"em erse studios" by Emily Lacey-Boyce

emerseretail.com

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2020

R E R S E S M II V E M M V E II M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SENSORY . . . . . . SENSORY

EMILY LINDSAY N0733170

SHOPPING

MAIN REPORT WORD COUNT: 9000 EXEC SUMMARY WORD COUNT: 900

SENSORY

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ETHICAL D E C L A R AT I O N

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ETHICAL D E C L A R AT I O N

CONTENTS 1. Introduction 1.1 Project Rationale 1.2 Aims and Objectives

4. The Market 4.1 Defining Digital and Multi-Sensory Technology 4.2 Market Analysis: The UK Luxury Fashion Industry and Experience Economy 4.3 Trends Of Influence 4.4 Ansoff Matrix 4.5 TOWS Matrix 4.6 PEST Analysis

8 10

2. The Opportunity 2.1 Stage 1 Reflection 2.2 Secondary Data Review: The Balance Between Humans and Technology 2.3 The Problem: Retail Apocalypse 2.4 The Opportunity: Retail Reinvented

13 15 16 18

32 38 40 41 42

5. The Competitors 5.1 Case Study: Farfetch 5.2 Competitor Analysis 5.3 Positioning Map 5.4 Porters 5 Forces

3. Methodology 3.1 Research Design 3.2 Sample 3.3 Data Collection Methods 3.4 Advantages and Limitations

22 23 24 28

45 46 47 48

9. C o m m u n i c a t i o n s P l a n 6. The Big Idea 6.1 The Business Conception 6.2 Business Overview 6.3 Business Aim and Objectives 6.4 The Business Model 6.5 Brand Vision & Mission 6.6 Brand Pyramid 6.7 Brand DNA: Branding Guidelines

51 52 53 54 55 58 59

7. T h e C o n s u m e r 7.1 The Target Market: UK Female Gen Z & Millennials 7.2 Secondary Consumers 7.3 Consumer Segmentation

65 68 69

9.1 AIDA & DRIP Models 9.2 Communications Plan 9.3 Digital Media Execution 9.4 Physical Media Execution 9.5 Brand Launch 9.6 Store Overview

77 79 80 81 82 84

10. Brand Management 10.1 Raising Capital & Start Up Costs 10.2 Profit and Loss 10.3 Cash Flow 10.4 Sales Forecast 10.5 Sensitivity Analysis

88 93 95 97 98

11. Measuring Success 11.1 Key Performance Indicators 11.2 Risk Analysis

8. Marketing Strategy 8.1 Marketing Aim and Objectives 8.2 Three Year Marketing Overview and Timeline 8.3 Marketing Mix: 5Pâ&#x20AC;&#x2122;s

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1 2 . T h e Fu t u r e 12.2 Future Growth: Ansoff Matrix 12.3 Conclusion 12.4 Executive Summary

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106 107 108

Over and out FMB!

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A C K N OW L E D G E M E N T S

C K N OW L E

Firstly, I would like to acknowledge the fact that against all odds, I have finally completed my stage 2 report. A big thank you to my family; especially my Mum, my Dad and my Step-Dad for their ongoing support and confidence in me, as well as the financial aid! Thank you to my friends and peers, for always supporting and believing in me, as well as scraping me off the floor when I didn’t think I could do it anymore. Abi, Ellie, Claud and Chloe, I could not have done it without you. A huge thank you to my personal tutor Pinky Bazaz who has put up with countless tears, meltdowns, stupid questions and everything else in-between. From her, I have learnt “Emily, there is no such thing as a stupid question!”. I always joke that is if wasn’t for Pinky, I would have dropped out of uni by now, but its the truth. She pushed me to keep going and work harder, and was always there for me with her words of wisdom every time I burst into tears mid sentence in our 1-1 tutorials. Thank you to Tom and the rest of the FMB staff for the fabulous teaching, knowledge and support. And a big thank you to everyone else that has helped me through some of the toughest months of my life. To have been able to complete my degree is a massive personal achievement and this piece of work will be something I will always hold close to me.

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INTRODUCTION 7

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1.1 P R O J E C T R AT I O N A L E R O J E C T R AT I O N A Research exploration undertaken in stage 1 looked to investigate the digitalisation of fashion retail stores, its meaning and its impact on the future of retail. The research area of higher-end brands implementing digital technology into their stores is under-researched and under-represented; with it being not only a niche topic but also something relatively new with the UK sector. The rationale for conducting this project is to produce a body of work which reflects the previous knowledge and current interest gained on the topic; ultimately aiding the progression of a feasible and commercial business proposal and concept.Â

ALE

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The previous research conducted highlighted brands that have invested in digital technology within their stores, which found very few of them are providing any real benefit to consumers or the stores themselves. Further research concluded that the multifaceted consumer is one of the main trend drivers, and like many other industries, brands within the fashion industry are constantly having to keep up with these digital reliant consumers to stay relevant. In the 2019 State of Fashion report by McKinsey and Co, it was stated that a key pain point for modern consumers, who continue to expect better experiences, are frustrated with the time lag between discovery and purchases. Companies within the luxury fashion market are increasingly focusing on reducing this source of friction and launching new technologies to enable a smooth and speedy transition from inspiration to acquisition (McKinsey and Co, 2019). From these findings, it was clear that there was a gap within the market that a new business could fill.

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1.2

AIM & OBJECTIVES

AIM & OBJECTIVE aim: The main aim of this report is to create an innovative and modern retail brand offering tech-savvy consumers with a luxury, immersive and multi-sensory shopping experience. By creating this concept, the brand aims to provide long term benefits for its shoppers through a mix of digital and multi-sensory technology in-store, as well as an enhanced user experience from VR advancements and future app support. The concept hopes to resolve the issue of digital and multi-sensory technology within stores being seen as a gimmick to consumers; and not providing any real benefits. The report also aims to build upon preliminary research from previous Future Thinking and Stage 1 reports, as well as providing a full marketing and communications plan furthered by financials.

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objectives: 1.

To efficiently utilise prior research carried out in the Future Thinking and Stage 1 reports, and to present a solid link to the proposed business plan.

To create a commercially and financially feasible brand, with realistic financials and effective communications and marketing strategies.

To successfully manifest a thorough analysis of the current luxury fashion industry and experience economy, as well as outline core consumers and the proposed brands market position.

To highlight the potential benefits and implications of the proposed business plan; analysing both the internal and external rewards and risks, seeking how to overcome those risks and suggest future brand opportunities.

To produce a creative and aesthetic report which successfully portraits em erse studios visual identity, core values, and brand essence, through extensive brand guidelines and a clear narrative.

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THE OPPORTUNITY

S TA G E 1 R E F L E C T I O N

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The justification behind the creation of em erse studios stemmed from the consumer and research insights revealed within the stage 1 report. It was clear from stage 1 findings that digitalisation of fashion retail stores is in its early stages; sitting between the innovation trigger and peak of inflated expectations on the Gartner hype cycle(Gartner, 2020). The use of digital and multi-sensory technology has not yet been fully explored or implemented within the UK luxury fashion industry. And it was found that whilst consumers (Gen Z and Millennials) enjoy the fun behind existing digital technology within stores; many see it purely as a gimmick, not providing any real benefit to their shopping experiences. Further research also highlighted whilst many brands have tried and succeeded, many have failed at the implementation of digital technology within stores (see appendix page for stage 1 Burberry notes). This further shows the prominent gap within the market for a digitalised, immersive shopping experience. The errors made by other brands act as a guide of areas to avoid, and brands that have succeeded in implementing digital technology will inspire the proposed business plan. Thus, the inspiration behind em erse studios was created.

EFLECTIO

2.1

S TAG E 1 K E Y I N S I G H T S 1.

The battle between online vs offline is no more. The two can and will co-exist to provide the best instore experience.

The digitalisation of fashion retail stores isnâ&#x20AC;&#x2122;t limited to the store itself, it goes beyond that; including the digitalisation of how the products are sold and the actors selling them (Emily Lindsay, 2020).

Whilst it may be possible to predict changing consumer shifts within the near future, it can never be certain that the likes of digitalisation will ever fully be implemented and socially accepted within society (Emily Lindsay, 2020).

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2.2

Secondary Data Review:

“Digital initiatives with human interaction.”

T h e B a l a n c e B e t w e e n Te c h n o l o g y and Humans Modern technology is intertwined with almost every aspect of our lives, and the fashion retail environment is no exception. From free in-store Wi-Fi becoming a standard expectation, to growing lines at self-scan checkouts, consumers are increasingly comfortable with ‘tech-driven’ in-store experiences (Duimstra, 2020). But the most inventive of retail initiatives will fall flat if not coupled with excellent customer service. Research from PwC revealed that 75% of consumers want increased human interaction, and they’re willing to pay up to 16% more for an improved in-store experience. Research showed that retailers achieve the best results when humans and technology work cohesively; both pushing the other to reach their full potential. Further research showed that data allowed the opportunity for retail workers to hyper-personalise their interactions based on a customer’s shopping history. This will be increasingly vital moving forward, especially when a reported 91% of shoppers are more loyal to brands that recognise and remember them – helping to give relevant offers and recommendations (Duimstra, 2020). Balancing technology with a familiar, human touch is essential for fashion retailers to thrive within the ever-changing industry. Aspects of both offline and online can be combined to create an unforgettable in-store experience for consumers, as we enter the age of heightened convenience within retail.

2.3

THE PROBLEM: Retail Apocalypse

In a world where digital connectivity rules almost every aspect of our lives, from how we buy clothes, food, how we socialise, consume entertainment, and even how we travel; the past decade has proved that the definition of â&#x20AC;&#x2DC;being connectedâ&#x20AC;&#x2122; has been turned on its head. With the switch from offline to online cultivating many of these aspects, the way consumers shop may be one of the biggest changes of all. With the lift of a finger, an entire summer wardrobe can be delivered straight to consumers front door within 24 hours of ordering. A completely foreign concept only a matter of years ago.

