Chloe Cook Rebecca Robinette Lindsay Davidson Hannah Patience Palkimas
vervie
internal analysis history 6-11 sales trend 12-15 mission 16-17 values 18-21 identity 22-23 customer base 24-25 scope and size 26-27 product categories 28-33 external analysis market size 36-41 marget segmentation 42-47 significant trends 48-55 key competitors 56-69
buying plan SWOT analysis 72 6 month plan 74 assortment plan 76 indepth assortment 84 store overview 86 sources 90
3
internal Analysis
5
SMSM MSM HISTORY
1958 Steve Madden is born in New York, NY 1974 Madden gets a job in high school at a shoe store and takes an immediate liking to the footwear business 1976 Madden enrolls at the University of Miami 1978 Madden drops out of college and moves back to NYC 1980 Madden begins working for L.J. Simone, a wholesale firm, where he learns how shoes are manufactured and marketed 1988 Madden leaves L.J. Simone and attempts to launch a women’s shoe brand named Souliers for the MCM footwear company, but was unsuccessful
7
1990 1993 1999 2001 2003
Steve Madden starts his company, Steve Madden, Ltd. with $1,100, selling 500 shoes made by his own design out of the trunk of his car in the NYC area Madden opens his first retail store in SoHo Forbes noted that at times the firm was introducing 10 to 15 new designs a week. New shoe designs could come to market in as little as 40 days The Steve Madden firm becomes publicly traded, with revenue of nearly $250 million. Steve Madden Men’s collection is also launched in this year Steven by Steve Madden is launched.
2005-6 2010 2017 2018
Steve Madden is officially global. Steve Madden opens his 100th store in the US. Madden Girl is launched. In 2006 sales increased to $475.2 million, as well as the label being named “Company of the Year” by Footwear News. Steve Madden begins designing handbags and belts for Betsey Johnson Madden launched his first ready-to-wear collection, along with acquiring the Betsy Johnson brand. A second boutique is opened in SoHo, marking the store’s 185th store worldwide Steve Madden opens a 2,000 sq. foot store in Times Square in August Sales have gone up 10.5% from last year
9
In 2017 Netflix released a documentary about Steve Madden called
Maddman: The Steve Madden Story
. . .
keypoints Madden has always held a fascination with women’s shoes.
He went to jail in 2003 from getting caught up in Wall Street money scandal.
While in jail, he made lots of friends and taught a business class, which led to him hiring his ex-con friends to work for him after they were released. He is obsessed with finding trends off of the streets of New York.
11
Steve Madden, Ltd. owns and operates . . . Steve Madden*, Betsy Johnson*, Dolce Vita*, Steven by Steve Madden, Madden Girl, Freebird Steven, Stevies, Betseyville, Report Signature, Report, Big Buddha, Wild Pair, Cejon, and Mad Love. *the brands that boast the biggest revenues for Steve Madden Ltd.
Steve Madden, Ltd.’s Sales Trend
2016
2015
2014
Domestic (a) $1,258,983,000 $1,255,668,000 $1,221,771,000 International $140,568,000 $149,571,000 $113,180,000 Total $1,399,551,000 $1,405,239,000 $1,334,951,000
*figures sources from businesswire.com
13
56%
Steve Madden sales make up of Steve Madden Ltd.’s Revenue
Steve Madden’s Sales Trend 2016 2015 2014 Total $786,000,000 $786,000,000 $749,000,000
62% Wholesale is Of sales
*figures sources from businesswire.com
15
“
Our main mission is to consistently deliver trend right designs to our customers. To further build our business, we will leverage our tremendous brand equity, dominant position in fashion-forward footwear, and industry-leading design team and will work to ensure that Steven Madden, Ltd. emerges as a global lifestyle branded company. -Steve Madden ltd
Steve Madden is able to deliver trendy designs by making their shoes at their headquarters in Long Island; their designs are quickly made into product, thus the customer is able to purchase items faster. As a result SM is able to stay on top of trends, with speed being a major advantage for them.
