CondĂŠ Nast College of Fashion & Design Project 3: Fashion Business and Marketing
Viktor&Rolf Little Ones.
Cynthia Bifani
My business idea is a children line for Viktor&Rolf called
Viktor&Rolf Little Ones. Viktor&Rolf have just dipped back into couture in August 2013 after 10 years of absence, therefore it would be a good time to expand their market sector while they are back in the spotlight by going into children’s clothing. What makes this product unique in the childenswear market would be the fun and slightly exaggerated designs that are already the staple of Viktor&Rolf. The core values of Viktor&Rolf Little Ones’ follow the brand’s core values of humour, fun, high quality, traditionalism with a twist and innovation, and this will still be apparent in the new line that will be introduced. Parents that understand and enjoy fashion want to pass that onto their children and Viktor&Rolf in particular would be a great brand to do so.
Childrenswear is a rapidly blooming sub-sector of fashion. Last year,
4,100,000 – an all time high – children were born in the United States. according to unofficial estimates,
67% of revenue collectively in 2013. Market share has risen from about 63% in 2008. It is considered one of the most significant markets in the The top four players in the industry generate
past 5 years. The maternity clothes industry, the single biggest business
annual revenue estimated to be up to $200,000,000. targeted towards prenatal mothers, makes an
Premier products in this industry will be particularly coveted since more parents are now having children before they enter their thirties, years in which they are more financially secure and actually have the capacity to pay higher prices for upmarket brands. Childrenswear is witnessing the interest of several high-profile designers on the sector. Designers from the likes of Dolce & Gabbana, Marc Jacobs and Stella McCartney address the growing requirements of the kid’s wear market. These designers have taken the childrenswear sector’s route mostly because of its resilience against the recession’s downward spiral, as opposed to the menswear and womenswear markets that have witnessed significant declines in sales of high-fashion clothing lines.
The global market for childreswear is estimated
$156.8 billion by the year 2015 and $173.6 billion by 2017. This projection is to reach
“driven by the frequent need to purchasing new clothes to address the requirements of growing children. Rising income levels, trend towards nuclear families, and parental desire to offer the best to their children is likely to foster market growth”[1]
[1] Global Children’s Wear Market to Reach US$156.8 Billion by 2015, According to a New Report by Global Industry Analysts, Inc., http://www.prweb.com/releases/childrens_wear/infant_toddler_kids_wear/prweb8061559.htm
Example in numbers: “Last year, Burberry sold $91 million in clothing for children and newborn, including diaper bags covered in Burberry’s beige check, to early teens, for an
of 23%
increase
over the previous year” .[2]
[2] Children’s wear market value to hit $173.9 billion by 2017. http://www.companiesandmarkets.com/News/Textiles-and-Clothing/Children-s-wear-market-value-to-hit-173-6-billion-by-2017/NI3785 Graph source: Burberry Full Annual Report 2012 - http://www.burberryplc.com/documents/full_annual_report/burberry_ar_2012.pdf
The typical family that would enjoy this would be cool and quirky and already design and/or fashion-oriented:
The Father:
The Mother: Alexandra, 33, studied Fashion Design at Central Saint Martins, and went on to get an MBA in Fashion. She comes from a highclass background and lived with her parents in South Kensington until she started renting her own apartment at 23. She has a good position at Net-à-Porter and earns a good living. She understands the value of a garment and enjoys the design process of interesting pieces in which the designers put their soul, pride and joy into.
Jonathan, 35, is a successful graphic designer in London. He was born in Liverpool and moved to London to study. He comes from a middleclass background, studied in Central Saint Martins by scoring a scholarship and worked very hard to succeed. He started at the bottom of the ladder, but quickly made his way up to be head creative of an advertising company. He respects interesting design especially when the fun of creation translates into the outfits.
Alexandra buys Viktor&Rolf pieces for herself and would love to see her 3 children wearing their aesthetics rather than the usual pieces found in typical childrenswear store.
Clara, 7, goes to
a great school in Chelsea. She likes to look like a princess, but oddly, doesn’t like pink. She plays dress up in her mother’s closet and always chooses outfits that are fun and a bit over the top.
Patrick, 3, is in pre-
school and is very aware of colours and shape. He already knows how to use an iPad and his sister Clara, enjoys his crayons and paint. He also loves to make new shapes out of play doe.
Elena,
11 months, stays with her grandparents in South Kensington when her parents are home. She might be too small to understand the meaning of her clothing or of any kind of design, but her mother loves dressing her up in adorable little outfits.
Childrenswear is witnessing the interest of several high-profile designers on the sector. Designers from the likes of Dolce & Gabbana, Marc Jacobs and Stella McCartney are focusing on creating miniature versions of adult designs to address the growing requirements of the kid’s wear market. These designers have taken the childrenswear sector’s route mostly because of its resilience against the recession’s downward spiral, as opposed to the menswear and womenswear markets that have witnessed significant declines in sales of high-fashion clothing lines. The pieces usually become instant best sellers, as these pieces are easily identifiable with the brand’s image. Which child doesn’t want to be wearing mommy and daddy’s clothes, shoes and accessories?
