asos pop-up shop summerburst festival 2016
isabella costa // kate walker // alley walls // latifa simmons fasm 410 - professor alessandro cannatรก 1
2
company overview
market analysis state of the industry pestel direct competitors indirect competitors sweden target consumer
location, design, product human resources legal issues store design foot traffic projections sales forecast product plan communication + promotion costing profit + loss statement 3
table of contents
asos history company profile corporate structure brand identity matrix current positioning current distribution communication + promotion business model growth plans swot analysis
4
This project aims to open up a pop up shop in Sweden for four days during Summerburst Music Festival 2016 - both in Stockholm and Gothenburg, respectively. This concept will allow for ASOS to test out the demand for a physical retail presence, gather data, share the brand identity and positive music festival energy during the Summerburst Music Festival locations, not necessarily to generate revenue.
5
executive summary
Since 2000, ASOS has been a leader in e-commerce providing customers with fashion-forward clothing, accessories, beauty and shoes. Even though ASOS is a global leader in e-commerce, having a physical store is still a potential opportunity for growth. A brick-and-mortar store would enable ASOS to provide customers with the full omnichannel experience.
6
company overview
7
8
9
asos history
In June 2000, As Seen on Screen - later shortened to ASOS, was founded by Nick Robertson and Quentin Griffith. Most of the garments were copies of clothes worn by celebrities. The following year it boomed from a company worth about $17m dollar to one worth about $8.5b in 2014, as it introduced more original ranges aimed at the mid-market and expanded internationally. ASOS introduced its own label for women in 2004 and launched ASOS Beauty the following year. In 2006, ASOS became the first UK online fashion retailer to launch a virtual catwalk and by that time, the company’s buying and merchandising teams had doubled in size. In 2007, ASOS’s headquarters were moved to Camden, North London, the ASOS magazine was launched, and ASOS‘s own label for men was introduced. In 2008, the ASOS Outlet opened, offering last season’s looks up to 70% off. The company reached 1 million active customers in 2009, and introduced a variety of high-end labels and creating ASOS Foundation with the purpose of providing inspiration, support and training for disadvantaged young adults. In 2010, ASOS mobile and ASOS Marketplace were introduced as well as German, French, and American websites. In 2011, ASOS websites expanded to include Australian, Italian and Spanish languages, and the ASOS Facebook shop and iPhone and iPad apps were launched. In 2012, ASOS’s first international office opened in Sydney, Australia followed by offices in New York, Shanghai, Berlin and France in 2013. In 2014, ASOS expanded their Barnsley warehouse to hold 20m units, and opened their first European warehouse in Berlin. In 2015, Nick Beighton became the CEO.
company profile
mission “To become the number one fashion destination for 20-somethings globally.”
vision “More than just an online retailer, we want to be as synonymous to fashion for 20-somethings as Google is to search and Facebook is to social networking. We’ll measure our success through, amongst other things, our share of online traffic, the number of followers we have on social media sites, and, of course, sales.”
values We’ve named our corporate responsibility framework “Fashion With Integrity”. It is designed to support our wider business strategy and will help us to implement sustainable working practices at ASOS. It will also help the suppliers with trade with to do the same. Operating in a responsible way is essential to our long-term future. Our customers expect it and the long-term preservation of the environment depends on it.
the numbers
Revenue: $1645.5m Gross Profit: $107m Profit After Tax: $52.8 Operating Profit: $67.6m
10
helen ashton cfo
nick beighton ceo
nick robertson co-founder and non-executive director
ian dyson non-executive director
ASOS is a Public Limited Company (PLC). The business is owned by shareholders and its shares can be purchased by the general public. asos.com shares are traded on the Alternative Investment Market (AIM), which is part of the London Stock Exchange. 11
corporate structure
brian mcbride chairman
brand identity matrix
brand as a person
HIGH PRICE
brand as a product
LOW ACCESSIBILITY
HIGH ACCESSIBILITY
brand as a symbol
LOW PRICE
12
brand as an organization
LOW ACCESSIBILITY
current positioning
HIGH PRICE
HIGH ACCESSIBILITY
LOW PRICE
For the current positioning, we compared ASOS to other e-retailers such as Nasty Gal, Pixie Market, Gilt, Boohoo, Revolve, Shopbop, Mytheresa and Net-a-Porter. We calculated the average price points of each competitor’s clothing. ASOS average price point totaled $610, compared to Boohoo’s $37.75 and Net-a-Porter’s $14,350. The accessibility was measured by the number of countries each retailer ships to. ASOS, shipping to 140 countries is positioned around the middle, compared to Nasty Gal which ships to 28 countries and Boohoo to 225.
13
current distribution
ASOS uses e-commerce and m-commerce for its distribution channels to ship to 240 countries. Asos.com has 9 different local country sites for UK, France, Germany, Italy, Spain, Australia, US, Russia, and China. There has been 1,102,117 visitors to ASOS.com, up 19% from previous year. (ASOS PLC) Retail sales grew to $1,592.3m, accelerating as the year progressed, driven by strong product, delivery proposition enhancements, the launch of zonal pricing capability and implementation of planned price initiatives to increase price competitiveness outside the UK. ( ASOS PLC) Customers can also buy through ASOS Marketplace. Marketplace is a collection of 900 independent boutiques from 40 different countries. Each boutique at ASOS Marketplace costs $28.44 per month and pays ASOS 20% commission per sale. Each boutique is responsible for fulfilling each individual order. (ASOS)
14
15
current distribution
In 2015, there was 11% increase in international retail sales growth. UK retail sales $673.8m, which was a 27% increase from the previous year. US retail sales $241.6m, which was a 29% increase from 2014. EU retail sales increased 15% to $418m. However, the rest of the world’s retail sales have decreased by 1% with a total of $330.6m. (ASOS PLC)
current communication
ASOS has marketing offices in New York City, Berlin, Paris, & Sydney. Marketing $81,150,700 which was $79,633.5 which changed 2% from the previous year. (ASOS PLC)
digital asos.com is not just about selling clothes. Send to 50,00 customers via Fashion Up touching on style, beauty, celebrities, music, and television and through high quality editorial, on our blogs, through Magazine and in daily edits and updates.
social We’re wholly interactive and ‘truly engaging’ – so that means customers can share their choices and inspiration with each other – privately through their social network pages like Facebook, Twitter or Google+, or to the world on our site or via Pinterest or Instagram.
traditional Doesn’t implement any type of traditional marketing because of this digital focus of ASOS they do this because they know their customer base is on some sort of digital device most of the time.
direct marketing Emails: Customers can subscribe to ASOS newsletter that informs customers of news, fashion, promotions, and inspiration. ASOS Magazine: Customers can subscribe to receive a hard copy of the digital magazine.