MISSION 17
Values
Authentic Trend-savvy individual i n n o vat i v e daring inspiring
19
I N S P I R AT I O N
21
“
Madden is inspired by the streets of New York, up-and-coming trends, rock and roll, and urban behavior. -Steve Madden ltd
identity identity identity identity identity identity identity identity identity identity identity identity identity identity identity identity identity identity identity identity identity identity identity identity identity ident identity identity identity identity id identity identity identity identity identity 23
Customer Basee Calling trend-savvy looking for affordable that mimic your exciting, urban
all women footwear evolving, lifestyle
& all fashion-forward men looking for shoes to compliment your fast-pace city life.
25
Scope & Size 120 retail stores in the US 250 in over 65 countries 1,500 to 2,000 square feet located in well-trafficked areas The Steven and Superga stores are more sophisticated in design and format styled to appeal to a more mature target audience.
27
Women’s booties, boots, heels, flats, sneakers, sandals, slippers, mule musts, nudes, blondo waterproof, made in the usa $50.00-$229.95
P r o d u c t C at e g o r i e s & Best sellers
29
Mens boots, dress, casual, chukkas, slip-on, sneakers, lace-up, smoking slippers, embellishments, pattern & print, chelsea boots, self made $50.00-$189.95
Kid’s Girls slip-ons, sneakers, and boots. Boys slip-ons, loafer styles, and sneakers $24.98-$69.95
31
Accessories handbags, socks & tights, sunglasses, belts, bags & gloves, phone cases & tech, Jewelry, shoe care, shoe laces & charms, patches & pins $9.98-$168.00
Trends mule musts, pattern & prints, white out, luxe velvet, slouch boots, slides, espadrilles, platform faves, metallic, red hot, sock boots, animal prints
33
external analysis
35
MARKET SIZE total world apparel and footwear retail value
$1,563, 428,200,000
*all market information is from euromonitor.com
37
Top 10 Countries in the Shoe Industry (2018) 30.4% China 29.7% USA 5.6% India
$354,347,000,000
6.6% Japan
$76,988,800,000
$346,034,100,000 $65,597,200,000
6.6% Germany $76,527,300,000 5.7% UK $66,584,000,000 4.3% Russia $49,668,300,000 39
Footwear Industry in the USA (2018)
50.2% Women’s Footwear
$37,855,4000
36.5% Men’s Footwear
$27,529,9000
13.3% Children’s Footwear
$10,006,2000
41
MARKET SEGMENT
43
Top 10 Women’s Shoe Brands in the USA
31.5% Nike 14.6% Steve Madden 14.6% Sketchers 9.4% Ugg 6.7% Adidas 5.6% Payless 4.9% New Balance 4.5% Asics 4.5% Michael Kors 3.7% Clarks
45
17% Women’s Casual Shoes
Shoe Category Market Share in the USA
13% Women’s Dress Shoes 10% Women’s Athletic Shoes 20% Men’s Athletic Shoes 9% Men’s Casual Shoes 6% Men’s Dress Shoes 25% Other Styles 47
Product trend: Dad Shoes
SIGNIFICANT TRENDS Product Trends Technology Trends Marketing Trends Lifestyle Trends
Manrepeller New York Post Popsugar
“You’ve probably given your dad’s outfit a head shake or two in the past, but he might be trendier than you think — especially when it comes to sneakers. Thanks to Balenciaga, chunky, thick-soled kicks are back.” -Popsugar 49
Product trend: Pretty Pastels
Vogue The Guardian
“Delicacy can be strong. They’re ice cream colours but it’s not too sweet or saccharine. “ -Victoria Beckham for Vogue
Product trend: Kitten Heels
Fasshion Insider Popsugar Preview “It’s time to face the truth: kitten heels have officially been resurrected” -Popsugar 51
TECHNOLOGY TRENDS retailers deploying in-store mobile effectively are projected to have an increase of 146% in sales growth in 2018.
