Reformation Julia Riley, Claudia Aguilar, Sydney Jones, Nina Molina: FASM 245
History Reformation was launched in 2009 by Yael Aflalo. Aflalo was working on her first clothing brand when she began to learn of fashions negative impacts on the environment. She began to think of ways to make her fashion less wasteful, thus launching Reformation in 2009.
Reformation is an LA based brand where all of its clothing is designed, manufactured, photographed, pack and shipped in house. In 2012, Aflalo relaunched Reformation as an e-commerce brand.
“The Brand That Gives Us Hope for the Future.� The trendy and Eco friendly clothing brand has become immensely popular with celebrities and young women who care about where their clothing comes from.There currently are 9 Reformation stores in California, New York, and Dallas.
Identity
Fast Fashion Without The Environmental Damage: Reformation is direct to consumer. All of their garments are made locally in the label’s two home cities: LA and NYC, using vintage garments and surplus materials to create limited edition collections that go straight into store.
Reformation puts sustainability at the core of everything they do. They invest in green building infrastructure to minimize waste and provides on the job training for growth. They track their sustainability like a profit report to see how they can grow and continue to make progress in helping the environment.
Mission
Reformation aims to create beautiful clothes that cause a fraction of the environmental impact by other fashion brands. By sourcing sustainable fabrics, Reformation constantly works to achieve a greener supply chain.
“We make killer clothes that don’t kill the environment”
Reformation’s design mission is to create easy, simple silhouettes that flatter and complement the female figure. Reformation manufactures all styles in a factory in downtown Los Angeles. Reformation designs sustainable clothes that their customers want to wear right now.
Values
Accessibility Pricing most of its clothing under $300, Reformation aims to offer accesible fashion. Reformation designs clothing that their customers want to wear right now. At Reformation, sketches can become clothing in about a month, in contrast with most fashion which is designed over a year before it is released.
Reformation provides its customers with the perfect fit in their clothing. Reformation carries a petite collection, a collection speccially designed to fit women with a C-DD cup, as well as a plus size collection.
The Perfect Fit Who is she?
Customer Profile
“Hollywood’s cool girl crowd” - Vogue
She’s a woman to be respected and feel respected in her clothing
“For a certain urban sophisticate who is tall — let’s say about 5 foot 6 to 5 foot 10 — this has become the affordable-ish uniform of 2014.” - NY Times
Everlane Exceptional Quality, Ethical Factories, and Radical Transparency.
Anthropologie Sourcing and crafting all products with care to ensure that any treasure you ďŹ nd is unique, just like you.
COMPETITORS Revolve A fashionable woman who is social media savvy and has plenty of occasions to get dressed up for. Her slightly paradoxical lifestyle includes eating healthy, and yoga intersecting with drinking cocktails.
Scope & Size
Reformation carries womens clothing, swimwear, and accessories. Reformation also features special collaborations and collections for different body types.
Reformation is trying to incorporate virtual tools in their brick and mortar stores. Reformation aims to maintain a cohesive brand identity through both online and physical stores.
Unique Store Experience
technologically experiential stores lighting control in fitting rooms
Size Range: Petite to Plus Sizes
Locations California: Melrose Vintage, Valencia, Platform, Melrose & Filmore
Collaborations: Patagonia, Net-A-Porter, Camille Rowe, Jeanne Damas
New York: LES, SoHo & Bond Texas: Dallas
Investors Karlie Kloss, 14W, Stripes Group, Andrew Rosen, Imaginary, Ventures, Miroslava Duma, Forerunner Ventures, Rihanna, Taylor Swift
thank you
Reformation
Competitive Markeplace Analysis Julia Riley, Claudia Aguilar, Sydney Jones, Nina Molina: FASM 245
Table of Contents Market Size Market Segment Trends Competitor Analysis Citations
Market Size Retail Value RSP: USD billion: Current 2003- 2022 RSP means Retail Sale Price: Is the maximum price which the excisable goods in packaged EUROMONITOR.COM
Reformation estimated revenue just over 100 million. (Buisness Insider) Reformation Market Size % in Womenswear in the USA
Womenswear in USA: % Y-O-Y Growth Measurment of the company’s financial performance
EUROMONITOR.COM
Market Segment Forecast Sales of Womenswear: Volume 2012-2017
Forecast Sales of Womenswear: Value 2017-2022
Sales Trends
Sustainable Technology
Uses the most eco-friendly technologies and practices available. Invests in green building to minimize waste, water and energy footprints.
Fabric Technology Uses Bluesign dyeing, which is safe for factory workers and the environment. Uses deadstock fabric, which was unused by the mill that manufactured it. Tencel fabric is widely used, which is similar to cotton, except cotton needs at least 5x’s more land to grow. Tencil comes from Eucalyptus trees which does not involve pesticides or insecticides when produced, unlike cotton.
