Carissa Hanley / FASM 430 / Portfolio Capstone
Proposal
• Expand Mejuri into United States: West Coast • Three permanent stores in LA, Portland, and Seattle • Include market analysis: jewelry market in the US • Operational plan, product assortment, and P&L statement • Final conclusion: what comes next?
Table of Contents i. ii. iii. iv. v. vi. vii. viii.
Brand Introduction Market Analysis Location Analysis Key Competitors Store Distribution Product Plan Operational Plan- 1 Year Conclusion
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The Brand
Brand Introduction Toronto-based fine jewelry brand launched in 2015 Co-Founders: Noura Sakkijha and Justine Lanรงon Direct-to-consumer market - keeps margins low and better customer service Products offered: Rings, bracelets, necklaces, earrings, personalized (engravings) Fine jewelry for women who want to shop for themselves
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Brand Mission
We strive to give you extraordinary, quality craftsmanship through ethical practices so you can enjoy fine jewelry that you can feel good about. By cutting out the middleman, we can provide luxury jewelry at accessible prices.
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The Showroom- Toronto 906 Dundas St W., Toronto Hours Monday - Friday: 12pm - 8pm Saturday: 11am - 7pm Sunday: 11am - 6pm � Contact contact@mejuri.com Text us: +1 (310) 597-4745
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The Showroom- NYC 43 Spring Street, New York Hours Monday - Friday: 12pm - 8pm Saturday: 11am - 8pm Sunday: 12pm - 6pm � Contact contact@mejuri.com Text us: +1 (310) 597-4745
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Objective Increase brand awareness through brick and mortar opportunities by appealing to the target consumer through alluring displays, effective advertising, and desirable product selection
Expand three permanent stores into West Coast -Los Angeles, CA -Portland, OR -Seattle, WA Build relationships with new consumers by expanding into the United States
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The Market
Market Analysis Jewelry Market Size & Scope
Jewelry Market in the US grew from $80 billion to $91billion in 2016 to 2017
USA Disposable Income USD million 2018 Prices 15,174,041.5
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Market Analysis Los Angeles
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Market Analysis Portland Portland
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Market Analysis Seattle
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Market Distribution Growth of Market Share Unique approach to marketing and selling Since launching, Mejuri has grown 400% year over-year through organic marketing and strong social strategy The personal connection with the community has gained a loyal consumer base Repeat customers account for over 40% of its monthly transactions Mejuri quadrupled their expected sales for 2018.
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Target Market Creative, inclusive, bright
A mindful shopper
Trend savvy, social, not risk averse
A millennial woman
Willing to pay more for quality and ethical practices
Customer is predominantly 18-34
Customer wants to be heard and valued Common underlying pattern of making purchases to celebrate, mark a large life event, or simply treat themselves
Has an evolving sense of understanding on internal and external corporate affairs & social issues Educated Experiencer, Innovator
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Consumer Profile
meet Lana 27 years old Lives in San Diego, CA Income of 95k as Coastal Ocean Research Scientist Creative, inclusive, bright Majored in Oceanic and Atmospheric Sciences at University of California, San Diego Trend-savvy, social, loves trying new things Mindful shopper; shops at Madewell, Mejuri (online), and Outerknown Will pay more for quality & ethical practices
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Location Analysis
Los Angeles, CA
Los Angeles Population 2010 Census- 3.792 million
• Females 18 years and over 1.476 million, 38.9% of population
Median household income, $54,501 In civilian labor force, female, percent of population age 16 years+, 2013-17, 59.6% Total retail sales, 2012 ($1,000) 40,156,864
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Los Angeles- Jewelry District
According to the Los Angeles Convention Center and Visitor’s Bureau, it is the largest jewelry district in the United States The annual reported sales from the Jewelry District is just under $3 billion (2017) Half of the area falls under the greater “Historic Core” of Downtown Los Angeles, which spans between Hill and Main Streets, and 3rd and 9th streets
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Portland, OR
Portland Population 2010 Census- 583,776 • Females 18 years and over 239,798 81.4% of population Median household income, 2013-2017 $61,532 In civilian labor force, female, percent of population age 16 years+, 2013-17, 66.2% Total retail sales, 2012 ($1,000) 8,508,267
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Portland, OR- The Pearl District
The Pearl District is home to some of the city’s best-known chefs and restaurants, world-class art galleries, and vibrant shops and boutiques Located in the heart of downtown, a range of businesses can be found here, nestled among family-friendly parks that attract visitors and locals Portland’s public transportation options, including the TriMet buses and the Portland Streetcar run around the district for convenient access
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Seattle, WA Seattle Population 2010 Census608,660 • Females 18 years and over 258,586 84.9% of population Median household income, 2013-2017 $79,565 In civilian labor force, female, percent of population age 16 years+, 2013-17, 68.7% Total retail sales, 2012 ($1,000) 40,037,940
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Seattle, WA- Westlake Center Seattle’s Westlake Center is a four-story shopping center and twenty-five story office tower in Downtown Seattle Opened in 1988 and home to near 22 well-known stores and surrounded by upscale eateries. The reported annual revenue is $11 million (2016) Westlake Center is a public transportation hub serving as a terminus for the Seattle Center Monorail and the South Lake Union Streetcar. Beneath the mall, in the Downtown Seattle Transit Tunnel, are stops for Metro buses and Sound Transit’s Link Light Rail Surrounding the mall and park, Seattle’s main shopping district draws scores of both locals and visitors
