Product Development FInal

Page 1

Defining Parisian Luxury Alli Drinkwater David Gale Linda La Kaleigh Ryan Jessica Willard


The Story Behind the Brand


Mission, Vision, and Values Porter-Tout creates quality luxury handbags that express a feminine, elegant, and romantic spirit that is quintessentially Parisian.

~  To inspire creativity and passion for product ~  To always strive for excellence ~  To offer the highest quality product ~  To act ethically in every business transaction


Target Market


Target Market Income ~  25-45

2.00% 10.00%

~  $100,000 - $300,000 ~  Bachelor’s Degree or higher ~  Motivated by: ~  Self-expression ~  Achievement ~  Ideals

$70K $100K

25.00% 28.00%

<$70K

35.00%

$100K$200K $200K$300K $300K+


San Francisco, 94115

Store Locations New York, 10001

Chicago, 60610


Achiever Maggie Harris, 33 ~  New York (Midtown) ~  Zip Code: 10001 ~  Profession: Marketing Analyst ~  Income: $120,000


Innovator Hilary Embry, 37 ~  San Francisco (Pacific Heights) ~  Zip Code: 94115 ~  Profession: Editor at Wired Magazine ~  Income: $150,000


Industry


Luxury Market ~  U.S. handbag market about 30-50% all luxury and domestic handbag sales ~  In 2012, handbag sales were about $10.8 billion in the U.S. alone ~  Sales are up 21% from 2011


Retail Trends

~  Sales of handbags to women under 34 and under increased ~  Sales of handbags to older women slowed ~  61% of handbag purchases were not impulse buys ~  75% of handbag purchases were selfpurchases

~  Online sales represent 18% of total sales


Global State of the Industry ~  Global handbag sales estimated to be $94 billion in 2012 ~  Europe is revered for luxury products ~  Increased sourcing from China ~  Developed countries shift focus to design and wholesaling.


Competitors


Price Points ~  Average retail price is $2,000 - $6,000 ~  Retail prices differ: ~  Brand ~  Fabrication ~  Type ~  Size ~  Porter-Tout retails for $750 - $3,000 ~  Porter-Tout wholesales between $330 - $990 and $500 - $1500


Fabrication and Craftsmanship ~  High quality ~  Authentic ~  Durable ~  Aesthetically pleasing ~  Genuine animal skins ~  Quality closures


Buying Behavior


Sales Trends ~  Recession

Growth of Sales

~  Demand expected to grow through 2017

17% Dior

~  Focus on the Asian market

14.9% 2011 to 2012 2010 to 2011 18.3% Hermés 15%

0%

10%

20%

~  Luxury handbag industry predicted to continue growth ~  IBISWorld says the global handbag industry will grow 3.1% to $100 billion by the end of 2013


Technological Trends ~  Mobile Commerce ~  M-Commerce sales to reach $31 million by 2015 ~  Physical & Virtual Shopping ~  QR codes ~  Virtual changing rooms


Silhouettes


Materials ~  ~  ~  ~  ~  ~  ~  ~

Leather Calf-hair Suede Crocodile Skin Snake Skin Ostrich Fur Silk and Satin

~  ~  ~  ~  ~  ~

Powdery effects Laser cuts Pleats/folds Aged/weathered Low shine Water-resistant


Components ~  Turn lock closures ~  Metal Frames ~  Zipper pulls ~  Rosy colored metals


Product Development


Inspiration Board



Design & Concept Board



Sourcing


Manufacturing ~  One of the few to carry old Florentine hand-crafted leather goods directly from its factory. ~  In 1980s developed private label merchandise for designers such as Dunhill, and Fratelli Rossetti


Cost Sheet

Date Created: 5/7/13

Style #: 3587

Season: S/S 2014

Style Name: Mathilde Clutch Description: Solid full grain calfskin leather fold-over clutch with cotton twill lining and calfskin leather tassle zipper pull.

