6-Month Buying Plan
History of Bergdorf Goodman Bergdorf Goodman traces it’s history back to 1899 when Herman Bergdorf, an immigrant from Alsace, France, opened a tailor shop just above Union Square in downtown Manhattan. Edwin Goodman, a young 23-year old merchant, based in Lockport, New York, moved to New York City to work as an apprentice for Bergdorf. Within two years, Goodman had raised enough money to purchase an interest in the business, which was named Bergdorf Goodman in 1901. Here are a few highlights on how Bergdorf Goodman became the luxury goods department store that it is today.
1914 (Edwin Goodman is the first 1901 1928 couturier to introduce ready-to(Edwin Goodman and Herman (Bergdorf Goodman moves up onto wear, changing the way Bergdorf open a dress atelier on Fifth Avenue and 58th Street, former American women dress) Fifth Avenue at 19th street) site of the Cornelius Vanderbilt mansion)
2011 (Voted Luxury Marketer of the year)
1969 (World Famous shoe salon opens)
2012
(Bergdorf Goodman celebrates their 111th year anniversary) 1990 (The Men’s store opens across the street)
2010 (5th/58th Blog Launches)
2006 (5f Contemporary debuts on the 7th floor)
2004 (BG.com goes live)
1999 (The beauty level opens across the street)
Mission Statement
“Bergdorf Goodman provides luxury assortments at the highest caliber, all geared by knowledgeable staff to provide a customized, enjoyable buying experience.�
Target Market
Who are these amazing people who shop at Bergdorf’s? They are Innovators! Demographics: Age: 25 - 50 Gender: Male/Female Income: $150,000+
Education: Bachelor’s Degree or Higher Marital Status: Married w/ a family Home ownership: Yes
Innovator Traits: *Successful *High self-esteem *Sophisticated *Receptive to new ideas *Take Charge *Leaders in their industry *Active consumers *Cultivated tastes *Upscale niche *Upscale niche products/services Favorite Things: *Luxury vehicles *Sparkling water *A rewarding shopping experience Personality Traits: *Image is very important because it is an expression of their taste, independence and personality *They are emerging leaders in business and government *Continue to seek challenges *Lives are characterized by variety *Possessions and recreation reflect cultivated taste for the finer things in life
Product Categories
Fact: Bergdorf Goodman carries a variety of products and strives to provide a wide selection of assortments and services. In 1999, the Beauty Level opened directly below the main floor, offering a luxury spa and Goodman’s Cafe, serving lunch and afternoon tea. In 2002, Bergdorf Goodman underwent a major renovation, during which artisans began a dramatic restoration of the main floor of the women’s store. In 2003, the store introduced new boutqiues for Chanel, Giorgio Armani, Gucci, Versace, and Yves Saint Laurent. The Bergdorf Goodman Men’s store features exclusive brands such as Loro Piana, Kiton, Brunello Cucinelli, John Lobb, Thom Browne, and Tom Ford.
Handbags, Jewelry, Sunglasses and Optical Shop Goodman’s Cafe Cosmetics, Fragrance, Hosiery Designer Shoe Salon, European Designer Boutique Advanced Designer Collections Solutions by Betty Halbreich Couture Collections, Fur Salon, Evening Collections Personal Shopping Services Contemporary Clothing, Denim, Shoes and Accessories Sportswear, Coats, Eveningwear, Lingerie and Swimwear, Client Services and InCircle Services BG Restaurant Decorative Home, China, Crystal, Silver, Stationery, Books, Linen, Little BG, Holiday Shop Bridal Salon and Gift Registry John Barrett Salon
Scope of Store
Bergdorf Goodman operates one luxury venue located in downtown Manhattan. The women’s store offers nine stories of pure elegance while the men’s store is located across the street and currently undergoing a mass transformation. Bergdorf’s also operates both print catalog and online operations. Their annual sales are estimated at one billion dollars.
Social Media Presence
Bergdorf ’s praises themselves on their social media presence because they have taken advantage of every opportunity to connect with their shopper through platforms such as Facebook, Twitter, Instagram, the Bergdorf Goodman Application for smartphones, and their blog 5th/58th.