16
17
current promotions
asos outlet section Deals up to 70% off. asos premier membership programme Members pay $29 a year and have unlimited two-day shipping which includes the ASOS magazine as part of the membership. asos a-list Only available in the UK, Reward program that enables you to get vouchers, attend events, and get treats. Spend: Place one order to become an ASOS A-LISTER. Spend: Every £1 ($1.40) spent = five points*, Earn: For every 500 cleared points (£100= 142.06) you’ll earn a £5 ($7.10) ASOS A-LIST voucher, and Redeem: Spend your ASOS A-LIST vouchers on your favorite items at ASOS - valid for six months. There are 3 different levels with different perks available. free delivery to 140 countries asos x spotify 500 British pound ($710.30) Giveaway 10% student discount offered by registering as a student online.
business model
our business model: great fashion, great price We provide the widest choice of relevant products for our 20-something customers. Our range includes our exclusive own-brand label and a curated edit of more than 800 brands, spanning familiar high street names and lesser known brands that are new to the market. We stock more than 80,000 products, adding 3,000+ new lines every week. Our wide selection of choice, price points and sizes means that ASOS fashion is accessible to all. (ASOS PLC)
awesome on mobile From how customers browse and find products, to the variety of payment methods, to the way we communicate with customers, we strive to offer a totally optimized digital experience on any device. Mobile is increasingly our customers’ platform of choice and our goal is to build a unique experience through apps and mobile web
engaging content and experiences ASOS is far more than a shop: through publishing relevant daily fashion and lifestyle content, a constant social media dialogue, and our curated edits, we’ve developed an emotional connection with a global community of 20-something fashion lovers. We are always developing new experiences to engage and connect with this community. (ASOS PLC)
best-in-class service Our customers have high expectations and we aim to offer an effortless online shopping experience. We deliver this through free, quick and reliable delivery options, and hassle-free returns (free in most of our key territories), allowing customers the flexibility of trying on the latest fashion in the comfort of their own home. Our award-winning Customer Service Team helps with any questions along the way. (ASOS PLC)
18
19
growth plans
The company will focus its efforts on the four larger markets of Britain, the US, Germany and France. Continuing to invest in global logistics infrastructure and technology.(ASOS PLC) Supply Chain Director, Mark Holland, came up with an ambitious plan – automation coupled with expansion – that has enabled us to do all those things at once. And, in its first year of operation, it’s already significantly lowered our costs and is on its way to paying back our investment in line with our objectives.(ASOS PLC) While there remains much work to do, we are now laying down the required infrastructure to support our next staging post of $3.55 bn sales ( ASOS PLC) Our mission remains unchanged: to be the world’s no.1 fashion destination for 20-somethings. We strive towards this mission under four strategic pillars: Great fashion, great price – Awesome on mobile – Engaging content and experiences – Best-in-class service, all delivered across the globe. ( ASOS PLC)
swot analysis
strengths Variety of brands and product categories Interactive shop that provides company edited fashion trends Asos Marketplace - where customers can sell their clothes or vintage Global free shipping and free returns Includes personal blog that features music, movies, celeb styles, and trends ASOS monthly magazine to give customers an editorial view of the product & read articles Connects well through various social media platforms (Twitter, FB, Instagram, Tumblr, Youtube, Google +) App for easier mobile purchasing ASOS A-List Customer Loyalty Program Fashion With Integrity Program Experiencing international expansion and growth International supply chain platform (Allport) increases transparency and visibility across the supply chain
weaknesses No storefronts Shipping costly for ASOS Confusing package tracking through 3rd parties About 30% of purchases are returned Not accurate enough sizing chart and visuals of details online Merchandise produced on 5 different continents causing some logistical and costing issues Sizing inconsistencies between brands
20
opportunities
threats Economy Rise of more e-commerce retailers Environmental fluctuations Exchange rates for different countries Vendor’s internal issues Change in international laws Changing customer tastes
21
swot analysis
Consumers will spend more money on unique products Continual increase in mobile platform purchases More product lines Expand private label Introduce more brands Store fronts More demand for men’s offerings Capsule collections with designers/celebrities
22
market analysis - sweden
23
state of the industry
apparel One of the main drivers of growth in 2015 was a healthy appetite for premium apparel and footwear. The Swedish economy performed relatively well, with record low interest rates, a booming property market and slowly declining unemployment all contributing to a rise in consumer confidence. Many consumers thus switched from cheaper brands and private label products to mid-priced and premium alternatives. Men in particular showed a growing propensity to spend a little extra on premium apparel and footwear in 2015. Internet retailing grew considerably over the review period to account for an 11% share of overall apparel and footwear value sales in 2015. Internet retailing is hence rather developed in Sweden but is still growing healthily. Time-stressed consumers have increasingly started using the internet to shop following improvements to payment, delivery and returns services, but also as technology has been developed to offer mobile-friendly sites. Consumers appreciate the internet’s low prices, the possibility to compare prices and the wide selection of products available.
