EMILY ZAPPI
ATHLETA-PORTFOLIO
EMILY ZAPPI
PORTFOLIO
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ATHLETA
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ATHLETA-PORTFOLIO
CONTENTS COMPANY PROFILE competitive analysis line development spec sheets costing references
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ATHLETA-PORTFOLIO
ATHLETA x A HIGH-TECH PERFORMANCE
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ALEX MORGAN SS21 COLLECTION
ATHLETA-PORTFOLIO
C O M PA N Y P R O F I L E Athleta is a premium lifestyle and fitness brand that creates versatile performance apparel for active women (Gap Inc. 2020). The publicly held corporation was founded in San Francisco, California. At the end of 2019, Athleta consisted of 171 stores with their main geographic distribution being North America. Under Gap Inc., Athleta’s sister companies include Gap, Intermix, Old Navy, Hill City, Banana Republic and Janie and Jack.
CONCEPT Athleta strives to ignite a community of active, healthy, confident women and girls. Their main categories of merchandise include apparel, footwear, accessories and a brand division for girls. These catogries also contain subcategories such as cold weather training, running, hiking, yoga and more. Currently, Athleta is producing 60% of its collections with sustainable materials and is committed to producing 80% by Image 3
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the end of 2020 (Danziger, 2019).
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In 2018, Athleta continued to increase sales each quarter even though Gap Inc.’s total
financials
sales were down by 5% (Danziger, 2019). In
At the end of 2017, Athleta reached $1 billion in
the second quarter of 2019, sales were up
total revenue. This accounted for 6% of Gap Inc.’s
to 25.4% from the previous quarter. Overall,
total revenue for the year (Meyersohn, 2019).
the company has showed promising growth.
in millions of dollars
$1000
$800
$600
$400
$200
$0
2015
2016
2017
2018
2019
net profit operating expenses cost of goods
5 year financial performance
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SWOT strengths Athleta offers a wide product assortment that has expanded their customer base across the board of the athleticwear market. The assorment includes plus, petite and sustainable options. They hold a strong online presence on multiple social networking platforms with effiiecient social management that enhances e-com. Athleta offers more affordable price points compared to its direct competitors. The product quality has increased their brand loyalty and return rate among customers. Another strong advantage for Athleta are the fitness classes offered both in-store and virtually to promote healthy lifestyles and a sense of community.
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Weaknesses Gap Inc. is increasingly reliant on Athleta to revive the entire unit which may result in unneeded pressure to expand too rapidly. Compared to the global activewear market, Athleta currently only accounts for 1%. Though the company looks for ways to grow at a manageable rate, Athleta remains focused only on female consumers.
opportunities One of Athelta’s largest opportunities is to incorporate the rapid development of fabric performance and production technologies into their supply chain. The continued growth of e-com and social media marketing is also an important assest for Athleta’s future.
Threats There is an increasing number of competitiors in the activewear market leaving it saturated and more difficult to stand out as a leading brand. As far as the supply chain, constant technological developments require consistent updated training leading to higher labor and production costs.
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Competitive analysis
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Lululemon
Fabletics
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The two most prominent competitors of Athleta are Lululemon and Fabletics. All three companies appeal to those of an active lifestyle, but they have each followed their own trajectories over time. Athleta trailed closely behind Lululemon’s US footprint as of spring 2019 with 171 stores compared to 291 (Danziger, 2019).
ATHLETA-PORTFOLIO
Activewear sales revenues for 2019
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For comparison, and as an indirect competitor to Athleta, Nike reported a total revenue of $39.1 billion of the total $181 billion activewear market revenue for 2019. That is 21% of the total market revenue compared to Athleta’s 1%.
2%
Market Position As shown in the figure below, Athleta, Lululemon and Fabletics hold a very small portion of the overall activewear market’s annual revenue of $181 billion as reported in November of 2019 but all three brands continue to grow (Statista, 2019). Lululemon holds 2% of the overall activewear revenue, Athleta holds 1% and Fabletics holds less than 1%. Financially, with $3.7 billion annually, Lululemon remains ahead of Athleta since expanding into men’s activewear and remaining present in the international markets (Danziger, 2019). Athleta is expected to take on a larger role for Gap this year with an expansion in sight after being projected to rise towards $1 billion in annual revenue (Meyersohn, 2019).
