“The Blossom Garden”
FASM 410 Retail Management Prof Alessandro Cannta Final Project Pop-Up stor e Ashley Choi Tiffany Lu Ines Arimany Or tiz Alejandr a Cr espo Rendon
CONTENT
• Company Summary • Market Analysis • Target Customer • Store Location • Store Design • Communication / Promotion • Financial Plan
Executive Summary This project is aimed to operate a pop-up store for extending customer experience and increase brand recognization in a different and creative way, aim to be the premier luxury-brand restaurant in Hong Kong. . Pop-Up Hermès bistro located in an upscale area, SOHO, which is in the heart of Hong Kong but at the same time isolated from the big crowd and busy areas, which creates a new and fresh space for Hong Kong millanials. Hermès Bistro will be a 46 seat restaurant offering gourmet style food and service, counting with the collaboration of Three-Michelin star chef Anne-Sophie Pic. We will offer specialty chef selections done with the finest ingredients. In addition, our mission is to grow through innovation and to create an exceptional experience with the highest quality products. We will strive to achieve this goal by: 1) providing menu items incorporating quality ingredients elaborated by a successful and recognized chef around the world, 2) we will be mindful of the well-being of our customers and staff. Key to success counts on every customer who comes in once should want to return, and recommend us. Word–of–mouth marketing is a powerful ally.
HermĂŠs International S.A was established in 1837 by Thierry HermĂŠs, a France-based private company that own by the Hermes family specialized in the design, manufacturing, and marketing of ride range luxury products from clothing, leather goods to homeware.
COMPANY SUMMARY Revenue: 5470.7 USD Corporate Structure Executive Vice President Sales and Distribution: Florian Craen
Executive Vice President Communication: Charlotte David
Artistic Executive Vice President: Pierre-Alexis Dumas
Executive Vice President Finance: Eric du Halgouët
Executive Vice President Compliance and Organisation Development: Olivier Fournier Executive Vice President in charge of Digital Projects: Wilfried Guerrand Executive Vice President Manufacturing Division & Equity Investments: Guillaume de Seynes CO-CEO: Axel Dumas Emile Hermès SARL, represented by Henri-Louis Bauer
Distribution At the end of 2015, Hermès has 307 exclusive stores worldwide 210 of which were operated directly
Future Growth The key to extend market in Asian Market like Korea and Mainland China, focusing on enhancing the existing boutiques Hermès have, expand their size and product offer and more to boutique experience, not meaning to open more stores. This extension faces to recruit the younger generation of clients, not just younger ages but also introduce the house to anyone who wasn’t familiar with Hermès before. Would also relaunch the e-commer platform that as a key way to reach and grow our new group of audience.
SWOT Strength • • • • • • •
Strong enough brand image and global presence with 300+ stores worldwide through Strong management team of ability to combine heritage with innovation, creativities to enter new market Among the strongest luxury brands and its measured expansion has preserved sales Has grown its network of franchise stores and preserve brand integrity from reducing distribution through third-party retailer Wide product range, from fashion to home furnishing The highest quality of materials and pursue no blemish for products Partnerships with schools putting an strong emphasis on a long internal training process
Weakness
• Limited access of ecommerce
Opportunity
• Increase product range in China market with extended line, Shang Xia, which mainly sells cashmere coats and handmade Chinese tea sets. It joins its two stores in China and Paris. • Improved online presence and interface
Threat • • • •
Rising cost of raw materials Growing competition and lower profitability Increasing awareness of animal welfare Trend of vintage products and vintage stores reselling hermes products which casue a lower exclusivity
Brand Identity
PHYSIQUE - Significant logo of “H” with orange colour - Leather goods, Birkin
PERSONALITY Elegant, Classic, High Pride, Sophisticated
RELATIONSHIP - Trustworthy quality, timless and exclusively connetiong with customers - Drag them to own all of the product range
CULTURE - French, International, - High quality craftsmanship - Heritagr with Innovation
REFLECTION The exclusive product offering creates a gate bwteen brand and customers
SELF-IMAGE A luxurious woman’s life
Brand Position Matrix Higher Price
Hermes is on top of all luxury brands with highest quality of good and craftsmenship, other than Chanel, Louis Vitton, and Gucci. Therefore, it also has the highest price for products. High Exclusivity
Mass Market
Lower Price
MARKET ANALYSIS
Strategies (based on creativity and quality of its products): Goals (Ambitious goal sales growth): • Expand to international Market. • Increase brand awareness and recognition in Asia. • Expand target market to • millennials • Expand target market to Asian millennials specifically to those economically accomplished • Increase social media interaction with Asia market
• Strategies based on creativity and quality of its products. • Open store in key location for our target customers
Objectives • Higher foot-traffic
• Creative pop-up shop that offers unique dining experience, that would appeal to the millennials.