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Due to the combination of the global recession back in 2009 (Pendery, 2009) and rapidly changing consumer habits causing an influx of online shopping, the high street has catastrophically suffered. The retail landscape is changing at such a speed brands are evidently failing to keep up (Adegeest, 2017).

Across the globe, consumer spending is shifting to that of experience. For many consumers, buying clothes is no longer their top priority. Fast fashion fixes for goods we donâ&#x20AC;&#x2122;t need are being replaced with experiences that provide a different type of satisfaction. Socialising, travelling, and eating out have become priority purchases for Millennials and Generation Z (Adegeest, 2017). This has caused a significant strain of fashion retailers across all market levels, and they are all being forced to reinvent themselves to seem desirable to consumers again. The traditional brick and mortar businesses are becoming obsolete and the reality of the in-store environment is having to change to incorporate new shopping experiences. However, e-commerce is no sustainable replacement for the experience of shopping in-stores; feeling a product, being able to try on before you buy. Consumers, especially those of Millennials and Gen Z, still prefer to shop in-stores, but brands are failing to meet consumer demands and rival the online experience (Adegeest, 2017).

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2.3

T H E O P P O R T U N I T Y: Retail Reinvented

Whilst the threat of the retail apocalypse may become very real, the problem does, however, create a gap within the market which needs to be executed promptly and successfully. A study conducted by Criteo, a Commerce Marketing Company, found that 65% of Gen Z consumers dislike buying things without being able to touch and feel them; as well as 34% of them stating they frequently research products online but will purchase them in-store (Van Elven, 2019). In the same study, Chief Strategy Officer of Criteo, Jonathan Opdyke, stated: â&#x20AC;&#x153;While specific shopping habits may vary, Gen Zers are native omnishoppers who like to visit stores but still prefer to take care of their shopping needs online. To deliver a personalised experience on all touch-points, brands and retailers need to employ a data-driven approach to connect Gen Z customers with unique, on-trend productsâ&#x20AC;?.

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M a r ke t Drivers:

Consumer Behaviour:

Omni Channel Engagement

Blending Demographics

Prosumerism

Need For Transparency

Micro Influencers

Demand For More Innovative Experiences

NOwnership

Demand For Luxury

Storefront Salvation

Omnichannel Communications

Circular Store Design

Instant Gratification

Personalisation

Demand For Sustainable Alternatives And Packaging

Digital Technology

Brand Transparency Rise Of Meaningful Social Media Engagement Digital Initiatives Meet Human Interaction Sustainable Packaging Accessible Luxury Experimental Retail.

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2.4

CONSUMER TESTING Initial consumer testing was carried out in order to see whether em erse studios was a commercially viable business. An online survey was sent out to 18-35 year-olds to gain further insight into their interests and opinions around the subject area, and whether the proposed business concept would be of interest to them. See appendix page for concept testing feedback.

METHODOLOGY 21

3.1

RESEARCH DESIGN For the research, it was paramount to undertake a mixed-method approach, using a range of methods including both primary and secondary research, as well as gaining a combination of qualitative and quantitative data. The exploratory research gained meant that consumer perceptions and behaviours were accessible, as well as allowing a better understanding of the business opportunity and the target demographic. Secondary research was predominantly used to fill the gaps in which primary research could not fill. Secondary research also acted as a base in which primary research could support and build upon, to strengthen and validate both of the research methods.

SAMPLE The intended sample of participants consisted of female Gen Z and Millennials (18-35), including students, graduates and working professionals, mainly within the middle-class demographic and from numerous ethnicities. Whilst male Gen Z and Millennials were used within the research, it was decided that they would not be included in the brands target demographic due to only a small percentage of the taking part within the research.

3.2

3.3

D ATA C O L L E C T I O N METHODS

Secondary Research Articles, Scholar Journals, Books, Trend Reports, Websites and Web Pages, Magazines Secondary research was used to gain further insight into the current market environments relevant to em erse studios as a new company and entrant. The research was used to further understand the potential opportunities and risks that are involved with creating and launching a new brand into the external market, as well as the threat of competitors. Secondary research was also used to gain knowledge into the financial side of a new business, focusing on B2B aspects as well as B2C.

Case Study A case study was carried out for the brand Farfetch, to better understand the brand, focusing on their strengths, weaknesses and product offering. It provided an in-depth competitor analysis of the brand, providing a useful comparison to em erse studios. The case study also highlighted any gaps within the current market, which allowed for a strategic business plan to be created for em erse studios.

Field Observations Field Observations were intended to be carried out to gain a deeper understanding of the use of digital and multi-sensory technology in more high-end, fashion retail stores. Staff interviews were planning to be conducted as well as customer ethnographies. The following London stores were going to be observed and recorded: Farfetch, Dover Street Market, The Samsung Experience Store, and Tiffany and Co. in Covent Garden. Further Field Observations were also planned to be carried out to find the brandâ&#x20AC;&#x2122;s store location. A footfall observation was going to be recorded around the five chosen areas of London; Covent Garden, Oxford Street, Mayfair, Spitalfields and Shoreditch. A general ethnography and footfall count was also planned to be carried out at the 5 locations to help with choosing the store location. Due to the current pandemic and closure of stores, physical field observations were unable to be carried out as planned. So in order to gain an equal understanding, thorough secondary research was carried out instead. Sources from Business of Fashion, Vogue, Mintel and Drapers were used, as well as LS:N Global and the brands general websites. Focus Groups 5 Females aged 21-23 Face-to-face focus groups were also looking to be completed to further explore the perceptions, opinions and beliefs (SladeBrooking, 2016) of three separate groups of individuals aged 18-35. The first focus group planned to be carried out was with a group of 18 year-old fashion students at Deferrers Sixth form Academy. The second, a group of 19-25 year-old students at Nottingham Trent University, and finally, a group of 26-35 year-olds working within a creative based industry (e.g. publishing, fashion buying). The three focus groups aim to provide a vast range of opinions of all ages within the target demographic, from students to full time working professionals. Focus groups were planned to be carried out face to face but due to the current pandemic circumstances, focus groups had to be done over the social media application, WhatsApp. Participants were asked question over the messaging service and discussed accordingly. Due to these circumstances, only one focus group was able to be conduced. Industry contact Debra Hepburn: Founding Partner of RBH Creative Communications; a communications agency focusing on creating insightful marketing strategies for a variety of brands within a range of industries. Debra was spoken to via email. She was contacted to secure a more specific and focused insight into the bridging of the Stage 1 report and Stage 2 rationale. Debra provided a vast range of further secondary research, based around digitally enhanced stores / experiences and consumer behaviours, as well as her personal insights and opinions from working in the creative sector. 25

Industry contact Steve Robinson: Founder and Store Manager of Bluewater; an independent Womenswear boutique hosting an array of premium brands. Steve was contacted via email and spoken to over the phone. Steve was contacted to gain further insight into the B2B side of a luxury retail store, the logistics of working with and stocking wholesale brands, as well as item markups and physical store layouts.

Industry contact Ian Burns: Managing Director of Cameron Homes. Ian was spoken to seek out financial advice for my business. Ian has a vast understanding of property and a sound knowledge of business finances. He provided thorough insight into start-up costs and overheads, as well as aiding in the creation of profit and loss accounts, sensitivity analysis and the marketing budget.

Industry contact Ari Peralta: Founder and CEO of Arigami, a Strategic Research Consultancy Dedicated to Wellness (Arigami, 2020). Ari was previously interviewed for the Stage 1 report to gain an understanding of the types of digital technology with the retail industry as well as the cause and effect of them. For Stage 2, he was contacted to gain further insights into specific brands and technologies that would realistically be able to be implemented into a store like em erse studios. He was also contacted for feedback on the proposed business plan. He was initially contacted via email but with no response, he was then contacted twice via Instagram direct messages. Due to him not being at work for personal reason, he stated he would respond when back at work. However, insights were found from other research methods due to him not being able to provide these insights in line with the report deadline.

Online Survey A consumer testing survey was conducted to gain opinions and thoughts on the current business idea. The survey was also used to gain further insight into target consumers shopping and spending habits, as well as their in-store preferences. The survey was sent out to both men and women, aged 18-35. This was to ensure that the data collected was valid and spoke truly of the opinions and beliefs of the target demographic. Statistics collected were further used to validate secondary research used within the report.

Instagram Poll Questions Account following: 944 Poll 1 Date: 20th March 2020 at 3 pm Poll views: 427 Poll participants: 220 Engagement: 51% (poll participants รท poll views x 100) Poll 2 Date: Wednesday 1st April 2020 at 4 pm Poll views: 372 Poll participants: 150 Engagement: 40% (poll participants รท poll views x 100) A series of Instagram polls were conducted to gain target consumers preferences on em erse studios branding; such as logo, colour schemes and fonts. Over 200 participants responded. This way of collecting quantitive data was effective as it was easy to produce, and visually showed participants the different options.

3.4

A DVA N TA G E S & L I M I TAT I O N S

A thorough analysis of the advantages and limitations of each data collection method was conducted. See Appendix Chapter 3 page 16.

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THE MARKET 29

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4.1

D E F I N I N G D I G I TA L & M U LT I - S E N S O R Y TECHNOLOGY

As discussed in the stage one report; it was found that there was no set definition for â&#x20AC;&#x2DC;digitalisationâ&#x20AC;&#x2122; of fashion retail stores. The digitalisation of stores is the idea that these stores are further enhanced through the use of digital and multi-sensory technology, ultimately benefiting consumers and their shopping experiences. The types of technology that fit under the umbrella that is digital and multi-sensory technology include: Artificial Intelligence (AI), Virtual Reality (VR), Augmented Reality (AR), becon technology, and RFID technology mirrors.

