GUESS 6 Month Buying Plan

CHLOE MAGPAYO

FRANCIE HUTCHESON

NATHALIE GRATAS

TRISHA BHAVNANI

GUESS HISTORY GLOBAL PRESENCE BRAND VALUES TARGET MARKET SUSTAINABILITY PRODUCTS & CATEGORIES SIZE & SCOPE MARKETING & PROMOTIONS FUTURE: GROWTH & CHANGE DENIM SALES TRENDS & TECHNOLOGY COMPETITORS SWOT BUYING PLAN PRODUCT ASSORTMENT SUMMARY SOURCES

TA B L E O F CONTENTS

• Founded In 1981 By Georges Marciano • American Clothing Brand And Retailer • Womenswear, Menswear, Fashion Accessories And Fragrances • Most Popular Brand Of Denim Jeans In 1980S • First To Create Designer Jeans • Bloomingdales: First To Sell • Beginning Of Success

H I S T O RY

BRIEF OVERVIEW(T)

• Went Public In 1996

Stonewashed Denim Lighter In Color Softer And More Form Fitting

S I G N AT U R E S T Y L E

HISTORY & BRAND VALUES(T)

CUSTOMER PROFILE (T)

Head Quarters: Los Angeles, California 1680 Stores Worldwide 945 Stores And Concessions In The Us, Canada, Europe, The Middle East, And Asia 284 In The U.S 735 Stores And Concessions Are Run By Licensees And Distributors In The Same Markets

RECENT CHANGES (T)

GLOBAL PRESENCE

“At GUESS, We Are Committed To Being A Worldwide Leader In The Fashion Industry” Uncompromising Quality & Consistency Honoring Individuality And Embracing Diversity

BRAND VA L U E S

The Essence Of The Company Can Be Expressed In Three Words: Wonder, Passion And Freedom.

Guess Became A Symbol Of A Young, Sexy And Adventurous Lifestyle. Throughout The Decades Guess Invited People To Dream With Its Iconic And Timeless Advertising Campaigns.

The Guess Customer Has Developed His Or Her Own Personal Fashion Identity, Finding A Balance Between The Fantasy Of Fashion And The Reality Of Life. Smart And Confident, Witty And Sophisticated, Each Is Fashion Conscious And A Trendsetter. The Guess Customer, Just Like Guess Itself, Is Sexy, Strong And Chic.

CUSTOMER

The Target Customer Of GUESS Is StyleConscious And Has A High Predilection For Brand Identity.

This Group Comes Under The Demographic Known As Millennials: • Group Of 18-39 Year Olds • Account For Approximately 30% Of The U.S Population • About 90 Million People • Average Spending Power Is In The Region Of $25,000 To $60,000 Per Annum

CUSTOMER

• 1992: Sweatshop Allegations • 2005: “Ski Colombia: Always Plenty of Fresh Powder” T-Shirts • 2018: Sexual Misconduct

CONTROVERSIES

2015 • Victor Herrero Replacing Paul Marciano As CEO -Profits slumped to a 10-year low -Lack Of Strategic Leadership

2017 • Camila Cabello - New Face Of GUESS • Growing Business In Europe & Asia • Rent Reduction And Store Closures -Over 60 Stores Closed (U.S)

2018 • Jennifer Lopez - New Face Of GUESS • 33 New Stores In Europe • International Expansion -First Time In Cyprus And Czech Republic • 12 Stores in Asia - 7 Within China

RECENT CHANGES

2017

2017: • GUESS Joined The Better Cotton Initiative • Issued A Responsible Sourcing Policy On Rayon And Other Cellulosic Materials To Protect Forests And Local Communities JUNE 2018:

S U S TA I N A B L I T Y

• GUESS Partnered With I:CO (I:Collect) • Launch Wardrobe Recycling Program - RESOURCED - 5 Pieces Of Clothing Or Footwear = 15% Any Purchase Online Or In-Store

In 2015, Paul Marciano Stepped Down As The CEO And Victor Herrero Took His Place. Since Then, Mr. Herrero Has Led Guess To A Steady Revenue Increase

REVENUE STREAM

(In US Dollar Billions)

Dresses

Denim

Tops

Jackets & Tops

Night Out

Skinny

Tees & Tanks

Denim Jackets

Black Dresses

Sexy Curve

Logo Tees

Lightweight Jackets

Floral Dresses

High Rise

Blouses

Blazers

Mini Dresses

Mid Rise

Bodysuits

Leather

Midi Dresses

Low Rise

Night Out

Outerwear

Maxi Dresses

Light Wash Medium Wash

Off The Shoulder Sweaters & Knits

Dark Wash

Activewear

Lace Tops

Jumpsuits & Rompers Sweaters Bottoms Shorts Skirts Pants Leggings

PRODUCTS & CATEGORIES

Layering Basics

Accessories

Bikini

Handbags

Watches

One-Piece

Crossbody Bags

Cover-ups

Wallets

Hats & Scarves

Swimwear

Belt Bags

Lingerie Bras Panties The Logo Shop

Tote Bags Backpacks Satchels Luggage & Travel Bags Logo Bags

Key products include and in order of popularity : Jeans, Pants, Skirts, Dresses, Shorts, Blouses, Shirts, Jackets, Knitwear, Intimate apparel, eyewear, watches, handbags, footwear, kids’ and infants’ apparel, outerwear, swimwear, fragrance, jewelry, fashion accessories