MARKETING TRENDS marketing trends increase a brand’s presence, reach, engagement, scale, influence.
*figures sources from businesswire.com
*read more at thedma.org
how can SM take advantage of technology ?
how can SM take advantage of this marketing?
mobile checkout personalized assistance in a personalized app in-store pick-up
#imwithsteve Steve Madden Pass personalizaed promotion to our customers 53
LIFESTYLE TRENDS athleisure (is expected to grow to $83 billion by 2020*) celebrity collaborations and campaigns
* sourced from forbes.com
55
KEY C O MPE T ITOR S 57
Founded in 1981 Became a symbol of a young, sexy, and adventurous lifestyle A global lifestyle brand, offering denim, apparel, shoes and accessories Currently operates 339 stores in the United States 59
GUESS Financials for 2017: Guess Total revenue: $2,209,368,000 Guess American sales: $935,479,000 (42% of sales) VS SM total revenue: $1,399,551,000 SM American Sales:$1,258,983,000
renowned brand, global presence
business performance and America’s retail segment
increase consumer spending in the US, growing online market in the US, expanding the retail market in the US
changing consumer preferences, rising labor costs in the US, growing counterfit goods in the market 61
Founded in 1964 Nike brand shoe launched in 1972 Currently operates 389 stores in the US
63
NIKE
financial performance, geographic presence, operation capabilities
lawsuits
expanding retail market in US, new product launches, growing footwear market in US
increase in counterfeit products, foreign exchange risks, rising labor cost in the US
Financials for 2017: Total revenue Nike: $34,350,000,000 Women’s shoe sales Nike: $6,644,000,000 (19% of sales) VS SM total: $1,399,551,000 SM women’s shoe sales estimate: $510,500,000
65
Lifestyle brand founded in 1970 Offers a wide range of product Currently operates over 200 stores in the US 67
URBAN OUTFITTERS Financials 2017: Total urban: $1,415,000,000 Estimated women’s shoe sales: $531,869,000 (15% of sales) VS SM total: $786,000,000 SM women’s shoe sales estimate: $510,500,000
revenue growth, efficient information systems, crosschannel strategy, inventory turnover ratio
limited international presence, profitability position
acquisitions, growing online market in the US, expanding retail market in the US
intense competition, foreign exchange risks, increase in manpower costs
69
buying plan
71
clear target market, connects well with target market, known for stylish and affordable products, e-commerce presence, celebrity collaboration
declining retail sales, low global presence means limited market share, similar styles produced each season, less competitor differentiation, lawsuits over similar designs
global expansion in growing economies, more original designs that will differentiate from competitors, utilizing current technology trends, using a detailed database to create personalized promotions
over saturated marketplace, competitors expanding more rapidly than SM, changing consumer values
73
