Red or Dead Product Range
Contents:
Concept The consumer Market Trends Materials and Sourcing Cost of Production Price The Range Stock drops
Concept Aim To create a range for Red or Dead that will appeal to the millennial market they are trying to break into. As well as create a functional range that will emulate Red or Dead’s identity. Concept To build the reputation of Red or Dead and open them to the millennial market. I Have developed a gender-neutral athleisure range specifically targeted at the millennial generation. By listening to the suggestions from the team at Red or Dead as well as the millennial consumer. The range I have designed has a strong focus on colour, silhouettes and sustainability to appeal directly to the consumer as well as emulate Red or Dead’s identity. From my extensive research into consumer trends I was able to tailor the range so that it meets all consumer needs and by following the recommendations suggested in my communication strategy the range will something the market cannot ignore. This will ensure Red or Dead will gain the desired reputation they are aiming for amongst millennials.
The Consumer 18-34 (Millennials) Socially engaged Androgynous Leisure focused Activist Not afraid to be who they want to be Politically aware Millennials are about to enter thier prime purchasing years. By 2020 millennials will spend $1.4 trillion annually. So this is the generation to market for.
Market Trends Gender neutrality More extreme forms of self-expression, identity and individuality are beginning to emerge. Minorities groups are now shifting into majority groups so communities such as LGBTQ are calling out for brands to tailor towards them through gender neutral clothing. 56% of 13-20-year-olds say they know someone who goes by gender neutral pronouns such as they. Millennials are rejecting gender binary shopping now only 44% say they buy clothing restricted to gender showing the importance of providing gender neutral experiences. This upcoming trend is right up Red or Dead’s street as your ethos talks about being different and putting the middle finger to the mundane and is now something the millennials want to get behind. By showing support for this shift shows an understanding of social issues that millennials want brands to connect with and is a great opportunity to get millennials talking about Red or Dead. By 2020 the millennial consumer will be all about rejecting gender conforming identities. Understanding this and tailoring products is more key than ever before for success. Gender clothing is one of these ways.
Athleisure As the importants for dressing for yourself and comfort continues to rise, athleisure has taken prominence in the millennial wardrobe. The demand for clothing that can be worn casually or to the gym has taken over the market. Euro Monitor suggests the athleisure market will overtake luxury goods by 2020. So, 2019 will be the time to start releasing the range. Currently the most frequent users of athleisure wear are Hispanics, young millennials and men. However, as we approach 2020 a new wave off ‘fitness freaks’ are set to rise with new versions of fitness regardless of race, size or gender. So as millennials turn to gender neutral clothing as well as fitness an athleisure range with gender neutral qualities seems ideal for the market in 2020.
Sustainability 2020 has become the year of sustainability as panics rise about the state of our planet. As a result the millennial market has become more conscious about their buying habits. Millennials are now turning to brands that are being transparent about their production line and are being ethical about their product. This is great movement for Red or Dead to get behind as an estimated ¢966n in untapped market potential exists for brands that are clearer about sustainability credentials. Meaning by being sustainable is going to lead to more profit. 33% of Consumers are now choosing to buy from brands they believe are doing social or environmental good, as well as 53% of UK shoppers saying they feel better when buy sustainably produced product.
New Luxury Millennials It has also been brought to my attention that at Red or Dead you take great pride in the quality of your products which can often result in a higher price tag. This may seem like an issue when appealing to a millennial generation who may not have a big budget. But as the millennials enter their prime purchasing years it’s been shown they aren’t afraid to pay a bit more for quality and something different. 83% of millennials have brought a luxury item opposed to 66% of those older than 35. So, for Red or Dead, this doesn’t then exclude you as a brand for millennials since the range will be offering high quality products. Which is reflected in a higher price point due to a better quality and sustainable products being made.
Materials and sourcing Supplier and manufacture: Hemp traders is the largest supplier of hemp fibre products in the US. Thier mission is to help the environment by bringing hemp back into mainstream manufacturing and supplying the best quality hemp products are the lowest price. They continuously work with farmers, factories and manufactures to ensure minimal impact on the planet and create sustainable hemp materials.
What HempTraders will provide us: Can provide manufacturing services in china at reduced prices for hemp products. Can ship from china directly Fabric= 45% Hemp 40% organic cotton 15% recycled poly muslin weight 5oz width 55� Code: GH10160 Price= $4.99 per yard
Material Dyeing Huddersfield dyeing At Huddersfield dyeing they ensure exact colour demands are met whilst retaining the integrity of the fabric. They are also a sustainable company and use a water recycling system that allows their dying water to be reused. Their process for dyeing Natural cotton is with a range of dye types including vat dyes, modern synthetic reactive and direct dyes which will be ideal for my range and keeps the process sustainable. www.huddersfielddyeing.co.uk *From research, average price of ÂŁ2-ÂŁ3 per garment
Channels of distribution: This production will be Downstream supply chain going from Manufacture> retailer (you)> consumer. Going through this indirect buying channel allows you to work directly with the manufacture, negotiate prices and gain the latest market information.
