RETAIL MANAGEMENT PROJECT FALL 2016 CHRISTINA TAI
Section 01/ Retailer Brief
About Three
A Japanese beauty that established at
brand 2009.
Three believes that the true beauty lies in living with a positive, open attitude, respecting both the precious blessings of the natural world and oneself as a part of nature. They want to enabling everyone living in the world of today to remain true to themselves while instilling in them a sense of comfort. In their minds, in their bodies and in their skin.
Brand Vision
Natural products extensively use essential oils and other plantbased ingredients. botanical oils and natural fats with organic certifications.
Honest
Creative
domestic ingredients that can be fully trusted.
create innovative texture and vibrant color that brings sheer joy of makeup
c o n c i s e l y i n t ro d u c e t h e ingredients and mark the percentage of natural ingredients used in every product.
bring inspiration and up-todate style to the user
Product Line
Skincare
Base Makeup
Point Makeup
Hair & Scalp
c l e a n s e r, l o t i o n , essence, cream, mask…
primer, foundation, powder, concealer…
e y e l i n e r, l i p s t i c k , mascara, eye palette, nail polish…
s h a m p o o , conditioner, styling c re a m , c l e a n s i n g oil…
200 hkd - 1,325 hkd
315 hkd - 600 hkd
150 hkd - 575 hkd
290 hkd - 475 hkd
Distribution Channel
Japan
Overseas
72 stores in Japan
12 stores in Thailand
1 flagship store
5 stores in Taiwan
department stores
1 store in Indonesia
concept sotres
1 store in Malaysia
duty free shop
1 store in Hong Kong
online shop
Aoyama Flagship Store Aoyama Flagship Store is a good example of how Three combining different elements from products to food to spa service to promote the whole lifestyle of the brand.
Three Sogo Hong Kong Three's current only store in Hong Kong is in Sogo, which is a traditional Japanese department store. As the location limited the customers Three can reach out, the pop-up store project is going to explore on a different target customer from this location.
Promotion Three's current promotion was focusing on advertisement, including location like MTR station, MTR train, Sogo billboard. These promotion tools are quite costly but failed to communicate the brand vision and characteristics effectively.
Three Target Customer / 01 Undaunted Fashionista age - 32 marital status - single occupation - work in finance annual income - 340,000 hkd education - master personality - confident, ambitious, fashion forward lifestyle - she won’t sacrifice style for her stressful and busy life. She is not afraid of trying new things and is always on top of the trend. She is willing to spend on products that is valuable and worth invested.
Three Target Customer / 02 Urban Struggler age - 40 marital status - married, has one child under 18 occupation - working for government annual income - 420,000 hkd education - college personality - modest, tender, pessimistic lifestyle - the priority of her life is family thus she has very minimal personal time. She is willing to spend money for a high quality lifestyle; however, she is a skeptical shopper and always make sure her money is well spent on the best products.
Three Target Customer / 03 Balanced Traveller age - 27 marital status - single occupation - creative industry annual income - 240,000 hkd education - college personality - curious, health-conscious, spiritual lifestyle - She likes to keep her life simple; however, she is interested in discovering new experiences.She is seeking the balance of her mind and body through traveling, and is conscious about health thus are willing to spend on products that is natural and organic.
Skincare Competitors
Origins
Jurlique
Aesop
founded in 1990
founded in 1985
Founded in 1987
two tree logo stands for yin & yang as a visual representation of the brand pillar: Powered by Nature. Proven by Science.
Jurlique started with a dream: to connect people back to nature.Their vision was to create a pure and natural skin care range combining the ancient arts of alchemy, herbal medicine and homeopathy to reconnect people to nature.
Each of our formulas contains the finest plant-based ingredients as well as nonbotanical elements that has been scientifically proven effective.
Product line mainly focus on skincare and bodycare.
On top of skincare have baby products and aromotherapy products as well.
The product line includes skincare, bodycare, hair care and fragrance. Is the most unisex shop among all.
Skincare/Cosmetics Competitors
Fresh
Lush
Beyorg
Launched in 1995
Beyorg was founded 10 years ago.
The fusion of effective natural ingredients, time-honored rituals, and modern science offers a sensorial experience with undeniable results that is completely unique to Fresh.
Lush believe in making effective products from fresh, organic fruit and vegetables, the finest essential oils and safe synthetics. Products are ethically sourcing the ingredients to creating fresh cosmetics by hand.
