west elm
index
1. Brand 2. Audience 3. Competition 4. Problem 5. Strategy
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1. Brand
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1. Brand
Born in Brooklyn, At home in the world. west elm was born in Brooklyn in 2002. A branch of Williams–Sonoma, Inc, They are focused on the intersection of modern design, affordability and community. Everything west elm sells—from sofas and tables to bedding and vases—is made with one goal in mind: to help our customers express their personal style at home and in the world. west elm care about impact too. By designing over 90% of our products in–house, their design team has steadily increased their selection of organic, handcrafted, sustainably sourced and Fair Trade Certified™ products. There’s a story behind everything they sell—one that starts in Brooklyn and lives on with customers.
Williams-Sonoma.Inc,
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85+ cities in US / Canada / Mexico / UK / Australia / Middle East
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1. Brand
Logo history
2002
2010
2016
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1. Brand
HandCrafted, Fairtrade, Organic, SustainabilitySourced, Local.
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At west elm, they’re committed to making DESIGN TO IMPACT come alive in the work that they do and the products they create. West elm calls it “RESPONSIBLE RETAIL,” and although it can be challenging to turn purpose into practice, west elm has learned firsthand the POSITIVE IMPACT it has on everyone in local community circle: those who work at west elm; employers, customers; and global partners who create for west elm.
west elm’s handcrafted products are scourced from a network of 35+ artisan groups in 15 countries, employing nearly 5,000 makers.
In 2014, west elm became the first-ever home retailer to offer Fair Trade Certified™ products.
Organic fibers aren’t treated with pesticides, insecticides or herbicides, and conserve more natural resources like water. west elm believes in making sustainable products, being mindful of impact on every level.
In 2013 west elm LOCAL launched in just 2 stores. Since then, we’ve expanded to all 90+ locations.
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1. Brand west elm sells
Furniture, Rug&Windows, Bedding, Lighting, Pillow, Accessary, Wall Decor, Mirror, Outdoor, Tabletop. west elm collaborates with
Wholefood / SMEG / Fishs Eddy, etc,.
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1. Brand
west elm attributes
Unique products
40% of handcrafted products are made from the 3rd world, which are unique because of the low quantities. west elm sells artisans and local independent makers’ products, which is a representative differentiation than other home furniture brands.
Green message
west elm has Green messages; sustainability, eco-friendly and organic resources. 40% of their products are made from 3rd world countries and the local makers get a percentage of every product sold. The rewarded money is spent on local community needs like education and transportation.
Price point
west elm’s price is affordable, with organic and natural resources. west elm always has 15-20% promotion on their products.
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west elm Makers’ studio
west elm highlights local makers in US, from crafters to designer, artists, florists, etc,. west elm Maker’s studio is a state-of the-art creative workspace located at Industry City in Sunset Park, Brooklyn, New York.
west elm Market
They opened West Elm Market, specialising in products made by local Brooklyn artisans, vintage finds and small producers from across the country. Products and collaborations would change often, so just like any regular market. Now west elm market changed their direction to shop-inshop. Featured locations such as New York, LA have west elm market in the stores.
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1. Brand Interviewed with a manager at Pasadena west elm.
Who is your audience?
For 20-40 women and men both people who just got a job and moved in a new house younger people who just got married
What do you think about your brand products’s strengths?
Classic & contemporary design, but not traditional Mid-century style classical furnitures Fair-trade products from 3rd countries 40% of products are made by 3rd countries and giving back rewards (distribute revenue)
What do you think about differentiations compared with competitiors?
Highlight & promote local independents artist price point - many promotions lower price compared with competitors Deliver different messages - Green message
What do you think about your brand’s weaknesses?
The brand grows too fast, sometimes it is hard to catch up with all issues and manage staffs, many stuffs in an inventory.
