Retail Management FASM 410 Professor Alessandro Cannata Jacqueline Miller Ariel Chang Elizabeth Johnston & Gage Daughdrill
JACQUELINE MILLER ARIEL CHANG ELIZABETH JOHNSTON GAGE DAUGHDRILL
TABLE OF CONTENTS 1 EXECUTIVE SUMMARY 4 HISTORY 5 THE LABELS 6 COMPANY PROFILE 7 CORPORATE STRUCTURE 8 BUSINESS MODEL 9 FLAGSHIP STORE 10 COMPANY GROWTH 11 SWOT ANALYSIS 12 BRAND IDENTITY MATRIX 13 CURRENT POSTION 14 DISTRIBUTION 16 PERCEPTUAL MAP RATIONAL 17 PERCEPTUAL MAP 18 COMMUNICATION & PROMOTION 19 STRATEGIC PROCESS OUTLINE
TABLE OF CONTENTS 20 PESTEL ANALYSIS 25 SIZE OF MARKET 26 INDIRECT COMPETITION 27 DIRECT COMPETITORS 31 CUSTOMER PROFILES 34 TOURISM 35 PSYCHOGRAPHICS 36 BEHAVIORAL INFORMATION 37 STORE LOCATION 43 FLOOR PLAN 44 DESIGN OF SPACE 45 PRODUCT ASSORTMENT 55 PROMOTION PLAN 56 FINANCIAL PLAN 61 APPENDIX
EXECUTIVE SUMMARY
Through their versatile range of clothing and accessories, suiting all styles with a fresh attitude and clean aesthetic, Australian fashion brand BNKR has become the online shopping mecca for the best of Australian fashion. With their one and only flagship store in hometown Adelaide, Australia and plans for their first international flagship in the U.S., BNKR is powerfully making their way from online retail giant to a global fashion brand. But before they begin their international expansion, a pop-up shop in Los Angeles, California is in order to test the market and analyze if this will be a successful business venture.
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EXECUTIVE SUMMARY
Carrying popular labels such as Finders Keepers and Cameo, BNKR already has a steady following; including being worn by celebrities and having a strong social media presence. These qualities hold some value in the success of the expansion, but BNKR’s small brand awareness in the U.S. and limited advertisements do pose challenges in this process. The pop-up shop’s opportunities outweigh both the strengths and weaknesses by being able to truly expand into the United States and becoming known as a retailer of the best Australian fashion. This will also create a unique shopping experience for the customer and build trust by enabling them to get familiar with all the labels in person, establishing a face for the retailer. A BNKR pop-up shop will allow customers to immerse themselves within the brand and gain awareness of Australian fashion, while still maintaining and building a stronger online presence and being available on a global basis.
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HISTORY Parent company, Australian Fashion Labels, was started in 2007 to unite contemporary Australian designers categorized as “the Labels”. The Labels consist of Finders Keepers, Cameo, Keepsake, Jaggar, and The Fifth. BNKR was originally created as a retail platform to sell the Labels’ merchandise, and now has expanded into a highly curated online retailer for Australian Fashion Labels and many other renown Australian designers 10 (Retail Evolves from Website to Street-site in Adelaide).
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THE LABELS
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COMPANY PROFILE
Mission
BNKR is a highly curated Australian retailer of contemporary and casual sportswear brands. Their mission is to make premium Australian fashion brands accessible to the US and international customer.
Vision
BNKR strives to be a destination for Australian fashion; aiming to be a leader in Australian lifestyle and shopping.
Values
BNKR values to be a voice for Australian Fashion Labels. This company values the environmental impact it has on Australia and the US specifically, and strives to set an example of what Australian fashion is capable of.
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CORPORATE STRUCTURE AUSTRALIAN FASHION LABELS (parent company of BNKR) MARKETING SALES MANAGERS GRAPHIC DESIGNERS CUSTOMER SERVICE TEAM (10+ members total)
They sell their merchandise internationally through their online website and domestically through their flagship store in Adelaide, Australia. Their merchandising, online and in-store, is consistent throughout both channels making them a destination for Australian brands. Their headquarters are located at 106 Currie Street Adelaide Australia, less than a mile away from the flagship store. Recently, BNKR opened a headquarters in Los Angeles, California within the fashion district. See Appendix Item I
Dean and Melanie Flintoft
Managing Director and Creative Director of Australian Fashion Labels
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BUSINESS MODEL
BNKR is partners with The Labels and parented by Australian Fashion Labels. After their established partnership with Australian Fashion Labels, BNKR expanded into serving as a retailer for other Australian brands not owned by Australian Fashion Labels such as: Sol Sana, Jeffrey Campbell, Windsor Smith, Senso, Quay eye-wear, Lo Burket, Cinquante, Fig & Yarrow, and E-S-T (Main Page).
