxury

goods within the domestic market. These tariff and pricing changes are extremely important to

watch for European luxury brand carriers, such as stores like Corte Inglés, or companies like

Avenue Illustrated. The draw to purchase luxury goods in foreign markets is weakening, and

goods alone will be an unreliable basis with which to attract the attention of the target

demographic.xxii

Economic Factors

Tourism

20

According to research from Reuters.comxxiii, tourism accounts for eleven percent of Spain’s

economy. Currently, Spain is the world’s second most visited country after France. Also, tourist

spending has “hit a new record in 2017, rising to 12.4 percent in the year from 2016.”

Particularly, Chinese tourists in Spain are on the rise due to new direct flight paths from

Shanghai, Hong Kong, and Beijing into Madrid. In 2015, more than 300,000 Chinese came to

Spain, contributing $612 million into the economy. Typically, Chinese tourists stay eight and a

half nights and spend almost 2,000 euros each trip.xxiv In 2020, Spain aims to welcome one

million Chinese tourists. The Spanish government also plans to publish guides about Spain in

Chinese to present restaurant and hotel options that cater to Chinese tastes. However, there are

still tourism restrictions beyond Chinese borders that affect their ability to travel overseas.

Increased Buying Power

Chinese consumers are becoming one of the largest drivers of global economic growth. They are

one of the top markets for automobiles and clothes, which makes them a huge player in the

luxury market. In terms of exports and commerce, from 2011 to the present, about 7,000 cargo

trains traveled on sixty-one lines linking cities such as Madrid with thirty-eight Chinese cities

including Xi’an and Yiwu. This is due to the growing appetite of Chinese consumers that are

“going global.” The increased China-Europe commercial overlap mirrors the power of China’s

deep-pocketed consumers; as their economy has grown so has their willingness to spend more

money on foreign products in pursuit of better quality and experience. Currently, China has the

largest middle-class in the world, with a growing population of 300 million people.xxv The

buying power of these consumers continues to increase as wealth increases and globalization

expands.

Economic Growth

21

Spain’s economy has grown fairly consistently at a rate of 3% for the past three years and is

projected to grow 2.6% this year. However, the unemployment rate in Spain is over 17% and

public debt is still high, both factors which could be problematic for the Spanish economy.xxvi

China’s economy has been growing steadily for years and is expected to continue growing in the

next few years, which will hopefully contribute to more growth of Chinese tourism to Spain and

Chinese luxury consumption.xxvii

Exchange Rates

One Chinese Yuan is equal to 0.13 euros at the moment, but exchange rates fluctuate on a daily

basis. Because Avenue Illustrated’s target market is Chinese tourists and immigrants to Spain,

the exchange rate affects the price value for potential consumers exchanging Yuan for euros. The

Yuan to euro exchange rate was on a downward trend in early 2018, but the value of the Yuan

against the euro has risen recently in the summer months. xxviii

Prices of Luxury Goods in Spain versus China

Many Chinese consumers purchase luxury goods while they travel abroad. The reason for this is

that luxury goods are much more expensive in China than in other places in the world. There was

a twenty percent rise in tax-free spending by Chinese tourists in 2017 partially because of the

lower prices abroad.xxix The inflated prices of luxury goods within China are due to the various

import taxes and duties within the country. When Chinese consumers travel abroad they are

often inclined to purchase luxury goods due to the appeal of lower prices. Luxury goods can be

anywhere from twenty to seventy percent more expensive in China than in European countries,

with the average falling at a thirty-two percent difference. Chinese consumers account for about

thirty percent of the global consumption of luxury goods. Considering almost half of luxury

22

goods are purchased by traveling consumers, the opportunity for Spanish retailers to reach

Chinese tourists is tremendous.xxx

Social Factors

High Rate of Chinese Immigration in Spain

As of 2014, there were almost 200,000 Chinese people living in Spain, which was triple the

number of Chinese immigrants just ten years earlier. This trend persists in Madrid as well, where

63,784 Chinese immigrants were living as of 2016. In the 2015-2016 year, more than 3,500 new

Chinese residents settled in Madrid, making them the largest growing ethnic group in the city

that year. Chinese people in Spain are successful as well; ninety-five percent of Chinese people

living in Madrid are employed, and forty percent are self-employed.xxxi Additionally, Spain has

had approximately 40,000 net migrants into the country for the last three consecutive years, and

the immigration rate is only predicted to grow, migration from China included.xxxiiWith these

statistics in mind, Chinese residents in Spain will only continue to gain more economic influence

and purchasing power.

Dynamic Fashion Market

The fashion market is constantly progressing and changing according to shifts in style and

culture. Globalization and the rise of social media allow new trends to emerge and disappear just

as quickly. While the luxury market is currently the most popular trend amongst Chinese

consumers, this could shift as the styles and trends are constantly evolving. It’s crucial for

Avenue Illustrated, and all fashion magazines in general, to stay ahead of trends to provide

readers with the most exciting, unique, and fashionable looks in the market. Operating in such a

23

dynamic market comes with many risks, but also provides many opportunities to capture a

specific target market with the differentiated material.

Social Events

Social events are critical to the luxury markets because it brings together consumers in the same

demographic to network. The specific market of Chinese luxury consumers is the group targeted

by Avenue Illustrated. This is a niche market that appreciates community, which can be

promoted through social events. Partnerships with events such as the annual celebration of the

China club in Spain allow Avenue Illustrated to influence and support this community in an

impactful way. Social events are an effective way to inform potential consumers about the

product in an impactful and memorable setting. In a recent study researchers found that “74% of

event attendees say they have a more positive opinion about the company, brand, or product

being promoted after the event”xxxiii. Through promotional social events, Avenue Illustrated can

reach more of their target market and expand their customer reach. Particularly within the luxury

market, consumers are interested in attending upscale social events that appeal to high-end taste

and bring together wealthy, affluent consumers. By hosting these kinds of events, Avenue

Illustrated has the ability to establish themselves within the market so they are perceived well by

their target audience and they can better interact with consumers in a memorable way. There are

also opportunities for Avenue Illustrated to sponsor social events to promote their brand.

Influencer Marketing Trend

Influencer marketing is a major trend that has changed the way consumers regard marketing

altogether. People are beginning to trust influencers over traditional advertisements, which

means that agencies must adjust their marketing strategies. Most influencer marketing is done

through Instagram, Youtube, Facebook, and WeChat. This trend utilizes people with larger social

24

media followings to promote products in a more authentic, experiential way. Brands partner with

these people and their platforms to reach a wider audience. These partnerships often include the

influencer posting about the product, sponsored ads, or even partnered trips and commercials.

This trend has seen major success in the United States which has led it to spread to other

countries. This method of marketing is normally less expensive than traditional methods like

commercials and print marketing. Another benefit is that it can seem more personal and come

across as word-of-mouth marketing. These influencers are often viewed as trusted friends among

their followers. By utilizing the influencer marketing trends, companies are able to reach their

target markets for less money and in a more effective method. There are many opportunities for

Avenue Illustrated to work with influencers, particularly within the Chinese market, to promote

events or products.

Health Consciousness

Health conscious consumers are changing today’s marketing trends, especially in the luxury

market. Realizing the importance of promoting a healthy lifestyle, Avenue Illustrated has

introduced specific events tailored towards this trend. For example, following recent trends in

large American cities, Avenue Illustrated has begun hosting “daybreak parties” in Madrid where

they encourage people to come to a club in the morning for dancing and healthy food options.

This has proved to be a fun way for health-conscious consumers to exercise, socialize, and start

their day in a unique way. Keeping with this trend, Avenue Illustrated should continue to

promote events that cater to healthy living and appeal to consumers who are looking for unique

experiences. Specifically, China is becoming the world’s largest market for healthy eating,

spending nearly $70 billion on health and wellness. With this in mind, there are opportunities for

25

Avenue Illustrated to appeal to Chinese consumers in Spain through the promotion of health-

centered events.

Age Distribution

Avenue Illustrated appeals to a young audience with an interest in fashion and luxury goods.

Seventy-two percent of their market is between the ages of twenty-two and fortyxxxiv. With such

a young audience, it’s important for Avenue Illustrated to keep up with emerging trends in the

market and keep content relevant for their readers. As will be discussed in the next section, this

younger generation is also heavily influenced by technology and social media. Keeping this in

mind, Avenue Illustrated must adapt to these changes in order to reach consumers in the most

effective way.

