1. VII Encuentro de Empresarios de la Moda y Marcas de Prestigio
Apuntar al crecimiento: innovación y creatividad
2005 2008 2011 2014 2107 2020
Customer Experience Innovation in the Fashion and Luxury Goods Industry
Closing Keynote Presentation – Madrid May 25, 2005
Idris Mootee

2. agenda
history of innovation in the fashion industry
current technological innovations
the promise of technology crossing over with fashion
emerging technologies and applications
challenges of the fashion and luxury goods industry today
broader issues in smart fashion

3. fashion has
always been more
about
art than strategy
creativity than innovation
connections than governance

4. history of fashion
Tennis star Rene Lacoste, Cristóbal Balenciaga Yves St. Laurent opens
known as quot;le Crocodile,quot; introduces quot;semi-fitquot; fashion house; often
manufactures a versatile new dresses with soft, round uses ethnic inspirations;
tennis shirt. It features an shoulders; is the classic remains most classic
embroidered crocodile, believed designer of the 1950s modern designer, heir to
to be the first of a designer logo Chanel, Balenciagna
to appear on a garment.
1930 1947 1954 1960 1962 1965
Influenced by rock
Christian Dior Pierre Cardin
music, quot;Modquot; scene
reestablishes Paris as becomes first
makes London major
fashion center; revives designer to
fashion center with fun
haute couture; replaces license his name
and revolutionary
wartime austerity with for various
clothes: bell bottoms,
the glamour of the quot;New products; is first
psychedelic prints, wild
Lookquot; with tight waist, to create ready-
colors, dresses made
stiff petticoats, billowing to-wear lines
of vinyl
skirts

5. history of fashion
Benetton International Holding
moves its' headquarters in
Luxembourg, and begin its'
Known as Halston, Roy Claude Montana founds strategy in internationalization.
Halston Frowick dominates couture house; Toscani pushes its creative limits,
1970s with pantsuits, specializes in leather an approach that cemented its
sweater sets, form-fitting
distinctive positioning
dresses, knit wear
1970 1974 1979 1980 1985 1990
Ralph Lauren founded the Polo label in Alexander McQueen
Japanese quot;schoolquot; of
1967 with the quote “A tie was the way emerges as daring new
designers, including
a man expressed himself. I believed designer; features cozy,
Issey Miyake, Kenzo,
that men were ready for something new romantic designs; favors
Rei Kawakubo, Hanae
and different. They didn’t want to look highly theatrical fashion
Mori, enjoy major
as if they worked for IBM.” shows, models parade in
couture success rings of fire.
Giorgio Armani Donna Karan
creates men's wear launches line of
line; popularizes versatile, casual knits,
Italian tailoring favors black.

6. history of fashion
1993 1995 1997 2000 2003 2005

7. history of fashion
Human Survival
Redefinition

8. where will innovation
be coming from? and
how disruptive will
they be? smart fashion
soft computing
techno moda
from geek to chic
reactive fashion
wearable technology

9. what needs to happen?
Wearable Clothes that are made
from smart textiles
technology is to
(chemical, electronic or
change the whole
nanotech) with the
Smart
idea of how a
Wearable capability to react on
computer should be different solicitations such
Fashion
Technology as thermal, chemical,
used. A computing
biological or electron-
device can simply
magnetic Clothes that
be worn, much as have certain advanced
eyeglasses or functionalities
fashion, and – Contained certain
protection properties
interact with the
– Actively reacting to
user based on the
the external
context of the
environment or
situation. (MIT) user’s conditions
– Ability to deliver or
exchange
information about the
users

10. it’s where Tom Ford
meets Steve Jobs
+

11. current research directions
Non-emissive Soft Intimate Memory Rich
Display Computation Technologies Fashion

12. making smart textiles real
• Progress of ‘smart’ textiles from concept to practical applications
will require the development of a range of new technologies. The
science underlying these technologies still needs to be developed
• It requires flexible electronics, which includes conducting
polymers and the incorporation of sensors into textiles either
directly into the fibres or by conventional textile processes such
as knitting