Jewelry Sunglasses Belts Fragrance Keychains

Shoes Sandals Sneakers Wedges Boots & Booties

• Retail Stores • Website • Like-To-Buy • Instagram • Department Stores • Resellers • Concept Stores • eBay

Guess Inc. G by Guess Guess Factory Marciano Women GUESS Kids

BRANDS

LOCATIONS

Alabama

Nevada

Arizona

New Hampshire

California

New Jersey

Colorado

New Mexico

Connecticut

New York

Florida

North Carolina

Georgia

Ohio

Hawaii

Oklahoma

Illinois

Oregon

Indiana

Pennsylvania

Kentucky

South Carolina

Louisiana

Tennessee

Maryland

Texas

Massachusetts

Utah

Michigan

Virginia

Minnesota

Washington

Mississippi

Wisconsin

• Gift With Purchase • Buy One Get One Half Off • Free Shipping On Orders Over $300 • New Customers Get 15% • Rewards Program

-VIP Events

-Special Offers -Rewarded Every Time You Shop • Annual Black Friday Sale Up To 50% Off Everything

KEY PROMOTIONS

Product Category Price Range Skinny

$79-168

Sexy Curve

$79-128

Low Rise

$79-148

Mid Rise

$69-98

High Rise

$79-148

Light Wash

$79-148

Medium Wash

$69-168

Dark Wash

$79-148

PRODUCT PRICING

• Know for having Best Quality Denim • Offers Low End Prices & High Prices • Prices Differ Depending on Region • Markdowns Occur on Outdated Denim

PRICING STRATEGY

FINANCIAL FIGURES

• GUESS Already Has a Global Prescence • Potential to Grow Online Prescense • Expand Retail Market in the U.S. • Need to Lose a little Sex Appeal in order to Adapt to todays consumers

POTENTIAL FOR GROWTH & CHANGE

NOHANT SS 19

GANNI SS 18

BLEACHED DENIM

RAW DENIM BOOTCUT FIT ALEXANDER MCQUEEN SS 19

TRENDS

RAW DENIM Digital Print That Mimics A Look Of Raw Denim. This Method Saves Water And Avoids The Use Of Chemicals In The Wash Process.

A Dark Denim Wash Accompanied By Contrast Stitching, Emphasized Details, And Outlining Functionality.

This Trend Is Projected To Be A Success For S/S 19 To F/W 19 Onwards.

EVE SS 19

DICKIES X UO SS18

TRENDS

TOPSHOP FW 18

Mudjeans Makes Use Of 40% PostConsumer Recycled Denim Which Makes It A Good Product Model For This Trend.

Guess Will Employ Recycled Cotton Which Reduces Climate And Water Impacts By Up To 90% (H&M, 2016).

CHLOE RESORT 19

ALICE + OLIVIA SS19

BOOTCUT FIT

This Trend Is Classes And Wearable, Going From A Slim To Subtle Flare. To Have A Premium Feel, The Trend Makes Use Of Raw, Dark Rinse, And Jacquards.

High Waists Are An Essential Feature To This Trends. Additional Features Could Be Split Or Raw Hems.

Embodying A Retro-Throwback Look That Fits In Well With The 80’S Revival Aesthetic That Is Predicted To Become Popular Again Especially Within Guess’ Market.

These Products Make Use Of Orta’s Indigo Flow Technology, An Organic Fixing Agent Made From Shrimp Shells To Dye Its Fabric Which Uses 55% Less Water Compared To The Conventional Denim Dying.

PHILOSOPHY DI LORENZO SERAFINI SS19

TRENDS

AMICA SS17

COSMO UK ‘18

BLEACHED DENIM Guess’ Take On Bleached Denim Will Be Playful And Artful. It Will Be Produced In Various Shades Of Blue.

This Trend Is A More Toned Down Version Of The 80’S Trend And Pairs Nicely With Knits And Blouses. Washed Out Blue Is Proven To Be A Commercial Success With This Trend.

This Trend Makes Use Of Sustainable Washing Techniques And Open Source Denim Fabrics. It Also Makes Use Of Sustainable Finishing Techniques Such As Ozone And Laser As Opposed To Enzyme.