Less fuss, more chic.
The Competitors Little Marc Jacobs Marc Jacobs is known for the quirky, feminine look of his eponymous label. Jacobs, like Viktor&Rolf, likes to provoke his audience. He likes to bring out the originality of his design to the forefront and is definitely not scared of comedy in his work.
Pieces: caps, maillots, shirts, pants, skirts, dresses, onesies, jackets. Entry point: $40 Exit point: $249
Stella McCartney Kids Stella McCartney is mostly known for her belief in sustainable fashion. Her brand identity is based upon the cult of her personality and the homespun bohemia of her upbringing and lifestyle. Stella McCartney has a very feminine aesthetic.
Pieces: dresses, tutus, jewelled appliqué pants, shirts, pants, jackets, coats Entry point: £27 Exit point: £175
Dolce & Gabbana Child Dolce & Gabbana is the epitome of luxurious, authentic, but unconventional design. Their style expresses new forms of elegance, presenting itself as modern classicism, based on superior sartorial content and creativity. Merchandising is fundamental to D&G. Every single item under the brand’s name reflects the brand codes and the influence of the main collection, and childrenswear is in no way an exception.
Pieces: pants, headbands, t-shirts, swimsuits, dresses, leather jackets, coat, baptism dress, skirts Entry point: £65 Exit point: £1182
All these designers sell their childrenswear in their own stores, and in department stores like Saks Fifth Avenue, Selfridges, Bergdorf Goodman, Harrods, and online on Childrensalon and AlexandAlexa…
Marketing Strategy
The core product of this business plan is children’s wear, including shoes and accessories (pacifiers, diaper bags, hats, socks and tights, headpieces, bowties, crib mobile toys) The clothing will mostly be made of cotton and jersey that will be sourced from India. Silk that will be used for some appliquÊs will be sourced from China. Different colours of quality threads, buttons and clasps will also be ineeded. Pattern cutting and production workshops are a must to make
sure everything is made perfectly. All the clothing will be produced in factories in the UK and Holland as the production will be easier to maintain and manage, especially to make sure that the treatment of factory employees is up to ethical standards: there will be no childrenswear made by children. As for the crib mobile toys, the plastic base will be made in China in Shenzhen Ming Sen Xing Toy & Gift Co., Ltd., which is a manufacturing and trading company in Guangdong, China that specializes in their production.
To establish a price for the Viktor&Rolf Little Ones, there should be a comparison with the prices of its competitors to have an idea of what the market already offers. These products will be aimed at customers that able to afford a luxury product with premium pricing. There would be a focus on quality, and the ratio quality/price will meet the market demands.
High Price
Dolce & Gabbana Child Viktor&Rolf Little Ones Little Marc Jacobs Stella McCartney Kids
Mass Production
Quality & Individuality H&M
Primark
Low Price Price Dolce & Gabbana Child
Viktor&Rolf Little Ones Little Marc Jacobs Stella McCartney Kids
Exclusivity
Entry point: 30ÂŁ Exit Point: 350ÂŁ
Viktor&Rolf Little Ones
Viktor&Rolf store window. Colette, Paris
will be easily accessible to customers. It will follow the same distribution scheme as the Ready-to-Wear collections. The products will be available in all 55 Viktor&Rolf sales points (including department stores like Saks Fifth Avenue, Barney’s New York, Neiman Marcus, Harvey Nichols, Bloomingdale) where a small section for childrenswear would be added. It will also be available online on The Outnet, AlexandAlexa and Children Salon.
Upside down Viktor&Rolf store. Milan, Italy
Promotion
Inez Van Lamsweerde and Vinoodth Matalin
With no advertising campaigns, no self-standing boutiques, and no mass-produced clothes to sell, their early relationship with the public depended heavily on the generous amounts of press coverage they receive each season. There have been numerous collaborations with the likes of photography teams Inez Van Lamsweerde and Vinoodth Matalin, as well as Anoushka Bloomers and Niels Schumm whom helped further their vision, as well as one with H&M. When Viktor&Rolf held the first online-only fashion show in 2008, where everyone was invited, the ensuing buzz marketing surpassed the publicity many brands have generated in a lifetime. The media’s acknowledgment of Viktor&Rolf as a leading avant-garde haute couture label was instrumental to the commercial success of the Ready-toWear line: their first collection sold immediately to sixty stores worldwide during its launch in February 2000 and there should be no reason why the Viktor&Rolf Little Ones’ sales would be any different. Anoushka Bloomers and Niels Schumm
Consumers are already aware of Viktor&Rolf’s brand identity and their image. Introducing a childrenswear collection will only grow their customer base and attract potential customers that are in any way connected to children. The Internet will play a major role in the marketing of the business. Viktor&Rolf has always been very innovative when it comes to the Internet and in this case social media will play a major role in the equation. Individuals that are having children nowadays are all on social networking sites: Facebook, Twitter, Tumblr, Youture, Pinterest, Instagram‌ They are very visually oriented and very interested in what is going on with designers and celebrities. The first step would be to come up with a booming advertising campaign of the upcoming childrenswear line on all social media platforms to catch the eye of potential clients and Viktor&Rolf followers.
