Holistic marketing in the fashion industry of Ukraine

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Department of Trade Entrepreneurship and Logistics of Kyiv National University of Trade and Economics

Holistic marketing in the fashion industry of Ukraine

Ilchenko Nataliia, DSc (Economics), Associate Professor

Voynilovych Vita, PhD Student (Economics)

The problems of the fashion industry development in the context of the recognition of the pandemic throughout the world are identified. An empirical study of the implementation of holistic marketing by national and international retail chains of the fashion industry in Ukraine, associated with medium-sized businesses, has been carried out. It has been proven that for Ukrainian consumers the most important characteristic of social responsibility in a trading company is the quality of goods and the level of service that create a business reputation. The results of the study of the impact of quarantine on the development of retail chains in the Ukrainian fashion industry are presented.

Keywords: holistic marketing, relationship marketing, integrated marketing, internal marketing, retail network, social and ethical marketing, fashion industry, corporate social responsibility.

Ільченко Н., Войнілович В.

Холістичний маркетинг у фешн-індустрії України

Постановка проблеми. Розвиток теорії та практики маркетингу в умовах економічної глобалізації потребує перегляду традиційних поглядів на перспективні орієнтири теорії маркетингу, зокрема, концепції цілісного маркетингу. Пандемія коронавірусу внесла корективи в розвиток індустрії моди. Зараз модна індустрія переживає найбільшу кризу в своїй історії. Закриття фізичної роздрібної торгівлі, зменшення довіри споживачів та інвесторів безповоротно змінить бізнес-карту моди, прискоривши занепад невеликих компаній та підтримавши великі імперії.

Мета статті - розробка пропозицій щодо розвитку торгових мереж індустрії моди в Україні в умовах пандемії та після карантину. Як частина прикладного напряму - аналіз інструментів та методів холістичного маркетингу, які використовуються роздрібною мережею індустрії моди в Україні в контексті оголошеної пандемії.

Матеріали та методи. У процесі дослідження використано методи порівняння, аналітичний, економіко-статистичний.

Результати дослідження. Визначено теоретичні підходи до концепції холістичного маркетингу та її основні складові. Доведено, що однією з галузей, яка постраждала в умовах визнання пандемії у всьому світі, є індустрія моди. Проведено емпіричне дослідження впровадження холістичного маркетингу національними і міжнародними роздрібними мережами індустрії моди в Україні. Встановлено, що менеджери роздрібних мереж в індустрії моди не обізнані з концепцією цілісного маркетингу. Однак за результатами досліджень роздрібних мереж цієї галузі визначено, що торговельні мережі використовують такі основні компоненти цілісного маркетингу, як концепції: маркетингу взаємовідносин, внутрішнього та інтегрованого маркетингу. Доведено, що для українських споживачів найбільш важливою характеристикою соціальної відповідальності в торговій компанії є якість товарів та рівень обслуговування, які створюють ділову репутацію. Висвітлено результати дослідження впливу карантину на розвиток роздрібних мереж в українській індустрії моди.

Висновки. Вперше сформульовано, що в Україні концепція холістичного маркетингу реалізується по-різному національними та міжнародними мережами фешн-індустрії. Впровадження концепції холістичного маркетингу більш притаманне для міжнародних торговельних мереж, які мають значні переваги у цій справі. Всі компоненти холістичного маркетингу спрямовані на збільшення товарообороту, коли усі функціональні відділи працюють разом для оптимізації бізнес-процесів компанії. Визначено, що український модний бізнес та дизайнери активно впроваджують елементи соціально-етичного маркетингу у свою діяльність.

Ключові слова: холістичний маркетинг, маркетинг взаємовідносин, інтегрований маркеринг, внутрішній маркетинг, соціально-етичний маркетинг, фешн-інду- стрія, роздрібна мережа, корпоративна соціальна відповідальність.

Ильченко Н., Войнилович В.

Холистический маркетинг в фэшн-индустрии Украины

Ключевые слова: холистический маркетинг, маркетинг взаимоотношений, интегрированный маркетинг, внутренний маркетинг, социально-этический маркетинг, фэшн-индустрия, розничная сеть, корпоративная социальная ответственность.