ALEXANDER WANG SS19

TRENDS

REFIBRA

ECOFREE 2

DUAL FX

A Type Of Tencel That’s Made Out Of Waste Material From The Manufacturing Processes.

Ozone Is A Revolutionary Technology.

Bleach Effects On Denim With A Drastic Reduction Of Water Consumption And Elimination Of All Hazardous Chemicals.”

Several Mills Are Replacing Lycra With Dual FX In The Warp And Weft. Turkish Mill Calik Denim Has Come Out With A Line Called Circular 100 That Uses Dual FX In Both Directions, Which Gives A Softer Hand And Lighter Weight.

Recycled Fibres Can Be Made From Either ‘Pre-Consumer’ Waste (Leftovers In Fabric Production) Or ‘Post-Consumer’ Waste (Discarded Garments), Which Is Shredding, Turned Into New Fibres And Then (Usually) Blended With Other Fibres.

The Ozone Is Dissolved In Water In The Laundry Machine And Removes The Indigo During The Wash Cycle.

It’s An Eco-Friendly Way Of Bleaching That Minimises Health Risks For The Operators.

It’s Already A Consolidated Technology, And The Latest Iteration Of The Machinery, Like Tonello’s Ecofree 2, Allows The Ozone To Function In Both Water And Air.

TECHNOLOGY

“High-Waist Denim Is Very Much In Vogue Right Now, But One Of The Difficulties Is When People Sit Down, It Isn’t Always Comfortable,” - Hegedus.

“Having The Extra Stretch In The Warp Direction Helps Make That A Much More Comfortable Proposition.”

Walmart (Private Label)

Guess

COMPETITORS

ACCESIBLE

CLASSIC

TRENDY

EXCLUSIVE

Guess Is Perceived As Trendy And Exclusive In This Perception Map, Similar To One Of It’s Main Competitors, 7 For All Mankind. We See Gap Also Categorized As Exclusive But More Classic, And Levi’s Also Is Perceived As A More Classic Brand But More Accessible.

BRAND PERCEPTION

• Founded In 1853: San Francisco • First Blue Jean In 1873 • Based Off A Complaint From A Miner Who Said It Was Impossible To Find A Good Strong Pair Of Pants That Lasts Years • 2009 Onwards: Sustainable Initatives • 50,000 Retail Locations In Over 110 Countries • Wide Variety Of Retail Formats: Chain Retailers, Department Stores, Speciality Retailers, E-Commerce,

LEVI’S

Franchise Stores And 565 Company-Operated Stores In 32 Countries

• Upper Middle Class To Upper Class • Young-Middle Aged: 18 To 35 Years Old

Classy Yet

• Loyal Customers • Appreciate Quality - Prestige Of The Brand • Viewed As A Long-Term Investment • “Classic” Essence

Affordable.

Price Ranges from $35 - $300.

LEVI’S CONSUMER

• Doris And Don Fischer Opened The First Gap Store In 1969.

• The Reason Behind This Was Simple, Don Couldn’t Find A Pair Of Jeans That Fit. • ‘Gap’ Was A Reference To The Generation Gap. • Gap Inc. Is The Largest Specialty Retailer In The United States, And Is 3rd In Total International Locations, Behind Inditex Group And H&M. • 90 Countries Worldwide - 3300 Stores Operated By

INC

The Company, And 400 Franchise Stores, Plus E-Commerce

• Males And Females Aged 17 To 25 Years • Middle To Upper Class Individuals Residing In Urban And Suburban

Suitable For Everyday.

Areas In Developed Countries

Price Ranges from $15-118.

GAP INC’S CONSUMER

• Occupation: Students, Young Working Married Couples • Sophisticated And Confident Individuals • Work/Career Oriented

• Founded In 2000 - Began By Designing Women’s Jeans.

• Void In The Contemporary Denim Market - In A City (LA) That Loved The Casual Look Of Jeans But Also Loved High-Class Luxury And Exclusivity.

• Name Refers To The Belief That Every Person Should Own At Least Seven Pairs Of Jeans (One Day/Week) • Celebrity Culture - Designer Status.

• Over 100 Retail Locations Worldwide.

• In Addition To Stores And Website, The Brand Is Sold At

7 FA M

Luxury Department Stores And High End Specialty Boutiques

• 25 - 45 Years Old • Affluent Upper Class People

Premium Denim, Specialized.

• Independent, Single

Price Ranges

• Disposable Income

from

• Quality Over Quantity • Brand Cautious

$150- $650.

7 FA M CONSUMER

GUESS SOFT LUXE S E X Y C U RV E S K I N N Y JEANS $98.00

GAP INC MID RISE FA V O R I T E A N K L E JEGGINGS IN DISTRESSED $69.95

LEVI’S 501 ORIGINAL FIT JEANS $41.99

7 FA M B ( A I R ) D E N I M KIMMIE STRAIGHT IN DUCHESS $179.00

GUESS

LEVI’S

• Known As Designer Jeans, Second Tier Designer, Like Michael Kors And Lacoste, “Affordable Luxury” - Stays True To Style And Concept.

