Rebecca Harris An exploration of the ethical and sustainable fashion market and consumer perceptions, to provide a foundation for a new ecommerce channel strategy that fills a gap in the market for on-trend ethical clothing and targets the 16-24 consumer group. To raise awareness of fashionable ethical clothing and alter traditional perceptions, providing a reputable platform for brands to reach new consumers, and to educate and inform the target market in-turn.
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CONTENTS 3 INTRODUCTION 4 PART 1: MARKET RESEARCH
Chapter 1: The Marketing Environment
19 22 26
Chapter 2: The Consumer Chapter 3: Strategy & Objectives
PART 2: THE BRAND IDENTITY
31
PART 3: MARKETING STRATEGY Chapter 4: Product
38 43 52
Chapter 5: Place Chapter 6: Promotion & Price Chapter 7: Forecasts
54
REFERENCES & BIBLIOGRAPHY
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APPENDIX
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INTRODUCTION
A major consumer attitude shift is occurring due to a combination of changes society is facing; the volatile global economy, the way social technology is shaping mentalities, and how global warming is leading to drastic weather changes and climate change. All of these factors are contributing to a new global outlook and sense of responsibility for the planet and its people. Thanks to social media, the millennial generation is developing awareness of these issues at lightning speed, and these are the people who will be the next world leaders and senior figures. This attitude shift has already affected consumer choice- particularly in the food market- and is now bleeding into other product markets, including clothing. There is a clear gap in the
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market for a channel that gives these pragmatic young consumers the retail outlet to feed their burgeoning desires for on-trend ethical and sustainable fashion, and this is where the concept STAMP comes in.
STAMP is a new online channel that blends engaging promotional content with ecommerce, to provide a platform for brands and a shop for young millennial consumers seeking out fashionable ethical and sustainable brands. STAMP values transparency, collaboration, and wants its customers to voice their demand for products that value humanity and protect the planet. STAMP is bold, outspoken and relentless in its quest for genuinely good clothing. STAMP is the mark and sound of the new revolution.
MARKETING ENVIRONMENT MACRO ANALYSIS
POLITICAL & LEGAL
Uncertainty is something plaguing the political sector, leading to society further losing faith in the government. As stated in Oxford Martin’s “Now for the long term” report (2013), “There remains a worrying lack of willpower and momentum in the private and public sector to change existing approaches on the scale required. Policy uncertainty, particularly in areas like wind energy or carbon pricing, is a key impediment to industry investment.” The UK government are under pressure to live up to the 2008 Climate Change Act- which pledges to cut the UK’s greenhouse gas emissions by 2050. The extreme flooding of February 2014 has not helped the public to restore any faith, as half of the government claimed it was not down to global warming, or remained undecided on the issue.
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ECONOMIC The world GDP is predicted to grow to $92 trillion by 2017 and over the next 40 years, billions more people will join the global middle class, leading to further increase in consumption and greater pressure to find other resources. In the UK, recovery from the recession has been slow-paced and there is a need to move away from cheap imports as a way of easy money, to try and build more sustainable growth. The rise of manufacturing prices in China combined with the increasing lack of faith in Bangladeshi factories is leading to more businesses choosing to source locally.
SOCIAL Society attitudes have started to shift towards a less capitalist-oriented and more pragmatic one, in backlash to the over-materialistic world we now live in, and the unequal disposal of the world’s economy. WGSN identified two key consumer groups: “Cloud surfers- who want to be in charge of their participation in social networks, collaborative experiences and collective actions, rather than being controlled by them… they want to identify where goods come from and how they are made” and “Adopters”, who are driven by versatility and want to take advantage of opportunities given to them, but also care about the impact they make on the world. In addition to this new desire for responsibility, society is moving towards a state of anti-hegemony; they are beginning to avoid large companies, due to negative perceptions of the brand and its operations. Lack of trust in large brands must be turned around through businesses adopting more transparent approaches; consumers want detailed information. A recent study revealed that “4 in 10 (42% shoppers) say they’ve given up on a purchase because they didn’t have enough information on the purchase… almost 50% said they had given up on an online purchase because they didn’t trust the seller.” (Rigby, C, 2014) (Appendix 1)
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SOCIAL
Many members of society are going one step further by collaborating, with an aim to create new laws that relate directly to the destruction of the planet. The recent “End Ecocide in Europe” proposal joined citizens and influencers- including Vivienne Westwood- together to try and set a new law that stops businesses from working in ways that contribute largely to damaging the planet. (Sublime, 2014) Overall, as (Saffo.P, 2012) states, “We are now in a period of volatility being the ‘new normal’: Uncertainty is the signature of this moment, and it hints at the shape of the new normal.” This ultimately leads to individuals in society re-evaluating their values and beliefs.
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TECHNOLOGICAL The frequent use of smartphones and tablet devices- making the internet accessible anywherehas led to an influx of information to consumers, which now needs to be increasingly filtered to be relevant to the individual. Due to the overwhelming amount of information and choice that now exists, there is a need for more personalised content, as individuals become more adamant in what they are actually interested in.
and Nike fuel band- and con- gets of relevant information as we sumers will expect the same tai- go along. Time is too short and prelored feel to their web browsing. cious a commodity to waste on waffle or irrelevance.” (Arnold, C 2009) Added to this, attention spans are becoming shorter: “We live in an age of bite size media, in a world where we seek out information in fast to digest forms. Time is one thing few of us have to spare. We no longer think in a linear way but within a chaotic ‘fuzzy’ world.
Thanks to the internet to start at the beginning and end at the end Smart technology is becoming a is now a very out-dated idea. We lot more personal- including prod- like to drop in and drop out, zigucts such as the Samsung watch zag about, gathering up those nug-
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Technology is adopting a more useful and relevant part in society, with an aim of “doing good”, rather than just adding to the digital noise. In terms of linking to the environment, low-carbon technologies are being developed and deployed around the world, becoming more biology- focussed and on solving the planet’s issues, and other systems are being produced to increase our knowledge of the environmental issues we face, which is discussed further in this analysis.
ENVIRONMENTAL The urgency of preventing climate change is greater than ever before, as the planet recently experienced a series of extreme weather conditions. In a recent article for the Guardian, (Stern. N 2014) identified not only the extreme storms and flooding that the UK experienced in February, but also the heat waves in Australia, and other unusual weather patterns worldwide, which relate back to global warming. He states, “This is a pattern of global change that it would be very unwise to ignore. The Intergovernmental Panel on Climate Change last September pointed to a changing pattern
of extreme weather since 1950, with more heat waves and downpours in many parts of the world, as the Earth has warmed by about 0.7C‌ What we have experienced so far is surely small relative to what could happen in the future. We should remember that the last time global temperature was 5C different from today, the Earth was gripped by an ice age.�
Technology is enabling awareness and knowledge of these issues to be raised and spread. World Forest Watch has been launched- a partnership between the World Resources Institute and Google Earth; it is a map updated in real-time that allows anyone to see where deforestation is currently happening, and how it has changed over the years.
Another pressing issue is the fast diminishment of natural resources, combined with the aforementioned increasing population. Shortages in cotton supply among other materials mean that businesses will soon have to seek alternative options.
This will no doubt raise consumer awareness and knowledge of deforestation, and gives an advantage to businesses in making sure their suppliers are not contributing to the problem.
