Managing Creativity at Shanghai Tang
One of the primary roles of management is to make sure that the company is making profits by generating revenues on a constant basis. To generate revenue, and direct traffic, companies are sometimes required to innovate. New products are always going to stimulate the market due to the curiosity of shoppers. Le Manse understood the importance of innovating to increase the demand for Shanghai Tang products (Chua & Eccles, 2009). Innovation requires conducting thorough research to understand the current state of a product versus the market expectation and direction of competitors. Managers can use the data collected as a starting point in the journey towards innovation. Well-researched products are going to meet the demand of most of the market, and hence it will be readily marketable.
In the case of Shanghai Tang, the assortment pyramid is represented by the changing products when Le Manse took over. The pyramid involves looking at certain foundation items to determine their influences on current trends and expectations. The new creative director was interested in creating a brand that was distinctively Chinese, and that was achieved by going back into history to pick a particular item. The Fall/Winter collection of 2003 was made up of elements that were derived from a period in the Chinese history to enhance authenticity (Chua, & Eccles, 2009). It shows the brand has been built on a sure foundation into the current trending product while maintaining individual influences. The reason why products were not selling in New York was due to the old and costume feel of the fashion. People wanted trendy items that could be matched with jeans.
Product development leads to the generation of new items for the market. Development involved a cyclic process where the creative director distributed themes to all the designers. The knitwear, print designer, accessories designer and women’s wear designer had to come up with seasonal designs that reflected these themes from the creative director. Themes are meant to coincide with the season such Fall or Summer collections (Chua, & Eccles, 2009).
Every function should understand the position of the firm versus the competition. It is vital for companies to monitor the activities of the competition and understand the steps they are making to survive in the market (Hisrich & Kearney, 2013). One of the main reasons for learning the methods of competitors is to identify areas of weakness that could be exploited to gain a greater share of the market.
The DNA of a brand consists of a combination of elements like the origin of the brand, its long-term objective and the mechanisms that keep it together (Hisrich, & Kearney, 2013). DNA enhances unity and clarity of purpose within an organisation. Shanghai Tang designs are based on their bright and vibrant colours and Chinese inspirations. These are the characteristics that identify a product for this company and hence it is the brand’s DNA. The designers are free to exercise their ideas, but the final product must adhere to the strict guidelines of having a Chinese cultural heritage as well as bright colours. The objective of Shanghai Tang is to enhance the Chinese culture through modern and fashionable clothing.
An orchestra consists of some people using different instruments to compose music in unison. In Shanghai Tang, each designer had a part to play in accomplishing the final objectives of the company. The creative director was responsible for coordinating the design team, and when she announced her resignation, it left a gap that Le Masne was pondering whether to fill or not. He was wondering whether the designers still needed to be guided or they were experienced enough to keep coming up with good designs for every season.
The margin was a factor when the company was considering to make designs that ended up being too expensive. The company could not create these products because the margins were very low on the profit side. Shanghai Tang must realise certain pre-determined targets to remain competitive and profitable.
Reference
Chua, R., & Eccles, R. (2009). Managing Creativity at Shanghai Tang. Case Study.
Hisrich, R., & Kearney, C. (2013). Managing innovation and entrepreneurship (1st ed.). SAGE.