Technological Factors

Digital Subscriptions

As younger consumers, in particular, become more dependent on technology, digital magazine

subscriptions are on the rise. Consumers now have instant access to publications from their

smartphones, laptops, and tablets while on-the-go, which has affected the magazine industry

tremendously. Ultimately, the purchasing of physical print copies is declining. As magazines are

being forced to introduce online subscriptions, there are many changes that must be combated by

publishers. For example, online magazines will not have as many ads. However, they can include

more technologically advanced, targeted ads for readers. There is also the potential to make the

magazine more interactive through the online version. While the decline of physical print

consumption could potentially hurt the industry, there are plenty of opportunities to keep up with

the digital subscription trend and find new ways to appeal to younger consumers. Also, many

26

consumers are still able to find value in reading through a physical copy, particularly when it

comes to fashion magazines. Avenue Illustrated aims to produce content that is artfully

composed and delivers a unique experience for readers.

The Rise of Social Media

A reported seventy-five percent of people in Spain between the ages of sixteen and fifty-five

years old use the internet at least once per week. The most popular social networking site

(excluding WhatsApp and Spotify, which are not relevant advertising platforms for this project)

is Facebook, both for social purposes and brand updatesxxxv. Worldwide, the most users of

Facebook are between the ages of eighteen and thirty-four. “Post-millennials,” (a new term used

to describe people born after 1996, or Gen Z) are an increasingly important demographic, as they

are the first generation to grow their entire lives in a digital age (often referred to as “digital

natives”)xxxvi. Millennials are also the largest demographic of internet users, with about eighty-

eight percent of people ages eighteen to twenty-nine using at least one social media site, and

seventy-eight percent of people ages thirty to forty-nine, based on a census taken in the U.S.xxxvii.

A study by Bain and Company on the Chinese luxury market shows that those between the ages

of twenty to twenty-five spend around twenty-two hours a week on online platforms, while those

ages twenty-six to thirty-four spend about twenty-one hours per week. This has encouraged

luxury brands to increase their spending on digital advertising by a range of five to fifteen

percent since 2015. About seventy percent of Chinese consumers prefer making purchases from

brand websites as opposed to through social media, so a brand’s accessibility is clearly crucial.

Artificial Intelligence

Artificial intelligence is defined as “the theory and development of computer systems able to

perform tasks normally requiring human intelligence, such as visual perception, speech

27

recognition, decision-making, and translation between languages” by dictionary.com.xxxviii This

has already been implemented in many industries in a variety of ways. As the technology

progresses, it will continue to become even more widespread within the fashion industry in

particular. One way this technology is currently being implemented is through online customer

service. Many websites have help options that use artificial intelligence to direct you to what you

are looking for (example of a

common format for AI customer

service shown below). This

decreases the amount of time a

customer spends waiting to get

a response from a human

customer service representative.

For large companies, AI is playing a role in the supply chain department. Optimizing

distribution, scheduling price cuts and coordinating geographic locations are ways AI is

revolutionizing the supply chain of retail companiesxxxix. AI has also been implemented in areas

like clothing design and outfit selection. AI is implemented in both these areas through scanning

images and recognizing common design elements. The AI program then creates a mixture of

those to make a new design or outfit. While there are still mishaps of the AI creating impossible

designs, there is a promising future for the development of AI designed clothing.xl

Virtual Reality

Virtual reality is described as “the computer-generated simulation of a three-dimensional image

or environment that can be interacted with in a seemingly real or physical way by a person using

special electronic equipment, such as a helmet with a screen inside or gloves fitted with

28

sensors.”xli Virtual reality was thought to be a futuristic concept, but it is now being implemented

in everyday life. VR is currently mostly used in gaming implementations but has promising

future within the fashion industry. Specific technologies are being developed to use VR to test

the effectiveness of different store layouts and product displays. This saves the company's money

because they do not have to build the concept stores and displays to test them. Brands like

Tommy Hilfiger and Coach have already begun implementing VR technology. In specific stores,

customers can wear VR headsets to give participants a 360-degree view of their latest runway

shows and lines.

Other companies like GAP are experimenting with VR dressing rooms, which have the greatest

potential for widespread implementations. VR dressing rooms allow for clothing items to be tried

on virtually through an interactive mirror or smartphone app. Recent research through a virtual

fitting room called Metail, along with Tufts University, found that VR applications in fitting

rooms can boost sales by twenty-two percent if implemented correctly and effectively. These

statistics have huge implementations for the retail industry and we will see VR in the fashion

industry more as the technology becomes more accessible and affordable.xlii

29

Example of VR technology that allows customers to virtually fit and sample different outfits

Competitive Analysis

Assessment of Competitors & Other Related Magazines

As the only Spanish magazine with such a heavy emphasis on reaching the Chinese

population living within Spain, Avenue Illustrated lacks an abundance of direct competition.

Despite this unique advantage, however, there are indirect competitive elements the magazine

still must address and combat in order to maintain its desired reputation.

In terms of competitive publications, internationally Avenue Illustrated is competing with

Vogue, the most influential magazine in the world. Vogue has been setting fashion standards for

over a century and has established global editions of their magazine, such as Vogue Italia, Vogue

Spain, etc. Avenue Illustrated seems to incorporate a substantial amount of the influences of

Vogue into their magazine style. This is a great way to give the reader the same high-profile,

luxury feel with a perspective and style that is uniquely their own. Implementing details of an

already trusted fashion magazine is a great way to instill trust in Avenue Illustrated as well. Elle

30

magazine is also an international competitor of Avenue Illustrated. Like Avenue Illustrated, Elle

features high fashion trends, but their main focus is on more accessible and affordable brands

and clothing lines. In recent years, Elle has made strenuous efforts to be more competitive with

magazines like Cosmopolitan and Glamour by featuring stories similar to those that would be

found in their magazines. This is a part of Elle’s initiatives to broaden their audience and

contributes to their efforts of creating a recognizable discretion among them and similar

publications. Vogue, Elle, and Glamour all have booths at Madrid Fashion Week, which allows

them to give out free magazines, and show an official face at one of the biggest fashion events in

the country. Once Avenue Illustrated becomes better-established in a few years, this is a major

competitive element they will want to consider.

Within Spain, L’Officiel De La Moda poses a threat to Avenue Illustrated as competing

for the best Spanish fashion magazine. Their target audience is high-class and fashion-savvy

women who like to keep up with current trends. While Avenue Illustrated is in the pursuit of a

more specific demographic, the two magazines have some overlap in target audiences. Another

point of consideration when comparing these two magazines is the difference in frequency of

publications. L’Officiel De La Moda is a monthly magazine, while the Spanish edition of

Avenue Illustrated is published bimonthly and the Chinese edition is quarterly. Most of the major

magazines that Avenue Illustrated competes with publish monthly.

Fashion influences online also pose indirect threats to the objectives of Avenue

Illustrated. Social media platforms such as Pinterest create trusted networks of fashion tips and

advice that is free and as easily accessible as an application on a smartphone. High-profile

fashion blogs, as well as individual brand websites, serve as trailblazers for popular fashion

trends. People often trust brand websites as a direct way to access information about trends and

31

purchases they may make. Influencers and bloggers reach a wider target audience, as their

content is often free and more easily available.

Another threat to the “experience” side of Avenue Illustrated’s business would be El

Corte Inglés. This mall style store features many luxury brands in categories ranging from

fashion to technology to dining. They also offer travel agency and personal shopping services.

Corte Inglés has stores throughout Europe and Africa and is a Spanish based brand. Locations

are easily identifiable in a major shopping location. The chain drew over 14.59 billion euros in

total revenue in the year 2014. This famous brand also offers services in varying languages, and

signs in the stores provide indications in English, Spanish, and Chinese. Because El Corte Inglés

is so widely known, they post huge competition to Avenue Illustrated in providing a luxury

experience and connections to a wide variety of brands.

The chart below contains basic comparison information for the competitors discussed

above. Information about distribution, demographics, and resources came from brand websites

and media kits.

