Ecochic Boutique Business Plan by Candice Alvarado

Business Plan

Candice Alvarado Fashion Marketing & Management Spring Quarter 2011

Table of Contents Executive Summary………………………………………………………………………3 Mission Statement Funding Success Factors Summaries The Company Overview………………………………………………………………...18 Ownership & Organization Overall Strategy Market Analysis…………………………………………………………………………32 Customer Profile Client Profile Target Market. The Competition Marketing Environment Marketing Strategy Plan………………………………….……………………………116 Promotional Plan Tactical Plan Pricing Plan Distribution Plan Operations Plan…………………………………………………………...……………152 Inventory Control Management Functions Human Resources Facilities Maintenance Customer Service Financial Plan…………………………………………………………………………..165 Appendices Appendix A Appendix B Appendix C

Executive Summary

Mission Statement The idea for the Ecochic is to make chic and fun clothing for women who are concerned about sustainability and environmental affects of the product and merchandise they chose to purchase. Our goal is to make fashion green and eliminate the wasteful processes many manufacturers use to make synthetic fibers through the use of chemicals and pollutants that are harmful to both our environment and ourselves as human beings. We pride ourselves on our efforts to make clothing that is environmentally friendly that also look good, feel good and make our consumers feel good wearing them. From choosing the materials including fibers and fabrics all the way to the final finishing processes, our goal is to make the earth a cleaner and greener place to live while still allowing fashionable women to look good in clothing that is similar to those produced in harmful factories. Our line is made out of both organic natural fibers like cotton, hemp and bamboo as well as recycled fibers such as recycled plastic bottles and recycled spandex remnants.

“Ecochic, Chic Eco-Friendly Fashion for Eco-Friendly Fashionistas”

Product Eco-friendly, yet chic, fashionable clothing and accessories for the eco-friendly fashionistas in Seattle and its surrounding neighborhoods including an exclusive Ecochic line as well as merchandise from other eco-friendly brands. We will feature products from several local designers and eco-friendly brands, as well as nationally known eco-friendly brands. We will go directly through each brand, using them as a direct vendor for their products.

Ecochic Ecochic is our in-house brand, exclusive to our boutique, which is designed and produced locally, through eco-friendly processes to ensure that our brand is helping, not hurting our environment.

Cameron Levin Couture Cameron Levin Couture designs feature couture cocktail dresses and ball gowns that are hand-draped, made out of fine, natural fabrics and embellished with vintage ornamental motifs. Ecochic loves that Cameron works exclusively with fine, natural textiles, and handsculpts and constructs her own designs. Ecochic will feature a selection of Cameronâ&#x20AC;&#x2122;s cocktail dresses made out of recycled, vintage fabrics and materials. Contact: E-mail: Cameron@lovecameron.com

5 Â

Del Forte DenimDel Forte denim is the new environmentally friendly jean of the future. Masterfully combining the art of premium jean construction and environmental activism, Del Forte Denim is not just on the eco-friendly denim wagon, they’re driving the hybrid! Partnering with the Sustainable Cotton Project (SCP) of the California Central Valley, Del Forte jeans are organically homegrown right here in the USA. Providing 100 percent organic fashion forward styles for those of us who aspire to be beautiful inside and out, these premium jeans are designed with the environmentally light-footed in mind. Say goodbye to carcinogenic pesticide and herbicide contaminates in your wardrobe and step into a new era of eco-luxury with Del Forte Denim. Contact: Email: Info@delforte.com

FlutterBudget Jewelry – Flutterbudget Jewelry is Vintage Made Modern: jewelry crafted from vintage components, thrift store treasures and reclaimed lovelies. Seattle artist and vintage addict, Shannon Peters, creates one-of-a-kind pieces pairing stunning vintage and recycled goods with an eye for clean design and interesting color and texture combinations. Contact: E-mail: Flutterbudgetbuttons@gmail.com

Loomstate Organic – Loomstate was founded as a casual brand dedicated to creating demand for certified organic cotton using socially and environmentally responsible methods of production. Loomstate Men's and Women's collections are inspired by the roots of classic American casual style born of the positivity and activism of youth subcultures over the past 40 years. Updated through modern fits, constructions, uncompromised attention to detail, and rendered in the highest quality and most comfortable 100% certified organic materials. Each piece is created to have livedin character and comfort, from washed and softened fabrics to tumbled and aged hardware, achieving timeless style rooted in environmental and social sustainability. Contact: Loomstate Organic Attn: Wholesale 180 Orville Drive, Ste 100 Bohemia, NY 11716 Telephone: 646-827-7579

Strut Shoes – A local shoe boutique, owned & operated by a Seattle mom, the store caters to women, children, & men offering carefully selected stylish shoes from quality comfort brands like Tsubo, Merrell, Naturino & CROCS. Strut believes that shoes can feel just as great as they look. At Strut, comfort and style are no longer mutually exclusive! We invite you to visit and try on some shoes that will put a little bounce in your step and renew your sole.

Twice Blushed “Twice Blushed” is a design concept that remakes a once-loved bridal gown into a unique, one-of-a-kind work of art that represents an environmentally conscious approach to the wedding dress. Bridal gowns hold layers of beautiful, reusable materials. With a little care these materials can be re-designed into a modern style that fits a new wearer in a customized, personal way. In addition to being a sustainable practice, reusing materials lowers the cost of the dress and allows for more delicate and detailed hands-on work to enhance the design. Contact: Vernell Studio 5228 20th Ave NW Seattle WA, 98107 Telephone: 206-963-9284 Email: info@twiceblushed.com

Vintage CreationsOne of a kind, 100% recycled clothing and accessories, proudly made in Seattle, Washington. Vintage Creations was founded in 1998 by Beth Nielsen. Using vintage and end run fabrics, each Vintage Creations piece is unique or a limited edition. Vintage Creations is based in Seattle, WA and the line is available in boutiques across the US and Canada. Contact: E-mail: Vintagebethann@aol.com

Product Assortment

The Product Life Cycle is important for any fashion retailer to understand, or any retailer for that matter. The Product Life Cycle chart above illustrates the five sales of sales production a product goes through from the early stages of development to when the product is no longer selling and declines in sales. Ecochic will offer a variety of products in various lifestyle stages. The above graph shows the product life cycle from beginning to end in relation to the amount of revenue. As a new product is introduced, revenue begins to increase as the product reaches the growth stage. After the product is well-known and widely available, it has reached the maturity stage where revenue is highest but is not increasing. Ecochic will use this chart as a way to predict future sales, by looking at what products can be categorized in each cycle and then decide the necessary amounts to be purchased in order to reach our maximum sales potential. We have listed the products in the table below found in our first purchase orders by brand, product, price and last but not least the product life cycle. Ecochic’s current product offering includes products from both the Growth and Maturity stages to ensure that our products will be successful sellers and produce a profit for the boutique.

Brand Ecochic

Cameron Levin Couture

Del Forte Denim

FlutterBudget Jewelry

Loomstate Organic

Product/Style Charlotte Top Olivia Top Quin Top Julia Top Bella Top Mila Skirt Callie Skirt Ava Dress Grace Dress Stella Pant Ella Pant Jane Pant Avery Pant Cameron Dress Emerald City Dress Flutter Dress Feathered Dress Tiara Dress Green Peace Dress Princessa Dress Fab Fur Dress Kara Dress Calla Jean Dahlia Jean Eugenia Jean Ivy Jean Tulip Jean Tiny Blooms earrings Tiny Sunshine earrings Aqua Leaves earrings Gold cluster earrings Sparkle cluster necklace Brass columns earrings Lemon flower necklace Stacked metal earrings Pink Daisy necklace Lock and Key necklace Prussian blooms earring Cayman Top Stargazer Top

Retail Price $34.00 $34.00 $34.00 $34.00 $34.00 $48.00 $48.00 $84.00 $84.00 $108.00 $108.00 $108.00 $108.00 $148.00 $198.00 $128.00 $128.00 $128.00 $128.00 $128.00 $128.00 $128.00 $138.00 $138.00 $138.00 $138.00 $138.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $40.00 $24.00 $34.00 $32.00 $24.00 $44.00 $44.00

Product Life Cycle Growth Growth Growth Growth Growth Growth Growth Growth Maturity Maturity Maturity Maturity Maturity Maturity Maturity Maturity Growth Maturity Growth Growth Maturity Maturity Growth Growth Growth Maturity Maturity Maturity Maturity Maturity Maturity Growth Growth Maturity Maturity Maturity Growth Maturity Growth Maturity Growth Growth Maturity Maturity

10 Â

Reef Top Moray Top Sumba Top Kharma Jeans Harmony Jeans Revelation Jeans Pickford Jeans Mojave Pant Knit Legging Tahiti Pant Thalisa Dress Zostera Dress Cynaria Dress

$44.00 $44.00 $44.00 $198.00 $198.00 $198.00 $198.00 $168.00 $98.00 $168.00 $198.00 $198.00 $198.00

Maturity Maturity Maturity Maturity Maturity Maturity Maturity Maturity Maturity Maturity Maturity Maturity Maturity

11 Â

Location

(SeattleRentals.com)

3515 Fremont Avenue North, Seattle, WA 98103 Located in the Fremont Neighborhood

Fremont Population: 10,970 Area: 1.416 square miles Population Density: 7,748 people per square mile

The Seattle Metropolitan Area (King County) Population in July 2009: 617,334 Area: 83.9 square miles Population Density: 7360 people per square mile

12 Â

Success Factors

(Loopnet.com)

•

Located in the retail core of the Fremont neighborhood

•

High traffic streets connecting the downtown Seattle core to the surrounding neighborhoods

•

Ecochic guarantees quality customer service, and educated sales people to provide the highest level of service to our customers.

•

Number of clothing and accessory shops/boutiques in Seattle: 262 – this shows that there is a demand for small specialty stores and that these types of retailers are successful in Seattle.

•

Near many local tourist & historical attractions drawing people from all over to the Fremont neighborhood.

There is a very high existing demand for eco-friendly clothing in the Northwest, especially in the greater Seattle metropolitan area. With only one competitor boutique, located in the Wallingford neighborhood, Ecochic has a largely underserved market to tap into. The women of Seattle live their lives being concerned about the well being of their communities and environments, by shopping at local organic, fair trade groceries like Whole

Foods, PCC and Pike Place Market, the market is missing the option to purchase clothing in this category. The Downtown Seattle Association conducts an annual Street Level Business Inventory in Center City Seattle. It is conducted during the third quarter of each year and focuses on eleven neighborhoods in Center City Seattle. In addition to individual businesses, fourteen large retail areas with multiple units under one roof are also included in the study.1 2009 Street Level Retail & Services Inventory: •

Total number of businesses occupied: 4,917

•

Number of restaurants, cafes and bars in Center City: 1,008

•

Number of coffee shops* in Center City: 244

•

Number of arts & cultural businesses (including Art Galleries): 137

•

Number of clothing and accessory shops: 262

•

In 2009, 568 addresses were classified as either vacant or under construction. This is 10 percent of the inventory.

This information shows us that Ecochic will be accepted by this market, and there is a strong presence of retail stores, specializing in clothing.

"Economic Information: Introduction." DSA News: October Newsletter. Oct. 2010. Web. 02 Nov. 2010.

<http://www.downtownseattle.com/content/businesses/EconomicInfo.cfm>.

Section Summaries Company Overview The company overview highlights the overall structure and strategy for the Ecochic company as well as the Ecochic boutique. This includes ownership and organization, a timeline of scheduled events, company objectives, resources, and problems that can be expected. • The basic business concept including the service and inventory offered, type of store and desired customer experience. • The timeline of scheduled events is shown through a GANTT chart – for twelve months prior to the boutique’s grand opening. • Short-term and long-term company objectives are highlighted and outlined with actions that if completed would achieve the goal. Market Analysis The market analysis portion of Ecochic’s business plan covers the consumer profile, including demographics and psychographics as well as the marketing environment in which the consumer lives. • Target consumer is eco-friendly women between the ages of 18 and 45 with a desire to purchase green fashion and reduce their carbon foot print. • The Ecochic boutique is located in the Fremont neighborhood in Seattle, Washington • Government issues are a clear indicator of local issues and local political structure and ideals. • Economic indicators can be used to gauge the economy and how a business must operate in order to be successful. • Tax and licensing information is easily accessible and there are many organizations that assist small business owners in licensing their business and finding important information.

Market Strategy Plan The market strategy portion of the business plan includes all aspects of promotions, pricing and distribution. • Ecochic will use eco-friendly methods of promotion and advertising, with a focus on social media and electronic methods in order to save the trees. • Maintaining an image as a high-end, eco-friendly boutique for the women of Seattle will show in our marketing and community involvement efforts. • Ecochic will feature our own in house line, as well as clothing and accessories from other local designers. • The price point of the boutique will feature items from $40-$200 dollars, depending on the item. Operations Plan The operations plan covers all aspects of inventory control, management functions, human resources, facilities maintenance and customer service. • Daily, weekly and monthly inventory will be kept electronically through a POS operating system, with a quarterly hand-count inventory completed by an outside company. • Owner, Candice Alvarado along with two part-time assistant managers will oversee the Ecochic boutique’s operations. • Ecochic will work to use eco-friendly cleaning supplies and hire a “green” cleaning company to professionally clean the boutique once a month. Financial Plan The financial plan covers all of the financial aspects of the Ecochic boutique for the first year of business, including the star-up budget, predicted sales, income and profits as well as the planned opening and closing inventories and operating costs. • Ecochic will plan store sales based off of local stores previous sales and available financial resources and inventory.

• With investments from the owner, as well as private investors and credit unions, Ecochic will obtain the necessary funds in order to successfully open and run a retail boutique in its first years of operations. Appendices The appendices feature a circular including Candice Alvarado’s personal qualifications through the publication of her resume, prospect letter, cover letter and recommendation letters. This section also holds all citations and formula sheets for all sources throughout this business plan. Last but not least, this section also includes a floor plan and proposed interior décor, examples of inventory and buying decisions. • Qualifies the writer of the Business plan as an educated, organized and experienced individual. • Gives credit where credit is due – citing sources used for the collecting of information throughout the plan. • Shows the proposed layout and boutique design as well as potential items to be sold at the boutique.

Company Overview

Ownership & Organization Ecochic’s goal is to bring eco-friendly, yet chic, fashionable clothing and accessories to the eco-friendly fashionistas in Seattle and its surrounding neighborhoods including an exclusive Ecochic line as well as merchandise from other eco friendly brands. Through a boutique with a proposed location in Seattle’s Fremont district as well as an online store, we will provide our customers with quality eco friendly, sustainable clothing at a price point that is reachable for our target market, while still competitive in the market. Ecochic is not just a brand name, but it is a lifestyle and we want to ensure our customers that the Ecochic brand is true to their mission and beliefs through each aspect of business. Our goal is to make fashion green and eliminate the wasteful processed many manufacturers use to make synthetic fibers through the use of chemicals and pollutants that are harmful to both our environment and ourselves as human beings. We pride ourselves on our efforts to make clothing that is environmentally friendly that also look good, feel good and make our consumers feel good wearing them. From choosing the materials including fibers and fabrics all the way to the final finishing processes, we are on a mission to make the earth a cleaner and greener place to live while still allowing fashionable women to look good in clothing that is similar to those produced in harmful factories. There is a very high existing demand for eco-friendly clothing in the Northwest, especially in the greater Seattle metropolitan area. With only one competitor boutique, located in the Wallingford neighborhood, Ecochic has a largely underserved market to tap into. The women of Seattle live their lives being concerned about the well being of their communities and environments, by shopping at local organic, fair trade groceries like Whole Foods, PCC and Pike Place Market, the market is missing the option to purchase clothing in this category.

“Ecochic, Chic Eco-Friendly Fashion for Eco-Friendly Fashionistas”

Legal Form & Ownership Ecochic will operate as a Limited Liability Corporation (LLC) as it offers liability protection of a corporation, while having the tax flexibility of a partnership. The benefits of an LLC is that there is limited personal liability for business debts and obligations and simplified record keeping since annual meetings and recordings of minutes are not required. An LLC also receives lesser taxation than other legal forms of ownership, allowing owners to report their share of profits or losses in the company on their individual tax returns. Therefore, the Internal Revenue Service (IRS) will not assess taxes on the company, avoiding the "double taxation" that many corporations experience.

20 Â

Overall Strategy Timeline of scheduled events for 12 months prior to opening Gantt Chart Description: Ecochic Seattle, WA (Fremont) 12 months Prior to Grand Opening Saturday, February 11th, 2012 Initial Location Planning: February-July Market Research: February-May Research Local Market Pinpoint Target Market Consumer Analysis Promotional Planning: May-July Plan Promotions Design Promotions Begin Promotions Store Layout/Design: May-December Lease Store Space: May Sign Lease Contracts Hire Contractor Hire Interior Designer Design Theme & Store Layout: September Choose Color Scheme Choose Fixtures/Displays Choose Materials Product Planning: June-February Plan Inventory: June Order Product Plan Product Displays Receive Product Merchandising: January-February Visual Displays Product Displays Store Inventory Hire/Train Employees: November-February Hire Manager(s) & Employees: November-December Open Interviews Hire Employees Employee Introduction Training: January

23 Â

Store Policies/Procedures Technology & Registers Product & Brand Knowledge Opening Day Event Planning: November-February Promotional: November-February Storefront Display Mailings Publicity Event Planning: November-February Offers/Sales/Giveaways Confirm Catering Final Event Plan Soft Opening: Wednesday, February 8th, 2012 GRAND OPENING: Saturday, February 11th, 2012

Company Objectives Short-term goals & objectives for the first year of business 1. Penetrate an underserved market •

Advertise in Fremont, Downtown Seattle and surrounding cities and neighborhoods: Queen Anne, Capitol Hil, Ballard, Wallingford, Greenlake, North Seattle, Lynwood, Kirkland and Bellevue up to a year before opening.