accessories In 2015 apparel accessories grows by 1% in current value terms to reach sales of $412,979,350.00 USD The most important trend was the growing sales of apparel accessories via the internet, whose low prices and wide range of products attracted consumers. Modest category growth was a result of increasing interest in ties and other apparel accessories such as pocket scarves as well as a focus on more premium alternatives. Ties and pocket scarves continued to be popular, especially among younger urban consumers, among whom a more “preppy� look was fashionable. Other apparel accessories was the most dynamic category in 2015, growing by 3% in current value terms. Strong demand for pocket scarves for men as well as hair accessories for women helped to drive sales. H&M Hennes & Mauritz Sverige AB remains the leading player with a value share of 12%
24
political Official name of the country is Kingdom of Sweden Legal system Based on the constitution of 1974 Head of state Sweden has King Carl XVI Gustaf The nation’s legislature is the Swedish Parliament - Riksdag - with 349 members. These elections are held every four years but it should be clear that the king plays no role in government Sweden has been part of European Union since 1995 9.5 out of 10 on Political Risk and Political Stability Index so Sweden is a very safe country and politically stable Corruption Sweden has comprehensive laws on corruption, which are fully implemented. [2009 Investment Climate Statement, Bureau of Economic, Energy and Business Affairs, (2009].
economic Currency is Swedish Krona: 1 SEK = .12 USD Uses Krona to protect itself from European economy despite being a part of the EU inflation rate: 0.03% (2014) interest rate: 0.04% (2014) GDP: 579.7 billion USD Average household disposable income is $29,185 USD a year Unemployment rate:5.8% Swedish Sales Tax is high at 25% No minimum wage law Bargaining agreements between employers and unions Large influx of refugees since 2011 will affect the economy Rising private debt and house prices could make the economy vulnerable to shocks, possibly affecting household consumption Low population density, population of 9.5 mil. people
Swedish people have high standard of living and life expectancy is approx. 82 years The Swedish social welfare system is known the world over for its extensive coverage Aging population, exacerbated by a declining birth rate Sauna Culture: everyone no matter their ‘status’ will work together to achieve a goal - similar to the idea that everyone’s naked while in a sauna Environment is a very important aspect of Swedish culture - many people bike to work and cars are very expensive to have Swedes are known for being stylish and have a ‘minimal aesthetic’ Work - LIfe balance is very important: Working overtime is seen as poor planning 25
pestel
social
pestel
technology One of the highest rates of mobile and internet penetration in the world Strong innovation indicators Strong entrepreneurial nation Robust telecommunications network Swedish people spend more than 6+ hours on the internet a day
environmental Environmental issues are very important to Sweden - forefront of environmental legistlation Sweden has remained one of the top countries in the area of environmental conservation. Government offers green incentives Carbon Tax on companies that are emitters Privatized power providers
legal Ease of doing business: Sweden was ranked 20th out of 178 economies in the Heritage Foundation’s and the Wall Street Journal’s Index of Economic Freedom in 2014. Sweden has exceptionally high levels of investment freedom, trade freedom, financial freedom, property rights, business freedom, monetary freedom, and freedom from corruption. Restrictive labor regulations were cited as the biggest problem for doing business in Sweden in the World Economic Forum’s Global Competitiveness Report 2014-15 Product Safety Act: Legislation passed to ensure products are not hazardously made and consumer safe Equal Pay Act: All people must be payed equally no matter their race, sex, denomination, etc. Equal Opportunities Act: Every company should hire people from many different backgrounds, race, sex, etc. Work Environment Act 1978: If there are more than 5 people working somewhere, there has to be a safety inspection
26
pestel analysis
27
pestel
Sweden’s political structure is a constitutional monarchy and follows a democratic system of governance. Sweden has remained one of the best performing economies in the European region. The economy continues to grow on the strength of private investment and strong household consumption. The Swedish government has been successful in creating a prosperous society. Moreover, the country is being faced with changes in the demographic structure with a declining birthrate and aging population. Sweden has exceeded in the technological front and has a business friendly regulatory environment - making it an ideal location for our pop-up shop.
direct competitors
Spanish retailer founded in 1975 by Amancio Ortega and Rosalia Mera. It is a vertically integrated company, and the flagship chain store of the Inditex group, one of the world’s largest distribution groups. Offers clothing for women, men, children, and accessories. Zara exists in 88 countries. It operates 10 stores in Sweden; 5 in Stockholm. Annual Sales May 2015: $83.3 million.
Swedish multinational retail clothing company founded by Erling Persson in Sweden in 1947. Headquarters are located in Stockholm, Sweden. H&M Offers clothing for women, men, teenagers, and children. The company exists in 61 countries and operates 147 stores in Sweden; 36 in Stockholm. Annual Sales 2014: $22 million. H&M has previously held several pop-up shops in locations such as The Hague, and Lincoln Road in Miami.
American multinational clothing corporation headquartered in Philadelphia, Pennsylvania. Founded by Richard Hayne, Scott Belair, and Gabriel Tham-Morrobel in 1970. The company offers women’s and men’s apparel, footwear, beauty, accessories, and home essentials. It has locations in 13 countries and operates 1 store in Stockholm, Sweden. Annual Sales 2015: $3 billion. UO has held pop-up shops, including one only for beauty.
Modern fashion and denim brand influenced by Scandinavian style with locations in 5 countries and ships to 18 markets. It has 6 stores in Sweden; 2 in Stockholm. Weekday carries in-house brands as well as external designers. Weekday has also experimented with pop-up shops such as their 72-hour pop-up shop in Stockholm.
28
29
indirect competitors
Multi-brand store located in the heart of Stockholm’s fashion district. Has been offering the ultimate high fashion shopping experience for clothing and accessories for more than 15 years. Hand-picked selection of pieces from the world’s top designers such as Alexander Wang, Givenchy, Stella McCartney, Valentino and Saint Laurent.
Nordiska Kompaniet is a luxury department store that has two locations in Sweden. The store in Hamngatan, Stockholm opened in 1915 and the one in Gothenburg in 1971. Nordiska Kompaniet is owned by Hufvudstaden AB. NK offers Scandinavian fashion labels as well as recognized international designer brands and also services such as shoe repair shop, tailoring, dry cleaner, pharmacy, beauty lounge, and dining.