Competitive Analysis Chart

Competitor Population Print Online Distributio

n

Years

Active

Avenue

Illustrated

Females between 22-55,

luxury consumers,

influencers, Chinese

population living in or

visiting Spain

X X Spain bi-

monthly,

5

32

China

quarterly

Vogue (Spain) Females, mostly employed,

premium buyers

(specialized editions of

Vogue made for different

countries)

X X Monthly 30 (Vogue

itself has

been active

for 126

years)

Elle Females, millennials,

diverse audiences

X X Monthly 73

Glamour Females, millennials,

motivated

X X Monthly 79

L’Officiel De

La Moda

Females 25-49 years old,

higher class, living in cities

X X Monthly 97

Fashion Blogs n/a X Varies Blogs

officially

invented in

1990

Brand Websites Varies, usually very high-

end buyers

X n/a Varies,

oldest brand

is Hermes

(1837)

El Corte Inglés Middle to upper-class X n/a 78

33

Internal Analysis

SWOT Analysis

Strengths

Avenue Illustrated has experienced a great deal of success as a differentiated, luxury

magazine. Their strong brand image has been established through high quality and carefully-

curated content that appeals to their target market of high-end customers. Conveying a theme of

exclusivity and an aspirational quality throughout their material, Avenue Illustrated is considered

a lifestyle magazine for readers. To maintain a strong presence in luxury markets, Avenue

Illustrated also hosts trendy events geared towards their target audience. One trend they have

been recently promoting is the concept of “Daybreak Parties” which are morning dance parties

with healthy food options. The concept is to promote a healthy way to start the day with fun,

upbeat exercise in a social atmosphere. Hosting these parties has helped to increase the overall

brand awareness and brand loyalty. Differentiation is another major strength of Avenue

34

Illustrated. By operating in such a niche market, Chinese people living in Spain, Avenue

Illustrated has created a unique offering that avoids major competitive threats. For the Chinese

version of their magazine, Avenue Illustrated has employed an entirely separate team that is

highly specialized, qualified, and knowledgeable about this specific market. This has established

Avenue Illustrated as an expert consulting firm in better understanding and marketing towards

the Chinese population in Spain. This specific target market is also very strategic since the

Chinese market in Spain is growing each year and they have the highest purchasing power. The

passionate leadership behind Avenue Illustrated and their strong brand partnerships are other

strengths that have propelled the success of this company.

Weaknesses

As a fashion magazine in the digital age, it is extremely important for Avenue Illustrated

to maintain a strong presence online for consumers. Currently, they do not have a website which

could potentially hinder the overall accessibility of the magazine, and dismiss any opportunity

for new customers to discover their brand. While they have recently increased the frequency of

their posts on Instagram, they should utilize social media platforms more consistently and post

content that is relevant to their brand. Most often, they repost pictures from other brands instead

of original content. Currently, they have 1,459 followers on Instagram which could be easily

increased by creating more interactive social media and the appropriate use of hashtags. There

also seems to be a lack of promotion regarding Madrid Fashion Week. As a premier fashion

event in Madrid, Avenue Illustrated needs to reinforce their involvement in Madrid Fashion

Week and use social media to create a sense of excitement leading up to the catwalk. Rather than

employing a last-minute approach, Avenue Illustrated should use a variety of social media

platforms (Instagram, Facebook, WeChat, etc.) to promote Fashion Week using a consistent

35

hashtag. While their specific niche market is a great strength for Avenue Illustrated, such a

targeted audience can possibly limit their ability to expand the brand into different markets.

Opportunities

With a growing Chinese population in Spain, there are many opportunities for Avenue

Illustrated to grow within this market. Avenue Illustrated can implement new strategies to grow

interest in Madrid Fashion Week from Chinese residents and travelers. There is also a huge

opportunity to increase their digital presence through the use of various social media platforms.

As technology continues to become an integral part of society, the fashion industry is changing

each day and presenting new opportunities for brands. With the development of virtual reality

and e-commerce, Avenue Illustrate has the opportunity to embrace these new technologies and

adjust to the ever-changing market. Overall a stronger identity online will allow Avenue

Illustrated to better engage and interact with social media users to create stronger brand loyalty.

As a lifestyle brand, Avenue Illustrated has the opportunity to widen their scope into various

realms of culture. Similar to the daybreak parties, they should continue to host events that appeal

to high-end customers and market the brand in new and exciting ways through partnerships and

individual promotions.

Threats

The biggest threat to any magazine in today’s age is the declining trend for readers to

purchase physical copies. As we move towards digitalization, more consumers are choosing

online versions of magazines or newspapers. Not only are online subscriptions a threat, but

virtual reality technology is penetrating the fashion world as well. The ability of this technology

to provide a multi-dimensional, interactive experience will be very attractive to high-end users

and will continue to become more accessible as phone companies integrate these capabilities into

36

their devices, and brands begin releasing more affordable VR headsets. Digital media and the

rise of social media has allowed some consumers to rely solely on social media to receive their

news or to browse through new fashion trends. Despite this overall industry trend, fashion

magazines tend to defy these declining statistics due to their artistic nature. The design

components and aesthetic appeal encourage many consumers to invest in hard copies rather than

digital. Other possible threats include predicted decreases in immigration. Currently, the target

market for the magazine is projected to grow, but immigration laws could change and restrict this

possibility. An economic crisis could also be a threat to this market. Avenue Illustrated is catered

towards the luxury consumer and market, however, an economic recession could restrict the

discretionary income of potential consumers. This could lead to the cancellation of existing

customers magazine subscriptions or reduced interest in the content due to inability to participate

in the target market.

VRIO

Value

Avenue Illustrated’s magazine presents valuable ideas and content that are not otherwise

addressed by publications for this target market. The Chinese luxury consumer relies on this

publication to inform them of current trends as well as creative lifestyle content. Since this need

is this is not being met through other channels in Spain, Avenue Illustrated has created additional

value for their consumers. By providing a valuable publication, Avenue Illustrated protects

themselves against potential threats of close competitors. The value of the publication

differentiates Avenue Illustrated from other fashion magazines and creates a need to consistently

meet within their customer base. Avenue Illustrated has a high intangible value with their

37

thoughts and ideas, but the tangible value of the physical magazine is lower. The magazine only

costs four euros to purchase, which is very low for such a high quality and unique product.

Rareness

Appealing to such a specific niche market has established Avenue Illustrated as a rare

publication. They also have a creative team with the goal of producing unique, fashion-forward

content in their publication that surprises and inspires their readers. Using well-established

freelance photographers, Avenue Illustrated aims to capture images in ways that visually excite

readers and encourages a dialogue between brands and clients. However, a lot of the material

presented in the magazine is not necessarily rare. Any fashion magazine could feature luxury

goods and the same brands. Even with the focus on the Chinese demographics, many of the

products presented are the same luxury goods that would be found in competitors’ magazines.

With the proliferation of content on social media and the Internet, fashion content has become

even less rare due to the constant free flow of information. Overall, luxury brands build their

websites around visually engaging content and display it in an editorial style similar to

magazines. Ultimately, Avenue Illustrated is able to maintain their rarity due to the specialization

of their market. However, they must constantly stay ahead of trends to produce rare content in

their magazine.

Imitability

While Avenue Illustrated may feature specific interviews and topics not displayed in

other magazines, they do not have exclusive access and those topics could be seen in other

publications in the future. This makes the magazine easy to imitate. If a larger corporation were

to target the same market as Avenue Illustrated they would face very few barriers. The content in

the magazine could be put into other magazines easily. In addition, Avenue Illustrated does not

38

have their own team of photographers to produce their content. The use of freelance artists to

create many of the photographs as well as material increases the imitability. While Avenue

Illustrated purchases the content from the freelance artists, those artists also work for other

publications. This makes their styles evident in other magazines. It would be expensive for a

brand new magazine to afford to imitate the luxury style of Avenue Illustrated but it would not

be out of budget for an established magazine to imitate Avenue Illustrated. This means that

Avenue Illustrated does not have a sustained competitive advantage. However, they currently

employ an expert team of Chinese directors who have great insight into their specific

demographic. As a consulting firm, many other companies even look to their experts for

assistance in appealing to the Chinese market. Since they are so well-established in this field of

knowledge, it would be difficult for another magazine to immediately have as much insight into

the Chinese market within Spain.

Organization

The overall organization of Avenue Illustrated has proven to be effective. The

collaboration between the main team and the Chinese team along with the freelance artists allows

them to work efficiently. The structure of the company, in general, is quite complex with their

three major sectors of the magazine, translating services, and experiences. The organizational

structure is centralized but a flat structure allows collaboration between all the departments of the

magazine. The structure allows them to accomplish many tasks with a small group of passionate

employees.

39

Avenue Illustrated’s VRIO Capability

Excellent Employee Management

Valuable?

Rare? Costly to Imitate? Is a company

organized to exploit

it?

Yes Yes and No No Yes

Result: Competitive Parity

Strategic Analysis

TOWS Matrix

The TOWS Matrix is a strategy for analyzing a company’s strengths and opportunities to

optimize their success. It also shows the possible threats and weaknesses that a company may

face. Analyzing these aspects of the company can help in formulating possible strategies to

improve upon what they have been doing already, while also highlighting specific aspects that

have not been addressed. Referencing the SWOT analysis found prior in this report, our team

identified the opportunities, threats, strengths, and weaknesses faced by Avenue Illustrated. We

used these to develop strategies that will promote brand awareness and growth within the

company.