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Digital technology - throughout this report, the term digital technologwill be used to broadly refer to as any of the below terminology, that fit under the definition of digitalisation. Virtual Reality (VR) - A technology which generates 3D worlds with the aim to fool the observer into believing that they are fully immersed in the computer-generated environment by means of motion tracking and detailed graphics (Gala, 2016). Augmented Reality (AR) - A technology which superimposes realistic looking objects onto the background scene of the observer giving the illusion that the computer-generated object is actually present as part of the real scene (Gala, 2016). Artificial Intelligence (AI) - Artificial intelligence is the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings. Example of AI include using a robot to help locate specific items, or a markup matching service to find you correct shade in foundation, lipstick etc. Multi-Sensory Technology (MST) - Multi-Sensory technology refers to sensory delivery technologies such as lighting, sound, scent and temperature systems that work is synchrony (Peralta, 2020). RFID technology - Radio frequency identification is a tracking technology that uses small tags or chips within clothing labels to transmit a signal to remote scanners, often within virtual mirrors (Bianchi, 2017)

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4.2M A R K E T A N A LY S I S : The UK Luxury Fashion Industry and Experience Economy “Having such an intimate relationship, luxury houses are becoming increasingly influenced by Gen Z desires. From the Hypebeast revolution, with every fashion house now habitually fronting their collections with sneakers, to prioritising their ethical values - the industry’s becoming increasingly conscious with Versace, Gucci, Burberry, John Galliano, DKNY and Chanel all throwing out fur last year, once the holy grail of luxury fashion.” (Bargeron, 2019)

It should be noted that the UK luxury fashion industry was focused on due to the cost of sales from luxury goods mirroring the expensive implementation of digital and multi-sensory technology within the store. High sales are needed to keep up with the cost of the store. Further to this, according to Business of Fashion, Millennials and Gen Z are A will make up 45 percent of the luxury market by 2025. As a result, designers are adapting to revolve around this brand new society brought up online, accustomed to immediacy, vibrant visuals and a dynamic belief that anything is possible, thanks to the power of the internet (Bargeron, 2019).

experience economy:

“72% of Millennials prefer to spend their money on experiences rather than material objects.” (Woodworth, 2018).

The Experience Economy can be defined as an economy in which goods or services are sold by emphasising the effect they can have on people’s lives. Today, Experiences are their own category (Gupta, 2019). The concept of experience economy comes from Joseph Pine and James Gilmore, who suggested that goods have now become commodities. Goods and services are no longer enough for consumers, so businesses must create experiences instead to survive (Stark, 2017). The shift in change taking place within the UK’s current luxury fashion industry is taking place at a deeper level; and is fundamentally reshaping the industry as a whole. Affluent consumers are progressively moving towards a shared economy where they seek a more emotional connection online. This transformation of the luxury industry goes hand in hand with the generational shift in these wealthy consumers. Gen Z and Millennial consumers are now driving this influx and growth of luxury sales across the globe. However, current consumer trends aren’t just restricted to the younger generations; with these changes transcending to even the baby boomer generation. This development has be coined as the “Millennial-minded transformation of luxury” (Woodworth, 2018). 34

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Beyond a brand and the products it offers, consumers are also wanted to live more authentic, unique experiences that are easily shareable online. Walpole, the trade body for the UK luxury sector, stated that the sales across the UK luxury sector has grown by 49% over the past four years. New research suggests that the UK luxury sector is now worth an estimated £48 billion, with exports topping £38 Billion and employment reaching 156,000 (Wightman-Stone, 2019). Whilst statistics show the increasing success of the UK luxury fashion industry, it is clear consumers are wanting more than just luxury material consumption. Divia Thani stated in an article “Is Fashion Ready for the Experience Economy?” for Business of Fashion: “The new luxury is not buying a branded bag, it’s swimming with dolphins, hiking mountains, visiting far-flung amazing places — and then sharing the images on your phone” (Thani, 2016). The mere material product consumption is no longer enough for the modern consumer. It has evolved into providing more immersive experiences to these consumers. Luxury brands need to re-visit the drawing board if they are to delve into the experience economy (Gupta, 2019).

4.3

MACRO & MICRO TRENDS: Trends of Influence Storefront Salvation An examination of the context that has led to an unprecedented number of store closures in recent years. Lack of purpose and a fear of new technologies have driven a renewed push to consider not only when and where to open stores, but what the stores should do. Bricks-and-mortar stores still serve a purpose, but to adapt, retailers will have to combine the best technologies from e-commerce with the tactile, present quality of in-store browsing. As retailers embrace future stores that are not weighed down by technology but supported by it, new spaces will adapt to better meet customersâ&#x20AC;&#x2122; needs (Guther, 2018).

NOwnership NOwnership, a term coined by Blake Morgan of Forbes, is the idea that consumers are valuing experience over â&#x20AC;&#x2DC;thingsâ&#x20AC;&#x2122;; they are choosing to experience things rather than owning things. Studies have reported that spending money on experience brings more lasting joy compared to spending money on products or possessions. And particularly for Millennials, it was found the most important things in their life are experiences and relationships instead of possessions. 65% of Millennials are currently saving money to travel, which is more than the average other generations (Morgan, 2019). And now more than ever, even object-based industries are changing to become more experimental and attract millennial consumers. Fashion giant LVMH recently purchased the luxury travel company Belmond, with plans to make luxury travel less about opulent hotels and accommodations and more about one-of-akind experiences (Morgan, 2019).

Circular Store Design. Consumers’ increasing interest in sustainable living is reflected in new retail destinations, where materials, design details and energy use are carefully considered when designing a store. Inspired by the eclectic art and vibrancy of its founders’ home, cult Danish brand Ganni’s new London boutique embodies its commitment to circular strategies across the company, from the store and product design to material re-use. Designed in collaboration with Stamuli Architects, the Soho store features podiums and chests of drawers made from recycled plastic waste, rag rugs fashioned from excess Ganni fabrics, and products displayed in trays made from recycled fabrics. Aligning with its largely Millennial customers’ interest in transparency and mindful consumption, the store has introduced a garment take-back scheme, donating any profits to I:CO circularity research projects (Batliwalla, 2019).

micro-influencers The definition of micro-influencers are influencers with a smaller following, anywhere between 10,000 and 50,000 followers. However, its not necessarily the number of followers as much as how engaged the audience is. Microinfluencers are different as they have specific niche audiences that they are connected to on a deeper level. Microinfluencers have already built the audience a brand may be looking for, and they have already established a trust with them through stories. It is thought that for brands to achieve the best possible ROI on a campaign, its ideal to hire a group of micro-influencers to market the product or service (Wissman, 2018).

Prosumerism Prosumerism is the process of allowing consumers to take part in the design process of services or products, which has led to the lines between consumers and brand producers being blurred. One of the driving forces behind this trend is consumer demand, which has a significant effect on the consumer mindset, increasing their demand for services and products that are partially customisable (Phade, 2018). Prosumers are the online influencers that business leaders and marketers must not just identify but also acknowledge, respect and develop relationships, for their products and brands to thrive (Gunelius, 2010).

Fig.11

Market Development.

Diversification.

Market Penetration.

Product Development.

NEW

When initially conducting the Ansoff Matrix it was thought that the brand would operate a ‘market penetration’ growth strategy by selling existing products into the existing luxury fashion industry. However, after further thought, it could be suggested that em erse studios will operate a ‘market development’ growth strategy, by selling existing products into a new market; a blend of the luxury fashion industry and the experience economy. Since the brand sits within both of these markets, it could be suggested that by merging the two, the brand could penetrate a brand new marketing; thus operate a market development strategy.

MARKETS

EXISTING

4.4

A N S O F F M AT R I X

4.5

T OW S M AT R I X Strengths.

Weaknesses.

A TOWS matrix has been conducted to further the understanding of the external threats and opportunities the brand will face as a new market entrant, before understanding how these will inform its internal strategy.

- em erse studios USP and brand identity acts as a natural strength of the brand. Being one of the first luxury, sensory immersive shopping experiences in the UK acts as one of the brands main unique selling points, as well as its fun, sexy narrative and luxurious persona. The brand sees its self as the consumersâ&#x20AC;&#x2122; peer, their friend. em erse studios are more than just a store, itâ&#x20AC;&#x2122;s a story; an experience that doesnâ&#x20AC;&#x2122;t end as soon as you walk out of the door.

- Due to the nature of a new brand, initial brand awareness will naturally be low in comparison to competitors brands. The reliance on organic growth as well as the paid promotion will be used due to a limited initial marketing budget. This also means that key revenue streams will need to provide profitable before the brand can develop and initiate a wider growth strategy.

Opportunities.

S/O Strategy.

- em erse studios have the opportunity of collaboration with social enterprises and charities that are relevant to the brand monthly themes. For February 2022 the idea behind the theme is to raise awareness for period poverty within the UK whilst selling products such as lingerie, evening wear; things associated with valentines day. A percentage of sales will go towards a period poverty focused charity such as Freedom4Girls. By creating these mission-driven partnerships, it allows for businesses like em erse studios to meet their corporate social responsibly (CSR) whilst also promoting the work and missions of their charitable partner, as well as a chance of profitability from clarifying their wider social purpose to consumers.

Threats.

- Larger and more experienced competitors already operating and dominating the market. More financially stable and a stronger consumer base makes it difficult for em erse studios to act as a substitute brand for these competitors and attract consumers of the same target demographic. - Changing social and technological macro trends that influence both the industry and consumer needs have the ability to make it increasingly difficult for em erse studios to remain adaptable and relevant, as well as sustainable and profitable.