6 MONTH BUYING PLAN Sales (LY) % Planned Increase Planned Sales for Period Planned EOM for Period Cost % Initial Markup % Planned Reductions $ Planned Reductions % Sales Distribution Stock-Sales Ratio Reductions Distribtution Planned Monthly Sales Planned Monthly BOM Planned Monthly EOM Planned Monthly Reductions Planned Purchases at Retail Planned Purchases at Cost Turn Dollar Turn
HEEL CATEGORIES
6 MONTH BUYING PLAN
$28,000,000 1% $29,010,432 $11,940,694 11% 89% $10,153,651 35% AUG 16% 3.5 6%
SEPT 12% 3.5 4%
OCT 15% 3.5 10%
NOV 22% 3.5 30%
DEC 21% 3.5 20%
JAN 14% 3.5 30%
$4,641,669 $16,245,842 $12,184,381 $609,219 $1,189,428 $130,837
$3,481,252 $12,184,381 $15,230,477 $406,146 $6,933,493 $762,684
$4,351,565 $15,230,477 $22,338,033 $1,015,365 $12,474,486 $1,372,193
$6,382,295 $22,338,033 $21,322,668 $3,046,095 $8,413,025 $925,433
$6,092,191 $21,322,668 $14,215,112 $2,030,730 $1,015,365 $111,690
$4,061,460 $14,215,112 $11,940,694 $3,046,095 $4,833,138 $531,645
Budget = $34,858,935
TOTAL 100% 100% $29,010,432
$10,153,651 $34,858,935 $3,834,483 $16,211,029 1.8
75
Stilettos
Subclass % of subclass Style Stilettos $12,200,627 35%
% of Style Color $1,891,097 Core 15.5% Aur Units Kitten Heel Fashion
Close-toe
Aur Units $2,806,144 Core 23% Aur Units Fashion
Lace-up
Aur Units $1,891,097 Core 15.5% Aur Units Fashion
Ankle Strap
Open-toe
Aur Units $2,806,144 Core 23% Aur Units Fashion Aur Units $2,806,144 Core 23% Aur Units Fashion Aur Units
% Of Color $1,323,768 70% $85 15574 $567,329 30% $110 5,158 $1,964,301 70% $85.00 23,109.42 $841,843 30% $110 7,653 $1,323,768 70% $85 15,574 $567,329 30% $110 5,158 $1,964,301 70% $85 23,109 $841,843 30% $110 7,653 $1,964,301 70% $85 23,109 $841,843 30% $110 7,653
77
Subclass
Chunky
% of Subclass Style $10,457,681 30%
Angled
% of Style Color $1,620,940 Core 15.5% Aur Units Fashion
Closed-Toe
Aur Units $ 2,405,267 Core 23.0% Aur Units Fashion
Open-Toe
Aur Units $ 2,405,267 Core 23.0% Aur Units Fashion
Ankle Strap
Aur Units $ 2,405,267 Core 23.0% Aur Units Fashion
Cylindrical
Aur Units $1,620,940 Core 15.5% Aur Units Fashion Aur Units
% Of Color $ 972,564 60% $90 10,806 $ 648,376 40% $130 4,988 $1,443,160 60% $90 16,035 $ 962,107 40% $130 7,401 $ 1,443,160 60% $90 16,035 $ 962,107 40% $130 7,401 $ 1,443,160 60% $90 16,035 962,107 $ 40% $130 7,401 $ 972,564 60% $90 10,806 $ 648,376 40% $130 4,988
Chunky
79
Subclass
Pumps
Pumps
% of Subclass Style $6,971,787 20%
Peep Toe
% of Style Color $1,603,511 Core 23.0% Aur Units Fashion
Closed-Toe
Aur Units $1,603,511 Core 23.0% Aur Units Fashion
Ankle Strap
Aur Units $1,603,511 Core 23.0% Aur Units Fashion
Sling Back
Aur Units $1,080,627 Core 15.5% Aur Units Fashion
Lace Up
Aur Units $ 1,080,627 Core 15.5% Aur Units Fashion Aur Units
% Of Color $ 1,122,458 70% $85 13,205 $ 481,053 30% $90 5,345 $ 1,122,458 70% $85 13,205 $ 481,053 30% $90 5,345 $1,122,458 70% $85 13,205 $ 481,053 30% $90 5,345 $ 756,439 70% $85 8,899 $ 324,188 30% $90 3,602 $756,439 70% $85 8,899 $ 324,188 30% $90 3,602
81
Subclass
% of Subclass Style Platforms $5,228,840 15%