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Key Competitors
Manufactured in LA , sold online Founded in 2014 Quality materials, handmade craftsmanship; reputable fair trade suppliers Only solid gold and quality diamonds Products responsibly made; small markups due to domestic manufacturing Price: $30-165
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Toronto based Founded in 2008 Sold throughout 500 retailers including small boutiques in Toronto, Midwestern US, online, and Nordstrom Jenny Bird is inspired by the scenic nature of her hometown; Elora, Ontario, Canada Price: 40-345
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NYC (Tribeca) based and made Founded in 2011 Sold Online “Expensive taste, minus the markup” domestic manufacturing accounts for small markups “Pieces are our own pride and joy, handmade and smartly designed inhouse, just the way we’d want them to be — all the way down to the details” Price: 30-825
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Store Distribution
Jewelry District Demographics: Among an ethically diverse Los Angeles population, cultural consumers are 70% Caucasian. Hispanic persons represent nearly half of the population and just 12% of cultural consumers. The study shows that a large amount of LA households identify as one or more races; however, very few among the cultural community were found to have that attribute. Area Footfall:
Psychographics: Loves photography, shopping at vintage stores but favors higher end jewelry pieces that compliment any outfit. Has traveled to large cities like San Fransisco, New York, and/or Chicago. Loves to read non-fiction stories, goes to Alfred’s Coffee Shop and shops at Trader Joes.
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The Space 1320 S Main St Units A&B Newly renovated space available for lease! This space faces the alley, and it’s like a mini Santee Alley. Windowed frontage with tons of natural light. There’ll be AC. There’s a private bathroom, brand new faux wood flooring, high ceilings, fresh paint, and more!
Features: • • • • • •
High Ceilings Natural Light Additional Storage Parking Onsite Monthly Rate: $2,850 Square Feet: 1,900 sqft
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Pearl District Demographics:
Psychographics:
Portland is the 26th largest US city. Portland is home to a wide variety of persons where cultural consumers are 76% non-Hispanic. The Asian community represent the second highest demographic and 8% of cultural consumers. This city remains predominately white, although the percentage has dropped some in the past 50 years.
Enjoys the simpler things in life, shopping at local boutiques, wants something not everyone has. Culturally educated, loves to walk the shopping district during free time and watches the rain from cafe windows. Likes to visit Proud Mary for authentic Australian cuisine.
Area Footfall:
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The Space 1030 NW 12th Ave This corner loft retail space has 844 SF of designer loft space in the Pearl District, Suite TH1 in the Streetcar Lofts. The building has won several national architecture awards for its “Soho Loft” design. With one of the most recognizable signs in the Pearl, the “Go By Streetcar” neon sign is situated directly towards the street view. Features: • • • • • • •
Recongnizable Area Jewlery Displays Included Concrete Floors Floor to Ceiling Windows Parking Onsite Monthly Rate: $1,967 Square Feet: 844 sqft
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Westlake Center Demographics:
Psychographics:
The Emerald City, Seattle, is the 15th largest US city and the largest in the Pacific Northwest. Although the population is predominantly Caucasian, diversity within the region is growing. Non-Hispanic whites account for 66.3%, Asians 13.8% and AfricanAmericans are 7.9% of the population.
Loves picnics in the park with friends, shopping at high end stores as well as thrifting. Sustainable and ethically conscious consumer. Enjoys weekend traveling and spontaneous adventures. Loves to read at Starbucks.
Area Footfall:
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The Space 400 Pine Street One of the most widely know shopping centers in Seattle. Convieniantly placed near public transit stops with high foot traffic Westlake Center will be undergoing a multi-level renovation that will include new retailers, restaurants, and amenities. Enhancing the customer experience to continue to be an integral part of the downtown Seattle community. Estimate Rent: $2,375/mo
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Assortment Plan
Earrings
Bold Hoops: $150
Bound Huggies: $59
Bold Hoops: $150
Bar Studs: $89
Spiral Hoops: $125
Small Hoops: $49
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Rings
Diamond Open Ring: $159 Boyfriend Stacker Ring: $59
Boss Signet Ring: $245
Stacker Ring: $59
Round Cut Ring: $950
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Bracelets
Mini Lotus Bracelet: $169
Bold Sphere Bracelet - $295
DĂ´me Bracelet: $95
Boyfriend Bracelet: $140
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Necklaces
Bound Necklace: $79
Lotus Necklace: $79
Astrology Necklace: $79
Boyfriend Necklace: $79
Diamond Necklace: $290
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Assortment Plan- 6 Months
1150 Pieces Highlighted Best Sellers Final Sale Value: $144,659
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Operational Plan
Launch Party On the opening night of the Soft Launch, we will invite 20 local influencers, to join in celebrating the opening We will also invite Mejuri’s top returning customers from Los Angeles. Participants can check out the store and get an exclusive look at the featured products and an inside scoop to the new pieces that will be introduced. The store will be very Instagrammable, so we hope the guests will take lots of photos and videos to post. Mejuri’s in-store piercing studio will also be a highlight. Champagne will be provided, of course.