Fabletics
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Athleta
97 lululemon
remaining market
1%
<1% Image 8
%
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product comparison Athleta, Lululemon and Fabletics carry similar product offerings with the difference lying in their client base as well as their assortment depth. Categories across all three companies include bottoms, tops, undergarments and accessories with the exception of a sustainable and extended sizing categories under Athleta. Athleta offers a wide range of womenâ&#x20AC;&#x2122;s sports apparel and footwear for golf, running, skiing, snowboarding, tennis, swimming and yoga (Mintel, 2020).
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NEARLY HALF OF THE MARKET IS LOOKING FOR ACTIVEWEAR THAT DOES MORE. Page â&#x20AC;&#x201D; 14
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L i n e d e v e lo p m e n t p ro p o sa l From the extensive market research that we have conducted, it is believed based upon our newfound data that Athleta would benefit from introducing a High-Tech Performance category in collaboration with US women’s soccer player, Alex Morgan. In 2018, women’s sports apparel was valued around $80 billion and has been expected to grow nearly 17% over the next few years (Salfino, 2019). Athleta is continually investing in new ways to set itself apart from increasing market competition. A partnership with female athlete, Alex Morgan, could be the next step forAthleta’s community building and woman empowerment movement which have been two of the biggest success factors for the company since the beginning. Athleta and competing brands have captured their audiences with clothing that supports the healthy lifestyles of everyday women. Yet, there is another portion of the market with needs that have not yet been met by Athleta and direct competitors. Cotton Incorporated conducted research in 2019 on the breakdown of athletic activities that consumers participate in. The research found that 43% of women engage in weight lifting, 37% in running, 27% in swimming and the remaining is broken up between yoga, hiking and aerobics. The research also noted that those who exercise more often are more likely to participate in outdoor activities (Salfino, 2019). Therefore, nearly half of the market is looking for activewear that does more and performs harder.
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MEET MIA OUR TARGET CUSTOMER The new opportunity targets a customer base that would traditionally choose Nike, Under Armour or Adidas for top-performing clothing (Salfino, 2019). Mia is curious to shop at Athleta but has always turned towards athletic brands that have been known for performing best throughout a multitude of activities and have been trusted to withstand tough sporting. Mia is 30 years of age and works as a professional fitness coach in California. She trains seven days a week and is constantly exposed to the elements engaging in outdoor workouts. Her annual gross income averages $68,000. Her discretionary income is about $600.00-$700.00 a month. Mia has a fouryear bachelor degree and is influential in her community because of her consistent activity. She visits her local Athleta store once a month to view new arrivals. On average, she spends $60.00 in-store for a single piece to incorporate into her wardrobe.
The athleta x alex morgan line would extend options to highly active female athletes who need clothing that is going to perform just as hard as they are.
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ATHLETA-PORTFOLIO
P OW
t r e n d a n a ly s i s SS21 activewear SS21 will introduce fresh styles and silhouettes that can be easily adapted to reflect Athletaâ&#x20AC;&#x2122;s original focus: dependable, quality items that transcend time. Through the utilization of WGSN, Donegar Creative Services and WWD, the trends of Power Play, Technical Precision and Quality Classics effectively communicate the trends, coloration, fabrication and silhouettes of the SS21 season while representing our core and prospective customer. For SS21, activewear is to take on digital aspects in fabrics, print and color that blurs the lines of reality. This inspiration comes from the continual emergence of consumers into the web. Silhouettes will consist of reinvented classics, best-selling cuts and styles as sustainability and recycling remains at the forefront of focus (Fenton, 2019). Key items will include bodycontoured tights, cut-out tops and weightless outerwear (Harman, 2019). Fabrics reach new heights with advanced performance technologies and multifunctional purposes.
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WG
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W E R P L AY SS21
GSN Image board 12
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C o n c e p t b oa
Line direction The concept for the new High-Tech Performance line is a hybrid of our favorite Athleta basics, SS21 Power Play silhouette trends and top-notch athletic fabric utilizing the latest in technologies to improve and modernize. Performance qualities are a focus for fabrics as they will be essential for the most motivated athletes who are specifically looking for clothes that will meet their regiment (Hamanaka, 2016). Silhouettes will incorporate elevated seam detailing, pintucking and more structued designs (Doneger, 2019). Key items include compression leggings as well as bodycon and breathable tops that allow for layering.