•

Use sales and product reports in order to shape our inventory and product offerings to our market on a monthly basis.

•

Create awareness and anticipation of location by creating a window display in September of 2011.

•

Strong advertising push to Target Market consumers starting in January 2012

2. Achieve a greater market share from our competition (direct and indirect) • Upon the store’s grand opening, we will be giving away exclusive shopping passes to the first one-hundred customers. • By creating a sense of exclusivity, and a reason for customers to return to Ecochic for all of their fashion needs it will help to increase our market share. • During the first three months of business, we will offer an increased amount of sales and offers to customers to get them coming into our store in order to create a buying habit. • The atmosphere of our store is also crucial to our ability to pull a greater market share. Educated, well-trained, friendly, and upbeat sales associates are key to the success of this goal. Therefore there will be monthly sales team meetings to discuss selling techniques and complete sales training activities. 3. Increased awareness of eco-friendly fashion • Begin the advertising and awareness of the store’s opening a year before opening.

• Increased promotions and sales in the first year of operation to give Ecochic the image that it is affordable and fashionable. • Make sure that upon opening in February 2012, all employees are properly trained and educated on eco-friendly fashion and will be of benefit the store in a way that will create positive customer experiences, this will start January 2012. • Create an image that Ecochic is not just a boutique or a brand, but a lifestyle through the offering of a variety of eco-friendly products from clothing to accessories to beauty products through the store experience to the use of social media and advertising. Long-term objectives for three-five years after store opening 1. Wholesale the Ecochic brand to local boutiques and eco-friendly fashion retailers • Develop Ecochic line and begin production in June of 2011. • Test line in the Ecochic boutique and refine designs and meet the target consumer’s needs and wants during the first year after opening the boutique. • Begin planning for the production of the Ecochic line on a higher production scale in June of 2012 to pitch to local retailers by June 2013. 2. Successfully operate online shop: Ecochic.com • Hire web designer in January of 2013 for website production featuring the Ecochic boutique and what’s available in store, no online sales until 2015. • Track visitors of the Ecochic.com website, by using analytical data from quantcast.com each month from January 2013-January 2014. • Meet with web designer to work on the design of the online shop. • Begin planning an increased inventory upon the start-up of the online shop in 2015. 3. Open a second store location in Bellevue, Washington • Begin market research and search for potential store locations in the Bellevue area in January of 2015. • Work to lease a store space for a short period of time (1 year or less) in or near Bellevue square in June 2015.

• Collect capital investments from owner’s funds, friends, family and obtain a bank loan in June 2015. • Begin the necessary planning for a store opening in June of 2016.

Company Resources Management Structure & Functionality As a small retail boutique, it is crucial to have an organized management team that successfully works together to make all business decisions concerning the Ecochic company and brand. All people will report to the boutique owner and manager; Candice Alvarado. The owner will handle all aspects of the business, including operations from buying to employee training. However, given that as the owner of a small boutique has many tasks that must be completed, there will be two assistant managers hired to ensure there will be a manager in store at any given time. One of these managers will also be asked to plan and execute all visual merchandising aspects in the boutique. Working under the two assistant managers will be four well trained, and highly educated sales associates. Two of these associates will be hired and formally trained in full-time lead sales positions while the other two will be hired and well-trained as part-time sales associates. The sales team will be responsible for educating the customer on the brand, providing exceptional customer service and working to meet sales goals in order to promote the success of the Ecochic boutique.

Financial Ecochic LLC will be funded by a number of means during its first years of business in order to create enough capital to successfully start the business by creating the ability and opportunity to supply enough merchandise to our consumer. This funding includes a personal investment from the owner, Candice Alvarado of 30% or $100,000, while another 30% or $100,000 will be received from a number of investors and family members, $30,000 from parents; Ralph and Lori Alvarado, $20,000 from friend Elizabeth Lee, $15,000 from friend Amanda Austin, $15,000 from cousin Lisa Boaro, $10,000 from sister Carli Alvarado and a number of small investments totaling $10,000.

To cover the remaining 40% of the initial investment into Ecochic LLC will borrow approximately $130,000 from Seattle Credit Union, BECU through a small business loan.

Market Scope The Fremont district is located in the midst of metropolitan and residential areas and includes some high trafficked streets connecting the downtown Seattle core to the surrounding neighborhoods. The population of Fremont is 10,970 people in an area of 1.416 square miles with a population density of 7,748 people per square mile. While the Fremont area is quite dense, we will be pulling consumers from all over the Seattle Metropolitan area and King County, this area has a population of 617,334 people in an area of 83.9 square miles with a population density of 7,748 people per square mile. Fremont is an attractive district to both residents and tourists as it is home to many historical attractions, restaurants, bars, shops, art galleries, business and swanky apartments. Although Fremont is located minutes away from the bustling downtown, it remains a tight-knit community of both local and international businesses and companies.

Basic Orientation Margin & Product Eco-friendly, yet chic, fashionable clothing and accessories for the eco-friendly fashionistas in Seattle and its surrounding neighborhoods including an exclusive Ecochic line as well as merchandise from other eco-friendly brands. We will feature products from several local designers and eco-friendly brands, as well as nationally known eco-friendly brands. We will go directly through each brand, using them as a direct vendor for their products. These brands include Cameron Levin Couture, Del Forte Denim, Flutterbudget Jewelry, Loomstate Organic, Strut Shoes, Twice Blushed and last but not least, Vintage Creations. As a small retail boutique, it is important to allow a substantial profit to be made off of any sales, big or small in order to keep the business in the positive day by day. Ecochic has formed a goal of maintaining a Cumulative Markup percentage of 300%, which is the goal for the achieved markup percentage on all goods available for sale from the beginning of a

29 Â

given period or in our case, season. Below is a detailed list of product segments and their corresponding markup percentage. Ecochic expects to spend around $200,000 on merchandise within the first year, with an opening stock for the year of $30,000 and a closing stock of $50,000 (at cost). Cost of Goods Sold/Average Inventory at Cost = Stock Turnover Ratio For example: the cost of goods sold is $200,000, and our opening stock for the year starts at $30,000 and the closing stock is $50,000 (at cost). ($30,000+$50,000)/2 = $40,000 $200,000/$40,000 = 5 times Therefore, Ecochic’s stock turnover ratio will be five times a year, which allows for more product to cycle through our store, and since we will be offering limited selection, it is expected that our ratio will be higher than average (3.8-4.4) being that we are a boutique with a higher projected profit margin.

Problems expected & Contingency plan • A competitor could open nearby and begin to carry the same lines and brands. o Alter product assortment, offer new and fresh products. o Reach out to consumers, including special promotions and sales. o Train employees in competitive sales training to ensure that we provide a better customer experience. • In a hurting economy, there is possibility that less people shopping at higher priced boutiques. o Offer consumers an incentive to shopping at Ecochic such as spend $50 and receive $10 your next purchase. o Make the Ecochic shopping experience worth the higher price consumers pay for eco-friendly fashion. • Offering a “new” line and new product assortment has risks of not being accepted. o Begin advertising and promotions prior to store opening in order to create a buzz around Ecochic and the eco-friendly fashion industry. o Educate and train sales staff on eco-friendly fashion to educate the customer on the importance of making fashion “green”. • Located in a retail district – with many secondary consumers and competitors o Stand out from the competition whether indirect or direct o Give customers a “need” or “want” to have our product such as advertising and promotions for holidays and special events. • Possibility of over buying or not buying enough inventory for a season. o Look at competition and local boutiques – how often inventory sells out and look at traffic patterns to anticipate amount of traffic and daily, weekly and monthly sales. o Make educated buying decisions, as a small boutique it is important to find an inventory that sustains your boutique without creating a large amount of back stock, or a sell out.

Market Analysis

32 Â

Customer Profile Demographics: • Females between the Ages of 18-50 • With a focus on the young adult women ages 18-36 • Mid to upper income levels (35,000+) • Both single and married females, and all females no matter what marital status • College Students/Graduates • Daughters buying for mothers • Secondary Consumers - Mothers/Fathers buying for daughters Age Male % of Males 0-9 years: 10-19 years: 20-29 years: 30-39 years: 40-49 years: 50-59 years: 60-69 years: 70-79 years: 80+ years: All Ages:

7.7% 5.9% 25.2% 25.7% 16.7% 10.3% 3.7% 2.9% 1.9% Male:

Median Ages:

Female % of All

% of Females

3.8% 2.9% 12.5% 12.7% 8.3% 5.1% 1.8% 1.4% 1% 49.5%

7.1% 5.5% 25.6% 23% 16.4% 9.9% 3.9% 4.1% 4.6% Female:

33.3 yrs.

Both % of All

% of All

3.6% 2.8% 12.9% 11.6% 8.3% 5% 2% 2.1% 2.3% 50.5%

7.4% 5.7% 25.4% 24.3% 16.5% 10.1% 3.8% 3.5% 3.3%

34.1 yrs.

33.7 yrs.

(Zipskinny.com)2 Social Indicators Educational Achievement: (among people 25 years or older)

Less than 9th grade: 9th-12th grade (nongrad): High school graduate: Some college: Associate degree: Bachelors degree: Graduate/Professional: High school or higher:

1.1% 2.9% 10.6% 17.2% 6.5% 39.2% 22.5%

Marital Status: (among people 15 years or older)

Never married: Married: Separated: Widowed: Divorced:

48.5% 35.3% 1.2% 3.5% 11.4%

96%

(Zipskinny.com)

2 "ZIPskinny Demographic Information for 98103 - SEATTLE WASHINGTON." ZIPskinny - Get the Skinny on That ZIP (demographics by ZIP Code). 2010. Web. 10 Oct. 2010. <http://zipskinny.com/index.php?zip=98103>.

Economic Indicators Household Income <$10,000 5.7% $10,000-$14,999 5.1% $15,000-$24,999 9%

Occupation Mgt./Professional Service

55.7% 10.6%

$25,000-$34,999

13.4%

Sales/Office

23.5%

$35,000-$49,999 $50,000-$74,999

17.8% 20.6%

Farm/Fishing/Forestry Construction/Extraction/Maint.

0.1% 4.3%

$75,000-$99,999

12.3%

Production/Transportation

5.8%

$100,000-$149,999

11.1%

Unemployment/Poverty

$150,000-$199,999 $200,000+

2.5% 2.6%

Unemployed Below Poverty Line

(among employed persons over 16)

3.1% 8.8%

Median Household Income: $49,044

(Zipskinny.com)

Median household income 2008: Fremont: $61,698 Seattle: $61,786 (city-data.com)3

Median rent in 2008: Fremont: Seattle:

$950 $874

(city-data.com)

3 "Seattle, Washington (WA) Profile." Stats about All US Cities. 2010. Web. 10 Oct. 2010. <http://www.city-data.com/city/Seattle-Washington.html>.

Psychographics: • Fun women with a love for fashion • Educated women with the desire to live an eco-friendly life • Women concerned about the sustainability of products they buy • Older women who have the desire to be young and environmentally friendly • Outgoing personalities • Women who like to indulge/enjoy spending money on clothes Free-time Activities: Yoga Shopping

Socializing Dating

Beauty (Hair, Nails, Spa)

Cooking

Entertaining

Education

The Ecochic consumer is sure to calm her aura by attending a before or after work hot yoga session at Seattle Bikram Yoga – Fremont. The women of the Seattle enjoy to spend their time browsing boutiques for that perfect wardrobe in Seattle’s most swanky shopping districts like Capitol Hill, The Downtown retail core, Belltown and Fremont. After a long days work, women of all ages can be found in local bars and nightclubs such as Amber in Belltown and The Back Door in Fremont. With a highly educated, professional minded population, women have less and less time to met the “perfect man” and now are using online dating sites like match.com and social media like facebook to meet men. Even with the present “green” movement, women in the northwest are often viewed as more liberal and even stereotyped as “hippies”. However, there are local salons and spas thriving off of the business of consistent clientele. Salons frequented by the Ecochic girl are Rain and Aveda. The Ecochic consumer enjoys shopping for fresh and local produce and groceries available at the Fremont farmers market, Pike Place Market and Whole Foods. These women of Seattle pride themselves as they prepare a 5-star meals with 100% local ingredients. From cooking locally grown, organic meals with ingredients from Whole foods, to hosting swanky wine nights featuring Eastern Washington vino aged to perfection to movie nights watching Sleepless in Seattle with their significant others. With three major universities; The University of Washington, Seattle Pacific University and Seattle University there is a large number of young professionals who have attended these universities and are now working in the

Travel Exercise

Outdoor Activities

Volunteering

Attending Benefits

Decorating her home

Seattle area. The Ecochic woman is a world Traveler, and travels for both business trips to the east coast and for personal vacations backpacking through Europe. The Seattle area is known for its value of the great outdoors, and luscious greenspaces and trails. The Ecochic woman takes advantage of these opportunities by Biking on the BurkeGilman trail, running along Seattle’s waterfront and Taking her dog on walks to local parks. On rainy days she can be found at member only gym facilities such as Seattle Athletic Club and Washington Athletic Club. Embraces the beautiful pacific northwest by hiking Mount Rainer, Camping in the Cascades, Skiing during the winter months at Stevens pass, and enjoying the sandy shores of Alki beach in the summer months. The Ecochic consumer is always looking for ways to give back to her community such as volunteering with local community agencies such as their local YMCA, Park clean ups and an Arts center for struggling youth. Although the Ecochic woman is busy, she finds it is important to give back and Attends benefits such as The Red Dress Gala, The Glitter Gala fashion show, The Seattle reLEAF benefit, and Numerous benefits put on by local research hospitals such as Harborview and The UW Medical Center. The Ecochic woman when not working, exercising or offering her time to her community she enjoys to spend time in her lavishly decorated northwest inspired home. By bringing in colors of the Northwest such as calm tones of browns, greens and blues she creates a fashionable yet calming interior for her to relax in.

“A Day in The Life”: Since Ecochic targets a wide age group of women (18-50), with a target on the younger women ages 18-36, there are three types of customers that eco-chic targets, The Young & Hip Journalist, The “Green” Environmentally Conscious Mother, and The Seattle University Student & Activist for Peace. Each consumer lives a different lifestyle, we are able to look into the daily lives of each of these consumers.

Sarah – The Young & Hip Journalist Sarah, lives a fun, interesting yet busy life that revolves around her career as a writer for a local magazine; Seattle Metropolitan. She starts her day sitting in her closet for what seems like an hour, deciding what designer jeans to wear with what embellished, organic cotton t-shirt and finally puts together an outfit she bought in the Saavy department at Nordstrom last month. Once Sarah is out the door, she begins her 10-block walk to her downtown office from her swanky Belltown condo, with a quick stop at Starbucks on First Avenue for her triple tall, skinny, two-pump vanilla latte. Sarah spends her weekends going out with friends to Club Amber, attending events for the magazine and loves to shop in the downtown retail core. While Sarah is always dresses head to toe in the latest trends seen in magazines and fashion shows, she has recently tried to lessen her shopping at department stores like Nordstrom and contribute to the city that she loves and shop locally and has been venturing out to the University District, Wallingford and Fremont searching for her favorite local Boutique.

Susie: The “Green” Environmentally Conscious Mother Susie is first awoken by her two-year old, twin daughters in the early hours of the morning and prepares a healthy fruit and granola breakfast with ingredients from Whole Foods for herself and the girls. She has grown up in the Seattle area, attended the University of Washington and got married young to an environmental scientist and has since devoted her life to being a stay at home mom and wife. Susie and her family reside in the Fremont neighborhood, where she often ventures out to window shop through the various boutiques and art galleries. Susie tends to shop locally in the Fremont retail core, since it is more convenient for her. She can be found reading Simple Living Magazine looking for ways to keep her family healthy and keep the earth green, such as finding new green products and using solar panels to operate her appliances such as the washer and dryer.

Sophie – The Seattle University Student and Peace Activist Sophie awakens at 5:30am everyday to watch the Seattle sunrise as she does yoga in the quad to keep herself in shape. Sophie is not only eager to become well-educated in Environmental Science and Marine Biology, but is very concerned about the well-being of our country and life on earth. Sophie is living to make the world a better place by doing anything she can from riding a bike for transportation rather than riding the bus or driving a car and also shopping a thrift stores like Goodwill and The Salvation Army in the SODO district, and enjoys making new clothing out of old garments. Ecochic does just that for Sophie, takes recycled materials to make new and trendy textiles. This concept will be a wellaccepted one for this consumer type and is sure to become a trend not only locally, but nationally through the constant use of the internet for communication by this age group including the use of social media like facebook and twitter.

Secondary: The secondary consumers for Ecochic would be any friends, mothers or sisters shopping for a gift for a special person in their life, or a father or husband looking to surprise their daughter or wife with a special something. Robert – The Loving Father and Husband Betty – The Caring Mother, Sister and Friend

PRIZM NE: Nielsen Claritas PRIZM NE Market Segmentation software acts as a guide to marketing and media campaign strategies for specific markets. PRIZM NE is a comprehensive search engine, which provides information on the residents in a certain zip-code, helping to define a target market, learn about what they are like and how to reach out and appeal to them.4 The zip code 98103 (Fremont) is segmented by PRIZM NE into the following segments, American Dreams, Bohemian Mix, Money & Brains, Urban Achievers and Young Digerati. Each of these market segments are broken down and described in various demographic and psychographic aspects as well as lifestyle traits. This information will guide Ecochic to better understand the target consumer groups and structure our marketing and business approach to fit the needs of the customer.

4 "Seattle, Washington Most Common PRIZM Segments." PRIZM Segmentation System. Neilsen Claritas, 2010. Web. 10 Oct. 2010. <http://www.claritas.com/MyBestSegments/Default.jsp>.