Besides extensive collection of skincare, they also conducts a color lip care line that can be Three's makeup section competitors.
Lush has extensive and innovative products. Its cosmetic line is fun and targeted to the younger customers.
Since then Beyorg strong vision has created unique stores whose portfolio is distinguished by an exclusive selection of the most soughtafter natural and organic beauty products, including the world’s most innovative and ground-breaking brands.
founded in 1991 as an apothecary store in Boston
As the only organic skincare select shop, they have every kinds of merchandise from different brands. However, their makeup selection are still limited to more natural look.
Conceptual Map 01 From a branding perspevtive, by investigating into the competitors, I evaluate the the style of the brand by analyzing its products, visual communication, vm, and also first hand research of their customers. I found out Three position itself very differently from other competitors. It is feminine however edgy, thus, the modernity of the brand can be a adding point for specific type of customers that other competitors cannot attract.
Conceptual Map 02 There are definitely fierce competitor when it comes to the product value. Three is one of the most expencsive brand even though it is providing high quality merchandise. As a result, brining its customers a unique retail experience and high-quality services can help the brand to justify its high price and attract more potential consumers to pay for their products.
Section 02/ Concept & Design of Pop-up
OBJECTIVES gain brand recognition expand potential customer promote seasonal makeup collection provide more immersive experience of the brand
TARGET CONSUMER The younger demographic who are curious, educated living in an urban and busy lifestyle. They are the ones that are always looking for new things. They are stroung in their own opinion. And is more fashion forward and energetic than the brand's other customers.
Landmark
Pacific Place
Harbour City
Location
Central&Western
Wanchai
Yau Tsim Mong
Customer
Luxury shopper, office workers
Luxury and premium diverse customers with high percentage shopper, office workers, business of tourists traveller
demographic: 26-36, educated and professional, annual income from 240k
Brand Offering
Luxury
Premium to Luxury
Diverse
premium to high-end brand focus
Competition
Low
Mid
High
Traffic
Mid
Mid
High
Cost
High
Mid
High
Availability
Not Available
haven’t confirmed
haven’t confirmed
LOCATION CRITERIA have certain amount of traffic convenient transportation
pleasant shopping environment
About Admiralty People living in this district is one of the most wealthiest in Hong Kong, which prove they have the ability to purchase this price point. Admiralty is also a special location that it doesn't have much domestic dwelling but have a lot of offices, hotels, malls and service apartments link together. This is the place have prosperous economy and have fashion forward people working or business travelling here.
Pacific Place Pacific Place is aim at providing dynamic and diverce entertainment and shopping experience to their customers. They are open to pop-up store and believe it can make the mall into a more interesting shopping destination. The cusomers shopping here are fahsion concsious with a certain percentage of professional people working around the area. The specific position being chosen will be 1F aisle, which is close to some of its competitors but doesn't direct beside each other. The brands surrounding will be lifestlye or fashion brands in premium price point.
Budget
Store Concept Catering to the potential customer of Three, they are the ones that are younger, curious, and living with modern lifestyle. Thus, this popup store is aim at providing them unique and immersive experience of the brand. It is a place to inspire, communicate and experience. The theme of "art of three" will be translated in the store design by making a traditional retail space into an art gallery. CONCEPT STORE FOR URBAN LIFESTYLE
Moodboard
Store Design Inspired by the setup of an art gallery, which can be attractive and interesting to our target customers. We want to bring in the informative aspect of art gallery; thus, the customers can learn more about the products and brand by visiting the pop-up store. The special format of the setup enable the products to be layout nicely. They are also going to be clearly seperated by product categories, which will let customers to find their interested products faster when they are busy to view the whole store. The material and color used in the pop-up store are inspired by Three's packaging, which includes a matte white texture, transluscent glass and dark shade of grey. The design is minimal and modern.
Interior design rendered by Audrey Chan
Interior design rendered by Audrey Chan
Artwork
SKINCARE
POINT MAKEUP
NEW COLLECTION
E a c h S k i n c a re w i l l h a v e o n e a r t w o r k displayed with them. The artwork will be a thin transparent glass. The color of the artwork is chosen based on the main ingredients of the collection, and use same color of that material or same shade of color from the products.
The artwork will evolve from the minimal and abstract artwork of skincare into m o re l i t e r a l a r t w o r k i n p o i n t m a k e u p section. The artworks will use the texture drawn from the matching products. To keep the overall minimal theme, the artwork will still be simple and clean.