% of Style Color $ 1,202,633 Core 23.0% Aur Units Open-Toe Fashion
Aur Units $ 1,202,633 Core 23.0% Aur Units Closed-Toe Fashion
Faux Wood
Aur Units $810,470 Core 15.5% Aur Units Fashion
Ankle Strap
Aur Units $810,470 Core 15.5% Aur Units Fashion
Slip-On
Aur Units $ 1,202,633 Core 23.0% Aur Units Fashion Aur Units
% Of Color $721,580 60% $90 8,018 $481,053 40% $120 4,009 $721,580 60% $90 8,018 $481,053 40% $120 4,009 $486,282 60% $90 5,403 $324,188 40% $120 2,702 $486,282 60% $90 5,403 $324,188 40% $120 2,702 $721,580 60% $90 8,018 $481,053 40% $120 4,009
Platforms
83
Subclass
% of Subclass Style Stilettos $12,200,627 35%
Stilettos Detailed Assortment
% of Style Color $1,891,097 Core 15.5% Aur Units Kitten Heel Fashion
Closed-Toe
Aur Units $2,806,144 Core 23% Aur Units Fashion
Lace Up
Aur Units $1,891,097 Core 15.5% Aur Units Fashion
Ankle Strap
Open-Toe
Aur Units $2,806,144 Core 23% Aur Units Fashion Aur Units $2,806,144 Core 23% Aur Units Fashion Aur Units
% Of Color $1,323,768 70% $85 15574 $567,329 30% $110 5,158 $1,964,301 70% $85 23,109 $841,843 30% $110 7,653 $1,323,768 70% $85 15,574 $567,329 30% $110 5,158 $1,964,301 70% $85 23,109 $841,843 30% $110 7,653 $1,964,301 70% $85 23,109 $841,843 30% $110 7,653
Color
% TTL
Units per color
Locations Avg Depth per Location
Black White Nude
45% 20% 35%
7008 3115 5451
120 65 120
58 48 45
Print Seasonal Limited
40% 50% 10%
2,063 2,579 516
90 90 15
23 29 34
Black White Nude
45% 20% 35%
10,399 4,622 8,088
120 65 120
87 71 67
Print Seasonal
40% 60%
3,061 4,592
90 90
34 51
Black White Nude
45% 20% 35%
7,008 3,115 5,451
120 65 120
58 48 45
Print Seasonal Limited
40% 50% 10%
2,063 2,579 516
90 90 15
23 29 34
Black White Nude
45% 20% 35%
10,399 4,622 8,088
120 65 120
87 71 67
Print Seasonal
40% 60%
3,061 4,592
90 90
34 51
Black White Nude
45% 20% 35%
10,399 4,622 8,088
120 65 120
87 71 67
Print Seasonal
40% 60%
3,061 4,592
90 90
34 51
85
Subclass
% of subcl Style Stilettos $732,038 35%
NYC: 1,000 sqft, Big Store 6% $2,091,536
% of Style Color $113,466 Core 15.5% Aur Units Kitten Heel Fashion
Closed-Toed
Aur Units $168,369 Core 23% Aur Units Fashion
Lace Up
Aur Units $113,466 Core 15.5% Aur Units Fashion
Ankle Strap
Open-Toe
Aur Units $168,369 Core 23% Aur Units Fashion Aur Units $168,369 Core 23% Aur Units Fashion Aur Units
% Of Color $79,426 70% $85 934 $34,040 30% $110 309 $117,858 70% $85 1,387 $50,511 30% $110 459 $79,426 70% $85 934 $34,040 30% $110 309 $117,858 70% $85 1,387 $50,511 30% $110 459 $117,858 70% $85 1,387 $50,511 30% $110 459
Color
% TTL
units per color
Black White Nude
45% 20% 35%
421 187 327
Print Seasonal Limited
40% 60% 10%
124 186 31
Black White Nude
45% 20% 35%
624 277 485
Print Seasonal
40% 60%
184 276
Black White Nude
45% 20% 35%
420 187 327
Print Seasonal Limited
40% 50% 10%
124 155 31
Black White Nude
45% 20% 35%
624 277 485
Print Seasonal
40% 60%
184 276
Black White Nude
45% 20% 35%
624 277 485
Print Seasonal
40% 60%
184 276
Subclass
Stilettos
% of subcl Style $183,009 35%
% of Style Color $28,366 Core 15.5% Aur Units Kitten Heel Fashion