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2. Audience
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2. Audience
20-40’s men & women, those who got their 1st home
Those who have recently settled down Those who just started out their job Younger couples Those who like mid-centric mood & contemporary design Not traditional, and pursue balance between classic & modern design Those who love natural & unique culture Those who are willing to pay something at a deserved cost Those who don’t like the obvious promotion, but are more in tune with individual communities.
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Audience’ voices from interviews
Comfortable using organic cotton affordable design furniture (not affordable actually, some of products are expensive) natural eco-friendly using lots of wood, but not too old-fashioned elegant / refined Didn’t know collaboration with local makers Wood, Roundly Not too expensive but good design Little pricy but affordable Service is average.same as others. Didn’t know collaboration with local makers Competitors might be Cb2 , crate&barrel 1. Similar price range 2. Design is somewhat similar. (Ex. lighting)
Do you think you are main target of the brand? - Yes and no. - Yes: good for young 1-2 people housing. - No: since I move a lot,I can’t buy good furnitures. Is there something to be better for west elm? - Differentiate design from other brands. - Mobile site doesn’t look clean. Feels like white Simple and modern Low quality compared with the price Slow delivery Woods status are not as good as expectation Staffs didn’t give informations about products (Hand-crafted, organic, etc,.)
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2. Audience
“It’s a snowy Tuesday night in Brooklyn, and a dozen urbanites have gathered at West Elm Market to learn how to make dumplings. They spend almost two hours crouched around raw-wood dinner-party tables learning how to fold and fry dough pouches, and as the class winds down, a salesperson appears out of nowhere, approaching with a warning: “We’re closing the register in a few minutes.” Given the after-hours vibe, none of the amateur chefs had even known they could shop. With dumplings still hissing in frying pans, three women immediately dive for the shopping baskets stacked near the front door, quickly filling them with bath towels and fancy cleaning products. In part, this is by design. west elm first experimented with classes several years ago, using them as a way to push product: How to Decorate a Holiday Table, for example, exclusively employed West Elm goods. They were driven by the traditional metric—sales,” says Jacobs. It didn’t work. Customers were turned off by the obvious promotional nature of the content. Now classes like the Basics of Fermentation and Container Gardening aim to feel more organic, less promotional, and more in tune with individual communities.” from Fast&co design’s article
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3. Competition
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3. Competition
Brand logo Product image
Representative Product
Home furnitures, Home office furnitures, Kitchen & Diningware, Lighting, Decor & Pillows, Rugs & Curtains, Bed & Bath, Organization, Outdoor
Style
European modernism, practical
Price range
$900 - 3,000
Story
Crate & Barrel first opened our doors in 1962 as a family business. Gordon and Carole Segal had just returned from their honeymoon in Europe where they had been amazed by all of the simple, well-designed and affordable things they had purchased for their home back in Chicago. All of their start-up funds had gone into inventory…so crating lumber was hammered over the battered plaster walls, shelves were covered with dyed burlap, and crates and barrels from the first shipments were turned over to become store fixtures. “Crate and Barrel” wasn’t just a clever name—it was a name based on necessity.
Home furnitures, Home office furnitures, Kitchen & Diningware, Lighting, Decor & Pillows, Rugs & Curtains, Bed & Bath , Storage, Outdoor
Contemporary, modern,urban, simple $600 - 2,000 CB2 is a modern destination from Crate and Barrel that first opened in Chicago in the year 2000.
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Home furnitures, Home office furnitures, Kitchen & Diningware, Lighting, Decor & Pillows, Rugs & Curtains, Bed & Bath, Storage, Outdoor
Home furnitures, Office furnitures, Kitchen & Diningware, Lighting, Decor & Pillows, Rugs & Curtains, Bed & Bath, Storage, Outdoor
Classical, cozy,
Simple, modern, affordable, practical
$600 - 4,000
$10 - 1,500
The original Pottery Barn opened in 1949, among the docks and warehouses of West Chelsea in lower Manhattan. The founder, Paul Secon, took a sacred approach to well-designed merchandise. Over the years, the brand started to offer a variety of kitchen and decorative household items. It expanded to the West Coast and was purchased by The Gap Stores, Inc. in 1983 — and then Williams-Sonoma, Inc. three years later. The world-famous Pottery Barn catalog, now mailed to millions of customers each year, launched in 1987.