GAP

• Stays True To Overall Aesthetic And Essence Of The Brand

Strong Global Presence Sustainability Initiatives “First” Denim Jean (Levi) vs “First” Designer Jean (Guess?)

Successful Acquiring - Larger Brand Portfolio To Expand Their Company Into Different Markets At Different Prices

7 FA M

• Branding And Advertising To Specific Target Market

Celebrity Influence Specializing In Denim; Vast Product Assortment Advertising and Luxurious Portrayal

• Strong Brand Portfolio Expanding Across Categories Through Its Brand Name • AutomationConsistency In Quality And Can Be Managed On The Basis Of Supply And Demand • Skilled Workforce Workshops For Employees, Consistent Work Ethic And Motivation • On Trend - Inclusive Of Latest Trends That Stay True To The Brand Image

• Organization Structure Marciano Is Affecting Brand Image • Financial Planning Is Weak - Funds Are Not Being Allocated Appropriately And Budgeting Is Weak • Specific Target Group Only Focuses On Premium And Luxury Consumers Who Have A Disposable Income, This Is Causing The Brand To Lose Out On The Rest Of The Market • Challenges On Expansion - Not Doing Very Well In America And Has Been Expanding Slowly In Other Countries

S

W

STRENGTHS

WEAKNESSES

• Supplier Relations - Attain Raw Materials At Better Prices To Stay Competitive • Customer Satisfaction - Has A Strong Customer Base; Can Further Enhance This • Improve E-Commerce Experience - Do Something Advanced To Differentiate • Improve Marketing Approach - Make Better Use Of Social Media • International Expansion Focus On Successful Locations And Expand Within That Market (E.g Asia) • Sustainability Initiatives Follow The Sustainability Concept And Further Develop Into Products

• Rising Cost Of Raw Material - Prices Of Raw Materials Are Increasing And Can Affect Profits, As Well As Markup Percentage.

Poses As A Challenge To Keep Pricing Consistent With Target Market • Competition - Guess Prides Itself On Its Premium Standing, However There Are Other Brands That Do The Same. E.g. Levi’s, 7Fam, Wrangler Etc (DenimSpecific) • Saturated Market - Apparel Industry In General Is Extremely Saturated, Guess Needs To Differentiate Itself

OPPORTUNITIES

T H R E AT S

O

T

6 MONTH BUYING PLAN

KEY POINTS: • Sales plan of $113 million for the six month period • Reduction Rate planned at 25% due to occasion reductions and promotions (e.g Christmas) • High demand in December due to special occasions • Denim is suitable all year round and hence sales are steady

STOCKSALES GRAPH

BUYING BUDGET

MID-RISE

HIGH-RISE

HIGH-RISE

TRENDY

FLARE

CROPPED

BIG STORE

Lincoln Rd, Miami, FL 5,585,398.39

3.2%

SMALL STORE

Guess Northlake Mall, NC 523,631.10 0.3%

BIG TO SMALL AS SORTMENT PLAN

S U M M A RY LOOKING FORWARD • Guess will be looking for more trends than basics.

• The brand will invest in more sustainable practices and techniques.

• Move our company with the changing times.

• Expand our target market • Appoint an appropriate brand ambassador for future collections

SOURCES

https://sourcingjournal.com/topics/raw-materials/new-denim-fibers-and-fabW https://sourcingjournal.com/denim/denim-brands/the-future-of-denim-is-linked-to-technological-innovations-95979/ https://www.denimhunters.com/27-denim-innovations/ http://time.com/3854534/levi-strauss-anniversary/ http://levistrauss.com/wp-content/uploads/2015/04/2015_CompanyFactSheet_F.pdf

https://www.marketing91.com/swot-analysis-of-levi-strauss/ https://businessteacher.org.uk/swot/gap-inc.php https://0-www.statista.com.library.scad.edu/statistics/718949/market-share-of-jeans-market-by-company/ https://www.7forallmankind.com/about https://0-www.statista.com.library.scad.edu/statistics/734419/global-denim-jeans-market-retail-sales-value/ https://www.forbes.com/sites/greatspeculations/2017/04/19/how-guess-is-changing-its-positioning-and-focus-in-the-americas/#24c61aea5ec1 https://0-www.statista.com.library.scad.edu/statistics/718949/market-share-of-jeans-market-by-company/ https://www.bartleby.com/essay/Guess-Brand-Positioning-FK6L8ZAX7KU4Y https://0-www.statista.com.library.scad.edu/statistics/718949/market-share-of-jeans-market-by-company/