The website will also offer a new page for the line exclusively for childrenswear and will be seen with the Little Ones logo keeping very close to the original website design, but with a bit more colours and written in newspaper cut-outs alphabet and with a few illustrations.
Logo
Website
A press release and look book are sent to the press and to important customers, as well as an invitation to a pre-launch party that will be fun for the whole family. There will be a side of the venue that will offer children’s activities while their parents drink champagne and take a look at the clothing before they are released onto the market and are able to pre-order pieces they like before anyone else. After that, when the clothing is released onto the market, a private shopping experience will be available in selected shops in which 50 selected clients in each city, (that would have applied to a competition online beforehand with the winner being drawn out of a hat), will be able to buy their children clothing at a considerable discount. This will attract a lot of avid shoppers and stylish mothers that might not be able to afford clothing full price, and they will be interested for a bargain even if they don’t even know the brand.
Press Release
Alexandra Schulman Viktor&Rolf are proud to announce the launch of their childrenswear line.
Entering an entirely new sector of the fashion industry, Viktor&Rolf’s first childernswear collection is entirely inspired by past Ready-to-Wear and Couture collection the brand has produced. You can find a lookbook attached to this press release. The collection is ready to launch on the 15th of January at 7PM in the brand’s upside down shop in Milan, Italy. Viktor&Rolf hope you enjoy the collection and are looking forward to hear from you. Best regards, Karla Otto London 30 Sackville Street London W1S 3DY United Kingdom +442072879890 info.london@karlaotto.com
Private Shopping Experience
Cynthia Bifani After your application to the Little Ones competition, you have bee selected to attend a private shopping experience at Viktor&Rolf Little Ones. You have been offered a 50% discount on items you will purchase at the venue. The private shopping experience will be held on the 20th of January in selected stores. Please find your nearest store on viktor-rolf.com/shop-exp. See you there!
LookBook Inspiration
Ready-to-Wear Fall 2010
Ready-to-Wear Fall 2008
Pre-Fall 2012
The aesthetics of the collection will also be inspired by past ready-to-wear designs for their first childrenswear collection
Ready-to-Wear Spring 2011 Couture Autumn/Winter 1999
Ready-to-Wear Spring 2010
Ready-to-Wear Spring 2014
Ready-to-Wear Spring 2014
Ready-to-Wear Spring 2009
Appendices Bibliography • Anon, Children’s & Infants’ Clothing Stores Market Research Report, NAICS 44813, July 2013, http://www. ibisworld.com/industry/default.aspx?indid=1068 (accessed 1 December 2013) • M. Barnett, Marketing Week, Bringing up baby chains, 18 October 2012, http://www.marketingweek.co.uk/ trends/bringing-up-baby-chains/4004232.article (accessed 29 November 2013) • Anon., History Matters, “Stalking the Stork”: An expose of espionage in the baby clothes industry, http:// historymatters.gmu.edu/d/6269/ (accessed 1 December 2013) •
V. Steele, The Berg Companion to Fashion, Berg, 2010, p.709.
• Anon., Mintel Store, Childrenswear UK January 2011, http://store.mintel.com/childrenswear-uk-january-2011 (accessed 3 December 2013) • J. Neuvielle, Business of Fashion, The spotlight | Jungera, 15 July 2013, http://www.businessoffashion. com/2013/07/the-spotlight-jungera.html (accessed 3 December 2013) • Anon., Business of Fashion, Joseph’s Mimran’s fresh approach, 11 November 2012, http://www.businessoffashion.com/2012/11/joseph-mimrans-fresh-approach.html (accessed 3 December 2013) • Anon., PR web, Global Children’s Wear Market to Reach US$156.8 Billion by 2015, According to a New Report by Global Industry Analysts, Inc., http://www.prweb.com/releases/childrens_wear/infant_toddler_kids_wear/ prweb8061559.htm (accessed 3 December 2013) • Anon., Companies and Markets.com, Children’s wear market value to hit $173.6 Billion by 2017, http:// www.companiesandmarkets.com/News/Textiles-and-Clothing/Children-s-wear-market-value-to-hit-173-6-billionby-2017/NI3785 (accessed 3 December 2013) • Anon., Slideshare, Dolce & Gabbana, http://www.slideshare.net/gautam093/dolce-gabbana-28765472 (accessed 3 December 2013)
SWOT ANALYSIS
Strengths:
Strong customer base for Viktor&Rolf, interesting and unique designs, stamp of good quality.
Weaknesses:
not established in the childrenswear market, high price, lack of major audience (small target market).
Opportunities:
focus in innovation, possible branching into maternity wear and toys
Threats:
Globally focused, Crowded market (so many childrenswear shops established)