30
31
target consumer
stockholm demographics Capital of Sweden and the most populous city in the Nordic region 914,909 people Accounts for about 29% of its gross domestic product Average age: 38 40.4% of the population, over the age 15 are unmarried. 31.1% of Stockholm’s residents are of an immigrant or non-Swedish background Population increase - more people (especially millennials) moving into Stockholm than moving out
gothenburg demographics Second largest city in Sweden It has a population of 510,000 in the urban area, and 917,984 people live in the greater metropolitan region 78% Sweden-born University of Gothenburg, Gothenburg, Sweden - 24,900 Students Age-majority between the ages of 25 and 45 Second largest age group 45-64 93.7% employed
stockholm
+
gothenburg psychographics
Multi-ethnic, national pride, reserved and open-minded. “Hipster� scene; love vintage or one-of-a-kind pieces. Quick to use newest technologies. Growing number of millennial migrants. Innovative talent, creative entrepreneurs. Concerned with sustainability.
behavioral information Swedes are avid online shoppers and prefer to shop mobile: 89% via phone. However, 45% will shop through tablets. When shopping, they like to feel a personal connection with a brand and their purchasing power is estimated at $170 billion total per year. Even though they like to shop online, they enjoy shopping across multiple channels and demand omni-channel experience. For example, 88% will consider in-store pick up to save money because they are very sensitive to price.
32
meet elsa 20 Studies textile design at University of Böras Financially dependent on parents Loves to watch French films Favorite social media is Snapchat Favorite DJ is Afrojack Favorite city is London Makes her own green juice Practices yoga Cares about the environment Mixes designer with high street
meet robert 25 IT specialist, $ 60,000 Bachelor’s and Master’s degree in US University Plays for a local soccer league Has an American girlfriend Favorite movie is Star Wars Favorite social media is Instagram Favorite DJ is Avicii Travels around Europe Loves the athleisure trend Cares about environment - bikes to work 33
34
location, design, product
35
location - summerburst
justification We chose to open a pop up shop during Summerburst Music Festival. We feel like this would be an amazing opportunity to test our new retail space due to the large number of ASOS target customers that would attend this event. Summerburst is one of the fastest growing music festivals in Sweden catering only to electronic music. Young, trendy adults from around the country and Europe attend this festival. Some of the top 40 DJs in the world play during the two different weekends that this event is held. There are two different locations: one in Gothenburg and one in Stockholm. There is only one direct competitor on the grounds and therefore a pop up shop would be an ideal opportunity for ASOS to capitalize on. The pop up shop will be open from 10am-12am both days of each music festival weekend.
demographics
+
psychographics
Fifty-nine percent of attendees for music festivals are female. Majority of attendees between the ages of 21 and 25. Average middle income about $20,000 to $30,000 a year. Many of the attendees are either currently in school working towards a bachelor degree or higher. Although some are recent university graduates (within the last 5 years) and are are employed. These people tend to be seekers of new music, art, movies and fashion. They are aware of popular culture and are very open-minded. They are also very environmentally conscious and practical. These millennials are sociable and constantly seeking experiences and activities that enables them to interact with others.
lifestyle
+
behavioral information
Shopping habits: Shop online via e-commerce and m-commerce.They are constantly influenced by online reviews and by recommendations from friends. They tend to be brand loyal but are practical and love a deal. Leisure: Since Swedes rarely work overtime, swedish millennials have lots of leisure time. They are very active yet do love to spend 6+ hours a day online. Technology: Most millennials have smart phones and use social media from their devices. The social media platforms that are most favored by millennials are Snapchat and Instagram.
36
gothenburg
37
location - summerburst
stockholm
location - summerburst
sales potential Around 60,000 people a day attend each of the festivals and are in an enclosed space all day. While in this event space, there are limited activities ,apart from the actual headliner events. There is only one direct competitor on the grounds of Summerburst but has a different aesthetic and product offering. We feel that adding an interactive element to the shopping experience, we can translate this opportunity into higher footfall to purchase conversion rates.
estimating competition There are very few competitors within the Summerburst grounds. Junkyard is the only direct competitor but has a different aesthetic -Junyard specializes in athleisure and urban wear- and product offering as well as higher prices. However, our main competitors will be indirect: Heineken, Red Bull and Burger King.
area attractions Inside Summerburst: DJ line up in the festival. When the sun sets for 2 hours, there are fireworks and a light show. Gothenburg: The Museum of Art, Liseberg Amusement Park (largest in Scandinavia, with more than 3 million visitors per year), Magasinkvarteret Shopping Quarter, Historic Haga timber houses and boutique shops, Nordstan shopping center, Gothenburg Museum of Art, Volvo Museum, and Michelin starred restaurants. (SE) Stockholm: nightlife, art galleries, shopping, Michelin rated restaurants, Swedish Museum of Natural History, Bergius Botanic Gardens, Royal Dramatiic Theatre, Brunnsviken lake and beaches, Ă–stermalms Saluhall market hall, Museum of Science and Technology.(Visit Stockholm)
38
39
location - summerburst
area factors - stockholm: gärdet stadium pedestrian traffic: High pedestrian traffic due to the 60,000 per day attendance rate on the Summerburst grounds and close proximity to the Ostermalm district. public transportation: The underground is the easiest way to get around town. The red line of the subway has a number of stations in Östermalm. In the centre of Östermalm is the station Östermalmstorg serving the Stureplan and Östermalmstorg area of the district.Tickets can be purchased at SL Centers, underground platform barriers, newsagent kiosks, via SMS or via the SL app. It’s not possible to pay cash for tickets on board buses in Stockholm. The tram Spårväg City runs from Sergels Torg in Norrmalm through Norrmalmstorg and along the waterfront boulevard of Strandvägen to Djurgården serving the Nordiska Museet, Gröna Lund and Skansen making it a very scenic way to travel with ease.You can easily get hold of a taxi by calling a taxi company, hailing one on the street or by taking a one from a rank. There is a manned taxi centre at Central Station that can help you with finding the right service.Travelling by local ferries is a fantastic way to experience a city built on islands. Ferries are used by both commuters and tourists wanting to take a better look around. parking: There are plenty of parking garages in the inner city. Some parking garages charge for the time you have parked as you are leaving. cycling: Bicycle routes aimed at facilitating everyday commuting by bicycle, with the construction of pedestrian and cycle paths. Bikes can be rented from Citibike.