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MICRO ANALYSIS CONSUMER AWARENESS OF ETHICAL FASHION Awareness of ethical and sustainable fashion has risen through recent media coverage of tragic events including the Rana Plaza factory collapse in April 2013. Since this event, there has been a greater interest in ethical and sustainable processes, particularly among the fashion industry. A new event, “Fashion Revolution Day” launched in 2014 on 24th April, a year after Rana Plaza, and a series of talks are being held at Somerset House in London for the public to attend on ethical fashion. Although there is awareness of the issues, it is evident that specific knowledge is still lacking among the majority of consumers, and only extends to poor labour conditions in third-world factories and recycling. This 9
suggestion is supported by a survey conducted (appendix 3), where the highest number of respondents (33%) felt they are “slightly” knowledgeable of ethical fashion, and the second highest (30%) were “not at all”. Despite this, information is beginning to be shared more across social media, which will no doubt increase knowledge of ethical and sustainable issues. This is most likely to rise among the 16-24 consumers as they spend so much time online, and are more easily exposed to websites such as Greenpeace via Twitter and Facebook. (Nielson. T 2013) reports, “ninety-three percent of Millennials in the United States use a mobile phone and 84% of them use social media.”
SURVEY RESULTS
“Which areas of sustainable & ethical fashion are most important to you?” Used sustainable materials No hazardous chemicals Traceability of product
72% say fair labour conditions
Made with reduced impact on environment
How fashionable do you currently consider the ethical and sustainable clothing market to be? 7%
7%
Not at all
Stylish
0% Super fashionable
48%
37%
A small amount
Somewhat
Made by workers under fair labour conditions Brand works with/ donates to charity 10
Extremely 3%
Fairly 17%
Only 23% had purchased a piece of ethical clothing in the past year
73% say labour conditions assosicated with the country are most important when considering the country of origin label
Somewhat 17%
87% Slightly 33%
23%
The highest amount are only slightly knowledgeable of ethical fashion
Not at all 30%
The no. who purchase clothing online
“How knowledgeable of ethical fashion do you consider yourself to be?”
A DEMAND FOR TRANSPARENCY Transparency is something in strong demand from consumers across many markets and has been achieved in the food industry, however fashion is one of the trickiest ones to tackle, as there are so many links in the supply chain.
or there are unexplained terms: “Many consumers are confused by the variety of claims, from vague assertions that a product is ‘sustainable’, ‘ethical’ or ‘eco-friendly’, to different organic standards, to claims about the origins of a product. And retailers are shy of the awkward questions such labels might incite: many The lack of transparency is also brands still fear being caught up in linking to the previously men- negative publicity.” (Marsh. V, 2013) tioned knowledge gap, which contributes to scepticism and perceptions of green-washing among This has recently been exempliconsumers. There is either not fied by brands including Adidas, enough information on where, Burberry and Gap, who, despite what and who made the clothing, signing up to Greenpeace’s detox
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commitment to eliminate hazardous chemicals from their supply chain by 2020, were discovered to be making kids’ clothing that still contained multiple toxic chemicals. (Mintel, 2010) summarises this new consumer demand; “Get ready for a ‘natural shakedown’. While all types of natural claims have grown in importance in all regions, and across all product categories, the term ‘natural’ is still ill-defined. Terms that are vague or not well understood will come under fire and we are due to see an intervention of regulatory bodies.”
UNDER THE RADAR:
THE NEW ETHICAL FASHION BOUTIQUES
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A small new wave of ethical fashion boutiques online has started to emerge, all adopting a similar kind of layout and a majority adopting fairly vague ethical values.
reached out far enough, and is still very difficult to come across.
There is evidently a consumer demand for this new fashionable version of ethical clothing, however it is currently not being
This suggests that not only does the consumer have difficulty finding ethical clothing, but they also still find the product uninspiring. Fashionable ethical clothing is growing in existence; there just aren’t enough mainstream channels to support it.
A customer interviewed on Radio 4’s talk, “Fast fashion: Affordable or exploitative?” complained, “It is really hard to be sure of the conditions… unless you seek out online specialists… with often limited choice.”
THE CHANGING NATURE OF ECOMMERCE The online retail channel is still fairly new and is predicted to grow exceptionally, with “Europe’s online retail sales projected to hit €191 billion ($247.1 billion) by 2017, according to Forrester, up from €128 billion ($165.6 billion) in 2013 – a 10.5% CAGR.” (Lomas. N, 2013) Brands that have succeeded notably so far include Net-a-porter, ASOS and Burberry, who have all torn down boundaries of what the e-commerce blueprint originally was. The future for e-commerce is now greatly exciting. “If the first phase of fashion e-commerce was to change the mind-set of a generation and bring online shopping to the mass market, today, the challenge is how to harness the web to rethink the shopping experience around the most effective and engaging ways to discover and buy, free from the constraints of the offline world…those who make it a priority to adopt net-native models, will end up with the big win.” (Morton. C, 2013)
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COMPETITION BRAND
Helpsy
Kaight
CONCEPT/ VALUES
Online US based channel, which sells trend-led cutting edge fashion that is ethical/ sustainable. Categories: Non disposable & well-made, Eco-conscious materials, Fair Trade, Handcrafted, Profits to Philanthropy, Recycled, Cruelty free, Local production, Upcycled, Vintage/ second-hand and Made in Small Quantities.
Online and offline stores in New York. Opened in 2006. Stocks brands that meet following criteria: Local production, Organic textiles, Reclaimed materials, Fair trade or Zero waste. Has a lot of different drop down options, web layout is not too easy to use though due to density of options.
Modavanti
Ethica
Reve en Vert
ASOS Green Room Online chan- Online chan- Online chan- A plaftorm nel only. nel only. Has nel, offering on the ASOS Offers a mix 5 separate very edited website that of sustainable ethical quality mix of sussells collecfashion- con- categories: tainable high tions with temporary Sustainable, fashion, that “an ethical or and luxury Hand-made, meets 1 of 4 eco-conscious brands- and Trade not criteria: Local, story to tell”. beauty. Uses aid, Made in Sustainable, a “ badge” the USA and Independent system to cate- Vegan. Fairand Ethical. gorise brands ly standard Has recently on ethical/ grid layout. re-designed sustainable Sells mix of the website to values. Uses fashionable a very editorigrid layout clothing, acal style using with bold cessories and grid layout, colours and jewellery. and very some infosophisticatgraphics. ed- black and white.
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Eco Luxe London Not-for-profit promotional platform for sustainable luxury fashion designers. Exhibits at London Fashion Week. Has online boutique, alongside show room. Not a very futuristic or engaging web layout, not very fashion-forward.
NueLuxe
Honest by
“High end products and services ingrained with eco & social missions”. Online channel which promotes a range of luxury sustainable ventures, including fashion, travel, beauty and transport. For clothing, you cannot buy directly from website, but get taken to the brand website.
An online channel, a label made up of different designers who all design under the Honest By tag, e.g. Honest by Bruno Pieters (the founder), Honest by Heaven Tanudiredja. Each designer has their own page featuring the products, a profile, interview and campaign imagery. Product descriptions provide complete transparency. Categories are: Vegan, Recycled, European, Organic and Skin friendly.
Ethica
Reve en Vert
Mid-premium Mid-premium Mid- contemporary Starts at $30 Clothing Clothing starts for a tee, starts around around $30 reaches $800 $40 for a top, and reaches for a dress. reaches $425 $845 for a dress. CORE PROD- T-shirts, Vintage, dress- “Top brands” UCTS dresses and es and shoes. include People jewellery. Tree, Amour Vert and Eden. TARGET Younger, fash- Fashionable Fashionable MARKET ion forward women but and stylish women, aged not trend-fol- women aged 16-30. lowers, aged 18-35. 20-40.