• Higher number of transactions (*compare to Hermes regular stores )
• New stores adapts to social and culture of the location.
• Higher brand recognition from international customers
• Creative marketing campaign • Social media interaction with Popshop example; - Instagram advertising - Instagram hashtag • Location should be luxury fashion shopping district; catering to international customers
• Increase Traffic Volume Social Media account
Size of the market
According to the Frost & Sullivan Report, 15,760 restaurants in Hong Kong’s catering market in 2011.
The market size of the casual dining segment is the greatest among the four catering categories despite accounting for a smaller market share when calculated by number of restaurants. This is due to the fact that casual dining has the largest target audience given the affordability and variety in cuisine offerings. Further, casual dining establishments have more flexible food service times, longer business hours and serve a larger number of customers per establishment. Frost & Sullivan. “:: HKEX :: HKEXnews ::.” :: HKEX :: HKEXnews ::. Frost & Sullivan, n.d. Web. 29 Nov. 2016.
TARGET CUSTOMER Targeted to both women and men, arranging varies from 18-35 years old. More significant, we are catering to the consumer who travels often and are globally aware. Our target consumers are accomplished economically at a young-age with an average salary income. Moreover, their allowance is constantaly increasing, as a result, they demand higher quality of service and products. According to Visitor Arrivals Statistics, the high season of tourism in hong Kong is january among other months.
Demographic 2,342 generation y out of 7,167,403 in 2016 (“Demographics - Overview | Census and Statistics Department.� Demographics - Overview | Census and Statistics Department. N.p)
Psychographic Gen Y is classified as innovators They have the widest variety of interests and activities compared to any other generation. Gen Y are always absorbing information anywhere they go. They have international exposure. Gen Y is classified as self-directed consumers before makeing purchase desicision, gen y perform their own research Millennials are also receptive to new ideas and technologies when new technology is introduced they get excited for a new product. Gen Y is classified as achievers They are committed to their families and jobs. They have busy lives and full schedules. They managed their time wisely, they are very much goal oriented. With their on-the-go lifestyles, Hong Kong residents choose to spend their leisure time outside the home. This is especially the case for young people living with their families, who leave the home to search for space and privacy. As a market strategy we decided to create an environment where people can have unique dinining expereince. A pop up store would be created that featured a cafe where serves afternoon tea set and small food while offering the luxury fashion environment by displaying Hermes products and posters (Those are not for sale)
Kara Chan & Gerard Prendergast, Social comparison, imitation of celebrity models and materialism amongChinese youth, 2008
why millennials prefer to eat out? Fast pace lifestyle: long work hours of work in a competitive work environment where they are challenged to prove themselves valid every day, have led millennials to life a hasty life, leaving them without time to cook. When they do have enough time there lack of expertise in the kitchen discourage them. Searching for diversity: their high income has given them the opportunity to travel and be globally aware which have build up here yearn for international food, with higher inclination towards western food. Rising income has given more possibilities for eating outside. Necessity for wider social life: they are eager to have stronger relationship with partners, friends and co-worker. Going out to eat takeup to 80% of their social lives. In addition 60% of social media users shared their food or restaurant experience in some platform.
survey of generation Y through online and offline questions about shopping habits and the result as below Online
2016 年 1 月訪港旅客統計 訪港旅客人次撮要（按居住國家／地區計）
居住國家／地區
2015 年 1 月
2016 年 1 月
人次.
人次.
