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CONTENT
History The evolution of J. Crew from 1983 to present day.
pg. 4
Target Customer Who they should be considering in terms of location, products as well as advertisements.
pg. 12
Competitors Trendy American classic brands
pg. 16
Location A place of convenience for everyone: especially J. Crew’s target market
pg. 20
Trends
Minimalism and stripes are two of the biggest trends during the S/S 2015 shows
pg. 26
Merchandise Assortment Key classes, sub classes, pricing and focusing on one key class to plan an assortment
pg. 30
Interior Design Sketches and designs were done by interior designer Brooke Watson.
pg. 40
Promotion The different marketing strategies that J. Crew employs.
pg. 51 PAGE 3
1983 ESTABLISHED
To hone in on the growing catalog retail sales, J Crew initiated it’s own catalog operation that focused on the upper middle class. Their customers were looking for a preppy look at a lower price. 31 years later, the company still stands strong with CEO Millard Drexler and President Jenna Lyons at the helm (J. Crew)
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SINCE 1983
At J Crew, they believe in style over fashion. They think that everything is right when there is something left just a little imperfect. They don’t believe that there is just one way to wear an outfit. J Crew is an American brand but sources fabrics from around the world. (J. Crew)
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PRODUCTS J.CREW offers a wide variety of womens, mens and
kids apparel in their stores. Tops, bottoms, coats, shoes, bags and accessories are just some of the product offerings available to customers. Currently, the brand has two different product lines for womens apparel: J. Crew Classic and J. Crew Collection. The classic line features a variety of basics and casual items that could be worn on the weekends or during one’s downtime. On the other hand, collection is an exclusive line that is typically shown during New York fashion weeks. This includes special designer items that are considerably more modern and edgier with a higher quality. As a result, the collection line is also more expensive (J. Crew).
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PAGE 8 J. Crew London Store Opening
458 Stores worldwide
AS of 2014, J. Crew was reported to have over 400 stores worldwide. In the past few years, the American brand started to expand into other terriroies, starting with Canada. Following that, they made their move to the United Kingdom where they have 4 stores in London. Most recently, J. Crew entered the asian and european markets with stores opening in Hong Kong and Paris. To date, there are 2 J. Crew stores located in Hong Kong, with plans for expansion (J. Crew).
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PAGE J. Crew10Men’s Store HK
2
Stores in Hong Kong
CURRENTLY, J.Crew has 2 stores open in Hong Kong.
Women’s J. Crew Collection IFC Mall 8 Finance Street Monday - Sunday 10.00 - 21.00 Men’s J. Crew Line 9 On Lan Street Monday - Sunday 10.00 - 21.00
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TARGET CUSTOMERS
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OUR CUSTOMERS To be successful, you have to dress the part
THE J. Crew target customer: a fashion loving individual at the career building stage. Looking for trendy yet work appropriate outfits. Appreciates garments of a high quality at a reasonable price.
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TARGET CUSTOMERS THE age range for J. Crew’s target customers spans from age 25 - 34. This is the age where people are really starting to focus on their work and in the career building stage. Their consumers are upper middle class working professionals that want to dress to impress and for success. Fashion forward but professional, they are looking for pieces that are both trendy and work appropriate at the same time. J. Crew targets people who have the mindset that values quality at a reasonable price.
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COMPETITORS
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COMPETITORS Brands with classic American style
LOOKING at other brands with the quintessential classic Amer-
ican style with a modern twist, we can immediately pick out a few that matches J. Crew aesthetic wise. Tommy Hilfiger is in the same price range, but has a slightly preppier aesthetic whereas J. Crew is incorporates more trendy elements into their products. Gap, though similar aesthetically, still sells more basic products than J. Crew and is at a lower price point.