Premium – luxury Clothing starts at $85 for a top and reaches $1260 for a jacket. Tops, jackets and accessories.
Premium
CONTENT
A “Stories” section including Designer Files, City Guides, The Way We Wore and some essays.
BRAND
Helpsy
Kaight
Modavanti
MARKET LEVEL PRICE POINTS
Blog based around different areas of “good” including Good Design and Good Times.
Blog page which includes posts on designers and products on website, and some news stories.
Online look books often collaborating with bloggers, features section including interviews with editors and certain new brands, a separate blog page with contributions and weekly specials.
£100-£500
Reclaimed vintage, jewellery, Barbour jackets & ASOS Africa. Less Highly-fashASOS cushigh-fashion, ionable wom- tomer- female, but still stylish en aged 20-35. 18-30, trendwomen aged aware. 20-45.
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Dresses, accessories and jewellery.
ASOS Green Room Mass- premium £10-£500
A simple online look book section consisting of one feature presentation scroll. An editorial page consisting of a grid layout, with interviews, new trend reports and designer features.
Eco Luxe Lon- NueLuxe don Luxury Luxury
Honest by Premium-luxury Starts at $30 for a top, reaches £2,000 for dresses.
From £200£1,000
£100-£3,000+
Jackets and accessories.
High fashion, jewellery, beauty and travel.
Dresses, tops and Skirts.
Wealthy, 25+ individuals who enjoy a fine lifestyle.
Fashion-forward early adopters- men and women18-35.
Along with separate sections featuring the brands in grid layout, there is a “Connect” section, where the brand is building a forum community where members can share content and upload blog posts, and communicate.
Content evolves around each designer as mentioned, and there is also a news page, on everything from clothing to vegan food.
25-50 year old women interested in fashion, with money to spend. A “read more” Boutique, page which landing page gives a dewith a few difscription of ferent features The Green such as Eco Room and a Luxe event small glossary news. There is of ethical & also a separate sustainable blog which terms. The include posts “brands” on designers section unfeatured on derneath only the website features Peo- and events. ple Tree which mentions a S/S 11 product. There is also a Twitter page which includes news updates and ethical mentions.
High Low
Price
COMPETITORS MAP
Low
16Fashionability
High
COMPETITION
Through comparing these major competitors, it is evident that the potential for differentiation lies in content, layout and personalisation. None of the websites featured video content or strong, bright colours, and all followed the grid layout, or something more basic. A lot of the extra content featured on the websites are simple blogs, some of which are inconsistent with the overall web layout, or are based on a completely different website (Modavanti).
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Despite all of these etailers selling ethical and sustainable products, none of the companies offer a recycling service that could make their models more of a closed loop. The majority of competition targets a slightly older consumer aged 18-35, with a focus on high fashion and editorial style. Targeting a younger 16-24 generation, both male and female, with engaging video content, bright layouts and edgier, street-style trend-led clothing will cater to a clear gap in the market.
SWOT ANALYSIS STRENGTHS • It is an emerging undeveloped market with huge profit potential • There is not a clear market leader as of yet • Lots of new designers and younger brands are adopting ethical and sustainable processes • Awareness of ethical and sustainable fashion is growing with the rise of media coverage and events such as “Fashion Revolution Day” on 24th April 2014 • The Millennial consumer will become increasingly knowledgeable on this market as information content is widely shared on social media • Increasing demand for organic materials and shortages of man-made ones will eventually lessen the cost of brands using more sustainable and ethical materials
OPPORTUNITIES • Targeting the Millennial consumer via social media and an online channel • Potential to become a market leader and innovator for doing this • Leveraging the new developments of e-commerce to engage with consumers, introduce them to brands they may not have come across otherwise, and educate them on ethical and sustainable fashion in the process • In addition to this ecommerce channel, tailoring content to individual consumers to make experience incredibly personal and memorable • Collaborations with larger brands on exclusive capsule collections e.g. Top Man or higher-level designers such as Commes des Garcons, Sibling or Yohji Yamamoto
WEAKNESSES • It is still considered a niche market by the majority • In a recession, a lot of mass-mid market consumers are still sacrificing quality over cost • There are still no mainstream, famous brands that are known for being “cool” as well as ethical or sustainable • Many people who take an interest in purchasing ethical and sustainable fashion do not have the time to do extensive research to find a product or brand they actually find desirable • Due to lack of current demand, prices of organic materials are currently still higher than standard materials
THREATS • New entrants to market; as it is unpenetrated there will be new entrants • Already-established competitors creating a new category or sub-brand that targets younger consumer group • Mainstream mass-mid market brands creating a huge subbrand that is ethical and sustainable e.g. Top Shop, or ASOS expanding their “Green Room”
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THE CONSUMER STAMP’s target consumer is aged 16- rums, etc).” (Garst. K, 2013) 24 years old- the younger group of the Millennial generation- and is male or female. They are still studying, or are Millennial consumers share in the beginning stages of their careers. content regularly, and have become the the largest generation with a combined purchasing This consumer’s life revolves around power of $2.45m by 2015 (Hufftechnology; smart phones, tablets ington Post), therefore, they and computers; and a majority of are a very significant group to their time is spent on social media, target, as they are more likely sharing and viewing information. to be exposed to informative content regarding sustainability and ethical fashion. Due to this custom of having information readily available at all times, From a study conducted by De“Millennials consume bevec. K, Schewe. C, Madden. T brand and product infor- & Diamond. W (2013), results mation when they want showed that “Younger Millento. They would rather nials were less likely to engage find and discover things in behaviours that support sususing tools they feel com- tainability (such as recycling, fortable with (i.e.- smart conserving energy, and having phones, social media a willingness to spend more sites, reviews, blogs, fo- to purchase green products).”
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Although this research may be evident in the USA, it could be argued that young Millennials in the UK are naturally more likely to engage in behaviours that support sustainability and are aware of its importance, as they have grown up with designated bins for recycling and parents trying to save energy through electricity (with the rise in prices). Furthermore, Bedat, M & Darabi, S (2014) argue that Millennials have started to demand transparency and social responsibility in the food companies they consume from, and that they are now expecting the same from fashion, in relation to their “status currency”. “According to the Boston Consulting Group, millenni-
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als are leading indicators of status currency- “the status and values that consumers wish to project through their purchasing decisions and their brand affiliations.” Being young and perhaps part of smaller communities and style tribes in college and university, as well as their consistent use of the internet, these Millennials are influenced by street style as well as catwalk trends. They regularly shop online at ASOS and Topshop/ Topman, and are used to receiving a quick and efficient purchasing experience. Despite having some spare time, they are impatient with websites that take a long time to load, as their concentration spans have shortened.