增長率
合計
中國內地
短途地區市場 (不包括中國內地)
台灣
日本
南韓
印尼
馬來西亞
菲律賓
新加坡
泰國
其他
長途地區市場
美國
加拿大
英國
法國
德國
澳洲
其他
新市場
surveyed 30 people (generation y) in Hong kong
印度
海灣合作地區國家
俄羅斯
荷蘭
越南
資料來源：入境事務處 海灣合作地區國家包括巴林、科威特、阿曼、卡塔爾、沙地阿拉伯以及阿聯酋
Hongkong visitor http://partnernet.hktb.com/filemanager/intranet/ViS_Stat/ ViS_Stat_E/VisE_2016/Tourism_Statistics_01_2016_0.pdf
Offline
surveyed 25 people in causeway bay
STORE LOCATION
SOHO When choosing the location for pop-up store, we should consider pedestrian traffic, public transport, vehicular transportation,parking, and infrastructure in order to attract consumers. We are looking to reach the young, trendy, urban consumer in Hongkong. Soho is a perfect place locates our pop up store since it offers various feature that achieve our goal of Hermes pop-up store. Soho is south of Hollywood Road in HongKong. It is part of the central district where full of art galleries, fancy restaurants, high-end/street fashion stores and nightclubs.
Traffic flow from Central
Public Transportations
Vehicular Transportation / Parking
Floor Plan
176.17 m²
57.55 7.11 m² m²
0.00 m²
Human Resource
executive manager dispatched from Hermes
KITCHEN
MANAGERIAL
FLOOR
executive chef Anne- Sophie Pic
bistro manager
- manages the staff - connected with executive manager
captain
sous chef
cashier
waiters
- connection between Anne and helpers
helpers
-prepare -in charge of keeping everything clean
reception store keeper
TASK Executive Manager
He is directly dispatched from the Hermes to manage the whole business of this pop-up bistro, monitor if the business is running porperly and reaching the task and income daily. He also has to in charge of all issues happened in store and which between customers, he also has the power to change schedule and give discount to special customer,etc.
Bistro Manager
He is directly under executive manager, who needs to have good conversation between floor staffs, kitchen staffs and executive manager, he is the bridge of the headquarter and store. He manages all staffs in store, make sure they work porperly towards customers, he has also need to deal with all complains from customers.
Executive Chef
She is exclusively hired from France and as a head of the kitchen, she has the power on controlling menu, in charge of all duty in kitchen. She is also offering the training with our training team towards all helpers to make sure they are helping indeed. She also needs to do the food procuring at wet local market to make sure the food quality as well.
Sous Chef
She is inseparably close to executive chef and help .
Helpers
They are helping to prepare food for chefs, makinf side dishes, clean the kitchen, and one of them is dishwasher.
Cashier
She is the one to give and collect checks for each table and make sure the right amount, also to monitor the income daily with the bistro manager.
Captain
He is the one who control all staffs on floor and waiters, make sure they deliver food on time and give best servise to customers. He also works with cashier and waiters.
Reception
We have two reception staffs in rotation to admit consumers, line them up in order and take them to the seats. Make sure to arrange them to seats within a time that they would not wait till angry. Keep consumers a happy mood is also their job. They are the door of our bistro.
Store Keeper
Duties in receiving, storing, issuing, distributing, shipping, and inventory of supplies, materials, equipment and apparatus, he also assists in receipt of goods by unloading, moving and counting packages. He is also the one who open and close the bistro.