Pairing Avenue Illustrated’s opportunities and strengths is the most straightforward way

to expand the company. Their knowledge of high-end trends is a core competency of the

40

company that has translated into their ability to produce content that appeals to their audience.

The passion and attention-to-detail behind each publication is another strength demonstrated

through each publication. We suggest pairing that same passion and drive to keep up with trends

that will increase the interest in Mercedes Benz Fashion Week Madrid. Avenue Illustrated can

also maximize their opportunities by leveraging their exclusivity to inspire others to pursue their

brand. Using their expertise in the high-end market, they can utilize social media to encourage

engagement with their brand and attract new readers.

Strengths can be used to increase positive opportunities, but they are also used to

minimize threats. One strength of the company is the specificity of their target audience.

Appealing to this niche market minimizes the threat of competition and sets high barriers for

competition to enter. A threat to the company is the Spanish and Chinese economies and the

possible instability. Another way to use their threats and strengths would be using the positive

relationship they have with their competitors who are high-end brands to possibly expanding

their consulting and translating sector through the connections they have made.

Weaknesses and opportunities are paired together in order to strengthen those weaknesses

and seek out opportunities that may have not been available if they had only used their strengths.

An example of that would be using the growing market of Chinese immigrants / travelers to

Spain to grow their small, niche market. Since Avenue Illustrated is a more unique magazine

than their bigger competitors, they can use this as an advantage to stand out during events such

as Mercedes-Benz Fashion Week. One of their weaknesses was the lack of social media used

surrounding the event. It would be beneficial for Avenue Illustrated to reach out to those coming

to Spain from China through social media and advertising. Combining that weakness and

41

opportunity would possibly give Avenue Illustrated an increase in their following and more

consumers for their brand.

The TOWS Matrix examines not only the positive aspects of a business but also the areas

that need improvement. Avenue Illustrated should address some of the threats and weaknesses

they face in order to grow as a company. Creating strategies to minimize weaknesses and avoid

threats would allow the company to view those areas and be able to make plans to avoid them in

the future. One would be concerning the limited internet access that China’s government allows

their residents. Since Avenue Illustrated has a smaller social media in the Chinese market could

cause fewer problems with the government. Another would be since their market is quite specific

this allows them to be a larger part in many different areas to be used as a lifestyle resource

while they are over in Spain (i.e. consulting, translating, etc).

Product Market Strategy

Avenue Illustrated is a magazine focused on delivering a unique and high-quality product

to luxury consumers. To maintain a differentiated advantage among both Spanish and Chinese

consumers, Avenue Illustrated has strategically positioned the separate publications according to

the tastes and needs of each market. For the Spanish edition, they create original content

specifically for the Spanish-speaking market of fashion innovators living in Spain. This edition is

published six times a year and is distributed in Spain and abroad. 20,000 copies are distributed in

Spain and 10,000 copies are distributed abroad. Eighty-five percent of the nationally distributed

copies are concentrated in the major Spanish cities of Madrid, Barcelona, Valencia, and Bilbao.

The Chinese edition of the magazine is published quarterly and coincides with traditional

Chinese events, like the Chinese New Year. 15,000 copies are published with 855 copies

42

distributed in Madrid and Barcelonaxliii. By targeting the Chinese population living in Spain, the

company caters to a previously unreached demographic. They have created superior value by

focusing on content specifically for Chinese people living in Spain through specialized material

that blends together the Spanish and Chinese cultures while concentrating on the luxury market

and products offered in Spain. By partnering with the Chinese Editor-in-Chief of Ouhua Daily

and El Mandarín, Avenue Illustrated has specialized resources and insight into the Chinese

demographic in Spain. Their product market strategy has allowed them to appeal to an audience

that hasn’t been reached by other publications. By catering to luxury Chinese consumers living

in Spain, Avenue Illustrated has created a monopoly on this target market. Avenue Illustrated has

also formed an entire business segment based on their insight and consulting knowledge that they

have gained from working so closely with Chinese consumers in Spain. These relationships and

connections have inspired many successful high-end cultural events, such as the celebration of

the Anniversaries of the China Club in Spain.

Due to the narrowness of its target market, Avenue Illustrated takes a very specific

approach to distributing its product. The company has partnered with Air China to provide

copies of the latest magazine issue in all first-class seats on flights from China to Spain. Iberia, a

prominent Spanish airline and high-level sponsor of Madrid Fashion Week, also began non-stop

service from Madrid to Shanghai in 2016.xliv The magazine is also available at premium national

kiosk circles, VIP stores, El Corte Inglés, and Espacios Gourmet, with specialized distribution to

VIP lounges in Adolfo Suárez Madrid–Barajas Airport and other international airports, strategic

luxury hotels, and a handful of other luxury locations in Spainxlv. The limited availability of the

magazine is strategically chosen to target the desired clientele while retaining exclusivity.

Avenue Illustrated does not follow the typical magazine marketing strategy of social media

43

promotion and widespread availability, but rather limits promotion to more subtle efforts

centered on their target market.

Overall, the aesthetic and high-quality design of their magazine distinguishes them from

competitors. The glossy cover and thick pages make the magazine feel like a special feature. The

bright and stylized photos mixed in with the text content and artfully created advertisements

make this a visually engaging publication. Ultimately, the quality of the magazine is reflective of

their brand partnerships in the luxury market. The brand advertisements blend in with the

editorial style of the magazine to create a flow between the pages and style. The differentiation

strategy allows Avenue Illustrated to succeed in their market of high-end consumers.

Functional Analysis

Marketing and Sales Analysis

The most recent data available from Avenue Illustrated describes their sales and

distribution from 2015. The semi-annual Spanish magazine distributed 10,000 copies abroad, and

20,000 copies within Spain, with most of this concentrated in major Spanish cities and premium

lounges, airport spaces, hotels, and kiosks. They recorded 10,200 copies sold. The Chinese

edition of the magazine is published quarterly, with 15,000 copies available for major markets.

855 of these copies are dedicated to Chinese residents within Spain, specifically in Barcelona

and Madrid. The distribution locations vary, but are specifically targeted at places with a high

volume of Chinese residents or visitors, such as Air China, China Club, various higher-end

Chinese restaurants, and Chinese bookstores. Avenue Illustrated defines its target market as

“men and women, really illustrated influencers, opinion leaders on tendencies, between 22 and

44

55 years old, luxury market, premium client.”xlvi Avenue Illustrated has partnerships with high-

end brands such as Chanel, L’Oreal, Kellogs, Essie, Tiffany and Co., and Infinity.

The experience portion of Avenue Illustrated works to develop campaigns to set trends

and deliver a unique, luxurious experience to its clients. They do so through their partnerships

with high-end brands, and examination of popular trends in other countries to deliver experiences

that are new to the Spanish market. One of the fundamentals of the Avenue Illustrated vision is

personalized communication, so the delivery of a personalized experience that could not be

achieved anywhere else is a large part of their branding. Their sale point strategy emphasizes

“technology, personalization, and the human interaction.”xlvii Much of their marketing strategy

for the Chinese edition of the magazine involves releases and events that revolve around

noteworthy Chinese holidays. Avenue Illustrated also prides itself on providing parallel, yet

unique experiences for the differing editions, recognizing and respecting cultural difference

while also drawing on the fundamental similarities that make us artfully human.

Final Results

Strategic Recommendations

A comprehensive marketing plan for Mercedes Benz Fashion Week will address the

stages before, during, and after the show, so as to provide a well-rounded customer experience

and attract the desired high-end, luxury consumers that the magazine is targeting. Before Fashion

Week, social media blasts, a travel guide, and giveaway plan will boost visibility and give

Avenue Illustrated a position that uniquely enhances the consumer experience. During Fashion

Week, working with a social media influencer could provide major publicity for the brand. After,

45

a pop-up event and a Fashion Week wrap up to get feedback will allow the brand to continue

expanding and improving upon their involvement in Mercedes Benz Fashion Week Madrid.

Activities Before Fashion Week

Social Media Improvements

Background

The luxury industry adapted to social media with reluctance, but is quickly realizing the

importance and relevance of social media as an advertising and communication channel. Social

media can be utilized, among other things, as a means to gather specific data about consumer

preference based on location, age, and interests. Facebook and Instagram are currently the top

two platforms for consumption of information about luxury brandsxlviii. A 2014 study done in the

United States found that around sixty-two percent of millennials see a direct link between brand

content and brand loyaltyxlix. Avenue Illustrated defines its target age as twenty-two to fifty-five

years old, which is an increasingly viable demographic, as The Economist predicts that by 2026,

millennials will be the main consumers of luxury products. Branding is essential for all

companies, but especially ones focused on luxury goods and experiences, as so much of the

added value comes from the brand name itself. An online presence can no longer be ignored by

luxury brands, as every interaction with a company contributes to the customer’s perception of

their reputation and professionalism.