- The brands authentic ethical concern also makes it stand out from competitors

With the combination of the brands unique implementation of digital and multi-sensory technology, and their strong visual identity, it could put em erse studios in a greater position of authority compared to competitors. Shaped by relevant issues and consumer needs, em erse studios will stay consistent with its overall attractiveness as a brand, enabling successful future growth.

S/T Strategy. With em erse studios refreshing personality and narrative, combined with its modern and meaningful brands values will place it in a position to attract the brands desired target demographic of Gen Z and Millennials. However, a threat the brand faces is that if they do not successfully distil trust and excitement into their target consumers, the consumers will not have a reason to choose to shop at em erse studios as opposed to competitors. Whilst em erse studios have a similar product offering to competitors, the brands USP should set them apart enough to be recognised by consumers as a more exciting and innovative shopping experience.

- Due to em erse studios stocking different brands and a new set of stock each month, it could be seen as impractical. The brand will need to ensure research is done each month before buying new stock is ordered to ensure products are not over brought. Otherwise, it could result in large amounts of leftover stock within the stock room which will not only be unsustainable but will also take up much-needed space; potentially creating more costs from the renting of increased storage space.

W/O Strategy. To alleviative em erse studios initial low brand awareness, the brand should focus on building up a strong and loyal consumer base before the initial launch. Through the use of the #retailreinvented launch campaign and targeted guerrilla marketing 2 months before the launch, it should create enough mystery, noise and interest to last up until the launch party and eventually the launch. Attaining and increasing this excitement around the brand should be a key factor the brand will focus on.

W/T Strategy. - With the weakness of initial low brand awareness, em erse studios my find it difficult to distil trust within consumers as well as providing proof of concept; especially with larger, more established competitors operating within the market. - Through the use of a strong marketing campaign, further paid promotion will help to improve engagement within the store as well as across its promotional platforms. To control the risk and ensure engagement is proving successful, the use of regular risk analytics should be used to monitor engagement rates and make sure the consumers are being targeted correctly.

4.6

P E S T A N A LY S I S

A PEST analysis has been conducted to identify any external threats or opportunities within the business environment of the luxury fashion industry. This analysis will aid in devising a strategy that can effectively manoeuvre the competition to maximise em erse studios chance of sustainability and profitability (Murphy, 2018).

- The current interest rates within the UK could affect how much individuals such as well as investors, are willing to invest/borrow. This could affect how the brand raises capital to initially start up the company.

- High levels of tax inflation on certain products could potentially discourage brands like em erse studios from maximising their profits. - The political stability within the UK where em erse studios operates as well as the countries of origins of the stockistsâ&#x20AC;&#x2122; brands, could affect em erse studios profitability and chance of survival.

- The changing exchanges rates within the UK would impact the profitability of em erse studios, particularly if the brand was to engage in international trade with stockist brands that were not based or operated within the UK. The stability of the current would also be an important factor for the brand to consider, as having an unstable currency within the UK would discourage potential international investors.

- Any trade barriers created from Brexit could affect the way em erse studios imports goods to the store from stockist brands. - Any new or exists laws surrounding businesses such as contract law could dictate what em erse studios is and isnâ&#x20AC;&#x2122;t allowed to do. These restrictions could impact the brandsâ&#x20AC;&#x2122; profitability as well as the chance of survival within the industry. 42

- Due to em erse studios utilising digital and multisensory technology within the store, the brand already has a competitive advantage amongst its competitors. The brand will need to constantly and consistently stay on top of the latest technological trends to stay ahead of their competitors and not be stripped of one of their main USPâ&#x20AC;&#x2122;s. The brand has the opportunity to redesign the norm for the entire luxury fashion industry as well as experience economy.

The impact of social factors is not only important for the operational aspect of the brand, but also the marketing and communication aspects. em erse studios will need a thorough understanding of their customers, their lifestyles, attitudes and beliefs to design relevant products and communications that would lead to the brand becoming a success (Murphy, 2018). Class distribution would be an important aspect for the brand to consider, as they operate within the luxury fashion industry. This would mean the brand would need to have a more niche marketing strategy to target certain classes as opposed to the majority of the population.

- The natural threat of similar or the same technologies being diffused into brands and companies within the same market. - The diffusion of similar technology into the industry could lead to competitors copying em erse studios technological process and software (Murphy, 2018). This could result in a potential loss of profit for the brand as customers could be substituting em erse studios for competitors within the same industry. - If em erse studios were to greatly profit from the use of digital and multi-sensory technologies within the store, it could be an option for the brand to reinvent into the research and development of new technologies within the industry which would further raise the level of profits, ensuring for sustainable profits over a long period of time (Murphy, 2018).

COMPETITO

THE COMPETITORS

COMPETITO

5.1

C A S E S T U DY: FA R F E T C H

A case study for the brand Farfetch was conducted to gain further information on one of em erse studios main substitute competitors. See Appendix chapter 3, page 19. for the full case study.

COMPETITOR A N A LY S I S In order to further understand em erse studios position within the wider UK premium fashion retail experience market, a through competitor analysis has been conducted. Competitors have been spilt into three categories; replacement competitors, direct competitors, and indirect competitors. Analysing such competitors allows for areas of current strengths and weaknesses to be highlighted within the market, as well as illuminating potential opportunities for em erse studios to reach to as a new start-up brand. Whilst em erse studios offering is different to any other competitor brand, the following brands have been chosen as they ether offer a similar product, service, experience, or operate in the same or similar market.

5.2

Replacement competitors: similar product offering; but provides consumers with something instead of choosing your product. • Farfetch • NET-A-PORTER Direct competitors: similar products with a similar revenue goal. • My Theresa • Neiman Marcus • Matches Fashion • Browns • Selfridges • Flannels • Harvey Nichols Indirect competitors: similar products with a different revenue goal. • ASOS • House of Fraser • Debenhams

5.3

POSITIONING MAP high brand awareness

higher price

lower price

low brand awareness

5.3

PORTERS 5 FORCESMAP

A Porters 5 forces analysis has been conducted in order to help determine the competitive landscape of the current luxury fashion industry. The information provided by the analysis will be used to strategically plan em erse studios penetration into the industry, and will be referenced back to when making strategic decisions. Threat of new entrants. The general government policies within the luxury fashion industry require strict licensing and legal requirements to be fulfilled prior to a company selling products. This makes it difficult for new entrants to join the industry and enter the market. Furthermore the capital requirement within the industry is significantly high which makes it increasingly difficult for new entrants to set up a company as high expenditures need to be incurred (Murphy, 2018). Through this, the threat of new entrants is low and is a weaker force within the industry. However, the access to distribution networks within the industry is easy for new entrants, as they are able to set up their distribution channels and eventually come into business. With few competitors selling similar product types, it is easy for any new entrant to get similar products on the shelves (Murphy 2018). This factor may suggest that if a new entrant is able to join the industry, they easily will be able to enter the market and set up distribution. This factor would therefore increase the threat of new entrants. Power of suppliers. The ability for suppliers to substitute products would be a medium threat within the industry due to the nature of em erse studios. The brand operates on a wholesale basis, selling an array of luxury brands under one roof. If brands were to pull their products from the store, it could cause consumers to shop at competitors or from the brand directly for the product/s. This could result in suppliers bargaining power a stronger force (Murphy, 2018). However, due to the large amount of luxury suppliers in the current industry, it would not be impossible to find a similar brands offering similar products to substitute, preventing the loss of sales and stock.

Powers of customers. The threat of consumer power is relatively low; a weaker force within the industry. Product prices are standardised by the individual brands, and so em erse studios are unable to discount or inflate prices unless otherwise stated by those brands. This most likely results in the price of products remaining the same across competitor retailers, giving consumers very little bargaining power as wherever the shop product prices will remain the same. To ensure the bargaining power of customers remains low, em erse studios can focus on building up a strong initial customer base. Through strategical marketing and communication tactics, the brand will be able to build up a loyal consumer base, resulting in weaker power of customers.

Threats of substitute products. Due to em erse studios selling exclusively offline and operating purely in a physical sense, it acts as one of the brands unique selling points. Whilst this factor allows the brand to stand out amongst it competitors, it could be also be seen as a weakness. Due to all of em erse studios competitors selling online, the threat of substitution could be strong within the market. Consumers wanting to make a quick purchase online will have no other option but to substitute the brand and shop at competitors. This means that the threat of substitute services is relatively high within the industry. In order for em erse studios to tackle the threat of substitute services, the brands can focus on providing a one of a kind, quality in-store shopping experience for its consumers. The brand should focus on building a strong brand presence when penetrating the industry, and making their USP clear, so consumers can differentiate them from its competitors. Once a strong customer base has been built, its will ensure consumers do not shift easily to the substitute services.

THE BIG IDEA

USINESS C

6.1

B U S I N E S S C O N C E PT I O N 1. Secondary research is conducted to further understand the market health and challenges, as well as current trends with the UK luxury fashion market and experience economy. Primary research is conducted through industry expert interviews and field observations. 2. Through conducting primary and secondary research, both indicated / highlighted 3. Further research in the form of instagram polls and industry contacts were utilised to gain a deeper insight into consumer attitudes and values, as well as the financial side of operating a B2B company as well as B2C. 4. Concept testing of the proposed business idea took place in the form of an online survey and focus groups. The target demographic for em erse studios, Gen Z and Millennials were the sample for both these research methods. Concept testing found that 84% of participants would be interest in em erse studios and would visit. 16% said they liked the concept but it doesnâ&#x20AC;&#x2122;t interest them. From the focus group participants also liked the concept and enjoyed the fact there is nothing currently like it within the UK markets. Participants reacted well to the themes and found them to be relevant within todays current society.