Anne Sophie Pic ● COLLABORATION Valence, France ●
Daughter of chef Jacques Pic
● ●
Spent entire childhood with cooking Became 3 Star Michelin Chef in 2007 (3rd generation in her family to obtain the coveted Michelin Guide 3 stars) The only female chef in France holds three stars Run family restaurant “Maison Pic” in Valence 2009 Opened her restaurant in Lausanne (Switzerland) (2 stars)
● ● ● ●
“Pic Collection” menu is centred on family classics - dishes that inescapably speak to traditional tastes and values
●
Anne Sophie Pic ● Anne Valence, France Our pop-up store will invite French Chef, Sophie Pic as our executive chef to maintain luxury cafe image. ● Daughter of chef Jacques Pic chef in France. She spent entire childhood She is from Valence, France, daughter of chef Jacques Pic, who is a famous ● Michelin Spent entire cooking with cooking and now became a 3-Star Chef inchildhood 2007 (3rd with generation in her family to obtain the coveted Michelin Guide 3 stars). She is the only●female chef in France holds three and at(3rd the generation same time running familyto Became 3 Star Michelin Chefstars in 2007 in her family obtain the coveted Michelin Guide 3 stars) restaurant “Maison Pic” in Valence. We also offer training to chef helpers to keep the chef on top of her game. • 2009 Opened restaurant in Lausanne (Switzerland) stars) ● her The only female chef in France holds (2 three stars ● Run family restaurant “Maison Pic” in Valence ● 2009 Opened her restaurant in Lausanne (Switzerland) (2 stars) We will be sourcing food ingredients from local wholesale food marCollection” centredThe on family - dishes inescapably speak to ● “Picket in Grahammenu Street,isCentral. locationclassics of market is onlythat seven ●
traditional and our values minutestastes away from store. Therefore, we can save our budget for supply transportation. Also, the wholesale market provides fruit, vegetables, meats, seafoods,and all variety of ingredients.
COMPETITORS at location level Direct Competitors
Our direct competitors are luxury cafes where offers similar attributes and prices in Soho, Hong Kong.
Café Gray Deluxe
A modern European cafe where offer afternoon tea for lunchy time. The place is also connecting to hotel and Cafe Gray Deluxe bar. The cafe consists 100 people seats. The price range is $301 HKD to $800 HKD (USD $38- $103)
Caprice, at Four Season Hotel
Michelin two-star French Cuisne cafe with the team of 25 chefs. This place offer indoor seating of 65 and private dining of 12. They also offers afternoon tea set for lunch. The price range is $801 HKD (USD $103)
Le Salon De Thé de Joël Robuchon
Michelin three-star cafe with. This place offer 45 seating. The cafe awared and titles Best French Resturant in 2015. The price range is $301HKD to $800 HKD (USD $38 to $103)
SEVVA
An afternoon tea cafe.This place is including fine are gallery divided into four areas as habour side, bank side, taste bare and large balconies.The price range is $301 HKD to $800 HKD (USD $38- $103)
Indirect Competitors
Our indirect competitors are the restaurants near our pop-up stores. Those restaurants are not luxury cafe and does not offer similar attributes but those restaurants can be our threat to attract our consumers at the location.
Ayuthaiya
Thai lounge bar/restaurants, they accommodate for functions or events
Carbone
New York based italian restaurant, a private dining reservation
Yung Kee
Signature cantonese cuisine, valet parking proviod
LEGAL ISSUE Payment
We will be using bindo pos equipment which is Hong Kong based register equipment. This equipment will allow us to manage cash and credit card register easily also table management, reservation, wait list, menu system,etc.
@shopBindo. "IPad POS for Retail." Bindo
Licence
Our pop-up store will contain liquors on our menu therefore we will be applying for temporary liquor license. According to liquor licensing board Hong Kong, the commissioner of Police can issue a temporary liquor license for the retail sale of liquor at any public occasion under certain regulations. "LLB - Temporary Liquor Licence." LLB - Temporary Liquor Licence.
Health
To maintain food safety, we will be checking food alerts each months to provide safe food to our consumers. "Centre for Food Safety." Centre for Food Safety.
Working Visa
According to Hong Kong general visa requirements, Hermes need to process visa application for our French main chef. The immigration department will consider the applicant’s education, job experience and other factors. Our company will ensure our employee’s salary, accommodation, medical, and educational provisions to process the visa. (www.gov.hk), GovHK. "Non-Residents." GovHK: General Visa Requirements.
