Answer Cuc Vjppro

ENM301 – UNIT 1 – READING
READING 1
Technological revolution in the luxury industry
A. The internet changed the buying habits of the rich. A clear sign of the changes to the
luxury industry in the digital age came from the tie-up between the two online fashion
retailers Net-a-Porter and Italy’s Yoox.
This major deal made Federico Marchetti, the entrepreneur who founded Yoox, Chief
Executive of an online business with annual sales of €1.3 billion and 2 million customers.
The tie-up showed how the luxury industry would change in the future. Traditionally, luxury
companies had avoided the internet because they thought the web’s democratisation of
shopping undermined their exclusive, upmarket values.
B. But luxury brands underestimated several factors, 1 ____________E______________:

how the internet changed the habits of the rich; the rise of the Chinese as significant online
shoppers; the increasing digital know-how of the general public, who use social media to
compare prices; falling advertising revenue at fashion magazines;
2________B_____________ the fact that, through smart devices, the internet can be present
everywhere. All indicated that the industry needed to change rapidly.
Luca Solca, Managing Director and Head of Luxury Goods Research at Exane BNP Paribas,
an investment company, says that by 2020 online sales combined with digitally driven in-
store sales – when customers have used the internet for research before they visit a store –
will represent 50 percent of sales. Mr Solca says that if luxury brands want to survive and be
successful, they need to keep up to date with changing digital technologies and practices.
Not all people agree about how to adapt to the constantly changing consumer environment.
Groups such as Prada and Louis Vuitton, 3____F_________________ , have tried to
preserve brand value by opening contemporary art museums in cultural centres such as
Milan, Paris and Venice. Prada has also sponsored women directors at the Venice Film
Festival.
C. It is in the matter of pricing that the dramatic effect of social media and the internet is
most noticeable. The internet has made it totally clear to consumers that the same handbag is
on sale in Beijing for a higher price than in Paris. Through social media, people can expose
pricing policies in a click.
Erwan Rambourg, Luxury Analyst at HSBC, says: ‘Blogs, forums, word of mouth and travel
are spreading knowledge of brands and what consumers should pay for them. This will
probably force Brand Managers to stop thinking that they can charge Asian consumers more.’
‘4______________C_______________, Chinese consumers already know that they pay
more and feel that Western companies are not fair to them,’ says a Business Consultant based
in Shanghai. The price gap has also caused a special kind of trade in luxury goods in China –
the daigou industry – where the Chinese buy luxury goods outside China to resell at home,
often on the internet.
D. Currency fluctuations, the challenge of the internet and of attracting tourist shoppers
highlight the need for companies to rethink some of the main elements of their strategies. For
example, some luxury companies which have spent millions of euros on opening new outlets
in Asia in recent years are asking themselves whether they now need to reduce their physical
networks and focus more on the internet.
I. Read the article and number these topics in the order they are mentioned.
a. the start of an alternative form of trade in luxury goods in China
b. a forecast of the growth of online sales
c. the influence of social media on price awareness
d. how some companies have tried to adapt to the changes
e. a list of the changes that have affected the luxury business
f. two online fashion retailers striking a major deal
II. Decide if these statements are true (T) or false (F). Correct the false statements.
1. Net-a-Porter and Yoox’s combined annual sales will reach €13 million. T
2. The luxury industry had not predicted that so many people would be expert at using social
media to check prices around the world. F -> bỏ not
3. People have different views about how the luxury industry should adapt to the changes
caused by the digital age. T
4. Some luxury brands sponsor artists and museums. F artists -> directors
5. Chinese consumers are aware that Western companies’ special pricing policy is good for
them. F
6. Some luxury companies are thinking of opening more new stores in Asia. F
READING 2
Read the article and choose the correct answer a, b or c.
H&M launches new brand in effort to lift slow sales growth.