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COMPETITORS
TOMMY HILFIGER
TOMMY HILFIGER Classic American cool style, featuring preppy with a twist
FOUNDED in 1985, Tom-
my Hilfiger delivers premium styling, quality and value to consumers worldwide under the Tommy Hilfiger and Hilfiger Denim brands, featuring men’s, women’s and children’s apparel, sportswear, denim, accessories and
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footwear. For 29 years, the brand has brought classic, cool, American apparel to consumers around the world. His designs give time- honoured classics a fresh look, and his discerning taste has provided the foundation for the growth of a global brand. Specifically targeting the 25
to 45 year old consumer, the Tommy Hilfiger label appeals to those seeking a new interpretation on classic American style. Currently, the brand has over 1000 retail stores in over 90 countries such as England, France, Canada, Singapore, China and Hong Kong.
COMPETITORS
GAP
GAP
American optimism is our attitude
OPENED
in 1969 by founders Doris and Don Fisher, Gap aimed to be the brand to go to find the perfect pair of jeans. Their story and fashion perspective quickly spread with the opening of more stores across the U.S, focused on delivering casual,
American style. Currently, they sell a variety of men’s, women’s and children’s apparel and accessories. Gap stepped onto the global stage in 1987. To date, they have over 1,700 company operated and franchise retail locations around the world and they have expanded their
online presence to around 70 countries. Gap’s target demographic ranges from ages 20 to 35 years. The cusomters are looking for a classic yet updated American style look. Timeless yet trendy designs at low prices keeps the consumers coming back to Gap for more.
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LOCATION ANALYSIS
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LOCATION The ideal area for the start of a new story
J.CREW plans to open at a new location, combining both the wom-
en’s and men’s apparel in the same store. Keeping in mind of popular shopping destinations in Hong Kong as well as their target market, it was concluded that the best location would be in Times Square, Causeway Bay.
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TIMES SQUARE CAUSEWAY BAY 1 MATHESON STREET, CAUSEWAY BAY, HONG KONG
TIMES Square is a major shopping
centre and office tower complex located in the most vibrant district in Hong Kong. It is one of the most popular tourist spots, with a foot traffic of over 150 thousand every day. This is an excellent location for J. Crew as the store would be located in an area surrounded by offices, including the two office towers attached to Times Square itself. The brand’s target customers could easily head to the store during lunch or after work. THE mall is easily accessible to everyone with multiple modes of transportation available to get there. Times Square has an underground carpark that is open 24/7, giving customers an area to park and access the mall easily. The mall is also connected to the MTR at Causeway Bay and has it’s own exit. Other modes of public transportation such as the tram, coach, mini and public buses may also be used (Times Square)
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527 STORE
TO determine where specifically in
Times Square J. Crew would be located, I looked at a number of different factors. First of all, I examined J. Crew’s present store location in Hong Kong. The brand currently has 2 stores in the country, a women’s store in the IFC mall and the men’s located on 9 On Lan Street. Both of these locations are popular shopping destinations that both tourists and locals often visit. Store no. 1026 - 1028 marks the location for the women’s IFC store. The notable surrounding stores are as follows: Links of London, Thomas Sabo, Folli Follie, Max & Co. and Kate Spade New York. We can see how they have situated themselves amongst brands selling different products, but at a similar price
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range - the affordable luxury section. The same could be said for the men’s store, where it is sandwiched between Gianvito Rossi and Rupert Sanderson. As such, the logical step would be to follow suit and place the new store in a location with similar stores in this price range. Store no. 527 in Times Square fits the requirements, with affordable luxury brands such as Thomas Sabo, Folli Follie, Club Monaco and Calvin Klein Jeans. Competitor Tommy Hilfiger is also located on the same floor. By placing J. Crew in front of the escalator, customers would see our store first before our competitor’s, thus, giving us a location advantage.
PICTURED Top: Floor plan of the 5th floor of
Times Square. Notable store neighbours surround the decided location.
Left: View of store as you step off the escalator.
Bottom left: To the left of the store, another set of escalators. Competitor Tommy Hilfiger resides behind those escalators.