â&#x20AC;&#x153;I think its a really good idea because I always get really bored when a shop is always the same with the same concept, and I think its so cool to relate it to society and the global issues. I feel like people will be shopping and learningâ&#x20AC;? Jude Djebbar, 2020

Fig.7

5. The creation of the worlds first sensory immersive luxury fashion shopping experience; em erse studios.

6.2

B U S I N E S S OV E RV I E W

“We are em erse studios, a fresh, sexy, innovative retail space providing the modern consumer with a sensory, immersive shopping experience. Sensory stimulation is at our fore front and ethical luxury is at our core. As a brand, we crave to provide you with long term benefits that don’t just end as soon as you walk out of the door. Exclusively offline, em erse studios exists to provide an elusive blend of both the online and offline world to you, our customers; the collaborative, the curious, the digitally woke. We aim to act as a transparent and authentic brand, not driven by profit but driven by bringing awareness to important, relevant social issues through the use of our stores monthly themes and brand communications. With consumer who’s tastes change as frequently as British weather, at em erse that is exactly what we cater to. At the start of each month, a new theme will arrive instore. Exclusive brands, socially relevant issues and luxurious products await you. Our online platform exists as our consumers informative hub, alongside our social medias. We aim to please, giving you exactly what you want. Retail, reinvented.” 52

6.3

Business Aim and Objectives

AIM: To increase brand awareness and sales in order to breakeven within the first year, with a minimum profit of ÂŁ100,000.

OBJECTIVES: To gain a minimum of 50k Instagram followers, and a minimum of 10k twitter followers within the first year. To have a minimum store conversion rate of 40% within the first 3 months, and a minimum of 50% over the next 6 months. To have a minimum of 35% customer retention rate within the first year, whilst maintaining a 65% customer acquisition rate. To have a footfall rate of at least 40% per day within the first 3 months. To sell a minimum of 20,000 units within the first year.

53 53

6.4

THE BUSINESS MODEL LUXURY FASHION BRANDS

The brand will operate a B2C model. The B2C model will be used to sell directly to consumers. Brands products will exclusively be sold in store directly to consumers. The brand will have a website which will act as an informative platform but nothing more. em erse studios will sell offline only. attract

TARGET CONSUMERS

6.5

. . . . . .

BRAND VISION:

. . . . . .

em erse studios seeks to challenge the current boundaries within the luxury fashion industry and experience economy. The brand hopes to create and attain a loyal consumer base, with plans to grow the number of stores in the near future. em erse studios also aims to provide Gen Z and Millennials with a unique and innovative space to change their shopping experiences for the better. The brand hopes to not only drive profits but also raise awareness on current social and global issues. em erse studios only works with brands who value the same ethics as em erse studios and their consumers. Sustainability and ethical labour of how products are made are very important to the brand. em erse studios social media platform not only acts to engage and entertain consumers, but also educate them on current social issues and how we as people can help. This awareness will be built through the brands monthly themes, as well as when marketing and communicating to em erse studios target consumers.

BRAND MISSION:

To actively aid in reinventing the way modern consumers shop. em erse studios looks to harness the existing digital and multi-sensory technology available within the market and utilise it in order to create an educational, immersive and sense-stimulating shopping experience. The brand hope to further consumers experience beyond them leaving the store, in order to provide them with more long-term and meaningful benefits. Retail, reinvented.

. . . . . .

THE 3 E’s OF EM ERSE STUDIOS Experience

One of em erse studios main USP’s is that it will provide consumers with a sensory and immersive shopping experience that doesn’t end as soon as they leave our store. Whilst the store is the focal point / hub of em erse studios, in order to provide consumers wit the best possible experience the brands also focuses on how to benefit them post shopping.

Excite

With being one of the first brands within the UK luxury fashion industry to provide a service like this, em erse studios aims to create an exciting aura around the brand and distill it within consumers when experiencing the store.

Educate

em erse studios believe then when shopping for luxury goods, being educated on its functionality and attributes are very important. In store customers will find specialised and knowledgeable staff who can provide shoppers with an in-depth knowledge of the brands and products within the store. Research conducted in the concept testing focus group found that consumers liked the idea of having specialised and knowledgeable staff within em erse studios store and felt it would be beneficial.

“Them (specialised store staff) being educated on the items and almost having a story actually sells items so much better” - Claudia Golland, 2020 “Yeah if I’m buying a luxury item I wanna know what resources have been used for it, like what is making it good quality” - Jude Djebbar, 2020

6.6

REVENUE STREAMS

em erse studios will have two revenue streams. The first, main revenue stream will be from the brands B2C business model. Consumers will buy directly from em erse studios store creating profit for the brand. The second revenue stream will come from online sales of event tickets and â&#x20AC;&#x153;fit of the monthâ&#x20AC;? pre-order sales, which will be pre-ordered online and collected in store. These will be the only things sold online by em erse studios.

6.7

BRAND PYRAMID Brand essence.

A fresh, new luxury retail store providing consumers with the perfect blend of online and offline features. em erse studios aims to provide consumers with sensory stimulation, premium products, social relevant themes and an unforgettable, immersive experience. Digital initiatives with human interaction. Omni-channel amplified.

Brand persona.

sexy, transparent, immersive, sensuous, plush, innovative, elusive, educational, ethical.

Emotional benefits.

In a world where shopping has become too often a mere unconscious, out of touch and tiresome task, em erse studios exists to stimulate both the physical and emotional senses, through the use of multi-sensory and digitally immersive technology, as well as human interactions within a luxury environment. Through the use of ASMR visuals, sense stimulating smells and specialised playlists, em erse studios aims to provide both physical and emotional benefits to shoppers. The brand hopes to inspire customers with a new an exciting way to shop for their favourite luxury brands and trends.

Functional benefits.

The brand aims to provide function benefits to consumers through the use of specialised and knowledgable members of staff and digital technology. RFID technology mirrors will feature in em erse studios changing rooms to allow consumers to easily request further sizes, assistant from a member of staff, or to simply view the product as it would feature on a website. This allows the consumers shopping experience to be simplistic and more cohesive. ASMR visuals on digital screens will be strategically placed around the store to aid in emotional benefits when consumers are walking through the store or in the queue to pay.

Features and attributes.

As well as the features and attributes mentioned above, the brand will provide consumers not only with a physical store but also with an online platform to continue the em erse studios experience. As well as this, the brand will have a strong online social media presence across Instagram, Twitter, and Facebook.

6.8

BRAND DNA: BRAND GUIDELINES

em erse studios. Retail Reinvented. immerse [verb] 1. 2.

to involve oneself deeply in a particular activity. to dip or submerge in a liquid.

• immerse: the phrase ‘em erse’ was coined from the term ‘immerse’, blending the first name of the CEO and founder; Emily, with the phrase to create the name ‘emerse’. It was later decided that the phrase would be split into to two; ‘em erse’, purely for the visual benefit on the brands logo and for differentiation. • studios: whilst the term ‘studio’ is used for a room where an artist, photographer, sculptor, etc. works (Oxford Dictionary, 2020), it was chosen to be used within the brand name to show that the store is not just a space for consumers to buy clothes, it is a creative space for them to experience sensory stimulation, digital enhancements and human connections.

logos.

A logo is a companyâ&#x20AC;&#x2122;s first introduction to consumers. If designed well, it can pique the interest of the public and invite them to learn more about the brand (Tailor Brands, 2020). The logo for em erse studios was designed with the brands luxury products and affluent consumers in mind. The use of black and white remains a staple feature of many luxury brand logos. Alternate logo will be used by the brand for marketing and communication purposes. Colour of the logo may vary depending on the brandâ&#x20AC;&#x2122;s theme of the month. In addition, this logo was preferred by 54% of users, when asked to choose out of two similar logos within an Instagram poll. This logo was the most popular among em erse studios target consumers (See Appendix page 48).

colour palette.

OSWALD HEAVY

used for heading, subheadings and small quotes initial colour scheme

montserrat black montserrat semi bold montserrat bold italic used for body text and logo font

KOLLEKTIF REGULAR KOLLEKTIF ITALIC KOLLEKTIF BOLD KOLLEKTIF BOLD ITALIC

core colours

used for short quotes and headings

fonts. 61

visual imagery.

SHOPPING

R E R S E S I M M I V M E V E II M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SENSORY . . . . . . SENSORY SENSORY . . . . . .

. . . . . .

em erse studios imagery will be a collection of primary and secondary high quality photographs and visuals. The general theme amongst visuals will be luxurious, colourful, digital and memorable; as well as social relevant and topical. 62

tone of voice.

Authentic. Luxurious. Immersive. Educational. Bold. Conversational. Sexy. Innovative. Meaningful. Transparent. 63

THE CONSU

THE CONSUMER

THE CONSU

7.1

T H E TA R G E T MARKET: British Female Millennials Building upon research insights from Stage 1, it has been decided that Gen Z and Millennials, more specially ages 18-35, are the most attractive audience for em erse studios to target. Additional research was conducted in order to allow for further consumer segmentation. Research has highlighted key differences in Gen Z and Millennials shopping habits as opposed to other generations; making them a key periphery target market for em erse studios. Whilst both male and female 18-35 yearolds participated in primary research, due to further analysis it has been decided that UK female Millennials and Gen Z will be the brands target market demographic. Initial research found from stage 1 concluded that both Gen Z and Millennials have the biggest ‘cause and affect’ when it comes to digitalisation of fashion retail stores; with one source coining Gen Z as the ‘digital generation’ (Dalby, 2018). Research has found that Millennials in particular are revolutionising the traditional shopping experience and are causing retailers to re-evaluate how they are attracting and communicating to their consumers. Tech savvy Millennials are redefining purchasing habits, by continually interacting with brands through digital channels and looking for a more participative experience with brands. This includes engaging with brands on social platforms, using their smartphones to shop in-store, online product research and comparing prices prior to purchase . Deloitte’s research from 2015, “Navigating the new digital divide” revealed that 47% of all millennial consumers in the UK use social media during their shopping journey, compared to 19% of non-millennials. This generation is plugged into mobile and social shopping, disrupting historically traditional shopping patterns and the market has yet to fully capitalise on these consumer habits (Altair, 2020). 65

. . . . . .