Recommendations

Social media improvements are a quick, easy, and relatively inexpensive step to take in

expanding the image and audience for a brand. Avenue Illustrated currently has Facebook,

46

Twitter, and Instagram, as well as Weibo. Specific recommendations will be included for each

platform, as well as suggestions for expansion into a website and a WeChat account. A

scheduling tool, such as SproutSocial or Later, provides a comprehensive program that allows

one to schedule posts, as well as address multiple platforms at a time for ease and efficiency. The

content that goes into these social media posts could be drawn from various sources-

photographers with the magazine, magazine staff attending the events, posts from other brands,

and attendees who have given permission for personal photographs to be used. One staff member

should be designated to make social media posts on a consistent basis and engage with followers

on these platforms. The hours in which users are most engaged on social media varies by

platform (see chart below). Posts made outside of these hours can still garner attention, but

Avenue Illustrated should consider what these hours of engagement are in order to increase

viewership and attention.

The only social media improvement that would require a major budgeting decision is the

creation of a website. Hiring a web designer to build a custom site can range from €4,000-€9,000

depending on the functionality and the features of the site.l Although this is a considerable

expense, website development is critical for Avenue Illustrated's success moving forward.

In order to measure the success of increased social media presence, Avenue Illustrated

should pay attention to engagement statistics available on the social media sites. It’s important to

note whether the changes are actually working to increase exposure. Another detail to take note

of would be the number of people that seem to be actually responding; is there increased interest,

more consumers that seem to be seeking out their services, increased subscriptions, etc.

Existing Avenue Illustrated employees, especially the creative director, should be in

charge of determining the initial details of formatting, aesthetic, frequency, and content. As the

47

brand expands, it would be very helpful to have a social media intern. Internships can be unpaid,

but the average paid social media intern (based on US data) receives $8.77-$10.20.li Depending

on the season, this intern could work part-time, with the location being extremely flexible. On an

average day, if Avenue Illustrated gives this intern access to their recent photos and brand

updates, the intern could be in charge of only posting content that already exists. Hours and

involvement may change if there are special events hosted by Avenue Illustrated, or events that

the brand participates in, such as Madrid Fashion Week, in which the intern would be most

effective if present at the event to document firsthand.

Instagram Instagram is currently the platform that Avenue Illustrated posts on with the most frequency and

consistency. Content posted on the page is relevant to the fashion world as a whole, which is

excellent, as it shows that Avenue Illustrated is attentive to current events and trends. However,

when posting, the relationship that the magazine has, or how the brand can uniquely offer a

perspective and a direct connection with these events, is usually unclear. Ideally, Avenue

Illustrated would use Instagram to provide insight into upcoming editions, interviews, and events

sponsored by the company. If reposts or outside content are going to be drawn from, there should

be a clear indication of Avenue Illustrated’s relationship with the trend or event and how the

magazine will participate or draw inspiration from it. It is important that Avenue Illustrated

makes their Instagram a business profile, as this gives the opportunity to run promotional ads, as

well as track statistics based on views and exposure to the account.

Facebook Facebook engagement, at the moment, is extremely infrequent and very little of the content

includes the exciting and appealing visual images used in the magazine. Facebook is traditionally

used as a more personal means of communication, so consumers should be able to gather a clear

picture of what the brand is about from the page. The Facebook page should clearly display the

latest events and brands that the company has been involved with, and include images and/or

videos in order to attract the attention of users scrolling through. Facebook messenger should

also be utilized to answer any relevant queries sent in by followers.

Twitter The majority of posts on the current Twitter account include only links to Instagram. If users are

unfamiliar with the brand, they might be reluctant to explore these links further. There is also the

chance that they are using only one social media platform, and that exposure on Twitter might be

the only chance to draw the user in. With this in mind, the Twitter should include many more

images, and short, exciting captions that explain the branding or involvement in a concise and

attractive way.

Weibo The Weibo page’s most recent article is from 2016, so it is important that it be updated with

48

recent content. This would be an excellent venue for articles about Madrid Fashion Week, as well

as other events that the brand is involved with throughout the year. Since Weibo functions much

like Twitter, the pages could be run in a similar fashion, given that the content being posted is

relevant and accessible to the target demographic.

Website In order to truly appear and compete as a high-end brand, Avenue Illustrated needs to make a

functional and accessible website. Currently, there is a link available online through Google, but

it leads to a page that appears incomplete and is confusing to the user. A website is an essential

tool for potential and current consumers to learn more about the brand’s history, staff,

involvement, and upcoming projects. Avenue Illustrated is not only about the magazine, but

about the experience. A professional website would allow users access to an easy and inclusive

area to seek out detailed information about the latest trends and events that the company is trying

to promote. Most importantly, the brand image of having an ineffective website, especially for a

luxury based company, can be devastating. The existing link should either be taken down or

improved upon in order to improve the perception and avoid confusion from potential consumers

and future brand partners.

WeChat WeChat has become a huge outlet for online purchasing in China. To have a presence on this

website and develop a brand identity here would be a huge next step in direct exposure to the

target market. Many researchers and sources have deemed WeChat a necessary tool to be

competitive in the Chinese market. Posting articles about events and brand partnerships will

garner major attention for Avenue Illustrated, directly to the target demographic. Since the

company currently has a page, it is important that they keep it updated. WeChat would also be an

excellent area to post information about hotspots in Madrid to attract travelers to these areas. The

most influential fashion bloggers in China have anywhere ranging from hundreds of thousands of

followers to numbers in the multi-millions.lii WeChat campaigns have proved very successful;

this could mean providing exclusive discounts on products, or a chance to be featured on the

page. WeChat also has two types of advertising. Moment ads are shown in the “Moments” feed.

The lowest level of this type of ad usually costs around $7,500. The Account ads are more

affordable, and will usually be featured at the end of a highly viewed article or page with high

subscriptions.liii

49

These screenshots are just some examples of social media accounts that can serve as examples for elements of

consistency, relevance to current events, and glimpses of magazine content to entice viewers.

Best Times to Post on Social Media by Platform

Social Media

Platform

Best Hours Best Day General Trends

Facebook*liv Wednesdays, 7 PM

and 9 PM

Thursdays, 8 PM and

9 PM

Thursday Weekdays, 5 PM and

10 PM

Instagram*lv Wednesday, 10 PM

Thursday, 12 PM, 6

PM, 10-11 PM

Friday, 12 PM

Thursday Tuesday through

Friday, 4 PM to 3

AM

50

Twitter*lvi Friday 4 PM to 5 PM Friday Everyday 5 PM to 7

PM

WeChat**lvii 6 AM to 9 AM, 8

PM to 1 AM

Saturday and Sunday Weekends

Weibo**lviii 10 AM to 12 PM, 10

PM to 12 AM

undetermined undetermined

*Converted from Central Standard Time to Central European Summer Time

**China Standard Time

Travel Guide and Giveaway

Madrid Fashion Week currently provides a brief reference guide at the actual event with a

large map of Madrid, pointing out a few local hotspots for transport, dining, and activities.

However, Avenue Illustrated would be able to offer access and information about events

exclusively tailored to the Chinese community, informing readers of the best places to stay, shop,

eat, and party. This will encourage people who live in Spanish cities other than Madrid (43% of

the Chinese population)lix to commute to visit Fashion Week. This could also be attractive for the

people who read the magazine on the flights to and from China (28% of their distribution).

Associating an enjoyable experience with Avenue Illustrated will encourage consumers to return

to the area, perhaps bringing friends, and they will be inclined to use Avenue Illustrated to be

ensured of a well-rounded and fun trip. The travel guide would be something very easy to

convert into an online blog or social media post to further increase accessibility to the

information.

Avenue Illustrated worked with arranged transportation in the past to organize luxury

shopping excursion when the brand realized there was a need being unfulfilled in the Chinese

51

community in Spain. They could set up something very similar, identifying the areas in which

people are concentrated that need transportation to Fashion Week, and hiring charter buses to get

them to the event.

Avenue Illustrated should take advantage of their partnerships with many high-end

brands in order to ensure that the experience that their customers are having is fun, luxurious,

and unlike anything other brands could offer. A great way to encourage brand participation with

this travel guide is to include a give away for the ultimate Fashion Week experience. This

giveaway could include exclusive access to a backstage tour for a runway show, a brand goodie

bag (L’Oreal makeup, for example), and/or a pass to the VIP room at Fashion Week for one

person plus a guest. The ideal way to market and collect responses to this contest would be

through a website, so this would definitely be a feature to consider including in the buildup of the

website. A mail in contest card with contact information or social media contest would be

alternative methods to consider. This could generate positive publicity for the magazine,

especially if an explicit provision includes encouraging the winner to post on social media about

the experience brought to them by Avenue Illustrated.

