Môn họcchuyển đổi số và trí tuệ nhân tạo

Replace the position of creative director for each of the firm''''s fashion brands with amore collective creative ecosystem.Peck was betting that market intelligence fueled by Big Data coul

ĐẠI HỌC QUỐC GIA THÀNH PHỐ HỒ CHÍ MINH TRƯỜNG ĐẠI HỌC KINH TẾ - LUẬT

KHOA KINH TẾ ĐỐI NGOẠI

-

-MÔN HỌC CHUYỂN ĐỔI SỐ VÀ TRÍ TUỆ NHÂN TẠO

Giảng viên: Nguyễn Thế Đại Nghĩa

Mã lớp học phần: 215MI5202

Ca học: Sáng thứ 3

Nhóm sinh viên thực hiện:

1 Dương Minh Khuê K214021480

2 Đoàn Thu Hoài K214021478

3 Dương Thị Trà Giang K214021476

4 Võ Thị Thương K214020164

5 Nguyễn Phương Anh K214011421

TABLE OF CONTENTS

Trang

Table of contents………2

A Objective………3

B Key issues to tackle……… 4

I List of issues………

4 II Some solutions………

5 C Evaluate options………

6 I Criterion……….6

II Options……… 6

III Evaluation of options………6

D Recommendations………8

I Our recommendations……… 8

II Five Forces……….8

III SWOT Analysis……….9

IV Financial Analysis………11

E Implementation……… 13

I Timeline………13

II Resources estimation……… 14

III Contingencies……… …16

IV Risk mitigation………16

F Conclusion……… ……19

A OBJECTIVE

1 Summarize the objective of your proposal

- Use predictive analysis to sell existing products

- Use predictive analysis to sell new products

- Predicting consumer interests

- Looking forward to the future

2 Replace the position of creative director for each of the firm's fashion brands with amore collective creative ecosystem

Peck was betting that market intelligence fueled by Big Data could outperform acreative director at predicting the future fashion tastes of consumers Could data-miningreplace the artistic vision of a creative director? Was this the right approach to fashiondevelopment for all three of Gap’s brands? Selling Gap’s products on Amazon could open

up a whole new data stream to Peck and his managers, providing insight into theshopping habits of existing customers when they weren’t shopping on the company’s owndigital platforms or in their stores, and providing access to new customers not currentlyattracted by the company’s distribution efforts Should he allow Amazon to sell hisbrands?

3 Address consumers' shift to omnichannel shopping, focusing on dissolving the wallbetween the physical and digital channels

3 Deliver a better customer experience

B KEY ISSUES TO TACKLE

I List of issues

1 Slow growth in core markets

Gap Inc competed in the $3 trillion global apparel industry, which accounted for 2%

of the world’s gross domestic product (GDP) The U.S and Canadian markets accountedfor over $340 billion and were expected to grow annually by 2% through 2025 Thesetwo markets accounted for 84% of Gap’s sales

Millennials were spending less on apparel Speaking to investors at a retailconference, Peck claimed that “there are no compelling [fashion] trends driving thebusiness” and lamented that there had been a change in consumers’ buying habits suchthat there was a lack of need to replenish their closets

4 Rise of Fast Fashion

New competitors, such as H&M and Zara, compressed supply chains, delivering priced looks knocked off from luxury fashion runways within weeks of their unveilings.With an average product cycle time of 10 months, Gap lagged competitors such as Zarawhich could deliver products to stores within four weeks due to their consumer-responsive and decentralized buying process, which allowed individual stores to ordersmall batches of product, wait to see how consumers responded to it, and then airliftadditional products to backfill the store’s inventory within days The speed and pace ofthe fashion cycle was dizzying, with new styles appearing in stores on a weekly basis in aconstantly renewing fashion cycle

low-5 Heavy and frequent discounting

Clothing was increasingly commoditized as consumers viewed the lower-quality fastfashion offerings as disposable, yielding a need for low prices and heavy discounting.Retail analysts were concerned about an overabundance of price promotion at Gap, where40% discounts were common

6 Gap’s size and ubiquity were transforming from asset to liability

Consumers looking to forge a unique identity were moving away from Gap’s classicofferings

II Some Solutions:

1. Replace creative directors with Big Data obtained from Google Analytics, GoogleTrends, social media, the company's own sales and customer databases to inform thenext season's assortment

2. Develop an augmented reality app

- Use data-driven decision making: personalize shopping experiences based onbrowsing and purchase history