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BNKR FLAGSHIP STORE
Opened in 2014 Store layout and displays designed by company Xtra Shiney, lead by Adam Johnson. He concentrated on a design that could be not only duplicated but understood all around the world(Retail Evolves from Website to Street-site in Adelaide).
See Appendix Item XII
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COMPANY GROWTH
In 2014, BNKR opened their first flagship store and brick-and-mortar location in hometown Adelaide, Australia. They plan to expand their business into the United States with a Los Angeles flagship store. This will help them with international expansion and reaching a wider customer base. With the Labels already being distributed in boutiques and stores such as Urban Outfitters within the US, BNKR created their US headquarters in Los Angeles. BNKR is in the midst of creating a blog on top of their prominent social media platforms.
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SWOT ANALYSIS
STRENGTHS
WEAKNESSES
No known Australian competitors in U.S. Strong celebrity following Brand advocates (bloggers) Strong social media presence All labels offered under one roof
Online order complaints Small brand awareness in U.S. No advertising, besides social media & magazine Disinterest in brand Low brand recognition
OPPORTUNITIES
THREATS
Better customer service Expanding to U.S. market Introduce Australian fashion Customers are able to “showroom� High promotion of brand Co-creation
U.S. Competitors Copycats Nasty Gal Opening Santa Monica Promenade Location
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BRAND IDENTITY MATRIX BRAND as PRODUCT
BRAND as ORGANIZATION
Australian Fresh Polished
BRAND as PERSON
Fun Modern Confident/Cool Fashionable
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BRAND as SYMBOL
CURRENT POSITION
Current Position in the Market:
Currently BNKR offers a wide variety of clothing and accessories through its online presence and brick and mortar location in Adelaide’s Central Business District of Australia.
Price Range:
Price of accessories range from $13$100 including notebooks, scarves, sunglasses, jewelry, etc. Price of clothing can range from tee’s being $30 to leather pieces at $500 such as jackets and dresses.
See Appendix Item I
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DISTRIBUTION RETAILERS WHO CARRY BNKR LABELS: Revolve Clothing Nasty Gal Shopbop Nordstrom Neiman Marcus ASOS TOPSHOP Urban Outfitters & many boutiques around the world BNKR sells and ships their merchandise worldwide every day from their online store. They have a high volume of international as well as local sales and will have over a hundred people on the site at any general time.
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DISTRIBUTION
Map of BNKR Labels distributed in retail locations around the world
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PERCEPTUAL MAP RATIONALE Looking at fashion BNKR’s competitors we understood all have a global e-commerce to be available to their consumers, but Zara gaining the most accessibility to consumers with their vast collection of global brick and mortar presence. Followed by Topshop who is increasing their store numbers, Nasty Gal and BNKR have recently opened up their first store this past year (both implementing plan for their second), while Asos is staying only in the e-commerce platform.
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Since all of are competitors have a fairly diverse assortment of prices, we believed it would make sense to view price in a range not just average. As far as prices go, Zara and BNKR having the most consistent prices illustrates their shorter width, though Zara having more affordable choices brings BNKR price higher. Nasty Gal, Topshop, and Asos each having a wider assortment of prices all in the same kind of price rang, places them equally wide. Since BNKR offers the greatest amount of high range products brings them to having the all around highest price peak.
PERCEPTUAL MAP ACCESSIBILITY 0
PRICE RANGE 100 200 300 400
NASTY GAL ZARA ASOS TOPSHOP BNKR
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COMMUNICATION & PROMOTION BNKR Store : 71,089 likes @_fashnbnkr_: 876 followers @cameo_the_label: 204k @finderskeepersthelabel: 147k @keepsakethelabel: 80.3k @thefifthlabel: 25.6k @jaggarthelabel: 18.5k
#bnkr
@fshnbnkr : 706 followers
Editoral : 394 followers
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On every social media platform, they offer time sensitive deals and display almost out of stock or popular merchandise. In addition to the social media platforms, BNKR utilizes their own magazine and email blasts for promotional content. The company also has bloggers advocating the brand to their followers while they receive commission on products. The brand is also worn by many famous celebrities who post images of themselves wearing the clothes on social media sites.
STRATEGIC PROCESS OUTLINE Our goal is to spread awareness of Australian Fashion Labels through a BNKR pop-up shop in Santa Monica, California. Our strategy is to gain brand recognition and spread awareness of BNKR and the brands it carries in the US market. We would achieve this by mimicking the atmosphere of the BNKR flagship store in Adelaide, Australia as well as using social media and online marketing platforms. We are using the flagship as a template when designing the floor space and visual merchandising of the pop-up shop. We plan to survey customers on the awareness of BNKR and analyze the income of the pop-up shop to determine if a permanent store would be successful in the area.