Closed-Toe
Lace Up
Ankle Strap
Open-Toe
Aur Units $42,092 Core 23% Aur Units Fashion Aur Units $28,366 Core 15.5% Aur Units Fashion Aur Units $42,092 Core 23% Aur Units Fashion Aur Units $42,092 Core 23% Aur Units Fashion Aur Units
% Of Color $19,857 70% $85 234 $8,510 30% $110 77 $29,465 70% $85 347 $12,628 30% $110 115 $19,857 70% $85 234 $8,510 30% $110 77 $29,465 70% $85 347 $12,628 30% $110 115 $29,465 70% $85 347 $12,628 30% $110 115
Color
% TTL
Units per Color
Black White Nude
45% 20% 35%
50 22 82
Print Seasonal
40% 60%
31 46
Black White Nude
45% 20% 35%
156 69 121
Print Seasonal
40% 60%
46 69
Black White Nude
45% 20% 35%
105 47 82
Print Seasonal
40% 60%
31 46
Black White Nude
45% 20% 35%
156 69 121
Print Seasonal
40% 60%
46 69
Black White Nude
45% 20% 35%
156 69 121
Print Seasonal
40% 60%
46 69
Virginia: 550 sqft, Small Store 1.5% $522,884
87
The Future of Steve
- slow and steady retail sales increase - expand limited edition collection - implementation of tech trends - continued use of celeb endorsments - growing market share
89
Sources Interior Analysis stevemadden.com/custserv/custserv.jsp?pageName=AboutUs&cm_ sp=globalfooter-_-about%20aboutsteve slate.com/articles/business/moneybox/2002/04/genius_of_capitalism_steve_ madden.html britannica.com/biography/Steve-Madden fashiongear.fibre2fashion.com/brand-story/stevemadden/history.asp reuters.com/finance/stocks/companyProfile/SHOO.O Exterior Analysis seekingalpha.com/article/4124885-steven-maddens-ceo-presents-morganstanley-global-consumer-and-retail-conference-transcript thecut.com/2017/11/steve-madden-documentary-maddman.html statisticbrain.com/footwear-industry-statistics/ portal.euromonitor.com.library.scad.edu/portal/analysis/tab portal.euromonitor.com.library.scad.edu/portal/StatisticsEvolution/index bluecore.com/blog/steve-madden-approaches-ecommerce-marketing/ shop.guess.com/en/ourstory/ investors.guess.com/financial-information/annual-reports s1.q4cdn.com/806093406/files/doc_financials/2017/ar/docs/nike- 2017-form-10K.pdf urbanoutfitters.com/
investor.urbn.com/financial-information/annual-review preview.ph/fashion/street-style-inspo-fresh-ways-to-wear-the-kitten- heel-a1103-20170113 popsugar.com/fashion/Kitten-Heels-Style-43429641 fashioninside.net/fashion/kitten-heels-for-a-gracious-step/ vogue.co.uk/gallery/pastel-trend-spring-summer-2018 theguardian.com/fashion/gallery/2018/jan/01/from-pastels-to-plastic-18-trends- for-2018 popsugar.com/fashion/photo-gallery/44445509/image/44446130/PVC-Details thedma.org/marketing-insights/marketing-statistics/social-media-marketing- statistics/ forbes.com/sites/greatspeculations/2016/10/06/the-athleisure-trend-is-here-to- stay/#47f50a628bd4 businesswire.com/news/home/20180108005576/en/Research-RetailersDeploying-In-Store-Mobile-Successfully-146) Buying Plan businesswire.com/news/home/20170228005359/en/Steve-Madden-Announces- Fourth-Quarter-Full-Year businessinsider.com/steve-maddens-new-york-times-interview-2013-2
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