13. what are smart textiles
Embedded Computing Textiles
Moisture Management Textiles
Electrical Conductivity Textiles
Innovation Drivers
Thermal Management Textiles
Nano Antibacterial Textiles
Nano IR Absorbent Textiles
Nano UV Protective Textiles

14. where Karl Lagerfeld
meets Bill Gates
+

15. smart fashion – the
concept of second skin
Modern science gradually encroached upon the world of clothing by
combining with the surfaces that protect and personalize our bodies.
Personal electronic gadgets such as cell phones and iPods, have become
new forms of adornment, connecting our inner world with our surroundings
and profoundly altering our relationship with the world.
These powerful devices have contributed to a process of layering our
personal boundaries with multiple strata of information and sensation.
The concept of 'smart 'clothes is to move towards a subtler and more
complex integration of technological elements – the concept of the quot;second
skinquot; .

16. fashion meets technology - a new
way to sensing the world
It’s time to radically rethink the concept of
what an intelligent lifestyle actually means.
We all live it in one sense or another. Smart
fashion offers exquisite design and technical
solutions integrated with everyday objects.
My Body
My Fashion
My Reachable Objects
My Living Environment

17. wearable technology
in the future

18. applications
Technology
Technology is a
Aesthetic
big show off factor
Functionality
Social and
Networkings Performance
Technology should
become invisible at
this point
Embedded
Technology

19. convergence
Advanced
Functionalities
Personal
Fashion
Communications
and Expressions
Sports
Technology
Advanced
Performance

20. the next killer apps?
Military and Law
Personal Personal Extreme Medical and
Enforcement
Expression Entertainment Sports Health
and
Communications
Advanced
Style Elements Bio Feedback
Connectivity
Protection Protection
Mood Heart Rate
Control
Body Airflow monitoring
Sexual Communication Movement Improvement
Preferences Respiratory
Monitoring
and Availability Emergency Monitoring
Smart Alert
Intimate Camouflage
Technology Auto SOS
Response

21. the next killer apps?
Medical and
Health
real time personal
smart clothes
a wearable
care systems
together with cost-
motherboard that
extend beyond
effective telematics
can effectively
serving the
can fundamentally
monitor vitals such
seniors e.g.
change the interface
as heart rate,
Lifebelt (wearable
between patients
respiration rate,
device for health
and the health care
ECG and body
monitoring during
provider s
temperature.
pregnancy)

22. the next killer apps?
Extreme
Sports
performance imagine when every
motorbike jacket
sports jacket that
fabric such as TK1 player vitals, stress
with an internal
offers advanced
irony and Kevlar and skills level can
heating mechanism
protection from and
fabric claims to be all be monitored,
that can monitor and
draw sweats away
knife and bomb stored and replayed
regulate body
from the skin and
proof that helps through a large
temperatures .When
trap air for warmth in
minimize injuries display. Real Xbox
unplug, the batteries
the cold
LIVE!
are charged by the
bike's engine

23. the next killer apps?
Military and Law
Enforcement
the helmet is the form-fitting suit liquid body armor,
massive sensors hub of the with the ability to STF is made of
inside helmet give uniform, where “all blend into any equal parts
the soldier three- of the action environment and polyethylene glycol
dimensional audio- happens,” a tiny thermal sensors – an inert, non-toxic
logical hearing and video camera in weaved into the thickening agent
the ability to amplify front provides 360 fabric to control used in a variety of
specific sounds. situational temperature common products
awareness.