Facebook: *247, 310 likes *They use Facebook to post “What I’m wearing today” feature that tracks five consecutive outfits of an employee. Consumers can comment on the images and are directed to the Bergdorf website where they can buy the items themselves. *They also use Facebook as a way to alert their customers of upcoming in-store events. Twitter: @Bergdorfs / @Bergdorf *250, 400 followers *BG gives its followers inside access to the store, the windows, the fashion, the City and a lot more. *They engage with their consumers and ask about their weekend plans and fashion tips in addition to posting store events, branded products, sales and New York theme lifestyle tips. Instagram @Bergdorfs *231,000 followers *A place to find their Fashion City Adventures and New York secrets App: Today’s Shoe *This is where consumers can send their pictures of their shoes to the brand. The images are put up on a large map of New York so that consumers can see the shoes all over New York’s Manhattan area. Blog: 5th/58th *A place to find the latest news on New York Fashion Week, calender of events, Window Displays, Designer Collections, Men’s and Women’s fashion, print catalog, etc.
The Bergdorf Difference
Bergdorf Goodman difference encompasses a lot of different aspects, including exclusivity within their product selections. They have extravagant designer-based assortments to fit every customers style and taste. Their window displays are the best in the company and have the utmost creativity. The window displays make such a statement that people from allover New York City visit just to see them. Bergdorf’s prides themselves on outstanding customer service and they ensure that every employee has a high level of product knowledge. Their store is not just a department store. It is a retreat for their clients. This is a place you come for the day and the slow shopping experience is definitely apart of their marketing plan. Lastly, Bergdorf’s knows who their elite client is and what he/she wants, which is the most important aspect when dealing with goods and services from a merchant standpoint.
Competitors Bergdorf’s competition includes other high-end retailers such as Bloomingdales, Lord & Taylor, Barneys New York, Saks Fifth Avenue, Nordstrom, and owner Neiman Marcus.
Product Categories Competitors Bergdorf’s online competition includes FarFetch.com, Luisaviaroma.com and Net-a-porter.com. Our men’s accessories product category competes with brands such as Jack Spade, Coach and Cartier.
Product Category For Spring 2013, we will be buying Men’s Small Leather Goods and Accessories, which includes the following items: Tech Accessories, Backpacks, Men’s Clutches, Briefcases, Messenger Bags and Travel Totes. As a group we choose this product category because we see immense potential within men’s fashion as it becomes more and more prominent for men to add special pieces to their wardrobes. By hand selecting and providing the best accessories in the retail industry, Bergdorf’s will be able to grow it’s men’s business and continue to be the #1 high end luxury retailer.
Lifestyle Trends
Culture Shock
Utilitarian
Urban Rocker
High Street
Minimalist
Lifestyle Trend Profiles Culture Shock The man in the latest trends that love to play with patterns and print. His style is globally influenced with an eclectic mix of high fashion sophistication and cultural innovation. The culture shock man enjoys living in the city as well as traveling.
Utilitarian The Utilitarian man is looking for pieces that are useful and practical. He wants to make the most of his wardrobe and prefers items that are functional over trendy. He loves neutrals and industrial items. The Utilitarian is an on the go type of guy that needs utility pieces to suit his taste.
Urban Rocker The free minded fashion spirit who expresses his love for music and everything rock through his clothing. He likes dark hues and accents his look with dark accessories. His leisure time is spent a hip local bars and hangouts.
High Street This man is the ultimate business man that likes to make a bold statement. He likes to mix classic and vintage pieces within his modern wardrobe. His man go-to look is a bold tailored suit that has a relaxed appeal to fit his lifestyle.
Culture Shock
Utilitarian The Minimalist The minimalist favors functionality the most. His wardrobe is filled with interchangeable pieces that he’ll be able to wear and accesorize for years to come. He lives a relaxed lifestyle and likes his wardrobe to reflect that. He purchases items when he needs them rather than when he wants them.
Urban Rocker
High Street
The Minimalist
Trend Forecasting Spring 2013 trends include fun gemmed tech accessories, minimal but sleek iPad cases, wallets, the hybrid backpack, the new briefcase, the man clutch, the backpack and messenger bags. Prints and bright colors will be seen all throughout accessories as a way to give each individual gentleman a more customized fashion aesthetic. As you can see, men’s fashion has come a long way from it’s once boring story to a fabulous and exciting new palette of endless combinations.
Primary Wallets
2
Hybrid Backpack
4
The Man Clutch
6
8 Messenger Bag 1
Gemmed Tech Accesories
3 Minimal iPad Case
5 The New Briefcase
7 Backpack
S.W.O.T Analysis STRENGTHS
OPPORTUNITIES
• • • • •
• Accessories market is booming • Men’s fashion is becoming more prominent • Men are starting to care more about fashion and what their wardrobe • The expansion of the men’s department will provide more selling space for men’s accessories.