- Develop email programs to provide relevant, personalized messages to consumers

3. Messaging based on consumer's searching, or deliver another landing page based onbrowsing history or IP address

4. Understand why consumers were not buying as much from Gap's physical stores

 develop Gap's digital and mobile e-commerce platforms to drive customerengagement

- Using a collaborative model, decentralized, data - driven

- Avoid conflicts in synchronization between employees and leaders

- Control through hard data saves time, bộ and professionalism

- The big problem is whether Big Data can replace the director' s artistic vision

2 Option 2: Big Data and analysis of marketing

- Customer tastes are difficult to predict because consumers are notoriously poor

to predict their future behaviors

- Consumer interests are built rather than revealed, subject to marketermanipulation, unstable over time

- The taste of each person is not the same

-100% (7)

45

[221MI5217] Group 7 CASE GROW

100% (5)

17

222MI5216 Group-3 Final-Project

Chuyền

đổi số 100% (1)

31

Practical 02 Google Teachable Machine

3 Option 3: Product 3.0

Advantages:

- Using Big Data as the original source of innovation for fashion trends, combinethe' clear brand vision with a common model'

- Based on google analytics can be defined soon

- Significantly improved the ability to meet the supply chain and inventorymanagement

Weakness:

-4 Option 4: Change the distribution model

Advantages:

- Access to digital customers

- Amazon can provide a customer access gap even if they don' t shop on thecompany' s platform

- The distribution of products through two alternatives is to use amazon as atransport channel or use amazon as a distributor

Weakness:

- Can' t guarantee the situation around the customer

- The choice between giving up control to use the amazon giant

221MI5207 Group 3 Teachable Machine

Chuyền đổi

số 75% (4)

11

D RECOMMENDATIONS

I Our recommendations

1 Our recommendation solution

Replace creative directors with Big Data obtained from Google Analytics, GoogleTrends, social media, the company's own sales and customer databases to inform the nextseason's assortment

2 Our recommendation solves the issues

Gap' s leadership needs to appreciate that customer' s fashion requirements are built insocial ways by collective behavior and taste in tastes and interests As a result, designers

do not consider the impact of social effects on consumers' tastes that have weakened thegoal of changing gap products in conformity with the changing market demand.Another notable issue involves the need for the company' s essential need for largedata implementation to promote product innovation Market - based market researchstrategies have previously backfired Accordingly, the company can apply new analyticalmethods to assess customer behavior on the garment market The use of large data toassess the trend in garment and customer change is important because it affects thesuccess of gap in its operations Therefore, we believe that peck' s decision to eliminatethe creative director while using large data analysis to promote the development of thecreative costume to match the customer' s interests in different segments is appropriate

II Five Forces

HighLowdifferentiation

products

HighDominatingplayersProducts arereally identical

Strong brand image,

high quality, skin

which is plastic

No substituteZero switchingcost

Readilyavailability ofthe substituteZero switchingcost of thebuyer

Zero switchingcost of thebuyerHighadvertisementandpromotionalactivities

III SWOT Analysis

1 Strength

- Gap is one of the people who make special retail forms, in which a retailer focuses

on a more specific product category rather than carrying many of its own productsand products It is still the biggest example of this category, with 135, 000employees and 3, 659 locations owned by the company and franchise at 50countries, accounting for 36 7 million square feet of goods, creating globalrevenue

- Enjoy a good reputation by advertising through mass media

- Gap Inc management of the brand year: gap, banana republic, old navy, athletaand intermix, and used to be the U.S style of simplicity All these brands arecommon in different demographic segments it' s the way the retail fashion brand

is headed for multi - diversity customer segments

- Enough knowledge and experience to adapt to new fashion trends

- Providing quality products for many different customers, closely observed gaps inmarket trends are changing and customers' demand The retail company providesproducts that match the trend of the needs It gives the company a uniquecompetitive advantage compared to other brands

- Have strong financial figures

- A long - term multi - brand portfolio

2 Weakness

- Putting the burden on these brands over the season to another is an individualbeing inspired

- Clothing and retail accessories are a very competitive industry The gap of the gaphas not made a difference compared to other competitors It reduced the marketshare to a large level

- There is a limited share with high - brand conversion

- Revenue and declining profits are a major weakness that the company can' thandle Still use their assets and not profit on assets and equity

- Gap is lagging compared to the opponent on the effective usage of online sales

- Not to grasp the needs of customers

3 Opportunity

- The core capacity of the organization could be a success in similar product

- The development of the market will reduce the advantage of competitors andfacilitate the Gap Inc., to increase competition compared to other competitors