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MILLENNIAL
MARKETING STRATEGY OBJECTIVES To acquire at least 7% share of 16-24 year old market in the UK by 2017. To launch and raise the To achieve market inprofile of STAMP, whilst novator and leader stain turn raising awareness tus among the Millennial of ethical and sustainable ethical and sustainable fashion and the brands fashion market. involved. 22
SEGMENTATION Although the target consumer is similar in terms of ethical values and style, their lifestyle and incomes vary. The 1624 consumers can be segmented further into 16-20, 21-24, and male or female. The majority of the 16-20 segment are studying in college or university. Some may have part-time jobs but their primary sources of income are student loans and their parents. A small percentage of this group may have gone into full-time work straight after finishing school or college, and this group are likely to be slightly more mature, and spend responsibly, yet have a higher disposable income. The 16-20s mix levels of the market, primarily mass-mid market pieces with items that last longer in terms of trend, such as denim, shoes and dresses, from the premium market. They are early adopters of trends and purchase for self-esteem; they want to project elements of individuality, but still within the trends that are “accepted” among their smaller community of peers. This consumer has more spare time to browse ecommerce websites, social media and blogs, and is
likely to share content which agrees with the style and attitude they wish to emulate to the world: “According to self-schema theory, consumers tend to talk to others about products when those products reflect their desired self-image, or the way they want others to see them Mangold and Faulds, 2009.” (Okazaki. S & Taylor. C, 2013). They are the “Selfie” generation and regularly post photos on Instagram, often of new purchases from brands.
The 21-24 consumers are beginning careers after finishing studies, or are in final years. Those in entry-level jobs have a newly increased income and more propensity to spend on clothing. They are well-educated and have developed an open-minded view to the world and society, and are very aware of ethical and sustainable issues. Their lifestyles are busy- juggling full-time work with social lives and leisure activities- so they are likely to check social media and emails at regular scheduled intervals, rather than more frequently and in random moments of boredom, like the younger segment. They seek efficiency, relevance and speed in their online shopping experience, as they have no
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time to waste on topics, brands or products that don’t relate to their tastes or lifestyle. They are also early adopters and majority, and have reached a higher point of self-actualisation than the younger group, where they are completely confident in their choices, and know what they like. The age segments can be further fragmented into male and female, mainly in terms of shopping habits. Men tend to shop for specific items to meet specific needs, and can be swayed easier by link-sells, as a means of making shopping easier and having options, e.g. a different colour of the same shirt or a belt to go with jeans. They are likely to buy a few items at once therefore, rather than impulse purchase. They are less likely to deliberate over items, as they have most likely planned ahead or have a functional reason for buying. The female consumer is different in that shopping is more of an emotional experience, and can take a lot of deciding between items and brands, before a final purchase is made. However, women are more likely to adopt a new trend, if the price is not too expensive.
TARGETING
Targeting will be very concentrated- focusing only on this 16-24 consumer with a heavy use of social media for promotion and eWom. The price architecture and product mix is set to effectively target each segment of the 16-24 consumers. The 16-20 segment will be targeted through lower-level on-trend basics such as tees and sweatshirts, with some casual dresses also fitting in to a lower price level. Shoes, denim and other designer dresses will slot into a higher mid-premium category, as this consumer overall is happier to spend slightly more on long-lasting products, or ones that can be used a lot.
Incorporating technology-compatible products into the mix such as mid-market priced tablet folios relates to the consumers’ digital-driven lifestyles. The overall online concept will be primed for sharing pages and content on social media, and will also be optimised for filtering products and brands easily based on a number of different categories. The consumers’ need for individuality and having their own voice will be played upon with a personalisation feature, where content and featured products displayed on the landing page will be completely tailored to the individual consumer after their first visit.
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POSITIONING
To fill the identified gap in the ethical and sustainable fashion market, STAMP will be positioned as a fun and bold brand, with a focus on high-impact visuals, films and editorial content, to gain a competitive edge over the key direct competitorsHelpsy and Modavanti. This position and targeting of the 16-24 consumers will be strongparticularly in the UK- as most of the online ethical fashion retailers have adopted a higher-end, premium-luxury position in the market.
relevant and interesting products and content that can’t be found through a competitor. Offering some products that are exclusive to STAMP, i.e. Paperthinks’ recycled leather iPad cases- but still at an accessible price point of £30- will further strengthen this innovator position and highlights STAMP’s ethical and sustainable credentials. The focus on personalisation and tailoring content will help to create another advantage over other etailers, and will place STAMP as a brand who values their consumers as individuals.
STAMP will be placed at a low mid-premium market level, to allow accessibility for the entire con- In terms of Corporate Social Resumer group, including the seg- sponsibility, offering a recycle ment with less disposable income. service that allows consumers to send back old iterms free-ofAs well as being bold, engag- charge, to donate back to brands ing and light-hearted, STAMP or charities, will give STAMP anwill be positioned as a market other differentiating factor of havinnovator; one which can in- ing a closed-loop business model. troduce this consumer group to
High Low
Price
COMPETITIVE POSITIONING
Low
Fashionability
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High
BRAND IDENTITY THE ETHICAL FASHION REVOLUTION
STAMP is a bold yet genuine brand. The name relates to its loud and fearless attitude, passion for transparency and protecting the planet, and the sound of the sustainable youth-revolution it wants to encourage. The brand values collaboration and the individuality of each consumer. STAMP wants to promote and sell ethical and sustainable brands but without preaching values, instead informing consumers in a fun, energetic and engaging way. The promotional platform concept with engaging content is intended to create a meaningful connection between the brand and consumer. The brands sold on STAMP are special, unique and help others, and deserve to have their ethical values and stories told. 26
BRAND VISION
To be a reputable platform among the 16-24 consumer group that showcases and sells on-trend, forward-thinking fashion; of which there is safety in the knowledge of where it has come from, who has made it and what went into the clothing.
•
• • •
BRAND MISSION
To sell brands and designers whose ethical values meet at least one of three foundational criteria: -The clothing has been made under fair-labour conditions -The clothing is made from sustainable materials -The clothing has been made using processes with minimal impact on the environment To promote complete transparency and inform the customer of every detail related to the product and brand To bring a personalised experience through content and selection, tailored to the individual’s tastes and values To encourage sharing of information and content, to help spread the word among the 16-24 consumer group that style, social responsibility and sustainability can mix 27
BRAND ONION
Offer fashionable ethical and/ or sustainable clothing
The brand onion theory has been used in development of the STAMP brand to highlight the key values, personality and how this will be conveyed to the target consumer.
Collaborate with customers
Personalise featured content
Fun Bold
Energetic On-trend ethical & sustainable products for male and female Millennials
Be as transparent as possible
Smart
Caring Focus on transparency and storytelling
Ethical sustainable clothing for Millennial trend innovators
Genuine and collaborative relationship with consumers
Present edited mix of brands and products to project fashion authority
Passionate
Pragmatic Accessible to all segments of 16-24 consumer market to inform and raise awareness
Donate % of profits to charity
Welcoming
Globally-concerned
Offer clear and efficient filtering system
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Tell brand stories through visuals, editorial and film
BRAND IDENTITY
(ADAPTED FROM AAKER’S BRAND IDENTITY MODEL) Aaker’s model was used in the branding process to develop and realise the STAMP brand in all facets, and the overall value it provides the consumer. The model has also helped to provide potential opportunities for STAMP to expand in the future.
BRAND AS PRODUCT
1. Product Scope: Edited mix of mens and womenswear from carefully-selected ethical and sustainable fashion brands. Accessories include footwear, bags and digital accessories. Scope to add to brand mix, and eventually expand to jewellery and cosmetics. 2. Product Attributes: Ethical or sustainable or both; provides value in terms of quality, style and a reasonable price; trend-driven but also innovative and has a slight edge. 3. Quality/ value: Long-lasting, high quality products within mid-low premium market. 4. Uses: Everyday wear- some occasion pieces. Products that are reliable, ethical and sustainable. Helping to protect the planet or not contribute to diminishing resources. 5. Users: 16-24 male and female early adopters/ majority who want on-trend, unique pieces that will be admired by peers and are also ethical/ sustainable. 6. Country of Origin: Will be diverse however as close to the UK as possible, mainly manufactured within Europe and Africa. All origin details of manufacture will be displayed clearly to maintain transparency.