Background

The complexity and multidimensionality of effective enterprise management in modern market conditions encourages enterprises to use new methods and concepts, including marketing ones. The development of marketing theory and practice in the context of the economic globalization requires a revision of traditional views on promising guidelines for the development of marketing theory, in particular, the concept of holistic marketing. The coronavirus pandemic has made adjustments to the development of the fashion industry. The fashion industry is currently experiencing the biggest crisis in its history. Closing physical retail, dropping consumer and investor confidence will change the fashion business map, accelerating the decline of struggling companies and supporting great empires.

Analysis of recent researches and publications. Kotler and Keller have introduced the "marketing holistic" concept as the new era of marketing, leaving the "old" marketing concept behind [1]. The implementation phase consists of data collection, processing of collected data, data analysis, interpretation of survey results and the final report with the presentation.

E. Laburtseva defines that "the concept of holistic marketing has one significant drawback: it is difficult to find a place for the strategic aspects of marketing activities, in particular, the analysis of the competitive environment in order to identify the driving forces for the development of the industry, key success factors and developing strategies aimed at ensuring competitive advantages [2].

Y. Robul notices that the holistic concept of efficiency should take into account the effectiveness of the marketing functioning, the introduction and relativity of the marketing orientation between different economic systems and the social effect [3].

Creating favorable conditions for revitalizing the fashion industry market leads to the use of new marketing concepts that are able to offer innovative applied marketing tools; then, to direct research and applied recommendations to the service orientation of the enterprises marketing activities in this industry; and finally, to ensure the application of an integrated approach in solving marketing problems [4-6]. Holistic marketing meets the criteria almost completely. The problem discussion, the insufficient development of methodological approaches and the particular importance of solving the practical problems according to holistic marketing at fashion industry enterprises determine the degree of unsolved problems and the relevance of the research topic [7-11]. But the peculiarities of introducing the holistic marketing concept at the fashion industry enterprises in Ukraine were not considered by Ukrainian scientists, which confirms the research relevance.

The aim of the paper is to analyze the tools and methods of holistic marketing used by the fashion industry retail network in Ukraine in the context of the pandemic and to develop proposals for the development of retail chains in the Ukrainian fashion industry during pandemic and after quarantine.

Materials and methods

The implementation phase consists of data collection, processing of collected data, data analysis, interpretation of survey results and the final report with the presentation. The method of comparative analysis and empirical research have been used in the research.

Results. Kotler and Keller have determined the marketing holistic concept as a marketing management approach based on a synthesis of four marketing concepts: Integrated marketing - the development of marketing activities aimed at creating value for consumers, distribution, promotion of goods (such as mass marketing, personal marketing and direct marketing).

Internal marketing - the management concept aimed at various target groups of employees to identify their needs, demands and the satisfaction degree of working conditions and further career growth, ensuring the adoption of appropriate marketing principles by all employees of the enterprise. There are formation provisions that allow employees to learn the main values of the enterprise, improving relations within the team, increasing the self-identification degree of the employees as members of the organization;

Relationship marketing - a concept aimed at developing long-term trusting relationships with consumers. Management is on the database formation of customer profiles, the consumer preferences and the contact's history with the company, dividing customers into groups according to the key criteria of satisfaction needs. Relationship marketing is sometimes referred to as customer relationship management, customer relationship marketing, partnership marketing or relationship marketing;

Socially responsible (socially-ethical marketing) marketing - a concept based on the provision that the enterprise activities should be accompanied by the simultaneous preservation and strengthening of the consumer and society well-being as a whole. It is based on a new philosophy of entrepreneurship, focused on ensuring the present and future health needs of the whole society and the dignified life by maintaining and improving the environment [1].

Holistic marketing is a marketing concept aimed at creating a holistic marketing mechanism, where components designed to meet the consumer needs, establish and maintain long-term partnership and beneficial relations between economic actors of the market and help to ensure the present and future health needs of the whole society and the worthy life at the expense of environment maintaining and improving.