Bottom right: View of the escalator right outside store no. 527. DIRECTORY 501. Tommy Hilfiger 507. Folli Follie 517. Calvin Klein Jeans 524. Thomas Sabo 525. Club Monaco 527. (Now) Links of London (Future) J. Crew PAGE 25
TRENDS
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TRENDS Spring/ Summer 2015
IN order to do an assortment plan, we would have to first see what the trends are for that year before buying anything. This would allow the brand to stay trendy and relevant, catering to the customer who is looking for the season’s hottest items with the J. Crew aesthetic.
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PANTONE 663C
PANTONE 420C
PANTONE 453C
PANTONE 504C
PANTONE 7455C
PANTONE 414C
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MINIMALISM ONE of the major spring/ summer
2015 trends looks at the concept of minimalism. A simple style with no extra embellishments and a loose silhouette, the trend fully embodies the essence of simplicity. The whole idea of minimalism is to have and use only the things you need to be alive and happy. By getting rid of
2
the chaos in your life, would you then know what is really important. Colours for this trend consists of browns, greys and whites. White, in particular, is the key colour of this trend, with multiple pure white head to toe outfits traversing down the runway.
THE
TRENDS
STRIPES
WHILE stripes are a timeless and
common pattern that is seen time and time again, the prominence of these vertical or horizontal linear patterns is overwhelming this year. Many designers decided to showcase their versions of striped garments on the runway in their spring/ summer 2015 collection. The key
colours for this trend are dark reds, blue and grey. Blue seems to be the most popular colour for this trend as it was not only the colour of the stripes itself, but also the colour of the other garments used to complete the look shown on the runway.
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MERCHANDISE ASSORTMENT
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MERCHANDISE ASSORTMENT WOMEN’S & MEN’S APPAREL
60%
40%
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TOPS
OUTERWEAR
KEY CLASSES
WOMEN’S APPAREL
SWEATERS
DRESSES
SKIRTS & SHORTS PAGE 32
PANTS
JEWELRY & ACCESSORIES
SHOES
J.CREW has a large variety of
product categories for women’s apparel. Tops and sweaters were seperated as sweaters are one of the signature garments that J. Crew sells, which they have a large assortment of. Outwerwear, pants, shorts and skirts, dresses, jewelry and accessories and shoes are some of the other products that the brand sells.
TOPS
OUTERWEAR
SWEATERS
PANTS
SHORTS
SUITING
TIES & ACCESSORIES
SHOES
KEY CLASSES
MEN’S APPAREL
THE menswear line is very
similar to the women’s in terms of the different product categories available. They do have a collection of suits that are very popular amongst their male customers. To compliment the suits, ties and bow ties are also sold in their accessories section.
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Blouse Shirt Tee Crop
Motorcycle Trench Blazer Poncho Puffer
Merino Wool Cashmere Cardigan Cropped Hoodie Turtleneck
TOPS
OUTERWEAR
SWEATERS
10%
6%
Wrap Umbrella Tee Shift Jumpsuit
Cropped Pajama Tuxedo Leggings
Pencil Flounce Mini Midi Shorts Culottes
DRESSES
PANTS
SKIRTS & SHORTS
12%
17%
17%
20%
Flats Loafers Pumps Wedges Boots
SHOES
10% PAGE 34
Necklace Rings Bracelets Scarves Hats Bags Sunglasses JEWELRY & ACCESSORIES
8%
SUB CLASSES & ASSORTMENT WOMEN’S APPAREL
$1,180 - $12,150 $1,680 - $32,380 TOPS
OUTERWEAR
$1,850 - $17,680 $1,680 - $5,580 DRESSES
PANTS
$980 - $6,050 SWEATERS
$980 - $9.080 SKIRTS & SHORTS
PRICING WOMEN’S APPAREL
$2,350 - $5,050 SHOES
$380 - $4,050 JEWELRY & ACCESSORIES
Listed are the price ranges for each product category in the women’s apparel section. Prices vary based on the amount of embelishments, design and the type of fabrics used.