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BRAND AS ORGANISATION 7. Organisational Attributes: Transparent, ethical and sustainable market innovator. 8. Local vs global: Distribution of product to be within UK initially with potential to expand to Europe, however the concept will not go further than Europe in terms of to the consumer. Manufacturing will keep to Europe and Africa to reduce carbon footprint.
BRAND AS PERSON
9. Personality: Bold, energetic, fun, friendly, caring and smart. 10. Brand-Consumer relationship: Collaborative, the brand is a slightly older friend who introduces the consumer to new brands and issues.
BRAND IDENTITY
(ADAPTED FROM AAKER’S BRAND IDENTITY MODEL) BRAND AS SYMBOL
VALUE PROPOSITION
11. Visual Imagery & Metaphors: Bright colours, geometrics, urban settings mixed with nature, models of consumers’ age looking natural and strong. 12. Brand Heritage: No heritage other than strong foundation of ethical and sustainable values with a view to the future not the past.
Functional Benefits: Making a good contribution to the well-being of the planet or people who have made the clothing, everyday clothing that will last a long time, providing warmth or coolness for seasons. Emotional Benefits: Attachment to pieces that have been made with love and the feeling of giving something back. Not feeling guilty about purchasing a cheap piece of “fast fashion” that has been made by workers under poor conditions or has used lots of non-renewable resources. Being safe in the knowledge that the clothing has been made with organic materials that have not been bleached or covered in toxic chemicals. An overall emotional benefit of feeling good and well.
BRAND-CUSTOMER RELATIONSHIP
The brand-customer relationship is to be based on trust, transparency and a shared passion for the well-being of people and protection of the planet. The brand and consumer are equals therefore a focus on collaboration and community will be made, through promotion and place, which will be ex-
Self-expressive Benefits: Fitting in and standing out simultaneously among peers as being trend-setting and innovative. Being able to tell peers that clothing is ethical or sustainable and that buying the item has had a positive impact on someone or somewhere else.
plained further in the Marketing Mix strategies.
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MARKETING MIX PRODUCT STRATEGY The initial product mix will consist of womenswear, menswear, footwear and accessories. The brands have been selected on quality, style and relevance to the target consumer.
The products (shown in the table overleaf) have been reviewed by members of the target consumer group to ensure that there will be a demand and the products will be profiitable.
The product mix will provide a foundation of fashionable basics that can build a wardrobe, as well as some investment pieces that are timeless and can be used for special occasions.
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BRAND WOMENSWEAR
STYLE
Outsider
Versatile investment dresses£60-£170 uses sustainable fabrics, work closely with 3 factories, and at least 50% of clothing is made in the UK. Laid-back, casual chic with lots £48 of prints. Trend-driven casual and party £30-£70 clothes, either made with organic cotton, in England or ethically in factories that comply with the Ethical Trading Initiative base code.
Dresses & Blouses
Casual and timeless jeans made £89-£200 to last for years. Fully ethical brand that is transparent and even has a repair service. Casual and hip denim, made from £80-£100 recycled materials and alternative and organic fabrics, Laid-back, modern urban basics, £30-£145 brand works closely with manufacturers and farmers to provide training and support.
Jeans and casual tees, jumpers and jackets. STAMP would just start with jeans.
Casual and street plimsolls and £30-£80 trainers, ethically made. Bright accessories and stationery £10-£80 made from recycled leather.
Trainers
Lilah Annie Greenabelle
PRICE RANGE
PRODUCTS
Blouses made from sari materials. Dresses, tops and bottoms.
MENSWEAR Nudie Jeans
Kuyichi (MENS AND WOMENS) COLLECTIVE (MENS AND WOMENS)
Denim- jeans and shirts.
Tees, sweatshirts and beanies.
FOOTWEAR & ACCESSORIES Veja (MENS AND WOMENS) Paperthinks
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STAMP would initially sell tablet folios and notebooks.
BRAND MIX
PAPERTHINKS
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MENS & WOMENS DENIM KUYICHI
NUDIE JEANS
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VEJA
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PLACE & DISTRIBUTION STRATEGY
STAMP will only distribute online within the UK initially. The idea is to keep distribution local rather than on a global scale to minimise the company’s carbon footprint and to communicate the message that greed should not overtake efforts to remain as sustainable as possible.
In 5 years, if STAMP is to grow and target new geographical markets, it would be done in a way that is localised to each market, so there would be a separate distribution centre for that region, with brands and products sold within that region only. E.g. USA would have their own localised version of the website, which would distribute to consumers in the US only, and would sell made-in-the-USA brands.
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The products will be displayed with the aim of telling the story and background of each brand and product. Individual brand pages will be created that will include bold imagery, potentially some short films, and editorial content; with the intention of encouraging an emotional attachment from the consumer to the brand, rather than rational. When considering the Rational and Emotional Line, “The more emotive and/ or impulsive, the quicker the decision is made. People just ‘feel’ they want it. The other correlation is that cheap items tend to sit at the R end, premium at the E end. So if you want to improve your profits, reduce purchasing decision time, keep your pitch at the E end.” (Arnold. C, 2009)
WEB LAYOUT: HOME PAGE STAMP
Home
About
Brands
Shop
Blog
Contact
THE ETHICAL FASHION REVOLUTION 39
STAMP
Home
BRAND PAGE EXAMPLES
About
Brands
Shop
Blog
Contact
COLLECTIVE
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STAMP
Home
BRAND PAGE EXAMPLES
About
Brands
Shop
Blog
Contact
NUDIE JEANS
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PRODUCT SHOP EXAMPLE
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PROMOTION STRATEGY
The overall promotion objective is to raise aware- Millennials are on Facebook and over 50% on Twitter. ness of STAMP in a natural way among the target consumer, and to drive traffic to the website. Facebook will contribute to building a community of STAMP customers, whilst building interest and confidence in the brand. Twitter is used greatly Lookbooks, press releases and an event invitation for among the ethical fashion market as well as the tarthe launch will be sent to key publications and blog- get consumer, and so will be important for increasgers, listed in the next few pages, to help give STAMP ing searchability, engaging directly with these mara level of fashion authority, be associated with top kets, and for driving traffic to the website. Instagram publications, and to create a buzz around the brand. is the most prominent channel to visually promote STAMP and the brands involved whilst raising awareness of the brand identity and generating interest.
PRESS PUBLICITY
SOCIAL MEDIA CAMPAIGN
As the majority of STAMP’s target market engage in social networking, it is an obvious choice for STAMP to engage in social media activity. It is vital that the consumer develops trust with the brand gradually, and so initially STAMP will begin with Facebook, Twitter and Instagram. According to (DeMaria, A, 2013) 95% of
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The initial campaign to raise awareness will be based around search terms and key words, and then for consumers to be encouraged to post about their purchases online using the hashtag #StampMe, from which they will be entered into a draw to win a product.