The introduction features of the holistic marketing concept at the fashion industry enterprises have been researched in the article. The fashion industry is a huge, global business, quite diversified and tweaked, where modern technology, aesthetics and functionality are intertwined. In the fashion industry business, success is impossible without designers, materials, scientists, experts in the field of chain supply, specialists of strategy development, etc. The fashion industry is associated with all aspects of design, production, marketing and distribution, from creating the concept of the future product to the release of the final product, brand development and promotion.

Due to the fact of avoiding public places by consumers in the future, the fashion industry enterprises will switch to online sales, and luxury brands will be no exception. Even in the most positive scenario, from the point of "human factor" view, instant recovery of the industry should not be expected. The development history of the fashion industry market will be divided into before and after the epidemic. Global interdependence has become quite obvious, and it is logical to expect changes in the system of values and priorities.

It will be facilitated by the introduction of holistic marketing concepts. We selected medium-sized enterprises as the subject of empirical research because the introduction of holistic marketing requires significant financial investments for retailers. The survey has involved 9 national and international retail networks of the fashion industry located in Kyiv. The researchers have been conducted in October-November 2019. According to the research, only 85 % of respondents know what the concept of holistic marketing means and what basic principles of holistic marketing exist (figure 1)

Source: compiled by the authors.

holistic marketing fashion pandemic

According to the research results, the retail network of the fashion industry uses the main components of holistic marketing in the activities. So, all retail network has relationships with consumers and partners on the basis of the holistic marketing concept. There have been established relationships with the most significant target groups, evaluated the effectiveness and efficiency of relationships, made up the relationship system as an "added value". There are 100 % of the respondents' answers.

The following factors influence the development of relationship marketing: the creation and use of databases; interactive (indirect) dialogue with customers: e-mail newsletter, chat, mailing directories; personalization: the ability to create various forms of proposals and the personalization.

The sales level in the store can be increased with the help of loyalty programs: promotions, seasonal discounts, sales, as well as the introduction of discount cards or points system, which can be used later to pay for purchases. But the special attention should be paid to the correct selection of personnel, their placement and training. Qualified staff is one of the most effective channels for increasing sales because in most cases, the client makes a decision about the purchase after talking with the sales manager.

The answers were positive by 100 % on the question about the company introducing the concept of internal marketing. The staff need motivation to stimulate sales, which can be, both in monetary terms and in the format of winning. The retailers' fashion industry often organizes contests between their own retail stores to increase revenue across the entire network immediately. These measures can increase the revenue at minimal cost to retailers significantly, as only one or three winning stores will be awarded. The answers were positive by 100 % on the question about the implementation of the concept of integrated marketing by the company. This style of marketing is becoming more and more important because media fragmentation and exposure have begun to desensitize consumers. For instance, centres around a strong, focused brand image maintain a consistent vision and existence across all media, use traditional and digital media to promote the brand.

The researches have been conducted in April-May 2020. The survey has involved 9 national and international retail networks of the fashion industry located in Kyiv. The study is based on questions developed by the consulting company Colliers International for Ukrainian retail [12]. Most of the retail networks in the fashion industry were closed during the quarantine period, especially those located in a shopping mall.

The retailers were forced to apply anti-crisis measures to reduce the level of losses. Most employees received unpaid leave or were laid off, the marketing budget was reduced during this period (figure 2).

According to the research, the respondents have answered that most enterprises worked without supply interruptions, some enterprises did not have a supply of products. The enterprises were forced to change communication channels and only 40% of the retail networks in the fashion industry have passed to e-commerce. Online sales have been doubled for most retail networks of the fashion industry have been doubled during the quarantine period (figure 3).

Figure 2. The structure of respondents' responses about anti-crisis measures taken by the company, %

Source: compiled by the authors based on [12].

The research has shown that most retail networks of the fashion industry will continue to grow online after the pandemic. Other enterprises will reduce the number of locations (figure 4).

Figure 3. The structure of respondents' responses about online sales increasing during the quarantine period, %

Source: researched by the authors based on [12].