Despite being inundated with digital content, it was suggested that Gen Z still prefer to shop in-store as opposed to online, but they crave a store that can keep up with their tech more than anything (Salesfloor, 2020). But Gen Z and Millennials don’t just care about their shopping experiences. Research from a 2018 Fashion United report has shown that over 80% of Gen Z and Millennials consider a brands environmental and social practices to be just as important as their financial results. Criteria’s they found to be deemed highly important include: positive impact on society and the environment; inclusion and diversity in the workplace; job creation and career development opportunities for employees; and innovative ideas, products and services (Van Elven, 2018). “Millennials are one of the most lucrative demographics to market to, but also potentially the most challenging; the group as a whole is very tech-savvy and quick to adopt new technologies, but they are also notoriously distrustful of commercial advertising and the types of approaches and promotional content that is effective for older generations as a result of this.” Kay, 2019

. . . . . .

PRIMARY CONSUMER: British Female Millennials

UK Female Millennials (21-30) Demographic: Females aged 21-30, medium to high disposable income, degree educated, employed, reside within the UK, more specifically London and surrounding boroughs. Psychographic: C. G. Jung Personality types (MBTI): ENTP - Extrovert, Intuitives, Thinkers, Perceivers. â&#x20AC;&#x2DC;Inventorsâ&#x20AC;&#x2122; (MBTI, 2015). multifaceted, successful, financially stable, aesthetically driven, independent, extrovert, creative, value driven, lead a strong online life, tech savvy, strong morals, values quality products, spends money equally on experiences and products. Behavioural: Actively seeks experiences, early adopters of fashion trends. Spend their disposable income equally on experiences such as holidays, events, and luxury fashion clothing and goods. Strong interest in fashion trends as well as social trends that impact the fashion industry. Enjoys the finer things in life.

SECONDARY CONSUMER: British Female Gen Z and Millennials

UK Female Gen Z and Millennials (18-35) Demographic: Females aged 21-30, medium disposable income, degree educated or still in education, employed or seeking jobs. Reside within the UK, either in London or in cities with good transport links to London. Psychographic: C. G. Jung Personality types (MBTI): ESFP - Extroverts, Sensors, Thinkers, Perceivers. ’Performers’ (MBTI, 2015). intuitive, creative, motivated to achieve their goals, prefers spending money on experiences over products, introverted extroverts, tech savvy, seek a deeper understanding of the world, self educated, strong communicators. Behavioural: Spend their disposable income mainly on experiences and will actively seek them out. Strong social life. Self motivated. Interested in current fashion trend but also loves wardrobes staples that aren’t always trend driven.

7.3

CONSUMER S E G M E N TAT I O N

Bio - Olivia is Hard working and can very easily self motivate. She loves her job and aims to work her way up even higher within the company; an aspiring future editor. She is always planning her next holiday, and finds herself spending her money on experiences rather than materialistic items. She will sometimes treat herself to the occasionally designer handbag or pair of shoes, but most of her disposable income is spent on holidays, trips, social events and experiences. Due to her job role, Olivia is often attending fashion shows, parties and work events. To balance her lifestyle, she is a frequent gym user and does yoga 4 times a week; as well as maintaining a pescatarian diet. Age - 29. Born June 8th, Gemini star sign. Occupation - Head of social media at a fashion and lifestyle magazine, based in Central London Residence - South East London Interests/hobbies - Olivia enjoys shopping in-stores. She will shop online for certain products (often repeat buys, like skincare) but she prefers the shopping experience she gets from physical stores. When not shopping in AllSaints and Selfridges shoe department, she actively scouts out vintage designer goods and accessories for herself, but to also sell. In her spare time Olivia enjoys cooking and baking; anything with truffle in. She also runs a fashion archive instagram account where she posts vintage looks and fashion collections; a homage to the past. Values - Her friendships and relationships. Good food and wine. Kindness and gratitude. Honesty. Olivia really appreciates great skincare products, and is a self-proclaimed â&#x20AC;&#x2DC;skincare junkieâ&#x20AC;&#x2122;. Motivations - Health. Money and success. Doing herself and her family proud. Frustrations - Cheap quality products, and unethical production and labor. Not succeeding at the first try. People who are dishonest.

. . . . . .

MARKETING S T R AT E G Y 7700

. . . . . .

8.1 M A R K E T I N G A I M & OBJECTIVES

AIM:

To increase and maintain brand awareness and engagement of Em Erse Studios, through the use of a strong and innovative marketing campaign, targeted brand ambassadors, PR and press coverage as well as effective online and offline promotional material to convert followers into customers.

OBJECTIVES: To generate strong brand awareness of em erse studios amongst the target consumers by increasing em erse studios Instagram followers by 70% from year 1 to year 2. To build a loyal community of em erse studios followers on Instagram, by achieving and maintaining an engagement rate of 3-4% consistently throughout the first year. To increase sales within store by a minimum of 10% month-on-month within the first year.

8.2

year one - promote. focus: throughout the first year the brands main focus is to increase brand awareness, successfully promote the brands essence, core, vision and mission as well as well as break even within the first 12 months of the launch. overview: within em erse studios first year of operations, the brand will focus mainly on rapidly increasing brand awareness. This will be done through a combination of online and offline promotion, including the #retailreinvented campaign. The brand aims to successful promote em erse studios core values of being an authentic, ethically focused luxury store and brand, using a combination of digital technology and human touch. The brand will also focus on sustaining long term brand ambassadors and evangelists that share the same morals and ethics as em erse studios, to further the brands awareness and increase profit. The #retailreinvented campaign will be used heavily within the first year to really drill down the brands message, core values and offering.

year two - evaluate.

y e a r t h r e e - g r o w.

focus: the brand will continue to target consumers and build up the consumer base by an app launch. It is important for em erse studios to evaluate the first year and learn from negatives and positives. The brand will also aim to increase their group of brand ambassadors to further awareness of em erse studios and the brands core values.

focus: em erse studios focus within the third year is successful expansion and growth. overview: As the brand enters the third year of operations, em erse studios should have built up a loyal and strong consumer base. Brand awareness should have successfully have been built up across the UK, and em erse studios will be planning to expand store locations. The second em erse studios store will be located in Manchaster, England. The operations and logistic should be planned towards the end of the year, with the Manchester store opening in the middle of the brands fourth year.

overview: The app launch will be implemented late within the second year, with the operations and logistics of the app being done earlier on in the year. The app will be used to enhance consumers shopping experience. Users will input their basic data such as name, email and shopping preferences on the app. Beacon technology in-store will then automatically populate consumers wishlist on the app when consumers are in-store; with items that consumers are viewing / looking at. The app with be furthered with the use of AI and AR as well as RFID enabled clothing tags and rails. This will not only significantly enhance consumers shopping experience within the store but it will also hopefully increase brand awareness due to the high level of innovative technology.

8.3

MARKETING MIX: The 7 P’s

Product. em erse studios will sell a variety of luxury goods from household name brands. This includes clothing, handbags, shoes and accessories. em erse studios will act an overarching umbrella for luxury brands and products to sell under whilst simultaneously providing consumers with a sensory immersive shopping experience. The theme of the store changes each month and so will the brands and products within the store. The brands planned to be stocked at em erse studios for the next 12 months include: i.am.gia, STEELE, Victoria Beckham, Gelareh Mizrahi, Florence Given, Vivianne Westwood. Stella McCartney, Sunspel, Free People, Acne Studios, Levi’s, Rag and Bone. Erdem, Max Mara. Vetements, Palm Angels, Comme Des Garcon, JW Anderson. Lazul, Calvin Klein, Frankies Bikinis, Reiss, Needle and Thread, Sea Folly. Burberry, Rixo, Never Fully Dressed. Louboutin, Theory. Balmain, Wales Bonner, Cushine, Daily Paper, L’ENCHANTEUR. Ugg, Skims, The White Company, All Saints, Sporty & Rich, Olivia Von Halle. 7 for All Man Kind, The Kooples, Zadig and Voltare, All Saints. TALA, Lululemon, Sweaty Betty, b_nd, Patagonia, Beyond Yoga, Nike. Savage x Fenty, Agent Provocatuer, Gooseberry Intimates.

Price. The price of B2C goods will be based solely on the markup prices that are specified by the brands being stocked within the store. When the brands themselves introduce discounts on products, em erse studios will be notified and will do the same. This is to ensure that prices across competitor companies stocking the same brands reflect those of em erse studios as well. This is to prevent consumers shopping elsewhere due to lower prices on items. Shoppers spend has been averaged and categories into 4 sections purely to aid in financial calculations. Casual: £40 Regular: £75 Gold: £125 Premium: £375

Place. Through much consideration, it was decided that the physical store would be located within London. Initially, em erse studios was going to be either in Manchester or London. Both locations were research for the best space for em erse studio to set up in but London came out on top. The space found located in Convent Garden was perfect for type of consumer the brand hopes to attract, as well as its high footfall rates and similar market neighbours.