PROMOTION STRATEGY
CONTENT STRATEGY
Creative, relevant and engaging content has become key for brands hoping to build a meaningful and profitable relationship with their consumers. “With all the changes in search, content is now the center of the marketing universe. SEOs are now content marketers… Successful SEOs today blend art and science, bolstering their creative efforts with technology and analytics.” (Lee. J, 2014) The objective for STAMP’s content is to raise brand awareness and visibility through key words and search engine rankings.
STAMP’s blog will be the best page and view numbers, to help adjust futo make the most of search engine op- ture content to meet the needs and timisation through key words. These interests of the consumer better. key words will include STAMP products and desires and interests mentioned by the target market in focus groups and on social media.
EVENTS
STAMP events intend to bring together customers, encourConsidering that only one direct age loyalty and raise awarecompetitor- Ethica- showed in the ness through word of mouth. top rankings of shares in the past month on Buzzsumo for “ethical fashion”, effective content strateIn order to reinforce the collaborative gy has potential for creating a good approach, STAMP will host Swishcompetitive advantage for STAMP. ing events and recycling workshops to build a community of loyal consumers and help to create an ethical Content will be monitored regularly buzz around the brand. Consumers to analyse which words and prodwould tweet about the event and ucts are successful in terms of share contribute to its natural promotion.
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CONTENT MEASUREMENTS
OBJECTIVE Brand Awareness and Key word success
MEASUREMENTS Page views Rankings Social media shares Click throughs to sales Brand page views • • •
Customer acquisition
• •
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SOCIAL MEDIA CHANNELS
Stamp 100 likes
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40 people talking about this
PRESS STRATEGY PUBLICATIONS
Print publications (UK) Elle Vogue Company Dazed & Confused ID Grazia InStyle Cosmopolitan Pop Look Glamour Stylist TANK Hope St AnOther AnOther Man GQ Shortlist Ten Men Dapper Dan Evening Standard Style magazine (Telegraph) Stella Sublime
PRESS RELEASE FOR COLLECTION LAUNCH Bloggers & Online Publications Style Bubble Kate Loves Me Fashion Foie Gras Five Five Fabulous Lily Melrose Bip Ling Eco Fashion World Style Eyes Ethical Fashion Blog Fashion-editor
Introducing
A new online concept that features a perfect edit of on-trend ethical and sustainable fashion brands. STAMP values ethics and sustainability, but doesn’t feel we should have to sacrifice our style souls in the process of finding this. STAMP’s super-cool brand mix is presented and promoted through engaging short films, high-impact visuals and interesting editorial content. The initial collection has been carefully considered to result in an ideal foundational wardrobe that includes beautiful basics from the minimalist eco-heroes, COLLECTIVE; premium ethical denim from Nudie Jeans and Kuyichi; and some lust-worthy statement dresses from Outsider and Annie Greenabelle. Also available is an exclusive range of fearlessly bold iPad cases that could double up as cute envelope clutches, from recycled leather brand Paperthinks. STAMP strongly believes that ethical coolness should be available to any discerning customer, so prices start at an incredibly reasonable £30. The website has officially launched and brands are available to purchase, so please feel free to visit this exciting new online innovation.
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PRESS STRATEGY LAUNCH EVENT INVITATION FOR PRESS
New ethical fashion online channel STAMP welcomes you to the official launch of this exciting revolutionary concept Preview an exclusive showcase of brands featured on STAMP, including COLLECTIVE, Paperthinks and Outsider, as well as fantastic short films about brands such as Nudie Jeans. The STAMP event will also include the channel’s first swishing boutique for a mere £3 entry, to raise money for The Red Cross. So feel free to bring along a couple of unwanted pieces to swap for some real gems! With delicious vegan treats from Honestly Healthy and some organic hair goodies from Tara Smith, this is an excuse to indulge, minus the guilt. So come along, sip some champagne and enjoy how ethical and sustainable fashion is really meant to be. DATE
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LOOK BOOK PAGE EXAMPLES STAMP PRESENTS
OUTSIDER
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LOOK BOOK PAGE EXAMPLES STAMP PRESENTS
NUDIE JEANS
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PRICING STRATEGY OBJECTIVES • Offer range of prices from low-high within mid-premium market level to be accessible to all consumer segments • Encourage add-ons with high-quality yet reasonably priced accessories and gift products The price architecture is set based on both costs of bringing the product to market, which in turn leads it to also be marketing-orientated (Appendix 6). The consumer perceives the value of the product to be worth more than an average piece of mass-mid market clothing, as the materials are sustainable or ethical, cost more to source, and are better for the planet and consumer. Emotional value is also added through the storytelling of the brands and product background on the website. The prices are also intended to be competitive- they start at a lower point than ASOS Green Room, and at a similar price point as main US competitor Helpsy.
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RRP PRICE ARCHITECTURE Dresses & jackets £165-£250 Jeans, dresses and shoes £66-£160 Accessories, T-shirts & Jumpers £30-£65
FINANCIAL FORECAST YEAR 1 OBJECTIVES
Launch STAMP and focus on driving traffic to the website, promoting the brand and raising awareness. Reach target market through content and social media, as well as publicity from press. Forecast a financial loss for first year, due to start-up costs and expenditures.
YEAR 2 OBJECTIVES
Continue to acquire new customers and begin to extend focus on maintaining existing consumers and building brand loyalty. To have gained popularity and interest friom other brands, and continue to build demand to be featured on STAMP. Forecast to break-even financially.
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YEAR 3 OBJECTIVES
Forecast to make a profit. Invest in the growth of the business, consider expanding product portfolio, entering new markets, or allocating a higher percentage of sales on advertising and promotion to continue to drive sales and reach new customers.
