Apple might prepare to step into the fashion industry

It seems to be that Angela Ahrendt, former CEO of Burberry who was recently hired by Apple. Inc as company vice president, was not just taken on to improve operations in retail and online, but also to help point the technology firm

in an entirely new direction.

According to speculation Ahrendt was hired by Apple. Inc to bridge the gap between the company and the fashion and luxury accessories industry. Scott Galloway, marketing expert and 'business intelligence,' believes that it was just a cover story that Apple sent out in its a press release. Last week during the digital think tank conference held in New York City, Galloway shared his opinion, “there’s absolutely no way a woman running the most iconic brand in fashion is going to leave to run Apple’s stores. I just don’t buy it. Last year she made $26 million, and she’s the darling of the fashion world.”

Is Apple. Inc gearing up to launch a new range of products? Galloway sees the possibilities.

Considering the simplistic and minimalist designs that Apple is known for, is does seem plausible to Galloway for the brand to expand into the fashion sector. He sees it all happening over the next few years and imagines the future of fashion with Apple designing bags, jewelry, watches, sunglasses and perhaps even luggage, all bearing the iconic black and white apple logo.

However, Galloway, who is also the founder of company L2, believes that the future potential for Apple to become a luxury brand will need to be led by the right team of experts. Apple. Inc believes that it is at the forefront in terms of design and innovation compared to competitors like Samsung or Google Inc. or Microsoft Corporation, which Galloway whole heartedly agrees with. “They are Micheal Jordan playing baseball. It's not the best use of their brand. They are a prestige brand trapped in a tech-hardware body.”

To be able to compete with big luxury fashion brands like Louis Vuitton, Cartier and Micheal Kors, Apple needs to have the right team of experts on board, like Ahrendts continues Galloway. The company recently revealed that they had taken on former Yves St. Laurent CEO, Paul Deneve to work on 'special projects,' but refused to disclosure any further information. Galloway thinks that this is another hint that the company is currently preparing to enter the luxury good and fashion market soon, as Deneve has extensive experience in the luxury goods market.

“Something tells me he hasn't been brought on to come up with the next MacBook Air. He’s [most likely] in a design studio somewhere, designing a blouse or a handbag that is a, beautiful, and b, does something that leverages Apple’s innovation and technology,” said Galloway. It all makes sense to the marketing expert, as Apple. Inc already has all the signature hallmarks of a exclusive and prestige brand.

“An appreciation for merchandising and craftsmanship are at the heart and soul of a great prestige brand; they typically have an iconic founder; they typically say something about the user or the person wearing the product, meaning they have self-expressive benefits; they typically have more control over their distribution and have the highest margins and a premium price, and have attributes that resonate globally,” he points out. Apple has already reached the status of creating the most widely recognizable mobile “Vip” phone and laptop. “What's more of a prestige brand than Apple?” concludes Galloway.

If Apple. Inc does indeed launch a fashion or accessories line in the future, it will not be the first time that the company steps foot into the fashion industry. In 1986, the company launched a clothing line that consisted of t-shirts, hoodies and cotton trousers for men, women and children. However the clothing line was a flop and was shortly after discontinued. If Apple. Inc does cross over into the fashion and luxury good industry, the company can only hope that the second time round will end up being more successful. With Ahrendt on board though, it is hard to see anything the iconic business woman touches going wrong.

Photos: Apple in 1986