Budgeting decisions for Avenue Illustrated would vary depending on how involved they

want to be in the experience for their customers. Charter bus prices range from €330 to €425lx

per day depending on a timeline of rental and number of passengers. Advertising through social

media is cheap and simple. Instagram business profiles have the option to promote posts at

budgets of their choice, depending on their exposure objectives. Budget options range from $1-

$1,000 (€0.86-€860) per day.

Cohesive graphics, like the ones shown below, between the magazine article and social

media posts would create a flow between the print and digital platforms and synchronicity along

52

the contest duration. This is a basic and low-cost way to advertise the service that Avenue

Illustrated is promoting. A mutually beneficial agreement with companies such as the Only You

Hotel (a Mercedes- Benz Fashion Week Madrid sponsor), or other higher end hotels and

residences in the area, to offer discounts to customers who mention the Avenue Illustrated name

in exchange for advertising space in the magazine could be established. Including nightly rates

(Only You Hotel runs at about €155)lxi and potential discounts would make this guide more

comprehensive and attractive to customers.

Issues of access might present themselves as a problem. Acquiring passes to the events

for multiple people and getting brands to agree to enough exclusive opportunities to create an

entire experience sponsored by Avenue Illustrated may take some years of development and

increased awareness but is a worthy goal that could raise Avenue Illustrated to the next level.

Concept travel guide title page

53

Concept social media post

Madrid Fashion Week 2018 Travel Guide (located at event)

54

Activities During Fashion Week

Social Media Influencer

Partnering with a popular Chinese social media influencer would be another great way to

expand Avenue Illustrated’s online presence. The influencer could live-stream backstage, feature

posts on all their social media sites, blog about their experience, and engage in other applicable

promotions. With a high fashion luxury influencer, the target market could be reached through

their social media platforms. There is also the opportunity for them to be photographed by street

style photographers and be featured on the social media or publications of other magazines in

Spain.

We considered different potential influencers that could be helpful in bringing in more

followers to not only the social media accounts, but to Avenue Illustrated as a whole. We based

our decisions off of evaluating their social media presence and overall look and style of their

accounts. Fil Xiaobai and Han Huohuo both have 101,000 followers and 380,000 followers,

respectively, on Instagram and are verified. We also considered Weibo, which is more popular

than Instagram in China. Some of the most influential celebrities on there are Yang Mi, Kris Wu,

and Hu Ge. They each have a high following and are in the public eye, therefore they are good

potential influencers. Another person we discussed was a video blogger who is quite popular

named Jiang Yilei. He would be an asset if we wanted to go more towards video content rather

than photos. One of the most famous influencers that we debated was Fanfan. She is a fashion

and beauty influencer who is verified with 2.8 million Instagram followers. Fanfan has an

everyday fashion website and owns a smaller boutique which is one of the main reasons we

considered her. She also happens to be a friend of Marca España, a sports newspaper based in

55

Spain, which gives her another tie with the people of Spain. However, her brand and connections

with a sports newspaper may not be as high fashion and as exclusive as we are trying to achieve.

This is an important aspect of our recommendation because by finding the right

influencer is what can bring in their target demographic to their brand. An example of that

relationship between an influencer and a company would be Chrissy Teigen and Becca

Cosmetics. Chrissy Teigen is a former model and now is a cookbook author, influencer, among

other things. She has 18.9 million Instagram followers compared to the 2.6 million that Becca

cosmetics has, this posed a large potential to reach a larger market. The company and Chrissy

have launched a collection together named Endless Summer Glow, which includes some of the

more popular summer beauty trends such as highlighters and body glow oil. Not only did they

collaborate, but Chrissy is also posting about the products and parties hosted. Numbers do not lie

in this social media influencer and company relationship. As an example when Becca Cosmetics

posts about the products it only gets liked about 7,000 times and reaches roughly 43,000 people.

However, when Chrissy Teigen posted about their highlight palette it was liked over 174,000

times and reached over 2.6 million people.

As shown by the numbers above, having a social media influencer partner with a brand

increases exponentially the exposure the brand or product receives. If Avenue Illustrated were to

partner with an appropriate influencer for Fashion Week, this would grow their magazine and

gain more followers and therefore customers for the magazine.

Influencer cost depends heavily on their follower count. “Micro-influencers” that

typically have between 1,000 and 10,000 followers may still be willing to do promotional work

for free. However, influencers who are widely known often expect payment in exchange for their

brand promotion. There is a loose rule of thumb called “one cent per follower,” but other factors

56

to consider include the amount of posting, strength of the partnership, and the length of the event

which they are promoting. Rates also vary depending on the type of post- for example, blog or

Instagram posts from high-level influencers can cost up to thousands of dollars, while a

temporary Instagram story is often significantly cheaper.lxii

Social Media Engagement

Social media should be utilized not only before, but also during Fashion Week to

promote the designers and experiences from the perspective of Avenue Illustrated. Permanent

posts, such as Instagram photos, should be done at the end of the day during prime posting hours

as explained in the earlier graphic. Posts that only last for a limited amount of time, such as

Instagram or Facebook stories, can be better utilized for live updates during the day. Tweets are

also a good platform for quick, live updates. Posts to give more thorough updates at the end of

each day should include Instagram photos, Facebook posts, WeChat posts, Weibo posts, and a

blog post on the website giving an overview of the designers featured that day. Timing of the

posts, aesthetic, and format should be generally similar across platforms, so that users have an

easy and interesting way to keep up with what the brand is doing during Fashion Week. This will

engage the target market daily and increase their personal relationship with the company as well

as establish a consistent brand identity via social media.

Activities After Fashion Week

Pop-Up Publicity Event

A pop-up publicity event would entail the execution of a one-day experiential advertising

event to promote Avenue Illustrated after Madrid Fashion Week. Some ideas include hosting a

flash-fashion show, a series of “live mannequins” wearing the latest trends, or a mock-magazine

57

cover that allows users to engage with the brand and see themselves as a part of Madrid’s

Fashion Week. The main idea behind any of these options would be to create an eye-catching,

fashion-themed spectacle that intrigues viewers, attracts media attention, and thereby generates

more interest in MBFWMadrid and Avenue Illustrated. Each exhibition could feature a QR code

with a link to Avenue Illustrated’s website and other MBFWMadrid-related posts on social

media. This would promote the brand and the event by engaging consumers in a new and

exciting way. Ultimately, the idea is to intrigue the viewer enough to make them search the

hashtag and find more information on Fashion Week and Avenue Illustrated.

A pop-up fashion show would also be a unique way to bring the glamour of fashion week

to those who aren’t necessarily able to attend. This kind of experience ties in with the kinds of

trendy events that are already being promoted through Avenue Illustrated. For this event, various

models, photographers, and managers could gather in one location to organize a public fashion

show that brings high fashion straight to the streets of Madrid. Models could reveal extravagant

and eye-catching designs while photographers capture the looks and the audiences’ reactions.

There could also be added elements of music and lighting to create the full effect of a fashion

show. This concept would transform the sidewalks of Madrid into a designer runway and would

attract the attention of anyone in the area.

These flash-fashion shows have already become more popular in major cities around the

world like New York City, Toronto, Amsterdam, and London. They are typically more simplistic

than true catwalk shows, with just a handful of models and minimal photographers to help cut

down expenses and simplify the coordination of personnel. Using a similar approach, Avenue

Illustrated’s can alter this idea according to their own specific vision and budget. During the pop-

up event, the Madrid Fashion Week hashtag should be incorporated into signs and

58

advertisements so that people clearly understand what is being advertised. If desired, models

could even carry poster board signs featuring the fashion week and Avenue Illustrated hashtags.

A similar variation of the flash-fashion show could be organizing a series of live models

positioned in Madrid’s fashion districts. This concept is loosely inspired by the various artistic

renditions of the Diego Velázquez Las Meninas statues currently scattered throughout Madrid.

An image of the first flash-fashion show held in New York City (Organized by online retailer Modvanti.com)

An image of the first flash-fashion show held in New York City (Organized by online retailer Modvanti.com)

The statues attract attention and invite viewers to appreciate unique renditions of the

original artwork. However, since the statues are currently all over the city there isn’t an aspect of

exclusivity. Avenue Illustrated could streamline this concept, narrowing down a few desirable

59

locations in high-end areas of Madrid, to make the models more obvious and high-profile. A few

models could be dressed and styled in dramatic looks from prominent Spanish designers from the

recent fashion shows and then placed in the most significant fashion hotspots around the city.