Promotion. It is important that through the brands communication plan that it heightens brands awareness, as well as engaging consumers even prior to the brand launch. Generating interest around the brand prior to launch is paramount as the brand will need to prove commercial feasibility to brands that em erse studios aims to stock in-store as well as prove itself trustworthy and reliable to consumers. Strategies to engage consumers include a blend of both offline and online marketing. Guerrilla marketing will be used 2-3 prior to launch to create buzz and mystery around the brand. Social media promotions will also be used to build brand awareness and excitement, as well as building up a core social media following. Communications in this regard should focus on being informative, engaging and exciting. The communications should want consumers to interact with the brand and follow the brands launch.

People. The initial team for em erse studios prior to launch will be relatively small. The team members prior to launch will consist of brand CEO/founder/store manager, second store manager, free lance marketing staff, photographers and contract builders to fit out the store. As the brand moves into the store launch, retail staff will be hired alongside PR staff and freelance interior designers. This staff force will inevitably grow over time in order to meet the needs and demands of a growing business.

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C O M M U N I C AT I O N S PLAN 76

9.1

A I

D A

AIDA & DRIP In order to build up initial brand awareness, a strong digital marketing campaign (#retailreinvented) will be used alongside mild guerrilla marketing to create buzz around em else studios. Buzz and brand awareness will also be used amongst potential paid influencer collaborations and brand ambassadors.

Creating engaging and exciting content both prior and during store launch, portraying the brands core USP, mission and values, mainly through social media and brand evangelists.

Desire will be built up and gained through fulfilling Millennial and Gen Zâ&#x20AC;&#x2122;s need for beneficial and meaningful retail experiences, through the used of digital and multi-sensory technology, as well as brand transparency. A breakthrough in the current market.

Through working with brand ambassadors and paid influencers, as well as evangelists, its allows for both inorganic and organic promotion and growth of the business. Social media targeting ads will also be used to gain further customers. Further in-organic and organic promotions will be used to retain these customers. 77

D R I P

Differentiation of Em Erse Studios lies within the core USP of the brand; being a one of the worlds first multi-brand luxury concept store with sensory immersive experiences, digital technology and beneficial human connection.

Proposition as an innovative and sensory immersive shopping experience within the luxury market level, with the brand message being heavily reinforced through the #retailreinvented campaign and brand evangelists.

To inform people of the brand, Em Erse Studios are creating engagement and conversations through social media competitions, PR targeting, a strong marketing campaign, and both inorganic and organic brand promotion.

The challenge is persuading customers to choose to shop at Em Erse Studios as opposed to shopping online or at the brands own stores. Persuasion through promoting Em Erse Studioâ&#x20AC;&#x2122;s differentiation is key, as well as once attaining customers; retaining them for the long term through social media competitions and regular events.

9.2

COMMS PLAN: Digital Media Execution

1.Instagram - Research has found that 73% of Gen Z adults (ages 18-23 years old) actively use Instagram. - Instagram will be one of Em Erse Studios leading platforms for communication, mainly to target consumers and boost brand awareness. Instagram ads will also be used to target consumers with the the initial months of the brand launch. 2. Instagram Stories - Instagram stories will be utilised and updated daily, initially being used to promote the #retailreinvented campaign and the store opening; giving followers a sneak peak into the store interior and exterior. Instagram stories will also be a key player in the launch event, with influencers and bloggers doing an instagram story ‘take over’ throughout the night, getting different opinions from a variety of guests -“While blogs, Facebook and Twitter dominated the social media landscape four years ago, photo and video-based platforms are taking the lead in 2018. Only 51 percent of respondents reported using Facebook in Pew Research Centre’s most recent research with US teens, down from 71 percent in 2014. YouTube, Instagram and Snapchat are far more popular than Facebook among consumers aged 13 to 19, with 85 percent of Generation Z consumers using YouTube, 72 percent using Instagram and 69 percent using Snapchat.” - Van Elven, 2018. 3. Twitter - Twitter will predominately be used for further PR and promotional activity. Twitter will also be used by the brand to deal with customer service issues. 4. Facebook - Facebook will be used as an informative communication for followers; supporting the website, as well as instagram and twitter (pic of facebook page). 5. Website - Em Erse Studios website will another leading platform for the brand alongside Instagram. The website will be used as the brands informational hub, with an array of features ranging from a blog section, a ‘brand of the month’ feature, as well as a browsing page where customers can browse stock that will be in store. The only things that will be sold on the website is event tickets and ‘fit of the month’ outfits, which will be pre-ordered online and paid for, then collected in store. 79

Monthly Instagram Competitions. At the end of each month, a week before a new theme arrives in the store, a competition on instagram will be held for one winner and a friend to be in with the chance of winning two ÂŁ100 Em Erse Studios gift vouchers to spend at the next months shopping experience. Followers will have to guess the stores theme for the next month. To enter the competition, followers must be following @emersestudios instagram, like the competition post, tag the friend they want to bring with them in the comments alongside their guess of the theme, and make sure they are also following @emersestudios, and additionally, share on their stories for an extra entry. Winners will be drawn at random on the Friday before the next theme and will be contacted via instagram DMâ&#x20AC;&#x2122;s. Fitâ&#x20AC;&#x2122; of the month. an outfit curated by in-house stylists featuring a mixtures of the brands that month. Included an outerwear piece, 1-2 top/dress/skirt/trousers etc, pair of shoes and 2 accessories (e.g. sunglasses, bag, belt etc). This will be available to pre-order and buy online but collect in store. It will have a small discount on it due to consumers buying multiple items.

9.3

COMMS PLAN: Physical Media Execution

1. Packaging Packaging used for products at em erse studios will be fully sustainable. Boxes, tissue paper, sealing stickets and bags will be made of a recyclable cardboard and paper blend to hold weight as well as look aesthetically pleasing. The use of sustainable packaging will also appeal to the brands target consumers, further promotion of the brand and increasing brand awareness; as well as further distilling brand values into consumers. 2. Mild Guerrilla Marketing Mild Guerrilla marketing will be used during the first few months prior to launch as well as post launch. It will be used to create excitement and mystery around the brand, making consumers purposely seek out the brand and its purpose. The marketing will simply be the brands logo printer as posters, stickers, on digital screen in and around London and surrounding areas.

9.4

BRAND LAUNCH

Jan 2021 - finalising of service development. Feb 2021 - Moving into the retail space. Delivery of first few months of stock. Send out PR boxes. Launch party at the end of the month. Mar 2021 - Theme title: Girls Just Wanna Have Fun(damental rights). Store opening 1st March. Ticketed event on Monday 8th March 2021; Internationals Women’s Day. Apr 2021 - Theme title: Eco Warrior. Sustainable luxury brands feature. Mirroring the brands values. May 2021 - Theme title: Birthday Girl. It’s em erse studios 1st Birthday! Party wear and all of em erse studios favorite brands. Jun 2021 - Theme title: Pride. The best LGBTQ designers and brands, with unisex clothing. Event on the 9th June to celebrate all things PRIDE. Love is love. Jul 2021- Theme title: Holiday Honey. Holiday and swimwear. Aug 2021- Theme title: Retro Revival. Retro and vintage themed clothing from selected luxury brands. Sep 2021- Theme title: Back To The Grind. Back to uni/work/college wear. Oct 2021- Theme title: Black History Month. Celebrating the best black luxury designers and brands. Event on Oct 7th 2021 with a panel of black influencers talking about the importance of black history month and racial equality. Nov 2021- Theme title: Classic comforts. Luxury loungewear and PJ’s. Dec 2021- Theme title: Santa Baby. Festive wear and evening wear. Jan 2022 - Theme title: New Year, New Me. Activewear and Gym wear. Feb 2022 - Theme title: My Bloody Valentine. Ticketed event on 13th Feb 2020. Event will be a charity partnership to raise awareness of period poverty in the UK.

9.5

S T O R E OV E R V I E W

Address: em erse studios 107 Long Acre Covent Gardens

After a thorough research process, the location of em erse studios first store will be in Covent Garden, London. It should be noted that the store location has been selected subject to a physical visit due to current pandemic circumstances. Oxford Street, Mayfair and Spitalfields were all considered for store locations due to their high footfall rates and a high concentration of store within a similar market. Covent Gardens was chosen as the store initial location due to its high footfall rate and fellow high end fashion neighbours. Covent Garden is iconic for its shopping and theatres, being at the forefront of Londonâ&#x20AC;&#x2122;s retail offer; with an estimated annual spend of over 1bn (Hanover Green Retail, 2019). The store is directly opposite one of Londonâ&#x20AC;&#x2122;s busiest underground stations; being strategically positioned at the meeting of Long Acre and Neal Street (Hanover Green Retail, 2019). 44 Million people visit Covent Garden every year, with over 120,000 people visiting everyday (Hanover Green Retail, 2019). 87 Million people use the Covent Garden underground station every year. Research carried out by Accenture suggested that amongst Gen Zs, the majority still prefer visiting stores to make their purchases. Gen Zs act differently both in stores and online compared to Millennials. Higher percentages make visiting a store a multimedia/multi-channel event. More of them engage with sales associates, comparisonshop on mobile devices in the store, and ask friends and family about purchases (either in person or remotely via social media, texting or mobile devices). Theyâ&#x20AC;&#x2122;re also more likely to interact with in-store, self-service digital information sources (Accenture 2017).