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CN100
CN101
ard CN102
CN103
CN104
CN105
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SS21
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C o lo r s t o ry The color story for the High-Tech Performance SS21 line puts an emphasis on the positive effects color can have on our mood; known formally as neuroaesthetics. The colors have a saturated and artificial feel allowing for a seamless transfer from the virtual screen to real life (Fenton, 2019). The six key colors chosen to represent the trends of the SS21 season are a combination of swatches from our Core Neutral and Supplemental color boards.
CN100
CN101
CN102
Ace
Turf
League
CN103
CN104
CN105
Rebound
Goalie
Advantage
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Bounce
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Print Retro and geometric shapes find their way back into prints as digitalonly designs dominant the activewear landscape for SS21. The lines between real and virtual blur (Fenton, 2019).
ATHLETA-PORTFOLIO
Fa b r i c s t o ry
The fabric story is the key element in the HighTech Performance SS21 line. Materials provide dual functions such as breathability and waterproof protection to keep up with the most physically demanding routines. Weightless materials feel like second-skins but provide the ultimate strength. Sustainability remains at the forefront of future advancements for Athleta products, and this is the same for the Athleta x Alex Morgan sourced fabrics.
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spec sheets
cn104
cn102
cn103
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cn104
cn103
cn104
cn101
cn102
cn101
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cn101
cn101
cn105
cn105
cn105
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The key items selected are the Peek-A-Boo Tank, Advantage Tight, Full Force Unitard, Midfielder Essential Tee and Boxer Bottom due to their performance qualities and multifunctional capabilities. The key items will be staple garments for our core customers who need high-tech performance gear for a wide range of activities and sports. The items are transitional and easily paired together.
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ATHLETA-PORTFOLIO
c o sti n g Style Number
Unit retail
Unit Cost
Target fabric cost
fabric yardage @ cost/yd
2.2 yds @ $7.00/yd 1.3 yds @ $10.00/YD 1.3 yds @ $8.00/yd 1.7 yds @ $7.00/yd
fabric quick cost
fabric quick cost total
$15.40
$15.40
$13.00
$13.00
$17.60
$17.60
$11.90
$11.90
1 yd @ $6.25/yd
$6.25
$6.25
$12.00
1 yd @ $8.00/yd
$8.00
$8.00
$44.00
$26.40
2.5 yds @ $8.00/ yd
$20.00
$20.00
$75.00
$30.00
$18.00
2 yds @ $9.00/yd
$18.00
$18.00
23202
$50.00
$20.00
$12.00
2 yds @ $5.00/yd
$10.76
$10.76
53200
$85.00
$34.00
$20.40
2.2 yds @ $9.00/yd
$19.80
$19.80
13200
$90.00
$40.00
$24.00
13201
$55.00
$22.00
$13.20
13202
$80.00
$32.00
$19.20
13203
$100.00
$40.00
$19.20
13204
$45.00
$32.00
$19.20
13205
$50.00
$20.00
23200
$110.00
23201
The quick costing table above represents the cost of fabric needed to produce the 10 pieces of the SS21 High-Tech Performance line. It was important to source the best in performance fabrics while also keeping in mind our target audience demographics. Because of the higher price of technological fabrics, this line would be considered a limited edition collection with a limited number of pieces per style.
six month plan calculations PLANNED SALES Monthly Planned Sales ($) = LY Monthly Sales %*Season Total Planned Sales for May = 18%*$53,000= $9,540 RETAIL STOCK BOM Retail Stock = Stock-to-Sales Ratio for Month*Monthly Planned Sales BOM Retail Stock for May = 2*$9,540 = $19,080 MARKDOWN $ Markdown $ = Markdown %*Monthly Planned Sales Markdown $ for May = 15%*$9,540 = $1,431 Page â&#x20AC;&#x201D; 30
PLANNED RETAIL PURCHASES Planned Retail Purchases = Planned Sales $ + Markdown $ + EOM - BOM Planned Retail Purchases for May = $9,540 + $1,431 + $26,00 - $19,080 = $18,391 PLANNED PURCHASES AT COST Planned Purchaes at Cost - Planned Retail Purchases*(100%-60%) = $7,356 EOM Inventory EOM: Retail Stock (BOM) $ of Following Month EOM of May = $26,500
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MONTH PLAN
The calculated planned retail purchases for May 2021 is $18,391.00.