- New trends in consumers' behavior can open new markets for the gap, inc., whichprovides a great opportunity for organizations to build new revenue lines anddiversify into new product categories

- This investment has opened new sales channels for the gap, inc In the next fewyears, the company can take advantage of this opportunity by understanding itscustomers more and serving their needs using large data analysis

- Expanding international markets focused on Asia

- Use online retail trends and improve their site to introduce products to customers

- New technologies are developed by competitors or market breakers may be aserious threat to the future and long - term industry

- Provide products with high levels of competition

- Risk associated with global supply and production

IV Financial analysis

1 Cost (fixed, variable)

- Fixed: Gap Inc.' s gap in the global garment industry, $ 3 trillion, accounting forgross domestic product (gdp) The U.S and Canada market accounted for morethan $ 340 billion.

- Variable: 2015 and 2016 were disappointing (see evidence of 9, 10, 11, and 12for the recent financial statement of the Gap Inc reduced in eight quarters beforeincreasing 2% in the fourth quarter of 2016, which sales sales of 2% in the year

2 Revenue prediction

- Fiscal 2015 results were impacted by a series of strategic actions to position Gapbrand for improved business performance in the future, including rightsizing theGap brand store fleet primarily in North America, streamlining the brand'sheadquarter workforce, and developing a clear, on-brand product aestheticframework to strengthen the Gap brand to compete more successfully on theglobal stage During fiscal 2015, the Company completed the closure of about 150Gap global specialty stores related to the strategic actions During fiscal 2015, theCompany incurred $132 million of charges in connection with the strategicactions, primarily consisting of impairment of store assets related tounderperforming stores, lease termination fees and lease losses, employee relatedexpenses, and impairment of inventory that did not meet brand standards.Financial results for fiscal 2016 are as follows:

 Net sales for fiscal 2016 decreased 2 percent to $15.5 billioncompared with $15.8 billion for fiscal 2015

 Comparable sales ("Comp Sales") for fiscal 2016 decreased 2percent

 Gross profit for fiscal 2016 was $5.6 billion compared with $5.7billion for fiscal 2015 Gross margin for fiscal 2016 was 36.3 percentcompared with 36.2 percent for fiscal 2015

 Operating margin for fiscal 2016 was 7.7 percent compared with 9.6percent for fiscal 2015 Operating margin is defined as operatingincome as a percentage of net sales

 Net income for fiscal 2016 was $676 million compared with $920million for fiscal 2015, and diluted earnings per share was $1.69 forfiscal 2016 compared with $2.23 for fiscal 2015 Diluted earningsper share for fiscal 2016 included about a $0.41 impact ofrestructuring costs incurred during fiscal 2016, a non-cash goodwillimpairment charge of $0.18 related to Intermix, an $0.11 benefitfrom the gain from insurance proceeds related to the fire whichoccurred at the Company's Fishkill distribution center campus, and a

favorable income tax impact of a legal structure realignment ofabout $0.15 Diluted earnings per share for fiscal 2015 included a

$0.20 impact of costs related to strategic actions incurred duringfiscal 2015

 During fiscal 2016, we distributed $367 million to shareholdersthrough dividends

- Our business priorities in 2017 include: • offering product that is consistentlybrand-appropriate and on-trend with high customer acceptance, with a focus onexpanding our advantage in the most promising categories; • deliveringmeaningful product innovation; • creating a unique and differentiated customerexperience that builds loyalty, with focus on both the physical and digitalexpressions of our brands; and • attracting and retaining great talent in ourbusinesses and functions 20 In fiscal 2017, we are focused on investingstrategically in the business while also maintaining operating expense discipline.One of our primary objectives is to continue transforming our product to marketprocess, with the development of an advantaged operating platform To enablethis, we have several product, supply chain, and IT initiatives underway Further,

we expect to continue our investment in customer experience, both in stores andonline, to drive higher customer engagement and loyalty, resulting in market sharegains Finally, we will continue to invest in strengthening brand awareness andcustomer acquisition Fiscal 2017 will consist of 53 weeks versus 52 weeks infiscal 2016

- So, in order to grow financial resources, management should apply some of thebusiness strategies in certain countries, such as china, where there is a hugepopulation to promote business operations The gap in adaptation to the marketmodel changes it reduces the ability to sell and make revenue decrease, becausethe creative managers in the company have not accounted for the dynamic aspects

of the modern market, which are not developed by the consumer - appropriatebrand

E IMPLEMENTATION

I Timeline