Core features: 1. Minimise effort for the customer, especially for interactions that happen frequently. 2. To invest in personalised, human interactions at points where the customer is seeking advice or likely to experience strong emotions (Abraham, 2019). interior design. The interior design of the store generally seeks to further emphasis the brands personality and core values. RFID technology mirrors. RFID technology mirrors will be used within the changing rooms of em erse studios store. RFID technology clothing racks and tags. within the store; such as specific scents linked to the theme / trend, mood lighting, as well as specialised playlists and soundtracks. Furthermore, digital technology will be used to increase ease and function within the store. RFID technology mirrors will be used within fitting rooms, as well as RFID-enabled clothing rack that detects which products a consumer is browsing and autopopulates their wishlist (year 2). Following on from consumer testing results, the likes of virtual and augmented reality will also be considered for the store, that is if the prove beneficial to consumers. Sensor data / becons. Becons will be used hand in hand specifically with the RFID clothing racks and tags. This will be implemented in the store in the brands second year. Becons will be used with Bluetooth to automatically sensor when a shopper with the em erse studios app installed on their phone is near by. When consumers are shopping in store, the technology will automatically populate their wishlist on the app with current clothing and products they are viewing. Artificial Intelligence enhanced stock control.

Artificial Intelligence. AI computing will be used within the store, predominately behind the scenes. AI will be used to aid in staff rotas, stock control and monitoring. AI will be used again within the second year of the app Omnichannel retail. The brands comms and marketing that consumers see both offline and online with reflect the comms that are currently in the brands store. This will be done to provide consumers will a cohesive shopping experience. Mood lighting. With the store interior and fitting rooms, mood lighting will be utilised as a main beneficial sensory element of the consumers shopping experience. Fitting rooms will feature a multi-lighting system that consumers will be able to control with sensor-touch buttons. The three lighting setting follow: natural, moody and night. This allows consumers to see how clothing they are trying on will look in different lighting environment. Feedback given from the consumer testing feedback focus group found: “changing rooms that have nice lighting instead of RUDE lighting that makes me want to purchase a new body as well as new clothes” “Primark lighting makes me wanna die” Innovative scent diffusers. Innovative scent diffusers will be used throughout the store and changing rooms to stimulate consumers sensors. Non allergy scents will be used to avoid issues with the vast array of consumers. The scents will chance throughout the day to reflect scents associated with the stores current theme.

BRAND MANAGEMENT

10.1

S TA R T U P C O S T S

The company will trade as a limited liability company. Under Corporate social responsibility it is the intention to distribute a percentage of the profits to organisations and charities relating to em erse studios monthly themes. These will include Black Lives Matter for Octobers theme; black history month, Freedom4Girls for February’s theme; my bloody valentine, LGBT foundation for June’s theme of PRIDE and LGBT rights, and finally, The Fawcett Foundation for March’s theme; women rights.

OV E R H E A D S

MARKETING BUDGET

10.2

R A I S I N G C A P I TA L The cashflow forecast predicts that funding of £872,800 will be required. It is expected that it will take twelve months for the business to be cash positive. An average Mark Up of 3.58 has been calculated as an average therefore stock purchase will be 27% of sales. This will be done through personal investments, crowdfunding, angel investors and bank loans. Overheads are forecast at £1,481,534 with a Marketing budget scheduled at £917,480 · Crowd funding - 25% £250,000, investors will receive a 25% share of the nett profit. · Personal Investments 10% £100,000 · Angel investors - 25% £250,000, the angel investors will receive a return of 20% per annum £50,000 · Bank loan- 40% £400,000, the bank loan will be repaid over 5 years at fixed rate of interest of 4%

10.3

PROFIT & LOSS

Sales income for year one is projected at £5.539,944. In preparing the forecast, consideration was given to footfall, sales conversion, sales per customer. For months one, two & three the forecast income was reduced due to being a start up. Scheduled events are expected to produce a rise in sales. further adjustments have been made for Christmas trading. Year One nett profit is forecast at £1,661,853 with year two £ 1,828,029 year three £2,020,842. If sales income were to drop by 20% in year one the nett profit would reduce to £849,680. If sales income were to increase by 20% then profit would increase to £2,829,005 Start-up costs have been forecast at £541,018

10.4

SALES FORECAST

10.5

SENSITIVITY

10.6

C A S H F L OW FORECAST

PRODUCT MARK UP

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MEASURING SUCCESS 99

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11.1

KPIâ&#x20AC;&#x2122;s KPI: To see how brands are performing each month to reflect sales. Measurement: by measuring sales per square foot for each brand and comparing it to each of them. Impact: This allows em erse studios to analysis and monitor which brands are performing well and which one not so well, allowing the brand to change the placement of brands if needed to improve sales and the overall store journey for consumers. KPI: Building a loyal consumer base through social media channels such as Instagram, Facebook and Twitter, achieving an engagement rate of consistently throughout the first 12 months. Measurement: Engagement rates will be measured through the data analysis of likes, comments, shares, reposts and hashtag usage. Impact: This will inform the content and direction the brand should head in for all future marketing and communication strategies. KPI: The increase of in-store conversion rates Measurement: This will be measured by dividing the number of transactions made per day by the footfall for the store per day. Impact: This allows for the brand to monitor how well its doing at turning browsers into buyers. It will give em erse studios a critical insight into what's happening within the store and will influence future store growth and direction.

1100 00

KPI: Measuring the in-store footfall rates each month the reflect the success and popularity of each theme and featured brands Measurement: This will be measured through the use of beam break technology either side of the stores entrance. Customers are counted and divided by two to give an estimated number of footfall for each day. Impact: This allows for the brand to monitor which theme and brands are attracting the most footfall into the store, which further determines what trends and themes will be beneficial to use or not use again in the future. KPI: Measuring ROI of brand ambassadors / evangelists and paid influencer promotions. Measurement: This will be measured by monitoring the brands social media followers around the time of the promotions and posts. Impact: To ensure that the brand ambassadors and influencers are resonating with the consumers and are prompting them to visit the store and / or purchase from em erse studios. KPI: Increase in Instagram followers from promoted posts. Measurement: This will be measured by the monitoring of instagram followers around the dates of the promoted posts. Impact: By measuring this it ensures that the promoted posts are being targeted to the correct demographic and that the content is resonating with the target consumers. KPI: #retailreinvented launch campaign social media reach and scale. Measurement: This will be measured by monitoring the increase of social media followers around the campaign time and monitoring the use of the hashtag around campaign time. Impact: To ensure the campaign is reaching the correct target consumers as well as measuring the success of the campaign as a whole.

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11.2

RISK ASSESSEMENT Risk: projected annual revenue may not be reached Level of risk: low Impact: if projected annual revenue is not reached it could cause communication and marketing plans for years 2&3 to fall through, as well as predicted future growth such as app development and the opening of a second store. Prevention: In order to factor in the risk of the projected revenue not being reached, a sensitivity analysis of +/-20% was conducted. External / Internal: internal

Risk: initial investment and funding may not be secured Level of risk: medium Impact: if initial investment and funding is not secured, it could prevent the brand not being able to afford and implement certain store features and technology, or buy the amount of stock needed for opening. Prevention: em erse studios can mitigate this risk by producing an effective and persuasive business proposal, as well as applying for funding from varies platforms; such as crowdfunding, angel investors, self investment and family and friends. External / Internal: external

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Risk: product shipment delays Level of risk: high Impact: if products do not arrive on time each month for the new theme, this could severely impact sales as well as affect brand awareness. Consumers could loose interest and trust in the brand, giving the brand a negative public perception. External / Internal: external

Risk: Threat of similar market entrants / copycat businesses Level of risk: medium Impact: The entrant of new competitors / copycat brands into the market could affect em erse studios sales as well as positioning within the market. Prevention: the brand can mitigate this threat by effectively communicating em erse studios USP and brand values, as well as following the strategic business plan and adapting when necessary. em erse studios should be able to act as a market leader and stand out from any potential copycat brands or competitors. External / Internal: external

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THE FUTURE

104

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12.1

THE FUTURE The outlook for the future of em erse studios is bright; and as the brands success with the UK luxury fashion industry and experience economy increases, they will need to scope out future opportunities to grow the brand further, as well as adapting as and when needed. These opportunities could include an exclusive collaboration with a luxury fashion or lifestyle brand, multiple store openings across the UK and potential expansion into international markets such the US, China and Europe.

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NEW

12.2

EXISTING

MARKETS

G R OW T H P L A N : A N S O F F M AT R I X Market Development.

Diversification.

Following on from suggested future growth, if em erse studios grows successfully and as planned, expansion into to international markets such as the US, China and Europe could be a real possibility for the brand.

If em erse studios grows successfully and expands into to international markets such as the US, China and Europe, the brand could have the opportunity to explore new monthly themes and brands fitting in with that countries trends and products that appeal to their consumes.

Market Penetration.

Product Development.

The brand should continue to work on stocking a vast range of luxury brands, products and monthly themes in order to give consumers a wide range of choice. This would increase further brand awareness amongst consumers and would allow for potential new demographics to become consumers of the brand. 106

Over the next few years the brand should focus on expanding their product range by offering a mobile app to further enhance and personalise consumers shopping experiences. This would further increase the brands annual revenue as well as potential consumer base and brand awareness. In addition to this, if projected sales are met the brand could further expand the number of stores. With Manchester being the other considered for the store location it would make sense for em erse studios next store to be located here.

12.3

CONCLUSION em erse studios is a direct response to Gen Z and Millennials shift in consumer behaviour and need for instant gratification. The need for more experience based and meaningful shopping experiences combined with the increase of technological capabilities will allow the brand to thrive. From thorough research investigated within the report, finding the balance between human interaction is digital connectivity is vital if em erse studios are to become a commercially viable brand. If em erse studios is able to successfully execute the strategy outlined throughout this report, the brand has the opportunity to become one of the UKâ&#x20AC;&#x2122;s leading luxury retail shopping experiences. From em erse studios success it may influence more competitors and brands within the industry to do the same and revolutionise retail for the better. Whilst this isnâ&#x20AC;&#x2122;t a cure or a quick fix for the threats the luxury fashion industry and experience economy face, it is a start. #retailreinvented

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