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Launch Party Alisha Marie is a fashion and beauty guru whose self-titled YouTube channel has accumulated more than 8 million subscribers. She has also starred in movies Guidance (2015), The Dumpster Room (2018) and Bizaardvark (2016). In 2018, she started a podcast called Pretty Basic with fellow beauty Youtuber Remi Cruz.
AlishaMarie 3.9m followers • 4.3% engagement • 170k likes per post LA Based Content Creator twitter -> @alishamarie alishamarie@mattermediagroup.com shopalishamarie.com
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Operational Plan- 1 Year Expenses
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Profit & Loss Statement- 1 Year Expenses
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Launch Party On the opening morning of the Soft Launch, we will invite 30 local influencers, to join in celebrating the opening We will also invite Mejuri’s top returning customers from Portland. Participants can check out the store and get an exclusive look at the featured products and an inside scoop to the new pieces that will be introduced. The store will be very Instagrammable, so we hope the guests will take lots of photos and videos to post. Mejuri’s in-store piercing studio will also be a highlight. Mimosas & Bloody Mary’s will be provided.
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Launch Party Tonya Smith (@themoptop) is a fashion blogger based in Portland, OR. The Moptop comes from her love for the Beatles and her self-proclaimed messy hair. She also has a following on Pintrest, Twitter, and Youtube. She also has a large following on her fashion blog, (bloglovin.com/moptop).
Tonya Smith 128k followers • 3.45 % engagement • 4k likes per post Portland Based Fashion Blogger #themoptop @moptopvintage Collaborations: themoptopblog@gmail.com https://themoptop.com/
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Operational Plan- 1 Year Expenses
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Profit & Loss Statement- 1 Year Expenses
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Launch Party
On the opening evening of the Soft Launch, we will invite 45 local influencers, to join in celebrating the opening We will also invite Mejuri’s top returning customers from Seattle. Participants can check out the store and get an exclusive look at the featured products and an inside scoop to the new pieces that will be introduced. The store will be very Instagrammable, so we hope the guests will take lots of photos and videos to post. Mejuri’s in-store piercing studio will also be a highlight. Red & White Sangrias will be provided, of course.
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Launch Party Aika, orginally from Japan, is now a Seattle based fashion and beauty blogger. She focuses on her versatile yet unique style. Inclusive and passionate, her desire to inspire is infectious. She includes tips, tricks, and where to buy. She also has a strong following on Pintrest, Twitter and Bloglovin. Aika 76.4k followers • 3.79 % engagement • 3k likes per post Seattle Based Fashion Blogger YouTube: AikA’s Love Closet aika@aikaslovecloset.com www.aikaslovecloset.com/
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Operational Plan- 1 Year Expenses
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Profit & Loss Statement- 1 Year Expenses
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What Comes Next?
Conclusion While Mejuri is as a loss for the first year of operation, we are confident that within 3 years of opening Mejuri will start to see profit and that this expansion will generate brand awareness and increase sales, online and in-store, in the US. Mejuri could test a pop up in the metro area of Washington DC and surrounding territories. Open a permanent store in Vancouver, Canada since the pop-up there in March went so well. In 10 years, it is our goal to open 15-20 stores throughout the US, including a store in Puerto Rico, if market allows. Hopefully, Mejuri can look to beyond the US and Canada soon, as brand awareness, sales, and funding grow.
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Industry Importance
As Millennials and Generation Z enter the marketplace with their own disposable income, the demand for more ethical, sustainible products will rise Mejuri’s mission for ethical jewelry is routed down to their core values and is present in all aspacts of the brand. Recently backed by new funding through the Series B Investing, Mejuri has raised over $29 million over 3 years, the company is able to expand into bigger cities and from there grow all over the US to meet, and exceed the demands of the growing consumer mindset.
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Resources https://www.officespace.com/or/portland/1949-1030-nw-12th-ave https://www.dtlarealestate.com/property/1320-s-main-st-a-b/ https://www.brookfieldpropertiesretail.com/leasing/kiosks-carts-specialty-leasing/pop-ups.html https://www.brookfieldpropertiesretail.com/properties/property-details/westlake-center.html https://www.westlakecenter.com/en/visit/renovation.html https://www.mejuri.com https://www.glossy.co/podcasts/mejuri-founder-noura-sakkijha-the-jewelry-industry-is-highly-fragmented/ https://www.glossy.co/fashion/backed-by-new-funding-dtc-jewelry-brand-mejuri-plans-for-global-physicalexpansion https://www.blogto.com/tech/2013/02/get_to_know_a_toronto_startup_mejuri/