area factors - gothenburg: nya ullevi stadium pedestrian traffic: High pedestrian traffic due to the 60,000 per day attendance rate on the Summerburst ground and due to being located in the downtown area. public transportation: Nya Ullevis Stadium is located less than a kilometre east from Gothenburg’s main rail station and city centre. The walk will take no more than 10 to 15 minutes. The stadium is part of a complex consisting of several other sports and event facilities, among which the Gamla Ullevi stadium, the current home of the three Gothenburg clubs. The E6 motorway runs just east of the stadium. Leave the motorway at exit 73 Centrum. There are furthermore several tram routes passing the stadium (e.g. line 1, 2, 3, 6, and 8). Stop Ullevi Norra and Ullevi Södra lie next to the stadium. parking: There are two parking garages next to the stadium among several parking garages in the area. Average daily parking rate $9.40. Other paid parking spots in and around Gothenburg. cycling: Rental bikes at more than 50 STYR & STÄLL stations spread around town and Gothenburg is a very bike friendly community with many bike lanes. 40
+
infrastructure
To enter the Swedish market we will implement a joint venture with the investment group, Nordea, who also sponsors Summerburst Music Festival and would be a perfect fit. For our space, the shipping container will be delivered to the Gothenburg site - from there it will be assembled with the local contracting crew. We will send the first shipment of ASOS retail products to the Gothenburg site where it will be merchandised by the store managers and sales associates 1 day prior the festival. Since each festival is only two days per weekend, we will send the replenishment to Stockholm, where one day prior to the event, the store managers and staff will replenish and re-merchandise. The shipping container will be transported to Stockholm by local movers that will drive the 5 hours from Gothenburg to Stockholm. We will receive both shipments of stock from the ASOS European Warehouse in Grossbeeren, Germany, as it is the closest location to both Gothenburg and Stockholm.
41
location - summerburst
logistics
location - summerburst
human resources When building and staffing our pop up shop, we have taken into account of the available human resources of the both areas of the festivals. When it comes to decorating and putting together the shipping container, we will hire local contractors in Gothenburg for this task. We will put together the shipping container 3 days before the event in Gothenburg.When moving the pop-up shop to the Stockholm location, we will contract movers to drive the 5 hours from Gothenburg to Stockholm Because no physical ASOS retail spaces exist, we will bring over 2 Swedish & English speaking managers from the ASOS headquarters in the UK. This is the most beneficial option because these managers are already wellversed in ASOS products, promotions, and culture. There will also be an ASOS PR member present to document for social media purposes - this expense will be in the Communication and Promotion plan. For sales associates & security, we plan to start the hiring process 5 weeks before the event in each location. Recruitment opportunities will be posted on ASOSCareers.com. Sales associate Application will consist of a resume and cover letter. Sales Associate Applicant’s’ education and experience aligned with fashion management is preferred. If approved for interview, candidates must demonstrate strong communication and interpersonal skills, as well as adaptability. Candidates must be fluent in Swedish and proficient in English. training: New hires will receive the ASOS Code of Conduct handbook and product assortment information one week prior to start date. New hires are to examine the material before undergoing one day training. Training day will consist of customer service simulations which will cover customer engagement, sales transactions, lost prevention methods and problem-shoot. All ASOS employees will wear an ASOS x Summerburst T shirt to keep the look cohesive and professional. Our pop-up shop hours are 10am until 12 am for every day for each location, open a total of 4 days.. We will always have at least 4 people working at any given time - a manager, a sales associate, and security. Two managers, 2 security and 4 sales associates work 7 hours per day. Managers will share two shifts; shift 1 (9:30am5:30pm) and shift 2 (4:30pm-12:30am) and will be responsible for scheduling. There will be a daily lunch stipend of $20 per employee during the festival. The estimated cost for labor including set up, transportation for pop up shop, transportation & hotels for managers is $12,330.
42
manager - $21/hourly The responsibilities of management are to meet sales goals by training, motivating, mentoring and providing feedback to sales staff. She or he is to ensure high levels of customers satisfaction through excellent service while also completing store administration and ensuring compliance with policies and procedures. Management is to maintain outstanding store condition and visual merchandising standards and deal with all issues that arise from staff and customers. sales associate - $13/hourly The sales associate is responsible for engaging in friendly interaction with customers, assessing customer needs and providing assistance and information on products and features. She or he is to maintain in-stock and a presentable condition of her or his assigned areas. Associates are to perform cashier duties such as handling transactions and bagging products. security - $19/hourly Security is responsible for patrolling the premises of the shop to preserve order and keep ASOS compliant with local safety regulations. Security is to demonstrate positive interaction with customers always and firmness ,only when necessary, in order to ensure that problematic situations aren’t escalated by misunderstandings or mistreatment. Responsibilities also include loss prevention duties such as reporting equipment or property damage, theft, or unusual occurrences. Security is to contact police, fire department, ambulance if emergencies are to occur.