In the last section of the display of products will be the new makeup collection. Campaign of the new collection will be feature on the wall to tell the inspiration and story. However, logo will be removed from the advertisement to make them looks more artistic than commercial.
Store Guide Book A special "Three Pop Up Guide Book" will be handed to all the visitors when they come in to the shop. The guide book will help the customers to know the position of each product categories. Moreover, it will also include detail information of the products, thus they can learn more about the products when they are shopping in the store. This guide book can also serves as a promotional tool for visitors to keep as reference.
Staff and Makeup Artist The staff and makeup artist will be one of the important elements of the store. They will be trained before to know more about the products. Thus, they will become an important communicator between customers and the brand. All the staff will be equipped with Three's makeup brushes set, then they can be helping the customers to try on the products on site. The customers will also be encouraged to take some time to stay in the store and experience the full treatment of Three product from skincare to makeup, the professional makeup artist will also providing complimentary service of massaging the face with Three skincare to educate the customers of how to use the products more effevtively.
Personal Makeup Service The customers that are willing to stay and experience the full treatment service will have professional makeup artist customized the treatment and makeup look for the individual customers. There will be forms to help makeup artist to note down the best suited products for each customers, which will let the customers easier to purchase the right products. However, the makeup artist won't hard-sale the products in order to let the customers to relax and enjoy the whole atmosphere of Three.
Section 03/ Product Assortment & Promotion
Assortment by Product Category The overall assorment by product category has 29% Skincare and 71% Makeup. Makeup products are talking the most percentage as research shows makeup products is the strongest category among all beauty products (Euromonitor,2016). The percentage of the assortment are also determine by the popularity of the products, press review of the products and also based on HK consumers' preference.
Makeup Assortment by Color The color assortment for point makeup is determnied by HK consumers' preferences (like skin tone, trend, etc.) and also by trend analysis of the upcoming season. The red will have the largest percentage due to the fact that it is not only popular color among customers but also a on trend color for spring/summer. The nude/brown tone will followed pink as it is the basic shade for mass market. Orange and coral is also the color suitable for ss season and also being featured in the new collection, thus will be put more emphasis on assortment as well.
Balancing Collection Assortment Moisturizer as the product category that has the most skus will have the highest percentage. Following with cleanser, though there are few choices of cleansers, the cleansing oil is the brand's classic and iconic products that a lot of people start trying the brand from the cleanser. Eye care products also have 13% like sun care as these product types are unique in the overall skincare collection.
Concentrate Collection Assortment Concentrate collection is the most well-distributed assortment. As the product function are quite similar, they will have similar needs by customers. However, due to the fact that this collection is focusing more on anti-aging, which the target grounp is elder, I choose to give Concentrate Cream highest percentage as cream products are favored by elder customer group. (Euromonitor, 2016)
Conditioning Collection Assortment Conditioning Collection is the higher price point products, however, it is known to use higher percentage of the essential oil in the products. Thus, base on the characteristic of this collection, the SQ oil will have the highest percentage as this oil product is unique in the whole product assortment, followed by lip balm which also cannot be fined in other product category; however, it is lower percentage due to the fact that it can be replace by lip products.
Base Makeup Assortment The foundation will dominate most of the assorment as it is one of the most well-known product in Three. Following by Primer with 26% which it also combine the merit of the natural skincare with a healthy glow of the foundation. Others including loose powder and high light products, it also have 24% as the highlight products has won awards in Japan last year (VOCE, 2015).
Lip Makeup Assortment Lip Jam will be the strongest performer in this product category as it is one of the most commonly mentioned product by press and also it has won beaty award in Japan before. Following by the lipstick which is the most common type of lip products that will be accepted by overall consumers.
Cheek Makeup Assortment In this assortment, Cheeky Cheek Blush is the highest one due to the fact that it has won several makeup awark, and it has been bestseller in the Three online store. Following by mini dash which is a different texture product thus has higher percentage than the color veil for blush.
