NET- A-PORTE R
CLAIRE COLLIER WILLIAM FANCHER COURTNEY LUCIDO MIKENNA RASE PROFESSOR CANNATA FASM 410 - RETAIL MANAGEMENT POP-UP SHOP PROPOSAL FOR DUBAI, UAE
CONTENTS SECTION ONE EXECUTIVE SUMMARY HISTORY N-A-P PROFILE AND STRUCTURE BRAND IDENTITY POSITIONING AND DISTRIBUTION C O M M U N I C AT I O N A N D P R O M OT I O N EXISTING BUSINESS MODEL PLANS FOR GROWTH S W O T A N A LY S I S SECTION TWO GOAL S T R AT E GY OBJECTIVES S TAT E O F T H E I N D U S T R Y P E S T L E A N A LY S I S DIRECT COMPETITORS INDIRECT COMPETITORS DEMOGRAPHICS AND PSYCHOGRAPHICS BEHAVIORAL INFO AND TRENDS TA R G E T C U S TO M E R S SECTION THREE
SSEECCTTIIO ON N FFO OUURR D E S I G N A N D S PA C E S PA C E A L LO C AT I O N A N D P R O D U C T I V I T Y AMENITIES AMBIANCE ARTWORK VISUAL MERCHANDISING HUMAN RESOURCES LEGAL ISSUES SAFETY AND SECURITY COSTS SECTION FIVE FOOT TRAFFIC PROJECTIONS SALES FORECAST PRODUCT PLAN P R O F I T A N D LO S T S TAT E M E N T C O M M U N I C AT I O N A N D P R O M O P L A N CONCLUSION
LO C AT I O N J U S T I F I C AT I O N L I F E S T Y L E A N D B E H AV I O R S E G M E N TAT I O N SALES POTENTIAL E S T I M AT E D C O M P E T I T I O N A R E A AT T R A C T I O N S LOGISTICS AND INFRASTRUCTURE 1
EXECUTIVE SUMMARY
HISTORY
RICHEMONT GAINS 25% OF THE richemont gains COMPANY 25% of the com pany
net
-a -po rt er
2000
2
CHINA LAUNCH LAUNCH CHINA
ASIA LAUNCH LAUNCH ASIA
launches in june as net-a-porter launchthees in premier online june as the premier online luxury luxu ry f ashion fashion destination destin ation
Sixteen years ago, Natalie Massenet had the foresight to imagine a web presence where fashion’s most sought after brands nestled all together in one universally accessible location. The rapidly successful and exclusively e-commerce world of Net-a-Porter has grown into a multi-million dollar powerhouse that has shaped the 21st century world of luxury fashion. The brand has managed to withstand market fluctuations largely in part to an exceedingly strong commitment to innovative service and marketing. This legacy has challenged Net-a-Porter to continuously reimagine what customers want in a shopping experience. With all eyes on the Middle East, the opportunity to establish a presence in a vastly untapped region merits a strategy that is as unique as its location. By creating a pop-up shop in one of the world’s most exclusive locales, a whole new clientele will experience the magic of Net-a-Porter firsthand in a way that feels exciting, yet familiar.
“PORTER” PORTER MAGAZINE LAUNCH
THE EDIT “THE EDIT” LAUNCH LAUNCH
US LAUNCH US LAUNCH
2002
2006
yoox YOOX ANDand NET-AON -a -po rtMERGE net PORTER er merge OCTOBER 5 on oc t ober 5
2011
2012
2013
2014
2015
Net-a-Porter was developed by Natalie Massenet at her kitchen table in 2000. The vision was to bring luxury fashion to a worldwide audience, and to expand the global understanding of how fashion and culture intertwine. Massenet saw this vision into reality by creating what is now known as, “the world’s premier luxury fashion destination.” Originally based in London, the e-commerce platform has changed ownership in recent years, bringing in Swiss holding company Richemont. Richemont quickly saw an opportunity and bought 25% of the firm in 2002. By 2010, the company had purchased 93% of the holding rights of the then Net-a-Porter Group. Throughout this period of growth, Net-a-Porter expanded beyond the United Kingdom and into key markets, such as North America and Asia. In 2015, the Net-a-Porter Group was absorbed by Italian company YOOX, creating the partnership now known as YOOX Net-a-Porter Group. Today, Net-a-Porter serves over 170 countries through multiple selling outlets, all working out of Net-A-Porter’s e-commerce platform. The result is a powerful network of brands, people, and products that evolve the fashion industry into a cutting-edge marketplace, focusing on superb service and exceptional experience.
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N-A-P PROFILE AND STRUCTURE
BRAND IDENTITY
PRODUCT
YOOX Net-a-Porter Group (YNAP) has a total of 3,900 employees between three different platforms: Net-a-Porter, Mr. Porter and The Outnet. Since merging with YOOX, YNAP debuted as a publicly traded company on the Italian stock market, Borsa Italiana, in 2015. Their 2015 in-season net revenue, which includes netaporter.com, mrporter.com, thecorner.com and shoescribe.com, totaled €893.3 million. As of 2015, the average order value amongst the YNAP brands was around €352. The YNAP headquarters are located in Zola Predosa, Bologna, Italy, however the specific Net-a-Porter Headquarters remain in their founding city of London. Today, YNAP operates from offices all over the world with plans to expand its global presence in diverse areas, including both Asia and the Middle East. Net-a-Porter is owned by YOOX Net-a-Porter Group, and in addition to Net-a-Porter and Mr. Porter, Net-a-Porter designs, and runs, luxury brands’ individual online flagship stores, such as Jimmy Choo and Marni. Luxury goods holding company, Richemont, owns 50% of YNAP, and as of early 2016, Alabbar Enterprises, a retail and e-commerce holding company based in Dubai, owns 4%. The CEO of YNAP is Federico Marchetti, who served as YOOX’s CEO prior to the merger. Alison Loehnis is the in-season president which makes her responsible for Net-a-Porter, Mr. Porter and their Media and Publishing Division. Matthew Woolsey is the Managing Director of Net-a-Porter, responsible for running the company day-to-day. 4
PERSON
ORGANIZATION
DIVERSIFIED GLOBAL EFFICIENT ADAPTIVE
CONTEMPORARY LUXURIOUS VISIONARY
SYMBOL
Net-a-Porter is largely known as the “world’s premier luxury fashion destination.” With a web presence in over 170 countries, YOOX Net-a-Porter offers a dynamic range of goods at diversified price points, which attracts customers from all across the globe. Net-a-Porter is governed by a strict set of values that direct the internal and external interactions of its business.
