1. Ana Muñoz Marta Bermúdez Antonio Frau José Luis Gutiérrez Enrique Lacalle Rocio Martínez Management of Fashion and Design Companies

2. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION History Two brothers, Custodio and David Dalmau. Were born in Tremp (Spain). Both studied creative degrees. –Custodio  Architecture – David  Art The two of them grew up in Barcelona. This provided them with an Urban influence. During their University period they traveled around The States, which influenced them with the surfers´ culture of South California.

3. History After doing “The Americas” they returned to Spain and started the business without a brand: –Creative t-shirts with a personal and individual design. During the 80´s they worked on t-shirts for men. In the 90´s launched t-shirts for women line. In March 1996 create the brand, Custo-Barcelona and start to sell t-shirts in prestigious stores around U.S. –Famous actors of Hollywood wear Custo t-shirts (marketing strategy) In 1997 they presented their First collection in the “New York Fashion Week” –The “customania” gets started. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION

4. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION Time-Line American influence Create and sell t-shirts, back in Europe Two brothers grown in Barcelona Experience the West Coast American life-style. Back to Europe. In the80’s Started creating men t-shirts. 90’s create the women line. 1996 launched the brand. U.S. market 1997 First show. “New York Fashion Week” Today Custo is a well-known brand sold in more than 50 countries in the five continents and owns more than 15 own-brand stores. Creative studies

5. Heritage History: Spanish designer of innovative and creative casual outfit. Know-How: technique of sewing prints. Celebrities and VIP’s as promoters, marketing strategy. Hollywood actors such as Julia Roberts, Brad Pitt, Penelope Cruz. Lifestyle vs. country of origin: creativity and individuality of Barcelona urban style. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANAYSIS CONCLUSION

6. CONTEMPORANY, FASHION, TREND BREAKER DISTINCTIVE GLAM Since 1996, fast evolution of innovative fabrics and designs Began with selective multibrand stores. Nowadays are shifting to the own- brand stores retailing strategy (brand identity). Transformation of informal clothing into distinctive and original outfits. Stylistic identity Minimalism, modernistic, innovative. Retail identity Young, provocative, unique, different, urban. VIP’s are used as promoters. Com. identity Brand Identity HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION

7. Brand Identity Distinctive Glam –Defines itself as “avanguarde”. –Does not follow tendencies. –Offers glamour to casual clothing combined with original design. –Alternative trends to define yourself as different, fashionable. –Targeted to people bored of social conventional style. –High purchasing power customer profile. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION

8. Brand Identity Stylistic identity –Transforms casual wear and complements into alternative, original and distinctive. –Colorful and original designed products. –Innovative. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION

9. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION Brand Identity Stylistic identity (description) –Materials: cotton, silk, wool, cheviot, cachemire. –Forms: nature environment motives, several icons, persons iconography (Jordi Labanda designs). –Colorful, high intensity and bright colors. –Products: t-shirts (pivot product), men & women’s wear and accessories.

10. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION Brand Identity Retail identity –Uses a minimalist, simply modern distribution in both, multibrand and own-brand stores. –Innovative decoration. –15 flagship stores all over the world. –First Flagship store: Barcelona opened in 2001. 50 m 2. Contrast between cold and warm materials, green ceramic material and cube shaped shelves, mixture of sensations. The outside is formed of a unique window. –Custo in Italy: one store in Rome and Perugia and two in Milan.

11. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION Brand Identity Retail identity –From multi-brand stores is moving towards own-brand stores. –Positions its products in well-known stores.

12. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION Brand Identity Communication identity –Present a young image. –Provocative, apart from conventional style. –Offers uniqueness, different to the rest. –Urban style, modern, functional. –Publicity and Public Relation’s: Chrysler PT Cruiser design Barbie (45 th anniversary) Celebrities

13. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION Brand & line extension Custo follows a Brand and line extension instead of Launching a new brand for new product categories. Why? –Custo brand is under a growth and consolidation process. –Less risky. –Lower cost associated.

14. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION Brand extension 1980´s: men t-shirts is the only product. 1990´s: Launch women t-shirts line. 1996: Custo is created. 1997: First fashion collection (New York Fashion Week) Nowadays Custo has extended its brand: Creation of new product categories under Custo’s brand. More than 500 articles per collection (1997- just 50) Men and women fashion lines Clothing: shirts, coats, jackets, dresses, skirts, pants, sweaters, swim suits Accessories: Handbags and shoes But T-shirts still represents a 60% of its income

15. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION Line extension New market segments: –1980´s  Just men's wear –1990´s  Women's wear New distribution channel: –1980´s and 1990´s  Multi-brand stores –2000  Empowerment of own brand stores –Objectives: Access more directly to costumers Offer them the complete Custo´s collection Brand identity

16. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION Growth Strategy Non equity agreements: –First expansion strategy: North American multi-brand stores to worldwide multi-brand stores –Presence in prestigious stores such as Sacks or Henri Bendel –Design agreements: Majorica (Accessories) Juan Antonio López (Shoes) Internal Growth: –2.000  Change of strategy: Empowerment of owned stores –Presence in the main international cities Present in more than 50 countries 85% of its income comes from international markets –Currently  Important investments in developing countries (Latin America an Asia)

17. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION SWOT ANALYSIS STRENTGHS  Architecture, Art and Design knowledge.  Success in USA: - NY Fashion Week - Celebrities  Distinctive product. Differentiation.  Continuous innovation.  Know-How in stamping techniques and graphic effects.  Recognition and Awards (Magazines, Kore).  Stores’ location. WEAKNESSES  Easy to copy  “Custo = T-shirts” perception.  Rely on initial product concept.  Young brand. Not consolidated in the market.  Large net of distributors. Very diversified selling points, lose of control. OPORTUNITIES  Consolidation and Development of line extension. Launching new product categories.  Expand in emerging markets ( Asia, South America).  Improve Brand Image an awareness by opening more Flagship stores.  Prone to sophistication, giving more added value. THREATS  Increase of legal and illegal copies of Custo style. Former Shut up of stores and current legal trials.  Become monotonous or repetitive.  Emerging and successful company threaten by acquisitions trend.  Operating in a very competitive market.  Slow brand changing strategy in a fast pace changing market environment.

18. HISTORYHERITAGE BRAND IDENTITY BRAND&LINE EXTENSION GROWTH SWOT ANALYSIS CONCLUSION “CUSTO, ALTHOUGH YOUNG, HAS SUCEEDED IN BEING RECOGNIZED AS AN INTERNATIONAL FASHION COMPANY, AND STILL HAS INTERNAL FORCES TO OBTAIN A VALUE – BRAND IDENTITY”