Virginia Commonwealth University
kguthrie@vcu.edu
TBA
Cultural Identity and the Product Development Process
With vertical integration and the horizontal growth of retailers, a growing global economy and market specialization, the fashion industry has changed dramatically in the last twenty years. As gross margin and the "bottom line" have become the driving forces, merchandisers are mandated to look for new ways of developing a competitive edge in the marketplace. Developing merchandise specifically for a target customer under a private label or with exclusive distribution rights has become the way of increasing profit margin while giving the customers exactly what they want. At the same time, social and cultural changes in societies have provided a platform for global brands. Subcultures have emerged as young people seek for identity and form a strategic target market. In particular, fashion has become a means of self-expression through which culture is articulated. The subcultures have given companies new grounds to grow economically. Today, merchandisers must have comprehensive knowledge of their target customer including cultural identity, demographics, psychographics, style, color and fabric preferences as well as price points that the market will bear. This process is made more complex when products must be adapted for another culture. Understanding cultural identity is the key element to the successful establishment of a fashion brand and/or retail organization worldwide.
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