Models could essentially act as live statues to gain attention and promote the MBFWMadrid

hashtag. The most important goal of this concept is to make the models as eye-catching and

conspicuous as possible to attract publicity. This idea could be easily implemented after Fashion

Week by partnering with some of the designers to display fresh-off-the-catwalk looks around the

city. Overall, this would be a fairly cost-efficient approach to gain publicity since the only costs

involved would be paying the models and any hair or makeup services they required.

The best locations for any of these publicity ideas would be in Madrid’s fashion centers

such as Gran Via and Calle Serrano, or in upper-class neighborhoods where large numbers of the

target audience live. These locations would best target fashion-minded individuals and promote

fashion week within the desired community. These neighborhoods include Salamanca-Recoletos,

Retiro-Jeronimos, Chamberi-Almagro, and more. Finding the best locations for the pop-up shop

is integral to its success as it’s aimed to attract a specific target audience.

Another variation of this concept would be to place large displays around the city

imitating an Avenue Illustrated magazine cover. The display would feature a large backdrop that

passersby could pose with to become the cover-photo of the oversized magazine. The prop

magazine cover would feature both the Avenue Illustrated name and the Fashion Week hashtag

which would generate publicity for both the event and the brand. Ultimately, the cost of the prop-

cover would be the only cost involved. This magazine cover idea could be combined with either

of the other pop-up ideas as well, its key feature being flexibility.

60

These ideas could be implemented before or after fashion week, depending on the desired

effect. If it was implemented after fashion week, Avenue Illustrated could partner with one or

more designers that participated in Fashion Week. This would bring attention to Avenue

Illustrated and that designer, creating a mutually beneficial partnership. All of these ideas for

post-Fashion Week content are suggestions with a similar goal of increasing publicity for fashion

week and Avenue Illustrated, but depending on budget constraints and partnership availability,

any combination of these suggestions could be utilized.

Fashion Week Wrap Up

The next edition of Avenue Illustrated should feature content related to Fashion Week

with the aim of increasing publicity surrounding this event. This section of the magazine could

discuss trends for the upcoming season, street style, Avenue Illustrated’s favorite designs, a

backstage look at Fashion Week, and interviews with the designers. If the trip giveaway was

implemented, this would also be a feature in this area discussing the winner’s experience. This

would allow the readers to get an exclusive inside look into Madrid’s Fashion Week and would

build interest for the next Fashion Week. While this idea is already minimally implemented in

Avenue Illustrated, we feel it could be improved upon by including more in-depth information

centered around Fashion Week, the designers, and other related events.

Another post-Fashion Week initiative Avenue Illustrated could take is to interview and

profile a specific featured designer from the show that they believe will have the most prominent

impact on the Chinese-Spanish culture. This feature should be published in the magazine, as well

as linked to each social media account to make for an easily accessible and readable story. Not

only will this establish more of a presence within the Chinese-Spanish culture, but it will also

increase magazine-designer relations as a collateral benefit. The magazine may want to ask

61

questions about specific designs, the designer’s favorite moments from the week, or something

he or she is looking forward to for the next Fashion Week. Pursuing and publishing content that

creates a connection between the designers and readers is one of the most efficient ways create a

need in a niche market that as of now, only they can fill.

Virtual Reality

Virtual reality is a relatively new technology that has the potential to completely

transform the fashion industry. With so many possible applications, today’s brands are

incorporating VR into their marketing strategy in a variety of ways to better engage consumers.

Overall, we believe that virtual reality has great profit-potential and is much more than just a

passing trend. This being said, we feel that Avenue Illustrated should look more into the

capabilities of utilizing VR and the ways in which it could elevate their brand internationally.

Avenue Illustrated could essentially function as an entry point into the Spanish fashion

scene on a global scale, bringing the virtual reality concept to Madrid Fashion Week. As a small

company with a lower budget compared to other players in the market, it is important that

Avenue Illustrated leverages their brand associations and the potential for international exposure

in order to pitch this idea to IFEMA. Average costs for the development of a virtual reality app

are around $15,000 (will vary depending on the sophistication and specific needs of the

program). These programs are then sold to companies at prices that can reach $100,000. In order

for this idea to be mutually beneficial for Avenue Illustrated and Madrid Fashion Week as a

whole, it is important that all of the main players for the event are involved.

To offset costs and foster the idea of virtual reality as a comprehensive experience, the

budget would be split between brands looking to participate in Fashion Week. Avenue Illustrated

62

would first have to approach IFEMA and explain the technologies available, the benefits of

virtual reality, and their own idea to function as a middle-man between the virtual reality

developers and Fashion Week. A simple and comprehensive way to obtain the necessary funds

and participation for developing the virtual reality technology for Fashion Week would be to

increase the entry fee for designers and sponsors to Madrid Fashion Week. This fee increase

would go towards the development of the virtual reality app, which would be further discussed at

a meeting between all Madrid Fashion Week participants. The amount of the contribution would

depend on how many designers are participating and how much everyone is willing to

contribute. Brands could also have an option for more high-profile and explicit exposure

depending on their involvement with Fashion Week. For example, one of the areas accessible on

the virtual reality tour could be the “L’Oreal Makeup Backstage Experience,” highlighting that

L’Oreal is the official makeup artist and hairdresser for Madrid Fashion Week. While some

designers and sponsors (especially more up-and-coming ones) might be hesitant about a fee

increase, it is important for IFEMA to emphasize that this will make designs immediately

available on a worldwide scale, boost the reputation of Madrid Fashion Week as a trailblazer for

technologies in the fashion world, and put the designers featured at the show on a much larger

stage. It is an investment for a huge future benefit.

After having the opportunity to test out a new virtual reality application that features a

live fashion show and behind-the-scenes content, we believe that this technology could present a

unique opportunity to globalize Madrid’s Fashion Week. It would provide a way for more people

to feel connected to Fashion Week as they get a first-hand glance into the excitement of the

event. The particular app that we got to do a trial run on allowed the user to stand directly on the

catwalk as models appeared to walk right past their line of vision. The user could also see the

63

crowd, photographers, flashing lights, and other aspects of the show. Additionally, there were

options for the user to go backstage to observe the makeup artists, hairdressers, designers, and

other personnel working the event. Overall, there are a variety of ways that Avenue Illustrated

could apply this virtual reality technology to both creating customer experiences and marketing

for Madrid Fashion Week. They could design an app that allows users to get live looks into press

conferences, the shows, and behind-the-scenes access into the work that goes into preparing the

models and designs. This would be an exciting way to expand the reach of Fashion Week to

those who can’t necessarily attend. Ultimately, it is essential that they take the necessary steps to

modernize their existing social media so that Avenue Illustrated can be trusted as a brand that

can carry Madrid Fashion Week to the next level by using new technologies.

The new virtual reality experience could also be converted into an online web store that

increases the exposure and

availability of designs debuted at

the event. Existing virtual reality

technologies allow customers to

select pieces in the shows they are

watching, see a 360-degree

preview of the piece (as seen in

the picture to the right), and buy it

directly off of the app. Avenue Illustrated would provide links to download the app, as well as

links to the web store, on their website. Avenue Illustrated should also have information

available on their website about their partnerships with virtual reality experiences, and the

technologies available.

64

Virtual reality could also be incorporated into the pop-up events. Depending on the

timeline in regard to the actual Fashion Week event, different portions of the fashion experience

could be showcased. If Avenue Illustrated were to host some sort of viewing party during fashion

week, they could easily give participants exclusive access to buying through virtual realities.

These viewing events would be for high-end customers who are very likely to make purchases or

be viewed as high-profile influencers in the fashion world. If the pop-up event were to be held

after Fashion Week, a more economically diverse crowd would be able to enjoy footage of the

event and get exposure to what Fashion Week is and how influential it is for the culture of

fashion in Spain. The best way to incorporate this VR technology into the event would be to have

a booth set up with the Avenue Illustrated logo and have a representative present to explain how

the technology works, what features are available, and allow users to experience Fashion Week

in a whole new way.

65

Example of a VR fashion show

Potential Benefits and Challenges of the Recommendations

To summarize our recommendations, we have compiled this visual demonstrating the

potential benefits of each suggestion, as well as the possible challenges that could occur through

the implementation.