Consumer Behavior Trends
Conscious Consumerism “65% of respondents claim to try to have a positive impact on the environment through everyday actions.� Consumers are considering sustainability when purchasing food, cleaning products, and in building their homes Considers social, environmental, ecological, and political impact before buying a product
Gender
Gender
Base
Base
926
926
in %
in %
female
female
515
515
56
56
male
male
411
411
44
44
926
926
in %
in %
18 to 19 years 18 to 19 years
28
28
3
3
20 to 29 years 20 to 29 years
175
175
19
19
30 to 39 years 30 to 39 years
181
181
20
20
Age GroupsAge Groups Base
Base
926 respondents broken down into different segments: gender, age groups, race/ethnicity
Sustainability Sustainable fashion products have grown 19.0% year-to-date (YTD) 2017, compared to last year
Volumes of sustainable fabrics such as Tencel and Lyocell have grown by 19.7% year-on-year (YOY), highlighting retailers’ efforts to make their assortments more sustainable. (reformation uses tencil)
“If 2016 was a year of opposing forces clashing, the push for sustainability was one common thread across the industry. Sustainability is becoming an important new driver of consumers’ purchasing decisions. In emerging markets, for example, more than 65 percent of consumers actively seek out sustainable fashion.” -The State of Fashion 2017 report from Mckinsey and Business of Fashion.
January 2017 international study by Unilever found that 33% of consumers actively seek out and purchase from brands that they know to be socially and environmentally friendly.
Cone Coomunications’ 2017 CSR report revealed that US consumers are now more likely to actively engage with a socially-consicous retailer through purchasing (80%) than they are simiply to LIKE a company (65%) or share retailer generated content socially (60%)
Millennials in particular are willing to pay a premium for products that come from brands with a commitment to sustainability, according to Nielson’s 2015 Global Corporate Sustainability report. This cohort is also set to overtake Boomers in terms of spending power, as the post-war generation’s wealth transfers to Gen X and Millennial children.
Time Magazine 2009: Almost 50% of Americans valued environmental protection over economic growth, more than 60% had purchased organic products within the previous year, and nearly 40% made purchases based on the social or political values of the producing company.
Vintage Aesthetic
Reformation’s dresses hone into the vintage aesthetic that has been incredibly popular recently.
Vintage Aesthetic Who What Wear has been reporting on this vintage aesthetic as a “Right Now” trend. The trend page features various sources on where to find vintage pieces or vintage inspired pieces. Who What Wear recommends Reformation to find “Vintage-Style Dresses” for bridesmaids.
Competitor Analysis
Anthropologie Strengths
Interactivity Site Memory Control in Site Promotion Accessibility in many countries Strong brand names
Weaknesses
Limited target audience, only offering merchandise to women. Limiting the growth in other markets like menswear and or children.
Anthropologie Pricing
Everlane
Everlane is a top competitor of Reformation. Everlane was founded in 2010, and is headquartered in New York, New York. Like Reformation, Everlane also competes in the Sustainable Apparel Retail field. Everlane generates $10M more revenue vs. Reformation.
Everlane Strengths & Weaknesses Strengths
High growth rate has attracted positive reaction from investors Offers radical transparecy for customers High value products Strong factory relationships
Weaknesses
Long waiting lists and quick sell-outs eliminate potential sales, due to growth exceeding available infrastructure. Low brand awareness Shallow product assortment in terms of design and color options
Everlane Pricing
Revolve Strengths: Strives to provide the most relevant
digital experience possible to engage customers and keep them coming back for more.
Weaknesses: Biggest challenges is to ensure that its digital experience still feels relevant, curated, and engaging
Revolve Pricing
thank you
Reformation
The 6 Month Buying Plan Julia Riley, Claudia Aguilar, Sydney Jones, Nina Molina: FASM 245
Table of Contents SWOT Analysis 6 Month Plan Assortment Plan Small & Big Stores Vision & Strategy !!!
