Kelley index tracks fashion trends

In the business world, the art of fashion is not relegated to fabric.

The Center for Education and Research in Retailing at the Kelley School of Business partnered with consulting firm Kalypso and website CollegeFashionista to develop a new marketing tool designed to gauge emerging fashion trends among the college consumer base.

The Fashion Innovation Index, or FINdex, analyzes information collected from the student population and identifies the most popular trends in apparel.

The study has obtained data from CollegeFashionista, which features blog posts from hundreds of student contributors that document the latest trends on college campuses.

“I think there’s a notion that college campuses are a fertile ground for new ideas and innovation,” said John Talbott, associate director of the Center for Education and Research in Retailing.

“We wanted to see if we could see what they thought and see if they lead the general population in terms of perception of trends.”

The partnership will run the index four times per year to coincide with fiscal quarters.

According to a press release from the IU newsroom, a representative sample of CollegeFashionista’s 600 “style gurus” will provide survey data each quarter based on trends they see on their campuses.

“Our style gurus capture and report on trends at their universities,” Amy Levin, CEO and founder of CollegeFashionista, said in the release.

“Many of them are studying product development or design at their schools, so they are uniquely positioned to report on fashion innovation that appeals to the college-age population. In the aggregate, I think we can really put our finger on the pulse of college fashion.”

The results will be released shortly before businesses disclose their quarterly earnings.

Consumer spending is by far the largest portion of the U.S. gross domestic product, said Steve Riordan, partner at Kalypso. 

“As goes the consumer, so goes the economy,” Riordan said.

According to a 2013 Gallup poll, the recession of the U.S. economy in 2008 cut American consumer spending by more than 50 percent.

Because the last five years saw slow growth in consumer spending, retailers are searching for innovative means of motivating customers to purchase merchandise, Riordan said. 

“Innovation is a competitive must for retail,” Riordan said.

Retailers are already adopting new marketing strategies through the use of social media.

Software such as Instagram is emerging as a popular tool among marketing strategists because of its photo quality and widespread use within the college consumer base.

Should the FINdex prove effective, retailers will have the ability to pair the two instruments to gauge the wants of the consumer.

“I think what we’re always trying to do is not necessarily revolutionary but evolutionary,” said Theresa Williams, director of the Center for Education and Research in Retailing.

“The more we can provide insight to our partners and to our students studying business, I think the more that they’ll be able to provide better solutions for customers.”

According to a press release, the index will also track relative perception of key brands over time and identify emerging brands that are attracting the attention of fashionistas.

During the next several years, creators of the FINdex will track the results of the instrument to analyze whether a correlation exists between retail profit margins and consumer opinion.

Although the FINdex is currently used to track trends in fashion, the creators said they see fashion as more than apparel.

“I use the term fashion to reflect innovation,” Williams said. “To me, the word fashion describes that motivation to purchase because it embodies innovation. It’s not just about apparel. It’s not just about ‘Project Runway.’ It’s a concept that applies to every product category.”

Follow reporter Carmen Heredia on Twitter @caheredia21.