Simply put, these values are: Be the best Lead not follow Exceed expectations Be smart and stylish Service starts with yourself These values are portrayed through their cutting edge services and marketing schemes, complete with an array of special touches from thoughtful packaging to same-day delivery.
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POSITIONING AND DISTRIBUTION
COMMUNICATION AND PROMOTION
PRISM EFFECT
Net-A-Porter is positioned as an international luxury retailer that works exclusively in an e-commerce platform. Considered the go-to source for luxury goods on the internet, Net-a-Porter only carries products from the most elite brands around the world. Net-a-Porter is responsible for introducing luxury goods to the e-commerce marketplace, bringing the best of brick-and-mortar stores into a cohesive consumer experience. Net-a-Porter appeals to consumers who understand fashion and expect efficiency, as well as the global woman. They are usually positioned within an upper-middle class consumer lifestyle that appreciates status, innovation, and access to different types of luxury goods and brands.
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Net-a-Porter offers delivery service to over 170 countries in every continent. Out of these numerous locations, any consumers within core cities, or those located near distribution centers, are able to receive their packages quickly. This allows for having items delivered to the consumer’s door with specialty same-day delivery. Net-a-Porter currently has three distribution centers located in Mahwah, New Jersey, Southeast London, and Hong Kong. Operating these privately held centers eliminates the middle-man out of the delivery process, enabling Net-a-Porter to get product to customers efficiently. Each location is strategically placed to serve a primary geographic region of the world, with plans to expand into other geographic regions to further their presence in emerging markets.
Net-a-Porter communicates with over 27.1 million unique visitors each month by creating rich, engaging content that goes beyond traditional product placement. In 2015, the brand launched their app system, The Net Set, as a way to interact with customers across all mobile platforms. Their use of the prism effect is incredibly successful, the app specifically helping to refract key concepts into area and geographic regions, giving customers a more tailored shopping experience. Personalization is a key factor in Net-a-Porter’s success, the brand utilizing data to send users customized product lists, a live tracker of what’s trending immediately around them, as well as online stylists, to help fulfill every need. Net-a-Porter promotes its business through a multitude of platforms, including email, social media, white glove delivery service, in its core cities, and through its personal, shoppable magazine. The Edit is a weekly publication that serves as a tool for customers to stay informed on the latest trends as well as a direct platform to purchase products from. Porter Magazine is Net-a-Porter’s latest promotion venture, a quarterly subscription publication that goes beyond The Edit in content and attracts new audiences into the brand’s arsenal.
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EXISTING BUSINESS MODEL
PLANS FOR GROWTH
Net-a-Porter’s vision for the future of luxury fashion focuses on the company’s recent merger with YOOX. Initially, YOOX and the Outnet sold overstocked or unsold designer goods from previous seasons, which complements Net-a-Porter’s existing business model. They plan to build upon their mono-channel capabilities by creating a long-term partnership with IBM. By fostering innovation, the consumer experience across all channels will be seamless, integrated and consistent. Being mono-channel also considers the addition of social and mobile channels for a fully cohesive viewing experience. The ability to have a continuous shopping experience across brands, formats, and devices is YNAP’s new way of strategizing new marketing techniques. YNAP also shows ambitious growth plans globally, with a focus on the brand’s key markets: US, UK, France, Germany, Australia and Hong Kong. Following the merger, YNAP has announced plans to raise up to €200m (£146m) in growth capital. In terms of international expansion, Net-A-Porter has sold a 4% stake to the Middle Eastern retail giant Alabbar Enterprises, demonstrating their interest to grow in this region. Net-a-Porter has captured the e-commerce, luxury market, and has established itself as a pioneer for innovation and value capture. Considered a mono-channel ecosystem, Net-a-Porter sells product across one primary platform, e-commerce. The brand’s app system, collectively known as The Net Set, and their award-winning magazines, The Edit and Porter, have helped solidify Net-a-Porter’s importance as an e-commerce retailer. Through these venues, they uphold an image as a multi-brand luxury retailer with a wide variety of goods. One of the biggest focuses for the Neta-Porter model is it’s customer-centric approach such as gracious 24/7 customer care as well as generous shipping and return policies. All of which contributes to brand loyalty. Net-a-Porter’s strong understanding of their ideal customer allows for exemplary product curation.
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A five-year plan is set to deliver sales growth of 17%-20% every year for the next five years, while boosting operating profit margins by 11%-13% by 2020. YNAP hopes to achieve these goals by increasing focus on the potential of m-commerce and personalization of customer service aimed at providing style advice through the utilization of marketing tactics using customer data analysis. In addition, YNAP plans to introduce new products and brand offerings in categories such as travel, fine jewelry and watches. Mr. Porter is set to launch a private label in 2017. They plan to create brand awareness through the use of TV ads in both the US and Italy. YNAP will harness the power of brand partnerships through their Fashion & Luxury Innovation Committee. Finally, they will continue to manage and launch luxury brand’s online flagship stores.