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IN FOCUS PANTS
“
J. CREW employees reveal themselves by the nakedness of their ankles. It’s as if the company’s uniform is enforced only from the knees down
“
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IN a recent interview with
Jenna Lyons by Danielle Sacks, she noted something she thought stood out when she visited the company’s headquarters. “J. Crew employees reveal themselves by the nakedness of their ankles. It’s as if the company’s uniform is enforced only from the knees down. Bare ankles, for men and women alike,
fill the company’s East Village headquarters” (Sacks). The modern prep brand is well known for their pants and ankle skimming hemlines, a signature look that all employees at J. Crew inadvertently adhere to. As such, due to it’s popularity and iconic bare ankle look, the merchandise assortment plan would be focused specifically on the pants.
PICTURED Top left: (left to right)
Menswear head Frank Muytjens, Womenswear head Tom Mora, President Jenna Lyons and Merchandising chief Libby Wadle. PAGE 37
ASSORTMENTS A focused assortment for ‘pants’ in J. Crew, Times Square
ASSORTMENT BY STYLE CROPPED
TROUSERS
55%
30%
LEGGINGS
5%
PAJAMAS
10%
KEEPING J. Crew’s target consumer in mind, an assortment plan on the fo-
cused product category can be made. There are 4 different pants styles in J. Crew: Cropped, Trousers, Leggings and Pajamas. As mentioned previously, the brand’s signature look is the ‘bare ankles’, which makes the cropped pants the highest style buy. Following that, the brand’s target customers is the working class, thus, trousers is the next highest buy as it would cater to the office professionals. Pajama pants has a higher percentage than the leggings as it follows the loose silhouette and idea of comfort in the minimalist trend. PAGE 38
COLOUR
black
white
blue
10%
30%
20%
brown
stripes
25%
COLOURS were assorted by looking at J. Crew’s most prominent colours on their garments followed by looking at the trends. Wearing head to toe white is a part of the minimalist trend, which is why it has the highest percentage. Brown, blue, stripes and finally, black follow suit.
000 8%
SIZE
15%
2
00
0
16%
20%
4
15%
13%
8
10
10%
7%
6 11%
FOR the Hong Kong store, J. Crew launched a new size that they felt the asian market needed due to their typically smaller body size. However, not many people purchase that size (Merrick). Knowing this, the percentage for size ‘000’ is much lower compared to the rest of the sizes. Typically, the asian body size ranges from 00 to 4, which justifies the higher percentages. PAGE 39
INTERIOR DESIGN
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INTERIOR DESIGN All sketches and designs by Brooke Watson
FROM floor layouts and plans to wall racks, store fronts and
lounge areas, the interior designers have made a cohesive store plan that ties in with J. Crew’s aesthetic. Pictured in the following pages are the key areas that would need to be focused on.
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1 LEVEL
LEVEL one features a larger area and thus, is home to the women’s apparel. Wood-
en shelves and racks line the walls, allowing for garments to be both hung and folded on them. Tables and glass cases are placed in the middle of the store where accessories and folded garments would be placed in true J. Crew fashion. A lounge area is featured at the end of the store, creating a diverge in the road - one leading to the fitting room, and the other, to the women’s
INTERIOR DESIGN: BROOKE WATSON
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2 LEVEL
THE second floor is where all the men’s apparel would be placed. As there are
lesser men’s merchandise as compared to female’s, they were given the level with the smaller area. Much like the first floor, the wooden furnishings are still present along the sides of the walls to hang the garments. Accessories are placed on the furnishings located in the middle as well.
INTERIOR DESIGN: BROOKE WATSON
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WOMEN’S WALL RACKS A female’s perspective
INTERIOR DESIGN: BROOKE WATSON
THE first floor of J. Crew Times Square houses the women’s apparel and accesso-
ries. Wooden furnishings display the garments that are either hung on the racks or folded on the shelves. The well- lighted area is complemented by the in store decorations and plants seated on the top shelves to bring a homey atmosphere to the store.
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MEN’S
WALL RACKS A male’s gaze
INTERIOR DESIGN: BROOKE WATSON
MEN’S apparel can be found on the second floor of the new J. Crew store. Once
again, the products are hung from wooden racks and shelves to hone in on the American prep environment that is part of the brand’s image. Pants are hung from pegs at the top facing forward, thus, allowing customers to see what they look like easily without having to reach up and grab it from the racks.