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PESTEL ANALYSIS POLITICAL CURRENT STRENGTHS
CURRENT CHALLENGES
FUTURE PROSPECTS
FUTURE RISKS
- Strong democratic system - Global influence - American & Australian governments are similar, consistently stable relationship between the two
- FTA negotiations
- Threat of terrorism - Temporary work visa - Duties, taxes, & charges for imported goods
- International criticism - 2016 Presidential campaign
The US, although it is not perfect, has a developed economy. In 2014 the goods and services industry increased at a rate of 2.6% in 2014, and the amount spent on goods is constantly increasing. Minimum wage in Santa Monica, California is $9 an hour which is much higher compared to the rest of the country. Currently, the US is still recovering from an economic recession. The disposable income in California in 2013 was $1.6 billion. Current challenges California faces is high unemployment rates, the current inflation rate of .76%, and the sales tax being 9% (United States Data).
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The US is a strong democracy with a strong influence on other countries. Australia does not have the exact same government system as the US, but there are similar factors that in turn help both countries have a consistently stable relationship (Parliament vs Congress). The FTA negotiations are a future prospect because it promoted seamless trade between countries, which in turn boosts the economy. This could potentially provide more resources with employing, materials, etc. In the US, there is a consistent threat of terrorism since the terrorist attack of 9/11. Another challenge we would face is appertaining temporary H-1B Visas for our personnel we plan to bring from Australia to manage the store. Finally, the upcoming 2016 presidential campaign can cause uncertainty and sometimes is known to cause a downfall in consumer spending.
ECONOMIC CURRENT STRENGTHS
CURRENT CHALLENGES
- Well developed US economy - Goods & services industry increased at a rate of 2.6% in 2014 - Amount spend on goods in US (2010) $14.8 million
- High unemployment rate of 7.2 - US current inflation rate = 0.76% (As Of February 2015) - Los Angeles sales tax = 9.00%
FUTURE PROSPECTS
FUTURE RISKS
- Recovery from recession - Disposable personal income of $1.6 billion in California (2013) - Increasing minimum wage in California
See Appendix Item II
- Continuous decrease of inflation rate - $1.00 USD = $1.29 AUS (as of Feb. 2015) - $1.00 AUS = $0.78 USD (as of Feb. 2015)
PESTEL ANALYSIS SOCIAL
The US has a strong and continuously evolving heath care system and social security policies. The average age in California is 35 years old which is a benefit for BNKR because that age is around our primary and secondary demographics, and the population percentage in LA that is woman is over 50% as of 2013. California in general does not have the highest median household income average, and suffers from inequality of income. Future risks that could affect business is the education factor. California is one of the lowest funded states for education and has a troubling low percentage of high school graduates.
CURRENT STRENGTHS
- Health care & social security policies - Median age in California is 35 yrs old - Population of women in LA 50.7% (2013)
- Inequality of income in US - Aging population in US - Median household income of $69,013 (in 2008 dollars) in Santa Monica - Median household income of $55,909 (2009-2013) in Los Angeles
FUTURE PROSPECTS
FUTURE RISKS
- Universal health care in US
TECHNOLOGY CURRENT STRENGTHS
CURRENT CHALLENGES
CURRENT CHALLENGES
- Close proximity to the Silicon Valley could be influential to retail store - Silicon Valley is home to largest technological players (i.e. Apple, Microsoft, etc)
- Focus on government’s R&D* - Declining level of aptitude in mathematics & science in the US
FUTURE PROSPECTS
FUTURE RISKS
- Significant developments in emerging - Competition from other countries in technology & innovation* technology advancement & innovation
See Appendix Item II
- 26.9% high school graduation rate in Cali. - LA is one of lowest funded states in education
Santa Monica is within close proximity to the Silicon Valley which could be a potential advantage because this could lead to technology advances in retail. Silicon Valley is also home leaders in software and technology based companies such as Apple, Microsoft, Samsung and Ebay. The US is a leader in developments in technology, partly because of companies in the US and partially because of the research and development commitment in the US. However, the focus of R&D in the US has been recently aimed towards defense. Another challenge the US and California specifically face is the declining level of aptitude in mathematics and science. This could potentially lead to less innovation in the US which could lead to less innovation in retail. This could also lead to other countries having those innovations.
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PESTEL ANALYSIS ENVIRONMENTAL CURRENT STRENGTHS
CURRENT CHALLENGES
- Similarities in climate between CA & AUS - Public awareness of the environmental - Strong environmental initiatives in US impact - Renewed focus on renewable energy - Lack of commitment in proper waste - LA has award winning programs aiding management by the public sustainability for the community
FUTURE PROSPECTS
FUTURE RISKS
- Renewed focus on renewable energy - Unfriendly waste management practices in businesses & retail spaces
The similarity in climate between the US and Australia is a huge advantage for our company. One, our product assortment is well suited for the climate, and two, the target market stays essentially the same. This similarity helps us with our future plans to open a flagship in LA. The US has environmental initiatives which we find to be a strength as well due to the fact that BNKR values sustainability in all aspects. LA in particular has award winning programs that help in making a sustainable community. This includes the EPA working on cutting carbon emissions in the US by 20% by the year 2020, which creates a strong reliance on renewable energy. Challenges that face the US is convincing the general public in the US of the weight of this problem, and the lack of commitment within the general public and waste management companies on how to properly dispose of garbage.