“American Dreams” Demographics Traits: Upper-Mid, Middle Age Family Mix American Dreams is a living example of how ethnically diverse the nation has become: just under half the residents are Hispanic, Asian, or African-American. In these multilingual neighborhoods--one in ten speaks a language other than English--middle-aged immigrants and their children live in uppermiddle-class comfort.5 Urbanicity: Urban Income: Upper-Mid Income Producing Assets: Above Avg. Age Ranges: 35-54 Presence of Kids: Family Mix Homeownership: Homeowners Employment Levels: White Collar, Mix Education Levels: College Grad Ethnic Diversity: White, Black, Asian, Hispanic “Lifestyle Traits” · Shop at Old Navy · Buy motivational tapes · Read Black Enterprise · Watch TeleFutura · Lexus IS The “American Dreams” consumer is at the higher age range of Ecochic customers, however a vast majority of Fremont and the surrounding neighborhoods are made up of this type. With such a large variety of ethnic groups , conforming to the Seattle culture is one of the more prominent motivators for this consumer. Therefore, it is crucial that Ecochic looks

5 "Seattle, Washington Most Common PRIZM Segments." PRIZM Segmentation System. Neilsen Claritas, 2010. Web. 10 Oct. 2010. <http://www.claritas.com/MyBestSegments/Default.jsp>.

in depth at this large group of ethnic consumers in order to better determine how we can serve our customer.

“Bohemian Mix” Upper-Mid, Middle Age Family Mix A collection of mobile urbanites, Bohemian Mix represents the nation's most liberal lifestyles. Its residents are an ethnically diverse, progressive mix of young singles, couples, and families ranging from students to professionals. In their funky row houses and apartments, Bohemian Mixers are the early adopters who are quick to check out the latest movie, nightclub, laptop, and microbrew.6 Demographics Traits: Urbanicity: Urban Income: Upper-Mid Income Producing Assets: Moderate Age Ranges: <55 Presence of Kids: Family Mix Homeownership: Renters Employment Levels: White Collar, Mix Education Levels: College Grad Ethnic Diversity: White, Black, Asian, Hispanic Lifestyle Traits · Shop at Express · Rent/buy foreign videos · Read Details · Watch soccer · Volkswagen Rabbit The “Bohemian Mix” is quite possibly the most targeted type of consumer for Ecochic. “Young singles, couples and families ranging from students to professionals” is the exact description of the three main types of consumers, college students, professionals and 6 "Seattle, Washington Most Common PRIZM Segments." PRIZM Segmentation System. Neilsen Claritas, 2010. Web. 10 Oct. 2010. <http://www.claritas.com/MyBestSegments/Default.jsp>.

young parents. With an upper-mid income, this consumer is able to spend more money on extras such as clothes and this consumer will most likely be one of the most frequent shoppers at the Ecochic store. “Money & Brains” Wealthy, Older Family Mix. The residents of Money & Brains seem to have it all: high incomes, advanced degrees, and sophisticated tastes to match their credentials. Many of these city dwellers are married couples with few children who live in fashionable homes on small, manicured lots. 7 Demographics Traits: Urbanicity: Urban Income: Wealthy Income Producing Assets: Elite Age Ranges: 45-64 Presence of Kids: Family Mix Homeownership: Mostly Owners Employment Levels: Management Education Levels: Graduate Plus Ethnic Diversity: White, Black, Asian, Hispanic Lifestyle Traits · Shop at Nordstrom · Contribute to NPR · Read Sunday newspaper · Watch NewsHour w/ Jim Lehrer · Lexus RX Series The “Money and Brains” consumer is one whom Ecochic may have to work for, pulling the consumer away from being brand loyal to local department store retailer, Nordstrom and bringing them more local to a chic yet eco-friendly store. However, this consumer is highly-educated and is well informed of world-issues, therefore, the news of 7 "Seattle, Washington Most Common PRIZM Segments." PRIZM Segmentation System. Neilsen Claritas, 2010. Web. 10 Oct. 2010. <http://www.claritas.com/MyBestSegments/Default.jsp>.

the green movements will be a good source to reach out to this consumer as being a beneficial retailer to the environment. With their fine-taste in all things, and a large discretionary income, this segment of consumer could allow Ecochic maximum profit. “Urban Achievers” Lower-Mid, Younger Family Mix. Concentrated in the nation's port cities, Urban Achievers is often the first stop for up-and-coming immigrants from Asia, South America, and Europe. These young singles, couples, and families are typically collegeeducated and ethnically diverse: about a third are foreign-born, and even more speak a language other than English.8 Demographics Traits: Urbanicity: Urban Income: Lower-Mid Income Producing Assets: Low Age Ranges: <35 Presence of Kids: Family Mix Homeownership: Renters Employment Levels: White Collar, Mix Education Levels: Some College Ethnic Diversity: White, Black, Asian, Hispanic Lifestyle Traits · Order from hotels.com · Play soccer · Read Latina · Watch Cristina · Volkswagen GTI The “Urban Acheiver” segment will be the easiest to grasp, as they are young and very involved in today’s trends and social movements. This generation of young adults 8 "Seattle, Washington Most Common PRIZM Segments." PRIZM Segmentation System. Neilsen Claritas, 2010. Web. 10 Oct. 2010. <http://www.claritas.com/MyBestSegments/Default.jsp>.

are working to make a difference in the community, in politics, in medicine, sciences, business, economic status, and the overall quality of life in America today. This urban achiever is widely present throughout the Seattle area with several colleges present, a wide number of young and educated students, this market is sure to be present. “Young Digerati” Wealthy, Younger Family Mix Young Digerati are tech-savvy and live in fashionable neighborhoods on the urban fringe. Affluent, highly educated, and ethnically mixed, Young Digerati communities are typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants and all types of bars--from juice to coffee to microbrew.9 Demographics Traits: Urbanicity: Urban Income: Wealthy Income Producing Assets: High Age Ranges: 25-44 Presence of Kids: Family Mix Homeownership: Mix, Owners Employment Levels: Management Education Levels: Graduate Plus Ethnic Diversity: White, Asian, Hispanic, Mix Lifestyle Traits · Order from expedia.com · Go snowboarding · Read The Economist · Watch Independent Film Channel · Audi A4

9 "Seattle, Washington Most Common PRIZM Segments." PRIZM Segmentation System. Neilsen Claritas, 2010. Web. 10 Oct. 2010. <http://www.claritas.com/MyBestSegments/Default.jsp>.

The “Young Digerati” consumer is one that has been looking for a store like Ecochic for quite some time, and has probably searched the internet for eco-friendly products and purchased them online, since a store like Ecochic is currently absent in this area. This consumer is more of the trend-setter group for the Seattle area, with a desire for the finer things in life. “Communities are typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants and all types of bars--from juice to coffee to microbrew” is a direct description of the Fremont neighborhood and the Young Digerati will not be hard to draw into Ecochic.

VALS Analysis Strategic Business Insight (SBI) group’s VALS survey and VALS types have done research on consumers and have used their observations to develop 8 different types of consumers. VALS then goes on to explain the different segments and their characteristics as a consumer. According to the VALS survey we think “The Eco Chic Consumer” could be categorized into 3 of the 8 different types; ‘Innovators’, ‘Thinkers’ and ‘Achievers’.10

•

“The ‘Innovator’ Eco Chic Consumer” is a successful and sophisticated leader in business and her community, with a take-charge personality and a high self-esteem. She acts a leader of change and is one of the first in her circle of friends to accept new ideas and technologies. “The ‘Innovator’ Eco Chic Consumers” are very active consumers and often make purchases that are more upscale and tend to enjoy for the “finer things in life”. Image is also something that is important to innovators as a display of their taste, independence and personality.9

•

“The ‘Thinker’ Eco Chic Consumer” is mature, satisfied, and comfortable and values order, knowledge and responsibility in her life. This woman is usually well educated and often seeks information to use in her decision making process. Her generous income usually allows many choices as a consumer, but she will tend to be more conservative and practical while looking for quality, durable and functional products.9

•

“The ‘Achiever’ Eco Chic Consumer” is goal oriented and has a deep commitment to both her career and family. She lives a life structured around family, her place of worship and work and usually stands as a conservative in both life and politics. However, she is also a very active consumer and favors reputable products, and often looks to others for advice and recommendations. These achiever groups of women live very busy lives and are always looking for timesaving devices.9

10 "VALS™ | VALS™ Types | SBI." Home | Strategic Business Insights. 2010. Web. 10 Oct. 2010. <http://www.strategicbusinessinsights.com/vals/ustypes.shtml>.

Buying Motivators (MASLOWS) Maslow’s hierarchy of needs, a 5-tier triangle is structured around the buying motivators of consumers. This hierarchy can be used to pin-point the motives and motivation of consumer buying habits, based on the previous psychographic and demographic information above.

(http://www.google.com/imgres?imgurl=http://changingminds.org/images/maslow.gif)

After considering the target consumers of Ecochic, it was evident that there are three main motivations according to Maslow’s Hierarchy of needs; Self-Actualization, Self-Esteem and Belonging. Self Actualization: Eco chic allows any woman to be “green” and comfortable, yet chic. Which is one thing that the current “green” friendly brands do not exactly target through their clothing options. The Ecochic consumer has the desire to contribute to the bettering of the community, their environment and the earth as a whole and desires to do so while looking good in clothing they can feel good about. Self-Esteem: Ecochic clothing is not the average frumpy, “browns” and organic colors and prints that are usually found in most eco-friendly clothing, this not only gives “green” woman a chance to dress up in clothing that is still environmentally friendly, but also allows the consumer to feel glamorous, much like they are wearing mass produced clothing that is trendy. Belonging: Living in Seattle, where the green movement is appreciated and prominent throughout the various neighborhoods, purchasing and wearing pieces from Ecochic will allow women to feel as if they are doing their part. This feeling of belonging and

contributing to the “green” movement is something Seattleites have become eager about and continue to seek out new ways to do so.

Target Market

(SeattleRentals.com)

Fremont 10 Population: 10,970 Area: 1.416 square miles Population Density: 7,748 people per square mile

The Seattle Metropolitan Area (King County)11 Population in July 2009: 617,334 Area: 83.9 square miles Population Density: 7360 people per square mile

10 "Seattle, Washington (WA) Profile." Stats about All US Cities. 2010. Web. 10 Oct. 2010. <http://www.city-data.com/city/Seattle-Washington.html>.

Market Location

(Loopnet.com) 3515 Fremont Avenue North, Seattle, WA 98103 Located in the Fremont Neighborhood Seattle Magazine describes Fremont as a quirky, interesting and eclectic neighborhood with many attractions, for any person. Fremont's artsy, eccentric background boasts a sense of humor that led the community to proclaim itself The Center of the Universe. Vintage clothing stores, tattoo parlors, brewpubs, restaurants, art galleries and a music studio founded by Stone Gossard of the rock band Pearl Jam are at home here. Some of Seattle's best-loved public art adorns Fremont, including the Fremont Troll devouring a Volkswagen bug under the bridge; Waiting for the Interurban, a life-size statue of people waiting for the train (frequently decorated by locals); a controversial bronze statue of Lenin (originally from Slovakia); and a 53-foot rocket that appears to be in perpetual launch mode. Even the blue and orange drawbridge that leads into the neighborhood is artsy; the bridge tower sports a neon sculpture of Rapunzel. The Fremont Sunday Market, loosely organized like the markets of old Eurple is a bargain hunter’s paradise.

Market History

(SeattleMag.com)

“Starting out as cluster of small industries on the north Lake Union shore, it prospered from railroads and trolleys and went into decline when passenger transit faded out in the 1930s and 1940s. It became an artsy Mecca in the 1960s. Today (2004), with the arrival of high tech companies such as Adobe, it is undergoing another transition. Fremont is home to such curiosities as the giant Troll statue under the Aurora Bridge, the Slovakian sculpture of Vladimir I. Lenin on N 36th Street, and "People Waiting for the Interurban," Richard Beyer's 1978 sculptural monument to mass transit gone by. The neighborhood is also famous for its artsy air and lively mix of bistros, boutiques, and coffee shops. Fremont is named for the Nebraska hometown of two of the area's founders, L. H. Griffith and E. Blewett, who joined with dentistentrepreneur Dr. E. C. Kilbourne (1856-1958) to plat the neighborhood in

1888. Its original industry, consisting of lumber and shingle mills and an iron foundry, clustered on the north Lake Union shore.” 12 Walk Score, a database which calculates the “walkability” of an area according to the many retailers, restaurants, shopping, grocery, banks etc. in the surrounding area. According to Walk Score; Fremont is the #14 most walkable neighborhood in Seattle. This neighborhood is “Very Walkable” with an average Walk Score of 85. Fremont has 10,705 people—or 2% of Seattle's population. Fremont is similar in walkability to Green Lake and North College Park. Fremont's Walk Score is 13 points higher than Seattle's Walk Score of 72.

12 McRoberts, Patrick. "Seattle Neighborhoods: Fremont." HistoryLink.org- the Free Online Encyclopedia of Washington State History. 2010. Web. 10 Oct. 2010. <http://www.historylink.org/index.cfm?DisplayPage=output.cfm&File_Id=1320>.

Geographic Analysis

(ZipSkinny.com)

Fremont is located between the Seattle downtown and metropolitan area and the more residentially occupied areas of King County. This location serves as a hub for entertainment, including nightlife, restaurants and shopping. With a heavy traveled biway Highway 99 also known as Aurora Avenue running through there is a definite presence of the needed traffic for this type of retail store. Both its history and location draw many tourists and locals to the area every day. Fremont is also located along the ship canal, which draws a large amount of foot traffic to the Burke Gilman trail which runs along the canal, a short walk from the Fremont retail core, and the proposed location of the store.

54 Â

Climate

(UmbrellasandBeyond.com)

The Seattle area, located in the Puget Sound is known to have a generally wet climate. In movies such as Sleepless in Seattle or Television show Greys Anatomy (based in Seattle), the weather is often shown as wet, rainy and cloudy. The city of Seattle visitor information reports that “on average, it rains in Seattle at least 50% of the time, with the heaviest rain periods between January and May and between October and December” with June, July and August being some of the driest months. Average temperatures in the summer are comfortably in the 60s and 70s, though we also have been known to have weeklong heat spells in the high 80s or low 90s. During the winter months “Seattle may see a handful of snow days per year: the last major snow event in Seattle was in 1997, when we were snowed in for a week with several inches. However, it remains to be seen whether this winter is an anomaly or part of a larger climatologically shift caused by global warming”. The best way to dress in Seattle is to layer – “the climate, with our hilly terrain's infamous "convergence zones", is unpredictable enough (just ask our long-suffering local weather people) that you never know when a rain storm, a dry spell, or a sudden drop in temperature might occur.” It would be advisable to keep an umbrella with you at all times, you may even “notice many Seattleites who don't even use umbrellas -- after awhile, you just get used to the drizzle. Rain jokes aside, Seattle has a milder climate than many other parts of

the world, with less extreme variations in temperature, and a higher number of cloudy days with misty and damp weather.”13

(http://www.seattle.gov/html/weather_averages.htm)

13 "Local Weather and Climate - Visiting Seattle - Seattle.gov." Seattle.gov Home Page - The Official Web Site for the City of Seattle, Washington. 2010. Web. 10 Oct. 2010. <http://www.seattle.gov/html/visitor/weather.htm>.

Market Scope Surrounding Neighborhoods:14 Wallingford Area: 2.226 square mile Population: 14,129 Population density: 6,347 people per square mile Greenlake Area: 2.502 square miles Population: 7,834 Population density: 3,131 people per square mile Phinney Ridge Area: 1.239 square miles Population: 8,954 Population density: 7,227 Ballard Area: 5.957 square miles Population: 32,024 Population density: 5,376 people per square mile Magnolia Area: 5.593 square miles Population: 17,893 Population density: 3,199 people per square mile

14 "Seattle, Washington (WA) Profile." Stats about All US Cities. 2010. Web. 10 Oct. 2010. <http://www.city-data.com/city/Seattle-Washington.html>.

Queen Anne Area: 4.397 square miles Population: 32,274 Population density: 7,341 people per square mile University District Area: 2.879 square miles Population: 24,557 Population density: 8,530 people per square mile By drawing in consumers from each of the above neighborhoods, Ecochic will allow itself to strive in Fremont by finding creative ways to advertise and appeal to our consumer to visit our boutique. There is an ample amount of potential consumers found in each of these neighborhoods to support our projected sales for the Ecochic boutique.

Attractive Features

(GoNorthwest.com)

•

Location in the midst of metropolitan and residential areas.

•

Located in the retail core of the Fremont neighborhood

•

Tight-knit community of both local and national businesses and companies

•

Walkscore of 85

•

Tourist/historical attractions

•

Residential mixed in with retail

•

High traffic streets connecting the downtown Seattle core to its surrounding neighborhoods

•

Growth and size of market

•

Target market demographics and psychographics clearly present

Loopnet.com, features the desired retail space for lease and described it’s location as this; “Rare availability in the vibrant retail core of Fremont. Ideal for wine shop, fitness studio of boutique retail. This thriving neighborhood features close proximity to downtown, dense residential, easy access to public transportation, a large amount of public waterfront space and anchor employers Adobe Systems, Getty Images and Google making it an increasingly popular destination to live, work and play”. 15 15 "3515 Fremont Avenue North, Seattle, WA, 98103 - Street Retail Property for Lease on LoopNet.com." LoopNet - #1 in Commercial Real Estate Online. 2010. Web. 10 Oct. 2010. <http://www.loopnet.com/Listing/16691161/3515-Fremont-Avenue-North-Seattle-WA/>.