24. the next killer apps?
Personal
Entertainment
and
Communications
a fabric keyboard on solar-powered display technology
a fabric keyboard on
a jacket or T-short panel equipped comes from optical
a jacket or T-short
that interfaces with jacket that keeps fiber woven into
that interfaces with
your mobile phone your iPod or just standard textiles
your mobile phone and PDAs to send about anything else which users can
and PDAs to send e-mail and send - charged-up all the download or create
SMS or act as time by a hidden and display their
e-mail and send
remote control battery own design
SMS or act as
remote control

25. the next killer apps?
Personal Extreme
Expression Sports
Plastic Optical Fiber
a prototype dress a prototype dress the Luminescent
consists of an inner
that periodically
has panels that Raincoat
acrylic plastic core
rearrange their
periodically juxtaposes
coated with cladding
illuminated electricity and
rearrange their of fluorinated
pattern according water in a raincoat
illuminated pattern polymer. Light
to the noise level that. illuminates
passes through the
to express the time of the based on patterns
length of the fiber in
in an encoded form environment of rain
a zigzag path
– a personal code

26. cool ideas
digital fabric
As with all clothes, smart garment
starts with the proper thread. Cotton,
polyester or rayon don't have the
needed properties to carry the
electrical current needed for digital
clothing. However, metallic yarns
aren't new to the clothing industry.
Silk organza is ideal for computerized
clothing because it is made with two
fibers that make it conducive to
electricity.
Photo courtesy MIT Media Lab
Time-to-market: 8-12 months

27. cool ideas
invisible speakers
To hear the audio, just press fingertips to
forehead and you can hear the sound
without the use of ears. The glove is
outfitted with quot;bone transducersquot; which
translate sound into vibration patterns
which resonate through bone. No sound
at all is heard by anyone but the
participant at any time. Use it to listen to
music or answer phone calls.
Time-to-market: 12-18 months

28. cool ideas
self-ironing dress
Need to find an iron before
your big cocktail party? Here
is a dress that is woven with
titanium that react to rise in
temperature and literally
press itself. It will hold its
form when bunched up, and
flatten out when hit with a
blast of hot air. Just expose
the dress to a hair dryer or a
warm breeze, and the
ironing will be done.
Time-to-market: 18-24 months

29. cool ideas
smart crystals
Swarovski SMS chandelier - this high-
tech chandelier that accepts SMS
messages from your cell phone and
displays them on quot;crystal strands like a
luxurious ticker tapequot;. Nadja Swarovski
compares the collaboration on this
project to the relationships her
grandfather once had with fashion
designers like Christian Dior and Coco
Chanel.
Time-to-market: Don’t know

30. cool ideas
biometric handbag
Design graduate Louise Wilson, frustrated having
her own handbag pick pocketed, used biometrics
technology to give handbags the type of security
you would expect to surround the Crown Jewels.
This anti-theft handbag works through a
rechargeable battery-powered biometric reader
device, which stores fingerprint details of the
quot;registered owner.“ The device, which fits inside
the lining of a handbag, won't unlock the bag until
a fingerprint that it recognizes is touched over a
scanner. Once a match has been made, a sensor
flashes and bag opens.
Time-to-market: 6-9 months

31. cool facts
smart fashion
According to the Gartner Group, 60 % of the
population in developed countries are likely to own a
communicating garment by 2010, so don't be too
surprised if in a matter of years, the mobile phone
logo craze is dead as a dodo while everyone will be
downloading the latest graphics for their always-
What are you
online jacket.
downloading to
your jacket today?

32. new functionalities
fashion as ......
• … as a user interface
• … as sensors
• … as products
• ... as filters
• ….as personal assistant
• …as memory storage device
that extend into…….

33. social awareness in
wearable computing
Improve social interaction via real-time feedback (today)
“Stop hitting on her!”
Propagate social context for a distance-separated group (not-too-distant
future)
“Its Friday night, lets see which one of my friends on my network”
Mathematically model human behavior (distant future)
Issac Asimov’s vision of Psychohistory. Made possible with pervasive, enabling
hardware capabilities and machine-learning algorithms

34. vision for the future
• Socially perceptive wearable devices as fashion accessories
• Mass adoption of smart clothing that understand the users group
context and are capable of giving feedback or annotation
• Towards socially intelligent wearable networks in many different forms
• Extending social intelligence by adding a dimension of social network
information – ‘plugging in’ people into relevant events (sports etc.)
• Extensive work to be done on applying mathematical modeling and
machine-learning techniques and making them accurate and robust
• Consideration of relevant issues like privacy, trust and sharing of
contextual information, is your jacket getting too ‘smart’?