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See Appendix Item II
PESTEL ANALYSIS LEGAL CURRENT STRENGTHS
CURRENT CHALLENGES
FUTURE PROSPECTS
FUTURE RISKS
- CA has strongest consumer protection - Temp. working Visa for AUS employees laws of any state (Visa category H-1B) - Santa Monica Police Dept. offers free - Retaining a business license from the City security services Planning Division in Santa Monica - Equal Employment Opportunities (EEO) - Requiring a police permit for business laws prohibit job discrimination activities & events - Workplace Health & Safety (WHS) laws - Duties, taxes, and charges on imported enacted goods between US & AUS
California has the strongest consumer protection laws of any state, which means that business can not behave in fraudulent behavior. In Santa Monica specifically, the police department offers free security services, which is an advantage for our business seeing as we have certain events we would potentially be needing security for. The EEO laws are also within California, which prohibits discrimination when hiring. There are standards in Santa Monica for health and safety within the workplace. Again, a challenge when bringing employees from Australia to the US is attaining their temporary work visas. Also, getting a license for building our business and police permits for the business activities we plan to host could potentially be a challenge. When shipping our goods from Australia, because the merchandise is worth over $1000, there will be duties, taxes, and charges for importing, and it could be subject to search.
See Appendix Item II
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SIZE OF MARKET: GLOBAL vs LOCAL
ESTIMATED ANNUAL SALES OF U.S. RETAIL SERVICES: 2012 (IN MILLIONS) Clothing and clothing access stores ……………241,386 Clothing stores ………………………………………..178,021 Men's clothing stores ………………………………...9,186 Women's clothing stores …………………………….41,357 Family clothing stores ………………………………..94,473 Other clothing stores ………………………………....14,168 Shoe stores ………………………………………...….29,488 Jewelry, luggage, and leather goods stores ……….33,877 Jewelry stores …………………………………………30,850
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INDIRECT COMPETITION Distractions for our customer: Stores: The Coffee Bean & Tea Leaf Barney’s Beanery Mi Westside Comedy Theatre Johnny Rockets Steve Madden Shoes Aldo Stores Selling BNKR Brands: Urban Outfitters Santa Monica Pier: Arcade Theme Park Restaurants Shopping Downtown Santa Monica: Downtown Santa Monica, located inland East of Santa Monica Promenade, would be another competitor. It provides restaurants, entertainment, and more shopping (Downtown Santa Monica Retail).
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DIRECT COMPETITORS
SOCIAL MEDIA OUTREACH: Twitter: 864K followers Instagram: 2.5 million followers Facebook: 24.1 million followers DISTRIBUTION: e-commerce and Brick and Mortar platforms SOCIAL MEDIA AND PROMOTION: Print advertisements, social media advertising (usually with celebrity model appearances such as Cara Delevingne and Hailey Baldwin), Zara Magazine, iPhone shopping application, and fashion videos and commercials. POP-UP SHOP EXPERIENCE: None
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HISTORY Zara belongs to one of the worlds largest distribution groups, INDITEX and is a completely vertically integrated company (Thompson). Zara was founded in 1975 by Amancio Ortega and Rosalia Mera in Arteixo, Spain. They sell mens, womens, and children’s fashion along with accessories and made 7.71 billion euros in 2009. Zara spends little on advertising with their main strategy focusing on location of their stores in proximity to high luxury brands and foot traffic (Fast Fashion: The Zara Experience). RATIONALE Zara’s main advantages over BNKR are it’s fast fashion approach in terms of low price points and that they are vertically integrated. Zara’s low prices for somewhat high quality are what make them a direct competitor. Brand awareness is another thing that Zara has with 468 thousand Instagram followers in the United States and 2.8 million around the world. They have a large and loyal customer following.
DIRECT COMPETITORS
HISTORY Topshop is primarily and privately owned by Arcadia Group founded in 1964. The current CEO is Philip Green, with headquarters based in London, England. They sell mens, womens, children’s clothing along with accessories (Topshop). RATIONALE Top Sop offers labels such as Cameo, which is under the BNKR company umbrella, and targets the same demographic in terms of age and behavioral shopping habits.
SOCIAL MEDIA OUTREACH: Twitter: 1.7 million followers Instagram: 3.8 million followers Facebook: 4.1 million followers DISTRIBUTION: e-commerce and Brick and Mortar platforms SOCIAL MEDIA AND PROMOTION: Lookbooks, seasonal fashion shows, social media presence, shopping phone app, and seasonal fashion videos. POP-UP SHOP EXPERIENCE: Shops within Nordstrom (they call “pop-in shops”), and “pop-up” shops featuring collaborations with designers within their own brick and mortar locations.