Difficulties & Problems in the Market We believe that Ecochic has a very high change of being successful in this market, however there are some potential difficulties and our problems that could be seen in this market. •

Pulling in the target consumer from other areas than just the Fremont neighborhood

•

Communicating the Ecochic message to target consumer

•

Consumers in the area may need to justify spending more, but have many reasons for why it is justifiable such as the clothing being eco-friendly

Existing Demand There is a very high existing demand for eco-friendly clothing in the Northwest, especially in the greater Seattle metropolitan area. With only one competitor boutique, located in the Wallingford neighborhood, Ecochic has a largely underserved market to tap into. The women of Seattle live their lives being concerned about the well being of their communities and environments, by shopping at local organic, fair trade groceries like Whole Foods, PCC and Pike Place Market, the market is missing the option to purchase clothing in this category.

The Competition Merge Boutique Location

611 N. 35th Street, Seattle, WA 98103 (Fremont)

Brief Description

A sophisticated collection of clothing for women, with a vision to bring simple luxury by way of modern classics from New York, Los Angeles and Italy. It has been called “a carefully edited boutique for women who want chic, rather than girlie.” Nicholas K, Embe, Chaiken, LA Made, Ernest Sewn, Habitual Denim, Ya-Ya, Black Halo, MK2K, Johnny Farrah, IMPROVD, Illia, Kaylee Tankus, Plastic Island, 1020 by Nicole, Miss Alice, L.A.M.B, American Vintage and Ali Ro.

Featured Brands & Clothing

How are they Competition?

Velouria Boutique & Gallery 1. 2205 N.W. Market St. Seattle, WA 98107 (Ballard) 2. 1521 Melrose Ave. Seattle, WA 98122 (Capitol Hill) Clothing, accessories and house wares made by independent designers Velouria carries items that are not massproduced and all items are made in US or Canada. This boutique also has rotating art shows for each neighborhoods art walk.

Terra Hemp Boutique 4419 Wallingford Ave N, Seattle, WA 98103 (Wallingford)

Zuzupop by tes de luna, Modaspia, Frocky Jack Morgan, House of Spy, Operation Stitch, UNA, Angel Eyes, Squasht by Les, Mona Lucy, Out of Line, Jennifer Glasgow, Anne Kimball, Mae, Lekkerlife, Kombat Glamor, Sam Trout TShirts and Togs Design.

Dash Hemp, Dream Designs, Earth Creations, Envirotextiles, Kavu, Maggie’s, Satori, Sweetgrass, Sympatico, and Synergy.

Clothing and accessories boutique for both men and women, which carries environmentally friendly products, made from hemp, natural fibers, cashmere, and recycled fabrics.

- Similar target market - Same target market - Two convenient - Has an established locations customer base - Doubles as an art - Located nearby gallery - Also carries eco- Locally made, non friendly clothing mass-produced Website www.mergeboutique.bl www.shopvelouria.tripod. www.terrahemp.com ogspot.com/ com Sources: Mergeboutique.com, ShopVelouria.Tripod.com, and Terrahemp.com.

- Located in the same neighborhood - “Imported one of a kind designer items - Similar target market

Composite SWOT Ecochic has produced and condensed and co-related charting of non-redundant areas that are of strategic interest and implication with our new business venture. The emphasis resides in how Ecochic compares to its major competitors and illustrates the strategies to not only overcome obstacles but also to better leverage our company growth through strengths, weaknesses, opportunities and threats. Our top competitors (all three) are; Merge (M), Velouria (V) and Terra Hemp (T).

Strengths

Weaknesses

Competition: - Established customer base (All) - Carries luxury, more known brands (M) - Gallery in store: attracts customers (V) - 2 Locations: Ballard and Capitol Hill (V) - Only carries brands manufactured in the United States & Canada (V) Ecochic: - Ability to tap into an underserved market - Will carry both designer lines and locally made, one of a kind lines - High foot traffic area both day and night - One location, ability to better measure the success of business - Features locally produced lines from Washington and the west coast.

Competition: - Known for high prices (All) - Small brand variety (T) - No locally made apparel (M & T) - Not able to shop online (M & V) - Not all items in store are available for purchase online (T) Ecochic: - Recycled and natural clothing costs more to manufacture resulting in higher prices - Too many brands, or too many choices. - Locally made apparel is sometimes “different” and not widely accepted - Maintaining boutique websites with boutique inventory can be difficult. - One of-a-kind items will quickly sell online.

Opportunities

Threats

Competition: -Location has a high amount of foot traffic (All) - Room to improve their website and online business (All) - Ability to change their marketing strategies and reach out to a new market (All) Ecochic: - Ability to make use of popular retail shopping district - Create an online shopping website as well as open the boutique simultaneously - Penetrate and dominate in an underserved market

Competition: - Another store could begin to carry the same lines and brands (All) - Hurting economy, less people shopping at higher priced boutiques (M & V) - Two stores in the same city could “over saturate” the market (V). - All stores are located in a 5-mile radius Ecochic: - Offering a “new” line and product assortment has risks. - Young adult age group may have a lower discretionary income for spending - Located in a neighborhood outside of the downtown core - Located in a retail district – other businesses

Indirect Competition Ecochicâ&#x20AC;&#x2122;s indirect competition would be nearby restaurants and bars such as The Red Door, Brouwers, High Dive, Blue C Sushi and Homegrown, which are a popular attraction that bring people to the Fremont neighborhood. However, this evening and night-time foot traffic in the area will allow our store to be seen, attractive window displays and signage will allow our store to be recognized. Ecochic also is in indirect competition with large department stores such as Target, and Nordstrom. Locally, these two stores are present and are a common destination for our target consumers living in the Seattle area for both home and apparel fashions. We consider these above mentioned stores, bars and restaurants to be our most indirect competition.

63 Â

Market Environment

(http://www.epodunk.com/cgi-bin/genInfo.php?locIndex=24992)

Location: 3515 Fremont Avenue North, Seattle, WA 98103 Nation: United States of America State: Washington County: King City: Seattle Sub-Section: Fremont

Economic Issues Upon the decision to open a retail-based business, it is crucial to understand the current financial and economic status of the location in which the business will operate and ideally thrive. 2010 marks a year of struggle and hope for the national, state and local economy as businesses and corporations worldwide try to regain their strength from the economic downfall in 2008. Ecochic has retrieved and compiled crucial data to prove that the current economy is regaining strength and is structurally sound – making it a respectable choice to start a business and ultimately open the Ecochic boutique. United States: Business Employment Dynamics Paul Swartz, an international economics analyst provides statistical data graphs comparing the current economy to that of the recession during World War II. “How do the recent economic collapse and recovery match up with past cycles? This chart book provides a series of answers, plotting current indicators (in red) against the average of all post–World War II recessions (in blue). To facilitate comparisons, the data are centered on the beginning of the recession (marked by “0”). The dotted lines are composites representing the mildest and the most severe experiences in past cycles.”16

16 "Studying Business Cycles: Economic Graphs of The Current Economic Cycle." A Money Blog: Personal Finance and Business in Silicon Valley. 2010. Web. 10 Oct. 2010. <http://www.thedigeratilife.com/blog/index.php/2009/01/06/business-cycles-economicgraphs-economic-cycle-recession/>.

This chart represents “real GDP growth, which for a time was weaker than in any other postwar recession, has recovered thanks to the fiscal and monetary stimulus. The yearover-year growth has turned positive because of low prior-year output levels.” This positive growth shows that it is safe to assume that we are in a recovery from the recession; therefore opening a retail business such as Ecochic at this time is a safe decision.

“Although growth has resumed, economic activity is still 1 percent below the level it was at the start of the recession.” This growth allows Ecochic to open in an economic time when growth is predicted and provides the theory that it can only get better from here.

• The collapse in the dollar value of global trade remains far worse than in any other postwar recession. • Although trade has started to grow again, it remains well below previous recession averages.

• World trade growth tends to slow as the US economy contracts. • Leading indicators suggest a sharp contraction of trade in the fourth quarter and early next year. • Will the policy makers respond by liberalizing Unemployment Rate: 9.6% in Oct 2010 (http://www.bls.gov/cps/)

• Emissions in the United States have contracted faster in this recession than in any other post−WWII case. Bureau of Labor Statistics: “Unemployment rates were lower in August than a year earlier in 182 of the 372 metropolitan areas, higher in 169 areas, and unchanged in 21 areas, the U.S. Bureau of Labor Statistics reported today. Twelve areas recorded jobless rates of at least 15.0 percent, while 9 areas registered rates below 5.0 percent. The national unemployment rate in August was 9.5 percent, not seasonally adjusted, compared with 9.6 percent a year earlier.”17

17"Metropolitan

Area Employment and Unemployment (Monthly) News Release." U.S. Bureau of Labor Statistics. Sept. 2010. Web. 02 Nov. 2010.

(http://www.bls.gov/lau/home.htm)

With one of the highest unemployment rates in the country, opening a business at this time will not only provide jobs to the local community but it will also provide Ecochic with incentives, opportunities and credits for providing jobs during the economic struggle. U.S. Small Business Administration: Small Businesses Job Act of 2010: On Sept. 27, 2010, President Obama signed into law the Small Business Jobs Act, the most significant piece of small business legislation in over a decade. The new law will provide critical resources to help small businesses continue to drive economic recovery and create jobs. The new law extends the successful SBA enhanced loan provisions while offering billions more in lending support, tax cuts, and other opportunities for entrepreneurs and small business owners.18 The Small Business Job Act of 2010 puts more capital in the hands of entrepreneurs and small business owners. The act also strengthens small businesses' ability to compete for contracts, including recommendations from the president's task force on federal contracting opportunities for small businesses. Monetarily, this act provides $12 billion in tax relief to help small businesses not only invest in their firms, but keep them, which in turn creates jobs. This Act will allow Ecochic to access financial and economic resources that have been provided for small business owners nationwide. Washington State: Unemployment: WA vs. All of The United States

"Small Business Jobs Act of 2010." U.S. Small Business Administration-Your Small Business Resource. 27

September 2010. Web. 02 Nov. 2010. <http://www.sba.gov/jobsact/>.

Washington Unemployment Rate 9.0% in Sep 2010 Association of Washington Business: “As an organization, AWB has built a solid record of success in the legislative and regulatory arenas. Recent achievements include regulatory reform, tax incentives and reductions that help attract — and retain — business investment in Washington state, and policy changes that encourage state agencies to become more efficient and customer-friendly. While its membership includes major employers like Boeing, Microsoft and Weyerhaeuser, 90 percent of AWB members employ fewer than 100 people. More than half of AWB’s members employ fewer than 10.”19 Washington Small Business Association offers business guidance and support including counseling and training for business development. AWB also offers financial planning resources, financial assistance, contract opportunities, online training and women’s business centers. This association can help Ecochic to gain the training and benefits necessary to help it be successful. Seattle District Office 2401 Fourth Avenue, Suite 450 Seattle, WA 98121 206-553-7310 Washington State Women’s Business Enterprises: The Washington State Women’s Business Enterprises located in Olympia offers assistance and services to women business owners. WWBE offers certification, agency support and help with business development.20 This organization is particularly beneficial to Ecochic because it specializes in specifically assisting professional business women whom are 19 "AWB - ASSOCIATION OF WASHINGTON BUSINESS - Washington State Chamber of Commerce." 2010. Web. 02 Nov. 2010. <http://www.awb.org/about/aboutus.asp>. 20 "Washington State Office of Minority and Women's Business Enterprises." 2010. Web. 02 Nov. 2010. <http://www.omwbe.wa.gov/aboutus/aboutus_contactus.shtml>.

business owners develop their business. Olympia (Main) Office 406 Water Street SW Olympia, WA 98501

71 Â

City of Seattle:

http://www.bestplaces.net/zip-code/Seattle-Washington-98103.aspx#

The current unemployment rate in Seattle (zip 98103), WA, is 7.80%, (lower than the nations average) with job growth of -0.89%. However, future job growth over the next ten years is predicted to be 30.42%. Although there is currently no income tax in Washington State, the current Washington state sales tax rate is 8.9%, which is 2.1% higher than the nation’s average. The median household income for people living in Seattle is $63,509, higher than the United States median of $51,660. 21

21 "Best Places to Live in Seattle, Washington Zip Code (WA)." Best Places to Live | Compare Cost of Living, Crime, Cities, Schools and More. Sperling's BestPlaces. 2010. Web. 10 Oct. 2010. <http://www.bestplaces.net/zip-code/Seattle-Washington-98103.aspx#>.

Downtown Seattle Association: The DSA has released the following retail economic information, showing the presence of retail in the core of Seattle’s Center City. The DSA found that at the end of 2009, Seattle’s Center City had approximately 5.1 million square feet of retail space with a vacancy rate of 10%. Also, from 2008 to 2009 retail vacancy rates increased from 5.3% to 10% and lease rates decreased from $35.45 to $30.63. This shows that while some retail business may have closed due to the recession, it has decreased lease rates per square foot by nearly $5.00, which will be a great benefit to Ecochic. The Downtown Seattle Association conducts an annual Street Level Business Inventory in Center City Seattle. It is conducted during the third quarter of each year and focuses on eleven neighborhoods in Center City Seattle. In addition to individual businesses, fourteen large retail areas with multiple units under one roof are also included in the study.22 2009 Street Level Retail & Services Inventory: •

Total number of businesses occupied: 4,917

•

Number of restaurants, cafes and bars in Center City: 1,008

•

Number of coffee shops* in Center City: 244

•

Number of arts & cultural businesses (including Art Galleries): 137

•

Number of clothing and accessory shops: 262

•

In 2009, 568 addresses were classified as either vacant or under construction. This is 10 percent of the inventory.

This information shows us that Ecochic will be accepted by this market, and there is a strong presence of retail stores, specializing in clothing.

"Economic Information: Introduction." DSA News: October Newsletter. Oct. 2010. Web. 02 Nov. 2010.

<http://www.downtownseattle.com/content/businesses/EconomicInfo.cfm>.

Tourism Pike Place Market is Seattle’s top attraction, drawing nearly 10 million visitors in 2008. Seattle performance venues attracted more than 2 million attendees during the 20082009 seasons. Seattle Mariners baseball fans made up about two-thirds of the overall Seattle sporting event attendance during the 2008-09. The City of Seattle issued more than 299 film permits, including 11 for feature films in 2009. Center City Seattle was home to at least 70 festivals in 2009. Hundreds of music concerts are held in Seattle each year. More than 3.4 million guests visited Center City’s museums during the 2008-2009 fiscal year. Visitor Expenditures in King County Purchases

Total Amount (millions)

Meals & Beverages

$1,492

Lodging

$1,281

Shopping

$1,128

Ground Transportation

$500

Entertainment

$416

Convenience/Misc.

$319

Total

$5.14 Billion

The local economic impact from tourism in 2008 brought in nearly $5.14 billion dollars (visitor spending) annually in King county, provided over 63,100 jobs and created $471 million annually in state and local tax revenue. Cruise Industry Local Economic Impact: In 2008* the cruise industry created $312.5 million in annual business revenue, supported 3,781 jobs and generated $16.1 million in annual state & local taxes. It has been estimated that an average of $1.7 million flows into the local economy every time a homeport ship docks.

* Economic impact study published in 2009 based on 2008 data.23 The City of Seattle Government:

”A strategy for next generation economic development to help create a sustainable economy with shared prosperity. It is a framework of policies, programs and investments to create quality jobs, protect the environment and ensure that taxpayers get true value from the City of Seattle’s public investments.”24 “I believe in Seattle’s future. We live in one of the smartest and most creative cities in the world. But times are tough out there, and we need new priorities and investments.” Seattle Mayor Mike McGinn Employment: The percentage of Seattleites unemployed at the start of this year was stated as 10% and the number of total regional job losses from 2008 to 2009 was close to 125,000. Seattle being a port city, there are over 90,000 jobs supported by Seattle’s manufacturing and maritime businesses. Another prominent industry being healthcare and life science with many hospitals, medical research centers and universities, also employ over 90,000 people. The number of jobs supported by Seattle’s music, game, film and software industries are rapidly growing and provides over 45,000 jobs. •

Taxable sales generated by Seattle’s restaurant/food/beverage/retail/hospitality industry: $2.3 billion

"Economic Information: Visitor." DSA News: October Newsletter. Oct. 2010. Web. 02 Nov. 2010.

<http://www.downtownseattle.com/content/businesses/Visitor.cfm>. 24 “Seattle

Jobs Plan” Seattle.gov Home Page - The Official Web Site for the City of Seattle, Washington. 2010. Web. 02

Nov. 2010. <http://www.seattle.gov/EconomicDevelopment/jobsPlan/)>.

Green Electricity: •

Amount leveraged by the Community Power Works Initiative from the $26 million federal retrofit grant: $140 million

•

Green jobs our energy efficiency funding will create: 2,000

•

Amount $300 billion energy efficiency sector is expected to grow by 2030: $700 billion

•

Grant awarded to Seattle Public Schools for energy efficiency retrofit projects: $3.8 million

•

New Electric Vehicle Charging Stations to be deployed in the Central Puget Sound and Olympia Areas: 1,200

Business Financing: •

New business financing the City will distribute over the next 18 months: $50 million

•

Individual financing loans available for new entrepreneur start-ups, expansion and operations: $20,000 to $100,000

•

Individual financing loans available to established businesses for expansion and operations: $50,000 to $2 million

•

New jobs that will be created or retained through our financing programs: 750

Business Improvement: •

Businesses the City will contact to learn about how to support their growth: 700

•

Businesses the City will help with obtaining incentives, financing, site location and/or strategic business advice: 250

•

Business services provided to each participating convenience/corner stores for increasing access to healthy foods: $50,000

•

City investment targeted to strengthen neighborhood commercial districts: $1 million per year

•

Businesses featured in a new citywide “Only in Seattle” marketing campaign: 20 The Seattle Jobs plan is a crucial asset to small businesses operating in the city of

Seattle, the green electricity and business financing measures will allow Ecochic the resources to operate as a green company, and also financially support business operation while Ecochic first begins operation.