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S W O T SWOT ANALYSIS
- YOOX Merger - Strong Pioneer of E-Commerce - Customer Service - Strong Logistics/ Infrastructure - Strong Visual Communication - Product Mix - Social Media - Industry Reputation - Alabbar Partnership
- See Now,Buy Now - Expansion into Newer Markets - New Brand Partnerships
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- Lack of Brick & Mortar Presence - Lack of Ability for Customers to Try Products - Shifting Corporate Identity
SECTION TWO
- Slow Growth in Emerging Markets - Future of the Luxury Market/Customer
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GOAL, STRATEGY, AND OBJECTIVES/STATE OF THE INDUSTRY
PESTLE ANALYSIS
After conducting research on three of the top emerging markets for luxury fashion, Dubai proved strongest for Net-a-Porter. Although there are several barriers to entry, Richemont’s strong operating partners in the UAE, Alabbar Enterprises, provides Net-a-Porter with a strong advantage to penetrate a fairly untapped region of the world. Below is a comprehensive breakdown of the Political, Economical, Social, Technological, Legal and Environmental (PESTLE) advantages and challenges to entering the Dubai marketplace.
Goal: To strengthen the global reputation of Net-a-Porter and build customer loyalty in emerging markets Strategy: - Infiltrate the physical market to further strengthen relationships in Dubai by creating a pop-up shop - To utilize the relationship with Alabbar Enterprises and Richemont in the UAE - Localize product mix to reflect the elite, wealthy clientele in the marketplace - Convince Dubai visitors and residents that Net-a-Porter is the leader of luxury Objectives: - Measure web traffic during and after pop-up shop - Measure average sales for public versus private appointment days - Collect customer information during public and private appointment days to build clientele
P
E
S
T
L
E
Government
Lifestyle
Infrastructure
Luxury Driven
Rate of Change
Taxation
Part of a Dynastic Islamic Monarch
Exchange Rates 1 AED = 0.22 GBP
Bettering Logistics
10% Luxury Import Tax
Free Enterprise System
Cost Of Living
Government Activity & Legislation
Minimal Taxing for Corporations and individuals
Highly Developed Transport
Stability of Neighbors Tension in Surrounding Countries
State of the Industry: Net-a-Porter operates as an in-season, multi-brand luxury e-commerce retailer. The luxury market overall is presently in a decline, and Net-a-Porter is seeing a need to implement new methods that will reinvigorate spending. Net-a-Porter is fairly strong in comparison to its competitors, largely in part to their reputation concerning excellent customer service. As a way to engage customers through a different channel, Net-a-Porter is opening a pop-up shop in Dubai to further establish itself as “the world’s premier luxury fashion destination.” This strategy will help unite the local and foreign consumers within the market by creating a sense of elitism for Dubai customers. Once this reputation is established, transitioning the consumer into a long-term relationship with Net-a-Porter in its native e-commerce platform will be a seamless shift.
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Biggest Re-Exporter in Middle East
Demographics Over 50% of the Population is Between 25 - 54
CLI: 72
High Male to Female Ratio
Rising Investment in IT Infrastructure
Diverse Population
Sensitivity to Cultural Practices within Marketing
Advertising
Cyclical Weather
Sharia Law Limitations
Arid, Tropical Climate
Growing Digital Emphasis
Sandstorms
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DIRECT COMPETITORS
INDIRECT COMPETITORS
Harvey Nichols A luxury fashion retailer known for well-made and uniquely curated products with stores located in Europe, the Middle East and Asia totaling 15. The Dubai’s store space and net sales is unknown. Sales have declined by 30% annually in the last several years and plans to expand have been placed on hold. Social media platforms are used as the primary marketing tactic. Harvey Nichols previously had one Ramadan themed pop-up shop featuring local designers.
Bloomingdale’s This luxury fashion and homegoods retailer is known for their experience. With stores in the United States and one international location in Dubai, there are a total of 38 stores. Bloomingdale’s Dubai location is 146,000 sq. ft. The net sales of parent company Macy’s Inc. was 27 billion and overall sales have been decreasing across the board. Bloomingdale’s uses social media and seasonal print ads for marketing, there has not been any pop-up shops at this location.
Boutique 1 UAE based luxury fashion retailer, Boutique 1, is known for carrying the world’s and region’s most exclusive designers. There are a total of four stores with three throughout the Middle East and one in London. The Dubai stores is 2,000 sq. ft. and the net sales are unknown. The marketing tactics used to reach consumers is through sponsorships and word of mouth. Boutique 1 is stable amongst the local market and has not previously held any pop-up shops.
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The Dubai Mall of the Emirates Perhaps the strongest of the indirect competitors, The Dubai Mall also houses two of Net-aPorter’s strongest direct competitors. This destination is a popular choice for both local and visiting luxury shoppers due to its large variety of stores and central location.
Chanel As one of the most recognized and powerful brands in the world, Chanel is an extremely strong, yet indirect competitor of Net-a-Porter because neither carry each other’s product. The two companies have collaborated in the past on a virtual pop-up shop through Net-a-Porter’s website, which was a huge success.
Hermes Another globally recognized and powerful indirect competitor is Hermes. The historic French design house is widely known for their leather goods, primarily handbags, which is an overwhelmingly popular product category in Dubai.