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DIRECT COMPETITORS
SOCIAL MEDIA OUTREACH: Twitter: 206K followers Instagram: 1.5 million followers Facebook: 1.2 million followers DISTRIBUTION: e-commerce and Brick and Mortar platforms SOCIAL MEDIA AND PROMOTION: Printed catalogue, lookbooks, iPhone shopping application, and social media advertising. POP-UP SHOP EXPERIENCE: None
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HISTORY Nasty Gal is a privately owned company that started in 2006 by Sophia Amoruso in California. They are a womens apparel and accessory company specializing in vintage (Perlroth). RATIONALE Nasty Gal’s aesthetic and current distribution channels are what directly challenge BNKR. The look and feel of both Nasty Gal’s and BNKR’s websites are quite similar, both being very clean and engaging. Nasty Gal also started out as an online retailer before opening their first flagship store in Los Angeles last year that is the exact same circumstance that applies to BNKR; only difference being that they are in Australia.
DIRECT COMPETITORS
HISTORY Asos is a publicly owned company and was founded in 2000 by Nick Robertson and Quentin Griffiths in London, England. They have per-tax profits of around 30 million euros (About Us). RATIONALE Online retailer, ASOS, directly competes with BNKR for a couple of reasons. For one, ASOS has a very large following online and offer a very wide assortment of different products. Alsotheir prices are in the same market segment as BNKR’s, except they do offer very economical prices for discounted items.
SOCIAL MEDIA OUTREACH: Twitter: 805K followers Instagram: 2.6 million followers Facebook: 3.6 million followers DISTRIBUTION: e-commerce SOCIAL MEDIA AND PROMOTION: Social media advertising, interactive shopping feature on website, styling services for individual customers, Asos phone application, and Asos Lifestyle blogosphere POP-UP SHOP EXPERIENCE: Pop-up Shop in Sydney, Australia in 2012
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CUSTOMER PROFILE
DEMOGRAPHIC Santa Monica Resident Age: 23 Single Salary: $40,000 Recently graduated from FIDM and is now a junior copywriter.
PSYCHOGRAPHIC: young, charismatic, always on top of trends BEHAVIORAL: Fun and always on the move; up to date on trends for personal and professional reasons. Splurges on a big purchase every once in a while, but still conscious on a quality wardrobe with a budget.
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CUSTOMER PROFILE
DEMOGRAPHIC Tourist, Nevada resident Age: 24 Single Salary: $60,000 PR and social media maven.
PSYCHOGRAPHIC: intelligent, organized, on-the-go, independent BEHAVIORAL: Frequents California about five times a year, with Santa Monica being her favorite destination. Enjoys the beach, attractions, and shopping alike. Really big on social media and is always “in the know”.
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CUSTOMER PROFILE
DEMOGRAPHIC Tourist, California Resident Age: 27 Married Salary: $85,000
PSYCHOGRAPHIC: workaholic, passionate, businessoriented BEHAVIORAL: She resides in San Diego and visits Santa Monica frequently to see her family. She has one child with her husband and has a combined family income of $175,000. She is very socially active within her community when shes not working.
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TOURISM TOURISM -Roughly 7.3 million visitors a year -Total annual visitor spending is $1.63 billion -Per capita daily visitor spending is $143.32 -Shopping and annual retail spending was $573,852,077 in 2013 compared to $533,089,000 in 2012. -A 7.6% increase in retail spending INTERNATIONAL & DOMESTIC VISITORS 32% (3.4 million) are US visitors 32% of which are from CA 53% (3.9 million) are international visitors (Of the top 12 international visitors, the number one was Australia/New Zealand at 15.8%) (Best Place to Live in Santa Monica, California) SANTA MONICA VISITOR PROFILE
SOURCE: http://www.santamonica.com/ includes/media/docs/2-page-econ-ImpSummary-2013.pdf
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PSYCHOGRAPHICS GEOGRAPHY/LOCATION 2014 Santa Monica population: 90,008 million 26.98% are Millennial generation 52.24% are female Almost half of the millennial generation live in an urban or downtown area at 48%. Cities such as San Francisco, San Diego, and Los Angeles are popular among this demographic. WHERE GENERATION Y LIVES
SOURCE: ULI/Lachman Associates Survey, 2013
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See Appendix Item VIII
BEHAVIORAL INFORMATION
MILLENNIALS AS CONSUMERS 63% stay updated with brands through social media. 46% count on social media when making a purchase, but 55% share bad experiences. One highly noted aspect is that our demographic visits their favorite branded store as much as they shop online. Despite primarily shopping online, consumers aged from 18-32 do like to shop in store for a number of items: 73% for clothing 76% for shoes 62% for jewelry
See Appendix Item XI
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STORE LOCATION: JUSTIFICATION FOR SELECTION LIFESTYLE (PRIZM SEGMENTATION) The people of the Santa Monica are a wide range of different demographics. The amount of wealth and poverty are pretty evenly distributed with it swaying slightly more towards the conventional and wealthy classes. Although a varied and unique population, our target customer is very much present in Santa Monica’s community. She’s still young in her early to late 20s and has a stable career from being collegeeducated. She makes a decent salary and has quite a bit of discretionary income. She is a woman who enjoys minimal silhouettes with charismatic prints and interesting fabric choices. She doesn’t mind spending more money on clothing and leisure items. Considered to land among groups such as an urban achiever and bohemian mix, she’s successful and considered to be upper middle class who leads a very socially active lifestyle. Technology is the way for her to stay ahead of what is going on and researches products before she buys them. Not only does BNKR’s target consumer reside in Santa Monica, but there’s another one who’s also a tourist. With so much tourism from people from all over the world, a tourist is almost twice as likely to be in the area and shop at BNKR than a local. 53 percent of tourists in Santa Monica are international leaving 47 percent from the United States.
