Table of Contents
Executive Summary
Market Analysis
1
22
Expenses 36
Company Overview
2
Target Consumer
30
New Strategic Intiative
Promotion
16
32
Executive Summary
Topshop/Topman is one of the most innovative fast fashion companies in Europe. We have teamed with some of the top technology companies such as Microsoft, Apple and Google+ to integrate technology into our brand. Topshop/Topman has always strived to separate ourselves from our competitors, however, there is room for improvement with our storefront visual displays. With the help of Corning’s smart glass window panels, we have developed a new, exciting and innovative solution to set our storefront visual displays on a new caliber, leaving our competitors behind. Topshop/Topman will rate its success based on increased foot traffic, increased sales and increased social media hype. Topshop/Topman will know our initiative has been successful because our competitors will try to emulate our admirable concept. When our competitors imitate our aspiration, we will have to continually innovate our visuals to stay ahead of the curve.
1
Mission
“Topshop is all about refusing to be pigeonholed. Each customer is an individual and relies on the brand to deliver everything from basics to cutting-edge trends. It’s the brand spectrum of ever-changing collections that keep Topshop ahead of the style game.”
2
Current Ownsership Structure
Leonard Green & Partners 25%
TOPSHOP
Arcadia Group 75%
TOPMAN
As of December 6, 2012 Sir Philip Green CEO of the Arcadia Group sold a 25% equity interest of TOPSHOP/TOPMAN Ltd. to Leonard Green & Partners. (Foster-Brown)
3
Current Revenue
As of Aug. 31, 2013 - Revenue: £984.0mil - Net Income: £114.4mil - Net Worth: £-395.9mil (OneSource)
4
Future Growth Plans
As we see the fast-fashion industry growing at a rapid pace industry leaders are seeing that consumers are demanding new assortments of product at a more frequent pace. Along with this new assortment they want more initiatives besides shopping to bring them into the stores. If retailers are offering the same items and experience through their e-commerce site as are offered in-store shoppers are more likely to want to shop on the go. With companies like Topshop/Topman, Uniqlo, H&M, and Zara leading the way of making customers in-store experience more interacting they are increasing their foot traffic. Through implementing interactive technology such as smart windows into their stores they are attracting their target consumer as well as new shoppers into their stores. If Topshop/Topman takes the lead in implementing the smart windows into their store it will give them a leading advantage. They can store with their flagship store in London and eventually take it globally to all of their stand-alone stores.
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6
7
SWOT
Strengths
8
Weakness
Strong UK presence Wide range of brands Strong CRM activities Multi-Channel distribution Celebrity collaborations Aid young designers (Topshop)
Website Update Prices not competitive Apparel incongruent with the price No variety within Ad campaigns
Opportunities
Threats
Become a sustainable company Bring interactive technology to retail stores Expand globally w/ pop-ins Innovative visual displays
Consumers are beginning to shop at thrift stores Continuous competition from competitors
8
Topshop/Topman has a strong presence within the industry but there is room for improvement. For Topshop to remain a leader in fast-fashion, we must improve our brick-and-mortar atmosphere with the use of interactive technology.
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9
Perceptual Map Price High
Accessiblilty High Accessiblilty Low
Price Low
10
10
According to the perceptual map, Topshop, Topman needs to separate themselves from inside of the congestion of its competitors. The direct competitors that are surrounding the Topshop, Topman area on Oxford Street in London are Zara, H&M, Marks & Spencer, The New Look Flagship store, Uniqlo, Urban Outfitters, River Island, Pull & Bear and French Connection. H&M, Zara and Urban Outfitters are our closest competitors and are well known for their innovative window displays using conceptual decorations and utilizing their mannequins for visuals. Topshop needs to innovate their store fronts window displays in order to direct traffic into their direction and to be ahead of the competition.
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11
TOPSHOP/TOPMAN Distribution Channels
Topshop has over 600 brick-and-motor stores world-wide and ships to 39 different countries through e-commerce site. Topshop has wholesale (shop in shop) within 52 Nordstrom departments stores in the US. A Topshop application is also available on portable devices for Apple and Android (Topshop).
Topman has over 400 brick-and-motor stores world-wide and ships to 31 different countries through e-commerce site. Topman has wholesale (shop in shop) within 52 Nordstrom department stores in the US. A Topman application is also available on portable devices for Apple and Android (Topman).