Top 20 Regional Employers Seattle is home to some of the largest and most prestigious national companies such as Costco, Starbucks, Microsoft, Nordstrom and Nike. These companies, along with others employ a large majority of the working class. The top twenty employers in the Seattle area are presented in the table below, beginning with the top employer. Top 20 Regional Employers: Seattle Employer Total # of Employees 1 Costco Wholesale 142,000 2 Starbucks 142,000 3 Microsoft 93,000 4 Nordstrom 48,000 5 Nike 34,300 6 Amazon.com 24,300 7 Precision Castparts 20,600 8 Emeritus 17,409 9 Paccar 15,200 10 Weyerhaeuser 14,900 11 Alaska Air Group 12,440 12 Expeditors International 12,010 13 Itron 9,000 14 Esterline Technologies 8,901 15 Expedia 7,960 16 Mentor Graphics 4,400 17 Zumiez 4,330 18 Schnitzer Steel Industries 3,323 19 Clearwire 3,280 20 StanCorp Financial Group 3,150 (http://seattletimes.nwsource.com/html/photogalleries/businesstechnology2012080032/)

With the largest employers in Seattle being retail and technology based, the people living in this market are well educated and informed on the latest movements in both technology and retail, and Ecochic will reach out to these consumers by showcasing our technology in product, the Ecochic boutique as well as through our website.

Political Issues United States of America Government: President: Barack Obama (D) Vice-President: Joe Biden (D) Department of State Secretary: Hillary Rodham Clinton (D) Department of the Treasury Secretary: Timothy F. Geithner (D) Department of Defense Secretary: Robert M. Gates (R) Department of Justice Attorney General: Eric H. Holder, Jr. (D)25

The 2010 general election took place on November 2nd, 2010. Tough initiatives, and close senate and representative races are the result of some states determining the outcomes up to the final votes are counted. The image above is the most current Washington State Government: Governor: Christine Gregoire (D) Lt. Governor: Brad Owen (D) Secretary of State: Sam Reed (R) U.S. Senator (WA): Maria Cantwell (D) U.S. Senator (WA): Patty Murray (D)26

25 "The Administration." The White House. 2010. Web. 02 Nov. 2010. <http://www.whitehouse.gov/administration>. 26 "Access Washington - Government." Access Washington - Welcome to the State of Washington. 2010. Web. 02 Nov. 2010. <http://access.wa.gov/government/index.aspx>.

November 2, 2010 General Election Results:

(http://vote.wa.gov/Elections/WEI/Results.aspx?RaceTypeCode=O&JurisdictionTypeID=1&ElectionID=37&ViewMode=Results)

November 2, 2010 General Election - Controversial Initiatives: Initiative Measure No. 1053: concerns tax and fee increases imposed by state government. This measure would restate existing statutory requirements that legislative actions raising taxes must be approved by two-thirds legislative majorities or receive voter approval, and that new or increased fees require majority legislative approval. (64.83% YES) Initiative Measure No. 1098 concerns establishing a state income tax and reducing other taxes. This measure would tax “adjusted gross income” above $200,000 (individuals) and $400,000 (joint-filers), reduce state property tax levies, reduce certain business and occupation taxes, and direct any increased revenues to education and health. (65.15% NO) 7th Congressional District (Seattle): Representative: Jim McDermott (D)27 43rd Legislative District (Fremont Area): Senator: Ed Murray (D) Representative 1: Jamie Pedersen (D) Representative 2: Frank Chopp (D)28

27 "Access Washington - Government." Access Washington - Welcome to the State of Washington. 2010. Web. 02 Nov. 2010. <http://access.wa.gov/government/index.aspx>. 28 "Access Washington - Government." Access Washington - Welcome to the State of Washington. 2010. Web. 02 Nov. 2010. <http://access.wa.gov/government/index.aspx>.

Legal/Regulatory/Tax/Licensing Criteria According to the State of Washington, King county, the City of Seattle and the Fremont neighborhood business association the following laws, regulations, taxes and licenses are required to operate a retail boutique. Washington State Business Licensing: In order to start a business, a master business license is needed which requires a Master Business Application online, by mail or in person. “The Master Business Application is a simplified form used to apply for many state licenses, registrations, and permits. It is also used to apply for some city licenses”.29 There is a fee of $15 for the application and $5 fee for each trade name registered to the business license. $15 Application fee $5 Trade name registration $20 Total Cost King County Business Licensing: King County does not require any special business licensing for a retail store. City of Seattle Business License: To obtain a Seattle business license, the business owner must fill out and submit the business license application along with a payment to cover the annual $90 license fee.30 Seattle Business License Total Cost $90

29 "WA State Licensing: File a Master Business Application." WA State Licensing: Home. 2010. Web. 05 Nov. 2010. <http://www.dol.wa.gov/business/file.html>. 30 "Department of Finance and Administative Services - Business License Information." Seattle.gov Home Page The Official Web Site for the City of Seattle, Washington. 2010. Web. 02 Nov. 2010. <http://www.cityofseattle.net/rca/taxes/taxmain.htm>.

Washington & King County Retail Sales Tax:

Retail Sales/Use Tax: 3515 Fremont Avenue North, Seattle, WA 98103 Effective dates 11/01/10 - 11/30/10 Location code (view map) 1726 City: Seattle County: King State (Washington) Sales and Use Tax .065 Local City (Seattle)/County (King) Sales and Use Tax .030 Total tax rate .095 31 Washington Business &Occupation Tax “The state B&O tax is a gross receipts tax. It is measured on the value of products, gross proceeds of sale, or gross income of the business”. B & O Tax for retailers in Washington State is .00471 Small Business B & O Tax Credit: Businesses whose B&O tax liability is below a certain level are entitled to a credit. The credit varies depending on the amount of B&O tax due (the total of all classifications) after all other B&O tax credits have been taken.

31 "Federal, State and Local Taxes - Retail." Department of Revenue. 2010. Web. 02 Nov. 2010. <http://dor.wa.gov/content/findtaxesandrates/salesandusetaxrates/lookupataxrate/)>.

The Small Business Tax Credit is available for businesses whose total B&O tax liability is below: •

$71 for monthly taxpayers

•

$211 for quarterly taxpayers

•

$841 for annual taxpayers32

Seattle Business/Sales Tax Seattle also requires that any licensed businesses pay a business license tax, for retailers that is; .215%. On top of the business license tax is a square footage business tax. “There are two tax rates for the square footage business tax. “Business floor space” will be taxed at a rate of $0.39 per square foot per quarter ($1.56 annually). “Other floor space” is taxed at a rate of $0.13 per square foot per quarter ($0.52 annually). These tax rates will be adjusted annually for inflation”.33 Business License Tax: .215% Square Footage Tax (retail space): $1.56/sq. ft annually Square Footage Tax (non-retail): $0.5/sq. ft. annually

32 "Credits." Department of Revenue. 2010. Web. 02 Nov. 2010.

<http://dor.wa.gov/Content/FindTaxesAndRates/TaxIncentives/Def_Credits.aspx#Recovery>. "Department of Finance and Administrative Services." Seattle.gov Home Page - The Official Web Site for the City of Seattle, Washington. 2010. Web. 02 Nov. 2010. <http://www.seattle.gov/rca/taxes/SquareFootageTax.htm>.

Social Issues The diverse neighborhood of Fremont and the cultural neighborhoods surrounding the city of Seattle bring up many social issues and indicators. By researching vital databases, Ecochic has qualified this area a prime location to start this type of green-friendly eco-chic, fashion business. Ecochic has collected a vast amount of information concerning the high levels of educated people living in Fremont and the city of Seattle, to the family sizes and structures, birth rates (population growth) and types of housing, to poverty rates, homelessness, and crime.

83 Â

Education Level

(http://www.city-data.com/city/Seattle-Washington.html)

Seattle has a large college population, including students from a variety of Public and Private institutions such as the University of Washington (32,742 Full-Time Students), Seattle University (4,743), Shoreline Community College (4,526), North Seattle Community College (3,489), Seattle Pacific University (2,992), The Art Institute of Seattle (2,313), and Cornish College of the Arts (615). 34 This high number of educated and informed people living in the Seattle area will allow Ecochic to communicate a very important message to the young students and college graduates of this generation. Not only is this generation growing up with concearns about the well-being of our life on earth, and sustaining the earths environment, but they will go 34 "Seattle, Washington (WA) Profile." Stats about All US Cities. 2010. Web. 10 Oct. 2010. <http://www.city-data.com/city/Seattle-Washington.html>.

out of their way to see that this happens including purchasing eco-friendly products from food, school supplies, e-books, to clothing.

(http://www.city-data.com/city/Seattle-Washington.html)

Family Size & Structure Average household size: Seattle: Washington: Percentage of family households: Seattle: Washington:

2.1 people 2.5 people 43.9% 66.0%

Percentage of households with unmarried partners: Seattle: 7.8% Washington: 6.1% Likely homosexual households (counted as self-reported same-sex unmarried-partner households)35 •

Lesbian couples: 0.9% of all households

•

Gay men: 1.1% of all households

Households: 536,722 •

In family households: 342,957 o

78,712 male householders, 36,786 female householders

88,305 spouses, 102,418 children (96,072 natural, 3,311 adopted, 3,035 stepchildren), 5,801 grandchildren, 7,421 brothers or sisters, 3,825 parents, 7,523 other relatives, 12,166 non-relatives

•

In nonfamily households: 193,765 o

69,395 male householders (49,007 living alone)), 73,742 female householders (56,432 living alone))

o •

50,628 nonrelatives

In group quarters: 26,653 (7,198 institutionalized population)

35 "Seattle, Washington (WA) Profile." Stats about All US Cities. 2010. Web. 10 Oct. 2010. <http://www.city-data.com/city/Seattle-Washington.html>.

Family Structure: 55,872 households: married couples with children. 21,892 single-parent households: 4,371 men, 17,521 women.36 Language Spoken at Home: •

79.8% of residents of Seattle speak English at home.

•

4.2% of residents speak Spanish at home o 56% speak English very well

•

19% speak English well

19% speak English not well

6% don't speak English at all).

4.0% of residents speak other Indo-European language at home o 77% speak English very well

•

15% speak English well

7% speak English not well

1% don't speak English at all

10.5% of residents speak Asian or Pacific Island language at home o

44% speak English very well

30% speak English well

20% speak English not well

o 6% don't speak English at all •

1.6% of residents speak other language at home o 58% speak English very well o

28% speak English well

12% speak English not well

o 2% don't speak English at all37 36 "Seattle, Washington (WA) Profile." Stats about All US Cities. 2010. Web. 10 Oct. 2010. <http://www.city-data.com/city/Seattle-Washington.html>.

Birth Rates 2009 Births – Mother’s Age – County of Residence

(http://www.doh.wa.gov/ehsphl/chs/chsdata/birth/htmltables/a9.htm)

(http://pewsocialtrends.org/pubs/753/american-birth-rate-decline-linked-to-recession-)

89 Â

Housing Dec. 2009 cost of living index in Seattle: 126.3 (high, U.S. average is 100) Houses: 270,536 37 • 258,510 occupied o 125,151 owner occupied o 133,359 renter occupied % of renters Seattle: Washington:

35%

52%

Housing density: 3226 houses/condos per square mile Median gross rent in 2008: $940/mo. Estimated median house or condo value in 2008: $491,600 (it was $252,100 in 2000) Seattle: $491,600 Washington: $308,100 Lower value quartile - upper value quartile: $358,200 - $714,500 Mean price in 2008: Detached houses: $619,770 Seattle: Washington:

$394,769

$619,770

Townhouses or other attached units: $442,027 Seattle: $442,027 Washington: $323,427 In 2-unit structures: $728,202 Seattle: Washington: $371,071

$728,202

In 3-to-4-unit structures: $678,135 Seattle: Washington: $294,241

$678,135

37 "Seattle, Washington (WA) Profile." Stats about All US Cities. 2010. Web. 10 Oct. 2010. <http://www.city-data.com/city/Seattle-Washington.html>.

In 5-or-more-unit structures: $433,196 Seattle: $433,196 Washington: $333,113 Mobile homes: $95,228 Seattle: Washington:

$95,228 $80,529

Occupied boats, RVs, vans, etc.: $154,718 Seattle: $154,718 Washington: $62,453

Poverty Percentage of Seattle residents living in poverty in 2008: 11.6% •

9.0% for White, Non-Hispanic residents

•

21.6% for African-American residents

•

14.0% for two or more races residents38

Residents with income below the poverty level in 2007: Seattle: 13.1% Washington: 11.4% Residents with income below 50% of the poverty level in 2007: Seattle: 5.3% Washington: 5.1% Children living below the poverty level: Seattle, Washington: State:

12.0% 14.4%

Poverty rate among high school graduates not in families: Seattle: 16.1% Washington: 17.3% Poverty rate among people who did not graduate high school not in families: Seattle: 42.4% Washington: 39.5% Poverty rate among disabled males: Seattle: Washington: 13.9%

20.3%

Disability rate among poor males: 38 "Seattle, Washington (WA) Profile." Stats about All US Cities. 2010. Web. 10 Oct. 2010. <http://www.city-data.com/city/Seattle-Washington.html>.

(it is 15.6% among residents who are not classified as poor): Seattle: 31.6% Washington: 13.9% Poverty rate among disabled females: Seattle: 21.4% Washington: 18.1% Disability rate poor females (it is 15.6% among residents who are not classified as poor): Seattle: 30.4% Washington: 18.1% Renting rate in this city among poor and not poor residents: Residents below poverty level: 84.3% Residents above poverty level: 47.7% “The Seattle King County Coalition for the Homeless conducts an annual “One Night Count,” which includes a street count in portions of Seattle, Bellevue, Kirkland, Redmond, Shoreline, Kenmore, Bothell, Woodinville, Kent, Federal Way, Renton, Auburn, and White Center and a survey of homeless shelters and transitional programs throughout King County. The 2010 “One Night Count” identified the following:39 Number of Homeless Individuals in King County in 2010: On January 28, 2010 there were 8,937 individuals counted during the “One Night Count” homelessness survey. • 6,178 people were counted in shelters and transitional programs. • 2,759 people were surviving outside without shelter. • Hundreds if not thousands more homeless people in both Seattle and King County were not counted for various reasons, such as being hidden in places which counters did not reach, and/or staying with friends and family.

39 "Homelessness Facts for King County." Committee to End Homelessness. 2010. Web. 10 Oct. 2010. <http://www.cehkc.org/default.aspx>.

Affordable Housing: Requests/Turnaways •

The Community Information Line/211 reports that nearly 50% of all calls received are housing related. Requests for utility assistance and food also increased. The largest number of calls comes from South King County, followed by Seattle.

Cost of housing burden •

Less than 1% of apartments in King County are affordable to households earning less than 30% of median income ($25,300 for a family of four).

•

The average rent for a two-bedroom apartment in King County is $957 (it is $1,606 in Bellevue, and $1,485 in Seattle.) A worker must earn over $19 per hour to afford this housing (housing is considered affordable when it costs 30% of one’s income).

•

64% of jobs in King County do not pay a wage that will provide for the basic necessities for a family consisting of two adults and two children with one wage earner.

Crime

(http://www.city-data.com/city/Seattle-Washington.html)

Full-time Law Enforcement Employees in 2008, including police officers: 1,825 (1,318 officers).40 Officers per 1,000 residents in Seattle: 2.20 Washington average: 1.62

40 "Seattle, Washington (WA) Profile." Stats about All US Cities. 2010. Web. 10 Oct. 2010. <http://www.city-data.com/city/Seattle-Washington.html>.

“With a crime rate of 86 per one thousand residents, Seattle has one of the highest crime rates in America compared to all communities of all sizes from the smallest towns to the very largest cities. One's chance of becoming a victim of either violent or property crime here is one in 12. Within Washington, more than 90% of the communities have a lower crime rate than Seattle.”

(http://www.neighborhoodscout.com/wa/seattle/crime/)

“For Seattle, we found that the violent crime rate is one of the highest in the nation, across communities of all sizes (both large and small). Violent offenses tracked included forcible rape, murder and non-negligent

manslaughter, armed robbery, and aggravated assault, including assault with a deadly weapon. According to NeighborhoodScout's analysis of FBI reported crime data, your chance of becoming a victim of one of these crimes in Seattle is one in 147.”41

“In addition, NeighborhoodScout found that a lot of the crime that takes place in Seattle is property crime. Property crimes that are tracked for this analysis are burglary, larceny over fifty dollars, motor vehicle theft, and arson. In Seattle, your chance of becoming a victim of a property crime is one in 13, which is a rate of 79 per one thousand population.” 41 "Seattle Crime Rates and Statistics - Neighborhood Scout." Neighborhood Search for Home Buyers and Real Estate Investment - NeighborhoodScout. 2010. Web. 10 Oct. 2010. <http://www.neighborhoodscout.com/wa/seattle/crime/>.

(http://www.neighborhoodscout.com/wa/seattle/crime/)

According to the City of Seattle there were 477 registered sex offenders living in Seattle Washington, in May 2009. • •

The ratio of number of residents in Seattle to the number of sex offenders is 1294 to 1. The number of registered sex offenders compared to the number of residents in this city is near the state average.42

“The Law Enforcement Retail Partnership Network (LERPnet) is a secure national database for the reporting of retail theft and serious incidents. LERPnet allows retailers to share information with each other and will soon be able to share information with law enforcement. In response to an alarming rise in organized retail crime (ORC), retailers and the associations representing their interests to launch LERPnet.”43

42 "Seattle, Washington (WA) Profile." Stats about All US Cities. 2010. Web. 10 Oct. 2010. <http://www.city-data.com/city/Seattle-Washington.html>. 43 LERPnet.