IMPLEMENTATION & CONTROL
The following measures will be taken in order to monitor the success rates of STAMP, in-line with each separate strategic objective. As STAMP is a new business concept which mixes both ecommerce with promotion, the performance indicators will be both financial and behavioural. OBJECTIVE To launch and raise the profile of STAMP
To acquire at least 7% share of 16-24 year old market in the UK by 2017
To achieve market innovator and leader status among the Millennial ethical and sustainable fashion market
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MEASUREMENTS • No. of visits to website • Press coverage • No. of followers on social media/ mail out subscribers • Event attendees and generated publicity • No. of mentions online • No. of referrals to website • No. of new customers • No. of sales • Quarterly figures- revenue • Spend per customer • Transaction volume per customer • Consumer engagement rate and level of engagement with consumer (e.g. commitment, engagement or emotional bonding) • No. of mentions and shares across social media • No. of naturally-generated press and online coverage e.g. bloggers, magazines • Interest from outside brands in joining STAMP • Operating costs (these should be slightly reduced as customer and company become more familiar with one another)
REFERENCES & BIBLIOGRAPHY REFERENCES
Oxford Martin Commission (2013) Now For The Long Term. Oxford. Oxford Martin School, University of Oxford. WGSN (2014) UK. Available from: http://www.wgsn.com/content/report/Think_Tank/Consumer_Forecast/Spring_Summer_2015/s_s_15_consumer_forecast.html [Accessed: 21/02/2014] Rigby, C (2014) Internet Retailing. UK. Available from: http://internetretailing.net/2014/02/four-in-10-abandon-purchase-for-lack-of-information-study/comment-page-1/ [Accessed: 01/03/2014] Sumi, J (2014) Sublime. UK. Available from: http://sublimemagazine.com/environment/new-eu-law-penalties-for-eco-crimes [Accessed: 28/02/2014] Saffo, P (2012) Foreign Policy. USA. Available from: http://www.foreignpolicy.com/articles/2012/01/03/3_get_better_data [Accessed: 17/02/2014] Arnold, C (2009) Ethical Marketing and The New Consumer. UK. Wiley. Stern, N (2014) The Guardian. UK. Available from: http://www.theguardian.com/environment/2014/feb/13/storms-floods-climate-change-upon-us-lord-stern [Acessed: 18/02/2014] Marsh, V (2013) Forum for the Future. UK. Available from: http://www.forumforthefuture.org/greenfutures/articles/brand-awareness-companies-taking-lead-ethical-fashion [Accessed: 18/02/2014] Mintel (2010) USA. Available from: http://www.mintel.com/press-centre/mintel-corporate/mintel-reveals-consumer-packaged-goods-trends-for-2011 [Accessed: 18/02/2014] Radio 4 (2014) You and Yours: Fast Fashion – Affordable or Exploitative? Available from: http://www.bbc.co.uk/programmes/b03w0gwd/broadcasts [Broadcast & Listened: 25/02/2014] Lomas, N (2013) Tech Crunch. USA. Available from: http://techcrunch.com/2013/03/13/forrester-2012-2017-ecommerce-forecast/ [Accessed: 28/02/2014] Morton, C (2013) Business of Fashion. Available from: http://www.businessoffashion.com/2013/06/op-ed-going-net-native.html [Accessed: 31/01/2014] Garst, K (2013) Huffington Post. USA. Available from: http://www.huffingtonpost.com/kim-garst/marketing-to-millennials_b_3951404.html [Accessed: 28/02/2014] Debevec. K, Schewe. C, Madden. T & Diamond. W (2013) Are today’s Millennials splintering into a new generational cohort? Maybe! Journal of Consumer Behaviour, Vol. 12 (1) p20-31 Bedat, M & Derabi, S (2014) Business of Fashion. UK. Available from: http://www.businessoffashion.com/2014/04/op-ed-watch-millennials.html [Accessed: 15/04/2014] Okazaki, S & Taylor, C (2013) Social Media and International Advertising: theoretical challenges and future directions. International Marketing Review, Vol 30 (1) p56-71 DeMaria, A (2013) Here Come The Millennials. Journal of the American College of Cardiology, Vol 61 (15) p1654-1656 Lee, J (2014) Search Engine Watch. New York. Available from: http://searchenginewatch.com/article/2339322/Connecting-Content-to-ROI-Is-Critical-in-2014Say-78-of-Search-Marketers-Survey [Accessed: 16/04/2014]
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REFERENCES & BIBLIOGRAPHY RESOURCES BOOKS
Blanchard, T (2007) Green Is The New Black: how to change the world with style. UK. Hodder & Stoughton. Siegle, S (2011) To die for: Is fashion wearing out the world? UK. Fourth Estate. Brown, S (2010) Eco Fashion. UK. Laurence King. Black, S (2008) Eco-chic: The Fashion Paradox. UK. Black Dog. Ricchetti, M(2012) The Beautiful and the Good: A View from Italy on Sustainable Fashion. Italy. Marsilio. Thompson, R (2013) Sustainable materials, processes and production. UK. Thames & Hudson. Belz, F (2012) Sustainability Marketing: A global perspective. UK. John Wiley & Sons. Brand, J (2013) A Fashion Odyssey: Progress in Fashion and Sustainability. Artez Press. Porritt, J (2008) The Green Marketing Manifesto. UK. John Wiley & Sons. Arnold, C (2009) Ethical Marketing and the New Consumer: Marketing in the New Ethical Economy. UK. John Wiley & Sons. Lester, D (2012) How They Started Digital. UK. Crimson. Hameide, K (2011) Fashion Branding Unraveled. USA. Fairchild Books. Posner, H (2011) Marketing Fashion. UK. Laurence King.
JOURNAL ARTICLES
WEBSITES
Cervellon, M & Wenerfelt, A (2012) Knowledge sharing among green fashion communities online: Lessons for the sustainable supply chain, Journal of Fashion Marketing and Management, Vol 16 (2) 176-192 Hoek, J; Roling, N & Holdsworth, D (2013) Ethical Claims and Labelling: An analysis of consumers’ beliefs and choice behaviours, Journal of Marketing Management, Vol 29 (7) 772-792 Fulton, K & Lee, S (2013) Assessing sustainable initiatives of apparel retailers on the internet, Journal of Fashion Marketing and Management, Vol 17 (3) 353-366 Okazaki, S & Taylor, C (2013) Social media and international advertising: theoretical challenges and future directions, International Marketing Review, Vol 30 (1) p56-71 Tanyel, F; Stuart, E & Griffin, J (2013) Have Millennials embraced digital advertising as they have embraced digital media? Journal of Promotion Management, Vol 19 (5) p652-673 Rindel, A; Strandvik, T & Wilen, K (2013) Ethical Consumers’ Brand Avoidance, Journal of Product and Brand Management, Vol 22 (7) 484-490
Business of Fashion Ethical Fashion Forum E-couterre Mintel WGSN Style Sight Ethical Consumer Magazine Greenpeace.org.uk The Guardian Forbes Eco Salon The Fashion Spot Pando Forum for the Future Sublime Magazine TED Talks
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APPENDIX 1
LEE ET AL’S FOUR TYPES OF BRAND AVOIDANCE (Taken from Rindell, A; Strandvik, T & Wilen, K (2013) Ethical Consumers’ Brand Avoidance, Journal of Product and Brand Management, Vol 22 (7) 484-490 Brand avoidance is defined by Lee et al. (2009a, p. 170) as “the incidents in which consumers deliberately choose to reject a brand”. Specific brand avoidance has been classified based on whether it is due to the consumer’s societal concerns or personal concerns (Iyer and Muncy, 2009). People involved in social movements, such as market activists, are focused on societal concerns. Their consumer activities may take the form of boycotting certain brands that they consider to be causing specific societal problems. Hogg et al. (2009) take a holistic view and propose that rejecting a specific brand may be mediated by the marketing environment, the social environment or the consumer’s individual environment. These environments serve as sources of information for the consumer. Lee et al. (2009a, b) propose four types of brand avoidance: Experiential avoidance - Undelivered brand promise Identity avoidance - Symbolically unappealing promises Moral brand avoidance - Socially detrimental promises Deficit-value avoidance - Functionally inadequate promises
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APPENDIX 2 PORTER’S 5 FORCES
THREAT OF NEW ENTRANTS - THREAT OF SUBSTITUTE PRODUCTS OR SERVICES - POWER OF BUYERS - BARGAINING POWER OF SUPPLIERS - RIVALRY AMONG
B A R G A I N I N G EXISTING COMPETITORS
The main potential threats in the industry to STAMP would currently be the threat of new entrants and rivalry among existing competitors. As the market for this new-look ethical and sustainable fashion is fairly undeveloped and unpenetrated, there are gaps for new entrants, particularly as online start-up costs are considerably lower than retail, and there are low barriers to entry. However, this also means that rivalry among existing competitors will increase as they attempt to gain market share quickly. Existing competitors’ buyers will have greater bargaining power as the brands gain popularity and lengthen relationships with their suppliers, and so may be able to reduce cost prices to increase profits, or even gain exclusivity from suppliers. Baring this in mind, this rivalry will also give further power to suppliers, as suppliers of specific ethical and sustainable products are less common than general mass-market fashion suppliers. Therefore, it makes sense for STAMP to try and gain some exclusivity on perhaps specific products of brands it sells, in order to have a competitive edge over any new entrants that may emerge.