SWOT Analysis
Strengths Available Niche Market Strong Unique Selling Point with Great Aesthetic and Design Supportive of a Sustainable and Eco-Friendly Movement Local and Intimate Business Atmosphere Brand Identity Customer Loyalty - Willing to Pay Full Price Online Store Presence Celebrity Following, Loyalty to Brand Local, Clean, Intimate Business Atmosphere Fast Fashion with an Eco-Conscious Business Model
Weaknesses Fashion in General is Within a Highly Competitive Marketing Enviornment Prices Can Be Expensive Due to Cost of Sustainable Fabric and Production Limited Stores and Items Specific Target Market
Opportunities Wide Variety of Collections and Stories - Organization Can Continue to Broaden Collections and Target Market Collaborating with a Non-Profit Organizatins with Similar Sense of CSR Enviorment Reach Consumers that want a 100% Sustainable Lifestyle Educating Consumers on Sustainability Trend Exploration Fashion Films to Display Movement in Garments
Threats Competing E-Commerce Companies Similar Products Seen in Cheaper Mass Produced Stores i.e. Forever 21, H&M, etc. Lack of Consumer Interest in Sustainability Resources Becoming Too Expensive Rise of Production Cost
6 Month Buying Plan
Planned Sales Spring/Summer 2018 $5,443,200 LY Sales : $4,860,000 Percent Increase: 12% Reduction: $816,480
6 Month Buying Plan
ales Distribution
tyle Distribution 20% 40% 40%
olor Distribution 20% 50% 30%
Assortment Plan
op Styles Retail: $178 Units: 556 8% $98,888
Retail: $98 Units: 1,009 8% $98,888
Retail: $198 Units: 375 6% $74,166
Retail: $218 Units: 397 7% $86,527
Retail: $198 Units: 499 8% $98,888
Retail: $248 Units: 349 7% $86,527
otal Assortment Plan
New Styles Key Characteristics Feminine Simplistic Yet Trendy Vintage Patterns Focus on Mini Dresses
New Styles
New Styles
New Styles
Small vs. Big Stores
Small Store
Small vs. Big Stores
Large Store
Vision Strategy
What are Our Goals for the Future? Focusing on our weaknesses by providing more design options for the consumer. Opening more stores in the future in more traffic areas such as Miami, FL. We are not 100% sustainable YET, but our goal is to become completely carbon neutral, and in the future even become carbon positive. By becoming carbon neutral or carbon positive, our sustainable reputation will only improve and attract many consumers in the U.S. and around the world to choose Reformation.
Potential Collab
Reformation x Skylar Body
A collaboration with a sustainable fragrance company will help build brand connection with Reformations ’ customers. Fragrance also brings in a lot of revenue for brands. Skylar body would be a good choice because they are a sustainable fragrance line and have similar values to reformation. This would also be beneficial for Skylar to gain a new customer.
Citations Robinson, Melia. “This Apparel Startup Fixed the Worst Part of Shopping for Clothes in Stores - and It Could Defy Retail’s Curse.” Business Insider, Business Insider, 18 Jan. 2018, www.businessinsider.com/how-reformation-clothing-stores-beat-online-shopping-2018-1 Holt, Emily. “Meet the Woman Behind Cool Ethical Label Reformation.” Vogue, Vogue, 1 Feb. 2017, www.vogue.com/article/reformation-eco-fashion-ethical-label. Koblin, John. “Reformation, an Eco Label the Cool Girls Pick.” The New York Times, The New York Times, 17 Dec. 2014, www.nytimes. com/2014/12/18/style/reformation-an-eco-label-the-cool-girls-pick.html. “Reformation.” Company Profile - Office Locations, Jobs, Key People, Competitors, Financial Metrics, News, Company Life - Company Profile on Craft.co, craft.co/reformation. Lieber, Chavie. “Reformation Founder Yael Aflalo on Sustainable Fashion and Starting Over.”Racked, Racked, 26 Nov. 2014, www. racked.com/2014/11/26/7567391/yael-aflalo-reformation. “Our Stuff.” Reformation, www.thereformation.com/pages/our-stuff. Robinson, Melia. “This Apparel Startup Fixed the Worst Part of Shopping for Clothes in Stores - and It Could Defy Retail’s Curse.” Business Insider, Business Insider, 18 Jan. 2018, www.businessinsider.com/how-reformation-clothing-stores-beat-online-shopping-2018-1.