manager
security
sales associate
manager
sales associate
security
43
sales associate
sales associate
location - summerburst
human resources
location - summerburst
legal issues payment: Customers will have to pay with credit cards through the ASOS payment system and no cash will be accepted, prices will be in local SEK denomination. construction regulations: ASOS Pop up shop, by law, must be in accordance with building, safety and health regulations set forth by Boverket, Sweden’s National Board of Housing, Building and Planning organization. (Boverket Building Regulations, 2012) . Our pop-up shop will comply with building, health and safety regulations set by Summerfest Music Festival and keeping with their permit agreements. Building, demolition or ground work sites shall be arranged in such a way that entry of unauthorised people is prevented and the risk of personal injury is limited. Measures shall be taken to provide protection against the outbreak and spread of fire and against noise and dust. When building or demolition work is in progress, the necessary measures shall be taken to protect the occupants and users from personal injury resulting from accidents, dangerous noise levels, pollutants in harmful concentrations or similar. Before any structure is put into service, written instructions should be available specifying how and when commissioning, testing, maintenance and servicing shall be carried out, in order that the requirements for the structure and its installations which result from these mandatory provisions and from the main statutes shall be met during the working life of the structure. health and safety: There will be a fire extinguisher inside the pop-up shop in case of fire, because structures shall be designed with a fire protection that ensures that fire safety is satisfactory and that there is an adequate time for evacuation during a fire. (BFS 2011:26). Structures and their installations shall be designed to ensure that the quality of air and water, as well as light, moisture, temperature and sanitary conditions are satisfactory during the working life of the building, thereby avoiding conditions detrimental to human health. Structures should be designed so as to minimise the risk of accidents such as falls, collisions, crushing, burns, explosions, being locked in, poisoning and electric shocks. We employ, our two security guards that are trained in Swedish Safety Protocols can make sure these regulations can be followed and inspected of the Work Environment Act 1978.
44
45
pop-up shop design
in-store traffic flow
46
pop up shop design
47
pop-up shop design
details We will use a 40x8x9 foot shipping container to build our pop-up shop. There will be an additional space in front utilizing one of the sides of the container as floor space creating a more open concept. To localize it, the ASOS pop-up shop uses Scandinavian design aesthetics. The shipping container will be painted white with an addition of a glass on one side that would be transparent when that side of the container is open. An ASOS logo will be placed on the glass, as a focal point. Since we created an interactive shopping experience that allows customers to create their own festival kits, the flow of the store reflects this idea. Starting from the right, customers can choose from three different kit options, which are priced respectively and are customizable. The customer flow will revolve around the central focal point, which is a table of ASOS DJ collaboration, which includes DJ-designed t-shirts and playlists by David Guetta, Alesso and Nervo.
space allocation
+
productivity
The pop-up shop is designed with the intention of keeping as much open space as possible. The flow will be driven by the kit-making process. The bags will be hanging on hooks on a wire wall rack. All the products will be placed against the walls, while the DJ collaboration section will be placed in the center as a focal point.
fixtures There will be shelving against the walls for accessories and beauty products, as well as wire racks for the bags. Place above the beauty and accessories section, there will be a mirror for customers to try on the products.There will also be two tables against the glass, where cameras and water bottles will be displayed. Bistro lights will be strung throughout the container and outside walls.
ambiance The color scheme keeps with the ASOS brand aesthetic, using only black and white. Most of our lighting will come from natural light, since our space will be mainly open and the glass offers an open feel, while the sun in Sweden sets only for one hour a day. There will be ambient music coming from each artist performance. Our employees will be wearing the DJ collaboration t-shirts.
visual merchandising Our visual merchandising will be a combination of the DJ collaboration signage, fixtures, and products. The product assortment will ad the ASOS signature pop of color contrast to the black and white color scheme. By displaying essential items for a festival, it enhances and reinforces the festival experience vibe. 48
artwork On the left outside wall, there will be a signage of the DJ collaboration, with images of the three DJs.
In the middle of our pop-up shop, the DJ collaboration station will be placed in a dynamic display piece that enables an interactive experience and incentivates customers to buy the t-shirts as well as listen to the playlists.
safety
+
security
In order to comply with the safety regulations, the fire extinguisher in our pop-up shop will be placed on the left wall, where it can be reached easily. We will also provide our own security to prevent shoplifting and to oversee safety regulations.
costs Bistro lights
$110.00
Laminate wood flooring
$800.00
Paint
$100.00
Glass Shelving
$1,196.00
Geometric tables
$600.00
Wire wall hanger
$50.00
Mirrors Fire exinguisher (provided) Middle acrylic display
$210.00 $0.00 $275.00
Ipads
$1,800.00
Container (including drop off
$4,000.00
Glass Wall
$2,000.00
Total
$11,141.00
49
pop up shop design
in-store display
foot traffic + sales forecast
AVR.PRICE dj collaboration t-shirts sunglasses hair accessories key chains waterbottles cameras beauty products
$20.00 $21.50 $9.00 $10.50 $12.50 $50.00 $9.00
Day 1 AVR.UNIT 187 174 416 89 120 7 519
Day 2 AVR.UNIT 112 104 249 53 72 4 312
Day 3 AVR.UNIT 187 174 416 89 120 7 519
Day 4 AVR.UNIT 112 104 249 53 72 4 312 TOT.
analysis When determining our sales forecast, we first found the daily attendance of each festival. Using this, we were able to found out our daily traffic rate. Our conversion rate was adjusted to the higher footfall rate of the area. Our average basket was $56.66. To account for this number, we considered the buying habits for each of the three kit options. To determine the percentages of the products, we looked to the shopping trends of our target customer, and the products they would want or need - estimating about 4,838 units - during this specific event. 50
ESTIMATE TOT.UNITS 598 557 1,330 285 383 24 1,662 4,838
the product kits In order to create an memorable ASOS shopping experience, we wanted to make the experience memorable and interactive. The kits will be offered at three different sizes and price levels.