Eye Makeup Assortment Eye Color has been one of strongest product and bestseller of Three, thus in this category it will have 40%. Following with eyeliner which the brand suggest the customers use with the eyecolor products to create a more refined look. Even Mascara only have one product type, but it still has 12% from total as Hong Kong consumers are used to buy mascara and there's rise of the sales every year (Euromonitor, 2016)
Testing Area
Floor plan The space of the Three Pop Up will be seperated into three different section. The first section HARMONY is where the skincare displayed, which three of the different collection will be displayed sepereately. The bestseller Balancing Collection will be Placed in the middle table where is the focal point when customers walk into the space. The second section is CREATIVITY, where all the makeup products being displayed. The product are placed by the sequence of how people normally do their makeup: from foundation to cheek and lip and in the end eye makeup. The focal point of this section will be the new collection table that showcase the latest spring/summer collection. In the end is EXPLORATION, where customers will be encouraged to experience the full personal treatment of Three products.
Counter
New Collection
Cheek
Eye
LIP Base Makeup
Balancing Collection
Concentrate Collection
Conditioning Collection
Planogram
Balancing Collection
Concentrate Collection
Conditioning Collection
Lip & Cheek Makeup
Planogram
Base Makeup
Eye Makeup
New Collection
Setup References Inspired by some of the display of Three Aoyama store. The setup of the products are try to be layout nicely and clean while at the same time to be visually interesting and artistic.
About New Collection After investigating into SS 17 makeup trend, pastel colors are still a hit for the coming season; however, a trend of bright color that applied on face as highlight are also spotted on the SS 17 runway. Thus, the new collection are going to combine both trend. The theme of the new collection is called "Blooming Fantasy". Inspired by the life of a flower, from the pastels of the bud to the vibrant bloom, and in the end, the whitered petals with smoky colors. Since Three already developed a strong and quite complete makeup line, the items chosen to develop the new colors are the bestseller among all, which includes eye palette, eyeliner, color veil for eye, lip jam and cheeky blush
Campaign Inspiration Board For the promotion of the new collection, a new campaign will be shooted. Though Three normally having their campaign mainly forcus on the face and makeup of the model instead of props. But to better communicate the story behind this season of the life journey of flowers and also to match the artistic direction of the pop-up store, the new campaign will feature flowers in their different life stage on models' face and body to match the colors and look. It is also speaking to Three's belief of human being as a part of the nature.
Campaign Conducted Channels The campaign will mainly focus on social media channels, and also instore promotion in sogo causeway bay and the pop-up store. By considering the differences between each social media channels, especially facebook and instagram, whcih are the ones they are using currently; the campaign will come in two different format to better accomodate in different social media channels.
Pricing / Special Promotion The pricing of the products will align to the brand's current regular pricing. However, to give incentives for the customers to post about the new pop-up sotre, they will receive 15% off discount of their purchase if they post photos of the popup store with correct hashtags. The percantage of the discount is based on their previous campaign conducted in Malaysia.
Press/VIP Launch Event Press and makeup bloggers are one of the most important reason why Three can grow so much brand awarness in a short time. Thus, remaining good relationsip whith the press and makeup bloggers, and having them keep sharing the information of the brand is one key promotion for Three Pop Up. There will be a special launch event in store before the day pop-up store open to public. There will be two sections which 14:00 - 17:30 for press and 18:30 - 21:30 for VIP and KOLs. The space will add in some high table and chair for the guest to rest, and also light refreshments and drink. Since the store has limited space, the guest list will focus on the press and KOLs that has been working with Three or have good relationship with Three. The limited amount of participants can also make the attendees to feel more exclusive and more willing to share this on social media.
Media and KOL The media chosen to join the launch party will be the ones that has good relationship and partnership with Three. Also fashion magazine will be one important media to focus and develop as they are the ones that most likey will contact the specific target customer of the popup store. As for the KOL, the pop-up store will carry on the brand's previous strategy of using several less fasmous fashion blogger and worked as partnership instead of paying. 3-5 of KOL that has the more followers can be invited to create more buzz and awarness. The candidates are focus on the fashion/beauty instagramer that are either fashion-focus, or have travel/ healthy related lifestyle.
Social Media Strategy During the time before the pop-up shop open till the end of the pop-up, there will be content posting on regular basis to interact with the customers and also create the buzz. There will be two direction of how to drive more followers and WOM. First of all is providing the incentive, which is one of they way to encourage customers to share post.(DeMers, 2013) Having campaign like share the post and tag friends to win the chance of joining the exclusive product launch. And also in the pop-up store, sharing photo with hashtag to get discount can be decent and good incentive for the customers. The second direction is to get hte KOL/press to promote it. As a third party can reach out to different kind of customers, KOL and press will be encourage to live stream during the launch event to create the hype and excitemess of the pop-up sotre.
References
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