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ATHLETA-PORTFOLIO
Assortment d istri buti o ns Athletaâ&#x20AC;&#x2122;s current sizing chart ranges from XXSXL with the addition of extended sizing categories. Because of the higher price points of performancedriven fabrics being incorporated into the SS21 line, a sizing chart adjustment would be necessary at this stage. XS-XL is the adapted scale for the High-Tech Performance line.
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size
%
x-small small medium large x-large
15% 20% 35% 20% 10%
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% of budget allocated
class #
class
1 2 5
tops 35% bottoms 55% other 10%
estimated $ amount purchased
$6,436.85 $10,115.05 $1,839.10
Pants and compression leggings remain the core of the athleisure trend for upcoming years (Bhandalkar, 2018). Therefore, over half of the distribution went to our three styles of bottoms. The tops category encompanies the sports bra, sleevless top, t-shirts and sweatshirts. The final style, the elevated unitard, is in a category of its own entitled â&#x20AC;&#x2DC;other.â&#x20AC;&#x2122;
25%
cn102 League
25%
5%
cn104 goalie cn105 advantage
10%
cn101 turf
cn103 rebound
15%
bounce
color/print
%
league gray goalie blue advantage black
25% 25% 20% 15% 10% 5%
turf green rebound orange bounce polka dots
20%
Blue and green were two prominent colors in the High-Tech Performance line based upon the statistics that color has positive effects on consumer moods and overall performance (Fenton, 2019). Orange was also included for accents within the collection. Due to the budget and other production costs, Ace Yellow would be replaced with the print at this stage. All of the selected colors not only reflect the SS21 trend of a saturated look, but they also represent our target market. Gray and black remain a larger portion so that our consumers could adopt basics to wear for multiple seasons.
Key items assortmEnt plans
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ATHLETA-PORTFOLIO
purchase order
The table above represents the final purchase order for the SS21 High-Tech Performance line. The purchase order meets the budget of the planned retail sales for May ($18,391.00) with $1.00 remaining.
IMAGE 1: https://www.pinterest.com/pin/272116002462731399/ IMAGE 2: https://www.pinterest.com/lululemon/yoga/ https://www.pinterest.com/lululemon/run/ IMAGE 3: https://athleta.gap.com/browse/product.do?pid=417221172&cid=46694&pcid=46693&vid=1&grid=pds_51_87_1#p dp-page-content IMAGE 4: https://athleta.gap.com/browse/product.do?pid=502383052&cid=1143562&pcid=46693&vid=1&grid=pds_9_85_1# pdp-page-content IMAGE 5: https://athleta.gap.com/browse/info.do?cid=1074427&mlink=34,Custom_ ValuesDesign&clink=34&nav=hamnav%3AOur%20Values%3A%3ADesign%20Approach#design IMAGE BOARD 6: https://www.pinterest.com/fabletics/myfabletics-everywhere/ + https://www.pinterest.com/lululemon/yoga/ https://www.pinterest.com/lululemon/run/ IMAGE 7: https://www.pinterest.com/lululemon/yoga/ https://www.pinterest.com/lululemon/run/ IMAGE 8: https://www.pinterest.com/lululemon/yoga/ https://www.pinterest.com/lululemon/run/ IMAGE 9: www.lululemon.com IMAGE 10: https://www.pinterest.com/pin/229754018474806000/ IMAGE 11: https://www.pinterest.com/pin/455637687291334068/ IMAGE BOARD 12: https://www-wgsn-com.proxy.library.kent.edu/content/board_viewer/#/83902/page/1 IMAGE BOARD 13: https://www.doneger.com/dcs/Forecasts/SS21-Forecast-Active.html + www.pinterest.com/activewear IMAGE 14: www.pinterest.com/hightechactivewear IMAGE 15: https://www.pinterest.com/lululemon/yoga/ https://www.pinterest.com/lululemon/run/ IMAGE 16: https://www.pinterest.com/pin/229754018477043222/ IMAGE 17: https://www.pinterest.com/pin/229754018471036963/ Page â&#x20AC;&#x201D; 36