2010. Web. 10 Oct. 2010. <http://www.lerpnet.com/>. 98

(www.LERPnet.com)

For this Special Edition LERPnet Report, Organized Retail Crime Incidents reported in LERPnet January 1—September 30, 2009 were reviewed. LERPnet trends show: • The mass market sector has contributed the most incidents to the system (50%) followed by the department/large box (23%) and specialty(15%) sectors.

• Thursday thru Saturday, 2:00-6:00pm are the top days and times when retailers are experiencing ORC incidents most frequently. • The top regions affected by ORC by dollar loss are the Southeast, Midwest and West regions. • The top states affected by ORC by dollar loss are CA, TX and FL. This was further verified by zip codes with top $ losses.44

(www.LERPnet.com)

The chart above from LERPnet shows that the most common days for retail theft are Thursday, Friday and Saturday, with Sunday being the lowest day of retail theft, and Friday being the highest. This information allows Ecochic to anticipate a higher likeliness of theft on those days, meaning that staffing and customer service is especially key on those days of the week.

44 LERPnet. 2010. Web. 10 Oct. 2010. <http://www.lerpnet.com/>.

100

(www.LERPnet.com)

The ORC Incidents by Hour chart shows the hours in which Organized Retail Crime is most likely to occur. Ecochic can use this statistical information to predict when it is most important to have needed staffing and security in order to prevent retail theft. The times in which retail theft is most likely to occur happens in between 2:00pm and 6:00pm.

(www.LERPnet.com)

101 Â

Cultural Issues Operating a retail business in a metropolitan area where 94,952 or 16.9% of residents are foreign born, it will be crucial for Ecochic to have bilingual staff members in order to communicate clearly with those customers who may be visiting or whom do not speak English well enough. Our goal is to make all customers feel welcomed and appreciated in our store, as we feel appreciated as they are making the effort to work with our efforts in creating a better place to live. 94,952 residents are foreign born 45 • 9.4% Asia • 2.7% Europe • 2.2% Latin America Percent of Seattle Residents Foreign Born Seattle: 16.9% Washington: 10.4%

45 "Seattle, Washington (WA) Profile." Stats about All US Cities. 2010. Web. 10 Oct. 2010. <http://www.city-data.com/city/Seattle-Washington.html>.

102

Ethnicity and Sensitivity towards Ethnic Mix

(http://www.city-data.com/city/Seattle-Washington.html)

103

(http://www.city-data.com/city/Seattle-Washington.html)

104

Local Happenings Fremont Nightlife As Rated by Yelp.com – 1 Being highest, 10 Being Lowest46 1. Azzurri Vino Bar –Wine Bar/Italian Dining 2. The George & Dragon Pub - Pub 3. Brouwer’s Café – Eatery by Day/Club by Night 4. Norm’s Eatery & Ale House – American/Pub 5. Nectar Lounge – Bar/Music Venue 6. ToST Lounge – Lounge/Music Venue 7. El Camino – Mexican/Bar 8. Dad Watsons - Pub 9. L.T.D Bar & Grill – Sports Bar 10. Sinners & Saints – Latin American/Pub These bars and clubs are the most popular venues in the Fremont neighborhood, many of which located within walking distance of the proposed location for the boutique. This flow of walking traffic during the night will bring our target consumer into the neighborhood.

Fremont Dining As Rated by Yelp.com – 1. Being highest, 10. Being Lowest47 1. Paseo – Caribbean/Cuban Sandwiches 2. Royal Grinders – Sandwiches/Ice Cream 3. Azzurri Vino Bar – Wine/Italian 4. Kylie’s Chicago Pizza – Pizza 46 “Seattle Restaurants, Dentists, Bars, Beauty Salons, Doctors”. 2010. Web. 10 Oct. 2010. <http://www.yelp.com/search?cflt=nightlife&find_loc=Fremont, Seattle, WA>.

105

5. The Real Falafel King – Middle Eastern/Mediterranean 6. Silence-Heart-Nest – Vegetarian/Breakfast 7. Brad’s Swingside Café – Italian 8. Kwanjai Thai – Thai 9. Chiso Restaurant – Sushi/Japanese 10. PCC Natura Markets – Deli These top ten dining options in the Fremont area are often busy, and full of people, during diner hours, foot-traffic in the Fremont area is high and Ecochic recognizes this by offering “Happy Hour” sales, such as 10% off between four and six p.m. in order to get those customers dining out in the boutique. Seattle Theatres:47 A Contemporary Theatre (ACT) Benaroya Hall (Home of The Seattle Symphony Orchestra) Egyptian Theatre McCaw Hall (Seattle Opera, Pacific Northwest Ballet) Meany Hall for the Performing Arts The 5th Avenue Theatre The Little Theatre The Paramount Theatre Fremont Parks: 1. Rose Garden at Woodland Park 2. Fremont Peak Park Seattle Parks: 1. Kerry Park – Queen Anne: View of the City 2. Washington Park Arboretum – Madison Park 3. Volunteer Park Conservatory – Capitol Hill 4. Discovery Park – Magnolia: View of the City 47 "Seattle Theater Venues." Seattle Hotels, Attractions, Real Estate, Restaurants | City Guide. 2010. Web. 10 Oct. 2010. <http://www.seattle.com/theater/>.

106

5. Meridian Playground – Wallingford Sports Arenas and Stadiums: Qwest Field: Capacity: 67,000. Seattle Seahawks, Seattle Sounders. Safeco Field: Capacity: 47,116. Seattle Mariners. Key Arena: (NBA), Seattle Storm (WNBA) & Formerly the Seattle SuperSonics (NBA). Husky Stadium: Capacity: 72,500. Washington Huskies football. Bank of America Arena at Hec Edmundson Pavilion: University of Washington Sports48

48 "Seattle, Washington (WA) Profile." Stats about All US Cities. 2010. Web. 10 Oct. 2010. <http://www.city-data.com/city/Seattle-Washington.html>.

107

Civic Center & Events Seattle Tourist Attractions: Alki Beach Downtown Seattle Pike Place Market Pioneer Square Space Needle Seattle Science Center International District Fremont Tourist Attractions: Fremont Solstice Parade The Fremont Troll The Rocket Statue of Lenin Interurban Sculpture Fremont Market Fremont Beer Rush Fremont Cinema Fremont Oktoberfest “Center of the Universe” The Fremont Fair - “The most common festival in Fremont is the annual Fremont Fair which occurs mid-June. The Fremont Fair is one of Seattle’s most beloved neighborhood street festivals, featuring a weekend of eclectic activities that celebrate the quirky community of Fremont, the self-proclaimed “center of the universe.” The event draws more than 100,000 people to shop, eat, drink, mingle, groove, and enjoy all manners of creative expression. 49 49 "Fremont Fun Facts." Fremont, Center of the Known Universe... Join Us on Twitter. 2010. Web. 10 Oct. 2010. <http://www.fremontseattle.com/funfacts.html>.

108

Major Seattle Events: Bumbershoot Ballard Seafood Fest Great Wallingford Wurst Festival Lake City Summer Festival Seattle International Film Festival The Northwest Folklife Festival Seafair

The Arts/Museums Fremont Arts: As Rated by Yelp.com – 1. Being highest, 10. Being Lowest50 1. Fremont Abbey Arts Center – Venue/Performing Arts 2. Frame Up Studio & Gifts – Art Gallery 3. Fremont Outdoor Movies – Cinema 4. Fremont Arts Council – Arts & Entertainment 5. Visionary Dance Productions – Arts & Entertainment 6. Orange Splot Gallery – Web Design/Art Gallery 7. Present Sense – Art Gallery 8. History House – Museum 9. Edge of Glass Gallery – Art Gallery 10. Frank & Dunya – Art Gallery

50 “Seattle Restaurants, Dentists, Bars, Beauty Salons, Doctors”. 2010. Web. 10 Oct. 2010. <http://www.yelp.com/search?cflt=nightlife&find_loc=Fremont, Seattle, WA>.

109

The Fremont Art Walk: “On the FIRST Friday of each month from 6-9pm, Fremont's galleries, shops and restaurants are crowded with people looking for something new and finding just that. Our many vendors have fresh, exciting art representing an eclectic mix of syles from artists both local and worldwide.”51 The Fremont Art Walk every first Friday of each month allows Ecochic the opportunity to become involved with the local community and art scene. The immense amount of foot traffic and publicity that this monthly event draws to the Fremont neighborhood will surely generate business for Ecochic every first Friday. This will allow the community to familiarize themselves with Ecochic and venture to the store throughout the month.

Some of the current participants and showings in the Fremont first Friday Art Walk are; • Activespace – 20+ Local Artists • Fremont Brewing Co. – Patti Bowman • 509 Winery and Tasting Room – Tony Teske Photography and live music by The Jelly Rollers • Fremont Abbey Arts Center – “Delight and Destruction”: Various Artists • Creativity Loves Company – Photo Studio • POTS Gallery – Various Artists • Show Pony – Local clothing designers 51 Fremont First Friday Art Walk. 2010. Web. 10 Oct. 2010. <http://fremontfirstfriday.com/>.

110

• Frame-Up Studios – Douglas Tostenson • ArtFXGallery – Doug Stacy • Fremont Jewelry Design – Jeanie Lewis Local Seattle Area Art Museums: •

Bellevue Arts Museum

•

Burke Museum

•

The Children’s Museum

•

Experience Music Project

•

Fremont Abbey Arts Center

•

Frye Art Museum

•

Museum of Flight

•

Museum of History and Industry

•

Olympic Sculpture Park

•

Pacific Science Center

•

Seattle Art Museum52

52 "Museums and Galleries - Arts." Seattle.gov Home Page - The Official Web Site for the City of Seattle, Washington. 2010. Web. 10 Oct. 2010. <http://www.seattle.gov/html/visitor/museums.htm>.

111

Religious Issues Religion Percent Religious Catholic Protestant LDS Baptist Episcopalian Pentecostal Lutheran Methodist Presbyterian Other Christian Jewish Eastern Islam

Seattle, WA 35.07% 15.35% 0.00% 2.58% 1.98% 0.67% 2.79% 2.28% 0.91% 1.29% 4.93% 1.60% 0.11% 0.56%

United States 48.34% 21.76% 0.00% 1.66% 8.38% 0.53% 1.78% 2.49% 2.98% 1.07% 5.20% 1.81% 0.05% 0.64%

“35.07% of the people in Seattle, WA are religious, meaning they affiliate with a religion. 15.35% are Catholic; 0.00% are Protestant; 2.58% are LDS; 4.93% are another Christian faith; 1.60% in Seattle, WA are Jewish; 0.11% are an eastern faith; 0.56% affiliates with Islam.”53 With such a diverse religious community surrounding Ecochic, we will focus on recognizing all holidays of major practiced religions by offering special promotions, and also by window displays and store interior displays.

53 "Best Places to Live in Seattle, Washington." Best Places to Live | Compare Cost of Living, Crime, Cities, Schools and More. Sperling's BestPlaces. 2010. Web. 10 Oct. 2010. <http://www.bestplaces.net/city/Seattle-Washington.aspx#>.

112

Denominational Groups in King County Evangelical (As of 2000) Protestant Mainline Protestant Orthodox Catholic Other

(http://www.thearda.com/mapsReports/reports/counties/53033_2000.asp)

113 Â

Technological Advances Seattle, Washington is headquarters to some of the most innovative and leading edge companies in technology such as Amazon, Adobe, Boeing, and Microsoft. Not to mention, a highly educated population, it is inevitable that Seattle is one of the most up-and-coming cities of technology, from creating smarter freeways with digital speed limit signs based on traffic flow to free public wi-fi internet in a number of libraries, public buildings and community centers. “The City of Seattle is committed to promoting a technology healthy community. The mission of the Community Technology Program is to ensure digital inclusion for all, so that residents and neighborhoods have the information technology capacity needed for civic and cultural participation, employment, lifelong learning, and access to essential services”54 Ecochic plans to use technology in all aspects of business from daily sales, to our online store, communication with vendors, advertising, promotion, bill payment and banking. Not only will this appeal to the local community, but the Seattle area in general, and with so many citizens having access to the internet, it allows a large population of the city to access our website if they are not able to make it into the store.

54 "Seattle Community Technology Program." Seattle.gov Home Page - The Official Web Site for the City of Seattle, Washington. 2010. Web. 10 Oct. 2010. <http://www.seattle.gov/tech/>.

114

Environmental Issues LEED Compliance LEED is an internationally recognized green building certification system, providing third-party verification that a building or community was designed and built using strategies aimed at improving performance across all the metrics that matter most: energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality, and stewardship of resources and sensitivity to their impacts.55 When renovating the retail space, by installing energy star appliances, using solar panels mounted on the rood for energy and a controlled heating system based on the outside temperature, Ecochic’s design team will work very hard to achieve a green building certification. This certification will be seen and appreciated by the target market and be an incentive for them to support of business efforts. 55 "USGBC: Intro - What LEED Is." USGBC: U.S. Green Building Council. 2010. Web. 10 Oct. 2010. <http://www.usgbc.org/DisplayPage.aspx?CMSPageID=1988>.

115

Marketing Strategy Plan

116 Â

Promotional Plan Image Statement Eco-friendly, yet chic, fashionable clothing and accessories for the eco-friendly fashionistas in Seattle and its surrounding neighborhoods including an exclusive Ecochic line as well as merchandise from other eco friendly brands. Ecochic is not just a brand name, it is a lifestyle and we want to ensure our customers that the Ecochic brand is true to their mission and beliefs through each aspect of business. We will provide our customers with quality eco friendly, sustainable clothing at a price point that is reachable for our target market, while still competitive. We will also wholesale our merchandise to other local boutiques and retailers in order to spread the Ecochic movement to a larger market and decrease the distance our consumer would have to drive to reach our store. The idea for the Ecochic apparel line to make chic and fun clothing for women who are concerned about sustainability and environmental affects of the product and merchandise they chose to purchase. Our goal is to make fashion green and eliminate the wasteful processed many manufacturers use to make synthetic fibers through the use of chemicals and pollutants that are harmful to both our environment and ourselves as human beings. We pride ourselves on our efforts to make clothing that is environmentally friendly that also look good, feel good and make our consumers feel good wearing them. From choosing the materials including fibers and fabrics all the way to the final finishing processes, our goal is to make the earth a cleaner and greener place to live while still allowing fashionable women to look good in clothing that is similar to those produced in harmful factories. Our line is made out of both organic natural fibers like cotton, hemp and bamboo as well as recycled fibers such as recycled plastic bottles and recycled spandex remnants.

“Ecochic, Chic Eco-Friendly Fashion for Eco-Friendly Fashionistas”

117

Marketing Mix Ecochic will rely on word of mouth, social media and other technological advertising and marketing techniques in order to reach our consumer. We will also provide online shopping, with delivery only to local areas in order to decrease emissions produced by car and planes used by postage companies. Ecochic is not just a brand name, it is a lifestyle and we want to ensure our customers that the Ecochic brand is true to their mission and beliefs through each aspect of business. We will provide our customers with quality eco friendly, sustainable clothing at a price point that is reachable for our target market, while still competitive. We will also wholesale our merchandise to other local boutiques and retailers in order to spread the Ecochic movement to a larger market and decrease the distance our consumer would have to drive to reach our store.

118 Â

Cameron Levin Couture – “Ethereal, artistic, and opulent, Cameron Levin designs couture cocktail dresses and ball gowns that are hand-draped, made out of fine, natural fabrics and embellished with vintage ornamental motifs.” “Cameron Levin is a Seattle-based fashion designer and fashion writer. She has been featured in Seattle Fashion Week, Seattle Magazine, the Seattle Art Museum and her "Jewels" collection was featured in an oil painting series by popular Seattle city-scape and portrait artist, Ethan Jack Harrington. Cameron works exclusively with fine, natural textiles, and hand-sculpts and constructs her own designs. All garments are available in any size, with the requisite of a client fitting. Prices vary. She is also available for select commission works.”56

Vian Hunter House of Fashion - “See What Happens When You Dress Up A Little?” Vian Hunter designs and sells fashionably classic accessories, dresses, and separates with a

56 Cameron Levin Couture | Seattle Fashion Designer. 2010. Web. 10 Oct. 2010. <http://www.cameronlevincouture.com/>.

119

modern fit, in modern fabrics.57 http://www.vianhunter.com/about1.html

Twice Blushed Designer Amanda Vernell reconstructs once loved wedding gowns into modern masterpieces and an environmentally conscious approach to the wedding dress. ““Twice Blushed” is a design concept that remakes a once-loved bridal gown into a unique, one-of-a-kind work of art that represents an environmentally conscious approach to the wedding dress. Bridal gowns hold layers of beautiful, reusable materials. With a little care these materials can be re-designed into a modern style that fits a new wearer in a customized, personal way. In addition to being a sustainable practice, reusing materials lowers the cost of the dress and allows for more delicate and detailed hands-on work to enhance the design. Twice Blushed gowns are lovingly hand-made in Seattle, Washington.”58 Ecochic hopes to partner with Amanda Vernell and Twice Blushed, to create everyday dresses out of vintage pieces, and maybe even wedding dress remnants that go unused by her.

Revival Ink The best place for unique, artistic, earth friendly apparel.

57 "Vian Hunter :: About." Vian Hunter House of Fashion Home Page. 2010. Web. 10 Oct. 2010. <http://www.vianhunter.com/about1.html>. 58 "About Twice Blushed." Twice Blushed. 2010. Web. 10 Oct. 2010. <http://www.twiceblushed.com>.

120

FlutterBudget Jewelry – Flutterbudget Jewelry is Vintage Made Modern: jewelry crafted from vintage components, thrift store treasures and reclaimed lovelies.