12
See Appendix A
12
Sales Volume by Distribution Channels
- Group generated £194mil of cash sales for the year to end of Aug. - Net cash in hand for group £148mil - Total sales for the year inched up 1% to £2billion - Retail margin down -0.6% - Online sales grew +13.4% - LFL sales were up +1.6% (Arcadia Group)
The company owns most of all the Topshop and Topman retail stores. Although, there is 173 franchised stores in thirty-seven different countries. All of the U.S. Topshop and Topman stores are company owned (Hsu,Tiffany).
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13
Promotion
Topshop’s Christmas campaign stars Cara Delivingne. This is done through digital image marketing as was as a festive film where Cara guides shoppers through this season’s holiday party dressing featuring trendy items from Topshop. This is her first solo campaign and she has been a model for Topshop for years. This is important because Cara Delivingne is the “it” model particularly among the age group that Topshop caters to. Even after Christmas, Topshop continues to use Cara Delivigne as the star model (Sharkey). Topshop is also known for their fashion shows at London fashion week. In 2005 they were the “first high street label to be featured” and it created a great deal of excitement. No other company like Topshop had made it into the London Fashion Week and it is said to have been part of the democratization of fashion. This year Topshop teamed up with Google+ to stage a real-time, all-access consumer extravaganza around the live stream of its Topshop Unique show to be presented as part of London Fashion Week” (Kansara). Topshop has also provided much needed support to young designers by “sponsoring the British Fashion Council’s Newgen initiative, through which emerging designers are given financial support to both produce and show their collections – an undertaking that can cost fledgling designers thousands of pounds they don’t have.” All if the previously stated has been effective in attracting and cementing the relationship with youth (Gonsalves).
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14
Communication
15
TOPSHOP
TOPMAN
4,152,773 Likes
690,878 Likes
1.08M Followers TopshopHelp 2,892 Followers
95.5K Followers
3.8M Followers
233K Followers
51,148 Subscribers
6,223 Subscribers
2,323,704 Followers
964,809 Followers
Topshop wants to build a relationship with their customers all over the globe through their social media accounts and personal blog. Through Facebook and Twitter customers are able to have conversations with Topshop/Topman representatives about their experiences be it good or bad. Within their brick-andmotar stores customers are able to book a personal shopper appointment, sign up for credit card, and students recieve 10% off. To aid it’s online consumer both Topshop and Topman have a personal e-commerce site. Their mobile apps are modified for IPad, IPhone, IPod, and Android users. When shopping through these channels customers are offered free shipping and free returns. Also, after purchases through website customers are able to take a survey about experience (Topshop).
15
Objective & Rationale
The purpose of implementing this new innovative technology is to separate ourselves from our competitors through smart window technology. In London, during the holiday season, Oxford Street has a huge increase of foot traffic because of the extravagant window displays and holiday shopping deals (AM). With retailers putting up these visual displays to capture the attention of their customer they are constantly in competition with the surrounding retailers as well as their competitors. In order to separate ourselves from our competitors, we will be the first fashion retailer to integrate Corning’s Smart Glass Technology and to utilize the flagships unique window design in order to broadcast an eye-catching video to capture the attention of consumers. Our objective is to bring customers into our store by showing them a unique and exciting visual holiday display that we will promote through our online and social media channels. In the long term, Topshop will need to continue to innovate new ideas into their store because competitors will follow.
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16
Supplier
As the leaders in creating innovative technology through material science Corning makes Smart Glass technology possible. For more than 160 years Corning has applied its unparalleled expertise in specialty glass, ceramics and optical physics to develop products that have created new industries and transformed people’s lives (Corning). With smart glass technology there is a delivery of real time information connected through a virtual world at people’s finger tips. Corning’s patented fusion manufacturing process is at the core of leadership in glass technology and the cover glass industry. This precise, highly automated process produces a thin sheet cover glass with pristine surface quality, outstanding optical clarity and inherent dimensional stability and vivid, lively imagery with Corning Gorilla Glass (Corning). The process begins when raw materials are blended into a glass composition, which is then melted and conditioned. The molten glass is fed into a through an isopipe where the glass is drawn down to form a continuous sheet of flat glass. 18
18
Technology
The glass is linked to Bluetooth and Wi-Fi which enables the smart glass technology to be changed with smart tablets. The visual displays can be swiped from tablet to glass windows within minutes. Visual displays can also be created on desktop and laptop computers as well and then be uploaded to the smart glass (Corning).