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DEMOGRAPHICS AND PSYCHOGRAPHICS/BEHAVIORAL INFO AND TRENDS
TARGET CUSTOMERS
Dubai At-A-Glance Population is 25% female and 75% male
Shopping is a national pastime
Sharia Law is embedded in local culture
Emirati women wear hijabs and abayas
Dubai’s population falls around 2.6 million people, with a breakdown of 75% male and 25% female, though many men are expatriates and therefore not within Net-a-Porter’s demographics. The official religion of the region is Islam, which impacts the daily culture and socialization within the region. The country is very diverse, with only a small native population as many expatriates and labor workers resettle in this area. About 50% of the population are under 30 years old. Consumers are brand-conscious and possess an aspirational mindset. They are highly aware of peer perception, and value keeping up with the latest trends. Dressing well is an important part of culture identity, therefore shopping is a popular activity and brick and mortar stores are still highly valued as a part of the buying experience. Dubai is widely known as the most progressive state in the UAE and is more receptive to certain western cultural values than its surrounding states. An example of this is allowing women to drive, a progressive step for the region,empowering both genders to make personal decisions. This also means that women have the mobility to decide when and where they want to be on their own terms. Sharia Law, however, is still heavily in place and a huge part of the culture. Fridays are considered a holy day of prayer and no businesses are open in observance of this. There is also a two hour daily break from 1 to 3 in the afternoon for prayer, and many places offer gender-specific prayer rooms for individuals to use. One of the most noteworthy issues for Net-a-Porter in Dubai concerns dressing customs. There are many expatriates and retired laborers in the region from all over the globe who are expected to be respectful of traditional Emirati dress values, though they do not need to partake in many of the customs locals adhere to. Local Emirati women wear an abaya, which is a long black robe, and a hijab to cover their heads in public. Both of these garments have progressed in recent years to feature a trimmer shape and include embroidery to show off personal style. Emirati women love western fashion however, and will remove their traditional wear only out of the presence of men. In many cases they will wear non-traditional clothing underneath their traditional clothes. Accessories like handbags and shoes are of great importance and remain one of the easiest ways for local and foreign residents of Dubai to showcase their fashion sense.
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The Net-a-Porter pop-up shop will serve two specific demographics of customers in the most appropriate experience for each. The first key demographic are local expat and Emirati women who are upwardly mobile and value the traditional experience of shopping in the Middle East. Women who fall into this category are highly private and value one-on-one attention during their visit. For this reason, Monday through Thursdays and Sundays of each week will be reserved for private, one hour shopping appointments. The second key demographic are tourists visiting the surrounding area, who are presumably familiar with Net-a-Porter from their home experiences. These customers will likely be shopping for small, stylish goods to enhance their travel experience and value a unique environment to do so in.
Nez Gebreel Age: 43 Education: Royal Holloway, College of London Profession: CEO, Dubai Design and Fashion Council Salary: 600,000 GBP Causes: Mentoring emerging fashion talent in the UAE, Educating young students about opportunities in design careers Interests: Traveling, yoga and reading Guilty Pleasure: Adding to her 500 pair shoe collection Interesting Anecdote: Managed David and Victoria Beckham’s fashion careers for over a decade
Princess Ameerah al-Taweel Age: 33 Educaton: University of New Haven Profession: Philanthropist Salary: Family net worth is over to be $20B Causes: Vice Chairperson of Al-Waleed bin Talal Foundation, member of Silatech’s board of trustees Interests: Relief work, empowering women in politics Guilty Pleasure: Avid collector of handbags Interesting Anecdote: Attended the Duchess of Cambridge and Prince William’s wedding
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TARGET CUSTOMER (CONT.)
Sheikha Lubna bint Khalid bin Sultan Al Qasimi Age: 54 Education: California State University, Chico and The American University of Sharjah Profession: Minister of State for Tolerance Salary: Undisclosed, family net worth over $4.6B Causes: On the board of directors at the Dubai Chamber for Commerce and Industry as well as the National US Arab Chamber of Commerce Interests: First-edition book collector Guilty Pleasure: Collects designer hijabs and abayas Interesting Anecdote: Founder of Tejari, the first business-to-business online marketplace in the Middle East
SECTION THREE
Raha Moharrak Age: 29 Education: American University of Sharjah, Currently working on her Masters Profession: Adventurer and Graphic Designer Salary: 150,000 GBP Causes: Educating Arab women on active and outdoor lifestyles, Wildlife conservation Interests: Beauty/skincare, blogging her experiences and photography Guilty Pleasure: Testing out the latest beauty products Interesting Anecdote: Was the first Arab woman to climb Mount Everest 18
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LOCATION JUSTIFICATION
Net-a-Porter’s first ever pop-up shop will launch in March of 2017 at the Dubai Design District. This unique and cutting edge location is fitting for the strong branding aesthetic of Net-a-Porter while also reflecting the wealth and progressive nature of the region. In choosing this location we are capitalizing on two key customer segments: tourists and locals. Set to be fully completed in 2019, the Dubai Design District is a groundbreaking project that fuses global and local tradition in the form of galleries, design space, and innovative meeting and retail areas. With this district developing as a tourism and business hot spot, we will capture the interest of well heeled travelers, while strengthening Net-A-Porter’s relationship with the local Dubai community. This will help Net-a-Porter cement their position as the preferred source of e-commerce luxury for upscale consumers in the region.
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ESTIMATED COMPETITION
Due to the high volume of brick and mortar shopping destinations in Dubai, the goal of Net-a-Porter’s pop-up shop is to establish customer loyalty that will transition into long-term, e-commerce shoppers well after the shop’s physical presence is gone. As web-based infrastructure becomes a prevalent focus for the UAE government, Net-a-Porter has an exceptional opportunity to capture a highly valuable market with very little existing e-commerce competition. To further stress the importance of this market, Net-a-Porter’s distribution center will be up and fully running in 2017 to serve the entire surrounding Middle East region. This move will enable Net-a-Porter to compete with existing stores for Dubai customers since the company will offer same-day delivery service for products ordered online.