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i mage credits
EMILY ZAPPI
ATHLETA-PORTFOLIO
referen c es Athleta. “Workout Travel & Yoga Athletic Clothes for Women: Athleta Near You.” Workout Travel & Yoga Athletic Clothes for Women | Athleta Near You, 2020, athleta.gap.com/ stores#section-browse-by-state. Bloomberg. “After 268% Rally, Lululemon to Share Plan for Propping Up Growth.” Shibboleth Authentication Request, 2019, sourcingjournal-com.proxy.library.kent.edu/topics/ business-news/lululemon-growth-plan-preview-148766/. Danziger, P. (2019, September 4). How The ‘Power of She’ Will Propel Athleta To $1 Billion In Sales. Retrieved from https://www.forbes.com/sites/pamdanziger/2019/09/04/ how-the-power-of-she-will-propel-athleta-to-1b-insales/#1c055871132e Doneger Creative Services. Activewear Forecast S/S 2021. Retrieved from https://www.doneger.com/dcs/ Forecasts/ SS21-Forecast-Active.html Fenton, C. (2019). Active Style Trend Concepts S/S 21: TransForm. Retrieved from https://www-wgsn-com. proxy. library.kent.edu/content/board_viewer/#/83905/page/1 Gap Inc. Brands, 2020, www.gapinc.com/content/gapinc/html/ aboutus/ourbrands.html. “Gap Revenue 2006-2019: GPS.” Macrotrends, 2019, www. macrotrends.net/stocks/charts/GPS/gap/revenue. Hamanaka, K. (2016). Athleta Unleashes One of Its Largest Campaigns Focused on Women’s Empowerment. Retrieved from https://wwd-com.proxy. library.kent.edu/fashion-news/ready-to-wear/athletaunleashes-one-of-its-largest-campaigns-on-womensempowerment-10410897/ Harman, J. (2019). Active Materials Trend Concepts S/S 21. Retrieved from https://www-wgsn-com.proxy. library.kent. edu/content/board_viewer/#/83572/page/1 Kenneally, Ivan. “Lululemon Looks Beyond Yoga Wear to Revitalize Sales.” Shibboleth Authentication Request, 2014, sourcingjournal-com.proxy.library.kent.edu/topics/businessnews/lululemon-looks-beyond-yoga-wear-revitalize-salesik-11042/. Meyersohn, Nathaniel. “Athleta May Be the New Gap’s Best Hope for Survival.” CNN, Cable News Network, 7 Mar. 2019, www.cnn.com/2019/03/07/business/athleta-hill-citylululemon-gap/index.html. Mintel. “The Activewear Consumer.” Shibboleth Authentication Request, 2018, academic-mintel-com.proxy.library.kent.edu/ display/923992/?highlight#hit1. O’Connell, Liam. “Total Revenue of the Global Sports Apparel Market 2012-2025.” Statista, 29 Nov. 2019, www.statista. com/statistics/254489/total-revenue-of-the-global-sportsapparel-market/.
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“TOUGH COTTON “Technology: CottonWorks.” CottonWorks, www.cottonworks.com/topics/fabric-technology/ performance-technologies/tough-cotton-technology/. Salfino, C. (2019, July 11). High-Tech Natural Fiber Sees Added Interest for Outdoor Apparel. Retrieved from https://sourcingjournal-com.proxy.library. kent.edu/topics/lifestyle-monitor/out door-retailer-summermarket-natural-fiber-159145/ Salfino, C. (2019, May 30). Here’s How the Activewear Market Can Continue to Grow. Retrieved from https://sourcingjournal.com/topics/lifestyle-monitor/ activewear-apparel-market-growth-cot ton-154225/ Zaczkiewicz, Arthur. “Nike, Athleta, Moncler Lead Industry in Omnichannel Success.” Shibboleth Authentication Request, 2019, wwd-com.proxy.library.kent.edu/business-news/retail/ newstore-omnichannel-report-1203350702/.
EMILY ZAPPI
the team
emily zappi
bailey risch
producer
data c o n t r i b u t o r
ATHLETA-PORTFOLIO
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