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BEHAVIORAL (PRIZM SEGMENTATION) Reads the news, keeps up with current events. Enjoys shopping and living a social and active lifestyle. Goes to the beach and enjoys the outdoors when possible. (Nielson Prizm)
STORE LOCATION
SANTA MONICA PROMENADE
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STORE LOCATION: JUSTIFICATION FOR SELECTION
DOWNTOWN SANTA MONICA AMBASSADOR
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VISITORS OF THE PROMENADE
STORE LOCATION: JUSTIFICATION FOR SELECTION SALES POTENTIAL
Santa Monica California, located at the western edge of Los Angeles, is known for being a tourist destination for shopping, dining, and recreation. The average foot traffic per day is 40,000 people. According to the 2010 census, there are 6.33 million visitors annually in Santa Monica with an annual spending of $1.1 billion and average daily spending of $118.46. Although these numbers fluctuate, we expect this destination to remain a popular destination for tourism. Also, the largest percentage of foreign visitors annually are from Australia, so choosing this exact location was key to our Australian brands success (See Appendix Item III & IV) .
ESTIMATING COMPETITION
During the summer, Santa Monica not only has its all year round recreational activities such as The Pier, the beach, and the downtown area, but it also has seasonal farmers markets. These farmers market have the potential to bring in customers to the area, but they could also be a competition. Additional competition could include our adjacent retail neighbors such as Zara, Armani Exchange, etc. These larger scale neighbors could potentially take the attention of our target consumer. Walking tours of the promenade and area are a popular pass-time. Every Wednesday there is a “Hump-Day Food Trucks� event that consists of food trucks of many food origins. This event is annual and very popular for local Californians and visitors (Southern California Attractions and Santa Monica Events Calendar).
AREA ATTRACTIONS
The Santa Monica Promenade or also known as the Third Street Promenade had a lot of improvements in 2013/2014 that better the area. One being the construction of two large scale hotels which will boost the economy of the area and bring in more vacationing consumers. They have also completed an Eco-friendly parking garage for the promenade. In 1980 the promenade took form as the local mall started to lose its appeal and an outdoor setting for shopping became more attractive. It has now been 25 years of shop owners and restaurateurs boosting the economy and look of the Santa Monica Promenade (Getting Around).
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STORE LOCATION: JUSTIFICATION FOR SELECTION
AREA FACTORS
Due to the effective work of the ambassador program of the downtown and promenade areas in Santa Monica, there is a constant source of convenient walking maps of Santa Monica 24/7. The local Big Blue Bus lines in Santa Monica provide transportation to the local and greater Los Angeles areas. There are high service taxi cab services provided by the area, and there are over 75 parking structures provided as well for bicycles in the area. In Santa Monica there are 9 vehicle parking garages open 24 hours a day (Best Place to Live in Santa Monica, California).
AVAILABILITY OF HR
Recently, BNKR has brought a US headquarters to Los Angeles, California. In this headquarters is a team the manages all US distribution, PR, and customer service (See Appendix Item I).
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STORE LOCATION: JUSTIFICATION FOR SELECTION
LEGAL BNKR runs into only few issues concerning the opening of our Santa Monica pop-up shop. To open and operate, BNKR will just need to gain approval of a Temporary Use Permit from the City Planning Division. For our grand opening event, alcohol will be served compelling us to acquire approval and a license. The permit will allow us to serve beer, wine, and spirits onsite on a temporary, seasonal basis. Also, we will have to get approval from the Architectural Review Board in Santa Monica to display a projecting or wall sign on the outside as well as window signs and clings. All signs in the store is exempt from needing approval for use (See Appendix Item V).