19
See Appendix B
17
Implementation
Month Research Smart Glass Potential Placement Negoatiations on Size & Price Establish Budget Creating of Glass Establish Visual & Production Team Imagery Finalization Window Installation (Overnight) Employee Training on Window Operation Holiday Window Revealed to Public Analyze foot traffic and sales after installation
Mar.
Pre-Launch Apr. May Jun.
Jul.
Aug.
Launch Sept. Oct. Nov.
Post Launch Dec. Jan.
TOPSHOP/TOPMAN will be implementing the Corning Gorilla Glass as an interactive window display at it’s flagship store on Oxford St. in London. Corning will develop 3 windows that will have the 2015 Holiday campaign videos on loop. The two first windows will be on TOPSHOP’s side while the other will be on TOPMAN’s side. Throughout the holiday season their will be several videos that the visual team will rotate through to promote the holiday collection.
20 19
Market Analysis As one of London’s major contributors to supporting the economy Oxford Street is the UK’s most popular shopping street. This area employs almost 50,000 people with consumers spending £5 billion annually as a whole (AM). According to research on visual merchandising the atmosphere of a retail store through visuals can have an effect on consumers shopping behavior. Statistics show that 63% of consumers say the visual layout of a store caused them to shop more and spend more time in a store (Yoo-Kyoung Seock). When they remember these displays they get a nostalgic feeling that makes them want to come back and experience it all over again. Another study, conducted by Cisco says that “over 40% of shoppers say that digital display such as video walls can change what they buy” (Cisco Public). Today we are seeing brick-and-mortar stores become more innovative in their store displays to attract the consumer back inside to experience the story behind every new campaign. On Oxford Street alone there are currently 47 fashion retail stores that display their product in their windows (Oxford Street). Most of the stores are known for their innovative in-store practices that make shopping exciting and more appealing to the consumers. Fast-fashion brands such as ZARA, Topshop, New Look, and H&M have built flagship stores with multiple levels for the consumer to shop. During the holidays, the retailers get involved with all of Oxford Street to get in the decorative spirit to capture the shoppers attention. With such a large square footage they have monopolized their individual spaces by putting together very attractive visual displays with the use of traditional mannequins, geometric shapes, and digital technology. The brands on Oxford Street that are well known for their visually attractive displays are ZARA, H&M and Topshop. With these retailers updating their displays they are getting inspired by other businesses with practices that are able to be integrated. In the luxury automotive industry, companies like Mercedes-Benz and Global Caravan Technologies are becoming more innovative and utilizing smart glass technology to control the lighting and tint of their windows (Global Caravan, Mercedes-Benz). Smart glass window technology has never been used in the fashion retail industry and this would be profitable for big brand names such as Topshop. 20
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Competitors
23 22
Porter’s 5 Forces Bargaining Power of Buyer: Low
Bargaining Power of Supplier: Low
-Costly investment -Return on investment difficulyt to measure
-Investment Risky -Not attractive to buyers -Buyers more likely to invest in substitues
Competitive Rivalry: Medium-Low -Nothing else similar in the market -Continue to innovate because of competitors entry to market after implementation
Threat of New Entrants: Medium-Low -Unattractive to competition -Threat will increase after implementation substitues 24
Threat of Substitues: Medium-Low -Corning is the most innovative -Only real competitors are LED screens -Other retailers prefer smart mirrors or IPads 24
Topshop/Corning partnership Overall: Medium-Low
The overall competitive rivalry is medium-low. Corning is the only supplier of this kind of technology and while there are similar technologies none of them truly do what Corning does (Corning). This is a large investment where the return on investment is not necessarily predictable or quantifiable. Topshop’s competitors have not yet employed this kind of technology however, they may be swayed once they see Topshop’s success. There are LED screens, iPads, Smart mirrors but none of them truly function like Corning’s windows (Strange) (Yates) (Sterling). If Topshop intends to continually be successful and truly get everything out of their return on investment, they will they will have to frequently change and innovate the visual display depicted using this technology.
