La Transparence
A model to fight luxury counterfeiting
Upon conducting Futures Thinking analysis and research, I developed a design strategy, La Transparence, that focuses on environmental, supply chain, and financial transparency. Despite Chanel’s traditional brand DNA and lack of sustainability initiatives, my goal was to create a paradigm-shifting framework that will resonate with a client base that is part of a more conscious, radical generation in the future.
Skills: Futures Thinking, Design Strategy, Open Innovation, UX/UI, Mobile App Prototyping
THE CHALLENGE
The United Nations Office on Drugs and Crime deems selling counterfeits as illegal trafficking that can possibly be tied to organized crime, labor exploitation, risks in public health and safety, and the original company’s intellectual property.
Acting as consultant for Chanel, find an innovative, futuristic solution combatting the $1.2 trillion counterfeit industry that the company can implement in 5-10 years. Keep in mind the brand’s DNA.
APPROACH & PROCESS
In order to develop an innovation made for 5-10 years into the future, I used multiple futures thinking research methods including weak signals, scenario planning, and backcasting. The main weak signal I detected was the consumer demand for transparency within supply chain, financial business model, and environmental impact.
I dug into researching the pros and cons of transparency and the concept as a whole. Similar to counterfeiting, fashion companies often intentionally hide their clandestine activities within their supply chain (sometimes they don’t even know due to third-party factory contracting). Businesses are money-hungry and willing to risk anything to take home a larger profit slice, even if that costs the well-being of their workers and the environment. Additionally, luxury companies in particular prefer to remain private in order to build an exclusive brand image, leaving customers wanting more.
Interested? Learn more about my research process.
INSIGHTS
We now see a major shift in the consumer culture. Many current events in this generation have led to the mistrust by the people. Fake political news, tragic events like the Rana Plaza fire, or exposed factories in developing countries have led shoppers to seek trust above any other value proposition. Gen Z and millennials are flocking to DTC brands like AllBirds and Everlane, the first company to use a transparent pricing model. These crowds are also paying attention to industry conglomerates taking action such as Kering and Ralph Lauren for implementing transparent supply chain communication strategies for their conscious consumers.
Introducing La Transparence
Millennial and Gen Z spending will account for 45% of the global luxury goods market by 2025. What I focused on was what will society push for in the next 5-10 years and how will brands maintain loyalty. That lies within transparency.
I developed a design strategy called La Transparence that Chanel can implement in order to become a more transparent brand.
This is a flywheel model leveraging transparency as an opportunity for potential growth. Notorious for its privacy and exclusive image, I challenged myself and Chanel’s future to build a new reputation for its next generation of consumers.
What are the benefits?
How would we get this done?
It all starts with open data. By opening data, this will unveil innovative products and services for consumers to witness Chanel’s transparency.
CHANEL ENVIRONMENTAL PROFIT & LOSS ACOUNT
Inspired by Kering’s sustainability initiatives and originally created by Jochen Zeitz, The EP & L essentially measures the data collected and translates it into a monetary value to measure and quantify a company’s environmental footprint.
Utilizing the same software system, Chanel would collaborate with OpenDataSoft to visualize, analyze, and share existing data. This platform would be integrated into their existing website to increase accessibility and usability.
THE CHANEL ID
A coded label sewn on every Chanel product authenticated once scanned by the La Transparence App. This label and the high-level transparency features of the app ensures that you have an authentically crafted Chanel in your hands.
LA TRANSPARENCE (EP & L) APP
Scan a product with the La Transparence App to see its “true cost” and learn what exactly you’re paying for.
SCAN CHANEL ID
DISCOVER THE PEOPLE BEHIND THE BAG
WITNESS REAL-TIME SUPPLY CHAIN PROCESSES
TRACK ITS ENVIRONMENTAL FOOTPRINT
VIEW THE TRUE COST BREAK-DOWN
Chanel can utilize communications & marketing to show they are willing to be transparent and open while counterfeits are not. Thus, building trust with the consumer. That’s where counterfeiting comes in.
MARKETING & COMMUNICATIONS
A concept and pricing structure created by a brand named Everlane, Chanel would reveal a price breakdown that shows how much the retail price is going towards materials, hardware, labor, duties, and transportation. The “true cost” of how much the production value would be revealed and what you are paying for as Chanel’s retail price.
The more transparent a brand is, the more trust and loyalty clients will have with Chanel. In comparison, counterfeiting has no transparency whatsoever. The customer has no idea where it comes from and where the money goes. It is a cheap price for cheap quality and values. What many don’t know is that counterfeiting can be tied back to organized crime, drug trafficking, and many other illegal acts. The goal is to educate the public, especially their clients, on this phenomenon.
WEBSITE FEATURES
Demonstrating Chanel’s sustainability initiatives that support the Paris G-7 Sustainability Pact and how to combat counterfeiting through La Transparence.