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AREA ATTRACTIONS/LOGISTICS AND INFRASTRUCTURE
SECTION FOUR
Dubai’s small size lends itself to easy traveling within the area. The Dubai Design District, which is within minutes of the state’s most luxurious hotels, restaurants and landmarks is an ideal location for both tourists and locals to access easily. Situated in between two of the state’s most traveled interstates, the Design District is also home to a number of burgeoning designer stores, cafes and art galleries that are accessible by car, bus, or water taxi. Some of the most noteworthy attractions nearby include the Burj Khalifa, the Dubai Creek, and the Palm Hotel . Dubai has a well-respected public transportation system, with frequent shuttle stops connecting the Design District to other highly visited areas. The most common running route is between the Mall of the Emirates, which transports guests between both locations approximately every 10 minutes. Other nearby hotels are in direct connection with the Design District as well, and are often shown to guests as an ideal activity outside of the normal tourist attractions. 22
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DESIGN AND SPACE/SPACE ALLOCATION AND PRODUCTIVITY
The unique nature of catering to two specific customer segments in one space merits a great deal of thought and planning concerning store layout. In order to execute this, the overall mood of the space will mirror that of a contemporary gallery, featuring an open-floor concept with three gallery-like spaces. Customers will be greeted on arrival in the foyer, outfitted in the signature black and white aesthetic of Net-a-Porter. During private appointment days, the first section of the store’s space will serve as the Stylist Lounge. This area features floating garment racks, a sleek glass counter for small goods, and floor length mirrors for consumers to visualize ensembles. Using Plush seating, end tables, thoughtful lighting, and a flokati rug, there is a natural warmth within the minimal environment, keeping the focus on Net-a-Porter’s customers, as well as the product they have curated. The Refreshment Bar lies just inside of the Stylist Lounge for consumers to enjoy their favorite non-alcoholic beverages while working with one of Net-a-Porter’s professional stylists during their appointment. The second section is known as the Virtual Shop, where consumers, on both public and private days, can utilize state-of-the-art touchscreen technology to shop through Net-a-Porter’s e-commerce platform, an exclusive opportunity for Net-a-Porter Dubai in-store patrons. This area features oversized, individual seating for all consumers alike, allowing for a relaxing opportunity to browse merchandise. With a concierge bar where stylists are available to assist with orders or selection, consumers will have immediate access to all knowledge on Net-a-Porter and the product being offered by the e-commerce retailer. On public days, the larger touchscreen can be split into four small, individual screens that can accommodate more consumers at once.
AMENITIES Packaging: At the packaging station, expect the signature Net-a-Porter treatment, where items are wrapped up carefully in black tissue paper, sealed with an exclusive Net-a-Porter Dubai sticker, and tied up with the iconic black box and ribbon that customers all over the world recognize instantly. For customers who are traveling and wish to pack efficiently, an alternative and flight-friendly packaging option is available. This station will be located at the cashwrap in the back area of the store. Car Service: Net-a-Porter will chauffeur EIP customers to and from their appointments in partnership with UAE Limo. Two Rolls Royce Ghosts will operate for the duration of the pop-up shop, with a signature black Net-a-Porter ribbon wrapped around each vehicle. For public day customers staying at one of the partnership hotels, a shuttle service will transport guests to and from the pop-up shop. Tailoring: Should a customer require tailoring, two dedicated professionals will be on-hand at the distribution center to travel either to the customer’s house for fitting when clothes are selected, or simply behind the scenes to make minor alterations that do not require a house visit.
Refreshment Bar: In observance of cultural customs, a non-alcoholic refreshment bar will be available to customers with an array of drink options to sip on while shopping. Porter Magazine: EIP customers will receive a copy of the latest upcoming issue of Porter, which will also be available in-store to shop from on the day of appointments. Invites and Thank-You’s: Prior to Net-a-Porter Dubai’s launch, invitations will be sent out to 250 of Dubai’s wealthiest, High Net Worth Individuals (HNWI’s), derived from a prescreened customer list conducted through existing Alabbar Enterprises data. Invitations will go out in advance beginning in January, that way stylists can begin coordinating appointment inventory in February to prepare for future one-on-one styling sessions. Posts inviting the public will begin circulating on social media at the same time, enticing both visitors and residents of Dubai to plan in advance. Hotel-based invitations will begin in late February and continue through the duration of the pop-up shop, allowing interested guests to arrange a store visit with the Net-a-Porter concierge.
The final section of Net-a-Porter Dubai comprises the entire back area of the selling space, where all physical inventory is merchandised impeccably. The back section is outfitted with floating glass shelves, mirrors, and counters that will emphasize the minimal merchandising while showcasing the array of designer beauty, handbags and accessories available to shop within the store. In-store merchandise will start in glass displays in the back-left section of the store, referred to as the Small Goods Salon, where beauty, high-end accessories, and miscellaneous goods will be offered. Handbags will sit on shelves directly on the back wall, known as the Accessories Wall, and will be visible directly upon entry into the store. They also outline the cash wrap, helping lead the consumer through a perfect Net-a-Porter shopping experience.
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25
AMBIANCE/ARTWORK/VISUAL MERCHANDISING
Touch: The space at large strikes a sensory balance of hard and soft textures. Leather is the primary material utilized on seating and accents to evoke a sense of luxury and warmth. Glass is used in juxtaposition to convey a feeling of glamour and transparency throughout. Technology also lends itself to physical interaction, encouraging visitors to use the touchscreen wall in the virtual shop and the portable tablet devices. Taste: The refreshment bar located in the stylist lounge is exclusively open to EIP’s on private appointment days and features an array of non-alcoholic beverages from coffee to mocktails.