second level $50 3 accessory items and a DJ collaboration T-Shirt third level $100 3 accessory items, a DJ T-shirt, and a polaroid camera
51
product plan
first level $20 2 accessory items
product plan
HAIR ACCESSORIES
ASOS Open Star Hair Clip $10.50
Pieces Hair Elastic Bands Multipack $7.00
Black
White
Pink
Torquoise
ASOS Fine Twist Chain Hair Crown $10.50
Gold
Silver
Gold
Orelia Skinny Suede Flower Headband $8.50
Silver
Black
White
Tan
SUNGLASSES
ASOS Rimless Round Sunglasses $17
White
Black
Jeepers Peepers Metal Tip Round Sunglasses $31
AJ Morgan Sunglasses with Metal Arm $21
Black
Silver
Rose
52
Black
ASOS Pink Flash Lens Aviator With Flat Lens $17
White
Silver
WATER BOTTLES
Black/Pink
Cath Kidston Meadow Print Water Bottle $15.00
Jack Wills Metal Water Bottle $14.50
Pink
Green/White
Blue
Black
Yellow
KEYCHAINS
Jack Wills Leather Keychain $9.50
Jack Wills Leather Keychain $9
ASOS Metallic Star Keychain $10
ASOS Oversized Pom Keychain $14
Multicolored Torquoise
Pink
Purple
Red
Blue
Black
53
Tan
Yellow
Blue
Pink
Torquoise
product plan
Jack Wills Cleveland Water Bottle $8.50
Black
product plan
BEAUTY
Blue
Pink
Purple
Juku Nails ASOS Exclusive Mani Triangles $14
Sparkle lips $13
Fudge Urban Color Chalks $8
Torquoise
Gold
Red
Silver
Pink Gold/Silver
CAMERAS
Lomography Fisheye Compact Camera $50
Red
Yellow
Torquoise
54
Purple
Metallic Body Tattoos $8.50
Black/White Gold/Silver
Black/White
Pink
Small
Large
Torquoise
Red
Medium
Small
Large
55
Medium
Small
Large
Medium
product plan
DJ COLLABORATION T-SHIRTS
communication + promotion
justification Knowing our target customer will be best reached through social media, our communication and promotion plan will be focused mainly on social media platforms before, during and after the ASOS pop-up at Summerburst takes place. Partnering with the DJs will help us reach potential customers and create excitement about this collaboration that will benefit all parties involved.
pre-initiatives Six months before the events, start announcing and promoting the pop-up shop through the ASOS and Summerburst websites, Facebook & Instagram. Create an ASOS x Summerburst playlist on Spotify that can be accessed through the ASOS website. Artist collaboration: We will partner with three DJs (David Guetta, Alesso, and Nervo) to create a t-shirt design, generating exposure because of their popularity and influence on our target audience. They will also promote the initiative through their social media platforms such as Instagram and Facebook.
during initiatives Bloggers: Victoria Tornegren, Camille Charriere, Trine Kjær are Scandinavian/UK Bloggers that will promote the pop-up shop through their social media accounts with one post each during the event. Survey to collect customer’s data. After completing the survey, the customer will be able to redeem a promotional code on asos.com. #FESTLIFEASOS will be the hashtag for customers to share their photos through social media. Record a video that captures the initiative of the pop-up shop and customer experience. Managers will be in charge of managing ASOS’s social media platforms including Snapchat, Instagram, Facebook and ASOS blog. Kit Backpacks will not only be convenient for customers but will also serve as a form of advertising.
post-initiatives Courtesy “Thank You” emails will be sent to the people who made purchases at the pop-up shop the Monday after the event. We will recap the ASOS pop-up shop experience at Summerburst on the ASOS Instagram, Youtube, Facebook and website by posting pictures and videos during the month after the events have taken place.We will stagger the social media posts to keep customers engaged and not apathetic. ASOS will have a sectionon their website and blog about the pop-up at Summerburst, which will include the photos customers uploaded to social media using the #FESTLIFEASOS. 56
gantt chart Initiatives Medium
Pre-launch February
Pre-Launch March
Pre-Launch April
Pre-Launch May 1-27
Launch
Pre-Launch
May 27-28
May 29-31
Pre-Launch June 1-9
Launch June 10-11
Post-Launch
Costs
June 12-30 $500.00
Spotify
$0.00
YouTube
$2,800.00
$500.00
Google+
$200.00
Snapchat
$500.00
ASOS Magazine
$0.00
Bloggers
$1,500.00
Summerburst Website
$0.00
ASOS Website/Blog
$0.00
Artist Collaboration
$598.00 * 5% of the t-shirt revenue
Survey
$0.00
$0.00
Kit Bags
$1,500.00 *10,000 bags (about $0.15 a piece) $8,098.00
57
financial plan
loss statement Day 1
Day 2
Day 3
Day 4
Day 5
Day 6
Day 7
Total
Revenue
$0.00
$0.00
$0.00
$18,697.80
$11,218.68
$18,697.80
$11,218.68
$59,832.96
Cost of Goods Sold
$0.00
$0.00
$0.00
$11,218.68
$6,731.21
$11,218.68
$6,731.21
$35,899.78
Gross Margin
$0.00
$0.00
$0.00
$7,479.12
$4,487.47
$7,479.12
$4,487.47
$23,933.18
Store Costs
$9,141.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Promotional Initiatives
$7,500.00
$0.00
$0.00
$0.00
$0.00
$0.00
$598.00
Expenses
Store Transport Cost Human Resources Total Expenses Earnings
$0.00
$0.00
$0.00
$0.00
$2,000.00
$0.00
$0.00
$4,694.00
$924.00
$924.00
$947.00
$947.00
$947.00
$947.00
$21,335.00
$924.00
$924.00
$947.00
$2,947.00
$947.00
$1,545.00
$29,569.00
-$21,335.00
-$924.00
-$924.00
$6,532.12
$1,540.47
$6,532.12
$2,942.47
-$5,635.82
analysis To determine the potential profit or loss for our pop-up shop, we had to subtract all the expenses from the gross margin of $23,933.18.. The total cost of our expenses is $29,569.00. We determined that the Asos pop-up shop results in a $5,635.82 loss. Although profit is not generated, success will be found in being able to test the idea of a physical ASOS retail space, gather data, interact with the customers, and generate awareness of the brand for success in the future.