35. so much for the future…..
back to the fashion and
luxury good industry today

36. value drivers of the fashion and
luxury goods industry today
• Portfolio management – strategic focus
• Emerging markets – land grabs
• Channel optimization – retail transformation
• Dealing with counterfeit – technological solution
• Push advanced functionality – technological innovation
• Technology-enabled creativity – design innovation

37. value drivers of the fashion and
luxury goods industry today
Portfolio Management
• Portfolio management – strategic focus
LVMH Brands EBIT (2004)
vs. diversification
Euro (m) Sales EBIT EBIT margin
• Star performers usually contribute
average 42% of total profits
LV 3056 1301 45%
• It is rare for any holding company to have
Fendi 211 -30 -14%
more than one star
Donna Karan 265 0 0%
• Gucci Group (PPR) 8 out of the 10
Other 830 -32 -4%
brands were losing money in 2004

38. value drivers of the fashion and
luxury goods industry today
Emerging Markets
• A study by Merrill Lynch has shown that China and Japan will
dominate more than half of the luxury fashion market in 10
years' time. Thereby the two Far East superpowers will
surpass Europe and the US.
• Merrill Lynch revealed that China currently has an 11% stake
in the EUR82 billion luxury fashion market. By the time 2014
rolls around this market will have grown to EUR133 billion,
and China will have a 30% stake in it. This will leave Japan in
second place with 21%, with Europe and the US following in
third and fourth place with 20% and 17%.

39. value drivers of the fashion and
luxury goods industry today
Channel Optimization
Sales per SQM 2003/2004
60000
50000
• Channel optimization – retail transformation
40000
• Transform a franchise to retail makes
30000
economic sense since it allows capturing
20000
additional gross profit
10000
• Technology allows the creation of virtual
Euro LV Hermes Dior Gucci Others
customer experience and new channel

40. value drivers of the fashion and
luxury goods industry today
• Channel optimization
Business Solution
will come from
• Dealing with counterfeit
Creativity,
• Push advanced functionality Technological
Innovation
• Technology-enabled creativity

41. takeaways
Technology will eventually transform the
fashion and luxury goods industry – it will solve
many of today’s industry's challenges including
channel economics, counterfeit while advanced
functionalities will drive ‘growth’ and create new
product categories.

42. takeaways
The role of wearable technology - how it can be
deployed to create market ready products. There
is an awareness that our understanding of
interaction models is lacking when it comes to
'wearable. How a 'wearer' uses fashion and how
the surrounding environment and infrastructure
can be harnessed is a subject that needs to be
explored.
That’s Customer Experience Innovation!

43. takeaways
Broader issues – what is needed to explore in
relation to wearable technology including but not
restricted to: aesthetics and design, function,
creativity versus market forces; the desires, needs
and realities of wearable technologies; technology
and culture; simplicity and sustainability; design for
wearability; wearable as ‘theatre’ and wearable as
emotional ‘tools’.
That’s Customer Experience Innovation!

44. takeaways
What is going to change – future fashion will be
defined more by function not only how they look
and the way how fashion is “experienced” will
gradually change. Certain pieces of the garment
will support the “server” of the clothes and the
Internet will play a key channel for sales. Apparel
manufacturing will become modular much the PC
business. The designers can still design clothes
without understanding the technology.
That’s Customer Experience Innovation!

45. Danke
Gracias
Merci Idris Mootee
Thank you
Grazie
Arigatou-Gozaimasita
www.blastradius.com
www.highintensitymarketing.com