Men’s accessories have a longer shelf life and the trends stay in style longer. Men are becoming more conscientious about fashion and luxury accessories. Bergdorf’s is expanding their men’s store Leading luxury retailer in men’s assortments Slow shopping experience
WEAKNESSES
THREATS
• The men’s department is still under construction.
• •
E-commerce competitors can offer the same product online. New business retail models are developing.
The Men’s Store
When Schulman joined Bergdorf’s two years ago, he brainstormed with the team “on what the next generation of men’s store should be. We have some of the most powerful retail real estate in the world, on Fifth Avenue between Apple and Louis Vuitton. So we looked at the mix of product and worked to keep the extraordinary taste level that has defined Bergdorf Goodman but make it more relevant to a younger customer.” The challenge, he said, was to “harness the power of our sartorial heritage and blend it to meet the changing needs of today’s modern consumer.” Schulman declined to provide a dollar figure for the cost of the renovation but noted, “There’s a lot of growth within these four walls. We have a very powerful stand-alone business and, by investing in capital, people and marketing, we have a significant opportunity.” – WWD
6-month Buying Plan FASM 245 Retail Buying Simulation 6 Month Buying Plan Spring 2014 Focus Product Category:
Mens Accessories
(000's) Spring 2014 Plan Net Sales, Spring 2014: Est. Net Sales, Spring 2013 Plan % Last Year: Average Stock, Retail: Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %: (000's)
Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost IMU%=
February 5600.0 14% 19040.0 3.4 20880.0 300.0 5% 7740.0 2399.4 69%
$40,000.00 $15,000.00 166.7% 18842.9 2.12 6000.00 15% 69% March 7200.0 18% 20880.0 2.9 20400.0 480.0 8% 7200.0 2232 10%
Spring 2014 6 Month Buying Plan April May June 6800.0 6800.0 7200.0 17% 17% 18% 20400.0 19720.0 18720.0 3.0 2.9 2.6 19720.0 18720.0 16640.0 720.0 1500.0 1800.0 12% 25% 30% 6840.0 7300.0 6920.0 2120.4 2263 2145.2 34%
15% 100%
0% 15%
July 6400.0 16% 16640.0 2.6 16500.0 1200.0 20% 7460.0 2312.6 0%
Spring 2014 40000.0 100% 18842.9 6000.0 100% 43460.0 11160
•Planned net sales for men’s small leather goods will be 40 million in which we increased from last year at 15 million. With the remodeling of the men’s store, it will offers more selling space which in turn will fuel sales. •Planed reductions will be at 6 million. Men’s small leather goods are classic and hold a longer shelf life therefore 6 million is a reasonable median. •Planed turnover rate will be 2.12. The luxury of accessories is that they are on trend, very popular this season and a necessity to our buyer. •Average retail stock will be 18,842,900 million due to the average of stock on hand at the beginning of the month. This number is key for a stable flow of stock as projected for Bergdorf’s small leather goods. •Planned initial markup is 69%.
Assortment Plan FASM 245 Retail Buying Simulation Assortment Plans Spring 2014 Focus Product Category: Men's Accessories Planned Purchases, Retail: Average Retail Price: Classification Backpacks Briefcases Totes Clutches Small Leather Goods Tech Accessories Total Bags Price Range <$499 $500 - $999 $1000 - $1999 >$2000
$43,460,000 $1,384
% Total 5% 20% 15% 10% 30% 20% 100%
$ Unit Purchases Purchases $2,173,000 1122 $8,692,000 3530 $6,519,000 3124 $4,346,000 6467 $13,038,000 16932 $8,692,000 23303 $43,460,000 54479
Avg. Retail $1,937 $2,462 $2,087 $672 $770 $373 $8,301
% Total 5% 15% 45% 35% 100%
Small Leather Goods Price Range <$199 $200 - $399 $400 - $599 >$600
% Total 5% 40% 15% 40% 100%
Vendor Gucci Prada Ferrgamo Tom Ford Givenchy Other Total Tech Accessories Price Range <$99 $100 - $299 $300 - $499 >$500
Total 30% 15% 10% 10% 10% 25% 100% % Total 40% 10% 40% 10% 100%
Statement of Risk/Opportunity: Bergdorf Goodmanâ&#x20AC;&#x2122;s new menâ&#x20AC;&#x2122;s store offers a plethora of opportunities. Through our 6-month buying plan, sales have been increased for 2014 according to the additional space. This will grant opportunity for both sales, designer selections, and choice in assortments. Through the buying plan, the assortments chosen will reflect the lifestyles the Bergdorf Goodman customer seek. With a steady follow of receipts this will grant Bergdorf Goodman profitable even having the potential to exceed planed sales.