Cost of production Material 1yards = $4.99, 2yards = $9.98 Shorts= 1 yard= $4.99 Long sleeve top= $9.98 T-shirt= 2 yards= $9.98 Joggers = 2 yards = $9.98 Sweater= 2 yards= $9.98 Dyeing=£2 Manufacture cost and shipping: Approx cost Duty tax= $3.54 Shipping-$12.20 Labour- $5.50 = $21.24 Final cost: Shorts- $4.99+ $21.24= $26.23(conversion into GBP) = £19.33+£2= £21.33 T-shirt- $9.98+ $21.24=$31.19 (conversion into GBP) = £22.99+ £2= £24.99 Jogger- $9.98+ $21.24=$31.19 (conversion into GBP) = £22.99+ £2= £24.99 Long sleeve- $9.98+ $21.24=$31.19 (conversion into GBP) = £22.99+ £2= £24.99 Sweater- $9.98+ $21.24=$31.19 (conversion into GBP) = £22.99+ £2= £24.99
Price My range will sit at a premium price range (high street but better quality and styling) due to the attributes of the range such as high quality, sustainable material being used. As discussed previously this will no inhibit sales as the new luxury millennial is willing to pay as long as the product meet their demands. My range suits all their upcoming needs such as gender neutrality, sustainable and on trend garments, so they will invest.
Final retail price I have worked out the cost the range should be at. Standard industry procedure adds a mark-up of X2 the cost of manufacturing to earn profit so that’s what I have marked the range as.
Items that cost - £21.33+ mark up X2= £42.66 items that cost- £24.99+ mark up X2= £49.98 *When it comes to reducing the retail price never go below £25 as the consumer will being to question the quality if you are able to reduce it that much. It will also cause you financial difficultly are production cost is £24.99
Price Skimming When the range is introduced the price must be set at the highest price point to maximise revenue and gives the range a perception of exclusivity. Then you can slowly reduce the price to start appealing to those millennials that can’t afford the range full price. But always keep the pricing right so you won’t lose profit is to low or lose consumers if too high. Competitor prices: Gender neutral clothing: Zara- all under £50 H&M- £15-£40 Ashish for RI- £30-£180 AsosXGLAAD- 8-£30 Sustainable clothing : Lost explorer- $30-$210 Fanmail- $90- 275 Emyum -$106.75- $ 405.46 Outerknown- $32- $68 As you can see in terms of gender neutral clothing my pricing is slightly higher than some other ranges. But in terms of sustainable clothing its significantly cheaper than or a similar price to others out there. So even though my range isn’t as cheap as some of our gender-neutral competitors the sustainability element adds a competitive edge which will attract the market through its want for ethical clothing. The consumer will be aware they will be paying slightly more for the sustainable clothing. But with all the other adds elements such as high quality, colour and gender neutrality it will been seen and a worthwhile buy and they will invest more into it. Which as we known is something the Millennial is starting to do
The range
Alex Swing shorts Boxy shorts made from light material for flow and non-restrictive comfort. Draw string elastic waste to maximise comfort. 45% Hemp 40% organic cotton 15% recycled poly muslin. The main short is a navy-blue tone with yellow stripe down either side with the space baby graphic descending down the stripe. On the waist band the Slogan – middle finger to the mundane will be wrapped around twice in a bold font.
Ashley Joggers Blesuire style joggers have the comfort of joggers but the style of an everyday trouser providing comfort and style. 45% Hemp 40% organic cotton 15% recycled poly muslin. Elastic waist band allows for non-restrictive comfort Green and red are the two-colour tones for this garment with a base of khaki with red pockets and stripe down the middle of each leg. As well and the slogan middle finger to the mundane on the waist band in black bold font.
Kaden T-shirt Standard boxy t shirt to suit all. Baseball style with blue colour block on the sleeves. Space baby design is also added in the left chest area as a graphic. The slogan middle finger the mundane will also be positioned on the bottom of the T-shirt as a graphic. 45% Hemp 40% organic cotton 15% recycled poly muslin.
Taylor Jumper Block colour sports vibe. Red sleeves with a blue body extenuated with yellow on rims of collar and sleeves. Rim of sleeve and jumper are elasticated and body rim has the space baby graphic also printed along it. 45% Hemp 40% organic cotton 15% recycled poly muslin.
Jamie Turtle neck Base layer of the range Contrasting yellow and purple 45% Hemp 40% organic cotton 15% recycled poly muslin Collar and bottom of the sleeves and colour blocked purple.
Stock drop
11/09/2019
Statistic resources: GENDERLESS BEAUTY WGSN- https://www.wgsn. com/content/board_viewer/#/69688/page/1 BIG IDEA A/W19/20 ACTIVE WGSN- https://www.wgsn. com/content/board_viewer/#/75860/page/1 THE VISION 2019 PART 2 PURPOSEFULL -https://www. wgsn.com/content/board_viewer/#/75742/page/1 NEWLUXURY MILLENIALS LSN- https://www.lsnglobal. com/tribes/article/4282/new-luxury-millennials CONSUMER 2020 LSN-https://www.lsnglobal.com/ big-ideas/article/21803/consumer-2020