Citations Ashoka. “3 Ways The Conscious Fashion Movement Is Raising Its Game With Millennials.” Forbes, Forbes Magazine, 1 Mar. 2016, www. forbes.com/sites/ashoka/2016/03/01/3-ways-the-conscious-fashion-movement-is-raising-its-game-with-millennials/2/#6e1c027f47f7. BoF Team, and McKinsey & Company. “Fashion in 2018 | 08. Sustainability Credibility.” The Business of Fashion, 2 Jan. 2018, www.businessoffashion.com/articles/intelligence/top-industry-trends-2018-8-sustainability-credibility. Cotton Incorporated. “Importance of Sustainability to Consumers in Relation to Clothing Purchase Worldwide in 2017, by Country.” Statista - The Statistics Portal, Statista, www.statista.com/statistics/814014/importance-of-sustainability-to-global-consumers-in-relation-to-clothing-purchase-by-country/, Accessed 19 Apr 2018 “Eco Fiber Market Analysis By Product (Organic, Regenerated, Recycled, Natural), By Application (Textiles, Industrial, Medical, Household & Furnishings), And Segment Forecasts, 2018 - 2025.” Eco Fiber Market Size, Share 2018-2025 | Global Industry Trend Report, www. grandviewresearch.com/industry-analysis/eco-fiber-market. “HOME › Press Releases › Eco Fibers Market Worth 74.65 Billion USD by 2020.” Market Research Firm, www.marketsandmarkets.com/ PressReleases/eco-fibers.asp. Keith Platt , Steven. “The Future of Retail: A Perspective on Emerging Technology and Store Formats.” National Retail Federation, Platt Retail Institute, 29 Apr. 2014, nrf.com/resources/retail-library/the-future-of-retail-perspective-emerging-technology-and-store-formats. MasdarVideos. “Masdar GenZ Sustainability Survey.” YouTube, YouTube, 17 Nov. 2016, www.youtube.com/watch?v=B8KCWJOcuvI&feature=youtu.be. Millman Courtesy, Matthew, and Emilia Petrarca. “The New Reformation Store Is a Real-Life Clueless Closet.” The Cut, 1 Dec. 2017, www. thecut.com/2017/12/new-reformation-bond-street-store.html. Pena, Amanda. “13 Ethical Clothing Brands Thatll Make You Want To Ditch Forever 21 For Good.” The Huffington Post, TheHuffingtonPost.com, 17 Oct. 2017, www.huffingtonpost.com/entry/ethical-clothing-brands-you-probably-didnt-know-about_us_59e61300e4b0a2324d1dfa71.
Citations ------- https://www.wgsn.com/content/board_viewer/#/76724/page/2 ReferenceUSA,www.referenceusa.com/UsBusiness/Detail/Tagged/4cc91aa5517843288ea40300db7bf8f9?recordId=425909384. ReportBuyer. “Apparel Markets in the World to 2018 - Market Size, Trends, and Forecasts.” PR Newswire: News Distribution, Targeting and Monitoring, 4 Nov. 2014, www.prnewswire.com/news-releases/apparel-markets-in-the-world-to-2018---market-size-trends-andforecasts-281428231.html. Sharma, Nivindya. “Fashion with a Conscience: Why Sustainable Fashion Is the next Retail Frontier.” Https://Www.wgsn.com/Blogs, WGSN, 2 June 2017, www.wgsn.com/blogs/fashion-with-conscience-why-sustainable-fashion-is-the-next-retail-frontier/. Statista. “How Important Is Sustainability/Eco-friendliness When You Choose Clothes for Yourself?.” Statista - The Statistics Portal, Statista, www.statista.com/forecasts/761153/importance-of-sustainability-to-us-consumers-when-choosing-clothes, Accessed 25 Apr 2018 ----------- https://cdn.businessoffashion.com/reports/The_State_of_Fashion_2018_v2.pdf “The 6 Dress Trends That Are Making Shoppers Giddy This Spring.” Who What Wear, Who What Wear, 27 Apr. 2018, www.whowhatwear.com/dress-trends-2018--5ae39e2d2ffcd. “Womenswear in the US.” Euromonitor International , COUNTRY REPORT, May 2018, www.portal.euromonitor.com/portal/analysis/ tab. “Why Do We Need a Fashion Revolution.” Fashion Revolution, www.fashionrevolution.org/about/why-do-we-need-a-fashion-revolution/. WGSN, www.wgsn.com/content/board_viewer/#/76724/page/2.
Citations “Women’s Clothes, Style & News, Shop for Dresses, Bags & More at ASOS.” ASOS, us.asos. com/women/. “Reformation.” About - Reformation, www.thereformation.com/. LARED21. “La Casa ‘Carbono Positivo’ Que Cuesta US$70 Al Año De Mantenimiento.” LARED21, LARED21, 21 Apr. 2018, www.lr21.com.uy/ecologia/1365826-core-9-casaecologica-bajo-mantenimiento. “Carbono Neutral”. Servicio, www.100carbonneutral.com/servicio.html. Newall, Sally. “12 Best Sustainable Fashion Brands for Women.” The Independent, Independent Digital News and Media, 4 Oct. 2017, www.independent.co.uk/extras/ indybest/fashion-beauty/womens-clothing/best-sustainable-fashion-brands-womenclothing-ethical-eco-friendly-affordable-london-luxury-a7982316.html.
Citations
“Sustainable Practices - Reformation.” About - Reformation, www.thereformation.com/pages/sustainable-practices. Fernandez, Chantal. “Reformation Raises $25 Million to Fuel Brick-and-Mortar Growth.” The Business of Fashion, 14 Dec. 2017, www.businessoffashion.com/articles/news-bites/reformation-raises-25-million-to-fuel-brick-and-mortar-growth. https://www.nacion.com/viva/farandula/mercedes-benz-fashion-week-san-jose-2017-recibira-declaratoria-de-carbono-positivo/SBZCMXD2I5FG5NNOITA7KX3MIQ/story/