Hennes & Mauritz is launching its eighth brand and investing heavily to get its clothes faster
into shops as the Swedish fashion retailer responds to slow sales.
Arket will be launched this autumn, starting with a shop in London, and will offer more
expensive clothes than H&M for men, women and children as well as in-store cafes based on
the new Nordic cuisine.
The new brand will offer ‘quality in simple, timeless and functional designs’ as well as
homeware but will also sell clothes from other brands.
‘The aim with it is to grow globally,’ said Karl-Johan- Persson, chief executive, despite the
initial store launches being in European cities such as Copenhagen, Brussels and Munich.
H&M has been squeezed by ultra-cheap retailers such as Primark as well as online fashion
sites such as Zalando. It was overtaken several years ago by Inditex – the Spanish owner of
Zara – as the world’s biggest clothing retailer.
The Swedish group has responded by launching a range of new brands, including more
upmarket stores such as Cos and & Other Stories, as well as making a big push into online
sales.
Mr Persson confirmed that the retailer was working on the launch of its ninth brand –
probably next year – as well as standalone versions of its H&M Home stores next year. H&M
has other, more youth-orientated brands such as Monki, Cheap Monday and Weekday.
The new launch comes against a backdrop of weaker sales growth than expected. H&M
blamed tough market conditions in the USA and Central and Eastern Europe for the poor
sales growth, which seem set to continue.
Investors took fright at a sharp rise in stock levels but Mr Persson tried to reassure them that
‘the composition [of the stock] is good’ with a ‘clear majority’ in classic styles. H&M’s
shares were down 5.1 per cent to SKr225 in afternoon trading on Thursday at their lowest
level in almost four years.
Mr Persson said that H&M also needed to improve its supply chain, becoming faster to
market with its clothes. ‘The world has changed a lot with people buying digitally. At the
same time the H&M group has become more complex with different markets, different needs,
online sales. We see a great opportunity and necessity to improve the supply chain to become
more speedy.’
1. H&M is launching its eighth brand because

a. it is worried about a slow-down in sales.
b. it has invested in more shops.
c. Swedish customers want new styles faster.
2. The new brand, Arket,

a. offers a cheaper range of clothing.
b. will first appear in a London shop.
c. was inspired by Nordic food.
3. Mr Persson hopes that the new brand will

a. help the company develop internationally.
b. be launched in every major European city.
c. offer designer clothes to other companies.
4. H&M’s has previously reacted to its main rivals by

a. producing an ultra-cheap brand.
b. opening shops selling an upmarket brand.
c. restricting online sales.
5. Next year, Mr Persson plans to

a. launch the first brand aimed at the youth market.
b. sell homeware in most of its stores.
c. produce another new brand.
6. H&M said poor sales

a. were caused by difficult conditions worldwide.
b. were largely the result of problems in the USA.
c. will delay the new launch.
7. Investors were worried about

a. the high levels of stock the company has.
b. some investors wanting to sell their shares.
c. the company selling classic styles.
SUGGESTED INFORMATION FOR DISCUSSION QUESTIONS:

https://justcreative.com/what-makes-a-strong-brand/?
fbclid=IwAR0nEkpaEXGUWamF8mTPtDztc-
yKcYbAvjnbqQCBxZLgqDX11l_KDX1AzoA
ENM301 – UNIT 1 – LISTENING
LISTENING 1
1 Which product had the biggest sales last year?
a b c
2 What is Julia going to do tomorrow?
a b c
3 Which date is the sales conference?

a 20 April b 10 May c 20 May
4 What do the speakers decide to do?

a expand the product range
b bring the products up-to-date
c design a new logo
5 Where has the market grown dramatically?

a Europe
b China
c North America
6 Who are the company’s target customers?

a wealthy millennials
b professional women
c retired people
7 What is the company planning to invest in next year?

a staff
b new headquarters
c a factory
8 Which graph describes last year’s sales?

Sales in $ millions
4
3
2
1
0
Jan-Mar Apr-June July-Sept Oct-Dec
a
Sales in $ millions
4
3
2
1
0
b
Sales in $ millions
3.5
3
2.5
2
1.5
1
0.5
0
c
LISTENING 2
ANSWER:
1.1 F
1.2 F
1.3 T
1.4 T
1.5 F
1.6 T
1.7 T
1.8 F
2.1 B
2.2 A
2.3 B
2.4 C
2.5 D
2.6 D
2.7 C
3.C

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ENM301 – UNIT 1 – READING

B. But luxury brands underestimated several factors, 1 ____________E______________:

Read the article and choose the correct answer a, b or c.

H&M launches new brand in effort to lift slow sales growth.

1. H&M is launching its eighth brand because

2. The new brand, Arket,

3. Mr Persson hopes that the new brand will

4. H&M’s has previously reacted to its main rivals by

5. Next year, Mr Persson plans to

6. H&M said poor sales

7. Investors were worried about

SUGGESTED INFORMATION FOR DISCUSSION QUESTIONS:

2 What is Julia going to do tomorrow?

3 Which date is the sales conference?

4 What do the speakers decide to do?

5 Where has the market grown dramatically?

6 Who are the company’s target customers?

7 What is the company planning to invest in next year?

8 Which graph describes last year’s sales?

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B. But luxury brands underestimated several factors, 1 E__: