Everlane Pop-Up Shop Project by Burke Price

TABLE OF CONTENTS 01.INTRODUCTION

02. COMPANY OVERVIEW

Executive Summary

About Everlane Company Information Market Analysis Communication Strategies Brand Analysis SWOT Analysis

03. STRATEGIC INITIATIVE

Chicago Market Analysis PESTLE Analysis Target Market Proposal

04. POP UP PROPOSAL

This is a mock Pop Up retail shop concept created for Professor Levyâ&#x20AC;&#x2122;s Retail Management class (FASM 410) in Winter 2017 by Burke Price, Connelly Rhea, and Jenna Hutson.

Design of Store Product Plan Promotional Plan Launch Plan Operational Plan Financial Plan Profit and Loss Statement

05. CONCLUSION

References and Resources

INTRODUCTION Everlane launched in 2011, after raising $1.1 million from investors, with a simple cotton tee. It now stocks nearly 200 different items, and sells tens of thousands of that same T-shirt every month. The brand has found its niche producing simple basics â&#x20AC;&#x201D; button-down shirts, V-neck sweaters, trousers both slim and slouchy â&#x20AC;&#x201D; in androgynous cuts, uncomplicated fabrics, and neutral colors. In stark contrast to fast-fashion brands that produce wastefully and under mysterious conditions. Everlane operates along the guidelines of being radically transparent- giving shoppers a full snapshot of how and where its products are made and how they reached their costing.

EXECUTIVE SUMMARY Everlane is entering a new age of their business endeavors. Since 2011, when they first launched their e-commerce company their sales have consistently exceeded their goals and continue to increase on a quarterly basis. As their business grows and becomes more popular among ethical shoppers Everlane has found the need to be more available. They have opened studio locations- In New York City and San Francisco. They have also opened two pop-up shops in the New York City area, The Cashmere Cabin in SoHo and the Shoe Park in Brooklyn. The success and importance of these pop ups did not go un-noticed by Everlane and the team believes that a pop up in a new city- Chicago would be equally as beneficial to the brand. Opening a location in Chicago would allow the brand to be introduced into a new market. This book will outline the location selection along with the process that lead to this brand extension opportunity for Everlane.

ABOUT EVERLANE In 2011 at the age of 25, Micheal Preysman founded direct-to-consumer brand Everlane, leveraging social media and the internet to bypass middlemen, keeping prices low and margins high. Everlane’s commitment to the concept of “radical transparency” and focus on high-quality, honestly priced basics has resonated with consumers and the company is reportedly valued at north of $250 million USD. Everlane is rethinking the way retail works, creating beautiful luxury basics with the lowest possible markups. For every piece made, they reveal their costs and tell the story of the factory and people behind it. In order to keep the customers excited and loyal to the brand Everlane releases new items every month. In order to stay on top of rapid production/ product release rate Everlane has a precise production schedule in which they work closely with their manufacturers to create a product their customers are sure to love over the course of 16 weeks.

CORPORATE INFORMATION MARKET ANALYSIS Push to incorporate more sustainable innovation into a fashion brand’s’ core product design and manufacturing processes—re-evaluating the entire fashion system itself. Consumers and brands have prioritized sustainable option fashion, which is transforming product design and the manufacturingMore than 65% of emerging market consumers actively seek sustainable fashion versus 32% or less in mature markets Global population growth, climate change, land and water scarcity, and increasing costs of key resources have a direct impact on the bottom line of every company. The speed of fast fashion has amplified these issues and magnified five fundamental problems for the fashion industry: Water usage, discharge of hazardous chemicals, human rights, labor standards, greenhouse-gases.

Everlane is currently privately owned but due to their radical transparency they are public about their earnings and company organization structure. The company is valued at north of $250 Million dollars USD. Due to their success Amazon has shown interest in purchasing their company. Everlane began as an online retailer in the US only order to keep costs low, but as they have expanded they have spread to other countries and have begun to open popup shops, design labs, and studio style showroom in San Francisco, New York, and Los Angeles. They are strictly a direct to consumer business. There are approximately 200 employees that work directly with Everlane at the moment but they indirectly employee more than 750 people if you include the employees at their manufacturing factories.

COMPETITORS DIRECT COMPETITION

“Quality is our highest priority. It’s in everything we do, from our design (always starting with the finest materials) and production (at the world’s most renowned factories, where much of the work is done by hand) to our personalized service.”

Where your life and your style meets ours — this is the Banana you love. Brilliantly versatile. Contemporary classics. The very best quality. This is Your Life. Styled. #itsbanana

Club Monaco is an international men’s and women’s lifestyle brand with a distinctly urban casual point of view, best defined as a play of opposites: mixing vintage with new, hard with soft and eclecticism with minimalism

Genuine People is a global fashion and lifestyle destination for fashion enthusiasts and home for established and emerging designers from East Asia.

Our dream is a simple one: we believe in the best quality clothing at the best possible price. This isn’t the current business model in fashion, so we’re here to change that.

We promise that everything we sell is Fair Trade, ethical and sustainable. Our products are made out of natural materials including organic cotton and wool. We partner with our artisans and producers and give back to make their communities stronger.

BRAND IDENTITY PERSON

PRODUCT

ORGANIZATION

SYMBOL

-Logo -Humanity

-Ethical

-Basics

-Sustainable

-Trendy

-Leather

-Transparent

-Classic

-Shoes

-Innovative

-Minimal

-Wool

-USA

-Clean

-Confident

INDIRECT COMPETITION MATT AND NAT, FAT FACE, THREADS FOR THOUGHT, ZADY, ALTERNATIVE APPAREL

PRICE

PRICE AND ACCESSIBILITY

ACCESSIBILITY

DISTRIBUTION MIX Everlane has a direct to consumer distribution strategy. Everlane does the whole cycle of pre-production, manufacturing, and distribution, and marketing in house. They source and own their own manufacturing plant (which can be visited by customers), they own their own distribution center based in Chicago. They do not sell to other retailers or wholesale.

COMMUNICATION MIX

PROMOTIONAL MIX

All of Everlane’s advertising is done through their social media platforms. They focus their efforts on being available to their customers and creating a successful online community. Their social media platforms include: Facebook, Snapchat, Twitter, Instagram. and a Blog.

Everlane has no permanent stores, no advertising budget, and no discounts sales promotions. Everlane’s promotional strategy is based off of “word of mouth”. They do most of their advertising on their social media accounts and by their refer a friend feature

STRENGTHS -Focused Assortment -Pricing strategies -Transparency -Quality made -Sustainability/Ethics/Certifications -Selective manufacturing -Stronghold on Millennial customer -what makes them stand out aside from transparency?

WEAKNESSES -Lack of sensory experience for customer -No brick and mortar -Limited brand history -Limited product assortment -Working against cheaper fast fashion brands -Limited color assortment mostly neutrals

OPPORTUNITIES -Expand internationally -Expand target market (childrenswear, Home) Brick and Mortar expansion -Collaborations with designers -Selling to Amazon

THREATS -Growth of fast fashion -Growth of competitive brands -Staying true to roots with growth -Economic threats to business -Changing shopping patterns of millennials and target customers -International brands -Competition having brick and mortar

MARKET ANALYSIS Chicago is the largest city in the Midwest with a population of nearly 2.7 million. The charming city boasts beautiful views of lake Michigan, with sandy beaches, fabulous shopping, world renowned museums, and champion sports teams, drawing on average 46.3 million tourists every year. Chicago as a city has grown over the years and has been on the top ten list best places to live for young professionals due to their reasonable priced housing markets and cost of living. The attractions and lifestyle in Chicago make it a top destinations for brands and retailers to open up store locations.

POLITICAL: Terrorism War Civil Strife Government Priorities Government Regulations New Administration ENVIRONMENTAL: Climate Change Resource Depletion Land Use Changes SOCIAL: Refugee Crisis Population Growth Demographic Change (age) International/National Strife Inequalities TECHNOLOGICAL: Cybercrime Warfare Renewable Energy Manufacturing Changes Social Media Web-Based Media LEGAL: National Legislation International Agreements Material/Chemical bans Taxation Harmful practices ECONOMIC: Energy and Agricultural Prices Transparency Demands Shifting to E-Commerce Rise of Circular Economy

PESTLE ANALYSIS

GOLD COAST / OLD TOWN, CHICAGO, ILLINOIS DEMOGRAPHICS Population: 12,000 Education: Mostly College Educated Median Rent: $1,560 Median House Hold Income: $135,000 Median Age: 41.4 years (Male) 37.7 years (Female) Average House Hold: 2 people

PSYCHOGRAPHICS -Social Butterflies -Bold -Established -Hardworking -Confident -Fashionable -Active -Trendy

SHOPPING HABITS -Mature Shoppers -Value Quality -Value Sustainablity -Value Luxury -Willing to Spend More for Better Products -Research their Options -Buy Staple Items that will Last

SALES POTENTIAL The Chicago retail industry has taken off in the past few years. Especially in the Gold Coast neighborhood where the streets boast with luxury retailers and trend setting boutiques. Adding Everlane to a shopping district like the Gold Coast will be successful due to the shopping habit of the people in the community.

LOCAL ATTRACTIONS Although all of the Chicago hotels are beautiful, there is so much to experience in Chicago with many Chicago sights and attractions! First, there is the Chicagoland area from 1,000 feet above at the John Hancock Observatory or the Willis Tower Sky-deck. Navy Pier, is an expansive play area over looking the waterfront. There are boat tours departing from Navy Pier and other city locations, and city bus tours, which point out significant landmarks and provide interesting information about Chicago and its history. Millennium Park at night Chicago IL. The Museum Campus, near Soldier Field, is home to The Field Museum and the Adler Planetarium, two excellent museums. See our museums section for more information. Also located at Museum Campus is the Shedd Aquarium, which is the worldâ&#x20AC;&#x2122;s largest indoor aquarium with more than 8,000 aquatic animals representing more than 700 species from all parts of the world. You can take a water taxi between Museum Campus and Navy Pier.

INFRASTRUCTURE

Chicago itself,and the Gold Coast neighborhood, are both extremely developed with visitor centers, transportation, malls, shopping, hotels, and restaurants

HEALTH AND SAFETY

Must maintain standards of all US Health and Safety Codes. Workers must be trained and educated on all US health and safety codes.

AREA FACTORS

The Gold Coast neighborhood of Chicago is extremely accessible. It is in a walkable neighborhood, near public transportation (bus and train) , with street and garage parking.

LEGAL REQUIREMENTS

- Must be APS Certified - Regular Inspections - POS Device Requirements - Receipt Requirements - Shelf Requirements - Refund Policy - Fire Safety Requirements

ZONING LAWS

The store is located in a neighborhood commercial district and must follow all requirements including: floor area restrictions, lot restrictions, front of store restrictions, trash restrictions.

TAXES

Taxes 10.25% a total of State, County, and City Sales Tax.

LOCATION: 1009 North Rush Street, Chicago, Illinois 60611 Situated on North Rush Street in the Gold Coast neighborhood of Chicago, our store is placed between a plethora of high end and trendy retailers such as: Prada, Barneyâ&#x20AC;&#x2122;s New York, Kate Spade, Frye, Ted Baker, Hermes, Madewell, and BHLDN.

STORE SPECIFICATIONS: 2,490 square feet of retail space Cost: $18,675 for the three months (7.5 per square foot per year)

THOMPSON

PIERCE

STORE DESIGN

VISUAL DISPLAY The visual display in the pop up is also done in a very minimal manner. The store is merchandised so that the product is neat and orderly, so it does not overwhelm customers who come in. There are two large tables, one in the front of the store for the womens clothing, and the other placed in the back of the store to house the mens section. These tables will hold a variety of pants, shorts, sweaters, and small leather accessories. The racks on the side walls will house hanging product: light jackets, tops, dresses, etc. The sitting area will have look books with a film of Everlanes latest collection playing on the TV. Customers will be able to complete their purchases at the marble check out station or individually with an employee via the Ipad POS.

OBJECTIVES

PROMOTIONAL PLAN

The Everlane pop-up shop is going to reach consumers in a new region and give them the opportunity to immerse themselves in the Everlane brand and aesthetic on a personal level.

We will have a launch party on Saturday June 3rd with refreshments from a local caterer and an appearance by the Chicago blogger and influencer Blair Staky from The Fox and She. During the pop-up shop we will post continuously on all social media platforms including Facebook, Instagram, and Twitter.

CONCEPT JUSTIFICATION Everlane is a popular online clothing store that is headquartered on the west coast. Bringing a pop-up shop to Chicago will give Everlane’s customer base there the opportunity to immerse themselves in the brand in a way they wouldn’t have been able to do via only online platforms. It offers consumers the means to interact with the brand in a new and intimate way.

DATE JUSTIFICATION Beginning in June will allow Everlane to take advantage of the change of weather and summer shoppers looking for cooler clothing to adapt after the winter season. It will span the summer months to give customers the chance to experience the store and shop throughout the warmer months for staple summer pieces to add to their wardrobe.

LOCATION JUSTIFICATION Opening the pop-up shop in Chicago is ideal due to the close proximity to Everlane’s only distribution center in the US, which is located fifty minutes outside of the city.

OPERATIONAL PLAN We will have a store manager and assistant store manager that will assist with the setup and breakdown of the pop-up shop as well as be responsible for the day-to-day operations of the store for the duration of the summer shop. We will also have five general sales associates who will assist and greet customers and one delivery driver who will handle local ship from store deliveries.

TIMELINE

PRODUCT ASSORTMENT

ASSORTMENT PLAN

Planned Purchases, Retail: $141,468 Average Retail Price: $125

SIZING:

% $ Unit Sizes Total Purchases Purchases XXS 10% $14,147 113.1744 XS 15% $21,220 169.7616 S 20% $28,294 226.3488 M 22% $31,123 248.98368 L 18% $25,464 203.71392 XL 15% $21,220 169.7616 100% $141,468 1131.744

CLASSIFICATION:

% $ Unit Avg. Total Purchases Purchases Retail Tops 25% $35,367 707 $50 Bottoms 20% $28,294 283 $100 Dresses 15% $21,220 170 $125 Acessories 20% $28,294 141 $200 Shoes 2 0% $28,294 126 $225 100% $141,468 1427

PRICING:

% Price Range Total $0-$50 15% $50-$100 30% $100 - $199 25% $200 - $299 20% $300 - $399 10% 100%

COST OF POP UP SHOP

SALES FORECAST

FINANCIAL PLAN

PROFIT AND LOSS STORE PROFIT: TOTAL EXPENSES:

TOTAL PROFIT:

$212,202 $117,025

$95,117

SOURCES http://www.city-data.com/neighborhood/Gold-Coast-Chicago-IL.html https://segmentationsolutions.nielsen.com/mybestsegments/Default. jsp?ID=20&menuOption=ziplookup&pageName=ZIP%2BCode%2BLookup&filterstate=&sortby=segment_code&prevSegID=CLA.PZP http://www.loopnet.com/Listing/19288091/1009-N-Rush-Chicago-IL/ http://www.referralcandy.com/blog/5-ways-fashion-retailer-everlane-earnedinsane-word-of-mouth/ http://www.referralcandy.com/blog/apparel-referral-program-examples-everlane/ https://www.businessoffashion.com/articles/founder-stories/michael-preysman-on-iterating-everlane-and-fixing-fashion-retail https://www.forbes.com/sites/forbesstylefile/2014/11/20/designer-spotlight-everlane-making-retail-markup-transparent/#712aebc74776 https://qz.com/630567/everlane-the-san-francisco-clothing-company-that-creates-t-shirts-like-theyre-iphones/ https://www.businessoffashion.com/articles/founder-stories/michael-preysman-on-iterating-everlane-and-fixing-fashion-retail https://www.bls.gov/spotlight/2012/fashion/ https://fashionunited.com/global-fashion-industry-statistics https://www.businessoffashion.com/articles/tags/organisations/everlane https://www.businessoffashion.com/articles/founder-stories/michael-preysman-on-iterating-everlane-and-fixing-fashion-retail http://www.referralcandy.com/blog/5-ways-fashion-retailer-everlane-earnedinsane-word-of-mouth/

BURKE PRICE CONNELLY RHEA JENNA HUTSON