Recommendation Potential Benefits Challenges with the

Implementation

Social Media

Improvements

● Reaching a larger portion of

potential customers

● Easy way to brand the company

● Inexpensive

● Already have existing accounts

● Adding another

member to the team

with a background in

social media

● Added expenses to the

66

● Access to what other brands are

doing

● Connecting with customers

before they come to Madrid

● Shows the customers that

Avenue Illustrated stays up to

date with the trends

budget

● Constant keep up with

the accounts

● Must consistently

provide new content

Travel Guide and

Giveaway

● Reaching a new group of the

Chinese community in Madrid

● Creating relationships with new

companies

● A way to further their company

for the future

● Positive publicity

● Fun and new way for their

customers to interact with the

brand and participate

● Experiential luxury marketing

that will impact the trajectory of

Fashion Week

● High budget costs

● Creating the graphics

for the guide

● Acquiring passes for a

large number of

people to these

exclusive events

● Hiring the workers for

the trips, the buses,

etc.

Social Media

Influencer

● Bringing in followers (to the

brand as well as the social

media accounts)

● Increases exposure for the brand

● Utilizing the up to date social

media accounts

● Reaching into other aspects of

the fashion world

● Producing more content

● Word-of-mouth marketing to

their customers

● Increases over all social media

presence

● Hard to get in contact

with the influencer

● Potentially high

collaboration costs

● Choosing the correct

influencer that will

attract their potential

customers

Pop Up ● Shows that Avenue Illustrated is

up to date on the most recent

trends

● Creates a fun, interactive event

for their audience

● Separating themselves from the

competition

● Teaming up with designers and

enhancing the brand in the

fashion world

● Potentially difficult to

coordinate the models,

locations, permits, etc.

● Not enough

advertising or buzz

about the event,

therefore low

attendance

● High budget

67

● Creating a new trend in Madrid

for fashion companies

● Showing the company’s

creativity

Virtual Reality ● Keeping up with future trends

● Unique brand participation for

the customers

● Shows the company can evolve

technologically

● Not limited to just one use with

the Virtual Reality software

● Being the leader in this field

● Great profit potential

● A way to engage international

customers

● Connections with new

companies

● High costs (around

$15,000 - $100,000)

● Large upfront

investment

● Competitive field

●

Conclusion

In conclusion, Avenue Illustrated has a strong influence on the Chinese population within

in Spain. They have positioned themselves to have three branches of their business; consulting,

events, and the magazine which has allowed them to impact several channels. As a well-

established publication, they have a great opportunity to grow the general involvement in

Fashion Week, as well as generate more interest among the Chinese population specifically.

While there are areas of their company that could be improved upon, they have successfully

influenced the Spanish fashion market and consistently produce print content that inspires

readers.

After analyzing the overall position of Avenue Illustrated within the luxury fashion

market and identifying their strengths and weaknesses, we were able to formulate strategies that

have the potential to increase brand awareness and impact their involvement in Madrid’s fashion

week. As technology continues to progress and influence the fashion industry, it will be crucial

68

for Avenue Illustrated to adjust to the changing market scene and reach consumers in new,

unique ways. Creating a functional website and utilizing social media effectively will help

inform and engage readers with the brand, while also improving the accessibility for digital

users. In addition, the potential applications through virtual reality also present interesting

possibilities that should be further explored within the company. Embracing technological

developments within the fashion industry and among consumer trends will help establish Avenue

Illustrated as a leader and innovator within the marketplace.

Overall, our research and field visits to places like Madrid’s Museo del Traje and various

exhibits and stores around the city, allowed us to get a better look into Madrid’s fashion culture.

As a major European city with a growing emphasis on high fashion, the potential to grow

Madrid’s Fashion Week is promising. We believe that Avenue Illustrated can participate as a

major promoter for Madrid’s most important fashion event by implementing strategies like the

pop-up events and drawing more publicity to this event through increased social media and

featured magazine content. Working alongside MBFWMadrid will not only increase Avenue

Illustrated’s brand awareness, but it will also have an impact on the overall trajectory of this

event. Since Avenue Illustrated has such a strong influence on Chinese luxury consumers within

Spain, they can utilize this to generate more participation in Madrid’s Fashion Week among this

demographic. Ultimately, Avenue Illustrated has the opportunity to expand their influence over

fashion in Spain through the growing Chinese population and their luxury purchases.

References and Appendix

69

i Media Kit ii Media kit iii https://www.esmadrid.com/en/spanish-fashion-madrid?utm_referrer=https%3A%2F%2Fwww.google.com%2F iv http://www.globalblue.com/destinations/spain/madrid/history-of-calle-de-serrano/ v https://www.tourism-review.com/shopping-tourism-developing-fast-in-spain-news10297 vi http://fashionchinaagency.com/european-fashion-style-popular-china/ vii http://wwinlsf.blogspot.com/2014/06/a-page-from-fashion-history.html viii http://newsstyle.com/the-new-york-fashion-week-how-it-all-began/ ix http://db.glossy.co/fashion-calendar/fashion-month-by-the-numbers# x https://fashionunited.com/news/fashion/mercedes-benz-fashion-week-madrid-pushes-dates-forward-for-

2018/2017031315065 xi http://mbfwmadrid.ifema.es/ xii http://ifema.es/PresentacionInet/groups/institucional/documents/binario/ins_002493.pdf xiii https://marcaespana.es/en/current-news/culture/chinese-community-spain-and-year-dog xiv Wang, Son, Song 2013 xv de Tugny 2015 xvi https://www.luxurysociety.com/en/articles/2018/02/5-key-takeaways-china-luxury-market-study-bain/ xvii https://skift.com/2017/10/10/the-changing-habits-of-the-chinese-luxury-consumer/ xviii https://www.loc.gov/law/help/citizenship-pathways/spain.php

xix https://www.reuters.com/article/us-spain-economy-tourism/spain-international-tourism-breaks-records-for-fifth-

straight-year-idUSKBN1F01EI

xx http://www.bjreview.com.cn/forum/txt/2011-07/18/content_377264.htm

xxi https://www.ft.com/content/61bc103a-e38a-11e6-8405-9e5580d6e5fb

xxii https://www.bbc.com/news/business-42107311

xxiii https://www.reuters.com/article/us-spain-economy-tourism/spain-international-tourism-breaks-records-for-fifth-

straight-year-idUSKBN1F01EI

xxiv https://www.reuters.com/article/us-spain-economy-tourism/spain-international-tourism-breaks-records-for-fifth-

straight-year-idUSKBN1F01EI

xxv http://www.xinhuanet.com/english/2018-02/15/c_136977885.htm

xxvi https://elpais.com/elpais/2018/02/07/inenglish/1517993787_403748.html

xxvii https://www.focus-economics.com/countries/china

xxviii https://www.bloomberg.com/quote/EURCNY:CUR xxix https://www.ft.com/content/72812d3a-3ef9-11e8-b7e0-52972418fec4

xxx https://www.fungglobalretailtech.com/research/deep-dive-global-luxury-goods-pricing-price-differentials-

narrowing/

xxxi Media kit

xxxii http://www.worldometers.info/world-population/spain-population/

xxxiii http://experientialmarketingnews.com/experiential-marketing-statistics-you-should-know-in-2018/

xxxiv Media Kit

xxxv Prieto 2016

xxxvi Langone 2018

xxxvii Pew Research 2018

xxxviii http://www.dictionary.com/browse/artificial-intelligence?s=t

xxxix https://www.businessoffashion.com/articles/opinion/how-fashion-should-and-shouldnt-embrace-artificial-

intelligence

70

xl http://fortune.com/2018/03/15/fashion-ai-artificial-intelligence-future-kim-kardashian/

xli http://www.dictionary.com/browse/virtual-reality?s=t

xlii https://www.businessoffashion.com/articles/fashion-tech/virtual-reality-growth-engine-for-fashion

xliii Media kit

xliv http://www.chinadaily.com.cn/world/2016-01/25/content_23239659.htm xlv Media kit

xlvi Media kit

xlvii Media kit

xlviii http://arno.uva.nl/cgi/arno/show.cgi?fid=641682

xlix de Tugny 2015

l https://www.websitebuilderexpert.com/how-much-should-a-website-cost/

li https://www.payscale.com/research/US/Job=Social_Media_Intern/Hourly_Rate lii https://www.luxion.com.au/branding/6-influential-fashion-bloggers-china/ liii https://www.dragonsocial.net/blog/beginner-guide-wechat-for-business/ liv https://sproutsocial.com/insights/best-times-to-post-on-social-media/

lv https://sproutsocial.com/insights/best-times-to-post-on-social-media/

lvi https://sproutsocial.com/insights/best-times-to-post-on-social-media/

lvii https://walkthechat.com/day-time-post-wechat-articles/

lviii ttps://www.chinaskinny.com/about/

lix Media kit

lx https://www.cartour.es/services-prices/

lxi https://www.onlyyouhotels.com/

lxii https://later.com/blog/instagram-influencers-costs/