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Sight: Net-a-Porter’s traditional e-commerce platform envisioned in brick and mortar form leaves room for vast interpretation. Considering the purpose of the pop-up and the innovative location, the space reflects its
surroundings with a contemporary, exhibit-like feel. The minimal decor coupled with a prominently black and white color palette enable the product within to stand out. Scent: Jasmine Sambac, Orange Blossom, Black Amber and Sandalwood mix together to create a calming, yet non-offensive scent that reflects the Neta-Porter aesthetic. Other contributing factors may include leather fixtures and the espresso machine in the refreshment bar. Sound: The absence of intentional sound lends itself to a more intimate, exhibitlike atmosphere, which creates the desire for verbal communication. The importance of sound is placed on the interaction between staff and customers. 27
Refreshment Bar
Stylist Lounge
28
Concierge Counter
Virtual Shop
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HUMAN RESOURCES/LEGAL ISSUES/SAFETY AND SECURITY
COSTS NET-A-PORTER STORE Set-Up Expenses VALUE OF STORE INVENTORY:
COMPANY NAME:
Item #
Dubai Design District, POBOX:73000, Dubai, UAE
PHONE:
971 (4) 433 3000
Room/
1 2
3
3
Purchase
Purchase price price £ £ £
Foyer
MAEL STROM Chandelier
£
£ £
Item ## Item
214859 Dubai, UAE
Room/ Room/ area area
Item/ Item/ description description
Purchase Purchase price price
54,000.00
1 37
Retail Lounge Space Rental Stylist
Leased Lirio through Custom Bloqd3Light
££
54,000.00 80.00
100.00
2 38
FoyerGoods Salon Small
Small Gems Blackw/ Rug Carpet Beauty Counter Showcase
££
100.00 900.00
2,000.00
3 39
FoyerGoods Salon Small
MAEL STROM Beauty Counter Chandelier w/ Showcase
££
2,000.00 900.00
54,000.00 100.00 2,000.00
Absinthe Kobo Absinthe Kobo SQ,SQ, BlackBlack
£
£
80.00
80.00
4 40
FoyerGoods Salon Small
Absinthe Kobo SQ, BlackMirror 510-15 Chrome Makeup
££
80.00 100.00
5 5
Foyer Foyer
Absinthe Kobo Absinthe Kobo SQ,SQ, BlackBlack
£
£
80.00
80.00
5 41
FoyerGoods Salon Small
AbsintheKobo KoboSQ, SQ,Black Black Absinthe
££
80.00 80.00
6 6
Foyer Foyer
Absinthe Kobo SQ,SQ, BlackBlack Absinthe Kobo
£
£
80.00
80.00
6 42
FoyerGoods Salon Small
AbsintheKobo KoboSQ, SQ,Black Black Absinthe
££
80.00 80.00
7 7
Foyer Foyer
Absinthe Kobo SQ, Black
£
£
80.00
80.00
8
Foyer
Absinthe Kobo SQ, Black
£
7 43
FoyerGoods Salon Small
AbsintheKobo KoboSQ, SQ,Black Black Absinthe
££
80.00 80.00
Foyer
Mobile POS
£
80.00
8 44
FoyerGoods Salon Small
AbsintheKobo KoboSQ, SQ,Black Black Absinthe
££
80.00 80.00
Virtual Shop
Autograph Merano Footstool
£
200.00
9 45
FoyerGoods Salon Small
Mobile POS Absinthe Kobo SQ, Black
££
200.00 80.00
400.00
10 46
VirtualGoods Shop Salon Small
Autograph Merano Footstool Absinthe Kobo SQ, Black
££
400.00 80.00
400.00
11 47
Virtual ShopWall Accessories
Autograph Merano Footstool Mirrored Floating Shelf
££
400.00 25.00
9 10
Foyer Foyer
Absinthe Kobo SQ, Black Absinthe Kobo SQ, Black Mobile POS
£
400.00
Virtual Shop
Autograph Merano Footstool
£
Virtual VirtualShop Shop
Merano Footstool LGAutograph 55" LED Touch-Screen Display
£
£
1213
Virtual VirtualShop Shop
LG 55"Lirio LEDBloq Touch-Screen Display Custom Light
£
£
80.00 6,000.00
12 48
Virtual ShopWall Accessories
LG 55" LED Touch-Screen Mirrored Floating Shelf Display
££
6,000.00 25.00
1314
VirtualShop Shop Virtual
Custom Lirio BloqBloq LightLight Custom Lirio
£
£
80.00
80.00
13 49
Virtual ShopWall Accessories
Custom Lirio BloqShelf Light Mirrored Floating
££
80.00 25.00
1415
VirtualShop Shop Virtual
Custom Lirio BloqBloq LightLight Custom Lirio
£
£
80.00
80.00
14 50
Virtual ShopWall Accessories
Custom Lirio BloqShelf Light Mirrored Floating
££
80.00 25.00
16
Virtual Shop
Black Concierge Counter
£
Stylist Lounge
Divina Petite Lounge Chair
£
£
500.00
80.00
15 51
Virtual ShopWall Accessories
Custom Lirio BloqShelf Light Mirrored Floating
££
80.00 25.00
Stylist Lounge
Divina Petite Lounge Chair
£
500.00
16 52
Virtual ShopWall Accessories
Black Concierge Counter Mirrored Floating Shelf
££
500.00 25.00
Stylist Lounge
Silk Pillow in Chevron Black
£
250.00
17 53
Stylist Lounge Accessories Wall
Divina Petite Lounge Mirrored Floating ShelfChair
££
250.00 25.00
Silk Pillow in Chevron Black
£
250.00
18 54
Stylist Lounge Accessories Wall
Divina Petite Lounge Mirrored Floating ShelfChair
££
250.00 25.00
400.00 6,000.00
15
Virtual Shop
16
Virtual Shop
17
Stylist Lounge
1820
Stylist Lounge Stylist Lounge
1921
Stylist StylistLounge Lounge
Silk Magazine Pillow in Rack Chevron Black Glass
£
£
90.00
50.00
19 55
Stylist Lounge Accessories Wall
Silk Pillow in Chevron Mirrored Floating Shelf Black
££
50.00 25.00
2022
Stylist StylistLounge Lounge
SilkLoPillow Bala Table in Chevron Black
£
£
150.00
50.00
20 56
Stylist Lounge Accessories Wall
Silk Pillow in Chevron Mirrored Floating Shelf Black
££
50.00 25.00
2123
StylistLounge Lounge Stylist
Mobile GlassPOS Magazine Rack
£
£
200.00
90.00
57 21
Accessories Wall Stylist Lounge
Mirrored Floating Rack Shelf Glass Magazine
££
25.00 90.00
2224
Stylist Lounge Stylist Lounge
Gems Medium Rug Black
£
£
150.00
150.00
58 22
Accessories Wall Stylist Lounge
Mirrored Floating Shelf Bala Lo Table
££
25.00 150.00
25
Stylist Lounge
Absinthe Kobo SQ, White
£
Stylist Lounge
Absinthe Kobo SQ, White
£
200.00
59 23
Accessories Wall Stylist Lounge
Mirrored Floating Shelf Mobile POS
££
25.00 200.00
Stylist Lounge
Absinthe Kobo SQ, White
£
150.00
60 24
Accessories Wall Stylist Lounge
Mirrored FloatingRug Shelf Gems Medium Black
££
25.00 150.00
Stylist Lounge
Yoo Oh Kitchen Island, Eath
£
80.00
61 25
Accessories Wall Stylist Lounge
Mirrored Shelf AbsintheFloating Kobo SQ, White
££
25.00 80.00 25.00 80.00
17 18 19
Custom Lirio Bloq Light
£
200.00
1112
Virtual Shop
Autograph Merano Footstool
£
80.00
10
11
30
Khalid Abadi (96372) 009-5676
Small Gems Black Rug Carpet
MAEL STROM Chandelier
CIRS1234
Rental Agent: Rental Agent Address:
Foyer
Foyer
971 (04) 447 3137
Rental Company Policy Number:
Foyer Foyer
9
In addition to these stylists, a store manager will transition into the physical space as a way to ensure that the day-to-day functions operate with Net-a-Porter’s values in mind. Two store guards will be appointed to the space to ensure safety for customers and inventory. Outside of the store, a stylist and fulfillment coordinator will work hand-in-hand with the Public Relations team to reach out and schedule private appointments, as well as to relay information on these customers to the store manager. Two tailors and messengers will be based out of the nearby distribution center, working exclusively with the pop-up shop clientele to create custom alterations and deliveries handled outside of the store’s vicinity. Finally, two drivers for the Net-a-Porter car service on Extremely Important Person (EIP) days will be outsourced and directly managed with the contracted company, UAE Limo.