STORE DESIGN
front door
reception
waiting zone
view behind from the waiting zone
aisle tables
view at the back towards front door
the back garden
the back garden with window view
the back garden with Hermes background
the back garden with Hermes background
overview of the back and a part of aisle
kitchen
kitchen
MENU
Menu - petites bouchées small bites $225
LES OURSINS VIOLETS
Creamy sea urchin with dill and sobacha, fine clementine jelly Corsica $218
LE BRIE DE MEAUX
Brie cheese of meaux with vanilla bourbon $206
LE CHARIOT DE FROMAGES Our selection of fine cheese
- les bonbons desert - LES GOURMANDISES AU CHOIX $188
LA CHATAIGNE DE L’ARDECHE, LA COCO L’ABSINTHE ET LE SUDACHI
Cream with chestnuts and Sudachi, Chantilly brown-absinthe, Coconut-chestnut-absinthe sorbet $190
LE MILLEFEUILLE AU CAFE ET AU FRUIT DE LA PASSION
Praline-hazelnut, exotic fruits confit, Light cream plus an emulsion of passion bay and coffee $195
LE CHOCOLAT AU MIEL AMER Like a honeycomb Panna cotta with bitter honey from Corsica Creamy and tea ganache Hojicha Cubèbe
Drinks $43
JASMINE LEMON FIZZ TEA Jasmine tea, freshly squeezed lemon, elderflower, soda.
$43 CUCUMBER FIZZ TEA Jasmine tea, cucumber, fresh mint, lime juice, elderflower
$35 LEMON TEA
$30 COFEE Macchiato Cappucino Espresso Americano Latte Mocha
$128 glass / $339 bottle Wine - REDS House Malbec House Cabernet Sauvignon - WHITES House Pinot Grigio House Sauvignon Blanc
$138 glass / $368 bottle Champagne Rosé - Veuve Clicquot
COMMUNICATION / PROMOTION
OMNICHANNEL MARKETING PLAN Creating a single and unified experience through the different channels utilizing one of the most used channels by our target market: millennials. These include: • Instagram • Email blasts • Pre-launch event poster In addition, we also send out e-mail blast to our customers who have shopped with us before, to invite them to our new bistro. According to that, we can also track them if they come to the event because of the email.
Official Instagram
Pre-launch Event Poster
E-mail Blast
Hermes Bistro Opening Party! hermesgroup@hermes.hk
FINANCIAL PLAN BUDGET
We are paying USD 38677 for rent, and cost of human resources as 35% of the revenue. Since we arre selling wines and sparkling in the bitro, so we have to apply for the liquor licence and pay for that fee. We want high quality of food to deliver to consumers, therefore a big amount is in greedily. The monthly expenses will be USD 71940.
SALES FORECAST LOCATION FOOT TRAFFIC PER DAY PERCENTAGE OF CONVERSION TRAFFIC/FALL Footfall Conv. % Avr.Basket
(MKUP 60%)
COGS
308 308 0.005 0.008 Day 1 Day 2 2 2 0.05 0.05 $ 25,334.00 $ 25,334.00 TOT.REV TOT.REV $ 1,950.72 $ 3,121.15 $ 780.29 $ 1,248.46
308 0.005 Day 3 2 0.07 $ 25,334.00 TOT.REV $ 2,731.01 $ 1,092.40
308 0.005 Day 4 2 0.07 $ 25,334.00 TOT.REV $ 2,731.01 $ 1,092.40
308 0.005 Day 5 2 0.08 $ 25,334.00 TOT.REV $ 3,121.15 $ 1,248.46
308 0.005 Day 6 2 0.08 $ 25,334.00 TOT.REV $ 3,121.15 $ 1,248.46
308 0.005 Day 7 2 0.08 $ 25,334.00 TOT.REV $ 3,121.15 $ $ 1,248.46 $
19,897.32 7,958.93
PROFIT / LOSS
CONCLUSION
Through the knowledge accumulated on our research process, our pop up store is a result of great potential and if executed correctly it would accomplish all of our goals. With our innovative concept, we will create an impact in our target customers and we will also create brand awareness. In addition, the limited amount of time of our opening will attract our customers and they will not lose the opportunity of getting to know HermĂŠs Bistro, a concept never seen before in Hong Kong. The store design and the collaboration with chef Anne-Sophie Pic will make this experience even more memorable.
FASM 410 Retail Management Prof Alessandro Cannta Final Project Pop-Up stor e “T he Blossom Garden“ Ashley Choi Tiffany Lu Ines Arimany Or tiz Alejandr a Cr espo Rendon