Materials Full Grain Calfskin Leather Cotton Twill Lining Total Materials Cost

Components Zipper Tassle Thread Total Components Cost

Packaging

Colorway: Seafoam Gray Chestnut

$ per foot/yard 14.00 9.00

$ per unit

Packing

Total 2.525 1.01

Quantity

11.99 7.99 1.65

$ per unit

Quantity

$ per unit 0.06 0.002 0.06

35.35 9.09 44.44

Total 1 1 0.10

0.40 0.75 0.05 1.34 4.26 0.05 0.04 3.17 1.50

Designer Label Care Card Bar Code Tag Dust Bag Embossed Box Tissue Paper Poly Bags Shopping Bag Hang Tag Total Packaging Costs

Cartons Tape Labels Total Packing Costs

Yield

11.99 7.99 0.17 20.15

Total 1 1 1 1 1 4 1 1 1

Quantity

0.40 0.75 0.05 1.34 4.26 0.20 0.04 3.17 1.50 11.71

Total 1 1 1

0.06 0.002 0.06 0.12

Labor Patternmaking Marking Cutting Sewing Admin Total Labor Costs

Other Freight Duty Broker Insurance Total Other Costs

Grand Total:

Minutes

Cost per minute

60

0.35

$ per unit

Total 0.21 0.21 2.10 21.00 2.10 25.62

Total 0.42 9.31 0.02 1.00

0.42 9.31 0.02 1.00 10.75 112.79


Sales Plan - Retail Style #

Name

8459

Aurelie Minaudiere

3587 6653 9082

Mathilde Clutch Elodie Satchel Sophie Bowler Total

Jan

Feb

Mar

Apr

Quantities Quantities Quantities Quantities

May

Jun

Jul

Aug

Sept

Quantities

Quantities

Quantities

Quantities

Quantities

50

135

110

60

85

50

60

50

125

50

150

110

60

100

60

75

60

135

60

185

150

75

100

60

85

75

160

60

210

150

75

110

75

85

75

175

220

680

520

270

395

245

305

260

595

Nov

Dec

Year Total

Retail Per Unit

Retail Total

Cost Per Unit

Cost Total

Margin Retail

Sales Plan - Retail Style #

Name

8459

Aurelie Minaudiere

Mathilde 3587 Clutch Elodie 6653 Satchel Sophie 9082 Bowler Total

Oct

Quantities Quantities Quantities

60

125

160

1,070

$

1,500

$

1,605,000

$

225

$

240,750

$

1,275

75

135

175

1,185

$

750

$

888,750

$

113

$

133,656

$

637

100

160

200

1,410

$

3,000

$

4,230,000

$

450

$

634,500

$

2,550

110

175

225

1,525

$

1,200

$

1,830,000

$

180

$

274,500

$

1,020

345

595

760

5,190

$

1,613

$

8,553,750

$

242

$

1,283,406

$

1,371

Feb

Mar

Apr

Sales Plan - Wholesale Style #

Name

Aurelie Minaudiere Mathilde 3587 Clutch Elodie 6653 Satchel Sophie 9082 Bowler Total 8459

Jan

Quantities Quantities Quantities Quantities

May

Jun

Jul

Aug

Sept

Quantities

Quantities

Quantities

Quantities

Quantities

50

135

110

60

85

50

60

50

125

50

150

110

60

100

60

75

60

135

60

185

150

75

100

60

85

75

160

60

210

150

75

110

75

85

75

175

220

680

520

270

395

245

305

260

595

Nov

Dec

Year Total

Wholesale Cost Per Wholesale Total Per Unit Unit

Cost Total

Margin Wholesale

Sales Plan - Wholesale Style #

Name

Aurelie Minaudiere Mathilde 3587 Clutch Elodie 6653 Satchel Sophie 9082 Bowler Total 8459

Oct

Quantities Quantities Quantities

60

125

160

1,070

$

500

$

535,000

$

225

$

240,750

$

275

75

135

175

1,185

$

250

$

296,250

$

113

$ 133,656.15

$

137

100

160

200

1,410

$

1,000

$

1,410,000

$

450

$

634,500

$

550

110

175

225

1,525

$

400

$

610,000

$

180

$

274,500

$

220

345

595

760

5,190

$

538

$

2,851,250

$

242

$

1,283,406

$

296


Branding & Marketing


Packaging











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