Leased through d3 Small Gems Black Rug Carpet
Catertainment Innovative Rental Solutions
Rental Company Phone Number:
4 4
8
Net-a-Porter typically uses a strong network of operations online that must be translated towards a brick-and-mortar model for the purpose of the pop-up shop. Customer care will remain the number one focus, so an existing customer care team can transition into the store space with training for sales associates on ground. Due to the high-tech nature of the shop, and its multiple platforms (Porter, The Edit, and The Net Set) Net-a-Porter already has in place, stylists will undergo extensive training to assist customers with each. Training will cover the navigation of the important tools needed by stylists, covering the importance of greeting to closing the sale with a consumer. The Net-a-Porter Dubai pop-up shop will feature four, highly-trained stylists that will be responsible for working with customers on both appointment and public shopping days. Each stylist will be fluent in both Arabic and English.
Retail Space Rental
Foyer
Item/
Item/ description description Leased through d3
March 2017
Rental Company:
NET-A-PORTER DUBAI POP-UP SHOP
ADDRESS:
Room/ Item # area areaSpace Rental 1 Retail 2
INVENTORY DATE:
£ 73,705.00
Black Concierge Counter Divina Petite Lounge Chair Divina Petite Lounge Chair
Bala Lo Table
£ £
50.00 50.00
80.00
Stylist Lounge
24
Stylist Lounge
25
Stylist Lounge
2629
Stylist StylistLounge Lounge
AbsintheMagimix Kobo SQ, White Nespresso
£
£
300.00
80.00
62 26
Accessories Wall Stylist Lounge
Mirrored Shelf AbsintheFloating Kobo SQ, White
££
2730
Stylist StylistLounge Lounge
Absinthe Kobo SQ, White Black Melamine Tray
£
£
50.00
80.00
63 27
Accessories Wall Stylist Lounge
Absinthe AbsintheKobo KoboSQ, SQ,Black White
££
80.00 80.00
2831
StylistLounge Lounge Stylist
Stelton Cylinda Line Island, Tea/Coffee Service£ Yoo Oh Kitchen Eath
£
150.00
400.00
64 28
Accessories Wall Stylist Lounge
Absinthe Kobo SQ, BlackEath Yoo Oh Kitchen Island,
££
80.00 400.00
2932
StylistLounge Lounge Stylist
Leibal Long Hanging Clothing Rail
£
£
75.00
300.00
65 29
Accessories Wall Stylist Lounge
Absinthe Kobo SQ, Black Nespresso Magimix
££
80.00 300.00
Stylist Lounge
Roam + Reason Refreshment Bar
£
Stylist Lounge
Custom Lirio Bloq Light
£
50.00
66 30
Accessories Wall Stylist Lounge
Absinthe Kobo SQ, Black Black Melamine Tray
££
80.00 50.00
Stylist Lounge
£
150.00
67 31
Accessories Wall Stylist Lounge
Custom Lirio Bloq Light ££ Stelton Cylinda Line Tea/Coffee Service
80.00 150.00
27 28
33
30
Stylist Lounge
31
Stylist Lounge
34 35
Gems Medium Rug Black Absinthe Kobo SQ, White
Nespresso Magimix
Black Melamine Tray
£
250.00
23
26
Mobile POS
£
250.00
£ £
£
Stelton Cylinda Line Tea/Coffee Service£
80.00 80.00 400.00
250.00 80.00
32
Stylist Lounge
3337
Stylist Lounge Stylist Lounge
Custom Lirio Bloq Light Leibal Long Hanging Clothing Rail Custom Lirio Bloq Light Roam + Reason Refreshment Bar Custom Lirio Bloq Light
3438
Stylist Small Lounge Goods Salon
Custom Liriow/ Bloq Light Beauty Counter Showcase
£
£
3539
Stylist Small Lounge Goods Salon
Custom Liriow/ Bloq Light Beauty Counter Showcase
£
£
3640
Small Lounge Goods Salon Stylist
510-15 Chrome Mirror Custom LirioMakeup Bloq Light
£
£
41
Small Goods Salon
Absinthe Kobo SQ, Black
£
80.00
42
Small Goods Salon
Absinthe Kobo SQ, Black
£
80.00
43
Small Goods Salon
Absinthe Kobo SQ, Black
£
80.00
44
Small Goods Salon
Absinthe Kobo SQ, Black
£
80.00
45
Small Goods Salon
Absinthe Kobo SQ, Black
£
80.00
46
Small Goods Salon
Absinthe Kobo SQ, Black
£
80.00
47
Accessories Wall
Mirrored Floating Shelf
£
25.00
48
Accessories Wall
Mirrored Floating Shelf
£
25.00
49
Accessories Wall
Mirrored Floating Shelf
£
25.00
36
Stylist Lounge
£ £
£ £
80.00
75.00
68 32
Accessories Wall Stylist Lounge
Custom Lirio Bloq Light Leibal Long Hanging Clothing Rail
££
80.00 75.00
250.00
69 33
Cashwrap Storage Stylist Lounge
Large Storage Roam + ReasonCounter Refreshment Bar
££
200.00 250.00
900.00
80.00
70 34
Cashwrap Storage Stylist Lounge
Large Storage Counter Custom Lirio Bloq Light
££
200.00 80.00
900.00
80.00
71 35
Cashwrap Stylist Lounge
Large Gems Black Rug Carpet Custom Lirio Bloq Light
££
200.00 80.00
100.00
80.00
1,350.00
80.00 80.00
Item 72 36 #
Room/ Cashwrap Stylist area Lounge
Item/ Display2Go Custom LirioBlack BloqCash Light Wrap description
Purchase ££ price
200.00 80.00
73
Cashwrap
POS Terminal
£
74
Ambiance
Net-a-Porter Store Scent Page 2 of 3
£
700.00
£
73,325.00
TOTALS
INVENTORY ITEMS: 74