121

Price Our target market, being educated women with incomes from $35,000 to $200,000 dollars and up, it is important for Ecochic to carry a variety of eco-friendly fashions at a variety of price points in order to sufficiently serve our market. This being said, most of our merchandise and products will be price in the contemporary price zone, this zone fits in the budgeted discretionary income of our consumers. Basic t-shirts would be priced at around $30 while denim will be priced at around $130 which is still less than most designer denim brands. Our store will also carry products that are in the lower bridge price zone for consumers such as students, or those who have a lower household income but still have the desire to purchase and wear eco-friendly merchandise. For one-of-a-kind, local designer merchandise, prices are expected to be higher, such as a dress for $290, which is still very accessible for the high-income level women of Seattle. Seattle and the surrounding metropolitan areas is an affluent area with many high educated and high income level residents as well as many middle-class residents which allows us to carry a variety of merchandise and price our products at a variety of prices.

122 Â

Promotional Mix Ecochic will operate all aspects of the business from production to our advertising and marketing efforts as sustainable, environmentally friendly processes. Little means of paper advertising will be used, we will strive to carry out most advertising electronically with little or no print advertisements. We will rely on word of mouth, social media and other technological advertising and marketing techniques in order to reach our consumer. We will also provide online shopping, with delivery only to local areas in order to decrease emissions produced by car and planes used by postage companies. Ecochic is not just a brand name, it is a lifestyle and we want to ensure our customers that the Ecochic brand is true to their mission and beliefs through each aspect of business. We will provide our customers with quality eco friendly, sustainable clothing at a price point that is reachable for our target market, while still competitive. We will also wholesale our exclusive Ecochic to other local boutiques and retailers in order to spread the Ecochic movement to a larger market and decrease the distance our consumer would have to drive to reach our store.

123 Â

Advertising Strategy Magazines & Newspaper Publications: DList Magazine: “DList Magazine is a reflection of the great cities of the Northwest. Covering the newest trends in fashion, restaurants, cocktail culture and nightlife, DList has quickly became the “go-to” publication for all that is fresh and relevant. Utilizing our event platforms and “of-the-moment” editorial content, DList is the “pulse of the Northwest.” Each month DList Magazine prints a combined average of 25,000 magazines. Distribution points range from hotel rooms to local boutiques. Monthly readership reaches over 80,000 local tastemakers and affluent tourists. DList offers an inventive way to reach customers from Portland to Seattle. With over 700 distribution points across the Northwest, DList Magazine will reach readers within key market segments from many walks of life.”59

(http://www.dlistmagazine.com/advertise-dlist)

59 "Advertise with DList." DList Magazine. 2010. Web. Oct. 2010. <http://www.dlistmagazine.com/advertise-dlist>.

124

Seattle Magazine: Seattle magazine is the magazine Seattle lives by. “Seattle magazine readers are affluent. Nearly 45,000 of our readers earn $150,000 or more, compared to just 28,427 readers for Seattle Met. The buying power of our audience is $33,172,790,500 versus Seattle Met’s $18,430,910,250, making Seattle magazine's reader buying power almost DOUBLE that of Seattle Met. In ALL income levels Seattle magazine has more readers than Seattle Met!”60 Circulation and Distribution • Seattle magazine is the most-read regional magazine with an average monthly distribution of 70,000 and a paid subscriber and newsstand circulation of more than 54,000. • Percent of Washington circulation: 90% • Seattle magazine is distributed via in-room paid circulation at 20 Seattle luxury hotels, providing direct linkage to the affluent visitor market. • Sold at Sea-Tac airport newsstands. Who is the Seattle magazine Subscriber? Average Age 51 Own their own home 92% Average Household Income $244,000 Have been to college 94% Hold graduate degrees 30% Average Net Worth $1.85 million Sex

75% Female 25% Male Average Home Value $750,000 Traveled to Hawaii in the last year 30% Traveled to Mexico in the last year 42% Drank wine in the last 30 days 81% (http://www.seattlemag.com/0p108/advertise/)

60 "Seattle Mag - Advertise." Seattle Magazine. 2010. Web. Oct. 2010. <http://www.seattlemag.com/0p108/advertise>.

125

Seattle Times: “The Seattle Times is the Northwest leader in market reach and penetration. Print and online media network delivers news and information to nearly half of Western Washington adults. The Seattle Times operates its website as well as online marketplace sites — NWsource.com, NWjobs.com, NWautos.com and NWhomes.com.”61

61 "The Seattle Times Company - Advertising and Marketing Research." The Seattle Times Company Corporate Web Site. 2010. Web. 10 Oct. 2010. <http://www.seattletimescompany.com/advertise/circulationAudience.htm>.

126

The Stranger: The Stranger is all over Seattle; from restaurants to coffeehouses, bars to clubs, theaters to retailers, laptops to desktops, and on every campus and street corner - we've got the city covered. The Stranger Reaches... “Stranger readers are affluent urbanites in their 20s and 30s with impressive disposable incomes and an appetite for everything the city has to offer. They see more live shows and movies, eat out and shop more, and spend more time online than readers of any other paper in town. Advertising in The Stranger cuts through the clutter to target Seattle's most active consumers. And now, with The Stranger's combined print and online readership, your ad will be seen by more people than ever.”62 Total Readership: 437,200 Circulation: 80,000 Distribution spots: 2,021

62 "Stranger Ad Information - The Stranger, Seattle's Only Newspaper." The Stranger - Seattle's Only Newspaper. 2010. Web. 10 Oct. 2010. <http://www.thestranger.com/seattle/AdInfo>.

127

The UW Daily: The Daily of the University of Washington is the second largest daily in the Seattle area and is read by more UW students than any other daily publication. Student enrollment is around 40,000. There are more than 30,000 faculty and staff members. An average of 14,000 copies of The Daily are printed every day school is in session during the Fall, Winter and Spring quarters. 12,000 copies are printed on the first day of Summer Quarter, then every Wednesday for the rest of the quarter. The Daily is distributed on-campus, on commuter bus routes, and at businesses serving the UW community.63

63 "Advertising with The Daily." The Daily of The University of Washington. 2010. Web. 10 Nov. 2010. <http://dailyuw.com/advertising/>.

128

The UW Daily website receives approximately 10,000 hits per day.

Radio Broadcast: KEXP (formerly KCMU ) 90.3 FM - "Where The Music Matters". UW student run radio. Live and archived streaming music. An innovative, eclectic mix of alternative rock, hip hop, electronic, roots & blues, world & reggae, jazz, and more. KEXP attracts one of the market’s most sought-after demographics. KEXP’s audience is comprised of a high concentration of active 18-54 year olds that are well educated, have high disposable income, are discerning in taste and have a passion for cutting edge music, entertainment and technology. Through supporting KEXP’s programming, your business or organization can reach this valuable audience with on-air marketing messages or through sponsorship of one of KEXP’s special broadcast events.64 No Rates Available. KMTT 103.7 FM - "The Mountain". Adult alternative music. (No Advertising Information readily available to the public) Interested in advertising with The Mountain? Contact: Omari Patterson General Sales Manager 206.577.2489 opatterson@entercom.com65 64 "KEXP 90.3 FM - Business Support." KEXP 90.3 FM - Where the Music Matters. 2010. Web. 10 Nov. 2010. <http://kexp.org/support/bizsupport.asp>. 65 "Sponsors - 103.7 The Mountain - KMTT Radio Seattle, World Class Rock, Concerts." Live In The Mountain Music Lounge Vol. 16 - 103.7 The Mountain - KMTT Radio Seattle, World Class Rock, Concerts. 2010. Web. 10 Nov. 2010. <http://www.1037themountain.com/pages/3953637.php>.

129

KNDD 107.7 FM - "The End". Alternative rock. Loveline with Adam Carolla and Dr. Drew. (No Advertising Information readily available to the public) To advertise on 1077 The End call: Mark Glynn MGlynn@entercom.com66 KPLZ 101.5 FM - "STAR 101.5". Today's hits. Kent & Allen STAR 101.5 is not only the Best Mix of the Everything; but it has become a legacy station featuring over two decades of Kent and Alan in the morning and the music that appeals to adults. 67 (No Advertising Information readily available to the public) The STAR 101.5 Sales Department has the talent and experience to create advertising plans that get results. Contact us today. • Call the STAR 101.5 Sales Department: 206.404-3084 • Fax us at 206.404-3631 • Mailing Address: 140 4th Avenue North, Suite 340, Seattle, WA 98109

66 "107.7 The End Seattle." Homepage - 107.7 The End Seattle. 2010. Web. 10 Nov. 2010. <http://www.1077theend.com/pages/3804395.php>. 67 "Advertise with STAR 101.5." KPLZ Radio - STAR 101.5 FM - Best Mix of Everything Seattle, WA Seattle, Washington. 10 Nov. 2010. Web. 10 Nov. 2010. <http://www.star1015.com/aboutus/advertise/Advertise-with-STAR-1015.html>.

130

Direct Marketing Strategy No means of paper advertising or promotions will be used, this includes our direct marketing efforts. 80% of Ecochic’s advertising will be done electronically with little print advertisements. We will rely on word of mouth, social media and other technological advertising and marketing techniques in order to reach our consumer. By compiling a comprehensive database of the customers whom make purchases at Ecochic, we will collect phone numbers, cell phone numbers and e-mail addresses of both our in-store and online customers, in order to market directly to the consumer. After the customer’s consent to call, text or e-mail them with exclusive offers, sales, promotions and events or just to let them know we have something that we think is perfect for them. Not only will we compile contact information, but also the types of merchandise they purchase in order to better serve them as a customer, and direct them to merchandise, which we think they would be most likely to purchase. The direct marketing methods we will be using are: Direct E-mails Text Messages Phone Calls • No paper use to maintain our mission of being an eco-friendly company. Therefore we will use these above informative methods, which we believe to be the perfect type of media to contact our consumer directly, won’t get lost in the pile of junk mail.

131

Internet Strategy & Means Store Site: www.ecochic.com Ecochic on Facebook Ecochic on Twitter www.fremontseattle.com www.seattle.1thingus.com “Ask five people what sustainability means. You’ll likely discover their answers are as varied as the ways to help support green living. Here in Seattle, we are proud of our community and its status as one of the greenest cities in the U.S., but when it comes down to living sustainably, we often don’t know where to start. It can be an intimidating subject. Entercom is proud to introduce you to [1 THING]. Our goal is to provide approachable, relevant ways to start living green—from hints on energy efficient appliances to action to support sustainability like remembering to turn the water off when you brush your teeth.”68

www.ecofriendlyfashion.blogspot.com

“This site is designed to link boutiques and consumers to eco friendly fashion labels throughout the world, and to promote designers who are building their businesses with conscience. 'Eco Friendly Fashion' is here to make you think twice about what you are wearing and where it came from. After all, we only have one world.”69

www.ecofashionworld.com ““Eco Fashion Guide” The Guide is your ultimate resource to all the designers, brands and stores in eco fashion! We are constantly collecting information and pictures from all over the world to give you a user-friendly overview of all the amazing options for the conscious dresser!”70 68 1Thing Seattle | What's Your 1THING? 2010. Web. 10 Nov. 2010. <http://seattle.1thingus.com/>. 69 Eco Friendly Fashion. 2010. Web. 10 Nov. 2010. <http://ecofriendlyfashion.blogspot.com/>. 70 Eco Fashion, Green, Organic, Sustainable Apparel Ethical Clothing Guide and Directory News and Newsletter. 2010. Web. 10 Nov. 2010. <http://www.ecofashionworld.com/>.

132

Tactical Plan We Ecochic believe the best time to open our retail store location in Fremont would be in the month of February, as the cold winter months are beginning to warm up as spring is approaching. Since Ecochic will not be located in a shopping center, but in a stand-alone retail storefront, accessing Ecochic involves walking, using public transit or driving and parking on the street we thought it would be best to open as the weather is warming and becoming less damp. A February opening will allow Ecochic to make an introduction to the neighborhood, and get its name out before the warm summer months when major events bring thousands of people to the Fremont neighborhood.

133

Gantt Chart Gantt Chart Description: Ecochic Seattle, WA (Fremont) 12 months Prior to Grand Opening Saturday, February 11th, 2012 Initial Location Planning: February-July Market Research: February-May Research Local Market Pinpoint Target Market Consumer Analysis Promotional Planning: May-July Plan Promotions Design Promotions Begin Promotions Store Layout/Design: May-December Lease Store Space: May Sign Lease Contracts Hire Contractor Hire Interior Designer Design Theme & Store Layout: September Choose Color Scheme Choose Fixtures/Displays Choose Materials Product Planning: June-February Plan Inventory: June Order Product Plan Product Displays Receive Product Merchandising: January-February Visual Displays Product Displays Store Inventory Hire/Train Employees: November-February Hire Manager(s) & Employees: November-December Open Interviews Hire Employees Employee Introduction Training: January Store Policies/Procedures Â

134 Â

Technology & Registers Product & Brand Knowledge Opening Day Event Planning: November-February Promotional: November-February Storefront Display Mailings Publicity Event Planning: November-February Offers/Sales/Giveaways Confirm Catering Final Event Plan Soft Opening: Wednesday, February 8th, 2012 GRAND OPENING: Saturday, February 11th, 2012

135

136

Gantt Chart Description: Ecochic Seattle, WA (Fremont) 12 months After Grand Opening Saturday, February 11th, 2012 Customer Base: Ongoing Create Customer Database: February Collect Customer Data Organize Data Analyze Customer Data Further Promotion: Ongoing Plan Promotions Design Promotions Carry Out Promotions Event Involvement: Ongoing Plan In-Store Events: February/Ongoing Summer Preview Party Planning Invite Only Sales Planning “EcoGirl” Member Only Sales Local Event Involvement: Ongoing Research Events Plan/Sponsor Events Participate in Events Employee and Management Training: Ongoing Customer Service: February-May Customer Service/Ettiquitte Consumer Profiles Indentifying Customer Needs/Wants Sales Training: May Appeals/Approaches Selling Techniques Closing Techniques 6 Months Future Inventory Order: June-January Plan Inventory: June-January Attend Tradeshows Select/Order Merchandise Receive Merchandise Ecochic Line: September-December Design 6 mos. Line Production Finished Merchandise on Display Launch Online Store: July-September/Ongoing Hire Web Designer: July Plan/Design Website Store/Online Inventory Software Photo shoot for Website Launch Website: September

137

Advertise Online Site Track Online Sales Analyze Online Sales One Year Anniversary Sale!!! February 1st- February 28th, 2013

138

139

Reach & Frequency Plans Medium D List Magazine Seattle Mag

Seattle Times

The Stranger

The UW Daily

Reach 25,000 magazines printed/mo. Readership: 80,000+ 70,000 issues printed/mo. Paid subscriber /newsstand circulation: 54,000+ Sunday Paper: 1,056,300 readers. Online Readership/Mo.: 5,155,026 Total Readership: 437,200 Circulation: 80,000 Distribution spots: 2,021 14,000 issues printed daily

Frequency Monthly

Size/Duration Mo. Cost ¼ Page/Mo. $483/mo.

Yr. Cost $5,796/yr.

Monthly

¼ Page/Mo.

$430 Approx.

$5,160/yr.

One Sunday/Mo.

2 column inches

$224.45/column inch

$5,389/yr.

$449.08/mo. Monthly

Small Strip: 4.75”w x 2.125”h

No cost information available.

Print: Daily

Print: 2” x 2”

Online: 2 weeks/mo.

Print: $960/yr. Online: $2400/yr.

TBD

Online: Small Rectangle (2 spots) TBD

Print: $20/week. $80/mo. Online $200/mo. TBD

TBD

Online site: 10,000 hits/day. TBD

KEXP 90.3 FM (UW Student Radio) TBD KMTT 103.7 FM "The Mountain"

TBD

KNDD 107.7 FM "The End" KPLZ 101.5 FM "STAR 101.5"

140

Advertising Budget Based on the above research, Ecochic’s proposed beginning advertising budget to get the word out to customers will be $1600/month or $19,200 in the first year.

141

Pricing Plan The basic factors to take into consideration when forming a pricing plan for Ecochic are firstly, our wholesale and/or manufacturing costs, our competition, price maintenance policies (suggested retail prices), handling & selling costs, store policies, nature of the goods, correlation among product lines featured in the store and last but not least, supply and demand factors. Retailers often struggle with placing an adequate price on the products that are sold within the store. In order for Ecochic to make accurate price points and continue with accurate mark-ups and mark-downs, we must be familiar with out target consumer which can be found in the Market Analysis section of this paper. Through a variety of pricing strategies, objectives, mark-ups, mark-downs, prices will be determined with are not only reachable for the consumer but most importantly a profitable price for Ecochic.

142 Â

Pricing Strategies: to achieve an objective…. Premium Pricing – Uniqueness of the Eco-friendly clothing line. Product Line Pricing – Ecochic will offer many exclusive lines, including our own line available through Ecochic exclusively.

Pricing Objectives: Fulfilling Social/Ethical Objective – Eco-friendly consumers who strive to better their environment. Build Store Traffic – Since the Ecochic will be a single-location based boutique, it is important to draw traffic into the store in order to keep the business flourishing.

143

Markup Plan As a small retail boutique, it is important to allow a substantial profit to be made off of any sales, big or small in order to keep the business in the positive day by day. Ecochic has formed a goal of maintaining a Cumulative Markup percentage of 300%, which is the goal for the achieved markup percentage on all goods available for sale from the beginning of a given period or in our case, season. Below is a detailed list of product segments and their corresponding markup percentage.