25
See Appendix C
25
Demographics
According to Jane Shepherdson, brand manager from Topshop states “officially our target market is 15 to 30-year-old women” (McMinn). Topshop appeals to students, professionals, fashion taste makers and high profile A-List stars alike (Lawrence). Women and men born between late 1970’s and 2000 are millennials and they make up 23% of the UK population (emarketer). The UK total population is 64 million with the average income for this demographic at about £26,000. Of the Topshop customer 65% still has some kind of parental support and financial assistance. Also, 37% have some college or trade school education, 22% have a bachelor’s degree, and 13% have post grad or advanced education. The Topshop/Topman customers make up a majority of the workforce in the UK with 34% living outside of the London city areas. Out of London’s workforce our customers make up a majority with 41% working full-time. They would also rather have a fulfilling job and make less money than work at a job they hate and make more money. Ideally, our customer would like to work from home and are unwilling to put up with long hours and poor holiday (Asthana). Tourist population in London is about 17 billion a year (BBC). By 2030 the millennial generation of travelers is expected to reach 78 million (Nelson). In 2009, 14.2 million tourist together spent £8.24 billion (London Tourism Statistics). According to the World Youth Student and Educational (WYSE) Travel Confederation, millennial travelers now make up 20% of international travelers around the world (Morgan). The Millennial Traveler feels comfortable mixing business and leisure so they’re more likely than others to extend their business trip and turn it into a personal vacation (Nelson).
26
See Appendix D
26
27
Psychographics Millennials feel at home in the digital world. They have the lastest and greatest technologies. Spending time on social media platforms is a form of enjoyment for this demogroahic and they are highly engaged. Millennials shopping habbits are directly influenced by social media and advertisement. See more in appendix The Millennial tourist explore but never call themselves “tourists�. They collect stories and share them online. They demand instant gratification, Wi-Fi upon arrival to their destination. They use their mobile devices to enhance their travel experiences. In fact, according to The Luxury Traveller & Social Media 2014 report, they rate hotels on how Instagram-able they are. (Nelson). This target market is more fashion aware, which leads them to be more demanding. Its said that 48% of our customer shops when they need to and love it. While, 38% shop downtown more than twice a month (Lachman). In London at least 73% of its shoppers stated they pay more attention to what is going on around them when shopping in the city than they do on their local high street. Over half agree that London inspires them to try out new products and concepts. As an unrivalled entertainment hub, spending time in London is perceived as an occasion where shoppers can let their hair down and forget their financial worries. A massive 97% of respondents extend their London shopping trips to include other activities such as lunch (72%), meeting friends (57% women, 40% men) and visiting more than one shopping location within Central London (49%), (Outdoor Media Centre). See more in appendix Tourist enjoy visiting famous buildings, museums, art galleries, parks and gardens are very popular activities, with many visitors also going to the theatre. The majority of tourist holiday visits involve shopping and eating out with London’s nightlife also important (Visit Britain). Millennials are three times more brand loyal than regular travelers and spend 13% more (Nelson). Breaking the mold of a traditional tourist, millennials are traveling younger, longer, and with more expectations than ever before (Morgan).
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29
Meet Hannah
Age: 18 Education: Student at University of London Occupation: Student Yearly Income: ÂŁ7,214 Hannah is in her second year of University studying communications. She works parttime in retail, but her parents also support her. Hannah lives outside of the city but commutes into London for, school, work and entertainment. Hannah is always on social media and updated on the latest technology. While shopping, Hannah is money conscious.
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30
Meet Joel
Age: 28 Education: BFA, Rutgers University Occupation: Graphic Designer Yearly Income: $70,000 Joel works full-time as a graphic designer at a well known advertisement firm. He plans to pursue his masters within the next few years. For work and his own entertainment, Joel is connected via internet 24/7. Joel is an urban dwelling and loves everything international cities have to offer such as dining and shopping. He travels to London on business and leisure. While shopping, he is not money conscious.
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31
Promotion
Jul.
Pre-Launch Launch Social Media Aug. Sept. Oct. Nov.
Post Launch Dec.
Jan.
Instagram Facebook Twitter Youtube Inside-Out Purple PR Event Publications WWD Style.com Business of Fashion
For the revealing of this new initiative Topshop will start promoting through Instagram and its Inside-Out blog. The general public will be told that Topshop/Topman will be making some visual updates to their London Oxford St. store. Following these post fashion publications such as WWD, Style.com, and Business of Fashion will post an article on their views on what it could possibly be to. In the later months followers of Topshop and Topman’s social media accounts will see sneak peeks of the A/W 2015 campaign that will be part of the initiative. The sneak peek campaign pictures will be posted on Instagram, Facebook, and Twitter with a behind the scene video on Youtube. On the first Friday of November Topshop/Topman will be opened for an extra hour for the revealing of the window. There will be an in-store event planned by Purple PR opened to the general public to shop and experience this new inititative. After our launch event all the publications we have invited will write their individual articles about their thoughts on the overall reveal and event. Based off of the reviews and customer feedback Topshop will eventually implement the Corning windows in their flagship stores internationally. 32
See Appendix E
32
33
33
35
Expenses Total
EXPENSES
£
Quote from Pharo Glass. $1,320 converted to pounds on XE Currency Converter 878.00 GBP per panel. Three windows are 2,634.00 being installed.
£
9,000.00
Glass Expense Glass Installation
Visual/Production Team £
220,000.00
£ Promotion £
£ Purple PR £ Catering £
Total Expenses
36
Cost from www.nationalcareersservice.direct.gov.uk and www.prospects.ac.uk. Four person visual/production team, 55,000 GBP annually.
44,000.00 Cost for a one, 4 color page ad in Teen Vogue, Vogue, and Nylon magazine from October to January. Costs from media kits from www.condenast.com and www.nylon.com. Monthly 290,007.00 rate for all three publications is £290,007.
Maintenance (Software Update)
Photographer
cost from www.servicemagic.co.uk
Percentage of salary cost from http://www.zanebenefits.com. Salary per employee £55,000
Training
Celebrities
NOTES
£
4,768.00
Cost from www.itjobswatch.co.uk. Based on hourly rate per visit of £298. Planning to have visits once a week from October to January.
Cost based on article by Harvey Farr www.evancarmichael.com. $250 converted to GBP on XE Currency Converter. Based on hourly rate of 166.00 GBP for 5 830.00 hours. Champagne, hour'derves and treats. $36,000 converted to pounds on XE Currency Converter. Cost from 24,000.00 www.cornerkitchencatering.com 600,000.00
Based on article by Ashley Lutz www.businessinsider.com Celebrity appearance from Cara Delevingne
Cost based on www.smallbusiness.costhelper.com. $3,000 £ 2,000.00 converted to pounds on XE Currency Converter. £ 1,197,239.00
36
37
Conclusion
According to research, this innovative initiative is feasible. We have determined this with our activity map, porter’s five forces and financial plan. The activity map shows that we can implement this initiative within a reasonable time frame for the holiday season. Porter’s five forces show a low competitive rivalry, which indicates a profitable opportunity that should be taken advantage of. The Financial plan indicates that the attainability of this initiative is achievable for Topshop/Topman. We have always been leaders in innovation. With Corning’s smart glass panels for window displays, we can conquer our competitors while giving our customers an exciting and new experience.
38
Appendix A TOPMAN
TOPSHOP
o United Kingdom: Over 300 o Armenia: 1 o Spain: 3 o Australia: 5 o Sweden: 4 o Bahrain: 1 o Thailand: 9 o Brazil: 3 o Turkey: 5 o Canada: 10 o Ukraine: 2 o Chile: 4 o United Arab Emirates: 6 o Cyprus: 4 o United States: 7 o Czech Republic: 1 - Chicago, New York (2), o Denmark: 6 Las Vegas, Los Angeles, o France: 1 San Diego, and Springfield, o Georgia 1 Virginia. o Germany 4 o Vietnam: 1 o Gibraltar: 1 o Hong Kong: 3 o Iceland: 2 o Indonesia: 8 o Ireland: 14 o Israel: 7 o Japan: 4 o Kazakhstan: 1 o Kuwait: 3 o Lebanon: 1 o Malaysia: 8 o Malta 1 o Netherlands: 2 o New Zealand 1 o Poland: 1 o Qatar: 1 o Russia: 17 o Saudi Arabia: 6 o Singapore: 5 o Slovenia: 1 o South Africa: 5
o South Africa: 3 o United States: 51 o Ukraine: 2 o Canada: 12 o Armenia: 1 o Brazil: 3 o Czech Republic: 1 o Chile: 2 o Georgia: 1 o Philippines: 16 o Isle of Man: 1 o Thailand: 9 o Jersey: 1 o Indonesia: 8 o Malta: 1 o Malaysia: 8 o Netherlands: 1 o Saudi Arabia: 5 o Singapore: 5 o Japan: 4 o Australia: 3 o Israel: 3 o Cyprus: 2 o Turkey: 2 o United Arab Emirates: 2 o Bahrain: 1 o Hong Kong: 1 o Kazakhstan: 1 o Kuwait: 1 o Lebanon: 1 o Qatar: 1 o Vietnam: 1 o United Kingdom: 250 o Russia: 16 o Ireland: 7 o Germany: 4 o Sweden: 3 o Spain: 2 o Ukraine: 2 o Armenia: 1 o Czech Republic: 1 o Spain: 2
Appendix B
Behind this fascinating technology is LCD, liquid crystal display. In between the panes of glass to create smart glass screens lively and touchable display are just a few layers of components. Directly behind the glass is the Polyethylene terephthalate film. PET film is a thermoplastic polymer resin. Then, behind the PET film, are spacer dots to enable touchscreen capabilities. After the spacer dots is an indium tin oxide conductive film. ITO conductive film serves as the transparent electrical component. In the middle is high molecular material. Within the high molecular material are the liquid crystals. Then the layers continue with the ITO conductive film, PET film and finally the glass. Smart glass screen displays are also Bluetooth and Wi-Fi enable.
Appendix C Bargaining Power of Supplier: Although Corning is the only supplier of this kind of technology, investing in Corning’s Smart Windows could be very risky for buyers. This also makes it difficult for them to enter as they would have to be at Corning’s mercy and Corning does not currently have experience in the fashion industry. Because of all previously stated, buyers are more likely to invest in easier, less risky substitutes like LED screens thus making Corning’s bargaining power low. Bargaining Power of the Buyer: Topshop’s buying power is also low because Corning’s Smart Windows would be a very large investment. The return on such an investment can be unpredictable and short lived because consumers might not react as positively as anticipated or Topshop’s competitors, many of whom hold space nearby on oxford street, could see Topshop’s success with smart windows and decide that such an investment would be worthwhile after all creating new entrants and more competition. Threat of New Entrants: This is slightly more complicated because the threat of new entrants is both high and low. Currently, Topshop’s competition would find this investment to be too risky to be worthwhile thus making the threat of new entrants low. However, this portion is dependent upon time. It is likely that Topshop will be the first fast fashion company to enter an investment of this kind. Once this initiative has been executed, Topshop’s competitors may find the opportunity of installing smart windows worthwhile making the threat of new entrants high. Threat of Substitute Products: The threat of substitute products is medium low. Corning’s Smart window technology is exceptionally innovative. There aren’t really any true substitutes that work like Corning’s windows. However, LED technology has been used in exterior displays at companies like Zara (cite) and could be considered the next best thing after Corning’s windows. These LED screens are not transparent and cannot be changed as easily. Typically they go behind windows, not a part of them, taking up valuable space. Other companies have included other smart technology like ipads in to their retail space but they don’t serve the same function.
Competitive Rivalry: The competitive rivalry for this initiative is medium low because there is no other fashion company participating in anything truly similar. Topshop would be a maverick for this kind of partnership. However, despite the barriers to entry, once Topshop’s competitors see Topshop’s success they are going to see the opportunity in doing the same kind of initiative, creating competition. :Overall Analysis Topshop/Topman, and anyone else who would want to do business with Corning (Corning), is at their mercy. This, as well as the risky return on investment would make this initiative less attractive to buyers. This also means that Topshop’s bargaining power is fairly low. The only bargaining power Topshop would have is that their use of Corning’s technology could inspire other fashion companies to do the same. Samsung is the only other company currently employing this technology so the use of it in the fashion industry could be beneficial to Corning (Corning). This would be a large investment for Topshop, particularly if they chose to employ it in multiple stores and they are in need of more innovative and eye catching displays that would separate them from their competitors. The threat of new entrants is both low and high. Any of Topshop’s competitors has the capability and the resources to employ this technology if they say the value of employing it. Zara, New Look, H&M, river Island (among others) would be able to employ this technology into their windows as well. Currently, most of these companies consider it too difficult and risky. This makes all the more important that Topshop and Topman be the first to come to market with this initiative. The threat of substitute products is medium-low. There are currently no true substitutes on the market for this kind of technology. There are LED screens, ipads, Smart mirrors but none of them truly function like Corning’s windows (Strange) (Yates) (Sterling). If Topshop intends to continually be successful and truly get everything out of their return on investment, they will they will have to frequently change and innovate the visual display depicted using this technology.
Appendix D Millennials feel at home in the digital world, they are a part of a highly multichannel digital culture. 54.8 million people are Internet users in the UK. Our customer have a much higher level of smartphone ownership and usage than any other age group in the country (eMarketer). Sixty-four percent find entertainment in social media and Internet. As millennials are highly engaged with social media on their smartphones, they are open to marketing influence via such channels. In March 2013 polling by comScore MobiLens, the most cited mobile advertising activity among UK smartphone users were reading social network posts from organizations/ brands/events, mentioned by 56.2% of 18- to 24-year-olds. And besides reading posts, many of these millennials were acting directly on advertising, with 26.7% stating they clicked on a social network ad and 25.3% receiving a coupon/offer/deal via social (eMarketer). More than simply engaging with advertising via mobile social, findings suggest that social networks are playing a key role in the path to purchase among UK millennials. 68% of those 18 to 34 had made social media-inspired purchases via mobile, compared with just 24% of those 35 to 54 (eMarketer). Consumers are driven, in that they are much more fashion-savvy these days, and demand much more than they did. The impact of the media means that everyone knows what the celebrities are wearing, where they got it, what the designers are showing on the catwalk and so on, so they want a bit of it too (McMinn). Forty-eight percent of our customer shops when they need to and love it. Thirty-eight percent shop downtown more han twice a month (Lachman). Millennials are money conscious and more product aware, they are illing to spend more for quality products. 73% of London shoppers stated they pay more attention to what is going on around them when shopping in the city than they do on their local high street and over half agreeing that London inspires them to try out new products and concepts. As an unrivalled entertainment hub, spending time in London is perceived as an occasion where shoppers can let their hair down and forget their financial worries. Indeed, two thirds of those surveyed claimed to spend more money when shopping in London compared to elsewhere and 58% state that they would buy something they wouldn’t normally buy when in London.
These results highlight London’s special appeal as a shopping destination in its ability to offer shoppers a whole experience that extends beyond just shopping. A massive 97% of respondents extend their London shopping trips to include other activities such as lunch (72%), meeting friends (57% women, 40% men) and visiting more than one shopping location within Central London (49%), (Outdoor Media Centre). Topshop / Topman customers are young fashion-conscious people on a budget. Based on research, Topshop/Topman customers are tech savy. They know and have to have all the latest and greatest technology. They are constantly connected via Internet for school, work or pleasure. Our customer lives near or in London and shops downtown more than twice a week. Our millennial tourist customer have the same habits and values. Having smart glass technology implemented into Topshop windows, the target customers will be more intrigued and keep coming back more than twice a week to shop. Tourists will spend more money than the average. Based on research from London shoppers, smart window technology implemented into Topshop/ Topman flagship on Oxford St will most defiantly bring in additional foot traffic to increase sales.
Appendix E
For the revealing of this new initiative Topshop will start promoting through Instagram and its Inside-Out blog. On these two channels the general public will be told that Topshop/ Topman will be making some visual updates to their London Oxford St. store. Once this official announcement is done fashion publications such as WWD, Style.com, and Business of Fashion will post an article on the announcement and their views on what it could possibly be. From the announcement on consumers and followers of Topshop and Topman’s social media accounts will see sneak peeks of the A/W 2015 campaign that will be part of the initiative and small hints on what it could be. The sneak peek campaign pictures will be posted on Instagram, Facebook, and Twitter with a behind the scene video on Youtube. On November 6th the London store will be opened from 9am-11pm with the window being revealed at 6pm with an in-store event allowing the public to shop an extra hour. During this event we will work with Purple PR to have live music and guest appearances from the models in the campaign. Guests will also have the opportunity to test out the window and post pictures on their Instagram with the #topshoplondon. With this hashtag Topshop/ Topman social media managers will repost some of these pictures on both the Topshop page and Topman page. After our launch event all the publications we have invited will write their individual articles about their thoughts on the overall reveal and event. Based off of the reviews and customer feedback Topshop will eventually implement the Corning windows in their flagship stores internationally.
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