31
FOOT TRAFFIC PROJECTIONS/SALES FORECAST/PRODUCT PLAN
SECTION FIVE
32
33
COMMUNICATION AND PROMO PLAN Facebook, Instagram and Twitter: Capitalizing on a combined audience of over 3 million followers, social media is one of Net-a-Porter’s strongest, and least expensive, promotional tools. Budgeting is allocated towards production including: product shots, photographer, graphic design and PR teams. Public Relations is responsible for the posting and promoting of Net-a-Porter Dubai content across the existing platforms. Expenses with these factors cost an average of 1800 GBP per post. EIP Posts: A small, hand-selected set of social media influencers will work hand-in-hand with the Net-a-Porter Public Relations team to begin publishing partner content on their respective social media platforms. Posts will begin in February, raising awareness about Net-a-Porter Dubai and the public shopping days available during the pop-up shop through its closing. A set rate of 5000 GBP per post is in place with EIP’s and a set of guidelines are provided outlining post expectations. E-Blast: An E-blast will circulate to Net-a-Porter’s existing customer base, both globally and in Dubai, to inform loyal consumers about the pop-up shop’s public shopping days, as well as to give a few existing consumers the opportunity to work the Net-a-Porter stylists. Content will reflect an invitation to the launch event, which will outline the details of the event, while encouraging customers to bring a plus one for word-of-mouth marketing. A follow-up email will reflect a message filled to the brim with content as a last effort to tease and promote the pop-up shop experience. Budgeting is allocated to the graphic design, IT and marketing team for an estimated cost of 1250 GBP to produce.
Teresa Karpinska | Style Drifter Swedish fashion stylist and blogger residing in Dubai Website: styledrifter.com Instagram: 45k Followers
Invitations and Thank-You’s: Formal invitations will be mailed out to Dubai-based HNWI’s for private appointment days beginning the first of the year. Details will include event highlights, as well as instructions to make an appointment with the stylist coordinator. Handwritten thank-you cards will be mailed out from individual stylist’s to their customers promptly after their appointment. The budgeting expenses reflect a contracted invitation company, postage, portion of wages for stylist’s time, and the marketing team for a total of 2000 GBP.
Nadya Hasan | The Fierce Diaries Emirati fashion, lifestyle and travel blogger Website: thefiercediaries.com Instagram: 143k Followers
All promotions specific to pop-up shop will end in May in observance of Ramadan.
1.5m Likes
Dalal AlDoub | DALALID Kuwait-based fashion and beauty blogger Instagram: 1.9m Followers Website: dalalid.com/dalalid YouTube: 405k Followers
34
Ruba Zai | Hijab Hills Fashion blogger known for hijab styling videos Instagram: 867k Followers Website: rubazai.com YouTube: 343k Followers
862k Followers
2.4m Followers
Tamara Al Gabbani | I Am Tamara Dubai-based evening wear designer, style icon and TV personality Website: iamtamara.com Instagram: 136k Followers
35
OPERATIONS BUDGET/PROFIT AND LOSS STATEMENT
CONCLUSION
There are a lot of challenges involved in translating a traditionally web-based retailer into a one-of-a-kind store experience. Net-a-Porter constantly strives to exceed expectations by providing a tailored shopping environment specific to each customer - wherever they may be. By implementing a pop-up shop on ground in Dubai, with the ultimate goal of successfully strengthening the brand reputation both locally and globally, Net-aPorter has a highly valuable opportunity to grow its customer base. Dubai is the ideal location to enter the Middle Eastern luxury market due to its progressive nature and receptive attitude. The unique status of Dubai’s imminent peak in online shopping proves to be a strong asset that Net-aPorter can capitalize on by bridging the gap and addressing existing cultural shopping norms. By integrating technology into the store experience, customers will be familiar with Net-a-Porter’s native platform and how to use it efficiently long after the physical environment leaves. The result is a luxurious customer experience on ground that will transition into loyal customers online for years to come.
36
37
NET-A -PO RTER
CLAIRE COLLIER WILLIAM FANCHER COURTNEY LUCIDO MIKENNA RASE PROFESSOR CANNATA FASM 410 - RETAIL MANAGEMENT POP-UP SHOP PROPOSAL FOR DUBAI, UAE