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DESIGN OF SPACE: FLOOR PLAN
Stock Room
Seating Area
Fitting Rooms
Folded Merchandise
Folded Merchandise
Accessory Merchandise Entrance
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See Appendix Item VII
Window Display
DESIGN OF SPACE: VISUAL MERCHANDISING For this BNKR pop-up shop, we wanted to duplicate the modern and fresh design and appeal of the recently built flagship store in Adelaide, Australia. The flagship store was designed with this specific idea in mind, “We wanted a store design that we could replicate in future flagship stores so that the customers will always know when they are in a BNKR store�, says Adam Johnson, the store designer. Although it is not exact, the light fixtures, ambiance, merchandising, and visuals in our temporary store mimic the design of the original store.
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PRODUCT ASSORTMENT: TOPS
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See Appendix Item VI
See Appendix Item VI
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PRODUCT ASSORTMENT: SHORTS
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See Appendix Item VI
PRODUCT ASSORTMENT: SKIRTS
See Appendix Item VI
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PRODUCT ASSORTMENT: PANTS
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See Appendix Item VI
PRODUCT ASSORTMENT: PANTS
See Appendix Item VI
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PRODUCT ASSORTMENT: DRESSES
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See Appendix Item VI
PRODUCT ASSORTMENT: PLAYSUITS
See Appendix Item VI
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PRODUCT ASSORTMENT: OUTERWEAR
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See Appendix Item VI
PRODUCT ASSORTMENT: ACCESSORIES
See Appendix Item VI
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PROMOTION PLAN Personal Advertising
March
Pre-Launch April
May
Launch June
July
Launch August
September
Invitations _ Reminders_ Thank you letters_
Online Marketing
Event Marketing Giveaways
Facebook_ Twitter_ Instagram_ Pintrest_
Launch Party_ BNKR Tumblers_
Promoting the pop-up shop will mainly be done through social media and reestablishing a strong connection with consumers. Invitations to fashion bloggers, PR companies, VIP customers, fashion magazine journalists, and a few selected others, in May for the grand opening event a month before the big day with a follow up email a week prior. Having people in public relations and bloggers at the event will generate a lot of buzz for the pop-up because so many people who would attend are involved in some aspect of media. Heavy use of social media through Facebook and each label’s social media accounts along with posts blasts of “sneak peeks” and information on the opening day. This will be to gain some exposure and create awareness to these brands seeing as they are not household names in the United States yet. Also, free coffee tumblers with the signature BNKR logo will be given to the first 100 customers of the opening day.
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PROMOTION PLAN
Opening Night Event For the Pop-up shops opening night, we are having an event sponsored by Beats by Dre featuring Beats headphones personalized with patterns by the Labels. We plan to promote the event through social media and the invites via email. We hope that this will help promote BNKR and the Labels it houses. We also plan to give limited BNKR coffee tumblers to the first 100 shoppers throughout the day. This will hopefully spread the word throughout our target customer, and promote a solid image for the brand.
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FINANCIAL PLAN
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First, through research, we determined the foot traffic in the downtown Santa Monica promenade, which is 40,000 per day. We then determined that 61.5% of the people in the promenade are coming to shop apparel within the promenade, which was 24,600 people per day. 65% of those people are female, which was determined to be 15,990 per day, then to be more precise we made an educated guess that 30% of those women are hitting are target market age to bring us to 4,797. Then, through research we determined that there are 84 total stores that are apparel/accessory/shoe stores in the Santa Monica Promenade. This helps us because in order to determine the exact footfall, we need that figure along with the estimated average number of stores visited, this number being 20 stores. After multiplying that figure by 7, illustrating 7 days in a week we ended up with 7,995 people per week, which we then multiplied by 60% to get the footfall for Week 1. For Week 2, 3 and 4, each week increased by 10% more, due to our standing presence in the promenade.
To get the conversion rate, the figure that represents the number of persons within footfall that actually makes a purchase, we multiplied our footfall figure by 10%, thinking that 10% of people walking into our store will purchase merchandise. For our average basket, we determined this by obtaining the average price of our inventory, $120.60, and assumed that the average person, taking our target consumer into consideration, would buy two items and a small accessory. This brought our average basket to $255.00. Finally, to get our revenue, we multiplied the conversion rate and average basket together. To determine are category percentages, we started by getting the number of each unit in each product category, then dividing that number by the total number of units within our product assortment to get the percentage for each category. From there we started to implement each week’s sales out, understand consumers don’t buy the same percentage of product category each week so to keep it realistic we input different purchasing habits, which also explains the disconnect between are initial estimated revenue to the more in depth week tables showing it in a more organic execution.