58
59
works cited “Annual Report And Accounts 2015.” (n.d.): n. pag. ASOS. ASOS, 2015. Web. Feb.-Mar. 2016. Boverket. “Building Regulations, BBR.” Boverket. The National Board of Housing, Building and Planning, Oct. 2011. Web. Feb.-Mar. 2016. Burgess, Tim. “Contractor Taxation: Sweden.” Contractor Taxation. N.p., 17 Oct. 2011. Web. Feb.-Mar. 2016. Business Source Premier, Savannah College of Art and Design, and MarketLine. “Sweden Country Profile: PESTEL Analysis.”Ebscohost.com.library.scad.edu. EBSCO Industries,Inc., Dec. 2014. Web. Feb.-Mar. 2016. Carter, Jamie. “The Reasons Why Sweden Is a Hotbed for Digital Innovation.” TechRadar. Future US, Inc., 8 May 2015. Web. Feb.-Mar. 2016. “City Cycling.” Visitsweden.com. Visit Sweden, n.d. Web. 09 Mar. 2016 Columbia University Press. “Sweden Economy.” Infoplease. Sandbox Networks, Inc, Infoplease, n.d. Web. 09 Mar. 2016. “Energy Use in Sweden.” Sweden.se. Swedish Institute, 22 Jan. 2016. Web. Feb.-Mar. 2016. Ellegard, Kajsa, and Anna Green. “Consumer Behaviour in Swedish Households: Routines and Habits in Everyday Life.” Eceee.org. European Council for an Energy Efficient Economy, n.d. Web. 09 Mar. 2016. Euromonitor, and Savannah College of Art and Design. “Apparel Accessories in Sweden.” Euromonitor.com.library.scad.edu. Euromonitor International, 8 Feb. 2016. Web. Feb.-Mar. 2016 European Commission. “Commission Staff Working Document.” Country Report Sweden 2016 (n.d.): n. pag. Europa.eu. European Commission, 26 Feb. 2016. Web. Feb.-Mar. 2016. European Employment Services. Living and Working in Sweden. Stockholm: Arbetsförmedlingen, 2010. Http://www.arbetsformedlingen.se/. Arbetsformedlingen, Jan. 2015. Web. Feb.-Mar. 2016. FHO, and UK Festival Census. “The Festival Awards.” Market Report 2013 361.7 (2009): 3879-914. FestivalInsights.com. CGA Strategy, 2013. Web. Feb.-Mar. 2016. Gasca, Peter. “8 Shopping Habits of Millennials All Retailers Need to Know About.” Entrepreneur. Entrepreneur Media Inc., 07 Dec. 2015. Web. Feb.-Mar. 2016. Government Offices of Sweden. “Government Policy.” Regeringskansliet. Government of Sweden, Dec. 2015. Web. Feb.-Mar. 2016. 60
works cited Hansson, Ingemar. Taxes in Sweden. Stockholm: Föreningen, 1969. Http://www.skatteverket.se/. Swedish Tax Agency, Jan. 2015. Web. Feb.-Mar. 2016. Kendall, Ben. “Unemployment Rate Lower than in Stockholm.” Gothenburg Daily. Texttalk Webnews, 21 Oct. 2015. Web. 09 Mar. 2016. Labour Research Department. “Health and Safety Representation.” Worker Participation EU. ETUI, n.d. Web. 09 Mar. 2016. Media Buying. “Consumers in Sweden Spent Over 6 Hours Daily with Media in 2014.” EMarketer. EMarketer, Inc., 23 Mar. 2015. Web. 09 Mar. 2016. Ministry of Agriculture, Food and Consumer Affairs. “Product Safety Act.” Regeringen.se. Government Offices Sweden, May-June 2004. Web. Feb.-Mar. 2016. Murphy, Eric. “How Much Should Sponsored Articles Really Cost? [New Data].” HubSpot. HubSpot, Inc., 10 Dec. 2014. Web. Feb.-Mar. 2016. Organisation for Economic Cooperation and Development, Sodexo, and Economic Surveys SWEDEN. “Sweden.” OECD Better Life Index. OECD, Dec. 2015. Web. Feb.-Mar. 2016. OneSource Global Business Browser, Reuters Research Inc., Experian Ltd., Creditsafe Group, LexisNexis, 1 Stop Data Ltd, and XE.com. “ASOS Plc.” Globalbb. onesource.com/. Avention, Inc, Mar. 2016. Web. Feb.-Mar. 2016. Pierce, Alan. “Models of Sustainability: Sweden Runs Out of Garbage.” Pachamama Alliance. Pachamama Alliance, Inc., 25 Nov. 2012. Web. Feb.-Mar. 2016. Salam, Fatima. “HRMars Exploring Intellectual Capital.” Analysis Of Sweden As An Attractive Country For Investment 1.1 (2011): n. pag. Hrmars.com. Directory of Human Resource Management E.Publications. Web. Feb.-Mar. 2016 Santander Trade Portal. “Sweden Foreign Investment.” Santandertrade.com. Export Enterprises SA, Feb. 2016. Web. Feb.-Mar. 2016. Savage, Maddy, Paul Rapacioli, and Emma Lofgren. “Sweden Has EU’s Highest Hourly Labour Costs.” The Local, Sweden. The Local, Europe AB, 12 May 2014. Web. Feb.-Mar. 2016 Segercrantz, Mikael. “Stronger Consumer Protection in Sweden.” Lexology. Globe Business Publishing Ltd, 9 Dec. 2013. Web. Feb.-Mar. 2016. SCB. “Lönedatabasen.” Sweden Statistics. Statistiska Centralbyrån, Dec. 2014. Web. Feb.-Mar. 2016. Schawbel, Dan. “10 New Findings About The Millennial Consumer.” Forbes. Forbes Magazine, 20 Jan. 2015. Web. Feb.-Mar. 2016. 61
works cited “Summerburst.” Wikipedia. N.p., 28 Feb. 2016. Web. 09 Mar. 2016 “Summerburst Festival, Stockholm.” Summerburst.se. N.p., n.d. Web. Feb.-Mar. 2016. “Sweden - Politics, Government, and Taxation.” Nations Encyclopedia. Advameg, Inc., n.d. Web. 09 Mar. 2016. “The Swedish System of Research Funding.” Research Funding Sweden. Vetenskapsrådet, 19 Jan. 2015. Web. Feb.-Mar. 2016.
62