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APPENDIX 3 ETHICAL FASHION SURVEY RESULTS (SURVEY CONDUCTED ON SURVEYMONKEY.COM)
Which category below includes your age? Answer Choices– Responses– 17 or younger 0% 0 18-20 10% 3 21-29 83.33% 25 30-39 3.33% 1 40-49 0% 0 50-59 3.33% 1 60 or older 0% 0 Total 30 Do you purchase clothing online? Answer Choices– Responses– Yes 86.67% 26
No 13.33% 4 Total30 Have you purchased a piece of ethical/ sustainable clothing in the past year? If so which brand? Answer Choices– Responses– Yes 23.33% 7 No 76.67% 23 Total 30 Comments(6) If you answered yes, was this piece... (Select as many that apply) Made under fair working conditions 31.25% 5 Made of natural/ organic materials 37.50%
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6 Made using non-hazardous/ no chemicals 18.75% 3 Manufactured locally 18.75% 3 Made under other production methods minimising effect on environment? e.g. waste reduction 6.25% 1 Not applicable 50% 8 Responses Other (please specify) 18.75% 3 How knowledgeable of ethical & sustainable fashion do you consider yourself to be?
APPENDIX 3 ETHICAL FASHION SURVEY RESULTS Answer Choices– Responses– Not at all 30% 9 Slightly 33.33% 10 Somewhat 16.67% 5 Fairly, but could know more 16.67% 5 Extremely knowledgeable 3.33% 1 Total 30 When considering different areas of sustainable and ethical fashion, which are most important to you? (You may select up to 2 options) Answer Choices– Responses– Made using sustainable materials e.g. organic, recycled 34.48% 10 Made without hazardous chemicals, including in dyes 10.34% 3 Traceability of product 10.34% 3
Made with reduced impact on environment e.g. water/ waste reduction, pollution 51.72% 15 Made by those who work under fair labour conditions 72.41% 21 Brands work with/ donate some profits to charity 31.03% 9 Responses Other (please specify) 3.45% 1 Total Respondents: 29 What is most significant to you when considering the “country of origin” label? Answer Choices– Responses– How far the product has travelled 10% 3 Labour conditions associated with the country 73.33% 22 Quality of production and fabric associ-
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ated with country 16.67% 5 Responses Other (please specify) 0% 0 Total 30 How fashionable do you currently consider the ethical clothing market? Answer Choices– Responses– Not at all 7.41% 2 A small amount 48.15% 13 Somewhat 37.04% 10 Stylish 7.41% 2 Super-fashionable 0% 0 Total 27
APPENDIX 4
CONSUMER SEGMENTATION TABLE SEGMENTATION VARIABLE Demographic Gender Age Generation Life stage
CONSUMER A
CONSUMER B
Male/ female 16-20 Early Millennials Studying/ starting full-time work, single or having casual relationships.
Occupation
Student or starting careers in retail, media, fashion or digital.
Education
Starting college or university.
Income
Students who may have loans/ part-time jobs, but income is mainly provided by parents. A-C
Male/ female 21-24 Early-mid Millennials Final stages of studies/ entry-level jobs, staring new lives and in first serious relationships. In entry-level/ grad jobs in big corporate companies, in fashion, marketing, digital or media. Has a degree or A-levels, or is nearly finshing degree study. May still be studying with part-time job or has entered full-time work and has higher propensity to spend on clothing. A-C
Social Grade Classification Geographic Urban/ suburban/ rural Housing Type Size of city/ town Behavioural Lifestyle
Suburban or urban area Still living with parents or renting student accommodation. Fair-sized city or town.
Mainly urban area Renting with friends or partner.
Quite a busy lifestyle with college and socialising, however has a lot of spare time.
Busy lifestyle juggling careers, social life, fitness and relationships.
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Larger city.
APPENDIX 4
CONSUMER SEGMENTATION TABLE Social Aspirations
Self-image
Purchasing motives & behaviour
Interests & Hobbies
Attitudes & Opinions
To do well in studies, achieve a good job and have more money to spend on clothing, socialising and holidays.
To be successful in their careers, move into a nice house and start looking towards the future, be it family, marriage or career development. Wants to be seen as fashion-forward and on- Sees themself as working professionals with trend, an individual but still one who fits in balanced lifestyles and wants to project that with group of friends and peers. in their clothing, still remaining up-to-date with trends and inspirational to others in the way they mix pieces together. Buys new pieces to impress others in social Purchases for self-actualisation rather than esteem- they are in a stage where they are circles, for self-esteem and to remain ontrend. Will mix levels of the market and buy confident in their stylistic choices and aren’t modern minimalist basics to mix with more afraid to take the occasional risk. Are becomstatement items. ing more conscious of where the clothing has been made and more so the quality of what they are buying. Will be purchasing more investment pieces along with high street and mid market items that can be mixed. Enjoys socialising, going out, social netSocialising, social networking, blogging, working and blogging. going to events, travelling and keeping up fitness either by gym or other exercise. May have experienced some austeriy due to Grew up in a time when there wasn’t austhe economic crash in 2007, and may have teriy and are used to having things they seen parents struggle occasionally. Are used want. Have seen parents work hard for monto having material things but see more value ey and still appreciate those values, and are in activities and going out to events etc. now starting to value money more now they are earning themselves. 61
APPENDIX 4
CONSUMER SEGMENTATION TABLE Usage & Benefits Benefits sought
Usage rates
Volume of purchases
Price sensitivity
Wants clothing that will draw attention and admiration from peers for being on-trend and fashion-forward, as well as being versatile and easily mixed with other outfits.
Wants clothing that is functional as well as on-trend, being able to be worn for work and then for the evening. New benefits are now ethical and sustainable benefits- the benefit for the protection of the planet or the ethical qualities. Use pieces regularly as they have less Use quite regularly but will most likely clothing and money to spend. switch pieces more often than the younger group. Purchases 1 or 2 pieces a month depend- Purchases regularly, may buy a few pieces ing on financial position at the time. Buys in one go once a month. Buys mostly from from high street level and occasionally high street to mid-market, but may inmid- premium market. dulge occasionally on a luxury purchase. Very sensitive to price- doesn’t have a lot Is now less sensitive to price, especially if of money. the quality is good and benefits are there. Has more propensity to spend so is less likely to see price as a determinant factor in the purchase.
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APPENDIX 5 CLOSED LOOP MODEL Consumer
PRODUCT Recycled & re-processed
Collection/ returned to STAMP
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APPENDIX 6
SHAPIRO & JACKSON’S 3 METHODS OF SETTING PRICES 1. Setting prices on basis of costs: the more a product costs to bring to market, the higher the price. This can be done by Full Cost Pricing (all costs taken into account) and Direct Cost Pricing (only direct costs to do with output are considered). 2. Customer-orientated pricing: either Going-rate pricing or Competitive Bidding. Going rate: when customers take the going rate for an undifferentiated product, not wanting to spend more than they feel necessary. Competitive bidding: suppliers bid for a price they feel appropriate, often based on past bids. Accurate date systems are necessary to avoid unrealistic assumptions. 3. Marketing-orientated pricing: price is set based on perceived consumer value of brand and product, and the extent of differential advantage brand has over competitors. The higher-value a brand is deemed, the higher the price can be set.
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