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FINANCIAL PLAN
WEEK 1
WEEK 2
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FINANCIAL PLAN
WEEK 3
WEEK 4
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FINANCIAL PLAN
OPERATING EXPENSES
INTERIOR & EXTERIOR EXPENSES
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FINANCIAL PLAN
INCOME STATEMENT
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APPENDIX ITEM I
APPENDIX ITEM II
APPENDIX ITEM II
APPENDIX ITEM II
APPENDIX ITEM II
APPENDIX ITEM II
APPENDIX ITEM III
APPENDIX IV
APPENDIX ITEM V
APPENDIX ITEM VI
APPENDIX ITEM VI
APPENDIX ITEM VI
APPENDIX ITEM VII
FLOOR PLAN The layout of the floor plan was inspired by the look and RATIONALE
aesthetic of the labels under the BNKR brand. Minimal, clean, and relaxed, the BNKR pop-up shop fits right in the southern California fashion scene. When entering the store, consumers walk through the glass doubledoors and are met by a case of special edition Beats by Dre headphones that they are given the option to wear as they shop around. Continuing down the middle aisle, the different sectioned off areas are to feature clothes from Cameo, Finders Keepers, Jaggar, The Fifth, and Keepsake, respectively. This is to familiarize consumers with the labels as they get a feel of what each has to offer and also listen to a curated playlist that changes as they enter each section. Fitting rooms are in the back of the store with two mirrors and a sitting space. The stockroom is in the very end of the store with shelves that hold the inventory.
APPENDIX ITEM VIII
APPENDIX ITEM VIII
APPENDIX ITEM VIII
APPENDIX ITEM XI
APPENDIX ITEM XI
APPENDIX ITEM XII
Proximity of BNKR Headquarters and BNKR Flagship Store Green: BNKR Headquarters Black: BNKR Flagship Store
WORKS CITED
1. "Australian Government - Australian Customs and Border Protection Service." Importing Goods by Post FAQ. Web. 6 Mar. 2015. <http://www.customs.gov. au/site/importingGoodsByPostFaq.asp>. 2. "Best Place to Live in Santa Monica, California." Best Place to Live in Santa Monica, California. Web. 13 Feb. 2015. http://www.bestplaces.net/city/california/ santa_monica. 3.“BNKR | Women’s Fashion Clothing & Shoes | Shop Now - BNKR.” BNKR | Women’s Fashion Clothing & Shoes | Shop Now - BNKR. Web. 10 Mar. 2015. <http://us.fashionbunker.com/>. 4. "Downtown Santa Monica Retail." Downtown Santa Monica. Web. 6 Mar. 2015. <http://www.downtownsm.com/map/retail>. 5. "Fast Fashion: The Zara Experience." Retail Law Advisor. Web. 10 Feb. 2015. <http://www.retaillawadvisor.com/2013/05/22/fast-fashion-the-zara-experience/>. 6. "Free Trade Agreements Australia | United States Trade Representative." Free Trade Agreements Australia | United States Trade Representative. Web. 6 Mar. 2015. <https://ustr.gov/trade-agreements/free-trade-agreements/australian-fta>. 7. "Getting Around." Getting Around. Web. 20 Feb. 2015. <http://www.downtownsm.com/getting-around>. 8. "Main Page." Australian Fashion Labels. Web. 6 Mar. 2015. <http://australianfashionlabels.com.au/>. 9. "Parliament vs Congress." Parliament vs Congress. Web. 6 Mar. 2015. <http://www.peo.gov.au/learning/closer-look/parliament-vs-congress.html>. 10. Perlroth, Nicole. "Naughty in Name Only." The New York Times. The New York Times, 24 Mar. 2013. Web. 10 Feb. 2015. <http://www.nytimes. com/2013/03/25/technology/nasty-gal-an-online-start-up-is-a-fast-growing-retailer.html?_r=0>. "United States Data." United States. Web. 6 Mar. 2015. <http:// data.worldbank.org/country/united-states>. For the rest of the pestle cite the market line report Lizzy is sending you. 11. "Retail Evolves from Website to Street-site in Adelaide." CityMag BNKR The First Flagship Store Comments. 6 June 2014. Web. 15 Feb. 2015. <http://citymag. com.au/commerce/graphic-identity/bnkr-first-flagship-store/>. 12. "Southern California Attractions and Santa Monica Events Calendar." Santa Monica Events, Southern California Events Calendar. Web. 20 Feb. 2015. <http:// www.santamonica.com/events-calendar/index.cfm?showday=1&cdate=7-1-2015>. 13. Thompson, Derek. "Zara's Big Idea: What the World's Top Fashion Retailer Tells Us About Innovation." The Atlantic. Atlantic Media Company, 13 Nov. 2012. Web. 10 Feb. 2015. <http://www.theatlantic.com/business/archive/2012/11/zaras-big-idea-what-the-worlds-top-fashion-retailer-tells-us-about-innovation/265126/>. 14. "Topshop." / Arcadia Group. Web. 10 Feb. 2015. <https://www.arcadiagroup.co.uk/about-us/our-brands/topshop>. 15. "United States Data." United States. Web. 6 Mar. 2015. <http://data.worldbank.org/country/united-states>.
Retail Management FASM 410 Professor Alessandro Cannata Jacqueline Miller Ariel Chang Elizabeth Johnston & Gage Daughdrill