In the early 1980s - with IKEA stores in 20 countries and expanding - IKEA founder, Ingvar Kamprad, realized he needed to protect the unique IKEA Concept as part of the company’s growth. He wanted total independence and a long-term ownership structure, so the stock market wasn’t an option. Plus, he believed that all the companies operating under the IKEA Brand had to build resources before they could expand.
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3. Competition
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Including Crate & Barrel, CB2, IKEA and Pottery barn, other similar home furniture brand are positioned as well. X axis presents from low-cost to high cost. Y axis shows from low-end to high-end relating to brand style, value and main audience. Also, each brands are defined three moods; natural, modern and classic.
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3. Competition Strengths
Weaknesses
Eco-friendly, Sustainable products
Poor brand story, Not delivered well to customers (Only shout ‘Promotion’)
Hand-Crafted, Fair-traded products from 3rd world’s makers Coexistence with local makers
Brand Identity get diluted as growing the brand very fast Not as cheap as competitors Mimics premium brands’ products
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Opportunities
Threats
Expand target market to office furnitures for businesses, luxury for older customers
Many similar competitors (style, price)
Incubate Independent designers’ products for ‘Etsy Generation’
Bad word of mouth about staffs & delivery service Service quality’s gap between stores (NY, SF, LA..)
4. Problem
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4. Problem
west elm’s revenue in 2013
Williams-Sonoma Net Up 13% on West Elm, Pottery Barn Growth west elm’s revenue in 2014
West Elm, Pottery Barn Boost Williams-Sonoma’s Sales west elm’s revenue in 2015
West Elm a winner for Williams-Sonoma in Q4
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However, the number is
2013
2014
2015
17.4%
18.2%
14.8% 27
The home-furnishing retailer has benefited from a rising in new housing construction and signs of economic recovery that rised demand for furniture. However, Williams-Sonoma is also facing increased competition from rivals; Crate&Barrels.Inc, and those who only focus on e-commerce.
4. Problem
from audience’s voices
“Design is somewhat similar to Crate&barrels or CB2. (ex. lighting)” “Service, products are average. Same as others.” “Make a differentiation design from other brands can make better for west elm”
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5. Strategy
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5. Strategy
Define problems
West Elm’s business is expanding very fast. As it grows, their brand identity is becoming diluted. Also, they originally didn’t have a unique brand story. Each service and product is delivered to customers differently.
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west elm market in local communities
AS-IS
Fair-traded, handcrafted products with artisans
Eco-friendly, organic products
Highlight and incubate local makers west elm workspace
west elm luxury collection line west elm hotel
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5. Strategy
Strategy
‘Co-existence with independent local makers’ by making a new brand story. And re-design brand identity and services based on their new philosophy.
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TO-BE
luxury collection / workspace / hotel to expand the brand Sell fair-traded, handcratfed products
Sell eco-friendly, organic products
west elm market
west elm makers’ studio
- Highlight local makers in a community and promote them to collaborate with west elm
- Incubate independent makers by offering studios, training and network,
Brand story about ‘how Brooklyn’s 3 local makers (a crafter, an artist and a designer) could start west elm in 2002’.
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5. Strategy
Draft - Brand story
In 2002, three of the local makers -a designer, an artist and a crafter - started making wood furniture in Brooklyn. At first they struggled to sell their products themselves. They contacted many companies to present their products, but they were rejected every time. So, they turned the direction and started their own market. The very first attempt was at a flea market in Sunset Park.
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5. Strategy
Expected values
1. Raise competitiveness in home-furnishing market with unique brand image. 2. Improve brand image ‘always on sale’. 3. Maintain unique products to collaborate with independent makers.
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