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1 LEVEL
Lounge Area
AS one walks through the J. Crew store, they would be naturally drawn towards
this lounge area that is located at the back of the store, past the racks of garments and tables of accessories. Leather swing sofas hang from the ceiling above a hide skin rug laid upon the wooden floors of the store. At the sides, a steel piping light systems puts a modern take on the preppy American atmosphere. Behind the swings is a collage of photos that is typically seen in most J. Crew stores.
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2 LEVEL
Lounge Area
THE second floor has another lounge area specially for the men. Once again, the leather swing sofa rests towards the back of the store which forces customers to walk past the clothing racks and tables in order to get to this focused area. The second floor is much smaller, and the lounge area reflects that and takes it into consideration. Replacing the steel piped lighting fixtures are decorative animal mounts that along with the hide skin rug, evokes a sense of hunting.
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PLANOGRAM
THE planogram shows an area in the store and focuses in on the mer-
chandise that would be placed there and how everything would look visually. The planogram here shows a section from the 1st floor womenswear appare. The shelving/ rack fixture is located along the sides of the walls and is used to display the garments. J. Crew’s method of product placement goes according to collection followed by colour matching. Therefore, there is a variety of sweaters, dresses, pants and overcoats seen in the planogram. 4 different sizes for each style would be displayed on the racks so as to ensure that it is not cluttered and still maintains a sense of luxury.
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2 sweaters 3 outerwear 4 pants 2 dresses Pictured: 11 styles x 4 sizes = 44 SKUs PAGE 49
PROMOTION
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PROMOTION J. Crew’s marketing startegies
ACCORDING to J. Crew’s Annual report, they stated that their marketing and advertising strategy is to communicate their brand message to customers through all channels including the following: Website, Catalog, Email, Online and Social Media.
THEIR core marketing objective is to drive awareness, increase new customer acquisition and to maintain and build customer retention and loyalty.
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SOCIAL MEDIA “We have found that J. Crew customers who engage with us via our social media outlets spend 2x more than the average customer� (Burney)
BY driving meaningful engagement across a variety of social media platforms, J.
Crew has cultiated an online audience that spends twice as much as the average customers. This reinforces how important being active and engaging online is and how it could help the company grow. ON facebook alone, the retailer has over 1,300,000 fans. Instagram reaches out to over 700,000 followers, while twitter updates 300,000 followers. The data shows how successful marketing on these platforms can be. Thus, a stronger focus would be directed towards this area following the upcoming launch for the new store in Hong Kong
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GIFT WITH PURCHASE
TO introduce the public to the new J. Crew store location, we could take a page from the brand’s own promotional launch when they first opened in the IFC mall. For a week, the American retailer took over the atrium with van like stores that offered different gifts upon purchase at J. Crew. One such gift was the J. Crew HK tote bag which features a map of popular destinations in Hong Kong Island with arrows pointing to the two J. Crew stores. Such a bag, when updated, could be brought back again to spread the word of the new location at Times Square.
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REFERENCES
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WORKS CITED Burney, Kara. “J. Crew’s Data- Driven Approach to Fashion (And Marketing)” Track Maven. 21 May 2014. Web. 10 Nov 2014. Gap. Gap Inc. N.d. Web. 3 Oct 2014. J. Crew. J. Crew. N.d. Web. 3 Oct 2014. Merrick, Amy. “Who’s buying J. Crew’s new XXXS clothes?” The New Yorker. 16 July 2014. Web. 10 Nov 2014. Sacks, Danielle. “How Jenna Lyons transformed J. Crew into a cult brand.” Fast Company. 15 Apr 2013. Web. 10 Nov 2014. Times Square. Times Square Hong Kong. N.d. Web. 20 Oct 2014. Tommy Hilfiger. Tommy Hilfiger Licensing. N.d. Web. 3 Oct 2014. Watson, Brooke. 2014. SCAD. Interior Design. Print.
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By Clara Sim FASM 410: Retail Management
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