Product Tops Bottoms Dresses Accessories Shoes Local Designer Lines Ecochic Line

MU % 400% 300% 400% 600% 300% 200% 600%

144

Markdowns & Sale Events Plan Ecochic will rarely place markdowns on merchandise in-store other than special events or end-of-season markdowns, given that our pricing strategies and objectives are not based on sales or profits, but rather a premium pricing strategy for the unique merchandise we will be offering and the objective of fulfilling social and ethical objectives of our target consumer. Ecochic.com will be different in that sense, that there will often be special promotions or discounts given that the consumer is using the site for convenience, while also lowering the cost of operation of the Ecochic store. The Ecochic boutique will however participate in special “exclusive” invite sales for our most loyal customers, in which we will markdown everything in the store between 10% and 20%. These special sales will occur Also, towards the end of a given season, Ecochic will begin to markdown items until the merchandise is gone, with a series of three markdowns. These markdowns can be found in the following chart. Product Tops Bottoms Dresses Accessories Shoes Local Designer Lines Ecochic Line

MU % 400% 300% 400% 600% 300% 200% 600%

MD% #1 20% 10% 20% 20% 20% 10% 20%

MD% #2 10% 10% 10% 10% 10% 10% 10%

MD% #3 10% 10% 10% 10% 10% 0% 20%

145

Stock Turnover Stock Turnover Ratio – The Methodology Equation: Cost of Goods Sold from Stock Sales during the Past 12 Months Average Inventory Investment during the Past 12 Months Ecochic expects to spend around $200,000 on merchandise within the first year, with an opening stock for the year of $30,000 and a closing stock of $50,000 (at cost). Cost of Goods Sold/Average Inventory at Cost = Stock Turnover Ratio For example: the cost of goods sold is $200,000, and our opening stock for the year starts at $30,000 and the closing stock is $50,000 (at cost). ($30,000+$50,000)/2 = $40,000 $200,000/$40,000 = 5 times Therefore, Ecochic’s stock turnover ratio will be five times a year, which allows for more product to cycle through our store, and since we will be offering limited selection, it is expected that our ratio will be higher than average (3.8-4.4) being that we are a boutique with a higher projected profit margin.

146

Terms of Payment: When receiving merchandise from our wholesalers or from our manufacturing facility (for the Ecochic line), we will focus on obtaining any savings offered to us. With a small amount of stock, and a high demand – our boutique is likely to be able to sell a product during the prospective timeline in which the product is expected to turnover. Therefore, if our vendors offer a cash discount on the billed cost of merchandise, Ecochic is willing to make quick payment in order to receive the discount and also to better maintain a relationship with our vendors. For example; Green & Simple could offer us a cash discount on our billed cost of merchandise on a given shipment of 5/30 or Five-net-Thirty. This offering means that Ecochic would receive a 5% discount is the invoice is paid in 30 days or less. On a $5000 order, that discounts an amount of $250 dollars, allowing Ecochic more room for pricing strategies and objectives to be reached,

147

Distribution Plan Off-Site Sales Ecochic will participate in local events such as the Fremont Farmer’s Market, Seafair, Seattle Fashion Week, and other events where our target market frequent. Some merchandise will be offered for sale at these events in order to create brand recognition throughout the Seattle area rather than just to those whom frequent the Fremont area. Ecochic will use special discount promotions in order to appeal to new customers and create sales at these various events

148

Forms of Payment Customer’s at Ecochic will have three methods of payment available to them, Cash payments, or card transactions of either Debit or Credit. Credit cards accepted will be Visa & Mastercard. Ecochic will not accept personal checks as a form of payment due to the risk of receiving either a fraudulent check, or a check tied to an account with insufficient funds. Cash Debit Credit: Visa & Mastercard

149

Means of Shipping/Pricing Charts Ecochic will use United Postal Service’s (UPS) Business Solutions- Small Business Internet Shipping for all of it’s means of shipping and/or receiving products in the U.S. Since Ecochic strives to create a better place for everyone to live, with a focus on sustainability, Ecochic will not ship anywhere outside of the United States to put a limit on the types of pollution and to better our carbon footprint. 71 Internet shipping allows; “Quick Access to Frequent Shipping Tasks” • The Ability to automate your shipping process and reduce paperwork. • Information assets such as address books help ensure correct shipping information, while shipping histories and e-mail notifications give you better shipping insight. • Your address book can hold up to 1,000 distribution lists containing up to 100 addresses each. • Batch file shipping is another dynamic feature that enables you to create up to 250 shipments at one time by importing a .csv file.

• Use the shipment time and cost feature to compare service options and estimate the time and cost of your shipment, so you can pay for exactly the kind of service you need. UPS determines shipping rates for retail businesses based on the weight, and the distance or “number of zones” the package will be shipped. Ecochic will be using Domestic UPS Ground Shipping – Which guarantees delivery in 1 to 5 business days. The rate chart for this option, can be found below, and using the weight and 71 "UPS: Business Solutions." Shipping, Freight, Logistics and Supply Chain Management from UPS. 2010. Web. 10 Nov. 2010. <http://www.ups.com/bussol?loc=en_US&WT.svl=PriNav>.

150

zone travel information or shipping estimator on UPS.com, Ecochic will estimate shipping costs to be charged to the customer (except where free shipping promotions apply).

(UPS Retail Rates & Service Guide)

151

Operations Plan

152

Inventory Control & Management Functions Planning & Forecasting

The Product Life Cycle is important for any fashion retailer to understand, or any retailer for that matter. The Product Life Cycle chart above illustrates the five sales of sales production a product goes through from the early stages of development to when the product is no longer selling and declines in sales. Ecochic will offer a variety of products in various lifestyle stages. The above graph shows the product life cycle from beginning to end in relation to the amount of revenue. As a new product is introduced, revenue begins to increase as the product reaches the growth stage. After the product is well-known and widely available, it has reached the maturity stage where revenue is highest but is not increasing. Ecochic’s owner, Candice Alvarado will use this chart as a way to predict future sales, by looking at what products can be categorized in each cycle and then decide the necessary amounts to be purchased in order to reach our maximum sales potential. We have listed the products in the table below found in our first purchase orders by brand, product, price and last but not least the product life cycle. Ecochic’s current product offering includes products from both the Growth and Maturity stages to ensure that our products will be successful sellers and produce a profit for the boutique.

153

Projected Seasonal Needs •

Based on customer base and sales, projected sales for the upcoming seasons will be determined

•

Follow trends in both fashion and retail sales in order to predict future economic trends and how consumers will be making their purchase decisions

•

Look at past at past and present sales through MerchantOS to determine future sales

•

A higher inventory needed during the Spring & Summer due to tourism and increased foot traffic in the Fremont neighborhood

•

Work with local designers to develop trends in the upcoming seasons

Local Designers

Cameron Levin Couture Cameron Levin is a Seattle-based fashion designer and fashion writer. She has been featured in Seattle Fashion Week, Seattle Magazine, the Seattle Art Museum and her "Jewels" collection was recently featured in an oil painting series by popular Seattle cityscape and portrait artist, Ethan Jack Harrington.” Her target market consists of women ages 20-40.

Del Forte DenimThe designer of Del Forte Denim Tierra Del Forte has been in denim design for seven years and she is already helping the entire industry redefine luxury by putting equal emphasis on ethical production and quality designs. Partnering with the Sustainable Cotton Project (SCP) of the California Central Valley, Del Forte jeans are organically homegrown right here in the USA. DFD has been featured in many fashion and style publications, including many eco-friendly focused publications. Del Forte targets both men and women ages 16-35.

154

FlutterBudget Jewelry – Flutterbudget Jewelry designed and created by Seattle artist and vintage addict, Shannon Peters, creates one-of-a-kind pieces pairing stunning vintage and recycled goods with an eye for clean design and interesting color and texture combinations. Her jewelry is sold on Etsy.com as well as a few local vintage boutiques in downtown Seattle and Capitol hill. FlutterBudget targets women ages 10-100.

Loomstate Organic – Loomstate Organic was launched in New York City in 2004 by designer Rogan Gregory and Scott Mackinlay Hahn, Loomstate was founded as a casual brand dedicated to creating demand for certified organic cotton using socially and environmentally responsible methods of production. Since it’s debut in 2004, Loomstate has had it’s fair share of publicity in style magazines, online blogs and has even has produced a limited feature line that was sold at Target. Loomstate organic has a target market of men, women and children of all ages.

Twice Blushed -

155

Twice Blushed gowns are lovingly hand-made in Seattle, Washington where Designer Amanda Vernell reconstructs once loved wedding gowns into modern masterpieces and an environmentally conscious approach to the wedding dress. Twice Blushed’ target market is women ages 18-60.

Vintage CreationsVintage Creations was founded in 1998 by Beth Nielsen. Using vintage and end run fabrics, each Vintage Creations piece is unique or a limited edition. Vintage Creations is based in Seattle, WA and the line is available in boutiques across the US and Canada. Vintage Creations target market is made up of women of all ages, young and old.

156

Trend Analysis & Resources Ecochic’s owner and buyer, Candice Alvarado will subscribe to a number of trend forecasting associations such as WGSN.com, Women’s Wear Daily (WWD). Each year, the owner of the boutique (Candice Alvarado) and a buying assistant will travel to select fashion shows and trade shows to help predict upcoming trends and choose products to feature in the store. However, we strive to obtain as many local brands and designers as possible before reaching out to those not located in the Seattle area.

•

Attend Eco Fashion Week & Trade show in Vancouver, B.C. during the last week of February each year

•

Attend the E.C.O. Trade Show in Las Vegas Nevada during the second week of February each year

•

Attend local green fashion events such as Seattle Green Fashion Week, Seattle Fashion Week and Fashion First

•

Subscribe to WGSN

•

Subscribe to Women’s Wear Daily (WWD)

•

Follow trending blogs

•

Partner with Eco Fashion World

157

Tracking Stock on Hand Software & POS Terminal Ecochic will use a computerized system for all tracking of merchandise including sales. The software we have chosen to use if MerchantOS, a simple and easy to use POS software featuring a special boutique point of sale system that will allow Ecochic to easily track sales, customers, and inventory. The software is Internet based and everything is simultaneously backed up to prevent data loss and eliminate bulky servers. MerchantOS even sends a compatible computer that will work best for your store. The system costs $50 to $100 per month depending on the size of business and there are no startup fees or hidden costs there are also no contracts to sign or penalties for changing or canceling your service. Hand Count At the beginning of each fiscal quarter, all current Ecochic employees will complete a hand count inventory of all merchandise in store, as well as in any areas of storage. Inventory will take place on a Sunday night after the boutique has closed, to eliminate the need to close the store during business hours for inventory. The storeowner and manager will oversee all processes of the hand count inventories to ensure the information is accurate. After the inventory is complete, the owner (Candice Alvarado), managers and sales associates will analyze the information and if needed improve employee presence and eliminate shortage. External Inventory Once a year, in February, Ecochic will hire an external company to come in and complete a full-store inventory. We will use Seattle based, American Inventory Company to complete a comprehensive inventory of all merchandise in the store. By using an external company, the inventory process will be more accurate and will prevent better show the effects of both internal and external theft and our boutiqueâ&#x20AC;&#x2122;s overall inventory management.

158 Â

Human Resources Taxes & Accounting Ecochic will hire a professional accountant to manage all aspects of taxes and accounting for the business. We have chosen to hire experienced and long time CPA, Diane Bates. Legal For the handling of all of Ecochic’s legal matters, we have hired attorney and long time trusted friend and business partner, Elizabeth Lee. Records Keeping In terms of records keeping, owner of the Ecochic boutique (Candice Alvarado) will maintain all records with the assistance of a computer database and the MerchantOS POS system. Hiring •

Application for employment submitted first by the applicant

•

Review of application

•

If applicant is qualified for an open position, call back for an interview

•

Store manager will conduct initial interview process and review experience and contact at least 1 previous employer as a reference

•

If store manager approves, a second interview process will take place with the store owner, Candice Alvarado

•

In the case where an applicant shows qualifications and potential for the open position at Ecochic, the position will be offered

159

Training •

Sales & customer service training for new employee will take place within the first two weeks

•

New employee will shadow current employees for the first week

•

New employee will first be assigned smaller tasks and once proven capable, larger tasks will be assigned

•

Manager will be in charge of over-seeing all training processes

•

Manager will train on company and store policies as well as instructions for operating the POS system

•

Employees will have a mandatory meeting and sales training session once a month to ensure that our employees are educated and provide the highest level of customer service.

Dismissal An employee will be allowed three occurrences maximum per year of employment before performance is reviewed and may result in dismissal. However, good behavior has the potential to waive occurrences if seen fit by management. This policy will be clearly stated and available to employees at all times. The following incidents along with point value are as follows: •

Tardiness of 10 minutes or more without notice will receive .5 occurrence

•

Calling out “sick” receives .5 occurrence

•

Not showing up for a scheduled shift receives 1 occurrence

•

Negative incident or conflict with customer of low-effect on business receives .5 occurrence

•

Negative incident or conflict with customer of high-effect of business receives 1 occurrence

•

Negative incident or conflict with employee of the same standing receives .5 occurrence

•

Negative incident or conflict with employee of a higher standing (owner or manager) receives 1 occurrence

•

Theft will result in immediate dismissal 160

•

Time fraud will result in immediate dismissal

•

Other serious offenses will result in immediate dismissal if seen fit by management

161

Facilities Maintenance Janitorial The cleanliness and up-keep of the Ecochic boutique will be the responsibility of all employees. There will be scheduled daily, weekly and monthly cleaning tasks based on need. Daily: •

Maintain an organized sales floor

•

Wipe down cash wrap with disinfectant solution

•

Maintain a clean and well stocked (supplies) restroom

•

Replenish merchandise as needed if any back stock

•

Keep dressing rooms clean

•

Take out waste from the day (closing shift)

Weekly: •

Dust all fixtures and surface areas that may collect dust

•

Vacuum, sweep and mop entire store floor (Sunday closing shift)

•

Clean storefront windows

•

Organize storage room and replenish merchandise

•

Organize cash wrap area – replenish supplies as needed

Monthly: •

External Janitorial Staff – Sage Green

External Janitorial System Once a month, Ecochic will use an External Janitorial service to professionally clean the entirety of the boutique to ensure the boutique remains in pristine condition. To stay true to our eco-friendly goals and beliefs, we will use Seattle based Sage Green Facility Solutions. They are committed to being an all-natural cleaning company that uses only nontoxic, earth-friendly products

162

Equipment •

POS Computer System – managed by MerchantOS

•

POS technician – MerchantOS will hire out a qualified company

•

Ecochic.com website developer and host – Ryan Hoback

•

Ecochic customer database developer – Ryan Hoback

•

Solar Panel technician – Brent Borden

Security & Alarm Systems To manage the security systems for the Ecochic boutique, we have hired Seattle based company Protective Systems Incorporated. PSI has been operating in Seattle for 40 years and is one of the most highly trusted security companies in the northwest. PSI offers the following services for commercial businesses; •

Custom security systems

•

Fire/sprinkler systems

•

Video surveillance

•

Remote video services such as a smart phone application to view your store at any given moment

•

Access control

•

Wireless security and alarm systems

163

Customer Service Complaints Ecochic operates with a high standard of customer service, therefore customer complaints will be taken with the upmost consideration and if possible, action(s) will be made to ensure the customer is satisfied with their shopping experience. However, the customer isnâ&#x20AC;&#x2122;t always right and different situations will require different responses to a complaint. In a fair situation where a customer was not satisfied with the merchandise purchased, we will gladly return the item for a refund or exchange the merchandise for something else. Since we have close relationships with most of our vendors, in most cases they will return the item for some sort of compensation if a customer had a justifiable complaint or problem with the product. Ecochic Store Return Policy Ecochic will gladly accept returns of items in their original condition with Ecochic store price tickets attached accompanied with the original store sales receipt. Items must not be worn, altered or washed. Original method of payment will be refunded for all returns accompanied by an Ecochic store receipt within 30 days of purchase. Store credit will be issued for all returns accompanied by a store receipt after 30 days of purchase. Returns with a gift receipt will be exchanged or refunded for the value indicated on the gift receipt. Refunds will be made in the form of store credit. A one-time price adjustment will be granted when an original store sales receipt is presented within 14 days or purchase. Merchandise credit will be issued for returns of beauty and personal care items accompanied by a store receipt within 30 days of purchase. Gift cards cannot be returned or exchanged. Ecochic.com Return Policy Ecochic will gladly accept unworn, unwashed or defective merchandise for return or exchange within 30 days from the shipping date. Free shipping both ways on even exchanges; if you ordered the wrong size or color, no worries! If you need to exchange an item for the same item in different size or color, we will waive the costs of return shipping. Â

164 Â

Most returns are processed within ten days after we have received them in our warehouse. We will send you an email confirming that your return or exchange has been processed. You may also check the status of your return by logging into your account and viewing your order history. Your refund will be credited back to the original method of payment used to make the purchase. If you paid with a gift card, a new gift card will be issued for the amount of the credit and mailed to you. Follow the directions on the back of the packing slip to return merchandise for credit or exchange. Pack all items in a secure (preferably recycled or recyclable) carton or reuse the original packaging and enclose the packing slip. Referrals Customer Referrals •

A loyal customer whom refers a new customer to the boutique whom makes a purchase of $50 or more will receive 20% off of their next purchase

•

As a small business, word of mouth can make our break our boutique therefore we want to promote positive word of mouth and customer referrals

Business Referrals •

As a local small business, and a member of many local small business associations it is not uncommon for business-to-business referrals

•

If a business refers a customer to us, that makes a purchase of $50 or more we will send a thank you note, along with 10% off for all of their employees and 20% for the store manager and owner

After Sale problems In the event that a customer is not satisfied with an item purchased from the Ecochic boutique or there is performance issue or problem with the garment Ecochic will work to help the customer and solve the problem at hand. With much of our merchandise being locally produced and hand crafted, the products are more fragile and might not perform to the standards that industrial produced clothing has set. Therefore, we will offer to have the merchandise altered or repaired within reason. After sale problems are judged and handled on a case-by-case basis by a store manager or by the store owner, Candice Alvarado.

165

Financial Plan

166

167

168

169

170

171

172

173

174

175

176

177

178

179

180

181